tv U.S. Senate CSPAN June 19, 2015 10:00am-8:01pm EDT
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the world -- lead the world. >> ladies and gentlemen, please help me welcome the 43rd governor of the state of florida jeb bush. [applause] >> good morning. good morning, everybody. ralph reed and penny thank you for this great invitation to come back and speak year at the faith and freedom coalition been. it is a joy to be with you all. before i start my remarks i'd like to pause and i know many of you are concerned with what happened in charleston. in fact, i was traveling to campaign in charleston the day before yesterday. ..
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they were praying. they were learning and studying the word of the lord to find grace in his kingdom to fill his house with love. in times like these, in times of great national mourning, people of faith all of us must come together and at least reflect on this and fortify your strength and love of christ and love of god to be able to continue to go forth. i don't know about you that had big impact on me as i am sure it has with you. we need to support with each other. we need to continue to bear the witness got acts through us. even in crisis, even in
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desperate times we can always walkup right as brothers and sisters look to the heavens and know we're children of god. that gives us all strength and i know your hearts and prayers are with families and pastor who lost their life and hope it never ever, ever, happens again. [applause] i'm glad, i'm glad and honored to be here as a candidate for president of the united states, the greatest country on the face of the earth. today will not be a political speech. i thought i would talk a little bit more about my journey of faith and how faith impacted my life personally and as public servant. my life was transformed when i was 17 years old. i was in mexico. most of the older guys in the room won't understand this, although occasionally a person i can see of a guy will nod their heads when i tell this story but i saw a young woman and i fell in love at first sight.
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totally head over heels in love. and she is my wife now, of had 41 years. columba, now columba bush is my guiding light, my soulmate, my inspiration in many ways. and it took a while for us to, for me to convince her it was love at first sight. i finally got that done. we were married when we were 21 years old. she was 20. because of her my life became focused and starting my life's journey earlier than most people did. it has been aç blessing. i converted the catholic church. christ came into my life a little earlier but i converted to being catholic in honor of my life and i believe in the blessed sacraments and they give me great comfort on easter sabbath in 1994. i lost election in 1994. i found solace in the rca class
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to convert to being a catholic. it has been organizing part of my architecture as a person and certainly as an elected official. so sometimes people are asked about this question about people that are aspiring to public life or people that are serving they're asked whether you allow decisions in government to be influenced by your faith. whenever i hear this i know typically the answer that they want to hear is no, never, of course not. gosh i would never do that. because in the game of political correctness that is the answer that gets you to the next level. that is i that is my personal experience and continues to this day. the end point is certain kind of politician that we've all heard before. guy's whose moral convictions are so private so deeply personal he refuses to even impose them on himself. [laughter] well, that's not me. how strange in our time today to
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hear that our faith and our moral traditions spoken as some kind of a backwards or oppressive force when in fact it is really the moral foundation of our country, the greatest country on the face of the earth. [applause] it is also been, i think in many ways if we're objective about this and take a step back the greatest force for good in the world, the greatest force that has ever been known in the world. feeding the hungry, healing the sick welcoming the stranger, these are the tenants of our faith. if we act on our faith each and every day we'll create a more just, a more loving world. the instinct to do these things didn't come from nowhere. they came from our religious tradition. we must stand together to protect those freedoms that are so sacred and so important for a free society. when i got to be governor of the state of florida i insisted that we build a culture of life, from beginning to end. it was one of the guiding
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principles of my joyous experience t was a crazy experience but certainly joy full to be governor of my beloved state of florida. we took special care as that video mentioned, we took special care for the most vulnerable in our society because i do believe, i honestly believe that as a conservative that believes in limited government we need to put the most vulnerable in our society first front. line because they're of value they're of as much value as everybody else. others need to take a step back. so whether it is an abused woman, or a child with developmental disabilities or our child welfare system, in florida, as the most conservative reform-mined governor in modern times where i cut taxes, i shrunk the government we created an environment of lots of high, sustained economic growth, we eliminated affirmative action and replaced it with a model that was not discriminatory but allowed minorities to attend universities, we did all of these conservative things but we
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also put the most have nebraskaable int( society at the front of line guided by my faith. and we also put the rights of the unborn in the front ever the line as well. when i became governor -- [applause] when i became governor i was shocked at the total lack of regulation of abortion clinics. that parents had no legal role in their minor daughter's abortion decisions. so we, what we did was we put regulations on abortion clinics. we narrowed the number of them but we made sure there was reasonable health and safety standards to protect women. i led the fight for a constitutional amendment requiring parental notice for abortions an signed into law a bill that required 48-hour notice to a parent or guardian. at my urging, the state of florida was the first state to sustain funding two million dollars a year, to go to crisis pregnancy centers to provide
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counseling and therapy. state money going to crisis pregnancy centers to give parents moms other choices. i signed into law a partial-birth abortion ban. i helped programs to allow seniors to age with dignity, not institutionalled care, wherever off possible aging at home or aging in community centers where they get the love and respect they deserve. we oversaw major reforms to conditions and standards in senior centers as well. partially because miami and florida in general is a place where a lot of seniors exist. we reflect the future of our country though. we better start focusing not just on the beginning of life but the end of life issues as well in a country and do so in a loving compassionate way. when i was asked to intervene on behalf of a woman who could not speak up for herself i stood on her side. i stood on the side of terri schiavo and her parents.
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[applause] and i think that should be the first and most important instinct in this nation filled with charitable hearts. to stand on the side of the most vulnerable, the innocent because if we do that, if we treat people with the same dignity and respect that we believe that we should receive we're going to solve a lot more problems than giving up that basic concept and allowing government to be the end all, be all. we could shut down government if we all acted on our sense of consciousness about helping others. if we restore that, front and center as the guiding principle what it is to be successful person, and i know many people in this room do that, the demands on government would subside. we would all be conservatives, which should be the objective. to win this fight over the long haul by creating self-governing people again. where we define see troubles that exist in our communities that we act on it. imagine a country that would be focused on that?
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it has been and we need to restore that front and center in our society. my belief is religious freedom now sunday attack in ways we have never seen before, whether it is the obama administration or just the general culture. it is important for to us recognize, it has been a rough years for religious charities and their right of conscience in this country. there seems to be attitude when the prevailing government policies runs headlongs into the views of the faithful, the faithful must yield. i'm reminded what secretary senator clinton said, when people that have religious beliefs, they run into conflict with a woman's right to choose for example, that the people that have religious conscience have to get over it, have to take a step back. well in a big diverse country we need to make sure?c9dxl?g we protect not the right of having religious views but the right of acting on those views. religious conscience is one of the first freedoms in our country.
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[applause] we find a federal agency dictating to a catholic charity the little sisters of the poor, what has to go in their health plan. never mind the objections of conscience. i don't know about you but i'm betting that when it comes to doing the right and good thing, the little sisters of the poor no better than the regulator of the department of health and human services. [applause] from the standpoint of religious freedom you might even say it's a choice between the little sisters and big brother and i'm going with the sisters and i hope you are as well. [applause] this conscience should also been respected when people of faith want to take a stand for traditional marriage n a country like ours, we should recognize the power of man and a woman loving their children with their, all their heart and soul as a good thing as something that is positive and helpful for those children to live a successful life. and while there are people that
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disagree with this, we should not push aside those that do believe in traditional marriage. i for one believe it is important and i think it has to be important over the long haul irrespective what courts say. [applause] in america our conscience has shown this not just at home but beyond as well, beyond our borders. we're now living in a world where this administration particularly believes that the united states presence in the world, its very presence, its leadership in the world is not a force for good. it creates more problems than benefits. imagine that this is the first president in the post-world war ii era that believes that the net result is we're creating insecurity and instability that we have never seen before but we're also allowing for people of conscience outside of our country, jews are being discriminated at higher levels and certainly christians around the world now are being targeted. as we pull back and we don't
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stand up for religious freedom then we see what happens. radical islam and their adherents are now targeting christians in places likes iraq and all throughout the middle east. cops being beheaded on the shores of the mediterranean. christian students being targeted in a university in kenya where the muslim kids were allowed to go. the christian kids were slaughtered. over and over and over again we're seeing this and where is the united states? if we're going to have a strong foreign policy, yes we need to focus on our own national security, yes we need to build alliances to keep us safe but we also need to support those in the world that believe in their faith, but for us who? who will be there to stand bit side of someone who has courageously continuing to adhere to their faith? i believe the united states has a role to do that, and we better start doing it soon.
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[applause] if we get this right if we restore proper balance where people of faith can act on their faith and we express our love of others knot just talking about it but acting on it and we create a government that is the servant, not the master of our own destiny this is going to be most extraordinary time to be alive. this is growing to be a time of abundance. this will be a time where our children and grandchildren will have much more opportunity. if we fix how we tax, how we regulate embrace the energy revolution, focus on the things that right now are broken through proper leadership if we fix these things young people particularly are going to have a time that it will be the greatest time to be alive in this world. we can grow far faster than we're growing today. we can create a more secure world. in doing so, in doing so, people of our generation, those not young people here, but their parents and grandparents can
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fulfill what every generation has done since the beginning of the creation of this republic. we've always left things better for the next generation. can we honestly say today that is the case? we can't. but we can fix it. i honestly believe we can. with conservative principles applying limited government, asking people to act on their hearts, to become a self-governing people again, this will be the most extraordinary time in america's history. i hope that you believe that. i hope that we shed the negativity that exists and that we offer a hopeful optimistic message to people who haven't heard it in a long long while. the politics of grievance, the politics of angst the politics of anger is important to fight against the overreach by the progressives. but frankly we're never going to win elections unless we inspire people to believe that the future will be bright by applying the timeless principles that we know to be true and effective. with your help, we can make that happen. i appreciate your activism, i
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appreciate all that you do. i humbly ask for your vote. thank you all very much. [applause] >> ladies and gentlemen, please welcome the president of the iowa faith and freedom coalition steve scheffler. [applause] >> good morning. it is my deep honor and my deep pleasure to introduce a very good friend of mine. phyllis schlafly. for those of you who don't get her publication, the phillies schlafly report you need to get that. it is in the 46th year. very educational tool. this is woman who is the mentor around the leader, the national
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leader of the conservative movement. when i was in high school which dates me a little bit i read her book a choice, not an echo. it profoundly changed my life. this is a woman who single-handedly handed us the pro-life plank in the national platform and every republican national convention when that first succeeded she has been at the for front protecting life. this is woman who came to iowa in 1980, in 1992 against all odds and fought the equal rights amendment. in fact in 1992, when she came to iowa, the polls showed that the era was going to pass as an amendment to the state constitution with over 80% of the vote. i told her, phyllis, i love you but you're wasting your time. and i still remember to this day that blank look she had on her face saying, or insinuating saying, steve, yee of little
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faith. so here is a great woman. no other woman deserves more credit than today my great friend phyllis schlafly. [applause] >> thank you very much, steve. and thank you for your friendship over the years. and how you have iade iowa a big player in the national political sweepstakes. it's great to be in this room. this is a room with a lot of sentimental memories for me. it was right here in this room that we celebrated the burial of the equal rights amendment in 1982. many -- [applause] i'm sure many of you were here. we had a thousand people that night. the feminists gave us a bomb
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scare. we all had to vacate while the dogs sniffed out the room. but anyway we survived. and we did we were able to celebrate. a tremendous victory against all of the powers that be. and of all of the things we taught people by defeating the equal rights amendment was that conservatives can win. they don't need to be defeated. and what we did was to fight the problem of three presidents, three first ladies, every member of congress except two all the media, hollywood hollywood came to springfield illinois repeatedly to tell us we ought to pass the equal rights amendment and all the money. yet we beat them all. it is a lesson for everybody that however down and out we may feel about the odds against us today, we can win and you are the people who can do it. and i thank you for being here
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today. and i thank ralph reed for putting this on and for the churchhill award he gave me last year when i couldn't make it. but at any rate, we have the opportunity to win again. and we need you to be acting in politics. it is, we all want you to pray for god's help but don't expect god to stuff the ballot box for us. that's our job. go out and find the votes. [applause] and i urge you to be active in politics. yes, it is sometimes difficult but you're needed and you're needed there. and that is why i wrote a choice, not an echo. i hope you will get the new expanded view because the king-makers haven't given up. they're doing all kinds of things shenanigans they did that wrote about in my first book that described what they did. in a choice, not an echo. i have a lot of new information what they have done in recent
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years and, as patrick henry said, i have no lamp to guide my feet but the lessons of history. i know of no way of judging the future but by the past. and so you need to know how the game is played. we need all of you to buy try to be delegates to the next republican convention which will be in cleveland next year. you need to be there. you need to cozy up to your republican friends in order to get yourself named a delegate. and, when we were trying to nominate barry goldwater, we not only had enough people to fill the room, and have the majority, but i personally know just dozens hundreds of people who bought the ticket to go to san francisco for the convention just so they could sit in the gallery and watch their delegate and make sure he voted right. that is the kind of commitment we need to make sure we're not stuck with another loser of a
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king-maker candidate. [applause] you know all those losers, they made us vote for -- [laughter]. but we have to pick someone who is real winner, who will grapple the issues and overturn what obama has been doing to this country. and what is the other victories we've had was making the republican party pro-life. and you know, when i started out under nixon the republican party was proabortion. and we made it pro-life. that was another struggle because our people were able to get themselves elected delegates to the republican convention. on the platform committee so that they could identify what the republican party is for. and so when the supreme court
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handed down row v. wade, a lot of people said that's it, that the supreme court has spoken, but a lot of us said no, that isn't it. that is the start of the fight not the end of the fight. and so we do need to do the same thing if a court make as terrible mistake on marriage. we want to make sure that the republican party stands for for traditional marriage as god prescribed it, not as some people want to change it today. so i think is the bottom line we can win on all these issues if you will engage in politics. a lot of people in this room do a lot of good things in many ways and i'm sure you're all praying for the right goal but to be involved with politics, what we've done with eagle forum, i urge you to be part of the game so we can make sure that we get a non-king-maker
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candidate for presidential nomination. we need everybody now. we don't need just a few people. we need all of you to be active so that you're backing up the right candidate and again the choice, not an echo, tells you the gameplan of how "the kingmakers" have been giving us the wrong candidates all these years. and i remember one of our biggest fights was in 19, was the year, the convention was in san diego and that was the year when we had to fight bob dole's effort to change the party platform to say we are tolerant. we didn't want to say we were tolerant of abortion. and it was a big fight and we had a group of people who worked hard on that. ralph reed was one. and gary bauer and bay buchanan and i were all working on that.
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the media dubbed us the "fearsome foursome." i want to react at this straight the fearless foursesome so we reactivate the battle this year. this is the biggest challenge of our life, to make sure that we get a good candidate and we support him and we win. don't be inclined to go third party. if you're inclined to go that way i invite you to move to europe. they have lots of useless third parties in europe. that is not our way. we have a two party system and, i think you won't get very far trying to make the democratic party pro-life. you are stuck with the republican party. that is where the fight is and that is where we need you to get involved in politics. and eagle forum has been leading the way of that for years and we want to show again that our platform stands for traditional marriage the way god ordained it. we'll fight for it and we need everyone of you to be involved in politics from here through
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the 2016 election. it could be the most important election of our life and i want to see you in the battleground for that because we need all of you. we need you now. thank you for what you're doing. i appreciate it very much. [applause] >> ladies and gentlemen please help me welcome the attorney general of the state of oklahoma, scott pruitt. [applause]
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>> greetings to you from the great state of oklahoma where i as attorney general have been working with a cadre of attorneys general across the country on the front line. and on the front line and responding to a president who has said apologetically he has a pen and he has a phone which is code for what? that he will disregard the checks and balances that the founders put in place and attorneys general across this great country have been responding since 2010 with many challenges. we're making a difference. you know when you look back in our history i get nostalgic about history. i think back what it must have been like to live during the time of our founding where individuals were walking at that time understood what they were doing was not just about them. it would affect generations into the future. in fact there is a verse in ecclesiastes, do not say why were the old days are better than these. it is unwise to say such a
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thing. i've been a little confused. i look back at nostalgia to say why can't we have that today? when you think about it we live in a very important time. we live in a time much like the founders. we live in a time where what we're doing today will affect generations into the future because we have an administration, we have an administration that has said, many times over, that if congress doesn't act he will act in their place. it is attorneys general who recently brought an action against the president's up lawful immigration plan. it is the attorney generals of 26 states strong said to the president you can not through executive order do that through which congress is only empowered to do. it is attorneys general who began the battle in 2010 against unlawful unconstitutional piece of legislation called the affordable care act. it is oklahoma who began the effort in september of 2012 that challenged the unlawful action of the irs when they disregarded 37 states decisions
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not to set up health care exchanges. that decision is coming out next week, if we win that case the affordable care act will be inoperable in 37 states across the country. [applause] we live in a key time. we live in a very key time. let me tell you how. first and foremost we have a reimagining of first amendment principles. there is a battle that is ongoing that you have heard about already over the last couple days and involves religious liberty. we have individuals in this country who believe that your first amendment rights of free exercise is no more than a right of worship. many years ago i attended, i was in romania visiting with churches there we were there on a mission trip. i was working with individuals that had been a part of the revolution. and i went to a church and i looked up on the wall and i saw pictures of pastors from the 1950s and 1960s. i asked the person i was walking
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with i'm a little confused. i know who was in authority in power through the 1950s and 1960s in romania. i see pictures up on wall. did you meet and worship during that time frame? the person said, yes we met every week. as we met in worship there was always someone in attendance from the government who listened to everything we said. if we exported outside of the four walls of the church that which we were taught insides the four walls of the church we were arrested persecuted, prosecuted. there are people in this country today, one person on democraticket for president who believes our first amendment rights only guarranties you the right to worship on sunday and not live out your faith in the public scare. . .
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the freedom from religion foundation. freedom of religion versus freedom from religion. the organizations that they are engaged in a lectionary across the country. there engaged in politics. in 1954 the irs to determine responsibility to say he cannot endorse a candidate from the pulpit. never have they reached into content. the organization believes out of
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psalm 139 and the advocate principles we should value life in the moment of conception but that is considered -- the third admission brought a lawsuit against the irs. and they tell you it happened. the irs set up a lawsuit. i sent a letter to the irs late last year looking for a copy of the settlement. i wanted to do with the iris wanted to know what the iris agree to to dismiss the lawsuit make it go away. i know this will shock you but i haven't heard from the irs yet. let me say to you it is exemplary of what an issue government uses its power to stand unapologetically unequivocally to protect it for the future. [applause]
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that it's not just a reimagining of first amendment rights this administration is about. it's not just religious liberty. it is not just the administration looks at right that the freedom of exercise. rule of law is a special thing. it allows businesses and individuals to know what's expected of them. it allows them to know that they can plan and allocate resources and higher personnel and deploy capital. an administration takes this statute until an executive agency to change the statute that creates instability. immense capital is not deployed. one of the first things entrepreneurs look lot across the globe is whether they are assets or investments protected by something called rule of law.
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it is all because of a president who says i've got a pen and i've got a phone. he's changed a lot with the affordable care act. he's using the epa to pick winners and losers contain fossil fuels are back on the renewables for good and he's about the effort changing our confidence in rule of law. we are fighting this titles and winning. it's an important time to do so. if we do not see them for worldwide today and executive power expended on palm events in our system. it's been a consequential time to be serving. a quote by teddy roosevelt that i will share with you. in any given situation the best thing you can do is the right thing. the next best thing you can do is the wrong thing. the worst thing you can do is
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nothing. as we had in 2016 and see the debate wrapup for who the nominees or republican parties we see the presidential race taking shape. i encourage you to fight for religious liberty. pfeiffer will applaud. recognize the time you are in assuming the generation future much like the founding generation knew at the time. will matter to your children and grandchildren. it will matter to the world and i promised in the state of oklahoma as long as i'm attorney general who will join with other soldiers across to make sure until this president leaves the white house the constitutional framework is protect it, rule of law preserved and religious liberty other first amendment print both are fans. just as the founders would've wanted it. thank you so much. god bless you.
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[applause] >> ladies and gentlemen, welcome to the stage strategist and pollster glen bolger. [applause] >> in mourning. when my friend ralph reid asked me to speak at this years conference come he said i want to give you a detailed overview of the political environment the 2015 primary election and demographic challenges facing our party. i've only got 10 minutes so let's get right to it. where is my presentation. it is on the side. there is back over there. one of the things we face in this country is the hyper partisanship.
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there are no longer republicans who will vote for democrats. no longer democrats who will vote for republicans. turning out the base is so crucial and because there's more democrats than republicans, we have to make sure we win independence. when you look at the history by party, no president has a larger gap than obama and that carries over into politics. make sure whatever you do come next november and get your friends and neighbors who think like you to get out and vote because we need every vote to keep hillary out of the white house. [applause] the attitudes of the voters are mixed. in my company we call this the young effect in terms of how people feel about the economy.
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sometimes they think we're doing good in other times not so well. you can see right now people think the economy is in the blog. it is interesting democrats say the great recovery we've got that the public isn't there and that is something when you are talking to voters middle-class voters that you need to stress we need a change from the direction we are on. when you look at issues, the economy and jobs is still number one. national security is increasing significantly. look at january 2014. 3% to double digits. that's a significant increase. among republican voters you can see how much concern about national security issues has risen. so that is going to be a key framework. it's not the only party d.c. jobs and economy still very
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important. and in issues important. national security issues have gone up significantly. voters look for a change more now than they were in 2008. a candidate of change, people want more change. we have this great opportunity with the political environment on the road to 2016. were you also see -- i'm having a hard time seeing this. among republican voters, right now they say it is more important to have a candidate who can beat the democrats than one who agrees with them on issues. we will see what happens in the primaries of people vote. keep in mind as you work for the candidate of your choice i hope you getting your states and do that that you will hear a mix
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that. that is going to be very important as republican voters make those decisions over the next number of months. it is not that close. i think hillary is going to lose to bernie sanders and iol. i think she will lose to bernie sanders in new hampshire and democratic primary voters will go all my god what are we doing here and hillary will panic and move further left and she will bounce back and win the nomination. and then look at the republican side, how wide-open things are. we have never in my lifetime and you can tell from the grey hairs it is more than an election or two. never seen anything as wide open for the republican nomination. in 2012 there is a different front runner every two weeks until that romney got his act together and pulled out ahead.
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here it is just wide-open. if you've got somebody you believe it somebody you feel strongly about, there's a lot of you can provide so when you go home from here get very involved in their campaign. to get hillary and democrats. there's times where she's been popular and if you notice now in this tracking poll positives and negatives are equal. the more political she is the worse her images. she is going to be pulled to the left by bernie sanders and mark o'malley and that is what we see here. she won't answer where she stands on important issues and won't take questions from the press. she will only meet selected paid to democratic activism that will hurt your image. so let's talk about the electoral structure of the campaign.
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one challenge republicans base if this is not the same elect to read and we have to recognize is that elected ronald reagan in 1980 and 1984. not the same that elected george h.w. bush or george w. bush in their election. that romney did well enough among democrats and groups that if you were running in the same voter poll issue in 2000 when george w. bush won he would've not only won the presidency, he would've won by more. it shows you how america has changed more minority voting, make it a larger percentage and republicans don't do that well. that is why we hear from candidates this year, stressing their support for making cameras or latino voters in african-americans which will be tough but latino voters in
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particular is extraordinarily important. the republican nomination is wide open. one thing to keep in mind as this is not determined by four saves. it is not decided after iowa new hampshire, south carolina florida and nevada s. well. i states but who's counting. in 2008 the republican nomination was wrapped up in march 4th. 2012 it wasn't wrapped up until may 29 and that is when "the associated press" that mitt romney has enough delegates to be declared the republican nominee. given the republican convention has been moved up to july, once we have a nominee we need to unite data quickly because hillary is going to have not a free run.
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i am predicting she will loose paella in new hampshire. but she is going to have a unified party and we have to make sure we do the same with the republican nominee. one thing to keep in mind as we cannot rest on our laurels from 24 team. what does the election results in 2014 has done a lot to help this country. what does it mean for the presidential campaign? absolutely nothing. liquid 2010 meant for 2012. look at 1994. the republican revolution. though clinton comes in and wins a huge victory in 1996. don't assume the political environment in the makeup of the electorate is going to be the same in 2016 as a once in 2014
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which is why it is so important to give voters who agree with you to turn on a boat if they think about not doing it. nothing more important for me nuts and bolts standpoint. that is the overview and believe it or not i go back the balance of my three minutes and 46 seconds. thank you. [applause] [inaudible conversations] >> please help me welcome the president of the american enterprise in the two arthur
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brooks. [applause] >> what an honor to be here ladies and gentlemen. and it's a delight to see you here today. those who are patriots looking forward to the road to the majority. i'm president of the american presence is here. i live in washington so you don't have to. what is the big political story in america today? to read the news it's all about republicans in a crowded field. the true political story has nothing to do with republicans at all. the fact of political left in america is radicalizing quickly. but could the democratic field. the socialist running for president in his acceptance speech that quote, you don't necessarily need a choice of 23 underarm spray deodorants.
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or 18 different pairs of sneakers and children are hungry in this country. i taught economics for a long time. i can tell you that most starving children have no choice of sneakers. that is not the main point. the main point is the whole left is moving left calcify grievance and rage. what do we do when that happens. we can do the same thing. strike back with their own greed and and on the nature the opposite. we can show what is written on our conservative cars and when the country for a country that needs us. that is what i want to talk about with you for the next few minutes. to be honest there is a problem with respect to how people see conservatives. you know this is true.
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an interesting associated press poll asked americans to say whether or not the word compassionate oran compassionate characterizes the republican party. i'm compassionate beat compassionate allotment to one. if you get rid of the paid staff in republican party and blood relatives, backgrounds to zero. that is a problem. if we can change this right now while the left is getting angrier and against people, the country is ours. our movement wins. to do that i suggest you that we need to do two basic things. number one, fight for people. stop fighting against things all the time. the first presidential election i paid attention to what saint ronald. reagan obviously.
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it has a little bit of a cold fantasy. you know you love them as if he were still here. we tend to forget the real break in magic. we remember reagan as fighting against regulation against government, against bureaucracy, it didn't stay ways and those were things he spoke about to be sure. the real break in magic was he was for people. at the time in the 1980 election jimmy carter was very much like the current inhabitant of the white house. the country was in malaise. our best years are behind us and reagan reject that. he rejected that with positivity by being pro-people, by saying it was morning in america.
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accepted his nomination in detroit in 1880. sad city these days. in his speech, the number one word he used was people. he said 87 times in his acceptance speech. that is what we get to get back as we look across the political landscape at the radicalizing laughed. americans see the light falling back and somebody's going to rush into the breach. if it is us, we went. shift every one of your arguments away from fighting against things they ship them out to fighting for people. this is not a cosmetic difference. think about what we are angry about. you are not. selenide. think about the thing we like to lease a neocon administration. here's a radical thing i suggest
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to you. stop fighting against it. start fighting for the people adversely affected by the affordable care act, a.k.a. obamacare. [applause] think about it specifically. if that goes unchecked 10 years from now you will be fine. the selenide. the people not here who are poor are going to have inadequate health care had no choice 10 years from now because of the bureaucratic economy. somebody has to stand up for the people who might not even felt like us. site for the people at hursley affected by the law. i know you were warriors for education reform and it drives you crazy we have an inadequate education system in our country. why?
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because you hate teachers unions? if not fighting against teachers unions anymore. it is fighting for poor children left behind in this country. [applause] site for kids not against unions. pfeiffer for people, not obamacare. you work on the same side as ideas. they say that reminds me of something. it reminds me of the person who put the conservative movement on the map politically. once again let me remind you it's not the people sitting here. free enterprise and american greatness are for the people who don't have our privilege as their fate is to send have gone
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into the top 10% of the income distribution. the wealth has gone to the rich. meanwhile, the poorest of the poor are behind the administration. they need you to fight for them. january 2009 32 million americans on food stamps. 48 million americans are food stamps. so poor they have to rely on their own government for sustenance. that is the fruit of this administration in ideology and someone has to fight for them. if it is not you nobody. we fight for people, not against things. fatah faction item number one.
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number two remember what it is people really need. you know it in your heart but it's time to talk it over italy. my colleagues and i are not just a think tank. we are in action tank. we spent a lot of times and one of my favorite places believe it or not is a homeless shelter in new york city. the most unlovable members of our society. men, single men who have been many years incarcerated and are now homeless and they come out of prison. they are the people our society doesn't like. they are not sympathetic figures. we have to do something on the fun does it. it's the most successful homeless shelter in new york city for getting people back to work. the lowest rate of prison recidivism. i went there to see what is going on. i met richard.
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i invite my first business one week after richard had gotten out of prison in and come to the homeless shelter. he said he just came out. he did know how to drive a car. ali had was the will to change his life around. i came back a year later. i thought richard again. new man. he had a job. yet the apartment. he was working as an exterminator of bugs. his life was to gather but that wasn't the question i had for him. i said congratulations, you have a job. you have a house. are you happy? he said are you kidding me? let me show you something. he took out his iphone.
