and when congress set want to take a one year they met not a plutonium year. so, let's try to get that out. i have three little kids, so the oldest of 12. my daughter is ten and they don't understand the difference between the broadcasting and the internet service on a mobile device. islamic should there be a regulatory distinction? >> i don't think so. i think we need to forget about the stovepipes and see if it is over cable there's one set of regulations and is over the air in one way a different set of rules. we need to look at competition and concentrations of market power and i think in a new

statutory construct based on that. >> robert mcdowell the republican and the federal communications commission, one of the five commissioners. our guest reporter on the two indicators has been a jonathan make, assistant managing editor of communications daily. thank you. >> thank you. >> the head of the commodity futures trading commission said jpmorgan chase recent trading losses were a reminder why the directives rules need to include international trade. a discussion on jobs, trade and

competition with asia we will hear from mark anderson ceo of the strategic news service. from seattle washington, this is an hour. >> we know you could have been anywhere else tonight but you chose to be here and i think that says an extraordinary amount about you the huge was to be here with us purify and ceo of gen next. i ron nationwide and came here and i'm particularly excited about this program. for those of you haven't given much context on gen next to begin with but we essentially try to find very successful people who are particularly forward thinking. they want to do better and be better and we try to give them the tools and information access, knowledge, the network to be consequential on issues we believe are related to the generational opportunity criminally economic education and global. many of you year are members but for those that are not that is

what we've tried to do. tonight is part of that process exposing the members and guests to people that move ideas and advance them and shape the the date occurs the board. mark anderson is the ceo of strategic news service which was the actual first online newsletter on the internet with subscription based newsletter on the internet and he did, bill gates reads it, michael reads it come any major fault leader but his very sort of prominent in this space prediction comes a 95% of the time since 1995 all of his predictions have come true. one is he predicted the liquidity collapse before anybody else. he predicted steve jobs was going to return to apple before steve jobs knew he was going to return to apple. also he runs a conference that

on technology the technology conference in the world and "fortune magazine" has named him one of the, quote, smartest people we know. on cnbc you will read him in "the wall street journal" and "the new york times" and "los angeles times" every sense of the word he said please put on their thinking caps because we will get to the point there will be q&a. with that, mark anderson. [applause] nice to be here. thank you for having me. i think my orders are this evening we will do ten to 15 minutes of me talking away and

you and then we will talk together for the next 45 minutes or so. we will start taking questions and complaints and all the things i said wrong in the short period of time and we will cover that right away. i want to talk to you tonight about something which will seem have obvious to you in the other nations, too and the inventing nations and what they should do today and which they have no choice but to do if they are going to succeed it sounds very dramatic. i feel that is well placed and i want to give you a little background about this. i spent a lot of times in the predictions of technology in the market in order to be good at that you have to look around the world of lots of things. in the countries in the pacific asia rim and try to figure out how they ran their business

model not what was in the newspaper but the truth of the matter which is quite different by the way. so beginning with japan and with that story is about still and then self korea picking up all these tools that very intense of exporter derision the whole purpose of which is to be asymmetrical so this first step is hard for americans to get. we talk about free trade, balanced trade and win-win situations. you have to put on a different thinking cap because that is in the point of view. it is a winning and losing situation. that is the whole idea of the unbalanced import and export numbers. if you were going to be successful, the whole idea of the business model is how can i be unfair, how can i do things where my partner gets hurt? that means i have a lot of

export and no import. this story has been going on for a long time and it's kind of sad to say some of you are too young to remember this there was a time not so long ago japan was reaching in the exercise of this model and the bush folks on the united states we worried real power then, and we lost about five industries that were major industries overnight because they were so efficient there's a source of the match for the business model, the u.k. business model there are things we do that make us very japan was able to agree quickly not only compete well but destroy the american presence in the

industries of steel, television sets, i think that we invented it, and the consumer electronics that are around there are other things, too. we lost all those companies in the matter of a few years. and finally, intel came along and japan continues to the business model in a much more nuanced way than before and this began a long streak of stories. if you watch salles triet today they are doing exactly what japan did to america today you were voting for tvs don't vote for japan vote for south korea and if you are voting the same story we watch japan last week and there will be other things,

flat screens, so clearly samsung this taken to looks at the japanese model for this and they are even better than the japanese. still these are relatively small countries than china, and china has not only a top-down government, but the ability to be big and so every time we hear a big number and quantity matters. we are able to tolerate as an inventing nation the experience to resell it to us into our market and destroy the industries in those markets and still survive we are here today we survived it we're looking at a quantity situation which is so large and focused i don't just

mean we america i mean the number of nations which is inventing and is now in peril. the global economy which is based on an essentially today technology and inventing things. we have level of sefton occurring right now ramping up to that is so intense and so focused and so clearly planned richard clarke last week said that probably every american corporation which is interest that same information went out written in 2007 to the top 300 ceos come so in my opinion the first chapter is already over. all of those have already been taken it's a matter of the design or pharmacy recipe.

we are not the state we ask ourselves with a very cold mind the answer is no it can't. with the level of effort we are looking at, with the level on the invention of today it's not actually likely to be civil to enjoy the economic fruits of those inventions in the way the we did before and that's already happened. i believe we can look at various markets to today and i will mention one. anybody that knows there are more coming from motorola back, so this is a very effective sang in the chosen company from china

your bid is 40% below. we are seeing this with 3,000 employees in every place you look you might think it is strategic or scientifically so what are we going to do about it? complain? i tell you what won't work, winding. threats won't work. saying you are upset won't work either. although you can be affected they are not for a couple of reasons. another reason you can't bring

it up the of so many entrenchments it takes years to get one done, so these guys are full year of the employees and find china guilty of jumping i think it was 1.5% penalty. so the wto could and as far as i could tell. this means as a country not just this country but australia and britain and germany and france, anybody in the in vending business has to rethink it. the way we did business before we got a little bit more of the gentlemen's game that isn't what works now. you invent on monday and i will steal on monday. good luck. made the best man win. so, how do we deal with that? there are two steps. one is often discussed. we've always been and inventing

nation. that's america. that's what we do. we've always been and inventing a nation and we need to start seeing ourselves. we don't say every morning i come from and inventing nation but we do. the economic history of america that is what we have to get back to. i'm from and inventing nation we have it in us but we don't see ourselves that way so i think step one is we have to imagine ourselves with that role model in mind and understand who we really are we are not britney spears, we are not celebrities, we are not drug addicts, we are not fast car drivers and we are not jerks. we are pretty smart and work

hard. we are working 90 hour weeks. we've lost that one understanding of who we are. we have to work smart. no offense to anyone here at mcdonald's but it did fans as the whole nation and if we do that great things will happen. many people that touches your own personal agenda in the kit will education, higher education, make a list of things concerned about and investment rules and regulations, all those things appeal but all of the original onion. so the positive story is if we do this it is possible to recreate the economic leader that we have enjoyed it for the first time.

we've been stagnant for 1979 from all these different figures probably all true but what you are really seeing and this is the part i hope i get through to you tonight, this we just had about economics, this is a bigger story of what happens to and inventing nation one of their property goes to other countries. that's why the jobs aren't going to come back the minute real-estate of values go up. that's why there is no old normal the lbj new normal and it's not the way you wanted. if you want a different one from you have to have high value and intellectual property not being stolen wednesday after which leads to part two and then i'm done. if you want to invest in

something as beautiful as it might be if you give it away or expose it or lose track of it or is it is stolen from you the day after it won't do good weather you are microsoft or making airplanes bad things are in your future and the investment for those will be in the fall and i will say again i believe it is not in the future that this will happen, this is happening right now. the return on assets we may have enjoyed 20 or three years ago we are not enjoying today and that's why and it doesn't matter what you make. there's a list in china right now that used to be 115, now 407 different economic segments of interest. you are and that whatever you do on less i don't know what you have to do to be on that list but it includes everything in the phone book i can think of, as we've got to be aware this is

the primary risk facing if you are in national leader the risk isn't to recreate jobs out of building bridges that's not the answer. the answer is to recreate jobs on the building ideas for creating high value, high margin intellectual property you combine for your shareholders and employees and the towns you live and double the one for a while for the invention you won't be competing with your own talent. how do you protect it? a lot of people feel like it's impossible. it's not impossible what all. what's hard is to get the ceos

focused on an educational problem once you convince them they have to act the way the military acts because guess what those being assigned as target's our military teams and that's why when i said earlier is true is the normal corporations like it takes them very little effort to get stuff. it doesn't matter who you are. when you saw rsa, one of our top defense and commercial securities firms had their masterpiece listed almost effortlessly by china is going to be the wake-up call for all of us. it's not as the you spend money and solve the problems. they took the path which google is brave enough by the way to stand up and talk about it and the huge points for this and it

is standing up and talking about it it's like everything else in life is to keep it a private dirty little secret no one can get together groups and solve problems, so we need to make sure that people have the nerve to stand up and talk. if they are beginning to force that. i think the lawyers suggested that is what the ceo should do. we have to be talking to the to opening up describe the problem clearly and then get out of it. there are technical ways you can turn to your ceo and say solve this and there are ways to identify and give them a very high value internally committed under a server and unplug the server which is exactly what the

department does. it worked great. pull the plug, restrict the number of people that have access about once a year. pay attention to what car they drive. so there are simple things to do and the expensive stuff comes in and takes years but they're very effective. i think those things if america really wants to watch again we could be high energy, high success, but it's not because they're going to pass a new bridge project it will be because we took this to heart inventing and learn to protect the stuff we make. that's ten to 15 minutes and i think now we should open up to you for conversation and get your own ideas.

