the committee, tharman shanmugaratnam. and to his right, the first deputy managing director of the imf. and of course the managing director of the imf, christine lagarde. we are on the record this afternoon. i will ask you to recognize yourself by name. with that, let me turn to the minister o. >> thank you. >> i will give you a quick sense of discussions yesterday and today we had a joint press conference yesterday we discussed the strengthening of

the global safety net. it was an important step forward. today, beyond that announcement, in our sessions yesterday and today, we focused the real solutions to the crisis, the sustainable solutions, that the safety nets or the fire wall is meant to support. we touched briefly on this at yesterday's press conference. it was about the theater of policy action. fiscal reforms, structural reforms. not just in europe, although that is obviously an important focus of our attention, but also on the united states. there was a very strong

consensus in our discussions on the need for everything that we do to be supportive of medium- term fiscal consolidation. that applies both to europe as well as the united states. a very strong emphasis that everything we do has to be focused on achieving medium-term fiscal consolidation. in that regard, there was also a consensus that the steps to be taken, not only the well known steps that involved fiscal adjustments, but also equally important, the need to restore growth over the medium term. growth of the short-term is weak, partly because of the

adjustments, which we have to go through in the international economy. what is really critical was to get back to normal growth over the medium term. preferably sooner rather than later. in other words, within two or three years to get back to normal growth is possible in as much of the advanced world as possible. if we do not get back to normal growth, if we do not get gdp back to its potential levels, fiscal sustainability is not possible either. it is not just the budgetary reforms, tax reforms, spending reforms that are important. but also the growth reforms. that involves the way we craft are fiscal adjustments, the way we go about our tax and spending policies, and structural reforms in order to bring confidence and investment back into our economies.

there was also discussion on other parts of the world and how they can pay -- play a complementary role in this process. that was the main focus. medium-term sustainability. and about bringing growth back, bringing growth and jobs back. >> thank you very much. i would like to begin by telling you how important it is to have a good chairman. i have to tell you that he is a superb chairman. this should be recognized, even in front of you. he was terrific. he took us through a long journey, we discussed substantial issues. as you can imagine, we talked a lot about certain countries. the euro area, the united

states, the right balance between emerging market economies and other advanced economies and all of that with the perspective of that medium- term anchoring that is so needed. it is not always easy to conduct those discussions with such a large number of constituents in the room. it worked extremely well. second tribute to singapore, for those of you familiar with the imf, there is this huge round tables and is relatively high style in essence because everybody -- hostile in essence because everybody is protected. we had chairs, it was much more fluid, people were much more in each other's face and posture, which was good for the dialogue

that we had. it was lively, and less of this prepared narratives. the form and substance very often interlinked. that was the case in the course of those discussions. in terms of momentum, in terms of positive signals, we had a lot to in the last day and a half. very open and frank discussions, a very respectful, but a very true to each other as well. focus on medium-term, necessary achievements. if their work to concepts that were shared across the board, -- if there were two concepts that are shared across the board, structural reforms, and discipline. that underpants' the medium-term growth and fiscal -- that under

pence underpins it. >> these structural reforms are -- expectations are difficult things to do. it is nice to have a big umbrella or a big fire wall. that was the achievement of yesterday. finally, on more domestic and internal issues, we had a strong endorsement of the completion of the quota and governance reform that was due to be completed for the tokyo meeting, which will be in october of 2012. we have a little way to go on the " death.

-- on the quota. there was a strong consensus, and you will find it in the communique, to move on with this reform. equally, there was a strong endorsement of our determination to improve our surveillance. it is one of our missions. bilateral, and it can be improved. there was strong endorsement from the imf to continue that and to complete the reforms that are needed to that fact. very positive. he is raising his hand, but others have, too. >> i want to began with a lady in the front. thank you.

>> thank you very much. congratulations. i think the meeting proved to be a success. managing director, do you think the washington moments has been achieved? it seems to me that the bric countries that still want to link with the governance and cultural reform. the think their strategy will be successful -- do you think there strategy will be successful? my final question about china, how would you label china? after the imf has its forecast in the next few years, thank you very much. >> one question, please come from now on. thank you. -- one question, please, from now on. >> washington moment, yes.

