Transcripts For ALJAZAM Real Money With Ali Velshi 20140903

Paying taxes. Im ali velshi, and this real money. In this is real money. Youre the most important part of the show. Tell me what is on your mind by eighth ali velshi or facebook. In a bid to reduce tension in the west, Vladimir Putin said a deal to end the fighting is, quote, very close. That after talking on the forth with ukrainian president poroshenko. The ukrainian president took that one step forward and said that putin agreed to a ceasefire on the ground. But they rejected any peace deal that would not give them full autonomy without a federal ukraine. Russia backs the rebels to the hilt, and n. A. T. O. Wont defend ukraine against russian aggression. All of this is focusing n. A. T. O. Like a laser beam on collective defense of its actual members in eastern europe. All these countries in blue. President obama flew to estonia today to drive home that point. But theyre ham strung not to station permanent bases along its borders. The problem is thats exactly what countries like estonia and poland are demanding now as they watch russia walk all over ukraine. How do you square that circle . That will take up the discussion with n. A. T. O. Leaders tomorrow. Now the alliance in collective defense is inclined in article 5 of the n. A. T. O. Treaty. It mandates an attack on one member is considered an attack against all, and all members are required to come to each others defense. So far russia is not signaling aggressive moves on neighbors who have joined n. A. T. O. But the alliance is bracing itself for a new cold war 21 years after the first one ended. And more americans who make up the bulk of n. A. T. O. s might, that means new commitments from poland and estonia. We have more. Drawing a line for the balance text. Reaffirming the u. S. Commitment to defend its n. A. T. O. Allies. Estonia will never stand alone. Nato has struggled to mount an Effective Response against annexation of crimea. The expansionest mov expansion ist move brings fear to the areas. Poland and the Baltic States have lobbied n. A. T. O. For permanent basis. Calling it divisive in the alliance. Those opposed argue fixed bases would violate the n. A. T. O. Russia founding act, an agreement that president obama acknowledged wednesday has been placed under strain. The circumstances clearly have changed. N. A. T. O. Troops rotate through eastern europe. The u. S. Is deploy the 600 Ground Troops in october to replace 600 pair tradition troopers participating in joint exercises. The u. S. Will send combat aircraft to poland and will take part in policing missions over the baltics. It is an explicit the guarantee with a new Rapid Reaction force monday. But that did not stop estonias president calling for permanent bases warning that a twotiered n. A. T. O. Sends a wrong signal to potential aggressors. Now, in truth the Baltics States theyre not at high risk of being invaded by russia. Their economies are vulnerable to russian aggression. Its not just if it will come to your aid. Besides being an overt Russian Military ingas station is this hyper warfare. There is a risk that Baltic States face that russia will apply similar nonmilitary tactics in trade embargoes, tying off energy flows, even possibly stirring up ethnic tension among the russian population there is. These are all things that the baltic countries are viewing as a bigger risk to them. That last one is important, stirring up ethnic tensions amongst russian minorities who live in those countries. Like ukraine, those countries, those Baltic States do have in some cases significant russian minorities and people who remember the days when they were part of the soviet federation. I think its very clear there is a big drinks between the Baltic States and ukraine. Theyre members of nato and protected by nato. Anything that russia tries to do in those countries are going to be subject to n. A. T. O. s article 5, that n. A. T. O. Would respond to them. In general this whole idea that Vladimir Putin has, that he can control russianspeaking population outside of russia is something that we should takeoversly, and reall andtake seriously and not put up with. We have a prey world war ii that happened at the time. But we have to believe the argument that ukraine matters more to russia than ukraine matters to anyone else. It is not a member of the e. U. Or n. A. T. O. Its a very different story if russia walks into these other countries that are either e. U. Members or nato members. That is correct. Thats why i think president obama when he visited today made it very clear that u. S. And n. A. T. O. Fanned fully behind the Baltic States and laid out how the u. S. And n. A. T. O. Were going to provide their security following russian aggression in ukraine. Sending more troops even if not on a permanent basis, there are troops there on occasional basis and having the n. A. T. O. Response that would be able to respond more quickly. These are all things taken together that would make alliance stronger. Play this out for me. Member countries are compelled to come to each others defense as if it were an attack on their own soil. We know that 24 of the 28 n. A. T. O. Members dont fund their militaries to a level that n. A. T. O. Recommends. They dont actually have access to fund to do anything, are we betting that Vladimir Putin doesnt have his troops set foot in a n. A. T. O. Country . Are we betting that it just doesnt escalate . I think for a long time a lot of people in europe this problem did not exist, that europe was secured. The Baltic States have been the most vocal warning for the tendencies of seen in russia under Vladimir Putin. They now feel vindicated, and unfortunately, theyve been proven right. Europe is beginning to wake up and i would suspect european will take scur security more seriously going forward. And they would increase their defense spending something that the u. S. Has been complaining about for a very long time. That might be the biggest take away from the n. A. T. O. Meeting in wales. Good to talk to you. Thank you for being with us. My pleasure. Erik, at th. Towns and workers like you have a lot to do, and ill tell you how the. August was a hot month for car companies. Pushing sales to an annual rate of 17 million cars. A number not seen since 2006. Heavy incentives are credited with boosting sales. Car makers sold 1. 