loopholes. there are many people use the word local to say let's just raise taxes on people. i will not raise taxes. >> pay your fair share of. >> i am a peacock farmer and schoolteacr. i supplement my income as a peacock farmer. since the last election, my peacock farm went away. i was going to add more people can keep everything in this state. if i support you, can you assur me that you'll make small businesses like mine better? >> i will not send you checks. i will not promise checks. >> i want to earn it. >> when politicians get on the public stage, they give a promise to the american people all sorts of free stuff.

it is time in america to tell people the truth. we have to earn what we spend. we cannot spend more than we earn year after year. we cannot go to china and other nations and ask them to give us your money so we can spend more than we earn. i wl make america the most attractive place in the world to start a business, grow a business, expa a business of any place in the world and i will do that byaking sure that our corporate tax rates are the same as the corporate tax rates of other nations around us. right now, they are the highest in the world. i want them to be competitive. i want regulations to be competitive and modern and up- to-date. i want trade policies to open up markets outside the u.s. agriculture is one of the biggest exports we have. people in this state understand the value. other nations in europe and asia

have put together some 40 different trade agreements to open up trade. we need to do the same thing. i will make it easier for you to sell peacocks to other nations if people want to buy them. do they buy the fattest? >federer is? feathers? i want to make this a better place. thank you. >> i have a non-controversial question. [inaudible] congress had voted -- has voted themselves a raise for four years then he said he is a senior citizen but in the last

two years, so security has not been raised but congress has voted themselves a raise. it would make sense for congress to link their pay to what is happening on social security and retirement. congress should not get a better deal than the people on social security. all this talk about entitlements, recognize that we want to make sure we can keep those programs and we can assure that the next generation knows they will have those programs. you want to raise taxes? that is your right. vote for somebody who wants to raise taxes. for you at vote puzzle you want. >> that's just fine. as a free society. we have a group of people who think we should raise taxes to pay for their benefits. how many agree? you got your answer. i don't agree with you.

your turn has been heard. i will take one more question. social security legally cannot add a single dime to the deficit. do you agree that social security should take no part in deficit-reduction negotiations? >> can i answer? >> do i believe the social security should take no part in deficit reduction negotiations? social security and medicare are a large part of the federal

spending. it is about half. not just this year, but over the coming decades, if we are able to balance our budget, we have to make sure that the promises make for social security and medicare are promises we can keep. there are a cple ways to do that. one way is to raise taxes on peop. corporations are people. of course the. but corporations may ultimately go to people. where do you think it goes? human beings, my friend. number one, you can raise taxes. that is not the approach would take. number two, you can make sure that the promises we make our promises we can keep. the areas you have to consider is higher income people receiving less rapid growth and

and they're in fighters. if you do not believe that, that is your right. i think we should consider a higher retirement age. that is my view. you may disagree with it, but that is my view by view is that we do not make promises we cannot keep pierre and i appreciate the chance to be here with you. we had a few people up front who got here early to make sure they got their voiceseard. they will lobby voting for me. they can vote for president obama. but the rest of you will be voting for the next president of the united states, a person who will balance our budget and not raise taxes. i am that purses. it is great to be with you.

>> what do you recommend your? >> chicken strips. >> hi, girls. how are you? good. it is good to see you, guys. i am running for president. how're you doing? is busins good? they are delicious. who wants some ribbon fries over there? is this for me? but luck to you. thank you. i think i am walking your customers so i will get out of your way.

>> i just saw governor huntsman. >> i will not be taking questions unless we are doing an interview. what i do not want to do is, just on the sidalk, answer questions. when i do that, do not get to answer in full. hi, how're you? good to seyou. good to see you. pardon? >> you are a pretty good looking guy. >> well, thank you. [laughter] how are you? thank you for saying high today. you're very nice. is that a friend of yours taking a picture? >> no. >> all right. how are you guys doing?

it is nice to see you. hi, how are you? the grand kids are great, they not? all right. it is good to see you. how are you? how're you doing, sir? have a great day. a whole family affair here. it is nice to see you. how are you? where you guys from? >> from iowa. >> from where at? >> by the border. >> mitchell county. >> you are a long way from home. >> sounds good. hi, how're you. it is nice to see you. i am mitt romney, running for president. thank you. i appreciate that very much. hell senator.

>> you got one of the best days for this. >> lots of sun, not very hot. no rain. >> more than a million people show appear. >> is that not something? >> yes. >> what is the total population of the states? >> just a little over 3 million. >> to you have a third of the state that could effectively walking to these programs. >> yes. have y had good day? >> so far, so good. saw some old friends. a big crowd over at the soap box. >> you want to be seen with me for the next hour. >> i am not sure about that. can we go in disguise? just kidding. >> viola loves romney and grassley. >> -- iowa loves romney and

grassley. >> nice to me to. -- nice to meet you. we will go over to the pork chop on a stick. how about that hi, how're you. it is good to see you. >> and gas, oil, nuclear, coal, you name it. >> as well as renewal. >> all of the above. >> thank you for coming. >> thank you.

it is good to be here. hi, sarah, nice to meet you. are you about sex? >> 5 and 1/2. >> almost six. how are you today? say hello to senato grassley here. you cannot miss him. hello, sir, how are you today? terrific. did you get the picture there? get in the center here with senator grassley. oh, my gosh. bingo!oo, been g >> how are you? hello, general. thank you.

you're with the ira w a national guard -- with the iowa national guard? how long have you been together? general, it is nice to see you. what is the nature of this relationship you have with the natives in kosovo. >> it is called the state partnership program this year, io was selected byhe for the government to be the state partner for kosovo. this is the second engagement we have had. th is the second time we have had the delegation here from iowa. it is to build a relationship for both security and to

solidify our relationship. we have been doing this for 20 years. a dinner in washington, d.c. celebrated our state partners. >> congratulations. welcome to the united states. thank you so much. hi, how're you? how're you doing today? [laughter] good to see you. where is your grandson? where is he? it will be you and me. that is senator grassley. >> my grandson recognized you.

>> this is my granddaughter. >> kids just wonderful? look at this. did you win that? what did you have to do to win that? congratulations. that will be fun to show. say hello to senator grassley. did you say hello to the senator over here? thank you. is that your son? >> yes he is. >> he won it? >> yes. >> thank you so much. look at this little one. it is good to see you.

hi there, how are you doing? >> i was in his office the of the day. he has some pretty good ideas, you know that? >> good luck. >> thank you so much. they sat down and made deal for crops per acre and ethanol production and btu. i do not know the time frame, but they say they will be building an ethanol plant in conjunction with a corn oil plant. that is a big events. it is amazing to see the progress and yields overtime. it is pretty remarkable.

>> mrs. remember the law forcement grade -- this is a member of the law enforcement brigade. do not mess with her. thank you, guys. good to see you.

>> i do not know how people go from marriage to marriage. [laughter] i found the right won the first time. how are you, sir? i am mitt romney. i am running for president. are you from around here? >> from connecticut. >> conn? what brings you here? >> iowa. >> you are from iowa, right? are you working on a corn dog? that is the best place. is this another one of yours? >> i think we can all use a little luck. i appreciate it. are you with this picture here?

no? in good to see you. i need a pen. there is. look at that. thank you. >> thank you, sir. >> thank you. >> clayton? is that right? your four years old? yes he is. what is your name? >> lily. >> that is a beautiful name. a beautiful girl. are you eight years old? it is great to meet you. what is your name? joe, nice to meet you. let mom get a picture. >> thank you.

>> thank you. >> hey, guys, how are you doing? come on down. >> i will come down. stay here until i get back. >> meet you at the pork chop .end >> she is on the runway. [laughter] >> is this your little guy? >> yes. and this is my grandson. >> that is terrific. you want something signed here? all right. thank you. how're you doing? good to see you. here you go.

thank you, guys. where you from? >> nebraska. >> they let you come over the border? >> yes. [laughter] >> we heard you would be here so we had to come meet your. >> thank you very much. a beautiful family. >> arizonan. >> arizonan? >> i voted for you the last time >> i hope you're still with me. where from arizona are you from? >> southern arizona. >> how are you? >> [unintelligible] >> i am running for all the people of the nation, not just a few, including you.

i care deeply. you take care. what is thi chinese umbrella doing here? no, it is just fine. you brought it all the way with you? this is amazing. >> do you know droll peterso >> absolutely. >> we went to school together. >> if he knows you, you know him. >> you got your camera? right there.

good to see you. hi there. how're you doing? is this your son? >> yes, all of them. >> these oral your kids? -- these are all your kids? >> yes, all of them. >> are you the has been here? >> yes. >> great family. good to see you. what is your name? bella. give her my best, will you? >> i will. >> you live in this area? >> manchester. >> good to see you.

>> what will you do for the college students? >> make sure you have a job when you get out of college. that is the best thing i can do for college students. make sure you have jobs. hi, how're you? thank you. >> i still have my yellow shirt. >> good to see you. i appreciate your help. it means a great deal to me. but as my car? ok, i will put my name on it. you have to get a blue one for this campaign. i see them around here. >> we will see you up in ames

later. >> tha you very much. you're very kind. thank you. hi there, how are you? fromexas? >> yes. >> i will be happy to do that. that is fine. do you have your camera? you got it. thank you. thank you, i sure hope so. thank you. how're you doing? >> perfect. >> it is good to see you. are you on a brick? >> yes.

>> you're doing a nice job. >> i have been to this event before. >> thank you for being here with those shirts on. >> iis good to see you. i will do the job. how are you? good to see you. you want to do a picture i your? >> yes. >> thank you, guys. good to see you. it is good to be here. hi, how are you? have a great time at the fair. >> it looks like you are the fear today. [laughter] today. [laughter] >> i will do my best.

he was just here. thataway? ok. is senator grassley up there? there he is. there he is. let's make sure you say hi. >> hi senator. >> everything going okay? >> is it hardero work in the state legislature or in washington? [laughter] >> i serve both places. each of the work as hard in their own respect. i think the best answer is that, what ever level you are, particularly at the state level, you are a laboratory. >> the whole 10th amendment idea. i love that. ok. you will be there?

even when i make a fuss? [laughter] >> i am with him. 57 years. >> 57 years and you're sti putting up with them? >> he is putting up with me, to. [laughter] >> is a great day for the fair. >> is it not? >> yes. >> do you know these ladies? >> office manager. >> it is nice to meet you. i see you and your husband here. i have to get you together. >> governor, how're you? >> lacy? clark's yes. >> her picture was in the paper.

-- >> yes. >> her picture was in the paper. >> i have to more days in my rain today. >> has the no one been chosen yet? >> know. they are all in competition. >> where is the senator's first lady? where did she go? it will be the three of the sen. all right. did you get that? good. thank you. good to see you. >> thank you. enjoy your day at the fair. right now, i am at kdes moines community college. i went to high school in knoxville. it is nice meeting both oyou.

thank you, sir. have a great day at the fair >> wl come to iowa. >> it is great to be in iowa. good to seyou. you guys have been married while. >> yes. >> you put up with him? >> yes. good to see you. >> hi, folks. i bet you are in line to get some pork chops. are you thinking about that? i hope so. hi there, how are you guys doing? thank you so much. good to meet you.

it.ou're going to do >> i am planning on it. >> thank you so much. good to see you. how're you, sir? is that m for mickey? >> yes. >> are you eight years old? how old are you? seven. so not quite there. hi, how are you? beautiful girls. congratulations. good to see you. how are you today? good to meet you. hi there, how are you? in good to see you. todd, good to meet you. thank you so much. >> let's bring the senator a you this way. the media has to stay on the side of e fence, please.

>> how are you? >> haori doing?

clark so there's lots to be done. whatever you want.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> pull one out. no flip over. no, flip it over. >> 20 minutes and then we roll it.

>> you guys have to pay 10 bucks for that, you know? [laughter]

>> you would not let me in the kitchen anyways. [lghter] >> that is funny. i think we do a good job here. their rigo. -- there we go.

>> either. good to see you.

>> oh, hi, how are you? nice to meet you. how're you doing? >> welcome to the iowa fair. >> thank you. it is good to be at the iowa fair. >> i come here every year. i get the iowa chop. >> it romney. how are you, sir? >> good. >> high.

wonderful. thank you, buddy. how are you doing? >> we want you to win. >> hello, how are you? the bank to see you. how are you today? -- good to see you. how are you today? are you in the home-building business? your son is. give him my best. how are you? hi there. good to see you. take care. hi. how are you? thank you so much. i will follow you, senator. watch out. there are folks right behind you there. hi there. isn't that something? i used to do a little work for them a while ago. nice to see you. is this your grandson?

>> iowa state alumni. >> i am it romney. >> i see you on tv. >> am i on ? sorry about that. hello there. i am mitt romney. i running for president. >> i know. >> bid to see you. -- good to see you. hi there. how are u doing. hi. how are you? good, thank you. how are you? great day for the fair. im mitt romney. >> i am her dad. >> good to me year. how are you? good to see if. -- to see you. >> i just missed zero. are you going to make it for the labor day parade?

>> i do not know the answer to that. >> hello. >> how're you doing? he is a good man, isn't he? hi. how are you today? hi there. how are you today? have a good day. how are you? hey there. how're you doing? good to see you. hi there. i mitt romney. good to meet you. hi. how are you? nice to see you. thank you so much. hi there. how are area? good to be here. it is just about time to get some lunch. how are you doing girls? one, two, three period.

all in one family? are you grandma? terrific. congratulations. arent grandkids wonderful? >> they are. >> i love them. i have to shake hands. ed nice to see you. hi there. how are you doing. hi there. how are you? you get in frontier. they know you. hi. how are you? is that your grandson there? let's hear it. [duck call] very bad. >> sounds like washington.

[laughter] >> i. houri it? -- how are you? >> would you mind signing my but? i would be half -- signing my book? >> i would be happy to. what is your name? is that your brother? no, cousin? how about this guy over here? that is your brother? good to me you guys. is this your mom and dad here? how are you? nice to see you. i appreciated very much. have a great day, guys.

hi there. how are you doing today? thank you for being here. how are you? i am mitt romney. let's shake hands. good to meet you. how are you sir? i am running for president. thank you. i appreciate that. good to be here today. thank you so much. very kind. how are you? i am terrific, thank you. i there. i am mitt romney. i appreciate that very, very much. how are you? terrific. how're you doing? what is your name? are you 18? you are almost ready to vote. >> one more if you do not mind. thank you, sir.

thank you very much. thank you sell much. -- so much. >> when are we going to get a pork chop? hi, how are you? is that your friend that just went by? say hi. i will take it. erie ago. take care. -- here you the hon. take care. >> the of the thing we care about is all the money that retirees are losing in our iras. i can tell you that rainout.

-- right now. we need to do something. because they do not talk about people losing their ira is. >> it is happening a lot right now. >> senator, good to see you. thank you for showing me the ropes around here. hope that works. thank you.

>> where are you taking me? of, my gop booth. ok. i see. [shouting] [laughter] >> what are you doing out here? >> i cannot stand the heat. >> is this value prep for a debate?

>> exactly. i like to get out and see the folks, get a chance to talk to a few. how are you doing? >> good. >> is this your family here? good to see you. >> good to see you. good luck this year. >> captain america? congratulations. thank you. i appreciated. >> will your wifbe at the debate? >> she had jury duty yesterday said she is not going to be here. i have the seat that normally would have been for my wife for a friend. >> that is great. >> i think i will skip the ride. there is enough up and down in

politics not to do it physically. how are you doing? good to meet you. >> you handled the crowd well. >> thank you. >> i put a note in your pocket. >> of bed. was that today? do you want me to call it -- dead. -- good. was that today? do you want me to call you? >> i appreciate it. >> you are going t lower the market on these things. >> thank you. you're the best. [laughter]

>> i've blocked you in this morning at the hotel. good to see you. i'm sorry i got you in this morning. -- blocked you in this morning. thank you. welcome to iowa. bye-bye.

