PBS NewsHour; September 16, 2011 3:00pm-4:00pm PDT

ON THE NEWSHOUR TONIGHT, WE GET THE LATEST ON THE ACTIONS AND INACTIONS OF GLOBAL FINANCE CHIEFS, AND LOOK AT WHAT'S NEXT FOR EUROPE.

>> Woodruff: THEN, FROM CAIRO, MARGARET WARNER RECAPS HER REPORTING TRIP WITH A LOOK AT EGYPT'S COLLAPSING ECONOMY. IN THE LAST FIVE DAYS THE STOCK MARKET HAS BEEN DOWN EVERY DAY AND ACCORDING TOED EGYPTIAN MEDIA THIS IS NONARAB INVESTORS PULLING THEIR MONEY OUT.

>> Brown: WE TALK TO FORMER VICE-PRESIDENT DICK CHENEY ABOUT HIS NEW MEMOIR CHRONICLING 40 YEARS IN AMERICAN POLITICS, AND THE STATE OF NATIONAL SECURITY TODAY AND MORE.

>> I WORRY VERY MUCH THAT WE'RE STILL VULNERABLE TO ATTACK, IF YOU HAVE A GROUP OF TERRORISTS WHO ARE DEDICATED TO LAUNCHING AN ATTACK, KILLING AMERICANS, AND THEY DON'T CARE ABOUT SURVIVING THEMSELVES.

>> Woodruff: DAVID BROOKS AND RUTH MARCUS ANALYZE THE WEEK'S NEWS.

>> Brown: AND FROM THE ECONOMIST FILM PROJECT, WE HAVE THE STORY OF A FILIPINO WOMAN WHO LEFT HER FAMILY AND COUNTRY TO TEACH IN BALTIMORE'S INNER CITY.

>> Woodruff: THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ MOVING OUR ECONOMY FOR 160 YEARS. BNSF, THE ENGINE THAT CONNECTS US.

>> WELL, THE BEST COMPANIES ARE DRIVEN BY NEW IDEAS.

>> OUR FUTURE DEPENDS ON NEW IDEAS. WE SPEND BILLIONS ON ADVANCED TECHNOLOGIES.

>> IT'S ALL ABOUT INVESTING IN THE FUTURE.

>> WE CAN FIND NEW ENERGY-- MORE, CLEANER, SAFER AND SMARTER.

>> COLLABORATING WITH THE BEST IN THE FIELD.

>> CHEVRON WORKS WITH THE SMARTEST PEOPLE AT LEADING UNIVERSITIES AND TECH COMPANIES.

>> AND YET, IT'S REALLY BASIC.

>> IT'S PAYING OFF EVERY DAY. AND BY THE ALFRED P. SLOAN FOUNDATION. SUPPORTING SCIENCE, TECHNOLOGY, AND IMPROVED ECONOMIC PERFORMANCE AND FINANCIAL LITERACY IN THE 21ST CENTURY.

>> AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND...

>> THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Brown: EUROPE'S ECONOMIC LEADERS STRUGGLED ANEW TO FIND A WAY TOWARD A RESCUE PLAN FOR TROUBLED NATIONS AND AID FOR VULNERABLE BANKS. THEY ALSO HEARD A STRONG AND POINTED CHALLENGE FROM A KEY VOICE ON THIS SIDE OF THE ATLANTIC. WITH THEIR BANKS FACING A GROWING CREDIT CRUNCH, AND WITH A LOOMING DEFAULT DEADLINE FOR GREECE, AND OTHER NATIONS ALSO ALREADY RECEIVING BAILOUT FUNDS, EUROPEAN FINANCE MINISTERS MET IN POLAND TODAY TO TRY TO RESOLVE LONG-STANDING DIFFERENCES OVER HOW TO DEAL WITH THE FINANCIAL CRISIS. THIS TIME, IN AN UNPRECEDENTED MOVE, THEY WERE JOINED BY A HIGH-LEVEL VISITOR FROM THE U.S., TREASURY SECRETARY TIMOTHY GEITHNER, WHO URGED THE 17 MEMBER NATIONS OF THE EURO-ZONE TO ACT QUICKLY AND TAKE MUCH STRONGER MEASURES. BUT ONCE AGAIN, THERE WAS NO RESOLUTION. THE HEAD OF THE GROUP OF FINANCE MINISTERS SPOKE AFTER THE MEETING WITH GEITHNER.

>> DIFFERENT POINTS WERE MENTIONED. THIS WAS NOT A DECISION-TAKING MEETING WE HAD WITH TIM. IT WAS A DIALOGUE AMONG FRIENDS, CONTINUING FROM THE ONE WE HAD IN MARSEILLES, AND PREPARING THE ONE WE WILL HAVE THE OTHER DAY ON A DIFFERENT CONTINENT. WE ARE NOT DISCUSSING THE INCREASE OR THE EXPANSION OF THE EFSF WITH A NON-MEMBER OF THE EURO AREA.

>> Brown: THAT WAS FOLLOWED BY A QUESTION FROM A REPORTER.

>> ARE YOU OPTIMISTIC THAT MAYBE EUROPE OR THE EUROZONE CAN SPEAK A BIT MORE WITH ONE VOICE?

>> NO. BUT WE HAVE TO COME BACK TO VERBAL DISCIPLINE.

>> Brown: GEITHNER RESPONDED TO PUSHBACK FROM SEVERAL EUROPEAN MINISTERS, SAYING: "OF COURSE YOUR FINANCIAL CHALLENGES IN EUROPE ARE WITHIN YOUR CAPACITY TO MANAGE FINANCIALLY. YOU JUST HAVE TO CHOOSE TO DO IT." AND HE WARNED, "ONE OF THE STARKEST WAYS TO EMPHASIZE THE IMPORTANCE OF EUROPE GETTING ON TOP OF THIS IS THAT YOU DON'T WANT THE FUTURE OF EUROPE TO REST IN THE HANDS OF THOSE WHO PROVIDE FINANCING TO THE IMF. TODAY'S MEETING CAME A DAY AFTER THE WORLD'S MAJOR CENTRAL BANKS, INCLUDING THE U.S. FEDERAL RESERVE, TOOK COORDINATED ACTION TO MAKE FUNDS AVAILABLE TO EUROPEAN BANKS. THAT MOVE LIFTED WORLD MARKETS YESTERDAY, AND MODEST GAINS CONTINUED TODAY. EUROPE'S FINANCE MINISTERS CONTINUE MEETING THROUGH TOMORROW. AND JOINING ME NOW TO FILL IN THE PICTURE IS ZANNY MINTON BEDDOES, ECONOMICS EDITOR FOR "THE ECONOMIST" MAGAZINE. WHAT IS IF THAT SECRETARY GEITHNER IS ASKING TO DO, WHAT WOULD CONSTITUTE STRONG MEASURES AT THIS POINT IS THIS.

>> I THINK HE'S TRYING TO GET THEM TO RECOGNIZE THE GRAVITY OF WHAT THEY'RE DOING, TO STOP KICKING THE CAN DOWN THE ROAD, AND TO ACTUALLY COME UP WITH A COMPREHENSIVE PLAN TO SOLVE THE PROBLEM WHICH IS WHAT THEY HAVEN'T DONE. THEY'VE BEEN MUDDLING THREW AND MUDDLING THREW. AND I THINK HE RECOGNIZES, HE WAS THERE AT THE INVITATION OF THE POLLS AND THE POLLS HAVE THE CURRENT PRESIDENCY OF THE UNION AND THEY ARE ECK WAILLY WORRIED ABOUT THIS THEY ARE NOT MEMBERS OF THE EURO ZONE. THE MEMBER ARE OF THE YOUREAU ZONE HAVE BEEN FAILING TO GET TO DRIP GOS WITH THE GRAPHITY OF THEIR SITUATION. HE WAS TRYING TO IMPRESS BEHIND THE SCENES THIS COULD REALLY BE A CAT AS IF HE AND YOU HAVE TO SOLVE IT.

>> HE DID GET A GOOD A BIT OF PUSHBACK INCLUDING HOW DARE YOU TELL US ABOUT DEBT AND DEFICIT.

>> I THOUGHT THE THE THE AUSTRIAN FINANCE MINISTER SAYING THAT HE CAME TO LECTURE TO THEM. FRANKLY I THOUGHT THAT WAS SOMEWHAT RUDE AND COMPLETELY UNNECESSARY. I MEAN THE TRUTH IS THAT EUROPE HAS A VERY BIG PROBLEM. IT IS A BIG PROBLEM FOR THE WORLD THAT THE EUROPEANS FAIL TO SOLVE IT.

>> Brown: BUT NOW LET'S GO INTO THAT. I MEAN WHAT, EXPLAIN THE DIVISIONS THAT STILL EXIST POLITICALLY WITHIN EUROPE AS TO WHY THEY CAN'T MOVE FORWARD?

>> WELL, I THINK THERE ARE TWO THINGS GO ON. THE FIRST IS THAT THERE IS A CLASSIC GOVERNANCE PROBLEM. THAT EVEN IF THEY AGREED ON WHAT TO DO, EVEN IF THEY KNEW WHAT TO DO, THERE ARE 17 COUNTRIES THAT HAVE TO SIGN OFF ON THIS. SO PART OF THE PROBLEM IS THAT INDIVIDUAL, OFTEN QUITE SMALL COUNTRIES IN THE EURO ZONE WANT DIFFERENT THINGS. SO FOR EXAMPLE THE FINS WANT COLLATERAL FOR ANY MONEY THAT THEY'RE GOING TO LEND TO GREECE WHICH IS CAUSING PROBLEMS.

>> Brown: BECAUSE EVERYBODY ELSE WANTS IT TO IF THEY GET IT.

>> ABSOLUTELY.

>> THE BIGE PROBLEM IS THAT THEY HAVE IN AGREEMENT WITHIN THE YOUR OZONE ON REALLY WHAT THE PROBLEM IS. NOW THAT SOUNDS, TO THE ROUTE.

>> Brown: WHAT IS THE PROBLEM, THEY STILL DON'T KNOW WHAT THAT IS.

>> I THINK THERE IS A SENSE THE PREVAILING NARRATIVE IS THAT THIS IS A PROBLEM OF PROFLIGACY, THAT OF THE GOS HAVE BEEN SPENDING TOO MUCH, PARTICULARLY IN THE SOUTH OF EUROPE, PARTICULARLY THE GREEKS BUT ALSO THE ITALIANS AN SPANISH, THEY THROW IN THE MEDITERRANEAN COUNTRIES HAVE SPENT TOO MUCH, TOO MUCH OF A PARTY AND NEED A LOT OF AUSTERITY. THEY NEED TO TIGHTEN THEIR BUDGET. THEY NEED TO CUTBACK AND THAT IS THE SOLUTION.

