and what could the role of this e in the new, monetary system that you are developing? >> this is about the ability to survive. occupied many, many articles of many weeks and months. but these articles -- home this is still there. i still remember, eight months ago, they said it will never resist, that will succumb, and yet, the euro is still there. i want to say something, >> never, and listen to me, never will we turn our back on

the euro. those of you that are familiar with your, those of you that our will know, there is something important to understand. that is that the euro spells europe. euro is europe. europe has seen 60 years of peace on our continent. that is why we will never let the euro go or be destroyed. i speak as much as my german friends as i do my fellow citizens. we and the germans were locked three times in the most barbaric worse. that was yesterday or the day before yesterday. now, europe has become the world's most peaceful and stable

continent because we, our predecessors, built in the european union. the very fact that 17 countries should have availed themselves of the same currency is a magnificent symbol of that. imagine that we might pull out and a band of the euro, that is a complete misunderstanding of the state of mind of europeans. for us, it is not something economic or monetary. it has to do with our identity as europeans. for those that wish to weigh against the euro, be careful how you invest.

we are determined to show the strength of the euro na -- in a significant manner. several countries have to agree. when president obama makes a decision, he has to get the white house and congress to agree. but when we make a decision, we have to get 17 countries to agree with different traditions and histories and often in situations of urgency. we have set up a mechanism to defend the euro. we did with grease was to do it very fast and that is what enabled us to come to the rescue of countries that were under the attack. i would like to go even further because we believe very firmly that we have to further deepen

economic policy in europe in a spirit of coordination and competitiveness. what i would have to say on the subject of the euro is a very simple one. it is of such importance that we will be there whenever it needs to be defended. the result -- the consequences of failing would be so cataclysmic, we cannot even possibly entertain the idea. not even play with the idea. have i been clear enough? maybe i have not been clear enough. [applause] >> mr. president, i have been given the high honor of being able to have a discussion with

my president. i hope that you will be patient with me. allow me to begin by identifying a contradiction. you said that it would be easy to keep this promise. i love coming to davos. i know that you were just coming for this session today. i do not think that it wasn't as easy as you say it was to come here. in the world economic forum, together with the international chamber of commerce, we have established a task force with the ambition of being in this process. it has, as its overriding goal, to make a modest contribution to this debate.

we will have 10 or so people who will be asking a question or making a comment on the issues of the g20. to allow us to continue in the french language, i am going to begin with our first question who has no need for an introduction. he is born to be talking about the volatility of the market and how to counter that volatility. you have the floor. >> president of the republic, good morning did i am president and ceo of a company. we believe that this is a major

issue for our economy for our company. for our people as well. on the issue of energy prices, gas, oil, coal, i would like to dwell on this. the prices have doubled over the last 10 years and reached unprecedented levels. perhaps if we think back to the time of the other crisis, this volatility atmosphere of uncertainty is difficult for investors. it hinders investors. in our sector, in the energy sector, electricity and energy prices in general require high prices of capital. any level of uncertainty will hobble investment.

the long-term effect could be to create new buffers and perhaps further impact prices. we believe that there is there is a relationship between the risk of price hikes and the volatility and the atmosphere of uncertainty. a number of points have been addressed. we would support measures to strengthen enhanced dialogue between producer and consumer countries. transparency of the flows of energy volumes, stocks, consumption. and transparency, as well, in terms of long-term decisions that are being made. as well as transparency for the decisions to manipulate markets.

these need to be followed. furthermore, i would like to say one thing. this has become an essential commodity of the energy market. the uncertainty that exists today on the future price of co2 could create difficulties in europe for investment. we could see shortfalls in investments in the long term and systemic problems in the european energy markets. so, mr. president, a few comments on this -- on these issues would be -- would help us understand. >> let me reassure those that are worried. this is not challenging the role of the market. we have read some pretty astonishing things in different

media. what is the market? it is simply supply and demand set within the framework of a certain number of rules. the market without rules that is not regulated is a dead market. the total absence of rules, it does not spell a free-market economy. what is happening? it so happens that a huge hike in agriculture commodity prices is due to a huge increase in demand. if we want to feed our people by 2015, we will have to produce 70% more this is the last -- 70%

more. going back to this issue of food production and energy production. why would you except -- accept regulation on secondary markets? the russians and ukrainians have a huge forest fire and drought. they decided to no longer export their grain to moderate countries. agricultural organization was in the position to have the foggiest clue. the lack of transparency, plus the lack of regulation led to

increases in commodity prices. we have seen some interesting surveys and articles in the press saying the speculation has nothing to do with price increases. it is a chicken and eggs attrition. speculation feeds on shortages. take a look at coco. you can acquire 15% of world cocoa production without having to pay a single cent for the actual amount of cocoa that he as just bought, and he will sell bought off before the original purchase. is that normal? is that what the market should look like? should we continue like that?

i say to countries like india, brazil, who were producing -- are producing food commodities, there is no question of preventing them from benefiting from price increases. i understand that. be careful. if there is exponential increase in prices, there is exponential drop in prices and that will kill off your presence and your farmers and our agriculture. i went with gordon brown, one of the few people who actually said to the oil-producing countries that it would not be reasonable for oil to be at $140. this would actually endanger their production on a long-term basis because it would encourage countries that did not have fossil fuels to invest more in

alternative sources of energy. it was not more reasonable to have a barrel of oil at $40. we need regulation did not excessive regulation, but we need regulation. we need transparency. let him pledge to put down a part of the money and that be held as a guarantee. we have seen levels of shortages that are unheard of since 1974 for some food commodities. today, we have honker and riots. it will that contribute to stability? farmers worldwide can no longer feed because grain prices are so shot up. is that reasonable?

supply and demand. it seems to me that this is one of the major risks in world growth. that is what we are trying to do. without becoming obsessed with -- is at all about speculation? -- is it all about speculation? let's have a market that functions normally and no one can upset the rule, the basic rule of the market. >> mr. president, we will to do with regulation. this relates to the regulation of financial systems. i will ask jimmy diamond, who is

the chairman and ceo of jpmorgan chase to comment on the issues of financial regulation and that will be in english. >> mr. president, thank you for coming here today. when you go to the g20, i would keep in mind all of these problems. are they fixable? it is not a given that strength will continue. policy is critical to making get work. i think the sole objective would be jobs. my friend has mentioned it. this is for political reasons and ethical reasons. we need to do everything we can to get jobs back, which means growth. and good policy is important. there was a book written about the last major crisis called "

this time is different,." people say that the outcome took -- i think that we have a policy. if you read the book carefully, the reason it took so long to get out was because of that policy. sometimes unattended, sometimes policy out of anger. we have to make sure we do the right things. we had an unprecedented financial crisis. had it not been for the quick movements of the governments around the world, it would have gotten worse. they are to be applauded for that. i think it is very important to acknowledge the flaws in the financial system that needed to be looked at, analyzed and fixed. a lot of that has been done. higher capital and liquidity resolution which i prefer to call bankruptcy for big, dumb banks. you have to be able to take down a big bank in a way that does not affect the citizens.

the cost of taking down banks is borne by fdic. so much has been done already. more capital, more liquidity, deliver to-director clearing houses -- derivatives clearing houses. there is more better accounting. when you go to the g20, when it comes to financial reform, people need to take a big breath. a lot has been done. too much will be too much. this is about jobs. i think that business and banks can be part of the solution. i would urge that the population -- there are many banks in this crisis who are pillars of strength.

i will mention some europeans. hsbc, euro charter and hundreds around the world that stood up around the world. we have got to get these policies right. at one point, the conversation has become shrill. we need to do this right. thank you. >> well, do we need banks for the economy to function? obviously, that goes without saying. but let us this thing back to what actually happened. everything was fine and dandy. everything was going well. and then, one fine day, the unthinkable occurred. have you already forgotten? one major american banks went

bankrupt. but under. -- it went under. it is not insulting anyone or incriminated anyone, but remember how this all began. the world was shocked to see one of the five major banks literally in " like a pack of cards. -- literally implode like a pack of cards. what was on a national -- what was unimaginable was happening before our eyes. it rests on trust. people worldwide who had savings started thinking, it should i trust? can i afford to trust? everything started to collapse.

the cost to the world has been tens of millions of unemployed who have nothing to do with this. yet, who are the ones to foot the bill? between the pack of cards that came down in the european /american/japanese unemployed, there was no link. there was a lot of anger and a lot of suffering and anguish. and then, explanations' started pouring out. and what did we see? well, we saw that for the last 10 years, major institutions who

we thought we could trust were actually engaged in doing things that have absolutely nothing to do with common sense. i am sorry to be so blunt and simplistic. but this is my way of explaining things. if the collapse, it is because they were making lots of money by selling of products which were not generating money themselves. in other words, we were making profits on the debt you were selling. so, this game, which was very interesting because everyone made money. in the end, there was no one to pass it to.