>> i really appreciated the way you handled the heckler this morning. it was terrific. >> thank you. thank you so much. hi there. how are you? there is a john deere tractor. we h better get out of the way.

>> where is the best corn? nebraska or i/o what? >> i will give you cornflower -- nebraska or iowa? >> i will give you corn for nebraska. go huskers. >> governor. >> thank you.

quite ur we dog? -- >> how are we doing? >> the fare is nice today. not too hot. good day. thank you. >> i have a picture of you to pointing at each other. i cannot give it to ap. >> holy cow. look at that. >> governor. >> that sods good. air conditioning. >> i am going to be going to new

hampshire for a couple of nyour events. what do you like in new hampshire? >> i am partial to lake winnipesaukee. that is where i have a summer home. it is a great state. there is a north country in new hampshire. it is a lovely part of the state, particularly if you're going to be there in the fall. the leaves are brilliant. >> i got to meet senator kelly. >> she is terrific. she is the best.

you know, well, that corner veggie dog is pretty good. >> it looks pretty good. >> that is quite a hat. hi. i there. houri doing? >> umar the man. -- you are the man. >> are these your grandkids? how are you doing. you are eight.

you're going to school this fall? but gray? that is exciting. -- third grade? that is exciting. >> i am a reagan republican. >> i appreciate your help. i need your help. look at that. that is the best thing at the fair. do you want a bite? that is delicious. that pork is great. >> that and iowa corn, the other white meat. >> pork chop on a stick. where did that come from?

>> good luck to you. >> where are you from? >> i live in the morning. -- des moines. i worked in insurance. i am retired. >> why is that? you only look about 50-55. what about your daughter? >> i love water. we go to florida in the winter. we have a lot of lakes in michigan. we have the great lakes. i love being around water. >> very good. thank you. >> we had better let you go. we are getting more air time than you are.

>> how do you win that? >> you hit the hammer. >> well spent money. >> thank you. >> how are you? you have got to try the pork chop on a stick. bags track the latest contributions with the c-span website. it helps you navigate the look landscape with twitter feeds and the latest polling data.

all at c-span.org/campaign2012. >> newt gingrich met fair goers in iowa. this is about 15 minutes.

>> don't pay a lot on that. >> i will not appear each -- i will not. >> thank you. you bet.

there you go. are you doing? he was there this morning. how are you? what a pretty dress.

i apologize. it. thank you very much. >> i need your help in january.

this is very important. good to see you.

>> he has a very tricky job. what out for the tractor. >> how are you? how're you? nice to see a. we will be done tonight after the debate.

this is for our flag.

excellent. and pass them out i need your

help. >> you do? ok. >> i want my son back home.

>> republican candidates at the

idea was state fair. during the day, they would hear from newt gingrich, ron paul. at 5:00 p.m., michele bachman. on saturday, live coverage of the republican poll begins at noon eastern with a history of the poll and its effect on campaigns. traditionally, it takes place on years without a public and president running for reelection. they can vote for one of the nine republican candidates on the pull valid -- poll ballot. he said he will announce his running for president this saturday. we will have coverage of his announcement as well.

>> no. president obama on the economy, jobs, and the political environment. this is about half an hour. >> please, have a seat. hello. steve is here. carl levin is here. ideas had a chance to see what you guys are doing. it is very impressive. elizabeth was very patient for me.

in a time when they are rightly focused on their economy. all of you are providing a powerful answer. this is one of the most advanced factories in the world. we're coming back from the worst recession we have had in generations. this is why in here today. you cannot bet against the american worker.

do not bet on american ingenuity. the reason this exist is because we are a country of unmatched freedom. this is what we are home to the world's most cinnamic in successful businesses. even in these of the gulf times, there's not a single country on earth that would not trade places with us, not one. we have to remember that. we face some tough challenges. you know what they are.

you live them every day. in your communities, your families. to many people are out of work. growing again since this started, is not growing fast enough. of what we are facing has to do beyond our control. it is hit with the unrest in the middle east. this is lapping up on our

shores. they heard economies around the globe. all of this has further challenge our economy. it is playing out in the market. the defect the savings of families all across the numbers. challenges like these are things you cannot control. what we can control is our response to these challenges. well we can control is what happens in washington. unfortunately, what we have seen in washington the past few months has been the worst kind of partisanship, the worst kind

of gridlock. it has undermined public confidence and impeded our efforts for our economy. there's something wrong with our politics. there's something wrong with our politics that we need to fix. there are things we can do right now that can accelerate growth and job creation. this at johnson controls, mich., and across america. we can do some things right now that will make a difference.

it'll erase a legacy of debt that hangs over the economy. we have seen partisan stuff get in the way per this downgrade could have been entirely avoided if there have been a willingness to compromise. they have the capacity to come together. it was a self-inflicted wound.

this is what people are frustrated. you deserve better. you guys deserve better. all of you from the ceo down are working hard, taking care of your kids and parents. you're living within your means. you are donating to the church or the food pantry. you're trying to help the community. you're living of your responsibilities. this is what we're looking for

pared we know what is possible. we know we can and cheap. every day, hundreds of people are going to work on the technologies that are helping us to find our way out of the recession. every day, we are building high- tech of batteries for the best cars and trucks. what made this possible? the most important part is you.

there is the optimism that says we have got an idea for a new manufacturing process. we're going to hire some folks. this is what made it possible. what also made this possible are the actions we took to get there. the fact that we are willing to invest in research and technology that hold so much promise for jobs and growth, at the fact that we held put together at the conditions were businesses can profit, that is why we are investing in clean

energy. that is why i brought together the world's largest auto companies who agreed to nearly double the distance their cars can go on a gallon of gas. this will save customers tons of dollars at the pump. it'll create more job postings. this is how america will leave exports in this country. using the tools of government, we are working together to help

make it happen. there are more steps that we can help this economy grow faster. there are things we can do right now that will put more money in your pockets, will help businesses sell more products around the world, will put people to work in michigan and around the country. we do need cuts. they are common-sense ideas that have been supported in the past by democrats and republicans. they are things that are supported by senator carl levin. the only thing keeping us back our our politics. it puts country ahead of year. there are some in congress that would rather see their opponents

lose then see america (it has to stop. we had all the on the same team. especially when we're going through tough times. we cannot afford to play games. not right now. not one stakes are so high for our economy. it does not matter if you are a democrat or republican or an independent. you have to let congress know. you have enough of the theatrics. this will help our economy right now. they have to hear from me.

let me be specific. you have to extend the payroll cuts. the average family precede $1,000 from that tax cut. you need to get again. the economy is still weak. it to help you make ends meet and make more customers for business. tell congress to get past their differences and send in a construction bill. companies can put tens of thousands of people to work right now building our roads and business.

america used to have the best stuff. we are slipping behind. do you want to put people to work right now rebuilding america? we need to come to an agreement on trade deals bubble leveled the playing field for our businesses. we have a lot of americans driving hyundai's. i want folks in korea driving a chevy and chryslers.

i want to see billions of dollars of more products sold around the world. these are ready to go. let us get it done. they can turn their ideas into businesses more quickly. they can better compete against companies around the world. we should not make it so difficult for a company to translate that into a business. tell congress we have hundreds of thousands of talented americans who are returning home from iraq and afghanistan.

businesses need their skills. they are leading politicians. they come back here. they cannot find a job. let's but then to work. these are things we can do right now. these are things i already proposed. given the weaknesses of the economy, we need to do even more than that. i will be putting out more proposals week by week that will help businesses hire and put people back to work. i'm going to keep at it.

we do have to pay for these things. congress has to finish the job of reducing the nation's budget deficit in a sensible and responsible way. not just with more cuts this year or next year. they would weaken the economy more than it is. we are the cut $1 trillion. we need a long-term plan to get our finances in order. this is the only way we can invest in places like this. that is how we can refund the research at the department of energy.

think about it. when things are tight, if you cut out things you cannot afford even if it is tough to pay for the things i really matter. you do not cut out the college fund for your kids. you stop may be going out is often. you cut back on things you do not really new. i am assuming we do not keep funding the issue like. you do not just about the step that is important for you.

the same is true for us as an american family. we cannot ask middle-class families to bear the entire burden. we will not balance our budget on the back of people in this country. everyone has to do their part. everybody has to do their part in chip in. this is fair. you learned in kindergarten. this is what all this was about in washington. are we going to do it in a way that his fair? that means closing loopholes for billionaires' before we cut college loans to people.

that means ending subsidies for oil companies that are doing very well. before the cut health-care -- before you cut health care for seniors. this is just common sense. it should have bipartisan support. these are things we could be doing right now. this is how we are jump starting this economy and speeding the recovery and getting more folks working. while making sure we get our fiscal house in order. we can do both. i'll be laying out more proposals and days ahead.

i will help us grow this economy until everyone who wants a job can find one. the problem is not that we do not have answers. folks are playing political games. long way to go. this is no excuse for inaction. it is time to stop growing lines in the sand. in the aftermath of this whole debacle, when the markets were going up and down like they were, which call congress back early. the last thing we need is

congress spending more time arguing in washington, d.c. they need to spend more time out here listening to and hearing how fed up you are. let's listen to how frustrated folks are with the constant bickering. there is the desire to score points. listening hard enough, maybe they will come back to washington.

ready to do what you sent them there to do. america voted for a divided government. they voted for divided government. he did not vote for a do nothing government. he did not vote for a government that is beholden to lobbyists. we have a lot of work to do. the only way we will get it done is that if everybody finds a way

to put the country ahead of the parties. this is what i am fighting for. you have to hold everyone accountable. if we can come together and find common ground, there's no stopping the united states of america perce we will make it through these economic storms. thank you very much. got less.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> in the field moments, david cameron speaks about the riots in london. more from the house of commons as the chancellor discusses the world economy and the u.s. credit rating. >> we will talk about the economy, the deficit, and the debt ceiling with rick scott and a member of the financial services committee. then our series on jobs in america concludes with women in the workforce.

"washington journal" is like every day at 7:00 a.m. eastern. >> i am preparing myself for in the very small salary that i will be starting out with. >> you have to put aside your bias. >> the reason why people loved boxing is is because it has been experience. it is emotional, love, and hate. aspiring haskell journalists on ethics and commentary and where they get their news and information. >> c-span radio will feature lbj tapes from his 1968 phone conversations by the lbj library

in austin. here the president talk with hubert humphrey about vietnam, the paris peace talks, and the presidential race. >> i am going to do it. i am dam sure going to get it, come or high water. it is online at c-span radio. david cameron recalled parliament from their summer recess because of the riots in london. he told them that homeowners affected by the busy riots can be compensated by the government. it has about sentencing procedures.

this is a little more than an hour. >> i would like to make a statement. let me thank you. it is right that parliament is recalled and that we show a united front. i'm grateful for the approach he has taken. i have tried to speak with many of the members who have been affected. what we have seen across our country is completely unacceptable.

it is criminality. there is no excuse for its. police officers were assaulted and fire crews attacked as they tried to put out fires. they were attacked as they lied injured in the street. we will not put up with this in our country. we will not allow a culture of fear to exist. we will do what ever it takes to rebuild our country. we will be clear about the sequence of events. a man was shot dead by the police. there are questions that must be answered. this is being investigated fairly. we must get to the bottom of what happened.

we will. appropriately, if they were cautious. this was used as -- as an excuse across london. it is completely wrong to say there is any justifiable causal link. it is preposterous for you to suggest that it was left three days later. the young people stealing televisions was not about politics or the riots. it was about sex. they have shown incredible bravery. they deserve our support and our thanks. what became increasingly clear

was that there was far too few police deployed in the tactics they reusing or not working. they have been frank about why it is happening. the police have been facing a new challenge. different people are doing the same thing. to respond to this situation, we are restoring order on our streets to support the victim's and to look at the deeper problems that have led young people to carry out such criminality is. following the meetings, we have taken action to help answer the

policing. there are now more police on the street and more people being arrested. the metropolitan police increase the number from 6000 to almost 15,000 officers. large increases in the offices. this has been cancelled. the of got the areas of greatest need. the released special ones to help. more than 1200 people have been arrested. we're capturing images of the perpetrators. even if they have not been arrested, they will not escape the ball.

none of this will get in the way of helping bring them to justice. anyone charged with violent disorder should expect to be reprimanded and not let back on the street. they should expect to go to jail. the courts have proved effective for justice. they're starting to deal with the most serious cases that are dealing under the most confident review. we will active necessary. good progress is being made in restoring order to the streets of london. nothing should be off the table. every contingency should be a book that.

while they would not be appropriate now, we do have them place contingency plans. some people have raised the issue of the army. he said you'd rather be the last man in scotland yard. that is the right attitude. it is the government's response ability to make sure every future contingency is looked at. everyone watching these actions will be struck by how their organize was social media. it can be used for good or ill. we are working with the intelligence services to look at whether it would be right to stop people from communicating. and as the police if they need

any other new powers, specifically on face masks. goingannounce the we're to give them the discretion to remove it under any circumstances where there is reasonable suspicion they are related. we are looking at the use of the existing dispersal powers. whenever they face a new threat, they must have the confidence to change tactics. theyll always make sure have the political support to do so. this as well and truly begun. let me turn to the innocent victims. no one will forget the images

of a woman jumping from a burning building. it has been tragically burned to the ground. they were tragically run over and killed. too many homes have been vandalized or destroyed. i give them this choice. we will help you prepare the damage. on repairing the damage is, i can confirm any that have suffered damage can seek compensation under the damages act even if uninsured. they would ensure they have the funds they need to meet the cost of any legitimate claims.

they expect them to pay out in excess of 200 million pounds. they are as constructive as possible. they're setting out a new support team to help businesses get up and running. it will enable local authorities to release a least three-quarters of their costs. we will defer tax payments their of their practical support. businesses that have been most damages will meet the liability. a specific point was raised with me yesterday. regulations make it difficult for them to put up protections. we will read -- weed out once a major businesses can get back on their feet.

i can confirm that it will be operational. we are establishing a new 10 million pound recovery scheme to provide additional support. the government will meet the immediate cost of emergency accommodations. they have made available details of all of these schemes to date. the situation continues to evolve. let me turn to the deeper problems. response ability always lies with the criminal. these people were all volunteers. they did not have to do what they did. crime has a context.

there is a major problem in our society with people growing up in not knowing the difference between right and wrong. this is not about policy. it is about culture. it says everything about right and nothing about response ability. in too many cases, and parents and not care where their children are. the potential politics have been cleared for too long. as i said, if there is no one step that can be taken. we need more discipline. we need a criminal justice system that has a heavy line between right and wrong. at the heart of all the violence, there is the issue of

street gangs. they earn money through crime. they're bound together by an imposed loyalty.

from walking vandalism and looting. walking vandalism is wanton vandalism

>> successful societies are built on an ethic of hard work, compassion, solidarity and looking after each other. we all bear a share of responsibility for what happens within it. it is right that we came back to debating this. it is right the public order must be paramount. but it's also imperative that even after order and normality are restored we do not ignore the lessons we must learn. we cannot afford to move on and forget. for all the people who have been in fear this week, for those who have lost loved ones, homes and businesses we owe a duty. that is our responsibility to the victims. it is our responsibility to the country. we on this side of play our part in making it happen. >> prime minister. >> thank you, mr. speaker.