5 million cars in august, thats a 5 increase from last year. Chrysler wholesales jumped 20 from a year ago. General motors posted a 1 drop and sales were flat. Orders for factory goods shot up more than 10 in the month, and thats the biggest one month gain in 22 years. The command for aircraft provided another boost. Outside of transportation factory orders fell. And they expect Factory Production to provide solid support for Economic Growth in the second half of this year. The United States has moved up in the rankings of competitive economies. The United States ranked number three up two spots from last year. But u. S. Still trails it switzerland and singapore. And as you can see finland and germany round out the top five. The World Economic forum is the notforprofit forum in switzerland that bases the competitive rankings on 12 factors including the strength of the countrys infrastructure, institutions, and they help the u. S. Leapfrog finland and germany on the latest list. The u. S. Is moving higher on that scale but still face as number of challenges. One of them involves something that the World Economic forum calls social sustainability, the access all members of society has to Economic Prosperity in the country in which they live. It is impropering less than other advancing economies because of high levels of economy and youth unemployment. This inequality, its something that the Economic Forum has lashed on to the la few years. How does the u. S. Fit into the rest of the world. On one level we have more people moving out of poverty than ever before. And yet weve got this growing inequality problem. When weve seen growth over recent years a lot of growth has accrued to the wealthiest. What is happening now although its not causing massive social unsustainability in the u. S. Weve seen it in other places and this is something that could end up hed roding at the social fabric and the ability to be productive, the sense that people have of being able to move up. Yes, this economic upward mobility is an important matter. If i dropped to earth from mars and look at economic indicatessers i think everything is fine in the United States. The stock market is up, i dont know how many percent since the lows of 2009. Up 35 in two years. Home prices have gotten higher and higher. Its easier to get a loan. Interest rates are lower. And yet half of society is benefiting from this. Its that, and i think what youre talking about are shortterm measures. If you look at longer term measures thats where the concerns are really. If you look at educational attainment. If you look at the quality of the educational system which is part of the social equality were talking about, these are significant concerns. Also if you look at infrastructure. Its really crumbling in places in the u. S. These are things that are important in terms of investing in the future for all of us. The infrastructure question around the world is so fascinating because rates at which you can borrow money to build the best infrastructure in the world are as low as they have been in a long time. Probably as low as they can be for a long time. Has the rest of the world struggled in these commitments to build infrastructure, and to remain competitive in the long term . It depends on the country. This comes back to the concerns that you touched on in the beginning which relate to the political class. In china they can think longer term that investment is taking place. In places like the u. S. Where its harder to think longer term, i think that is something that is holding us back. And if you look at the developing countries, if you look at places like africa its really a question of return on investment. I think everybody is struggling with it, but for different reasons. Some of the problems that you identify in the report about doing business in the United States. This is just another way of competitiveness. Tax regulations inefficient government, bureaucracy, access to financing and regulations. These two are coming into play. Were talking about these inversions, burger king buying a Canadian Company to become a Canadian Company. Only some of this is about tax rate. Moswe here that its the highest tax rates in the world. A lot of companies dont pay it. This is trickier, tax regulations. This is the loopholes and the complexity of dealing with the tax rates in the United States. This is true as well for individuals. There needs to be more clarity. I think the u. S. Has to align itself more with the sorts of rules that you have in other countries. Its not just about rates. Its about the tricks that you come up with and all of those complexities. When you look to attract Foreign Investment youre looking for a level of simila simplicity. Also knowing i will pay income earned within the country. Not everywhere that it is earned. However, despite all that, people still want to come and do business in the u. S. Absolutely. Weve been talking about the problems and im concerned with some of them, but if you go back to the strength of the u. S. And the reason why its third out of 144 countries is because its an innovation powerhouse. Its amazing in r d, and businesses collaborating with universities and coming up with the latest inside and getting them to the market quickly. Thats something that many markets envy us for. And that will drive our success. But you have to worried about longer term issues, part of it is immigration. The quality of people you need. You still have a skills gap between those that are needed by Top Companies and emerging companies and education level that a lot of people in the country have. Dealing with Education System directly, but also allowing for migration in the cases where its valuable. Its a good reason. Sometimes you have to have a look at your economy from the outside to understand what some of the more important fixe fixes are. Thank you for joining us. Thank you. Goinwell get the view from ground in iraq. Indias Prime Minister Narendra Modi makes a visit and point to a rock stars welcome. He begins with a speech here in new york on september 28th at Madison Square garden at 20,000 seat arena. This week organizers announced demand is so high the free ticket will be awarded by lottery. After the garden the Prime Minister hits to the white house where president obama will roll out the red carpet. A politician, by the way, once forbidden to set foot on u. S. Soil. He was barred in 2005 for failing to stop deadly antimuslim demonstrations when he was chief minister of his hometown. Now in his role of Prime Minister hes hailed as a Strategic Partner in the United States and a hero at home. His elections sparked a National Celebration and hope for better days. In his bed for Prime Minister Narendra Modi vowed to roll out the red carpet not the red tape to investors. And cutting red tape is much needed. Everything from building roads to rails to factories has been stalled because of governor regulation making it difficult to buy land is one of the problems. Its estimated the sluggish growth and sidelined projects has cost india 104 billion in investments. You hear stories about India Companies who are choosing to invest outside of the country or sitting on piles of cash waiting for the government to