middle-class and upper-middle- class people. well, that is because the aca has not laid down a minimum subsidy for those area that to me is an analogous kind of move. we are setting a subsidy floor for people to use. it is extremely likely that the high deductible rush holt quoted will be wrought down -- deductible that was quoted will be brought down. actually increased the floors of subsidies to people over the aca and the status quo. the other point that is relevant is that ending community rating actually makes it cheaper for people to go out and buy down their deductibles, for example. it becomes more feasible to bring your deductible down a lot if you are in one of the healthier roots. .- healthier groups

to the point he made, if he is 100% correct and not much of the variance is explained by its, i will note that current policy already attempts to make these kinds of distinctions by transferring more medicaid coverage to people who are medically needy, for example. problems ints of the way we defined who is sick and who is medically needy. is this problem with how do you i do who is sick? that is not a problem that is unique to our plan. it is unique to any kind of legislation that tries to assist the sick. i do not think there are any particularly bulletproof ways of doing that today. i will hand it off to your you if you want to add to that -- to

you if you want to add to that. >> this is not like car insurance. if you cannot afford car insurance, you do not get to have a car. with health insurance, there is that social -- social insurance component which is the degree to which the healthy pay to subsidize the cost which is something we cannot really have an explicit conversation around, so we view it as best we put that up front saying, when to figure out what this basic plan is. -- andot think and economists will ever figure that out. until we devise that institution via a elected or otherwise that figures out what it is, we are really not going to make a whole of traction on improving the health insurance marketplace. one might say that as a limitation, figure it out. which we are doing is figuring

out how to get the market part of this plan to work. how do you get the prices to work, the incentives to work. tell us with that basic plan ought to be. it is a high level response. we agree with you. we spent some time talking about the opportunities to improve diversity of choice in the medicaid program, but our plan is not only directed at public spending. our view as economists, if people want to spend an increasing chunk of their paychecks on healthcare, that is perfectly all right. would want them to a elect to spend a greater and greater portion of their paychecks on healthcare. right now, under employer-

provided health insurance, we do not have a choice. all employees have the same health insurance plan and many would prefer the less generous plan which would allow them to have higher wages that they could spend on gasoline, polish tuition, a mortgage. i think we agree with you. we think the single best way to bend the curve is aid to get rid of employer-provided insurance. deliveryers want to health insurance to their employees just like to deliver a nice office space or meals, they should absolutely be entitled to do that. all we want to do is eliminate the subsidy, eliminate the tax expenditure associated with it. the largest source

of coverage in united states, there is no question that we think that would help reduce the growth of total spending on healthcare, not only the growth of medicaid spending. this is just an observation. i think we are in this uncomfortable place as a country. i certainly feel it as an economist. any opportunity -- any attempt to modify the aca in any direction is viewed as a threat to the entire aca. i'm speaking , we think tour plan starts and ends with ideas that are lifted right out of the aca in completely turbo charges them with the exception of eliminating community raising. eliminatingt community rating is something that will actually happen naturally, we are just the first to come out there and say it. it is going to happen naturally because of patient preferences.

there is no way that young people want to pay the same insurance premium as old people, that rich people will want to pay the same premium as poor people, and so on and so forth -- that cancer patients will want to pay the same as diabetes patients. that,do not acknowledge we will have to keep circling the flock with more and more mandates. at some point, old mandates will sort of fracture. we are saying, if community rating worked, if people were willing to enter into that kind of social contract, great. we just don't think they are willing to enter into that kind of contract which is why the aca introduces the individual mandate. that is why the authors understood that the young and the healthy will not want to buy health insurance which is why we have to force them to buy health insurance. >> first of all -- thank you.

this proposal does go in a completely different direction. if what you are saying is there are ways to modify it the aca which are consistent in principle, it would be helpful if you would say so, but you do not in this paper. thatld urge in a revision you take up the specific modification that you think would move it in a desirable direction. second, if you really believe the goal is slowing the growth of total healthcare spending, i would urge you to lobby hard for saying so and not to say the growth -- the plan is to sell -- slow the growth of public spending. much of this sounds as if united populations, the sick end of the well and they are completely distinct and never crossover.