>> Brown: THAT IS ONE NARRATIVE.

>> THAT IS ONE NARRATIVE. THERE IS ANOTHER NARRATIVE WHICH ISN'T VERY POPULAR IN EUROPE WHICH IS GOING ON NOW, IS THERE IS I PROFOUND LOSS OF CONFI DEN IN FINANCIAL MARKETS ABOUT THE SAFETY OF EUROPEAN ASSETS PARTICULARLY IN COUNTRIES LIKITY LEA AND THE REASON FOR THAT PROFOUND LOSS OF CONFIDENCE IS BECAUSE THE RULES OF THE GAME HAVE CHANGED. FOR THE PAST TEN YEARS THERE WAS AN ASSUMPTION, MAYBE A WRONG ONE BUT THERE WAS AN ASSUMPTION THAT THE WHOLE FINANCIAL STRUCTURE WAS BASED ON THAT THIS WAS RISK-FREE GOVERNMENT DEBT, THAT COUNTRIES WOULD NOT BE ALLOWED TO DEFAULT. AND OVER THE PAST TWO YEARS THERE HAS BEEN A VACILLATION OF WILL THEY BE ALLOWED TO DEFAULT L THEY THOUGHT BE ALLOWED. AND THE WEIRD THING IS THE EUROPEANS HAVE SAID OF GREECE WHICH IS ONE COUNTRY THAT IS MANIFESTICALLY INSOLVENT, THEY SAID THIS COUNTRY WOULD NOT DEFAULT AND YET THEN AS PART OF THEIR MUDDLING THREW SAID WE'RE GOING TO CREATE A STRUCTURE THAT WILL AFTER 2013 ALLOW COUNTRIES TO DEFAULT.

>> THAT LACK OF CONFIDENCE IN NATIONS WOULD THEN LEAD TO THE PROBLEMS FOR THE EUROPEAN BANKS.

>> ABSOLUTELY. IMAGINE IF YOU WERE AN INVESTOR NOW, INVESTING IN ITALIAN GOVERNMENT BONDS AND YOU'RE NOT SURE WHETHER HOW THIS THING GOING TO BE RESOLVED, WHY WOULD YOU INVEST THIS THEM. SO YOU WOULD HAVE IN EFFECT A KIND OF SUDDEN STOP, A SORT OF PANIC OF PEOPLE NOT WANTING TO GET IN AND THEN THE EUROPEAN BANKS HOLD ENORMOUS AMOUNTS OF EUROPEAN SOVEREIGN BOND. SO THE BANKS LOOK IN VERY BAD SHAPE AND THE BANKS ARE THEREFORE UNABLE TO RAISE SHORT-TERM FUNDS, AND THEY RELY VERY HEAVILY ON U.S. MONEY MARKET FUNDS.

>> Brown: TO ADDRESS THAT AS WE SAID YESTERDAY THE CENTRAL BANKS INCLUDING THE FED STEPPED IN TO OPEN A WINNOW, I GUESS TO ALLOW THE BANKS TO, EXPLAIN THAT BRIEFLY, AND ARE THERE RISKS IN THAT FOR THE U.S.?

>> NO, I THINK THE RISK FOR THE U.S. ARE MINIMAL. WHAT THIS SHOWS IS THAT YOU CAN, THE CENTRAL BANKS ARE MUCH BETTER AT COORDINATING AND GETTING THINGS DONE. AND YOU'RE EXACTLY RIGHT. WHAT THE CENTRAL BANKS HAVE TRIED TO DO IS TO CREATE A MECHANISM FOR THESE BANKS THAT NEED DOLLAR I WILL QUIT-- LIQUIDITY TO GET IT, THAT IS AN IMPORTANT PART OF THE SOLUTION. BUT IT IS NOT ENOUGH ALONE, BECAUSE THE REASON THEY ARE WORRIED ABOUT THE BANKS IS THEY ARE WORRIED ABOUT THE SOLVENCY OF THE BANKS AND A DEFAULT ON GOVERNMENT BONDS SORK UNTIL YOU DEAL WITH THE CRISIS OF THE SOVEREIGN BONDS, IF YOU WILL, YOU ARE JUST NOT GOING TO SOLVE THIS. YOU HAVE TO DO SEVERAL THINGS, RECAPITALIZE THE BANKS, YOU HAVE TO DEAL WITH THIS LOSS OF CONFIDENCE IN THE SOVEREIGN BONDS.

>> Brown: ALL RIGHT, ZANNY MINTON BEDDOES OF THE ECONOMIST, THANKS SO MUCH.

>> GREAT TO BE HERE

>> Woodruff: STILL TO COME ON THE NEWSHOUR: EGYPT'S SINKING ECONOMY; FORMER VICE-PRESIDENT DICK CHENEY; BROOKS AND MARCUS; AND A LEARNING EXPERIENCE IN BALTIMORE'S SCHOOLS. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S HARI SREENIVASAN.

>> Sreenivasan: PALESTINIAN PRESIDENT MAHMOUD ABBAS HAS CONFIRMED HE WILL GO TO THE U.N. SECURITY COUNCIL NEXT WEEK TO SEEK FULL MEMBERSHIP AT THE UNITED NATIONS FOR HIS PEOPLE. IN A TELEVISED SPEECH TODAY, ABBAS SAID HIS AIM IS NOT TO DELEGITIMIZE ISRAEL, BUT TO END THE OCCUPATION. THE U.S. HAS THREATENED TO VETO THE MOVE, PREFERRING DIRECT TALKS WITH ISRAEL AS THE PATH TO AN INDEPENDENT PALESTINIAN STATE. ACTIVISTS REPORTED AT LEAST 17 PEOPLE DIED IN SYRIA TODAY AFTER SECURITY FORCES OPENED FIRE ON ANTI-GOVERNMENT PROTESTERS. THOUSANDS MARCHED IN DAMASCUS AND IN CITIES ACROSS THE COUNTRY, SOME CALLING FOR THE EXECUTION OF PRESIDENT BASHAR ASSAD. HOME VIDEO SHOWED DEMONSTRATORS DUCKING BULLETS AND RUNNING FROM GUNFIRE AND TEAR GAS. THE U.N. ESTIMATES THAT SOME 2,600 PEOPLE HAVE DIED SO FAR IN THE SIX-MONTH-LONG UPRISING. THERE ARE NEW INDICATIONS YEMEN'S PRESIDENT, ALI ABDULLAH SALEH, MAY BE READY TO HEED LOCAL AND INTERNATIONAL CALLS TO STEP DOWN. LATE YESTERDAY, THE U.S. STATE DEPARTMENT REPORTED THAT A DEAL FOR SALEH TO TRANSFER POWER COULD BE SIGNED WITHIN A WEEK. TODAY, AMATEUR VIDEO SHOWED THOUSANDS OF PROTESTERS IN THE CAPITAL OF SANAA, AND OTHER MAJOR CITIES, DEMANDING SALEH'S RESIGNATION. IN LIBYA TODAY, REBELS ADVANCED ON TWO REMAINING STRONGHOLDS OF DEPOSED LEADER MOAMMAR QADDAFI. DOZENS OF ARMED VEHICLES IN BANI WALID MADE THEIR WAY INTO THE CITY CENTER, EXCHANGING GUNFIRE WITH PRO-QADDAFI LOYALISTS. THE FIGHTERS ALSO FACED RESISTANCE FROM SNIPER FIRE. A CONVOY OF REBEL TANKS MOUNTED WITH ANTI-AIRCRAFT GUNS ALSO MADE ITS WAY INTO GADHAFI'S HOMETOWN, SIRTE, BEFORE RETREATING FROM ROCKET FIRE BY QADDAFI LOYALISTS. THE FIGHTING COMES AMID A VISIT FROM TURKISH PRIME MINISTER RECEP TAYYIP ERDOGAN. HE URGED GADHAFI'S FORCES TO LAY DOWN THEIR ARMS.

>> ( translated ): RIGHT NOW, WE HAVE A VERY DIFFICULT SITUATION AND FIGHTING GOING ON IN SIRTE. I URGE ALL THE PEOPLE, ALL OUR BROTHERS THERE, TO JOIN THE PEOPLE OF BENGHAZI AND STOP THE BLOODSHED. GIVE YOUR HAND TO EACH OTHER. NO NEED TO HAVE MORE PEOPLE DEAD, MORE BLOOD. DO NOT RESIST. THIS IS THE END. THIS IS THE TIME TO JOIN YOUR BROTHERS.

>> Sreenivasan: ALSO TODAY, WHITE HOUSE DEPUTY NATIONAL SECURITY ADVISER BEN RHODES SAID THERE IS STILL NO INDICATION QADDAFI HAS LEFT LIBYA. BUT THE U.S. IS CONFIDENT HIS REGIME HAS COLLAPSED. AND IN A RELATED DEVELOPMENT, THE UNITED NATION'S GENERAL ASSEMBLY VOTED TO GIVE LIBYA'S SEAT TO THE NATIONAL TRANSITIONAL COUNCIL, MADE UP OF FORMER REBELS. BACK IN THE U.S., PRESIDENT OBAMA TODAY SIGNED INTO LAW THE FIRST MAJOR OVERHAUL OF THE NATION'S PATENT SYSTEM IN NEARLY 60 YEARS. THE AMERICA INVENTS ACT IS DESIGNED TO STREAMLINE THE PATENT PROCESS, REDUCE COSTLY LEGAL BATTLES, AND GIVE THE PATENT OFFICE MORE MONEY TO PROCESS APPLICATIONS FASTER. THAT OFFICE CURRENTLY TAKES AN AVERAGE OF THREE YEARS TO APPROVE A PATENT. AT A SIGNING CEREMONY IN ALEXANDRIA, VIRGINIA, THE PRESIDENT SAID THE BIPARTISAN LAW WOULD HELP BRING PRODUCTS TO MARKET FASTER AND SPUR INNOVATION. ON WALL STREET TODAY, STOCKS CLOSED STRONG, MANAGING THEIR FIRST FIVE-DAY WINNING STREAK SINCE JULY. THE DOW JONES INDUSTRIAL AVERAGE GAINED NEARLY 76 POINTS TO CLOSE AT 11,509. THE NASDAQ ROSE 15 POINTS TO CLOSE ABOVE 2,622. FOR THE WEEK, THE DOW GAINED NEARLY 5%; THE NASDAQ ROSE MORE THAN 6%. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JUDY.

>> Woodruff: AND WE TURN AGAIN TO EGYPT. MARGARET WARNER CONTINUES HER REPORTING FROM CAIRO WITH A LOOK AT THE ECONOMIC FALLOUT FROM THE REVOLUTION.