and i thank the right honorable gentleman for what he said today but also for what he said in recent days, and if i can say the way in which he has said it made a number of points. he is right to praise emergency services, the work they have done. in spite of the fact that 57 started in many cities across our country, there have been no casualties from those fires and i think that speaks volumes about the professionalism and brilliance of our firefighters nationwide. he quite rightly says it is important that as soon as possible we could our high streets, cities, towns, back to real sense of normality. first of all, that has to stop with this increased police presence for people feel confidence to go out and to enjoy their towns and cities. i believe that will happen so the cities become the great bustling places we want them to be. we ask questions about police, courts, communities and deeper lessons. on the police what i said about

the army, i chose my words carefully. none of us want to see a breakaway from the great british model of policing, but i do think that governments have responsibility to try and look ahead and contingencies and potential problems and start asking potential problems and difficulty in advance. that is what cobra has done. in terms of simply asking if there were tasks for some simple guarding task that could be done that would free up police for more front-line duties. this is not for today or even for tomorrow. it's just so you have contingency plans in case it became necessary. he asked about operational costs. the treasury deserve is being used. he asked about policing numbers beyond the weekend. deployment must be an issue and a metaphor police chiefs. they want to assist the intelligence and situation for making those decisions but as far as the government is concerned they should feel free to deploy as many police for as

long as they need. what matters most of all more than anything else is restoring order on our streets. he raised the issue of police budgets. i'm sure this will be debated. let me make a couple of points. what we are saying over the next four years we are looking for cash reduction in policing budgets. 6% reductions over the next four years, i believe that is totally achievable without any reductions in visible policing. police are growing number -- [shouting] >> making their point. let me just make two additional points on that. today we still have 7000 trained police officers in back-office jobs. part or program in police reform is about freeing up police for front-line duties. that is why i can make this very clear pledge to the house. at the end of this process of making sure our police budgets are affordable, we will still be able to surge as many police

onto the streets as we have in recent days in london, in manchester. i do think this is important people understand that. he asked about the court system and whether we are able to surge capacity and her magister's and crown courts. yes, that is exactly what cobra has been asking for in recent days. on sensing i chose my words carefully. it is a matter for courts to sentence but if you look at what the sentencing caption says, those people found guilty of violence on our streets should expect to have a custodial sentence. he asked questions about cctv. we fully support cctv. we want to regulate it to make sure it is used properly but it has been an immensely by able as i've seen for myself in police control rooms up and down the country. he asked about in terms of communities, whether they would be any cap on the money available for communities to of course the riot damages act doesn't have any cap at all.

because were allowed to 42 day period people will be able to apply to the police and the government will stand behind the police. when it comes to the deeper lessons i think he's right. he quoted a speech i made. i said it is explaining doesn't mean excusing, and he's right to say the causes are complex. i hope in the debates we have the causes don't immediately fall into the discussion about resources. we have deep moral failures you don't hit them with a wall of money. i think it is right, actually key word the use and that i used is the issue of responsibility. people must be responsible for the actions. we are all responsible for what we do. finally, he asked about the question of how we'll listen to communities and what sort of inquiry is necessary. i think in the first instance, i found some talking to many members of parliament on both sides of the house who are deeply in touch with their communities, keep in touch with their police forces and police chiefs, one of the first things

we can do is properly bring to bear all the information we are hearing from our communities. i understand the home affairs select committee will hold an inquiry and i think we should try and ask a parliamentary inquiry to do this work first. but i thank them for the general tone of what he says and hope we can keep up his cross party working as we do with a difficult problem. [inaudible] instead of rounding them up. does the prime minister remember that in 1971 at the peak of the opposition to the vietnam war in the united states, that the u.s. government brought 16,000 troops into washington in addition to the police, that they rounded up the rioters, they arrested them, and they put 40,000 of them into

the d.c. stadium in one morning? has he any plans to make the wembley stadium available for some of the youth? >> i want the wimbley stimp to be available for great sporting events. and i think it's important as we get back to a sense of normality that sporting events going to let me make this point. he makes an important point which i think to be fair to the police and all the should think carefully before we start criticizing police tactics when they're the ones in the front lines. be fair to the police they now say that i think to begin with they spend too much time concentrate on the public order aspects and not enough on the criminality aspect. it has been a greater police presence on the streets and the greater are risking of people is help to bring the situation under control. the police themselves when she said to me yesterday it's time to tear up some of the man you

about public order and restart. restart. he said where done this many times before and the police will do it again and we'll get it right. it's in that spirit we should praise british police. >> i want to accommodate members but i issue my usual exhortation with particular force for brevity. >> what the prime minister said about the death of mark duggan and, indeed, about compensation for victims. 45 people have lost their homes, burned to the ground, run out of their homes during their children in their arms. and their crime is rare with the police. we can have this debate today, but it is no replacement for hearing from people themselves. will the prime minister, and speak to those victims? ended the to the independent shopkeeper, hairdressers, jewelers whose businesses are

lying in centers? and what he also commit to a public inquiry that looked at why initial skirmishes were allowed to lead to a situation in which the great roman road now is in centers? >> prime minister? >> i will certainly take up the honorable gentleman's invitation to go and hear for myself. i found in a visit i made real anger on the streets about what happened, about how it can be allowed to happen. and just a lot of questioning of the police tactics and police presence. as i said in my statement, to be fair to the police i think to begin with the cost of the situation with mark duggan they were hanging backward very good reason. they could understand that they accept that went on for too long. the police presence need to be greater and it needed to be more robust and it needed to be protecting peoples homes, people's shops and people's houses. we will now do everything we possibly can to get those people

we house quickly, to make sure that money is available. i know my right honorable friend has been in touch. i think all of the local government leaders affected and will keep that up. entrance of the inquiry, and what it was honestly i think we should start with a home of of ursula committee inquiry. let them do their work and let's take it from there. >> mr. john leech. >> thank you, mr. speaker. was a prime minister media organizations to immediately release all footage of criminal behavior and assist the police in bringing criminals to justice? >> i will certainly do that. i was impressed in the control room of the west midlands police yesterday how amateur photographers have been sitting -- seen in footage to help the police arrest those who are guilty. as has been said today, everyone has a responsibility media has responsibility and i hope they will act on it. >> mr. jack straw. >> thank you, mr. speaker.

mr. speaker, no one disputes were second the prime minister's determination to meet what he describes as a duty of government to keep the streets say. but will he not understand that his repetition amounts to treasure lines, about police numbers, and police budget, and also -- [inaudible] put a big of him to recognize the reality that these cuts will lead to fewer police on the streets? but also that he must reverse the softer sentencing plans his justice secretary and stop the looting of this plan the justice sector has to close britain when there is no presently an urgent need? >> prime minister? >> first of all i don't accept what he says about police numbers. and, indeed, neither do chief constable. many chief constables, if i take the chief constable of the thames valley convoy she said is what i haven't done at all is

reduce number of officers who did a control selection, so the author you see in vehicles, on foot, bicycles, we haven't got those numbers at all. let me make this point i think one of the things demonstrated by the last three days where we have 32000 officers is they could take the action to surge from 3000 on the streets to 16,000 on the street. i think that is a demonstration of using what you have to maximum effect. >> while metropolitan police officers showed great courage and determination of a high degree, over the last few days, whether prime minister agree with my concerned, that there were boards that police officer on several occasions were instructed to stand and observe, rising -- rioting and looting that would take place? would he agree with you that is not an except obese or? if the police are concerned because of the province after

the g20 some that he might be criticized for overreacting, there is an urgent need for fresh guidelines so that there is no ambiguity that it is the police and not looters and rioters who control our street? >> we will be looking again at the guidance. let me be clear, there was no instruction to police officers to stand back. but as i've said anything police chiefs have been very frank about this, that the balance between what is right or public order in what is right for stopping criminality, looting and feeding, that balance wasn't got right to start with. they admit that. except that. but they were to be fair to the police who do this for difficult job on all of our behalf. they were facing a new set of circumstances. yes, they have had rights before. is david looting before. yes there's been violence and vandalism before. but we have and the country before had the same thing happening in different places with different people all doing at the same time. that was a challenge for them.

challenge i believe that are now meeting actually but they didn't get everything right to start with. they are the first to admit that. >> i'm grateful for his telephone call yesterday. what happened on tuesday night was not about protests. it was about delivered organize violent criminality. will the prime minister give his full backing to the police to intervene in the circumstances? because it was the case of some officers had instruction where they didn't have riot gear, where they were not trained, they had to stand by and watch what happened. the effect on public confidence is devastating. will he ensure the police have the backing and that confidence, review the guidance so it never again do we see the police fall back in the face of a violent mob as we saw? >> she speaks all the authority of a former police minister who knows this issue well, and i know discussed with the police. could what happened was unacceptable. tragically it reverse very many good years of excellent work,

breaking up games, take on organized criminals. i suspect what happened is those gangs and criminal sought as an opportunity to reassert themselves. all these lessons must be learned that i know the great manchester police chief i've spoken to wants to learn the lessons, is not right ever to seize control of our streets to haul against -- two hooligans. the time to learn the lessons is now. >> david davis. >> thank you, mr. speaker. and i commend the prime minister for his decision on action on gangs, but i would like to raise another issue. he quite rightly raised or told the house, in fact the whole country was moved by the words of the father yesterday. when the father made those comments come he did so against the background of some ethnic

tension to try to calm the circumstance there. there's a risk at least that evil people try to use these complex to raise for the ethnic tension in the future is a government going to take action to lives of the need to make sure that is not done? >> the government will certainly do that. i was in birmingham yesterday joined a meeting of committee leaders who came from all religions, all creeds, all races, who came together to make sure that the communities did not respond in an inappropriate way to the dreadful events that happen having. i patriot do chief of the west force them to leader of the city council and to all those people who form that meeting and went out and spoke to the committees and appealed for calm. i think this seems we all saw last night of communities coming together in birmingham to try to stop the violence was a model of how these things should be done. >> what justification can there be, bearing in mind what the prime minister has just said,

for very experienced police officers who serve 30 years or more are so been forced to retire? and isn't it, where there is no adequate police presence as has been the case once or twice during the last few days? >> i think the honorable gentleman is entirely right. yesterday when it was the number of police officers or something like doubling overnight compared to the previous night. i suspect this is happening in other parts of the westminster. the fact is that one of the lessons we need to learn is the ability to search the number of police officers very rapidly into our community when there are problems arising like this. let me just say again, the place to the difficult and dangerous job on our behalf. they learn from extreme. they don't always get it right. we must praise them when they get it right and we must i think

here say that some of the tactics need to change. but not try to subsidy our own judgment for this. that would be a sensible approach. >> thank you, mr. speaker. my constituents and i witnessed some shocking events sunday and monday. but what was particularly shocking was the age of the number of culprits that were in the instance that night. with the prime minister assure me that he could ask the police authorities to work with the education authorities in an attempt to identify many of these secondary school children who are out there causing these crimes because i certainly think that is a sensible suggestion but i think over and above that we have to recognize that the responsibility for the fact that some of these children, and i use the word children advisedly, rests with opinions but what we do need to have is a sense that parents will take more responsibility for their children and teach them the difference between right and wrong and point out this

behavior is unacceptable. >> it is undeniably that these criminals who looted, stole, rioted, cause intolerable damage to the people who are the victims of this, must be dealt with by the police and by the justice system. what i want to ask the prime minister is, do we regard these people, however abject terror acts, is only cleanable to society and great cost to the police, to the justice system into the prison system, or will we have positive policies to try if at all possible to reclaim them to society? >> i agree with the right honorable gentleman. it was we must never write people off. however, bad are we must try and build a strong society where you can turn people's lives around

it but i think one of the lessons from this is too many people have been left for too long and we need much earlier interventions if something were members on all sides of the house have spoken about. much earlier interventions than when we see children going wrong, we intervene earlier rather than leaving them to fall at school and lapse into life of criminality. >> thank you, mr. speaker. if these riots have broken up in other countries the police would've had at their disposal water cans, plastic bullets and teargas. mr. speaker, across the u.k. british people watched on television while police were instructed stanback -- stand back. so the premise of a 24 hours notice of use of water cannon is enough? and this is not about police numbers but about police being given the tools to do the job. >> let me say to the honorable

lady is that the pleased to have access to battering rams and they are able to make the decision to use them. and in london they came quite close to making that decision. that must be operated decision for the police. on issue of water cannons, the first on advice from the police is the cause on the whole they were not deal with very large crowds but very mobile crowds or people who were intent on criminal behavior. water cannons would not have been appropriate in these circumstances. that is the police do get the point i've made is we should be ready for every possible contingency in the future so we should know how we would enter future questions which is why they are now available at 24 hours notice. that i don't agree with her about this, the greatest possible to sort of lawlessness we saw is the people to know that if they do that living, they do that violent, they will be pulled out an an arrest in the late and be in front of a court that night. that is the answer. they key to that is more police

on the street so they're able to be more robust in a way they intervene. >> can i welcome all the steps taken by the prime minister from the start of these and join with him and others in condemning the criminality, and also praising the police. i, like he, without on the streets of london yesterday. they key issue was the police ability. does he say if a police force has to dip into the contingencies, in order to pay for what has been going on over the last six days, that the government will reimburse all the money? >> can i think the right honorable gentleman for what he said and for the work i know his can and will be doing in the coming weeks. the fact is treasure is standing ready to assist police forces. clearly the bill for the metropolitan police force for these last few days is going to be large. and if they continue to deploy in these numbers it will get larger and the treasury will stand behind them. >> mr. simon his. >> those of us in the commands

affected,. [inaudible] the place of the minority other officers trained and able to use right headgear and right equipment. can he look with home secretary at that thing reversed some of police officers have the presumption so they can act and intervene? will he make sure the full force of the law doesn't just go to the 50 committees of through communities but the adults with children who are also going into the shops and taking stuff, not just the children? setting an example. >> on the first point, of course there will be a proper review in terms of what is the right balance between riot police and normal burro policing so we meet the source of emergencies better in future. of course, that will happen. in terms of prosecuting the guilty, the police should go after everybody. they have the cct images. there are people all over the country ringing up in explaining their neighbors just acquired a new 42-inch plasma screen.