become more business friendly before investing that. Modi supporters are optimistic. Some economies say expectations are high. 4054 of voters say yes. Others say the promise was empty. The rest say its too early to tell. Modi needs to hit the reset button, and he has not done that in the first 100 days. Thats a view of met ra, who just came back from india. She joins me now. Good to see you. Welcome back. What do you mean he has not set the reset button on the policy making in india. Hes very project focused. He just unrolled something to have millions of indians to get Bank Accounts, a very successful initiative. What he was voted in for, though, was to hit the reset button on the indian economy, to create 50 million jobs, to get more Foreign Investment in that country and open up sector after sector that has been strangled by red tape. I think there was great expectations, and in some ways that was his campaign promise. Good times are coming. This is what he has got going on. He does, and he has successful projects. The issue is that projects dont create a reset button on policies. They will complain about a political steam strangled unto itself. They have the added issue of financial corruption, but those are the things that happen. Then you pile on to that a legal system which drags initiatives to a halt in many cases. How does this guy do it . The fact is i that did it in his home province. But india is a complicated place. The judiciary system is a strangle hold on the economy. There is a recent initiative that has been a political football where he has sustain Supreme Court appointments and put them under the executive branch. Thats been controversial. On one hand it shows him to be in power and to be in control. But india is a parliamentary no, sir, its not china. Right, its not china. He has been talking the tough talk in some ways like china. Things have to go through parliament and judiciary. Hes wasting no time in letting people know that he does not like china, and china should not be everybodys darling. He was in japan where he called chinas view of the world as 1800 century expansionist and really embraced the japanese. Right, youre seeinghis first hundreds days have been marked by looking outward. Something that we havent seen for quite some time. The criticism of india which wants to be in the Security Council over and over again has been whats your foreign policy. Here modi is going out and saying, japan, we need you. You need us. Hes trying to get infrastructure development, hes also creating political alliances that are going to be important to him going forward. India sufferspeople want to invest in india because it has a market that is more prosperous. You mention these people who will get Bank Accounts but its hard for nonindian companies to invest. And part of that is by design but he wants more Foreign Investment in india. He does. I wants to focus on manufacturing, infrastructure, things where you can get lowskilled jobs and millions of jobs. Sectors like media, which i was interested, is he going to open that up, seem to be less a priority, but nonetheless could usher in great sentiment among foreign investors. We havent seen those promises. He said hes probably not going to do that with retail. The mom and pop is the heart of the indian economy, out of problems for them. Again there, is great hope that hell open up but this is a socialistic economy that is tiptoe its way out of something. 100 days is too little to evaluate anyones performance even here in the Vladimir Putin<\/a> said a deal to end the fighting is, quote, very close. That after talking on the forth with ukrainian president poroshenko. The ukrainian president took that one step forward and said that putin agreed to a ceasefire on the ground. But they rejected any peace deal that would not give them full autonomy without a federal ukraine. Russia backs the rebels to the hilt, and n. A. T. O. Wont defend ukraine against russian aggression. All of this is focusing n. A. T. O. Like a laser beam on collective defense of its actual members in eastern europe. All these countries in blue. President obama flew to estonia today to drive home that point. But theyre ham strung not to station permanent bases along its borders. The problem is thats exactly what countries like estonia and poland are demanding now as they watch russia walk all over ukraine. How do you square that circle . That will take up the discussion with n. A. T. O. Leaders tomorrow. Now the alliance in collective defense is inclined in article 5 of the n. A. T. O. Treaty. It mandates an attack on one member is considered an attack against all, and all members are required to come to each others defense. So far russia is not signaling aggressive moves on neighbors who have joined n. A. T. O. But the alliance is bracing itself for a new cold war 21 years after the first one ended. And more americans who make up the bulk of n. A. T. O. s might, that means new commitments from poland and estonia. We have more. Drawing a line for the balance text. Reaffirming the u. S. Commitment to defend its n. A. T. O. Allies. Estonia will never stand alone. Nato has struggled to mount an Effective Response<\/a> against annexation of crimea. The expansionest mov expansion ist move brings fear to the areas. Poland and the Baltic States<\/a> have lobbied n. A. T. O. For permanent basis. Calling it divisive in the alliance. Those opposed argue fixed bases would violate the n. A. T. O. Russia founding act, an agreement that president obama acknowledged wednesday has been placed under strain. The circumstances clearly have changed. N. A. T. O. Troops rotate through eastern europe. The u. S. Is deploy the 600 Ground Troops<\/a> in october to replace 600 pair tradition troopers participating in joint exercises. The u. S. Will send combat aircraft to poland and will take part in policing missions over the baltics. It is an explicit the guarantee with a new Rapid Reaction<\/a> force monday. But that did not stop estonias president calling for permanent bases warning that a twotiered n. A. T. O. Sends a wrong signal to potential aggressors. Now, in truth the Baltics States<\/a> theyre not at high risk of being invaded by russia. Their economies are vulnerable to russian aggression. Its not just if it will come to your aid. Besides being an overt Russian Military<\/a> ingas station is this hyper warfare. There is a risk that Baltic States<\/a> face that russia will apply similar nonmilitary tactics in trade embargoes, tying off energy flows, even possibly stirring up ethnic tension among the russian population there is. These are all things that the baltic countries are viewing as a bigger risk to them. That last one is important, stirring up ethnic tensions amongst russian minorities who live in those countries. Like ukraine, those