[applause] >> you mentioned china and in the spirit of tonight's program i have a watch that was given to me by a member and its determine just waving at me and it's a reminder you only have so much time, but also you've got to compete and there are people that want to compete with you with a former chairman and ceo of intel and the one might readily remember you don't win unless you choose to compete so what i'm hearing is you've never chosen to compete we run a conference call future and renew. imagine the future and review it. what was the action plan together? >> if people become aware -- we are trying to get stories and

you probably saw the front cover this week writing we did that. so, we walked up about 12, 14 months ago on television and it took awhile to get in print. but we want to have other people understand the problem. that is a step number one. number two, we would like to have leaders stand up like to google, stand up, get it and here is what we are going to do about it and become role models for of the deals because the need to have an idea that this is real. i will give you an example. our job is or why the wake of the blueprint away for nothing to hu jintao for the privilege of bidding on chinese aircraft coming gave it away. it was the only thing holding china back from competing. he gave it away. the day that he was made the job bizarre on the steps of the white house that the idea.

i think what would be a good example pretty cool and i think he would be the perfect guy to do this but to stand up and say i did it, understand, i'm not when to put this at risk anymore i recognize we are a technology driven company in every decision that we've got and we are going to protect that technology and get the highest we can for our shareholders it is a whole new idea he would be great guy to do that and i think a lot of other people would get the message. >> i am an entrepreneur and a seems like the tone has changed. even as a kid, now we've got occupy wall street attacking people, our president who saw their kind of boeing unfair if you make a lot of money, going

after folks, so how do you change the stone in society where the entrepreneurs have to come that guys? >> the money, there's a lot of money class conversation i don't think the entrepreneur is got to that. >> have you seen the movie the last ten years business was portrayed positively? >> i'm talking about entrepreneurs. i don't think they are bad guys right now but wall street rightfully got enough. nobody's gone to jail yet. so i think there's a lot of anger over wall street and the city. but in the public view that is a big fuzzy smooth -- people don't keep track. the busy they don't have time to recognize the difference between someone on wall street that sought 600 billion in derivatives knowing they were

cracked and somebody starting a new -- if you are rich -- the political pundits or strategists make the case from this. both sides i think. so you are fighting a machine out there doing the wrong thing for the wrong reasons. i see we need to have a cultural change. people like you, yourself and enjoy people around you will see that and say he's pretty cool, how did that happen? cuts will we want. i got to have to go to washington to make that happen. islamic the futures got to be better. [laughter] >> thanks for coming down to talk to us tonight. a great ideas. you didn't say this but some could incur a government action is necessary based on your description of the problems and a smart intelligent beautiful

woman my wife said when you combine the government and cronyism and capitalism, you get crapitalism. we see that happening right now come into the furious that favored industries because the threat of competition and our need to get urgent about a entrepreneurism will result in bob immelt comes and we continue to fund things without money we don't have. we're greasing the skids. >> i want to say something, solyndra. you are seeing the american solar industry gutted by a fish and it's not because they are stupid and it's not because the technology didn't work it's

because right in the middle of the plan somebody bumped 10 trillion tons of silicon into the market at half price and destroyed their business plan. you can say that's life but it's not, it is a plan that china had to make sure they didn't succeed, and it worked. don't blame solyndra, blamed china. be smart. we are seeing carnage in a lot of places, and look larger, looked around. in terms of the government part of this i'm not trying with any particular program, the only part of this that i see the government playing is i believe there is a role in trade governments make trade deals and my hope is that we've created a group for this purpose i hope is that one of the results some of

which i won't talk about the governments of america and australia and canada and the u.k. and europe it together and agreed inventing nations will have as their top priority for other nations that guess what, protect i.t.. >> i encourage you to have questions and i might call on you to start thinking of one. go ahead. stomach that lends itself to a couple questions i have two parts for. first one is what can we do because i found it like my partner behind me mentioning you're talking about government intervention from trade or something of that nature in the industry but it seems of an exclusionary path you are talking about from the standpoint of dealing of business with like. >> on the national skill. >> so i understand that a little

bit. on the flip side, you also mentioned the fact that unplugging the server, keeping -- ravee ip so if you could talk to the idea how real is the danger of reverse engineering or being able to take a finalist product and actually were kickbacks but even unplugging the server wouldn't really mean anything. ..

part behalf we've trying to can is get people start thinking about the economy and not terms of balance sheets or dollars. but in terms of the property. and that terms of the value that is carried today which is always too small on the balance sheets of corporation. rather than like tax guy tell me to do with the asset, mark it down to zero. rather, ask yourself what is the competitive strategic value of the asset on the jetblue print on the international market to the people who want to compete we me on my own business.

the value of that blueprint, it'll probably be, million dollars, some number like that. the value to the guys who got it was probably about $10 billion. to be in the market for ten years, rather than sit it out, rite. that's a worth a lot of money. as an example and answer your question further. my understanding from the group, which is the probably the world's best consult sei -- india spent many years trying to reengineer it. it's not always that easy. if jeff wouldn't give the stuff away, maybe it would be harder. >> thank you so much. that was awesome. i guess, what caught me was the idea about refinding that energy of being in the nation. it it made me think of the country vale where israel where they have more start-ups per person than any country.

from an pr or advertising perspective, how do you recapture that of energy where individuals are encouragerred and almost naturally find their way toward invents and year. >> i'll say something funny to you, i think they are already doing it. you know, there are more start-ups every year, it seems like, the guy ares a little behind. lots of good money comes from california or boston. in seattle for a minute, we started with the boeing thing. pretty soon it's wire whres, mobile, games you add all the different segments. we're doing good. that's where google coming up or anyone else. we're a pretty good answer to what do you do, i think. i wouldn't say we're doing to the wrong thing, how do you accelerate what's working

already. is working hard on this, terrorist a lot of folks who trying to find new ways of starting up. and that increases the number of start-ups we find. we have a lot of dna from the macau days. a lot of guys in wireless starting mobile companies. it's cool. i think there are parts here, you look at the silicon valley, the rest of seattle and say what do we do here that made that happen and how do we name go fast ensure the only idea i have is -- i love the idea of starting companies really easy. you know, it's pretty easy now. but i'd like it to be easier. i'd love to see a program here or anyone where you have two-page piece of paper, and you walk out in and your fill it out yourself. you say this is my company, i have two years. and i'll give you the other 400 pages. right now i want to see if it works. you can cut through the red tape

and create a beautiful yiewrpship program. it wouldn't be that hard. >> you mentioned sort of a relationship here with china where the playing field isn't level. and in part because of yo have a wto that is broke. now part because -- >> china has signed all the parts -- >> absolutely. i completely agree with you. one of the things you didn't mention was around the current manipulation. if you look at the -- so i'd love to get your thoughts around that. >> the guy to ask. >> do you think the government is doing enough? what's the solution here? >> so one of my little -- when you're a pauper like me. you have try to find the claims to fame and market them to people. one what -- i've been following japan dollar story for twenty years, i guess,

as china got involved with the whole deal, it became more and more interested as i learned it was a story. i didn't see china that way at first. i thought they were a communist country. so i realized it was a america tilist model. it is a great pr word. it sounds like you struck a nail on a board and went away forever. here's what the peg is, constant intervention messing with a not-free market to make sure that your side wins. on a daily basis. that's what the peg is. so, you know, if i'm any country, and i decide, you know, there a two ways for my guys to get rich at home. either we can work really hard and do this stuff, and get debt more. or i have another idea. i'll do what china or japan did or south korea did, i'll mess with the currency market because

that's easy. doesn't take much money. and i get a 15-20% lift. brazil is lucky enough to be experiencing with china what we experienced earlier. it's fascinated. and australia. every time there's a partner dance with china and watch the unfortunate dance partner. the first sign is the currency gets slammed. the currency went up 34% in one year. the bril brazilian did. that makes things at expensive at home. we have thing out of control. every the president, every prime minister knows this. it's clear that china is not going to be fairly, how do you a play? japan -- ask japan to stop intervened in the marketses. they'll laugh at you. it's part of their model. it's what they're doing going to do. they want to favor export companies. they're going to keep doing. you're from peru? are you going do it? you're better.

