mitigate the risk of miscalculation. we are participating in annual military exercises with south korea, including full eagle and key resolve to make sure the alliance is operationally ready to meet the security challenges that confront us in the region. as the president has made clear, there is a path open to you -- to north korea to peace and economic opportunity, but to get on the past, north korea must abandon the pursuit of nuclear weapons and abide by international commitments. with that, let me return to the broader theme of today's discussion, which is how we are implementing the defense rebalance across the asia- pacific region. i would like to be providing strategic context. after a decade of necessary

intense preoccupation on two wars of a particular kind in iraq in afghanistan, one that finished and one that will wind down to an enduring presence over the next two years, we are turning a strategic corner. we are turning our attention on the challenges and opportunities that will define our future. we know that many -- what many of these challenges are, continued turmoil in the middle east, in during threats like weapons of mass destruction, and a range of new threats and new domains like cyber. we also see great opportunities. the most consequential of which is to shift the great weight of the department of defense, both intellectual and physical, to the asia pacific region to reinforce the long-standing

commitments there. the logic of our rebalance is simple, the asia pacific theater has enjoyed peace and for over 60 years. this has been true, despite the fact there is no formal over arching security structure, no nato to make sure historical wounds are healed. during that time, first japan rose and prospered, then south korea rose and prospered, and then many nations in southeast asia rose and prospered, and now china and india rise and prosper. all of this has been welcomed by the united states. in none of this was a foregone

conclusion when you consider where the asia-pacific region was at the end of world war ii. while the asian political and economic miracle was realized first and foremost by the hard work and talent of the asian people, it was enabled by the enduring principles that the u.s. has stood for in the region, which we believe are essential to peace, prosperity, and security. these include a commitment to free and open commerce, of just international order of rights and responsibilities of nation, and fidelity to the rule of law, open access by all to the domains of sea, air, space, and now cyberspace, and the principle of resolving conflict without the use of force. it was also enabled, and this is the theme of my remarks today, by the pivotal role of u.s. military power and presence in the region. we believe are strong security

presence in asia pacific has provided a critical foundation for these principles to take root in for the prosperity to occur. we intend to continue to provide this for decades to come. our partners in the region will come leadership and robust engagement and committed to answering the call. it is good for us, and good for everyone in the region. it includes everyone in the region. it is not aimed at anyone. no individual country or group of countries. with this as background, i would like to explain the various features of the defense rebalance to the region that is reflected in the first force

structure decisions we have made and are making, that is what we keep and what we retire. second, presence in posture, that is where we put things and what we do with them, the most visible part of the rebalance. next, investments. not just in technology and new weapons systems, but human capital as well. then, innovations and operational plans and tactics, and finally, and perhaps most importantly, the work we're doing to strengthen the alliances and partnerships in the region. let me begin by describing how we are shifting the force structure to the region. i will start with the navy. as we draw down from afghanistan the navy will release combatants and and and chile -- and eventually carriers and reconnaissance and their associated processing capabilities.

already signals reconnaissance aircraft have moved to centcom to paycom. the navy will release fire scuds from afghanistan and several aircraft are available for reappointment. in addition, navy pier 3 has conducted surveillance in the middle east for the past decade and will return. the navy is also adding a forward-deployed naval force to guam in this fiscal year 2013. the navy shifting overall posture to the asia-pacific region in such a manner as secretary panetta announced last year, resulting in 60 percent of the naval assets being assigned to the region by 2020, a substantial and historic shift. the navy is accomplishing this in three main ways. first, the navy will be

permanently basing four destroyers in spain to provide ballistic defense to european allies. previously this was performed by 10 destroyers that rotated the u.s. to the mediterranean. the six destroyers that will not be released will shift deployment to the asia-pacific region. the four ships in spain will continue to provide the same amount of missile defense coverage for european allies. destroyers and amphibious ships will deploy to the asia-pacific region. third, the navy -- maybe will generate more forward-presence by fielding ships such as the joint high-speed vessel and a combat ship that i mentioned and the new, local landing platforms in a forward-staging uses rotating

military or civilian crews. the air force, meanwhile, capitalizing on the inherent speed, range, and flexibility in the region will also shift capacity from afghanistan to the asia pacific, including assets like the reaper, u2 and global hawk. the air force will allocate space, cyber, tactical aircraft and bomber forces from the u.s. to asia-pacific region with little investment as 60 percent are are ready station there, including 60% of combat-coated f-22's.

