rate does not work. all of the central banks have similar tools to the ones we have, including the ability to pay interest on reserves, the ability to sell assets, and the ability to sterilize their balance sheet. we all have tools to withdraw that accommodation and to shrink the balance sheet. so i think this is currently where the best approach, the best available approach is to provide additional financial accommodation where rates are close to zero. >> so keep printing basically? >> i know there has been some debate about use of the word printing. it is the fact the case the amount of currency in circulation has not been affected by the policies.

the amount of electronic reserves held by the banks has gone up a great deal, but they're sitting there not doing much. we raise the question of whether they should be doing more in some sense. so far we have not seen any indication that they have proved inflationary. >> does the federal reserve own and gold? >> known -- no. >> so you did not hold any gold? >> maybe a little bit. >> somebody asked me to ask you that question. i am told we have gold certificates. >> what to do with those? >> their part of our reserves. the great bulk of u.s. gold is held by the treasury, not by the fed. >> we of been trying to track

the cumulative effect of the dog-franc bill. it has 400 rulemaking requirements and it. -- to track the cumulative l.fect of the ododd-frank bil it was alarming to find that basically it was published it would take 22 million man hours per year to comply with the first 140 regulations, so that means we're two-thirds of the way. of we're headed to a lot compliance hours. only took 20 million man hours to build the panama canal. i think everyone would agree 20 million man hours spent building the panama canal would create work economic opportunities and 22 complying with regulations. are you concerned that this

level of regulations and this kind of burdens that were putting on, is that healthy? >> i think it is important to point out what we're trying to prevent. we have terrific financial crisis that has cost this country enormous amount of money and hardship. yes, deregulations are costly, but speaking for the fed, we of taken a lot of steps to minimize the cost, including grouping roles together in packages so we can look at interactions among them, doing a lot of cost- benefit analysis, long transition times and so on. we need to do what needs to be done to prevent another crisis.

people can differ on how much needs to be done, but we are trying to carry out statutory obligations congress gave us at the lowest cost to the industry. >> the time for the gentleman has expired. the chair recognizes mr. green for five minutes. >> thank you, and i think you, mr. chairman, for being here today. -- thank you , mr. chairman for being here today. the financial stability oversight council, has that been of benefit? do you find it beneficial to meet with the other provincial regulators? >> yes, it has been beneficial. there are 10 of voting members, and we have been meeting on or recently frequently basis --

frequent basis. for chile every principle is there at every meeting. the leadership is there to talk. it has had to other benefits. one is we have extensive staff interaction. -- it has had two other benefits. while there has always been a great amount of coordination with joint rules and so on, i think that has picked up in been improved and helped by the fact that we're working together in this context. i think that has been helpful. >> is it fair to say you did not have a similar circumstance prior to dodd-frank, a similar meeting arrangement? >> not exactly. we did have the president's working group which involved some of the agencies, and a lot of bilateral and trilateral

discussions, but we did not have a single place where all of the major regulators got together to discuss possible threats to the economy. >> are these meetings will coordinated -- well coordinated and do they take tiplace at a certain time always? to go we have been meeting more frequently than quarterly. again, the meetings are quite substitute. they have a private session where we discuss matters among ourselves, and then there is a public session as well. >> are you better positioned to deal with systemic risk than you were prior? >> i believe so, because it allows us to take a broader perspective. each individual agency can make a presentation to everybody.

we will all be informed about what the sec is doing on money- market mutual funds or insurance people are doing on insurance issues. ouret's talk about cutting way to prosperity. is there a downside to cutting our way to prosperity? i am referencing cutting to the extent we start to decrease the number of jobs. we talked quite often about systemic risk -- actually stimulus, providing a stimulus for the economy and not wanting provide it to much stimulus, but can we cut so much that we are hurting the economy? >> i have expressed concerns about what happens on june reversed, which will be a major fiscal contraction and pose a risk to the recovery, but what i

