putting americans to work, that is is what we're going to do do again! [applause]. let's set the goal of making college it debt-free for everyone like erica. [applause]. [app and let's provide debt relief, let's provide debt relief as soon as we can, as soon as we start to work elizabeth, we'll take the day off for the inauguration and then the senate, the congress, the white house, we are going to get to work to get students and theirus families relief from this debt! [applause]. we have more work to do so let's

set the goal of rewriting the rules.'s so more companies share profits with their employees, not just their executives, instead of shifting profits and jobs overseas, we have got the greatest country in the greatest economy in the world, let's start acting like it. let's make it clear that the companies have to be part of that greatness! [applause]. let's set the goal of makinggoag sure that wall street and the wealthy pay their fair share of taxes.of ways of now there are a couple ways of doing this. i have been proposing a number of them, something called thee buffett rule after warren buffett's. no millionaire should pay a lower tax rate than somebody working for him, like his secretary.

[applause]. the people who have profited the most, even since the great recession of people now need to give back. this country hasry given so much to all of us. everybody should share the burden. i have made a pledge, i will not raise taxes on the middle class, but, but we are going to raise taxes on corporations and the wealthy! [applause]. and don't you think it is about time that we put american families first, we are not living in the 50s or the 60s anymore. we have to catch up to how americans actually live and work

in the 21st century. i have met so many stressed-out young parents. paren i've many met so many stressed-out middle age and older folks, young parents because they're trying to balance what should be the joy of their lives, like our new grandson is for us and our granddaughter. [applause]. i remember, i was talking to elizabeth on the phone when she was visiting her family, her grandchildren and we talked about all of this important stuff and what we have to do in this that i have to go because i have to go by my granddaughter some sparkly shoes. [laughter] there is no greater joy than too see young parents struggling so hard and to see older people taking care of their parents, we have work to do, we should not make it so difficult to do your

job at home and do the job that puts food on the table and a roof over your head. let me just say a word about rewriting the rules. you know there are a lot of businesses driving right here in ohio who see their employees the right way. they see them as assets to invest in not cost to cut. [applause]. unfortunately there are too many who take the opposite view and their behavior contributes to stagnant wages and lower economic growth. that is wise president i will work to reward companies that share profits with their employees on top of paying a good wage.oo because if they can do it for their executives, they sure can do it for their workers. [applause].

we will encourage companies to invest in worker training and to build high-quality apprenticeship programs where you earn while you learn and we will strengthen unions because they are the bedrock of a strong middle class in america. [applause].ing back the aut unions help bring back the auto industry in ohio and they will help bring back america coast-to-coast! [applause]. so here is our message, here is our message to every corporate boardroom. do the right thing by your employees and your country and we will stand by you. but cheat your employees,

exploit your customers, pollute to our environment or rip off taxpayers, and we will hold you accountable excavation point [applause]. because when companies take taxpayer dollars with one hand and give out pink slips with the other and shift hundreds of jobs overseas, we are going to make them pay back those tax benefits and we are going to take that money and reinvest it in workers and communities and we're going to slap an exit tax on companies who move their headquarters overseas to avoid paying their fair share of taxes. [applause]. we will defend american jobs and american workers by saying no to bad trade deals like the transpacific partnership and on

fair trade practices like when china dumped cheap steel in our markets or uses weak rules of origin to undercut our carmakers. i'm going to appoint a trade prosecutor who will report to the president so we are going to end the abuse of our markets, our workers, our people! [applause]. you know what? we are going to win in the global economy by not letting anybody take advantage of our workers, not china, not wall street, not anyone. and we are going to defend and strengthen the tough rules to reign in wall street that were put in place after the crash. c corporations pay fines for breaking the law, those fines should cut into executive bonuses, and -- if laws are

violated individuals, not just corporations should be held accountable [applause]. and i will veto, i will veto any effort to weekend protections for consumers. while we're at it, we are going to finally make wall street, big corporations, and the super supr wealthy do more that is not only fair in terms of paying taxes, but which is right because we can use that money. to make these big, bold investments. that will help us build a stronger economy forno decades to come. you know what question if that's not only good for families and workers, that a is good for companies, for businesses, we are 70%

consumption economy my friends. that means the more money that you have in your pocket that you can spend, the better that is for the economy. and the way things are right now, people are afraid, they are holding back,,t we have got to liberate the american consumer by protecting and helping the american worker. we are going to make more things in america. we are going to ensure that we have the most competitive auto and auto-partsv industries in the world. [applause]. and when we invest in infrastructure, we are not just going to be investing in roads and bridges, tunnels ports transit and water system, we are going to connect every home to high-speed broadband so they can get into the global marketplace. [applause]. and we are going to fight climate change by making america the clean energy superpower of the 21st century!

