Been underway for the last week. Its wrapping up over the course of the weekend. Those who are left are here because they are either real thinkers or hard partiers but through the course of the week, much has been discussed about the Global Economy and the Global Political situation. In fact, probably the most newsworthy part of the week was the rival of iranian president hasan row wa whowani rohani. He has been on a bit after pr mission, talked to Oil Company Heads to same, come back into iran. Help us get our Oil Production up to speed and hes been speaking to other leaders. Now, Benjamin Netanyahu of israel is also here the two of them have not met. They are not at that stage. Benjamin netanyahu has been talking about israel having been open for some time and the tech sector but that is global conference and about the Global Economy. One of the bright pieces of news we have had this week is that the International Monetary fund has raised its forecasts for Global Economic growth in 2013. I had a conversation with the head of the amf, christine laguard. What happens when china starts slowing down . I worry that will slow the world down. China has grown at a very fast rate and absorbed a lot of the poverties that there was in china, which is good. It has brought up the level of, you know, the income level for the average chinese person but it is still, you know, way, way below where it hopefully will be when the middle class of changing grows to a substantial level so it will begin to grow. We dont see china growth slowing down significantly in the near future. They have a long way to go and they have a a population to lift to that middle class level that they aspire to . We in the United States tried to encourage people to save money while 25i789 being consumers. China has struggled to make consumers out 6 their people and some critics argue it has not moved fast enough . Is it has begun to move. While the growth in china was predominantly driven by export, clearly investment has picked up 2345 big way, probably too big a way to where consumption s now its a question for the chinese policy makers to orientate the Chinese People into more consumption but its coming. Your report also indicates that japan may have left the worst behind them. Possibly. We certainly hope so because it was stuck in that 10 years deflation trap, which is alternates very hard to extract ones self from. So the triple action arrested i canlated by Prime Minister abbey and strongly supported by the central bank of japan is beginning to turn into results, yes, and we certainly hope it will continue to do so, thanks to Critical Reforms that have to be implemented, which were announced by Prime Minister abbey as late as yesterday. Lets talk about europe. You are here. You are thinking that the countries that use the euro will see 1 growth over the year in 2014. If thats fen with us and we have serious structural problems here in europe, give us an update on where you think europe is. Europe has gone a long way away from will the yoeuro joan break up . Is it still worth it . They have passed that stage. They have taken some real serious steps in the direction of banking union. They are not there yet, particularly in backstops and, you know, common resolution systems, but they have made huge progress. They have now built this potential wall, the european stability mechanism that they can erect in case of problem in any parts of the zone. So those things are good. There seems to be a common drive towards more integration and a reinforced political project. They still have a way to go, particularly in the area of Structural Reforms, which some of the Member States have done. This is a case for spain, for instance. Did certainly is the indicates for ire land as well and a few other countries, but they all have a long way to go, a lot of is sections in the economies are still very well protected subject to licensing rights, subject to authorization, and they dont unleash what they can unleash in that part of the world which is a large part of the Global Economy. Where they have Structural Reforms to deal with in, in europe, in america, we have political issues to deal with. Your sense that washington got its act together a bit at the end of 2013 and 2014, caused you to upgrade your forecast for the United States. Still not great, i think we are looking at 2. 8 growth in 2014. What does america have to do to get a little bit higher than that . Its not really sufficient for longterm sustained expansion in the United States first of all, lets look at the rosy side of the picture. It is good. It is progress. Its almost 1 percentage post than last year. They are heading in the right direction in terms of growth and clearly, the demand, its fueled by the private sector, and thats a good thing because we have observed a fiscal drive because budgetary policies were, you know, tightening public spending where increasing revenues. And that drag is gradually fading away as we moved in to 2014. Growth in the United States should continue to strengthen, which is certainly good and we have seen the Unemployment Rate go down. We have seen the participation not increase at the moment, which is a worry. But, you know, it is stabilizing. The fed, the u. S. Central bank policy, is going to probably no normalize gradually over time in a phased way. All of that is good news. Does that worry up, as the fed normalizes, which means they wont put in as much money to the point where they are making no donation to the economy . The best estimates we can get is that Mortgage Rates in the United States might goas to 6 , maybe a little bit higher. Are you worried that the United States can