but at the same time the paper says we should have really long- term insurance contracts and if you do, the difference between the sick and of vanishes. we are all, at some point in our lives, both. is a heat seeded conception that this inconsistency indicates and reveals. >> i would just add that it gets to the issue of the basic plan. i think the challenge, which is not a challenge just for you but for everyone, advocates a little bit at what henry is saying, i think people are looking for predictability. i think that is what you are trying to discuss with the long- term plans. the rest of it may be just a transition to get us to the long-term plan. i do not know if you can comment

on that a little bit about how you see that playing in the execution of this. author -- isk my co- think he wants a chance to speak. >> thank you very much and thank you very much for your comment. i want to address two things. realistically, we have to figure acahow do we get from the to our plan. substantials not steps to getting there because the aca contains some key provisions that overlap with our plans. there are credits for individuals. credits toe tax lower the cost of premiums. what we would do is take those tax credits and eliminate the income limits on them. they would not end at 400%. if they would go all the way up and down the income ladder.

we would take the tax credits and generalize the entire population. number two, the aca has a general -- a wonderful idea to start exchanges for health insurance plans. those exchanges are very important. andill take those generalize those, too. those twogeneralize important things, you don't need a lot of other things. you don't need the medicaid expansion because the tax credits will take care of it. you don't need the employer-and sponsored tax credits because the exchanges will take care of it. that is what we think. we think the aca is doing something right and we need to expand on it. the second thing i would like to stress is when henry talks about the basic plan he makes it out to be a very uncharitable plan. be a veryt out to

uncharitable plan. at the thing that is missing is the basic plan is not what you have to live with. it is what defines how much subsidies you are going to get. you can always top it off and to say, my deductible is $20,000. that is way to the below high. -- too hi. that person would go out and get a plan that lowers the deductible to $5,000, $1000. the interesting thing is, if you take into account the fact that theliminate the rating, price of reducing that delectable is much lower today. might only cost an extra $50. you take a basic plan plus $150 in your deductible comes down to $1000. that is the important thing here. we are changing prices to make plans cheaper. >> well, i spent a lot of time

doing cost estimates over the years. i have read some amazing stories. that number is pretty amazing to me but i cannot wait for this plan to go into effect. i guess i have maybe 30 seconds to ask. theve heard a lot about under 65 insurance market. met the older generation? where does medicare fit in on this? is there a quick, short answer on this? i think that medicare emphasizes a lot of these transitional issues that i think everybody is right to say -- we have not tackled the question. they be the next report will. >> can i just add one thing to that? one of the reasons we

did not touch it medicare is there is a lot of disagreement amongst us whether we could touch medicare with this plan. again, speaking for myself, what is it doest medicare not have this plan where it has the poor in one plan and everyone else in another plan. at the same time, what i do not like about it at all is the fact that medicare essentially reimburses your services without regard to their value. insurers they did cms not to cover this therapy. they told cms that if you, medicare, cover photon beam therapy, we will have to cover too. it is a long way of saying that to the extent that we want

control and healthcare to come from decision-making by physicians and hospitals and providers, one reason to extend this plan up to medicare is that we are more likely to see technology assessment of that type which would have avoided the photon beam problem. why do you think that in your world you are going to be free of congressional oversight, the pressures and public are the center for medicare and medicaid services into making what was probably an ill-considered approval judgment in this case. going to ben are running for office and of voting on your basic plan. >> what they will probably be doing in november is they will onessentially campaigning

the size of that's basic plan. you will have a guy say, i liked me for office because if you elect me the basic plan will include the photon beam. what our plan does this puts a specific price on that kind of conversation. we can say, this is what it is going to cost us. >> just to wrap this up with a little bit of a cynical comment, there is already that price, but it probably doesn't show up directly in anybody's medical bill. but it is still there. go to the audience with some questions. this lady had her hand up way ahead of everybody else. wait for the microphone. the state your name and affiliation. collects my name is barbara --

collects -- [video clip] >> my name is barbara and i am a nurse. your elevatingss of the government responsibility to provide care. historically, that has always led to government control. as in obamacare. when government control is leading to economic rationing and the loss of the patient decision-making. how do you reconcile government control based on the economic and political needs of politicians with the needs of the patient for good quality care. i was in washington -- >> we have your question.

