Well discuss. Also the rise of britains radical left wing leader tells us more about the conservative party than the labor opposition. Ill explain to you why. Then, sony walkman once ruled the streets. The walkman from sony. They invented the cd. What happened . The financial time will explain. Donald trumps president ial bid is centered on the promise of his personal talents. He says hes the most successful person ever to run for the presidency by far. George washington and Dwight Eisenhower sit down. American is being beaten badlily its economic competitors. Trump explained that america is being bested by chinas like china, country and japan because leaders are smarter, more cunning, sharper than our leaders. Theyre killing us he often says. This is an odd make to make the charge because the reality is almost entirely the opposite. The United States is more dominant on the Global Economic landscape than at any point since the hay day of bill clintons presidency. Americas growth is twice that of the euro zone and four time that of japan. Unemployment is the lowest in seven years. Quote, the United States has come out of 2008 crisis better than all the others. Since the 2008 crisis u. S. Equity markets have out performed all others. In fact, nine of the ten most valuable companies in the world are now american. The dollar is the currency of choice, closed quotes. When i was in europe last week businessmen there were concerned with what they saw as a new level of american dominance in everything from technology to entertainment to finance. Consider americas big banks. They were at the epicenter of the Global Financial crisis. They were badly battered by it. They faced lots of new regulations that critics said would cripple them. Americas banks are more dominant than ever. The wall street journal notes in the last five years jpmorgan chase, bank of america, citigroup and Morgan Stanley have collectively increased in value by 254. 6 billion. In the same period the european competitors barclays, ubs and royal bank of scotland have added just 9. 5 billion of value. The wall street journal also notes that in july bar clays chairman was asked if americas banks were eating european lenders lunch. He added the u. S. Banks are the only ones that really claim to be global and successful. To compare americas performance to mexico, japan and china is particularly ill timed. He might be stuck in a 1980s time warp on japan when his art of the deal was published in 1987, americans were envy yous of japans leaders who were said to be out smarting america at every turn. Mexico is watching its growth collapse. The country was illprepared for plunging oil prices that have battered government revenues and growth. In the last few years beijing went on a borrowing bing thats driven up its total debt massively. Over the last two months it made mistakes in managing equity markets and currency. Mistakes that have cost 400 billion the Financial Times report. Of course america has problems that are worried like wage stagnation and low labor force participation. The important comparison is not to some ideal fantasy of what america might be but to other countries in the real world. The facts show were killing them. For more go to cnn. Com fareed and read my Washington Post column this week, and lets get started. It was a busy week on the world stage. The refugee crisis worsened. The United States tried to figure out what the russians were up to in syria. The pope headed to americas. Ill try to get to it as much as i can with my panel today. David was a speech writer for george w. Bush. David milliban was britains is the president and ceo of the International Rescue committee. Irc deals with this refugee problems. Describe the extent of the problem in europe. Its surely going to get worse now that germany, once you announce youll take in all these people, the magnet affect must be large. Last year was the world record for the number of people fleeing conflict and disaster. The european situation primarily caused by the syria crisis involves a moment about 400,000 people who have arrived in europe over the last seven or eight months. The majority of them from syria. Ive been in the greek island thats receiving half of the refugees arriving in europe. Frankly, its an unspeakable scene because people say in a aleppo im already died and willing to do anything to get out. After the car crash of diane that there was an explosion of grief. Everyone was supposed to be haif in a certain way and say a certain thing. Anyone who spoke differently found themselves on the receiving end of this explosion of angry and fury. That was presocial media. There is no end to it. You really think it was a spur of the moment emotional decision. It looks this way. This has been going on for many years. Europe had a policy of keeping refugees and migrants out of europe. Its becoming an ever greating step to move from a poor country to a rich country. The skills you need are ever more remote. This is a fascinating moment where this massive outflow of refugees, call them what you will is coinciding with a point at which every western country is experiencing greater feeling, Political Parties that are fueled by it and Donald Trumps issue is migration. How does one handle it . I think it do matter. I think some of these people are economic migrants. If youre coming from pakistan, youre not a refugee from syria. If youre coming from west africa, youre not a refugee from syria. Theres hundreds of thousands who are fleeing circumstances that are real unimaginable. The horror of that is what is in many ways galvanized more action. The challenge here is so enormous. Western europe absolutely has to do something for these people. I think she has the conscious of a postwar german and i think shes acting on that. Do they need to screen people properly, do they need to have a eu wide policy, absolutely. Do they need to ensure that the people who they keep arent shoved in and shoved into saudi run mosques in hamburg . Absolutely. Thats where they