experience some massive slow down because the fed steps out . The way the fed is announcing its Monetary PolicyGoing Forward by way of very gradual slowgoing tapering anchored in the way the economy is working. In other words, if the economy is strong, if the i knowflation is low enough, they will continue to do that. Then they will resort to monetary tightening when the time comes. The way they are phasing it and linking it to the economy situation, i think, is the sensible way to avoid that Monetary Policy is a drag on the economy growth. That was christine legaurd, the head of the imf. I had a chance to talk to the World Bank President , jim yu yun kim. He was talking a lot about some of the pressures on the developing world ain the emergig market did . One of the Untold Stories is during the last five years, africa was growing at over 5 . Mexico and many of the latin american kuntz trees responded really quickly after the crisis of 2008. A lot of it had to do with getting the economic fundamentals right. The macro economics were in shape because because in some cases, those had gone through crises in the past. They had good macro economics, strong fundamental, their debts were manageable and these countries have been doing well. From our analysis, it looked like they are going to continue to do well. The growth rates in the emerging economies is going to continue to go up. We are not seeing rates like we did in the past, the ten percent growth rates in india and china but very, very solid growth. These growth rates and this is the way we compare growth around the world, they mean differently things because people start from Different Levels and basis. While we are excited and i dont know what you think of the estimate that the u. S. Will grow 2. 8 , we worry about china. Is it leveling off . Are they doing the right things . Because the world sort of depends upon it. Our estimate is 7. 7 next year but, you know, china has been ex plicit. This administration in china, they are very committed to the reforms that they have laid out. What are they trying to do . Its a fundamental shift away from an investment, exported oriented economy to one focused on services. This is huge. When the growth rate started to drop, what you could have seen is them saying, well, look. We cant do this anymore. We are go to have to go back to our old model because we have to keep the Growth Numbers up. Thats not what they are saying. What they are saying is we have got to, you know, and to quote them, let the market determine the distribution of resources. This is huge in the cogtexas of lower growth rates. I have met with them, looked them in the eye. I think they are committed to these reforms. These reforms are necessary. They have got to bring the investment rates down. They were up to 46, 47 investment rates, rates as high as we have ever seen. They know they have to bring the rate down but they have to do it slowly. They know they have to get the connellsumption levels up but they are doing the right things right now and are not panicking with the relative drop in their growth rate. Lets put the brakes on this for a second and take the opportunity to have a conversation with my audience, many of whom i think are not economists and dont understand some of the nanswers here th nuances. Some how come we keep growing . How come the world doesnt stop growing . I know its possibly chinas answer and the answer to many places where labor rates are low, wage rates are low. Is that the answer . Well, you know, if you want to have a growing economy, there has to be a balance. Until chinas case, there was a huge imbalance. Growth was much more driven by investment than consumption. They are talking about balancing investments and consubjects so the economy can grow in a stable and healthy way. Thats what we talk about 59 every g20 meeting, longterm, sustainable, equitable growth. Its a difficult formula to find because its easy to get out of balance. The fact that cheney is searching to find that balance, i think is a source of great optimism for many of us. That was World Bank President jim kim. This isnt all economics and politics. There is a lot of pure business going on here. I spoke to John Chambers, who is the head of cisco about how the world is soon going to be connected in ways you never thought possible. I will have that interview when i come back. I am alti velshi. You are watching real money with ali velshi. Every sunday night Aljazeera America presents extraodinary films from the worlds top documetary directors. Its the worlds most powerful financial institution. I think were mysterious to people. What really goes on behind closed doors . The fed is kind of this black box. Its your money. Somebody screwed up. Or is it . I worked to save that money and now i get nothing. Inside the fed. On Al Jazeera America. The stream is uniquely interactive television. We depend on you, you are one of the voices of this show. So join the conversation and make it your own. The stream. On Al Jazeera America and join the conversation online ajamstream. Welcome back to real money. I am in davo, switzer land. A year ago, i sat down with cisco ceo John Chambers where he unveiled his philosophy of the internet of everything, and internet where its not just about communication and research and looking things up and talking to each other, but an internet in which a bridge will tell you that its getting ready to collapse, a water pipe will tell you that its leaking before you can determine the damage damage, the internet of everything could add almost 20 trillion to the Global Economy. I sat down for a followup conversation with John Chambers this visit. We live