>> Warner: AFTER 30 YEARS DRIVING A TAXI FROM UPSCALE HOTELS THROUGH THE STREETS OF CAIRO, SAYED SWIDAN'S FARES COME FEW AND FAR BETWEEN THESE DAYS.

>> MY WORK IS VERY BAD RIGHT NOW.

>> Warner: THE REVOLUTION THAT TOPPLED HOSNI MUBARAK HAS KICKED OFF A POLITICAL TRANSFORMATION. BUT FOR MEN LIKE SWIDAN, THE UPHEAVAL HAS BROUGHT A STIFLING ECONOMIC SLOWDOWN, ESPECIALLY TO THE COUNTRY'S LIFEBLOOD, TOURISM.

>> BECAUSE I WORK WITH TOURISTS, AND NOT A LOT OF TOURISTS COME THIS YEAR, BAD AFTER DEMONSTRATION NOT GOOD JOB FOR ME. BUT FOR EGYPTIAN PEOPLE, IT IS GOOD FOR THEM, BUT NOT FOR ME.

>> Warner: AND NOT FOR MILLIONS OF OTHER EGYPTIANS WHO'VE SEEN THEIR BOTTOM LINES FALLING AS PRICES RISE. TOURISM GENERATES ONE IN SEVEN JOBS HERE AND 11% OF GROSS DOMESTIC PRODUCT. BUT THIS YEAR, INTERNATIONAL ARRIVALS AND THE REVENUE THEY PRODUCE HAVE BEEN CUT NEARLY IN HALF. OTHER GLOOMY INDICATORS ABOUND: STOCK MARKET DOWN 35% THIS YEAR; INFLATION PROJECTED TO RISE BY DOUBLE DIGITS; GROWTH, ANEMIC. THE STREETS OF GIZA SHOULD BE TEEMING WITH TOURISTS EARLY ON A FRIDAY MORNING. BUT TODAY, THE CAMEL DRIVERS AND HORSEMEN SAT IDLE.

>> ( translated ): NORMALLY, THIS PLACE IS SO FILLED THAT IT'S UNCOMFORTABLE TO STAND BECAUSE OF THE HUGE CROWD OF PEOPLE, FOREIGNERS AND EGYPTIAN PEOPLE ALIKE. EVER SINCE THE REVOLUTION, THE LIVELIHOODS OF THE PEOPLE WHO WORK HERE HAS BEEN BROUGHT TO A HALT.

>> Warner: KHALED SAYED AHMED RUNS SPORTING STABLES NEARBY. HE USED TO PULL IN ABOUT 1,500 EGYPTIAN POUNDS PER DAY, ABOUT U.S. $300. NOW, HIS SHIPS OF THE DESERT LIE DESERTED, AND MANY OF THE MEN WHO ONCE DROVE THEM ARE GONE.

>> ( translated ): THESE MEN AREN'T ONLY RESPONSIBLE FOR THEMSELVES. BEHIND THEM ARE WORKERS, THEN CAMELS, HORSES, AND FAMILIES TO FEED AND PROVIDE FOR, AND NO ONE'S HELPING US.

>> Warner: JUST UP THE STREET, MAHMOUD SAID OPENS AN EMPTY GALLERY. PAPYRUS ARTWORK HERE SELLS FROM $20 TO $2,000.

>> MOST DAYS, WE HAVE 20 CUSTOMERS, 15. NOW WE LUCKY TO GET ONE.

>> Warner: IT IS A COMMANDING VIEW FROM THE ROOF OF HIS GALLERY, BUT MAHMOUD SAYS, AS BAD AS TIMES ARE NOW, THINGS MIGHT GET STILL WORSE. REHOPE THE TOUCHISTS COME BACK BECAUSE WE HAVE HORSES, NEED HORSES DYING AND CAMELS, ALSO NO FOOD.

>> Warner: FOR SAYED SWIDAN, THE TUMULT HAS HIT NOT ONLY HIM, BUT HIS CHILDREN. HE WORKED SEVEN DAYS A WEEK FOR DECADES TO SEND HIS CHILDREN TO PRIVATE SCHOOL AND UNIVERSITY. SAYED'S 26-YEAR-OLD SON, TAMER, WHO GRADUATED WITH AN ACCOUNTING DEGREE, DOES HAVE A JOB-- TAXI DRIVER. NEITHER FATHER NOR SON BLAME THE REVOLUTION FOR THEIR LOT. THEY DO BLAME A SYSTEM THAT HASN'T CHANGED ENOUGH, YET.

>> Brown: RAY SUAREZ TALKED WITH MARGARET EARLIER TODAY AFTER SHE FILED THAT REPORT.

>> Suarez: HI, MARGARET.

>> Warner: HEY, RAY.

>> Suarez: EGYPT IS A PLACE WITH A FAST-GROWING POPULATION AND OFTEN A WILL SEE-GROWING ECONOMY. WASN'T THERE ECONOMIC DISSATISFACTION LONG BEFORE THE FALL OF MUBARAK?

>> THERE CERTAINLY WAS, RAY. TWO-THIRDS OF EGYPTIANS ARE UNDER THE AGE OF 30. AND IT'S ESTIMATED IT THAT A THIRD OF THEM DON'T HAVE JOBS AND A LOT OF THEM ARE UNIVERSITY GRADUATES. THIS NOT NEW. IN FACT, THE DRIVER SAED WHO IS IN OUR PIECE TOLD ME THAT WHEN HIS SON GRADUATED FROM CAIRO UNIVERSITY WITH AN ACCOUNTING DEGREE, HE SAID IF HE HAS FRIENDS IN MUBARAK OFFICE, HE GET JOB TOMORROW. NO FRIENDS, NO JOB. AND SO THERE IS A DEEP SENSE, REALLY, OF INJUSTICE HERE THAT IS A VERY LONG STANDING. IN FACT, IT WAS PART OF WHAT HELPED FUEL THE REVOLUTION. A RECENT POLL BY THE INTERNATIONAL REPUBLICAN INSTITUTE, WHEN PEOPLE WHO PARTICIPATED WERE ASKED WHAT DROVE YOU, ABOUT 80% SAID IT WAS REALLY UNHAPPINESS WITH THEIR ECONOMIC PROSPECTS RATHER THAN UNHAPPINESS WITH THE PACE OF DEMOCRATIC REFORM. SO WHAT IS BOTHERING PEOPLE HERE NOW THOUGH IS THAT ABSOLUTELY NOTHING APPEARS TO HAVE CHANGED. AND IN FACT SEEMS TO HAVE GOTTEN WORSE.

>> Suarez: .

>> Suarez: WELL, AFTER THE STRUGGLE AGAINST THE MUBARAK GOVERNMENT ARE MORE EGYPTIANS HAVING SECOND THOUGHTS ABOUT WHETHER IT WAS ALL WORTH IT, KIND OF REVOLUTIONARY BUYERS REMORSE. AND IF PEOPLE ARE UNHAPPY WHO DO THEY BLAME FOR HOW THINGS ARE GOING?

>> Warner: RAY, WE HAVEN'T HAD ANYONE SAY TO US WE WISH MU BARRING WERE-- MUBARAK WAS BACK. BUT THEY ARE VERY UNHELP WITH WHAT HAS COME AFTER MUBARAK. AS EARLIER PIECES OF MINE HAVE SHOWN. MANY PEOPLE THOUGHT THERE WOULD BE FASTER CHANGE. INSTEAD WHAT THEY'VE GOT IS A COMPLETE STALEMATE, UNCERTAINTY ABOUT WHERE THE COUNTRY IS GOING. AND LESS SECURITY. I MEAN ONE THING A POLICE STATE CAN GUARANTEE IS SECURITY WHEN YOU WALK IN THE STREET. PEOPLE DON'T FEEL QUITE THAT SAME SENSE OF SECURITY ANY MORE. NOW IN TERMS OF BLAMING ABOUT THE ECONOMIC SITUATION, YOU PUT YOUR FINGER ON A REALLY HOT POLITICAL ISSUE. IN THE STATE MEDIA, THE MILITARY GOVERNMENT, THE CABINET, ARE BLAMING THE REVOLUTION FOR THE BAD STATE OF THE ECONOMY. AND WHEN WE WERE AT THE TAHRIR SQUARE, A PROTEST RALLY LAST FRIDAY, THAT INFURIATING THE YOUNG ACTIVISTS THERE. WE TALKED TO ONE YOUNG COUPLE, HIGHLY EDUCATED, BOTH UNDEREMPLOYED AND THEY SAID THAT'S RIDICULOUS. THE RECENT FOREIGN INVESTMENT IN EGYPT IS DRYING UP RIGHT NOW. IT'S BECAUSE WITHOUT WANTS TO INVEST IN A COUNTRY IN WHICH YOU DON'T KNOW WHO IS GOING TO BE RUNNING THE GOVERNMENT. WHAT KIND OF GOVERNMENT IT WILL BE IN SIX MONTHS. FINALLY, RAY, THERE IS ANOTHER FACTOR THAT JUST DEVELOPED THE PAST WEEK AND THAT IS, OF COURSE, THE ATTACK ON THE ISRAEL EMBASSY. IN THE LAST FIVE DAYS THE STOCK MARKET HAS BEEN DOWN ABSOLUTELY EVERY DAY. AND ACCORDING TO THE EGYPTIAN MEDIA THIS IS NONARAB INVESTORS PULLING THEIR MONEY OUT. BECAUSE WHAT IT CONVEYED WAS A GENERAL SENSE OF LAWLESSNESS HERE WHICH MAY BE A SLIGHT EXAGGERATION. BUT NOT REASSURING TO ANYONE WHO IS THINKING OF INVESTING IN THIS COUNTRY.

>> Suarez: I'M GLAD YOU BROUGHT THAT UP. BECAUSE IN THAT SAME STRETCH OF DAYS, THE PRESIDENT OF TURKEY WAS IN HE-- EGYPT. IS THE POLITICAL MAP OF THE EASTERN MEDITERRANEAN NOW BEING REDRAWN? IS EGYPT MOVING TOWARD TURKEY AND AWAY FROM ISRAEL?