everyone thought this was an excellent idea, but it was not profitable. and then the whole thing collapsed. what did we decide? we decided that there should never be a single institution that should not have honest regulation and does not have a flexibility. -- have a flexibility -- have flexibility. there is a huge gap. i would not like to be perceived as somebody who was obsessive about regulation. i am calling for regulation in areas where we should have had rules long ago. this idea of off balance sheets.

bankers and heads of corporations have to respect rules for everything that is on your balance sheet, but you can take off your balance sheet what ever you wanted. what is the point of having the rule if you can circumvent them? i am not challenging the principle of securitization. it is essential for the world's development, but there must be a limit if an offshore country were to guarantee 700 times its gdp, are we talking about a market economy or be talking about a mad house? so, i do not have issues with flexibility. i do not have a prom will-i do

not have a problem with bonuses. -- i do not have a problem with notices. you have a system where when things are going well, the list of reasons why something is going well is used to identify, and not the reverse. those that in 2007 got bonuses when things started collapsing should have been sanctioned. there is nothing wrong with bonuses, but they have to be spread over ton to make sure that you're showing profits that are indeed long-term profits. i see the risk. if there is too much

regulation, you see the risk of shuttle banking developing. by the same token, hedge funds being sold off a ridiculous prices, who foot -- who footed the bill for that? i am aware of the matter of the need to strike the right balance. the french talking to an american or a british banker is necessarily perceived as somewhat suspect. but i am not being accused of this, we will be reasonable and wise, but believe me that we

will be determined. tax havens where any amount of money could be stashed away, this is something that we are going to continue to pursue. one of the things that we are born to do -- going to do is to make sure they are implemented is one thing to make promises. it is another thing to keep them. there cannot be a market economy if it does not function in an ethical manner. there cannot be rules for markets it there are not a minimum set of rules. that is the line that we are going to trade. >> teacher is with standard

chartered bank and he will be giving his question. peter, you have the floor. >> mr. president, you have just discussed some of the issues surrounding the regulation of banks. i think that much has been achieved and much needed to be changed in the regulation of banks to make them better governed and better able to withstand shocks. but you have put focus not only on completing that task, but addressing some of the wider issues within the financial system. so, the issues around commodity prices are much broader set of

issues. i do think that this is an essential part of the equation for it will have to make individual financial institutions stronger, but we also have to make the system stronger. that second task, we probably have not made enough progress on. my question to you, mr. president, is how fast can the financial community engaged with this second task. not just making ourselves stronger, but making the system stronger. thank you, mr. president. >> i would like to give you two examples. rather than engaging in an ideological battle, on the

subject of who is earning too much and spending too much, this would be a very specific objectives. we need to agree on what constitutes an indicator in order to gauge or measure in balance. -- inbalance. i think that we have to be pragmatic and not ideological. what are the relevant indicators that enable us to the fund -- to define this? what is it? there are different criteria. it is a difficult objective. but this is what we are going to try and do. as of february, we are going to come up with a whole host of indicators that are relevant to

define and measure imbalances. i was not entirely in agreement. there was so much talk about the 4% level of surpluses. i did not agree with that. the first thing that we have to do is have a list of indicators to define engage imbalances. having done that, what we next need to do is learn who is going to make sure that they are calculated and that they are implemented. from the point of the french presidency, i am sticking my neck out here. there is only one international organization that is relevant and that is the one where these criteria should be applied.

now, this may be a coincidence. the g20 is 20 members. the imf had 24 members. they are not always the same ones. within the governing bodies, i think that it would be very useful to rethink statutes in order to see it as the world forum in charge of coordinating micra economic policies -- micro-economic policies. that is better than looking at the wage bills of one of the world's poorest countries in africa. which, in any case, would not in

any way contribute to worsening world imbalances. what ever we do, i think that we have to extend and broaden the role of the imf in combating these. we need to define the criteria and apply them by changing them in terms of the imf. >> mr. president, you have been extremely generous with your time and i think that we have to close very shortly. we cannot give the floor to everyone. but perhaps we could allow last statement and the last question. >> good morning, mr. president. a few months ago, you presided over a wonderful africa-france summit and you make sure that

the links with africa and the aid given to africa be at the center of the concern of the g8 in g20 -- a g8 and g20. you said yourself that in africa, if you have 1 billion more inhabitants in about 30 years' time. you also linked your statement about aid to africa to be taxed with financial transactions. we can see that there might be incredible development banks to the public/private partnership that may become more numerous, but this is linked to governments and linked to corruption. do you think that these public/private partnerships

could be in addition to your vision of this tax of financial transactions or could it take their place if such attacks could not be introduced? >> thank you, madame. well, this is probably one of the most topics where there is the least agreements. my view is so obvious that we should be able to reach consensus. in copenhagen, the world's major countries paid to the world's poorest countries $120 billion as of 2020 -. there is no one who could have imagined that this would come out of state coffers.

therefore, we have no choice. if we want to keep our word and not go back on our word, and i will be in addis ababa in order to defend this idea, we need a mechanism. it is a matter of sleeping well at night. population world's has no access to energy, electricity, infrastructure or food. they actually go down into the streets and start marching. if they do that, it will be too late. it is as simple as that. europe is 12 kilometers away from the streets of gibraltar -- of the straits of gibraltar we

need to keep our promises. there are different forms of this. i, personally, remain attached to the idea of a tiny levy on financial transactions. i know that a certain number of friends and colleagues are against this and they are entitled to be against this. but what i would suggest is to set up a small group of leading countries in order to implement the financing mechanisms and then stand by our word for it i have no doubt that a few years later, other countries will tell our line -- gold toe our line -- will tow our line.

so, yes, in order to finance these public/private partnerships, 500 million inhabitants are under the age of 17. there is no infrastructure or access to anything. do you really believe that we can't imagine a stable world if things go on like this? there is not a solution to everything. we will think about that. but it is a step in the right direction. is it reasonable, these ideas? have we not been witnessing the rise in terrorism that feeds on party and fanaticism? do we really think that we will

be able to forge ahead with half of humanity that lives very well and the other half that cannot even survive. i believe that i am talking to intelligent people. people who actually know that these things cannot go on like that. this vision that i call for is not to look at what will go on tomorrow morning or the next leap in the stock market, i am talking about 20 or 30 years ahead. a world where information circulates at the speed of light that will not allow such injustice. it took three months for news to reach europe and one could imagine what had some time to play with, but that is no longer the case. it takes a nanos-second. -- a nanosecond.

light is shed on injustice because and permission is at our fingertips. it makes it all the more impossible to stomach what one sees. the future of your children, your grandchildren, york countries rest on this and ballast -- this in balance. this represents a my new levy on financial transactions this could then be channeled to those economies that could then be in a position to buy the products that you manufacture because that will be the fallout for you. if we do not have the wisdom to anticipate that, then you will see that the most reasonable governments will be swept away

in the world will look like a very different place than it looks right now. it is my duty in the " dog-in the g20 -- it is my duty in the g20. everyone dislikes taxes. but we live on the same planet. you and i live in the same world. these huge gaps will jeopardize not only grow, but the very future of your company's and our ies and's -- your compan our societies. yes, we need to think about this. we need to think about these financing mechanisms that will

entitle people to pull themselves out of poverty in the same way that we were given the opportunity to pull out of poverty as a result of the industrial revolution. it is a matter of wisdom and common sense, not of ethics. we need to have new ideas and not stick with the old ideas of the last half century. these are the issues that we will speak about at the g8 in g20. also, a civilize internet. the idea is not to bridle internet or restrict internet. but how can we civilize the internet? how do we deal with the issue of taxation of a digital society?

you should be entitled to put something on the internet. it is not an offense to internet. internet is the greatest. we do not talk about 2011. this is 20, 30 or 40 years down the line. you make decisions on the past and the future. this is the same thing.

this is another tax thank you. >> mr. president, thank you so much. i must say that this reflects an indicates that we need this partnership. the major issues do not concern politics or policy makers, but the economy, as well. the man in the street, the unemployed, they are concerned by this. so, we promised to give you all of the support that we can in your endeavors.