if you're not, you're an idiot. everyone is playing the game except. you you're in the situation today where we have taken the wrong paths for the wrong rations to get ahead on nation-v nation competition. the and result is a completely out of wack currency system. the serious breadth of the conversation again. where take people take the pledge and say no. everyone has to stop. we'll find a new basket, we'll see what it is, no more intervention. we find your -- we find you're intervene in the markets we will gang up on you at once. you're not going to enjoy. we need that kind of situation. we don't have that right now. it's out of control. >> i'd like you to address what i think is the greatest asset we right now for the future of the united states which is

creativity. >> okay. >> in general. i mean, how much of a commodity do you think it is and what can we do to leverage it. >> great question. hard question. by the way, there's a book i haven't read yet which i think is very good. it's been the on the huffing ton this week. it's called "imagine" it's about creativity. i have seen and heard the guy. i think this guy knows what he's talking about. i think he's on to a deep understanding of create. creativity. i'm a science guy. and so you -- we're scientific method when we're kids, we're all talk about it. it's simple. i'll explain it to you now. you have an idea and test it and take the results and you compare it 0 what you thought and you go again. wow, how simple can it be? we teach this to the kids in science. this is like the answer to what we're supposed do.

they fever forget one thing. why did the idea come from? it's the most important part. no one teaches where the idea came from. i've never seen one class. ion teen, -- where the idea come from? when he was 16 he asked himself the speed of light if i were running along next it and i look left what would i see? he was 16. where did he get that question. what makes the kid ask a question like that? that's what you're asking me. i think we need to focus on -- there are some answers. there are thing we can do to lead to more craftivity. the one thing we know, one thing we know is if you sit andstair at the problem and have more and more coffee. that will not do it. if you do it for ten or twenty hours.

it just gets worse. and the time when you have the moments is when you step aside and you go for a walk, or there are lots of famous stories who had the aha moments. the great thing in the mind. people had the ideas offline. so we need to include the idea of goingoff line in the thinking as part of the creativity process. if we learn how to teach that. it won't be a teachable moment. yeah? >> you talked about the united states trade countries that protect ip. i guess, two-part country, one, the risk trading with countries and not to another value of again x. do you risk not spreading democracy to places like eastern europe, russia, china, other places where we want to spread

our eye -- ideals and values by shutting down the trade with countries that don't protect ip >> didn't mean to imply shutting down. what i've been saying to people is present issue. i'd like the idea that there is a preference. that i think it's going to take that to get china to pay attention. i think the only thing that will get china to pay attention. but there is a myth, and i'll say this clearly. people have been laboring under a bunch of myths about china. not about eastern europe, they're all wrong. i don't know if they've been planted intentionally by china or someone who has tried to help china or the pr agency. they are the literally the opposite of what's happening. i give you a few examples. human rights are getting better because we're trading with china. no. human rights are much worse

today than they were ten years ago. that's interesting. how about there are more private companies now than there were before when the communism began. sorry, about two years ago, the soe thing reversed and there are more state-owned surprises today that -- let's say that china the tells u.s. they're turning way from exports to domestic consumption. we can stop worrying about it. if you look at the numbers in gdp is declining. there's less consumption in china today than there was last year. okay. get my point? these guys aren't about to give the. whatever you think you are achieving you aren't. that's a myth. it's a mean. we wish. that were true. it isn't true. so if it's not true, what do you do? do you keep doing? as i said that's the definition of insanity.

you do something different. >> i had a question, but i want to ask you a question about what you said. you said that you're not saying to stop trading with these countries. you want to give them preference issue treatment. how do you define it? >> i haven't. you can help me. >> that's how you get in the trade war thing. if you start putting -- we know that doesn't work. >> well, what you don't realize is you're in one. and you don't know it. >> no. >> let me put it clearly. america has been bled to dmet a trade war we don't recognize we're not allowed to talk about it. and all the tools that i'm describing are unfaired, unbalanced not fair trade rules. they're playing buy. >> i agree with you. >> the effects of that almost to almost destroy our economy. so we're in. you know what's funny?

the military guys do their job. they're worries about sirer cyber attack bring down the grid. hat the pacific fleet in the tracks. they could do. they have a lot to worry about. all the stuff with the job until now has been protect the nation through the military ways. military teaks. well, you know, how they say don't fight the next war like the last war? that's what we're doing. the chinese don't want to have a military fight? they have no interest in that. my favorite metaphor. there's a patient on the substantial, there's a line in the patient's vein. the blood is going out as fast as possible. the last thing the vampire wants do is upset the patient. they don't. they're making too much money. why not just wait until we have so little left we can barely get it off the table and afford -- we're going to be done unless we get the first part fixed.

not the military. if we don't get the economic stuff working and there a lot of smart guys in the pentagon who don't get this. there are more guys in the d.o.t. that understand what i'm saying than in the commercial world. they consider the economy to be the number one security issue. there was a statement made last year saying that is at number one concern. the elevated it to number one. they get it. but a lot of people don't get it it. we are in a trade war. don't be afraid to say it. say it and say how do we get out of it? we 0 don't like trade wars. what do we do to make thins normal again? that would be great. >> the question i was going ask, sorry. if you'll let me do that. my issue is improving education because i think that's how you get entrepreneurialship and craftivity and invention. i think we're failing in the

education system but particularly our k12. what's your take on that? and how do you improve that for the future? >> i can solve that problem in four minutes. i have an advantage i spent with six years with a thing called project i think cat. we took microsoft and looked at the problem from a technical perspective. we worked with kids and intiewrp tents. but i know what the answer is. ignore everybody and what they say to you and to do the following two or three things. number one, provide broadband in every school. number two, provide some indicate of an appropriate device that can link up to the internet. number three, provide access for the students at home no matter what the parents make in terms of money. do a means of test. every kid can do his or her

homework. number four, provide professional development for the teachers ahead of time before you do it for the tree months before they have the own laptop and whatever it is and they're properly trained. there are no exceptions. nobody gets out of this. if you're going to be a teach for the new school. so you to take the professional development. and then, number five or six whatever it is. provide supported at the school. when the teachers need curriculum advice. they need to know how to get going they have someone to turn to. they have someone to turn to. that's all there is to it. i'm done. i'll suggest that that isn't even very expensive which is the usual objection. when we started it people objected the idea of technology. we want to do that, we know it's the future. it's excessive. no, it's not. today you can get a laptop for $250. you can get broadband fur not much money. and in fact, intel lookedded at this from a business model spet,

and i think, i was saying it earlier hopefully the future governor. had he's a tech guy. i think what's going happen is there's a business model where the school becomes the broad band distributer, kind of an isp. and making some money doing that and ensures the kids in the school district are provided. it can be a public, private partnership. which i've seen work well in san diego. so you get all the good things out of this. and set up 19 levels administrative courses. you have the student and teacher connected to the world of knowledge districtly and that's the revolution in k12 you have to have. it's no way around it. it's going to be the future. it you wait thirty years. it'll be thirty years of misery. it's the only way out. >> do you have a question? >> brian? >> quick questions and quicker answers so we be -- >> cieived along the lines creativity and developing

talent. one of our strengths is we're an immigration. we have world talent. as the world evolves and like really aizes and economies become strong aeroand other regions. do you anticipate having any effect in terms of us being to be attract creative talent into the country. >> you bet. happens now. do you know how many students come into the united states from the university from all the countries we're talking about? in australia, i was there working with the government ip and other things. and there are a number of two or three revenue lines is students from china coming to central ya universities. there's somewhere around 140,000. i think we do. i think we put your head down and do the job and work. be creative, create high margin things. people come from all other the wonder to learn how to do it.

