>> translator: it is not easy to the chinese may be what friends are asking us to extend a helping hand. what should we do? should redo it or not it is not easy to the chinese may be what friends are asking us to extend a helping hand. what should we do? should redo it or not it is not easy to the chinese may be what friends are asking us to extend a helping hand. what should we do? should redo it or not it is not easy to the chinese may be what friends are asking us to extend a helping hand. what should we do? should redo it or not it. [speaking chinese] [speaking chinese] >> translator: well, the fact

is china had followed closely the sovereign debt crisis in some european countries. we had five cherry bombs from the relevant countries and we have held the european countries to advance the integration process. we believe these steps taken by china has been well received by the countries and the people in europe. in particular, the government and people of those countries concerned. [speaking chinese] [speaking chinese] >> translator: economic

globalization has brought the interest of countries closely entwined. under such circumstances, countries should stick together like passengers in the same boat rather than crowd each other out. countries should pursue mutual trust rather than harbor mutual suspicion. [speaking chinese] >> translator: in this way, we will be able to live with each other in harmony. china and e.u. are two major economies in the world and we are each at a crucial stage in

our respect to development. we should pursue cooperation through mutual help. i think this is a good thing for both things to do. so why not go ahead with it. [speaking chinese] [speaking chinese] >> translator: in wars, we will work with the e.u. to further deepen our comprehensive strategic partnership.

the two sides should work together to pursue a partnershio based on mutual respect, mutual) trust, deepening economic partnership, featuring win-win cooperation and build a cultural partnership on the basis of mutual learning and mutual commentary. sub 10 [speaking chinese] [speaking chinese] [speaking chinese] >> translator: this year is the year of change between china and the european union. we hope that by posting such

large-scale exchange activities, the two sides will further increase the friendship and mutual trust between people of the two sides so as to lay a more solid social foundation for the continued growth of the china e.u. comprehensive strategic partnership. [speaking chinese] [speaking chinese] [speaking chinese]

>> translator: i would like to ask a question about a regional issue. as we know that the six party tax has stalled or other two years come it seems that the parties concerned are not confident enough about the six party talks. we've seen that the dprk has expressed its willingness to come back to the negotiation table. however, the rok still insist that the inter-korean dialogue received the six party talks. so under such circumstances, wendy inc. six party talks can be resumed? how is it for receiving 18 nuclear waste through the six party talks? [speaking chinese] [speaking chinese]

[speaking chinese] >> translator: it is true that the six party talks have been at a standstill for over two years, doing which complex changes to raise the security situation in northeast asia. i believe this nurse the close

attention of all relevant parties. but i also believe that anyone who views the six party process from a comprehensive and object to his death will admit that the important progress has been made in the six party process. for example, we issued this september 19th joint statement, six party talks contributed to greater exchanges between the relevant parties and played an important role in maintaining regional stability. [speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] >> translator: in order to respond to the six party talks, the chinese have put forward a series of positive proposals and the international community has fully recognized this. i believe it is the hope that the international community to see an early presumption of the six party process and the parties concerned also quoted a pass its attitude towards early resumption of the six party talks. the challenge now is that we

need to have further consultation on how win-win attacks can be resumed and we still need to reach consensus on this point. [speaking chinese] [speaking chinese] >> translator: china has been

an active supporter of the bilateral contacts and dialogues between the relevant parties. we believe that such dialogue and contacts in the six party talks can be mutually reinforcing. at the same time, we cannot expect the issue can be resolved overnight. the six party talks as a diplomatic track is, where no established precedents can be followed. it is important that all parties involved work even harder. [speaking chinese]

[speaking chinese] >> translator: as an old chinese proverb reads, one cannot travel the five miles without taking a succession of sonic steps, like a notion cannot take shape without admitting numerous small streams.@w@w as long as we geth?h?h? the diae off to a start, we can find more and more common language and in the process of the talks, we can work together to explore solutions to various issues. [speaking chinese] [speaking chinese]

>> translator: we believe that it's important for all the parties to work even harder for the restart of the six party talks by taking advantage of the good momentum and present. we believe all the parties involved keep patient cannot bring forth their resolve and give full play to their wisdom and capabilities. we will be able to eventually achieve the goal of denuclearization of the korean peninsula and maintain long-standing peace and stability in northeast asia.