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i was thinking to myself come you're happy because you have an iphone? that thing will wreck your life. that wasn't what he meant. he had an e-mail from his boss the guy who runs the manager of the exterminator company e-mail said emergency bedbug caisson east 65th street. i need you now. they need me now. he really needs me. that is the secret. remember why we are here because every person deserves to earn his or her success. that is the essence of the movement. [applause] ask yourself am i a warrior for opportunity? do i believe nobody is a
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liability. people with disabilities, people in prison. do you love people and not to fight for their opportunities? if the answer is yes you are a conservative because you understand the nature of dignity through work and that's what we have to fight for. if we do that, we remember what every single person needs and if we remember what people need right now in the political moment, this political cycle and going forward will change the conservative movement and change the country for good. i know there's a lot to be angry about any temptation to lash out. every night i have a dream about some new terrible obama administration and then i wake up and read the "washington post" and it turns out what happened is worse than my dream. every night. i have to remind myself that
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happiness is a choice. i love this a strategy that we reach out to our fellow man and lift them up and that is what it means to be a conservative. not to conserve my way of life but to bring the best that has been thought and said the love of our society and communities in faith and families in sanctification of ordinary work to give them dignity. that is the secret and magic of the conservative movement. i'm asking you to fight for people and give people what they need, which is earned success. this is just a little sample, part of a broader strategy. the american enterprise institute has a booth. you'll get a little book called the conservative heart, chapter of the new book i have come in now.
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read it and will send you a copy of the book. i want you to work with me en masse to work together to bring the country back. that is the road to the majority. [applause] america needs you to win. america might not know it in every case that you are the secret and you need to win because the country needs to come back. i will ask you to ask yourself and this is the question i have for myself as well. an examination of my conscience i try to do each night before i go to sleep. the president in washington was suppressed nice to me. here's the real question. i ask you to ask yourself. did all of the activism, did all of the work go for less power than me. the answer is no.
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we are not doing the right thing. the answer is yes, get a good nights sleep. if you do it america is going to win because you will win too. god bless you and god bless america. [applause] >> ladies and gentlemen, help me welcome cheryl keithley concerned women for america's board of director. [cheers and applause] >> thank you. isn't it a thrill to be here. how exciting to see so many young people. we need to encourage them in support them and let them up in prayer because america needs
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them. it is my pleasure and privilege to introduce the next speaker was a man that doesn't mean introduction because if you didn't know about him before the 2013 national prayer breakfast where he was a speaker, you certainly knew about him after that. you remember him up they are standing next to the president and criticizing obamacare. ben carson is a true american success story. was raised in a single-parent home by another who never made it past the third grade but she was a strong woman a determined woman and she challenged her children to become exceptional. i guess that were.
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children ben carson beat the odds and not only excelled in high school, but when on to study at the university and after he graduated he worked several jobs before going to medical school. he worked as an x-ray technician, bank teller, school bus driver supervisor for highway cleanup crews and a crane operator in a factory. well-rounded. and then he was accepted into the university of michigan school of medicine and upon completing medical school dr. carson went on to direct pediatric neurosurgery at johns hopkins children's center for 29 years. dr. carson has received numerous awards including the presidential medal of freedom which is the highest civilian honor in america. he was appointed by president george bush to serve on the
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president's council on bioethics in 2004 and was named by cnn and "time" magazine as one of the nation's 25 most physicians and scientists. he is a writer and not there in published a book so far. if you haven't read one of his books yet, what are you waiting for? person has been well known for his speech at the 2013 national prayer breakfast and he's been married to his wife candy for four years and they have three sons. please help me welcome dr. ben carson. [applause] [cheers and applause] >> thank you berry match.
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thank you. i'm delighted to be here with you today. you know, i was thinking yesterday about the terrible tragedy in charleston, south carolina. one of the people who was killed somebody i was talking to a few weeks ago the state senator who along with one of the other members was a cousin of my business manager. these things has so close to home. if we don't pay close attention to the hatred and division going on in our nation, this is a harbinger of what we can expect. i'd like to to take a moment of silence to remember those who lost their lives. thank you.
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you know faith and freedom are topics i like to talk about. there is no time clock by peter, so you will see me checking my watch from time to time. i realized when i was in iowa one of the left wing media said carson kept checking his watch. that's because they give me specific time and i don't want to go over it. they always find something negative to say. that's okay. i find it amusing. when i think about the things that really enhanced my faith, i was a youngster who was troubled. i had a horrible temper. when i was 14 another youngster anchored me and i had a large camping knife and i tried to stab him in the abdomen. unfortunately under his clothing he had a large metal belt
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buckle. he fled in terror. i was more troubled than he was that i was trying to kill someone over nothing. i started contemplating my life. i have turned things around academically. i was a horrible student. through the efforts of my mother making my read i conquered that and realized i was never going to realize my dream of becoming a doctor with a temper like that. my choices were going to be jail reform school for the grave but none of those appeal to me. i said lord unless you help me, i'm not going to make it. there was a bible and i picked up in the rockies versus and i read them and they sounded like they were talking about me. but they were always these verses about anger but proverbs
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1918. no point getting an angry man out of trouble because he will get right back into it. proverbs 1632 and a man who can conquer a city. verse after verse, chapter after chapter, all written about me. i came to an understanding during that time not to lash out at somebody, to punch somebody in the face of not a sign of strength. it was a sign of weakness. it may you could be easily controlled or easily manipulated. i came to understand being angry has a lot to do with selfishness because it's always about me my an eye. somebody took my thing. if you can learn to step out of the center of the equation and let it be about somebody else and look at things from other people's point of view you are not likely to get angry. that was the last day i had an
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angry outburst. it has never happened again since that day. but you know some people say you just know how to cover it up. no. i was hiding a secret. but god fixes a problem he doesn't do a paint job. he fixes it from the inside. that gave me a lot of faith. i talked to god not only is my heavenly father, but earthly father to go to when you have problems and help you in situations. as i was entering my senior year in college i had been resisting relationship with girls, women because i didn't wanted to get in the way of my studies. i said it's probably time to start. i said lord let the next relationship with the right one because i won't resist it.
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pete gave me the most wonderful wife and a couple of weeks we will celebrate our 40th anniversary. [applause] he's available if we just ask him for stuff in terms of our faith. when i was finishing my residency at johns hopkins johns hopkins is a modern birthplace and we were opening a new neuroscience centers of the bigwigs from around the world where they are. one from australia took a liking to me. who says you should come to australia via register in western australia. i said australia coming got to be kidding me. i didn't think about, but that is what i was thinking. you drill a hole from washington and come out in australia. i see now i've heard they had a whites only policy. so i wasn't all that interested.
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it seemed like every time i turned around, there was someone saying they day mate, how are you doing? every time i turned the tv on there is a special about australia. i said i think the lord wants us to go to australia. she started doing some research and discovered they had a whites only policy but was officially abolished in 1968. so we sold all of our earthly belongings and off we went to australia. her friends were saying you will be back in three weeks. little did they know we didn't have anymore money. we couldn't come back. the biggest problem we had with keeping up with the dinner invitations. they love americans and they like to hear your accent. when i went to get an operative now, the ladies that come in and say dr. carson, we can't understand your accent.
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i said excuse me anti-american. you have the accent. [laughter] the second problem every time i sat down to read a chart, someone would come up and they can i feel your hair? [laughter] i would say you can feel it, but it will cost you 10 bucks. i couldn't remember their names because they all looked alike. [laughter] i realize why god sent me there because they were only for neurosurgical consultants in all of western australia. once they discovered i knew how to operate they left me in charge of the major teaching hospital. i was doing three or four major craniotomy's everyday. if i stayed on at hopkins i would've gotten whatever whatever anybody else didn't want to do. i was doing these fabulous cases
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for a year. when i came back talking came back talking to join the faculty shortly after the position opened up normally they would get somebody with a lot of gray hair but they said carson is very young but he knows how to do everything. there i was chief of pediatric johns hopkins. the lord has prepared me for that and i begin to understand how he always prepares you for what he wants to do. i thought it was pretty hot stuff. this little kid came in from georgia and he had been diagnosed with a malignant brainstem tumor and everybody's just told the parents take them home and let them die. they ended up at hopkins. i looked at this game and i said wow, this is awful. the kid was barely moving barely breathing, foaming at the
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mouth. eyes looking in different directions. i said to the parents, there's nothing i can do about this. they said that dr. the lord is going to heal our son and he is going to use you to do it. i said i will tell you why. let's get an mri. they were new at this time. we got an mri and i showed it to the radiologist. they said the same name. they said that dr. the lord is going to heal our son. i said i'll tell you why. you've come all the way up here. i will do a biopsy. one in 1000 times the scans are wrong and maybe this is that time. i open his head up, went on the brainstem with this grayish red mask. i biopsy to. cambric high-grade glioma, a malignant tumor. i take out as much as i dared,
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close it up talk to the parents and sent all the things you normally say. only god knows why people live for so long and may be served its purpose better and will understand it in time. thank you, doctor, but the lord is going to heal our son. i just shook my head in amazement at their faith as i walked away fully expecting he would deteriorate and die. instead his eyes became conjugate, looking in the same direction. i said what is going on. maybe we should do another scan and we did and there is still a big ugly tumor. the consumer then in the corner. if that is it possible that tumors outside of the brainstem and its crushing the point you can't see it and maybe i should go back in? they said by all means.
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i went back and in the nature of the tumor was different. i peeled away layer by layer. when i got to the last layer there was a glistening white brainstem intact, smashed but intact. make a long story short that boy eventually walked out of the hospital. today he is a minister. [applause] interestingly enough one of the oncologist came the oncologist came out to me is that i've always been an atheist, but now i am a believer. it is really for me because i thought i was doing a great thing. i realized after that that it wasn't me, it was not. as the lordcome you be the nearest surgeon. i will be the hands. that is for the title gifted hands came from. god is in charge in a mix of the different than the world in
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terms of what happens. i look at something like the vendor twins, the first set of conjoined twins. i've been involved in several but that was the first that the dead matter before been separated and survived. two months before i knew anything about the vendor twins i just had this obsession with conjoined twins. i started trying to figure out why the results were so dismal. i concluded it was the segregation of leading to death. i started talking to people. i talked to a friend of mine who was the chief of cardiothoracic surgeons. you operate on babies tied somehow to keep them from bleeding out? you told me where you cool the body temperature pump the blood up, operate for an hour public backing and start the harder.
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i thought that might work if we did it at the critical time. two months later, here they showed up being presented all of the world to see if anybody had an idea how they could both be saved. when i explained things we started putting together a team at hopkins. you have incredibly smart people in lots of different areas. you are able to put together the right kind of team. but if such an important factor because there were things i didn't know but experts who did know them. get the people working together towards the same goal. it is amazing what can be accomplished -- you know it turned out well and they both survived and now is the first and only time that's ever happened with those kinds of twins. [applause] god always prepares you for what he wants you to do and that
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really is the key. those of us who are people of faith have to trust in him have to believe he will give you what you need and understand what you are doing. but your stuff so well. you need not be ashamed because you know what you're talking about all the time. i remember a few years back i was engaged in a debate in hollywood with a leading atheist. this guy thinks anybody who believes in god is a total. as they got to the end of the conversation you know he is denigrating anybody who could believe in creation, i said you know what, you win. i believe i came from god and you believe you came from a monkey and you have convinced me. you are right.
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[laughter] [applause] but i mean, what can i say. it is important for us to have a good foundation in terms of what we believe and we have to be willing to stand up strongly for it. you think about the pre-revolutionary days in this country. though saddlers were not happy with king george the third and his dictatorial style. tierney was alive and well. they began to get together in their town halls, bars, living rooms. they even invited the loyalists. they said what kind of nation do you want to have? what are you willing to stand up for and fight for? what are you willing to die for?
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and they encouraged each other and that is how a bag tag bunch of militiamen were able to beat the most old and professional army on the planet. that is what we are going to have to do today. we are going to have to be willing to stand up for what we believe in. the majority of americans actually have common sense. they actually think logically. they believe the values and principles that made this into a great nation. they are afraid to speak out. that is the reason i stand so vehemently against political correct this. people fought and died so we could have the freedom of peach
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and trends beach and expression. we shouldn't give it away. it is the reason i am so vehemently opposed to the so-called affordable care at not because it doesn't work, not because it's all about income redistribution and control but the reason i dislike it so much is because i love america and what america stands for in america is a place that is of for and by the people with the government there to facilitate life, liberty and the pursuit of happiness. what this demonstrates is the opposite. the government comes along and says i don't care what you people think. we are doing it our way. if you don't like it, too bad. that is not america. we must stand up for what america really is.
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[applause] and it's going to really come down to this. are we willing to be called a name to get an irs audit to have somebody messed with your job or your children. see most of us have a tendency to put our head down and hope that nobody notices. so i've got to tell you, freedom is not free. you have to fight for freedom every single day and it is not something we are going to be able to pass on to our children if we neglect to do that. think about the people who came before us. nathan hill started as a teenager, became a spy when he
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was caught by the british and right to be executed, he said my only regret is that i have a one life to for my country. think about that. think about all the soldiers who gave their lives. many cases knowing they would never see their loved ones or their homeland again and they did it for you and for me and now it is up to us to decide what are we going to do with that freedom. and yes, i know president obama said we are not a judeo-christian nation, but he doesn't get to decide. we get to decide what kind of nation we are. thank you so much. [cheers and applause]
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[applause] ♪ >> we compete against each other and i usually beat him. >> the media firestorm. >> one twitter message. >> david and jason nannette -- >> your hearts go out to them. >> if our faith passed up a television show, so be it. >> the war and traditional values. a network of the plug on the show. >> between say their belief cost on the show. the freedom of religion and freedom of speech faces this fundamental question.
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>> you feel as if you are willing to lose everything standing up for what you believe in. you are fired or having an opinion. >> we were fired for having an opinion. we were fired for voicing an opinion. >> we let them know that we love jesus and we love people. >> jesus loves all people, but he does not love all ideas. >> the agenda seeks to silence the violence of men and women of faith. >> hdtv about to give the show christians. >> agenda demands silence especially men and women -- >> are you upset? >> wheeler from the inside out. we don't need media. we don't need other people to tell us how to live. we remember we were 12 years old when we pray to receive jesus into our heart.
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dad said when you give your heart to the lord you've entered the battle between good and evil and when you make your peace with god, you declare war on the devil. the message for this critical hour is love looks like something. lovely as it slides down. love runs for the bullet does not run away. now is the time for christians to stand. >> ladies and gentlemen, welcome to the stage, jason and david then i'm. [cheers and applause] >> thank you. you guys are awesome. i'm sitting backstage. when ben carson walks on the stage of the media following. we have preachers not plummet, we are not profit. we are normal people like you guys and we have a message for christians that today is our day to stop the lightning bug and
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start being lightning bolts. this is the greatest time ever to be alive. right now it's the culture is getting darker, our light can shine brighter, like a lightning bolt from heaven coming down to this earth. this is what we are so excited about and why we want to be here. we have the opportunity to speak over the country dr. james dobson. and they told us we need you to fill in. so we walked out on that stage and i said my name is dr. james dobson and this is my wife shirley. after we got canned by hgtv i want you to know we are so encouraging what is happening in
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america. one of our top banking client resolver closures for years, we flipped houses for years, but one of our top banking clients fired us. they withdrew all properties to properties from franchisees. we had a hundred locations across 35 states. we reached out and said hold on a second. is this because of the media firestorm and they give us the heisman trophy stiff arm. we said we are going to take this public. it hit the drudge report at the top 10 the top 10 in eight hours we had a personal apology from the president of that tank and here's what's really cool. our media report shows 51 million tweets were delivered about that story. that bank got by america and said either properties back. they gave us all of our properties back. reminds me of mr. chuck yeager when he broke the sound barrier the first time. it felt like the whole plane was
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about to break apart. the links would fall off and all of a sudden broke through it in a supernatural peace that surpasses all understanding is right there with them. we see the shaking in america but we truly believe the great awakening is coming and we need to stick it out in dan bolt for jesus. [applause] as they travel the country what do encourage you guys. the revival has 30 begun. the spark is here and now we have to do is join it as creation. now is the best time ever. david and i travel and we want to encourage you with we need to stand with politicians and preachers and spiritual leaders and encourage them in one day. let's concern ourselves with reverence to god and not reverence to culture. if we are reverence to god, bellavance will follow in its wake. a man named noah know little
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more about noting that road than any of us in this room. no in reverence built an ark to god. just imagine for one second no one is building a boat amidst all the godless people and someone walks up to him and says noah you have been doing this for 60 years. what are you doing? building a boat. for what? it's going to rain. what is that? it had never read before. no one honors was more relevant than no one appeared guesswork the first half of rain that hit the ground, guess who was the most relevant man on the planet? it was nowhere because he was led by his to almighty god. that is what we are here for today. ..
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gets warm romantic, heat your house -- >> you might want to stop there. [laughter] >> i'm getting flustered. once it gets out of the fireplace it destroys the house and hurts the family so we have to be willing to stand on those boundaries and as god defines the boundaries this is why you will see the heritage of the nation on the judeo-christian values of the bible we can to be afraid of that yet we will enter the fray if we begin speaking like that. >> lets me interrupt you. two words you have to remember when you are labeled peter, they get, whatever, two words so what. you can do the hash tag in front of that if he wants you.
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what is the worst that could happen? it's the greatest compliment you could ever get for someone to ridicule you. that is the greatest compliment. god determines gender and identity and blessings cannot be found apart from god's boundaries. when we got off one of our interviews we got off one of the interviews and i said we are getting cold all kind of names and did they say they are going see it they are going to screw your mouth shut? then so what keep speaking. but i just wanted to tell you something. you shall know the truth and the truth shall make you free. we were entrepreneurs and job creators. what have you been doing?
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it's one of the groups that we sell a lot of properties for and tons of employees we walk in and the human resources manager meets us and says we are going to walk around the office and i want you to know there are people in this office that really don't like you anymore because they watch the news. we've been selling properties for a long time. turns out the human resource manager was a homosexual and jason and i had a bowl with him. we have so had so much fun. we went to the break room advisor asking questions about his life event her thought he was struggling with things. all of us have broken those boundaries and we've all had a tendency to want to pull the boundaries down so we can act like we want to act.
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i begin to open the scripture and you know what happened about 30 minutes with tears rolling down his eye as he bowed his head and surrendered his life to jesus christ. [applause] the truth can come in to set people free. we can't allow the labels that were given in all these things to keep us out of the plight. let's wear that label they give us and in chapter four, peter and john were being threatened by the leaders of the day and of the culture of the day was you
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do not speak about this man. so they got together and prayed for one thing. they said take note of their threats and granted at that your servants may speak your word with great boldness. let's pray a prayer, we love you, we praise you, worship you we thank you for every person in this room and i pray a spirit of the penis over every person in this room and over our pastors and politicians and i pray that you would do something awesome in 2016 and every person in that room walks out a lightning bolt for you in the name of jesus. [cheering] >> ladies and gentlemen please help me welcome to the stage the president of the high office university in ohio fabian freedom chair.
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[applause] >> there are a few people in life that are able to get things done. i've watched in the state of ohio as the governor has taken an 8 billion-dollar deficit and turned it around the $22 billion surplus. i watched as he has replaced every job that we've lost under the governor with 360,000 new jobs. i watched the governor as he has also worked from principal matthew 25 in reaching out to the poor and extending a hand and offering a cup of cold water. ronald reagan was my hero first time i got into politics. ronald reagan was known and i would write books and study leadership.
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to do. there's 100 pages of latin which i did over the course of about a week and i qualified it remember my first math and i did it for a number of years i went to public school but it was kind of deeply involved in the church and and then around 9% grade, one sunday a commentator, and i don't know how many of you know what the commentator is that the person it's a person that stands at the podium and does reading and announces the hands and everything. the commentator didn't show up so the pastor of the church said get out of those clothes go put on the polyester jacket and go down there and lead the folks. so i got on the podium and i could see my mother sitting out there and she started to wonder what i was doing and i said it's okay. i got up and i was a part of that service and did that for a number of years.
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one sunday we were doing this and one of the things it was tough enough in the public school all of my friends were watching me and i just didn't want to sing and i announced the closing and the organ started to play and the priest was coming down off the altar and nobody was singing to me i shouted to stop the organ and the organist to stop playing. i looked at the people and i said why do you go to church sex do you go here to be a bump on the wall? the lord loves singing. would you pick up your books and turn to page 48. so if you want people saying and then that's the end. a little lady walked up to me
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and said i love to sing in church and particularly the closing hymn. next time would you please give us the right page that it's on? [laughter] and it's been awfully most that way most of my lifetime. as a kid, as a young man in the church and in my life i felt the lord. he didn't speak to me, send me an e-mail or phone call, but i told him. like many young people, the word became a rabbits foot for me. pull it out on test day on election day. i've got the rabbits foot. then 1987 the great theologian talks about life as a vale of
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tears and a severe storm hits my life and front-end to wash me away. i wrote a book about this and it's called every other monday. many groups in the country have used this book. when that happens and that the storm hits i wasn't sure how i was going to survive. i reached out and i held onto all i knew and i said i don't know what's going on here. the minister showed up and we talked and he said to me they are due you stand with the lord? as i buried my mother and father i reflected on it and he said to
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me there is a window of opportunity right now for you. you're hurt and your pain will disappear, that you have an opportunity to find out who you are and where you are and i started at ground zero. is there such a thing called god? does god know me and know my name will he answer the? did jesus live on the earth and was he really the son of god? and i tore it all apart. no more rabbits foot for me. i've got to get to the bottom line and either ibb therefore i don't. that was 28 years ago. for 28 years, not quite like
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jacob i've wrestled with it all. and the more i wrestle, the stronger i get. the more i wrestle the stronger the foundation that i'm trying to build my house upon. i didn't come here for politics. ralph reed asked me to come here. i was in utah the other day during an interview with a young woman and she said that sometimes you talk about faith. a lot of people don't like when you talk about faith. she said why do you do it and i said i will let you in on a little secret. the storms of life will come. it's inevitable. the lord is there to be with you, to support you, to give you strength.
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over the last 28 years, i've been set free. people say he takes the position sometimes we don't understand it. i will tell you what the lord has done for me. confidence strength and all the criticism. it doesn't matter a whole lot to me. i know the role i have to play on earth. to lift people and realize that all of those that were made in the image of the lord needs to be upheld. we know we need to love our enemies. that's a hard one. we know we have to be humble. we know we have to stand for the poor and the widowed. god bless those people in south carolina. they are playing for the game just like i am.
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i have a mission and a role on this earth that i am trying to prepare myself for the world is yet to come. one of my heroes send as you live your life on earth argue prepared to run the five cities for the lord in the kingdom yet to come? i talked to a lot of young people and you know what i told them? you have a gift. there is nobody like you. i don't believe in shoving my views down anyone's throat. cs lewis in a book i was reading last night said he can't even live up to his principles, and i don't either.
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but what i know is every day i have a new opportunity. but what i told these young people is the gifts are different and unique to you. the key to life is to unwrap those gifts whatever they may be and use them to change the world. to make the world a better place. and you can tell people about that handbook. it wasn't here to tell us what we should do. if the handbook has told us the way to lead a successful and meaningful life and his blessings come. i've been struck by lightning since the day they told me to the podium to be a commentator for the church. i was elected to the legislature
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26 years of age. my mother and father couldn't believe it. they didn't even live in ohio. in 1982 at the age of 30 i got a chance to go to washington and work with ronald reagan and so many other great people. i became the chairman of the budget committee. my dad carried mail on his back my my mother's mother couldn't speak english and my father's father was a cool minor, and johnny is in washington and? i was one of the architects of the balanced budget and we paid down the debt and the economy grew. i served on the defense committee putting in the resources so that america could be strong and it needs to be strong today and then i left.
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i wrote books and worked in business and works in business and i couldn't believe i was on fox. i was a big star you remember but i got a calling and i've been telling them repeatedly joe and i didn't want to go to nineveh. but when you are called in whatever way you said it you've got to go. so i became the governor. the first to beat an incumbent in 36 years. i had never even run statewide. how did this happen? the state is about data. people were getting crushed and losing hope. not today. growing jobs and most of portentously. -- importantly. if you are mentally ill we are
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not locking you up in prison if we can avoid it. we want to treat you and we want you to be on your feet with your god-given purpose. we've been criticized for this by the way. the drug addicted to be in your family. get them treated and on above their fees to live their purpose. [applause] the working poor we want you to get decent health care and guess what, we don't want you to be poor, we wanted to graduate from the poor. if you are a minority, we are going to include you and left you. if you have a son or daughter who's autistic you are going to get insurance. we are not going to bankrupt you i won in ohio 86 out of the counties, 60% of women and 51% of union households with one of
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the largest victories in the history of the state. why did it happen? folks returned but there's another thing that happened. we haven't been able to do little. but everyone is respected. everyone is made in the image of the lord. everyone has to be given an opportunity. everyone. that's what has to happen in america. and this tragedy that has all of us crying and many bleeding represents a vicious division that can be healed. you just have to get back to the basics. you know as a kid the son of a mailman by mother and father would always say johnny you can
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be anything that you want to be. that's the american dream. anybody, black, white, yellow red, doesn't matter. everyone has a chance to live their dream and fly. it's all about hope. it's all about unity and uplifting people. it's about showing the better end of the kind so that everyone even understands the critical value of personal responsibility and resilience and empathy and family, the cornerstone. we've done it in ohio. it's a big state. it's an important state. i'm here to tell you it can be done in america. whatever you desire.
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don't fracture, don't decide to give hope to unify. that's the formula for strengthening the beautiful and precious united states of america because when we lift up all of us as individuals, we come together as a part of a beautiful, beautiful mosaic to form the most hopeful important and greatest leadership country in the history of the world, the united states of america. god bless you and thank you. [applause] >> ladies and gentlemen please help me welcome the president of the american alliance for jews and christians. [applause] ' in 1774 september but you're
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the first continental congress opened with a prayer and it was the 35th chapter of the book of psalms. and what this did was to reaffirm something that the world had already come to understand which was that america was founded by old testament christians. this is by did 50 years ago they wrote that the foundations stones of america was cemented with hebrew border. and what is it about the testament that distinguishes the old testament? one of its interesting characteristics is that it is heavily redolent with sax and
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money. it's like the pilot of a tv show. the details, my goodness. we know all about king david. we know him and even about his origin. there is far more information than there is on the sacrificial rites. there is more than there is about the dietary law. it comes to the opening scenario the garden of eden where we find a very gracious and happy god who completes everything with a statement of god saw that it was
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good. and then all of a sudden for the first time, god gets grumpy and he says it's not good. what's not good? is not a good for man to be alone. now ancient jewish wisdom reports but there's far more than a prescription for the matrimonial prospects. not good for man to be alone means that those that are lonely and isolated or destructive to society. whether it's a human bomber ted kaczynski are this weeks dell -- dylan roof.
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god says we have a solution to make this problem go away. it is a difficult problem because other than for a tiny handful of teenage technological tidings the leadership of business in america is in the hands of married people in fact the only been a -- the only arena is in america's system of incarceration. single men need wives desperately and so when god says it's not good for man to be alone. >> how about the money?
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by the stretch of your brow what is it other than the quest for all of us to eat as much as possible with as little effort as possible and when he says by the sweat of your brow but he is saying is the explanation for why in many cultures dislike the term is can you lend me some dough. that's where it comes from. so the garden and even depicts the whole story as far deeper than the superficial translation it is a depiction if it isn't good for man to be alone, how do we best orange band -- orange man not to be alone? by attaching to a woman and
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being committed to one another, loneliness goes away and almost any married man knows who writes the thank you letters and his family. [laughter] connections and families are maintained by women. communities do not connect with one another. everybody knows the extent to which the business connections expand far more through his wife then through the golf course. and so out of bed for after good for man to be alone, get married , and work on trying to make money. now a word of advice do not date a man with no financial ambition, please. don't do it. god builds financial in man and
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that is the story of the garden of eden for the purpose it's a valuable thing. how many of us have )-close-paren because they are people that traded with whom we've done business for many years. one builds relationships through business and yes business assists relationships as well. they go hand in hand. and it's not a surprise that in the official state religion of the fundamental secularism the only money that is acceptable is by force and that's being created by three independent men and women doing transactions with one another, that is agreed no it isn't. it's a measure of the extent to which you've served and the only
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way you got the money in your pocket is by placing another one of god's children. [applause] and the only form of sax that the official secularism despises is that described by ideal in god's book. all other forms are highly desirable and indeed brave and courageous to practice. but what you and your spouse do and what they did when they invaded spain in the eighth century, they obliterated every sign of christianity and that is what fundamentalism does as it conquers the society is a
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fervent revived christianity. [applause] we need to restore the biblical understanding of money making money is god. traditional money is good. and the message we need to convey to the priests and pastors and preachers of the secular fundamentalism is for 50 years we've done it your way. now let's do it our way and has way.
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[applause] >> please welcome to the stage that freedom coalition ralph reed. [applause] >> how are you doing? are you having a good day? [applause] i wish we could have gotten a better lineup of speakers. [laughter] when you start off with chris christie, the senate majority leader mitch mcconnell and just keeps building from there. so thank you all for being here. i am pleased to introduce a good friend of mine and yours who by the way presided at his wedding and officiated his wedding to his lovely wife 30 years ago.
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he's one of the most articulate one of the most compelling and one of the most intellectually capable voices for our values in america today. he hosts a three hour radio show on 200 stations across the country. it reaches 4.7 million listeners and has made him one of the top ten political talkshow hosts in the country. his most recent book the ten big lies in america was a national bestseller. his columns appear regularly in the pages of "the wall street journal" and usa today where he's a member of the board of contributors. he attended and graduated from yale university and law school where by the way he was good friends with bill and hillary clinton.