that both henry and nina have raised about government .ntervention there is a continuum here. you can never disengage the healthcare care system from the political system. the issue is that the more buying power we give to the government, the more influential it becomes and the greater its capacity to make changes that may be good and may not be good. an example is the medicare prescription drug benefit. if the government directly provided insurance are prescription drugs, it would have a lot more direct buying power for those prescription drugs. it could make very direct determinations about which drugs could not be purchased. instead, we have a system where the government subsidizes a private marketplace. clearly, there is still a potential for it to interfere and intervene. at least the disconnection or

distribution across the private and public sectors mitigates to in fact, we are all incomplete agreement that there unpredictable effects in general. >> i would like to say a word about the affordable care act is it was misrepresented in the question. choice among insurance plans for most people will increase, not decrease. there is nothing in the system that represents benefits for .hose benefits exchange the default plan is the private sector plan that was most commonly offered. insurers can offer additional benefits on top of that for which they are free to charge and that individuals are free to buy. the idea that somehow choice is compromised and patients are in a straitjacket, that federal

legislation is constraining the range of offerings available under the affordable care act is simply false. choice is increasing. faces isdanger that from those states were governors, legislators, attorney generals are trying to make the plan and fail in implementation. >> i just wanted to do a quick response to henry's point. i think you and everyone will agree is one area that the aca does not increase choice, and that is unmedicated. aca puts you in medicaid plans with no choice. there are massive access problems. you end up with a card that you cannot find a physician.

our plannative, which does, is to mainstream it. it allows access to the same health insurance plans that you and i have. has much moreve dignity. >> it does one more thing. it raises fees from primary care to medicaid levels. admittedly, an insufficient degree, but it tries to improve access somewhat. [inaudible] >> i am a journalist with the christian post. my question is to nina. you mentioned the difficulties of applying this plan in the political space.

teddy cruz has made a lots of headlines by saying he would try to defund obamacare, but this more conservative solution to obamacare. what do you consider at all gop?e or the ideas for the >> i think i said in my conclusion that the idea is that we need to see where the dust settles. we don't know whether implementation or how it will go, whether the health care lot will continue as is. there are some efforts that there may be a repeal of the health care lot depending on one's the law takes effect. this is an important conference -- an important contribution. when you to see where the policy and the politics and up on this and then revisit. said earlier that there are a

variety of things that we have in common. then you have to sift that through and figure out at what point you have something that builds a larger consensus. world will have permanently changed before we get too serious consideration of alternative policies. >> think you. -- thank you. maybe you have not understood the proposal. there is a risk adjustment behind the curtain and that is what will happen in the exchanges. in a state like new york, it does not work if there's no adjustment behind the curtain. i am trying to understand in your proposal, if i had aids, when i go to the national

exchange, now you can apply to the irs and they'll give you a tax credit? see how that is going to sell for the voters. can i get some clarification? >> what would happen for that is there below- it is the poverty level, which is a pretty high threshold. they would go to an online exchange and ask for the basic plant which would cost $150,000. they would immediately get a tax credit. when they check out, the price they pay is zero dollars.