the dynamic that was created in the course of this meeting. we will hear more feedback because it is the spur of the moment, you tend to be quite upbeat about what has been achieved, and then you have to let it sit the bed and wait for membership feedback. we want to understand whether there were satisfied and whether they think collectively, we have achieved what we could achieve at best. i feel that washington moment was clearly in the the room. in the course of the meetings. on the issue of the conditionality, it was never expressed as a conditionality. it was a key determination on the part of -- maybe more so from some of the emerging market economies. there was a definite commitments to participate in --

participate. this is not completed yet. it is a matter that is under review. our team, both at research -- the various teams working on this initiative, that will come out later. we have not completed the work on this. but we have signaled how important the variation had been and how strong a step was in the right direction. >> thank you. questions. ian's >> dow jones. one question for the managing director and one question for the chairman, please. some finance ministers have said that there are additional

safeguards for the use of the 04 hundred $30 billion resources -- $434 billion resources. could you say exactly what those additional safeguards are? it is my understanding there is no change to the imf rules and regulations. secondly, the draft statement said the advanced economies should be prepared to accept -- exit expansive monetary policy. i see that has been taken out of the communique. >> the first question for the managing director. the second one for the chairman. >> you are absolutely right.

there is no change to the articles. what has been clearly reminded during the course of the discussion is that number one, those bilateral loans, which are to be adjusted, do not form a special call first that would have a label on it. -- coffers that would have late e you label on it. -- have a eu label o it. it must be used under the strict, nondiscriminatory, demanding terms that we have for all of our programs. you know, that is the strength of the imf. it is the conditionality, the review, the monitoring, and the sequencing of the lending that goes with it.

>> you will notice that there are a number of non-european countries and non-g-20 countries that decided to participate. it is very important to all of us that any use of these funds be accompanied by the same strict conditionality that the imf has with all of its programs. it was very important to the british, very important to all of us. we contribute into the fund to use around the world. whoever the borrowers are, whatever the cause, it has to be the same standards. the credibility of the fund is what we are attempting to bolster. on your second question, i would not be too much into the final editing that goes into the statement. the statement does emphasize

there is a very important nuance -- it does not just say that monetary policies to -- remain accommodative. as long as inflation prospects remain anchored. that is an important emphasis -- that was an important assist in our discussions. it captured both sides of the atlantic as well as the emerging countries. we spent some time discussing this. we were all pretty much of the same mind on the importance of ensuring that inflationary expectations remain in check. if there was any indications, any trends indicating we are likely to lose control of that inflation, there was a sense that monetary policy would no longer be advisable.

i think there was a good meeting of the mind on that. >> thank you. the lady over on the right, thank you. >> the imf has said it is ready to adopt some of the bailout programs in case it is needed. my question is, do you feel the need to adopt the bailout programs for portugal? if not, if you think that portugal is on the right track. thank you. >> the portuguese program has been under way for less than a year now. it works like any of our programs. the portuguese government and opposition did a fantastic job

because they came together as members of the imf came together yesterday and today to endorse it. the program of portugal as negotiated with the imf, but it is their program. we conducted regular review. we send the mission team on the ground and they work with the authorities to make sure the targets have been reached within the timetable that has been adopted and agreed between us. i do not see any reason for any change to the portuguese program. >> [inaudible] >> the review that was conducted certainly concluded that the program was on track. >> yes, sir. >> thank you. "washington post.

coming from a part of the world that is reshaping the global economy through competition and productivity, deerfield the industrialized world -- do you feel the industrialized world have a realistic sense of the adjustment their societies will have to go through to take advantage of this two or three- year window that you talk about? what are the implications if they do not get their act together? >> to be quite candid, i have a lot more sense than i did three or four years ago. across the room amongst the advanced countries, the western economies, there is a very strong resolve to get to the

hearts of issues of competitiveness, a thrift, rebuilding of household and government balance sheets. frankly, it is quite courageous. politically, it is quite courageous. there have been very strong expectations built up over the years for more of the same. it has taken tremendous political courage in the last year to begin to switch -- to paint a vision that leads to a better future. we're all very supportive of that. we know this will be a long road. there will be pitfalls along the way. which is why christine's umbrella is so important. i am a lot more confident now

that i was a few years ago. i would finally decide -- just add that one of the things we will have to watch out for in the non-western part of the world is hubris. we will have to avoid thinking that we have got it all right, whether it is fiscal policy or savings policy or competitiveness policies, that we have discovered the new golden equilibrium. there is a lot of learning to do on both sides. >> thank you. there is a lady, yes, with your hand up. >> good afternoon. how will be the work with low income countries? do you think these countries will be able to make the reforms? >> we do not talk enough about

the work the fund does with the low income countries. of the 48 programs we have, more than half of them are with low income countries. they're not for huge amounts because everything is proportional. but we do a lot of work and we did a lot of technical assistance, capacity building for them. we do as much as we can to help the low-income countries. but will work a lot on the countries in transition -- we will work a lot of the countries in transition. the arab spring countries. it is a real focus for the fund. i am confident, if you look today at where the country's in the world with double digit