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they went in a little bit different action. please join me in welcoming a great friend of not only freedom but the faith and freedom coalition. [applause] >> many of the speakers were talking about basically the terrible state of the country was in. so i thought as an antidote to that i needed to begin the way that i began the radio show every day. and i'm going to be getting the radio show broadcasting from here this afternoon. but again i say in another great day in the greatest nation on god's green earth. [applause] and i want to tell you why this is a particularly great day for
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religious faith based conservatives and why it is a great day for me personally. for people who believe in god and belief that god has given a special mission to the united states of america this is a spectacular day because this week for the first time since 2007, there were freed in america went up. did anybody notice that? though it's worth celebrating because it doesn't matter if the child is born rich or poor or black or white or latino or anglo or a shame whatever the child is. every new life is god's vote that the human race deserves to go on. [applause] and it's a beautiful thing. and there is more great news,
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which again we should celebrate. we shouldn't ignore it. on the issue of abortion, this week yet another shows that americans are angry sing the cause of life back when roe v. wade was adjudicated the majority of americans describe themselves as favoring without restrictions. was publicized everywhere this week. what percentage of americans say they favor abortion with no restrictions? 24%. 3-1. the american people want more limits on the killing of the unborn. [applause] and that's a beautiful thing. but even more beautiful, the rate has gone down dramatically in the country.
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in 1980, one out of every three pregnant east end in abortion. can you imagine? of miscarriage. so if you add miscarriage it was close to half of all pregnancies would not result in a baby. today it is and one out of three. it's below the one out of five. that is real progress. that is progress for the pro-life movement and those of us that the leave that every child is a gift from god. i also mentioned was a great day for me personally and the reason is it was a great day for me personally those that listen to the show regularly note that this is the first time i traveled around the country into the first time i'm giving a major speech to a group like this.
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i was diagnosed with throat cancer december of last year. what kind of cancer do you get naturally god had a sense of humor, throat cancer. i had to miss 11 weeks on the air but thank god i've been back now for eight weeks. the fact that i'm now officially cancer free, thank the lord. [applause] and i i've even gotten most of my hair back which is a nice thing. what does that have to do with what i was talking about with the pro-life movement and abortion? aside from the fact i'm grateful that my parents that were very young and thank god they didn't
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decide to terminate me. of course it was illegal then, but aside from that, when i announced on the air i was going through chemo and radiation treatments and i was on my fifth week of radiation treatments when i finally decided i had to announce on the air that i was having a problem my voice was sounding down and when i announced it on the air the first hour that we announced it we got 25000 e-mail letters and people contacting us. and with most people wanted to do is they said we want to pray for you and a lot of people said you are a jewish guy. do you mind if we pray for you in our baptist church or catholic church or pentecostal church? my reaction was of course not.
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do you think i'm crazy? it uplifted my spirits. there were three different churches churches that certificated masses in my honor for my recovery. it's a beautiful thing. it's incredible. and by the late with this relates directly to the success of the pro-life movement because it breached overall divisions in the country. orthodox jews working with mormons, people of every faith coming together on this principle. and the idea is beautiful. once upon a time there were anti-catholic riots, they were burned alive in baltimore and philadelphia in the 1840s. and today we can work across religious lines. why? because we have a conservative
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idea but it's not a zero-sum game. i have a chapter from a book which is about how i went from being a liberal activist and one-time study partner in law school, how i went from that to being a curmudgeon that i am today and one of the chapters about the lesson that i learned is that a more christian america is good for the jews. and why is that? because there are so many people that are lost in secular, it's a terrific thing if people embrace any serious faith that comes together. it's the same idea that conservatives are able to say you know what if my neighbor makes a ton of money it is not a bad thing for me. it is a good thing.
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there isn't a zero-sum thing. people say when the rich get rich and poor get poorer do you really believe that creating wealth causes poverty? if you believe that creating wealth causes poverty, you are an idiot. [laughter] sorry. if you believe the one church will somehow hurt another of course it doesn't. last word let's apply the same principle we can come together on the campaign that's going on. the other side wants to divide us into the key party establishment. we are in this together. i know that carly is speaking later in the conference.
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we are grateful to have them. we can work together. now at some point we are going to choose, that is the point between good choices. none of them are on the other side. so let's go to the spirit of our friend in that spirit let's go out and work together and understand that all of these candidates can't risch and contribute and then we will come together at the movement across political and religious and economic lines and we will go out there and win. thank you very much for your attention. [applause]
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with the resounding victory in the senate bill the elected david perdue as the georgia senator. the junior senator from senator from georgia has already made an impression on washington d.c.. for reebok and dollar general to provide real-world expertise to the committee budget, foreign relations committee to show and commission on aging. he's been married for 42 years
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two sons and three grandsons one of which we were lucky enough. please welcome to the stage by senator from georgia david perdue. [applause] we are so proud of that we have a few people from georgia here today. [cheering] i was resorting on family farms and worked my way through college and became a ceo.
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for our children and children's children i am a working miracles. i shouldn't have won this election by most estimates. but if you think about it there's a little story that i like to tell that explains the mood of the state and i think for the mood of the country right now explaining how i was no background ran for the senate in the field and actually one. god has a sense of humor and i can't wait to get up there and find out why. this story speaks to the mood of the state. it was made before the primary. we have tivo in a crowded building down to georgia south of atlanta. i have a speech tonight nervous coming and i'm walking into the restaurant. we have 100 people on the back and lay open before and i'm holding the door to go in.
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she said you're running for something and i said yes ma'am. spinach is that i have one question for you. have you done anything in washington? no. you've got my vote. it didn't matter what i said how i loved. it made her mind and that is out up and that is out there ladies and gentlemen. we know some is wrong in washington. it's broken. [applause] to offer the real-world commonsense solution in the last 100 years. we have a democratic super majorities in the past 100 years they've given us the new deal the great society and any reasonable person can look at the current financial catastrophe and put the defeat
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through most of the responsibility of the situation that we have right now and this speaks to what we have to do next year. the time is that this policy in the movement of the last 100 years failed the people they claim to champion, the working people of america. today we have fewer people working at any time since jimmy carter was president and by the way i'm from georgia and the best we got was ronald reagan. but we have fewer people working today. networks are down almost 20% and worst of all in the last six years while the administration doubled down on the big policies
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we have a crisis and i have three components i talked about when we talk about this crisis. the first is we have a constitutional crisis. it is at the future for the next 50 years if we are not careful he's going to continue to do that. we are choking the life out of the free enterprise system. we have to get back for one thing we know and love and that is our beloved constitution. in that constitution it has four very fundamental principles and we forget these.
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in this response ability and a limited government. i'm going to fight every day before we get back to the principles of the constitution the second area that i want to talk about we have a global security crisis. i've made two trips to the middle east since i've been in office. i've been on the front line in afghanistan and iraq and i can tell you the very best of america is in uniform fighting for freedom every day for you and me. [applause] we have three areas that are really a problem. we have the traditional rivalries, china and russia they doubled their investment in the military the last few years and we don't have a strategy. the second is of our own making.
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they prematurely pulled the troops out of iraq and created a vacuum through which we face a tough decision of dealing with isis or were waiting to suffer the consequences later. the third area and maybe the most dangerous is that we are on the brink of having to deal with a nuclear iran. i'm here to tell you today we cannot have iran become a nuclear weapon state, not weapons state, not now, not in ten years, not ever. [applause] the third area that i want to talk about in terms of crisis we just don't have a strategy in the middle east. we don't have a foreign policy. to have a strong foreign policy coming to have to have a strong
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defense and to have a strong defense you have to have the economy. we are on the verge of having the smallest army since world war ii the smallest since world war i. when the military is facing more diverse threats around the world than any time in my lifetime, we have treated our own in a world where friends don't trust us and enemies don't fear us. part of the problem in the last six years this administration has spent the money running the government of that we bothered 8 trillion. that means every box of ammunition every airplane, 40% was borrowed. it's so crazy that it puts into jeopardy this treaty we have in the world right now that says we have to go to their defense. one of them is taiwan.
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if it is attacked by china, we have to go to defend against china but to do that we have to borrow the money to go at the same time against china. now that's absurd that it is the absolute truth. the admiral former chairman of the joints of staff say our federal debt is the greatest debt to our own national security. we have to fix that and that is the third area i want to talk about. i'm an outsider in the process that i see this so clearly. we have a full-blown financial crisis of our own making. of interest rates how many remember double-digit? i don't want to go back there. if if they are only 5.5% we would already be paying a trillion dollars. that's not manageable that is twice what we spent on the
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we need to actually create a level playing field. [applause] the second area when he did his pushback on the regulators. the third area. i don't believe for a minute that god has brought us to this point to fail and i have evidence. look at what he's done just in the last few years with our energy. we are already here we just don't use it. we have every opportunity to be -- we have to have energy security and have basically the cartel for the next 100 years in north america. we need a solid energy policy to
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do that. i'm trying to bring commonsense solutions appear. but i tell you the other thing is we just don't have a sense of urgency that we need to get at this crisis. i've never been more encouraged or hopeful that we have to balance the budget and do away with this selection of the money. and third, i put a bill in the first week i was here to develop a sense of urgency that sense of urgency i cosponsored a bill that would bring term limits. [applause] i'm not at peace with where we are and i know that you are not either. the poll told us be anxious for nothing but through prayer what's your request down the date could be known. guard your heart and mind and
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ladies and gentlemen, that is a call to action for you and me right now. to give thanks. but in the other message that comes out as we've got to move. we've got to act. time is short and i believe that our call to action right now is to make sure that we get our conservative values put back into action, ladies and gentlemen. we have to hold the senate. we have to win the white house and we have to put our values back at work and stop this presidency but most of all, we cannot allow hillary clinton one more night in our white house. [applause] we have three grandsons to the oldest is 4-years-old. he figured out how to face time me. he loves to do that and i want to tell you this.
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he figured out he can face time anytime day or night and i'm going to take his call. he called me two weeks ago and said i love you. they reach in and get your heart. but he reminded me it's a reminder to me why you are here. we want to tell our children's children that we are leaving the world worse off than the one our parents left for us. ronald reagan told us freedom is never more than one generation away from extinction. we don't pass it down to a virtual tour through the bloodstream. it must be fought for. then we will be telling our children and our children's children what it was like in
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america when men were free. not on my watch or your watch. [applause] together we can take the country back and put our principles back to work and together we can create a new beginning for our children and children's children. god bless you for what you are doing and america. thank you. [applause] for the concerned women of america sasha smith. [applause] >> good afternoon. i'm here to introduce a man with conviction. many of you may know governor bobby jindal was born and raised in baton rouge louisiana and for those of you that are wondering, yes we have a birth certificate.
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[laughter] [applause] he went on to attend brown university and graduated with honors in biology and policy. he attended oxford university as a rhodes scholar. after he turned down both harvard and yale for medical and law school she worked for the fortune 500 company as a consultant before entering public service. in 1996 he was appointed secretary of the louisiana department of health. he was appointed executive director of the national bipartisan commission on the future of medicare in 1998. at the conclusion of the commission's work committee was appointed president of the university of louisiana system. in 2001, president george w. bush appointed a governor to serve as assistant secretary for
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in june 2014 are governor signs for bills into law that would help ensure that criminals prosecuted to the fullest extent of the law and victims are identified and protected. [applause] as the cwa director for louisiana i'm especially proud as he has demonstrated an unwavering support for our friend israel. [applause] earlier this year a free beacon statement that the white house admission as part of a pattern of hostility towards israel and that quote it is is inconceivable the white house the jewish people out of the lift of the islamic state targets in a request for authorization for military force. these repeated shots at israel or intentional. these are not mistakes. i'm defining america's long-standing alliance and
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disrespecting jewish people seems to be a strategic and of the white house end quote. concerned women for america friends, faith and freedom coalition, please help me welcome the governor of louisiana, bobby jindal. [cheers and applause] >> thank you all very, very much. thank you for that very warm reception. i want to start by asking you something unusual. given what happened in charleston in south carolina this week, i ask you to join me in prayer. a better way to start. please join me in prayer. dear father we come to you with sorrow in our heart. father lord we grieve deeply for our brothers and sisters who lost their lives studying holy
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scripture in a sanctuary and a church and house of god. father, we know you are an almighty loving and forgiving god. we pray for healing for the families left behind. we know we are taught in in scripture tim is empty and you are not on the cross. we believe in the gift of eternal life. we pray for brothers and sisters gone to your glory in your kingdom. we pray we might be joined with them one day in your glory thanks to the gift of your son's sacrifice for us on the cross. we pray for their sons and daughters children grandchildren left behind. we pray this be a time of healing and prayer. we come before you not democrat republican black white rich poor. we come to you as sons and daughters and children of god.
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father we pray bible studies will be filled and that you bring comfort to little boys and girls all over the country asking moms and dads about the reality of evil in our world. we pray we will not see a perfect world as long as there is sin in our world. we know there are no perfect human beings other than your son who made the ultimate sacrifice in our lives. we pray this be a time of race in healing and command the troubled and broken families to your care. we pray this be a time of spiritual revival and folks will find meaning in this awful off of tragedy. we lift up these prayers in your sense most holy and precious name. in christ's name, we pray amen.
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this is a faith in freedom coalition. i want to talk about faith and freedom. i can't think of a more natural response to this week's horrific acts. i will share with you a little bit about my faith. i've always believed in god, but i had a childlike faith when i was a child. maybe you remember that faith. i was in my prayers every night and when i pray to god it was like a i was framed as santa claus. you remember that faith. if you give me an a in history all be good to my little brother for a whole week. you've been in a line we pray dear god i don't want to go home and he handed. let me have my limit and i won't ask for anything else the rest of the day. every night i would make a promise and every morning i would rate it and every night i be right back there trying to make deals with god.
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my faith would've said exactly that way if it hadn't been for my best friend. we were on the school bus has had the strangest name. he said bobby, i will miss you when we go to heaven. i will miss you when you are not there. i don't suggest you go and tell your neighbors that. they will think you're crazy if you talk like that. he taught the importance of sharing his faith. several months later the same best friend gave me a christmas gift i didn't want. i ripped open the paper. i was so excited. i knew of b. sub good in something expensive. don't know how disappointed i was. i open my gift and realize my best friend had given me my first copy of the bible as my christmas gift.
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i remember thinking who in the world by as a viable? you can get one for free in any hotel room in america. why would you buy one of these things. god used that experience to plant a seed. the paperback bibles on the front cover said bobby jindal. [applause] you can't reject that. you can't return it. you can exchange. good luck giving someone a bible with the cover torn off. how are you going to explain that. i threw it in the back of my closet and refuse to read it. my grandfather died a lawmaker. the first time i ever lost somebody so close to me somebody that i loved. he had a massive stroke.
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he was fined one day went to the hospital and died shortly after. i think it was so hard because i never got to say goodbye. i can't remember if i ever told him how much i loved him. i was so mad all the time we had wasted when we've been together when it still been alive. i remember thinking i'd give anything to have five more minutes. i began to wonder if i would ever see them again. is this place called heaven exist? how do you get into heaven? you have to be good 100% of the timer can be just a good 50/50% of the time. so i started reading the bible out of desperation. this to be a great testimony if i had an epiphany, but it was not easy. i did what most people did. open the first page and start reading the whole thing. i thought those were disney
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stories. i have no idea they came from scripture. mainly i was confused by what i read. didn't find any easy answers and put it away. god used that experience. i was making deals with god. i said if you answered me to prayers guiltlessly bond anything else i've ever asked for. number two if you exist i want to know how to worship you. my friend grew so frustrated. they invited me to church. they prayed with me and nothing was working. he said bobby is so stubborn i don't think he'll ever become a christian. here's the great thing. people give up on people. we worship banal powerful god. [applause] we worship a god that uses whatever is in our lives to bring us closer to him.
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god is what is most important to me. i was a normal teenage high school boy. he used a teenage high school girls to get my attention. kind of makes sense when you think about it. a pretty girl at my school that i like to my friends are tired of hearing about it. my friends if you like it her tell her and not us. pretty good advice it was amazing how easy it was to talk to this pretty girl. i couldn't believe myself. she liked me and i liked her. of course i screwed it up. what he wanted the when you grow up? or is born and raised in baton rouge, went to public schools. my friends wanted to play sports most of the people and you want to be teachers or doctors, nurses lawyers. this little girl gave me an answer i'd never heard before. she said when i grow up i want to be calm a united states
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supreme court justice. who in the world wants to be that. what normal kid dreams about? i asked her why. she said when she grew up she wanted to help save innocent human lives right here in america. i remember thinking how did we get on such a serious topic. i just want to talk to a pretty girl. i also realized something in her life is missing. i later realized it was the holy spirit in her life. i'd use that experience. my best friend invited me to listen to him sing in the church musical. there is an actor playing jesus crucified on the cross. i then asked throughout the years.
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i have no idea why that church at that moment.hit me harder than i've ever been hit before. if that is really the son of god on that cross dying because of me 5 cents. i don't mean for all of humanity. i mean for bobby jindal. how arrogant to do anything but get on my knees and worship him. the pastors that come out if you have not accepted god as your lord and savior. we studied scripture together. the words jumped off the page. it was like jesus was talking to me from 2000 years ago. we prayed together and soon i knew what i had to do. i would later say the most important in my life. it's easy. the moment i found jesus christ. if i'm honest it's the moment he found me. it's not like he was the one who was lost. i'm the one who was lost.
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i tell you that to encourage you to plant seeds. you don't know whose life you might change for all of eternity. i want to talk about the freedom part of today's conference. there's an all-out assault on freedom in the united states. we can talk about it in terms of the second amendment and in terms of the left doesn't think were smart enough to buy health insurance. they don't think you're smart enough to buy too many big hopes in new york city. by the way in case you were worried the president will defend us against the mortal enemy called trans. he won't say radical islam. i've got a deal for the president. i'll protect my kids remediable christians. if he will do his job as commander-in-chief and hunt down and kill these radical islamic
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terrorists. [applause] i want to talk about the assault on religious liberty. i give a speech at the reagan library here ago when i said the assault was coming, it is here. several examples. the hobby lobby case for the government wanted to find them -- find them a million dollars a day because they didn't want to pay for abortions for their employees. how many of you are happy the supreme court ruled in favor of the green family instead of the obama administration. why wasn't that 89, zero ruling. but is that a 5-4 ruling. a second -- they want a need to cancel the show. i was one of the first to stand
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up for sale not only because their friends and phil mitchell of louisiana and because it's great to watch a show with your family or you're not worried about the language or images. i don't know about you but i'm tired of the hypocrisy of the left. enough is enough. they tolerate and respect opinions and they do unless you actually disagree with them. third example. he saw the sights in indiana and arkansas were big business is made in a natural alliance with the left to attack religious liberty and conservatives in those days. i've got a message for big business by the way. you are now in bed with folks who want to regulate you out of business and then profit is a dirty word. two sides of the same coin and the republican party are not big government. big business to my so save your breath when it comes to the state of louisiana because i stand for religious liberty every chance i get.
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[applause] the fourth example you may have seen several weeks ago. hillary clinton that those of us who are pro-life need to have religious beliefs change. i don't know about you but my religious beliefs are not between me and hillary clinton. i religious police are between me and god almighty. [applause] i'm not changing my beliefs because they make her unhappy or unpopular with the left. when you hear hillary clinton or president obama say we've got freedom of religious expression all they mean is you can say what you want to church. religious liberty is the ability to give our lives 24 hours a day, seven days a week according to religious beliefs. unlike hillary clinton and president obama, my views on marriage are not evolving.
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i believe in traditional marriage between a man and a woman. [applause] this fight is bigger than marriage and make no mistake about it. this fight is about religious liberty and whether we have first amendment rights. there is no real freedom of speech or freedom of association. i will summarize this in a way that even the liberals in hollywood can understand. the united states of america did not create religious liberty. religious liberty created the united states of america and the reason we are here today. [applause] i want to close with the following thought. this president, secretary
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clinton, apprentice in chief seem intent on trying to bite us by race gender, geography. we must remain united as a country. one nation under god indivisible with liberty and justice for all. [applause] my parents came to this country over 40 years ago in search of the american dream. by the way, they did it the old-fashioned way. they came here legally. [applause] i want to say some things you are not supposed to say. i will say them anyway. i think it is ridiculous to allow people to come into our country to use our same freedoms to undermine those freedoms for others. i think it is perfectly reasonable to say if folks want to immigrate to america, they should want to be americans. they should do so legally, dr. values. they should learn english and
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they should blow up their sleeves and get to work. [applause] by pairing came the first time they've been on a plane they are coming to the american train. they had never been here. they didn't know anyone who had been to louisiana. they couldn't even google back then. they can even search what america was like. they were coming to an idea as much as a place. idea of freedom and opportunity in search of the american dream. they were coming to be americans. my parents love their heritage but they didn't come to raise their children as indians. if they wanted to do that they would've stayed in india. they came to raise children as americans. i'm tired of the president trying to divide us.
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we are not indian americans are irish americans are rich americans are poor americans. we are all americans. [applause] my dad would always tell my brother in the everyday we should be grateful we were blessed to be born in the greatest country in the history of the world, the united states of america. [applause] i want my children and grandchildren to be up to say that same prayer as well. that is why it is not optional. we must win in 2016 not for the republican party, not just for conservatives but for the sake of the united states of america. god bless you all. thank you for letting me come speak today. [applause] thank y'all very, very much.
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>> ladies and gentlemen, how they welcome to the stage to president of american values. [applause] >> thank you very much. pleasure to be here. fantastic remarks by governor jindal. i came with a prepared speech. pretty entertaining. is going to go through a lot of applause lines and i was sitting in the green room and i heard governor jindal's prayer. it reminded me of how heavy are hard site today. about the events in charleston, south carolina. not just that. that is not an isolated incident. the country is in trouble. 75% of the country thinks america is headed in the wrong direction. that's an extraordinary number of fellow citizens that believe we are off the tracks.
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i begin today by going online for turning on the television side and i find myself almost hiding my eyes bracing myself because i wonder what might happen overnight but i will be hearing about first thing in the morning. babies left in trash cans unbelievable horrific crimes, things that would've been unimaginable not that many years ago. the atrocity in charleston, south carolina. these things trouble are hard. as bad as what happened at the church, sadly worldwide that is not something unusual. christians have been killed and worshiped all over the world month after month after month for at least the last six seven years. in nigeria across the middle east we saw christian kneeling down before the beheading.
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the video distributed told them we will either behead you or you can renounce jesus. and you can live. those men the last words on their lips or to praise our lord and savior jesus christ. we've got pastor is afraid of losing their tax deductions. [applause] by the way based in silence as christians have been murdered around the world. sounds by the white house and a lot of pastors and churches. the commentators now say we need a national conversation about race, gun control. i will talk about all of those things that's missing the point we need a national conversation about god. [applause] it's been 14 years now since the attacks on 9/11.
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hard to believe. the first president george washington gave his inaugural address not in washington d.c. but in new york city at federal hall about five or six blocks away from what was ground zero on the morning of 9/11. the first non-girl address george washington told the people of the new nation that he would dedicate the country to god. he took the oath of office on the bible. he humbled himself after taking and leaned over and kissed the bible. he told the country was improbable that we would defeat the most powerful empire in the world the only way he could explain it was i what he called the hand of god or providence. the first president come in the non-girl address. what he was saying was believed by every one of the founding fathers. every one of them.
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they were learned man. they were well read men. when i went to constitution hall among the things they had read was victoria in the new testament. and it is said they found the ideas and added in the founding documents of this country. the most important in the second paragraph to the declaration of independence. unfortunately many children don't. 22 words in the middle of the paragraph that defines who we are. the establishment no longer believes the words. we hold these truths. there is a problem right there. the left doesn't believe there's something called truths. they are committed to moral relativism. we hold these self-evident that all men are created equal and endowed by their government. no endowed by their creator.
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it was in any creator. it was the god of abraham, isaac and jacob the god who knows when a sparrow falls in a grounder when a great nation rises as you so well because the hairs on your head. that is the god the whole nation was built on. i used to be undersecretary of education. then they get a homework assignment. read lincoln's second inaugural. one page long. can you imagine? and i saw the candidates. when you win, give a one-page inaugural address. he was a broken man when he gave that speech. he presided over a civil war for 650,000 americans had died over the question of whether black men and women for people or not. if they are people, they are
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protected by the words i read to you. if they are property of lethal force, you find somebody source and you return to them. lincoln and the one-page extraordinary refers to god in the bible a dozen times and he says something that quite frankly if an american president said today he would probably be impeached. abraham lincoln said god is just and i fear a just god might allow this war to continue until enough blood has been shed north and south to keep all the blood drawn by the slight master/. it was the president going to suggest not only does god judges nations and abraham lincoln knew what this country have been built on any new opiate violated
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and he asked the american people to ponder what god would require of our country. what would have been if they president said that. i was in a lot of presidential debate in 2001 of them we were asked all of us, what individual had the greatest impact on our views and values. george w. bush and myself is that jesus christ. the audience then i'll applauded the next painewebber said that. there were two dozen groups that issued press releases condemning answers. we were called divisive, intolerant merely because we answered the question honestly that our views have been molded by what we understood christ was teaching us to be. ladies and gentlemen, we all know you are not allowed to draw consulting pictures of mohammed,
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right? have you thought about the fact it's getting more and more difficult to say the name of jesus? there are chaplains in the united states military on the way to losing their careers because they insist on praying in the name of jesus. my friends, either president in office will grow our economy and restore of military strength. my friends, if we don't rediscover the central idea of america that god is the author of our liberty and ultimately he's the only one that can protect and defend us, no president we elect will matter. we it not be a great nation again unless we rediscover the central idea of who we are. [applause]
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ronald reagan as usual, the man i worked for her for eight years said it best. unless we are nation under god we will be just another nation that has gone under. my friends, pray for your country. pray for your fellow citizens. pray for this land and in the middle of the others to divide us, pray somehow black-and-white, no matter how much money on their bank accounts, that we will understand the future of america lies at the god of abraham isaac and jacob. he gave us the freedom we have and with only his blessing will this nation exist and survive in a dangerous world. god bless you all. thank you very much. [applause]
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>> ladies and gentlemen, welcome to the stage craig brown. [applause] >> good afternoon. our next speaker served in the u.s. house of representatives from 1991 to 1995 and in the u.s. senate from 1995 to 2007 where he became known as one of the most successful government reformers in washington. rick santorum fought corruption is a member of the gang of seven that exposed the congressional banking and congressional post office scandals. he led for economic empowerment as an authoring manager of the landmark welfare reform act of 1996 that empowered millions of americans to leave the welfare rolls and enter the workforce. his exemplary eight years of service on the senate armed services committee led the fight
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to transition our military from a cold war force to one that would effectively meet today's threats and was a leader in the fight to end u.s. relations with in support of israel. in 2012 he was a candidate for the republican nomination for president whose conservative voice in grassroots approach to campaigning including visiting every one of iowa's 99 counties led to a stunning victory in the iowa caucuses. that victory catapulted him to front-runner status where he ultimately won 11 states in and nearly 4 billion votes in the republican primary process. consistent conservative stance on social issues and the economic growth he refers to as blue-collar conservatives and continue to resonate with millions of americans. he's been married to one wife of
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25 years. their marriage has been blessed with seven wonderful children. more than three weeks ago he announced his new candidacy for president of the united states. would you join me in giving a very warm welcome to rick santorum. [cheers and applause] >> thank you. thank you very much. i appreciate i appreciate the warm reception for next year. i don't know if anybody else has spoken. i wanted to maybe start with back to say you know me. i have been on the front lines of the issues of faith and freedom. for the better part of 20 years.
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starting for the basic ideas that made our country great. in some cases i'm only known for that because there are many people that do that. many people talk to us at the podium here, come to your conferences. but will they go fight for these issues when the rubber meets the road. we've had one vote on the united states senate on the issue of marriage and a constitutional amendment to institute of marriage is between one man and one woman. anybody know what that vote was? back in 2004. people behind the scenes in the caucus to even get a vote. yeah i did. yeah go ahead. [applause]
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c., they will stand for marriage but when it comes to actually fighting, they will say they are pro-life but when it comes to leading because when you meet in fight, you pay a price. the biggest prizes all the folks back there i'll ever say that i do. it is one thing to be pro-life. a lot of folks will talk about their great pro-life voting records. it is another name to stand up and try to push the agenda, to try to make sure your voices are being heard and that is the differentiator. how many times have you voted for politicians to come to washington d.c. let's say they haven't lived up to your expectations. how about the last few months they haven't lived up to your attention. so when you're looking at a presidential candidate, don't just look at the rhetoric because everybody can read polls and now at the american
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republican primary voters are looking for. look at their track record. look at their willingness to stand up and fight on not just the one issue where to but to be a principled conservative across the board. particularly on cultural issues because if you do that at several candidates have found out, you get pigeonholed. i will talk today about a lot of other things important for conservatives. national security is one of them. i put my record up against national security with anybody not just in this field, with anybody. i was on the glenn beck show the other day and he introduced me i as he has for 10 or 11 years it is always introduced me as the winston churchill of our time. why? the last 10 or 11 years i have an morning america while i was in the senate, outside of the
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senate before i ran for president and while i ran for president about the gathering storm of the 21st century about radical islam's rise and how they work together with other radical groups across the world to defeat freedom, to defeat the last and that there's only one country capable of standing up and fighting. others are willing to fight the state of israel at only one country has the capability of standing up and fighting it. when we don't, evil prospers. we've seen and will prosper dramatically in the last six years because they've had a president who refused to identify the enemy and put a strategy together to defeat the enemy. that's why they have prospered. i was in israel a few months ago and prime minister knighton yahoos senior adviser said to me you need to tell the american public that whoever the
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next president will be in all likelihood will have to be a wartime president because we will be a war. not we as in israel we in the world. ladies and gentlemen commander-in-chief is not an entry level condition. allowable, but the stage and talk about what their values are an ideal sire. we will be up in a race against probably the former secretary of state who knows these issues inside and out, has experience at a time when america is looking for someone they can trust, someone that has a track record on these issues. i served as you mentioned that your son and services committee. beyond that, we worked hard defending the state of israel but also trying to alert america about nuclear iran. that's always the number one issue for me.