as operations in afghanistan end, more b1's become available. this will augment those already on a repetition of -- rotational presence. the capability to provide trip missions will remain a valuable option. the army and marine corps also have an important role to play. the army has 91,000 soldiers civilians assigned to the pacific and maintains a forward presence of eight active for grade combat teams, 12 batteries of patriots -- active brigade combat teams, 12 batteries of patriots.

the paycom commander regains controls of the other soldiers assigned to the region. as part of this regionally- aligned rotational concept, army units assigned to paycom focus on specific mission profiles, such as bilateral and trilateral training exercises and building partnership capacity. i should also add during the months of sequestration and beyond, the army is preferentially protecting the readiness and modernization of the more than 19,000 soldiers we have in south korea. so that they are able to decisively respond to any north korean provocation. the marines also have an important role to play in the

pacific. arehly 18,000 marines forward-deployed in the region. split between the fighter squadron, the third marine expeditionary force, and are one, the new rifle company. the marines have also put an additional infantry battalions for a total of three on the ground and will put another there this fall. these are rotational that will move in and out of the western pacific every three months. all of this will be accompanied by an ea6 prowler squadron and more attack helicopters. i should also mention there are 5000 marines in hawaii. in reality, the asia-pacific region will soon see more of the army, rewrite -- marine corps in special operations forces now that they are coming home to

the pacific from iraq and afghanistan. in addition to shifting our own force structure, we are modernizing and enhancing the four were present across the region in cooperation with allies and partners. let me start with north east asia. i have already mentioned the work we were doing with south korea. in japan, we have added capability with upper mc22 offspray deployment. we've upgraded the missile defense posture with the deployment of the second radar, and we are working to revise the defense guidelines with japan to meet the challenges of the 21st century. and as announced by a the secretary last week, the united states and japan have achieved an important milestone in the effort to realign the marine corps presence in okinawa. moving forward with this

initiative send a clear signal that our posture will be operationally resilience and politically sustainable for the foreseeable future. in addition to strengthening the presence in northeast asia, we are enhancing our presence in southeast asia in the indian ocean region as well. in this regard, it is important to underscore we are not only rebalancing two the asia- pacific -- asia-pacific but within, and in recognition of the growing importance of southeast asia and south asia to whole.ion as a emphasizing humanitarian emphasis in disaster relief, maritime domain awareness, capacity building, and multilateral exercises. in australia, for example, the first company of marines rotated through last year, a key for step toward using the presence

to engage bilateral and multilateral exercises as partners of the region. in the philippines, we are working with our full and equal partner to enhance the capacity of the philippines armed forces, increase rotational presence, and capitalize on other opportunities for cooperation. in singapore, the first of the four combat ships will arrive later this month, providing key capability to work bilaterally and multilateral with partners in the region. these are but a few examples of how we are expanding our presence and that part of the region. next, we are giving priority in the investments to the development of platforms and capabilities that have direct applicability to the asia- pacific region, all the while preserving and integrating the counterinsurgency and special

operations capability we of work so hard to develop over the past decade in iraq and afghanistan. these new investments include the va class nuclear-powered submarine, including the submarine itself in the new payload module for cruise missiles, as well as the maritime surveillance aircraft and the anti-submarine helicopter. together, these investments will help the navy sustained the undersea dominance. the navy is also fielding the broad area maritime surveillance and search to expand their and capacity for isr in the region. electronic aircraft and jammer with their frequency range and increased agility. these provide extensive electronic or four -- where fair capability. in the air force, while we have made reductions worldwide, by removing some of the older where single-purpose aircraft to make way for newer aircraft, we have

made no changes in the tactical air posture for the asia-ups -- asia-pacific region. we continue to invest the fifth generation joint fighter, tanker replacement and a host of isr replacement. the army continues to invest in capabilities that are being deployed. at the dod will wide level, we are protecting investments in future focus capabilities that are so important to this region at such as cyber, certain science and technology investments, and space. in addition to investing in technical capabilities, we are investing in people, language

