procedural moves to end debate on the bill. i hope to file those by the end of the week. thank you. .. .

[captions copyright national cable satellite corp. 2009] [captioning performed by national captioning institute] >> good afternoon, everyone and a special low to those who are online -- especially hello. >> the scientific community, the business community and the policy world have spent decades studying greenhouse gas pollution and climate change. scientists in the u.s. and around the world have tracked in the last century, and in particular the last three decades, alarming increases in the amount of greenhouse gases in our skies. that increase is deteriorating the natural balance in our atmosphere and changing our

climate. there have and continue to be debates about how and how quickly climate change will happen if we fail to act. but the overwhelming amounts of scientific study show that the threat is real, as does the evidence before our very eyes. polar ice caps crumbling into the oceans, changing migratory patterns of animals and broader ranges for deadly diseases, historic droughts, more powerful storms, and disappearing coastlines. after decades of this mounting evidence, climate change has now become a household issue. parents across the united states and around the world are concerned for their children and grandchildren. governments are investing billions in adaptation strategies. businesses are investing billions in efforts to reduce carbon emissions. -- cut greenhouse gases.

military planners are projecting new hotspots of instability and conflict. they know that if we do not act to reduce greenhouse gases, the planet we leave to the next generation will be a very different place than the one we know today. in 2007, the u.s. supreme court handed down perhaps the most significant decision ever reached in environmental law. the court ruled that the clean air act, the landmark 1970 law aimed at protecting our air, is written to include greenhouse gas pollution. that verdict echoed what many scientists, policymakers, and concerned citizens have said for years -- there are no more excuses for delay. regrettably, there was continued delay. but this administration will not ignore science or the law any longer, nor will we avoid the responsibility we owe to our children and grandchildren. today, i'm proud to announce that epa has finalized its endangerment finding on greenhouse gas pollution, and

is now authorized and obligated to take reasonable efforts to reduce greenhouse pollutants under the clean air act. this long-overdue finding cements 2009's place in history as the year when the united states government began seriously addressing the challenge of greenhouse gas pollution and seizing the opportunity of clean-energy reform. in less than 11 months, we have done more to promote clean energy and prevent climate change than happened in the last eight years. earlier this year, epa established this country's first - and what i believe will be a world-leading - nationwide greenhouse gas emissions reporting system. next month, large emitters in the u.s. will begin working with epa to monitor their emissions. beginning in 2011, large emitters will, for the first time, submit publicly available information that will allow us to meaningfully track

greenhouse gas emissions over time. this reporting will also bring to light opportunities to jump- start private investment in energy efficiency and new technologies and products - saving money, improving bottom lines and growing the economy. and it does all this in a common-sense way - without putting a burden on small businesses or other critical sectors of our economy. through the recovery act and the support of strong clean energy reform legislation, president obama has led the way in cutting greenhouse pollution and reducing our dangerous dependence on foreign oil, which threatens our national security and our economy. today's endangerment finding provides the legal foundation for finalizing the recently proposed clean cars program. that program was developed in collaboration with the american auto industry and other stakeholders, and contains the nation's first ever limits on greenhouse gas emissions from american vehicles.

and starting next spring, large emitting facilities will be required to incorporate the best available methods for controlling greenhouse gas emissions when they plan to construct or expand. -- operations. these are reasonable, common- sense steps that will allow us to do what the clean air act does best - reduce emissions for better health, drive technology innovation for a better economy, and protect the environment for a better future - all without placing an undue burden on the businesses that make up the better part of our economy. today's announcement and these other efforts are designed to complement comprehensive clean energy reform. we look forward to working with congress to get a bill to the president's desk, and to implementing that bill once it has been signed. we know that skeptics have and will continue to try to sow doubts about the science. it's no wonder that many people

are confused. but raising doubts, even in the face of overwhelming evidence, is a tactic that has been used by defenders of the status quo for years. those tactics have only served to delay and distract from the real work ahead, namely, growing our clean energy economy and freeing ourselves from foreign oil that endangers our security and our economy. it's time that we let the science speak for itself. in making this finding, we relied on decades of sound, peer-reviewed, extensively evaluated scientific data. that data came from around the world and from our own u.s. scientists. today's action is a step towards enduring, pragmatic solutions to the enormous challenge of climate change. it is a step towards innovation, investment and implementation of technologies that reduce harmful emissions.

and it's a step towards green jobs, reduced dependence on foreign oil, and a better future for our children. it also means that we arrive at the climate talks in copenhagen with a clear demonstration of our commitment to facing this global challenge. we hope that today's announcement serves as another incentive for far-reaching accords in our meetings this week. in taking action now and recognizing this threat, we join the hundreds of other countries, thousands of leading scientists, tens of thousands of innovators, entrepreneurs and private companies, millions of americans and billions of global citizens who have seen the overwhelming evidence and called for action on climate change. thank you. [applause]

>> we will open it up for questions. [inaudible] >> [inaudible] >> you said you reduce the best available technology next year. if you could clarify. it is my understanding under the tailoring ruled that the epa does not exempt state action and many states and100 to 250 ton limits under them psd and tit le v provisions. does that mean that those states will have to regulate at that threshold? >> your question is a legal one.

what i will say about state action is that state action has been critical to getting us where we are so far. we worked closely with states and it states are a key player as the legislative discussion continues. my point earlier this that -- making sure that the american people know that we at the epa believe there are ways to move forward on regulation. primarily what we have done is in the regulatory. giving assurances to small and medium businesses that they would not be regulated by giving a clear signal to larger regulators. the regulators cabinet -- regulations can come under the clean air act. >> pending the investigation of that pact e-mails. why didn't you delay at and on what scientific basis? >> there is nothing in the hat

emails that undermines the science upon which this decision is based -- in notthere is nothg in the hacked emails. there are questions about the underlying signs that are being raised again. >> can you give us a couple of bullet point to bolster your argument? >> the thing to talk about is the amount of signs out there. united states scientists, many organizations even represented in this room have been studying at this data for years. it is important to understand, too contextualize those e-mails a bit. that is one thread, looking at one data set over many, many data sets, all of which reached a consensus that climate change is happening, that is caused by man-made emissions, and then we

look ahead and look at the droughts, the flooding, the changes in diseases, changes in migratory habits, changes in water cycles and climate that we now find affecting human health. >> you said next spring large and meeting facilities will be required -- >> will you propose a new epa rule? >> large facilities those that emit over 325,000 tons -- 25,000 tons emissions per year -- one sure no do have the missions and is in danger in human welfare, you will need to use the best technology's out that. it was smart of people to realize that technology evolves over time.

my belief is that anything done in the future, under the clean air act, and we have not proposed what those technologies will look like, has to be done with an eye towards what is happening in congress but also of the development of technology. we cannot implement technology that does not yet exist. the work that has to be done is that epa would have to put out technical guidance to tell a facility what that would mean and then work with states. >> [inaudible] >> do you still believe it that legislative solution is better than this? >> i absolutely do. i stand firm and i believe that legislation is the best way to move our economy ford on clean energy and to address climate pollution -- and move our economy forward. it is comprehensive. it can move us in transition as,

as the president has said, and it can give business certainty that we are on the road to clean energy. the investments they want to made, either in retrofits, or in technology or employment will be profitable ones. i do not believe this is in a either/or proposition. i see this as they inboth0 -- as a both/and. the clean car rolls we propose is an excellent example of that. >> several environmental groups have petitioned the epa about national air quality standards for carbon dioxide. gases. what is it -- what is your position on that? >> nothing in today's action requires any regulatory action.

we will certainly review the petition and respond appropriately. i have never believed that setting a national ambiant air quality standard for greenhouse gases was advisable. we need to look at the petition. i don't know if there's anything in there that would change my view, but we will look at it. >> [inaudible] >> today's action is the basis for the cars roll. you have to find in danger men and ordered to be compelled. it is not a choice to act under the clean air act. further actions would be warranted when we talk about a threat to health and welfare. epa continues its work on the regulatory front. i want to emphasize -- i believe it is night either/or. -- it is not either/or.

i stand firm and i believe that we need legislation. that being said, i also believe quite firmly that there are things the clean air act allows us to do -- clean cars, and missions reporting -- that we have already done, that paved the way for this country to move smartly, sensibly, common sense towards a clean energy future. >> is york -- is it your intent to push members of congress who are right now on the fence to get onto a side -- your side and to work for a climate and energy bill? >> no. my intention is to follow up on a 3-year-old requirement from the supreme court that epa addressed climate pollution, that it addressed clean -- greenhouse gases. the clean air act allows us to do so.

