economic growth that you would pause in terms of this 2014 0% interest rate policy? >> we always keep looking at it. the nalgsz suggests thatted other benefit of low interest rates through a whole range of asset prices, through increased skulgs and investment spending and so on outweighs recent estimates of the those commodity prices in terms of growth. again, the thing we see sharp movement has more to do so with international situation than with u.s. monetary policy. obviously, it is a negative and something we want to keep monitoring. >> thank you, mr. chairman. >> chairman, bernanke, i would like to thank you for your testimony today. there is a vote going on, which

requires my attention. i'll turn over the gavel to senator schumer for your few last questions. >> i'd like to recognize senator schumer to ask five minutes of questions. thank you, mr. chairman. first question is about the highway bill on the floor. it's -- it will create, akoording to its sponsors, create or save 2 million jobs, has broad bipartisan support, apta, the public transportation association estimates for every billion dollars the federal government -- federal investments in highways creating 36,000 jobs. what impact would passing a long-term transportation re-authorization legislation have on the pace of economic growth? >> i don't know enough about the details of that bill to give you any kind of estimate. i would like to make one observation, which is the jobs part is important.

that's part of helping the recovery. but i think when you think about long-term infrastructure investments, you want to think about whether these are good investments in terms was returns. president eisenhower's investment in the interstate system produced tremendous dividends in terms of reduced transportation costs and integration of our economy. so i would urge you and i know you're doing this as you approve projects you take seriously you want to do ones that are the most productive. >> that goes to the quality of the project. at noint in time that kind of stimulus in a sense would serve the economy well and would be needed. >> well, there are different ways to provide -- >> assume it would be spent decently well. >> there are different ways to provide stimulus, infrastructure, if it's well designed and has a good return, is often a good approach. you understand i don't want to

endorse a specific bill. >> i didn't ask you that, because you made the caveat it may not have good projects. i'm making the point when you said the economy is moving forward but at apace, not having -- taking away infrastructure money might hurt the economy, adding unfra structure money would help the well as possibly, is that a fair recapitulation. although there are various alternatives. >> say no more. but this is a yes or no situation for us now. money market funds. we all remember the dark days of the fall of 2008. the panic that ensued when a large money market broke the buck. they instituted some reforms in 2010 to address the problems that led to the run in 2008.

however, chairman shapiro have made it clear they believe more should be done, so there are recent reports they have discussed a few options in the newspaper, including a requirement that would lock up a portion of investors' money and proposal to require funds to abandon the stable $1 a share net asset value. the proposals have the potentially to change the nature of the product. some would say it would drive it out of existence. we wouldn't have money market funds. obviously, they play an important role in short-term financing of many different types of businesses. one of the risks to tell us economy is the financial srnlgs if we alter the nature of the money market funds, what do you think of the two different proposals made to strengthen them? i've heard if investors have to keep 3% or a certain percentage aside and can't pull it out right away that it's not worst an investment to them anymore. it's not worth investing in a money market fund to them

anymore. >> so first as you pointed out the s.e.c. has already done structurive things in terms of improve liquidity requirements. i think the federal reserve in general and i personally would have to agree there are still some risks in the money market mutual funds. in particular, they still could be subject to runs, and one of the implications of dodd frank is that some of the tools that we used in in 2008 to arrest the fund -- the run on the funds are no longer available. as you know, the treasury can no longer provide the ad hoc insurance. it provided the fed's ability to lend to money market mutual funds is greatly restricted because of the fact we had to take a haircut on assets and that doesn't work with their economics. we support the fcc's attempts to

look at althouernative strategi. one would be to go away from the net asset additi-- fixed net as approach. i think the industry will reject that pretty categorically. what else could be done? one approach would be essentially to create more capital. they have limited capital at it this point, and there might be ways to build up the capital base. so that's one possible approach, and then either complementing that as a separate approach would be something that involved not allowing the draw out 100% immediately. if you think about that, what that really does is that it makes it unattractive to be the first person to withdraw your money, and therefore, it reduces the risk of runs considerably.

it also has an investor protection benefit, which is if you're a, quote, slow investor and not monitoring the situation moment by moment so you're the last guy to take your money out, you're still protected because there's this 3% or whatever -- >> i've heard from some investors and from some funds that given the low margin that money market funds pay it would just end of business more or less, or certainly i've heard from investigators they wouldn't put money in if they had to keep 3% in there. would that worry you. ? >> interest rates are so their attractiveness is less. i don't know. i think you have to have some kind of discussion here. part of the reason that investors invest in money market mutual funds is because they think they're absolutely 100% safe and there's no way to lose money. >> we learned that the hard way. >> if that's not true, we have

to maybe sure investors are away and we take actions necessary to protect the investment. >> you think money market funds play a useful role in the economy and you should keep them going? >> generally speaking they are do, and they're a useful source of short-run money. please don't overread this, but europe doesn't have any and they have a financial system. the different ways of structuring. >> they're in great shape. >> nare in great shape, yes. there are many ways to construct your financial system. i envision they'll be part of the future of the u.s. financial system. >> thank you, mr. chairman. i >> there are no more questions. thank you, mr. chairman. on behalf of the chairman unless i'm instructed otherwise, i will adjourn the hearing. >> thank you.