and culture skills, regional and strategic affairs to ensure that we cultivate the intellectual capital that will be required to make good on our rebalance. with regard to the military installations, we are making critical investments in training ranges and infrastructure, including in [inaudible]and . we are focused on delivering capacity, a managing resources and following through on investments. secretary gates and panetta held regular video teleconferences. some of you remember them. the commanders and all of the key players from the pentagon would work on those very urgent problems associated with both of those theaters. given the priority of the rebalance, the secretary decided to use the same model for paycom, a model that secretary hagel has adopted now as well. it is a model that provides

continued attention and focus on the region. to support the secretary, i have been convening a series of working sessions of the acting group, the principal management forum and the department, that are specifically focused on the rebalance to the asia pacific. so we're watching every dollar, every ship, and every aircraft to implement the rebalance successfully. we also recognize that as the world is changing quickly, the operational plans need to change. we're changing them accordingly. we are therefore taking into account new capabilities and operational concepts, advanced capabilities of potential adversaries and global threat assessments. finally, partnerships. these many elements of our u.s. rebalance, the u.s. ones i have talked about are only part of the rebalance.

we also see, as we have for decades, to build partnerships in the region that lever ship -- that lever critical challenges and realized opportunities. i have already mentioned the work we're doing with our allies and japan, korea, australia, and the philippines. but we are building partnerships with many others also. for example, last november we work with the treaty ally, thailand, to update the u.s. joint vision statement for the first time in 50 years. with new zealand, the signing of the washington declaration associated policy changes

have opened up new avenues for the defense cooperation in areas of maritime security and disaster relief and peacekeeping support. in burma we have resumed working to work in military operations and working to make sure they support the ongoing and dynamic reforms. with the vietnamese, we are expanding cooperation as set forth in a new memorandum of understanding. maritime security, search and rescue, peacekeeping, and humanitarian assistance and disaster relief. in malaysia, indonesia, we are similarly working to build partner capacity and conduct maritime security and humanitarian assistance and disaster relief. with china, we have invited the chinese to participate in the rim pac exercise, and are delighted to have accepted. we seek to strengthen and grow our military to military relationship with china.

commence rate with our growing economic and political relationship, a building in sustaining a positive and constructive relationship with china is essential to the success of our rebalancing strategy. finally, india, a key part of the rebalance, and more broadly, an emerging power we believe will help determine the broader security and prosperity of the 21st century with others. our security interests with india converge on maritime security, a broader regional issues, including the look east policy. we are also working to deepen defense cooperation, moving beyond purely defense trade towards a technology sharing and co-production. multilaterally we recognize the importance of strengthening

regional institutions that play an and the bridge against that play an indispensable role. in this regard, we have made ministerial meetings a priority for secretaries. especially the ozzie on defense secretary's meeting. -- aussian defense secretary meeting. we created a framework for regulating the conduct of parties in the south china sea. we would welcome china's active participation in negotiations on it. our position is clear and consistent, we call for restraint and for a diplomatic resolution. we oppose provocation, we oppose coercion, we oppose the use of force.

we do not take sides when it comes to competing territorial and historical claims, but we do take the side of a peaceful resolution of disputes in a manner consistent with international law. we are also deeply engaged in exercises planned this year, including humanitarian and disaster relief exercise that will be posted by at counterterrorism exercise that we are co-sponsoring in indonesia. a maritime security exercise code-chaired by malaysia and australia. -- co-chaired. as we work to build partnerships and asia, we will complement them with alliances in europe. i mentioned a forward-facing of the destroyers and route to spain. we have established an aviation department in poland to more closely to train with allies' air forces. we will place land-based defense systems in romania in 2015. we will redefine the presence nato response force with a

steady rotation of u.s. army forces to europe to maintain the trans-atlantic military links and cement tremendous inner opera ability gains we've made with allies and partners in that part of the world over the past decade of operations together. as we rebalance the transatlantic bonds become even more important as we face, and challenges outside of europe. so, there is much that goes into the rebalance. let me close by noting that there are those that have concerned about, and perhaps some that have hope for a theory that our rebalance will not be lasting, or that it is not sustainable.