>> I AM NOT SURE I WOULD EQUATE ISRAEL AND TURKEY IN TERMS OF HE GYP'S RELATIONSHIP WITH THEM. BECAUSE AS WE ALL KNOW, THE RELATIONSHIP WITH ISRAEL, THE PEACE ACCORD, IT WAS REALLY AN ACCORD OF NECESSITY. A VERY COLD PIECE AS THE CLICHE GOES. BASICALLY KEPT BOTH COUNTRIES FROM FEELING THEY RISK GOING TO WAR. EGYPT'S RELATIONSHIP WITH TURKEY IS QUITE DIFFERENT. I MEAN TURKEY IS SEEN AS A VERY SUCCESSFUL COUNTRY HERE. THE MOST SUCCESSFUL MUSLIM MAJORITY STATE CERTAINLY IN THE REGION. AND WHEN HE CAME THIS WEEK HE WAS TREATED LIKE A ROCK STAR. LITERALLY PEOPLE WERE WAVING FOR HIM IN THE STREETS. HE GOT HUGE CROWDS AT ALL OF HIS EVENTS. AND I THINK ARE YOU DEFINITELY GOING TO SEE GREATER, IF NOT COORDINATION, COOPERATION, THEN COORDINATION BETWEEN THE TWO ON MANY ISSUES INVOLVING THE EASTERN MEDITERRANEAN BUT ALSO THE WORLD. FOR EXAMPLE NEXT WEEK'S VOTE IN THE U.N. OR AT LEAST THE INTRODUCTION OF THE ISSUE ON PALESTINIAN STATEHOOD. FINALLY, RAY, YESTERDAY IN A REAL STUNNER THE TRANSITIONAL PRIME MINISTER OF EGYPT, NOW HE IS JUST THE TRANSITIONAL GOVERNMENT BUT CAME OUT AND SAID THAT THE CAMP DAVID ACCORD WAS QUOTE NOT A SACRED THING. AND COULD BE, SHOULD BE DISCUSSED AND MIGHT HAVE TO BE. I DON'T KNOW IF HE USED THE WORD RENEGOTIATED BUT LOOKED AT IN TERMS OF WHAT WAS BEST FOR THE PEACE AND SECURITY OF THE REGION. NOW UP UNTIL NOW THERE WAS TRANSITIONAL GOVERNMENT. ALL THE POLITICAL PLAYERS HAVE BEEN SAYING, THE CAMP DAVID ACCORD STANDS. AND THE FACT THAT SO SOON AFTER THE ISRAEL EMBASSY ATTACK HE CAME FORWARD AND SAID THAT, SAID TO OBSERVERS HERE, THEY HAVE TO LISTEN TO THE EGYPTIAN STREET. AND WHEN WE'VE TALKED TO VARIOUS POLITICAL PARTIES HERE, ALL OF THEM HAVE SAID WELL, WE WANT TO RETAIN THE CAMP DAVID AGREEMENT. SOME OF THE SIDE AGREEMENTS WILL HAVE TO BE RENEGOTIATED. FOR EXAMPLE, EGYPT SELLS ISRAEL 40% OF ITS NATURAL GAS. SO ALL OF THIS COMBINES, RAY, I THINK TO MAKE ISRAEL'S AT LEAST SENSE OF POLITICAL SECURITY IN THIS REGION LESS SECURE THAN IT WAS JUST TWO MONTHS AGO.

>> Suarez: MARGARET, THANKS A LOT. GOOD TO TALK TO YOU.

>> Warner: THANK YOU, RAY

>> Brown: WHEN MARGARET RETURNS NEXT WEEK, WE'LL HAVE HER INTERVIEW WITH NOVELIST AND ACTIVIST ALAA AL-ASWANY FOR HIS PERSPECTIVE ON THE UPRISING AND THE POST-MUBARAK ERA.

>> Woodruff: NOW, TO OUR NEWSHOUR CONVERSATION WITH FORMER VICE-PRESIDENT DICK CHENEY. I SPOKE WITH HIM A SHORT TIME AGO ABOUT HIS NEW BOOK, "IN MY TIME: A PERSONAL AND POLITICAL MEMOIR" AND MUCH MORE.

>> Woodruff: FORMER VICE PRESIDENT DICK CHENEY, THANK YOU VERY MUCH FOR TALKING WITH US.

>> WELL, IT'S NICE TO BE ON THE PROGRAM AGAIN JUDY.

>> Woodruff: SO THE BOOK IS "IN MY TIME" AND IN THE BOOK YOU TALK EXTENSIVELY, WRITE EXTENSIVELY ABOUT YOUR TIME IN GOVERNMENT, IN CONGRESS, YOU WERE CHIEF OF STAFF TO PRESIDENT FORD. YOU WERE SECRETARY OF DEFENSE AND OF COURSE VICE PRESIDENT. IN ALL THOSE YEARS IN GOVERNMENT WAS THERE ONE ACTION, ONE POLICY MOVE THAT YOU THINK HAS HAD THE GREATEST IMPACT ON THIS COUNTRY?

>> WELL, I THINK IN MORE RECENT TIMES, PROBABLY THE MOST SIGNIFICANT WAS THE PERIOD AFTER 9/11. THE EFFORT WE HAD TO MOUNT TO KEEP THE COUNTRY SAFE FROM FOLLOW-ON ATTACK, THE MORNING AFTER 9/11 THERES WITH A CONVICTION THAT THERE WOULD BE FOLLOW-ON ATTACKS. WE READ A LOT OF INTELLIGENCE TO THAT EFFECT. BUT KEEPING THE COUNTRY SAFE FOR SEVEN AND A HALF YEARS WAS PROBABLY OUR MOST SIGNIFICANT ACHIEVEMENT DURING THAT PERIOD.

>> Woodruff: AN THERE OF COURSE WAS A LOT OF DEBATE A LOT OF DISCUSSION ABOUT WHAT HAPPENED, INCLUDING THE DEBATE ABOUT NATIONAL SECURITY VERSUS CIVIL LIBERTIES. I JUST HAPPEN TO LOOK AT THE "THE WALL STREET JOURNAL" THE OTHER DAY. THEY OF COURSE HAVE WRITTEN A REVIEW OF THE BOOK AND A READER WROTE IN AS'S COMMENT AND HE SAID QUOTE THERE'S NO DOUBT AMERICA IS SAFER BECAUSE OF DICK CHENEY'S SECURITY POLICIES BUT HE SAID THE SOVIET UNION WAS THE SAFEST PLACE IN THE WORLD UNDER JOSEPH STALIN. AND HE SAID WHEN WE DENY CIVIL LIBERTIES TO OTHER PEOPLE WE SHOULD ALWAYS ASK OURSELVES WHAT PRICE FREEDOM.

>> WELL, THE QUESTION I WOULD ASK IS WHAT CIVIL LIBERTIES WERE DENIED. TO AMERICAN CITIZENS. AND WHAT WE DID, IN TWO AREAS, THE TERROR SURVEILLANCE PROGRAM PROBABLY WAS THE MOST BROAD REACHING THAT WE PUT TOGETHER IN THE AFTERMATH OF 9/11. WE DID THAT WITH THE APPROVAL OF CONGRESSIONAL LEADERSHIP. THEY WERE FULLY BRIEFED ON THE WHOLE EXERCISE. WE EVENTUALLY WENT BACK AND GOT MODIFICATIONS AND STATUTES, THE COURT THAT OVERSEAS THE PROCESS OF OUR INTELLIGENCE COLLECTIONS AND WOULD BE HARD PUT TO FIND ANY EVIDENCE THAT IT WAS, IN FACT, INFRINGEMENT ON PEOPLE'S CIVIL LIBERTIES. THERE WAS A LOT OF EMOTION GENERATED BY THAT. ALSO BY THE ENHANCED INTERROGATION TECHNIQUES THAT WERE USED JUST ON A HANDFUL OF AL QAEDA CAPTIVES. NEVER ON AMERICAN CITIZENS.

>> Woodruff: SO YOU DISPUTE THE IDEA THAT CIVIL LIBERTIES WERE CIRCUMSCRIBED.

>> I DO.

>> Woodruff: DO YOU THINK THE COUNTRY, VICE PRESIDENT CHENEY, IS AS SAFE TODAY AS IT WAS WHEN YOU AND PRESIDENT BUSH LEFT OFFICE?

>> WELL, THAT DEPENDS IN PART, OF COURSE, ON WHAT OUR ADVERSARIES ARE UP TO. AND WE CAN'T KNOW EVERYTHING THERE. I THINK THERE'S STILL A SIGNIFICANT THREAT OUT THERE I DON'T THINK THAT'S GONE BY ANY MEANS. AND I THINK IT'S VERY IMPORTANT FOR TO US REMAIN VIGILANT. BUT OF COURSE OSAMA BIN LADEN'S DEAD NOW. THAT'S A SIGNIFICANT PLUS. IN TERMS OF GREATER SECURITY. BUT I WORRY VERY MUCH THAT WE'RE STILL VULNERABLE TO ATTACK IF YOU HAVE A GROUP OF TERRORISTS WHO ARE DEDICATED TO LAUNCHING AN ATTACK, KILLING AMERICANS AND THEY DON'T CARE ABOUT SURVIVING THEMSELVES.

>> Woodruff: CONNECTION WITH THAT, THERE WAS A STORY IN "THE NEW YORK TIMES" TODAY ABOUT A DEBATE INSIDE TODAY, INSIDE THE O OBAMA ADMINISTRATION OVER JUST HOW HAR TO TAKE THE WAR AGAINST TERRORISTS. WHETHER TO CARRY IT AS FAR AS THE FOOT SOLDIERS, FOR EXAMPLE IN SOMALIA, IN YEMEN WHO ARE WORRIED ABOUT PAROCHIAL CONCERNS ABOUT LAND OR JUST, TO RESTRICT IT TO THE HIGH LEVEL INDIVIDUALS WHO HAVE-- MAY HAVE PLOTTED AN ATTACK AGAINST THE UNITED STATES.

>> WELL, BUT IT'S DIFFICULT TO SORT OF APPLY THOSE KIND OF CONCEPTS TO SOME ORGANIZATION LIKE AL QAEDA. WE HAD ABU AL CZAR KARI FOR EXAMPLE, A JORDANIAN BY BIRTH, IMPRISONED, ENDED UP IN AFGHANISTAN RUNNING A TRAINING CAMP FOR AL QAEDA AND BECAME THE HEAD OF AL QAEDA IN IRAQ. NATIONAL BOUNDARIES DIDN'T MEAN ANYTHING. EVENTUALLY WE KILLED HIM BUT AFTER HE HAD DONE ENORMOUS DAMAGE OVER A LONG PERIOD OF TIME. NOW DOW WANT TO CATCH HIM EARLY IN HIS CAREER WHEN HE FIRST COMMITS A TERRORIST ACT OR DOW WANT TO WAIT UNTIL HE BECOMES THE LEADER OF ALL THE AL QAEDA IN IRAQ.

>> Woodruff: YOU ARE SAYING YOU DO DRAW THE LINE OR YOU DON'T.