>> the misfortune of sitting next to me on the flight dc. you melted under the pressure. you have the camera on the headlights. you can't melt. respond to thes to observation that walmart is the greatest antipoverty. the contributing factor is the peg that we have the low cost of goods we're able to serve all kinds of people with -- >> consumer goods. >> i disagree with everything you said. let me try to -- [laughter] let me say it in a way which is reasonable. i used to think the same thing. i used to think walmart is great for poor people. then i saw what walmart did to american businesses. so, you know, here's the story, you take -- you're making a sleeping bag. you go to walmart, and they say it's made in north carolina. they said i'd like to sell it. it's very good. you're charging us 19.95.

it's got to be $9.95. i can't do that. the family has to eat. i can't do that. they're going to take it to china. they're happy to do that. it depends on the business. tvs are different than sleeping bags. walmart becoming and agent of the pla. it becomes an agent of the chinese government. walk down the aisle and check how many things are made in china in walmart. how many? >> 85% of it. >> while that's happening the people who would have made the things who had real jobs in the middle class here are on the street. >> are they or asking biotechnology. >> no. ipse the guys who used to take furniture in north carolina they're not selling chairs through walmart. so there are people who have been retrained but not enough of them. and i don't know what the numbers are. let's guess maybe 30% get retrained in a good jobs. the rest are getting --

they're getting jobs for $7 an hour. they used to get $20. i'm not against competition. here's an interesting problem. you look at the question of free trade. and you know there a people who would, you know, kill to get $1 a day. god bless them. i hope that they get it. you're the president of this country, you say to yourself politically i'm

there have been a lot of wars. a lot of wars caused by trade problems or lack of resources. what's normal? that's ugly. but if you are in the mind that you'd like to have a somewhat sustainable project, then you've got plan for it. you can't -- it's not going to happen ad hoc. someone will eat your breakfast. >> exactly right. exactly right. so i'm not saying there won't be more theft or the exe -- if you lose every time been that's not too good. >> okay. >> so you're describing a situation where there is a slow-bleed, you know, where once you finally realize you're about to die you're pretty much dead. what do you expect --

weathers there's a fast bleed. >> yeah. >> okay. what is your predicts -- what in your predicts is going to be the end moment or the catastrophic moment or something where the broad public or the political environment is going to realize that something is going to happen. something has to happen. that's going to make a dime shift. >> yeah. you know, let me put this in an interesting way. i spent a lot of time on boats. and in other dangerous situations. and i whrerned something about life-threatening crisis. whey lender was the earlier -- when i recognized the earlier you recognize you're in one, the more likely you're going get out alive. people don't want to talk about it or don't want to recognize the boat has a whole in the bottom of it. the boats are going to sink while they're on.

i'm going suggest to you we're in that moment right now. we are experiencing, if you look at the economic carjack age right now -- carnage right now with the exception of central ya because of their mining it's breathtaking. we are in the middle of that cusp of that curve. we're experiencing, living it, and half the people you know, are going through bad times because of this. and you asked when is it going to happen? it's happening right now. the question is how do we focus ourselves when we're in the middle of the chart. it's almost like your too close to see. you think it's a matter of few minutes it'll go back to normal. the boat has a whole in if. it's not going go back to normal. -- i was on the the famous rock when and i was spunk. all the people on the boat. there are 500 people on the boat. they were thrown off their chairs when we hit it at 19 notes. and the captain said get back on

your seats. everything is fine. i'm thinking, geez we probably ripped 15-foot hole in the boat. the captain said don't worry about anything. if you need we'll tell you where the life jackets are if we need to. i'm going crazy! we need to ask where the life jackets are right now. >> last question. peter teal, who founded paypal, one of the largest facebook. the end of the future was one of the piece he wrote. one of the arguen'ts there's a major difference between change and propping. weapon tend to -- we tend to look as technology that it's going solve. end of the future means we're focused on technology change. we're not focused on new ambitions. do you think he's right?

do you think there's an tend the future. technology not the big solution? your education answer was technology. that's the solution. >> when i said when i said we're an invent nation and people. what we call pure science. the thing doing pure science and making the money. i don't believe that's over. i think we're doing a good job. you look anywhere one. that's my job to see which ones are going to grow and which won't. they're everywhere. we don't are a birth even the economic -- we have a lot of people starting new countries. it's exciting. it's really exciting. here's my -- here's the problem i never thought we would have. when i was a kid and shoot forget moon. we the last thing -- i thought i was going go to mars. i was prepared to be an astronaut. i was prepared to go. i was ready to go. if you said to me half of your

country is going to start thinking with the dinosaurs walked with men and ignore science entirely. and the other half won't be able to talk to each ore and all deliberation is going to come to an halt. because they can't be civil. i would have said you're nuts. that's my description of tonight. the part that -- i'm not worried about invent. i'm not worried if it's technical useful. do we have the maturity as people to do the right thing and make decisions together. i don't see that we do. that's what i'm worried about. i'm worried about that. >> thank you so much. we have a bottle of wine. we know that the issues require a little cocktail. and the real -- sophisticated, dynamic and bold with firm structure and multiple layers resulting in a commanding but assessable offer.

the wine may be again xed definitely. and you too. so please, enjoy this. everybody give a round of applause. [applause] you request get up and go get a drink. he might give you some! [inaudible conversations] panlt of government officials testified today that the state of foreign language education in the u.s. is low. and is endangering the federal government's ability to operate in a multiinternational world. the hearing is next on c-span 2 after that a conversation on global food programs and international development from washington journal. c continues tomorrow. vice president joe biden will be in new hampshire for a campaign rally. our live coverage gets started at 1:45 earn time on c-span.

there are people who looked at what happened with jp morgan and -- lost money, didn't collapse. fired the people who was responsible. there is the market at work. this is how it is supposed to happen. to some extent that's true. i take some credit for it. and it's because government is playing a role. if this happened five years ago. if jp morgan. -- what we did in the legislation, we passed and two ore things was to require the financial institutions to be capitalized. one of the things that's a result of the government telling them you have have more capital than you otherwise would have had. >> this past weekend on c-span news makers congressman barney

frank spoke about the loss by jp morgan. as well as the state and world economies. the don frank law and gay marriage. watch the comments online at the c-span video library. shortage of foreign language speakers in the federal government. official dprs the fbi, deference and state departments when at department of education testify. this senate homeland security subcommittee hearing is chaired by senator acacia of hawaii. thank you all of you very being here. i call this hearing of the subcommittee on oversight of government management, federal work force, and the district of

columbia to order. i want to welcome all witnesses, aloha, and thank you for being here. as chairman of the subcommittee, i am held -- i have held seven -- seven oversight hearings that emphasize the need to build a federal government's foreign language skills from the developing a foreign language strategy to improving u.s. diplomatic residences. this is my final hearing on this topic. today we will review the importance of foreign language just to our national security. and our economy as well. we will also exam the state of the federal government's foreign language capabilitieses, and

consider ways to improve our nation's language capacity. last year, we marked the tenth anniversary of the september 11th terrorist attacks. this tragic event exposed our nation's language shortfalls. the 9/11 commission raised concerns about the shortage of -- needed middle eastern language skills that both the fbi and the cia which end our understanding of the threat. these agencies as well as the departments of state homeland security, and defense, continued to experience shortages of people skilled

tackle the problem before us. if we work together we can improve our nation's language capacity and effectively confront the the challenge's to nation expurty and economic prosperity. i look forward to hearing from all our witnesses today, and continuing the discussion of how we can address our nation's language needs. former david and former senator david boar born from oklahoma who has been a long-time advocate on the issue and was a friend while he was here was kind enough to provide a statement for the hearing.

he continues to urge that we invest in comprehensive language training, and to address this language crisis. i'd like to submit this, and i will submit his statement for the record. i look forward to hearing from our first panel of witnesses, and welcome, again, you here today. the honorable ed ed water dough ochoa cho is the assistant secretary of post secretary education at the department of education. the honorable linda thomas-greenfield, the director general of foreign service, and director of human resources at the department of state.