this draft endangerment finding has been worked on for years, predating the obama administration. the other part of my attention -- intention is to release the science that so many epa employees worked on it so diligently and i think so effectively, to reduce the questions in many people's minds to answer about public health and welfare. in 2009, the united states government is saying once and for all that we are in the clean energy and climate or arena. with respect to climate pollution, we will act. >> so the stationary sources will have to start reporting next year? >> january 1. >> when we start the fast-track rules, and it will cut their emissions? what is this scheduled? >> i do not have a schedule for additional rules with respect to

the clean air act for stationary sources. we proposed a rule that talks about how we believe the clean air act will apply to stationary sources. >> will you fast track these rules? >> no. we have a plan to continue working. this is certainly not an ending. we will continue to work under the clean air act, because this is what we must legally do. we are compelled to addressed greenhouse grass pollution -- gas pollution. ." >> you say you want to complement what congress is doing, but the senate leadership has indicated they do not plan to get around to a vote until early spring, which is late march, early april. is it possible epa could issue these rules before they get around to voting on climate change? >> i certainly have heard the leadership in the senate say they do intend to move to

legislation. we see promising engagement by a number of senators. for example, when they turn to those rules, they will have the benefit of an emissions reporting inventory that is setting rules the epa has already adopted, because we did that under different authority. no, this is not an either/or. i have not laid out a time line. i respect and will make sure that we are watching and working with congress in their legislative efforts. so they are independent in timeline. we do not have a timeline that looks at the senate, but i certainly hope to see them move. >> [inaudible] -- a follow-up question? >> we need the best available

technology. >> [inaudible] >> the vast body of scientific evidence not only remains unassailable. it -- it has grown stronger. it points to the conclusion that greenhouse gases from human activity are increasing at unprecedented rates and are affecting our environment and threatening our health. the findings i make today are firmly grounded and signs that comes from independent lines of evidence, including united states scientists. all that work has been publicly commented on to varying degrees. if you need one other point of certainty is that critics of have an opposing climate change

in scientists to disagree, whether they oppose policy or not, commented during a public comment period. epa received almost 4000,00-- 400,000 comments. all that material is in the record. all that has been responded to in making this finding. i'm certain the science has been certification -- thoroughly evaluated. the underlying science in those e-mails and the vast body that is not addressed in any one of those e-mails remains the same. you have to continually look at the signed. -- the science. the cru underlying data up -- there is lots of data from them, and there is a data set that is now the subject of some of these e-mails. but then there are several other data sets that have been evaluated by hundreds of scientists.

all that work is in thousands of different articles that have been peer-reviewed. you're talking about one tiny thread out of thousands of threats of evidence and data and scientists -- scientific information that leads me to stand you're confident that there was no reason to delay. we can move forward with work we planned. >> we will try one last question from the telephone. >> your question comes from off "the wall street journal" -- >> i have a two-part question. i know you say you're not putting out a time line for the rules on emissions, but could you just give an idea of when you think the earliest would be that the epa could propose rules covering co2 from existing power plants? could you clarify why you are issuing this world now as opposed to putting it concurrent

with the vehicle world? i am told this is the first time you have done a set -- on them separately. >> i have no additional information on timelines. the second question is, yes, this is different. this was the subject. this finding was the subject of the u.s. supreme court case. earlier this year, epa released the endangerment finding that was put together under the bush administration, sent to the white house and never opened. in my mind, in order to show the american people is on the job, it was important for our credibility and for the trust of the american people to know that we can put this information out for public comment and act on it in an expeditious fashion. we will keep the ball moving. it is my hope that congress will keep pace on the ball. >> thank you very much,

everyone. >> thank you, everybody. >> president obama is attending a u.n. summit on climate change in denmark on december 18. bargaining on greenhouse gas reductions is expected then.

>> distinguished delegates, ladies and gentlemen, honored guests, a warm welcome to copenhagen and to the opening of the united nations climate change conference 2009. [applause] today, we are honored to have with us his excellency mr. prime minister rasmussen, prime minister of the kingdom of denmark, his excellency, maciej

nowicki, president of the conference of the parties of its 14th session, or excellency, ms. connie hedegaard, minister for the united nations climate change conference in copenhagen, her excellency, ms. mayor bjerregard, of the city of copenhagen, and dr. rajendra kumar pachauri , chair of the intergovernmental climate change panel appeared distinguished delegates, ladies and gentlemen, this climate change conference will be followed closely by people from all over the world. many, including children, have

already raised their voices on the host country's internet platform. to begin the welcoming ceremony, we would like to show you a short film about this. following the showing of this film, we will have a selection at from that danish berle's choir. -- the danish girl's choir. [chattering] [laughing] >> and you still doubt the impact of human influence over this predict a quote catastrophe. >> -- in admitting carbon dioxide are imposing a cost on

this generation and the next generation. >> the number of environmental refugees to more than to under 50 million people. the shortage of resources and the high number of refugees will increase tensions all over the world. [rain pattering on roof] [squeaking]

♪ [wind howling] >> [screams]

>> [speaking foreign language] >> [speaking foreign language] >> all prognosis showed that the continent of africa quote will be severely to hit if we do not act now. >> let us be clear, we are running out of time. >> we will have hundreds of millions of climate refugees. >> i am only a child. in my life, i'd have dreamt of seeing the great herds of wild animals, the jungles and rain forest full of butterflies and birds, but now i wonder if they will ever exist for my children tuesday. in my anger, i am not worried. in my fear, i am not afraid of telling the world how i feel. ♪

>> please help the world. >> please help save the world. ♪

[harp joins] ♪ >> [vocalizing] ♪ ♪

>> don't tread lightly on my home tread lightly... ♪ so we will try ♪

ooh >> [singing in danish] >> [vocalizing]

>> singing in danish] ♪ >> [singing in foreign language] ♪

♪ >> [vocalizing] ♪ ooh

ooh >> [singing in danish] ♪ >> [singing in danish] ♪

♪ [applause]

>> ladies and gentlemen, i am sure we would all like to think again, our hosts for providing us with this film and the selection by the danish girls' choir. [applause]

>> distinguished delegates, ladies and gentlemen, i would now like to invite our distinguished guests and the executive secretary of the united nations climate change secretariat's to take their seats at the podium.

[no audio]

>> distinguished delegates, ladies and gentlemen, it is my honor to welcome to the podium his excellency mr. prime minister rasmussen, of the kingdom of denmark, to address our meeting. excellency, you have the floor. [applause]

>> ladies and gentlemen, excellencies, and aged people of the world, welcome -- engaged people of the world, welcome to copenhagen, welcome to two weeks where we are to perform what is most difficult in politics -- to make it difficult but necessary decisions now in order to address mounting problems of the future. global warming knows no borders. it does not discriminate. it affects us all. and we are here today because we are all committed to taking action. that is our common point of departure. the magnitude of challenge before us is to translate this political will into a strong,, approach.

to forge an agreement that will provide for effective, global solutions he -- and the strong common approach climate change is higher on the agenda than ever. the grim projections from science grow more alarming each day. already, many face the dire consequences of global warming. it is our mission to come to the aid of those who already suffer and to deliver a long-term solution to the mounting problem of global warming. this is our task. this is why we need a strong and ambitious climate change agreement here in copenhagen. this sheer magnitude of our task is matched only by our determination. for more than a year, we have been conducting intensive consultation it in preparation for this conference.

in that context, i have had the pleasure of engaging with leaders from all around the world, your leaders. without exception, there have an -- they have been supporting an ambitious agreement to halt global warming. i am painfully aware that we have different perspectives on the framing and precise content of such an agreement. and i am sure that no one in this hall underestimates the difficulty we are facing and finding a common approach in the coming two weeks. but the political resolve to forge a global agreement is manifest, and differences can be over come. if the political will is present, and i believe it is. as we move ahead, over the next

phase, which will rely critically on you to help develop an agreement that is both acceptable to all parties and at the same time, strong and ambitious. an agreement that is just and equitable. an agreement that is effective and operational. to achieve that, we shall leave all the technical skills and diplomatic -- we shall need all the technical skills and diplomatic and entrepreneurship we can find. the world relies on you to successfully conclude the country-driven process to launch in bali. it relies on us -- and achieving that success in an exclusive and transparent manner. as i speak to you this morning, 110 heads of state and government have announced they will be coming to copenhagen next week.

in conclusion of this conference. their presence reflects an unprecedented mobilization of political determination to combat climate change. it represents a huge opportunity, an opportunity to the world cannot afford to miss. your leaders do not come to copenhagen just to talk. this you need to act birkhead -- -- the come to act. they will not agree to just anything but to agree to an effective deal based on our fundamental principles, our common resolve, and on the political, social and economic reality in our countries throughout the world. the agreement world leaders should adopt next friday here in copenhagen it must be founded on the legal principles inscribed in the framework convention and

it must respond to all aspects of the mandates agreed upon in bali two years ago. it must seek to capture progress achieved with in the negotiations, both under the convention and under the kyoto protocol, providing a powerful response. it must launch an immediate action. the deal that we would like leaders to sign off on would be all windy that affects all aspects -- would be one that affects all aspects of society just as climate change does. therefore, the involvement of civil society is of paramount importance. just like a negotiators cannot do this alone, nor can politicians, they also predict the ultimate responsibility rests with the citizens of the

world who will ultimately bear the consequences if we fail? to act. as decision makers, it is our obligation to provide the framework for change. and we must unlock the potential for low carbon prosperity. but in order to realize the full potential, our citizens must eventually make it happen. throughout 2009, and some of the most important civil society stakeholders have gathered here in copenhagen at conferences, symposia, round tables and manifestations -- different branches of civil society have voiced their concerns and made their recommendations scientists have assessed the latest? t facts.

