comprehensive plan that would include lower interest tes and a version of t.a.r.p. to get the financial system and fiscal houses in order. that problem is still out there. this jobs report was better than expected as you said. we would have to go a number of months with numbers better than this one to help us reduce our own deficit and put people back to work. >> ron, thank you. >> thank you, thomas. >> as we wait for the president's speech, we want to get to more on today's numbers and market reaction. we have jared bernstein, chief economist and rona faruhar. the latest issue is taking a closer look at the fallout from the debt crisis and america's position in the global economy. let's look at the jobs report numbers. 9.1% unemployment, 117,000 jobs added. the biggest number, 154,000 private sector jobs and 37,000 government jobs lost. jared, let me start with you. will these numbers helplessen fears about what people are talking about with double dip recession? >> perhaps a little bit. they won't lessen fears about whether the job market is giving enough work to give american families, the jobs and earnings tubltszs they need. the unemployment rate ticked down one point. it wasn't because there were a lot more people working. it was because there were fewer people looking for work. there was a big drop in the labor force. imbedded in this report is a similar kind of weakness than we've seen in recent months. certainly the better than expected, the three words you keep hearing today. that's true. that should help to dampen tom volatility. >> rona, jim cramer talked about the causes of the unemployment drop. listen to this. >> i think this is very much based on europe and the actual governments in europe, not banks in the united states. arguably, that's why it's so difficult for people to understand. >> jim cramer talking about the euro zone. after greece, which country would be the biggest concern. >> i think certainly italy and spain. i agree with cramer, if last year is the year we lost trust in business, this year is the year we lost you trust in government. i think that these numbers reflect that. yes, you've seen unemployment tick down a small amount, but that's probably in part because not only are there fewer people looking for work, gas prices are a bit down and the japanese tsunami issues are working their way through the system. we're not seeing a secular change here. we're seeing high unemployment much longer recovery than we should have. >> rana what do you recommend, because stimulus is going to be mission impossible. what can congress do to turn this around? >> i think what obama has to do and what the government has to do is switch from a cutting conversation to a jobs growth conversation. that's what people care about. we're seeing that in poll numbers. people are concerned about the debt and deficit but they're more concerned about jobs. it's got to be about growth. >> jared, as rana is talking about poll numbers, let's look at new poll numbers concerning how america feems about its congress, the disapproval rating is at 82%. as i said at the top of the hour, we are about to hear from president obama who is going to be addressing this new jobs report right at the top of the speech he's giving today. how can washington leaders restore america's confidence, the ability that americans should have in the people they're electing to solve the crisis? >> by getting off the sidelines and getting in the job creation game, much like you just heard. basically, congress like firefighters looking at a burning building but just leaning back against their fire truck saying boy, look at that, gee, wish we could do something. they got to put the hose on this thing. with today's jobs report, some of the flames aren't jumping quite as big as they were, but they're still there. there are a number of things that congress could do. by the way, they all involve some sort of stimulus. that may be a dirty word around here, there's no other way to get there from here. you could extend the payroll tax cut, extend unemployment insurance benefits, good infrastructure ideas. the president may be talking about a tax credit idea targeted at veterans today to boost hiring. that could be done far more broadly and address new hires across the workforce. >> rana, the president's republican rivals are slamming him. it's open season since we're ramping up to 2012. this is what mitt romney said, when you see the what president has done to the economy in three years, you know why america doesn't want to find out what he can do in eight. >> what can the president do to send a directive to america to let them know he has control and a plan in place to turn this around? is there anything? >> i think there is. one good thing about the debt debacle being over is the president can now take back the debate from the tea party and make it not about cutting but about how we're going to grow jobs. spending is going to have to be part of that. strategic spending on things that create jobs. we should take advantage of the resurgence in high end manufacturing. you saw that in the job numbers. they were stronger across the board in the higher end jobs. we should use that as an opportunity to push forward this idea of spurring on higher end manufacturing jobs. obama should put pressure on the private sector. they are still sitting on $2.5 trillion of cash. it's time to spend it to create jobs. >> thanks for your time this morning. have a wonderful weekend, guys. >> thank you. >> just a reminder, you're seeing on the left side of your screen, we're waiting for president obama. the first remarks expected to be from president obama concerning the better than expected jobs report out for july. other news for you developing now. the u.s. senate approved a bill ending the two kweek partial shutdown on the faa. a total of two senators, ben cardin of maryland and jim webb moved the bill through. the measure will extend the faa's operating authority through mid september. now it's on the president's desk for his signature. nbc news capitol hill correspondent kelly o'donnell joins us. the president was saying it was up to the hill to move it forward. what's the holdup now? >> they were able to accomplish this when so many people were angry over the