dr. laura jew nor. deputy substantiate secretary of defense for readiness. stefanie -- at at department of justice. and mr. glenn nordin, the principal foreign language and area adviser, office of under secretary defense intention at department of defense. he is representing the director of national intelligence. as you know, it is --

accustom of the subcommittee to swear in the witness. i ask all of you to stand and raise your right hands. do you swear that the testimony you are about to give this subcommittee is a truth, the whole truth, and nothing but the truth? so help you god. >> thank you. that will be noted for the record that the witnesses answered in an affirmative. before we start, i want to you to know that your full, written statements will be made upon the record. and i'd also like to you to please limit your all remarkings to five minutes. mrs. ochoa with a, will please proceed with your statement. >> thank you. good afternoon, chairman acacia. thank you if the towptd appear

before the subcommittee today. i'm the assistant secretary for post secretary education at the u.s. department of education. i'm pleased to provide testimony for the hearing on national security and federal foreign language capabilities. i particularly appreciate your focus on the psh. as i have district experience having being born in argentina where i attended by bilingual schools until my junior year of high school. i understand the importance of forng language programs. they provided me with a unique insight and appreciation of my own culture and language. before providing an you're view of our programs let me express the department's appreciation of your strong, long standing support for the advance of foreign language learning. the department believes it is imperative that we improve the federal government's foreign language capabilities. the department --

international strategy to simultaneous advance two goals. strengthening the education attainment of u.s. students and advance owing our nation's international priorities. the key object of our plan is relevant to the topic of today. is to increase the global competency including those from historically disadvantaged groups. the need for the exe competencies which we think of 21st century skills skills is clear for u.s. civil society and nation's work force and for the national security. right now just 30% of u.s. secondary students and 8% of post secondary styles are enrolled in a foreign language course. two-thirds of americans aged 18 to 24 cannot find or iraq on the map on the middle east. development of these skills, including foreign language proficiency, must start early in

elementary and secondary education. u.s. colleges and universities have a responsibility to help students deep, the skills. but waiting until post secondary education to start is too late. it means school systems at all levels must place a for a greater emphasis on helping students the unction as global citizens. we believe that engaging students in these ways will help our nation meet the president's 020 college attainment goal with graduates ready to lead us into the 21st century. i want to take time to talk about the funding that our offices port. we support the teaching and foreign labeling -- grand programs under the title of 6 and the act. nine of these programs received 66.6 million to operate domestically. and four programs received 7.5

million to interpret internationally. one of the programs is meeting the national need for expertise and confidence in foreign languaging an foreign area and international studies. the national resource centers support under title 6 representative the department's primary mechanism for developing u.s. language and area of expeer tease on college campuses. 127 institutions provide construction, research, and development in over 110 commonly taught languages. these policemans play an important part national security, and economic competitiveness for individuals with foreign language skills. in addition to our title 6 national resource centers the companion program title 6 foreign language area studies fellowships provide funds to colleges and universities to assist. in fiscal year 011, 735 students

tepid summer language programs overseas. it supports the american overseas research centers. if 2010 alone, 1e6 these centers worked with nearly 1 ,000 fake sei and scholars, teachers and students. the federal investigate and foreign languages is crits call to develop and sustaining the pineline of individuals with foreign languages and international skills that are needed to address national security and economic competitiveness. these programs also help to enhance the capacity of educational institutions and at all levels including k12 and post secondary. to teach foreign labelings. we are committed to continuing to improve and are focus the programs to support the department's goals to international strategy to strengthen the education and advance the international priorities. we believe that understanding of cultures and languages are

critical to building a sustaining our nation own the coming years. thank you, mr. chairman for the issue. i'll be thiep answer any questions. -- i'll will happy to answer any questions. >> mrs. green field, please proceed with your statement. >> thank you. thank you very much for the opportunity to appear before you today. to discuss the department of state's efforts and that the challenges to build the foreign language skills we need to fill full our mission and deliver on america's foreign policy agenda. i will be presenting a summary of my statement today and ask that the full statement be submitted for the record. the bureau of human resources has the responsibility of building and maintain an effective civilian work force that can fulfill the work in strengthing our nation. and secretary clinton everyone sized in the diplomatic develop

review. managing threats such as regional conflicteds wars and terrorism depends on diplomacy and development as the use of military force. therefore, we have increased the number of positions difficult hazards post that will vital to the foreign policy agenda. we have close to 4,000 lang wang designatedded positions in the posts as well as in other locations. it is challenging to uphold the department's high standards for foreign language cape wbility the increasing needs we have faced over the past years. over the past decade, there has been significant shift in growth of positions in the near east, south asia, and east asia bureaux requiring an increase of speaks of languages hin i did within chinese, -- south and central asia affairs where language designated position requirements have been increased tenfold and in the bureau of eastern affairs has

doubled with arabic requirements. the foreign service substitute has expanded the foreign language training capacity to meet these demands and to raise proficiency of existing foreign language speakers. more targeted retirement can help to address the current challenges and we're recruiting aggressively for certain priority language hills. to address increasingly complex national security challenges, the department of robust foreign language capabilities therefore working in out interagency partner west strongly encourager young people to study languages earlier in life starting in middle school and high school and continuing through college as my colleague mentioned. to assist in building the pipeline the state department's bureau of educational and culture affairs is providing language learning opportunities to thousands of american universities, colleges and high school students and teachers each year through the engs

change program. we're concerned over the past few years to learn that budget constraints because of budget constraints universities universities are cutting language firsts before they cutting in else. in addition to the department has established incentives to encourager employees to strengthen their language skills particularly in so the-called hard and super hard languages such as arabic, china, russian, et. cetera. such underscore the department on improving capacity in the critical foreign languages. we appreciate the support we have received from you, and as well as from the congress as a whole 0 under our diplomatic 3 % 078 higher program to drain -- to higher training comet plement that enables more positions to remain filled while replacements receive required languages and functional training so we don't continue to assign people to --

who do not have the language skills. while we work to recruit and retain the talent staff needed in places like afghanistan and iraq. we must guarantee that our employees have the foreign language skills necessary to succeed democrat environments. but the need is not limited this these handful of countries. we have needs in many parts of the world as i stated earlier. no matter where in the world our employees employees are serving our employees must have the language skills together information explain and advocate the u.s. policies establish and maintain diplomatic platforms build and main train trusts and create relationships. in today's rapiddingly changing world, the need for the skills has never been more critical. it in fact we believe the country's well being and security depend on them. i thank you for the opportunity to address you today. i'll be happy to answer any questions following. >> thank thank you very much.

doctor, please proceed with your statements. >> thank you for inviting me to talk to you about an important topic. it is a priority for the nation and didn't of defense. let me begin we by stating the defense secretary has long believed having a strong language ability is critical to national security. and we're committed to fielding the most capable force we can deploy. our mission success districtly connected to our toobility community effectively with local populations and international parter ins. our current challenge lying in filling language positioned with personnel that possess the kills. we have been reduced deficiency. we need help. we need our nation's scoops to develop students with the skills in which we did can redrought to meet our needs. studies show that 0 exposure to foreign language greatly facility language accusation

therefore bringing in individuals foreign language skills make it easier to train people to higher levels of proficiency. this in turn would make it easier for us to fill positions with the appropriately qualified individuals. we are working to overcome the challenges, through collaborative, interagency strategy website to achieve our vision for language and cape abilities. the strategy -- needs acquiring and sustaining language skills, enhancing language careers, building partners, and increasing surge capacity. the department of is improving the identification of the language needs through standardized capability space prod excesses. these processes enable the combat commanders to articulate their needs or vierpts and them to the military services who supply the staff to meet the needs. we have also sought innovative solutions to enhance the

language accusations which include creating a national security work force pipeline, enhancing the language sustainment, increasing partner language capacity, recruiting native and heritage speakers and creating financial incentives. enhancing language careers is essential to sustaining and retaining persons with foreign language skills. we creating better opportunities for promotion, creating multiple regionally focused training initiatives and offering language enhancement opportunities to federal national security employees. we also recognize the need for partners. the department actively engages with program agencies through the national of security education board. and interagency governors bodies that provides input on language, region nailing, and culture issues. we use an internal body that

defensor language steering committee consistents of representatives from 25 key components across the department to coordinate policies ame programs. by experience we have learned the importance of building a surge capacity. to yield language e per tease quickly at at reasonable cost. the department's national language service corps. provides a pool of qualified volunteers with high levels profir sei in i english and tborn languages. who can serve and be act vaid -- when we have male progress in improving our foreign language skills. reink nanl expertise, and culture capabilities to meet 21st century national security challenges. although we have achieved much success, we acknowledge that much work remains. our vision and strategy, our design to build language and cup churl capabilities so they are available to dod and other

federal agencies when needed. thank you, sir, for the opportunity to share the department's efforts in the area and i'm happy to answer any questions you may have. >> thank you very much, doctor. please proceed with your statement. >> thank you, chairman acacia. i'm proud to sit before you along with the ease steamed counter parts. i want to thank you fur the opportunity to appear before the committee today, and in particular, for your continued support for the fbi's foreign language program, and our critical in mission the district ever e intelligence's language service section is responsible for the organization's entire foreign language program. they support the fbi's mission by providing quality language missions to the fbi and partners. service include foreign language recriewment, hiring, testing, training, translanlations, interpretations and other foreign language functions.