business leaders, local politicians, youth and many others -- the political aspects. we owe them our gratitude for their help in preparing the groundwork for our effort and for having contributed to our negotiations. we need to listen to their advice because we are their representatives. the climate agenda has created global communities across all barriers. and we need this global momentum. and we need to build on it. let us not focus on what divides us, but let us keep focused on what brings us together. while you are here in copenhagen, in search of new ways to pamper climate change, i hope you will find inspiration or around you -- to hamper

climate change. we can change and we have to change. we have tried to make a new and different conference in copenhagen. we have no bottled water. 2/3 of all food is organic. we have tried as hard as possible to limit the carbon footprint of the conference. if you have time, ladies and gentlemen, please gather some inspiration outside the conference center. in copenhagen, but you will find a large variety of green technology events. looking in your conference kitts, you were disappointed or perhaps relieved not to find a figuring out the little mermaid or other conference symbols. we have chosen to cut back on the guests and instead, invest

and 11 scholarships for students around the world who are attending a two-year program in denmark. [applause] the 11 climate scholars will return to their home countries with knowledge and results that could provide a better future, and so should we. leaders, grassroots and citizens or around the world, have sent a strong message of hope for our planet. 4 million people have spoken their mind on the youtube cop15 channel. without hope for a better world, there is no basis for agreement in copenhagen. quote is the starting point. -- hope is the starting point. the world is depositing hope we

do for a short while in the history of mankind. for the next two weeks, copenhagen will be hope-hagen. we must be able to deliver back to the world what was granted to us today -- hope for a better future. i call on all of you to make our contributions, to be constructive, flexible and realistic. to be vigilant in your efforts to reach agreements and to show regard to the constraints of other negotiating partners. you must do all this and still be ambitious, courageous, and visionary. a deal is within the reach to work together -- we can accomplish what must be accomplished. once again, welcome to copenhagen and thank you very much. [applause]

>> thank you prime minister rasmussen, for your statement. distinguished delegates, ladies and gentlemen, it is with pleasure that i invite her excellency ms. mayor bjerregard, of the city of copenhagen, to address our meeting. madame they are, you have the floor. -- madam mayor, you have the floor. >> ladies and gentlemen, welcome to copenhagen. i look very much forward to hosting you tonight and especially to show you how this

city hall square will turn copenhagen into hoep;e-pe-hagen. men did you have traveled far. many of you -- many of you have traveled far and have a long way to go. cities all over the world are ready to help you put all our hopes and goals and action. next week, mayors from more than 70 of the biggest and most important cities will come to copenhagen for the climate summit for mayors to stand side-by-side with you and the fight against climate change. today, cities are responsible for more than 75% of global co2

emission. we also represent more than 50% of the world's population in some of the world's largest economies. so, we may be part of the problem, but we are definitely also part of the solution. and cities are ready to act. together with heads of state, we are ready to assume the mantle of leadership in reaching the same goal -- a greater planet. -- "if you want to go first, go along. if you want to go far, go together. we need to go very far, very fast." in copenhagen, we are ready to do so, and mayors from the world's biggest cities are ready

to do so. i do hope you'll join us. in copenhagen, we have been working hard to prepare for your a rifle. you are, indeed, some of our most important guests this year. as a former commissioner, i negotiated for the ec in kyoto. i know what is expected from you. i know you will face days of hard work and nights without sleep. on the optimistic side, i also know how solutions can be reached at the very last moment. so i am absolutely sure you will do a great job in copenhagen. i also hope you will be able to see some of the work we have been doing in copenhagen. we have a vision, a goal in fact, to be the first car been-

neutral capital -- carbon- neutral capital and the world by 2025. this is a great challenge. we had 50 specific initiatives to achieve the cities targets of a 20% reduction in co2 emissions in the period 2005- 2015. but copenhagen it is on its way. 97% of all households in copenhagen have district heating. nearly 50% of the citizens of copenhagen ride their bikes every day. in copenhagen, the harbor is so clean that you can even swim in it, although it might be too cold just now. i also hope he will have an opportunity to glimpse how copenhagen will become a city filled with climate exhibitions

and activities to engage the citizens and our many guests. during the u.n. climate change conference, the city hall square in copenhagen will be transformed into a city of hope. that is why we call hopen-hagen live. every day hopen-hagen will be filled with experience is an ex -- exhibitions. a huge, interactive globe will light up the december dark as, reflecting an ever-changing shades, the works -- the world engagement with the climate. on the stage, musicians and speakers will collect the citizens together around the messages which hopefully will resonate among the negotiators here in the bela center. i very much look forward to hosting you tonight for the

reception at the city hall and on the city hall square. so i bid you a very warm welcome and sincerely hope you will leave our city with a good impression and many good experiences. but most of all, i hope that when you leave this conference hall, you will leave the planet safer and cleaner for the future. so, please help us to turn copenhagen it into hopen-hagen. please seal the deal. [applause] . .

[applause] >> your excellency, the prime minister of denmark, executive secretary mr de boer, madame and excellencies, colleagues, distinguished ladies and gentleman. it is a great privilege for me to address this august gathering at the beginning of a historically important meeting. betweeaction which is required

urgently on the basis of the scientific assessment of climate change presented in the report of the picc. -- ipcc. this was completed in 2007 and had a profound impact on deliberations cents. after that, the global community has had adequate opportunity to further study and debate and discuss the findings and determine actions that are required to be taken globally. this conference must now lead to actions for implementation. by all parties taking into account responsibilities. one of the most significant findings was conveyed by two simple but profound statements.

warming of the climate system is unequivocal. as is now evident of observations of increases in air and ocean temperatures, widespread melting of snow and ice, and rising global sea level. the other quotation which i mentioned, most of the insert -- observed increase in temperature is likely due to the observed increase in [unintelligible] average global temperature increased by 7.4 degrees celsius while see rise -- sea rise amounted to 17 celcentimeters. every storm surge and major a

swelling of the sea represents a serious danger to life and property. the global community and thus has a moral and material responsibility to do all it can to limit the growing impact of climate change on these and other vulnerable societies across the globe. we need to give practical expression to the provisions of article two which defines the ultimate objective of the convention as the achievement of stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous interference with the climate system. on the basis of the report we know that climate change in the absence of litigation policies would lead to possible disappearance of sea ice by the latter part of the 21st century, increase in frequency of heavy

precipitation and in tropical cyclone intensity. also in a decrease in water resources. possible elimination of the greenland ice sheet and a sea level rise of 7 meters. without mitigation, future temperatures would compare with levels estimated years ago when paleoclimate information suggests four to 7 meters rise. if increases in global average warning exceeded 1.5 to 2.5 degree celsius.

climate change is expected to exacerbate stresses on water resources from population growth and economic and land use change including urbanization. the available research suggests a significant increase in heavy rainfall events in many regions, including some in which the main rainfall is projected to decrease. the flood risk poses challenges to society physically -- physical infrastructure and water polo -- quality. it is likely the population as a fraction could exceed 2 billion people. they live in areas where river flood potential could increase by 20. -- the 2088 and'0's.

yields could be reduced by up to 50%. another area of facing impact are the oceans. the osha has become more acidic with an average decrease of ph of .1 units. the consequences should bcould e serious. options that can be implemented in several sectors at low cost or with high benefit cost ratio is. also higher benefit costs for issue ratios can be impletmente.

b based on this reality -- based on this reality, measures. -- must be put in place. this conference must lead to urgent action. as ththis must involve action ie developed countries because the parties must take the lead in combating climate change and the adverse effects thereof. mitigation of emissions is essential because the organization to assess its costs to be modest. to limit average temperature increase at two degrees, to 2.4 degresses, this would not exceed 3% of a gdp.

mitigation carries many benefits such as lower levels of air pollution and the seceded health benefits. larger employment, and it's able agriculture production as well as greater efforts to carry. it is gratifying that the leaders have recognized the [unintelligible] in limiting the temperature. we have specified that if temperature increases to be limited between two degrees and 2.4 degrees celsius, a global emissions must be no later than 2015. that is six years from now. some may question the goal of 2 degrees celsius because this would lead to sea level rise on account of total expansion alone of 0.4 to 1.4 meters. this increase added to melting

could submerge several small island states and bangladesh. there is enough experience to show that there are a wide variety of policies and instruments available to governments to create the incentives for mitigation action. there is no better real-life laboratory to learn from than our host country, denmark. through a series of actions and enlightened policies, denmark has brought about a revolution in wind energy technology and its deployment. modern turbines are now able to produce almost 100 times as much electricity as the first wind turbines that were manufactured in 1980. based on the experience of denmark and other countries, it would be correct to assume the a move to renewable energy would prove that employment generation would take place with economic growth. if you look at denmark, global

sales have grown [unintelligible] the world has benefited from technology that is economically attractive and state of the art. while denmark has generated jobs in this sector. the world would benefit from early action and delay would lead to costs that become progressively higher. substantial evidence provided that science provides us with [unintelligible] that this conference must initiate. some find it inconvenient to accept its inevitability. the recent incident of stealing

the e-mails of scientists at the university of east anglia showed that some would go to the extent of carrying out illegal acts perhaps in an attempt to discourage the organization. the panel has a record of objective assessment stretching over 21 years performed by tens of thousands of dedicated scientists, from all corners of the globe. i am proud to inform this conference the findings of the form are based on measurements made by many independent institutions worldwide that demonstrate significant change on land, the atmosphere, the oceans, and the ice covered areas. the internal consistency for multiple lines of evidence strongly supports the world of the scientific community. including those individuals singled out in these e-mail exchanges. many of home have dead -- dedicated their time and effort to develop these findings.