countries, those Baltic States<\/a> do have in some cases significant russian minorities and people who remember the days when they were part of the soviet federation. I think its very clear there is a big drinks between the Baltic States<\/a> and ukraine. Theyre members of nato and protected by nato. Anything that russia tries to do in those countries are going to be subject to n. A. T. O. s article 5, that n. A. T. O. Would respond to them. In general this whole idea that Vladimir Putin<\/a> has, that he can control russianspeaking population outside of russia is something that we should takeoversly, and reall andtake seriously and not put up with. We have a prey world war ii that happened at the time. But we have to believe the argument that ukraine matters more to russia than ukraine matters to anyone else. It is not a member of the e. U. Or n. A. T. O. Its a very different story if russia walks into these other countries that are either e. U. Members or nato members. That is correct. Thats why i think president obama when he visited today made it very clear that u. S. And n. A. T. O. Fanned fully behind the Baltic States<\/a> and laid out how the u. S. And n. A. T. O. Were going to provide their security following russian aggression in ukraine. Sending more troops even if not on a permanent basis, there are troops there on occasional basis and having the n. A. T. O. Response that would be able to respond more quickly. These are all things taken together that would make alliance stronger. Play this out for me. Member countries are compelled to come to each others defense as if it were an attack on their own soil. We know that 24 of the 28 n. A. T. O. Members dont fund their militaries to a level that n. A. T. O. Recommends. They dont actually have access to fund to do anything, are we betting that Vladimir Putin<\/a> doesnt have his troops set foot in a n. A. T. O. Country . Are we betting that it just doesnt escalate . I think for a long time a lot of people in europe this problem did not exist, that europe was secured. The Baltic States<\/a> have been the most vocal warning for the tendencies of seen in russia under Vladimir Putin<\/a>. They now feel vindicated, and unfortunately, theyve been proven right. Europe is beginning to wake up and i would suspect european will take scur security more seriously going forward. And they would increase their defense spending something that the u. S. Has been complaining about for a very long time. That might be the biggest take away from the n. A. T. O. Meeting in wales. Good to talk to you. Thank you for being with us. My pleasure. Erik, at th. Towns and workers like you have a lot to do, and ill tell you how the. August was a hot month for car companies. Pushing sales to an annual rate of 17 million cars. A number not seen since 2006. Heavy incentives are credited with boosting sales. Car makers sold 1. 5 million cars in august, thats a 5 increase from last year. Chrysler wholesales jumped 20 from a year ago. General motors posted a 1 drop and sales were flat. Orders for factory goods shot up more than 10 in the month, and thats the biggest one month gain in 22 years. The command for aircraft provided another boost. Outside of transportation factory orders fell. And they expect Factory Production<\/a> to provide solid support for Economic Growth<\/a> in the second half of this year. The United States<\/a> has moved up in the rankings of competitive economies. The United States<\/a> ranked number three up two spots from last year. But u. S. Still trails it switzerland and singapore. And as you can see finland and germany round out the top five. The World Economic<\/a> forum is the notforprofit forum in switzerland that bases the competitive rankings on 12 factors including the strength of the countrys infrastructure, institutions, and they help the u. S. Leapfrog finland and germany on the latest list. The u. S. Is moving higher on that scale but still face as number of challenges. One of them involves something that the World Economic<\/a> forum calls social sustainability, the access all members of society has to Economic Prosperity<\/a> in the country in which they live. It is impropering less than other advancing economies because of high levels of economy and youth unemployment. This inequality, its something that the Economic Forum<\/a> has lashed on to the la few years. How does the u. S. Fit into the rest of the world. On one level we have more people moving out of poverty than ever before. And yet weve got this growing inequality problem. When weve seen growth over recent years a lot of growth has accrued to the wealthiest. What is happening now although its not causing massive social unsustainability in the u. S. Weve seen it in other places and this is something that could end up hed roding at the social fabric and the ability to be productive, the sense that people have of being able to move up. Yes, this economic upward mobility is an important matter. If i dropped to earth from mars and look at economic indicatessers i think everything is fine in the United States<\/a>. The stock market is up, i dont know how many percent since the lows of 2009. Up 35 in two years. Home prices have gotten higher and higher. Its easier to get a loan. Interest rates are lower. And yet half of society is benefiting from this. Its that, and i think what youre talking about are shortterm measures. If you look at longer term measures thats where the concerns are really. If you look at educational attainment. If you look at the quality of the educational system which is part of the social equality were talking about, these are significant concerns. Also if you look at infrastructure. Its really crumbling in places in the u. S. These are things that are important in terms of investing in the future for all of us. The infrastructure question around the world is so fascinating because rates at which you can borrow money to build the best infrastructure in the world are as low as they have been in a long time. Probably as low as they can be for a long time. Has the rest of the world struggled in these commitments to build infrastructure, and to remain competitive in the long term . It depends on the country. This comes back to the concerns that you touched on in the beginning which relate to the political class. In china they can think longer term that investment is taking place. In places like the u. S. Where its harder to think longer term, i think that is something that is holding us back. And if you look at the developing countries, if you look at places like africa its really a question of return on investment. I think everybody is struggling with it, but for different reasons. Some of the problems that you identify in the report about doing business in the United States<\/a>. This is just another way of