the language service section provide -- structure at fbi headquarters to ensure that our langist resource base of over 1400 increase of 85 percent since 9/11 is strategically acliented with priorities set by our operational divisions, and with national intelligence priorities. the fbi rely os foreign language capabilities to quickly and accurately inform operations and enhance age sis. the success of the fbi's mission is clearly dependent upon high quality language service and the ability to translate, and analyze information in the timely manner. the fbi's foreign language program has made create strides in the ability to meet the rising demand of fbi language needs since 9/11. the program has movedded forward through increased recruitment, hiring retention, specialized training, technology and clan ration. we have also significantly increased the range and volume

of the foreign language training the fbi offerses tokers in fell who need to develop the language prosphish sei. programs include academic e meshes training, destroyed abread, and tailored language courses. we raze we are not able to address the foreign language needs with recruitment. we also invest in the development of human language technology tools. these tools provide the ability to tree ..

national language service corps when we have language needs we cannot meet with in-house language resources. as the executive agent for the national searchable translation center we are able to provide a virtual support not only for other intelligence community's partners but also to other agencies with foreign language. i want to thank you for the opportunity to appear today and provide testimony on the fbi foreign-language program. as you know more detail has been provided in my testimony which i respectfully submit for the record. i am also looking forward to answering any questions you may have for me today. >> thank you very much. >> senator akaka and other folks

attending i'm honored to act as a spokesman for the director of national intelligence in today's hearing. i am particularly honored as i know this will be the last hearing of the subcommittee chaired by you, sir. we in the foreign language community are indebted to you for your leadership in bringing world language studies to a focal point and national dialogue. thank you. foreign language capabilities with a deep knowledge of the cultural and societal infrastructure of the populace in geographic areas of interest to the national security are of paramount importance to the successful performance of the strategic and tactical missions of today. the complexity of the mission in today's world and the variety of

nations and non-state my global actors impacting our national security and national and interest make it an absolute imperative that we possess a deep understanding of their culture, interest and intention along with the capability to understand, and communicate in their languages. professional language skills and knowledge are the core competency is in the election processing analysis and dissemination of intelligence information. the shift in the real perceived threats to the national security and global stability from 1992 to the present resulted in the increase in the number of world languages that were essential to understanding and dealing with those threats. a sharp increase in our needs for skills in the left and least commonly taught languages led to

shortfalls in sufficiency and proficiency of the language work force. in order to meet the needs of the day the community and the forces engaged contractor services, comprised primarily of the foreign nationals and civilian immigrants, citizen immigrants. we know that we must build an organic civilian and military language work force of translators, interpreters, negotiators and language analysts capable of supporting our steady state needs and getting the contract capabilities needed during the search and thus the communities set on a course to significantly increase and improve our organics capabilities. together with rational employment of the foreign language skills in order to retain their services, we need to offer these professionals rewarding careers and language specials. while the technology of today

and many ahead will not replace the cognitive skills and process in foreign language, rational integration of key technologies can facilitate the work process and enable higher productivity on the part of the language a court analyst. the director of the national intelligence advocates a significant increase in foreign language capability through expansion of the language cable work force while facilitating and expediting the work through integration of state of the art human language technology into the collection and analytic process these. together, with the defense department leadership, we are exploring the feasibility and potential cost benefits of a professional military cadre of translators, and her workers, language analysts and instructors from serving in the general purpose, special operations and intelligence forces. research has shown the it

indigenous starting language of an early age, has said and noted before the start talk program which supports languages, students and teachers in the elementary and secondary school systems is an essential first step. the intelligence community will seek to capitalize on the current investments in language education by targeting and recruiting and hiring the best and brightest products of programs currently sponsored under the itc and other federal funding. and the community will continue to recruit and hire native and heritage speakers. i see that my time is about expired. i would like to continue for another minute, sir. i would be remiss if i didn't thank the activities sponsored by the defense to permit and intelligence community that have and will continue to have major impact on national foreign language capability. first, the defense language

institute foreign language center that continues to produce professional language specialists from high school graduates. the center also provides worldwide initial online learning as well as maintenance and enhancement continuing education to all entities. second, the center for the of financed study of language a university affiliated research center at the university of maryland. the center is charged with improving the way we keep, learn and employee second and multiple languages through research towards enhancing and optimizing schuman cognitive skills. the work of the center is continuing to improve aptitude testing, training and working and in proved an understanding of the languages of africa and asia. on behalf of the director, ra thank you for this opportunity to address this important national issue. and one final statement, sir, as

foreign language capability is an inherently government responsibility, the federal government must continue its investment in these precious, valuable tools for the national security. >> thank you very much mr. nordin. dr. ochoa, you testified and it seems the panel agrees foreign language skills are critically important to the national security. however, the department's only k-12 initiative, which is a foreign language assistance program could lose out on funding by competing with other subjects and funding for the title six programs have been

significantly reduced since fy 11 my question is how do you support the department's international strategy to develop and globally, and students in light of these budget cuts? >> thank you for that question. it's true we have ruled that money into a lump sum funding for k-12 to provide more flexibility and efficiency in the management of the programs, but we also have -- we are placing an emphasis on the development of the confidence. the fundamental message that we are transmitting is that in order to achieve the objectives of the president's 2020 goal, we have to have the kind of quality

education that includes those as a part of it, so we are coming as we move beyond the focus of math and english language competency to other subjects, this will also be emphasized and highlight it coming and throughout the pipeline. >> i'd like to follow this up with a question to the rest of the panel. how will cuts in the department of education's language and international programs affect your efforts to maintain your department's language capabilities? >> thank you very much for that question. it's relevant to what we do in this department in terms of training our officers for language skills. we know that it's more difficult

to train people as adults than it is to bring them in with the foreign language skills early on, and it is our belief that young people who start language training as early as sixth and seventh grade come prepared with the languages when we hire them and right now we are spending, and that is a rough figure, but about $250,000 for each position that we are training people for as we use iraq as an example where we are signing people for one year. they come in. we have one officer in the position, we have one officer in the first year of training and one officer in the second year of training. if we brought those people in with of the language skills, we would save that amount of money up front with our officers. again, thank you. >> to follow-up and to build on the last set of comments come of the dod has built a lot of

partnerships with of the support of our national language fellowship with the states and we've made a lot of headway, but this relies on an infrastructure capacity the was laid down on the department of education. the continued partnerships, seat partnerships will help us get through this but there's no question the we tell you our partnership at the department of education in the past. >> as you know, the fbi recruits from the communities out there and whether we can recruit from a heritage community and a native community or for those people that have learned the language through education perhaps our challenge is to get them through the recruitment and background program, so as the department of education increases the number of students

to recruit that are u.s. citizens to have spent their life here in the u.s. as opposed to overseas that increases the ability to get them through their background quicker, and for that reason we definitely appreciate what the department of education is doing in that respect. >> thank you. mr. nordin? >> i think we have a responsibility in our outreach program for all of the federal entities to go out and help the school boards and the systems to find ways to continue the language education and i think that is a responsibility that we bear. >> thank you. dr. ochoa come as i mentioned in my statement, i believe coordination is key to addressing our language and

strategically target limit resources. how is the department working with other federal agencies to make sure that its programs are addressing our national security needs? >> mr. chairman, thank you. pursuant to the higher education act of 2008, the secretary of education in yolly with the cabinet agencies in the federal government to receive recommendations on the areas of national need for expertise and foreign languages and the regions the department's assistant secretary for international foreign language education and the senior staff serve as the advisory committee members for that part of defense national security education program and the department of state title late program under the bureau of intelligence and research the department has an agreement with the part of state to assist the programs

administered by the department and the staff of the international education works collaboratively with the department of commerce trade of administration western hemisphere office to plan and purchase of eight seminars intended to give students and faculty and understanding of finding another opportunity in international business education. and we are also members of the interagency language roundtable, which is an unfunded federal interagency organization the was established in 1973 for the coordination sharing of information of the language activity at the federal level. so that group serves for the diprete agency of the federal government to keep the progress techniques and technology for language learning, language use, testing and other related activities. >> i would like to ask the rest of the panel to answer this

follow-up question. will you please discuss the steps your departments have taken to coordinate federal language education programs? >> thank you again for that question. as you know, we have a premier language institute and we make available places of foreign service institute for other agencies to participate in our language training program. we also participate in the interagency committees that look at language training. we think it's very important as our embassies represent a platform for all agencies overseas, for those agencies also to have language skills who arrived to fill their positions as well, so we see it as a key

to all of our foreign policy goals to have the agency individuals with the requisite language training. >> dr. junor? >> our biggest effort is the national security education board which help us run the national security education program. this board was established 1991 and has been meeting since 94. it brings together about seven federal agencies, and the national security education program has done -- its main goal was to establish federal partnerships among the federal government partnerships with federal and state entities and even public-private partnerships. in doing so, we have helped create state road maps for education. these road maps are an opportunity for individual