>> thank you, mr. speaker. the people of liverpool are united in the absolute criminal acts that wreak so much havoc caused so much fear in parts of liverpool over the last few days. but what specific things has the prime minister made to assist, to be able to be assisted in the future coming? >> liverpool will be able to apply, not onto the scheme that existed through this new special scheme that doesn't have a threshold you need to cross in order to claim payments under. also the riot damages act is effectively unlimited in the claims you can make. as i said the home office will stand and police forces so there's a series of measures and of the written statements and

house today so she can see full details and share them with her council leaders. >> i know the prime minister will agree with me that we in principle have the best police force in the world. however, will he agree with me it is time to please will refocus back to being crimefighters instead of social workers? >> i think the police have the clearest possible message that we want them to be a police force. we want them to be focused on crime. we don't want them fighting paper behind a desk, and i think they've been very clear message from the whole country this week that people visible policing but they want very robust policing spent david miliband. >> the prime minister will be pleased as i'm that we know rioting or looting in south shields turkey has rightly praised the indie pendant, the professionalism of the chief constable. why didn't we want to get rid of them all and make them stand for election? >> we are not proposing to make chief constables stand for election. what we are proposing is to

police commissioners stand for election, replacing police authorities. and the point i would make, the point i would make is this, that actually in recent days, in recent days i think these arguments that yes, you have independent police chief constables, yes, they have to be responsible for the judgment, but it's important they are accountable politically. there is a discussion that can take place between politicians and between police chief is a thoroughly good one. >> thank you, mr. speaker. it was badly smashed up on monday night. and man is critically ill in hospital having been attacked when he tried to put out a fire in elizabeth. people are devastated. we heard the prime minister say those who are big enough to take part in the riots are big enough to take part in -- they will feel the full force of the law including prison sentences speak

with yes, i can give her that assure that our to thank her for the briefing she gave me of what had been happening, particularly on monday night. i can give her that ushered. the cincy must be a matter for the courts. the guidelines council is clear that people taking part in violent disorder should expect to go to prison. >> thank you, mr. speaker. can i invite the prime minister to join with me, not only put on the record our gratitude to the place of work so hard the call to our streets, but also the outreach and committee workers who have been at everest single night talking to people, to reduce tension and restore order in our streets in partnership with the police? can i invite him to meet with those people so he understands it is not a tiresome debate, but we must learn from the experience and restore order, not just in these next few days but everyday and are committed, across the country. >> i certainly happy to meet with the honorable lady. the point she makes that

reclaiming the streets is not just an issue for the police, but it's an issue for everybody. i think it's absolutely right and we've seen fantastic examples of the right across our country. the point i was trying to make about resources is i hope we can have an, of course, i hope also we can have a debate about some of the culture, about some of the upbringing, some of the parenting, some of the deeper point that lie behind these problems. >> david tc davies. >> mr. speaker, frontline officers were telling me last night they had been afraid to use measure of fiscal sorts because concerns about criticism. five minutes of power which have seen, so when the prime minister, i welcome this, we will be robust and do whatever it takes. kenya shows that members of the south will support the police if they have to strike people with battens? because force has to be met with greater force. >> i know the honorable gentleman speaks with great

expertise as he serves as a special constable himself. the point is this. people do what robust policing. of course, the police have to be sensitive to things that happen in the past. sometimes the pendulum can swing too far one way and into for the other what i'm sure the message has been received loud and clear that went this sort of violent criminal behavior people what robust response. >> heidi alexander. >> the prime minister has talked about the wrong play by gangs and technology in the disorder that has taken place over the last week. does he share my concern about the popularity and accessibility of internet footage glorifying gangs and knives? what we do to ensure these despicable videos are taken down? >> i think the honorable lady speaks very powerful. but also on this issue where frankly everyone has responsibilities, not just minutes of parliament, police, parents.

media companies and social media companies who are displaying these images, and all of them should think about their responsibilities and taking down those images. that's why don't sector is going to a meeting with those organizations to see what more can be done. >> thank you, mr. speaker. two of the shocking images the prime minister virtue in his statement took place in my constituency. can i thank them for coming here on tuesday quick yesterday and today before my constituents finally got to see the kind of policing in terms of visibility and robustness that they want to see every night. came here issue to me and my constituents that we're not just going to see a temporary change of police tactics, but a permanent one? >> i thank the honorable gentleman for what he did to introduce me to some of the shopkeepers affected homeowners in his constituency, some of them have been made homeless. i can given that assurance because i think one of the things that has been demonstrated the last few days as i said is the importance of

searching police numbers quickly. there are 30,000 officers in the met. having just 3000 on the streets on monday, on sunday wasn't enough. that's what action was taken to increase a bit unsure lessons will be learned in that regard. [inaudible] with resources to support the police and what they're doing here, can ask the prime minister the context every doing the action of the police over the last few days, and using their lengthy experience of right controls and inviting the police to handle the situation in the future speak with of course it's enormously helpful having -- who serve so well in northern ireland but it is an issue i raised myself and cobra about accessing their expertise in the police service in northern ireland. i would just make the point that i think one of the issues that we need to grip quickly was the fact that this was not a political protest.

it was actually looting gangs. so every case is different. that's i think one of the difficulties police have to fa face. >> when the authority of parents and teachers and police have been eroded, consistently for so many years, and hopefully the prime minister will reverse the process but he himself has said again and again, it's the stability of families that can't. he's made tremendous progress. but before the election he said part of thi his marriage was thu bring in a marriage tax allows but it still hasn't happened. will he now do it? >> as the honorable member knows, i support, i think we should support families and marriage in every way we can. i think we should set a simple test for all government policies which is this. is what we're about to do going to enhance responsibility, whether parental responsibly or the responsibility of the teacher in the school come the response a police officer on the street it is is going to earn

have the response that we should do it. if it isn't we shouldn't. >> thank you, mr. speaker. does the prime minister realize that in times of economic downturn, inquisitive crime increases always? the difference this week was it was backed up by extreme violence and perpetrated by mobs. can i ask him to reconsider the cuts to the police budgets? you will be seen not to be getting into mob violence by giving into commonsense. >> i simply don't accept this determined that when you get change in the economy there are automatic change in the levels of criminality. and, indeed, the figures over the last recession disprove that. we should be clear in this house that it is criminals that are responsible for crime. it is an individual act and we should hold people responsible for those acts. let me take this opportunity for paying tribute to the welsh police officers, that gave great support to police forces across england. >> mark pritchard spent can i

congratulate on the leadership is shown and the initiatives that he has announced today? isn't not the case though that those local authorities that attempted to close down youth services should think again? and perhaps consider shutting off and closing down some of the more lavish firms enjoyed by some local authority workers? >> the point i would make to the honorable gentleman is every organization, whether it is a local authority, central government, a police force, at a time whatever is having to make budget reductions has got to focus on the front end on the things that matter most. we're doing that at central government. police forces are doing that and local authorities should do the same. >> i was on the streets at the height of the rioting on monday night. and i know how frightened people

are, and remained at and i believe most important thing is to regain control of our street. but on the question of the army, let me say this. when we are attracted, to further militarization of the situation to some members of this house, even to some of my own constituents, but let me say this. he will be aware that he who has ordered battering rams and water cannons is against the use of these things in the current situation. and i say to this house, whether it is a popular thing to say or not, that the further militarization of the situation we face will not help and may bring things to and even worse level. >> first of all let me agree with what the honorable lady said. i think very private about the fact this was criminality on the streets and about how frightened people were.

i agree with others who say now is not the time to take these steps to the point i would make is government has a responsibility to ask about contingencies, to work out what next, what if it got worse? those are responsibility we take seriously. let's take this opportunity to pay tribute to what the armed services do often do in our own country when it comes to floods and other emergencies. they play an incredible role and we should thank them for it. >> mr. speaker, would not write up a friend agree when facing the circumstances we face it is nonsense that magistrate courts have to -- because their own sensing power are inadequate let's will he take steps to give magistrate courts how to deal with these cases? >> as i sit in my statement we keep these sensing powers under the that magistrate courts can sense of the six-month. they have been passing sensitive they've been doing that overnight. and also refer cases to chronic

what i think is vital to make sure there's enough crime core capacity to deal with these cases quickly. >> mr. speaker, can i bet the prime minister to change his mind about a commission of inquiry? this isn't going to go away. we could wish it to go away. this is a complex changing social phenomena but we've got to understand in order to combat it. he announced this week a commission of inquiry, i'm a great supporter as he knows, but it's not enough to lead to a select committee inquiry. to me that's not -- [shouting] >> i think we should have more confidence in our select committees in this house to do this work. i think the home affairs select committee doesn't excellent job. i don't know these things out in the future. at a start with that. sometimes commissions of inquiry have had to be ordered because committees in this house have been able to get to the information or the people. i don't see why that should be

the case in this circumstance. >> thank you, mr. speaker. some cities have suffered hugely this week while others have avoided violence. and have managed to squash any trouble before it kicked off. when inquiries are established and when the select committee does its work with the prime minister incher we learned lessons on from those areas where violence was kicked off, but from cities where there was any trouble? and made we and learned lessons from what went right in those areas speak with i think she's right. any inquiry should certainly do that. >> prime minister may i thank you for this where you met our decent citizens have become victims, had seen the buildings and businesses burned down, had seen offices and shops trashed. the people into war zone, because that's what was, we're making the plea, where were the police? for hour after hour after hour people were free to pillage and

lived with no uniformed officers around. may i ask the prime minister, may i ask the prime minister impact on behalf of the people i met the last two days distraught and said people, the victims, i would ask prime minister, i would plead with the prime minister on behalf of my constituents to think again about police numbers because the please -- the people of london want more police in london and not fewer. to would be the wrong policy at precisely the wrong time. >> with the right honorable friend, the time i spent in croydon was powerful to you about the immense frustration and anger that the shopkeepers and those householders and tenants felt. but i would say this to the problem was that the police were not on the street. the problem wasn't about police budget in four years time. the problem was about the the the other place right now. there are 32000 officers in the net. we need to get more onto the

streets to more quickly and more of them to croydon. it is about now. it is not about the budgets of the future. >> thank you, mr. speaker. i very much welcome -- [inaudible] about social media. as part of that, what might be called the internet equivalent of the corporate it would seem the police have been wasting time dealing with false rumors about modern activity and the laws and building must be updated. >> i think the honorable gentleman makes a good point. just as the police have been using technology more effectively, so criminals are now using technology more effectively. there are false trails that were laid on twitter and blackberry messenger and all the rest of the. i think we need a major piece of work to make sure the police have got all of their electronic capabilities that they need to hunt down the criminals. >> thank you, mr. speaker thank you, mr. speaker. can the prime minister say what measures he has in mind to

strengthen families? and in particular, parental responsibility which so many members of the public rightly think is a big faction in all this? >> let me give them one area where we have made progress but i want to see further progress. that is the issue of discipline in schools. we've got to make sure that schools are able to confiscate things off children and are able to exclude children without being overruled by appeals bills. all of those things add to responsibility. in terms of families it is making sure every single tax and benefit that we have is profound, is pro-commitment, is profiled as of this decrepit part of the problem is the opposition who have questioned the prime minister.

we come now to the statement by the chancellor of the exchequer, mr. george osborne. >> here here! >> mr. speaker, people will be concerned about the turmoil in the world's financial markets and what it mean for economies here and across the globe. i want to update the house on what we're doing to protect britain there the storm -- from the storm and to help lead a more effective intername response to the fundamental cause r causes of this instability. as of this morns, markets in asia and europe are a little calmer although some are still currently down. over the last month the dow jones index has fall p by over 14%, the french market is down 23 %, and it's striking that the german market is down 24% and even chinese equities are down 20% since november. bank shares in the all countries have been hit particularly hard, many sovereign bond markets,

too, have been exceptionally volatile with market rates for italian and spanish debt soaring before falling back in the last three days. sadly, britain is not immune to these market movements. in the last month, the if ftse 0 is down by 15% and british bank shares have also been hit hard. however, while our stock market has fallen like others, there has been one striking difference, the market for our government bonds have benefited from the global -- here here! >> u.k. guilt yields have come to around 2.5%, the lowest interest rates in over 100 years, and earlier this week the u.k.'s credit default spread or the price of insuring against sovereign default was lower than germany's. this is a huge vote of confidence in the credibility of british government debt and a major source of stability for the british economy at a time of exceptional instability.

and it is a reminder of the reckless folly of those who said we were going too far too fast. >> here, here! >> we can all now see that that approach would have been too little, too late with disastrous consequences for britain. mr. speaker, it is not hard to identify the recent events that have triggered the latest market falls. there has been weak economic data from the u.s. including revisions to previous gdp, and the historic downgrade of that country's credit rating. and the crisis of confidence in the ability of euro zone countries to pay their debt has spread from the friday friday to major economies like italy and spain. but these events did not come out of the blue, they all had the same root cause: debt. and in particular a massive overhang of debt from a decadelong boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking

leverage and a fail were -- failure of governments to put their public finances in order. unfortunately, the u.k. was perhaps the most eager participate in this -- participant in this boom with the biggest housing bubble, the most overleveraged banks and the largest budget testify sit of them all. now, history, mr. speaker, teaches us the recoveries from this sort of debt-driven balance sheet recession was always going to be choppy and difficult, and we warned that that would be the case. but the whole world now realizes that the huge overhang of debt means that the recovery will take longer and be harder than had been hoped. markets are waking up to this fact, and that is what makes this most dangerous time for the global economy since 2008. i think we should be realistic about that, i think we should set our expectations accordingly. as the governor of the bank of england said yesterday and the head of the office for budget responsibility has also noted, the british economy is expected

to continue to grow this year some 500,000 new private sector jobs have been created in the last 12 months. that is the second highest rate of net job creation in the g7. but instability across the world and in our main export markets mean that in common with many other countries, expectations for this year's growth have fallen. and that is what our response must be. first, we must continue to put our own house in order. i spoke again yesterday to mervyn king, and i can confirm the assessment of the bank and the treasury, the british banks are sufficiently well capitalized ask holding enough liquidity to be able to cope with the current market turbulence. we have in place well-developed and well-rehearsed contingency plans. we must also continue to implement the fiscal consolidation plans that have brought stability to our bond markets. i believe the events around the world completely vindicate the decision of this coalition government from the day it took

office to get ahead of the curve and deal with this country's record deficit. while other countries wrestled with paralyzed political systems, our coalition government has united behind the swift and decisive action of cuts and the emergency budget. while other countries struggled to command confidence in their fiscal forecasts, we have created an internationally-admired and respected and independent office for budget responsibility. these bold steps have made britain that safe haven in this sovereign debt storm. >> here, here! >> our market interest rates have fallen while other countries have soared, and the very same rating agency that downgraded the united states has taken britain off the negative watch that we inherited and reaffirmed our aaa status. this market credibility is not some abstract concept, it save jobs and keeps families in this their homes. families are benefiting from the lowest-ever mortgage rates, and

companies are able to borrow and refinance at historically low rates thanks to the decision we have taken. let me make it clear not only to the house of commons, but to the whole world: ours is an absolutely unwavering commitment to fiscal responsibility and deficit reduction. abandoning that commitment would plunge britain into the financial whirlpool of a southern debt crisis and cost many thousands of jobs, and we will not make that mistake. >> here, here! >> the second thing we need to do is continue to lead the international response in europe and beyond. in the g7 statement greed to between finance ministers and central bank governors this week, we said we would take all necessary measures to support financial stability and growth. in the euro zone, there is now a growing acceptance of what the u.k. government has been saying first in private and now in public for the last year, that they too need to get ahead of the curve. individual countries must deal with their deficits, make their

economies more competitive and strengthen their banking systems. existing euro zone institutions need to do whatever necessary to maintain stability, and we welcome the ecb's interventions through securities markets program this week to do just that. but this can only ever be a bridge to a permanent solution, and i've said many times before that the euro zone countries need to accept the remorseless logic of monetary union that leads from a single currency to greater fiscal integration. many people make exactly this argument more than a decade ago as a reason for britain staying out of the single currency, and thank god we did. >> here, here! >> solutions such as euro bonds, mr. speaker, solutions such as euro bonds or other forms of guarantees now require serious consideration, and they must be matched by much more effective economic governance in the euro zone to insure fiscal responsibility is hard-wired into the system. the breakup of the euro would be

economically disastrous including for britain, and so we should accept the need for greater fiscal integration in the euro zone while insuring that we are not part of it and be our own national interests are protected. that is the message the prime minister has clearly communicated in his calls with chancellor merkle, president car soaz si and other -- sarkozy and others this week, and i've done likewise in the g7 call of the weekend and will do so again at the september g7 meeting. but this is a global as well as a european crisis and a -- at this august meeting we need an international framework that allows credit to countries like china to increase demand in debtor countries to make the difficult adjustments necessary to repay them. everyone knows what needs to be done, but progress so far has been us frustratingly so with

lengthy disagreements on technical definitions, let alone any concrete actions. the barriers are political, not economic, so it is up to the world's politicians to overcome them, and there are no excuses left. finally, mr. speaker, the u.k. like the rest of the developed world needs a new model of growth. surely, we have learned now the growth -- surely, we have learned now the growth cannot come from yet more debt and more government spending. >> here, here! >> and, mr. speaker, those who spent the whole of the last year telling us to follow the american example with yet more fiscal stimulus need to answer this simple question: why has the u.s. economy grown more slowly that be the u.k. economy so far this year? more spending now paid for by more be government borrowing and higher debt would lead directly to rising interest rates and falling international confidence that would kill off the recovery and not support it. instead, we've got to work hard

to have a private sector that competes, that invest t, that exports in today's world. that is the only route to high quality jobs and lasting prosperity. in the developed countries and especially in europe, that means making the difficult structural reforms needed to restore competitiveness and improving the underlying performance of our economies. the e.u. should be cutting red tape, not adding to it. and internationally we have the greatest stimulus of all sitting on the table in the form of the doha round, a renewed commitment to free trade across the world that should be taken up now. ..