the assessment process is designed to ensure consideration of all relevant scientific information from established journals with robust peer review processes. the entire report of the ipcc is subjected to extensive and repeated review by experts as well as governments. in -- there were a total of 2500 expert reviewers performing this review process. there is full opportunity for experts in the field to draw attention to any piece of published literature. and its findings that would insure inclusion of a wide range of views. my colleagues and i are conscious of the responsibility we bear and the expectations we

must deal with in providing fair, comprehensive, and objectively produced assessment of climate change. i owe it tribune and gratitude to my predecessors and the tens of thousands of scientists who have the established tradition that insure high standards of intellectual endeavor and impact will conduct in the diligent pursuit of our goals. i find no basis for any exceptions. i also express my deep gratitude to this august body and the secretariat of the un ipcc that they have displayed in accepting our work. we give you our assurance of continuing with the unflinching devotion to our duty and upholding the sacred trust that you have bestowed upon us. thank you very much. [applause]

>> thank you for your statement. distinguished delegates, ladies and gentleman, please join me in welcoming to the podium the executive secretary of the climate change secretariat to address our meeting. you have a floor. -- the floor. [applause] >> my mum was holding my younger

brother and my older sister was holding my younger sister. the wind and rain began stronger and the tide level covered the bank. we did to our legs in the mud so we would not drift away in the tide. when the water level was up to my dad's chest, we decided to climb trees. suddenly, the tree fell because of the strong winds. and then i was separated from my mum and dad. i clung to a tree trunk and floated along with it. the rain was really heavy and it was painful when it hit my back. i drafted the whole night and i was terrified. i could not find my mum, my dad, and younger sister. this is a 6-year-old boy

speaking after a devastating cyclone. a few weeks later, he was reunited with his sister and grandmother through save the children's family tracing program but there was no news from his parents or younger brother. in his words, i miss them, and i always wonder whether they are still alive. it is repetitions of this that the world is here to read. welcome to copenhagen. the clock has ticked down to zero. after two years of negotiation, the time has come to deliver. at this time of the year, many people are busy preparing their christmas cakes. to my mind, the ideal christmas

cake that needs to come out of copenhagen has three layers. the bottom layer consists of an agreement on prompt and limitation of action on mitigation, adaptation, finance, technology, and capacity building. the second is and commitments and action. the third layer or icing consists of a shared vision on climate change and a long-term goal. i hope that to the prime minister will light the candles on this kick next friday. -- cake next friday. i have heard a multiplmultitudef

statements calling for an ambitious agreement in copenhagen and i have heard strong political statements calling for an agreement that offers serious limitation goals and captures the support for developing countries. there is a caribbean saying that goes, build a sturdy wal 1 brigantine -- -- a sturdy wall one rik abrick at a time. copenhagen will be successful if it delivers significant and immediate action that begins the day this conference ends. in the week ahead, the focus needs to be on crafting solid and practical proposals that will unleash prompt action on

mitigation, adaptation, finance, technology, and capacity building. developing countries desperately need time to -- need immediate action. much of the work that has been accomplished can be turned into immediate action. solid action oriented proposals will give real meaning to the political commitments for success in copenhagen that has been building momentum around the globe. such proposals will provide a strong foundation for further efforts. through the cmp, awgkp, the sbi, there are six days to get it done before ministers arrive. there will have two days to have issues for before leaders arrive. this means there are a total of

eight days to prepare a workable package that consists of both immediate and long term components which leaders can endorse on the 18th of december. the time for formal statements is over. the time for restating well- known positions is past. the time has come to reach out to each other. i urge you to build on your achievements, take up the work that has already been done, and turn it into real action. deliver, reach for success, insure that millions of children across the world do not suffer the same fate. thank you. [applause]

what >> than>> distinguished de, ladies and gentlement, this brings us to the end of the welcoming ceremony. join me in welcoming our hosts -- thinking our hosts for their hospitality and for the special guests for their presence here today. [applause] distinguished delegates, ladies and gentleman, you are currently asked -- kindly tasked to remain in your seats. i would like to invite to the podium the president of the

conference of the parties in the 14th session to officially open the conference of the parties at its 15th session and the conference of the parties serving as the meeting of the parties at its fifth session, and to deliver his statement. thank you. [applause] >> it is my great pleasure to declare open the 15th session of

the conference of parties to the united nations framework convention on climate change. [applause] [unintelligible]

[no audio] >> we are having some technical problems. we will bring it letter on our schedule. -- later on on our schedule.

>> we fixed our problem with united nations opening ceremony. we will bring it to you now. >> for adaptation to the climate change, but also for the quick and economic development. it is nothing more than simple human solidarity. the efforts of prevention of climate change generate not only costs, they create also opportunity for all nations to introduce from -- fundamental changes of the economic

existence with a chance for introduction of modern, effective, and energy saving technologies. and abandoning fossil fuels for production of clean energy from renewable energy sources. dear delegates, here in copenhagen, it is an historic moment for the entire planet. i think that each of us should have the same feeling that we are taking part in the remarkable meeting. this feeling should awaken solidarity and compromise i.n.s.. in this historic moment, let us

all see above our particular interests and during negotiations, let us always keep in mind the greater good, the global problem and common goal of the conference. only by acting in such a manner will we be able to reach a global agreement. an agreement that will serve mankind. let's do all we can to reach this goal. thank you for your attention. [applause] >> i would like you to turn to subitem 21 of your agenda -- 2a

of your agenda. may i refer you to document [unintelligible] you may recall in accordance with the rule 22 the office of president of the conference of the parties is subject to rotation among the five original groups. we now continue the cycle with the president nominated by the restaurant europeans and other groups. it gives me great pleasure to propose that the conference elect by acclamation, minister

of the united nations climate change conference in 2002 will serve as president of the conference at the 15th session. [applause] hearing no objections, it is so decided. [applause] manna congratulate -- may i congratulate you and wish you all the best for this very important job at the 15th session of the conditioconventi. i invite you to take your seat on the podium.

[applause] >> thank you for the election. i promise u.s. president, i will

do my very best to listen to you, the parties, and to ensure transparency. mack also take this opportunity to very warmly thank the minister for his very strong personal commitment. i must say it has always been a very big pleasure to work with you and thank you for your efforts. [applause] for a long time, copenhagen was the name of a distant deadline. next year, next month, but now, it i s now. welcome to the danish capital. the time has come to sec, c for

copenhagen but for constructing nests and hopefully, c for commitment and consensus. let's get it done. this is a time to deliver. this ist h the place to commit. it is up to us in this room to try and overcome obstacles. it is doable. i base my confidence on the daily contact with ministers representing every group and every continent. i appreciate very much the trust and overwhelming support ministers and governments have granted to me, to the secretariat, and to the shares. make no mistake, denmark is committed to a maximum progress in the tracks.

the convention track and to insure a successful and ambitious outcome. let's get it done. [applause] the signs have never been clear, the solutions have never been more abundant. political will has never been stronger. let me warn you. political will will never be stronger. this is our chance. if we miss this one, it could take years before we get a new and better one, if we ever did. the truth is, the copenhagen deadline already works. in recent weeks and months, many developed countries have announced economy wide emissions reductions. many developing economies have indicated ambitious

national actions as their contributions. china, brazil, mexico, south korea, singapore, indonesia. a few days ago, india and last night, south africa, just to mention a few. every positive announcement will improve our chances of staying below the two degree celsius target. we know we're not there yet. this goes for financing as well. maybe finance is an even bigger challenge. we have seen some positive dynamics, some structure but in the next two weeks, we need to work hard and find public and private money. especially, we need money you can count on in the longer term. it is crucial that we ensure a

new additional zandt predictable flow from mitigation an adaptation to capacity building in developing countries. dear negotiators, this year, you have had weeks of extra negotiating time. since june, you have worked with the negotiation text. preparations have been unparalleled. i take it that your family and friends expect you to be less busy next year than this year. if so, that means we must get it done now. your ability to make progress this first week is a precondition for the success of all of us next week. compromise, agree, find concrete solutions. use every skill available to

pave the way for ministers and leaders to finalize the deal. we conclude when our leaders join us. they expect to adopt a global agreement that includes the results of your workout on the lca and kp. that provides the most powerful push and strongest incentive to conclude your work. to those that may hold back ambition, fearing that economies will suffer, we do not have to choose between economic growth or climate conservation. a global deal would drive competitive advantage. it will drive energy security.

let's get it done. the time has come to set the right course for our work while we still can. the agreement we adopt in copenhagen must be comprehensive. it must deliver on all major questions across the building blocks. it must launch immediate action. it must capture all the progress in the ununfcc up till now. looking each other straight into the eyes and take satisfaction in the fact that we all gave our very best to the defining gathering of the generation. let copenhagen be remembered for the spirit of "c". cooperative bemveneess. let's get it done and let it get

done now. thank you. [applause] >> 68 years ago, a surprise japanese attack on pearl harbor left 2390 americans did. the national park service has been collecting stories from that day. here is an excerpt from one survivor story. >> pennsylvania was flagship of the pacific fleet. we were also flagship of the navy. it was admiral campbekimball's .

the saying used to be the the japanese are attacking, the japs are attacking. most of us knew we would have to fight the japanese. where that trickled from i have -- where the trickle-down from i do not know. we expected to fight them eventually. we just did not know when. there was no need for radio communication. it was obvious to all the ships in the harbor we were under attack. so they had as carrying ammunition now to the 3 inch 50. i had been handed a 3 inch shell and i was getting ready to run its to the getting. the next thing i knew i was flat on my face. something went to my right side and out my rear end and i had a

six inch piece thrown out of my leg. my right hand was shot open and i lost part of the left elbow and part of the muscle of a by said. they put me into a bunk and i was lying there and i saw one of the third class brit hume and go by. -- radiomen go by. i realized either somethigng is wrong with me or him. i said, it is highland. all he did was walk away. >> watch more extended interviews at c-span.org. >> next, federal reserve

chairman ben bernanke on the economy. a look at how technology is affecting consumer privacy. an update on the health effects of greenhouse gas emissions. >> tomorrow, a look at what is next for senate action on health care legislation with center mike johanns and then representative barbara lee talks about to economic issues and health care. washington journal live at 7:00 p.m. eastern here on c-span. >> the commander of u.s. forces in afghanistan, general stanley mcchrystal and the u.s. ambassador to afghanistan will testify at two here in tomorrow

on afghanistan strategy. there will be at the allis armed services committee --house armed services committee on c- span3. they will take questions from members of the house and senate foreign relations committee. >> ben bernanke says the economic recovery has a long way to go, adding the fed will keep interest rates at record low levels. this is about 45 minutes.