fall down. Its not on the compassionate side. What about the concern . Ive heard conservatives talk about this particularly with regard to the United States. Theres probably a lot of jihadis in there. Who knows who these people are. Maybe people who had weapons. I think its a reasonable concern. We know that. They need to be kept out but that cant be an excuse to not have the appropriate Global Response to a crisis of this se shore. Screen the right ones out. Youve seen these people. Can you vet them . Can you be sure theres not terrorists . Its harder to get to the United States adds a refugee. Theres a very significant vetting rate. I think its important to remember two things. Mrs. Merkel was responding to reality. There were already 350,000 refugees or immigrants who arrived this year. She recognized they were coming to germany. He decided the best way of getting a burden sharing arrangement for germany to take the lead. I think thats the right thing to do. Really shouldnt confuse the issue of immigration, migrants with that of refugees. Refugees have a well founded fear of persecution. Theres responsibilities on states. The issue about immigration when it gets confused with the issue of Refugee Status in the end pollutes both. I think its very important not to tar a generation of refugees where theyll end up in prison. You think this will transform europe. Explain why. I dont think you can separate. I like the use the word migrant. Migrant proves from place to place for whatever reason. Nor do i think you can neatly distinguish between refugees who fear for their lives and migrants who see an opportunity. Nor do i dismiss the desire of people for beater life. Thats a powerful motive. In moderation it is strengthen europe. What is happening now is not in moderation. Nor do i believe you can screen for it. The danger from europe has come from the second generation. Its the radicalization caused by unemployment and the inability to assimilate. Well come back and talk about Everything Else going on in the world when we come back. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Dad yeah, 20 something years now. Thinking about what you want to do with your money . Daughter looking at options. What do you guys pay in fees . Dad i dont know exactly. Daughter if youre not happy do they have to pay you back . Dad it doesnt really work that way. Daughter you sure . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab. [ male announcer ] he doesnt need your help. Until he does. Three cylinders, 50 horsepower. Go bold. Go powerful. Go gator. While youre watching this, im hacking your company. Grabbing your data. Stealing your customers secrets. Theres an army of us. Relentlessly unpicking your patchwork of security. Think youll spot us . You havent so far. The next wave of the internet requires the next wave of security. Were ready. Are you . Its got the spring and bounce of a traditional mattress. You sink into it, but you can still move around. Now that i have a tempurflex, i can finally get a good nights sleep. vo change your sleep. Change your life. Change to tempurpedic. They dont get that since right now they are pretty sim y similsimply supporting the assad regime. Russia thinks britain is a declining power and both may be right. Beware what follows. I think one has to see the move of putin and the russians into further support for assad as a sign of assads weakness. Theres no question that assad is in a weaker position than he was a year ago. Maybe a stronger position than three years ago. I think thats necessitated the russian move. The hard thing is whether the procedures than pulling the rug from under assad. The truth is that assad has become a problem for the russian concern with islamic radicalism. The way in which assad has enabled and sponsored the rise of isis is a real issue for the russia russians. They have been consistent over four or five years and saying thats their concern in syria. I wouldnt dismiss the idea that the russians may be setting the stage for a serious discussion with the u. S. That says we cant pretend were not going to sign up for geneva. We have to find some common ground. I dont think theres even any problem with talking to putin. The question is what were going to do about this. I think youre being a little polyanna about what the russians are doing. They assess the other side is weak and the United States is not going to do anything. They are there to fill the vacuum. My view is they are there to help assad. This is enormously complex. Refugees that wear on our conscious. I would say let them all fight. That is absolutely unconsciousable. The richest country in the world to stand aside and watch this happen and watch hundreds of thousands of people being murdered. What would you do . Find a solution in the 1990s. A very messy thing where they find a different way. After a 15year bloody civil war. We hope it doesnt take that long. The russians may have to be a sponsor which is going to be ugly but necessary. Im normally pretty hawkish person. I was posed to any attempt to intervene in this war. I couldnt see anyone to be far. You dont intervene unless youre trying to stand upstate as well as take one down. Thats never been possible. There has to be a brokered compromise. Lets hope it takes less time and less blood. The key question in a sense we have to deal with is the requirement that assad go which has been stated by american president , by the europeans. Do we have to walk back from that . I think hes going to have to go but you may have to save the russian face in achieving that goal. If its correct, assad is become a facilitator of isis not just by attracting jihadist but other ways thats quite well documented, the russians will never sign up to an american listing but they the recognize reality. The fact is syria is already a divided country. Never mind an absolutely bummed out country. I think the lebanon parallel is an interesting one that david raises. What happened is in the end a government was created in every community had a