>> I DON'T THINK YOU CAN. THINK YOU HAVE TO BE AWARE THAT THERE IS A THREAT OUT THERE. AND THAT IF YOU FIND PEOPLE WHO ARE PLOTTING ATTACKS AGAINST AMERICANS OVERSEAS OR HERE AT HOME, OR FRIENDS AND ALLIES THEN YOU HAVE TO TAKE ACTION.

>> Woodruff: YOU HAVE BEEN ASKED THIS QUESTION A THOUSAND TIMES, THE WAR IN IRAQ, THE JUSTIFICATION WAS, THE FEAR WAS SADDAL HUSSEIN HAD A WAY TO THREATEN THE UNITED STATES, OR OUR INTERESTS, U.S. INTERESTS. WE NOW KNOW THERE WERE NO WEAPONS OF MASS DESTRUCTION, YOU HAVE WRITTEN ABOUT THAT. IN LOOKING BACK ON IT, 20/20 HINDSIGHT HAVE YOU CHANGED THE JUSTIFICATION IN YOUR OWN MIND FOR THAT WAR THAT SO MANY PEOPLE TODAY THINK WAS A MISTAKE.

>> YEAH, WELL, THE, I GUESS THE WAY I LOOK AT IT IS THAT THE, THERE WAS JUSTIFICATION. IT WASN'T A QUESTION THAT HE DIDN'T HAVE ANY WEAPONS OF MASS DESTRUCTION. HE HAD NO STOCKPILES. HE STILL HAD THE PEOPLE. HE HAD THE TECHNOLOGY, HE HAD THE RAW MATERIALS. AND HE CLEARLY HAD THE INTENT. IF YOU TALK TO A MAN LIKE CHARLES WHO OVERSAW THE IRAQ SURVEY GROUP THAT WENT IN AND DID THE SEARCH FOR, AND SEE WHAT HE HAD AFTERWARDS, HE WAS VERY CONDITIONED ABOUT WHAT THEY DID FIND.

>> Woodruff: BUT THEY DIDN'T HAVE WEAPONS.

>> THEY DIDN'T HAVE ANY STOCKPILE APPROXIMATES OF EXISTING WEAPONS.

>> Woodruff: YOU TALK ABOUT NATIONAL SECURITY MORE THAN THE ECONOMY IN THE BOOK. BUT WHEN IT COMES TO DEFICITS, YOU RESPONDED TO SOMETHING THAT PAUL O'NEILL THE FORMER TREASURY SECRETARY WROTE WHEN AT ONE POINT HE TOLD HIM RONALD REAGAN PROVED DEFICITS DON'T MATTER. YOU RESPONDED HE TOOK YOU OUT OF CONTEXT T THAT IS NOT REALLY WHAT YOU MEANT. BUT TODAY HOW MUCH OF A PRIORITY SHOULD THERE BE ON DEFICITS?

>> THERE HAS TO BE A BIG PRIORITY ON IT WE'RE TO THE POINT NOW ESPECIALLY TO THE RESULT LOOKING AT OUR LONG-TERM DEBT PROBLEM AND ENTITLEMENTS IN PARTICULAR, WE HAVE TO HAVE I HOPE THE SPECIAL COMMITTEE THAT'S BEEN APPOINTED WILL, IN FACT, ADOPT A MAJOR PROGRAM TO REDUCE OUR DEFICITS.

>> Woodruff: EVEN THOUGH THERE WASN'T THAT SORT OF FOCUS ON DEFICITS IN YOUR ADMINISTRATION.

>> WELL, FIRST OF ALL THE DEFICIT WASN'T NEARLY AS BIG OBVIOUSLY AS IT IS TODAY. IT'S BEEN SIGNIFICANTLY EXPANDED UNDER THE OBAMA.

>> Woodruff: IT WAS 400 BILLION WHEN YOU AND PRESIDENT BUSH LEFT OFFICE.

>> BUT NOW WE'RE TALKING ABOUT A DEFICIT, A DEBT THAT RIVALS OUR TOTAL NATIONAL ANNUAL ECONOMY. UPWARDS OF 14 TRILLION DOLLARS. THE SITUATION TODAY IS MORE SERIOUS THAN IT WAS THEN. IT'S GOING TO REQUIRE TO US GO AFTER ENTITLEMENTS AS WELL AS OTHER ASPECTS OF FEDERAL SPENDING AND IT'S ESSENTIAL THAT WE DO IT.

>> Woodruff: ARE YOU CRITICAL EITHER MILDLY OR MORE VIGOROUSLY OF A NUMBER OF HIGH LEVEL PEOPLE IN THE BUSH ADMINISTRATION COLON POWELL, CONDOLEEZZA RICE AN A NUMBER OF OTHERS, HOW DID YOU DECIDE, SOME SAID YOU SHOULD HAVE EVEN BEEN MORE CRITICAL, YOU SHOULD HAVE BEEN MORE UNVARNISHED IN YOU WHAT SAID. HOW DID YOU DECIDE HOW MUCH TO PULL THE CURTAIN BACK?

>> WELL, I TRIED TO KEEP IT FOCUSED ON POLICY. AND WHERE THERE WERE POLICY DIFFERENCES. BECAUSE I THOUGHT THERE WERE SOME AREAS WHERE THERE WERE LEGITIMATE DEBATES. I HAD A MAJOR DISAGREEMENT, FOR EXAMPLE, WITH THE STATE DEPARTMENT RUN BY SECRETARY RICE OVER THE WAY WE HANDLED THE NORTH KOREAN ACCOUNT. I WRITE ABOUT THAT IN THE BOOK. AND I THOUGHT IT WAS ENLIGHTENING IN TERMS OF BEING ABLE TO TALK ABOUT THE KINDS OF PROBLEMS YOU ENCOUNTER IN ADMINISTRATION. AND IT ALSO DEALT WITH A VERY IMPORTANT PROPOSITION OF A PROLIFERATION OF WEAPONS OF MASS DESTRUCTION TO TERRORIST SPONSORING STATES, IN THIS CASE SYRIA. WITH RESPECT TO GENERAL POWELL, AGAIN, WE HAD WORKED CLOSELY TOGETHER AND WHEN WE WERE AT THE DEFENSE DEPARTMENT. I WRITE ABOUT THAT. I GAVE HIM CREDIT FOR THAT I MENTIONED THAT I GOT HIM APPOINTED AS THE CHAIRMAN OF JOINT CHIEFS OF STAFF. BY THE TIME HE GOT TO THE STATE DEPARTMENT AND I BECAME VICE PRESIDENT, IT DIDN'T WORK AS WELL, OBVIOUSLY.

>> Woodruff: ONE LAST QUESTION, MITT ROMNEY FORMER GOVERNOR OF MASSACHUSETTS SAID THIS WEEK ABOUT YOU, HE SAID QUOTE, WHETHER YOU AGREE OR DISAGREE WITH HIM THIS IS A MAN OF WISDOM AND JUDGEMENT. HE SAID THAT'S THE KIND OF PERSON I LIKE TO HAVE FOR VICE PRESIDENT, ARE YOU READY TO RETURN THE FAVOR, THAT HE'S THE KIND OF PERSON --

>> THAT'S VERY KIND OF MITT. HE'S A GOOD MAN. I HAVEN'T ENDORSED ANYBODY FOR PRESIDENT AND I DO NOT WANT TO BE VICE PRESIDENT AGAIN. I HAD A GREAT EIGHT YEARS THERE BUT MY POLITICAL CAREER HAS ENDED. I SPENT 40 YEARS AT IT I DON'T HAVE ANY PLANS TO RETURN TO PUBLIC LIFE.

>> Woodruff: COULD YOU SUPPORT HIM?

>> MITT ROMNEY, IF HE'S THE NOMINEE, CERTAINLY.

>> Woodruff: ALL RIGHT, WELL, WE WILL LEAVE IT THERE. FORMER VICE PRESIDENT DICK CHENEY, THE BOOK IN "IN MY TIME"

>> GOOD TO SEE YOU AGAIN, JUDY.

>> Brown: AND TO THE ANALYSIS OF BROOKS AND MARCUS-- "NEW YORK TIMES" COLUMNIST DAVID BROOKS AND "WASHINGTON POST" COLUMNIST RUTH MARCUS. MARK SHIELDS IS AWAY. WELCOME NOW RESPONDING WE'RE WATCHING VICE PRESIDENT CHENEY AND RUTH, WE HAD TO RESTRAIN YOU AT CERTAIN MOMENTS WITHIN YOU DID ARE TO RESTRAIN ME. AT I WASN'T SURE THAT I WAS GOING TO HAVE ANYTHING NEW TO SAY ABOUT VICE PRESIDENT CHENEY, I HAVE SEEN HIM INTERVIEWED BEFORE. BUT I HAVE TO SAY HE HAD MY BLOOD BOILING IN THE DISCUSSION ABOUT DEFICITS. BECAUSE LET'S GET SEVERUOUS. WHEN PRESIDENT BUSH AND VICE PRESIDENT CHENEY CAME INTO OFFICE, THEY INHERITED A SURPLUS. THE REASON THAT WE ARE FACING DEFICITS NOW AND DEFICITS AND WE'VE PILED ON SO MUCH DEBT IN THE FUTURE IS IN SIGNIFICANT PART BECAUSE OF THE TAX CUTS THAT THEY INSTITUTED AND REFUSED TO FIND A WAY TO PAY FOR. HE TALKS ABOUT ENTITLEMENT PROBLEMS BECAUSE OF THE LARGEST INCREASE IN ENTITLEMENTS GUARANTEES, THE PRESCRIPTION DRUG PLAN WHICH THEY INSTITUTED AND REFUSE TO PAY FOR. AND BECAUSE OF THE WARS. SO DON'T-- GET ME YOUR TURN, DAVID.

>> I AGREE THAT THE BUSH-OBAMA TAX CUTS WHICH THE CURRENT PRESIDENT HAS FULLY ENDORSED.

>> NOT FULLY ENDORSED. NOT FULLY ENDORSED.

>> I THEY THEY ARE ALL CONSISTENT. ONE THING I WOULD LIKE TO SAY ABOUT CHENEY, FOR SOMETHING HE MENTIONED AND THAT TIES BACK TO SOMETHING EARLIER IN THE PROGRAM, THAT WAS SYRIA. HE DESCRIBES IN THE BOOK, A MEETING-- I AGREE WITH RUTH, ON EVERYTHING SHE SAID.

>> I WILL BE QUIET NOW.