>> mr. speaker, in these turbulent times for world markets we will continue to lead the international response. we will redouble our efforts to remove the obstacles to growth, and will stick to our plan that made britain a safe haven in the global debt storm and i commend this statement to the house. [shouting] >> mr. speaker, the shocking and inexcusable events of recent days in our city are today rightly the government first and immediate plan.

in recent days in april and perhaps even of graver threat to our country stability and behavior, putting small businesses, jobs and mortgages at risk all across our country. so it is right the chancellor is updating the house and the country today on the state of the global economy. and the parlor state of the british economy, too. and in the same spirit, parks and corporations which we've just seen from the prime minister and leading opposition, let me set out where we on the side of the house agree with the chancellor of the exchequer, as well as where we have grave concerns. first of all, the chancellor is right. we may the right decision not to join the single currency in 2003. we agree with the chancellor that a crisis in the u.s. does

require more decisive and radical actions then we have seen so far. i welcome the fact he is now at large involving himself in these discussions, and is also preparing contingency plan if british banks come under threat. tough decisions in europe, but is it not clear that if european leaders so far demanding austerity from smaller countries is not working because it is nothing to do those economies growing? and without that, countries find it harder and harder to convince the markets they can repay their debts. should the chancellor not finally take the lead in brokering the plan for growth, alongside european wide guarantees, your wide guarantees, to reduce debt service costs and stop spreading? mr. speaker, i also agree with the chancellor that months of political wrestling and inserting in the u.s. over the pace of deficit reduction have depressed confidence in u.s.

growth. but does the chancellor agreed with both who favor a balanced and sensible approach to deficit reduction? and fairly rapid u.s. interest that could drive the world bank into recession? or does he agree with his friends, and we know he has many in the republican party, and in the tea party movement who have urged deeper and faster cuts and hailed the recent budget deal as to 90% of their demand? is the chancellor on the side of u.s. federal reserve, from a treasury secretary a nobel prize winner, mr. speaker, or in the words of the business secretary, is the chancellor on the side of the right wing nuts? mr. speaker, it's also right that g7 finance ministers are now find discussing a coordinated response to what is a global crisis.

but listening to the chancellor analysis you would think that britain is a bystander, watching public debt crisis unfold in the u.s., best told by individual countries taking their own actions against debts on his analysis the faster the better. so mr. speaker, this is now a global crisis, a global growth crisis on a global scale. does the chancellor agreed with me, it is the coming together of powerful negative forces in every continent, including here in britain, continue to be leveraging by banks and the private sector, addressing tightening of consumer spending, and fiscal retrenchment from government, it is those forces together which now, a warning, this crisis could become as great as the crisis of the early 1930s. the 1930s, mr. speaker, when governments around the world ignored their collective responsibility to promote growth, plowed on with austerity

of entrenchment and ushered in a decade of depression, unemployment protectionism and fiscal interest -- instability. families and businesses deeply worried about their jobs and mortgages will hear the chancellor's talk of safe havens that concludes he is either deeply complacent, or is in complete denial about what is going on in our country. these policy started kicking in well, well before this latest financial market instability, confidence has collapsed. our economy has flatlined the nine months. and nine months growing slower than both the united states and the eurozone, and on the latest figures, the forecasts confirm to be downgraded yet again even before that downgrade, falling 46 billion pounds higher in the chancellor plan. mr. speaker, we do need a tough medium-term plan to get our deficit down. but it is -- the chancellor --

[shouting] the chancellor's reckless speeding the house will come to order and i will repeat what i've said before. if dems are shouting their heads off, and then expecting to be called, they are suffering from an element of self-delusion. mr. ed balls. >> mr. speaker, is the chancellor's reckless policy too far, to those that have ripped out the foundation of the house and left our economy deeply exposed to this global hurricane. and yet in the statement, despite all the evidence, and with our stock market falling 10% more this week, does the chancellor still cling his policies are working. and we are a safe haven. despite evidence of the last two years, credit default swaps, despite the fact in the last week long-term interest rates have fallen in britain and in the united states over the last week, despite that he still claims that falling u.k. bond

yields are not actually a sign of stagnant growth in our economy. does he not remember the japanese ministry of finance briefly took some confidence as low as 41 years in the early 1990s and at the beginning of what turned out to be a decade of no growth and stagnation? i have to say to the chancellor, however many times he says his plan is working, that doesn't make it true. however many times he claims he is restored confidence or delivered on deficit reduction, that doesn't make it true either. we know he has spent the last four nights in hollywood but he just cannot write the scripts and watch it come to light. that is not how things work in the real world, mr. speaker, and if he won't take it from me, it's interesting, if he won't take it from me he should hear the words of paul krugman, the nobel prize winner who said britain's experiment in austerity is going really, really badly.

fighting in fantasy. the wolf is at the door and osborne think it is the confidence very. mr. speaker, the chancellor finds the state of the british economy reissuing. we find it deeply worried. he rejects our call for action now, including a cat and mouse to plow in the gardens. we say this approach is deeply reckless. the eurozone is in crisis. america, the british economy is flat like a global markets is in turmoil. the world desperately needs strong and united leadership. and here in britain we need our chancellor to get out of his complacent denial and get back to reality before it is too la late. >> chancellor of the exchequer. >> thank you, mr. speaker. i did see mickey mouse in california. he seems be riding the labor party's economic policy. let me start with the areas where we agree.

we agreed that it is right for britain not to join the euro, and maybe the shadow chancellor change the official party of the labor party to that respect. on the contingency plan of the financial system, i'm very happy to offer the shadow chancellor a briefing from the tripartite authorities of what those contingency plans. obviously as he will understand, they have to remain confidential but as a say i'm very happy to give him that briefing. on what he says about european countries have introduced their deficits, being forced to do so, i would ask him, who is supposed to be lending his european countries this money that he talks about in this imaginary world where they're not taking action to reduce their deficits? he voted against the decisions we have taken to increase the resources of the imf, no children and thinks there is some magical body out there, some investors who will lend

money to these european countries that don't have credible deficit plans. it is completely nefarious as he put it. now let me talk about the u.s. he mentions the u.s.a. he called for a stand on this measure? arguing. i agree with the plan president obama's set out, george washington university. may be the leaders of the opposition doesn't know what's going on in america at the moment. [laughter] actually, actually the president of the united states, the president of the united states have set out a deficit reduction plan that is at the same pace and of the same scale as the one that we are pursuing in britain. that is what the president has said as his offer, and the the opposition he has set forward of tax increases and spending reductions are the same as the spinning consolidation that we announced last year.

they are based on some of the ideas put forward by the commission to go to the u.k. for inspiration for some of their ideas. now, he says there is a global economic crisis. he is right about that. we agree about that. but it is caused by an enormous debt overhang. that is what all fears, economist are saying at the moment. it's also right when he says the labor party need a tough deficit reduction plan. i agree with him about that. where is this tough deficit reduction plan? we have just spent the last two and a half hours listening to labor mp get up and complain about spending cuts, complained about the deficit reduction plan, yes, they are all nodding their heads. where is the top deficit reduction plan that he promised? [shouting] mr. speaker, the shadow

chancellor is now almost alone in the world in making the argument that he makes. he talks the international leadership. if you turn up at the g7, the imf, the g20, with his plan to borrow more, to increase our deficit, he would be laughed out of that meeting. he is completely irrelevant to any international debate. and i'm afraid he is living proof of why the public will never again trust the labor party with their money. [shouting] >> sir andrew tyrie. >> does the chancellor agree the collapse of the eurozone is a warning to any government which flinches on dealing with a deficit? is why the chancellor isn't quite right to stick to the commitments that he made a year a go to put the country on course of greater stability? does he not also agree credibility is a long run economic policy but also depend on a fully developed strategy for improving the supply side of

the economy? he talked a bit about that at the end of his statement. when he is intending to publish, to fully work of improvements. >> first of all, i completely agree with the treasury select committee says about the credibility of the deficit reduction plan, now disaster it would be in the current environment to weaken that plan. we would within hours i think find themselves sucked into the global debt whirlpool that other countries are struggling to get out of at the moment. so i agree with him about that. i've also agree we need to do more to bring the supply side of our economy. this is hard work. it means taking on difficult tested interest. we've seen the argument in the last few days about planning controls where we're trying to make it easier to have economic development. there are plenty of groups who pop up and up those that. it is an example of some of the battles we have to have and to

win. i confirm we will be producing the second phase of our plan for growth. is also at a time of the autumn forecast. >> mr. david miliband. >> mr. speaker, a be very grateful to mr. chancellor confirm private sector estimate privacy, which are 4.% downgrade over the next four years means it will be impossible to hit his fiscal target of turning the debt-to-gdp ratio down by the end of the parliament. >> the independent estimate most recent made, was done by the imf this month. they made an assessment using lower great forecast, and they came to the conclusion that we would have both a fiscal mandates and our target for reducing debt. and they have made that clear and they're asking for reassessment. i can't help but note that if you given the leaders speech he had written, then the labor party in a much more credible

place than it is today. >> malcolm bruce. >> as the world circles country after country, is it not an indication discovered it was right to come together with a robust strategy to bring our policy into balance? the labor party lacks credibility. if there's one area we can be sure this is done in a fair and equal way which puts the lower and middle income groups in the driving seat of recovery. they accelerate process of reducing, increasing the tax ratio and reducing taxes on those people is the best way to do it. >> well, the honorable member is absolutely right. we are taking many, over a million low-paid people out of tax altogether come and that is implementing the policy of the liberal democrats put forward at the general election. i also agree with him, it's a vindication, not just of the economic decision but also the political decisions we took. i think you're reflective

artifact we had a hung parliament, the first time since the 1970s. we formed a coalition government. i was a difficult decision for both parties involved. when you look at the political weakness in other countries, which is driving a lot of the market concerned about this countries, look at the political strength of the government in britain, i think that is attributed both political parties. you set aside their clinical differences and came together in a national interest. >> jeffrey robinson. >> thank you, mr. speaker. with the chancellor assist in the bewildering, that his plan is working. please tell the house by how much this year, this financial year he will fall short of his financial tide of the apposite reduction speak with the important difference between a time when he was in a treasure and i'm in a treasure is we have an independent office for budget responsibility that makes those announcements. and it is not the chancellor that makes those announcements for the very simple reason, that

by the end of the last government those treasury announcement were sewed discredited they were believed by absolutely no one. and one of the important decisions, early decisions we took to restore credibility and british public finances was the creation of an independent agency to make those announcements. [inaudible] if so, why? >> it is the case that in the first two quarters of this year the u.k. has grown more strongly than a tiny bit however that is not a source of comfort for the world because we need a strong u.s. economy as well. and we want to help bring about the international framework which will enable that to happen. >> mr. speaker, isn't everything it took until the end of page five of his speech with chants

of to even sadly mentioned the word growth? when i reflect upon the fact his own -- the region to the pages is a very important very important money into the low plan that was supposed to solve this but has actually left the english region stagnant lake growth over the last nine months? >> both he and i represent constituents in the northwest of england, the striking facts about the regional settlement agencies is that during that period regional disparities in our country grew. it didn't work in the way they were supposed to work, and i think local enterprise partnerships, pinball businesses and a much more practical boundaries, will help deliver that local growth. but i have to say, if he thinks all the worlds problems at the moat are caused by the fabric here, i think he's exaggerating his case. >> mr. william cash. >> the chancellor will know that our trade balance is between 2002-2009, 2010 with the other

26 number states has gone up from minus 40 billion minus 53 billion in one year. does he not agree that even he would repudiate the idea of veto a fiscal unit with a hard-core euro with such and crippled trade deficit against? the coalition agreement according to the latest answer i got from the prime minister determines our relationship with the european union. desdoes he not agree, disagree h the deputy prime minister we must every negotiation, radical renegotiation, and the repatriation of powers so we can achieve growth for all our -- shop-vacs but i think is in parliament and is, the national interest they should be suitably rationed at the chancellor of the exchequer. >> what i would say to my honorable friend is i'm afraid we'll have to agree to disagree on this. i think there monetary union

leads you to more. it was one the reasons i was against joined the single currency. however, i think it is not in our interest allow that to happen more in the eurozone. because it is in our absolute national economic interests the eurozone is more stable, and it's clear to me that means they need a more fiscal powers to reduce their instability and that currency zone. that means of course that britain's fight hard to make sure its interests are represented, that we are not part of this fiscal integration, and important decisions, for example, a financial services continue to be taken at the level of 27 but i have to say he talks about treaty changes and so on. i think the prospect of a major treaty changes to bring about this eurozone fiscal, is not imminent but i imagine there'll be a lively debate if and when it comes about. >> the number of people who claim jobseeker's allowance in

my constituents have gone up massively, hard-working people with good work records unable to find jobs. why will the chancellor not look seriously at areas like mine, do more, take measure to money in the hands of ordinary people such as reducing the vat? >> we have announced an enterprise for sheffield, and we'll have further announcements to make in the coming weeks. what i would say, evidence of the last 10 years is that actually in important regions of our country, and i have in my mind the statistics of the west midlands from her constituency, private sector employment actually fell over the decade before the financial crash. i mean, that to me shows the model of growth based on the biggest housing of any country with the possible exception of our them with the most overleveraged things, the highest budget deficit ultimately lead to ruin. and we need a different model of

growth where we go the private sector in areas like sheffield, and get real lasting jobs rather than assuming we can just use government spending. >> mr. john redwood. >> someone who believes we do need to get deficit down and do more to assist growth, to help them. will the chancellor look at the dreadful losses of rbs and they get on capital that is on their share? and see what more can be done to manage that colossal axis in the interest of economic growth and attacks from? >> well of course we continue to monitor the situation rbs and, indeed, all the british banks very closely. there is of course a concern in the financial markets about the capless vision and liquidity provisions of banks in many countries. i have to say this has not been expressed at the moment about the u.k. we passed a stress test will. we have a strong liquidity provision in place for the banks, including rbs. and i think there for the

markets can have confidence in british banks. >> but isn't it clear that the right honorable gentleman whole strategy is failing? since it is now almost entirely dependent on achieving growth? and since the economy has been flat nine for nine months, export markets are stymied. could easily have are been tried with little or no effect. interest rates already flat on the ground. what exactly does he expect the growth to come from to get out of the long stagnation? >> as i said the british economy is turning. the assessment of the bank of england and the office of budget responsibility that it will continue to grow. the growth in the last six months has been stronger than the united states of america. as i pointed out. and half a million jobs have been created in the private sector in the last year. last 12 months. so that is all good news. and i have to -- the question,

where does he expect the money to come from for additional government borrowing? who in the world which into a country that abandoned its deficit reduction plan at a time like this? particularly a country like britain which and fortune has the highest budget deficit and the g20? >> we are all still hearing that banks are not meeting sufficient funds available to small and medium-sized private enterprises to their constituency. upon which the guns strategy has been based to make up the deficit of the loss of jobs in the public sectors as result of the strategy being pursued. a downward estimate in growth. what we do business secretary mean when he said we would have to find more imaginative ways of getting the money through? can take find what he meant by that? does he agree with it? >> the challenge that we face in