>> on page 26, your example speaks to this issue. an attorney who goes there, get guysr, and then you subsidize them. what is the point of getting insurance? part of the social contract is we are all in, but now i can just wait till i'm sick. this best of both worlds should be pie in the sky. it is all free. i don't have to do anything. can you clarify this? >> it depends on your income level. if you're below the poverty level, you are covered for a plan that covers you whether or not you get sick. it doesn't matter if the premium is paid at the beginning of the year are paid next year when you get sick. the government will have to pay for that once we decide we want to pay for the poor and the

sick. it is still insurance from the perspective of the individual getting it. you are not going to get as big as big a subsidy. if you don't want to compromise your income, you get the insurance ahead of time. that is the answer. the fact that you pay for it every year does not mean it is not insurance. >> i would briefly add that the presence of long-term contracts in individual market would be something that our hypothetical lawyer would be interested in as a protection against income loss due to high health care spending. >> my name is dr. nathan. my question is, the essential tenet of this plan is choice and

competition will bring down costs for families. last year i got published in the new england journal in response to doctors who are saying there are -- there is not a whole lot of evidence. dr. gruber has showed a lot of choice inconsistency. they pick plants that don't to minimize out-of-pocket costs or financial variability. and then the medicare advantage, too many medicare advantage plans just flood people's ability to pick the appropriate plan and they cannot always respond to the generosity of plans. we that choicere and competition will improve the value in health care? are two brief answers. one is, compared to what?

medicare, which does not have a lot of choice, has not done a good job restraining costs. the question is, are there alternatives that would do better. in terms of the medicare part d example, which i think is failing here, there is evidence with choice and consistency. is also evidence by others that suggests on the whole chase -- choices have been reasonably beneficial and overall the costs have been somewhat less than anticipated. that marketso say don't work perfectly. the question is whether they will work better than the alternative and i think that is how to frame the question. >> two points. first, the idea that medicare does not have a lot of choice is false. the typical medicare and rowley has the choice between traditional medicare or a couple dozen or more medicare advantage plans. is an abundance of

choice already in medicare. we could argue about the exact adding arrangements that exist and i think the economists here could probably design editor once that would promote competition better than the choice,system does, but we have got it. if there is evidence on the relative performance of medicare advantage versus traditional medicare. it actually was done through the freedom of information suit. the evidence is that on the average, it is not uniform, it depends on where you live, medicare advantage plans are slightly more costly after adjusting for patient characteristics and package differences than traditional medicare is. that is in support of the skepticism that the question i raised. i think it would be great if we had long-term contracts, but i

think the reason we don't is not that insurance companies are -- are fearful to unable recover losses from those , it iscel coverage because they cannot predict what long-term costs are going to be. they don't know the course of medical technology. in addition to that, behavioral economics has taught us that people tend to overweight current costs and discount low probability risks in the long run. today to pay more than you have to when you are young and healthy so that you can get a relatively level, a long-term premium and pay less when you're older and sick, we are calling upon people to do whatpsychologically and behavioral economics has indicated they are not very good

at doing, which is making very careful, long-term plans involving risks that are difficult to appraise. those are the reasons we don't have long-term insurance contracts. not because of a legal entitlement that companies cannot recover costs that they may suffer because of cancellations. that, itick point on is not necessary. you can imagine a pretty good long-term contract that says you cannot rate my premium because of something that happens to me, but you can raise it for aggregate reasons. some life insurance companies do this, for example. they say, we can read rank the whole group but we will not do it to you. you can still get pretty good results with that kind of a setup. >> we have about their key

seconds. if you can ask a 15 second a 15ion, you will get seconds nonresponse. >> what can be done to incorporate into the healthcare university increasingly growing number of americans who are skeptical of the conventional treatments and would prefer more integrative report -- approach that has alternative and preventative approaches to the medical care. >> i was getting confused. the bottom line is that the market should be able to produce plans that people value. pain and youe back want to see orthopedic surgery, you can choose a health on that will cover those kinds of services. if you want to go to a more , you can go tor

an insurance plan that will cover that kind of coverage instead of having to pay out of pocket. much.nk you very join me in thanking our panel for a great discussion. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013]

>> you can see that discussion again any time and look at the c-span video library. we are going live now to a discussion on a defense review. the major general will discuss the air force strategy and the value. it is a mandated review of the defense department strategies that are carried out every four years. >> a special thanks to our viewers on c-span. as a startingyou point to turn off your electronic devices. i say that as i am looking at a mine and realize that i frequently get lost in the commands. there are so many options that offer is hard to find.