your presentation has truly reflected the topic of this , finding new values in common for this new reality. that is exactly it. this year, is the tipping point -- of the turning point to meet these challenges of the new reality and to build together the future and not just fight the crisis and we will have made steps forward. i would wish you all the best of luck in your very important task and endeavors. thank you, very much. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> here is our schedule. next, the and adoration of georgia gov. nathan deal and then the state of the state address of new mexico. and then, the release of the final report of the financial crisis inquiry commission which stated the financial downturn could have been avoided. >> sunday, north carolina congressman patrick and carry on the possible request from states to seek bankruptcy. he serves as chairman on an oversight subcommittee. the representatives are interviewed by the washington post and congressional quarterly. what to newsmakers sunday at 10:00 a.m. and 6:00 p.m. eastern on c-span. >> this weekend, on american history tv on c-span 3, we will tour the home of frederick

douglass. a professor tells us of the aggressive nabal diplomacy of woodrow wilson and then, from the nixon library, a focus on daniel patrick moynihan who stands -- who stood for presidential the ministrations. see the complete schedules online c-span.org or you can press the c-span alert button and have our schedules mailed to you. >> now, the inauguration of georgia's 82nd governor, nathan deal. he previously served as a member of the u.s. house where he was originally elected as a democrat and then switched to the republican party. held in atlanta and courtesy of georgia public broadcasting, this is close to one hour. >> ladies and gentlemen, please

be seated as we welcome mrs. cady deal. >> ♪ georgia and, georgia the whole day through ♪ just an old sweet song ♪ keeps georgia on my mind georgia 0, georgia ♪ comes a sweet and clear

arms reach out to me. ♪ other is look down to me. still in the peaceful dreams i see, the lead -- of the road leads back to you. i said georgia, 0 georgia, no

peace i find ♪ just an old sweet song teaches georgia on my mind [laughter] [applause] >> ladies and gentleman, the speaker of the house of representatives, the hon. david ralston. [applause] >> today, we celebrate a time honored tradition in our state government. the people of georgia, as they

do every four years have made a decision about who they wish to be there governor. our system has worked again. as we gather today, i know that you share the excitement that i have. that even in these challenging times, georgia has a bright, dynamic, by the teacher -- bright future. i see reasons abounding for us to be optimistic as we go forward. going forward as one state, united about what we share in common and growing too big to be torn apart by that which would keep us apart. i am excited about this new beginning. and today, we inaugurate nathan deal as the 82nd governor of the

state of georgia. nathan deal is one of the finest public servants that i have ever had the pleasure of knowing. he is a man of integrity and good judgment. he is my friend and i am going to be very proud to call him my governor. now, pursuant to a resolution adopted earlier today by both the house of representatives and the state senate, and in obedience to the constitution and laws of this state, i hereby declare that this joint session of the general assembly of georgia for the purpose of inaugurating the 82nd governor of georgia is hereby called to order. >> ladies and gentlemen, please rise for the presentation of the colors. this afternoon, and the colors will be presented by the georgia honor guard. [bagpipes play]

♪ [bagpipes play]

>> ladies and gentlemen, please remain standing as we honor america with the singing of her national anthem the anthem will be sung by timothy miller. >> oh, say can you see by the dawn's early light? what so proudly we hailed at the twilight's last gleaming ♪ whose broad stripes and rights farce -- bright stars ♪ through the perilous fight the ramparts we watched were so gallantly streaming ♪ and the rockets' red glare

♪ the bombs bursting in air nighte proof for the that our flag was still there say, does that star spangled banner yet wave freethe land of the and the home of the brave?

[applause] ♪ [bagpipes play] ♪ [bagpipes play]

>> please remain standing. dr. bill coates will not offer the invocation for the inauguration. >> mr. speaker, governor and mrs. perdue, lieutenant governor, and all of the representatives and leaders of our government and citizens of georgia, what an honor is to be here this day and to pray for our new governor, nathan deal, and for sandra deal. let us pray. >> dear lord, you said that we should live in peace, security and prosperity together. and you ordain government for that purpose. today, as a new leader takes the helm of our government, let peace, security and prosperity for all georgians be assured.

we thank you, o god, for the hon. nathan deal, whose life, experience and passion has prepared him for this moment. we are indeed grateful that he has been a servant of our state and our nation and that he has genuinely cared for those in his charge. here is a man who loves our state and our country and will now governed with a devotion to the law and admiration for justice. surely, your hand is in this, o lord. we are further grateful that nathan deal is a servant of yours. o one whose faith in you and your teachings runs deep in his life and practice. here is one who faithfully serve as your church and who is brought of mind and heart and will govern fairly over all of us. those of us with this faith, other faiths or no faith,

surely, your hand is in this overlord. our hearts to join also for sandra deal, whose live further inspires us. may she champion the causes of the least of these by her warmth and personality bless the governor's home. as nathan and center have been with each other for 44 years, amid a bless us that work and play in georgia. we ask that deal's administration and his administration be known for wisdom, mercy, strength and vision. in these years to come, made this governor lead us to solutions zero big problems and into an era of good will for

all. may it please you, o lord, to bless the house and family of your servant nathan deal and to bless this larger house of citizens who now look to him to govern with his personal integrity, his spirit of humanity, and his respect for all your creation. in the name of the holy one, known from abraham to christ, we pray in sincerity and good faith. a man. >> please be seated. ladies and and german, the governor will now present the seal to brian kemp. >> mr. secretary, the official seal of the great state of

georgia. >> governor nathan deal, i deliver to you the official seal of the great state of georgia. >> on behalf of the citizens of the state of georgia, i accept the great seal and i will return it to you for safekeeping. >> thank you. [applause] >> the hon. jason deal will now administer the oath of office to the governor elect, nathan deal. ladies and gentlemen, please rise. >> are you ready to take the oath? >> yes, i am. >> raise your right hand and put your left hand of the bible and

repeat after me. i, nathan deal, do solemnly swear that i will faithfully execute the office of governor of the state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution at their of and the constitution of the united states. so help me god. congratulations. >> thank you. [applause]

[gunshots] >> ladies and gentlemen, please be seated as a governor deal will administer the oath of office. [laughter] >> lieutenant governor, are you ready to take the oath of office? >> i am. >> raise your right hand and repeat after me. i do solemnly swear that i will faithfully execute the office of

lieutenant governor of the state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution thereof and at the constitution of the united states so help me god. congratulations. [applause] >> ladies and gentlemen, the

hon. the to and the governor of the state of georgia. -- the hon. lt. governor of the state of georgia. [applause] >> i have always said the true mark of a great leader is one that leaves a place better than he felt it. i want to thank the governor and his lovely wife for their stewardship of the state. you have been a humble leader and a faithful guardian of the trust the citizens of georgia placed in you. we will be forever in your debt for your service. [applause] it is an honor today to stand

before the people of georgia again to renew my oath to serve as lieutenant governor, to be surrounded by my wife of 24 years, like three boys, and so many of my family and friends make this event even more meaningful. four years ago when we began this journey together. today we start the next chapter. i am hubble by the faith you have entrusted to me. that fate will strengthen me as we set about the task that lies ahead. my journey through life has been shaken -- shaped many times by the people in my life both seen and unseen. some are present today and some are far away. to each of you, i will owe a great day -- a debt of gratitude. i remember one specific occasion

when i was a 15-year-old boy. my football coach wanted me to attend a fellowship of christian athletes football game. he told me how the players i watched on tv were going to be there. naturally i was beyond excited to meet and interact with my football heroes. then he told me the cost to attend the camp was $500. my heart sank. i knew i could not afford to go. when i told my coach this, he said, "go ask your pastor and see if your church can help in some way." the next sunday i did just that. i called mike -- i caught my pastor walking to the court with his wife and told him about the opportunity and how excited i was to go to a life-changing spiritual event. it is the my excitement. i thought he would give me some advice on how i could raise the money.

instead, without hesitation, he looked at his wife and he said, "write him a check." even to this day, i am moved as i reflect on that moment. to me, at the time it was not about a check, but to him it was an investment in my personal life. it was an outwardly act of believe in what i could become and the commitment to help me get there. today, the pastor is gone. he never saw me become lieutenant governor, but the memory of that act of kindness will stay with me forever. our lives are shaped by the investments people make in us. the pastor who finds value in the future of a young man -- the teacher who gives her students at the tools to pursue their dreams -- the banker who takes a risk on a dr.."

nor -- these people inspire us. they put their time and resources in places where they see opportunities for success -- or they see it the promise of a return for greater than the cost. we enrich their lives as well as our own when we deliver that return. just like my passport saw a bright future in me, i see a bright future for our state. a place full of the same opportunities for greatness. any challenges we face today pale in comparison to what we have overcome as a people and as a state. let us rise up with the spirit of optimism, remembering how georgia has been defined to hurt resilience and successes as the capital of the south. our people have always been inspired it to reach further than the imagination can dream,

understanding that greatness is not found in government, it is found in our people -- in the tryouts of the american spirit. the opportunity for every georgian to realize their fullest potential is now. by embarking upon a journey that will lead our state to an even higher level of prosperity. let us move forward from here with a commitment to lay aside those things which would hold us back. let us go towards our goals with an endurance that never fails, with our hearts focused on god, and our eyes trained on the future. as long as georgians continue to dream, georgia will continue to thrive. let us show the world how dreams become reality to the unique fabric of our people. when we invest in that great american spirit, we will celebrate by knowing that we

have set georgia on its rightful course towards the rising sun, shining ever brighter until that perfect day. thank you, and may god bless our georgette. -- georgia. [applause] >> ladies and gentlemen, governor deal was now administered the oath of office to each of georgia paul st. constitutional offices. the honorable brian kemp, secretary of state. >> if you would repeat after me -- i, brian kemp, do solemnly

swear that i will faithfully execute the office of secretary of state of the state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution thereof and the constitution of the united states so help me god. congratulations. .> thank you, governor perio [applause] sam olen.