of attic -- advocated is a two- part process, one of which is critically making sure we have a fiscally sustainable path going forward, but at the same time we pay attention to the recovery and make sure we do not snuff it out and intentionally. unintentionally. >> this chart speaks volumes about what has happened and what is happening. if you consider zero terra firma for above water, obviously we were going down fast, sinking. we were falling off a cliff. in now we're coming up. now we are back above water. not or we would like to be, but clearly moving in the right direction it down is bad and up

is good. it is simple to see where we are here. it down is wrong, of is right. it down is worse come up is better. i hate to use this highly technical terminology. some people may not comprehend what i am saying, but i think you for the church. take of the time for the gentleman -- to go the time for the gentleman is expired. >> mr. bear was asking about the european exposure -- mr. garrett was asking about the european exposure. you are recommending that european banks are pretty sound. did i hear you correctly that you are saying they have pretty stable operations?

to go i was talking about the european central bank. the european banking system is currently being asked by the european banking authority to raise more capital. of course their liquidity situation is satisfied almost entirely by the european central bank rather than private markets. >> that would explain. anhow long have you been watchig the exposure of u.s. firms to the european financial -- >> the european situation became prominent two years ago. pretty much throughout that time. >> my question is then above

the new york fed that gave primary dealer status to m of global. two years ago would be somewhere in the time frame they were making application of 2011. that is when it was given. and so this watching of exposure, m of global had gone up by $4 billion during the very time. why did it the new york fed catch the exposure if that is something you were concerned about? >> we were regulating banks. m of global was not a bank, and we were not there regulator. -- mf global was not a bank, and we were not there regulator. >> they met the criteria for

size and experience. >> they have been turned down several times before. >> they met the criteria when the new york fed gave them primary dealer status. it has been our goal not to restrict status to a few of the large institutions they met the standards to be a counter party to the new york fed. it is not the new york fed responsibility to supervise them. iview used fairly significant words regarding what is down stream from us of we continue spending. -- you used fairly sick of it in words regarding what is downstream from us if we continue spending. you use terms that were almost catastrophic. there is a significant risk

of fiscal and financial ability is not achieved, we would face the crisis of confidence. that is always a possibility. isthe spending we're doing that this is spending. -- is deficit spending. china could lend us the money, but with the six trillion dollar economy, china does not appear to be able to lend the money each year. the federal reserve by owning 1.2 trillion in u.s. treasuries, is really facilitating the spending. it seems like you have a capability to give some discipline into the institutions here in washington that do not have the discipline internally,

even it if it was only a 10% reduction. to say we're not quantify that many treasurys into that much quantitative easing or whatever method you were using. why don't you all say no? >> the mandate given to us by congress is to achieve maximum sustainability. you have marty said we are facing very serious things if we keep spending. that is why i am advocating they take action. >> you are not indicating any discipline. thank you. >> the chair now recognizes the gentleman from colorado. thank you for being in staying here. i usually ask questions right at the end. i appreciate the stamina.

this is a storm that none of us quite understood what was coming. you can always look back. we can look it up in this monetary report. we can see the storm. we can see the drop in employment. we can see through this storm. >> i just want to compliment you. i do have a few questions. i do not know if you had your report in front of you. 23 is the receipt of expenditures. chart 24 is consumption

investment. what i look at 23, i see a continued reduction in revenue to the federal government. i see a huge spike at the fall of 2008 in 2009 as these services went up. would that be fair? >> yes. >> and 24, there has been a reduction in federal expenditures. >> that is a lady sending out. states and economies cut back

spending. >> let's talk about what is common at the end of this year. if our goal is to pay down the country debt coming due have more revenue and less expensive as opposed to what we saw in charge 23 or we have less revenue. and i am not mistaken, you call it a clip. you have revenue increases. we can start paying down the debt. he said that it may cause a major contraction. can you explain that? >> i do not think i use those words exactly. >> user on words. >> was talking about the authority of the cbo. they have to make projections