>> it is nice to be here and i am pleased to have the opportunity to speak. having faced the most serious financial crisis and the worst recession since the great depression, our economy has made important progress. although the economic stress faced by many families and businesses remains intense, with job openings scarce and credit hard to come by, the financial system and economy have moved back from the brink of collapse. economic growth has returned and the signs of recovery have become more widespread. understandably in a situation is complicated as this, people have questions about the current situation and the way forward. taking inspiration from the ubiquitous frequently asked question lists on internet sites, i would like to address four important faq's about the economy and the reserve.

where is the economy headed? what is the federal reserve doing to support the economy and the financial system? will the federal reserve's activity lead to higher inflation down the road? what can we do to avoid a similar crisis in the future? to understand where the economy is headed, we should look at where it has been recently. our economy and all the world's major is -- major economies were reeling from the effects of the devastating financial crisis. policymakers here and abroad have undertaken an extra very series of actions. these policy intervention succeeded in averting a global financial meltdown that could have plunged the world into a second great depression. although a global clericalism

was averted, the crisis never the less had widespread and severe economic crisiaffects. the major unemployment rate currently stands at 10%. we've seen some pickup in economic activity reflecting the waning of forces. the collapse of final demand that accelerated in 2008 left many firms with excessive inventories of unsold goods which led them to cut production and unemployment. this phenomenon was evident in the motor vehicle industry where lawmakers, a number of whom work facing financial pressures suspended production at many plants. by the middle of this year, inventories have been

sufficiently reduced to encourage firms to begin increasing output. contributing to the recent upturn in the gdp. although the working down of inventory has encourage production [unintelligible] it is encouraging we have seen some evidence of stronger demand for homes and goods and services. in the housing sector, sales of new and existing homes have moved up over the course of the year and prices have firmed. the inventory of unsold new homes has been shrinking. reflecting these developments, home builders have someone increased the rate of new construction. a marked change from the steep declines that had characterized the past two years. consumer spending has been rising since mid year. part of this increase reflected a temporary surge in auto purchases that resulted from the

cash for clunkers program but spending in categories other than automobiles has increased. outlays for new equipment and software are showing the tentative signs of stabilizing and improving economic conditions abroad. although we have begun to see some improvement in economic activity we have some way to go before we can be assured the recovery will be self sustaining. also at issue is whether the recovery will be strong enough to create large numbers of jobs needed to bring down the unemployment rate. economic forecasts are subject to great uncertainty. my best guess is we will continue to see modest growth next year sufficient to bring down the unemployment rate but at a pace slower than we would like. a number of factors support the view the recovery will continue next year. financial conditions continue to improve. corporations are having

relatively little difficulty raising funds in the bond and stock markets. assets have recovered significantly in a variety of indicators suggest fears of clubs have receded. monetary and fiscal policies are supported. i have mentioned what appeared to be improving conditions in housing, consumer expenditure, business investment, and global economic activity. the economy confront some formidable headwinds that seem likely to keep the pace of expansion moderate. despite the general improvement in financial conditions, credit remains tight for borrowers, especially bank dependent borers such as households and small businesses. in the job market, the analogue contracting at an earlier pace, it remains weak. household spending is unlikely to grow rapidly when people remain worried about job security and have limited access to credit.

inflation is affected by a number of cross currents. higher rates are contributing to a slowing in underlying wage and price pressures. long-running expectations are stable. commodities prices have risen. likely reflecting a pickup in global activity and the depreciation of the dollar. we will continue to monitor inflation closely, our net remains subdued for some time. the discussion of where the economy is headed brings us to our second question. what has the federal reserve been doing to support that economy and financial system? the federal system has been doing [unintelligible] began the process of easing monetary policy in september 2007 shortly after the crisis began. by mid december 2008, our target rate was low as it would go

within a range of 02 . to .25 percent. our efforts to support the economy have gone beyond conventional monetary policy. i have alluded to cooperation with the fdic and other domestic and other authorities in an effort to stabilize the global banking system. which verged on collapse following the extraordinary events of september and october 2008. we took strong measures independently or in conjunction with other agencies to help normalize key financial institutions and credit markets disrupted by the crisis. among these were the money market mutual fund industry in which large numbers of american households and municipalities make short-term investments and the commercial paper market which many firms tapped to finance their operations.

we also established an extended special arrangements with other central banks to provide dollars to global funding markets, as we found disruptions in dollar- based marketss abroad or spilling over into our own markets. we have played an important part to restart markets for asset backed securities. by working to revive these markets which allow banks to tap the broader securities market to finance lending, we have helped banks make room on their balance sheets. in addition, we have supported the overall functioning of private credit markets and help to lower interest rates on bonds, mortgages, and other loans by purchasing more beverages -- mortgage related securities. our objective has not been to support specific institutions

are markets for their own sake. recognizing that a healthy economy requires a well-financed -- functioning market, we moved with the aim of promoting economic recovery and opportunity. in that respect, our means and goals are consistent with the functions of a central bank and with the mandate given to the federal reserve by congress to promote price stability and a maximum employment. in addition to easing monetary policy, we worked as a bank supervisor to encourage lending. in november 2008, we joined with other regulators to urge banks to continue lending to creditworthy borrowers to the benefit of the banks and the economy. we provided guidelines to banks for working constructively with troubled real-estate loans. we live in examination of 19 of the country's largest banks and

exercised [unintelligible] this assessment was designed to ensure these banks which collectively hold two-thirds of the assets of the u.s. banking system would remain well- capitalized and able to land to creditworthy borrowers even if economic conditions turned out to be worse than expected. the release of these results in may provided new clarity about the bank's condition. a turning point in the restoration of confidence. in the months since then, with encouragement of the federal banking supervisors, many of these institutions have raise billions in new capital, improving their ability to withstand future losses and extend loans as the demand for credit recovers. we have also continued our efforts to ensure fair treatment for the customers of financial firms. during the past year-and-a-half, we have overhauled the

regulations protecting mortgage borrowers, credit card holders, and users of overdraft protection plans among others. in navigating through the crisis, the federal reserve has been aided by the regional structure established by congress when it created the federal reserve. the more than to touch -- 270 leaders who serve on the boards of the 12 reserve banks in 24 branches provide insights into economic and financial institutions. the structure ensured our policy-making is informed not just by a washington perspective for wall street perspective, but by a main street perspective. our reserve banks and branches have deep roots in the nation's communities and do much good there. they have to give a couple examples, assisted organization specializing in foreclosure mitigation and worked with

nonprofit groups to help neighborhoods hit by high rates of foreclosure. they, as well as the board, are involved in financial economic education, helping people to make better financial decisions and understand how the economy works. the federal reserve's actions in combination with those of other policy makers here and abroad, have helped restore financial stability and pulled the economy back from the brink. because of our programs, auto buyers can obtain loans and college students are financing their educations through credit they likely would not have received, and home buyers secured mortgages. these improvements are in terms supporting a broader economic recovery. the scope and scale of our actions have left some uneasy. our asset purchases and lending caused the federal reserve's

balance sheet to more than doubled. from less than $900 million before the crisis to $2.2 billion dollars today. well the actions to combat the crisis lead to higher inflation down the road? the answer is no. we are committed to keeping inflation low. stable inflation [unintelligible] inflation could move lower from here. as the recovery strengthens, the time will come when it is appropriate to begin withdrawing the monetary stimulus that is helping stimulate economic activity. we have been giving thought to our exit strategy. we have the tools to withdraw stimulus in a timely and

effective way. our balance sheet is adjusting because improving financial conditions are leading to a reduced use of our facilities. our balance sheet will shrink overtime as the mortgage-backed securities and other assets we hold mature or are paid. even if our balance sheets days [unintelligible] will be able to raise our target short-term interest rate and tighten financial [unintelligible] are properly. an important role for adjusting policy will be the authority granted to us by congress to pay banks interest on balances they hold at the federal reserve. when the time comes to tighten policy, we can do so by raising the rate we offer banks that hold balances with us. banks will begin to make overnight loans at to a rates lower than they could earn from the fed. interest rate we pay will be

lower than the rate. additional upward pressure on short-term interest rates can be achieved on reducing the supply of funds that banks have to blow to each other. . . as always, the most difficult change it for the federal open market committee will not be devising the technical means of unwinding monetary stimulus. rather, it will be the challenge that faces central banks in