stake. Thats precisely what its impossible to achieve in syria at the moment. I want to get one last thing in which is north korea. When you were speech writer to george w. Bush, you put north korea in because you were looking for a third country and the access was iran, iraq and north korea. What do we now do about north korea and its formation . I dont want to frighten anybody about the speech writing country, i didnt put any country in. I just wrote the grammar. I didnt make the decision about which countries would be listed. That was a little above my pay grade. It was always because that situation looked very squacary. Since then the world has done a reasonable job of living with this constant irritant. One of the reason they get more irritating is the world has done too good of a job living with them. Every once in a world they have to remind the world were still here and still obnoxious. In fact they stop doing this. Were going to have to go. This is absolutely fascinating. I wish i would bring you all back. Next, David Cameron has discovered the secret sauce for winning elections but will americas republicans learn from their fellow conservatives across the ocean. Ill explain when we come back. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Now for our what in the world segment. When britains labor party moved way left in somebody called one of the political platforms the longest suicide note in history. In fact, during that period the party ended up losing four elections in a row. Jeremy corbin, lead eer of t labor party. They might be returning to that radical past by elected Jeremy Corbin as the leader. He calls hamas and hezbelloh our friends. Labor would not just lose but lose big in the nec elections. Why has this happened . Many explanations focus on the financial crisis and its aftermath. The public is angry and ready for an anticapitalist, antibanker response. Thats not the only piece of the story. The other crucial element is that the government of David Cameron has occupied the Center Ground of british politics. Just how far left has the current conservative government gone . It has moderated the Austerity Program it had this place once the debt and deficit became more manageab manageable. It raised some taxes. It promised to increase spending on the National Health service. It announced a minimum wage rate to around nine pounds an hour by 2020 for everyone over 25. Thats about 14 an hour in todays u. S. Dollars. It has massively increased foreign aid. Its up 36 since 2011. David cameron speaks urgently about Global Warming and said annual carbon budgets. Hes an eager advocate of gay marriage. Many predicted this would cause a revolt in his party and lead to the downfall. The torreys are now to the left of every republican candidate who was on that debate stage wednesday night. This is not always the case. Margaret thatcher was to the right on Ronald Reagan on many issues. Cameras move is a master stroke because it forces the opposition into a corne in fact, the problem for the more mainstream leaders has been that they were seen as torrey light. Now the labor party has the genuine article. An unreconstructed socialist who will keep the party pure and politically irrelevant. The extremes make noise but look whog who is governing countries. Bill clintons strategy is still the right one in a postcold war, postsocialist world. The most serious place in politics remains the Center Ground. Thats where the majority of people, maybe some of the republican president ial candidates should take note. Next on gps, now that the u. S. Congress to scuttle the nuclear deal has passed. It has one more big hurdle. They need to decide if they want to get into bed with what they call the great satan, when we come back. Moms knowafter brushing, mouths often need a helping hand. Listerine® total care helps prevent cavities, strengthens teeth and restores tooth enamel. Its an easy way to give listerine® total care to the total family. Listerine® total care. One bottle, six benefits. Power to your mouth™. And for kids starting at age six, listerine® smart rinse delivers extra cavity protection after brushing. vo wit runs on optimism. Un on . Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. So you dont have to stop. , tylenol® 8hr arthritis pain has two layers of pain relief. The first is fast. The second lasts all day. We give you your day back. What you do with it is up to you. Tylenol®. Despite all the the controversy and the grand standing, on thursday congresss chce to vote down the iran deal ended rather quietly, i might add. Dont forget theres another side to this deal. Now irans government has to agree to it and the Supreme Leader who will give the ultimate thumbs up or thumbs down said he wants his parliament to vote on it. According to the New York Times the head of that Parliament Said there would be more drama in the Iranian Legislature than in the u. S. Congress. A parliamentary vote is expected in early october. Will the hard liners of the Islamic Republic enter into a deal with what they call the great satan. Thomas, let me start with you. You wrote a really terrific piece in the New York Times out lining the incredible push and pull thats taking place in iran. This deal will begin the process of normalizing relations with the u. S. There are people predicting there will be direct flights between tehran and washington. Then there are people saying thisont happen for years. Is this all an act and where does he stand in all of this . Where does the Supreme Leader of iran stand . I must say that while writing this piece i felt sort of lost. Ive been reporting from iran for 13 years and its getting harder and harder to really try and get grip and see what irans leaders actually want. As you said, on one hand we have Supreme Leader who in the past three speeches has been saying really nasty things about United States. He says the United States will continue to be the great satan and he says its time now after Nuclear Talks to continue the fight with america and on