u.s. he simple hasn't aktd. that trade debt is choking the economy, there's not enough demand for what americans make and the economy doesn't move forward. >> he doesn't have a compliant congress, specifically the house of representatives. >> that's true. the reason he doesn't is because he squandered his first year. now as a consequence, the country elect add congress that wants a change in direction. the congress for its part doesn't seem much capable of providing it. to say mr. obama is alone in getting us out of this mess isn't fair. the republicans aren't providing a path either. >> the author of "it takes a pillage" an epic tale of power, deceit and untold trillions. welcome. the public gives president obama trouble on the economy. only 9% said better, 37 made it worse. 37% said he made it worse. is the president a victim of the economy or has he exacerbated here. >> certain policies haven't made things better. on the other hand, it's because those policies haven't really addressed not the financial crisis but how the banking system has been a culprit in continuing the problem that the financial that began in 2008 showed in that it isn't helping to refinance loans. it isn't extending loans to small businesses which employ nearly 50% in this country and create 48 to 50% of small jobs. when people are upset or confused, which those numbers show, or negative, it's because it's a result of what's happening. better job creation isn't positive. whatever those policies are isn't helping that. also not having a policy that addresses the fact that the banks continue to deteriorate themselves and the economy and not assist in giving forward to the population either in the form of small business loans for jobs, refinancing for mortgage market when the housing market continues to tank and foreclosures continue to rise, the necessity to lend money they received in cheap subsidies from the government and federal reserve that's a mishandling. >> let's bring in a senior writing at cnn money. the president announced his debt reduction plan to the nation. republicans slammed that plan saying we see a lot of taxes. but where are the major spending cuts? there were some $500 billion in spending cuts, but the bulk of this is paid for by taxing the rich. do they have a point? >> they do have a point but more from the fiscal hawk side than political side. senior administration officials basically said this is not a compromise proposal. this is really the direction the president would like to go. this is not about the the summer's negotiation over the debt ceiling. what he did, a third of his savings comes from higher taxes, two-thirds from spending. fiscal hawks say it's not really two-thirds because one-third is from spending drawdown which was going to happen anyway. it's a big debate whether those should count as deficit reduction. he doesn't attack entitlement programs very much. social security isn't the plan. medicare and medicaid cuts are mostly on the administrative side which has to happen to but not as comprehensive as they were hoping for. >> was this political positioning or positioning for the economy? that's what i'm wondering? >> the more i think about it having covered it, i really think it was more of a political stance document. he's going to get a lot of support for taxing the rich more. fiscal hawks, anybody really serious about the budget says that has to happen but they say other people need to be taxed more. he's really trying to appeal to his base as much as anything else with this document. >> peter, you brought in structural deficits, structural imbalances earlier on in the program. it's something you and i talked about for years now. when you look around, do you see any of the big problems, the big imbalances that cause this whole crisis in the beginning. do you see them moving in the right direction? >> no, i don't. the trade deficit with china is getting worse. oil dependence stabilized in terms of the quantity, the prices have risen and president reducing u.s. production. on the banking side, which we heard a lot about big bangs are monopolizing, share over 50%, they are acquiring deposits not because they want to make loans to regional customer that is need them, small business, homeowners but so they can trade and do business with large corporations very often financing outsourcing. my opinion is the banking system is dysfunctional, not in business for america, simply in business for itself. the president of the united states bears responsibility. this is happening on his watch. >> we've got 13 months until the next election. is it fair to say you've got all parties in washington working quickly to try to come up with important policies to mitigate the pain of unemployment, rising deficits and a slowing economy worldwide or have we turned completely into campaigning mode already? >> i think we've been in campaigning mode since obama came into office. it's worse because the general economy has continued to deteriorate because financial and banking infrastructure has not been addressed. all the conversations happening in washington about whether it's a spending cut, social security, which is really not the problem are failing to address the fundamental problem of a banking system in the because it's consolidated deposits but fundamentally deteriorating our entire economy as it stands. that is being addressed. we raised -- the treasury department issued $4 trillion worth of debt in the last two and a half years, $1.6 trillion sits on the federal reserve books through banks from treasury to banks to fed doing absolutely nothing productive. think how many jobs we could create with $1.6 trillion. we are