>> max, a former congressional politics in the federal budget. the national association for business economics are former virginia representative, tom davis and stuart rothenberg. this is 45 minutes. [inaudible conversations]

[inaudible conversations] >> the next session is coming out. i went to think that peterson foundation for their strong support to the educational initiative conference. in this session is sponsored by minister of financial, adolfo laurenti will moderate the session. >> thank you. first of all, she is not here. unfortunately, she had to be in california after the passing of her father-in-law. i am adolfo laurenti come to debut chief economist maslow financial and i have the privilege to continue the study of public finance situation with two terrific speakers that are

really the moderators say they need no introduction. but for the benefit of those who like me comes from distant lands, let me just say that tom has served for seven terms in congress, representing the 11th district of those alma mater george mason university. he was chairman of the government reform and oversight committee. seven accomplishments during the series and is now president of government affairs. our second speaker is stuart rothenberg colonists on the roll

call with seven years of expedients in monitoring the politics and policymaking in their national. his opinions have been published from mother nature media outlet. "the new york times," and is one of the most respected political interpreters of what's going on in washington d.c. with no further hesitation, before i proceed further, just a housekeeping note. again, the question we've been taking, so do not hesitate to send to ice. again, with no further hesitation, i will add tom doer introduction remarks. >> most important part of my resume as they left congress undefeated and unindicted.

i was also chairman of the house republican campaign committee for two cycles, sweeping political perspectives today. i'm going to start running over the news that dark, dark debut in the budget. the first charge your talks about how federal government growth has grown. if you look at the chair for 2010, 24% of gdp is now federal government. if you had state and federal governments into the 30% of gdp is government. if you look at current projections come up with state on the current line for 2040, 39% of the gdp will be the federal government alone. if you had state and local up almost 50%. that's the direction we're going. doug had a chart similar to this, but i like this pie chart because it just shows how over the last 30 years the spending priorities of government have shifted. over 60% of spending in the

1950s is now 20% and that's with two wars going on. are really the money is shifted over to the entitlement programs, medicare and medicaid and social security. social security this year for the first time instead of generating surpluses will be $50 billion out of the budget. another way to look at the federal debt burden is i like this chart because it has not just data by the public, but it has withered that the government owes to the social security trust fund and the like that is payable as do. as he take a look at that, and% of gdp is higher than the announced features they give for debt held by the public. future debt burdens does the cbo number. again, the current course is unsustainable. i think there's one point all of us went to make today, it's major changes are coming. how they occur, when they occur and what political context is the unknown. we're going to talk about some of the political ramifications

of the current pressures in bringing about those changes. the u.s. government debt is the dominant issue of our time. another less campaign is all about the economy come up with the growth of the tea party and other groups, see a new focus on the debt and being recalibrated by the 30s. again communis deadly to a percent of gdp by 2020 under the current way we are going. they'll be trying a percent of gdp by 2030 unless major changes are made. states we don't talk about this. there is a brief chart i think that doug showed you. at the same time, we have the states, many big trouble right now. illinois, california and some others coming to give some debt issues as well. one of the things the federal government has done his face financial pressures as they have passed mandates that the states, unfunded mandates. the health care bill. i know in the state of virginia, another billion to $2 billion

the year for filling mandates sent down by the federal government, putting added pressure's on the states along with their pensions and other items they are trying to cope with. it has been manifested in some ways and cut in education and other areas aired those states rights are under tremendous budget pressures, not just in the economic growth or lack of economic growth, but just this very structural pressures, some brought on by washington. compared to burdens. i've got one that i think illustrates us along with greece and classify it though. if you do to portugal, ireland, spain, other countries, we are not much different except the united states reputation has been stronger. if you look at it by the numbers, the same but is projected to get even worse. this is a bipartisan problem, it either way. they no longer a member of congress. i don't have to go into talking point. this illustrates what happens