i am a physicist, and therefore i put backs against syria. let me tell you why this theory does not fit the facts. the rebalance will continue, and in fact, a gain momentum, for two reasons. first, u.s. interests in the region are enduring. so also will be the economic political presence. this is accompanied by values of democracy, freedom, human rights, civilian control of the military, and respect for the sovereignty of nations that america has long stood for, and that human beings will come and relate to. so our interest in staging a pivotal force in the region will, we believe, be reciprocated. second, we have the resources to accomplish the rebalance.

some who wish to question the rebalance to the asia-pacific theater point to the seemingly endless debate in washington about the u.s. budget. and wonder whether all of this can be accomplished. i am interested to hear this because i am more cumbersome to listen to people question why the u.s. spends more on defense than the next 16 largest defense in the military -- in the world combined. this is true in fact and will not change much in the coming years. it is also worth noting most of the rest of the money the world spends on defense are countries that are allies of france and the united states. these levels of defense are reflection of the amount of responsibility that the u.s. and friends and allies

share for providing peace and security. you may also wonder whether the sequester will change the facts and a significant way. it will not. here is why. sequester was never intended to be implemented and is very disruptive, because it gives us very little managerial flexibility in where we take the budget adjustments that we have to take this year. wherever we have flexibility, we are favoring and protecting the rebalance. we continue to review and revise plans for escalope -- executing 2013 budget and the face of sequester, and also the face of this rich -- the increased cost of afghanistan campaign. back in january i gave direction about what is exempt from or protected from sequestration, and the services and components are applying that guidance. it explicitly direct the protection, wherever possible, of activities related to the rebalance this year. the main point is the arbitrary cut that sequestered imposes

under the budget control act are contemporary lasting through october of this year. in other words, sequester is an artificial and self-inflected political problem, not structural. hopefully the turmoil in gridlock will end in the u.s. can get back to what you might call normal budget process. when it does, congress and the president will decide what the budget will be in the years beyond fiscal year 2013. the president has been clear about holding defense spending steady in the long run or reducing by a few percentage points, especially by improving efficiency in defense spending. the drastic cuts that began with sequester this year were extended -- if the drastic cuts began with sequester the sheer were extended it would be 10%. none of these political scenarios changes the mass i

described earlier. the u.s. defense rebalance to the asia-pacific is not in jeopardy. that said, there is obviously considerable uncertainty about where the overall budget agreement that is needed to end the current turmoil, will lead. what is clear to us in dod is we need to think and act ahead of this uncertainty and not in reaction to it. moreover, it is not just the budget but strategic necessity that requires us to examine and reexamined the defense and a fundamental way. strategically, as i said, we are turning a corner after 10 years of war. we need to master the security challenges that will define our future. and, as you know, i believe

deeply in need to improve the way we spend the taxpayer defense dollar. all -- always striving for what i call better buying power since i was undersecretary of defense for acquisition technology and logistics. for all these reasons, secretary hagel asked me to lead a strategic choices and management review working with german dempsey and all the leadership of the department to examine the choices that underlie the defense strategy, posture, and investments, including all past assumptions. the review will define the major strategic choice is an institutional challenge is

affecting the defense posture in the decade ahead that must be made to preserve and adapt management under a wide range of future circumstances that could result from a comprehensive deficit reduction deal. or the persistence of the cuts that began with this year's sequester. the results will frame the secretaries guidance for the fiscal 2015 budget and will ultimately be the foundation for the defense review due to congress in february 24 teen. as the secretary said last week at the national defense university, the goal of the review is to ensure we can better execute the strategic guidance, including three balance to the asia-pacific. -- the reblance to the asia- pacific. it is important to stress this is not measured only by comparing budget levels. the end of the war in iraq reduction in afghanistan allow us to shift the great weight of effort from these wars to the stabilizing presence in asia- pacific region.