the other hand theres the president , a man elected by the people here on the platform of promising more freedoms, better economy and very important to him better relations with the United States. He is saying this nuclear deal is new beginning. These are two very conflicting narratives. In all honesty i dont know which direction this is going. Now followed this closely. One of the more troubling signs is that for the last week or two Iranian State tv has been night after night airing very fiery denounceuations of the deal. What do you think we should read into that . There is this inherent tension between the national and economic interests of iran and the iranian people and the revolution ideology of the republic. I think the Supreme Leaders position has been quite classic. Hes been noncommittal. Hes refused to put it on this deal. Whats interesting is that both the supporters and the opponents of the nuclear deal believe the Supreme Leader agrees with their position. Thomas, what is the argument that the hard liners make. You talk to some of these people. Is it that they feel that this deal, you know in america the hard line has felt that america gave away too much. Is this theyre feeling that iran was taken to the cleaners and that iran made too many concessions. Absolutely. A former Nuclear Negotiator site he went in front of the Parliament Commission that is currently reviewing this deal and he said there are more than 100 of our Red Lines Crossed which means in irans ideology lingo which means we have been taken to the cleaners. Not everybody thinks the deal is bad. Hes a very important foreign advisor. Hes said no, this is a good deal. His term in office has senior negotiator has not managed to cut any deal where hes done so. We must look beyond this. We must look beyond only the deal. This is also about which direction will iran take. We are looking at a very divided middle east and weakened saudi arabia that problems across the region and iran being the only stable state. For 37 years iran has opposed the United States because of its ideology. People have a feeling this should be corrected and maybe the hate towards the United States must be lowered down and the great satan should be lesser satan maybe. This will have consequences because will iran cooperate with the United States in the region . Thats what the current debate is about. Let me give you my thought and tell me if its right. At tend of the day theyll pass this deal because hes the most popular figure in iran it seems to me from what im reading. Theres enormous sense of hope and expectation. For that hope to be dashed to be shattered by the rejection of this deal would be something that he would not want to do. Hes a canny politician. At the end of the day grumbling accept this deal. Does that make sense to you . That makes perfect sense to me. He doesnt want to stand between iranians and economic deliverance. When the deal is passed and implemented, i think he will work hard to totally emasculate rhouhani has hes done with iran previous three, four president s. He wants the president to add accountability without power. He wants to blame him when popular expectations of the deal are not met. Thank you for really fascinating insights. Up next, what do wall street bankers have in common with goat herders . More than you might imagine. Well explain when we come back. Machine but it is not the device that is mobile, it is you. Real madrid have about 450 million fans. Were trying to give them all the feeling of being at the stadium. The microsoft cloud gives us the scalability to communicate exactly the content that people want to see. It will help people connect to their passion of living real madrid. [ male announcer ] he doesnt need your help. Until he does. 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Its 40 affordable units near the waterfront for regular people. This is just a winwin for our city. Im behind it 100 . Voting yes on d is so helpful to so many families in our city. Julian tep is one of the most respected economic commentators in the world. Shes one of the experts who predicted or warned about financial crisis of 2008. When asked how she did it, shes credited her background and training in anthropology. She has a phd from cambridge. She did field work in tibet and pakistan. She now looks with an anthropologist eye at wall street. When she looks at these bankers and businessmen she sees people focused on their own specialized narrow businesses never noticing what their practices and products do to the economy as a whole. That was one of the underlying causes of the financial crisis. She calls this problem the silo affect. Its not just in finance but in business in general that people get inside subcultures instead of thinking outside the box or outside the silo. Good to have you here. Great to be here. You take on the central idea of efficiency, specialization, doing what you do to the inth degree. Why is that a problem . We think we live in a hyper connected world. We have our cell phones, airplanes, markets. They link us all together. When you look at how we live and think we actually as fragmented, if not more fragments than ever before. Sometimes that specialization is good. You need to have experts. You need to the departments to do things. The problem is when you have hyper specialization and when you have those different professions and departments that dont talk the each oh and connect then you start to get big problems. You get people who cant see opportunities and cant see risks either. One of your great examples of sony which was so dominate and kind of went by the wayside, what happened . My book tells the story of companies who are filled with bright individuals who do some really dumb things and tragically sony is one example of that. If you think back to the turn of the century you had music listeners who were obsessed with the walkman and by all logical reasoning sony should have dominated the era of digital walkman. It has computers, electronics. Essentially steve jobs