growth, you will find them in low income countries. of those, two-thirds in africa. >> thank you. down the front, the gentleman. >> thank you. i have two short questions. does the imf -- there are rumors. did you think about the possibility that party is against the greek problem to have a majority in parliament on may 6? thank you very much. >> are people -- our people contact all the time all over the world. i am sure they are in discussions with anybody in the

mediterranean. north, south, in between. has there been a discussion on any type of program with cyprus? not to my knowledge. i would be the last person to predict the outcome of a political election. >> thank you. i want to ask about how the imf supports the arab countries. what about the agreement with the arab spring countries, especially egypt? thank you. >> i will share a secret with you. which i am sure will be well kept. we have a commitment to the arab

countries in transition, by our annual meeting in tokyo, we will have several programs in place to help them navigate the transition. it will require other supporters, donors, partners to help financially and in trade opening as well. if i have to tell you, i think, relative to other parts of the world, it is a part of the world where we give the highest, largest number of technical assistance, hours, days. in all sorts of matters. public finance, a taxation system. he would be surprised. -- you would be surprised. >> i think we have time for a

couple more. the gentleman in the pink shirt. >> you mentioned in the communique that the framework should be significantly -- does it mean that the imf would take into consideration the exchange rate policy? >> a very pointed questions. it is one of the components that we would be looking at. there are others, but it is one of them, yes. >> ok. lady way over here. >> thank you.

in the communique the members collect -- all forms are protected. in the exchange rate because some countries control the exchange rates. the ones having problems with the influence of the capital flows. and there is an increasing use of the exchange rate. what are you going to do? >> we discussed exchange rates yesterday and today. a year ago, we had a good

meeting, pretty much a consensus among the emerging countries and advanced countries. whether we were talking about china or brazil or anyone else. we all agreed there had to be some greater flexibility in exchange rates over time. we were -- we agreed we were getting that. from time to time, capital flow will be very troublesome. the fund has shifted its thinking on the matter. we of all shifted our thinking as to what is a sensible toolkit for emerging countries when faced with volatile flows. there was a recognition that in instances where you face severe volatility, some form of management of those capital flows could be sensible. work is not due to your own domestic policy -- where it is not due to your own domestic policy, but a global capital

markets, some management is sensible. these are statements that were agreed to on all sides. i found that quite encouraging. we have moved some distance and the last year on this issue. >> there is work that will continue to be done so that we can really analyzed in-depth the relationship between movement of capital flows and monetary policies. that was another matter that was of interest. there is evidence of a close relation between the two. since you are from mexico, let me say that we have had an extraordinary collaboration with the mexican presidency. i am sure it is due to the president's focus and supports on the g-20. this has been a great work

experience for us. >> i was pointing to this gentleman in the second row. >> thank you. >> i'm sorry. right here. next to you. >> thank you. i am from singapore. a question on economic reforms. with the imf prefer to see a list of u.s. sanctions? -- lift of u.s. sanctions? what else would they be looking to do? >> [inaudible] >> just like everybody from singapore, you are really fast. your question about the advanced economy, u.s. and europe? >> maine and mark. >> -- me and mark.

>> we do not brad much about what we do. on this particular case, others would have. we have been behind the scenes discreetly helping the monetary authorities in relation to the most recent currency reform. we have been working with the central bank on that very actively. it is a tribute to them that they have made this change. it was done april the first and it has been so successful. we will continue to provide assistance that they need. this is happening, you know, on a daily basis. >> [inaudible] >> some of the sanctions have been lifted already. there is a momentum that is clearly initiated.

my dearest hope is that it continues. >> one last question. we bring in several journalists to washington. i would like to -- thank you. >> you can join the fellowship. >> good afternoon. i would like to ask you, how the euro crisis will affect the emerging countries? macedonia has an arrangement with the imf for 480 million euros. despite that, at our government is borrowing money on the commercial markets. do you think that is -- do you

plan to come to visit our region in macedonia? thank you. >> i will wait until my knee is fixed. and then i will get back on the road. on the consequences in southern europe, it is more central and eastern europe. it is the immediate circle that is potentially exposed. that is why it is so important that the europeans do what they are committed to do. but they deliver on their program, the move on with the structural reform as well as sticks to the commitment to each other and to the larger community. that is what we are seeing at the moment. it is important to them, it is important to us, it is important to the likes of macedonia.