>> SO ON SYRIA THEY HAD A MEETING IN THE WHITE HOUSE. SHOULD WE BOMB THE SYRIAN NUCLEAR REACTOR SEVERAL YEARS AGO AND ONE PERSON SAID YES AND THAT WAS DICK CHENEY. EARN ELSE SAID NO. HE WAS ACTUALLY RIGHT ABOUT THAT. IF THE ISRAELIES HAD NOT TAKEN OUT THE REACTOR IMAGINE WHERE WE WOULD BE TODAY WHERE WE HEARD IN THE NEWS SUMMARY ABOUT THOUSANDS OF PEOPLE BEING KILLED BY THE ASSAD REGIME. WHAT IF THEY HAD NUKES RIGHT NOW. THIS WOULD BE A VERY SCARY WORLD SO I'M NOT A BIG CHENEY FAN, I WAS MORE ON THE RICE SIDE OF THINGS, I THINK HE WAS RIGHT ABOUT THAT ONE.

>> Brown: WE HEARD JUDY ASK HIM ABOUT THE ROMNEY COMMENT THAT MAKES ME WONDER, WHAT IS DICK CHENEY'S POSITION IN THE PARTY TODAY? AND IN AMERICAN POLITICS?

>> YOU KNOW, IT'S FUNNY. I WOULD SAY THAT IN GENERAL THE BUSH CHENEY REGIME HAS A VERY SMALL POSITION IN THE PARTY THERE. THEY ARE NOT WELL THOUGHT OF. THAT MAY COME BACK IN A FEW YEARS. THEY DON'T WANT ANYBODY OUTSIDE THE PARTY DISRESPECTING TO BUSH AND CHENEY BUT THE BUSH CHENEY YEARS WITHIN THE PARTY RIGHT NOW ARE NOT SEEN AS SUCCESSFUL YEARS IN PART BECAUSE OF WHAT RUTH MENTIONED, IN PART BECAUSE OF THE SPENDING AND DEFICIT.

>> YOU HAVE TO WONDER IF DICK CHENEY HAD TAKEN THE OPPORTUNITY TO THROW HIS ARMS AROUND MITT ROMNEY AND ENDORSE HIM, WHETHER THAT WOULD HAVE MADE MITT ROMNEY HAPPY. IT CERTAINLY WOULD NOT HELP HIM IN A SWREN ELECTION WHICH IS CLEARLY WHAT HE IS LOOKING AT.

>> ALL RIGHT. TO CURRENT POLITICS, THERE WAS A MUCH WATCHED SPECIAL ELECTION IN NEW YORK THIS WEEK. REPUBLICAN BOB TURNER WON IN WHAT HAD BEEN A HEAVILY DEMOCRATIC DISTRICT. DO WE READ MUCH INTO THESE THINGS.

>> I THINK IN GENERAL YOU CAN READ A COUPLE THINGS. THERE HAS BEEN A LOT OF TALK ABOUT THE JEWISH VOTE. WHETHER THE JEWS ARE SOUR ON OBAMA. THEY ARE, BUT WAIT UNTIL THEY GET RICK PERRY. I DON'T THINK THAT WILL BE A BIG PROBLEM IN THE FALL. I THINK THE BIGGER SIGNIFICANCE OF THE NEW YORK NINE IS THE STATE OF PLAY IN THE ELECTORATE IN 2010 WHICH IS SO PRO REPUBLICAN IS STILL ESSENTIALLY THE STATE OF PLAY. THAT THE PRESIDENT AND THE DEMOCRATS HAVE TRIED TO ALTER THE POLITICAL LANDSCAPE BUT ESSENTIALLY THEY HAVE NOT ALTERED IT. I DON'T THINK WE CAN SAY ANYTHING USEFUL ABOUT WHETHER OBAMA CAN BE RE-ELECTED FROM THIS BUT I THINK YOU CAN SAY USEFUL THINGS ABOUT THE SENATE RACES COMING UP NEXT TIME IN WHICH THE DEMOCRATS HAVE TWICE AS MANY PEOPLE UP. AND I THINK IF THE LANDSCAPE STAYS THE WAY IT IS, I THINK YOU CAN LOOK FOR HARRY REID AS MAJORITY LEADER MAY BE VERY SHORT, MAY NOT LAST IN THE NEXT ELECTION.

>> WHAT DOW READ FROM THIS ELECTION.

>> WELL, THERE IS ALWAYS A TEMPTATION, PARTICULARLY FOR THE WINNING SIDE TO OVERREAD THE RESULTS OF A SPECIAL ELECTION. THAT BEING SAID, THIS IS NOT A GOOD NEWS ELECTION FOR DEMOCRATS. BUT AND I TAKE DAVID'S POINT. BUT I WOULD ALSO SAY YOU HAD EARLIER IN THE YEAR A SPECIAL ELECTION IN A TRADITIONALLY REPUBLICAN SEAT GOING FOR THE DEMOCRAT AFTER THE MEDICARE VOTE. NOW YOU HAVE THIS SEAT WHICH HAD BEEN HELD BY A DEMOCRAT FOR ALMOST A CENTURY GOING FOR A REPUBLICAN. IT'S AN ELECTORATE THAT IS FED UP AND WANTING TO SEE SOME RESULTS FROM PRESIDENT OBAMA. BUT IT'S ALSO A VERY VOLATILE ELECTORATE AND THAT'S ANOTHER LESSON.

>> CHARLIE COOK THE POLITICAL ANALYST SAYS THAT HE'S NEVER SEEN AN ELECTION WHERE THEY THROW THE BUMS OUT APPLIES TO BOTH PARTIES SIMULTANEOUSLY AND HE IS WONDERING IF WE MAY BE ON THE VERGE OF THAT.

>> WHILE THIS WAS HAPPENING THE PRESIDENT HIMSELF WAS ON THE ROAD MOST OF THE WEEK PUSHING HIS JOBS PLAN, PASS THIS BILL, PASS THIS BILL. WHAT IS YOUR SENSE A WEEK LATER AFTER THAT SPEECH, IS ANYBODY LISTENING?

>> LISTENING, PERHAPS BUT NOT NECESSARILY RESPONDING AS HE HAD HOPED. WE SAW SOME INTERESTING DEVELOPMENTS THIS WEEK. MOST DISAPPOINTING WAS HOUSE SPEAKER JOHN BAYNER WHO CAME OUT AND SAID OKAY. WITH THE SUPERCOMMITTEE WHICH D AND THAT TIES INTO THE JOBS PLAN, WE'RE NOT GOING TO HAVE ANY TAX INCREASES. AND THAT GETS-- AFFECTS THE JOBS PLAN BECAUSE IT AFFECTS THE WAY YOU COULD PAY FOR THE SQOBS PLAN. THE REPUBLICANS --

>> WERE YOU EXPECTING OTHERWISE?

>> WELL, THE REPUBLICANS HAD SOUNDED, WELL, TWO THINGS. FIRST OF ALL THE REPUBLICANS HAD SOUNDED MUCH MORE CONCILIATORY TONE IN THE FIRST WEEK THAN THE SECRETARY WEEK. SECRETARY OF ALL EVEN THOUGH TO SOME EXTENT SPEAKER BOEHNER WAS NOT SAYING ANYTHING THAT HE HAD NOT SAID PREVIOUSLY ABOUT THIS SUPERCOMMITTEE, AT THIS POINT MERELY REAFFIRMING THAT BRIGHT LINE, NO NEW TAXES IS PROBLEMATIC AND HE CLEARLY BEHIND CLOSED DOORS HAD BEEN WILLING TO BE MORE FLEXIBLE SO THAT WAS A DISAPPOINTMENT. AND THINK THE OTHER THING GOING ON IS DEMOCRATS DON'T SEEM TO BE RALLYING IN HUGE NUMBERS AROUND, ESPECIALLY THE DEMOCRATS WERE UP FOR ELECTION AROUND THE TOTALITY OF THE PRESIDENT'S PLAN.

>> SOME SPECIFICALLY SAYING-- A LA CART.

>> THE WILL, WHERE DO YOU SEE.

>> I SHARE THE DISAPPOINTMENT FOR DIFFERENT REASONS ALTHOUGH I AGREE WITH RUTH'S REASONS. DEMOCRATS WALKING AWAY, TO ME THE BIGGEST DISAPPOINTMENT WAS HOW THE PRESIDENT HAS LEAKED THAT HE WAS GOING TO PAY FOR IT. AND THAT'S IN PART BY REDUCING THE CHARITABLE TAX DEDUCTION AND OTHER DEDUCTIONS THAT GO FOR THE RICH. THIS IS A POLITICAL NONSTARTER, IF DEMOCRATS CONTROL THE SENATE AND THE HOUSE IT WOULD BE A POLITICAL NONSTARTER THAN GOD KNOWS IT'S A POLITICAL NONSTARTER NOW SO THEY WENT BACK TO AN OLD IDEA THAT HAS ALREADY BEEN REJECTEDDED AND THAT IS A SIGN THEY ARE NOT REALLY SERIOUS ABOUT PASSING THIS THING. IT IS JUST MORE OF A POLITICAL STATEMENT.

>> I AM DISAPPOINTED THEY WENT BACK TO THIS IDEA WHICH IS TO THE GOING TO PASS WHICH BY THE WAY IS BAD POLICY.

>> NO, IT'S GOOD POLICY. YOU'RE TOTALLY WRONG. IT'S GOOD TAX POLICY BECAUSE IT DOESN'T ELIMINATE DEDUCTIONS BUT IT MAKES THE BENEFIT THAT YOU GET FROM THE DEDUCTIONS FOR THE RICHEST PEOPLE AMONG US MORE EQUIVALENT TO THE VALUE OF THE DEDUCTIONS FOR OTHERS. AND SO IT'S GOOD POLICY. I DO AGREE WITH YOU, SINCE YOU HAVE BEEN KIND ENOUGH TO AGREE WITH ME ON SOMETHING THAT IS NOT --

>> THAT'S SWEET.

>> YEAH, GET OVER IT IT'S NOT GOING ANYWHERE, SO IT IS CURIOUS THAT THAT WAS WHAT THE PRESIDENT CHOSE TO LEAD WITH ON THAT.

>> STATE POLICY BECAUSE IT WILL DEDUCT BILLIONS OF DOLLARS FOR THE CHARITIES AND FOUNDATIONS GET.

>> Brown: WHAT DO YOU MAKE OF SPEAKER BOEHNER YESTERDAY BECAUSE HE SAID THE SO-CALLED SUPERCOMMITTEE REALLY HAS WHAT HE-- ONE PATH, RIGHT. HE SAID SPENDING CUTS AND ENTITLEMENT REFORM. NOTHING TO DO WITH TAXES.

