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Explain why it's a combination of what, the dollar is now lower? it's been devalued around the world? that has contributed to this. and speculation. what else is contributing to this? >> hate to take it back to economic 100, but it's supply and demand. on the supply side, problems in the middle east shutting in production. most importantly libya. >> perceived supply problems. >> perceived supply problems. >> a lot of the market is adjusting for risks. there's a lot less in the system to make it up. if, for example, we lose algeria or other producers. the other side of the coin is demand. unlik...

What s&p has done, i think, has given us the first solid crlue that the financial markets are not so sanguine. i think that's an important warning. secondly, s&p also importantly pointed out that other countries that have debts as large as ours, like britain, france, they have plans in maplace to get th under control. we do not. >> greg, you said this is a reminder -- they didn't lower our credit rating, it's a warning they could. and you were pointing out to me off-air that japan -- they did this to japan and japan still brose money. >> sure. that's one reason why you shouldn't see this as th...

Right on back to what you were talking about a second ago, and that's consumer confidence, as well as those issues about gdp and how it feeds into the deficit. >> all right, richard lui in yonkers, new york, for us on the front lines of this issue. thank you. and with us to try to get our arms this, the u.s. economics editor of "the economist" greg itt. the white house is down playing this, saying it's the long-term outlook, but others are saying this is a real shot across the bow, that the s&p, one of the leading credit rating agencies has serious doubt about the u.s.'s ability to solve its d...