based on current law. they assume the current expiration of the tax cuts and relief all came into play in 2013. their economic production was 41% growth -- for 1%. it is a logic that if the cut spending and cut spending he will pull demand out of the economy and it will hurt the recovery. it is important to address these issues in the medium to long term. it may very hard to adjust to that. >> we have these two things out there. if we have the opportunity, we ought to be a little more refined. that is how i am understanding it. >> it is the same long-term benefits to more grassroots. >> i have a question on page 2. there is a statement that additionally they made a

significant injection of liquidity via the first three- year financing operation. >> the european banks are having trouble raising funds. some of it is in dollars. they have lent $1 trillion year rose for three years. this has greatly reduce the problem that they have in raising the funding. in order to get dollars, the federal reserve has what dollars for euros. it freebies' them of their dollar funding problems. it helps relieve the funding for this.

>> the are recognized for the remaining time >> and it is proposed a write them down. yet they have not been. what other ideas deal have -- the gentleman's time has expired. the gentleman from minnesota is recognized for the remaining time. >> thank you for coming. i want to know your views on what more do you think could be

done to try 82 help the housing market get back on track. let me observe at 60% of all of the mortgages are either owned or backed by the gse's. some people have proposed a right those down, the ones we can write down. yet they have not been. there is some resistance to that. what other ideas do you have regarding the housing market? it is the one thing that seems to be dragging the economy down. it is not just construction jobs. it is a loss of equity. they are preparing. that law, only question. >> the federal reserve put out this without making

recommendations. there are a whole range of issues. one problem is getting the excess supply of housing up the market. one way to do that is to concurrence the housing. he can also get rid of the dilapidated housing. we have not taken a position. we have looked at various alternatives to foreclosure. short sales allow people to get out of the house. a final area is about

availability or access to mortgage credit. it provides greater assurance. another way to improve it is to reduce uncertainty about servicing obligations between the various agreements that have occurred recently. current discussions, some is being removed. there are varieties that need to be done. >> thank you. >> the gentleman has any of it back. we thank you for your testimony today.

some members may have additional questions which they may wish to submit. the hearing record will remain open. some at written questions to the witness. this hearing is adjourned. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012]

>> ben bernanke returns to capitol hill tomorrow to talk about the federal reserve pesto a letter of policy report. we will have live coverage of the testimony on the website beginning at 10:00 a.m. eastern.

if you had said in the year 2006 that the united states would be baking to use force in the metal is -- middle east within 3.5 years, everyone would have said you are crazy. >> robert taken serves on secretary of state clintons for rigid form policy advisory board. >> what i have been writing for years is there is a lot of continuity in american policy, a lot of a broad consensus. i think what you are seeing here is the consensus that fixes, and there's a lot overlap between the parties. >> were with robert taken and his latest sunday night at 8:00 eastern on c-span q&a >> tonight the white house hosted a dinner in honor of iraq war veterans. 200 servicemen and their guesses or in attendance.

they offered posts at the black-tie event. this is 20 minutes. i woke up this morning and my wife said today is a special day. i said of course it is, because we of been invited to the white house to go celebrate the end of mission, but she said it is also leap year. and only comes around once every four years. she said so in thinking about that do not sing, do not even think -- did not even think about singing, because we're

likely to not be invited back for the next four years. and she said besides, the president has a better voice. and [applause] i am your senior military adviser. i did not agree with that assessment personally, but we will see. i am protected we are honored tonight to be joined by the joint chiefs who are scattered through the audience with general george casey, general rick sanchez, and rory austin who have done some incredible heavy lifting for our nation over the past decade. you all stand tall in an exceptionally long list of dedicated leaders who put their heart and soul into seeing are difficult mission in iraq

through to completion. for more than two decades iraq was a dominant part of our lives. and in a sense, it was a family affair. what i mean by that, some of us send our own sons and daughters into this conflict over the past 20 years. all of us left our families behind and tour after tour they supported every bit as much as we did. the road we traveled every day was tough. every day it required us to balance contacts in consequence. everywhere and at every level we learned the power of relationships, relationships rooted in trust and respect within ourselves, but also with our iraqi brothers and sisters. we saw just how profoundly impressed of the armed forces of the united states, soldiers,