>> THAT MEANS WE WON'T REACH A DEAL. I DON'T THINK IT'S A SHOCKER BUT HE SET IT DOWN. WE'RE TO THE GOING TO HAVE A DEAL. WILL WE'LL PROBABLY HAVE SOME SORT OF QUESTION,S THIS'S BAD, BECAUSE IF ARE YOU GOING TO CUT, YOU WANT TO DO IT WITH SOME SENSE OF STRATEGY. THAT MAKES IT MUCH HARDER NOW TO DO IT THAT WAY. IN DEFENSE DEPARTMENT WHAT IS OUR STRATEGY GOING TO BE. AND SO I THINK IT'S GRIM WHAT'S ABOUT TO HAPPEN.

>> Brown: YOUR SENSE IS THAT WE WON'T HAVE A DEAL OR DO YOU THINK THAT PEOPLE ON THE HILL AND AT THE WHITE HOUSE THINK WE WON'T HAVE A DEAL.

>> I THINK EVERYONE THINKS WE WON'T HAVE A DEAL.

>> I AGREE BUT KEEP YOUR EYE ON THE TRIGGER AND THE BULLET BECAUSE THE TRIGGER GETS PULLED.

>> Woodruff: REMIND PEOPLE.

>> IN JANUARY. IN OTHER WORDS, I'M SORRY. THE IMPACT OF NOT REACHING A DEAL IS THAT THERE ARE THESE SEQUESTERS, THESE AUTOMATIC CUTS THAT HAVE ALREADY BEEN AGREED ON THAT GO INTO EFFECT. HOWEVER T TAKES ESSENTIALLY A YEAR FOR THOSE CUTS TO GO INTO EFFECT. SO WE'RE GOING TO BE WATCHING THIS BULLET WHICH INCLUDING SOME VERY BIG DEFENSE CUTS, SOME CUTS FOR ME CADE-- MEDICARE PROVIDERS AND THINGS LIKE THAT. WE WILL WATCH THIS BULLET TRAVEL FOR A YEAR. THAT IS GOING TO INCENTIVIZE PERHAPS SOME DEAL MAKING BUT I AGREE WITH DAVID IT WILL BE VERY HARD TO ACHIEVE BEFORE THEN.

>> Brown: YOU HAD THE PRESIDENT COMING OUT MONDAY WITH A DEFICIT REDUCTION. SO YOU ARE SAYING AT THIS POINT IT'S SORT OF A KAKE DANCE DOWN TO ANOTHER DEADLINE.

>> I THINK WHAT WE'VE LEARNED IS THAT THE PRESIDENT SAID IN THE SPEECH THE VERY GOOD SPEECH LAST WEEK THAT WE, THE UNEMPLOYED DON'T HAVE 14 MONTHS TO WAIT.

>> Brown: RIGHT.

>> WELL, THEY HAD BETTER WAIT. NOT THAT I'M SAYING THIS WOULD NECESSARILY CREATE A LOT OF JOBS, BUT I THINK, I THINKS, I THINK THE REPUBLICANS THINK THIS IS PART OF THE CAMPAIGN, NOT PART OF THE LEGISLATIVE PROCESS.

>> Pirro: .

>> Brown: THERE ONE MORE QUESTION IN OUR TIME LEFT, ONE MORE ISSUE, ANOTHER STORY THAT GOT A LOT OF ATTENTION THIS WEEK IS THE SOLAR PANEL COMPANY GOT MAJOR GOVERNMENT LOANS THEN WENT BANKRUPT, QUESTIONS ABOUT WHETHER THE WHITE HOUSE AND HOW MUCH THE WHITE HOUSE HELPED PUSH THOSE LOANS, IS THIS AN IMPORTANT STORY, DO YOU THINK.

>> IT IS LOOKING IMPORTANT IT IS A TERRIBLE STORY FOR THE WHITE HOUSE THAT THEY ABSOLUTELY WORST TIME. IF YOU WERE TALKING ABOUT WHETHER WE NEEDED ANOTHER PROGRAM TO HELP CREATE JOBS AND MORE GOVERNMENT SPENDING TO HELP CREATE JOBS, WHILE OUR THOUGHT THAT THE GOVERNMENT KNOWINGLY, RECKLESSLY POTENTIALLY RISKED MONEY TO A COMPANY THAT HAD A HUGE LOBBYING PRESENCE, A HUGE FUND-RAISING PRESENCE IS JUST THE EXACT OPPOSITE OF THE STORY THE WHITE HOUSE WANTS. AND WHETHER OR NOT THERE IS REAL FIRE THERE, THE SMOKE IS TERRIBLE FOR THEM.

>> THERE'S THE SCANDAL INVOLVING THAT, THE POTENTIAL SCANDAL, BUT THEN THE BIGGER PROBLEM IS THEY HAVE THIS BIG PROGRAM, TENS OF BILLIONS OF DOLLARS WHICH THEY HOPE TO USE TO CREATE 65,000 JOBS. SO FAR THEY HAVE CREATED SOMETHING LIKE 3,000 JOBS. AND SO THE GREEN ENERGY PACKAGE, THE GREEN JOBS PACKAGE WHICH WAS REALLY FOR THREE YEARS A CENTER PIECE OF OBAMA'S ENERGY PACKAGE IT MAY BE GOOD POLICY BECAUSE WE MAY GET SOME INNOVATIVE TECHNOLOGIES, IT IS NOT A JOBS POLICY. THE JOBS ARE SIMPLY NOT BEING CREATED IN GREEN ENERGY.

>> Brown: WHAT ABOUT THE POTENTIAL SCANDAL. WHERE IS THAT BEING PUSHED AND WHERE MIGHT IF LEAD?

>> THE SCANDAL WOULD BE THAT IN PART BECAUSE THERE IS A BIG DEMOCRATIC DONOR SUPPORTING SILNDRA, IN PART BECAUSE IT SEEMS WITHIN THE GOVERNMENT, EVEN THE PROFESSIONAL BUREAUCRACY, SOME OF THE STEPS YOU TAKE TO GET THIS LOAN WERE BYPASSED AND THERE MAY HAVE BEEN PRESSURE FROM THE WHITE HOUSE TO GET PEOPLE TO BYPASS THESE STEPS.

>> AND THERE WAS CONCERN EXPRESSED AT THE OFFICE OF MANAGEMENT AND BUDGET ABOUT WHETHER IT MADE SENSE TO EXTEND OR RENEW OR WHATEVER IT WAS THIS LOAN AND HOW THAT WAS GOING TO LOOK. AND WHETHER TAXPAYER MONEY WAS GOING TO BE EVEN FURTHER PUT AT RISK. THAT IS JUST NOT, IT'S NOT JUST, NOT JUST BAD OPTICS, IT MAY BE BAD FACTS.

>> Brown: THIS IS THE KIND OF THING THAT LOOKS AS THOUGH PEOPLE ARE LOOKING INTO HARDER AND HARDER.

>> WELL, THERE'S AN INCENTIVE. YOU HAVE A-- THIS IS THE IMPACT OF A REPUBLICAN-CONTROLLED HOUSE. AND I'M NOT COMPLAINING ABOUT THAT. BECAUSE I'VE TALKED A LOT ABOUT THE IMPORTANCE OF CONGRESSIONAL OVERSIGHT AND WE'RE SEEING SOME CONGRESSIONAL OVERSIGHT HERE. IT'S NOT ALWAYS PLEASANT FOR THE PEOPLE BEING OVERSEEN.

>> Brown: ALL RIGHT, RUTH MARCUS AND DAVID BROOKS, THANKS A LOT.

>> THANKS.

>> Woodruff: FINALLY TONIGHT, A DIFFERENT TAKE ON HOW TO SOLVE TEACHER SHORTAGES IN INNER CITY SCHOOLS. IT COMES FROM OUR ECONOMIST FILM PROJECT SHOWCASING THE ART OF FILMMAKING. TONIGHT'S DOCUMENTARY IS CALLED "THE LEARNING." IT FOLLOWS FOUR FILIPINA WOMEN RECRUITED TO TEACH IN PUBLIC SCHOOLS IN EAST BALTIMORE. THE WOMEN HOPE TO EARN ENOUGH TO TRANSFORM THEIR FAMILIES' LIVES BACK IN THE PHILIPPINES. HOWEVER, THEIR DREAMS COLLIDE WITH BALTIMORE'S TOUGH REALITIES. FILMMAKER RAMONA DIAZ IS FILIPINO-AMERICAN AND LIVES IN BALTIMORE. SHE BEGAN THIS PROJECT IN 2006. THIS EXCERPT FOCUSES ON THE EXPERIENCE THAT YEAR OF ONE TEACHER, DOROTEA GODINEZ.

>> ONE OF THE THINGS WE'RE FINDING IN THE UNITED STATES IS THAT WE DON'T HAVE AN ABUNDANT SUPPLY OF MATH AND SCIENCE TEACHERS AND SPECIAL ED TEACHERS. AND WE'VE BEEN CONTEMPLATING COMING TO THE PHILIPPINES FOR ABOUT THREE OR FOUR YEARS, AND THEN, FINALLY, LAST YEAR IS THE FIRST TIME WE CAME. AND NOW WE'RE BACK AGAIN.

>> ♪ GOOD-BYE, MY TEACHER, GOOD- BYE. ♪ GOOD-BYE, MY TEACHER.

>> ♪ GOOD-BYE, MY FRIEND. ♪ ♪ ♪ WE'LL SEE EACH OTHER AGAIN.

>> WHY THE UNITED STATES?

>> I WOULD APPEAR HYPOCRITE IF I DID NOT TELL YOU THIS. IT'S FOR GREENER PASTURE BECAUSE, AS YOU KNOW, PHILIPPINES IS FINANCIALLY ILL, AND EMPLOYEES ARE RECEIVING SALARIES BELOW THE POVERTY LINE.

>> SO HOW MUCH MONEY ARE YOU GOING TO MAKE IN THE UNITED STATES-- TWICE AS MUCH?

>> MAYBE, TWICE AS MUCH.

>> TWICE AS MUCH? IS THAT ENOUGH?

>> YES.

>> ( translated ): WE DON'T WANT HER TO LEAVE, BUT LIFE HERE IS SO HARD, SHE HAS TO GO.

>> SO IT WOULD BE WORTH IT FOR YOU TO LEAVE THE COUNTRY YOU'VE LIVED YOUR WHOLE LIFE-- YOUR FAMILY, YOUR FRIENDS, YOUR SUPPORT GROUPS, EVERYTHING THAT YOU KNOW IN YOUR WHOLE LIFE, AND MOVE TO A DIFFERENT COUNTRY? YOU'RE READY TO DO THAT?

>> YES, MA'AM, IF IT IS POSSIBLE.