competitiveness. Tax regulations inefficient government, bureaucracy, access to financing and regulations. These two are coming into play. Were talking about these inversions, burger king buying a Canadian Company<\/a> to become a Canadian Company<\/a>. Only some of this is about tax rate. Moswe here that its the highest tax rates in the world. A lot of companies dont pay it. This is trickier, tax regulations. This is the loopholes and the complexity of dealing with the tax rates in the United States<\/a>. This is true as well for individuals. There needs to be more clarity. I think the u. S. Has to align itself more with the sorts of rules that you have in other countries. Its not just about rates. Its about the tricks that you come up with and all of those complexities. When you look to attract Foreign Investment<\/a> youre looking for a level of simila simplicity. Also knowing i will pay income earned within the country. Not everywhere that it is earned. However, despite all that, people still want to come and do business in the u. S. Absolutely. Weve been talking about the problems and im concerned with some of them, but if you go back to the strength of the u. S. And the reason why its third out of 144 countries is because its an innovation powerhouse. Its amazing in r d, and businesses collaborating with universities and coming up with the latest inside and getting them to the market quickly. Thats something that many markets envy us for. And that will drive our success. But you have to worried about longer term issues, part of it is immigration. The quality of people you need. You still have a skills gap between those that are needed by Top Companies<\/a> and emerging companies and education level that a lot of people in the country have. Dealing with Education System<\/a> directly, but also allowing for migration in the cases where its valuable. Its a good reason. Sometimes you have to have a look at your economy from the outside to understand what some of the more important fixe fixes are. Thank you for joining us. Thank you. Goinwell get the view from ground in iraq. Indias Prime Minister<\/a> Narendra Modi<\/a> makes a visit and point to a rock stars welcome. He begins with a speech here in new york on september 28th at Madison Square<\/a> garden at 20,000 seat arena. This week organizers announced demand is so high the free ticket will be awarded by lottery. After the garden the Prime Minister<\/a> hits to the white house where president obama will roll out the red carpet. A politician, by the way, once forbidden to set foot on u. S. Soil. He was barred in 2005 for failing to stop deadly antimuslim demonstrations when he was chief minister of his hometown. Now in his role of Prime Minister<\/a> hes hailed as a Strategic Partner<\/a> in the United States<\/a> and a hero at home. His elections sparked a National Celebration<\/a> and hope for better days. In his bed for Prime Minister<\/a> Narendra Modi<\/a> vowed to roll out the red carpet not the red tape to investors. And cutting red tape is much needed. Everything from building roads to rails to factories has been stalled because of governor regulation making it difficult to buy land is one of the problems. Its estimated the sluggish growth and sidelined projects has cost india 104 billion in investments. You hear stories about India Companies<\/a> who are choosing to invest outside of the country or sitting on piles of cash waiting for the government to become more business friendly before investing that. Modi supporters are optimistic. Some economies say expectations are high. 4054 of voters say yes. Others say the promise was empty. The rest say its too early to tell. Modi needs to hit the reset button, and he has not done that in the first 100 days. Thats a view of met ra, who just came back from india. She joins me now. Good to see you. Welcome back. What do you mean he has not set the reset button on the policy making in india. Hes very project focused. He just unrolled something to have millions of indians to get Bank Accounts<\/a>, a very successful initiative. What he was voted in for, though, was to hit the reset button on the indian economy, to create 50 million jobs, to get more Foreign Investment<\/a> in that country and open up sector after sector that has been strangled by red tape. I think there was great expectations, and in some ways that was his campaign promise. Good times are coming. This is what he has got going on. He does, and he has successful projects. The issue is that projects dont create a reset button on policies. They will complain about a political steam strangled unto itself. They have the added issue of financial corruption, but those are the things that happen. Then you pile on to that a legal system which drags initiatives to a halt in many cases. How does this guy do it . The fact is i that did it in his home province. But india is a complicated place. The judiciary system is a strangle hold on the economy. There is a recent initiative that has been a political football where he has sustain Supreme Court<\/a> appointments and put them under the executive branch. Thats been controversial. On one hand it shows him to be in power and to be in control. But india is a parliamentary no, sir, its not china. Right, its not china. He has been talking the tough talk in some ways like china. Things have to go through parliament and judiciary. Hes wasting no time in letting people know that he does not like china, and china should not be everybodys darling. He was in japan where he called chinas view of the world as 1800 century expansionist and really embraced the japanese. Right, youre seeinghis first hundreds days have been marked by looking outward. Something that we havent seen for quite some time. The criticism of india which wants to be in the Security Council<\/a> over and over again has been whats your foreign policy. Here modi is going out and saying, japan, we need you. You need us. Hes trying to get infrastructure development, hes also creating political alliances that are going to be important to him going forward. India sufferspeople want to invest in india because it has a market that is more prosperous. You mention these people who will get Bank Accounts<\/a> but its hard for nonindian companies to invest. And part of that is by design but he wants more Foreign Investment<\/a> in india. He does. I wants to focus on manufacturing, infrastructure, things where you can get lowskilled jobs and millions of jobs. Sectors like media, which i was interested, is he going to open that up, seem to be less a priority, but nonetheless could usher in great sentiment among foreign investors. We havent seen those promises. He said hes probably not going to do that with retail. The mom and pop is the heart of the indian economy, out of problems for them. Again there, is great hope that hell open up but this is a socialistic economy that is tiptoe its way out of something. 