next, this weight has accumulated over decades of u.s. defense spending. so you have to consider the nation's defense investment over time. it takes decades to build a military capability of the kind the u.s. has pier yen probably most importantly, another feature of the u.s. military today is operational experience is unrivaled, including such attributes as the ability to work constructively with partners, to accuse intelligence and operations, to operate jointly among the services, to support forces with logistics'. all of these skills honed in iraq and afghanistan. so, for these reasons, enduring values and increasing military power, the united states can and will succeed in rebalancing to the asia pacific and the years to come.

thank you. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> deputy secretary carter, thank you for those remarks. it is great to have you here. you can see the turnout, a great audience and few members of the press and the back. i do not know if you can see them. this is on the record. did you know that? >> i did. >> did you also know we are doing live tweeting? >> i don't. >> i don't tweet either, but i would say the lead of what we

just heard would be, u.s. rebalance to asia last thing and sustainable and not in jeopardy. you can use these, by the way. two other tweets. second would be rebalance primarily a political and economic one, not a military one, but lots of details on the ladder. finally, a deputy secretary to asia-pacific, rebalance not named at -- not aimed at anyone. so, with those attempts at a summary, i would like -- it. maybe we should start doing that. i would like to turn to audience. minutesb but the

regrettably. i like to ask you to wait for the microphone. i would like you to identify yourself and your affiliation and -- we are back in baseball season, right? i would like you to refrain from any long windup before you deliver the question. just go straight to the question, and only one question. with that, be prepared. we have people that will come with the microphones. i would like to do something that is the prerogative of the chair. this gives me a chance, not surprisingly, to ask about where india relates to the rebalance? i heard your comments about the partnerships. you also referred to india being a key part of the rebalance. it was called a linchpin in that strategy. these are all good ways to connect to the rebalance in india.

i would like to ask you very quickly, what does this mean? what are the practical steps you would like to see to make this work? >> very good question. the thing i think i point to that is very much on my mind is -- i'm sorry. the thing i point to -- there is much you can point to in the u.s./india security relationship, and you are right, and no one knows this more than you, india is destined to be a close partner of the united states. wheat just share so much in the way of values and of --

aspirations. -- we just share so much in the way of values and aspirations. that has nothing to do with defense or military but will be reflected there. one area of particular importance work i think we make progress quickly is in building the indian military capability. they do not want to do it just by buying things. they want to do it would close technology corp. and code- production. we have examples of that that we're doing with the indians in that way. the secretary when he was there a year ago discuss this with the national security advisor there and came back and ask the deputy secretary of defense to take it from there.

i have my instructions in that regard. i think co-production and technology development are the watchwords within india. that will not only build the indian power capability and power of the indian military but bring us closer together. >> a question right here have playback. again, your name and affiliation, please. >> when you say it is not aimed at anyone, and get the sense you do not always by that. you add to that some chinese, enters and state media telling us that they think even u.s. deployments during this north korean crisis in response to that are the things that might be aimed at china. my question is, how to use address -- how you address those concerns when you do talks with china? >> obviously the things that we are doing in response to north korean provocations are just that, response to north korean provocations. i think china could play, and i wish they would play, a larger

role in influencing the north koreans to stop the provocations. china has more influence than any other country over north korea. and north korea's behavior is causing not just the united states but others and causing others to take action. the chinese causing them an easy way they do not like to see, which is to talk to the north koreans about stopping the provocations. more broadly, the rebalance, as i indicated earlier, is the perpetuation of the pivotal american military role in the asia-pacific region, which has had the effect, as i said, it providing for the peace and

stability that has allowed the countries of asia, a first japan, southeast asia, and now china and india, to develop politically and economically in a climate that has been free from conflicts. that is a good thing. that has been of benefit to china in my judgment as well. i think that is the best proof that the u.s. military presence in u.s. rebalance is not aimed at anyone. it has allowed all of the political and economic development to take place, and we welcome that. we have a very strong political relationship with china. that is the main thing. it grows every day. our military to military

relationship with china is also important and grows every day. i mentioned rim pac in the speech. >> thank you. u.s.re one of the few officials that has traveled to north korea. is there more the u.s. can and must do? are you seeing a change in the rhetoric from north korea over the past couple of weeks that gives you hope that things are actually cooling off and slowing down? there is a lot that is counter- productive. they're not all u.s. actions. i mentioned the u.n. security council led sanctions that are unprecedented. i mentioned actions and statements of others around the world. what we're doing, as i