many developed countries face is this, banks are shrinking their balance sheets. they got too big. they let too much money. they are also courting capital because of the current market. what we're trying to do is ensure that in the process, bending small and medium-size businesses is protected and, indeed, increase. we signed an agreement with the banks the beginning of the year, and emergency agreement to see an increase of 15% and small business lending. we will publish the figures tomorrow, so i can't get them today. but the banks themselves have already indicated that they are on track to meet a 15% increase in small business lending over this year, and i'm confident the figures tomorrow will show that that is the case. >> in june 2010, the deficit reduction plan as adding 8 billion tax rises the year, and 52 billion of cuts from 1415

every year on top of the 73 billion or so fiscal consolidation that labor had. it also forecast growth this year on 2.3, 2.8, 2.9, and two by 7%. those figures -- what with the chancellor do? we increase taxes? quickly cut public spending from then? or did he mean by adjusting our expectations accordingly that he would change his deficit reduction targets? >> we are not proposing for a second to change our deficit reduction target. and, of course, the deficit reduction targets is a structural budget deficit target. and was deliberately set as such. i have to say, the reason we set out those plans in the emergency budget, the reason we went on beyond the mantra provided by the last government, not that they're written in the proposals to do that, but the reason we went beyond that was because on

the day we came into office our country's credit rating, know what those plans were, was on a negative outlook or downgrade. our market interest rates would track income and would the governor, the bank again, the imf, the cbi think the government's budget, the previous budget deficit plan was not credible. if we stuck with that plan, even if we filled in the blank space, i believe we would now be part of the whirlwind of suffering debt crisis, the sovereign debt crisis which is engulfing other countries. >> before there's any attempt to rewrite history, the chancellor just confirm again that until last year's emergency budgets and spending plans, this country's aaa rating was on negative outlook and was only restored to stable through them measures he took last year? the real lesson of the united states, of any country that goes off its fiscal deficit reduction plan can suffer a downgrade with all the damage to jobs and

prosperity. >> well, my honorable friend is absolutely right. last year in january last year, the largest bond investor in the world was sent this. they said that u.k. is resting on a bed of nitroglycerin. and today i could read out a whole string of comments from market participants in the u.k. has been a safe haven in the sovereign debt crisis because of the disease we took. and, of course, can't impose, the rating agency which is just downgraded the u.s., to the u.k. off negative outlook, reaffirmed our aaa credit rating. and the practical consequences of this is much lower interest rates. if we pursue the policy proposed a more spending, more debt, immediate response will be higher interest rates which would kill off any recovery. and that is what it is really economic madness. >> thank you, mr. speaker. given worsening u.k. growth, with a chance of advocate

further easing? if he won't say on that, does he believe that there's no chance of rapidly rising hurting our export? >> well, these are both matters property for the bank of england. and for government to comment if he chooses to comment on the value, and in terms of positive easing, the arrangements which were as agreed by the previous government, which i continued, remain in place. if the budgetary policy committee makes a search request, then, of course, we'll seriously consider it but we've had no such request. >> sarah newton. >> yesterday in my facts reported the low-cost the barn in the u.k. on average for five years to fix of mortgages. and a 1400 pounds cheaper than two years ago. this is very welcome news for hard-working but squeezing constituents in my constituency. i can the chancellor confirmed that he will continue his policies that will have a low

interest rate so important for families and businesses across the country? >> i absolutely i will. and i think interest rates are often the missing parts of the debate in this chamber. and it is economically impossible for the opposition have more spending, more debt, and low interest rates. those things don't square in the current global economic environment. so the automatic response, the immediate response to the market and quite possibly for the monetary policy committee would be an increase in interest rates if the party opposite were to abandon the fiscal plans that we have put forward. we would have interest rates that would kill off in recover recovered. >> without preamble so we can maximize the number of contributors. >> mr. speaker, the frightening ability of the world economy has arisen since and as a result of the abandonment of postwar

arrangements designed in bretton woods and a localization and globalization of finance capital. half of that original was each of its country had its own currency. isn't that sensible to move back in that direction by establishing national currencies within the eurozone? >> well, we did abandoned the bretton woods arrangement the early 1970s. it's been a while since we've been operating under the international arrangements. i would make two observations. he makes a serious point about the eurozone. i think it would be disastrous for britain's economy if the eurozone was to break a. i think would also be disaster for the economy of the eurozone, it would leap immediately to a crisis in many european countries. and that's why in our interest, in the eurozone works. some of us question what it was right thing to go ahead with 15 years ago. we said we didn't want britain

to be a part of the. as i've said before i told you so is not an economic policy for today. but when i think he is right is that we do need better international arrangements for monitoring and dealing with the global rebalances but the fact that huge credits in countries like china and big data countries like the u.k. and united states. i'm afraid the progress of the g20 and imf on this is painstakingly slow. some of the meetings are not even able to agree on definitions. i hope if there is a silver lining to the black clouds of the moment, the financial market crisis, we will see in the autumn meetings much greater progress that i think if one accepts needs to happen. >> thank you, mr. speaker. i congratulate the chancellor with the death of reduction program. but can he tell us, what has he made about the rising price in gold? how much better off the u.k. economy would be if the last comment had sold off gold?

>> well, in anticipation that the question might come up, as it often does, treasury event, the price of gold has hit a record high as people would've seen of $1800 year it was $300 when the shadow chancellor sold our gold stock. and as result of this country has lost 12 billion pounds. >> thank you, mr. speaker. the chancellor, the house will know the chancellor does not mention the fact that we are approaching 5% inflation. he did not mention the fact that we're 46 billion over his borrowing. he did not mention the fact that consumer confidence is falling, or that the business confidence is falling. he did mention his growth plan but there is no growth. when we accept the parallel that the sharper the cuts, the deeper the cuts, the less growth there will be? >> well, the question i would ask him is who does he expect in the world to be lending money to

countries with very high budget deficits that don't have credible deficit reduction plans? what group of people would put the money on the line? that's precisely the problem we've got at the moment in the global financial markets. he asked about inflation. the governor of the bank of finland said yesterday in his press conference expected inflation to hit 5% this year. but i would say another silver lining to the dark cloud, the commodity prices have fallen in the last few weeks. the oil price has fallen somewhat off its high. one of the biggest challenges i think all developed countries, and, indeed, developing countries have faced in the last year or so has been a very big increase in the oil prices. >> mr. speaker, can i welcome the chancellor's comments about the need to cut deficits? can i also remind him that however the market is important for exports? and the growth required and sellers to the conference to transact. will he therefore while -- remember the need for demand and

still demand british economy for households and businesses is very important? and will he not lose sight? >> well, of course i agree we need to make it i think you meant partly comes from confidence. and confidence comes from economic stability. and if we think of the difference between a statement that i've been able to make debate in the house of commons and the kind of emergency statements that emergency budget cuts, that many finance ministers have had to announce the last two weeks, then i think you have in a nutshell the reason why we did the right decisions last year to get ahead of the curve and why so many other countries are now trying to catch up. >> does the chancellor say how exactly plan to control his team at when they're already offices, houses and shops which are standing empty in my constituency? >> of course we need to fill vacant properties but we also need to about new development. and i think all of us want to

protect areas of outstanding natural beauty in our country. i had against interested in the greenbelt. but, frankly, the planning decisions are so lengthy in this country and so bureaucratic and so complex that almost every commission in the last decade to look at the british economy has identified plan as an obstacle to further economic development. and i think we need to get, simple by those plans and control. so yes, we protect the countryside but we also get decisions in reasonable time that allow development to take place. so that's what we've introduce the presumption of sustainable development into the planning system. >> jeffrey brown. >> how can the chancellor -- given there are four and half million employed to justify people to each of them, or a court of them took an extra person, don't have a huge dent on the unemployment rate. >> of course small businesses are the engine of job creation

in our country. and as i say, 500,000 new jobs have been created in the private sector over the last year. that is the second highest rate of job creation in the g7. in terms of specifically helping small businesses, we avoid the increase of small business taxation which labor party put in last budget, he shakes his head. he did know but that was an increase come in small business taxation. we cut it. and it also introduced support for the exports come exports a small businesses, a central part of the strategies developed by stephen green, to help small businesses export. and, of course, i prefer to the agreements with banks which are now starting to see an increase in lending to businesses that sent it wasn't happening last year. >> chris williams and. >> the frontline economy and inflation set at 5%. the stagflation looms large. so can the chancellor to help

the house why he is so wedded to crack tea party economics when he is plenty failing the country? >> sounds like the shadow chancellor wrote that question. [laughter] let me, let me repeat what i have said early. actually, the proposal put forth in the speech of george washington is for deficit reduction in the united states of the same pace and at the same scale as the one we are pursuing and britain. and that is because in america, they have to do with the budget deficit. >> thank you, mr. speaker. europe is making increasing demands on a pension parks, and iverson made demands on our vat but is it not time had a debate on how much? he said economic would be disastrous if it broke up. but surely they should be a debate.

75,000 have signed a petition but surely this ought to be a debate. >> we do debate the european budget in this parliament, and quite lively debate. we are fighting hard to freeze in real terms, freeze the european budget. not just for next year but for the coming new financial perspective from 2014. and we have enlisted a number of allies i think across europe now. there is an understanding with very tough decisions at home of public expenditure at almost every european, in every european member state. we need to give a control on the european budget. >> the momentum for growth in u.k. economy has clearly not run. i'm glad he's going to make announcement about growth in the autumn. as the plans for those we take the imf you that if there is a prospect of a lengthy period of weak growth ahead, should doing to consider temporary tax cuts? >> well, of course we bear in

mind advice from the i f. and others. but they make it clear that that is not their scent of you at the moment. they were very -- they asked themselves, the very specific questions. and they say this but the weakness in growth and rising inflation raises the question whether it is time to adjust macroeconomic policies. the answer is no. strong fiscal consolidation is underway and remains a central. imf article for report published on the first of august. >> recently the u.k. has been highest per capital exporter in the world. vital to future growth. what action is a government taking to ensure we can continue to compete locally for services on a level playing field, particularly in the european union? >> the first thing i would say is wow it's not all the economic data has been encouraging recently, actually the services index for the united kingdom and in the last couple of weeks was

actually one of the, i think the strongest in europe. and gives us some cause for optimism in that sector. i agree with him that we want to maintain our competitiveness. and we want to export more to you, i think the agenda should be much more but complete a single market, implementing things like the services which just sat on the too difficult to handle shelf for far too long. this is the agenda we need to get the european union focused on. [inaudible] factory of divided in my constituency. they like many of the construction projects companies up and down the country are very, very worried about the prospects for immediate economic growth. particularly in the light of public procurement cuts. what i would like to ask the chancellor is, what is he going to do to stimulate demand and growth? what personas are you going to do in the very near future? so that we can create and safeguard jobs in the private

sector. [inaudible] >> the first thing i would say is, in the spending review we actually sat capital budgets which were higher than the ones set out by my predecessor, the chancellor of the exchequer of the last labour government. government. cicely capital spending budgets are higher than they would've been under the plan that she stood in the last election. when it comes to getting the construction section moving, and that is precisely what we are attacking issues like the planning delays that have been difficult it is why we made a number of tax changes in the budget to help the construction sector. the construction index was also positive in the last couple of weeks. and i would just say to her, it is not possible when you're running behind such a definite energy 20 to the banning of fiscal consolidation plans, to

seek out there in the work from money to borrow. that would lead higher interest rates, markedly higher interest rates but look at interest rates in spain and italy at the moment. we know the higher interest rates to particular damage to the construction sector. >> tobias ellwood. >> allowed us to keep our aaa rating, unlike some other countries like the united states. and possibly now france. of the chancellor say what would happen if france did lose its aaa rating in regards to e.u. stability funds? and the ability for eurozone bail outs to continue in the future? >> my honorable friends asked a good question, which has been asked in the markets at the moment i have to say one of the causes of instability in the last couple of weeks has been loose comments from finance ministers on issues such as debt. so i will take the fifth and not comment. >> jeremy corbin.

>> does the united states have any concerns about the power of the credit rating agency that is him and at a whim can cause disasters on smaller a comments to increase interest rates, lead to public spending cuts and lead to devastation for many poor people's lives? does not think it is time to report under some kind of accountable control? >> well, it might surprise the honorable gentleman to say, ashley i agree with at least part of what you say. we have concerns about the way the credit rating agencies have operated, and that's why we've been heart of european discussions against european rules on credit rating agencies in place. and i think they are appropriate. where i disagree with him is to blame all of what's happening on credit rating agencies the credit rating agencies, however imperfect are trying to give market investors some idea of

the credit worthiness of countries and india companies. and the truth is this. did not lead to spending cuts. the reason we have had to take spending cuts is this country is currently spending close to 50% of gdp on public expenditure. that is far higher than the historic average under conservative and labour governments, and that is why we are having to act. we are doing it because with a record budget deficit, the highest in our peacetime history. and highest energy 20. >> mark spencer. >> thank you, mr. speaker. the chancellor made reference to murder and and an agreement with the banks. but is he aware that these banks are double counting their lending by forcing businesses to convert overdraft into long-term growth? i have a business in macon stages want to expand, who want to take a more staff, and they cannot do this because not only for banks nothing helpful, they are being obstructive.

>> i'm very happy to look at the specific constituency case that he mentions, 11 look into the details of that. and get back to them with an answer. [inaudible] forecasting even higher unemployment and more jobs will be lost. the government wants policies. they are putting new work obligations. [inaudible] not all of them will. and, therefore, really wrong that the people who have been doing all they can to find work, and so helpless, the loss of their benefits. can the chancellor speak to the effect of this? these obligations should be

lifted? >> first of all, if i might correct the honorable lady. the obr are not forecasting rising unemployment. they aren't forecasting falling. i reminder have the money private sector jobs have been great over the last year. but let me give directly with your point about social security. the welfare system is a policy trap that is discouraging people from working. and people on benefits face incredibly high marginal tax rates, if they seek work. that is why my secretary, my right honorable friend in work and pension has my full support seeking major reform of the welfare system so that we incentivize people into work. and i think it's one of the most important reforms this country is undertaking. >> given our country's debt, it's reassuring the price of the

government borrowing has fallen to the lowest level since the last liberal government. how much more expensive, how much more expensive would government borrowing mean if our interest rates have gone the same way as those in other parts of your? >> it would have been of course ruinous. not just ruin is for individuals but also ruined his for the government. one of the largest governments things i've inherited unfortunately is debt interest. we are raising taxes in order to pay our international credit. it is now in the forecast to rise sadly over the parliament because as we reduce the deficit and that's what it so important to try to get debt falling by the end of the parliament. so it would, of course any reduction in our guild is good for the government. and it saves us money as well. >> can the chancellor explain why he --