in an economic fuse today from the labor department, employers added 227,000 jobs last month. but the unemployment rate remained unchanged at 8.3% because of increasing numbers of workers entering the labor force. an update now from capitol hill. the senate yesterday rejected a measure that would have required the government to approve the keystone xl oil pipeline, but senate republicans say they plan to work with gop counterparts in the house to get the pipeline legislation approved. they're seeking to include it in the final version of the highway

bill pd currently under consideration in the house. this weekend there are two ways to watch the tucson festival of books on books tv. live on cnn span 2 and live on c cspans.org. at 3:00 panels on forensic science, politics at 4:30 and mexico's drug wars at 6:00. sunday panels continue at 1:00 eastern starting with the great environment, the great depression, the american west, and at 5:30 studying the brain. diana is on bernie madoff at 7:00. throughout the weekend look for coverage streaming live on book tv.o tv.org. the tucson festival of books, live this weekend on c-span2 and booktv.org.

>> fire j. edgar hoover? i don't think the president could have gotten away with it. >> time weiner details the fbi's 100-year hidden history and j. edgar hoover against spies. >> he stands alone. he's like the washington monument. he stands alone like a statue encased in grime as one of the most policy men who everybodied in washington in the 20 the century. 11 presidents and 48 years.

xwigest vulnerable facing the u.s. is energy dependence. from cpac, this is about 40 minutes. >> the honor able davis, u.s. secretary of the navy. ray mav vis is the 75 us u.s. second of the navy. he leads therine corps is and responsible for an annual budget of $150 bill and almost 900,000 persons. you have copied of his curriculum vitae, his biography, in your packaging allow me simply to make a fur regards about this background. prior to joining the administration of president barack obama, mr. maviss served in a variety of top posts in government and the private sector mplt if in 1987 he was elected as the younger governor

of mississippi although the age of 39. in more than 14u7b hundred years at the time of his election and previously at state auditor, 1984 to 198 of the 8 and was instrumental in prooting out corruption funds in county government 25 counties. he was also pointed ambassador for the kingdom of saudi arabia for the clinton administration in 1984. let me end the introduction of s morning by suggesting he served two years as a service war father officer on cruiser little rock and was offered a full bright scholarship and held a woodrow wilson fellowship. ladies and gentlemen, join me in welcoming your podium, the honorable ray maviss.

>> thank you so much for that wonderful introduction. i appreciate the hospitality here in ottawa. you're far more hospitable to me than your senators were last night to the capitals. although the capitals have evidently -- i don't know how many of you sawed game or went to the game. but they perfected the puck off the face into the net. it's really hard to plan that play. i'm very honored to be here with you. like to speak for a few minutes and take whatever questions you have.

the united states and canada, allies, friends, neighbors, our trade and military partnerships are strong and enduring as our border is long. the connection between our two countries is far more than geographical. it encompasses our share of principles, values and security. our formal defense ties were established in a pretty informal setting. august 18th, 1940. 60 miles or so south of here when prime minister mckenzie king and president roosevelt sat in roosevelt's car in new york and agreed in principle to what became known as the ogdensburg agreement. it was a simple, five-sentence document. it established a permanent joint bordered fence, focused on the defense of the north half of the

western hemisphere. it was so informal that the agreement sdz the first meekt would happen and i kwoets shortly. i don't think government has gotten much more precise since then. they took shortly to heart, because the first meeting of the board was the following monday here in ottawa since then our countries and militaries have shared a lot of things from fighting side by side on the front mandy to the battles of afghanistan where there are no front lines. our successful operations together in places like libya emerge from fully developed training exercises should at the recently completed bold alligator, the largest amphibious exercise in the past

decade that took place off our southern coast. canadian leadership is readily apparently. in one oe frontiers of the globe, the arctic. it's a front dpeer we share and a frontier where the maritime component is becoming increa increasingly important. i group up in the american south and was governor of mississippi, but last spring i went to iseks in the arctic. you couldn't find a much more different place than mississippi to be, but you also couldn't find a more important place and one becoming more and more important as time passes. today we have to rely on our shared history and shared values to might the new things that we face. some people separate the challenges that we face as

economic and military. at the bottom the challenge we face is the broad challenge of making the globe we inherit more security. for the united states, after a decade of two ground wars and a changing and dynamic and security environment, it was time for us to take a significant review ofur national strategy and defense priorities. at the drekdz of the president of the united states, the secretary of defense, the three service secretaries and the joint chiefs developed a new strategy that meets the sps th a military that is somewhat smaller but more fleck answer any call and can pry our