100 days is too little to evaluate anyones performance even here in the United States<\/a>. Great to see you. Real pleasure to have you. The editor, a site you need to be involved in on a daily basis. Im following the oil tangors that are circling the globe looking to sell but cant seem to find buyers. Plus how the white house could change the rules to Keep Companies<\/a> like burger king from skirting taxes from socalled inversion deals. The United States<\/a> confirmed the authenticity of a video released yesterday that shows the beheading of an american journalist captured in syria. He was beheaded after the killing of another american journalist james foley. President obama vowed to destroy the group hyped the killing. They have been taking advantage of the vacuums left by civil conflicts in countries. Iraqi forces are preparing to take back two major cities in the north from Islamic State<\/a> insurgents. In june the insurgents seized two cities, mosul and tikrit, but since then Iraqi Forces Say<\/a> they have been able to push Islamic Forces<\/a> back from tikrit. Al jazeeras josh rushing joins us from iraq with the latest on whats happening both with Islamic State<\/a> and this band of groups disparate groups on the side of the line that youre on, josh. Thats right, ali. The Islamic State<\/a> ripped across Northern Iraq<\/a> and created this enormous threat that every has responded to, and since the airstrikes started two weeks ago theyve been able to push them back almost with the same speed towards syria. I think its quite surprising how influential the u. S. Airstrikes have been. Still major battles to mosul will be a significant battle. Thats a huge city that they have to go house to house so far it seems when the Islamic State<\/a> knows the forces are coming theyve been retreating and heading back towards syria. The next questions becomes what happens once the Islamic State<\/a> leaves. A lot of same conditions that created it, the vacuum, will remain. Were seeing politics or war is politics by another means, youre seeing all these groups on the ground thinking what is that next step. For example, peshmerga with the kurds are reaching further south than they have to kirkuk, which could help them with indians. The sunni tribe which enabled the Islamic State<\/a> to move across iraq is using this in baghdad. They pulled out of the political process in forming a new government, and they say they control the keys of kicking Islamic State<\/a> completely out of iraq, but they dont want to do it. So certain rights are enshrined for them. So they want to be players in the game, and the next government, and theyre using this to their advantage. The shia political shah are also involved. They want to keep that in control in baghdad. Iran has fighters here because they want to keep their influence going in baghdad. Youre seeing the politics play out in the name of war. Thats remarkable that politics have stalled in baghdad. President obama saying hes not doing anything until they solve that problem in baghdad. But in fact, youre seeing it getting solved. Were seeing something, sending 350 more advisers. Youre a retired marine officer, you know what that language means. Tell us what kind of people are these 350 . Are they military advisers . Strategic advisers . The marines are stationed around the world to protect embassies. Thats what were being told thats what these forces are. There is a disconnect between why theory sending them, and obama saying he wants to degrade and destroy the Islamic State<\/a>. You dont destroy the Islamic State<\/a> by increasing your diplomatic security. This could be more about the politician in washington than what has happened on the ground in iraq. This could be president obama dipping his toes in the political waters to see what the backlash might be if he increases troops in iraq. And bengahzi, he wants to fortify what the diplomatic, the consults here in erbil, which are enormous, and the embassy in baghdad to make sure that that does not happen. That seems unlikely because the embassy and consulate are far more secure and safe than two or three weeks ago before the momentum shifted on the ground here. What an interesting story. Stay safe where you are, josh rushing in erbil, in Northern Iraq<\/a>, kurdish control in Northern Iraq<\/a> at the moment. The president said he is not going to order military actio actionens i. S. Like josh said, unless hes shower the mission would be effective and allies at home and abroad supported it. Mike viqueira is at the white house. You just heard what josh had to say about this. Its unclear. What does politically how do you get tougher . Its unclear when it comes it syria. Theyre still formulating the policy. What we do know is its going to be predicated on many arab states including sunni governments to get involved monetarilily and other means, to get behind this effort now. As far as what is happening in iraq and the airstrikes that continue against Islamic State<\/a> group forces by u. S. Air assets, look, the Obama Administration<\/a> has made some choices here. They put in, you talk about the 350 additional diplomatic security. That brings a total of 820 people with that military personnel. Many have helped evacuate americans. Instead of doing that the administration decided to go forward with these airstrikes to assist the iraqi army and Security Forces<\/a> as well as the peshmerga in pushing back the Islamic State<\/a> group forces, an effort as josh reported is meeting with some success. Now into that vacuum, into that area you do have some semblance at least of a federal authority to move in and take over. And install what is the status quo ante. Into a border that the they insist does not exist any more. That is the concern at the present. He said again what happens the day after you start these strikes. There are not going to be american boots on the ground, who fills that vacuum. Thats the occupation of the white house. As they go back over the iraqiborder, that isnt there any more. Thi ali, josh was talking about the american politics. We heard what some people are interpreting as more contradictions from the president in one press conference. He goes to the n. A. T. O. Summit in wales. The president said were going degrade and destroy the Islamic State<\/a> group and then said hes going to get it down where its manageable. That raised eyebrows and caused consternation especially those wh whose midterms are up in up in weeks. And joe biden said were going to follow them to the gates of hell. Typical joe biden bomblast. And youre talking about retribution and full on invasion, something that the administration wants to do eventually, but they still