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if you go to israel it's the number one issue for israel. a nuclear iran changes everything. a nuclear iran provides a real shield to the rest of the world of ever going after iran as a country, just like every nuclear country has. this is a country that is the biggest proliferator of terror in the world someone who will attack israel. they want to wipe israel off the face of the earth defeat america and now we are about to engage in agreement will put them on a path quickly legitimately to a nuclear weapon. we have to have someone coming up in 2016 whose experience debating the former secretary of state is not a recent book in the debate.
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i have heard the iran freedom support act which codified sanctions against israel which i pushed hillary clinton joe biden, barack obama before i was passed and they voted for it. kerry does that a lot. the bottom line is we need someone with experience in a hand the world understands and trust. a few months ago i was in an online magazine which is usually a good thing. this online magazine with the online magazine of isis. and i was under the heading in the words of our enemy with a picture of me a very nice picture and a quote describing who they are and why we had to defeat them. ladies and gentlemen, isis knows
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who i am because i've been out there want time describing the threat that they are and why we have to defeat them. and i know who they are. we need a president who is strong on this issue, who is willing to confront hillary clinton and all the things the administration had done to that america and the world in peril at a time our country will be in peril if it isn't already. we need somebody out ther to engage a large group of people in america who feel like neither party cares about them. i was reading studies over the last year as though about to turn out in 2012 and who didn't. there was all this talk about we just need evangelical turnout and that will make the difference. that is simply not true. evangelical voters to turn out
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and they did vote overwhelmingly for candidates. i will tell you that didn't turn out. blue-collar workers. if you look across the area that is key to winning the election, which is pennsylvania, ohio, go right straight across, you will see lower rates of turnout among working men and women. because they don't think either party understands them in the fight they are going through. the democratic party has long given up working men and women. working men and women don't want government benefits. they want opportunity from a society where they can rise in america again. [applause] what about the republican party.
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in the last election there is a survey done of all the people in talking about. they were asked a question and exit polls what is the most important issue in the election. 23% said that the candidate care about people like me. 23%, almost all the folks i people i'm talking about. our candidate got 19% of the vote of people who said they wanted a president who cared about them. we have a tremendous opportunity as conservatives to change the entire electoral map if we simply take the principles we have that are right about the way in this economy cutting taxes and producing regulation, balancing the budget trade policy that are fair to american workers. but those policies in place.
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an immigration system that doesn't flood the country with legal and illegal immigrants. we brought 35 million people into this country, the largest. 10% of the population of america. almost all of whom are on scaled and guess what happened to wages over the last 20 years? declining in real terms. median income is declining. we line up with the business community and see it as cheap labor to lower cost. the democrats have abandoned the working people. they want many people to comment because they will all vote for them. what about the american worker? what about the 74% of americans who don't have a college degree? who is on their side?
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if you look at who the republican party is, it is those very workers except we don't get the share of the vote. we don't get as many people in the north end people out voting for rice. we don't have a policy that connects directly with them. what i've laid out with what i am out three weeks ago from a tree for in western pennsylvania the hard-hitting estoril heartland of america i talked about how we have to have a comprehensive package that not only grows the economy. i wrote about last year called blue collar conservative, recommitting to an america that works. i talked about how we have to have a rising tide. we also have to have americans against what? people in america that have holes in their votes. all we do is talk about growth and we don't talk about how we
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create economic opportunities for everybody. people sitting in the boat as the tide goes out and they feel like they have to go faster because the water is deeper and more dangerous. we need to be the party of working men and women that understands dignity of everybody. that's why talk about the manufacturing agenda. we can put people back to work. we put pride in america hope in america to create the opportunity to rise for the workers who have less skills you want to work and be able to get the skills to provide for themselves and their family. i know everybody's favorite word. everybody's favorite word is they remain. everybody likes to see and hear their name. do we as republicans would talk about our economic policies, bar graphs, charts, growth, gdp. we talk about people and folks
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who are hurting, who are not seeing the opportunity to rise in ways that their names in the future of america. when you talk about creating manufacturing jobs to rise and get good paying jobs, construction, how america 10 years ago if he said with a number number one producing country in the world people would've said this just another chauvinist trained to pop up america again. we are the number one energy producing country in the world and we should be proud of that. so within 10 years we can be the number one manufacturing country in the world again, people say it is not just blowing smoke. the bottom line is because energy prices are low and stable for the long-term, we have now created that change the switch that creates the opportunity to be competitive.
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go back to the 1970s when we de-industrialized america and factories close to me some massive dislocation of workers. remember what the catalyst wise? the energy crisis. it exposed albums in our manufacturing sector. now we have the opposite case. there are jobs coming back if they can be accelerated if they cut tax rates. talking about putting forth a simple fair flat tax that creates an opportunity for businesses to locate. take every single job killing regulation the president put in place and on day one revoke it and put in job training executive orders and regulations. [applause] take an immigration system and do what the law says. use either a five for all businesses so we have american workers doing american jobs.
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we have a system of most of the illegal immigrants coming to america today are coming from over the border. given the majority of people coming are not mexicans anymore. majority of the people in this country illegally are here because of these overstays because we don't track the sad thing is. enforce the law. it's as simple as that. all we have to do is dramatically reduced the number of illegals in this country every year and create job opportunities for america and better wages to boot. secondly we have to do something about illegal immigration system. we've had the highest level in our country. over 1,000,055 every year come into this country legally. almost all of them are unskilled. i'm talking about 25% reduction in still aside from the last 20 years to be the highest level prior to these last 20 years.
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why? we need to be the party of the american worker both folks born here, people who came illegally and give them the opportunity to see their wages rise and a strong middle of america. it is as simple as that. [applause] if you have a candidate that is strong and principled on national security in an election that is going to matter. why? six elections. republicans have lost five of the last six with respect to the popular vote. the only one that we have one with 2004 the reason was national security. was a big issue. we need a candidate strong on national security can reach the heartland of america with a message that says we are on your side. we will create job opportunities and incentivize people to get
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engaged and involved in the political system and transfer of the heartland of america for what used to be a string of loose faith to a string of red states. you want to win? then let's elect someone who can go to the states that we have to win with a message that is a winning message. i wanted pennsylvania. for the house, senate and a 60% democratic district in the state twice with over a billion registered republicans than democrats. i know how to win in the states. i've done it and we have a message now that will connect. you have an opportunity to elect a full throated conservative on fiscal issues economic issues, foreign policy issues -- some moral and cultural issues. why settle for less?
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[applause] to those who say i can't win let me say this. does anyone else up anyone also appear when 11 states? i was outspent 45 to one and we were able to win. people say because evangelicals. let me finish with one final poll number. i'm not a big believer in polls but after the election in april 2012 when i dropped out combine that with the romney campaign in a shared with me a little information. he said we were always wondering why he did better in the election results than the exit poll showed you were doing. when the 5:00 exits would come out, you would be behind are not doing as well and do better in the end. we started doing something we've never done in polling before.
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we started asking who are you voting for it and when are you planning to vote. we've never done not. he handed me a pace that paper. he said this is the last poll from pennsylvania the next step for me before he dropped out. we dropped out a couple weeks before the pennsylvania primary. he said if you are going to vote between when the polls open at noon, i was leading romney by five points. if you're going to vote between noon and 5:00 i was trailing romney by four points. if you are going to vote after 5:00, who goes after 5:00? i was up by 21 points. he can say whatever they want about why rick santorum did well the last time. because we had a message that connected with the people that if we want to win this election ladies and gentlemen, we better connect with. you have an opportunity as
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social conservatives to have your cake and eat it too. have someone who can win and someone who will win the values our country -- that made our country great. i hope you join our fight. go to rick santorum.com and give us a hand. god bless you. [applause] >> ladies and gentlemen, please welcome ralph reid. [applause] >> i need everybody to hang with me for like 30 seconds. are you with me? we have received a threat about the safety of this event in this room at the district of columbia metropolitan police believe there is enough evidence that it
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requires us to take some steps that we would prefer not to to protect here. we don't want anything to happen to anybody in this room. we've got one more speaker last and he came in here specifically to speak to us. governor george pataki, former governor of new york is running for president. so here's what we are going to do. i want everyone to please cooperate. if you do we will be done in 10 minutes. we will leave this room so that d.c. police can come and sweep the room. we will go to the palladium room where the congressional luncheon was yesterday. there are chairs set up in out of courtesy for governor pataki i would ask for everybody now to go one up to the palladium room and let's let him speak and hear from him and then we will close our program. i will see you guys in the palladium room in about 90 seconds. [inaudible conversations]
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>> well, as you may have heard from ralph reid, there is some sort of threat made against the event. members moving out of the ball rimmed out and they hope to be hearing from george pataki, republican candidate for president. unfortunately, we are not going to be able to show that to you live. will make every effort to record and show that to you later in our program schedule on the c-span network. at this point we will move on with their programming for the afternoon with a look at the murders and charles and in an article related to dr. lindsey graham, south carolina senator defending the confederate flag set it works here. he said at the end of the day it is time for people in south carolina to revisit that decision in terms of the
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confederate flag as part of the heritage of south carolina. he was asked whether the flag should stop line at the statehouse in charleston. vq shooter has been charged with nine counts of murder today in charleston to be arraigned later today as well. live coverage looks like this on the c-span network. president obama and same with cisco speaking to the u.s. conference of mayors. the president is on a four-day trip to the west coast to participate in democratic fundraisers in california.
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>> some are sitting kind of front left of the chamber if you will, and so when brooks come into the chamber he comes into the center doors sits down and is almost looking directly at summer. summer is not looking again. sumners head is bowed. is literally signing copies of the crime against kansas speech. brooks gets up, walks down the aisle, approaches summer. summer totally oblivious, sign these copies of the speech. brooks reaches them lifts his cane over his head and says mr. sumner, i read your speech over toys. it is liable to my state and my relative. summoner looks up at this point. brooks is board these classes because he's so close and brooks strikes among the top of the head with his cane. sumners head explodes and blood almost instantly.
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>> sunday night at eight eastern and pacific on c-span's q&a. >> next, hearing with the epa's acting assistant administrator for air and radiation janet mccabe. on the agency's proposed new rule to revise national air quality standards are ground-level ozone. heard about the economic impact of the new regulation on states of what technology is available to help them meet the new standard. this hearing is about two hours. >> i'd like to bring the hearing to order. this morning's hearing will be focused on epa's proposed ozone rule. the proposed -- i like to
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recognize myself for five minutes for an opening statement. the proposed rule would lower the standard from the current 75 parts per billion down to 65 or 70, but the agency is also taking comment on 60 parts per billion. these proposed levels are so low that in some parts of the country that are at or near background levels. the proposed levels are so low that even epa admits that it is not fully known in some areas how to achieve full compliance. in other words they have to use unknown controls to do it to meet those standards. the marginal cost of ratcheting down the existing standard goes through the roof and epa estimates that 65-70 parts per billion standard would cost 3.9-15 billion annually, and a 60 part would cost 39 billion annually.
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independent estimates are much higher including and national association of manufacturers study that puts the cost of a 65 parts per billion standard at 140 billion a year. which would make this the agency's most expensive regulation ever. this study also estimates 1.4 million fewer jobs and household cost averaging $830 per year. these calls come on top of all of the other rules we have seen from this administration. many of which also impact energy and manufacturing sectors. moreover this rule is yet another chapter of the administration's effort to force more extreme climate policies on the american people. i would like to name a few of them. utility mact boiler mact cement, crossed state air pollution rule the 111(d)
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111 p. the tier three all on top of this proposed ozone rule. i would also like to point out that today in america there are 230 counties not in compliance with the 2008 standard. i might also add that epa is just now getting around to provide implementing guidance for the states for the 2008 rule. now, these counties not meeting the new standard would be designated as nonattainment as i said that our 230 counties today in nonattainment around the country. epa estimates that fully 358 counties that currently have monitors would be at and on a team if they go to 70 parts per billion and 5508 counties would be in noncompliance at 65 parts
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per billion based on recent data. this does not include counties nearby or without ozone monitors that may also be designated by epa to be in nonattainment. now, nonattainment designation is like a self-imposed recession for some areas. in such counties it becomes extremely difficult to obtain a new permit to build a factory to expand a factory or power plant. and even permits for existing facilities would be impacted. just last week a new survey of manufacturers, over half of them, in fact 53% said they were not likely to continue with a new plant or expansion if it is located in a nonattainment area. the same permitting challenges apply for roads and other large
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infrastructure projects. in effect almost all new major job creating economic activity is jeopardized until the nonattainment area meets the standard which could take years if not decades. even the mere possibility that the location could later be designated to be a nonattainment is enough to scare off prospective employers. so the proposed rule may already be doing damage. there's something wrong with our system when you have los angeles, san joaquin valley, major parts of california that have the most stringent environmental standards in the country, and on top of that epa, and those areas, san joaquin valley, los angeles may never be in compliance. they are certainly not in compliance today and have been out of compliance since the beginning of the clean air act. so we have a system that's not working very well.
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at this time i would like to recognize the gentleman from new jersey, mr. pallone, for his five minute opening statement. >> thank you, chairman whitfield, for holding this hearing on epa's proposed ozone standard i also want to welcome epa acting assistant administrator janet mccabe and thank her for testifying before the subcommittee taking. since 1970 the cornerstone of the clean air act has been a set of health-based air quality standards help ensure all americans can breathe healthy air. epa must at each air quality standard based on science and medical evidence alone. essentially a standard such a level of pollution that the states can breathe. destruction has been extraordinarily effective in clearing the air and protecting public health including the health of children and seniors. but the current 75 parts per billion ozone standard has fallen short. since 2008 the ozone standard has been weaker than the facts
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would allow progressives the independent clean air scientific advisory committee made crystal clear that in order to adequate protect public health, epa must strengthen the ozone standard to ensure an adequate margin of safety for all individuals. these recommendations unfortunately were ignored by the bush administration. to correct this flagrant disregard of the facts can be paid as now proposed based on yet another exhaustive review of the scientific evidence to revise the standard default and range of 65-70 parts per billion as recommended by the scientific advisory committee. epa's decision is fully consistent with the law the scientific evidence that there let me about first health impacts will be avoided with the stronger standard of nearly 1 million asthma attacks in children, missed school days and thousands of premature deaths. these are meaningful real-world benefits but i have little doubt that today we will hear much about cost.
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yet a unanimous in a state supremesupreme court opinion written by justice leah made it clear that epa's approach for determine a safe level of air pollution is correct and cost may not be considered here that is why congress designed the clean air act. instead is that based on the outside and economic costs were only considerably we determined the best way to implement this standard. in other words epa sets the goal for clean air and the states develop the lowest cost way to meet a. although epa may not consider cost in setting the standard, epa has nevertheless worked with the office of management and budget to prepare a careful analysis of the projected costs and benefits associated with reducing ozone. epa estimates that. epa estimates the benefits associated with a new ozone standards would range from 13-$38 billion annually outweigh the costs by approximately three to one. industry has prepared dubious and grossly inflated estimates to the projected costs that they
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failed to consider any of the benefits. that paints a completely one-sided picture of the cost of cleaning out there, one that ignores the real cost by those who breathe, especially children whose lungs are developing into breathe right of voting for the size. epa's proposed ozone standard of dark consequences for economic growth. these claims that the cost of clean air is nothing new. history of the clean air act is the exaggerated claims by industries that are never come true. over the past 40 years the clean air act has produced tremendous public health benefits well supported america's economic growth. epa's ozone standard is long overdue. we need to let epa did it's job to reach the goal of the clean air act, clean air for all americans and other forward to ms. mccabe's testimony. i yield back the balance of my time spent chairman gives back. at this time to recognize the gentleman from texas, mr. olson for five minutes. >> i thank the chair come and i
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will be very brief. i spent long hours going over comments that epa received about this new ozone rule. and there was a common theme, will i lose my job rocks questions came from big cities, members of the atlanta chamber or the greater houston partnership. they came from family farms and ranches, members of the iowa farm bureau or nebraska home builders. a mom and pop store in pennsylvania wrote epa, and this is a quote from parents tell our children eat your peas, then you can have dessert. epa says, eat your peas then you can have more peas.
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end quote. the worst came from epa's workforce, the state agencies who make this rule work. they have no clue about the science used for the health impacts. they worry if they can build new roads. these voices come from all of america. i don't epa starts listening. and one of my colleagues on my side won time, i will yield. if not, i yield back. >> the gentleman yield back. at this time recognize the gentleman from illinois mr. rush, for five minutes. >> i want to thank you, mr. chairman, for this hearing today on the epa's proposed ozone rules. and i also want to welcome back
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ms. mccabe, the acting assistant administrator for air and radiation at epa. she's always giving us your best, and it's always a pleasure to hear her insightful and forthright testimony before this subcommittee. mr. chairman today it's been duly noted we are here to discuss the proposed national ambient air quality standards for ozone which the epa is legally mandated to put forth by the clean air act. the clean air act requires the epa to inspect primary national ambient quality standards, and concentration levels suspicion
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to protect the public health with an adequate margin of safety for certain pollutants that endanger public health and the environment. we know that the epa establishes new standards based on medical and scientific evidence as well as the recommendations provided by the clean air act, advisory -- scientific advisory committee which you know, mr. chairman, is an independent scientific committee. the epa is required to base these standards which it must be reviewed every five years solely on consideration of public health, and they must accurately reflect the latest scientific knowledge. we know that in 2008 the bush
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administration failed to heed the unanimous recommendations of the committee of the clean air scientific advisory committee of lowering this ozone quality standards to between 60-70 points per million. instead, the epa under president bush set the standard at 75 ppb's, despite the advice of the scientific advisory committee that 60-70 ppd standard would be more protective of public health. the obama administration also initially failed to lift recent ozone standard in 2009 until
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being ordered by the courts in april of last year due to a lawsuit brought forth by our mental and department of health groups. so that leaves us to ask the question, mr. chairman, why is this rule so very important and why did the court force the epa to act? well, we know that there are serious health effects caused by the ozone, and the epa's proposal will improve air quality and result in significant public health benefits. children the elderly and people with respiratory diseases such as asthma will be impacted directly by this rule.
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epa estimates that are currently 25.9 million people in the u.s. with asthma, including 7.1 million children. and, mr. chairman mice eat in chicago has been disproportionate impacted by asthma and the effect that ozone has on asthma. the most recent study shows that the county illinois, it's it sold over 113,000 children in over 320,000 adults -- county -- as asthma. and, mr. chairman, i don't know that a value can be placed on preventing all these dire circumstances, all of these illnesses, all these premature deaths and emergency room visits but i know that the
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people who sent me here to represent them are some of the ones he will be impacted by this procedure. and by this action most of all. so i look forward to engaging ms. mccabe on the rationale behind the proposal here and mr. chairman, i think i'm out of time so i yield back the balance of my time. >> the gentleman yield back the balance of his time. at this time ms. mccabe, i want to thank you for coming here early this morning at 9:30 and once again we apologize for the delay but we are delighted that janet mccabe is with us the acting head since -- assistant administrator at epa and to recognize for five minutes for your statement on the ozone rule. >> thank you, chairman whitfield, ranking member rush members of the subcommittee thank you for the opportunity to testify today on epa's proposed updates to the ozone nation and
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that the only standards that al-qaeda be presumed can get to your questions. the clean air act requires epa to review the national ambient equity standards every five years to make sure that they continue to protect public health with an adequate margin of safety. for at risk groups including as ranking member rush has noted the estimate 25.9 million people who have asthma in the united states of whom 7.1 million are children, this is critical work. for this review of epa examines the thousands of scientific studies including more than 1000 new studies published since the p.a. last revised the stench in 2008. based on the law, thorough review of all about science the recommendation of the agency's independent scientific advisers in the assessment of epa's scientists and technical experts, the administered his judgment was that the current standard at 75 parts per billion is not adequate to protect the public health. she proposed to strengthen the standards to within a range of
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65-70 parts per billion, to better protect americans health and welfare. the agency invited comments on all aspects of the proposal including an alternative level of low as 60 parts per billion of also acknowledged interest among some stakeholders in offering comment on retaining the existing standard. we also propose to update the old index for ozone to reflect a revised standard if one is finalized. the aqi is the to the good samaritans real-time information about air quality each day so they can make informed choices protect themselves and their families. ozone seasons are lasting longer than they used to send epa proposed to lengthen the ozone monitoring season for 33 states to match a season with ozone levels can be elevated. to protect the environment from damaging levels of ground-level ozone as required by the clean air act of epa has proposed to revise the second a standard based upon new studies that add to the evidence every paid
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exposure to ozone reduces growth and its other harmful affects on science entries, the administrator judge a second a standard within the range of 65-75 parts per billion the same as the primaries get a proposal, would protect the public welfare, particularly against harm to trees, plants and ecosystems. we have proposed to make updates to monitor and permitting requirements, smooth the transition to a new revised standard, maximize effectiveness in the state local, tribal and federal monitoring programs and give areas new flexibility to meet local needs from monitoring ozone precursors. all of these updates are designed to assure the americans are covered with ozone approaches levels that may be unhealthy, especially for sensitive people. the administration proposal to strengthen the standard is designed to better protect children and families from the health effects of ozone pollution. for example, we estimate meeting a level in the range of 65-70
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parts per billion would prevent an estimated 330000, to 1 million missed school days 329,000-109 or 60,000 asthma attacks and children and 710 premature deaths per year. implementing an act has always been and will continue to be a federal, state, and tribal partnership. epa stands ready to do our part to assist states and tribes with pollution control programs and to streamline implementation. local communities, states tribes and epa have already shown we can reduce ground-level ozone while our economy continues to thrive. we have reduce air pollution in this country by nearly 70% at our economy has tripled since 1970 we fully expect this progress to continue. existing and proposed federal measures like vehicle standards powerplant rules are laid into substantial reductions in ozone
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nationwide which will help improve air quality in many areas meet any revised standard. we received over 430,000 comments during the 90 day public comment period and we are reviewing those comments as we work towards completing the final standard by october 1 of this year. thank you very much and i look forward to your questions. >> thank you, ms. mccabe, very much. i recognize myself for five minutes of questions. many of us believe that the clean air act needs to be changed. i say that because just as mr. rush mentioned, you mentioned, epa looks at impact on health care by making it more stringent, these ozone rules for example. and you eliminate so many cases of asthma, so many premature deaths whatever, whatever come which is important. but under the act you didn't have any responsibility to look at those pockets of the country that are in noncompliance and
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the impact that these stringent controls have on jobs. and we've had economists after economist come in here and talk about loss of jobs and impact that has on health care for children, for instance, and you epa him every time they come up here, it's all about the benefits, the benefits the benefits. and our detriments to these actions. because as you know winning area is in noncompliance they can't build a new plant unless they get a permit. they can't build infrastructure projects, and it does have an effect on jobs. now fortunately areas like los angeles that have never been in compliance, they relied on the entertainment industry, high-tech and so forth so they don't have to worry about manufacturing jobs or basic industry jobs.
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but how do you account for the fact, for example, that los angeles is due in noncompliance? and your own rule states that some of these areas, the only way they will ever be in compliance under even in the 2008 rules is they have to use unknown controls. controls that we don't know what it is. and you do understand i mean this is your own testimony, your own documentation shows that many parts of the country are going to be in noncompliance whether it's 70 or 65. and even president obama tried to prevent the intimidation. the delayed implementation of the most recent review. and now, of course environmentalist groups that do a good job they have a role to play, but they were driving epa
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because they are always going to court. and under the strict construction of the language sometimes which is quite nebulous, the courts say you cannot delay. so many of us are really frustrated that these departmental groups are driving the decisions. because of the strict language in the original clean air act. so i hope you get a sense of the frustration of many parts of the country, and kentucky, we are going to 11 more counties in noncompliance at 70. we will have 23 more 65 come and every major city in kentucky will be in noncompliance at some of these levels. so are you concerned that after all this time that areas like los angeles and san joaquin still can't even meet the old standards?
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>> chairman whitfield, there's a lot in your question there, and i'll try to address as much of it as i can. there are certainly parts of the country where meeting the standard has been extremely challenging due to a variety of factors, including particular challenges in southern california. what that means is millions of people who live in those areas are exposed to unhealthy air. the good news is that air quality has improved in southern california as well as all across the country -- >> but they are still in noncompliance. >> they do not meet the standard but there are way fewer days come and the levels are lower and the area is making progress in the way that still supports a vital local economy. >> how much time does los angeles have to comply? i mean, i don't know if they are severe or extreme, but how many years do they have to comply with? >> los angeles is in the extreme category and under -- is the
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standard is revised this fall they would have until 2037 to meet that standard. what that means is a theory has a lot of time to bring reductions into place. >> but they been working on it for 15 or 18 years. they are not even in compliance today. >> that's right. the air is still not healthy for the citizens there to breathe. >> well, i see my time has expired, but you know any of us feel very strongly. you should just continue to improve the existing rule for the country time to catch up. you are implementing guidance has not been issued until just recently. i recognize the gentleman from illinois for five minutes. >> i want to thank you mr. chairman. assistant administrator mccabe, in your written testimony you know that nationally since 1980 averaged ozone levels have fallen by a
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third. initially 90% of the air original identified as not meeting the ozone standards since 1997. now 97%. what we say to the argument that we have already reduced our averaged ozone levels enough? and furthering, growing the standard of 75 -- lowering the standards from 75 to seven or even 651 not give us the additional health benefits worth, as opposed to the cost of trying to reach those higher standards. >> well, congress and the clean air act directed epa every five years to look at the science and make a determination about whether the current level is
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adequate to protect the public health. and based on all of that review in a very open process with external peer review all along the way, the administrator made a determination that 75 parts per billion is not sufficient to protect. that's based on all of the site using the shows people suffered the effects of air pollution ozone air pollution at what levels below 75 parts per billion. that is her job to get under the clean air act. that is what our proposal is all about. >> they also point out since 1980 we've reduced our air pollution by nearly 70% and our economy has tripled. we know that by law epa cannot consider the cost of implementing in the primary or secondary air quality standards, but only can consider the health
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benefits. have there been any cost-benefit analysis by the epa or any other agency, either before, during or after the proposal -- the proposed rule of? >> ranking member rush, you're correct to point out that is a separation that congress laid out in the clean air act between deciding what the science says is important for safe and healthy air and decide how to meet that standard. which is the states are in charge of because it's their air quality, their sources with considerable help from the federal government. so we don't know exactly how the states will go about meeting the standard because we know that they will, as they have over the years, they will find cost-effective ways to do that with the help of rules provided by the federal government. but we do provide as part of the rulemaking process a record or impact analysis, and riaa comes
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to shove a lost cause. that goes through the review of the office of management and budget edited consistently with the obligations and requirements that they put on us to do those sorts of economic reviews. >> ms. mccabe, the chairman talked about los angeles and other places. what's your viewpoint, once your -- where do they stand now and what direction is epa going to try to bring them more into compliance? >> there are a lot of the unique features that make southern california very challenging for air quality. it's a very populous areas of there's a lot of activity there that creates emissions but there's also the unique geography and topography of being the mountains and the
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ocean and the meteorology there that just makes it very challenging. as a result epa as well as really progressive and smart and innovative agencies and businesses in california have really led the way in figuring out how to reduce emissions in cost-effective ways to protect the citizens and improve air quality. epa has provided significant support and assistance through grant programs, through technology assistance over the years. and we certainly will continue to do that in order to bring the kinds of programs that need to be in place there. would've the advantage of that is that california, the innovations in california have helped the rest of the country in terms of bringing new ideas and new approaches into use in ways that can benefit the rest of the country, and benefit the economy. >> thank you, mr. chairman.
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i yield back. >> at this time recognize the gentleman from texas, mr. olson, for five minutes. >> i thank the chair. welcome back, ms. mccabe. we all know that much of the ozone america is beyond our control. epa calls this background ozone. some of this ozone is natural, blows from other countries. this was houston. some of that is not our ozone. some belongs to mexico. we did it because of annual crop burnings. i have another poster. last time ms. mccarthy with your i showed her this map of america from china and asia are in your proposal you admit that
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natural ozone and ozone from mexico and china can be a huge problem. your rule says, i quote, there are times when ozone levels approach or exceed the concentration levels being proposed in large part due to background sources. end quote. in small needle texas, u.s.a. that ozone can we can't control makes us violate your new rules. that seems very unfair. my first question is, is it true that nearly one half of the ozone america is here naturally or comes from overseas? >> i don't know i would agree with that promotion exactly. we give address the background
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issue and background levels in their across the country and a very across different times of year. as you know they come from a variety of sources. i will note that the clean air act does not hold states responsible for pollution that they do not control. there are provisions and mechanisms in the clean air act to help states it is i'm sorry i have only five minutes and thousands of questions back on people as i have to cut you off. i apologize. your entry goes against data that you admit odu copies databases ozone is all of this country. we know they are not going away. and are likely to get much much bigger. that means we must squeeze more and squeeze more from smaller and smaller sources of ozone.
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epa says can't say how this can be achieved. you don't know. is it true can epa says that much of these technologies need to meet these new rules are unknown today? is that true yes or no? >> i wouldn't characterize it as much of the technologies. we do recognize in some part of the country there may need to be controlled identified that are not in existence today, but there are many controls that are in existence today that can be admitted that will reduce the air pollution that causes ozone. >> one example, epa admits 43% of max controls need in the northeast are not unknown. stark contrast to your answer. another question. is it true that epa won't even consider whether and ozone rule is the achievable? >> is that true of?