states to work with our flagship institutions and they create an institution for best practices in providing language instruction to our kids. this pipeline then flows through elementary school, middle school, high school and into our flagship colleges where we provide several initiatives in the grants to make sure that we are not only creating folks with an awareness of language, but some with fat professional level of expertise where we sponsor and immersive experience overseas, and in doing so that creates a better poll for not only the dod but all of our federal partners to draw from. within d.o.t., we have the initiatives of the product general officer, we have a pilot with our rotc candidates and

several initiatives for our federal and rita officers, and we already heard about our language institutes to create class's for military members to come and learn. some of them available are also open to federal partners. >> one of the better ways we are collaborating with our partners is the natural transition center. this is a center that was created as a result of the u.s. a patriot act in 2001 and 2003 and the fbi can the agent for the center of the o.d. nie. with the center does is they are a virtual for the u.s. government and the intelligence community where these provided

support not only for the intelligence community but for the dod to combat and command of a particularly in one center we have in doha were they provide regional expertise for the embassy in the region for centcom and africom we are also a member of the roundtable and foreign languages executive committee which is an agency committee where best practices are shared and different initiatives and the outcomes of those initiatives. one of the results of that is the fbi created a language program where all of our products are then quality controlled before they go out the door that became the best practice and that process and methodology was shared among our partners not only here in the u.s. but also overseas and we're just continuing to leverage the

other partners as far as technology is concerned. as we know as technology develops we need to be ogletree ghosh our collection faster and in a more expeditious manner. we are hoping for the combined efforts of all of our partners at this technology will advance to a rate we can use on a daily basis and it will cut back the time it takes to review that collection on its priority for us. >> mr. nordin? >> the dni initiated as part of a national security language initiative in which teachers and students in the elementary and secondary school systems far treated to a study and interchange in the languages they have. there is a member of -- number

of community meeting places we get together a primary one of which is currently led by an employee of the army, however that and chartered organization is doing just fine after 50 some years, and its work is added to by the foreign language committee of the o.d. nie. the state department is a great host to this organization, and you have the defense language steering committee, the national the education, security education program, all of these things work together. it's the most collaborative group of people what i've ever

worked with. thank you. >> thank you. >> question for you and the national security agency's. the dod has filled only 20% of the positions with language requirements with qualified employees. other agencies here are struggling with this issue as well. what challenges aren't your department's facing in recruiting, hiring and retaining personnel with the needed language skills and what steps have you taken to address these challenges crux >> thank you for a question. we are actually doing very well

now in filling our language designated positions with people with the requisite language training and right now the state department is about 70%. we have a very high bar for that and that is people who've tested recently in the language of the three trinkle three level. we feel we are doing very good but it's because we've done a lot of work over the past few years with the training flow that we were able to develop on the diplomacy hi zearing. so, we hired over the past few years about 50% more so that we can put people in language training while others are in the job. we are somewhat concerned as we approach the next year because we don't have the hiring flow. we will only be able to hire two patrician coming and we need to continue to encourage more hiring or get support and resources for more hiring to continue to have the training flow so we can continue to train

qualified people. >> yes, sir. i talked a lot about our first challenge and that's to try to improve the pool. after folks come in, we have sort of the two ways we think about this. teaching folks to come in their language capability we have the foreign language center, and that is creating an in-house cadre of language speakers. this is part and it's expensive but it does serve a purpose. we are also using language training centers in order to further improve our language capabilities we have -- we are trying to improve how we view these so you may have seen recently that the army is

creating regionally allied forces, and this will help us build expertise in other cultures as well as give focal points for the folks that speak the languages around the world to go and practice. we also try to expand how we use over the last several years how we use heritage speakers. we have the national service language corps which is a very important surge capacity. that's about 196 languages that are at our disposal and there is no way that we could have created such a competency starting from scratch. we are very thankful for that. we also have the program. these are the methods for the heritage speakers to come and actually served as uniformed military members and serve as in-house language and cultural

experts. these have been critical to our efforts in iraq and afghanistan over the last ten years, and we also have the defense language institute english-language center, and again, that is to create an increased language capacity of the parkhurst. >> we have a linguist work force over 1400 which is an 85% increase from 9/11 and the retention rate is at 94%, so we're actually doing fairly well in that regard. we implement what we call a work force planning model where we actually do targeting her recruitment towards languages where there's a shortfall and unanticipated need. the hiring goal is 90%. we are currently at 88% and we anticipate we are going to meet our fiscal year 12 cool and the

flexibility that we have is that next workforce of contract linguists and language analysts. as a result we have reduced our average applicant processing time and we are down to ten months which is a really good news story. the challenge that we face in recruiting and hiring is our difficulty in finding those individuals who can pass a four in test battery at the level that we require. they also need a polygraph examination and a full background. and then given our requirement that a lot of our material has to be submitted to a court of law for evidence erie purposes, we have a higher bar set for our language skills and we have an average of one in ten applicants actually getting through that applicant process, and of course we are competing with everyone

else here a table for the same resources. the way that we mitigate those challenges is through recruiting affairs that we actually go out and look at the native and heritage communities we advertise in the foreign-language newspapers we put out press releases and we do in person events and we also attend university hiring events and they have a fair that we also attend, and then we leverage the other employees in the fbi when we are able to provide them with a limited amount of foreign language incentive pay where they have a language that is critical to our needs we can actually reward them for that ability. and then we also leverage our partners through community resource sharing so we host assignments come interagency short-term temporary duty assignments we work with the

national security education program as mentioned before and the heritage language speakers program, still, we do have a foreign language needs the dialect's, chinese, drc and somalia. >> one of the difficulties that we have had has always been the inability to take people away from the positions where they are actively using their language and sent them off to school to learn their language better or to other jobs. it's a bit like -- we're very appreciative of the training flow that was granted to the dni for a number of positions that we can send some of these people off to get their enhancement training.

.. they we need to correct. we need to find a way to communicate to the people how important that interpreter-translater at the social services to the a community's well being. so that is our biggest education challenge, i feel. >> thank you very mr.,

mr. nordin. doctor, you mentioned earlier the national language service corps. -- will you please discuss how the core addresses the department's language needs as well as any plans to further develop the corp. >> yes, sir. the national language service corps. recrewed -- there's about 2200 members at this point. and about 500 more applicants. i mentioned before, that this representative -- represents 196 languages around the world. there's a national pool that looks like the enacted reserve, and dedicated pool that looks like an active -- like our active reserve. and what this means is, it is

truly a surge capacity for those needs that need to be filled. that dedicated pool represents a predictable and very broad capacity for languages that are not commonly found. several geographic commanders, to include set come, and pay come, and of a come are regularly drawing from this. several are force providers. our nato oriented units are drawing on these capabilities as well as key agencies. nondod agencies and we have heard from some of them include everywhere from fbi, fema, center for disease prevention, and several states, individual states have dprawn the service corps., and i guess, in a time

of fiscal austerity, it's useful to point out that we've actually been able to recapture some of the investments we've made in federal employees and % of the service corps. have previously had federal background, when recaptures the language capabilities. the national lang age serve corps. ising? we rely. it's relatively new in our world. and as world -- word is getting around, we expect dmaind for the capability to increase. it's something that we take very seriously. >> thank you. let me ask my final question to the entire panel. what do you envision as an end goal, end goal for language capacity?

, and what resources or authorities are needed to reach that goal? mr. ochoa, i would like to discuss the department's vision for a national language

we live with two realties. we the biggest, largest consumer of language capabilities we the biggest hirer of folks. we have the largest need of language requirements in the federal government. and probably nationwide. and these are profound needs. these are needs in some of the most difficult languages out there. the second reality is that except for a gifting few learning language is hard. it's not something you do once

and it's yours forever. you have to sustain that per tease throughout your career. especially with the fiscal realities being what they are, our end state is the furtherance of our national partnership. we can't meet our needs alope. along the federal partners to share the practicists on how to help k through 12 to keep that pipeline coming practices on how to improve and sustain language capabilities once they've come in our doors and for the participator inships with congress to help keep this pivotal national issue. thank you. >> thank you. doctor? >> since 9/11, the fbi's collection in counterterrorism

and counter intelligence related matters has increased significantly. we don't see that trend reversing at all. we project that the demand for translation services will only to don't increase. the challenge for us is achieving the goal of translating all of the material we collect. we're not going to be able to do that because of we collect and the volume that continues to come in pop so away need to be able to do is partner with our other agencies and the community, the intel community, and the civilian community so they have the resources that we need then to remain flexible so we meet those new emerging threats as they appear. as years go along. the languages in demand are going to change. right now we cannot predict what the languages will be twenty years from now. now is the time we have to start training the work force for the languages twenty years in the future. to have the resources to remain

flexibility we so we can reconfigure our work force and work on the technology so we can tree on the material we are getting i.d. the speaker and language look to see what we can do to focus or annalists so their work beings more productive and not such a sifting through of all the collection that we have. >> thank you very much. mr. dour anyone. >> i believe the director has the latest strategy of increase the number of persons and intelligence community who have command of other languages, cultures, knowledge of the countries, and august augments that increase with key technologies inserted at critical points within our intelligence collection, and

analytic systems so that you fa sis at a time and control the volumes of material that are being processed. and there is no one solution to the problem. it lies in the nation itself understanding the need for foreign language, in their daily lives. thank you. >> thank you. i want to thank the panel very much for your responses, your statements, of course, you've been very helpful, and i want to wish you well as we continue to increase the capacity and use the resources we have there's another part to this we need to coordination, look at other possibility resources in other places that may be able to help as well. but you know this just as well as i do.