[applause]. and a complement to your mayor who is here, your state representative, lisa reeve, cincinnati is always ready one of the biggest cities in the country to run 100% on clean energy, congratulations! [applause]. i will tell you what mayor, i hope you do not mind if i go around the country and say if you can do it in cincinnati you can do it anywhere, that, that is what we need across america! [applause].

li and while we're at it we are going to raise the national minimum wage, $7.25 per hour is a poverty wage. workers deserve better. they deserve a living wage in a job with dignity. families deserve real support like quality, affordable childcare, paid family leave, affordable childcare, paid family leave, and equal pay for women. [applause]. now i know when i talk about these things donald trump says i'm playing the woman card, will i tell you what, what, if fighting for families is playing the woman card, deal me in! [applause]. [applause].

go so in order to achieve these goals we need to go after an and the political dysfunction that is holding our country and economy back. so let's overturn citizens united and get on accountable money out of politics [applause].ff the revolving let's shut off the revolving door in washington and make sure the foxes are not guarding the hen house excavation point [applause]. and let's learn how to listen to each other and work together again. i am am determined to break through the gridlock, to get things done for working li families, i know democrats and republicans can work together. i know because i have done it.pn i've worked with republicans and democrats to create the health insurance program which today's insurers a million kids. i worked with republicans and

democrats to bring jobs back tob upstate new york and to help new york city heal and rebuild after the 9/11 attack. i proudly served as secretary of state, and i did did not just represent democrats, i represented all americans,d because you know what? we are all on the same team. it is is time we start acting like it. there is no limits to what we can achieve if we do. i confess, it is true, true, i can be a little wonky. [laughter] but i have this old-fashioned idea, if you are running for president, you should say what you want to do and how you will get it done. will [applause]. so now that you have heard some

of my plans for the economy, ask yourself what are donald trump's plans? well the best i can tell us that he has no credible strategy for creating jobs and maybe we should not expect better from someone who's most famous words are, you're fired. [laughter] [boo's] now, he rails againstil other countries doesn't he. he says he is for our workerske, but trump's own products are made and a lot of countries that are not named america. trump suits were made in mexico. he could have made have been made in brooklyn, ohio. ohio.oo trans furniture is made in turkey instead of cleveland. trumps barware is made inps slovenia instead of toledo.

so how does that all fit into his talk about america first? but that is is just the start.th this is a man who plays quoit with white supremacist and mocks people with disabilities. from talks about banning an entire religion from enteringg religi our country, who advocatesat getting rid of gun free zones in schools, letting more countries have nuclear weapons, defaulting on our national debt, turning back the clock on the urge equality. and just like elizabeth i could go on and on.n this is someone who's reaction to the horrific mass shooting in orlando was to publicly congratulate himself. on friday when britain voted it

to leave the european union he crowed from his golf course about how the disruption could end up creating higher profits for that golf course. even though within 24 hours, americans lost $100 billion frol our 4o1k. he tried to turn a global economic challenge into an infomercial. ec imagine, donald trump sitting in the oval office the next time america faces a crisis. imagine him being in charge when you're job and savings are at stake [boo's] imagine him trying to figure out what to do in case of an emergency. it it is no wonder, is it that analyst listed donald trump presidency as one of the top threats facing the global economy, ahead ofad f

terrorism. well, we are not going to let donald trump bankrupt america the way he bankrupted his casinos! [applause]. we need to write a new chapter in the american dream and it cannot be chapter 11! [applause]. if you believe that donald trump is wrong for america and that our best days are ahead of us, please join us in this campaign. we are stronger together, we are stronger when we grow together, when we lift each other up, when our economy is working for everyone not just those at the top! let's get to work ohio, let's knock on doors and register re voters! let's send alicia back to

columbus, let's get more strong progressive leaders like senator warren in washington and state houses! this november, let's take our country in the right direction with confidence and optimism! that is what we can do together! thank you all, and and god bless you excavation point [applause]. ♪ cinema go ♪ ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ ♪ ♪ ♪ ♪ ♪ >> are wrote to the white house coverage continues tomorrow with a donald trump in pennsylvania. he will give a speech on trade and economic policy. live coverage at 2:30 p.m. eastern on c-span.

the hard-fought 2016 primary season is over with historic conventions to follow the summer. >> colorado, florida, texas, ohio. watch c-span as the delegates consider the nomination of the first woman ever at a major political party and the first nonpolitician in several decades. watch live on c-span, listen on the c-span radio app or get video on demand at c-span.org. you have a front row seat to every minute of those conventions on c-span. all beginning on monday, july 18. >> treasury secretary headline today's committees annual meeting of the global economy.av we we also your from u.s. trade representative michael furman and i am absent first managing director david lipton. together these events are just under four hours.