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>> is this, can we do this? >> our job under the clean air act is to identify the standard that business or to protect the public health. that's what this will is about is leading the american people don't want a safe and healthy care for them to breathe. >> you can't take into account achieve the building can do that by law is that what you're saying? >> the supreme court has spoken to this end this is about the science and about what's healthy for the american people. >> it sounds like we need to change that law. one final question. the law does not require as you know epa to change the ozone to every five years. you just had to review it as you said in your opening comments. you say yes to change current role because the 2008 rule doesn't protect human health. and yet back home the texas commission on environmental
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quality points out that your own modeling in your assessment appendix seven page 73 would result in more deaths in houston, texas, with a lower standard. epa can't read their own data over you were expecting other ozone standard that makes health worse. any comments about that fact? >> i would very much disagree with the way they seek you characterize the data. and if you look at the entire body of data you will see that the health benefits of the proposed ozone standards are substantial. we welcome anybody's comments on the road and tcq has provided a lot of analysis which we are looking for close to. >> i will make you a deal i get a copy this has been inhabited today. thank you. >> the gentleman's time has
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expired. recognize mr. mcnerney for five minutes. >> thank you, mr. chairman come and thank you ms. mccabe. in your early in his testimony and also in response to mr. rush's question you said you would look at thousands of reports, a thousand more recent reports that concluded to protect the health and safety of the communities, 75 was a little too high. now, are we splitting hairs or are we talking about large-scale effects of? >> we're talking about millions of people that are suffering the effects of ozone pollution that at a lower level would not suffer those effects. >> so the epa's one of the epa's primary missions is to protect the health of this country and our communities? was there a rule recently that insured that the epa must look at health and safety of the community first before looking at the economic impacts of? >> that's exactly what courts have said with regard to setting these air quality standards, yes. >> thank you.
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the chairman mentioned san joaquin valley, which is my home, so i appreciate your attention, mr. chairman. but i've i have seen over the last several years improvement year by year in the air quality in our community and i think a lot of this is due to the kind of standards the epa has initiated. and one of the things that we do this incentivize some of the old diesel equipment to group replaced by new diesel equipment but that takes time. that's not something we can require all the farmers or diesel truck owners to do over a period of a year or two. it takes time. i appreciate we will continue to look at those and keep those standards in place. i just want to say that bay area contribute a lot of the ozone to the san joaquin valley, sort of like what mr. olson was saying. we get a lot of it from outside of our region. so we ask you to take special
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consideration of that and how because make those payments and the sort of penalties that rss when you don't make those things. i appreciate mr. olson's comments on the. what is the epa going to do or how is the epa going to assess drought impacts on air pollution and ozone? >> we know that the drought situation is incredibly severe and challenging and troubling in california and elsewhere. that can contribute to poor air quality because of increased dust. but we also have tools in the clean air act i can allow states to evaluate their air quality as it's being influenced by natural conditions such as of that. and we are working close with the states to make sure that our guidance and expectations our current with situations like drought and wildfires which are also a challenge to make sure
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that states are not responsible for natural conditions and that sort of thing that can create ozone situations. >> would you confirm my observation that the air quality is improving in the san joaquin valley? >> yes, i certainly would. >> do you have something to say here about that? >> i don't have figures with me congressman to although i would be happy to give this to you. but certainly over recent years the air quality has been improving and it's due to the kinds of programs that you mentioned, replacing older, dirtier engines with cleaner never once come and working very close with the agricultural community and everybody in the san joaquin valley to find sensible things to do. >> so nonattainment doesn't penalize us in the sense of backtracking the actual air quality in the region of? >> no. no, not at all the it's all moving in the right direction.
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>> thank you. could you find the difference between secondary standards and primary standards of? >> yes. primary standards are focused on public protecting human health. secondary standards are focused in the cleaner access in protecting public welfare. those are the things that we care about as the people who live in this country, economic impacts effects on ecosystems, effects on crops, effects on buildings, the other things that make our economy and our quality of life what he gives. >> okay. so then you said you're going to sit the primary and second a standards the same with regard to ozone. >> it turns out we do an independent analysis of the information that exists on human health and then on the second or impacts, and there's an extensive discussion of that in the preamble and the proposal and the clean air act science advisory committee spoke to that directly. our review of the science shows
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that the standard set in the range of 65-70 will provide the protection that the welfare impact, that the science tells us the welfare impacts require. >> thank you, mr. chairman. >> at this time recognize the gentleman from illinois mr. shimkus, for five minutes. >> thank you, mr. chairman. assistant administrator, welcome. good to have you back. personally, just you as an individual, don't you believe that had a good paying job would help benefit that is also protective of human health? >> i think it's important everybody to have a job and -- >> health care benefits. >> of course i do. >> when you hear the questions and responses back and forth that's kind of our challenge is especially as i follow up on this question come is about you all as an epa don't really have
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the authority to evaluate that was uzbek to your primary mission, which is protective of human health vis-à-vis the and regulations, right? i mean you can't wait in. you not making those cost-benefit analysis. you say you are to some extent but they are so far down a decision tree that many of us but they just don't happen. let me go to another question based upon a comment you made. because a lot of this is 75 parts per billion in 2008 many states have not met those yet. but now we are ratcheting down even more and there's a lot of uncertainty. that will move onto my third question once i get there. but in your response you talked about background is different in different areas. so are you considering a different regulation standard based upon the variance of
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background? so could one area of the country have a 70 parts per billion and another would have 65 parts per billion? >> the standard is supposed to reflect what is safe for people to breathe. and so a child living in florida at a child living in oregon should be entitled to -- >> but background is background. background is there without come in essence human contact. >> that's right. and that comes into play when states are putting their plans together and epa is working with states to take out how much time and what needs to be done in order to reach those standards so that areas that have more challenges to -- >> but different areas of 70 parts per billion background you can't get them to 65 through the power of government. >> but there are two very important element to the standard. one is for the people who live
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in that area to know whether the air they're breathing is healthy or not. >> so they should move? is that the answer? get out of the 70 parts per billion area because it's not healthy. >> know, but they should know that when air quality is bad that they might want speed what should they do? it's natural occurring. that's the background. >> right, but understand that ozone changes from day to day and there are -- >> so they should take a vacation during those days? ucr problem. i think in one this out, i would hope that background is important. background should be a standard. we should not try to have government force something that's not naturally occurring based upon nature with a man's intervention. >> if i could clarify a point on the background, because i think it may be people may be
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thinking that this is a pervasive. in fact, across the country most of the ozone that is contributing to high value is a locally or regionally created. there are very few areas, very few parts of this country where background can get as high as approaching the level speed but you understand our concern even if it's very low possibility anyway, someone to move on to the last question. we just finished our congressional baseball game last night. we lost again. but it makes me think about what chairman whitfield was addressing. had we started again and then halfway through the game the strike zone changed or in the second inning the number of outs changed, or the fourth inning, the foul line changed, or the outfield walls got moved in. that would make for a very frustrating, impossible game.
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don't you agree? >> ozone is not about rules. it's about science. >> this is about utility mact automatic, cement rule cross air pollution from 111(d), 111 be out the ozone, different standards, particulate matter tier three. we are changing the rules on the fly and people are creating jobs in this country cannot manage it it. and that's her problem with what's going on with the epa and i just got the bounce of my time. >> this time recognize the lady from california for five minutes. >> thank you, mr. chairman. thank you, ms. mccabe for your testimony. and maybe it's a bias because i event a public health commission and longtime. but when it comes to air quality i believe our focus must be primarily on protecting public health. this is the standard set by congress in the clean air act. its extent is been upheld by the supreme court, and for good
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reason. clean air has very real and specific impact on health and well being of all americans. this is underscored by our ranking member bobby rush from chicago where they no thing or two about air pollution, too. healthier children, parents and deployed translate into very real economic benefits. i would say to my colleague mr. shimkus comp committee case in the other direction, that good jobs with health benefits which he is arguing for or even better in the context of clean air. and even polluters a benefit from healthier employees taking fewer sick days. so my question is just asking you to elaborate on this back. what is the economic value? >> it's absolutely true and i think many agree that a clean and healthy of our but is very positive for the economy as well as for public health. we are illustrative analysis
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shows that pakistan of the 60 parts per billion they would be benefits in the range of 6.4-$13 billion to the economy come in for 65 parts per billion, 19-38 billion i come from some of things you cited which is missed, fewer missed school days less missed work fewer visits to the emergency room, that sort of thing. >> some of those strengthening ozone standard because it would increase the number of nonattainment area. does the clean air act with our epa to set ozone standards based on how many areas currently meet that standard, or based on protecting public health? >> it's based on protecting public health. >> for those areas they need to make improvements, and many are in my home state of california what resources are village of lower the ozone -- i think the word smog was invented in los angeles area. i've been a tiny bit to the north of it but we still struggle every day.
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on these areas on their own or does the federal government provide assistance it looks absolutely. this is a partnership between the federal government and the state government. the federal government assist in a number of ways. one is by promulgating national rules like tier three, bring tremendous benefit. and other rules that make sense to do it at national level. would also help the states by providing financial assistance and support, technical assistance and grants, and your area has certainly benefited from those sorts of programs that can be very targeted to the specific needs of a particular area. >> thank you. and as you know well and i would like to turn to the topic of climate change briefly this is increase of impacting all aspects of our economy and our daily lives. storms are getting stronger, floods are getting worse droughts as inevitable in california and wildfires are getting more severe. climate change also increases
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the levels of ozone in the air we breathe. would you explain just very simply how climate change is expected impact ozone levels and how would this affect our human health? >> as the climate gets warmer, warm conditions are what is conducive to ozone formation. so it can lead to increased ozone formation and circularly ozone is also a climate pollutant so it helps contribute to the kinds of effects that we are seeing. >> and then just briefly finally, i hear so often industry as well as some here in congress cite high cost estimate as a reason to oppose strengthening environmental public health standards. it's the same argument being used against the proposed ozone standard. while i believe costs of a recollection should be considered and there's there is a way to talking about doing that, these costs must also be weighed against the benefits. it's important remember that
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health benefits estimate represent real people and real lives saved. how do the estimated health benefits of epa's proposed ozone standards compared to the cost quick snort what is about balance, that trade on? >> as we laid out energy as compared benefits outweigh the costs by three to one. >> this is based on studies that actually to demonstrate this? >> it's based on all the information that is available to us, the things that people are likely to do and the cost associated with the cost benefits associated with health benefits. >> thank you very much and i yelled back. >> at this time recognize the gentleman from mississippi mr. harper, for five minutes. >> thank you, mr. chairman. thank you for being here today. it's good to have you back. look, just a quick question. if we were able to somehow eliminate all ground-level
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ozone, they would still be people that would have respiratory illnesses. you would agree with that wouldn't you? >> sure. there's lots of things that contribute to respiratory illness. >> and as we learned how to measure more minute levels of any type of item that is something when we have to look at. i'm really concerned as we look at this if we revise the current ozone standards how that's going to affect transportation conformity requirements. so if you could just briefly say what our transportation, transportation conformity, what does that mean? >> transportation conformity is a provision in the act that wants to make sure that as states and municipalities are working to improve their air quality, that transportation planning is taken into account and that transportation planning takes air quality into account so that areas will not undermine
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their efforts to improve air quality inadvertently through transportation projects that could increase air pollution. >> so states and localities will have the responsibility to? >> they do have that now and working with the federal government. >> and in order to make that demonstration, what kind of modeling tools will these cities need to use? >> there are tools out an existence now and tools that epa and federal highway provides. we work with the states on to analyze those impacts. we have been doing this for a long time. >> how reasonable or what type of situation isn't for smaller cities? ..
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will come in to attain the standards through these measures. smg you know, we have lots of the important issues, and one of those issues is what is new about our highway bridges infrastructure, issues that we have in this country. and then many of those need to be repaired. we need new ones that need to be built. stringent ozone standards make it harder for states to show that proposed highway projects conform with ozone standards. has epa considered the economic and safety impacts that could result with more stringent standards brought crucial transportation project? >> i don't think that we anticipate or have seen conformity blocked important transportation projects. especially ones that are needed for safety reasons. >> you haven't seen that under the current but if we have more stringent requirements that causes additional cost do you
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see, explain that? >> i don't expect that the system would work differently in any areas. we don't expect a lot of new areas to be coming into nonattainment under these standards so the areas are generally familiar with and already working with the transportation conformity system. but all of the provisions that are in there about making sure that important safety projects go forward and other important projects go forward those will all continue to apply. >> thank you i yield back. >> chair recognizes gentleman from texas mr. greene for five minutes. >> thank you mr. chairman, welcome mr. mccape. >> ever denied the knock standard? >> the knock standard? >> yeah. >> there's the no2 standard maybe that is what you're referring to epa in past has not always met its deadlines i would say. >> that is the other thing if
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epa hadn't delayed the standards when the law was prior to epa to review the ozone standard again, what would be the regular timeline? would it be 2015? >> the last time the ozone standard was revised was in 2008. cleaner act is every five years so 2013 would have been five years. >> in your testimony you stated that epa examined thousands of scientific studies including more than 1,000 new studies published epa last revised a standard. the ozone knocks proposal epa acknowledges a brand new scientific data epa couldn't consider, also e pennsylvania states there's a significant uncertainty regarding some of the studies that epa did include regarding the lowering of standard. most importantly by 2017, following standards would be in place that would significantly affect ozone and precursors ozone knockses at 75 parts per billion.
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three vehicle emission and air quality standard from the utility mac new source performance standards for volatile organic compounds and particlat matter that knocks would also be important because epa acknowledges reduction of particlat measure account for two thirds of those benefits. why is lowering the standard not more appropriate after 75 per parents billion standard time to take effect and epa reviews new and related information and data say 2017? >> well, because the clean air a act gives us a timetable of every five years and we're late on that. and because this is about letting american people know what is heat air quality for them. >> in earlier knocks, epa stated in earlier decisions based on the applicable statutory requirements and volume of requiring careful evaluation epa
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estimates it would take two to three years to incorporate over a thousand new health studies and criteria documents given legal restraints in the fact that epa what is missed deadlines for completion of ozone review cycles administrator or concluded that best action course of action would be to complete the current review based on existing air standard and proceed as rapidly as possible over next review. why would epa not make a similar decision now since we're in 2015 now? >> because we're now in that regular review, we are past our statutory decline, in fact, we're subject to a court schedule to -- finalize this rule. >> well, my earlier question, there have been times that epa has delayed it in the past. is that true? >> on our regularly required five-year review -- >> yes. >> there have been times when we have not met that deadline.
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i think you're referring to zone reconsideration thaftion not a mandatory requirement under clean air act. but for our mandatory five-year review cycle we have not deliberately delayed but missed deadlines and we're in that situation now. >> i guess that the concern i have in you've heard from other members is that we haven't met current standard yet getting ready to see really things happen and so to put a new standard on with all of this is -- maybe starting too early before we see what the benefits are, an other things that industries and everyone else is complying with, and again epa has delayed it in the past. but for our two-year delay while all of these other things come into play, and we'll have better data then to be able to look at it. >> i will say congressman green that the effect of those various measures will effect air
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quality. and so if a standard is revised and folks need to look at which areas do and don't meet the standard, all of those programs like mercury air toxics tier three is bringing air quality down so that fewer areas will be non attainment and those programs will provide assistance in order to improve air quality in those areas. >> mr. chairman one of my concerns is that part of our particlat party in my area is because of the lack of infrastructure improvements. so we can actually be hindering those infrastructure improvements if we make it more difficult. and i'm out of time but i appreciate you being here. thank you mr. chairman. >> this time recognize gentleman from west virginia. mrs. mckenly. >> what is time frame -- i don't believe i can get through our questions. is there a time frame to be able to submit written questions? >> yeah, ten days.
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>> within ten days, thank you. welcome back. my question is that, should a rule like this that helps public health be withheld? because of a regulatory burden that we've been referring to here? >> i'm not sure i understand your question congress -- >> there's regulatory burden that is beginning to be imposed with us. should the epa withhold the bill? or the rule? >> the cleaner act directs epa to set the standards and the supreme court has said that that is our job to do, and that the issues related to implementation are a separate matter of a separate consideration. not to be considered in determining what the proper public health level. >> curious because it goes back that you've heard several times mentioned here that the -- the president did step in and
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say there were some -- thftion going to cause regulatory burden and therefore he asked that the rule be held back for a period of time. >> that is an accurate statement isn't it that the president did intercede? >> that was in a reconsideration event -- >> that was in 2011. i'm curious, so part of the question is which changed if he felt that this rule should not have proceeded because it had regulatory burdens with it, what is improved since 2011 that is it going to be less burdensome to industry? >> the decision to -- >> those were his words, you know -- director that he just said if he has a regulatory burden, i think we should hold it back. >> i respectfully disagree that is what he said congressman, that that decision ftion made in the context of knowing that there would be the required five-year review and the decision there was to defer and
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stop with the rei reconsideration process in deference -- >> i underscore importance of regulatory burden and regulatory uncertainty i have requested to withdraw the draft ozone standards. i think that is interesting because i'm curious to see what has changed. how the economy is improved or the regulatory burden is less, but you have answered as -- i did limited questions here a time on this. i'm just curious a little bit about how a county is supposed to work. in functioning through it. i've got up to my 20 counties that i represent 75% of those counties are going to be noncompliance if you go to 65. 75%. so how are they supposed to -- in a real world not from
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akademia but supposed to function with nonattainment county. 75% of my counties 15 of those counties are going to be -- what are they supposed to be? >> well, there are counties all across the country have experienced poor air quality have been designated nonattainment in the past, and states work with those counties to get programs in place to improve air quality in those areas. >> give me an example you're talking 30,000 feet. let's get down to how do they change air quality in jefferson county, west virginia right now 81? >> i can talk more -- i can talk better about my own home state of indiana. >> well -- these are just three counties in a row that they average 73. so they're already going to be so far over. are we telling them and kids and families when they sit at their kitchen table and can't get a job it has because their air quality was fine at 75, but now as they get to 65 no jobs coming
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to west virginia? >> what states do in nonattainment situations is they look at the local sources of air pollution. and put in place sensible measures to reduce those. and it might be local industry, it might be -- >> local industry you're telling that local industry you change? >> local industry has controlled air pollution remarkably over the years. i come from indiana, i was the air director there. we have an area northwest indiana that -- >> we have some counties in like tyler county, and they may had just i won the give -- we have some that have one industry. they get their nonattainment. >> many counties for which the air pollution is not generated right within that county but it is generated regionally. that is why states work with -- metropolitan areas that is why -- the clean air act has provisions to make sure that if states are contributes to down wind states those take responsibility that is why epa moves forward with
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federal programs. such as the tier 3 which makes motor vehicle traffic cleaner everywhere including in your state. >> i have it here to follow a metric how do we get down through to make sure there's job opportunity? where are the tribes excluded from this regulation? >> the tribes aren't excluded. the tribes have the opportunity to -- to regulate themselves and if not -- >> but the proposal says that tribes with not to adopt or the standards for ozone, addition tribes are not obligated to conduct monitoring for ozone or adopt am bee yengt requirements. that sounds like an exemption to me. >> federal government implements standards in indian country unless a tribe chooses to seek to do it itself. so standards apply in indian
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country regulations get put in place in indian country but the federal government has initial responsibility to do that. >> i know a way over -- how they're going to change their operation. thank you. >> gentleman time has expired he can submit those questions at this time recognize lady miss castor for five minutes. >> thank you mr. chairman. thank you for calling this hearing, and welcome. you know, listening to my colleagues comments today takes me back to the time when i was younger, now the clean air act was originally adopted by thet3 congress in the 1960s. is that right? >> yes. >> and there were significant amendments in the 1970s and especially in 1990, and you know, i think back to -- to we've all kind of lived through this era. i don't think anyone can argue that america is better off because we breathe cleaner air. and we've been able to balance
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environmental progress with economic progress. we have the strongest economy in the world today. yes, we have our challenges, we have had our setbacks, but we've been able to combine environmental progress cleaner air, cleaner water oversight of chemicals with economic progress, and good jobs. i remember very well in the late 60s and 1970s walking outside in my home in tampa florida, and the air was awful. it was -- we're a warm climate so we have very smoggy days. now, it's -- it's much better. it is noticeably better, and anyone that lives in the 60s and 70s whether you're in an industrial area or not you -- you understand the progress that
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we've made. i want to thank you for your attention to cleaner air that we breathe. what a privilege it is to live in the country that has been able to show such environmental stewardship and balance it against the economic progress. and that is the history of the country, and i'm confident that we can continue to make that kind of progress. now, miss mccabe what is ozone standard right now? >> 75 parts per billion. >> what does that mean exactly? >> that means that in a billion unit of air no more than 75 of those should be ozone in order to provide healthy air quality. >> how long has it been that 75 -- >> that was adopted in 2008. >> in what was it before that time? >> it was 85. >> so now the proposal epa's proposal, directed by the court directed by the congress and statute is to go where now?
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>> what administrator proposed was a level set between 65 and 75 parts per billion. >> and that was after significant discussion by the clean air scientific advisor committee. what is clean air scientific advisory committee? >> that is an external expert panel that epa convenes and has assisted us with all reviews of national ambient air quality standards so a panel convened to review all of the science that epa develops our office of research and development and office of radiation and they go through a very lengthy process of reviewing multiple documents both science documents and then policy documents and give us feedback on the science that we're looking at. >> so they considered -- all sorts eve levels? >> l yeah, right right they looked at all of the studies that we looked at. they considered all of that information and our evaluation
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of it. >> in fact that committee indicated that -- concluded that there's adequate scientific evidence to recommend a range of levels for revised primary ozone standard from 70 parts per billion to 60 parts per billion. and with regard to upper bound of 70 parts per billion committee said, based on the scientific evidence, a level of 70 parts per billion provides little margin of safety for protection of public health. particularly for its sensitive subpopulation like children, elderly, folks with respiratory problems, although a level of 70 parts per billion is more protective of public health than current standard it may not meet the statutory requirements to protect public health with an adequate margin of safety. what are they saying there? >> well, they're acknowledging first of all that it is thed a mrtd -- administrator's job to protect
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the adequate margin of safety. what they're saying is they looked at all of this information, and that they see evidence in the science record from the level of 70 down to a level of 50 that shows adverse impacts on public health from ozone levels of exposure and what they're saying is that at the top end of the range there's less cushion. less margin of safety than at lower levels within that range. >> so this was taken into account as administrator developed a proposal. >> it was. >> and, i mean, when you considered that the public health benefits for children and elderly respiratory diseases, i mean, we all know someone in our family or we know someone with asthma 26 million people in the u.s. are estimated to have asthma. 7 million children certainly we can continue the environmental progress to improve the public health in balance it against the
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economic needs of the country. i think this is the united states of america anding it can be done. thank you for staying true to the -- >> thank you recognize a gentleman from virginia, for five minutes mr. griffin. >> thank you very much mr. chairman. as you know i represent a fairly rural district. includes the appalachian mountains, blue ridge mountains throw from the smokies, my understanding is that under epa rierts in order to construct a new source of emissions or expanding existing source, there's a need to find offsets. is that accurate? >> it depends on how an area is designated. so areas that are the least -- polluted areas in terms of ozone , it changes as air gets more and more severely polluted. >> okay. kentucky's air regulator raised
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impacts on rural counties in particular he stated the statutory and regulatory offset requirements were severely restreblght economic development in rural counties since by deaf nation areas have no existing offset emissions available for new new sources. rural counties are disproportionately with little economic development for rural counties can states seek relief from some of these offset requirements? >> actually a provision in the clean air act that specifically focused on rural counties that may be nonattainment because of transported air pollution. so we would work with any state that wanted to come forward to talk about rural counties. >> you represented or you said transported -- ozone. the problem that i fear that some of my areas may have with the newer requirementses as well is that it is not transported but it is natural. as you know, trees produce
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volatile organic compounds which combined with sunlight produce ozone. thus the name smoky mountains thus the name blue ridge mountains. because the mountains themselves with their trees produce ozone. so it is not necessarily transported ozone. it is ozone because we are, in fact rural and have trees that produce some of this, it is not 80% as ronald reagan once said but it is a significant contributor particularly in rural yars like mine in eastern appalachians, in fact, scientific american in the june first, 2014 story singled out or said that according to their research black bomp and willow are significant producers of volatile organic compounds. so is there anything that would give us that offset, or do we have to go out into the forest national or private and say you've got to cut the black gum,
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pop or oak and willow but okay to leave the birch and low volatile organic compounds? >> as i mentioned in response to preeftion question. our science shows that areas that have significant challenges with background ozone are in the rocky mountains. higher elevation areas. we're not seeing that kind of a situation with background in other areas of the country. >> so you think that central appalachians will be okay? >> i do. >> but what about thisoffset not transported would that rule cover naturally occurring ozone? >> so as we look forward on i would be happy to get you this information mr. griffith on virginia particularly, but as we look at areas that are likely to be in nonattainment, we will look at air quality in future years to make those
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determinations. and i -- i don't think we're seeing widespread nonattainment in rural areas. but in those areas where we do, there are opportunities there to work with those areas. >> all right. i appreciate the opportunity to work on that. i'm concerned about it. i'm going to have to can you questions offline because time is precious. and we don't get so much. but if you could get us basic process on what the states have to do. what is the process for reviewing state implementation plan and rains of time this process can attack to complete. months or years and if epa doesn't approve and i should answer at this point if epa doesn't approve of state implementation plan what happens to the state subject to a federal plan? and would that be litigation between the states and the e pennsylvania over that? >> yeah. so the clean air act lays out aft steps behinding on severity of the area that dictates how
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much time the states sprp -- but typically if an area is considered most areas the last time around were designated as marginal nonattainment not obliged to do a plan because they were expected to come into attainment and many do for ones that are moderate or above they typically have three years. epa works with states to try to make sure plans -- >> what happens if a state plan is not approved? >> generally we work back and forth with the state to get it to a place where it's approvable. >> what if it is not. what do you do come up with a federal plan? >> if a state really didn't want to make a plan that was approvable which most states do the clean air act does provide that epa would step into a federal plan. but i have to say that that is -- very, very rare. in this situation because both because states want to do their plans because they are possible
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to do them, and because we work hard with the states to make sure -- >> i have to go but in places where they don't want to because you've made standards so low you may see more litigation, thank you. >> this time right now gentleman from new jersey, for five minutes. >> thank you mr. chairman. a someful my colleagues colleagues are quick to argue that epa proposedded ozone starngdz hurt the economy but cleaning up pollution can benefit human health and environment since it is enacted in 1970s. clean air act provides a perfect example how to make study progress and cleaning up the air while growing the economy. miss mccabe do we have to choose? what is the history of the clean air act tell us about our ability to cut pollution while building the economy? >> it shows us that two things go hand-in-hand reduced pollution in the economy. the economy has grown. we have also shown that this country has businessings in this country have innovated have come
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up with pollution control technologies that employ american works and make us leaders in the world on selling this kind of technology. >> when we talk about air pollution regulation, my republican colleagues also focus on cost that they aren't talking about the cost from exposure to unsafe air but cost of polluters cleaning up their act. again mccabe how do cost and benefits of the ozone standards stack up? >> well, we look at both. we laid both of those out and in our analysis that we put out with our proposed rule it showed that their benefits would outweigh costs by 3-1. >> and along those lines national association of manufactures estimates that cost of this rule would be 140 billion dollars annually making the new ozone standards the most expensive rule making in hurst. my understanding is that epa's cost estimate approved by office management and budget was much lower. sow yo tell us how much does epa
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expect this standard? >> our estimates again these are e lust are arerative but 6 a parts per billion in the rage of 98 for the standard of 70 parts per billion. sorry i said that completely wrong. costs are range from 3.9 billion to 15 billion. depending on where the standard is. : so this based on your experience that 140 billion price tag that doesn't seem reasonable to you? >> it does not match our evaluations. >> i mean this concentration of course, i think has been misguided over history of the clean air act industry is king thely exaggerated to the cost of controlling pollution. how are these doomsday predictions measured up to reality? >> well, they -- they haven't in given the information that folks have had in front of them in 1997 there
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were similar claims made that 1997 standards were going to kill the economy. an that hasn't come true. >> i just wanted to ask you something based on some of my republican colleagues not trying to be critical of them. but can you confirm this. can you confirm that under epa's projections for west virginia, and virginia there will be zero counties in 2005 that will exceed 60 or 75 parts per billion does that sound right to you. >> that does sound right to me. >> i have a minute and a little over a minute. get to other questions about healthing and science base standards. clean air act requires epa to review science to standards every five years. to ensure the best information is used. epa examined thousands of scientific studies which reviewing the ozone standard, and given the body of evidence
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what are health impacts associated with breathing air that contains ozone and what group was people are most at risk from breathing air containing ozone. >> ozone can have a range of impact on res pray story and flangs of lungs asthma, especially a significant for people who have asthma were for children, for etd elderly and compromised respiratory systems. companies show association between premature mortality and exposure to ozone. >> so i understand that clean air a scientific advisory committee and epa scientist recommend that they strengthen from 75 parts per billion to a level within the range of 60 to 70. so the administrator provided a strength in the standard to leafl within range of 65 to 70. is the proposed ozone level aggressive or over deal isous action by epa as some may claim? >> we believe that range that the administrator proposed is well supported by scientific
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action and affirmed as you noted by our external peer review panel. >> thank you very much. thank you mr. chairman. >> this time right now is gentleman from missouri, mr. long for five minutes. >> thank you mr. chairman. miss mccabe at the same time epa is moving forward with a proposed or excuse me, with this prpbzed ozone rule, it is also proposing its clean power plan which would require states, plans to submit to the epa. how can we realistically expect epa to manage several new rounds of state plan revisions that will be needed with a new ozone standard at the same time that they're reviewing plans for clean power plant? that is going to take a lot of money and a lot of people isn't it? do you have that money and program? >> clean air act asks us to implement and use our resources
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to work with the state. to get this work done -- >> you expect to. but is it practical? is it feasible? a lot of people want to do a lot of things, have lofty goals when push comes to shove they can't get it done. do you realistically think that this is something that the agency can handle? >> i do congressman. this is our job to do, and we'll make sure that we get it done. >> okay i know it is your job but i question how it can possibly how you can possibly have resources the time you're behind on several things already. time, the money and the employees to accomplish the goal. >> some of the work is overlapping as well. some of the technical work that we do in materials of air quality modeling, and it's efficient to do some of these things together. so --
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>> some of the state plan revisions overlap? >> technical work that underlies the work that epa and the state need to do in order to implement these programs. >> okay. >> few months ago i met with some city officials from springfield, missouri my hometown i represent springfield, branson, missouri joplin southwest part of missouri they're one of the most forward thinking cities that have done more work on integrative plan than about anyone, in fact, they were invited out to i believe it was xand alexandria them and one other city, i think i can't remember right now the other city but two cities in the united states invited out to present how they did their plan and what they do. but anyway, they discussed integrative plan from the
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environmental protection agency after analyzing the cost of the mandates over next 20 years i've heard people speculate that here today that things are never as a bad as they seem. but if this was even 50% accurate, it is not doable. it is devastating. and they found that complying with the epa mandates would cost each individual in any district each of my 751,000 constituents 46,000 dollars. are you going to cut that in half if you like and say 23. but anyway cut it in half again if you luke. but it is not feasible. it is not doable. missouri alone is looking at billions of dollars and compliance cost for prpsessed regulation and financial impact that it will have on everything from manufacturing transportation, it is beginning to like i say -- affect having an impact on each one of my constituents. do you all look at the
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comprehensive, financial economic impact to these regulations at all? that they're going to have on the states and our constituents? >> i'm not familiar with exactly the study that you're talking about congressman. >> i will get it to you integrative plan city of springfield for the next 20 years. i will be glad to provide that to you and your staff. but -- let's say that you were familiar with it. at what point, my question is do you all look at the economic impact? >> so each rule looks at its impact it is in light of the rules that have come before it. and so there is an understanding of the -- of the rules and the impact. both benefits and costs that are associated. >> but there's a weight girch to costs? >> sorry? ferghts there's a weight, there's consideration given to costs? >> wherever we do evaluation cost of benefits.