but i want to wish you well, you're doing a great job, but we still have a little more to do. so i want to thank you for what you're doing and wish you well in your work. thank you. [inaudible conversations] i want to welcome mr. andrew

lawless, member of the globalization and local aid and ceo of strategies for our contents. also i'd like to introduce dr. allan goodman. member of the council on foreign relations task force on u.s. education reform and national security. and president of the substitute of international education. and dr. dan davidson, who is president of the american councils of for international education and president elect of the joint national committee for languages. it is a custom to swear in all

witnesses. i would ask you to please rise and raise your right hand. do you swear that the testimony you're about to give the subcommittee, the truth, the whole truth, and nothing but the truth. thank you. let it be noted for the record that the witnesses answered in the affirmative. before we start, i want you to know that you pull written statements will be made upon the record. and i'd like also to remind you, please limit your oral remarks to five minutes. so mr. lawless, will you please proceed with your statement. >> the testimony about the language in the u.s.

i will do so on behalf of the globalization and local suggestion association that's the international trade association for corporate sector. also known as gala. as an american citizens with a thick german accent and eye rash last name. i feel motivated to speak to you today on the shortage of lang ranch resources on the at economy security at risk. let me give you some context first. u.s. businesses exported about $1.5 fll goods and 600 billion in services last year. all of which depended on language services to sell and market to audiences who's native language is not english. new statements, websites, movies, software, safety information, labeling, games, and custom support are translated every day in over 500

major languages. the languages service represented 15.5 billion and 190,000s in north america last year. this does not account for the vastly largest part-time and freelance little wests in the u.s. let alone they have indirectly created such as for the american people who have market, sell, deliver, and support u.s. made products world worldwide. languages and the business they enable may be the most powerful force in the united states today. without languages u.s. businesses would be missing 2.1 trillion in gross income. as u.s. companies are targeted multilang yule audiences at home and abroad they create a growing need for languages services and work force that can deliver in the settings.

if you sell products in germany, your customers will talk to you in german and your customer support team needs to be ready. to stay relevant and compete in the marketplace u.s. must build the capabilities. acaring the language skills take time, repeated exposure and practice to develop. not acting immediately on these development needs have dire consequences on the u.s. economy. we are already seeing a chronic shortfall of qualified language spes literals and stag nantd taft. as aactivity as a result incourses are qualified on less qualified translators and low-quality machine translations. all of which are less competitive. the american work force needs -- translation local decision, terminology, technologies,

engineering, and malt media. these hills are in high dpand and will continue to be sought after. u.s. businesses and government agencies are addressing the needs for language competent. but need more corporation in private sector, government, academia, for example in investing the start-up and interesting language technology. promoting in key areas such as emerging marketings, homeland security. and crimes. expanding the educational is citizens -- related fields last but not least. training specialized workers such as law enforcement workers and the intelligence community in the skills. as an association we are committed to companies and advancing the industry to alleviate the crisis. we can't do it on our own. we will need the gross

collaboration between the companies, technology providers, the by yo communities. government and academia. gala would welcome the opportunity to extend on the system on the recommendation if more detail. we appreciate the ini have theyings from the -- invitations from the peeves panel from the -- we are, to that conversation and thank you for the opportunity to testify and i'm happy to answer any question that you will have. >> thank you very much. doctor goodman, please proceed with your statement. >> thank you, mr. chairman. it was an honor to receive the call from this committee to present some testimony. it's a privilege to serve as president of the substitute of international education with mores the full bright gillman programs on the bhaft department 6 state and defense.

what cuptures my attention for the hearing was participation on the council on foreign relations task force which was chaired by secretary continue continue lisa rice and joe client. it was a very bipartisanship and mixed group. for a higher educator, what really was to me the heart of the recommendation, was the call for a national readiness audit. which would help understand the very things your statement and your questions and this committee have been asking about for a long time. how prepared is the nation and what levels are we teaching all of our citizens to have proficiency in another language? now it's easy for us in higher ed international education to forget, just how many of our citizens aren't connected to the world and don't get the chance to study it. 70% of americans today don't have a passport. it and that's about the same

percentage of americans with a college education that can't find indonesia on a map, can't find iran on a map, and believe that south suzanne, the newest -- south sudan is in southeast asia or south america. most who do study abroad 0 go to a number of english speaking countries. they study abroad for a short period of time. the other thing we tend to forget except for you in this committee is that foreign language learning in the committee may be at the lowest number in the history for college students. only 8 percent studying the foreign language that was half of what it was in 1965. the need for it, as you've noted and many times, the need for more proficiency in foreign

languages where the future ought to be. the federal programs that this committee has supported, are quite strategic, therefore, in my view. full bright, warren, gillman, they get our citizens to more than 150 different countries. they are diverse, not only in terms of where students go, but the students from our society that go more than half are from minority groups in our society. many -- much different portfolio and profile than is the normal study abroad profile of americans going abroad. they go for longer periods of time. that is conducive to language study. i think this congress has ree peteedly made very strategic progressments in this program. we're grateful. to move the needle, i'm not going to ask for more money. to move the needle what has to happen is american higher

education has reinstitute foreign language for every graduate going through the system. 100 years ago that was true in every college in america from technical schools to liberal arts schools to research universities. today i don't think it's true for more than two dozen in the whole country. that's the only thing is going to change the pipeline and ensure the panel that we heard from is going to have the future language speakers to protect our country. in concluding, i want to depart the written statement, your committee is focused on the district of columbia. twenty blocks from here, my daughter runs a pediatric clinic under a federally qualified health clinic. they've had over 600,000 patient visits last year and 95% of the patient language is mainly spanish.

when she went to medical school she readed what she needed more than learning chemistry, biology, and physics if she was going to be an effective doctor was to be able to speak to american patients in the own language and in this case, their first language spanish. i agree that more language for diplomacy and national security will help make our world a less dangerous place, i also think that sometimes learning another language helps our citizens here at home to live in a safer and more secure world. thank you for your support for both

how they use language to communicate do modulate to conceal values or communicate intelligences in the aspirations. to build rapport with one another, to persuade, to negotiate, to establish trust, or fail to establish trust as the case may be. information transfer, by the way, something that machines are fairly good at is a relatively minor part of communications if you look across the mass of commune it documents we have the cultural component is what is central. it's specific to each language. not something global. and i defer from one of the comments made earlier today. it's specific to each language. it can be hard to discern especially if you never step outside foot in a greenhouse or in this country. we feel therefore salute yours

and the government's decision to raise the bar to level three. but the real answer for scaling up the system and delivering speakers, readers and analysts in world languages and cultures to the new level is to begin the training as for a upextreme as we can take it as you have staid today. the sequence of k12 in the system. periodsic opportunities continue to advance and content or yented study in the university and a strong -- work employees. thanks to the ndea, half century ago the u.s. has been able to maintain a core capacity in the university level for foreign lang age for most world areas for title 6 and full bright haze both which have been reduced by 40% over the past two years. alongside the outright elimination of fap. which is movement in the wrong

direction which we hope can be addressed by the administration and the congress as soon as possible. on a more positive note, the post 9/11 era initiatives arising from the intelligence communities notably national security language initiative which build on specifically aim at helping address the new mandate for high level language and culture across the sectors of economy. here i want to mention programs that are making a big difference in the foreign language field right now on the ground. the star talk program funded by nfa is running high quality programs for and 150 programs in ten languages in 48 states and the district of columbia. it's making a big difference. the state department is investing more than $30 million a year in the related teacher programs for more than 15,000 more than universities, college, and high school students a

year. that wide program for example is open to any student in the country, and has a remarkable level of language achievement even for the short period that it works. similar to the cls program has done the same thing for the undergraduate students. ..