>> GOOD MORNING. COME HERE. DO YOU KNOW ME? I'M MRS. GODINEZ, YOUR SCIENCE TEACHER. WELCOME TO MY ROOM. SEAT NUMBER ONE. GOOD MORNING.

>> GOOD MORNING.

>> OKAY, I AM MRS. GODINEZ, YOUR SCIENCE TEACHER. YOU ARE IN GOOD HANDS. NOW, YOU MIGHT NOT LIKE ME BECAUSE I AM A FILIPINO... "NO, I DON'T LIKE A FILIPINO TEACHER." AND I MAY, I MAY NOT SAY ALSO THAT I DON'T LIKE - (INAUDIBLE) BECAUSE THEY ARE AMERICANS. NO, I WOULD NEVER DO THAT. I LIKE EVERYBODY. YOU MIGHT BE A FILIPINO, YOU MIGHT BE AN AMERICAN, YOU MIGHT BE A CHINESE. IT DOES NOT PUT... WHOEVER YOU ARE, WHATEVER YOU ARE, I AM HERE TO HELP YOU.

>> ITS NOT REALLY TOUGH AS FAR AS CONTENT IS CONCERNED, JUST ON DISCIPLINARY PORTION. YOU KNOW, BEFORE I GO TO CLASS, I NEED TO MAKE MY LESSON PLAN. I ALWAYS PICTURE IT OUT THAT IT SHOULD BE, LIKE, ENJOYABLE, THAT THEY SHOULD BE LEARNING. OKAY, THE DISTANCE FROM THAT POINT TO THERE IS 32 METERS. BUT SOMETIMES, I'M SO DEPRESSED, BECAUSE THE PICTURE OF MY CLASS WHICH IS IN MY MIND DOES NOT SHOW IN MY CLASS. MEASURE THE TIME IT TAKES YOU FROM THE STARTING POINT TO THE END POINT, THEN BACK. SO-- OH, MY GOD-- I HAVE PREPARED THIS LESSON. BUT THEN IT DOES NOT COME TRUE. DEMARCO, THIS IS NOT A DANCING HALL.

>> SOMETIMES, I SAID I CANNOT DO IT, BUT I AM TRYING. IT'S DEPRESSING. "OH, JUST GO ON, JUST GO ON, JUST GO ON ANYWAY. JUST GO ON, JUST GO ON, JUST GO ON." I ASK THEM, WHY DON'T YOU RESPECT, LIKE, A FILIPINO TEACHER LIKE ME? THEY SAY, "NO, WE RESPECT YOU, BUT THEY'RE JUST TAKING ADVANTAGE OF YOU BEING SOFT." I'M NOT THAT SOFT, YOU KNOW, BUT I CAN'T REALLY COPE UP WITH THE BEHAVIOR THAT YOU HAVE. I... THIS IS MY VERY FIRST EXPERIENCE IN TEACHING WHERE... IT'S... SORRY. SO FAR, THIS IS MY 24TH YEAR OF TEACHING, BUT I GUESS IT IS THE- - NOT REALLY THE HORRIBLE ONE, BUT, I GUESS, IT'S FULL OF... LIKE, FULL OF ADJUSTMENTS, FULL OF DISAPPOINTMENTS, FULL OF HURTS, FULL OF... FULL OF ILL FEELINGS.

>> DO YOU MISS YOUR FAMILY?

>> OH, SURE, I MISS THEM.

>> DO YOU CRY?

>> SOMETIMES. I'LL BE GOING HOME IN JUNE. WILL YOU MISS ME?

>> YEP.

>> ARE YOU SURE?

>> YEP. YOU'RE NOT COMING BACK.

>> I WILL

>> NO, YOU'RE NOT.

>> I WILL.

>> I WOULDN'T LEAVE MY FAMILY IF I WAS YOU. I'D STAY OVER THERE. DO YOU LIKE IT IN THE PHILIPPINES?

>> UH-HUH.

>> DO YOU LIKE IT OVER HERE BETTER?

>> THAT'S A VERY TOUGH QUESTION.

>> OH.

>> HOW DO YOU FEEL?

>> NERVOUS. ( CHUCKLES )

>> NERVOUS? WHY ARE YOU NERVOUS? DON'T BE NERVOUS.

>> ALL RIGHT.

>> SO TELL ME, WHAT WILL YOU DO DIFFERENTLY SO THAT YOU CAN MAINTAIN MORE ORDER IN YOUR CLASSROOM?

>> ONE FAULT THAT I HAVE, I ADMIT, IS... IF THIS IS... IF THESE ARE THE RULES THAT I SET, I STRETCH THE RULES, SOME OF THE RULES.

>> RIGHT.

>> ... JUST TO, YOU KNOW, SOMETIMES JUST TO PLEASE THEM.

>> RIGHT.

>> AND IT IS BECAUSE THERE IS FEAR IN MYSELF, BECAUSE I'M AFRAID IF I WILL BE SO TOUGH WITH THEM. THEY MIGHT BE... THEY MIGHT SUE ME OR THEY MIGHT CHARGE ME WITH SOMETHING WHICH I NEVER DO. SO I MIGHT JUST BE IN JAIL IN AMERICA, WHICH IS... WHICH IS... I DON'T EVER DREAM OF... OH, MY GOD, SO...

>> EVERY NEW TEACHER, NO MATTER WHERE THEY'RE COMING FROM, EVEN IF SOMEONE'S COME FROM BALTIMORE CITY, IT'S ALWAYS A CHALLENGING YEAR. YOUR OVERALL RATING CAME OUT TO A SATISFACTORY FOR YOUR FIRST YEAR HERE WITH US.

>> OKAY.

>> THE ONLY THING THAT PULLED YOU DOWN WAS CLASSROOM MANAGEMENT. WE'RE TRULY LUCKY TO HAVE YOU HERE, TO BE HONEST WITH YOU. IT'S BEEN A PLEASURE WORKING WITH YOU THIS FIRST YEAR, AND I LOOK FORWARD TO MANY MORE YEARS WORKING WITH YOU.

>> THANK YOU SO MUCH. I'M LOOKING FORWARD TO NEXT YEAR, THAT YOU'LL STILL BE THERE AND HERE FOR ME. ( CHUCKLES )

>> Woodruff: THE BALTIMORE PUBLIC SCHOOL SYSTEM NO LONGER RECRUITS TEACHERS FROM THE PHILIPPINES, BUT DOROTEA, AS WELL AS THE THREE OTHER FILIPINO TEACHERS FOLLOWED IN THE FILM, ARE STILL TEACHING THERE FIVE YEARS LATER YOU CAN WATCH THE ENTIRE DOCUMENTARY NEXT TUESDAY, SEPTEMBER 20, ON THE PBS PROGRAM "P.O.V." AND YOU CAN LEARN ABOUT THE ECONOMIST FILM PROJECT, OR SUBMIT YOUR OWN FILM, AT film.economist.com.

>> Brown: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: TREASURY SECRETARY TIMOTHY GEITHNER URGED EUROPEAN NATIONS TO TAKE IMMEDIATE ACTION TO FIX THE CONTINENT'S DEBT CRISIS. PALESTINIAN PRESIDENT MAHMOUD ABBAS CONFIRMED HE'LL GO TO THE U.N. SECURITY COUNCIL NEXT WEEK TO SEEK FULL MEMBERSHIP AT THE UNITED NATIONS FOR HIS PEOPLE. THE U.S. HAS THREATENED TO VETO SUCH A MOVE. AND ACTIVISTS IN SYRIA REPORTED AT LEAST 17 PEOPLE DIED AFTER SECURITY FORCES OPENED FIRE ON THOUSANDS OF ANTI-GOVERNMENT PROTESTERS ACROSS THE COUNTRY. AND TO HARI SREENIVASAN FOR WHAT'S ON THE NEWSHOUR ONLINE. HARI.

>> Sreenivasan: WE HOSTED A LIVE CHAT THIS AFTERNOON ON THE DOCUMENTARY, "THE LEARNING," WITH THE FILMMAKER AND ONE OF THE TEACHERS IN THE FILM, AMONG OTHERS. READ THAT Q&A ON THE "RUNDOWN" BLOG. THERE'S MORE FROM OUR TEAM IN EGYPT, INCLUDING EXPRESSIONS OF THE COUNTRY'S UPRISING AS SEEN THROUGH THE GRAFFITI DOTTING CAIRO'S TAHRIR SQUARE. PLUS ON "ART BEAT," JEFF TALKS TO AUTHOR TOM PIAZZA, WHOSE NEW ESSAY COLLECTION EXPLORES TOPICS FROM BOB DYLAN TO HURRICANE KATRINA ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JUDY.

>> Woodruff: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON MONDAY, WE'LL EXAMINE PRESIDENT OBAMA'S PLAN FOR CUTTING THE DEFICIT, RAISING SOME TAXES, AND MAKING CHANGES TO MEDICARE. I'M JUDY WOODRUFF.

>> Brown: AND I'M JEFFREY BROWN. "WASHINGTON WEEK" CAN BE SEEN LATER THIS EVENING ON MOST PBS STATIONS. WE'LL SEE YOU ONLINE, AND AGAIN HERE MONDAY EVENING. HAVE A NICE WEEKEND. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: ♪ ♪ ♪ ♪ ♪ ♪ MOVING OUR ECONOMY FOR 160 YEARS. BNSF, THE ENGINE THAT CONNECTS US. CHEVRON. WE MAY HAVE MORE IN COMMON THAN YOU THINK.

>> AND BY THE BILL AND MELINDA GATES FOUNDATION. DEDICATED TO THE IDEA THAT ALL PEOPLE DESERVE THE CHANCE TO LIVE A HEALTHY, PRODUCTIVE LIFE.

>> AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND...

>> THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org AMERICA." FUNDING FOR THIS PRESENTATION IS MADE POSSIBLE BY THE FREEMAN FOUNDATION OF NEW YORK, STOWE, VERMONT, AND HONOLULU. NEWMAN'S OWN FOUNDATION. AND UNION BANK.

>> UNION BANK HAS PUT ITS FINANCIAL STRENGTH TO WORK FOR A WIDE RANGE OF COMPANIES, FROM SMALL BUSINESSES TO MAJOR CORPORATIONS. WHAT CAN WE DO FOR YOU?

>> AND NOW, "BBC WORLD NEWS AMERICA."

>> YOU ARE WATCHING "BBC WORLD NEWS AMERICA." RAISING THE STAKES. THE PALESTINIANS CONFIRMED THEY WILL ASK THE UN FOR RECOGNITION AS A MEMBER STAY -- STATE NEXT WEEK. KATTY KAY SITS DOWN WITH THE U.S. AMBASSADOR.