airmen, marines and coast guard's and family members like all of you here tonight, and those i have known through the years proudly represent, because you and those who did not come home with us, and those who return forever changed really made it possible what we were able to accomplish in iraq. it was your courage, resilience, and sheer resolve to take care of each other, defend our nation, and to provide the iraqi people with a choice for their own future. even in it, and maybe even i would say -- i would say especially in the toughest of times, your character and those to represent here tonight shine through, and it mattered. mr. president, this is obama, thank you for recognizing the service and sacrifice of the

military family in this very special way. i really appreciate it. we really appreciate the support that you and the vice-president and dr. biden and your wife and those they have found together in the joint forces initiative and the nation provide us. i know we all share a commencement to keep faith with them, and especially the thousands who have returned with wounds, both seen and unseen. there is no wonder more strongly committed to their well-being than the person that i now have opportunity and privilege to introduce. ladies and gentlemen, our secretary of defense, the hon. leon panetta. [applause]

>> thank you very much, general dempsey. and he does have one hell of a voice. thank you for your duty, dedication, service to this great nation that we all represent here this evening. tonight we are truly in the company of heroes. the honor that we present to all of you is because we care about those of us have thoughts and sacrifice in a rociraq. mr. president, this is obama, we think you deeply for honoring the heroes and welcoming them here and your home. iraq, weho fought in the roc

thank you for your service. you have earned our nation's everlasting gratitude. we are indebted to you for your willingness to fight, your willingness to sacrifice for your country. we are indebted to your families and your loved ones for the sacrifices that they made so that their loved ones could help defend this nation. again and again and again you left the comfort of family and friends. you left the comfort of this great country and confronted brutal realities. places like bad debt, rumaki, if fallujah, and elsewhere throughout iraq.

your unflagging commitment and uncommon dedication helped the iraqis realize a dream of building an independent and sovereign nation that could secure and defend itself. it is not going to be easy, but the fact is you gave them the opportunity to be a democracy because of you. you are part of a generation of americans, the new at greatest generation of americans responding to the call of duty by your nation. deployment after deployment you have been willing to serve this nation. you have been willing to put your lives on the line, and you have been willing to die in order to protect this country. you have done everything in this country has asked you to

do. he returned to a grateful nation. and you can stand proud of all you have accomplished. we owe all of you for honor that your service is deserving, and we owe it to you be in short -- the assurance that we will never forget the sacrifices of those that are not with us this evening, those that gave their lives for this country. we pledge to their memory and pledge to all of you that we will never forget and never retreat from what you accomplished. last december in baghdad week cased the colors of the united states forces. i had a chance to be at the ceremony. at the time i noted, this is not

the end of the truly the beginning. for america tonight, this is not an end. it is the beginning of a long- lasting tribute to you and all who served in a rociraq. this country was built upon the sacrifice of men and women like you. our very democracy depends on people like you who were willing to step forward and defend this country, to salute and fight to give each of us a chance to pursue the american dream, giving our children a better life. just as you have recognized and the filled your responsibility to this nation, we must do the same for you. it is now our responsibility, the responsibility of communities to embrace your return, welcome you back, and

insurer you and your family have the support you deserve it. secretary of defense, i cannot tell you how proud i am of you and how proud i am of every american who served this country in uniform. now it is my honor to introduce someone who believes deeply in the american dream. we're both products of that's has children of those who came from other countries. he is dedicated to defending and preserving that dream. i am grateful to vice president biden into dr. joe biden -- and to dr. jill bide. -- jill biden. they have a son who deployed, so they know what the war is about and the sacrifices that are required of military families. over the past three years, vice-

president biden has trouble to the region extensively and has played a tremendous role in steering policy. he probably deserves a combat badge for the political battles he has been involved in. jill has led the effort along with mrs. obama to support military families. on behalf of all of us at the department of defense, we think the president, mrs. obama, we think the vice president and dr. jill biden for their leadership, support, and dedication to a strong america. strong in mind, strong and body, and strong in spirit. ladies and gentleman, the vice president of the united states. [applause] >> i came because i was

expecting a duet tonight. i thought maybe we were going to hear you and my irish friends saying. i am betting on you. let me say a special thanks to generous casey and austin. the good news is that the only had to see me four times. i want to say suit all of the brass in here, we owe you a debt of gratitude. you have trained the fine is generation of warriors. this is not hyperbole. the finest generation of hyperbole in the history of this country.