havent decided how theyre going to go about doing that and who are is going to do it for that matter. Political kayous that mike has been talking about in iraq has give iraqi kurds new opportunities to export their own oil. Tankers have been sailing around the world trying to off load crude but as Barnaby Phillips<\/a> explains, finding buyers has been a problem. Oil has been loaded on tangors in recent weeks. Perhaps 10 to 12 ships in all since june. We believe three are currently at sea. One of the tangors, the united leadership has been anchored off the coast of morocco for some three months. And another tankser is thought to be off the u. S. State of texas in the gulf of mexico. The third tanker, the united emblem was in the South China Sea<\/a> where it unblowed much of its cargo to another mystery ship. Analysts say tracking these movements is no easy task. So we have this situation with a number of vessels that are Holding Significant<\/a> quantities of oil that are floating around in various parts of the world. We have had other vessels that have done ship to ship transfers. Theyve moved the vessel from one place to another. Often that can be difficult to track the identity of the vessel that the oil has gone into. Which makes it easier to sell because there is relatively little providence and there is not easy to trace. Theyve asked the u. S. Government to seize the oil on board. There is a question of who it belongs to, and who profits from it. When you hear about the dispute between the government and Regional Government<\/a> you find that both of them speak about the constitution, and their right to do this and that. I think because the constitution is so ambiguous they are both right. There are reports that the iraqi kurds have succeeded in selling oil to croatia and israel. But with the Iraqi Government<\/a> threatening legal action against refinery who is take kurdish oil, many countries are not keen to receive it. What happens depends on a stable and truly inclusive government. Tesla appears to have made up its mind where to build a massive battery factory. A massive battery for factories. We look at the factories and the jobs, stay with us. So last week burger king made a whooper of a deal with tim hortons. The 11. 4 billion merger should curb the burger king tax bill by moving its Company North<\/a> of the border. But its just the latest of Corporate Tax<\/a> inversions. 47 u. S. Companies have lowered their tax bills by reincorporates abroad in the last decade. Thats compared to the 29 in the prior two decades. Many say that the u. S. Needs a total overall to fix things problems. But there are two chances of that happening soon. One is slim and the other is none. But there may be a few tweaks that president obama can make on his own kraut congress. There are five different ways the Treasury Department<\/a> is exploring to make sure that Companies Like<\/a> burger king pay their share. Before we get into those five ways which you have examined in greater detail than anyone ive ever met, kelsey, thank you for being with us. Why the acceleration in companies that are going for inversions . Has this got to do with the fact that other countie countries have reduced tax rates . Thats the expectation, and if a company sees they can pick up a smaller competitor or even in the case of burger king and tim hortons a fairly sizable competitor with much lower tax rates . There are easier ways to do that. Burger king and tim hortons example would move them from a 35 rate top to 15 in canada. But in fact many Multi National<\/a> corporations dont pay the 35 , so it gets to be a little bit of a red herring. But there is an issue of territorial tax and different tax systems. The u. S. Is one in a handful of companie countries that charges tax wherever they make money. And whenever they bring it back in the United States<\/a>. If thee leave it sitting offshore or defer it, they dont pay those taxes which makes it difficult to find out how much a corporation actually pays. The system is a little bit broken. Its not all burger kings fault. But fix it is a difficult and income gets i nobody gets it done. Youve found five ways to work around congress with small fixes that curb some of these things. Is that a good idea for congress to worke to work with president obama on this . A lot of it is based on economists, particularly a professor were harvard has put out ideas on what he thinks could happen, but there is hesitancy to determine that theyre legal. And once determine first degree theyre legal, its another question if theyll work. We can mostly think that its legal, and go ahead with it and play the political game by saying americans, were looking out for your interest. That could work for democrats at midterm elections and it could also come back and bite them. Right, its really hard to tell people who have nothing to do with Corporate America<\/a> that they should get excited about some obscure thing like corporate inversion. The question will be whether or not democrats can find a way to message that correctly, and if republicans can seize on the opportunity if the white house takes action to say, look, its another opportunity for the white house to do executive overreach, and theyre stepping outside of the bounds of what their job is. And reading through the great job of what you did to identify the five different ways are, none of them make for a Good Campaign<\/a> commercial. Theyre complicated. They really are, the most accessible one, the idea that you would change the levels that a company is required to keep a number of people and the amount of money the company is required to keep in the u. S. To stay an u. S. Company, thats something that people can wrap their heads around. Right now a company would have to move 20 of their ownership and their money to the foreign subsidiary to avoid paying taxes. The white house and democrats would like to move it so its 50 . The question there is a Company Going<\/a> to pick up and move a whole bunch of executives out of the United States<\/a> and then cost jobs . Its a sticky little place to be in. Good to talk to you. Thank you so much for being with us. A tax reporter for politico. Well, the fivestate contest to be home of teslas massive battery factory appears to be over. Reports say the winner is nevada. The highly soughtafter factory will make a nun generation of electric cars batteries california, arizona, new mexico, and texas, nevada governor said only that the governor will make a Major Economic<\/a> Development Announcement<\/a> in carson city thursday afternoon. Tes esla spokesperson will make the announcement. With us is shawn whaley. He said this is the biggest news to come out of nevada in arena years. Inside of nevada there are discussions where it will be. Your best guess is reno because