fact that shutting down the faa for a period of weeks put about 70,000 people out of work for construction projects and some people who work for the faa directly. not in the safety area, but in some of the other operations. when the country was consumed with the whole debt crisis, congress let this stumble across the line and not get done. with all of the pressure brought to bear, what they were able to accomplish was get an agreement to give themselves more time. what you saw this morning lasted mere seconds. didn't require the full senate to come back, just as we like to call it, two of the locals, senators from maryland and virginia who came in and with just a few moments, with the lights on, were able to accomplish this. it does kick the can down the road which is standard procedure around here at times. mid september, they'll deal with the issue again. the problem has been in order to extend funding for a whole variety of projects for the faa which is something that gets done every year and sometimes gets done in the short term bursts, there are republicans who want to see cuts made. now we have a pattern here whenever you want to pass something that is considered pretty temporary or pretty normal, there tends to be this issue of making cuts in order to get that done. at least for now, we're going to have those workers able to be recalled to work on monday and some of those projects continuing. it's a short term fix, but it is a fix at least for now, thomas. >> kelly, by my estimation, this is the 21st kick of the can since 2007 that they're getting these financial bursts. is there any talk about when this will really be debated to the point that they can have a standard and fully functioning budget, one we're not going to have to go through every couple of months to send them financial bursts of money? >> it has been a huge issue, thomas, because there are people who want to say get this done for a year's time like it's supposed to be done. there have been just these underlying conflicts, different ways that the two parties see government operating, where they want to see cuts. in this case, it's had to do with subsidies to rural airports because there aren't enough passengers to pay all of the bills there. there are some views among republicans that that needs to be trimmed back. some of those rural communities are represented by powerful members of the senate, including jay rockefeller and harry reid. it is a classic washington battle over where the priority should be. can this go forward with a longer term thing? many people are saying now that some of the other big issues have been cleared, this might be a time to do it, don't count on it. they've been working for a long time with these short term extensions. we may be in that situation again. if they keep doing it, it prevents people from losing their jobs or furloughed. a consequence that no one in washington can find a way to justify, despite their arguments about the underlying issues, everyone took notice when the complaints were so loud about what it was doing to real people, their lives and their ability to pay their own bills. >> we're watching for the president who is about to arrive. i saw someone on his staff take his remarks to the podium, while i have you, is there a reaction so far from capitol hill on this better than expected jobs report, because we do expect the president to reference that? >> one jobs is getting the 74,000 back to work. we've seen the same sorts of arguments that this is encouraging but there's still a concern about really the whole long term structure of what the economy is doing right now. so there hasn't been a lot of applause from capitol hill on this, but everyone is encouraged to see some improved numbers, but there's a real debate on what can actually be done. everyone talks about making jobs the focus, yet that's been hard to see a lot of example of that coming from capitol hill. >> any politician i'm sure you have had an opportunity to speak with and the most we've seen on television, when they get the opportunity to talk, they say jobs, jobs, jobs, when they come back from recess, how much are they going to get the constituents to parlay that into something fundamental? >> when they say they are out of washington, and refer to it as vacation, most members hold meetings in their home districts and states and are working at home back in their home communities. we should expect to see some pushback. we'll have to keep an eye on some of these town hall meetings which have been a hot bed of public frustration. sometimes over health care, sometimes over government spending. this time around, after so much anticipation that there would be a real focus on jobs and a frustration that that really hasn't played out, that's something to really watch, what kind of direct information and anger, perhaps, are they getting from their constituents back home. we'll be tracking that over the next few weeks. they talk about the differing roles of can government create jobs or is it something that can be done by changing regulations and so forth. one of the things to watch is the extension of the payroll tax. the president would like to see that done and republicans can get on board with that as well. the question is how do you pay for it. that's a way to put money back in people's pockets that they can spend. you might see action on that as well. that wasn't a part of these most recent debates but could be something front burner when they get back in september. >> kelly o'donnell in washington. thanks so much. >> happy friday. >> you as well. >> as we've been telling you this morning, coming up any moment, president obama will be talking to the country this morning, unveiling his push to help the nation's vets find private sector jobs. he's going to be speaking live at the washington navy yard. they introduced admiral mike mullen to come. the president will be expected to speak about the better than expected jobs report. right off the top of his remarks. we're going to cover that for you. let's take a look at the markets though, because i'm getting new information that the markets now are dropping some roughly by about 80 points now, 89 points. yesterday was such a volatile day. people reacting. we've seen trends coming