>> if you would repeat after me -- i, samuel olen, do solemnly swear that i will faithfully execute the office of attorney general of the state of georgia and will to the best of my ability preserve, protect, and defend the constitution there of and the constitution of the united states so help me god. congratulations. >> thank you spir. [applause] commissioner in light of

agriculture, gery black. ofcommissioner elect agriculture, gary black. >> repeat after me -- i, gary black, do solemnly swear that i will faithfully execute the office of commissioner of agriculture of the state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution thereof and the constitution of the united states so help me god. congratulations. >> thank you peri. [applause]

>> commissioner elect of insurance, ralph hudgins. >> looking mighty pretty. >> thank you. >> if you repeat after me -- i, ralph hudgins, do solemnly swear that i will faithfully execute the office of commissioner of insurance of the state of georgia and will come out to the best of my ability, preserve, protect, and defend the and theution thereof constitution of the united states so help me god. congratulations. [applause]

>> state is due -- state school superintendent elect, john barge. >> if he would repeat after me -- i, john barge, do solemnly swear that i will faithfully execute the office of state schools superintendent of the state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution thereof and the

constitution of the united states so help me god. congratulations. [applause] >> commissioner in light of labor, mark butler -- ofmmissioner elect labor, mark butler. >> raise your right hand. i, mark butler, do solemnly swear that i will faithfully execute the office of commissioner of labor of the

state of georgia and will, to the best of my ability, preserve, protect, and defend the constitution thereof and the constitution of the united states so help me god. congratulations. [applause] >> ladies and gentlemen, mr. timothy miller will sink "too god be the glory." -- to god be the glory." ♪

how can i say thanks for the things you have done for me the voices of a million angels cannot express my gratitude all that i am and ever hope to be i owe it all to thee to god be the glory

to god be the glory to god be the glory for the things he has done god, he has saved me he has raised me to god be the glory for the things he has done god lets me live my life

let it be pleasing, lord, to thee should i gain any praise let it go to god --h his god, he has saved me to god be the glory for the things he for the things for the things he has done

♪ ♪ [applause] >> ladies in juggling among the honorable nathan deal, 82nd

governor -- ladies and gentlemen, if the hon. nathan deal, 82nd governor of the state of georgia. [applause] >> thank you. thank you, you all. thank you. to god be the glory. thank you. thank you. lt. governor cagle, speaker ralston, governor perdue,

members of the general assembly, members of our congressional delegation, members of the judiciary, members of the consular corps, my fellow georgians. on this second week of the second decade of the 21st century, my wife sandra and i enter the service of our native state with excited expectancy, sincere humility and unwavering resolve. as we stand here in this beautiful capitol building, i recall my first visit here as a fifth grade student at sandersville elementary school. our class rode the nancy hanks train to atlanta and visited here and the cyclorama. for many of us it was our first train ride and our first visit

to our capitol city. much has changed in the more than a half century since my first visit here, but my sense of awe and appreciation of our history has not. the historic journey on the road of self-government which our nation and state embarked upon almost two and one half centuries ago has taken us through the battlefields of revolution, civil war and world wars. throughout this "experiment in democracy," there has been a healthy skepticism by "we the people" about the role of government which we have "ordained and established." the lingering pain of this "great recession" in which we are still engulfed has underscored the urgency of re-examining the role of government in our lives.

the evolution of society has infringed on much of the elbow room our ancestors enjoyed and government has been asked to regulate our actions as we bump into each other in our frantic search for success. in times of economic prosperity, we often ignore the costs and inconvenience of governmental paternalism. but in times such as these, with more than one of every ten of our employable citizens out of work, we must justify every cent that government extracts from our economy. therefore, we must concentrate our attention and our resources on the core responsibilities of government. our state constitution provides that "government is instituted for the protection, security, and benefit of the people..."

keeping our citizens safe, therefore, is one of state government's primary responsibilities. the challenge is great. presently, one out of every thirteen georgia residents is under some form of correctional control. it cost about three million dollars per day to operate our department of corrections. and yet, every day criminals continue to inflict violence on our citizens and an alarming number of perpetrators are juveniles. college students should be concerned about their grades not whether they are going to be mugged on their way home from class. visitors to our cities should be treated as welcomed guests and protected. families should not live in fear of gang violence and drive-

by shootings. but most of all, our dedicated law enforcement officers must not be targets for criminals. [applause] anyone who harms one of them harms us all, for they embody the constitutional mandate that government provide us with protection and security. breaking the culture of crime and violence is not a task for law enforcement officials alone. parents must assume more responsibility for their children. communities must marshal their collective wills; civic and religious organizations must use their influence to set the tone for expected behavior.

for violent and repeat offenders, we will make you pay for your crimes. for other offenders who want to change their lives, we will provide the opportunity to do so with day reporting centers, drug, dui and mental health courts and expanded probation and treatment options. as a state, we cannot afford to have so many of our citizens waste their lives because of addictions. it is draining our state treasury and depleting our workforce. [applause] as governor i call on local elected officials, sheriffs and local law enforcement personnel to work with me and state law enforcement officers to break

this cycle of crime that threatens the security of all law abiding citizens. one of the other core responsibilities of state government is the education of our children. this is an undertaking that has been the primary focus of several of my predecessors in this office. despite their best efforts and that of dedicated teachers and educators all across our state, our public education system in grades k through 12 has failed to make the progress we need. this failure is a stain on our efforts to recruit businesses to our state and is a contributing factor in the frightening crime statistics previously mentioned. high dropout rates and low graduation percentages are incompatible with the future i envision for georgia.

we are blessed with many schools that are producing excellent results and it is their example which we should attempt to replicate all across the state. we are also blessed with dedicated teachers and principals who work very hard to improve the lives of the young people they teach. in addition, we have many support staff and dedicated parents who are an important part of our education system. i thank them for their service and encourage them in these difficult economic times. i will do my best to reward their efforts. improving public education is not just the responsibility of educators. therefore, i call on all georgians to rededicate themselves to the improvement of education. i ask parents to read to their young children and cooperate

with teachers so that educational excellence is a family goal. i ask teachers and educators to recommit themselves to their profession and be willing to embrace new ideas. i ask local school boards to listen to the opinions of parents and teachers as they adopt education policies. and i ask the members of the general assembly and our state school board to work with me to restore discipline in our schools, eliminate bureaucratic nonsense, adopt fair funding mechanisms and reward quality and excellence. if we do these things, we will -- [applause]

convey the magic of learning to our children and restore the joy of teaching to our educators. [applause] one of the bright stars of education in our state is the hope program. this initiative of former governor zell miller has greatly enhanced the pre-k, technical college and college and university opportunities for our young people. as the scope of these programs has expanded and as the number of participants has increased, the financial reserves are being rapidly depleted. i am dedicated to honoring the promise that has been made to our students through hope and will work with the general assembly to tailor the program to the financial realities we

face today. i was not elected to make easy decisions, but difficult ones. in this legislative session we will save the hope for future generations. [applause] thank you. another core responsibility of state government is transportation. with an expansive land mass that is populated by one large metropolitan area, several medium-sized municipalities, and many smaller cities and rural counties, our transportation needs are very diverse. with our ports at savannah and

brunswick, we are part of an expanding international trade community. we will do our part to deepen the savannah port in order to accommodate the larger vessels that will soon pass through the panama canal. but we must do more. our rail capacity and cargo routes must be improved and expanded. we must not miss this opportunity to provide jobs for georgians. [applause] highway congestion, especially in the greater atlanta area is a deterrent to job growth in the region.

if we do not solve this problem soon, we will lose the businesses who want to expand or locate in our state. i am dedicated to working with all elements of government to improve our transportation system and i call on all georgians to join us. we must put aside some of the regional differences of the past and work for the common good of our state. as our state continues to grow, the demand for water has likewise increased. as governor, i will continue to pursue negotiations with alabama and florida to reach a resolution of the long standing dispute over the use of water in our federal reservoirs and our major rivers. we will develop regional reservoirs and continue our conservation efforts. we have been blessed with abundant water resources and we must use them wisely.

georgia cannot achieve its potential if its people are not healthy. as governor, i will resist the efforts of the federal government to mandate its solutions on our people, our businesses and our state government. [applause] we will do our part to provide healthcare to our most vulnerable citizens, but government cannot make or keep

us healthy. the primary responsibility for good health rests with individuals and families. [applause] we can help cultivate a culture of wellness in our educational programs and offer incentives in medicaid and the state health insurance program, but it is only individuals and families that can make healthy lifestyle choices. there are many other functions of our state government, but i consider these to be the most important. each in its own way is a part of the greatest challenge we face, the creation of jobs for our citizens. if we make georgia the best place in the country to live, will grow and expand and we will

achieve real prosperity. [applause] that is my goal and the actions of my administration will always be focused on it. so today as we embark on this journey to lead our state forward, i call on all georgians to assume responsibility for themselves and their family. i call on communities and civic and religious organizations to continue and expand their efforts to serve the needs of people in their area. state government cannot and should not be expected to provide for us what we can provide for ourselves.