>> good morning, could i have your attention. i want to welcome you all, i'm bill rhodes and i'm a member of the bretton woods advisory council and we are very happy you can make it here on this very important day, particularly since we are already into the summer. we are especially happy that you are here. secretary of the treasury, secretary lou will be speaking with you shortly. of course you cannot ask for a more important time for the secretary to speak for this meeting with the question of brexit and the rolling of the markets that we have seen over the last couple of days. if you could yourself owns on silent and if you have to take a call you can always go outside. we are not going to have any breaks, we have we have the

coffee and the breakfast right there. we will have a question and answer. after each speaker. and now i would like to introduce our executive director randy rogers who will be introducing secretary lou.u. thank you. [applause]. >> welcome everyone. thank you bill. i just like to share with the committee to, good news and that bill is ben playing an increasingly integral role with our leadership team in the committee is all the better for it. we we hope that continues in the future. we could not have foreshadowed better program title based on recent events and we are very fortunate to have secretary lou

here to help us decipher it.thes secretary lou was confirmed by the united states senate on february 20 seventh, 2013 to service the 76th secretary of the treasury. previously he served at the white house chief of staff and the obama administration and various positions in the obama and clinton administrations. and was house speaker early in his career. all of you have been well aware of the committee's effort over the last five years to help try you ha to drive imf quota reform to the u.s. congress. secretary secretary lou was absolutely instrumental in helping push this long overdue quota reform through to congress last year.g on behalf of the entire bretton woods committee i would like to express our sincere appreciation in that regard. [applause].

i will leave it there, and with that invite secretary lou for the podium for his opening remarks. [applause]. >> good morning and thank you randy for that kind introduction and for your leadership within this great organization. it is a pleasure to join all of you again. it is important and timely discussion. i like to start with a few words about the united kingdom's referendum on membership in the european union. we respect the decisionic of the voters of the u.k. and we work closely with london, brussels, and our international partners to ensure continued economic stability, security, to ensure continued economic stability, security, and prosperity in europe and globally. in recent weeks i have been a regular contact with my counterparts in financial market participants in the u.k., the e.u., and around the world. we will continue to consult

closely in the days, weeks, and months ahead. that brenton wood institutions were born more than 70 years agp out of a sense of international interdependence, cooperation, and responsibility. they helped usher in a period of unprecedented economic gain, lifting people out of poverty and creating conditions for a more peaceful world. we must all build upon that shared responsibility by recognizing that we have the capacity political will to boosa growth and overcome the challenges facing the global economy. we must also continue to reform and improve the broader global economic system including the bretton woods institution to confront today's challenges.

policymakers must redouble efforts to clearly explain the benefits that flow from these larger global institutions which can all so seem removed from the day-to-day lives of u.s. citizens. as we move forward, it is important to stress that the u.k., european and global policymakers have the tools necessary to support not just financial stability, but also to promote economic growth. it is in covenant upon major economies to use all tools available, that means physical, monetary, and structural tools to boost global demand and create the kind of inclusive economic growth that has been lacking worldwide. as we work with our partners around the world to advance the critical work we are reminded again of the importance of u.s. leadership in the global economy. sustaining that leadership in adapting it to the challenges of our time remain indispensable to the well-being of american workers and families, as well as to the ability of the united states to project its values and achieve it's a larger form policy objectives.

to that end, we have worked tirelessly to build and strengthen our position while using it to promote policies that foster economic growth and opportunity both at home and around the world. when i spoke to this group last year, they face an uncertainn fate in congress, the export import bank lacked congressional authorization and the path to approval at imf quota reform remained unclear. since then, we have made significant progress. congress passed tpa last summer and in the fall we finalized negotiations on the historic 12 nation transpacific partnership. import bank. in december a bipartisan breakthrough led to the reauthorization of the export, import bank. as a result of the concerted effort of our team in treasury and treasury and many of you in this room, congresssss finally approved imf quota reforms. we could also add to this list other achievements including the iran nuclear deal reached last summer and the landmark climate agreement reached in december.

these are meaningful accomplishments but as i noted recently in a foreign affairs essay, the case for continued u.s. economic leadership faces challenges. in order to confront those challenges and sustain our position in a rapidly changing world we must take a long-term view of our economic influence and its value to our citizen in the world. history has shown that u.s. economic leadership is vital to the well-being of american workers and families and has been an essential tool for projecting our values and achieving broader form policy objectives. those benefits are the central motivation behind theeh transpacific partnership which will level the global playing field for u.s. workers and firms while getting other countries to meet a high bar in environmental, labor, and intellectual-property standards. consumer would open global markets by connecting u.s. businesses with consumers and many of thees world's fastest growing economy. that is why the president

remains committed to securing congressional approval this year. we also continue to make progress on the trans- electric trade and investment partnership.ar similar negotiations are underway in reaching a trade in services agreement that would deepen integration and influence the development of the global services architecture with countries estimating 70% of ford output. going forward, we need to ensure that our global trading system continues to set high standards in terms of engagement and more robust protection.o u.s. workers need to be able to compete on a level playing field with high standards on labor, environment, and ethical business practices. practices. . . be a quota reform we continue to work to modernize the imf allowing for a candle and resourceful review of issues like exchange rates, current account balances, and shortfalls in global aggregate demand. we need to ensure that the world