in a world thats going to the most basic Technology Transition ever. The power of the internet over from its inception today will be dwarfed by whats going to happen over the next 10 years, the internet of everything, by a factor of 5 to 10 times the impact in our healthcare, in our education, and our childrens lives, in business, changing cities, and countries. And you are a little bit tough on yourself. You were one of the two or three people who got it a year ago. If i wanted to talk about the internet of everything, i had to usually go buy somebody a drink and educate them. This year, its the reverse. You begin to see a tremendous p uptick in the last six months where normal citizens realize have a bunch of devices that improve your healthcare on your body, your wrists, you will ent interface to your nurses and doctors different and it will change every aspect of business and you see cities like barcelona and core this year, minute to talk to, the first topic is the internet of everything. I will meet with eight major government leaders and 50 heads of state, a number of your counterparts in the media and the first topic is how does this change . What it does, it will grow economic growth, create large middle classes. When you talk to the leaders in President Park for korea, she got it. She said this will help me do creation of entrepreneurism, startups, middle class. Is it will help me transform my country. It creates efficiencies . Saves money . All of the above. Live longer because you have a fit bit . You said it better than i did. In a city like barcelona that created 47,000 jobs in the last three years. It saved them over 55 million on how they do smart water, moving it around without losing it. Smart street lights, saved them 52 million. Water means a type will tell you its leaking. Yes. An automatic crack or where you want to get the water to. It will movie electricity around and when people arent going up and down the street t will dim the light and it saves 70 percent of the energy when it does that. It reduces crime as well. Then you can begin to use Traffic Control and parking sensors that say where a parking spot is available. For example, in paris, the average parisian spents four years of that irlife trying to find a parking spot. By doing that, first, you increase the revenues, a 41 billion revenue base for cities but you also reduce the traffic by 30 . Now, in healthcare, we havent had productivity indecreases healthcare ever. This will have huge implications, allow us to live longer, allow us to get regular feedback, whats working on our body, whats not. You all of the sudden see everything from Retail Industry to manufacturing to the cogassumer get it. That was John Chambers, the ceo of cisco. When you think about connectedness, you think about the way you get around. Remember, i was at the auto show a week ago, where i was trying to get ceos to talk about autonomous, Driverless Cars and virtually none of them would. The one company that is proud to say that it will have a mass marketed Autonomous Car by 2020 is nissan. I had a chance to talk to the ceo of nissan, carlos goan. I asked him what he thought this would do for the world. By 2020, we will have an Autonomous Car made by nissan or renauld because we think this has tremendous advantage, first in terms of safety. As you know, 90 are due to human error. If you reduce Human Interaction with a machine, you are going to reduce that. So number 1. No. 2, a lot of people lose that driving license after a certain age, and as you know, our Life Expectancy is going up. So we want to reestablish the possibility for giovanni senior people to continue to drive a car and autonomous driving is the solution for that. On top of this, people on average spend two hours a day in a car. During these two hours, they dont do anything. Totally inprotective. Autonomous cars will allow you to gainbam back two hours while you are in the car. Video conferencing, working, readi reading, doing what you want. Its a tremendous potential in terms of quality of life and productivity. You sell cars all over the world. The imf came out with a new project ex that the world will go 3. 4 . The u. S. There is achieve 2. 8 gdp growth. It sounds like europe has bottomed out. They are expecting 1 growth, japan will be the same as last year. Does that jibe with what you are predicting for next year around the world . Yeah. I think we are predicting another record year for our industry in terms of volume of sales, around 84 million cars in 2014, and i think practically all of the markets will be growing, even europe which has been decreasing for the last five years, we are is forr foreseeing a growth of 1 . That was nissan ceo carlos goanes. I had a chance to speak to the ceo of the cope cocacola company, mutar kent. He says the growing problem of youth unemployment around the world could lead to unrest. We are already seeing it in parts of the world where youth unemployment is at 50 , like in parts of southern europe, like spain. He says that the way to solve these problems is to get to what he calls the sub national level. National governments around the world are not that effective at effective at dealing with these but states and proven cial leaders are the answer. Here is what he told me about youth around the world . We have to get that number lower and work hard at getting that number lower. We have to work on the 21st sent re model on apprenticeships, on shortterm work programs, on partnering were education to get rid of the mismatch between what business is looking and what universities are producing, you know, get a creditation working for apprenticeships so that it becomes muc