back roughly this morning where we had some green arrows. today we're seeing a little bit of capitulation after yesterday's big reaction. there has to be response, we talked to ron ansanaa before. we'll be waiting for the president to speak. in other news, reports are out this morning that libya's moammar gadhafi has lost another son to nato air strikes. the rebels trying to topple his regime have reports that thomas gadhafi was one of 32 people killed in a strike. another gadhafi son was killed back in may. however, the libyan government is denying his death. former beatle, paul mccartney says he plans to contact police claiming he may be a victim of the british phone hacking scandal. earlier this week, his ex-wife said she had been confronted by journalists. mccartney called the scandal a horrendous violation of privacy. to weather news, tropical storm emily is fizzling out but not before dropping heavy rains on parts of haiti and the dominican republic. all hurricane watches and warnings were cancelled. we'll be back with much more on msnbc as we await for the president to take the podium.soo d we learn some new tricks of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done in record time and makes a statement when we're finished. we're lowering the cost of a 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is unveiling to help vets, returning heroes and wounded warriors, a tax break. let's listen in. >> please, everybody. just waiting here. well, thank you very much, everybody. good morning. i'm glad somebody told me that was the last one, because i've lost count. it is great to be here at the navy yard. first of all, i want to thank admiral mullen for being here and for his four decades of extraordinary service to this country. and i want to thank him for saying that for an old guy, i look okay. i appreciate that. this may be one of the oldest shipyards in the united states. but today, it's used to develop some of the most advanced technology in the military. although i hear your engineers are still working on a solution to the traffic when the nationals are playing. that's not ready yet. let me start by saying a few words about our economy. there is no doubt this has been a tumultuous year. we've weathered the arab springs' effect on oil and gas prices, the tsunami's affect on supply chains, the extraordinary economic uncertainty in europe and recently, markets around the globe have taken a bumpy ride. my concern right now, my singular focus is the american people getting the unemployed back on the job, lifting their wages, rebuilding that sense of security, the middle class has felt slipping away for years, and helping them recover fully as families and as communities from the worst recession that any of us have ever seen. today, we know that our economy created 154,000 new private sector jobs in july. that's the strongest pace since april. the unemployment rate went down. not up. but while this marks the 17th month in a row of job growth in the private sector, nearly 2.5 million new private sector jobs in all, we have to create more jobs than that each month to make up for the more than 8 million jobs that the recession claimed. we need to create a self-sustaining cycle where people are spending and companies are hiring and our economy is growing. we've known that will take some time. what i want the american people and our partners around the world to know is this. we are going to get through this. things will get better. we're going to get there together. the bipartisan compromise on deficit reduction was important in terms of putting us on sounder fiscal footing going forward, but let's be honest, the process was divisive, it was delayed. if we want our businesses to have the confidence they have to get cash off the sidelines and invest and hire, we have to do better than that. we've got to be able to work together to grow the economy right now, and strengthen our long term finances. that's what the american people expect of us. leaders that can put aside our differences to meet our challenges. so when congress gets back in september, i want to move quickly on things that will help the economy create jobs right now. extending the payroll tax credit to put $1,000 in the pocket of the average worker, extending unemployment insurance to help people get back on their feet. putting construction workers back to work rebuilding america. those are all steps that we can take right now that will make a difference. there's no contradiction between us taking some steps to put people to work right now and getting our long term fiscal house in order. in fact, the more we grow, the easier it will be to reduce our deficits. both parties share power. both parties share responsibility for our progress. moving our economy and our country forward is not a democratic or republican responsibility. it is a -- it's not a public or private responsibility. it is the responsibility of all americans. it's in our nature to do the tough things when necessary. to do the right things when called. that's the spirit that washington needs right now. it's also the kind of spirit found in the men and women who proudly serve in our country's uniform. it's the spirit that endures long after they take those uniforms off. today's veterans are americans who have done their duty. they've fought our wars with valor, from the jungles of vietnam, to the deserts of iraq to the mountains of afghanistan. may include the members of today's military, the 9/11 generation, some of whom are here today, who volunteered to serve at a time of war, knowing they would be sent into harm's way. to these men and women, i want to say that all of you have served our country with honor. over the last decade, you've performed heroically and have done everything we've asked of you in some of the most dangerous places on the planet. your generation has earned a special place in american history. today nearly 3 million extraordinary service members like you have completed their service and made the transition back to civilian life. they've taken their leadership experience, their mastery of cutting edge technologies, their ability to adapt to changing circumstances, and they've become leaders here at home. just think about how many veterans have led their