[inaudible] >> the office of the budget responsibly makes its independent fiscal forecasts, which is one of the great, i think one of the great policy developments of this government that's been created by an independent body. they would be making its autumn forecast in the usual way. >> the chancellor rightly mentions the issue about the doha round and about trade. trade is something that permeates every single aspect of governments growth agenda. i just wonder whether the chance would like to comment on whether he believes that the g20 really appreciates how crucially important releasing trade and ensuring greater free trade at this particular moment in the global economic crisis? >> well, i think the honorable friend is right. i think the significance of this is it is therefore the countries of the world to seize today this

month, next month, if you're looking around the world for something, in very short order, increased global demand, it is sitting there in the doha round i hope to make progress in the g20. it will be the leading aspect of making progress in the g20. we have some good i -- good allies. there are both obstacles. >> mr. speaker, is it to we have been used, why are we seeing significant growth in the value of families? >> as i say, make it a very simple policy not to comment as previous chances have decided also to do on the value of sterling. i don't propose to break that commitment today. >> in terms of the steamers to the british economy, what effect does a -- will be the effect

increase borrowing which we didn't have an impact on increase mortgage rates, demented people up and down the country? what would be the aggregate impact, say, over vat? >> of course my honorable friend is right that there's a very significant monetary stimulus in place with these very low market interest rates. and, of course, the official rate. and both of those would go up, almost certainly in the case of the market come and probably indicates of the monetary policy. and that is why this talk of more fiscal standards, alone in the world. this debate is really happening almost alone in the labour party of the united kingdom. it's very difficult to find an opposition in where in europe that is arguing for less than reduction, coming off the published plans of government. and as i say, the shadow

chancellor ashley turned out that one of these meetings and put forward his proposal i think you'd be laughed out of the meeting. [inaudible] join me in saying our best wishes to the officers injured last evening. of his statement come and ask him, with 11% coming off the stock market, the british values, this is not an impact in many, many pensioners. what's he going to do about it? >> well of course the stock market falls to affect pension investments, and, indeed, other equity investments that people have. our stock market has fallen, not as much of some, but nevertheless it has fallen. he says why is that. it's because of the global lack of confidence in governments abilities to deal with their deficits. and the reason i shall we've not

seen the turbulence in our bond market is precisely because we have got at least a credible deficit reduction plan. and i might know, mr. speaker, it's been over an hour since i've been answering questions. and our almost since the shadow chancellor said we needed and that labour party a plan. has one single labour mp got up and proposed one single component of deficit reduction plan. know, they have not. >> the fact that over the last year we have seen the private sector create four times more jobs than has been lost in the public sector does my right of what the friend agree with me, is it a better approach to job creation and the overreliance on the public sector? >> my on the front is absolutely. first of all i should take the opportunity which i didn't take on responses last question. to praise the work of the police

who have shown outstanding bravery in the last few days. and my thoughts go out to the member to the injured officers. he's right, that surely we have learned something from the last decade, which is relying on and sustainable housing great, unsustainable government spending, unsustainable bank lending is not a model of growth that this country can pursue. again we got to get office countries addiction to debt. and an addiction to debt not just in government but in banks and in household. that is what we're doing. it is a difficult adjustment that many western economies are having to go through. unfortunate for us, we were the most enthusiastic participants. it is a typical adjustment here in the u.k. >> does he agree with recommendations that he said -- [inaudible]

>> we are in active discussions as he well knows with all the parties in wales, and with the welsh government. discussing what further powers might be default to the welsh assembly, including fiscal powers which might have a role in economic development. i don't want to preempt that debate, but the fact that we are compared to engage in shows we're doing this this in good faith. >> mr. neal carmichael. >> given the credibility the coalition government has worked with deficit reduction program, and also low interest rates, does he think that kind of message would be appropriate to encourage the same competition making swift and strong across the european eurozone? >> i think we have got ahead of

the curve. and as a say i'm not going to -- the limit having to come to the apartment and announce emergency budget cuts because they didn't get ahead of the curve. i think it is important for the euro zone countries and, indeed, all country to fiscal credibility. there are many good examples in the eurozone of countries that have done that, and we are part of that act. [inaudible] >> can i say to the chance of people to my constituency, mass unemployment -- can ask the chance to win since to do to in my constituency? >> i would make this observati observation, that its own every labour government in history that has --

[shouting] >> isn't it the case the better way to the hard-pressed families, job seekers, and pensioners mentioned by all members of the house that are getting on with the business of trying to make savings their own budget, their families income, that they need to see a stable economy in order to make sure that they are eventually maintain? >> well, my honorable friend is right. what we are able to provide is that stability in the government debt market which is lacking sadly as other government debt markets. but i think all of us now need to rise to the challenge of removing the obstacles to growth. elamin confronting some vested interest, even potentially some trade unions. but is actually essential that this country wakes up to the competitive pressures of the modern will, to competitive pressures to countries like china, brazil and others present to us. and get that private sector

growing in a way that will create sustainable jobs that were so lacking in the last 10 years. >> lester government borrowing pay 25 pounds than lower anticipated. can you give us an explanation, chancellor? >> as i already explained, we have an independent office -- i was pretty tempted to say that the and was the previous chancellor knew that he didn't want to have to downgrade his foreign forecast before the general election so recorded kitchen sink the borrowing of the forecast a year before to make sure he was able to show a reduction just before the general election. ..

>> the problem with american references at the moment in this debate. i fink the point i would say to my honorable friend is that actually some of the asset sales that we have proposed have indeed undertaken a review receipts to invest in the new infrastructure or a particular industry, and of course, we've got to deal with them on the case by case basis, but the spending reviews did set out how we were going to use some of the asset sales for future investments. >> pamela nash? >> mentioned in a statement earlier the gross forecast for this country five times since he

took office. how does the chancellor say that and that is an economic haven? >> bye quoting the the governor of england, and she said that -- they appointed this, governor of the bank of england. what the governor of the bank of england said is the u.k. has done what it can in terms of putting major conditions in place to assure the rebalancing and recovery. we have incredible fiscal plan which many countries do not come in and we do. that's what he said yesterday. >> james? >> thank you mr. speaker. he adopted to the debt funded cut that would have an impact upon the u.k. aaa credit rating. >> i think a multi-billion dollar increase in our deficit would undermine market

confidence in the u.k., would lead to an immediate, probably within minutes, and interest rates the what mean higher effective mortgage rates for businesses and for families picks, and it would be one of the things that would take off the recovery. >> i was pleased to visit the energy services in my constituency tuesday. a company that invested 20 billion pounds to meet transition pieces for the offshore when the industry. they are frustrated and the disadvantage they have that germany and other european countries have by its own. with the chancellor do something to help the british industry in sure the wind farm by british help hundreds of jobs and get the economy moving again? >> we are seeking to develop a domestic green energy business of which it sounds as if the company that he speaks to is a

good example. i hope they by british products like wind turbines because they are the best in the world come and to help that company make the best products in the world we have to trade competitive business components because the competition from the likes of germany is so strong. and i would also say that some of the decisions that have been taken on our energy policy has provided some stability that allows investment in that renewable energy technology. >> and drew curious mix before mr. speaker. that's one of the regions the last ten years lost private sector jobs on the public sector. our way back to the manufacturing -- can i ask the chancellor to look very closely at things like the carbon for pricing and putting the wings and perhaps more could he look very seriously at [inaudible] by next year?

demint first of all i completely agree with him about the need to make progress on the planning reforms for the reasons that he said. that does mean in difficult positions and taking on pressure groups but i think that is absolutely right and the planning of reforms we make deutsch into account the need to preserve our natural environment the bridge toll is something i'm very familiar with because of the member who is a tireless campaign on this and the treasury is conducting an economic study to the effects of the bridge tolls, and there will be reporting at some point in this parliament. >> dr. blackmon? >> i congratulate the chancellor for recognizing there's a link between what happened in the global economy and the u.k.

economy. in the light of this can he say what it's going to take to ensure the problems that the u.s. economy and the eurozone do not need to further downward pressure on u.k. economic growth? >> chancellor? >> unfortunately i can't, to the to make the u.k. not affordable to those events elsewhere in the world but of course there's a global connection to it i would draw this distinction between what i am saying and what my predecessor, the previous prime minister says. i'm not saying britain has been blameless in the way it's handled its economy in the last decade or so. [laughter] we were the most enthusiastic participant of a global debt and as a result of the more difficult adjustments. >> roger williams. >> recent reports have shown that the economy has the capacity to grow and grow quickly if it has the right

conditions. will the chancellor confirmed that in the state on the growth -- plan for growth those conditions will be met and the economy can play its part in approaching the national finances? >> well, the first, but i would say to my friend, is we recognize the specific need for the economy. it's one of the specific strands in the second phase of the growth review, and i think one of the key -- i know something of the constituencies -- one of the absolute keys to the rural economic development is the infrastructure world and which i think opens up all sorts of business opportunities in what has previously been regarded as a remote places, and i think that is why we are right to be investing in a rural broadband across the u.k.. >> dr. alan white head. >> but we took the opportunity first to repudiate the office of budget responsibility so growth

with 46 billion additional borrowing requirements, and what additional cuts is he planning in order to avoid that outcome? >> i think the honorable gentleman says two things, one is the office of budget responsibility is independent. i have to say if it's going to work as a permanent institution, it is going to need the support of the offical opposition, and i hope that's forthcoming not just in the latter support but also in the spirit, which is there is not a constant demand for the chancellor today to provide their own fiscal forecast. so there will be the first point i would make. the second point i would make to the honorable gentleman is as i say, we have put in place this credible deficit-reduction plan. we have heard from the chancellor of the beginning of the session that labor needed an incredible deficit reduction plan as well.

not a single member including him has proposed a single pound of spending cuts in this session. and i think until labor party gets that credible plan that will not really be able to pass a sensible debate. >> george freeman. >> as my honorable friend seen the data that none of the showings of the private sector four times more than the sector has lost but also britain is now second in the g20 league of net job creation; doesn't that show that the strategy is working and that the shadow job growth is out of touch and hasn't learned the government role you can't borrow your way out of a debt crisis? >> will, he has a history and the golden rules and they don't usually turn out to work. but my honorable friend is right. my honorable friend is right that we are seeing job creation. we are not removed the complacent by that. we are working extremely hard seeking to improve the

competitiveness and making sure it's able to export and invest. that is the model of growth this country has to pursue. >> thank you mr. speaker. the last nine months have been planned to present in the proceedings in the nine months it was 2.1%. many have been about the growth and economic and regeneration. if we continue to see growth to this nature either flat line will the chancellor look again and will he be looking at policy that stimulates growth? >> wealthy only thing i've heard from the party opposite which by the we presided over the deepest recession since the 1930's -- the only thing knife heard is a complaint every time any proposal was put forward to cut the public expenditure. we just heard that earlier today. i have not heard any growth

policy as she puts it from the labor party. i just heard opportunistic opposition to everything this government is doing that a credible deficit-reduction plan. the chancellor then is going to >> in a few moments, secretary of state clinton on the after can drought then president obama on the economy and jobs then mitt romney speaks to fairgoers at the iowa state fair. on "washington journal" this morning, we'll talk about the economy, the deficit and the debt ceiling with florida's republican governor, rick scott and representative jim himes, a member of the financial services committee. and our series on jobs in america concludes with a segment on women in the

workforce. our guests are census director robert groves and eileen apple balm with policy research. "washington journal" is live on c-span every day at 7:00 a.m. eastern. several live events to tell you about this morning, the u.s. commission on civil rights looks at how minority communities are affected by eminent domain, taking private property for public use. and here on c-span we'll be live from the brookings institution with a forum on how the federal deficit affects national security. >> this weekend on book tv on c-span 2, frederick homestead

is remembered for designing places, also from washington, book tv stops by and on "afterwards" the skull and cross bones are long gone. piretting in the 21st century is the home of night vision goggles. sign up for book tv alert. its weekend schedules in your inbox. this weekend on american history tv on c-span three, we'll visit the office of the ark i'vist. current defense secretary leon i netta recalls working in the administration of richard nixon, his event actual resignation and his switch to

the deapt party. author irwin gelman looks at cuban and the u.s. relations in the 150's and 1960's. >> secretary of state hillary clinton says the african drought and family inshows the need to invest in agriculture and nutrition. the u.s. is providing another $17 million in food aid to the region. this is a little more than a half-hour. >> good morning, everybody. thank you for coming. my name is -- the director general of the into spood policy research institute. we welcome secretary of state hillary rod m clinton for a

special presentation. what brings secretary clinton here is a great and you are intelligent concern that we appreciate. the family inin somalia and humanitarian crisis in the horn of africa needs to be addressed. we have studied agriculture, food production, drought and the family inin east africa for years and are deeply concerned about the slow transmission of slow research and policy into action on a local, national and international scale. the latest information coming from the horn of africa is nothing short of shocking.

people in need of lifesaving care in kenya and smalya. starving children. three conservative poor rainy seasons produces no harvest. it's expected crop yields will continue to be weak this year. the food prices throughout the region will be short. for example, the price of -- rose by 125%. just during the first half of 2011 alone, in the last six or seven months, the food prices in the region have shot up.

there is a crisis. as far back as -- how far, an alert was issued that back-to-back weak rainy seasons were expected in africa and emergencies were possible. what was missing, however was action and a political will required to put this vital information to use. a strategic plan needs to be developed so that systems such as early warning systems trigger action to be carried out by designated organizations. so what must be done to end the family inand prevent it from ever happening again?

in a short-term international effort, much humanitarian efforts. most of the money will go to much-needed food, water and medical aid but should also be used to protect the few remaining assets of the poor. particularly livestock. and focus on groups like women and children. policymakers must ensure that trade stays up. the national governments should eliminate export bans on ethiopia and kenya. the restrictions need to be

stopped in a crisis. again, clear channels to trigger the release of these reserves during emergencies are necessary. as a way to ensure the food actually reach the poor. in a long time to prevent future family in, we have to help farmers and build up their resilience by improving their productivity. so african government must meet their pledges to allocate 10% of their national budget to support smaller-based agricultural growth and programs. we also need access to a wide range of risk management tools, including techniques and drought resistant varieties and

insurance that protects against droughts and other shocks. the research groups for agricultural research can provide the evidence needed to fwide some policies and build a strong program in the horn of africa. and thank you, your honor evidence into policy and action, we need engaged, dedicated policymakers. with that i turn the platform over to secretary of state, hillary rod m clinton whose tireless efforts need no formal introduction. the floor is yours. [applause] >> thank you. thank you so much. [applause] >> thank you so much director

general for not only those remarks, but for the work that is done every day, here, at this premiere organization designed to come forward with sustainable solutions for ending hunger and poverty. and i want to thank the international food policy institute for hosting me today, and for the leadership you show in a key area of global development, helping governments design and implement successful policies for reducing hunger and undernutrition. this is an issue that is on your minds every day. but it is now on the minds of many people because of the crisis that is raging in the horn of africa. it is first a food crisis. a severe drought has put more than 12 million people in

ethiopia, kenya, djibouti and smalya in danger of starvation. it is also a refugee crisis, because at this point hundreds of thousands of people have left their homes in search of food and safety. some are walking more than 100 miles with their children in their arms to reach refugee camps, which are so overcrowded that how the st.s wait outside the fences, and more arrive every minute, many close to death. what is happening in the horn of africa is the most severe humanitarian emergency in the world today, and the worst that east africa has seen in several decades. the united states and our partners in the region including the world food program, the u.s. high commissioner for refugees, ewan seff, n.g.o.'s and donor

governments are racing to save as many lives as possible. fortunately, we did, as the director general just said, have a bit of a head start because of the family inearly warning system network known as fuse net. the united states summits it, along with others. it monitors drought and crop conditions and alerts governments and aid groups when crises are comingal -- are coming. this network along with the food and agricultural organization enabled us to start positioning food in the region last year. but a great deal more must be done, and it must be done fast. family inconditions in somalia are likely to get worse before they level off. and while we hurry to deliver

lifesaving assistance, we must also maintain our focus on the future by continuing to invest in long-term food security in countries that are susceptible to it is this connection between food emergencies and to securities that i would like to speak to today. our goal is not only to help the region, through this crisis, but working with organizations to do all we can to prevent an from ever happening again. food security is the key. let me just briefly summarize our emergency response to date. the united states is the largest single country contributor of food and humanitarian assistance to the horn of africa.