bank and the regional development banks have the resources and expertise they need to address today's complex challenges and promote the kind of sustained development that benefits all people in all communities around the world. in the international financial regulatory system reforms have already been resulted in capital standards, greater greater transparency, stronger tools for addressing struggling institutions. we must continue to focus on implantation and potential emerging threats. financial institutions in the u.s., u.k., and europe just last week demonstrated greater resilience because of the progress we have made. as we remain vigilant we must also keep pace with advancements used by our adversaries. the u.s. and his partner countries have stepped up efforts to combat terrorist financing, corruption, money laundering, and other financial kinds as they pertain to isil and other pets. finally, we must all commit to

making greater progress with emerging market economies to address priority such as open investment, improved implementation of tax policies, and greater financial inclusion. we know that a system built on cooperation and high standards of economic governance works. earlier this month i returned from the strategic economic dialogue in beijing where our discussions led to a number of important commitments by china. the united states and china are the two largest economies in the world and have been the primary engines of global economic growth in recent years. this is why so important to maintain close engagement with china as we continue to press them to reform their economy. china pledged to implement important domestic reforms to coincide with its transition to a consumer consumption led economy. we challenge . >> china committed to

undertake to outline the package of reform to enable the steel industry of the market forces we know that more remains to be donestment specifically with regard to discriminatory trade and we also received commitments bank with the eighth jet infrastructure investment bank of the financial restitution.g the redwood's has solved the -- serve the system by providing the foundation for greater international cooperation for grow in that

spirit to ensure that the modern economic architecture carries challenges that we face in the years ahead.ing to e thanks for coming to these meetings and i look forward to taking your questions. [applause] >> thinking mr. secretary. let's start with the news of the weekend i think it is fair to say that the only certainty is uncertainty there is plenty of market volatility to come of it in would characterize it as aas

black swan event for the market that created a political crisis in the u.k. the existential crisis and econn certainly to be determined economic financial social trade and investment repercussions to come. long-term on the one hand the u.s. financial system is a much better shape to be much moree capitalized in far lessin leverage than 2008. are you concerned at all and how you potentially ec at the potential outcome of

>> obviously we have been looking at the potential outcome for some time with the finance ministry and like a natural disaster.ere mad, and looking up the preparation to homage stronger financial and institutions are or how much better of cooperation of 2008 certainly there was a lot of volatility and to have implications of long-term developments and

not to see that in a asset values is a the fact that there were moves in africa how changes absorbed in behalf to observe there is a change and do day workout but that period of change will take some time for girl and a relatively weak global economy and that is consumer driven so we have resilience built-in though we're not caught off. headwind. notwithstanding the headwinds.

is a very focused to keep the u.s. economy going with the growth that is presentpr and has been for some time and looking at our colleagues around the world to promote growth in the environment that is implicit in the change where policy-makers can continue and from those events that would unfold. >> let me shift toward a the program's theme of multilateralism and how you give a litmus test on the

current levels and some who may string together this rejection of the e.u. and globalization and the widely populist and you even consider potentially emerging actors that benefited greatly looking to try to gain their own influence is there the underpinnings of the story of bilateral listen? >> as i wrote recently if you look at the history

toward the multilateral endeavors there has always been the a pill bottle from woodrow wilson from the foundation of the bretton woods organization'' we have la0 learned in the last 70 years house important that commitment has been that has lifted people out of poverty to create opportunities if you look at the areas of the world and imagine a different picture isn't a better or safer world but a better chance of prevailing replay a leading role andhi when we promote things likeds

high standards on the environmental practices when we work with our colleagues the other nations around theh ko world but that in part both by being the world's reservel le currency and is unjust financial institutions. >> go where we have fallen short to believe bin multilateralism. with the day-to-day lives of people who are not thinking about the goal economic stage and what the future means for them and their family. future in to make a more secure

future and then to have the underlying division. with the distribution of opportunities and benefits and chrome -- grow increasingly desperate and we need to focus on translating the economic benefits with the day-to-day lives of working people with the skills they need to compete that introspective to have a better future and the rising tide truly.t is on china. >>. >> one more a question before reopen to the audience that is china.china's

had you believe the progress being made? there is a lot of risk out there what concerns you most over the financial system? are you concerned about the overall level or the shadow banking or any of their aspect? >> when i hear some remarks i believe china's economic policy understand what they need to do with the transition they're going through principally industrial economy and the things that happen in the economy there very different of the excess capacity that needs to be reduced leads to concentrations of people and

will have a political will to do that?ools to deal with with the vintage to have the tools to manage the transition. >> with that china's economy to of the largest of theintercon world with the macro economic condition if you look at the financial interconnection it isn't theit same as uk financial institutions it is the macro economic spillover of the financial challenges. wh and they will have to make some tough decisions and

with their work through to protect. unless it and a dozen spillover globally with the economy ofer china has a hard landing but the big global concern is had a soft landing.e single digits i is that a surprise or bad cannon thing? going. how do they get from whereai they were? about there was undue pessimism that was largely driven from a lack of confidence to navigate dash. they have enormo they have the enormous fiscal capacity and