debating a $400 billion stimulus. we're just focusing on a minor part of the problem and ignoring the bigger problem. >> you know, jeanne, here is the situation, if we're in campaign mode and you have this delicate operation that needs to happen, long-term deficit reduction and short-term you have to show the world you're serious about deficit reduction but not so quickly and indiscriminately it's going to hurt your economy that's going to take nuance and finesse and there's not a lot in washington. >> there's none whatsoever. yes, people who, again, are very serious about the budget say we do have to go on two tracks at once. republicans aren't having it. they don't want any sort of stimulus really. they think cutting the deficit will be stimulus enough that alone will help job creation. a lot of economists don't agree with that position. president obama for his part, he's proposed a jobs plan that isn't really going to garner bipartisan support. he gets credit for a plan but a plan he knew walking out of the gate wouldn't get everybody on board. >> stay where you are. treating the crisis as an emergency, one president says it's long overdue. that's next on "your $$$$$." even though i'm a great driver, and he's... not so much. well, for a driver like you, i would recommend our new snapshot discount. this little baby keeps track of your great driving habits, so you can save money. [sighs] amazing. it's like an extra bonus savings. [ cackling ] he's my ride home. how much can the snapshot discount save you? call or click today. accept it. you can't change the way banking works. just accept it, man. free ? doesn't close at five ? try nature. you give them all your money, and they put you on hold. just accept it. what are you going to do, bury your money in the backyard ? accept it. just stay with the herd, son. accept it. it's only money. it's a bank. what do you want, a hug ? just accept it, friend. hidden fees, fine print, or they'll stick it to you some other way. smile and accept it. it's been this way since pants. accept it... just accept it. accept it. i'm a doctor. just accept it. accept it... accept it. just accept it ! if we miss this movie, you're dead. if you're stuck accepting banking nonsense, you need an ally. ally bank. no nonsense. just people sense. now that president obama announced his plan. the plan is due in november. will the super committee succeed where so many others have failed? >> they are asked to do so much in a short time. they are asked to reduce by $1.2 trillion. there's a lot of pressure to go buck. they are asking to form a tax code, cut jobs, show the world the congress can function. they have to write this in legislation. it's not the same as plain english. they have a real load. >> until thanksgiving to do that. >> until november 23rd. i don't think they will accomplish all of that. they might accomplish a small piece. >> a lot of work done before then, simpson bowls commission. a lot of ideas have been rejected. >> to that agreement, have you to get both sides together. tax reform, they are under competing directives. president obama says i want it to raise revenue more than the current system. speaker boehner sis, no, i don't want it to raise more. they have to keep in the leader and congress. >> 65% of americans want president obama and congress to pay more attention to creating jobs rather than reducing the deficit. americans sending a very clear message to washington here. is now the right time for the super committee on deficit reduction. we don't have a choice? >> we don't have a choice. there are bond rating agencies that evaluate the united states as they do greece. we're talking about deficit reductions that are going to happen in the out years. what we need to do to create jobs now doesn't need government spending or to reduce the deficit. if we jump-start oil and gas in the united states that gives us the very same kinds of jobs we would get from infrastructure spending. construction workers, chron kon steel, the like. some out of princeton, some of the republican candidates suggested doing something about the trade deficit with china, that would create private investment in the united states, more jobs, wouldn't need government spending paragraph president of the federal reserve of chicago charles evans made it clear in a speech he thinks the federal reserve should be reacting to unemployment. evans said, imagine that inflation was running at 5% against our inflation objective of 2%. there is a doubt that any central banker worth their salt would be reacting strongly to fight this high inflation rate. no, there isn't any doubt. they would be acting as if their hair was on fire. we should be similarly energized about improving conditions in the labor market. should he do more? should there be an employment target the fed is trying to meet? >> there should be. the fed has abjectly ignored unemployment except to discuss it as part of the reason the economy isn't doing well, which is a circular set of logic. really, the fact the fed has supported banks, and the bank has not helped to lend that to small businesses is one of the reasons we're not creating jobs. whether that be in small energy, middle energy, technology companies or other types of companies or infrastructure and construction, all of that has to do with money that can partially come from the government, for the government component of the infrastructure and those jobs but from the fed in terms of creating a situation where banks are tied to on lend what they have received. they are getting money at 0%. they are not lending it out. you have this choke hold on any business that wands to grow because it doesn't