the linkages between countries in the southern europe -- it is extremely important. particularly of the banking channels. there are lots of subsidiaries of euro area banks. i think there is a clear community of interest in the euro area doing what it has to do. on the macedonian program, i am not exactly sure where they stand on the review of the program. you know more than i do, david. >> [inaudible] >> to borrow from the commercial banks? >> [inaudible] the government is spending that money for the social transfers,

but not for capital investment. do you think this is the right policy at this moment? >> i do not want to pass judgment. i have not verified that with the team. i will reserve my response. we will get back to you, i promise. >> thank you, everybody. >> the constitutional party held

its convention this weekend in nashville, tennessee. this is about 25 minutes. >> let me call the meeting to order. thank you. thank you for coming back in here. it is now my distinct pleasure and honor to introduce the presidential nominee, a candidate for the constitutional party. it is virgil goode. he hails from rocky mount, virginia. he was born in richmond, va., in october 1946. he received his bachelor of arts from the university of richmond.

he served in the virginia national guard. he is an attorney by trade. he was elected -- he served as a legislator in the virginia general assembly and the state senate's. he served 12 years as a u.s. representative in the u.s. congress. he is married to lucy goode. and they have a daughter. i would point out that with this 12 years service in the u.s. congress, he served in federal office longer than barack obama or mitt romney combined. [laughter] with that, for his acceptance speech, let's welcome virgil goode jr. [applause]

>> thank you. [applause] >> first, i want to say thanks so much to all of you who were targets and supported me and this nomination battle for the presidency of the united states under the constitution party label. when you win by one vote, you know every vote counts. i want to say to those who also ran, it was an honor to be

associated. i want to thank john and carol for all they have done over the years for the constitution party. -- joan and daryl for raleigh have done over the years for the constitution party. [applause] robbie wells -- thank you. [applause]

the energy and enthusiasm exhibited by robbie wells on this campaign has been tremendous. if he will continue to work with us, if we do not get to the top of the hill this time, we will get to the top of the hill in 2016. [applause] i also want to recognize suzansan and thank her for her campaign and for sharing with us her life story, which every person should listen to because it is a true pulling yourself up

by the bootstraps story under the free enterprise system. thank you so much. [applause] i am not sure what the glory is still here, -- laurie is still here, but i want to express my appreciation for having the presence that a radio talk-show host has. i hope i can call her up and get some pointers for jazzing up and going with a few well-placed reasonable zingers that will

surely get you on radio and television. [applause] ron from california, i have to really thank ron. he allowed the california delegation is to vote for me. thank you very much. thank you for standing for traditional marriage and for your speech yesterday. [applause] our party offices have worked very hard in bringing about this convention, getting persons here

from all over the country. our staff persons are in the background, getting little recognition. i think we should give them a round of applause. [applause] our party chair is not running again for chair. i want to thank jim -- and i knew right -- and i know i do this on behalf of all of view -- for his personal contributions to this party. he and several others have been mainstays in providing funding over the years to the constitution party. you got to have some funding just to keep the doors open. jim, thank you so very much.

[applause] i will not list all the party officers, and i know they have all worked hard, but i do want to mention specifically our treasurer. [applause] joe has done work in the detail that is needed to have treasurers' reports that are informative, but also comply

with all the federal election commission regulations. joe, thank you for keeping us out of trouble. [applause] are you ready to take on mitt romney, barack obama, and the establishment in washington, d.c.? if you are, say yes. [applause] jim mentioned that i served in the u.s. house for 12 years. i did. peter from louisiana passed me, -- asked me, i know you cast a lot of votes and a lot of them i agree with, but tell me one or

two that you may have cast wrong. you remember that, peter? and i did. i made some mistakes. it is not too difficult to do. , in particular, i voted for the patriot act. i know that most in the room are very much opposed to that measure. i want to say that might association with a constitution party over the last three years has given me a better perspective in analyzing legislation from a constitutional viewpoint. and i want to say that i made a

mistake in voting for that measure as it applied to u.s. citizens in this country and to legal permanent residents. i do not favor, although this may not comport with all federal court decisions, extending constitutional rights to persons from foreign countries or those illegally in the united states. [applause] as president, i would work with the congress to repeal the applications of the patriot act as they apply to u.s. citizens. [applause]

i also voted for support for the troops in afghanistan. i never favored rebuilding the country's with u.s. taxpayer money. like many, who voted yes on those actions early on, i suspect in the u.s. house and senate, you would have very close votes in extending the war in afghanistan. it is time to come home in an orderly and reasonable manner. [applause] we can talk about some other issues. in most instances, i was right in line with the thought of this party and with a significant number of american citizens.