[applause] let us refocus state government on its core responsibilities and relieve our taxpayers of the burden of unnecessary programs. let us be frugal and wise. let us restore the confidence of our citizens in a government that is limited and efficient. together let us make georgia the brightest star in the constellation of these united

states. [applause] may god bless you and our great state of georgia. [applause] thank you. [captioning performed by national captioning institute]

[captions copyright national cable satellite corp. 2011] >> we now take you to new mexico where newly elected governor, susanna mel martinez, makes an address. she is the first female governor of new mexico. she discusses crime and educational issues. >> thank you. lieutenant governor, senate president pro tem, mr. speaker, democratic and republican leaders, esteemed members of the new mexico legislature, honorable members of the judiciary, former governors, distinguished guests, the state's first gentleman, my husband, chuck franco, my fellow new mexicans, thank you for the high honor of addressing you this afternoon.

it is my privilege to stand before you as new mexico's 27th governor. [applause] i would like to begin by taking a moment of silence to remember our neighbors in tucson, arizona, who were the victims of a brutal and heinous act of violence. we grieve for those whose lives were cut short. and we pray for those who have lost loved ones and are recovering from their injuries. a moment of silence for them. thank you. today, we begin to write a new chapter in new mexico's history. by working together, we will take our state in a new direction -- embracing bold change over the status quo,

choosing progress over complacency and putting aside partisan differences to achieve lasting results for new mexico families. as i said during the campaign, the challenges that confront us cannot be overcome by simply replacing one party with another. they can only be overcome when republicans and democrats - the governor and the legislature - come together to put new mexico first. [applause] i am committed to doing just that, and i ask you to join me. it's easier to take the reins when times are good. when revenues are high and jobs are plentiful. but, that's not the hand we are dealt. we face a tough road ahead, one

which demands shared sacrifice. but that tough road can turn into a path to prosperity if we have the courage to take decisive action. as i said in my inaugural address, these challenges shouldn't scare us. they should inspire us to step forward and prove equal to the task. this is what new mexicans have done in the past. and this is what we will do now. [applause] that is why during these difficult times, we must be grateful for this opportunity to lead because it has been given to us at a time of great consequence. at a time when it matters most.

and with that, we must turn to the issue that supersedes all others when it comes to the state of the state. and we must not sugarcoat it -- new mexico is in a state of financial crisis. we face an historic budget deficit that will require candor to address and courage to resolve. no more shell games. no more rosy projections. we must tell new mexicans the truth -- our financial house is a mess and it's time we clean it up. [applause]

the day i was elected governor, the state's budget deficit was estimated at just over 200 million dollars. a week later, it doubled and grew to almost half a billion dollars. in the past, new mexico's serious budget problems have been papered over with unrealistic projections and temporary infusions of federal stimulus dollars. this allowed politicians to shirk responsibility and avoid tough decisions. but i am here to tell the people of new mexico that the days of kicking the can down the road are over. [applause] we have all been elected to take action. we may not be responsible for creating this financial crisis

but we are all responsible for solving it. during difficult economic times, balancing the budget is not easy, but how we choose to go about the task is critical because our budget blueprint is a statement about our values. that's why my budget protects core priorities like classroom spending in education and healthcare for those most in need. by making cuts elsewhere, my budget only requires the education bureaucracy to trim 1.5 percent from the administration. only 1.5 percent. now, you've heard some special interest groups say this can't be done. they claim there is no waste in the bureaucracy. not even 1.5 percent.

i don't buy it and neither do the people of new mexico. new mexicans are not fooled when bureaucrats, whose salaries are many times that of the average teacher, claim the only place to cut is from the classroom. they're not fooled when a school district spends hundreds of thousands of dollars on pr staff and then claims it has nowhere to cut but the classroom. or when school districts waste education dollars hiring lobbyists but then claim that the budget must be balanced by cutting teachers. the truth is, the waste is there and it must be eliminated. [applause]

in order to protect classroom spending in education and basic health care for those most in need we must find savings elsewhere. that's why i propose reducing the state's film subsidy from 25 percent to 15 percent, which is where it first started. this has been incorrectly referred to as a tax credit. it has nothing to do with taxes. [applause] the way it works is when a film is made in the state, new mexico taxpayers cover 25 percent of the costs. it's a simple and straight- forward subsidy - 25 cents on the dollar. and it's been taken advantage of ... one film company spent $100,000 chartering an actor's private jet and new mexico taxpayers paid $25,000 of it. we have a responsibility to see

how each and every tax dollar is being spent ... how many jobs are being created and whether we're getting a good bang for our buck. reduced, suspended or completely eliminated their film subsidies. studies found them too expensive for the few jobs they created. i support the film industry and support maintaining the incentive at 15 percent. new mexicans are facing an historic budget deficit, i cannot support subsidizing the expense of hollywood by cutting programs like child care services for working moms.

[applause] to protect priorities, we must do away with the waste and excess that has defined the past and whose absence will improve our future. and i began by reducing the overall salaries within my percent. i will reduce the number of political appointees in state government by at least 20 percent. [applause] at cutwastetips@state.nm.us. new mexicans have done just that. many of those who emailed suggested cutting unnecessary

state vehicles. i agree. moratorium on all new state car purchases, except for law enforcement. we must all do our part. at a time when new mexicans are struggling to make ends meet their governor should not be leading a life of privilege. that's why i cut costs at the governor's residence by 55 percent - permanently eliminating the positions of two personal chefs. [applause] the first gentleman will just have to help out with the cooking. he makes eight main bologna sandwich.

-- a mean bologna sandwich. [laughter] and we will get rid of that ultimate symbol of waste and excess, we will sell the state's luxury jet. we must remember that the long- term solution to our budget woes is economic growth. we increase revenue by helping small businesses create new jobs - not by government creating new taxes. let me speak plainly -- new mexicans are not under-taxed. the government has simply over- spent. [applause]

i applaud the legislative finance committee for putting forth a budget proposal that doesn't include tax increases and doesn't try to raid the permanent fund. unfortunately, some are still pushing tax hikes -- doubling the tax when you buy a car. taxing job creators. even taxing the internet. to make them sound better, some call them "revenue enhancements." they can be called many things but they will all be vetoed. hurting, many are out of work. many more are only one paycheck away from losing their car or their home.

we owe it to them to make the necessary changes to turn our economy around. i've long said that government doesn't create jobs. government creates the environment where small businesses can create those jobs. [applause] we must recognize that in a global economy, businesses will choose to locate and expand in areas that encourage - not impede - job growth. when a company is deciding whether it will operate in albuquerque or denver... in roswell or midland... in farmington or laramie, the down to the state's tax structure and regulatory policies. for too long, we've seen jobs leave new mexico because neighboring states are more business-friendly and it's not

just our jobs we're losing to neighboring states. too many of our sons and daughters are forced to move out of new mexico in pursuit of those jobs. [applause] if our state is going to compete, if we're going to ensure our children can find a good paying job close to home when they graduate, then new mexico must become more business-friendly. [applause] less than two weeks ago, i announced that union pacific railroad will move its hub from el paso, texas to santa teresa, new mexico. [applause] more than 3,000 jobs will be created for the construction with 600 permanent jobs.

with texas and eliminate the tax on locomotive fuel. but we must do much more than certain industries. that's not the "be all and end all" of economic development. we must set the stage to make wholesale changes to our tax structure and become more competitive with our neighbors. that's how we'll help all small businesses grow. role is to provide a hand-up, hand-out. [applause] when people are out of work, we must provide a safety net for

the unemployed worker to ensure people can continue to feed their families and meet the needs of their children. but we must do more than just hand out unemployment checks. we must also help people get back to work. that's why i propose encouraging small businesses to hire unemployed workers by covering part of their salaries for the first six months through the unemployment fund. [applause] this will help the state by getting people off the unemployment rolls, it will help small businesses by making it easier for them to grow. and it will help families by getting more new mexicans back to work. and we must refocus our mission outward - on helping small businesses grow. that's why we'll cut wasteful programs that do little for job creation. and redirect resources to open an office of business advocacy

within the economic development department. we'll do more, with less. much like caseworkers in a congressional office, this office will help small businesses break through regulatory roadblocks. if a small business needs help with a permit or license, this office will help. if a company is looking to locate in new mexico and needs research, this office will help. the big corporations have teams of lawyers and accountants to help them. it's the small businesses - the mom and pop shops - the small

>> one of the greatest and costliest challenges small businesses face is the fact each agency creates it's own maze. when a small business needs to get a permit from one state agency, they must abide by one process. and when that same small business needs a permit from another state agency, the process is completely different and they have to jump through a whole new set of hoops. so, i propose standardizing these administrative practices by passing the red tape reduction act. this will help small businesses understand regulatory guidelines and make complying with them less expensive, less time- consuming and less complicated. time is money.