natural leernship with the fullest range of options possible. president obama, for the first time in the pest memory of the pentagon, was ernt personally involved in the formulation of this new strategy. he knew in reshaping our defense priorities, we can't and shouldn't choose between miss cal responsibility and a strong national defense. of we have to have both. as he sp others have sdz economic security is national security. we have faced some pretty tough budgetary targets pass bid our con. one of the things i want to emphasize is that the defense budget unveiled by the president ten days ago was driven by strategy and not by dollars. we navigated by some key principles for this defense

straj. one was to maintain the world's finest military and avoid at all costing hollow out that force. a smaller military that is capable of a full spectrum of missions is superior to a larger force ill equipped because resources are not made available for things like training or maintenance or modernization. another key principle was to preserve the quality of the all-volunteer force and to keep pace with them who have borne the battle over the last decade. our fleets of ships, aircrafts, vehicles and submarines don't sail, fly, drive or dive without the men and women who wear the uniform of the united states. our new strategy has an

understandable focus on the western pacific and the arabian gulf. but it does maintain our worldwide partnerships and our global presence using more innovative, low-cost, light footprint engagements. america and its military will remain globally engaged and forward deployed. for my department, the department of the navy, this new strategy requires a navy and marine corps team that is built and ready for any eventuality on land, in the ocean, or on the vast cyberseas. we see maritime in growing demand, things from deterring aggression from state and

non-state actors, projecting power, and providing disaster relief and humanitarian assistance whenever and wherever they are needed. my favorite navy recruiting poster says, sometimes we follow the storm to the shore. sometimes we are the storm. we do it with the same people. we do it with the same platforms, and we do it without taking up an inch of anybody else's sovereign soul. while the security environment that we all face is complex and changing, our shared interests are simple and enduring, interest of security, prosperity, respect for universal values and international order.

those common goals form the basis of our grand strategy reaching back to roosevelt and king, and if anything, are even more vital today in a globally s and future threats may and probably will take a lot of different shapes. we can't prepare simultaneously and fully for every possible contingency. so we need to focus on flexibility, on agility, on creating a force that is ready for the most likely threats but ones that can adapt effectively to the unpredictable. our navy has experienced that to a remarkable degree in just the past year. early last may, a group of sailors as part of a joint force finally brought osama bin laden

to justice. and just last month, we rescued two hostages from pirates in somalia. at the same time we were doing those two things, we had 20,000 marines in combat in afghanistan and 4,000 sailors on the ground in afghanistan doing a variety of missions. one of my first trips to afghanistan, i went to poteka province, which is down near the pakistan border. very mountainous, very rural province, and i met a reconstruction team which was commanded by an american submariner. his top two enlisted were submarine chiefs. now, i bet you that when he joined the navy and opted for submarines, he did not expect to find himself in the mountains of

afghanistan. but he did a superb job, as did that entire team. and that's the flexibility, that's the agility, that's the ability to take on any sort of job or task or mission and do it well. last spring, on the first day of the libyan operations, two of our submarines and one service ship shot 122 tomahawk missiles into libya. that same day, we had five ships off the horn of africa fighting piracy in another ship circumstance circumnavigating africa. that same day, the air strike group which was on their way to do combat support in afghanistan

learned of the tsunami that hit japan, and in under two hours turned and went to help the people of japan. that strike group used exactly the same techniques, exactly the same things that they were going to use in providing combat air over afghanistan to make sure that the right things got to the right places on the right aircraft going to the right parts of japan to help with humanitarian assistance in the wake of that terrible disaster. that same day, we had ships in the caribbean and the eastern pacific interrupting drugs and other ships in south america and the south pacific doing medical, dental and veterinary work.

when our commanders leave or members of our strike groups or amphibian groups get ready to leave on deployment, one of the things i always tell them is the one uncertainty is a certainty. they will face something they did not anticipate but for which they will be prepared by their training and their ability. our sailors and our marines repeatedly have proven that they can meet anything that comes over the horizon. and canada has been there with us, advancing security, providing first combat support and now training assistance in afghanistan, investing in the future of afghan children and youth, promoting regional diplomacy, operation mobile -- i'm sorry.

i'm from the south. mobile, alabama. mobi mobile. in help the coast of somalia, providing humanitarian assistance in japan, haiti and around the world. your commitment to these operations and so many more underscore a fundamental point. we best meet the issues of today's global security environment by working together. confronting threats of global peace and prosperity should not be the tasks of any one nation. building and sustaining strong security partnerships is an essential and enduring element of our strong security strategy, and it remains a key element of the new security strategy we announced recently. and our two nations have demonstrated from building strong security nations in europe and asia following world

war ii to assisting certain soviet states in the aftermath of the cold war to our work around the globe today that partnerships are actually -- are incredibly vital. nowhere are those partnerships more important than in the global maritime commons, assuring the free passage of our sea lions is critical to the free exchange of goods and ideas. we see those ideas every single day in our military where we operate together, train together and are educated together. partnerships like the one between the united states and canada, o are one way we can maximize our resources and expand our reach in a time of physical constraint. another means is a time of proving our cost-effectiveness and a goal of as a rule