i would argue the finance generation of warriors in all of history. i get frustrated when i hear talk about generation x and how it is not ready for all the travails of previous generations. most of this room are made about the 9/11 generation. you're the most incredible generation the shop has produced. they have 2.8 million of your generation, and men and women, joined the military and knowing and hoping that you would be sent into harm's way. more than a million of you walked over the sands of iraq would temperatures up to 135 degrees.

over 1 million of you. this journey began nine years ago and armored vehicles rumbled across the board of kuwait. all of you sitting at our table tonight, you know better than anyone that it was sometimes an impossible mission. sometimes it was impossible to determine who the enemy was. that is a few short years ago there are literally hundreds of bodies a day being piled up in the baghdad war. it is one the most dangerous places in the world. every conflict was a test of faith. the saddled up every single day. after cleaning out the

vehicles, you saddled up the next day. able a slip in an envelope. it became an unmistakable warning that they had to leave the house and the neighborhood where they would die. what they may have been steep, your also made to master the local iraqi politics. you are incredible. you adapted. he succeeded. you defeated the tyrant. you be back extremists. the most remarkable thing you did because of the breath of their capability, if you're unable to a country that had not been governed in any reasonable way for four decades. you help them set of institutions and train the military that gives them a real fighting chance.

today because of you, there is a prospect of stability and prosperity. that was not locked or an accident. it is your sacrifice and hard work that made it possible. it never be forgotten. president truman was described the end of the war as a solemn but glorious honor. -- solemn but glorious hour. i believe that he meant that honoring those that fall means remembering those that were lost. 4475. the exact number is important. 4475 fallen angels.

more than 30,000 wounded. some of you in this room. others bear the invisible scars of their experience. the president will speak for himself. we're both odd by our sacrifice -- awed by your sacrifice. not just those who are deployed but your brothers, sisters, bombs, dad's. john milton once said they also serve only stand and wait. they also serve who only stand and wait. we owe you your family members almost as much as we owe you. every morning i would walk-in and jill will be getting her cup of coffee over the sink mouthing a prayer.

wives and husbands, there is not an hour a day that did not flash across your mind. it is my husband, wife, daughter, ok? it is an incredible thing to ask of so many people. now and the finest american condition, you come home. it is good to see you here. like every american before you, you left iraq taking nothing with you but your experience, achievements, and the pride associated with knowing what they did an incredible job. that is an american tradition,

is taking nothing but your pride. on behalf of a grateful nation, there's never going to be a way we can truly be pay you. there's no way to fully pay you. let me simply say thank you and your family for the heroic work you have done. you have made a difference. i think you help chart a different course. the man i sat with every day for the past three years or so, i was still making decisions about war and conflict. i have watched how he has done it. i know every one of these decisions had to be made in hanging heavy in his mind and heart.

there is no one i had encountered, and i have been here, you cares more about you than all of you who continue to serve than this man. i am proud to introduce to you your commander in chief and my friend, barack obama. >> thank you. thank you very much. thank you so much. please come everyone have a seat. thank you. thank you for not only house dinner remarks but the extraordinary leadership you have shown in helping to guide our policies. it's all the commanders who are

here and did so much under such extraordinary circumstances to arrive at an outcome in which the iraqi people have an opportunity to chart their own destiny. thank you. i thought he was going to burst into song. you have not lived until you hear him belt out an irish ballad. his voice is better than mine. your wives are there to cut you down a peg. this house has stood for more than two centuries through wars and peace, a hardship and prosperity. these rooms have posted presidents, prime ministers,