and the more money a small business saves, the more employees they can hire. that's why the very first executive order i signed created a small business task force to review regulations over the next 90 days. we will maintain common-sense protections for consumers, workers and our environment. rational regulations will remain, but irrational red tape will be cut. [applause] to be clear, regulations such as pit rule 17 and cap-and-tax do not move us toward a cleaner environment. instead, they move jobs to the other side of the state line. new mexico is a beautiful state and protecting the environment and developing our natural resources are not mutually

exclusive goals. we can achieve both and we must achieve both. but that requires basing political ideology. but turning our economy around involves more than just tax reforms and cutting red tape. in order to attract and retain the jobs of tomorrow, we must make education reform a priority today. when it comes to educating our children, we can no longer throw more and more money at the same system and expect different results. a recent report by education -- [applause] education week gave the system a failing grade that's an "f" on student achievement.

unless we take decisive action to improve our schools, history will judge us harshly and rightfully so. to reverse years of decline, we must place a command-focus on student performance and progress not just on how much money we're spending. too many are afraid to focus on student achievement, so we shuttle too many kids to the next grade, even if they haven't learned the basics. that implicitly tells little boys and girls that it's okay that they don't achieve. my fellow new mexicans, telling children, regardless of how subtle, that they are not capable of achieving is morally wrong. we must end the culture of low expectations. [applause]

[applause] >> we must end the culture of low expectations. stop accepting failure. this session, i propose a comprehensive reform package that will transform our schools. our "kids first, new mexico wins" plan is comprised of four key initiatives. the bureaucracy and into the classroom. [applause] today, only 61 cents of every education dollar makes it to the classroom. wasting money on lawyers in the public education department in santa fe does nothing to help a child read in a farmington classroom.

by cutting waste and inefficiency in the bureaucracy, we will increase the percentage of funds that reach the classroom. so our kids will benefit. second, we will adopt an easy- to-understand, easy-to- implement system of grading. schools will be assigned letter grades a, b, c, d or f. and these grades will be posted to the web. that's real accountability that will yield real results. greater accountability will ensure we identify struggling students in all grades. and focus attention on the lowest-performing 25% of students. we will get them help immediately. just as we'll target struggling students with immediate help, so too will we target failing schools with immediate intervention. currently, it takes approximately five years to identify and intervene in a failing school.

five years. we can't wait that long to help these kids. that's why they drop out. third, we will end social promotion, the practice of passing children from one grade to the next before they have mastered the basics. the new mexico "ready for success" initiative will get struggling students the help they need before we pass them on to the next grade. we aren't doing our kids any favors by thrusting students who aren't ready to advance into an environment where we know they have little to no chance for success.

those kids fall further and further behind, they start seeing their dreams slipping out of reach. they get frustrated and disappointed and many give up. but by identifying a student's challenges in the early grades, we can give them the help they need and lay a strong foundation as they move to the next grade. mexico's best teachers. the most important people in the lives of our students are parents and teachers. [applause] the quality of our teachers is the key to improving our quality of education. a system that evaluates and

rewards excellence will attract the best and brightest to new mexico classrooms. as i stated just days ago, "nothing we do is more indispensable to our future well-being or will receive more attention from my administration than guaranteeing our children a quality education." [applause] just as i view educating our children as a core function of government, i also believe providing public safety is one of our central responsibilities. for 24 years, i dedicated my life to being a voice for those who couldn't speak for themselves. i specialized in prosecuting child abuse and child homicide cases. and i saw first-hand how

criminals who got off light, later ended up committing unspeakable acts of violence. that's why i oppose balancing the budget by opening the prison gates and letting felons out of prison early. [applause] we must always strive toward making our state a safer place. that's why today, i am calling for the expansion of katie's law. as many of you know, katie's law is named after katie sepich, a new mexico state university student who was brutally attacked, raped and murdered in 2003. i personally prosecuted that case and convicted the killer. the only reason that killer was caught was because of a dna match years later. that's why we worked so hard to pass katie's law in the first

place. the champions for that cause are the parents of katie, dave and jayann sepich, and they are with us here today. [applause] their efforts led to the passage of katie's law in new mexico and similar laws across the country. today, katie's law requires criminals arrested for certain felonies to submit to dna testing. it is a great achievement, but more is needed.

this session i call on the legislature to build on the success of katie's law by expanding it to require all those arrested for a felony to submit to dna testing. [applause] we'll solve more cases, take more criminals off the streets and provide more justice for those who can no longer speak for themselves. there are other areas in crime where we can enact tougher reforms. we must target repeat drunk drivers. it seems like every time we pick up the paper we read of another repeat drunk driver who has racked up yet another dwi. and we ask, "what is he still doing behind the wheel?" one reason is that our laws for repeat drunk drivers are not strong enough.

we should seize vehicles of repeat drunk drivers and increase mandatory prison time. let's get them off the streets and away from our families. [applause] we should also send the message that some crimes deserve the ultimate punishment. when a monster rapes and murders a child or a criminal kills a police officer, the death penalty should be an option for the jury. [applause] that's why i am calling on the legislature to repeal the repeal and reinstate the death penalty. [applause]

and as we strive to make these bold changes and enact reforms, as we ask new mexicans to trust us, we must set an example with honesty and integrity. in state government has eroded. in recent years, too many have violated the public trust. politicians have treated taxpayayayons as their own and rewarded cronies. decisions have been made to benefit the powerful and the connected, while new mexico families pay the price. it is our shared responsibility in elected office.

i promised in my inaugural address that members of my administration would serve no interest other than that of the public. that's why i propose prohibiting members of my administration and the legislature from lobbying for two years after leaving state government. there must be no question that public officials are serving only the interests of the public, not positioning themselves for a big payday with a special interest group. i signed an executive order prohibiting state agencies from hiring lobbyists. representing the people of the state is the role of elected and appointed officials not lobbyists. going further, i propose tougher punishments against public officials who break the law.

[applause] corruption is a crime, not an ethical dilemma. [applause] those guilty of corruption are criminals and they should be treated as such. first, we must institute criminal penalties for public officials who know about, but fail to report, pay-to-play activity. public officials don't have the luxury of turning a blind eye. second, when public officials are found guilty of corruption they should be immediately removed from office, receive mandatory prison time and be forced to surrender their

pension. [applause] third, it is imperative that we formally adopt legislation that prohibits the state investment council, or any state investment agency, from paying finder's fees to those who help direct state investments. "finder's fees" can easily become nothing more than kickbacks pay-to-play with the pensions of our teachers and police officers. it must be banned and we must get their money back. and fourth, it is time to establish a public corruption unit in the department of public safety.

allegations of public corruption and help bring to justice those who violate the public's trust. [applause] state government in an open and transparent manner. for that reason, i signed an state agencies from frivolously block open records requests. exactly what their government is doing. in addition to fighting corruption and increasing transparency, another way to earn back the trust of new mexicans is to start applying common sense in the laws we pass and the policies we pursue. that means when people have to show a photo id to rent a

movie, it's not too much to ask to show a photo id to vote. [applause] and if we're going to tell new mexicans we're serious about stop giving driver's licenses to illegal immigrants. [applause] my fellow new mexicans, we face many challenges.

times are tough. but while the challenges are daunting, the opportunities are real. the opportunity to put aside our partisan differences. the opportunity to put our financial house in order. the opportunity to truly reform education by putting students first. the opportunity to create a business-friendly state where small businesses flourish and children no longer have to leave new mexico to find a good job. so we must not be intimidated by the challenges. instead, we must have the courage to confront them and the wisdom to seize the opportunities they present. as i said during the campaign, it's our state and working together, we will take it back.

thank you. god bless. and let's get to work. [applause] >> the senate returns to session monday as they proceed to general speeches. they will re-authorize the federal aviation administration. they are working to improve

the safety of air transportation. senators could bring a bill that deals with small business. and the house is out of session adnd will return february 8. watch it live on c-span. >> sunday, on c-span's "road to the white house," tim pawlenty spoke at a politics and eggs event in new hampshire. a year from now is the first in the nation primary. tune in to "road to the white house," sunday at 6:30 and 9:30 pm. >> jay carney is the new press secretary. online ate about him

the c-span video library. with every program since 1987. 60,000 hours. now the weekly addresses. obama visited an energy company focusing on solar power. he gave his address to discuss business inovation. he is followed by ron johnson with the republican address. he talks about the cost of government on the economy. >> i'm speaking to you today from manitowoc, wisconsin, where i'm at an innovative company called orion energy systems. just a few years ago, this was an empty warehouse. a major employer had shut down

this factory, moved its operations abroad, and took a lot of jobs away from this town. but today, as you can see behind me, this is a thriving enterprise once more. you are looking at a factory where 250 workers are building advanced clean energy systems state-of- the-art technologies that use solar power and energy efficiency to save farms and businesses thousands of dollars on their utility bills. i'm here because this business and others like it are showing us the way forward. and in the coming days, i'll be shining a spotlight on innovators across america who are relying on new technologies to create new jobs and opportunities in new industries.