and gave you several great deal defensively to protect ourselves and to protect our allies and partners in the region. so all of this is just further isolate north korea. all of this just galvanizes opposition to north korea and results in the kind of pressure that i think you see reflected and the security council resolutions. to go over here in the front. >> thank you for coming. you mentioned partnership capacity, which is now more

important and ever. we're still dating with outdated support system. we never defined controls for nato. what kind of structural or policy fixes are necessary for that part to work? >> it is a great question, and you named two in your question. one is export controls reform. those of you who know me as under secretary know that i am a mad dog on that subject as secretary gates was, secretary panetta and hagel and the president and so forth. this is something everyone agrees need to revise the export control system. it is a complicated problem because there are other agencies of government and branches of

government that participate in the export controls process, but we have had -- have improved but need to continue to improve speed and technical which we make export controls. so i take your point and will take your suggestions, as i always do. >> the lady in the second row. this will be the ultimate last question. one more after that. australian national university. how important is it for japan to embrace collective self-defense for the rebalance to work effectively? increasingjapan's

awareness of their own capabilities and their increasing freeing of themselves from what they have imposed upon themselves some decades ago is a constructive thing. they are doing that with respect to arms exports, with respect to kinds of activities they are willing to engage in the internationally, and i think that is a good thing. the u.s.-assisted process of healing and putting history behind in that part of and it gives japan the opportunity to play our

role that is very constructive around the world. they are already involved in counter piracy activities, maritime domain awareness and so forth. these are areas where the world has a need. if japan can be part of a filling that need, that is good for everyone. >> i also want to give a tip of the hut to australians increasingly using the term and go pacific to asia pacific to make it clear india is a part of that. final question, please. right in front. >> thank you. i follow up with dr. green, the partnership. visit andecent

focusing on the nuclear the currentd situation in iran and other potential alliance with china on the nuclear capability, what is your assessment, and current continuing toina be very provocative, especially to vietnam. >> a couple of parts to the question for those that were not able to hear it. one was about china's relationship with russia as they apply to region, and there i will simply mention what i said already about connection with north korea.

others bessia, like holding the situation in north korea, would like to see china exercise more of the influence it evidently has with north korea. that would be a great way for china to exercise its influence. south china sea i addressed earlier and said when it comes to the territorial disputes, they all have an individual history, and the united states is a matter of policy does not take sides in those disputes, but, we do take sides when it comes to how they are resolved. we believe they should be resolved peacefully. these are not situations to use force coercion. we definitely prefer

multilateral approaches. we think that is the appropriate way to deal with the historic issues. oft is why we are supportive the process. >> we have hit the hour that we must call this to a close. bestu want to tweet, tweet event ever. have some things out here to pick up. we have done some reports and an important study on the pacific command. pick those up. i also paid close attention to what the secretary said about the assignment from leon panetta to realize the full potential of the india defense trade and cut through bureaucratic red tape. the only thing he needs to do that is something i will present him from the u.s. india policy

studies, and that is the gun mesh, who is the removal of obstacles and impediments. this you could take back with you. [applause] >> thank you. >> thank you all. please allow us a moment while we get the secretary out. think you very much. -- thank you very much. >> in their message to the president, up willens and brian folsom look at the potential effects of a growing national the fence -- growing deficit. they are third prize winners in this year's student cam video.