kings, and queens. there has never been in i quite like this. men and women from every quarter of our military, every branch of our service to answer the call. who go to war to defend the peace. a culture that celebrates fame and fortune, yours are not necessarily household names. there is something more. the patriots to serve in our name. after nearly nine years, it is

right. tonight is an opportunity for us to express our gratitude and once more, welcome home. this is not the first time we have paid tribute. this will not be the last. history reminds us of our obligations in moments like this. this year will mark the 50th anniversary of the vietnam war. a time when our veterans and not always received the respect that they deserve. i've seen americans come together.

we want to express those simple words. thank you. it did you carry your own story. the pride of a job well done, the pain of losing a friend, a comrade. this figure world can never be known. tonight what we can do is convey what you meant to the rest of us. there the desk and the din and the fog of war and glories of your service, yet always shown it. it sustains america. matatus about duty -- you taught us about duty.

you know that freedom is not free. you volunteered any step forward and raise your hand. you took an oath to protect and defend, knowing in a time of 4 it could be in harm's way. you talk is about resolve. the insurgency and strife. he persevered. the were mindful that even as they gather here, and one of our nation's longest wars, you're among the most extraordinary chapters. now the iraqi people have a chance to forge their own destiny.

everyone his serve their can take pride in knowing that you gave the rockies their opportunity. he succeeded in intermission. -- you succeeded in your mission. you talk to us about -- you taught us about devotion and family. i know some of the hardest days with the momentum is back home. birthdays, anniversaries, when your little girl or boy to their first steps. behind every one of you, was a parent, spouse, a son or a daughter. the pri for the day you come home safely. that is why they have made it their mission to make sure america takes care of your

family is. they inspire us as much as you do. that is why i would ask families to stand up and accept our gratitude for your remarkable service. you look so good tonight. [applause] you top this about sacrifice. -- you talked about sacrifice. you're willing to give your allies for its. with a tribute to all that did. remember the first day of war. corporate brian matthew

kennedy, kindle damon waters babay.] we remember the last. daniel hickman, november 14, 2011. separated by nearly nine years, they are bound by all time. we remember others. supper i did by nearly 9 million years they're bound for all time reduce separated by nearly -- separated by nearly 9 million years, they gave all they had. to their families here tonight, know thatwe will never forget their sacrifice. he taught us about strain, the kind that comes from with in, it the kind we see in our wounded war years. if you're coming home was the start of another balance, to serve again. we do not give up. just as the winds of war can

last a last time, so can americans commitment to you, it to give you the care you earned and the opportunities you need as you begin the next proud chapter in your lives. all of you taught us a lesson about the character. as you look across this room, you look at our military. we draw strength from every part of our american family. every color, creed, a belief. and every day you succeed together as one american. i cannot be more proud as your commander in chief. as an american, as a husband and father of two daughters, i

cannot be more grateful for the kind of country we can be. i want to capture the. from that day when the last convoy rolled out. they are young. they are shoulder to shoulder, prowl, head held high. there as what it was like to be literally the out of iraq. one of them gave a simple reply. we completed the mission. we completed the mission. we did our jobs.

i propose a toast. to the country we love, the men and women who defends her, the fundamental american faith that cessna mission is to hard, in a challenge is to great, we were stronger than we were before knowing that america's greatest days are still to come. they are great because of you. god bless you and your families. may god continue to bless those in uniform and the united states of america. thank you very much everybody. [applause]

watercooler >> here is a look at what we are covering on the c- span networks today -- in the senate, members will vote on the transportation bill that will allow employers with regius rigid religious objections not to provide insurance for contraception and other medical benefits. live coverage begins at 9:30 on c-span2. the senate foreign relations committee will hold a hearing on the humanitarian crisis in syria. the u.s. ambassador and state department officials will testify. it is live on c-span 3 beginning at 10:00 eastern. next, "washington journal" live with your phone calls. that is followed by a light session of the u.s. house will members will consider a bill asking the historian to provi