that's what companies like orion are doing. and that's how america will win the future by out-innovating, out-educating, and out-building our competitors. we'll win the future by being the best place on earth to do business. that is what we are called to do at this moment. and in my state of the union, i talked about how we get there. it starts by making sure that every single child can get a good education and every american can afford college or career training. because that's what will help light the spark in the minds of innovators and ensure that our people have the skills to work for innovative companies. we also need to make sure that america can move goods and information as fast as any of our competitors, whether on the road or online. because good infrastructure helps our businesses sell their products and services faster and cheaper. we have to reform our government and cut wasteful spending, so that we eliminate what we don't need to pay for the investments we need to grow, like education and medical research. and as we can see here in manitowoc, we need to ensure that we are promoting innovation especially in promising areas like clean energy. this is going to be key to growing our economy and helping

businesses create jobs. orion, for example, was able to open with the help of small business loans and incentives that are creating demand for clean energy technologies like wind power and solar panels. that's why i've proposed a bigger tax credit for the research that companies do. and to give these companies the certainty of knowing there will be a market for what they sell, i've set this goal for america: by 2035, 80 percent of electricity should come from clean energy. this is going to help spark innovation at businesses across america. this is going to spur new products and technologies. this is going to lead to good, new jobs. and that's how we win the future by unleashing the talent and ingenuity of american businesses and american workers in every corner of this country. so to those who say that america's best days are behind us, let them come here, to manitowoc. let them come to this once-shuttered factory that is now bustling with workers building new technologies for the world.

let them come here to see the incredible promise of our country. this is the future. and it's bright. thank you. >> hello, my name is ron johnson. i'm the newly elected senator from the great state of wisconsin. for those of you who don't know me, this is the first elective office i have ever sought or held. the reason i ran is simple and straightforward. we are bankrupting america, and i thought it was time for citizen legislators to come to washington to help those individuals already here that are seriously facing that reality. for the last 31 years, i have been running a plastics manufacturing plant in oshkosh, wisconsin. as a manufacturer, i have learned to identify and attack the root cause of a problem, not spend my time addressing mere symptoms. huge deficits, slow economic activity, high unemployment, and woefully inadequate job creation are severe symptoms of the problem. they are not the root cause. the ever expanding size, scope, and cost of government is.

this is what we must address. this is what i hope the president has come to realize. i hope the president and his allies in congress accept a simple truth: big government is blocking job creation, not helping it. the sooner washington ends its dependence on more spending, the sooner our economy will see real growth. i bring the perspective of someone who's been creating jobs, meeting a payroll, balancing a budget, and living under the rules, regulations, and taxes that politicians here in washington impose on the rest of us. i know firsthand the incentives and disincentives, the intended and unintended consequences of government intrusion into our lives. unfortunately, when it comes to creating jobs, government is rarely helpful. government tends to make it harder and more expensive to

create jobs. we need to make job creation easier and cheaper. recently, president obama talked about the harmful effect of government overregulation. highlighting this problem is long overdue. the small business administration estimates that government regulations cost our economy $1.7 trillion annually. according to the irs's own figures, it cost taxpayers 6.1 billion hours to comply with tax code just last year. this is a staggering amount of money. and it is money that is not available for consumption, business investment, or job creation. that's a problem. the president often speaks of making investments in our economy. if he means allowing taxpayers and businesses to keep more of their hard earned dollars, and providing them the freedom to invest where they choose, i'm all for it. unfortunately, i'm afraid he means more government spending and more government control. the lesson we all should have learned from the pitiful results of the $814 billion stimulus bill, is that growing government

does not grow our economy or create long term, self- sustaining jobs. it is the private sector that creates jobs. history proves that governments do not know how to efficiently allocate capital. millions of private individuals, acting independently within the free market system, do it best. we need to encourage and incentivize entrepreneurs, not tax and regulate them out of business. we've also heard the president talk about controlling spending and the deficit. if he's serious about it, he should present a serious plan. if he does, i feel confident republicans will be willing to help him get it passed. in his response to the state of the union address, my fellow wisconsinite paul ryan -- a leader in tackling our spending problem -- did a great job of expressing our willingness to work with the president, and pointing out how critical it is for us to act now, before it's

too late. the issues of spending, deficits, and the debt will be central in the upcoming debate over the 2011 spending bill and the need to raise the debt ceiling. this will be the moment of truth when talk and rhetoric must be turned into action and tangible results. real reductions must be part of the solution. as a business person, i'm used to getting things done. i came here to accomplish something, to help solve the very serious problems facing our nation. i also came to washington with a deep reverence for the genius of our founding fathers, what they passed on to us, and what they hoped we would preserve. their fight for freedom, their belief in the power of the free market system, and their vision of a limited government is what has made america the greatest nation in the history of mankind. it is our honor and our duty to be worthy stewards of this legacy. it is our turn to act responsibly.

thank you. >> in the moment, the financial crisis inquiry commission. then the oral arguments on if corporations have privacy rights. and later, military commanders testify on cost overruns and other contracting issues. >> sunday on "newsmakers," patrick mchenry on the request to seek bankruptcy. but he oversees the subcommittee will let the bell labs. he is interviewed but neil arlin of the "washington post." >> it is at 6:00 p.m. eastern on

c-span. >> this sunday, we will talk to former president bush about his life, and his new book. here is a portion of the interview. >> scott mcclellan wrote a book that was critical. >> he was not a part of major decisions. this is not about personalities or gossip, or selling scores. i did not think that he was relevant. >> see the entire interview on q&a. >> next, a discussion on the release of a final report by the financial crisis inquiry commission, which said that the crisis could have been avoided appearing ad ho -- could have b.

commissioner with the fiscal crisis inquiry commission who released their report earlier this week and also wrote an op ed in the "wall street journal" on thursday. what caused the financial crisis. so let's start there. what caused the financial crisis? guest: i wrote this with keith hensy and bill thomas, two cocommissioners, and we really point to a list of ten factors. and i think the key there is that there isn't some simplele story that you can say it was this or that. it was a very complicated event driven a lot by some international condition,, credit bubbles, housing bubbles, including the u.s. once the housing bubble broke it spread to the rest of the financial system through a series of problems with securitization, these complex securities, the credit rating agencies, and ultimately big

financial institutions who did not understand the risks on their books and once they understood what kind of trouble they were in we had a panic of the most old-fashioned type. host: you write in november 2009 article, martin baily and douglas elliott describe the three common naretives about the crisis. the guest: commissioner peter wolson has argued in public and with the commission pretty vosiffrussly that the pretty most important thing that happened was they were told to issue mortgages to unqualified borrowers and that was a stated policy of the united states to lend to people who couldn't repay and that the number of such mortgages and the dollar

value was so large that when they went bad that was it. we disagree. we think that simple narrative under scores other problems. there's other problems on wall street. it focuses just on the u.s. and a lot of this is global in nature. host: why would anyone want to force these home loans on people they knew couldn't pay them back? guest: that's part of the question. you have -- it had been a policy of both republicans and democrats to give americans homes. we have mortgage interest deductions, we have loan guarantees, we have subsidies for borrowers. and politicians love the american dream of a family in a home. so certainly that contributed. but we don't think that's the only cause of the crisis. host: you also wrote that the second narrative blames wall street and its influence in washington.

so why would they intentionally jeopardize the financial system that in essence pays for their existence? guest: we don't agree with that because it doesn't make a lot of sense. you're going to find lots of bad actors and bad actions, and that's indisputeable. but we don't think you can make the argument that wall street alone, both through unregulated greed and then purchase of power in washington, created this crisis. it would be a self-defeating move. host: you also talk about a third narrative that you subscribe to, a messier story that emphasizes both global and failures in u.s. policy and super vision. were there enough bubbles and

sort of strange economic activity going on outside of the u.s. that had someone been paying attention they could have seen that it was coming to our shores? host: there was an active debate. if you go back to 2005, 2006, 2007, was it a bubble, was it sustainable? people were looking but no one i think grasped in the moment the magnitude and potential fallout from this. and the reason we're nervous about simple explanations is while they're appealing and you can go on tv and do them, it leads you do you know the wrong path. the one there says it's wall street greed misses the fact that fannie mae and freddie back were ordered to do some things. the orts one that says we have to regulate less misses the problems that mortgages were given to people who could not repay them.