every economic recovery, which is correctly judging the best time to tighten policy. because monetary policy affects the economy with a lag, we will need to base our decision on our best forecast of how the economy will develop. we currently expect inflation to remain subdued for some time. it is reassuring that longer- term inflation expectations appear stable. nevertheless we will keep a close eye on inflation risks and will do whatever is necessary to meet our mandate to foster both price stability and maximum employment. as we at the federal reserve and others work to build on the progress already made toward securing a sustained economic recovery with price stability, we must also continue to address the weaknesses that led to the current crisis. thus our final question this afternoon is -- how can we all for a similar crisis in the future? -- how can we avoid a similar crisis in the future? a look sources of the crisis

were extraordinarily complex and numerous, a fundamental cause was that many financial firms simply did not appreciate their risks they were taking. there ms. management systems were inadequate and the capital and liquidity buffers insufficient. unfortunately neither the firms nor the regulators identified and remedied many of the weaknesses soon enough. thus all and it to regulators -- all financial regulators including the federal reserve must undertake unsparing self assessments. at the federal reserve, we have extensively reviewed our performance and moved to strengthen our oversight of banks. working cooperatively with other agencies, we are toughening our banking regulations to help constrain excessive risk-taking and enhance the abilities of banks to withstand and it's a stress. for example, we have been among the leaders of international efforts, through organizations

such as the basel committee on bank supervision, to increase the quantities of capital and liquidity that banks must hold. i mentioned the scap, otherwise known as the stress tests. we are applying the lessons learned in that exercise to reorient our approach to the supervision of large, interconnected banking organizations athat are critical to the stability of the financial system. we're taking a more macroprudential approach, one that goes beyond supervisors' traditional focus on the health of individual institutions and scrutinizes the interrelationships among firms and markets to better anticipate sources of financial contagion. to do that, we are expanding our use of the kind of simultaneous and comparative cross-firm examinations that we used to such good effect in the scap. the federal reserve possibility

to draw on a range of disciplines was essential to the success of the scap, animal to the book -- and a multidisciplinary approach will be a central feature of our supervision in the future. we are complementing our traditional onsite examinations with enhanced off-site surveillance programs, under which multidisciplinary teams will combine supervisory information, firm-specific data analysis, and market-based indicators to identify problems that may affect one or more banking institutions. although regulators can do a great deal on their own to improve financial oversight, but congress must also act to fix gaps and weaknesses in the structure of the regulatory system and address the very serious problem posed by firms perceived as a "too big to fail." no firm, by virtue of its size or complexity, should be permitted to hold the financial system, the economy, or the american taxpayer hostage. to eliminate the possibility, a number of steps are required.

first, all systemically important financial institutions, not only banks, should be subject to strong and comprehensive supervision on a consolidated or firmwide basis. such institutions should be subject to tougher capital, liquidity, and risk-management requirements than other firms, both to reduce their chances of failing and to remove their incentive to grow simply in order to be perceived as too big to fail. daughter aig nor bear stearns was subject to strong consolidated supervision. the federal reserve, as the regulator of bank holding companies, already supervises many of the largest and most complex institutions in the world. that experience, together with our broad knowledge of the financial markets, makes us well suited to serve as the consolidated supervisor for systemically important nonbank institutions as well. in addition, our involvement in supervision is critical for ensuring that we have the

necessary expertise, information, and authorities to carry out our essential functions of promoting financial stability and making monetary policy. second, when a systemically important institution does approach failure, government policymakers must have an option other than a bailout or a disorderly, confidence- shattering bankruptcy. the congress should create a new resolution regime, analogous to the regime currently used by the fdic for failing banks, that would permit the government to wind down a troubled pla systemically important firm in a way that protects financial stability but that also imposes losses on shareholders and creditors of the failed firm, without costs to the taxpayer. imposing losses on creditors will help address the too big to fail problem by restoring market discipline and leveling the playing field for smaller firms, while minimizing the disruptive

that that is on the financial system and the economy. third, our regulatory system requires a better mechanism for monitoring and addressing emerging risks to the financial system as a whole. because of the size of our financial system, that task may exceed the capacity of any want regulatory agency. the federal reserve therefore supports the creation of a systemic oversight council made up of the prince of financial regulators to identify developments that may pose systemic risks, to recommend approaches for dealing with them, and to coordinate the responses of its member agencies. to close, i would again note that in the fall last year, the united states, indeed the world, confronted a financial crisis of a magnitude unseen for generations. concerted actions by the federal reserve and other policymakers here and abroad helped to avoid the worst outcomes. nevertheless, the turmoil dealt a severe blow to our economy from which we have only recently

begun to recover. the improvement in financial conditions this year and a resumption of growth over the summer offer the hope and expectation of continued recovery in the new year. however, significant headwinds remain, including tight credit conditions and a weak job market. the four reserve has been aggressive in its efforts to stabilize our financial system and to support economic activities. at some point, however, we will need to unwind our accommodative policies in order to avoid higher inflation in the future. i am confident that we have both the tools and the commitment to make that adjustment when it is needed and in a manner consistent with our mandate to foster employment and price stability. in the meantime, financial firms must do a better job of managing the risks of their business, and regulators -- the federal reserve included -- must complete a thoroughgoing overhaul of their approach to supervision, and the congress should move forward in making needed changes to our system of

financial regulation to avoid a similar crisis in the future. in particular and importantly, we must solve the problem of "to be to fail." in sum, we've come a long way from the darkest period of the crisis, but we have some distance to go. in the midst of some of the toughest days in october 2008, i said in a speech that i was confident that the american economy with its great intrinsic vitality would emerge from this period with renewed vigor. i remain equally confident today. thank you. [applause] >> we have time for a few questions. i have some that have already been submitted and others can some other questions. first, any chance just between us on where interest rates might go? [laughter]

>> they cannot go much further down. >> if the interruptio-- [laughter] >> we will continue to look at the autonomy and update our up " -- an outlook and look at their. but we're still looking at the extended period, given that the conditions remain low rates of utilization, and stable long- term inflation expectations. that remains where we are. we will take a look at the economy and there are signs of strength recently. we will go back and talk about that. >> any real prospect of a double-dip recession? >> economic forecasting is very difficult. obviously we cannot give any ganges' about that or for a

stronger recovery next year. as i said in my remarks, i think the most likely outcome is a moderate pace of recovery. there do seem -- there do seem to be enough force is employed to sustain the recovery going into next year. there are headwinds like tight credit and high employment -- high unemployment. but again, we will keep falling developments and adjust the policy appropriately. >> if your recommendation had been in place at the time of lehman brothers, with that had been handled differently? if the council had been in place then? >> as far as the council is concerned, the goal of the council would be to address systemic risks -- emerging risks before they become rigid before they become so critical. the council with a macroprudential perspective would have done its work well

before things came to that pass. certainly by the time of the crisis in september and october of last year, we were well beyond the point of arresting the risks before they became apparent. what would have made a great deal of difference last fall would have been having the resolution regime i talked about, if we had been able to wind tdown that firm and others that would allow them to fail, avoiding tax payer intervention, but not have had all the adverse consequences on the financial system that we saw. that would eventually better than what we got. >> indeed use on the legislation from congressman paul on auditing the federal reserve? >> my views are known. let me make a point that is

important -- the so-called alt it -- all at -- is used by people to talk about financial books, looking in numbers and financial reports and statements. that is not what this is about. the federal reserve fully agrees that the congress should have access to all aspects of our financial transactions and are financial operations and controls. the congress has every right to make sure that the the fed is using the tax payer money effectively and safely. but in this particular contest, it means a policy review. if this bill were passed, it would repeal an exemption passed by the congress in 1978 with protect monetary policy from an immediate review by the general accountability office to assess whether that policy was the right policy or not. every other aspect of our policymaking, our supervision,

everything else is subject to gao review. essentially all of our financial books are open to the congress and to the gao. the thing we're concerned about is the independence and the integrity of the monetary policy process. our concern is that we would take some action on monetary policy that would be unpopular in some quarters, and that congress by ordering the gao audit of that action would be signaling strongly to the markets and the public that they disapprove and they are putting pressure on us not to take that action. we think they're reducing the independence of the fed would be bad for markets, bad for inflation expectations, and bad for the dollar. >> do expect the federal reserve to get all the money back that he has injected in terms of loans to corporations? >> yes, i do. i think we're in very good shape. in fact, the actions that we

took were not for profit maximization by any means. but i do believe that we are going to get back all the money, and indeed we will be showing the taxpayer a fairly significant extra income. >> when you are minding your own business at princeton, did you have any second thoughts about coming to washington? [laughter] [laughter] >> id has been a very interesting experience overall. kenyes once said that economics -- economists said this -- should aspire to be as useful as a dentist. it should not be studied in ivory towers. it should be applied in the ways to help the public and make things better. it is my objective to bring my

knowledge, by research on the great depression, on financial markets, and the economy, to do the best i could to bring that to the policy-making arena. and in that respect, i do not regret coming to washington. >> in your academic research, is there anything you have learned in washington that would make your research wrong or right? >> as i mentioned, i study the great depression of the 1930's. the world is certainly much more complicated. financial markets are more complicated. we have major institutions, financial instruments much more complex. the whole structure and nature of our financial markets are different. they're more interconnected, more complex than was the case in the 1930's. nevertheless, the basic lessons of the 1930's still apply here,

