one of the largest container ports in europe. their gateway to europe. so 150 years ago therits and the french go in and take shanghai. now the boot is on the other foot. >> rose: yes. but that gives to the question is there some... is there some... right now all we want to do is not engage conflict. what we want to do is expand our power so that if we need to exercise that leverage at some point we can. >> rose: indechltd and of course as you know the european union is a perfect invitation to do that because it isade up of 27 differentountes of sovereign states. >> rose: therefore the crisisin europe is an opportunity for china? >> exactly so. exactly so. and an opportunity they see because clearly if i'm greece or if i'm portugal and this comes back to the beginning of our conversation, and i'm in a deep mess and along comes the chinese knight in shining armor and says "we will invest billions in your struggling companies and buy your government bonds" i'm going to be very graftful to beijing. >> rose: you can say come right in, sit down and talk." >>

toward a much more integrated europe. toward a europe where fiscal-- . >> rose: fiscally integrated. >> at least fincialicall finaialically-- financially integrated and that is in some ways politically as well. because we're moving toward a system where a country cannot control its own budget. it has to is european approval. and they pretty much have to move in th direcon unless they are going to sacrifice the euro. that is the alternative to having perennial greek bailouts from europe is sacrificing the euro. as of now they're unwilling to consider that. whether they will still feel that way if this goes on and on i don't know. >> rose: who won and who lost the argument. >> the rule in europe has always been when in doubt germany pays. as germany paid, it's always like that you knew this 18 months ago, they could have spared us 18 months of trouble and turmoil. germany ended up paying and essentially caving in to a lot of the requests. >> rose: so merkel had no choice? >> she had eventually no choice. because the alterna

and their graves are scattered throughout the length and breadth of europe. their blood cries to heaven. but their voice cannot be heard. >> rose: i am pleased to have bill belichick a lib stad back at this table, welcome. >> thank you, charlie, good to be here. >> rose: where does this book come from? >> it comes from two sources. it comes from my own interest in not just the holocaust but the impact of e holocaus and this is o of the seminal pt-haul cost events. it's really the event that brings the knowledge and story of the holocaust to the world at large in a way that nuremberg didn't do that. >> rose: let me take you back to the war years and come forward to the trial. who was he? what dide do? >> adolf eichmann was a lieutenant colonel. he was a high school dropout. he'd been a very successful traveling salesman. joined the s.s.. joined the nazi party and then the s.s. and once it gets uncomfortable for some of the nazis in austria goes to germany and becomes an active s.s. member and is appointed the jewish specialist his big moment comes in march of

it's the fairy god moth their exists in europe. but the question is whether the ecb is prepared to do that and politically would be able to. it's interesting that the incoming ecb president is italian. does he want his first action to be lar scale purchase of italian bonds. it's going to be a pretty tough thing to do. but in 2008 the central bank came into the rescue. this time around they could do so too but i think to a lesser degree and against the backdrop of thiloss of confidence in the politician. >> the ecb also has the ability to cause things to break apart because if the ecb stops handling greek bonds and stops accepting them as collateral in its operations as it is threatening it might do then that would have pretty devastating consequences. and again that could be the benning of the end game. >> go ahead. >> it could, but it would need to be i think in the end have to decide whether it wants to be a tough central bankith nothi to be a central bank of because it precipitates the breakup what is it going to do. >> are we m

but we can start with asia and go to europe and go to the middle east. in asia, they want the ited states to be present. they wanthe united states that ey can count on to meet its obligations anpromises t ales and partners, and we have been doing that. you know, this is a mistake... not mistake. it's not a coincidence that secretary clinton took her first trip as secretary of state to asia. >> rose: and she's back in india as we speak. since dean rusk in 1961. and we have really engaged... they want u.s. presence. i think the asians want to see the unitedtates engaged and, by the way, they want us to manage the relationship with china in a positive constructive way. >> rose: can the chinese fear that we're... want to be too big a player in the region and looking the secretary speech in vietnam, for example? >> that's a gd questionnd one that's debated in china and i'd answer it this way. the chinese recognize-- and i've spent a lot of time with the leaders of china over the last too and a half years and that's a very interesting article published boy the

of the europe, e plays because it come in this kind union it can it could if god moth europe. is whether prepared to do politically would that the president is first large scale purchase of italian bonds. they could do so too but i think to a lesser degree and against the backdrop of this loss of confidence in the politician. >> the e.c.b. also has the ability to cause things to break apart because if the ecb stops handling gek bonds and stops accepting them as collateral in its operations as it is threatening it might do then that wou have pretty devastating consequences. and again that could be the beginning of the end game. >> go ahead. >> it could, but it would need to be think in the end have to deci wheer it wants to be a tough central bank with nothing to be a central bank of because it precipitates the breakup what is it going to d >>re we missing anything here in this conversation that could have a dramatic effect on the considerationse are raisg? >> you know, upside, downside. >> well, there's always -- >> there are always geo political issues that could up set the a