know how to fund itself. therefore it cuts job. we don't have new jobs created to make up for the fax that 14 million are unemployed and 17 million additional people are underemployed. there are no jobs to get. it has to be a combination. the fed can control what banks are doing with the money they have very, very easily receive. >> everyone is sitting on their money. peter i'm in no position to defend banks. they are sitting on an awful lot of money that could be lent. companies are sitting on money they could be using to grow and they aren't. aren't they looking around at the rest of the world, slowing growth, the rest of the world, china is slowing down, potentially european financial crisis and they are saying we've got to do now what we should have done before, which is make sure we have more money on hand. >> certainly a lot of companies are shoring up their cash. some of the biggest companies have lots of cash on hand. they have been investing. they are investing in china because they see business conditions there and business conditions more friendly growing very rapidly. in order to get american businesses to invest fundamentally there has to be more demand. general electric is not going to invest in a light bulb factory unless people buy more bulbs. unless we do something about energy, china, banks, no one will invest. >> long-term solutions that take reform, collaboration in washington. >> i don't think so. i believe i could free up oil and gas in 90 days, a secretary of department of education fossil fuels. >> department of education, you meant department of energy. be interesting if they were dock drilling permits. >> let's not use up the time. if they took a position and wanted to free up development that could be done. with regard to china we could put on the tax romney suggested tomorrow morning at 9:00 and get results out of china in two weeks. >> leave it there. have a great weekend, everybody. it's everything a hot novel should have, controversy, betrayal, infighting. we're not talking about a novel, the hot new book on the white house. the author with the juicy details and response to the criticism of the white house of this book next on "your $$$$$." they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ are you wondering about your options? 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deregulation of the banking system, open arms to -- not realizing many of americans would be out of work. >> saying to others officials going through their nomination process, don't do policy and admit mistakes. don't admit we made any mistakes from the days of yore. frankly some of them said yes to that, some doesn't. gary ginsler is an example of someone that said, look, we did make mistakes. >> larry summers alleged to have said to peter or zag, we're really home alone. there's no adult in charge. clinton would have never made mistakes. here is what he said. you spoke to so many people from the obama administration past and present for this book. are you surprised by their reaction? >> not really. i'm surprised by some of the personal qualities of it. what i did in this book was tried to go back to ever body prior to publication and say here is what's going to go next to your name, give me your response. larry summers does give a response to the home alone response in the book. that's the real response. he's sober, talks about overwhelmed, five times as many problems, not five times as many people. essentially we're a victim of circumstances. who knows what any president could have done. i think that's the appropriate and accurate response. importantly tim geithner responds in almost two pages of quotes, all from a transcript of a final interview i did prior to publication with the treasury secretary. people can judge for themselves. >> it comes at a tender moment politically for this president. that's probably part of the sensitivity on the part of the white house and people loyal to him in this book essentially would walk over hot coals for this man. people are loyal to him. journalists are loyal to him. journalists that want access going forward. we're in a difficult period. this is a hard book in a way to report. i was identified by the bush administration as a lifelong democrat. i am a lifelong democrat. to report some of these things, to get these disclosures, to sit down with person after person and hear what they have to say, go over the tapes, i'm like, wow, this is unsettling some of it, hard to hear. the key to the book is this education of and evolution of a president. so many of the disclosures being discussed are firmly placed in past tense by the book because they are in past tense in the view of the president. he feels he has grown, learned and hardened himself by virtue of these difficult times. he says that with real force in the last interview. >> the last third of the book is looking forward, what's been learned from these mistakes. all the press is about the controversy between people who said they did or didn't say whatever. where is this president now? judging from the mistakes that happened at the beginning of the financial crisis and if he was president. where is he now in terms of a very serious jobs crisis and political crisis as well. >> the sweeter the uses of adversity. clearly this president found many uses for adversity. he gives verse in the final long 50-minute interview we do. he says going forward he has a model that works. he says i have the staff to do what i need to do. it's a much more dynamic version of leadership. essentially i can do this. i've got this job in my grasp, a president with a big p. he knows the crises are acute. i think what you're seeing in