political decision making process.eve they can manage a st that is something of taking it from here to there they can get a software -- a soft landing.ina have been key to because united states and china have been key. >> we have an opportunity to open for a couple of questions. >> we will go to committee maybe we can ask both of >> maybe we can ask both of the questions one after the other and let the secretary respond. >> per george mason university so what this cool

head room does china have to stimulate this transition to domestic spending in the economy considering the revenue as a percentage of gdp is rather low.hysical toolse so what tools would day have to put more money in the hands of consumers and manage to supplement the fiscal revenue side? agreements. >> mr. secretary mentioned the climate of group led to see for u.s. leadership we pledged 3 billion by unearthing -- a

understandings are stagnant >> so what do you see we can do to get that going? mclellan me start with china with the private level of indebtedness is actually quite low in just with the most recent trip that was announced china decided to pursue a more expansive fiscal policy with a short-term borrowing and use of for those sustainable levels but in terms of short-term actions of economic growth to have a cushion to have ample

capacity the issue isn't so much do they have the headroom but use the capacity to drive for were the transitions the risk of using that had room with gold industry and sectors we very much to encourage china to put them in the hands of consumers as they make moves it is not either/or and then to allow for the market forces to play a dominante rule and the need to create

more consumer sentiment with the transition., and then we're moving in that direction but they could move a little bit more in the interaction. >> there has been enormous supporters that was very important to us to get the u.s. contribution in place as quickly as possible we achieve that with the budget agreement with the resources to do so and now we're at the point to move into theyou te government's space that can tell you we are committed to getting off the groundg quickly with high standards to promote their resilience and the fact that we were in

a position to make the contribution is key to ongoing u.s. leadership in having this conversation at the imf to be deeply aware of the u.s. makes the commitment it takes a long time to keep it makes it that much harder for maximum pressure for policy goals.e havl we have done pretty well but in the case of the green climate fund a new program for us to be on the ground to help drive the organization to have a reflect supply and very pleased we're able to make that contribution to get it into action -- action. >> mr. secretary forgive me

for bringing up brexit again but it is unfolding with the events. europe? what are you advising your counterparts as it seemsms remain not have the prime minister before october chancellor merkle says it's a slow process and seconds will guard sai seconds, are you aware of any specific liquidity operations?h. and if i can remember the third -- nope. is gone.

[laughter] >> with the central bank governors for the weeks proceeding to remain in touch going forward i think they're in a period of change it will be a period of change the question ofus the pace at which those discussions will take place to work out on a mutual the acceptable basis and we all need to do to promote growth and economic activity and we have to do internationally and in just a few weeks and

i had a good conversation isn't just the morning after but howard of policymakers showing a political will with economic growth during a period of change. u.s. to but i forgot the second question already. >> it is important united kingdom prepare that institutions have of greatio deal of liquidity the bank of england head can step then with additional liquidity around the worldd to make sure there is liquidity to. we have seen market conditions were liquidity

has been provided for not to said there hasn't been substantial volatility but in the well functioning markets that is important but the question of ongoing financial stability you cannot predict with certainty how the day will end or the week will end for the month will end last friday through the early market hours. >> spending from theed states ig canceled -- from the council

changing what constitutes the word of the work .1 dash to workplace or the work force. are we using the right measures to talk about productivity or growth when maybe 40 percent of the people are float free agents to create economic value and wealth cannot funneling them models and the policies? >> i think that is a question clearly there has been a lot of change in the question that probably wogy but whether or not that is measured accurately it probably will not be resolved quickly in the

1990's and we did see the full benefit of productivityept even though we knew that it had to be there i think whatever the measure is we know that things that we can do to promote research and development to build the infrastructure are tributes to economic activity in the particul future of with those particular technologies? i don't think we as policy makers should make economists come up with the new theory i think we need to stick to the things that we know is the economy of

the future to have workers trained with the skills and a sense of fairness with a growing sense we're just sets with the investors at the very top and it doesn't make their way to the paycheck regardless of where they come mount is a long period of thinking aboutyou tale this. >> for a u.s. executive director from the imf talking about countries needing to use all their tools. the story doesn't have a happy ending with monetary

policy that if this is fiscal id sufficient of the major industrialized country to deal with the fiscal issues to create some type of fiscal policy as a compliment you see anything happen in terms of the a upcoming meetings with their own economic and political environment to deal with these headwinds? >> earlier this year there was that meeting in shanghai and a few weeks ago we had the g-7 meeting in japan we discuss this at considerable length in the reflected aflect f commitment all policy tools

it to reflect the austerity vs. growth characterizing past discussions there is different amounts of physical space in different extents to which the monetary tool could be used for where the economies are four changes of monetary policy by the belief there is a one-size-fits-all answer but to have the best economic performance each of misdeeds use all the tools suboptimal outco that we have otherwise it will lead to a suboptimalnt all comment in the aftermath of the g20 commitment to seeks d movement in the key economies. the nimby committed to

greater fiscal stimulus. canada has embarked on fiscal policy and china also embarked. some people thought we should have a concerted position cover every economy to move the same way at the same time to look at what