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>> okay. >> i guess i'm bout iewf time and morgan stole a question. so chairman, i child yak -- i yield back. >> thank you mr. chairman, thank you for joining us today. if you, how does a market price risk? you know thing, and you know what cost is of something, it has a prize. and you know that prize. but if you don't know something then the price is higher because you have risk. right? yeah, in 2010 when epa proposed going to 60 parts a billion said that would cost $9 0 billion dollars in 2014 you reduce it had to 40 billion dollars. what happened over that
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four-year period to make the cost go down? >> i think when you're comparing is the proposal that was put out under ozone reconsideration compared. >> just tell me what made it go down. >> in the first one we were looking at a change of the standard from the previous standard of 85 parts per billion to that level in the range of -- >> this is not a 75 to 60. >> that is right. >> that was a reconsideration of the prior standard. >> okay, thank you and in your proposal to go to either 7 0 or 65 a significant control of the technology doesn't exist today. that is where the risk question comes in. do you know what it cost to offset in the houston area today? it is about 170,000 a ton. so where did the epa price hit unknown risk technology on a part-time avoided ozone? >> so we looked across the -- >> just give me a number. >> the number?
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>> a number -- >> i believe it was -- >> about 15,000. >> that is what i was going to say. >> 15,000. so if we know in texas what the costoff set a ton of ozone is and it is 170,000, where did we come up with 15,000 for a imaginary technology that doesn't exist? where in the world did that come from? >> by looking at the history of the cost of pollution control technology over the years and this is actually a conservative estimate based on the actual cost to control pollution -- >> a publicly available document? >> all of our assumptions are publicly available. >> let me say it doesn't past the smell test. when we know today what the cost is for an offset, and then you have a imaginary technology that does not exist and we just price it at a give it a wal-mart price, that is crazy.
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let's talk about background ozone for a minute. here's a map background ozone map, texas has about 70 parts per billion on average. 72 parts per billion of background o design. so if you take the level to 65, what is texas supposed to do? get a big vacuum and send it down to ozone hole in antarctica or what? >> i'm not familiar with that map but that number doesn't sound right to me we can -- >> do something a little bit more discreet, how about rocky mountain national park has a background of 77. there's no industry on rocky mountain national park. >> as i mentioned particularly in that part of the country there's a few area where is we're seeing high background -- >> what do you do? you have to have a national standard a minute ago. how are you going to clean up rocky mountain national park and take 65? >> it is not responsibility for a cleaning up air pollution that it doesn't create an mechanisms that make sure that -- >> what is a mechanism? how do you have rocky mountain national park?
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>> to the extent that pollution is coming from places that we can control -- >> well in this case it is not. >> well -- >> and 77 parts per billion background means by definition not being produced there. coming from somewhere else. >> right. >> naturally occurring causes or chiern. >> china. >> coming from a motor vehicle around the country where that pollution is coming into that area, our rules will help produce that. >> talking about fast for a minute under your regulatory fuel standard, the epa concluded that the program would contribute to ozone as consequence of increase of ethanol use. disregarding that epa proposed that latest targets through 2016 lead to higher levels of ethanol and according to the -- to the studies of the journal of research that measured ozone emission of ozone forming from
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ethanol refineries it is five times higher than the epa's original estimate. so epa on one hand is saying you have to reduce the 60 to 65 parts per billion and on the other hand you're trying to cram more ethanol in the system which has a five times worse -- ozone impact on the economy than does production of regular gasoline. i'll submit regs of my questions in writing. thank you, i yield back. >> yields back at this time recognizes gentleman from north carolina mr. hudson for five minutes. >> thank you mr. chairman and a being here today. i represent rural north carolina i group in outdoors. i understand our importance of presenting the environment but like many of my colleagues i have concerns about a proposed rule, and i'm been fascinated from colleague miss castor said air in tampa florida is clean used to be polluted but now it is cline but i looked up
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hillsborough and levels are 471 but her deaf mission is clean, i believe her. but tampa florida is out of attainment, and what i really want to talk about is one of my can be counties montgomery, a rural county. majority of the county is part of a national forest this county has been decimated with job loss and lost manufacturing jobs. there is no major significant industry in the county. yet, this county of 66 parts per billion in ozone so out of attainment in the standard for 65, and again this is a beautiful county. got two rivers, got a lake air quality is wonderful. it is a rural beautiful community. what would the epa do with a county in the situation like that? >> well, i think we need to be careful about making assumptions about which counties will and won't be nonattainment because we don't know that. we don't know what a final standard will be in a decision is made to revise it.
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but also those decisions will be made on future air quality data and they'll be -- numbers that i believe you're citing are based on air quality data from 2011 through 2013. we will use current -- most recent air quality data when we make those decisions and air quality is trending in a good direction. so i think we need to not assume an area will be -- will or won't be nonattainment based on information that is from prior years. >> diewngs level would stay above 70? >> which level? >> the epa sets for air quality? >> not speaking to what decision might be finally made. i'm speaking to information that people are citing about whether areas based on air quality now will be in attainment if there's a revision to the standard. we just don't know that. that being said we've talked and i understand that comments that many of the members have made about being concerned about rural areas and we do have the ability to work with those areas
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that clean air act does recognize that there are areas that don't control their air quality and they don't -- clean air act doesn't hold areas responsible for reducing pollution. if it is not being produced there. >> well appreciate that, and obviously, county like montgomery county needs jobs and if we get to a nonattainment situation can't hire new people or industry it is devastating. what specifically would montgomery, north carolina, do if hypothetically if it were in nonattainment, do we, you know, file a lawsuit against a local city or -- how do you? >> programs like the motor vehicle standards will improve air quality everywhere in the country where motor vehicles are used. now, this is an example of how that federal state partnership works where federal programs bring clean air all across the country and will take care of the air pollution in many areas where there's not a lot of local industry that it is
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contributing. >> have to give up our pickup trucks and suburbans? >> sweet turns over buy newer cars. fuel getting cliner so air quality will improve. >> what percentage do you think motor vehicles contribute to that? >> motor vehicles contribute ab third of the air pollution in the country not just cars driven in montgomery, county but in the region that are contributing to regional air pollution. >> i appreciate that. mr. chairman, i have three resolutions i would like to insert in the record. one is from regional chamber of commerce, that is from the board of commission ergs and a third is from the urban area metropolitan plane organization all of these oppose this new standard an can consent to the record at this time. : objection to order. >> thank you, and i would again, thank you for your testimony. but i just have concerns that -- we're setting standards so low that nair not attainment, and
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when rural areas that aren't near industrial areas not near big cities can't reach attainment, significant portion ten of them it would maybe use the wrong metric. that is my concern. thank you. mr. chairman i yield back. >> recognize lady from north carolina, five minutes. >> thank you mr. chairman. thank you miss mccabe for being with us. >> i want to start off as my colleague from north carolina was pointing out basically the concerns that we have in north carolina. you know, just in our home state alone this rule will kill over 13,000 jobs a year and decrease the state's gdp drastically at a time when we can afford it the least. this proposal raises serious concerns and i look forward to this discussion. i definitely have some questions for you. starting off with -- in september of 2011 president obama requested that your agency
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withdraws proposals on standard. based on his quote concerns about the importance of reducing regulatory burden and regulatory uncertainty particularly as our economy continues to recover end quote. your agency agreed to withdraw the proposed standard now issuing revised standard. can you tell us what changes you made to decrease the regulatory burden which now allows you to move forward? >> well, first let me explain that at that time the agency was engaged in a reconsideration of the 2008 ozone standards. which was not a mandatory duty we're under a mandatory duty to relook at the standard every five years, it was last reviewed in 2008, so this is our required review. so there are less -- >> less regulationings now? >> this is about science. this particular decision is about science and public health. and when and what science says is healthy in the air to breathe.
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>> not to interrupt you but to point out that the president said that he was asking for you to decrease the amount of regulations. what regulations have you decreased which can move us forward. you're looking at the science i'm a nurse i understand science but what is it that you have done to make this process move forward so that we can all come together to work on it? >> well, we've put out regulations like the tier 3 regulation that i mentioned a minute ago which will bring improved air quality all across the country that's -- that's things that states won't have to do. >> less cumbersome than what existed existed in 2008? >> a provision that will help states and municipalities meet ozone standard. >> moving on, you know first question that any economic developer asks when locating new plant or considering expanse of a existing plant is attainment status. i know my colleague from north carolina we were having this conversation just a moment ago.
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areas designated nonattainment are immediately excluded from consideration. clean air act requires that clear air scientific advisory committee to advise the administrator of any adverse public health, welfare social, economic or energy effects which may result from various strategies for attainment and maintenance of such national am bee yengt air quality standards. giving the adverse economic impact of a revised standard, why are you not requiring case act to take all of these things into consideration in regard to economic development? >> in setting the health standard, we have been specifically directed by the supreme court that looking at the implementation part is not setting the health standard. >> so the supreme court told you that economic development is not significant? and should not be considered? >> is not relevant to setting of the public health standard. >> okay. moving on. nonattainment designation
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reduces development including development associated with military basis this is particularly important for north carolina as we have many strong military presence there. the standard of the level at the natural background as is countrily and place at risk our military readiness. how is your agency planning on ensuring that your revised ozone standard will not jeopardize national security? >> congresswoman i'm not aware of any instance in which ozone standard has interfered with our military readiness. >> well i would love to work with your office because my understanding there are some situations especially affecting some of our north carolina bases now that this will -- this will dramatically affect. so i would like to continue that conversation. >> we'll be glad to follow-up. >> great. >> now lastly, and i've got 31 seconds, you know, part of this continued problem is how our
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manufacturers going to be able to deal with this technology in a manufacturer simply cannot meet these standards what are their options? are they to -- to buyoff sets to close their doors, what do we do? how do we help our manufacturers? >> we work with the states, and with the business industry. we look at the -- the where the pollution is coming from and we develop a programs that are targeted towards addressing the most cost effective reduction that is what we've done through the whole history of the clean air act. we're manufacturing has moved forward, has implemented new technologies, has been able to grow. >> do existing controls exist right now to achieve the 60 parts per billion standard or the 465 parts per billion standard? >> keep in mind that administrator did not proposal a 60 part per billion standard. 65 to 70 which is what she proposed we have identified a
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number of already existing controls that will -- >> what are existing controls? >> things like -- cleaner engines scrubbers knocks control, lower voc paints and coatings, a variety of technologies that have been developed over the years that many areas are not yet employed that could be employed. >> thank you i yield back. >> ladies time is expired this timing right now gentleman from ohio mr. johnson for five minutes. >> thank you mr. chairman and thanks for joining us again today. you know, increased access to low cost sustainable domestic natural gas production has helped tremendously in fueling the manufacturing renaissance in this country. this expansion has resulted not only in cleaner gas and electricity for manufacturers but also a provides a new source of natural gas liquids which are essential feed stocks and many major manufacturing applications
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such as chemicals and plastics. a study conducted by the consulting firm nira frequently contracted by the department of energy among others shows dramatic cost increase in the price of natural gas under a 60 parts per billion standard. the study projects a 52% increase in the cost of natural gas for industrial use under a 60-part per billion standard. so quick question can we expect our manufacturing renaissance to continue under this type of scenario? >> i can't speak to that study significantly but there's an increase of development of natural gas. >> we know that. but what i'm asking you is when we're essentially taxiing it, with these standards, and i might point out to you that in a recent trip that we made to europe, rate payers, businesses,
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and residential rate payers in europe are taking a strong second look at their energy profiles because of this exact problem making their businesses noncompetitive. and their unwillingness to pay high prices for energy that is going to result from a rule like this. how can we expect manufacturing renaissance to continue when they're taxing certainlily the very energy that is providing that renaissance? >> well i don't think we are taxing the -- >> sure you are if you get a 52% increase in the cost of natural gas, under a 6 to 2 parts per billion standard that is a essentially a tax. >> you can call it whatever you want to, but it is a tax on the industry. >> i'm not sure that i agree. >> agree to disagreeing let me move on. how the epa has calculated the benefit of its proposed ozone standard. and here's the issue in a nutshell. instead of calculating only the
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benefits from reducing nitrogen oxide and organic compounds the constituents of ozone which are emits from cars, trucks and stationary sources epa also incorporated cobenefits from reducing matter or pm from those same sources of course this rule making has nothing to do with particlat matter they have a matter not to mention multiple other rules to regulate it under the clean air act. but without the benefits from pm reductions ozone rule qowld -- would have very little to show for it. , in fact, dr. ann smith of nira has pointed out that these pm cobenefits are actually larger than the direct ozone related benefits from the rule. if you don't accept nir's assessment then how about cast
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the head form of regulatory affairs, he reviewed the ozone reconsideration in 2011, and a helped prevent that proposal from being finalized because it was too costly. here's what he said it be this. i quote but on soflt agency estimates of the threrch ozone proposal, net benefits would have been zero. more overa strong majority of the results would resulted from ozone reductions but from cobenefit reductions and matter which come as an incidental benefits that reduced ozone emissions. so miss mccabe this prompts questions. first, can you explain to me and our ommittee -- the epa's legal justification for engaging in this kind of double counting? how is it that you can justify a lower ozone standard using benefits from an entirely different pollutant? >> well it is not double -- >> that is not science that is a
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shell game that is what that is, that is not science. >> not double counting those benefits are real. >> but that is not -- not what this rule, this rule is supposed to be going after ozone not matter. >> but it is having additional benefits. >> little in materials of the ozone very little in materials of the ozone in comparison with benefits that are coming from -- particlat matter, first talk to me about how transparent you've been with this to the american public. i mean, there are charts buried in the proposed rule shall be maybe with a ph.d. can infer this information about double counting, but have you or administrator explained this issue in your speeches and public statements about the ozone? have you told the american people that the benefits are coming from somewhere else? from a pollutant that is already well regulated by the epa? >> we're very clear and i myself personally have talked about cobenefits that are
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achieved by programs that we implement. >> i think it is a shell game miss mccabe and economically destructed to region of my region of the countries an to other industries that are providing jobs and economic today mr. chairman i yield back. >> yields back. >> i have a couple of other questions i want to ask, i want to ask you a couple of other questions, science advisor committee is appointed by who? >> the science advisory committee is -- there's an office within epa that administers the science advisory board and has a very open process for -- >> the people who serve on science advisory committee, how are they selected? >> they are nominated -- >> by who? >> either by themselves or by otherses that is through a public process. : and then who makes the
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decision of who serves? >> that is a decision made within the agency by our offings of office -- >> epa decides who serves on the science meet? >> through a robust process. >> and how long do they serve? >> i don't know the answer to that. >> how many people serve on that committee? >> i don't know the answer to that. >> can you get us a list of the names of people on the committee and how long their term of office is? >> yeah. i believe it is only parking lot order of four to six years. something like that. >> owing, thank you. :
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ozone standard in 2013 ultimately this comes directly from the president on the ozone ambient air quality standards. from 2,011. ultimately i did not support asking state and local governments to implement the new standards that would soon be reconsidered. do you have any comments? >> yes. >> that statement by the president. >> the president was recognizing the review of the ozone standard was already underway and that is what he was directing the agency to focus attention on if i can clarify something said before. i agreed with
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the characterization of the scientific advisory board has bipartisan. i think it is more accurate to call it nonpartisan. >> thank you so much. mr. chairman, i have no additional questions but i have a unanimous consent request to enter into the record a matter from the public health organization opposing legislation on amendments that would not regulate epa worked to update ozone status and a letter from the national association of clean air agency supporting the epa proposal to revise the current ozone air standards. unanimous consent that they be entered into the record. >> without objection, so ordered. >> with that i yield back the remainder of my time. >> i ask i ask unanimous consent the following documents be entered into the record: a survey released by the survey air pollution control agencies entitled state environmental
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agency perspective on background ozone regulatory relief. number two, june 15 article from the journal of science entitled challenges of the us ozone standard. number three comments of one of the texas commission on environmental quality on the epa proposed ozone rule texas commissioners comments without objection that will be entered into the record as well and that concludes today's hearing. once again ms. mccabe, thank mccabe thank you for being with us, and we look forward to continuing engagement with you as we move forward. we will keep the record open for ten days for additional questions are my comments or materials. with that the hearing is now adjourned. [inaudible conversations]
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[inaudible conversations] [inaudible conversations] >> a suspect in a suspect in the child's and shooting -- charged with nine counts of shooting today, honoring the victims in an interview with npr michelle martin. the climb is not only reflective of the racial climate in south carolina but the united states and does not have a political solution. a few years ago american history tv toward the church
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and hard about denmark vesey, a freed slave who helped found the original church and later held a slave rebellion. here's a look. >> denmark vesey was a quintessential charleston man because he represented the majority of the population here, which was oh black population and an enslaved population. and he,. and he through his actions in an effort to organize a conspiracy spoke to the aspirations of african people in this city in the state and, indeed throughout the south in the early 19th century. he was a member of what was then known as the african church in charleston. the african church in charleston was an independent african-american denomination in the city affiliated with the ame church, or the african methodist episcopal church that have been founded in philadelphia in 1816.
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this is a significant development and a significant.in history because the white charleston audience who created this church and affiliated with the church in philadelphia were essentially affiliating with an abolitionist church and were attempting to run their own affairs in the midst of a slaveholding society. as you might imagine that african church, its leaders and vesey was one of its leaders. the numbers came in, the members were arrested and the church was temporarily closed down more than one occasion. we think that it was probably the persecution of this church as well as the personal dissatisfaction of denmark vesey with his inability to enjoy all of the full fruits of freedom
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in a slaveholding society as a free black and then his inability to obtain freedom for his children. he was not able to purchase there freedom. and it may have been the convergence of all of those factors that then led him to begin to organize a conspiracy of slaves in 1822 and that and that me tell you about the plan. the plan was to organize slaves in the city of charleston and begin to arm themselves set fire strategically to a number of locations around the city and then take call and slaves from the surrounding area to occupy the city. as it turns out come out word was leaked out and there were informants slaves themselves were informed of the conspiracy. denmark and others were arrested.
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they would be they would be tried, and of course a trial of these kinds of accusations virtually always led to a conviction and execution. and so indeed in the summer of 1822 denmark vesey along with 34 others 34 others were executed by hanging on the outskirts of the city and 37 37 other people convicted of participating in the conspiracy and one way or another. today we are standing right in front of the emanuel church downtown charleston on calhoun street. this church is symbolically and substantially important because of the connection to denmark vesey. the original builder for this church in 1865 was the son of denmark vesey and the members of the original african church that remains in charleston really
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comprise the nucleus for this congregation and for this place of worship when the african church was in effect reorganized and reestablished in the city of charleston in 1865. >> later today. >> later today president obama addresses the us conference of mayors annual meeting in san francisco. this year's conference focuses on the economic health of us cities. the pres. is on a four-day trip to the west coast and participate in democratic fundraisers in california. see comments live at 5:15 pm eastern over on teetwelve. and the senate has been out of session today, members return on monday to consider two nominations including by several peter messenger to become the next tsa administrator.
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senators return to work on trade policy after the house yesterday approved fast-track trade promotion authority. a bill did not include language to provide assistance to workers who lost their jobs due to a foreign imports. because of that assistance to laid-off workers as part of the senate version of the bill, this new version must be approved by the senate before the president can sign up. follow it. follow the senate live here on c-span2 when members return monday. >> here are some of our featured programs is weekend on the c-span networks. 70 networks. seventy night at 8:00 o'clock eastern supreme court justice ruth bader ginsburg on national issues like gay rights race relations in america command the production of a new movie about her life and career. sunday night at 635 a profile interview with presidential candidate texas senator ted cruz. on book tv on c-span2 saturday morning at 10:00 o'clock eastern, live for the annual roosevelt reading festival at the fdr presidential library and museum. others include others include christopher o
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sullivan on roosevelt's envoy and world war ii, harry hopkins sheila collins and her book when government helps and molly manning on how books of the morale of our military and world war ii. sunday night at 9:00 o'clock mona l to holly on the need of the sexual revolution in the middle east and this weekend on american history tv on teewun, live from the gettysburg college civil war as to institute annual summer conference on the civil wars and an aftermath. saturday morning beginning at 830 eastern with university of california los angeles history professor john wall on general grant and appomattox. at 11:00 o'clock abraham lincoln in the process. sunday morning we continue live coverage beginning at 830 this city college of new york history professor gregory downes on the consequences of the civil war. later at 11:00 o'clock a discussion about treason and loyalty during the civil war with penn state university history professor william
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without objection the chair is authorized to declare a recess for any time. this is for the purposes of receiving the annual testimony of the persons of the financial stability oversight council. i now recognize myself for five minutes. when democrats 1st past the dodd frank act they claim the financial stability oversight council was one of its crown jewels. fs oc whose agency heads now failed and would be clearly able to identify risk to financial stability and take action before these emerging threats metastasizing to another crisis. a fatal crisis. a fatal flaw was always the failure, perhaps the deliberate refusal of dodd frank supporters to recognize that among the greatest threats to financial stability are washington policies themselves, including policies of the very agency has a silly council. kaythree simply refuses to look in the mirror. as reported mirror. as reported is piteously omitted any reference to specific government policy your agency helping to cause
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the systemic risk it identifies. greater risk-taking across the financial system is encouraged by the historically low yield environment yet the council refuses to identify the obvious source of this apparent risk one of its own members the federal reserve said unprecedented loose monetary policy. reduce liquidity in the bond market but never acknowledges that dodd frank spoke a rule and other regulations have drastically reduced liquidity. the council lists risk-taking of large complex and interconnected financial is to tuitions as a threat yet fails to mention dodd frank amplifies the threat by empowering the council to designate certain firms as too big to fail thus enshrining the concept in the law. these these designations will make only worst the profound threat ignored by the council but recently
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identified by the federal reserve bank of richmond and their bailout barometer being that her -- hard-working taxpayers implicitly or experts and we explicitly are now on the hook for a staggering 60 percent of the liabilities of the entire us financial system. the council turns a blind eye to other serious threats fannie mae and freddie mac at the epicenter of the last crisis barely receiving mention command it gets worse. our -- unsustainable national debt, 18 trillion counting, perhaps one of the greatest existential threats we face. more debt incurred under this administration than our nation's 1st 200 years totally ignored. this ignored. this is beyond negligence beyond egregious, dangerous, and, frankly, offensive. along with obama care dodd
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frank is epicenter of the administration's economic policies. as we approached our frank 5th anniversary this is the slowest weakest recovery in the postwar era and economic recovery that is created 12.1 million fewer jobs and has provided $6,175 less income for every citizen compared to the average postwar recovery. again, compared to the average we see an economic recovery that has left 1.6 million of our fellow citizens mired in poverty and working middle income families losing over $11,000 in $11,000 in annual income the rightfully should have been theirs. i find that fsoc found a link between a weak economic growth increase instability in the euros on but can find no link between economic growth command stability on the side of the atlantic. also, nowhere to be found in the council's report is the
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threat posed to our stability, growth, and personal freedoms posed by the erosion of the law under this administration. we know we know that our president seemingly never tires of admonishing us that he is a -- has a pen and found ready to enact whichever policy he sees fit. regrettably, he never seems to have handy a copy of the constitution. as americans become less governed by the rule of law and more governed by the whims of washington fear, doubt, uncertainty, and pessimism are sound. it is not lost on the american people that increasingly washington decides what credit cards and go and their wallets, what kind of home mortgages they can receive, and whether, if they like their bank account if they can keep it. never before in my lifetime is more unchecked and unbridled discretionary power been given to the unaccountable and unelected including the financial stability oversight council which
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operates largely out of public view, yet his decisions of the potential to profoundly alter the lives and livelihoods of every american. kaythree typifies that only the shadow regulatory system, but the unfair washington system that americans have come to loath. powerful government administrators, secretive government meetings, arbitrary rules, arbitrary rules, and unchecked power to punish or reward. mr. secretary, your council and the rest of washington needs to awaken to the obvious truth command that is, when it is when it comes to systemic risk washington is a large part of the problem. i now recognize the ranking member for five minutes. >> thank you mr. chairman, and welcome back secretary lou. we receive the annual report as required by law. as we all know, this year marks the 5th anniversary of the enactment of the dodd frank wall street reform and consumer protection act. it it is hard to believe it was just five years ago that
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we were coming to grips with the magnitude of the financial crisis, which caused the greatest loss of wealth in a generation. all told, the financial crisis consternation more than 13 trillion in economic growth and 16 trillion in household wealth, not to mention the devastation of the unemployment rate topping 10% in many states. in the. in the lead up to the crisis nobody in the private sector or in government was looking at stability of our financial system as a whole. no one was looking at the big picture, no one has a responsibility to deal with the emerging threats before they cause damage to our economy. that is why that is why we created the financial stability oversight council. created the financial stability oversight council as part of dodd frank. looking in every aspect of our financial system command
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it serves as an advanced warning system to identify and address systemic risk posed by large complex companies, products, and activities before they threaten the economy. the council has insured for the 1st time that our financial regulators are working collaboratively to identify and respond to emerging threats to financial stability's. with the announcement outlining enhanced engagement opportunities for public input they have double their efforts to engage with the industry and congress in a transparent. in this 2015 annual report the f sock knitters substantial progress to protect americans from another crisis and indeed if taken important steps to prevent if discovering
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oversight gaps in our financial system by designating complex interconnected and reforming key markets like asset-backed securities and money market mutual funds. however, five years after dodd frank became law's mouth was in college earning fighting the battles of the past. the financial system would magically unlock growth in the market would suddenly police itself. they continue to ignore the lessons of the last verses by doing all that they can to undermine fsc. focusing merely on the college of the other side of the aisle. aisle.
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congress' ability to focus on the knew, emerging threats to financial stability identified in the 2015 annual report. like the consumer financial protection bureau fs oc has become a a leading component of republican deregulatory agenda's. finally waste countless hours working to undermine engines of job growth in america competitiveness with the export import bank they make it possible to shut down and just five legislative days. whether to renew a proven job creator republicans are wasting their time and countless document requests and inquiries from an obvious effort to undercut ability to protect homeowners consumers, and the american economy. so welcome and thank you for your resilience in the face
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of efforts to stop the council's important work. i would forward to your insights. i hope to learn more about what fs oc is currently going to monitor's for risk and promote financial stability. additional details i we will be interested to hear whether republicans believe fs oc should take any action to address systemic risk or simply wait for another crisis. crisis. thank you and i yield back the balance of my time. >> the gentle lady yields. today today we welcome the testimony of the honorable jacqueline. testify before community on previous occasions. welcome. we're happy to have you back without objection your written statement will be made a part of the record.
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you are now recognized for five minutes to give an oral presentation. >> thank you for having me today and for this opportunity to testify. i would like to begin by recognizing we are a few short weeks away from the five-week anniversary of the enactment of wall street reform the creation of the council. as we approach this milestone it is clear that have made this more safer and resign. wall street reform has been protections in place. small small businesses that need access to credit and working men and women trying to save for children's education, down payment on a home with her retirement. wall street reform is worked five years ago the council was created to be a a forum for the entire financial regulatory community to come together to identify and
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respond to potential threats today the council is doing exactly what congress decided to do for asking the tough questions that will make a financial system safe are the shining a light on emerging threats before they can involving the next financial crisis. moreover the council's moreover the councils member agencies were collaboratively leverage the expertise. the council has also established track record of conducting work and open-minded and deliberate manner. the council asks hard questions. before discussing this year's report i want to emphasize what you general report is important. provides transparency about the council's work. each report covers a range of issues based on extensive data-driven analysis.