and the entire focus on the u.s. miss the fact that in england we had failures of big banks and the government had to take them over in the same way we had a bailout. and spain had a bubble. the list goes on and on. host: at the time released the chair phil had some comments that he made regarding the report and some of the things that were inside the report. he outlines what he says. and then we'll get a response. >> we concluded first and foremost that this crisis was avoidable. despite the expressed view of many in the circles that the crisis could not have been foreseen, there were many, many warning signs that were ignored or discounted. second, we found widespread failures in financial regulation. third, our report describes dramatic breakdowns in

corporate governance and risk management. fourth, we detail how the explosive brood capessive borrowing risky investments put our financial system on a collision course with crisis. fifth, we concluded that key policy makers, our government, was ill prepared for this crisis. and that their inconsistent response added to uncertainty and panic. and finally, this report explains how breaches in accountability and ethics became widespread at all lels during the run-up to the crisis. guest: many of the things that the chairman mentions there are in our dissent. our real points of disagreement come in two forms. if you read the 500 page put out it blames everything -- if everything caused the financial crisis then nothing did. you have to answer the charge that congress gave us which is to say what things in the past

were crucial and necessary in order to have a crisis of the proportions that we experienced. and we didn't see that. the second is the notion that the crisis was avoidable suggests that people were smart enough to see it and drove straight toward it anyway. and we would say we disagree with both. host: we're talking about the fiscal condition of the u.s. with douglas holets akin, currently a commissioner with the financial crisis inquiry commission. if you want to get involved in the conversation, our numbers are on the bottom of your screen. we also showed you very briefly the report, the financial crisis inquiry commission report. and if you would like to read it you can find it on their website. our first call comes from clearwater, florida on our line for republicans. go ahead.

guest: i wanted to comment about the deficit and i wanted to get his opinion on my idea that basically take care of this entire deficit. now, right now we have 47% of wage earners don't pay any taxes. so my solution would be a complete simplification of our tax code. you would have a $10,000 for individual, $20,000 for a married couple, and $3,500 per child. no credits no anything. and the only other deduction you can have is the 10% charitable donation deduction. and then you start the bottom bracket at 5% and end at 25%. anything over that deduction, you pay based on a graduated tax form. host: we'll leave it there. your thoughts. guest: the caller points out

that the u.s. tax code is a disaster area and a lot of people agree with that. there have been two major commissions to address the u.s. budget deficit, one appointed by the president, one a private sector effort. both of them concluded that as part of addressing the deficit you should have tax reform, that was the route to higher revenues. but also importantly pointed out by saying you could not solve it by taxes alone. that the problem was on the spending side. host: craig, you're on the washington journal. caller: i have two comments to make. one is about as every republican knows that wall street was bundling those high risk home loans together and selling them. he can sit there and give that republican response that it wasn't wall street's fault for the financial crisis. it's a talking point. they've rigged the system.

and the second thing, this guy calls himself an economist. they've been pushing this free trade stuff for 20-some years which has really worked out for us. and now, he supported the bush tax cuts. all the republicans can talk about is cutting this and cutting that when eisenhower was president of high tax rate was 92%. how much more, sir, how much more do you want to take out of the middle class of america? . .

aig, the testimony was striking. the risk officer did not know that in the contract, if securities went down in value, they would have to post cash. when goldman asked for a billion dollars, thye didn't have it. >> new orleans, louisiana. you are her ewite with douglas holtz. werehe bankers acting like they were running casinos. the bankers were acting like when they removed the regulations, why did they not repalclace those?

kept going up. you could sell it for more then you landed on it. -- lended on it. guest: there were stories of people buying homes in flipping homes. that was very real. in some of the testimony, we had wall street executives say they never thought housing prices would go down. that was wrong. it was not really taking care of risk. the job of a financial executive is to manage risk. that is what they do. i think the housing issue pervaded every one. >> the gambling analogy comes up a lot.

the callers have mentioned this a couple of times. gamblers will tell you that to the house always win. who is the house in this case? guest: everyone lost. the big financial companies, many went out of existence. many had to become bank holding companies. executives lost their jobs. the economy got hammered. the average american got hurt. there are no winners here. that is the sad lesson in history. host: barbour, democrats. caller: our country wants to take from in the middle class to pay the debt off. about fannie mae, many say they

gave house as to the poor people. if you look closely, they gave it to people that had money that could flip houses. they wanted them to stay in their houses. fannie mae and president obama, when fannie mae started to help people that they gave these options to refinance their mortgages, my daughter is one of them. she cannot refinance the mortgage on her house. look at what we are giving to other countries. we can put our debt down by lowering that. guest: if you look at our budget deficit, they are so large. projected $1.50 trillion next year. elimination of a foreign aid

does not come close to addressing the issue. on the fannie mae, freddie mac policy, it was the stated goal of the congress. they had affordable housing goals. a certain fraction of their loans had to be made on an income category. that is part of what drove in come to -- to low-income individuals. host: if you want to read the report that came out this week, you can find it on there website. cape cod, massachusetts, republican line. caller: good morning, thank you for sees them. it seems that wall street is leaning toward a democrat and a

liberal thinking. everybody around my area solve this problem years ago where people were getting way too much money for houses and financing for real money. see the't wall street problem? why didn't the government see the problem way before it all happened? people were saying seven years before the fall, things were not right. host: if people were saying this, why didn't anybody step up and say the bank or someone is offering meet this much money, and i know i cannot pay it back. why don't i borrow a smaller amount of money? caller: one of the problems we saw here, people were doing banking online. there was no income verification. there was no residence

verification. a lot of funny things going on. money was free and so cheap. we were wondering how could this guy be getting money from an institution out in california, and they are not even citizens in the united states. it is a very common thing that happens this way. it cleaned a lot of money off of the top and went back to their nation of origin. guest: he talks about a lot of complicated facts on this one. greedy people -- they have always been here. you have to look deeper than greed. the notion of having cheap money is a part of this. ben bernanke said it was a global savings glut. it was a sea of money pouring into the united states and

elsewhere to finance houses and credit. we had big credit bubbles and housing bubbles not just here, but around the globe. why didn't we see it and why could we stop it? many put a lot of blame on alan greenspan for not stopping mortgage lending to people that could not pay. it seems like it could be an explanation except when you see the same problems in england, spain, germany, under very different federal reserve style regulations. host: tell us about the process regarding the commission. who did you meet and have as witnesses? what did it take to write about this 545 page report? guest: congress created the

commission in 12 -- 2008 for 2009. we were appointed in march or april. i was appointed by mitch mcconnell. there were six appointed by democrats and a quarter by republicans. we begin meeting in the summer of 2009. we had some hearings and a staff of about 50. we have a subpoena power and cooperation of the oversight agencies such as the federal reserve. people with interest in oversight of the financial system. we met on a very regular basis to decide what would be fruitful and what were the witnesses we would like to have a in our hearings. begot government witnesses, hank paulson -- we got the

government witnesses, hank paulson, other executives from citigroup, goldman sachs, of lehman brothers, lynch. we had access to anything we wanted to know. it was nearly two years long. i think we did a great job of documenting the facts. i think what will be the lasting contribution is an archive of testimony, a document, and the written record of the commission any historian or citizen can go to the website and look through. we also left behind three different stories that went on. the majority to reject majority report, our descent, and in other persons descent. we are still arguing about what caused the depression 80 years later.

>> the report out now. what happens? it goes to congress or the white house? guest: that question has been there all along. before we were appointed, the president put out his proposal for financial reform in congress passed a bill. there has been a hanging question all of the time which is, what are you guys around? the american citizens want to know what went on. this is an enormous national tragedy. we may have found some things that they did not think about. host: if you want to go back and look at some of those commission hearings, you can find it on our c-span video library. go to our web site c-span.org

and the it will take you through the system. michigan, democrats line. caller: midmorning, my name is valerie. i cannot believe what i am hearing. it is not that complicated. even a ray charles can see what went on. these people were after the new deal, roosevelt's program. they had to get the government to say that they could not afford to deal with social security, medicaid, unemployment insurance, that the people pay in themselves and have earned a right to have. all of these programs, they have never liked them. they have been after them for the last 50 years. the only hurt the poor, middle- class, and the working class -- not the rich.

nobody rich got hurt, even if there were $2 billion in losses, they are still sitting pretty. it is only hurting the working people. it is not that complicated. we have too many intelligent people. how can they not know what was going on if they are so intelligent? simple. if anybody ran a business like that, they would be in jail. there are people doing life in prison for stealing. host: we will leave it there. guest: two different phenomenon get mixed up. the nation's finances may get worse before it gets better unless we do something. the financial crisis we went for is the second one. it had big implications, not just because banks were being bailed out or because of failure

of wall street firms, but it is drag the economy down in the worst recession since the great depression. we are focusing on understanding that a better and to make sure we have the lessons learned going forward. host: the new york times has a section. and the washington post, the end of your momentum was driven by private sector. in your opinion, is the economy bouncing back into a positive direction? guest: it is moving back at a pace that we will all find slow. unemployment rates at 9.4%. millions have given up looking. it is probably closer to 16% or 17%. the history of the economy's after a financial crisis is that they do not bounce back. it takes up to five years.

we are in the middle of that. host: in addition to what the commission members thought was the reason for the fiscal, financial crisis, is there anything in the report that talks about the future going forward, and what can be done to get to the economy up and running again? guest: the report was about policy recommendations. tell us what happened. how did we get a financial crisis? if we had an agreement, we could put of policy recommendations. we have seen a wide array of the thames to jump-start the economy. -- of attempts to ju-s