can we do with all of the economic levers of that possibility with the globaln thd economy supplying a fair amount of demand we need to have other economies. i believe there is an increasing focus travel back away from making the case and frankly it was true before the vote and mr. rafter. but being in that period of uncertainty they will stand wasd back that is not what we should do or have been doing

for those to help preparewe for either outcome we will meet again.f we do it will be marked by oneeve we o moment if we do that we can create more growth globally. >>.ch to trying >> how does brexit change u.s. regulators approach toyou'l harmonize transatlantic is in just one entity but two

of them. >> reworked quite a hard the last 3-1/2 years and a number of years before that to promote bystanders of financial regulatory approach bilaterally in other parts of the world we should all walk away from this last week with a high end understanding of the benefit i standards of leverage and evolution and it will not ever be anything because of the financial system is exactly as it is

there is the increasing discussion among the authorities about the future and -- in front of us. the traditional institutions have mutually reinforcing missions and like to hope that a regularly cooperating we all know that there's room for improvement across them, but now we have a new one across the pond, too. in the asian infrastructure investment bank, and

specifically what can the u.s. do to help the institutions promote harmonious development approach? what can we do from u.s.a. leadership standpoint. >> we're doing quite a lot from the u.s. leadership standpoint, both in terms of the leadership role we play within the institutions, what we do bilaterally to compliment what the institutions do, and even when we are not part of an institution by providing counsel, guidance and a public context. we talked about the green climate fund. the u.s. has been a leader in driving towards coming together, using the existing resources that supplementing them with new resources and working to balance what we do multilaterally and bilaterally to deal with one of the great challenges of our day. with a new institution like the asia infrastructure bank we were deeply engaged in discussions

with potential participants and ultimate participants about how to make sure that institution, which is geared towards dealing with a very real problem, a lock of a shortage of resources resod infrastructure around the world, but how to do it in a way that compliments the high standards of the imf and the world bank, and i think that as a result of our interactions with both the designers in china and the other countries who have joined the institution, the commitments that have come out, both to partner with the existing, the old international financial institutions and to seek to meet standards that are on the same order, that's very important, because getting more resources in at high standards is a good thing. we said that from the beginning. and i think the united states has a unique role in the international financial architecture as one over the principle designers of the system 70 years ago. we also have a key role in

recognizing that as the world changes, we need to have inclusive roles for emerging economies, which is one of the reasons i'm a pro reform is so important. it wasn't just about money. it was important for the imf to have adequate resources to deal decisively with whatever comes up in the global economy. so, yes, it's about money and the economics. it's also about the investment that countries around the world thatting growing have in the international architecture, and sending the message that you need to be part of the system of high values. you're reexpect sped you're at the table. think the response that i've gotten around the world to the approval of imf reform has reflected the importance of that. we have, i think, made clear that our actions back up our words in terms of our commitment to ongoing u.s. leadership in

these important institutions, and that's one of the ropes i'm so happy to be here today with you and the committee because this is a group that worries about it day in and day out and i think one of the challenges we have is to make the case so that it's something that people who don't deal with the international financial institutions, but look at what does it mean in their day-to-day lives, can understand and translating it into that language is something that al of us have to take more seriously. >> we have been very fortunate to have your investment in the committee two years in a row now, and especially this year in light of circumstances, we're very pleased you could join us so have a round of applause for the secretary. [applause] >> thank you very much, mr. secretary. [inaudible conversations]

and it will be very interesting to hear with our host and record to the good questions from the audience. thank you. [applause] >>. >> it is my pleasure to moderate the next session as a managing director of the imf the session will focus on the state of the global

economy as well as potential mechanisms for policy response and obviously a the critical role to manage and responded to these risks and we had a very interesting discussion and as a format and then got the audience to ask questions i would ask david to start us off as someone who has extensive experience in as the secretary for international affairs.

>> what me start by thanking you played an important role and those that position the fund will. if from the 21st century. but there was an awful lot of dramatic headlines in signalling the end of globalization and to understand the ramifications. to make the case for multilateralism for perot

and i will argue globalization of the house still has the important promise but to achieve that will take a look at multilateralism it is more clear than ever so the meeting today is fitting. my generation can be excused with rising incomes and economic progress our experience was very different from our parents that came of age cousin during the depression and

now the votes from brexit changes the direction the the effect is the withdrawal of the u.k. and of the greatest projects. with the creation of the euro in the reintegration of the least brexit is the interruption of the integration and process. read leading to the globalization. and many say it is impossible with those

political reactions with deepening integration and to bring in meaningful benefits mac the vulnerability and a social and cultural without clear but economic benefits to dominate public opinion. for people in abeyance economies and of course, growth is still sluggish.