and they were essentially two. the first was that the federal reserve in 1930's made the mistake of being entirely passive on monetary policy. it took no action. what happened was that as the banks failed, the money supply contracted and the economy went to eight to% per year deflation, which made it unattractive to invest and gay people incentives to delay purchases. -- and gave the people incentives to delay purchases. i believe that we took that lesson and we've been very aggressive in cutting interest rates and making sure that we stay away from inflationary cycles, providing the necessary support for the economy. the second major lesson was to not let the financial system collapse. in the 1930's, many people think about the depression as being the result of the 1929 stock-

market crash. that was a major event, but between 1929 and 1930, the downturn in the economy and in the stock market was not all that different from other recessions. not that different from the beginning of this recession. what changed the depression from our regular contraction to the great depression was the extent of the financial crisis which gathered steam in 1931, particularly the collapse of large banks in europe which then spread around the world for the collapse of the financial system which created huge amounts of financial instability was a major factor that drove the world economy, not just the united states, into a deep depression between 1931 and 1933. it was the stabilization in 1933 and leaving the gold standard which led monitor policy become more supportive, that caused the u.s. economy to

come back. in that respect, our actions to prevent the collapse of the financial system, including the entire global system, was essential to avoiding a similar economic outcome in this decade. of course, a big problem was that we did not really have all the tools that we needed to wind down systemically critical firms in a safe way for the broader economy. that is why it is so essential for congress to give tools not to the federal reserve -- i think it would be better managed by the fdic and the treasury -- to avoid these situations in the feature was not creating moral hazards and other problems associated with the failure of large firms. >> let's go to the audience. with a former member of the federal reserve here. >> [inaudible]

>> one question. [laughter] >> [inaudible] our plan to address several key questions, including the role of the federal reserve in combating the current federal crisis. this deals with bear stearns,

lehman, an aig. why did the federal reserve not save lehman's? who made that decision? why was it made improperly? why was the decision may not to save lehmans? what was the role of the treasury? [inaudible] why did the federal reserve and save aig? he made that decision? [laughter] i also tried -- i would also tried to talk about the expansion. [inaudible] [laughter] [applause]

>> i bet you thought when the former governor was called on, that he was a plant, right? [laughter] as you know, the federal reserve and the treasury and consultation -- we always bowed to the president and congress whenever possible -- attempted to avoid the systemic collapse of our financial markets, our financial system. we were extremely concerned that the collapse of these large interconnected firms in a disorderly way would have adverse effects on the broader economy and the global economy. i think the evidence is that we saw following lehman that we were right. the collapse of these firms is very destructive. we're very consistent in their best to save and protect the system from the collapse of these firms, all of them. the reason we did not say lehmans was not a conscious

choice, but as i have said many times in public, given the aloud -- the limited powers that we have, the lending authority against collateral, we were unable and did not have the tools. it was not a conscious tool -- a conscious choice is something we could not do. that is why it is so essential, if we're going to avoid this type of crisis in the future and avoid the very unpopular and deservedly so bailouts associated with it, we have had a better system. congress is working on that and i very much support that approach. >> let me ask one more question. what is the best thing about being chairman of the federal reserve board? >> i get to go to the security lines at the airport. [laughter] much more quickly, and i can take a long 3 ounces of fluid that by one.

-- if i want. [applause] >> on the behalf of the group, and i want to give you this map of the district of columbia. it might buy like the 28 -- in might violate the $20 limit on gifts that you have, but not by much. [laughter] [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009]

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distingui diminishes uniqueness and it does leave it not so personal. instead of knowing the people that you -- who govern you or by a radio, television and the internet. modern times invalidates old ways of thinking and the constant q >> out like to thank you -- all like to welcome you to the second discussion on major issues of domestic and foreign policy political developments. since the presentation is our second, i like to invite all of you to our next event which is just one month from today, which

is featuring a number of congressmen and ambassadors. it will talk about the legal -- the legal implications of nato expansion. our main mission here is the timely, innovative, and high- quality search for the united states congress, other branches of government, and the united states public. we're represented by 25 foreign and u.s. legal aid specialists. we answer question on barnaul when questions arise. our specialists provide legal opinions from multinational -- you can see samples of our research products here on the screen.

you can also go to our web site and get our on line product. i invite you to come to our web site, and i can show you are someone -- a semblance of our work and statistics. during the last fiscal year, we prepared about 1500 legal issues. our panel discussion today [unintelligible] on the common article 3 of the geneva convention. it focuses on one aspect of the humane treatment of suspects -- suspected terrorists. after a panel discussion, it will be posted on the web site. it will not find answers on the web site, please contact us. i like to use this opportunity to invite all of you after this

panel discussion to our offices on the second floor for a small reception or you can approach our presenters or talk with the legal specialist working in law library and the congressional staffers and the government employees. please feel free to contact us with your questions and we can provide an in-depth report to you. before the beginning of our discussion, i like to bring to your attention to representation of all leverage it -- of the law libraries daschle as tier. >> you have been watching a couple of minutes of the special problem in because of a technical problem per we would join are scheduled programmi on federal privacy. >> thank you so much for that kind an entirely undeserved introduction. as i look around the room, i see so many privacy eliminate race

here, people who have really worked on these issues. susan grant, marc rosenberg, dave morgan, and so really at this point it will be a terrific workshop. we will learn an enormous amount and you're going to help us do that as we try to think through these complex issues. i recently spoke at a panel about louis brandeis, one of the intellectual fathers of the federal trade commission. he was also a world-renowned reformer, supreme court justice, and in 1890, brandeis and his partner several war and authored a seminal law review article on privacy. they wrote, "numerous mechanical devices threaten to make good the prediction that what is whispered in the closet shall be

proclaimed from the housetops." what they were concerned about them was photography. photography in newspapers and peeping toms. their work was enormously influential and prophetic in some ways in that it helped shape american jurisprudence on privacy over the course of the 20th-century. brandeis' thinking continued when he was on the supreme court, particularly in olmstead where he wrote that the right to be left alone was most important. the right to be let alone was the most sacred of right, the right most valued by civilized men. in the 1960's, as americans started to lose faith in government and the 1970's, with the abuse of government surveillance powers, together with the advent of the computer age, it created problems are

around the citizen's privacy right concerning the government. and the privacy act and the fair information practices principles -- do you want to say with me? it grew out of that environment. i would argue that we are at another watershed moment in privacy, and the time is right for the commission to build on the february behavioral marketing and behavioral targeting principles and take a broader look at privacy, or a privacy writ large, and let me explain why. one of my advisors is buying a computer with a quad core chip costing under $2,000. oslo were -- in 19 '60s, a slower craig computer cost $10

million. the computer costs of that approach is $0. storage and the efficiency possible from cloud computerinig have allowed people to use data in ways that whenever feasible or even conceivable for. pedro targeting is one of the many ways that companies can use data to try to tease out which consumers or ip addresses are uniquely identifiable cookies are more likely to respond to a particular ad. those who attended the workshop on the future of journalism know that a number of speakers spoke about the importance of revenue from targeted -- from targeting

and funding journalisms. there are benefits such as more relevant advertising, but as we all know, costs in terms of privacy. those were still reverberates -- those words still reverberates today. that fundamentally change the privacy landscape in a way that justice brandeis would have been completely unfamiliar. without a real understanding of the ways in which their information is handled or transferred. take internet advertising. how many consumers or the ones outside this room -- i know it is early in the morning but that was a joke -- had ever heard the names of the many organizations that end up with their for it -- with their names and information in the process of targeting as.

how many intermediaries are in the internet ecosystem? how many people understand what a cookie is, much less know how to distinguish a first-party cookie from a third-party cookie? the way the consumer is tracked on line, and to ask the question is to answer it. it is not just consumers grappling with privacy. companies are grappling with privacy as well. consumers opted in and were paid $10 for participating. it was a stunning degree of tracking their internet usage. while the extent of tracking was described, it was not prominent given the extent of the information track, which included on-line banking statements, drug prescription records, bdo riddle records, library borrowing histories, and

the size of web-based e-mail. consumer consent was with inadequate understanding. nobody argues that the people at sears or bad people who wanted to do bad things to consumers. and to the contrary, they probably did not know exactly what they had learned from this data. that demonstrates that all of us are still feeling and our way around what respecting privacy really means. people have asked me what to expect to get from this workshop and where we're headed. i can honestly say we do not yet know. our minds are open. we do feel that the approaches we have tried so far, but the notice and choice approach, and the other regime, have not work quite as well as we would like. but it could be if this issue is

a lot like churchill's description of democracy, "the worst form of government except for of all the others that have been tried." still we're going to try to look to the issue of privacy, especially online privacy, to think it through in the way that is better for consumers and for businesses as well. we all agree that consumers do not read privacy policies or eula's for that matter. particular devices and even consumers are so readily identifiable, and commission -- he can be viewed in a more holistic way. is there a better way to protect privacy? is there an easier way? is there a framework that conforms to reasonable

expectations, that businesses can understand and apply? if not a unified theory of privacy, are there steps to narrow the -- -- the areas of confusion and empower consumers? kohen should we utilize more opt-in -- i've been a supporter of that for quite some time. should we treat categories of the affirmation, such as personal health records or personal financial information, differently? and how we treat our bubble categories of consumer such as children? we hope that we can find that over the course of the next six months, and the experts so graciously appearing in today's discussion, that that will start assault on the course of answering some of these questions. i see my distinguished predecessor here. we're delighted that you could be here. let me thank a few of the many

people who have worked so hard to make it days are reality. i will not list everyone but let me acknowledge some of the key staff members. loretta, if you could stand up unless you are already standing up, then raise your hand. loretta garrison, peyter mcgee, katie, who started a soft, michaele rosenthal, just a stretch, -- jessica stretch, you aren't in the front. of course, the deputy director jessica rich, david, the architect of so many things in the bureau in terms of

protection. we're delighted you came over from georgetown to be a part of the commission. also, jeffrey rosen, standing over there in the corner. he is helping us think through these issues with a slightly different but incredibly informative perspective. we're done lightly you are part of the group that is digging through privacy of online. i want to thank you all for the selling such a stellar cast and an accomplished group of thinkers on these issues. and with that, let's get the ball rolling. are we going to be revealed the ecosystem charge today, this morning? that is going to be very exciting. a number of exciting announcements. thank you so much. [applause] >> thank you, chairman leibovitz. i would now call to the podium mr. richards met who will describe the data flow charts

that are in your packets, as well as the personal data at the system that is on the wall to the right. -- ecosystem that is and the wall to the right. and it panel one could take their seats so that we can be ready to go as soon as mr. smith insists his presentation. -- finishes his presentation. >>, i think the ftc for the opportunity to speak here today. my role is to set the stage for the workshop and to talk about some of the technology behind data collection and data use.