with the public and and democratic congresses and what happens to federal debt. and it doesn't seem to make much difference. the best illustration of this is there is a bill, cooper will soon house the last time is going to set up the federal trade commission. they lost in the senate, lost in the house because members to cosponsor the bill decided they were going to vote for it after pressure from typescript santos to be scored as a pro-tax code that would be hurting their voting records. interest groups as we'll talk about make you strong roles and put in a lot of a lot of discipline nonmembers in terms that some of the options they are able to consider. i love this. in december 2010, numbers for president and congress up for now. we had a bipartisan coup by a coming together with bipartisan cooperation. the extension of the bush tax cuts in state tax adjustments, tax standards, unemployment insurance and everything else,

another $830 billion added to the dataset. as the easy way to get bipartisan cooperation. the tests have been yet to come. in the current political climate, right now basically for the last i was a dozen years, you had a political establishment with no good news to american voters. going back to 9/11, you can go back to two wars that have not gone according to plan. we can debate about their efficacy. he went to katrina, an economic meltdown. physically the political establishment is given no good news. you have seen basically a rope at the grassroots. 2006, voters by republican congress inflicted to the democratic side after 12 years of republican domination. in 2008 they went further and would not give -- five republicans and the white house and gave democrats complete control with the 22nd they came. another nationalized election. we went through 12 years of

localized elections, were all politics are local. that has not been true the last three cycles. this last time after fire and republicans, they rehired in the house. 63 seat gain in the house at the largest gain since 1938. voters are angry. republicans didn't take the senate because if you take a look at the number of seats, it just was not there for them. it's a combination not taken the right seek to seek to command the dysfunctional candidate and dysfunctional campaigns along the line, but they made major strides as well. and the disappointing factors on the parties right now are as follows: the parties are now ideologically resorted. this is a first. he used to with heavy solid start for liberals admit democratic primaries in the northeast to have the same thing. today parties are pretty ideologically sorted. a recent survey by national journal shows the most conservative democrat in the senate is more liberal than the

most liberal republican. this is the first time in over a generation that's going to be that way in the house this time. most of the blue dog democrats were wiped out as the election became nationalized. their local voting records that became relevant but were caught up with the party. their local voting records that became relevant but were caught up with the party. you now have a very, very liberal democratic party in the house of representatives and a very conservative republican base in the house, where you're most liberal republicans are more conserved than your most conservative democrats. the point and not is that a lot of the issues that were always there in congress and the debates are not partisan in nature. secondly, this last election was the last election -- the first election where you have more money spent by nature's group sent by the parties. campaign finance reform, citizens united caved -- the campaign finance reform took money away from the parties.

it restricted how political parties and candidates could raise money. it didn't touch the interest groups. part of that is because the case of ugly versus belay another free-speech cases. in checking the ability of parties and candidates to get money, the money didn't disappear from process here they went to the wings. so it's fair for growth in its there for move on.org and there for the tea party express. and we have seen under the citizens united case large chunks of money coming in that disney would have to be disclosed. and so, the effect on members of the take a look what happened to lisa murkowski and robert bennett and mike castle on the republican side just to serve it is your first name. you don't want to antagonize these groups or you may not keep your seat that. democrats have a similar problem, but it was more pronounced than the republican side this last time. at the very discipline you factor in terms of the ability to tackle these issues and take to vote at this point.

third, called the new media with the growth of the internet now with the blogs. you have msnbc and fox. if you ever watched on the same net effect to different planet. they are also have a major influence on voter opinions and nonpolitical opinions. for republican members etr fox gave to democrats, msnbc talking to your base. and finally, i had read about more to talk about with republican gains this last time are not a result of people turning back to republicans. this was just the voters trying to put some balance back in the government. so it balanced government, divided government. this is the norm. almost two thirds of the time over the last 60 years shows we've had divided government. you can bring gridlock, impeachments, government shutdowns. under bill clinton also brought four years depending on how the party was. right now it's much different than its 94. 1994 was elected to congress by

voters wanted to protect themselves from both clinton and elected me. two years later they elected clinton to protect them from me. it's one of the things that they don't trust either party at this point. they're kind of dancing. you have a totally dissatisfied electorate, but you have interest groups and outside media influences that are far stronger than they were in 1994. >> thanks, tom. after all that, he has covered the entire landscape, i should just take questions. no, i have to say something. pleasure to be here. so you are already figured out here we are doing the politics, which means we're not talking about what should happen, what you'd like to have been, when he stood up in. we don't deal well with could possibly have been. given what we do and what goes on to capitol hill, what could