>> what exactly is the deficit? it is defined by an excess of liabilities over assets, or expenditures over income. in simpler terms, the amount of money the united states sends that it cannot pay for. take of the component that directly influence the deficits are budget, a plan for expenditures, savings -- how much money are government keeps each year? leadership, choice is made to affect the deficit, and trade, how the country in turn act -- interact internationally. of the that this as an enormous impact on the country and by far the most important issue the president needs to address. >> the dangers of an increasing national deficit. debt is the accumulation of expenditures has recently reached over 16 trillion dollars. to go the debt per person, every

man, woman, and child has gone to almost $61,000. the overall debt of united states of america has gone from 10.6 trillion dollars to over 16 trillion dollars. the dow how much exactly is 16 trillion dollars? -- >> how much exactly is 16 trillion dollars? build the great wall of china with one trillion bricks 258 times. the numbers are in enormous. they are hard to comprehend. >> if you were given a dollar per day, it would take 44 billion years to pay off the debt. >> what is causing the deficit to increase so rapidly? to gut the gamut -- dynamic of the deficit is pretty simple. you have revenues coming in and expenditures going out, and if they do not match, you have deficits. >> what we have seen is an

exploding situation with the deficit. that is the difference between revenues coming into the federal government and the spending going out. we have been running deficits of 1.29 trillion, 1.3 trillion, and in estimated 1.2 trillion for this fiscal year 2012. to cook the simple answer is this country is spending more than we're taking in. it is a problem not just for the current generation, but a problem for future generations. we, as a country, cannot continue to spend more than we take in. >> where does the money the mix of the national deficit go? $818 billion goes to the department of health and human services. 18 percent or about $725 billion goes to the social security

administration. 18 percent or about $714 billion goes to the department of defense. $709er 18%, or about billion goes to all other departments. $640 billion about goes to the department of the treasury and other, and 10% or $392 billion goes to interest on public debt. >> what are the real dangers of the increasing national deficit? >> the danger is financial ruin for our country. it is financial instability. runaway inflation would have the collapse of the economy. we are on the verge of going in a pathway that will be hard to recover from. >> this is huge. this is something for do not turn it around, there will be out of control spending and will threaten your future.

views,ing over political political parties must work together. >> working all the time with democrats, republicans, and independence. sometimes i could not tell you who were -- who we are focusing with because we're focusing on solving problems. to make tough decisions. we need to live within our means, cut the pork, and start growing the economy again. with the combination of cuts, growing the economy, aluminate -- eliminating loopholes out there that are it appropriately giving to business industries out there you can balance the budget, live within your means, grow the economy and get back to living within your means and eliminating the debt. >> you have to come up with the right type of tax policy to enable small businesses to grow. you have to stop printing money to try to buy ourselves out of

this problem. in the federal government there is no amount of money we can spend to rectify the situation. simpson-alled the bowles solution. they worked hard to come up with the solution and wish to take advantage of that. >> to get the spending under control. ticket democrats, independents, and a lot of republicans, as well as independent economists and budget experts -- that is how you reduce the deficit with a balanced approach. mission,er we are on a a mission to move this nation for word from doubt and downturn to promised to prosperity. >> both parties approach the issues before us from very different point of view, but time is truly running out on our nation structural but is it a

long-term debt and the need to address those. >> how will be increasing national deficit affect the future? to cope with the first side the majority of americans now doubt our children will have a better future. >> every generation of americans leave their children better off. that is the american legacy. sadly, for the first time in our history, we are on a pass that will fund to that legacy. a path that will undo that legacy. >> we are insuring our children will have less opportunities than we have all had. debt,ortunately, that that payment is likely to fall on the generation today. is all the rising generation, the young people, my children, my grandchildren and my great-

grandchildren will be shackled with that debt. >> the next generation and for generations to come. as it is right now, i worry about my kids and grandkids having to pay debts that we have incurred, my generation has incurred. that is fundamentally unfair in my mind. what we should be provided to the next generation and the generations that follow is not a debt, but a surplus a you can continue to build on this wonderful country. >> so let's get to work. getear mr. president, let's to work. >> to see more winning videos go to studentcam.org. >> on c-span this morning, the top military officials will testify at the senate armed services committee. topics will include the korean peninsula and defense budget cuts.

we will join the hearing in progress live at 10:00 eastern. in just over an hour, rob portman. the discussion will include the political budget and the decision to support a same-6 marriage. president obama's pick to be senate energy committee will testify. that starts at 10:00 eastern. , we will in a moment be live at the u.s. naval academy in annapolis, md., looking at the history of the academy. we will be joined by a naval academy attended andrew miller. -- michael miller. then joined by andrew phillips. after that, unable academy graduate, john mccain.