in one way, charlie, to feel very optimistic about the united states is simply to look at europe today. because europe is in a really big mess. >> i mean i do think we have a series of serious chlenges that we have to show ourselves capable of dealing with. we have to get education right. i mean we have fallen behind. we do have to deal with the decit. we do have to thinkbout what kind of investments we want to make. we have to stop spending so much of our resources on medicare and military stuff that probably isn't making us safer. and so i'm optimistic but we are at risk of not good stuff. >> i just completed a book on this subject, charlie. the way i describe myself is that kind of two polls this untry k the exceptionalist, we're exceptional. because exceptional has become another entitlement. something you get with your social security check, you get to say we are exceptional. something else you get free that you don't have to work for. and then you have the -- i think we're both roger and david, i describe myself and my cause here, we say we're optimists but frustrated optimists b

so the nextçóçó point is we havo become very regionalized9 so wi had a great ford of europe, ford of the united states,ñr america, ford of india, ford of china. but henry in order set ford up that way because he wanted t participate in the economies, not only provide people with great cars andruck but al is he be part ofñr the fabric of te economy in every part of which we operate. but he never anticipated they would operate completely independently. thereñ2hu8zÑi no syner and yet e were competing with the best anotigr reallyñr important thini found was thatñr because of our cost structure and the agreements we had we hadÑi made with usa, we uld not make kawrltzçó in the unitedtates. that's why we were focusing on usv's and trucks. if youÑi want toÑi pick it up, e weren't making cars them. we wereñr losingÑi money on alle brkn and a the models. and my first forecast thatÑi i shared in 2006 was a $17 billion loss for the year for 2006.çóñr plan andñr we needed to mov decisively. >> charlie: there's a story which has been repeated often. you're in a meeting with some

forward is going to be that you people in the west, you muslims living in the west, in north america and europe, you guys might be pave approximating the way. i said really, do you really want us to show you the way, we have a different economic system, different experience. said you can say whatever you want but whatever light are you going to shine on kick-starting the tradition is going to help us. we might not take everything you say. but we are too caught up in our indonesian struggles. and the other thing, charlie that we have in this country. we have possibly the most extraordinary resources, literal resources on islam and muss lim societies that no other country in the world has. e lrary at chicago, harvard's major library, princeton's library has terials an literary resources in arabi, petitionian, turkish, in every language. we have experts that can tell y about details about practices of islam in indonesia to timbuktu. and but that knowledge that we have in our universities doesn't reach at least three audiences it doesn't reach the general american pubc. it doesn't reach themuslim c

knows that he has to go to yurntion -- europe, has to go o paris. goes over in steerage with mean he saved from working from the time he w 13. and makes it happen. and does some of his greatest works here. i just went today again to look at the farragut statutes downtown, one of his signal most accomplished pieces. and the great sherman statute which is up at the corner of 59th and 5th avenue to the entrance of central park. sherman being lead by the goddess of victory which i think is the greatest equestrian statute in america. >>harlie: i go by there over morning when i wk my dog. or morning. >> bh of those we need in paris. if you could turn those statutes up down side, you would see made in paris. >> charlie: some of these people knew each other like james fennimore cooper knew samuel morris. >> very well. they had met first at the whitehouse for a reception for lafayette in 1828. but they knew each other pretty well here in new york. then they go to paris and as often happens as you know when you're abroad, when y're in another country, when yo

this affair really broke, you could argue that david cameron led the strongest government in western europe vis-a-vis france, angela merkel in germany, many people see as too passive, not reactin reactio this serious euro crisis, and david cameron managed it with great skill, and at the same time silenced many of those right wing critics, the anti-european wing of his had p. there's been a lot of grumbling about the way mr. cameron h handled this crisis, and questions about is he a real tory, is he just sort of a centrist masquerading as a tory. these have come back. notably, no one has come out to really defend mr. cameron in his own party. i think the second question that we come to, apart from this severe dent to his authority, and the fact that this story is going to be with us for at least another year, because of what catherine just says is the police inquiry, but also the levinson inquiry on the media. >> yes. >> and relations with the police. so the second part of the question is, the general relationship with the media and politicians. now, that's alwaysoing to be a bit incestuous,

we can't say grace over what's happening in europe and watch out right what might happen. we would all be responsible. so i'd like to have their shoulders to the oars as well in terms of helping us get a responsible long term deal. >> hunt: senator crapo, letme ask you this because you at senator warner andour other senators to start and three other senators still have worked day and night with all kinds of the best intentions but you couldn't "commitment 2010" up with a consensus to do it. if a gang of five can't do it, how do we expect a gang of 536 to do it? >> first of all, the gang of five is going to move forward. i'm very confident of that. we have made tremendous progress and i still feel veryopeful that we are going to be able to get a reay comprehensive paradigm shift in american fiscal policy into play. and what i'm talking about there what we've been talking abo, is something in the neighborhood of the $4 to $5 trillion range. it puts everything on the table. we deal with all sides of the issue and we do in the a way that can bring together the competing ideolo