i have a pro-life voting record. [applause] that distinguishes me from president obama, who has one of the most pro-abortion records and positions ever for a president and certainly during his service in the united states senate. i also would like to submit that over time, my pro-life voting record is better than that of mitt romney, who has converted more recently to our position. [applause] with regard to marriage, i have always supported the proposition that marriage should be between one man and one woman.

i was in the virginia senate, the u.s. house of representatives. if you look closely at president obama's position, you can see that he is moving ever slope directly in a direction of pro- civil unions and pro-homosexual rights. if i am president, i will veto legislation advancing the cause. second amendment issues, i have always consistently supported the right of the individual to keep and bear arms.

one of the first amendment's that i proposed in the u.s. house of representatives was to give that right to citizens of washington, d.c. when we were in the apartment of there, it was against the law for us to have a firearm in our apartment for self protection. thankfully, that has been changed in d.c., but we need someone in the executive office of this country who has a history of supporting the second amendment and who you know you can count on one and comes to the right of your cells to defend yourself and have a firearm for protection of your person and property. [applause]

in the u.s. house, i was one of the democrats who did not go along with the democratic leadership. time to vote for our budget resolution. the republican leadership would come by and say, you know, sometimes you just have to vote with us on these on balanced budget resolutions loaded with deficit. i would not go along with them. that was not liked by the senior leadership in either party. now we are in a situation where our debt is $15.70 trillion and a deficit, under the obama budget, is $1.30 trillion, and under the ryan budget, it is

$600 billion. with the constitution party is philosophy and viewpoints, with which i agree, we need to cut now and balance now. [applause] we must have the courage to cut. from the department of education no child left behind to the department of education and general, we could go on and on, and i would say, look at obama's record and mitt romney's record. just on those two issues.

education, no child left behind, and foreign aid. i am for slashing and cutting, and they made before taking a paring knife and slicing off just a thin layer of cheese at the top. obama is not even for that. he wants to throw them out another ream of cheese. go to it, gang. i was honored to be in ron paul's liberty caucus. i support and audits of the federal reserve. i do not think you will get barack obama or mitt romney to even mention the issue. [applause] in another area, a big distinction between us and the republicans and democrats is illegal immigration and illegal

immigration. -- legal immigration. i cannot thank the national committee of the constitution party enough for having the courage in the face of political correctness to say, we stand with arizona in support of their legislation. if i am president, you would not have eric colder as attorney general, -- eric holder as attorney general. our attorney general would go and be of friend-of-the-court to st. let's uphold what arizona and alabama are doing to control their immigration. [applause]

i said during our campaign, i want to thank robbie wells for having this position, calling for a moratorium, with a few exceptions, on the continuing issuing of green cards when we have unemployment between 8 and 9%. last year, 1.2 million green cards were issued. a significant number work to working age individuals. one we have american citizens that need work, you should not be bringing an so many from foreign nations to take jobs that our citizens have longed for and indeed so they can get off the unemployment line before we extend the benefits -- the

benefits of this country to those from other countries. it is time to put the american worker first. [applause] in the house, i was always a supporter of ending diversity visas. 50,000 persons per year that can come in on a lottery system. you can be from the middle east, africa, asia, where ever. even though you are nowhere near the front of the legal immigration line, you apply for the diversity visa pool, and you get into that lottery system, and they pull your number, in you come. why bring in so many persons, many of you are working age,

when unemployment is so high? it is the wrong course for the nation. if i am president, i will sign an work for the legislation to end those of diversity visas. [applause] and other big distinction between myself and president obama and likely candidate mitt romney, i do not support automatic birthright citizenship for the children of illegals in this country. [applause] eliminating automatic birthright citizenship would also significantly help the budgetary situation of the united states

and of several other states. you should not be able to comment, have a child in this country, get food stamps, get public assistance, medicaid, and some other type of public aid, all that is being paid for by long-term citizens who are paying taxes. we need to end that practice, whether it is by statute or by constitutional amendment. i do not know of another country in the world that is that liberal with regard to illegal aliens having children in their native country. we have one of the most liberal immigration, may be the most common in the world. we need to turn that upside- down.

if we do, our budget situation will be enhanced to. most importantly, as my campaign literature says, we need to save america by focusing on the fact that citizenship should matter and should count for something. the last thing i'd want to mention as a key distinction between myself and candid mitt romney and candid it obama, campaign fund-raising. they are hawks and they are adept at getting