jumped in with the apple and the ipod and these days were all carrying ipods and not digital walkman. Every business is always telling employees we want you to think outside the box. How do you do that . How do you do it . Every company says we want you to think outside the box. Yet almost every company these days is actually act a way that deepens the boxes and makes them more ridged. The incentive is to streamline everything. Cut out people who roam around the building and cut out opportunities for employees to stop and think and collide with each other. One of the things you can do is to try to fight back and recognize having some slack matters. Take a company like facebook who are incredibly interesting because they tried to be the antisony. They have deliberately implemented systems where you move employees around the building. You swap people around teams. You bring them together from time to time and try to collaborate on different projects. The other thing facebook does, which is the most important is they think. They recognize that human beings need organization. You need to have dedicated teams and departments but you also need to recognize as soon as you create a box or boundary that can be dangerous. Unless you step back from time to time and actually think about the social structure that youve created for that company and the world you live in. Is this all really somewhat similar to those goat herders . I actually think its a lot of benefit in having a background in anthropology when we try to make sense of how companies exist. We love to fool ourselves thinking were these wise 21st century individuals who live inside this space and arent captured by our social and culture rules anymore. The reality is we all are. We are just as shaped by our social rules that we inherent without thinking about them as any other society. If you want to get a sense of this, stop and ask yourself if youre on twitter, look at who you follow. Ask yourself how many of those are people who actually outside my own social tribe or have views different from me. What would happen if i was to change half the people i follow on twitter and put instead people from a completely different social tribe. How would that change my perception on world or life or understanding of the world . In a sense thats all that anthropology does. We try to think ourselves into another world, another mind set. We try to understand the alien out there so we can look back at ourselves better and see the culture rules and boxes that tend to control us unless we actually challenge them. Completely fascinating. Testi next, youve heard of the sacred cow. Now meet the sacred chicken in india. Ill explain when we come back. Visibility into your business, it can quickly become the only thing you think about. Thats where at t can help. At ts Innovative Solutions connect machines and people. To keep your internet of things insync, in realtime. Leaving you free to focus on what matters most. Its more than tits security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Then i slowly feel it start to kind of wrap itself around me. My mind just goes kind of blank and the next thing i kw its morning. With tempurflex youve got the spring and bounce of a traditional mattress and it also adjusts to my body. My cloud feels so comfortable. It feels like somebodys hugging you. How can a bed do that . This is the best investment of your life because this is where dreams are made. vo theres a tempurpedic for everyone. Find the feel thats right for you. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab the u. N. Will allow the flag of the vatican to fly alongside the flag of the 130 member states. What other nonmember entity was granted the right to fly its flag outside the u. N. This year . Stay tuned and well tell you the correct answer. This weeks book of the week is the silo effect. If you just heard her youll know why this is valuable book. It uses her training to schedule light on the problems of key organization. The examples all from the private sector are wonderfully written and give you deep insight into the challenges of overcoming some very natural, deeply engrained human behaviors. Now for the last look. India is well known for its sacred cows. Its a majority hindu country. Cattles are known for freely wandering the roads and causing traffic jams. Now theres another lesser animal that seems to be getting attention, the chicken. Thats right the local government had planned to enforce a ban on the slaughter or sale of the lowly fowl. Its practictioners are seen as supportive of the party in power in india. Critics view the ban as the partys attempt to curry favor, pardon the pun. They have been protesting by waving live chicken in the street and selling them. Since his election last year been been increasing rhetoric and some actions that promote religious practices and symbols of hard line hindus. Theres been some disturbing actions that are antimuslim and antichristian. This time people spoke out in protest and the government relented. Chicken meat is back on the menu. This has become an ongoing struggle and one of the greatest modern achievements. The religious tolerance is under pressure. The correct answer to the gps challenge question is b. Along with the flag of the holy sea, the u. N. Voted to allow the palestinian flag to fly along those of the u. N. Member states against the objections of israel and the United States. Thanks to all of you for being part of my program this week. Ill see you next week. Good morning. Its time for reliable sources. Our weekly look at the story behind the story. This morning there is breaking 2016 news. Donald trump losing some support for the first time in this gop race. Cnn orc poll is out this morning. Its the first major poll since the Republican Debate last wednesday. It shows that Carly Fiorina surge. Trump still leads the candidates with 24 support but thats down 8 since early september. Fiorina is now at 15 . Thats way up from 3 before. What a difference a debate seems to make