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current risks and emerging threats along with recommendations for specific actions to mitigate risks. the findings the findings and recommendations set down a marker for action and a roadmap to your head providing congress and the public a way to hold the council accountable for making progress. the report highlights the councils recent work and demonstrators continued commitment to openness and good governance. for example this year's report highlights highlights a series of initiatives including enhancements to the councils transparency policy supplemental guidance and ongoing engagement with the public focusing on 11 key areas many of which have
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been reported. these include the potential incentives for greater risk-taking, the need for continued progress in the continued reliance on short-term wholesale funding. for each of these areas the report highlights were progress has been made's and where more needs to be done. the financial sector has been a leader of other industries adapting cyber security measures and still we have seen several incidents affect the largest prize substitutions and community banks or form the bedrock of the financial system. strengthen best practices. i commend the committee for focusing and we look forward
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to working with congress. this year's report identified several new potential risks which the council and member agencies will monitor. the council will pay heightened attention to ongoing regulatory efforts will bolster the resiliency of central counterparties season three. the market structure across asset classes and market function efficiently. the council recommends continued vigilance and the extent of the impact of market function. promoting financial stability and protecting the american public for the next financial crisis should be a
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common objective that we all support. yet opponents continue to advocate rolling back these protections including the ability of the council and member agencies to respond to future threats to financial stability. as the council for report demonstrates threats to financial stability the marketplace.
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we simply cannot let our guard down. i want to thank the other members of the council and all our staff involved. as we approach the anniversary we will continue to work with this committee to continue addressing these threats and promoting the strength and stability of the us financial system. thank you, and i would forward to answering any questions. >> the chair now yields himself five minutes for questions. i alluded to it in my opening statement, but by chance are you familiar with the bailout from a report of the richmond fed? >> i have seen it. i'm not sure which one you are holding. >> am sorry? >> have seen it, but i'm not familiar. >> you have reviewed the document? >> unfamiliar with it. >> your familiar with the fact that it indicates there have been increasingly implicit guarantees of the crisis. >> i understand that that is the amount that is on a peace of paper. it's. >> do you have any reason to challenge that? >> look, if you look at the experience we have had we have seen -- >> i'm just asking -- >> i have not looked at that peace of paper i can give you my response. >> let me quote from the report. $26 billion according to the richmond fed in explicit and implicit federal backstop the. one of the final conclusions of the report is that it is
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essential to restore market discipline and achieving financial stability to shrink this federal safety net. >> i net. >> i don't want to comment on a report i have not read. do you believe it is important to achieving financial stability to shrink the size of the government federal safety net? do you believe that the extent of the federal safety net's should be shot?
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not read the entire report. identify emerging threats to financial stability. can you.to any page airport they identify a policy will? we can't find it. >> we identified the threat. many have a connection to federal policy. >> you also have the mandate to make recommendations. how you make a recommendation if you can't cite a source? >> it is not my view that the regulation is a significant risk.
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>> increasing evidence that we are suffering greatly liquidity in a corporate bond market. this report cites it. we know that the midmarket companies poured cash. the our jobs and economic growth. many many economists believe this will be the source of the next financial crisis. somehow the thin red can connect this on illiquidity to the vocal. sec commissioner randel your cftc commissioner the treasury larry summers' enthusiasm for keeping it institution safe.
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the last testimony you found no evidence that the bonds to -- revocable contribute abundant liquidity. >> very complicated. he spend a lot of time thinking about it. >> is it not? >> i do not believe there is a relationship. [inaudible conversations] >> may i i address this issue? i think it's important. >> to be that be happy to have a secretary answer the question.
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was no breakdown there is no liquidity crisis. there was a moment in time when those a lot of off risks sentiment because of events going on in the world. a huge amount of electronic trading going on to my there was a blip in the market that obviously is very much worthy of our attention. what people took from that incorrectly was the notion that somehow that was an event that was caused by will.
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it wasn't. >> thank you. one of the largest and most frequent criticisms about my republican colleagues have lodged against the financial stability oversight council is what they deem to be a lack of transparency with respect to systemically important financial institution. while i think many of the criticisms are merely attempts to hamstring the council under the guise of oversight i appreciate both you and your staff have redouble your efforts to engage with congress and non-bank institutions. would you describe what changes fs oc made? and please describe how we balance the need for transparency against the need to protect sensitive market and supervisory information.
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>> we made a number of changes. they give a great deal of notice and transparency to the process of partisan review. i want to underscore that there was a lot of back and forth. this is not as radical change is it may sound but it is more formal and something that has led to a good deal of recognition that the system is more transparent. the review process by necessity involves reviewing highly confidential business documents that are commercially sensitive. under law they have to protect the documents and information. we try our best in the context of that constraint which is a reasonable
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constraint shared by supervisors of the institutions to be transparent with the public in the community at the same time. the changes we have made have helped, but we remain open to suggestion on how to always improve the process. >> last month the chairman of the full committee and five chairman of the subcommittee sent a lengthy and onerous request for documents regarding the designation process which contained at least 13 different subparts. it is my understanding more than a week ago you responded to that document request with an offer for review of 1,400 pages of confidential business and bank supervisory information since you responded my staff has begun to review those materials. to your knowledge as the majority avail themselves of
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that opportunity? would you consider the production of such sensitive and voluminous documents to be consistent with the council's desire to be transparent? >> we did make an offer. we appreciate that your staff has begun reviewing it. it. i am not aware that the majority has reviewed it. that is the right way to make clear the commitment to transparency while protecting sensitive confidential information. >> would you please allow the sec. to answer questions and given the courtesy of not badgering him? this is complicated subject matter command he deserves the right to be able to respond. i yield back the balance of my time. >> the time of the gentle
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lady has expired. >> i think the chair. i would be delighted answer your questions. >> back in march. lo lo and behold took your appearance here today before we get the answers. we get the answers. march, april, may command halfway through june. invading the answers and it's a pattern of yours and not getting a clear answer. such disdain for the american public that we have to bring you before this committee before you answer the question. you asked a question. is it a factor connect the secretary cannot answer. do you do you were able to
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come up with a litany of other factors. those those were all factors. but then he said that regulation is not a factor. is that the final answer? >> what i said is complicated. >> complicated. i understand. you list of the other four factors. we want a simple question. there was no evidence of regulation being a factor. >> that's my understanding. >> is it your understanding going further and folklore is than the falcon is not a factor? >> i think the rule is very important protection. >> is a factor? >> is this one? >> i listed the factors that are now. >> do you know whether this is a factor?
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>> i am unable to say. >> the other factors. that's the end of those questions. >> am in trying to demonstrated open-mindedness. not giving me a chance. [inaudible conversations] >> with regard to the fs oc i appreciate they have announced they have a process with regard to listing of the potential risks associated. is there such a process as far as i'm due process system in place that we are trying to get to? >> congressman, it's a different process. >> i understand that. >> there is no consequence to the designation. >> i understand that. >> it does not have the powers. >> i understand. >> is there a process?
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>> there is an open process where stakeholders share views and governmental entities share their views but it is a different kind of process. process. i don't think the same kind of due process issues apply when you not designating a fine. >> it is not a due process. it is a different different process. >> you are comparing apples and oranges. there's an appropriate set of due process concerns. >> asserting its authority. sure you're familiar with that. previously looking at that issue. until they finalize we will you go to fsb and suggest they make no final determination? >> the basic issue. >> and that asking the basic issue. >> i don't think they are at
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all identified's. >> i understand. [inaudible conversations] >> as a member of fsb were you told us repeatedly it is done on a consensus basis will you go back and try to get a consensus, you would ask them to stand down for now. >> will we are doing is trying to make sure there is a complete review. >> got you. i understand all of that. there are diplomatic command all the rest. will you use your capacity? >> i don't know the precise schedule. >> did not think that you did. >> i don't think that the fsb can time all of its actions.
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>> i doubt that they can. can you assert your authority to try? >> this consensus process, understand what it's about. [inaudible conversations] [inaudible conversations] >> i would have to look at where we were and where they were and make a judgment. >> the time of the gentleman has expired. >> thank you. mr. secretary we have held a number of cyber security hearings to examine cyber attacks on consumers and businesses. many many witnesses stated a clear uniform set of rules to address this problem. can you elaborate on the proposal for a national plan to respond to cyber threats that you mentioned in your testimony? >> thank you. this is a hugely important issue.
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there are exposures to cyber risks everywhere. everywhere. the financial sector has been a leader in taking it seriously. lifestyles are putting enormous resources and to trying to put systems in place that are effective. one of the things we have done is a government that is important, our national institute of standards has put out best practices and we have encouraged the private sector to use best practices. i i am encouraged of the financial regulators to have the same you. i think that we are at kind of a moment where it is not just a question of what is a firm do but you have to ask the policies that the firm has with regard to live we will do business with. a lot of the exposures come not directly of the farm bill on a third-party connect to the firm. they don't just have to worry about what they are doing but if they have good
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standards and our goal to be to bring all those parties a high standard. i think it's premature to talk about having a single national standards it is mandatory. we put it out as a voluntary standard. many are in ago use the standard and is something we have to look at. >> cost is an issue. do you have any type of enter agency working relationship on this matter? >> we do work across agencies in many areas in particular there are connections between the utility sector and the financial sector. if your power goes out your going to face risk. i am not familiar with the fda program. in the financial area one of
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the things we focus on is the need for smaller and financial institutions to be of the work together or through organizations so that they can pursue best practices together because the burden for any individual firms would be too high. as one of the reasons it is important to have legislation to make the collaboration between firms easier and less risky. we have been very much supporting the enactment of cyber legislation. even legislation. even pending the enactment we put out executive orders to try to pave the way. >> thank you. lending standards have decreased financial institutions try to find the current low interest rate environment. environment. loosely of credit market since the recession is beneficial for small businesses if interest rates would arise what impact we
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will this have on the market and specifically on access to capitol? >> congresswoman, i think that there is at some time the trade-off between access to credit and risk-taking. we have raised concerns over the last couple of years that in some cases there may be an over adjustment where you look at the fica scores for home mortgages. the average is gone i. there are a there are a lot of not very risky potential borrowers were having access some of that requires a clarification of politics put in place. why am i answer your question like this? for a lot of small businesses the pathway to credit in part is to personal home-equity. the two the two are related. we have done a lot to reach out to make a a credit
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available. we work with community banks and local wonders to encourage lending. i lending. i think it is an important question. i do think as we come out through the financial crisis and the time of calm are macroeconomic circumstances that is an important time for more lending activity to be appropriate. the question is not the financial institutions have no risk, do they take reasonable risks? >> thank you. >> the time is expired and the chair recognizes the gentleman from missouri for fun. >> thank you. good morning. i was kind of taken aback by
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your report. this morning and the washington times it was report that cbo put out yesterday. i don't know if you've seen the article. >> i did not see the article. >> thank you. they make comments headlines, they warn of financial that spiral from that. the 1st line says rising federal that threatens to choke off economic growth beginning of death spiral that will sack revenue forcing government to borrow more. one of the things that your testimony here does, the 1st line 2nd paragraphs as the council was created to identify response to vulnerabilities and provide a mechanism for agencies to talk to each other and take collective responsibility for addressing potential threats. yet in your port i don't see any of that. am i missing something? >> if you look at the risks to the economy in general spending and that we are in a much better position than
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we were six and a half years ago. we have reduced the deficit and in dollars historical quick break, and that very report makes clear over the next ten years where is the place. the thing in that report people are concerned about is the long-term and obviously -- >> that is not what it says here. it has worsened dramatically. >> i sever the next ten years. that report goes up for longer. >> just a little blip. lower part of the curving go back up again. >> look at where we were we were careening toward a treacherous place. destabilize did command it is improving. >> mr. secretary, if you quote the president cannot
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we are not in a ditch yet. we're still trying to struggle, bumping along with an annual growth rate of 2%, 1%, something like that. the cbo, and the.i'm trying the cbo, and the.i'm trying to make, cbo points out that that is a problem for our economy and yet your report does nothing, says nothing about it command you are supposed to be an agency that.of these problems. my question is why did you not find out that that is a problem for our economy? >> our report appropriately looks at adjusted financial stability. >> you don't consider it a threat. >> if you look at where we are today versus six years ago the federal deficit has been brought under control for the next decade. we are at a time where we need to get the economy growing. i agree. growing. i agree. our conversation should be what we can do to grow the economy. we can have an infrastructure program there's a lot we can do.
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i don't think right now that debt 2030 years from now is what is the our economy back >> i think he missed the boat, quite frankly. cbo points it out. out. we have dropped the ball. next question one of the concerns i i have as the chairman of the housing insurance committee we have a situation where we have designated insurance companies. one of the things that -- that's fine if you feel those that much risk. we have asked before to to give us the criteria on which you base your analysis command we have never gotten it. we have the undersecretary do a good job of giving us sweets. i think part of your job is to figure out how to do risk things. okay. you pointed out as a problem. that is what is in your
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report. it talks about progressing potential threats to find ways to get back to financial stability. do we have criteria in place to do risk? >> you know, the analysis is laid out clearly in the record that is quite public. this is the question of how they exit. we exit. we have made clear that we will review regularly and you the status. we status. we have done that. changing the business model less risk. >> my time is up. >> the time of the gentleman has expired.
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>> thank you. i want to go somewhere else. from what you were talking about how we are better off, i wish my colleagues have talked about the person command that cause us to have different problems. and someone else comes along while going to help you get out of his ditch that i didn't drive you in. you start pushing you start pushing them. you might not be going hundred miles an hour. maybe 50 but you are no longer in the ditch. yet you want to blame the person that is getting you out of the ditch instead of the one that put you in the ditch in the 1st place.
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dealing with asset management i know i don't assume the risk. we should be concerned about this process >> as the management grew as the sector and there is a lot of individual and institutional aspects there we have been looking carefully at this question for some time. the risks are not necessary firm specific. that is one of the reasons we are looking across the industry at activities to ask if there are activities that are particularly risky. we have not reached the conclusion and i am not wanting
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to give a view until we reach the conclusion. we entered the process, as have regulators around the world, trying to understand the growing and new industry. i cannot prejudge what the answer is. what i can tell you is it it is important we complete the process and it be driven by fact and analysis and if there is action that needs to be taken the appropriate body should do so. i think the notion of cutting off the questions because you may not like the answer or think you know the answer is not caught uzs in trouble in 2007 and 2008. we have the ask the questions and reach a logical conclusion. i look forward to that process being completed. >> i know on municipal and state levels with multi billion
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pension plans are using more emerging and diverse asset managers. i am finding the small managers face boundaries in gaining more market shares. has the treasury looked at getting more diversification of managers in the industry? >> as treasury secretary i have looked at it. i think one of the problems is that there is a tendency to bulk things up because it is easier to deal with a few rather than a lot of managers. and we need to push back on that. we need to make it clear that
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the door has to be open to new participants in this space. and we have tried through a number of things we have done to have that be the approach both in terms of how we managed things within treasury and through other governmental efforts. we are making progress but there is more that needs to be made. >> as these asset managers get bigger and bigger they play more and more of an important role in their sourcing capital and the business that creates jobs in various communities. don't you think you should be looking up for more asset and reinvesting? >> i think it is important for the process to be open. i don't know i would think you should have mandatory targets.
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but i would be happy to follow-up with you. >> the chair recognizes the gentlemen from michigan, from the monetary and trade subcommittee. >> over here. everybody moved around. i have five minutes unfortunately so i will try to quickly move through a number of things. i, too received the e-mail at 11:18 answering a few things from three months ago. you were very clear on the question resolving financial trade negotiation asking you to expose why they are opposing the material and this was the most clear answer i am aware of. you say this isn't an appropriate vehicle for addressing financial regulatory
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cooperation claiming it is happening on stability board, international standard setting bodies and a number of others. i disagree with the answer. but this leads me to another question which is having to do with local storage. it is my understanding my administration highlighted the free flow of information across the digital world as a center piece for negotiations and ttp and t-tip which is a provision i fully support. i am confused on what the dis distinction might be. it makes sense to negotiate with partmers.
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>> we have been very firm on the issue of putting non-tariff barriers with a local surge requirement for electronic data. i have tried to be clear before with this committee. we don't view this under the trade process or negotiation. it is not regulation to say there should not be. >> you are willing to have the financial sector treated different than any other sector of the united states economy? >> in general, trade agreements don't bring credential matters. >> we have the europeans. >> we said no to them.
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i want to move on to the imf and greece. would you agree the decision to bend or ignore the rules regarding greece on the exceptional asses framework was at stake? >> i think the actions taken in 2010-2012 to avoid an economic crisis in greece were the right thing for the imf and the united states. >> so it wasn't a mistake? >> at the time -- >> looking back do you think it was a mistake? >> no. >> i will take no as the answer it is fine. there is a discussion of putting those rules back in place at the imf. that is something the imf board is interested in.
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i am curious why the administration is opposed to that? >> tlng therei think there are occasions where it is important. >> the rules want to be put back in place because they believe it was a mistake what happened with greece? >> i think that is not exactly where the conversation with the imf is. >> i had a number of conversations with folks from the imf and involved with the imf and i am not sure that is accurate. >> there is a range of issues and i think it is important to distinguish them. there is the exceptal act itself and proceeding into the new world debt profiling. >> we had new plans to borrow and the administration has been using that to not go into the imf quota reform. but it seems if we are not going
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to address this exceptional access framework. >> if i can take half a minute to respond -- >> i am happy to take a private meeting. >> quota reform is critical to the place in the world and we are working hard to get it enacted. i think exception all access has serious questions. i am open to a serious conversation about this. i think looking forward and finding a way for the imf to avoid having to use tools like that is in all of our interest and i am happy to have a conversation. >> chair recognizes the gentlemen from massachusetts. >> hello, secretary, how are you doing? are you familiar with major league baseball? >> i have heard it of it. >> familiar with the team called the boston red sox?
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>> i have. >> can you tell why what is wrong where the red sox? i need to know. it is the pitching the fielding or the hitting. if you won't answer that can you answer by the republican baseball team can't seem to beat the democrats? come on answer the question. you have plenty of time. okay. you refuse to answer i guess we will move on to other areas because i just wanted to show that i get badgering is not the exclusive realm of some of my colleagues. it doesn't produce much. >> mr. secretary, in your next report can you put a chapter on debt? you is a great story to eltell.
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you had a good story to tell and it would satisfy everyone including me. >> i understand. and we could discuss it. the report focuses on the things that are risks. >> if you do it the next time take that away and you make good points. i want to talk about fannie and freddie. have they paid back every penny they borrowed from the american taxpayer? >> they have i believe, the answer is yes. >> i know it is. i am asking a question i know the answer to. and by the way, haven't they also paid back billions upon
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billions of dollars above what they borrowed? >> i think i understand where you have going. >> hope so. >> i think what they have not done is removed from the federal taxpayers the risk that goes with those institutions having the backing of federal back stop. >> that i understand. but where does the money they are paying above and beyond go? >> >> to the treasury. so does the support and risk. >> i supported all of that. i totally agree with everything that was done up until they paid back their loans. they paid it back they are stable, heading in the right direction, and it is time to get back to more business as usual. i want homeowners keeping their old rates. yes, there is risk.
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but they are contributing to the general general treasury account and that doesn't strike me as fair. i tell people we are charging you extra for the service or in increasing your taxes. you are charging them for something that is not necessary at this point. >> that is not the way i look at it. the gse's are still in conservativeship meaning the federal taxpayer is standing behind them if they fail in the future >> they did that from day one. >> from day one there was denial there was a back stop. it is now clear -- >> who denied that? >> it was in law. >> i would strongly disagree and i think the facts point out i am right. >> i think we have seen over the last several years the estimates of the potential risk of the problem is still large.
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i think you have a fair argument argument. they deserve their money back. homeowners are not being told their money is being used to support something other than fannie and freddie. i want to bring up something i brought up. it strikes me the file is pursuing a backdoor way to take over regulation of insurance companies via international agreement. some of our international friends may be pushing too far with that. >> the chair now recognizes the
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general from wisconsin mr. duffy. >> thank you i welcome mr. lew. you are the treasury secretary and not the coach of the red sox so i will not ask you about that. if you were the coach, we would expect answers we have about baseball and when we ask questions we hope we would not get answers about the history of baseball and the history of fin way. you would answer the question of what is wrong with the red sox. you had a lot of questions about the liquidity in the market. and i think the chairman brought out is this related to vulker or other rules and regulations that have caused banked and traditional market makers to leave the space. and i want to give you a chance to ask you if you think the
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rules and regulations that have x from the crisis have any in the liquidity of the market. >> i think to answer the question fully would take a long time. it is complicated. i tried to indicate we are open to looking at any of the possible root causes. >> this isn't a got you game at all. you identify risks in the market. that is your job. you talk about other things that are complicated but you tell us where you see those risks. and so it is a very simple question because a lot of commonitators say it is com cli--
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complicated. one of the causes could be the regulatory regime and its impact. >> i am offering much more detailed answers to the comment commentators. i deliberately trust you. if i ask to be put in the stock market and are you going to answer the question because the do gooders who were looking for risk are actually the ones that are creating the risk in the market. if you tell us yes, this could be a cause of the lack of liquidity in the market. you have to look at yourself and the regulatory regime taking place. that is a fair question and
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saying it is too complicated to answer i don't understand that. what is it? yes or no? >> if you look at the many factors at work having an impact on liquidity it is not my view financial regulation is the principle thing requiring our attention attention. i have not said we should not look at it. >> i don't know if you were a tap dancer when you were young. i didn't ask if it was the principle. this goes back to what the chairman said. you are playing with words. is it a contributing factor the rules and regulations? are you looking at that as a contributing factor? >> if you look at liquidity you have to look at different parts of the market. treasury is different than high risk bonds. >> are you looking at f-stock?
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yes or no? whether the rules and regulations have an impact? >> we are looking at all factors that contribute. >> so this is one of them? >> as secretary of the treasury and menany of members -- >> this isn't complicated. we ask you simple question and we are entitled to get straight answers. if you think the rules and regulations that come have no impact the commentators are wrong. banks and market makers left the space and there is no direct link with the lack of liquidity tell us that. >> i think the financial reform made the system safer and sound and we have a stronger economy because of that. liquidity is stronger. >> did it create a risk too? >> when we look at the issues related to liquidity we should
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look at all factors >> do you support tpa like the president? >> i do very strongly. >> dually noted. i yield back. >> the chair now recognizes the gentlelady from new york ms. maloney. >> thank you very much. i am pleased to welcome one of the favorite sons of the great city of new york. i regret i had to chair another meeting and just got here. i want to follow up with something raised by ranking member waters earlier and my good friends on the other side of the aisle have criticized f-stock for not being responsive to their document request i would like to point out that f-stock did make 1,400 pages of private documents available to this committee and my staff and i believe the staff of many others on this side of the aisle have been to treasury and reviewed these documents.
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these were private documents playing out the detailed reasoning behind the f-stocks decision to assign individual companies are systemically important which is exactly what the majority asked for. i think supplying 1,400 documents for review is being responsive. i want to make that very clear. i would like to ask you mr. treasury you said the issue of bond market liquidity is a legitimate one and we should be careful about addressing the lack of liquidity and i agree with you. i think it is important to focus on potential problems in the treasury market because it is a $12 trillion market that determined the borrowing cost in the key markets.
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you mention the huge swing in the market on october 15th of last year and said there was no evidence of a break down in the market that day. and i agree. i agree with you. on october 15t, trading was continuous and trading volume was heavy, was it really a lack of liquidity driving the wild price swings or was it something else? so can you give us more context for what the f-stock has found so far as it looked into this issue? >> thank you congresswoman. we have worked treasury with other agencies that look at the market carefully and tried to follow the transactions they would understand what happened. and there was a huge amount of volume and there was this 15-minute period when there was a price spike. but it wasn't -- there wasn't a breakdown in the market. it is something we have to ask what happened then and what do we learn from it going forward.
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you know there was a huge amount of electronic trading going on. market structure has evolved. and you know one of the things with technology is you never go back so you have to deal with the reality and there is many positive things about electronic trading so i don't say that critical about the development of electronic trading. but the changes, -- but that changes the structure of the market. we are looking at that. i cannot say i have a clear answer. we are hoping over the course of the next few weeks to complete our analysis and offer a more definite view. there is a desire to jump to conclusion that financial reform caused october 15th and we see no link between that and what happened on october 15th. maybe others will find it. it is why we have to be careful when we ask questions about liquidity to treat the issue the way it should be treated.
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i have not ruled out looking at any contributing possibilities from any policy or market condition. we ought to not jump to conclusion which many did in a way that i can understand why they did but it doesn't mean it is right. and you know the treasury market remains the deepest and most liquid in the world. there are other areas in the market where there are questions that are legitimate where they are not electronically traded and so that is different and the issue of corporate bond issues raises questions about would there be a good liquid market if there were a very stressed day. we are looking at all of those questions. we take them seriously. you happen one of the things is you have to separate the different kinds of liquidity because it is a question of ina
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in -- institutions keeping boundaries. >> thank you. i look forward to your report. i hope you will personal brief members of congress. >> i would like forward to. >> i think it is critically important. my time is expired. >> the chair now recognizes the gentlemen from pennsylvania mr. fitzpatrick chair of our terrorism task force. >> thank you chairman and secretary for your time here. we had a couple hearings at the terror head quarters to investigate terrorism financing and i have a series of questions i would like to make part of the record instead of going through them and ask the secretary to give me time afterwards. i will submit them. i want to follow up on the questions and answers you gave mr. capuano with respect to the national debt. the national debt is not in the
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f-stock report or identified that the national debt is a good story to tell and number two it isn't a threat to our economy and i think you answered both affirming. do you agree? >> i believe in having a fiscal policy that last for the long long term. if you look at what we inherited the stability we have is a world of improvement and there is work to do. >> the question is the debt itself and president obama referred to it as a $10 trillion national debt is thought moral. today the clock above us at the hearing is $18 trillion 159 billion -- it is going up a million dollars a minute. is that a good story? >> it is. the deficit came down as the
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percentage of gdp factors. >> new administration and speaker that took off in january of 2011 and because of the fiscal restraint of federal spending and growth of the economy the annual operating deficit is coming down but the national debt is continuing to rise. >> i don't think it would be for the good economy to have a balanced budget today. we have an economy which many of you said is not growing fast enough. we need to continue to look at keeping the economy growing and keeping an eye on the long term. having a stable posture for teen years is huge progress. >> the chief of staff is describing the debt the greatest risk to national security. >> at the time our deficit was in double digits. it is coming below 3% of gdp. >> i am asking about the national debt. >> the debt as a percentage of gdp stabilealize stables.
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>> the president said he opened new efforts to combat currency manipulation abroad. can you describe the role of treasury: >> the president and i take this seriously. we are using the tools we have had and had success. we helped push china and japan into a different policy. we are using the tools and using the tools well. in the trade legislation that is moving through congress there are additional tools. one is a negotiating instruction that says in ttp currency issues are a high priority and we are working with partners to a
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arrive at agreements to give us more ability to use the process of consulting and the public disclosure to get them to do the right thing. >> can you identify the ideas the administration was referring to? >> there is an amendment we support that senator hatch put in in the senate that puts new tools in place that requires an evaluation based on objective criteria on whether or not countries are violating this process and if they are we are put in a position where there are several new tools including not being in trade negotiations. >> the president calls the budget a compilation of priorities. congress has met, probably
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exceeded the president's request request and i want to say the organization within the treasury are doing an outstanding job but we see terror growing, the challenges globally every single day, new organizations coming to light every single month. what can you tell us -- >> i could not be prouder of our offices that work on threat financial. >> do they have sufficient resources? >> they do and punch way above their weight. if we thought we needed more resources we would ask them. >> the chair recognizes the gentlemen from massachusetts. mr. lynch. >> mr. secretary, thank you. i have never in my --
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>> reverence is more like it. i appreciate that. >> you are a good man and we don't also agree but i believe you have the right heart and the administration is lucky to have you. when a bank is convicted of a felony or pleads guilty to a felony, we have laws in place, congress put forth laws that said when they are guilty of these crimes we remove probe privileges they have. and one of those is a well known issuer and so well known seasoned issuer. we had a recent bout of guilty
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pleas by big banks, open connection with lag core and with the fx manipulation of the dollar and euro exchange rates. normally those banks should be penalized by removing that desigi designation that gives them the off the several waivers. but -- shelf -- what happened is, in the latest round of fcc waivers barkley received their third waiver since 2007. citi group has triggered a disqualification five times and every time we give them a waiver, don't penalize them. so there is no change because they get a waiver.
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ubs just received their seventh waiver since 2008. they broke the law, criminal conviction, or pled guilty jp morgan chase received its sixth waiver since 2008 and the royal bank of scotland received the third waiver since 2013. and ubs going back to them, their last waiver occurred while they were still under a non-prosecution agreement from libel. so they immediately failed. so the penalties that congress put in place don't happen because the fcc is giving them waivers. i am wondering, giving these waivers continually and not punishing the banks, is a moral hazard and causing them to behave just as they always have
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been. it seems that way for me. >> congressman, let me start saying, i think we made it clear, no individual and no firm is above the law. and we will prosecute and we will enforce regardless of who is broken the law. secondally, the violation of laws behind the actions are serious. they get to the heart of the integrity of the system like tax fraud and terrorist financing facilitation. i think if you look at the prosecutions and penalties, the numbers have been very large and there is no question -- >> but the penalty falls on the shareholders not the individuals involved and these banks continue to operate. there was $2.5 billion in fines but they just keep doing what they have been doing. i have people in my district convicted of far smaller crimes and they do serious time.