as we all realize, the flow of data makes our world of work. it is a fundamental if park -- a fundamental part of our economy and everything we do every day. a simple economic transactions such as making a cell phone call or buying something online, it all impulse the collection of data and the use of data by multiple vendors, simply to make a cell phone call might involve five different companies to collect data as part of making and completing that phone call. what i hope to do in the introduction is to look behind the scenes of little bit at some of the technology that makes all of this happened and some of the business relationships that make this happen. the issue of data collection has been around forever. today, the issue, as the

chairman said in his introduction, very interesting to hear about starting out with brandeis, it is technology- driven. we see more interesting uses of data and more collection of data, the explosion of collection of data, due to technology. many people in the room can realize this by thinking back only 15 years to the first time they owned a cell phone or use a web browser or had a credit card swipe with the magnetic swipe instead the embossing machine. those are the implications of the technologies that are driving this data collection ecosystem. one illustration of technology that i want to point out -- this is a technology, made in 2003. -- this ancient technology, made in 2003. you could buy all 1 gigabyte

hard drive today for around $150. these used in computer servers to hold information about what we're talking about today, the data collected as part of transactions. what is one terabyte of data? that is the equivalent of 1 million of typed text. that can be held in one hard drive. we make hundreds of millions of these hard drives per year. as the chairman has pointed out, it is practically free to stored data. it costs more to delete data off of these drives them to keep it. we have to fill all these drives up and we are as part of this

data collection ecosystem. the other part of the technology advanced that we are aware of is communications technologies. there are two important places that as happening 31 is of course the internet, which is also allows us to commit -- to connect all of these computers and hard drives together to collect data. we'll watch the internet becomes something that was in universities to something that we all use. we used to connect up to the internet through modems, and now we do it through cable connections and dsl connections or wireless connections. that is the other important communications network that we have, the wireless phone network, which allows us to collect data at really in the location. -- any location.

this is the personal data ecosystem, an attempt to look beyond the curtain had a very high level of how data is collected in our world. the purpose of the chart is to show from a consumer perspective what they see as data collection and things that are happening behind the curtain. one thing i wanted to say about this is that it is obviously very simple compared to what is happening in the real world. there are literally thousands of vendors part of this data collection ecosystem. so it is more complicated in this diagram. it is a high level chart and it does not get down to some of the nuances and complexities that actually go on in the real world. in the ecosystem, we have the

data supplier, the consumer, that provides the information as part of going about their daily lives to a variety of what we call up data collectors here. they can be all sorts of organizations, businesses that we interact with every day, they can be in the area of medical -- our doctors or pharmacies, the government collects data, and a whole variety of folks who as part of our daily lives we provide information's to. he could be direct to an application for credit or it can be in direct, through, say, taking a cell phone call. they provide services to us. then we move out one level to an area that allow consumers are not really familiar with, to the data broker level, where it there is a variety of sources,

putting it together, aggregating it, for the purposes of selling it. this is an area that consumers are only vaguely aware of. and then to the outer circle of the chart, we see all the different -- some of the different uses that the users of this data, who by the aggregated data -- marketers are banks -- the use all the information collected through the day your broker services. -- the data broker services. coming back to the consumer, there are a variety of services that happens from the data users to this aggregation of data. it can be the extension of credit and advertising, a whole host of things that the data users bring back to the consumer. in some cases, the consumer is aware of the services, and in

some cases, they are not particularly aware of them. the one thing that is important here is that we have primary user data and the secondary uses of the data. if i buy a house and pay property taxes, a lot of people do not realize that information about my house is used to characterize me for marketing uses. we also look at today is some specific examples of uses of data in everyday transactions. this is one that is personally applicable to me. i had to start taking pills to regulate various health issues. one of the things i have to do is get my prescriptions filled at the local pharmacy. here we have all part of this ecosystem, how bad is used to

perform this service, some of which i am very aware of and sometimes less aware of. the basic economic transaction begins the use of the doctors providing the prescription. i take it to my pharmacy, where information is entered into the computer about myself as well as mine prescription. you get what prescription that can be renewed up to a year. it is up to the pharmacy and their computer systems to keep track of those refills. one of the benefits i get as a consumer is that i do not have to go back to the doctor for every prescription. so when the pharmacy fills a prescription, they enter the data into their computer systems, and one thing they do -- a new service the pharmacy is providing now -- they will call me on the phone when it is time for me to read fill a prescription. it is one use of data.

that is the marketing program as far as the pharmacy goes, but for me, that is a convenience. data flows out of the pharmacy, paying for my bills with the health insurance companies. but also, there is a hidden, behind the curtain activity where various prescriptions go to the pharmaceutical analytical companies that analyzes all the different prescriptions that people are buying for a variety of purposes. one can be disease tracking. another can be for information for media. another area of relatively controversy all is the area of marketing to doctors. had these aggregate statistics -- out of these at a -- out of these aggregate statistics, some are specific to the doctor in the information is sold to pharmaceutical companies and pharmacies to market back to

doctors. this is an area that has been controversial. the idea is that the pharmaceutical company faces their markets -- their marketing to specific doctors based on the prescriptions they had been developing. another area that has been interesting, driven clearly by technology, particularly with high-speed internet connections, is something we hear about, social networking web sites. this is networks like facebook or myspace which provide a way for people and friends and colleagues and even strangers and whatever to communicate and provide a community where people can discuss in a semi-private area of variety of topics. the basic idea behind a social network and website and is that

you register with the web site. it is a voluntary activity. you get an account, and from there you say to that website who your friends are. that creates an area where everybody can communicate. some of the information you provide as part of that social networking is made public in can be used by anyone. if you google people, some of the first things you will see our protocols -- are profiles at places like facebook and link in. l. ink -- facebook and linked in. another aspect going on behind the curtain in the social networking site is the use of information that you provide as

part of your profile as well as part of your discussions with france, the advertising aspect. you are being targeted with advertising as you use this site based on all the information available either in the profile or on the forms. another area that becomes interesting, many of these websites support features known as third-party applications, where the web site to allow other parties, other software developers, come in and provide content and games that run within the context of the social networking website. these applications are supported by advertising. what people are using this web sites do not realize at this these applications have some access to personal data collected by the web site. that is being pulled off in used for advertising purposes and

other purposes that are not clear. the last area of one look at this morning -- i want to look at this morning is the collection of data, a very important one, much more important of the last three or four years, mobile phones or smart phones in particular. a smart phone is basically a computer that is portable, and just happens to have a cell phone attached to it. the key thing about the computer his that he can communicate through the internet through wireless connections. we are able to collect data or observed data with that the vice had any place and any time. -- with that device at any place and any time. a key feature of those devices

is to find out where they are, locate themselves on the map, at any point in time. they use a variety of technology to do that, including gps, like by, and sell towers. -- gbs, wifi, and cell towers. you have communication networks that allow you to call home, and you have something that provides location. we have companies out there developing an interesting hosted applications using these technologies. it is the next level of data collection, if you will. on the chart here, we have shown a couple of different applications using smart phones. one of the mobile coupons applications, walking around, you can run this application and it will provide coupons for businesses in the area that you are currently at.

you download the application to the cellphone, and you also provide personal information to the vendors who are providing coupons, and the application runs, and as you execute it, it will provide you with a variety of coupons. hear the kind of coupons i am interested in, you can say. excuse me. i still have 30 seconds. sorry about that. you say what kind of coupons you like, restaurants, bars, whatever, and the types of coupons that are available to the coupon provider are there. another more interesting application, one that seems to be targeted at the younger crowd, i am not sure i would want this, the mobil grand locator. it provides the net -- the mobile friend locator.

you sign up with this service by downloading an application, it shows you on a map where all your friends are, who have signed up for the service. it is friday afternoon and you want to get together for dinner that night. you can see who is close by and then be up. -- meet up. is a free service said there is advertising that goes on behind the scenes -- it is a free service so there is advertising the goes on behind the scene. in addition, one of the services we look that allows you to also upload your position to your social networking homepage. so not only people with phones can figure out where you are, but your friends who were followed new on a particular social networking web site. an advertising can then be an advertising can then be provided on the web site base