and stagnating wages. nbc and fear market volatility. but there are some economic forces and then to answer some very important questions. in reflecting drying up and what can we say? and first globalization has lifted i still believe there is every reason to believe

and to limit the cost to make the case to us skeptical public and most of what needs to begin and what we would call the three-pronged approach was support for demand with is:monetary policy without reliance and to boost potential over time of this

remains for individual government is so far has not made enough progress. and third a part of those political problems cannot release of domestic problems to fill the aspirations. and to be true in united kingdom in or out of the european union. so we need everyone pushing in the same direction. that is why it is important for the imf to rally the membership with each country doing its part and leaders can have greater assurance

the growth is based on demand creation and we need to make sure the international monetary system to create growth opportunities and they said have a few things in mind. even if these the viet -- against economies in principle the emerging market hold the potential to be the engine of growth for the next generation. if they can achieve rapid growth to converge on the living standards the right now we see a slowdown of potential growth in the emerging markets with their present imf protection many

large emerging countries why is that per first? of internet communications had ample funding for investments in financial engineering and countries should be accelerating and they have much to do a home to deal with the legacy of the crisis and foster faster growth but the volatility of the global economy has just not been helping with the emerging markets you have to

act defensively of guarding against account deficits to cause contraction. and so fissuring with weak currency -- self assuring the international monetary system can be examined that could provide protection and the dos and don'ts we can ask how to promote growth and how to discourage paul tile to promote better technology transfer. in the increate of a better financial safety net through imf coordination and

possible new imf lending facilities. there's also room for cooperation leaky infrastructure investment bank and by observing the new normal has of parallel of global politics and hegemony with a growing number with adverse impact the need to pay more attention through economics

and geopolitics. and is already in the work we are doing. to address the refugee of your. and i believe the imf is stronger than ever and there is no small part to the bread woods committee. with those new challenges that arise with the multilateral solutions to respond to the changes that we see. thank you very much. [applause] >> the key very much her

responsibilities cover all aspects of the banking operation and including indonesia finances and we will hear from her first. >> it is a pleasure to be here again today. and i agree mostly with all the questions to the races this morning. was a global economic environment and with that new reality but on the other

hand, to have extreme poverty and as they have a new set of targets for the implementation we do have some risk even before brexit at the world bank with that situation and increase and

revise the global forecast at 2.9% and apart from the united states we saw from the of global economy and now we're struggling with brexit and with the economy and to underperform in china is rebalancing its economy this in itself has affected the ability to discuss in the first session. the commodity exporting imaging many of them are home to millions of poor

people of halon account for 50% of the global economy that is projected to amount at the meager% this year that is a downward revision of water 2% and furthermore also with the increased debt of over policy space so obviously it is becoming very limited so with those cyclical factors please see a strong driver one of them is a demographic trend it

will be harder to sustain the growth it would be much harder to achieve and then to have a different outcome into lincoln the productive life it will increasingly compete for jobs and also with some services with the transformation from low income countries that will demand systems for aging populations in developing countries as in africa and southeast asia.

according to our study 100,000,004 people per probe into create additional philanthropies. there are now 65 million people that a higher life as a refugee abroad and. and so we have a tough mix of risk with a complex set of challenges to result in a setback that would be affected the most. so what do they addressed to support them? the initiative facing monetary policy and fiscal

policy as they face severe as a solution and now they're on the minds of many governments to see a sharp increase of demand from our services many of those is based not what needs to be done but how to do. but to make a strong foundation for good. this is is a two-story bin logistical but even to make it investing more attractive.

the with our presence in many countries with quality lending and investment lending as well as working with the private sector and structural reform that we are responding to growth by supporting those reforms in the specific action to bolster the safety net especially during this time. for example, lois expenditures well of the same time from the policy adjustment and also helping to target to the port and

the ukraine with the social programs but the effectiveness with indonesia and china into improving those from china. also the diversification from looking at the investment rules and expanding the resources and to improve the of logistics' we also engage in reform as the work in the investment also improving governance

true that the system and capacity building that many of the country is interesting even from south to north the right place at the expert makes us the go to partner and let me close by saying we are lined with our shareholders and the common goals of shared prosperity in this environment with the secular challenges and then to the

poorest country but it is becoming more and more important also looking at the balance sheets through the contributions and by innovating our approach with a highly fragile area for refugees so we partner truly a multilateral action with the imf and the un in importantly the private

sector's in the work of improved prosperity. but then every day thank-you. [applause] >> takes to both of you as part of her prepared remarks to the horizon in terms of the economic trajectory can you share your view of that?

>> with those important prophesies to determine the first has to do with the recovery how successful will they be a restoring growth in particular of domestic demand so it is creating rather than diverting? and there is some demand diversion what if there is a symmetry? to say it is an unfinished process the with the choices made with the policy levers and that will affect

countries all around the globe. >> so with the process of adjustments of low oil and commodity prices and the cree were a bit surprised of the lower oil and commodity prices was not as much spending and growth because the gains had been saved and to be utilized in that position. there is more of an adjustment under way with those exporting companies and those that have suffered

a civic currencies adjust and there is a need to make fiscal adjustments they have to presume that the declines for the most part are permanent in this is something causing difficulties to drag on growth but the receding of the super commodity it is revealing if there is a substantial number with the wide range of commodity sectors to pay for lead manufacturing as well.