in light of the current crisis, we are making available an additional $105 million in emergency funding. 17 million more, 12 million specifically for helping the people of somalia. that brings the total u.s. humanitarian assistance to the region to more than $580 million this year. than 4.6ching more million people with this aid. it helps to pay for food distributions, therapeutic feeding for those who are severely malnourished, for clean water, health care, sanitation, protection and other services for those in need. let me say how grateful i am to the aid workers who are delivering this assistance swiftly and effectively and extremely difficult and often dangerous circumstances. over the course of this crisis,

u.s. officials have made multiple trips to the region, including just this past weekend to kenya. a delegation led by dr. jill biden and joined by dr. bill frist, u.s. and administrator rod shock, eric swartz our system secretary of state for population refugees and migration, and bill smith from the white house. they saw the best and worst of what is happening on the ground. they visited the king and agricultural research institute, a top notch facility support by the u.s. government. i had the chance to visit it on my trip to kenya two years ago. i was very impressed by the work i saw their by scientists for cultivating crops that can thrive in drought and are enriched with the central nutrients. these breakthroughs have already

saved lives, and i am sure we will save many more in the future. but the delegation also visited the refugee complex in eastern kenya. even before this emergency, it was the largest refugee camp in the world. some people have been living there now for 20 years. it was originally built for 90,000 people. 20 years later, more than 420,000 live there, including thousands of third-generation residents. so the current refugee crisis is taking place against the backdrop of a prolonged refugee crisis. the united nations is working as fast as it can to build new facilities, but well over one dozen people arrive every day. -- but well over 1000 people arrive every day. the vast majority are somalis. somalia is the epicenter of this

emergency. southern and central somalia are the only places in the region where famine has been officially declared. unlike ethiopia and kenya, somalia has no effective national governments. the terrorist group al-shabab has prevented humanitarian assistance from coming in. it has killed and threatened aid workers. there are credible reports that al-shabab is preventing desperate somalis from leaving the areas under its control. nonetheless, hundreds of thousands of somalis, largely women and children, are managing to flee to the north or leave the country altogether. they are poring over the borders into ethiopia, kenya, and elsewhere. that, in turn, severely straining the capacity of those local communities and countries. the united states is providing

$92 million in emergency humanitarian assistance inside somalia. to facilitate aid within somalia's central and southern region, we have recently issued new guidance about the use of u.s. funds to help aid groups working with the united states government tried to save more lives. still, a great deal depends on whether al-shabab is willing to let international assistance be delivered. so once again, i urge al-shabab to heed the call is not only of the international community, including the arab league, but of the cries of their own people. allow these secure delivery of release to all of those who are afflicted. the united states will continue to work with somalis in the international community to bring the hope of peace and stability to somalia. we join all somalis in helping

that there will be a future with a functioning government that can protect the somali people against famine and help to build a sustainable agricultural sector. these are the steps we're taking to address the immediate crisis. but as we proceed, we must not forget we have seen crises like this before. first comes a severe drought, then crops fail, livestock parish, food prices soar, thousands of people die from starvation -- most of them children -- and thousands more pick up and move. every few decades, the cycle repeats. it would be easy to throw up our hands and when it all on forces beyond our control, but this cycle is not inevitable. those whose shortages may be triggered by drought, they are not caused by drought a rather by weak or nonexistent agricultural systems that fail

to produce enough food or market opportunities in good times, and bring down completely in the bad times. in other words, a hunger crisis not solely an act of god. it is a complex problem of infrastructure, governments, market, education. these are things that we can shape and strengthen. so that means this is a problem we can solve if we have the will and we put to work the expertise the organization's possess. we do have the know-how. we have the tools, the resources. increasingly, we have the will to make chronic food shortages and undernutrition in memory for the millions worldwide who are now vulnerable. while some may say this is a conversation for another time, that we should worry about preventing food crises only

after this one has passed, i respectfully disagree. right now when the effects of food security are the most extreme, we must rededicate ourselves to breaking the cycle of food shortages, suffering, and dislocation that we see playing out once again in the horn of africa. we must support countries working to achieve food security. we owe it to the people whose lives we're trying to save. frankly, we owe it to the donors and taxpayers who make our work possible. investing now decreases the chances that americans or others will be called upon in the future to face these same challenges in 10 or 20 years from now. and i will argue that we will be investing in our own security by supporting political stability and economic growth worldwide. for the past two and a half years, i have traveled the world from kenya to india to italy,

talking to everyone from farmers and agricultural scientists to aid workers and heads of state about feed the future. u.s. food security initiative and center of the obama at the ministration foreign policy. the u.s. has pledged $3.5 billion to support rigorously developed plans to fortify the entire agricultural chain of our partner countries from the fields and grazing areas where crops are grown and livestock raised to the markets where farmers sell their wares to the tables and hearts were people receive the nutrition they need to stay healthy. to name just a few of the things that we are doing through our feet the future initiative, we're helping farmers gain access to fertilizers and improved seeds. we're setting up extension services to teach methods of conservation agriculture.

we are supporting the creation of cooperative, so farmers can gain more purchasing power and a greater political voice. we are spreading the tools for reducing post harvest losses, so after months of hard work and good harvest, farmers do not lose 4%, 50%, 60% of their crops. we have also helped create a global partnership called 1000 days, to improve nutrition during the critical period from the start of pregnancy through a child's second birthday. nutritional deficits during these 1000 days lead to permanent stunting, reduced, to function, and a greater susceptibility to disease that cannot be reversed by improved nutrition later in life. to that of our partner countries

in feed the future are ethiopia and kenya. even as this crisis, they prove that progress is possible. the last time a drought of this magnitude struck ethiopia in 2002-2003, more than 13 million people faced starvation. today, fewer than 5 million do. that is still an unacceptably large number, but it is also an astonishing improvement and a relatively short period of time. it is evidence that investments in food security can pay off powerfully. in 2005, the ethiopian government established the productive safety net program with support from international donors, including the u.s. it helps small holder farmers diversify their crops, create local markets, better manage their water resources, an increase the nutritional

concept -- contest of their diets and those of their children. more than 7.6 million farmers and herder's have been helped by this program. people who are not among those in need of emergency aid today. in kenya, as well, people who are greatly affected by the last severe drought are safe, even thriving. u.s. aid shared a story about a woman from last month from the northernmost part of kenya. it has been the hardest hit by the current drought. she lives on a communal farm made up of former livestock herders whose animals all died in the previous droughts. today, thanks to help from international donors, she and the other farmers raise various vegetables and fruits, a includingmangos. her crop is so abundant that she is not only selling locally, but

exporting them to the middle east. in both ethiopia and kenya, the u.s. is helping to carry out comprehensive strategies that were designed by the countries themselves. to suit their distinct needs and strength. in ethiopia, strengthening the value chain to help small farmers sell their products a local and regional markets. in kenya, supporting herders is a leading concern. u.s. aid is using them to connect markets, improved animal health services, help local institutions lobby for better livestock trade policies. both governments have developed country investment plan. both have committed to invest at least 10% of the national budget on agriculture. kenya is nearly there and ethiopia has exceeded that goal. in both countries, we're paying special attention to gender.

to ensure the women who do a significant amount of the planting, harvesting, selling, and cooking are effectively supported. we're also paying attention to the environmental impact of our program to protect the water and land for future generations can to help farmers adapt to the effects of climate change. our goals are ambitious. in the next five years, the u.s. aims to help more than half a million people in ethiopia permanently escape poverty and hunger, and more than 430,000 children benefit from improved nutrition. in kenya, we aim to raise incomes and improve nutrition for a 800,000 people. but there are still millions of people in these countries, certainly throughout the world, who need emergency help and they need it now. yes, we are trying as hard as we

can to reach them, but it is also important to recognize that there must the concerted efforts by governments and people to help themselves and there is no question that ethiopia and kenya are moving in the right direction. now we must help them continue that progress. that is a job for all of us. the primary responsibility naturally lies with government and the people of countries like ethiopia and kenya. i have reached out to the leaders of these countries, and they know the kinds of changes they still need to make. they need to move to free trade in grain imports and exports. they need to improve credit and land use policies to support farmers and herder's. they need to ensure that public reserves are available when shortages loom. they need to welcome new technology to bolster drought tolerance, disease resistance,

and crop yields. these can be challenging policies to get right, but they are absolutely essential for ensuring what storage chip for the land and sustainable economic opportunities for the people. the countries that pledged their support for food security at the g8 summit in 2009 must make good on their commitments. i certainly understand the difficult budget times we are living through, but we have to rededicate ourselves to doing development differently as we said we would. new donor countries have gotten involved to end the current food emergency. i urge them also to join with us in helping to create lasting food security. a year ago, the u.s. led the g- 20 countries in establishing an innovative, fund-based program of the world bank called the

global agriculture and food security program. by pooling our resources and efforts behind country developed and country owned plants, we can reach more farmers and more villages and multiplied our impact. this fund shares many of the characteristics of our own feed the future initiative including a strong voice for civil society and rigorous systems for monitoring and evaluating results. to make sure contributions are making a real difference in people's lives. with support from seven donors -- australia, canada, ireland, the republic of korea, spain, the united states, and the hill and melinda gates foundation -- the fund has already awarded nearly half a billion dollars to 12 countries, including a $51.5 million grant to ethiopia. we're also looking to the private sector to contribute, especially in coming up with innovative ideas for reducing

hunger and food security. to offer two examples, we're working with a tech company on the ground in africa to protect life-saving information across the region so they know where relief can be found nearby. we're supporting a partnership among general mills, cargill and dsm your system to processors in kenya and other countries, improve their ability to produce high-quality, nutritious, safe food. this will benefit local consumers and prepare a local food producers to compete in regional markets. i have said before in many settings, protect only other conferences, africa must drop its trade barriers so the african people can trade with each other. sub-saharan africa has more trade barriers and are more limited and into a country

regional trade than any part of the world. intercountry regional trade than any part of the world. from the tsunami in 2004 to the earthquake in haiti, individual donations can have a tremendous impact. even just a few dollars can save lives. the heroic organizations operating in the horn of africa right now need all the support we can offer. usaid home page provides access to affirmation about several groups, so it is an easy way for people to help. just visit usaid.gov. also, mobile giving. providing life sustaining efforts in the horn of africa, the united nations world food program. you can give $10 to the world food program usa by texting aid

to 27722. humanitarian assistance is in the american dna. it is one of our core values. the american people have shown time and again that we will give to help people in dire circumstances. we are inspired to see the outpouring that has already begun, and we hope it will continue and grow. additionally, the state department is working with the american refugee committee and the design firm ido and the neighbors campaign to engage the somali diaspora. not only in the united states, but around the world, to help raise awareness and fund for the relief effort. we're working with the white house to mobilize churches, mosques, and synagogues to support this effort. we must remember that time is not on our side.

every minute, more people, mostly women and mostly children, are dying. they are becoming sick. they are fleeing their homes. we must respond. we need to rise to the level of this emergency by acting smarter and faster than we have before to achieve both short-term relief and long-term progress. think of what it would mean if we do succeed. millions of people would be saved from this current calamity. millions more would no longer live tenuous existence is, always prepared to pick up and move to find food if drown or conflict or other crises occur. parents were no longer have to endure the agony of losing their children when the food runs out.

food aid from countries like the united states would be needed much less frequently because we are supporting agricultural self-sufficiency. this would be a transformational shift for the people of our partner countries. it would be a new era of security, stability, health, and economic opportunity, peace and stability. it was signal a new chapter in the world's relationship with the people of these countries as they become themselves unable to care for their families, they will become real models and examples of prosperity and stability. they will become partners to do even more to help people live up to their own god-given potential. if we can achieve that future, we will have done something truly remarkable. just as the green revolution made such a difference, what we're trying to do now is to get

back to what worked then, focus on the basics, focus on the work that is done by ifpri. at a chance to meet the directors and they're working on how you enhance the nutritional substance with micronutrients. they're working on how you provide better seats for crops, how you help herders whose natural desire is to hold on to their livestock because it represents to the rest of the world their significance. all of this is in the tradition of the green revolution, which made such a difference. but in the world moved away thinking that our work was done. in fact, it was not. we got a very good at delivering emergency assistance when we put our minds to it. but we lost our way.

we have to do both. both the crisis in the future investments, so that we can see progress in very tangible ways. history will record that as being a significant accomplishment for all, including those of you in this room who play your part. so we have a lot of work ahead of us. but i came today to make sure that in my own country and beyond, people know we have a crisis and we must respond. we must try to save those lives that are being lost in this brutal marches to try to get to safety. we must support the refugee camps and do everything we can to provide the immediate help that is needed. but let's not just do that. as important as that is.

let's use this opportunity to make very clear what more we need to do together to try to avoid this happening again. i could think of no better place to come to make that plea and to issue that challenge than to the international food policy research institute. thank you all very much. [applause] >> in a few moments, president obama on the economy and jobs. he spoke in michigan yesterday. republican presidential candidate mitt romney speaks with fear gores of the iowa

state fair. an "washington journal" we will talk about the economy, the deficit, and the debt ceiling with florida's republican governor rick scott and representative jim kinds of connecticut and a member of the financial services committee. our series on jobs in america concludes with a segment on women in the work force. our guests are census bureau director robert gross and eileen appelbaum. "washington journal" is live on c-span every day at 7:00 a.m. eastern. several live events to tell you about this morning, the u.s. commission on civil rights looks at how minority communities are affected by the eminent domain, taking private property for public use. that is on our coming -- companion network c-span2.

c-span, live from the brookings institution at 10:00 eastern with a form on the federal deficit affecting national security. analysts include former national security adviser steven hadley. >> watch more video of the candidates. see what political reporters are single track the latest campaign contributions with c-span's website for 2012. easy-to-use, navigate the political landscape would twister feeds and facebook updates from the campaigns. canada biographies and the latest polling data plus links to c-span media and the early primary and caucus states. all act president obama on the economy, jobs, and the political climate in washington. he spoke after touring a battery

facility in grand rapids, michigan. this is about a half-hour. >> thank you. please have a seat. hello. it is good to be back in michigan. a couple of people i want to thank a particular, your ceo is here. steve? [applause] sitting next to him, one of my favorite people and one of the finest senators and the country, carl levin is in the house. [applause] i just had a chance to see what you guys are doing in this plant. it is very impressive. elizabeth was giving me a tour and was very patient with me and i think that understood about half of what she said. [laughter] at a time when americans are rightly focused on our economy,

when americans are asking about what is our path forward, all of you here are providing a powerful answer. this is one of the most advanced factories in the world. you are helping america lead and a growing industry. you're showing us how we can come back from the worst recession that we have had in generations, and start making things here in america that are sold all around the world. that is why i am here today. i have said before and i will say it again, you cannot spend against the american worker. [applause] do not bet against american ingenuity. [applause]

the reason a plant like this exists is because we are a country of unmatched freedom where ground-breaking ideas flourished. we have the finest universities, the finest technical schools, the most creative scientists, the best entrepreneurs, all of which is why we are home to the world's most dynamic and successful businesses -- large and small. [applause] that is why even in these difficult times, there is not a single country on earth that would not trade places with us. not one. we have to remember that. but we also know that we face some tough challenges right now. you know what they are. you live them every day. in your communities and families, you know too many

people who are out of work, struggling to get by with fewer ships were fewer customers, paychecks are not big enough, costs are too high. and even though the economy has started growing again since the recession started in 2007, the fact is, it is not growing fast enough. now some of what we're facing today has to do with events beyond our control. the economy was improving and improving through 2009, 2010. the beginning of this year, suddenly, it was hit with the unrest in the middle east that helped send gas prices through the roof. europe is dealing with all sorts of financial turmoil that is lapping up on our shores. japan's tragic earthquake hurt economies around the globe, including ours, cut off some

supply chains that are very important to us. and all of this has further challenged our economy. as we have seen, it is playing out in the stock market. wild swings, up and down. it makes folks nervous. it affects families all across america. challenges like these -- earthquakes, revolutions -- those are things we cannot control. but what we can control is our response to these challenges. what we can control is what happens in washington. unfortunately, what we have seen in washington the last few months has been the worst kind of partisanship, the worst kind of gridlock, and the gridlock has undermined