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so you know at least the way i see it is there another set of penalties we could put in here and agree to enforce? >> to answer your first question and coming back to answer the last one, i think if you look at the approach the prosecutors have taken, they have wanted to make sure they could hold accountable financial institutions and the individuals in them and not have unintended consequence consequences. >> we intended them to be penalized and they are not. >> i would leave to the regulators to right way to respond. but prosecutors need to know they are not going to create an unintended consequence. >> that is not the point here. >> i think on your last question there are a lot of things we could look at in terms of the practices wp within the industry
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conversation. we are open to ideas of how to tier the treatment appropriately. >> that leads me into another discussion and that was about section 115. i think when dodd frank was passed it was done so in a hurry. in section 115 they said what you can establish gives you the latitude to establish a different trigger or trigger mechanisms if you chose to. and i think if i go back to look at your conversation you said you had not formally looked into it. you mentioned you had informally looked into it but there is a process where there could be a formal process where the f-stock could go -- the treasury could go through that process and recommend changes. >> there could be a formal
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process. but if you look there are a number of regulators looking at the issue to see what they can do with it reg lor tory flexibility and there is a question of raising it to the level of a formal review. i will give you an example of the kind of issue we looked at. the frequency of examining this. the frequency should be different for a smaller institution and larger. the fact it isn't a former review doesn't mean people are not answering the questions. if you look within the regulatory bodies they are looking into that and across the landscape. >> i think it is important to get their input but the truth of the matter is under section 115 those other regulators don't have that authority. section 115 authority resides in the secretary of the treasury and last i checked that is you. and so i just think it is kind
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of a little confusing and we have one instance of the ofr using the standards saying this is what you know the world looks like from a systemic risk point and we have dodd frank and from a banking perspective it is confusing as to what standards should be in place. i think it is time for you to take on that leadership role and exercise 115 and bring certainty to the marketplace. >> i would be happy to continue this conversation. they express independent views. not the views of treasury or f-stock. i am expressing my own views and they will not be identical because the bar was put in place to express their own views. >> the chair recognizes the
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gentlemen from georgia, mr. scott. >> thank you. i want to keep the conversation on liquidity. it is is a serious issue and i am very concerned. liquidity is the key to protecting the financial system. it is also the key to being able to ascertain potential risk do is the system. so that provides us with a way to be able to not just look down the road for problems but see them before they turn that corner. so, also i realize and i think you would agree, you, too, are concerned about liquidity, correct? >> i said so yes. >> and the issue becomes will this liquidity worsen as the
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economy worsens? and specifically tell me what if there were another crisis? we don't want another crisis. after they fixed the depression they said they didn't want another one. but we have a free enterprise system that is free to go up sideways, down or whatever. so if we had another crisis would the financial system in your opinion, have the liquidity to be able to incalmcome to the assistance of the financial system the way it did in 2008 when healthier institutions that helped us a lot had the liquidity and were able to buy up institutions like washington mutual lieman brothers rather than the government having to
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wind them down? >> congressman, i think when we talk about liquidity in the markets, we are not talking about institutions that merge or don't buy other institutions. we are talking about is there a market for buying and selling bonds in a quick way with stable prices. obviously, the capital and the depth of the balance institution institutions affect both. as we come out of the financial crisis there is going to be more volatility. when i started testifying there was concern of no volatility and now there is concern about volatility. i think the institutions themselves are stronger than they were going into the crisis.
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last night. what is the plan here? >> well as i indicated earlier, our hope is that the in the next few weeks the analysis of october 15th will be completed and we look forward to sharing it. it has been a complicated analysis requiring a number of agencies working with different bodies of data and i am anxious. >> within the next three weeks we will receive -- >> i cannot say three weeks. over the summer is the scheduleal we -- schedule we have been working on. as soon as it is finished we will share it. >> and you believe that will come this summer? >> that is the schedule we are working on. >> and that should answer all of our questions about the importance of liquidity and lack therefore. >> i would not say anything answers all of the questions but help us understand october 15th much better. in the f-stock report we noted there is a broad range of factors. i must say i have taken a lot of
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questions today which want me to comment on regulations. in the report we added regulations to the list of things we need to look at. we are open to looking at all of the causes. i identify the things i am con confidant -- >> i have several more questions. we look forward to your report this summer. today's f-stock assigned four banks as systemically important financial institutions showing they are too big to fail. shareholders and creditors of those firms cannot expect the government to shield them from losses during periods of distress it was said ultimately put the taxpayer on the hook for a potential future bail out. i am interested and others on the committee mentioned this how the companies can derisk and
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shed their status from f-stock and remove the support that such a designation carries with it. i think you share this sentiment with me. i know senator mark warner told you before there was never intention of creating a hotel california, i believe were his words, with the designation process of checking out any time you like but never leave. secretary lew, in the absence of practical guidance on how to exit it is possible for firms to know what they are supposed to do to reduce systemic risk. >> yes congresswoman, i think the process is clear. we review the designation
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annually if the business of the company changed and it no longer presents risks, they know what the risks are we identify them clearly, and you know right now it has been in the news that ge capital changed the business plans for reasons that have nothing to do with i believe the specific designation but cause there to be a review and we will see if that changes their character. we are open to firms changing their structure -- >> basically, they know how they can reduce it. you have given them guidance on this. they know how to change their business model and structure. >> they know what it is about business that creates the designation -- >> do they know from you specifically? >> there is a long analysis that knows to companies to determine the bases of determining the risk. if the bases changes -- >> you have a list of specific
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information on what firms can do to remove this? >> it is not a question of take steps a, b and c. >> you don't have a list of these -- >> the rick factors are clear. >> to whom? >> to the firms they are assigned to. >> have you provided them the risk? >> it is in the analysis available to the public. >> time has expired. the chair recognizes the gentlemen from california mr. sherman. >> mr. chairman thank you for holding these hearings. i hope we get the other members of f-stock to testimony. chairman is a lofty position but if you interview the chairman of this committee pal i am not sure you would get the views of every member. i am glad secretary lew is here but look forward to hearing from the others.
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you are litigation on i guess, met life and you filled your reasons to dismiss their lawsuit. under seal you are the client. this is a document filled on your behalf. could you just put it on your website because it is a public policy interest? of course redacting any proprietary information about the individual company. why are the reasons for arguing the lot be undersealed? >> it is a matter under litigation so i am not going to comment on the process. we have tried in all of the designations to be as trans transparent as we can be. >> it is a public policy document as much as anything so i hope you make it available for
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the committee. lee man brothers didn't go under because it had too many assets. it went under from too many liabilities and i am confused on how there is discussion of mutual funds being lifted as sify? if the markets drop by thousands of points that is terrible for the economy. it is terrible for me because i have my individual account. it would be just as terrible if that same money was in a mutual mund. why would an unhedged plan be modified with such? >> we made the decision we need to look at activities asset
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managers spend time on. we have not completed the review. >> are you looking at whether the asset management company goes bankrupt? whether the mutual fund would suffer? not because they could not pay liabilities but because a big company was doing this or that. >> the questions of looking at financial stability involve looking at what the losses would be to creditors and associated businesses not so much an issue here. what the run risk would mean in terms of the potential spread to the economy and markets, whether or not it locks up access to some one or another essential services, we are looking not just at firms but activities, to
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see -- >> and it could be assigned a sif sifee not because inability to pay liabilities would cause a problem but because of their activities could be a problem. >> the question is are there activities within the managers that if were under a stressed situation, a series of bad events. these things don't happen in good situations. they happen when a lot of bad things are going on. we have to understand if there are activities that present the kind of risk we need to be concerned about. i don't know the answer to it. we ask the question knowing that the answer could be yes or no. i don't sit here today with a firm view. >> yeah. we are of course faced with his trade deal. we are told there are forcible standards but usually it is only
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if the executive branch of the government is willing to take action. with regard to china currency manipulation we pass a law requiring requiring the executive branch to do things. you explained the law is bad policy. so they will not be followed. if the executive branch won't enforce us laws because our trading partners would find that offensive it is difficult to see how any provision or trade agreement would be enforceable if that enforcement required -- >> the time of the gentlemen expired. the chair now recognizes the gentlemen from oklahoma mr. lucas. >> thank you mr. chairman. mr. secretary, good to see you in in the worker ordered we work through the subcommittee chairman, underclass and i
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didn't have a chance to ask you questions last time and that is appropriate and now you are back to the old guys on the back row. i share some of the concerns of my colleagues on both sides of the aisle but there is a problem with the liquidity issue on the financial service committee. it is hard to argue it has nothing to do with the cumulative impact. we work to improve the safety and soundness in the system but it is important not to lose sight of the impact of everything else and unintendingly creating risk and harming ability to drive the economy and create growth. i have a particular issue i would like to focus on for this moment and that is on the leverage ratio rule as it apply do is the treatment of segregated market. it increases users and impacts
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the ability to edge risk. congress required that margin received from customers for clear derivatives belongs to the customers and should be segregated from the affiliated accounts. under this rule the plant margin is treated as something the bank with measure and treated punitively by requiring higher capital requirements for clearing. if the end users don't have the ability to hedge the risk more risk is introduced customers way more economic growing is harmed and i think this is an example of the leverage ratio rule and it harms liquidity and increases risk in my opinion. as a creditential regulator, why is this something the bank can
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leverage? >> the leverage rule applies to all aspects even treasury and cash. it is a very inclusive rule and i think it is reasonable to ask questions as to whether or thought there are intended consequences and certainly you distinguish it from the folk rule that exempted treasury. that rule didn't affect treasury holders obviously. i would have to look at the specific issues related -- >> i would hope it would seem to have the affect by requiring extra capital to cover the margin accounts that are segregated and you would have the cost of increasing the price. i hope you see where i am coming from. >> i have been focused on the treasury and cash issue not the margin issue.
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i think if you go back to the purpose of the leverage rule it as a solid objective making sure institutions don't get over-extended and what the percentage is makes a difference in terms of whether or not it is a binding constraint. >> segregated the money makes since and i think we did the right thing. if regulators have been focused on removing risks from the banking systems through the capital requirement and additional regulations risk is going to exist somewhere within the system. if we remove it from the banking system where does it pop up next? if the banks can't play this role somebody will. will established who played that role is it more a danger to the overall economy than instance the banks? >> the banks are doing their core business and even under
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this rule they are not prohibited from market making and holding inventory from market making. you are asking a question i am asking as well. with the evolution of the market all there questions of financial financial stability, it does raise questions. about the estions about the system and all though about implications of a poet untrammeled quiddity. >> historically it seems like there's a perspective of evening things out with stability and the entity is are warming up and have also made this volatile if we take it away from the people, you know giving it to people that make more and are more
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intense. >> i think that one can overstate the tradition doing things in their economic interest and clearly having inventory has been real. and i also want to say that i think that if you look at what the definition of liquidity is it may not be reasonable that there should be no price fluctuation. >> the time of the gentleman has expired. we recognize the gentleman from missouri. >> thank you, mr. chairman. thank you we are moving towards passage. we know that great care was taking in dealing with the creation of this act.
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and we think we made significant progress and i think you agree with us that we have made tremendous progress. regulators have moved toward reading into this. some of the rulemaking i agree with, some of it i along with colleagues have challenged. but overall we made great progress. but when you think about dodd frank as a whole what do you think is the most significant thing left undone? what would you want to see right now completed so that we would have the full strength of dodd frank at work preventing another collapse? >> that is a very good question. there are obviously pieces that need to be completed and that is not what you are asking. you are asking the areas we have
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not addressed and i have to say gse reform is the area we have not addressed. it would be a good thing if we would. i am not sitting here optimistic that will happen legislatively but it is why we engage so much in the senate and bipartisan discussion to try to work through the approach to gse reform. >> a member of this committee mentioned the gse reform and a lot of that of course is over at hsfa and doing a great job. the work is helping the housing needs we have with money put into housing trust fund. one of the things that you may be able to help me with what do
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we do to enable private money to move back into the market? >> to back mortgages? >> yes. >> i think there has been small steps taken but there needs to be an active effort to look at what we can do to have a more active private security industry. the notion that most mortgages are backed by fha or gse that is backed by the federal government is not a great place for the industry and that part of the market to be which is why i said the gse report which is a path toward a activity private marketplace. >> but -- >> the experiment that i think have been useful are things like putting loss protection in place apart from the gse. it has been small. we have seen there are ideas
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there you can help with the public risk and start to bring private money back into the place through mortgage insurance or capital market products. i think more thought has to be put into that area to develop it further. >> but you believe there is a need for a secondary market? >> i am sorry? >> you do believe we need a secondary market. >> yes, i think it would be good with non-governmentally backed help. >> gse would be a hybrid? >> yeah or have competitors. >> i think in this committee there is some suggestion from time to time that the gse's are not even needed. and one of the things that i am
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wondering about when they were completely private, whether or not the private market you believe the private market has an appetite to fully takeover or in my mind reenter the market. >> i think, right now, the structure of our mortgage industry makes the continued operation of fannie and freddie necessary. the idea behind gse reform was to be able to chart a path with a different marketplace in the future. we live in a world withfen -- with fannie and freddie and have to take it better >> the gentlemen's time expired. we recognize the gentlemen from california mr. royce. >> one of my colleagues asked if
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the gse paid the money they borrowed from the american taxpayer. the simple answer my colleague tried to elicit was payments they have made to the government now exceed the rescue funds they received. mr. secretary, i think you agree here this is not the real answer nor the real question. the real question is have they repaid their debt to the american taxpayer and for that answer we can go to the federal bank reserve of new york that was asked that question and put it this way. they said should these figure be interpreted to mean the treasury and therefore the taxpayers have been repaid by fannie mae and freddy mack and they should pay divdeneds again? the answer is no. the new york feds said the taxpayers are entitled to a
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substantial risk premium. government support lowered cost and boosted profits and the government has never collected the commitment fee that the government is owed from fannie and freddie. so the false narrative that is per per that the taxpayers have been paid is not right. from your comment earlier, i assume you disagree with this narrative and agree with the conclusion of the fed that failing to work to wind down the gse and give space to the private capital to come in would be a missed opportunity to put u.s. mortgage finance on a more stable long-term footing. >> congressman, i totally agree and was trying to indicate in my response earlier the risk was
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being born by taxpayers on an ongoing bases and the conservative ship is not over. i would add the damage done to the economy by the housing crisis was far more than the simple amount of money that was put into the gse's. and i think americans are still healing from the pain of that financial crisis. i think the right thing is to do gse reform and get on to a new restructured system. but it is not the right time to be talking about ending the conservative ship or paying div divedends. >> i have publicly enforced reform to increase participation in the secondary housing mark and decrease exposure to future crisis and decrease the risk.
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but more risk sharing is something that can be done to create a lot of space here. a common platform is something that works for the gse's and then brings in private capital to use that platform. the common mortgage backed security would be a good start for congress to pass this year. if i could have your thought on that. >> i think the items you mentioned are the things we have been talking about and thinking about. there is a common security platform being built. it is something that could be expanded beyond the gse's and be available more broadly. i think the more we are able to lay foundation that a private security market can be built on the better we are. >> last week the treasury department announced the deliverables for the strategic dialogue.
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ownership caps were raised and this is largely symbolic because it doesn't provide benefits to firms. when chinese institutions invest they face no cap for activity restrictions and this was one of many impediments financial operations firm face. i want to raise that issue and the one i raised earlier technology restrictions, we have got, you know china agreeing to delay implementing a certain restriction on the draft, anti-terror laws that require foreign companies to hand over encryption keys. banks, and financial and technology firms cannot operate under those conditions in china. we were in shang and they were
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pushing for that. >> i agree with you totally. i have push back with china's most senior leaders and made it clear it is a significant issue here. it is something in the context of the ladeers both we need to see movement on -- leaders >> the chair recognizes the gentlelady from wisconsin, ms. moore. >> thank you for joining us today, secretary lew. i can't resist asking some questions about liquidity as well since that has come up several times. i want to take a different approach as to the required capital standard. i was wondering if you think the testimony you mentioned that it has been a year now since we have floated the institutional investors and i would -- and at
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least your executive summary was not very descriptive of how that has been working. i am wondering if we have seen less use or about the same of assets which are typically more liquid than other investments in the money market mutual funds. >> the rules i don't believe are effective yet. >> congresswoman the rules are not effective as of yet. they were put in final form for the future. but i think that we have seen a continued reduction on short-term and wholesale funding which is a good thing. but we still have very large amount of investment in money market funds. and we have seen in the financial crisis that there were risks they are and the reasons
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that the rules were put in place were to create a safer path forward. and we are keeping an eye on that as it's implemented to make sure it works as designed. but we have to make clear that we keep attentive as to whether or not there are sufficient or whether there's any traditional we were to close down are essentially shut down the many market mutual flow before it stagnated in some way present the institutional investors from having a liquidity. the connection between the money market funds and the rest of the financial system the wrist risk -- the risk of money market investors, institutional investors selling their position was creating the risk that the overnight funding of the
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largest financial institutions relying on would evaporate, and that could have caused the entire, you know implosion's of major financial institutions. we are in a much better place because we have rules in place to try and make it safe. >> thank you. you. you mentioned the threat of migration of servicing banks to nonbanks and the announcement of how it originated lending to goldman sachs really demonstrating the change in market structure more risk-taking incentive. i am wondering in that context whether or not -- how non-bank -- do you think it is more important to focus on of few industries fewer institutions, or what do you see -- do you see an expanded role given the
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change in the market microstructure? >> look, i think that we have tried to be very careful and analytic and the approach and not to overreach and go and do spaces that we do not need to be in all belong in. institutions that have been identified as market utilities with crosscutting exposures -- exposures and the largest kind of firms that are non-bank firms with a determination is made that the risk is there. we're not looking to regulate more firms for the sake of regulating more firms. we will go through the criteria. we obviously getting the smaller firms as we get down the way. >> thank you, secretary jack lew. i was done that some of your comments about gse reform and also your declaration and testimony that negative
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equity has declined. that has not been my experience at all command i think that homeowners are in a lurch after this recession, a lot of housing in my district terrier rating because you cannot land for needed improvements in the home. we need some sort of product. i have ten seconds so, so i just want to get your insight about the health of the homeowner in this environment. >> i am happy to follow up. i do not have the time but i have tried in a few instances to them -- to express concern that creditworthy borrowers should have access to the market and there are a number of things being looked at in that regard. >> the time of the gentle lady has expired. the chernow recognizes the gentleman from florida.
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>> thank you, mr. chairman. mr. secretary, in october of 2013 the online publication submitted a freedom of information request for documents concerning the intergovernmental agreements with the united kingdom's, switzerland, and canada. the the department probably acknowledged a request, and on october 242013 stated that expedited treatment has been approved. however, since then there has been no response in the department despite repeated follow-up inquiries from the sequester -- requester. on
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january 27 of this year 15 months after the initial request i sent you a letter asking for prompt action on the request and to keep me informed of a response that would be forthcoming. despite additional inquiries the only answer i have received so far is, is we are working on it. it has now been 20 months almost two years since the simple, initial request under the freedom of information act and five months since my lettering acquiring about the status of the request. is this treasury standard for expedited treatment? >> congressman, in congressman, in general our performance on freedom of information request is better than that. i am not familiar but i'm happy to look into it. >> it is hard to believe that there is some reason the department is -- >> i we will have i will have to look into the matter. >> stonewalling out on.
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on another matter i would like to bring your attention to, the fiscal year 2012 financial services appropriations bill included report language directing the sec. of the treasury to submit a report to congress regarding a potential risk to the us financial markets and economy posed by terrorism and financial warfare. i met with treasury fits pain in our is to 2012 and was told that the treasury would work on that. ludes the treasury would work on that end it also included in fiscal year 13 appropriations bills. and in july we sent for a status update. and in fiscal year 2015 that became public law.
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and the secretary of the treasury in confrontation with the appropriate agencies departments, bureaus and commissions that have this [inaudible] not later than 90 days after the economic warfare and financial terrorism. and obviously they felt it was so important that it has included language in appropriation dating back as far as fiscal year 2012 and even giving this the same attention and i was hoping you could provide us with some information about the progress on the report. as the secretary provided this report to relevant committees giving the department this issue for over three years and i would've thought that the department would have been prepared to meet that 90 day threshold set by congress. so ultimately when can we expect
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this report? >> in the area of economic warfare and terrorism, there is no agency in any government in the world that it has a more effective job and i'm happy to defend the record that you have here with the global leaders in making progress in this area and it's an area of great bipartisan consensus. >> doing this report is well required, it would be a great way to kind of toast or toast what you are doing. >> i will check on the report and i'm quite familiar with what we are doing, taking a great deal of my attention and i will have to check on it. >> will you have someone get to be a part of this next week reign. >> you have to let me know the stats. >> i will get back to you.
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>> we will get back to you promptly. >> okay. >> the time of the gentleman has expired. we recognize now the gentleman from texas and the ranking member of the oversight committee. >> thank you, mr. chairman. i think the ranking member and the witness today. and you're in no report, you cite concerns about cybersecurity. and ironically yesterday the subcommittee had oversight investigations that held a hearing on cybersecurity with a global perspective of cyberthreats. and one of the things that we
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took away. it appears to be clear and convincing evidence. and they have a clear and present danger to our financial system. we need additional assistance [inaudible] >> i think that the record should reflect the thoughts on why this is important. >> this issue of cybersecurity is obviously a relatively new issue but it has gone right to
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the priority list that we have and as i talked to the ceo is and top issues with many of them the challenges are many. it is hard to protect the system and hard to have individual assistance and i think the financial factor is actually we have a lot of work to do in the financial sectors than the sum of this overlaps than they are hard to run this modern financial institution. i think that it's very much in the minds of both regulators and the industry and the more tools that we have to work together, the more tools that we can work clapboard of we went and to share information and best practice is, more likely we are to be successful.
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and we are making progress. we have worked much better sharing of information. and i think the passage of legislation would be very helpful. >> i want to concur with you the witnesses that appear yesterday all indicated this, that you are at the top of the game. >> i don't take a bunch of comfort in that. and we have absolute security in my concerns have to do with the need for authority. what would you have us do immediately to give you this authority and i know that it has been a long-term here and other
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specifics that you can call to our attention. >> cybersecurity legislation would take down some of the barriers for sharing of information as well as collaboration in the private sector. i think about would be quite helpful. we are doing things now on a voluntary is where there's risks that firms have to balance if this legislation passes. i would be happy to follow this up and it could be helpful. >> finally, we have indicated that we believe that you should be allowed to be accorded a national plan as it were in order to deal with the responses to cyberthreats. but you'd like to coordinate this with law enforcement as well as regulators and how far
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along are we to coordinate this plan. >> obviously we are within the federal government and we collaborate a lot. and we are looking at we can do to be more prepared. and honestly that gives him the ability to develop a plan. >> thank you for your service. >> the time of the diamond has expired. we recognize the gentleman from south carolina. >> please go ahead. >> we are at the senate finance committee and at the time the system is our automated and that
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it wouldn't be easy. in the end of may of 2014 they gave this terminal at her saying that if if the debt limit were not raised and the treasury had sufficient cash on hand they will be technologically capable while the treasury was not making other payments and i asked when did you come to learn that they were capable of making these payments in may 2014. >> in a statement to this committee, we are entirely consistent. what i said is that we make tens of millions of payments and we don't have the capacity to pick and choose among ourselves, i did not address is there a
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technical capacity to pay this. i did indicate that we do have the technical capacity but it would be a terrible thing to do because you will be defaulting on something else. >> i was a very good answer the first few times i asked you. i asked you that question in may of 2014 and you told me that you would have to check. when you came back in march 2015, you said that you had checked that you had forgotten and he didn't remember it on that day but you would look into it again. i sent you a set of written questions and ask you the same question and i got two pages with no answer and it. some knock when ask anymore
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questions. i feel like i've given you enough chances to answer that. the question is when did you know. if you don't know, you should go back and be able to look it up. you did tell me that you looked it up and you knew that you had forgotten before you got here. >> the gentleman asked you a question today about whether or not you felt like your answers to this committee were disdainful. and you felt that they were reverent. and i've asked these serious questions. the other questions i asked her not the first time. this is not an empty question. this is not a question that we are designed to dodge to try to make it look bad. and then in the event that we
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reach the debt limit, we have had extraordinary laments. so yes or no you did not answer that. >> we had to wait six months into that question. >> i also asked to if you can commit that in the event that this does not raise the debt limit and we will continue to make principal and interest payments. and what are we to imply with a refusal for a year and a half. >> that the answers -- >> you had your chance. i could let you go until you had a minute and a half left. ..
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about somalia. a shocked. and what i would like to just ask you if you have any information on us it's a billy passed last year money remittances improvement act all well supervised. should have their license status recognized and respected. and i just want to know what you know. if you don't know anything i understand. i didn't tell euros going to
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ask you that. if you do now, i'll be happy >> congressman, thank you. as we have discussed this issue of remittances, we are concerned about the problems that families are having. still working on the implementation of the legislation and am happy to get back to you with a more detailed response on the status. more broadly we are working on this issue of how to deal with remittances and somalia >> right. >> we are working with the world bank to develop solutions to the problem, and that means building up capacity. right now there is not a real financial system to engage with. we have had meetings at a senior level at the political level, the central bank level, and i no that
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our undersecretary we will be traveling to your district to have some meetings on this issue. >> i appreciate that. i just want to say, again, i am square with the administration's effort to stop terrorist financing among the task force to help achieve that. on the other hand, we, we can get successful with that effort that we close of all of the money which would be unfortunate because what serves the centrist seeing the collapsing of the somalia economy which depends upon remittances to the degree of about 40 percent. so i. so i would like to talk with you more about the implementation of that program. i no you are doing technical assistance. i talked with political leaders there and try to give them my best perspective on how they can improve their system.
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could you talk a little bit about the work that you are doing on the technical assistance area and what sort of message you would like them to receive in order to develop that solid banking system that i think there going to need. >> there is not an easy answer to that question. it is it is hard to exaggerate how little they are starting with in terms of building a functioning financial system. you know, the tragedy is that there are legitimate transactions like family remittances that should be able to go forward but it is hard to know that the money is not going to go into the hands that will do harm. in trying to figure out how to build the system is why we were working with the
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world bank. we cannot go into somalia the way we do some countries because of the security conditions. we have people come out of somalia and other countries are training. not the most efficient way to do it. our people are great when they can go work with people side-by-side. you just can't do that. we're trying to do it off site to help them build the skills. it skills. it is a process. it is not something that you can just hand over and have a functioning system. we are trying. we will work with them and must be creative finding ways to start the process. >> i want to urge you on behalf of the people who live in the 5th congressional district of minnesota and many other parts of the country, we are going to start a somali cock a somali carcass because we have constituents who live in both districts and definitely wants to see them -- see that country is stable and strong and not be a haven or attractive nuisance for bad people. we try to do our good part and hope that you will continue to push with technical assistance. >> we will do so and continue to work with you try to find a solution. >> thank you. >> the time of the gentleman is expired.
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>> thank you. i am going to go back to an issue you and i talked about, liquidity. has been a hot subject. recent comments from former treasury secretary under president clinton and later served as advisor to the white house during the creation of dodd frank he recently warned regulatory authorities have made a mistake when i looked at each institution and said you will be saber -- safer if you withdraw from the markets and then forgot that if all institutions withdraw from the markets they will be less liquid. they they themselves will be less safe, and that will hurt all of the institutions there is an issue. frankly,. frankly, a lot of the effort that is going into micro- credential should be in the making sure we have liquidity. what is your reaction to his comments about the role of the regulations, not just dodd frank, but layer capitol and liquidity mandates for having fixed-income markets.
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>> congressman, as i said in response to several questions today, this liquidity issue requires our serious attention. there are a number of factors that have been at work. you know, it ranges from the.in the economic cycle and the volatility that is natural at that time through the emergence of new market mechanisms that are different and present different risks to the volume of corporate bond issuance. i have also so that we have our eye on whether or not there are regulatory issues. it is one of the things we need to look at. i am not approaching this from the view that we no exactly what it is. i don't think anyone does. >> a possibility that it could be overregulation. >> i think that the question of regulation is much more speculative and people have jumped prematurely to a conclusion about regulation
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which i think would take our eye off of where real risks lie. >> would you say we need more? >> i think we have come a long way since the financial crisis. we have the ability for our institutions to withstand a bump in the road that they did not have before. that does not mean we should ever stop. >> you think more is needed? >> i did not say more or less. you can't take 50 years between looking at these questions. it doesn't turn out so well. we need to keep by in the future and be open to the possibility are multiple factors at the core of an issue. on something like liquidity it is a fundamental importance. the treasury markets, the treasury markets, the corporate market, the high risk market, not all the same. liquidity issues are not the same. >> the comments of been echoed by everyone.
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we talked about you issuing data-driven analysis. the problems that we face and more regulation. i know i'm just going to differ with you. it sounds like you are inclined for more. >> we have to be open for less also. >> and that's good. >> more or less. >> what seems to be happening is the more liquid is tied up in the markets it's not the bigger institutions the pay the price.
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to make sure when something eshpes e there is enough liquidity available. thank you and with that i yield back. ield back. >> the german from colorado. >> thank you. seeing cool under the withering cross examiner it -- cross-examination. i have a different view than the chairman mr. duffy as to what is going on in the economy. might as well start with all the records being said by dow jones up from 6500 from 6500 at the end of george bush to 18,000. s&p. the nasdaq three times what it was. foreclosures are down. a tremendous improvement across all sectors.
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so when they are talking about calling the market and you are causing them to royal i want to thank you for rebuilding the markets. from the recession that we were in at the end of george bush, and i don't know if you have your report in front of you but there are very important graphs that i would like you to take a look at if you have your report in front of you. so let's take a look. easy ones starting with 4.1.4. that is just under the obama administration
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