tesla was looking at a lot of places. But the headline, 60,000 jobs for nevada is a big deal. It really is, nevada has been one of the worst situations nick economy with the recession. We have not entirely recovered. Unemployment rate has been higher than most other states, so this is huge Economic News<\/a> for a state that really wants to diversify its economy and bring jobs to the state. What is it likely that nevada has that attracted tesla . What was the selling point . Thats interesting. One of the items i heard was that the access to our plentiful alternative energy sources. We have geothermal, wind, the sun shines pretty much year round here, and the company because its a greenoriented company, electric carmaker is very much interested in exploiting those resources. That was a big factor for their decision. The other things i hear are tax rates are very good. There are no personal or business tax that would affect tesla, and, nevada being a state with a lot of mining industry, there are a lot of things in play that appear to work in our favor. Obviously 6,50 6500 jobs, some of them will be manual, and some skilled labor. What is the workforce in nevada. The situation is that our workforce is not as plentiful as they would like, but one person told me what will happen is that well have an appliation o migration of people coming in to secure these jobs. Even though the workforce situation may not be up to the knees in the plant, by the time the facility is ready to go, and people are hired and employed, well probably be in pretty good shape. Whawhat a pleasure to talk with you, sean whaley, the chief of the Las Vegas Review<\/a> journal. Cvs stopped sells Tobacco Products<\/a> today. It makes it the first large pharmacy chain to stop selling Tobacco Products<\/a>. It will give up 2 billion in annual revenue from sales of Tobacco Products<\/a> but hoping to boost revenue by repositioning itself as a basic Healthcare Provider<\/a> focusing on 900 walkin clinics and managing pharmacy benefits. In keeping the emphasis on healthcare it rolled out a new corporate name from cvs care to cvs health. If youre behind on rent, ill tell you why more americans are getting evicted from their homes these days. Coming up next, the merchants of venice revolt against cheap tourists. What they may do do tourists who dont spend any money. Im John Seigenthaler<\/a> in new york. Coming up right after real money at the top of the hour, a new threat from alqaeda and a plan to spread into new territory, and what it means for the world. And plus what n. A. T. O. Can do to force russia to back down. Well talk with swedens foreign minister. And the new helmet designed to protect pro football players. All that and more after real money. Who doesnt love venice . The italian city gets 20 million visitors a year, but soon tourist also have to pay just to visit the city of canals. Locals are tired of day trippers who dont spend much money. Now officials are proposing a daily fee. No doubt that venice is pretty. No doubt it can be pricey, too, unless you do it on a budget. Good for the visitors who come for the day. Bad for business who is are not happy with the day trippers. Its becoming possible to walk around anywhere. These people eat, sleep, and urinate in the street everywhere. You shouldnt be allowed into venice without knowing the rules. To stay here even for one day. The answer, charge day visi visiters for entry. Pay as you come, not pay as you go. 40 a day. Controversial, yes. Enforceable . Maybe. Its only an idea suggested by a minister but it is a history by venetians. This ancient city is full of crumbling buildings. Buildings that tourists come to see, but buildings which cost a small fortune to mix or even maintain. And venice is in engulfed in a massive Corruption Scandal<\/a> and money has gone missing. When it comes to finding the all important funds its the visitors who will pay that pri price. We cant control the numbers of visitors but creates problems if we consider venice as a city. We need to have like a city, and not to have a disneyland for venice. Venice already has a charge for tourists. That came in three years ago around 8 a night for those who stay over. The authorities preview the words cultural donations to tax. Question is yet another charge a step too far . Its too much. I wont come back. It will be my last visit. I think its not possible. Its not physically possible to stop tourists from coming in. We couldnt get anyone to talk to us at the mayors office. The Corruption Scandal<\/a> means no politicians are around especially when tv cameras are nearby. As for venice, this place has long been named a theme park for adults. And just like one those visitors may soon have to pay for the ride. Gratgreat story, dumb idea. Beige book. This is not the real one but a prop that i drag out. Its a report that comes out eight times a year. And inside is a summary of u. S. Economic conditions broken down by industry and by region. In the most recent edition feds say Economic Activity<\/a>, quote, continued to expand since the last report, which was in july, at a moderate pace. It showed modest growth and some companies had a tough time filling jobs especially skilled labor. If youre a truck driver, construction work or know a thing or two about computer programming, there is demand for your work. Sales in cars showed acceptsly strong growth. That was helped along by lending. Auto loans was the strongest lending category in most places. Still, most areas reported missed consumer confidence. Consumers in places like ohio and virginia were visit in their discretionary spending. The money spent makes up twothirds of Economic Activity<\/a> in this country. The fact that consumers are Still Holding<\/a> back in some, not all parts of the country is something that matters. The first hints of a down turn usually show themselves when consumers start to sit on the fence with their spending. They sense something that the other parts of the economy is slow to see. Time and again weve seen the consumer is never wrong when it comes to these things. This report shows an economy that continues to improve, weve come a long way from the last economic down turn but keep an eye on that mixed confidence trend and see if it changes by the time the next beige book comes out. That is our show for today. Im ali velshi. Thank you for joining us. This is al jazeera america, im John Siegenthaler<\/a> in new york. We will follow them to the gates of hell. Tough talk from the Vice President<\/a> about the Islamic State<\/a> group. Plus a new threat from al qaeda. Crisis in ukraine. Confusion about the possible ceasefire. Other options. Cybertalkers, taking material from other americans whats the motive. Bodies in your backyards. 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