and then made a carrier's and whether how to reduce to ship the capacity production is certainly we will be contributing to the continued sluggishness in this is the overhang that will be with us for a while. so hideous world with the process continuing and taking that into account

with the spillover so we see the need to be thinking globally of that aggregate demand. >> in the third process is the rebalancing of china. but it is clear china is reforming. when you listen to the chinese government explain what they're doing. and that we should not lose that even with today's growth rate china's economy

this year the growth is the equivalent of adding a country the size of sweden to the economy. >> as some of those policies they were carrying out. and to use those resources well and they need to adjust and to have two parts per girl with household consumption and of the many consumer durables and

chinese households but to be downsizing or right sizing the state enterprises but if china does this in the ideal way to grow the new economy economy, that's rebalancing is consequential. already we see the slowdown of growth to supply -- for the supply chain in asia. in those exporters that have been supplying with sophisticated industry in europe.

with a high price than sophisticated capitalist but already one can see there are leaders to figure out of the chinese household in the radio is in china and japan the last couple weeks already there following them with those consumer goods. and those that would one of modern durable-goods. but even if china can avoid difficulties that would be consequential.

every have expressed in our discussions the need to deal with the debt with lack of profitability with state-owned enterprises and to have the vaguest liberalization. with the governance of public and private in needs to deal with the legacy with the corporate sector but that is the handle well and those are other problems for

china and of those prophecies of transition and in particular of those factors because of of biggest challenges has the political dimension of the process of the economic transition so can you tell me your level of confidence? in the way that can become an engine for global growth.

in to know that the the blood needs to be done in dealing with that political process as well as the experience of other countries with the chinese authority in the year urbanization of the local governments and to have that system in china and to move from that investment is more conscionable and with the

safety net to become the engine of growth. and with the social safety net and is actually better barrasso satisfaction of a household. in with an eye engagement of what needs to be done. as they're willing to learn. but this is just to show from the of policy process

so they can design the path of the adjustment and that is difficult with the excess supply of steel and coal dealing with a human being and then tomorrow working in the house industry. and as for the international community. in order for us to really make a case. >> car will ask both of you about brexit the with the commanding director of the

imf to put out a statement and in terms of the market so i have a two-part question what factors are you watching for with a response to take you off of that measure of confidence? and then at it is seen touse suggest that some measure of transparency so you could argue that the opposite is true. with the reassessment potentially on the u.k. with what they wanted. so first secretary has said

the market reaction seems to have been in rio lot to the coordination in conveyance of the brexit vote and we have learned a lot from his experience in notes those of other financial institutions for then to have a liquidity. embedded domestic liquidity so this time around social

arrangements remained ahead of time and to the create a situation in the present assessment as to whether cities whether these adjustments are born out that the fundamentals would be changed in the subjects to keep watching whether the beyond of the assessments of the fundamentals in the

stock market goes down with the wealthy fax so those three had to see who is positioned with the market moves in the many banks were careful in the u.k. was very careful to major there were not exposed so those that are affected by so there are macro fax.

so as far as where rigo from here, our concern is that it added 30 to the market. it is retracted period of uncertainty. inez of the negroes away immediately. of course, our process from your with the discussions between the u.k. authority in the european authorities that the point is that the political discussions that the uncertainty continues to

have the adverse effect to have a timetable in mind and that is the point he made to make preparations and actions will take time if and when it fits is trigger there is a mandate. we'll understand risk appeared of uncertainty. with the decision making to take that into account with the unnecessary uncertainty. spirit the most important is look at the client's at this

element will really affect but the first as you can see over the weekend, as a flight to safety with the capital flow. to affect that policymaker with the flight to quality with the capital flow while dealing with everyday inflation. in the weaker global growth is difficult. so that is the cyclical trend that i mentioned

earlier so those said are relying on those natural resources so all in all this procreate an environment that is much more challenging with the policy that gives a very strong message for us to have our annual meeting would be a demand for a deeper understanding in then to rely on their own domestic revenue trading partner that will be the biggest message.

and then they will look closely at the formation. >> part of the brexit seems to be the political calculus the institutions have to undertake and they think of what they are disturbing the calculus had always been to convince them to undertake those necessary reforms and now they have a restless working class populist and is not satisfied by economic success so you're curious as to amount so does that change throughout the bulk of your organizations? >> in if you are talking

about the policy after the trade policy or even like the labor policy it will not be easy for all of the country's and it is becoming much more challenging as it is systematically promoting as one way to exit the though we see this in southeast asia. >> what about the donor countries? >> in the governor in this case. >> and the you cages had an insurgency the countries that are roast economically successful of the development model has the insurgency.

>> but it is the shareholder representing to see that they are informed so maybe not only the of take but the shareholders with their own credibility that are asking or pressing a this type of value. and is the most challenging and if we are modest reflecting as we are it would be much stronger for us but of course, that is a very important and then

challenging at the same time but we are engaging to use the tools of financing and when they engage with them of the platform that is based on evidence. . .