this is a special discussion series. been holding these talks for more than one decade now under the generous sponsorship of rolls-royce north america and we are grateful for that support. it is allowed us to continue this ongoing discussion and dialogue to a big buildup. we are grateful for that support. this special discussion series is on the defense review. we know almost everything by its initials. insider whenare an you can engage in an entire sentence with subjects, verbs, modifiers, and they are all acronyms. and it actually makes sense to

you, if you will. i will review that history briefly with you and then we will welcome our guests. the general has been in the air -- you enrolled first at the air force academy but graduated in 1896. he has had quite a number of assignments at all levels of the air force, over 600 hours of combat flying ranging from original desert storm and desert shield. he now has the unique distinction of being the director of the air force office. he has got the responsibility

for managing this from an air of course, itive. is a statutory requirement that congress passed back in 1996. there has been since then, for. this will be our fifth, if you will. they are pattern on something that happened before. says, let's take a look. we are not going to have as much money. let's take a look at a changing world environment and look at how the strategy and resources online. the statute from congress says you need to look at what you're requirements are independent of your resources. we all know the basic plan by which the dod does this sort of thing. first you build your strategy, then you look at what resources it takes. if your justification is

adequate, you will get most of it. this is in a very different circumstance. thes a circumstance where role of congress is a bit more ambiguous. we are now in the first week of august. we have a disco year that ends in seven weeks. the defense department does not know what that fiscal year looks like. we still have programming actions that are out. we have contracts that have not and awarded. there thateports out furlough days are being reduced in the defense department from 11 to six. i suppose that is good news in this you build your vacation plan around a four day weekend. we will see how that plays out, if you will. we have no good idea where we are going for fiscal year 14. we may be operating under a continuum resolution. there may be some flexibility

under that law. we may be looking at a government shutdown on october 1. we have a debt ceiling prices that will hit somewhere around veterans day or something like that. of course, if we don't have a from the budget control act, we will have asther sequester in as late january 15 of next year. that is a lot of uncertainty in the budget arena. is the defense review somewhat independent of those resources. there is value of doing it regardless. when you areul building up or drawing down. what we are going to do is welcome the general. he will give some remarks and i will engage in a little bit of a discussion with him on the stage. i suspect i will pick up a

couple of questions from his comments. and then we will open it up to questions from the floor. your five the opportunity to pick up as you came in notecards. if you run out of notecards or do not have one, raise your hand. i don't think we have number to lead pencils, but we can probably find them if we need to. they will bring the cards up. adviser andsenior they are here to integrate those cards. we will see if we can get some answers or some commentary on those. the whole point is to engage in a dialogue or a discussion. we are grateful to the general for joining us here today. let me turn the stage over to the general. >> thank you very much. [applause]

i would first of all like to thank you for being here. i know there are many other things you could be doing on a fine summer day. i appreciate the fact that you are here. i know you are here because you care about the future of this nation just as i do, just as those who are part of the crowd that makes sure the dialogue is .ich and deep i welcome contentious conversation because that way we .et it right we do not let groupthink or taking the easy road be the answer because that usually fails as a society. the business of failing. let me start out to bite saying from an air force perspective, this is an opportunity to ask some of those fundamental questions. as a team member for this broader department of defense journey that we are going to be

on, i will help articulate those questions from our chief and our secretary and our stakeholders that help the air force play a productive, helpful role towards a some of the things he was alluding to. towards the fact that our world is changed and i am not sure we have done a good job of considering how it changed and what it means for what we are and what we are building has with regards to resin -- relevance. some of these questions i think are pretty fundamental and plays right into the air force that i will talk to in a second. the tough questions are, what is the nature of our world and what world do we play in which his late out by our national leaders. of then what kind

constructs, methods do we look at to see if there is a different, better way of doing things. approaching security in a way that is affordable as clearly our resources are diminishing. it also means looking at the entire relationship. what is the method we are using to achieve them. our posture, our presence. some of the same theologies grew out of world war two. they need to be looked at and asked the question. if the technological place we are at right now married up sufficiently with the way the world is changed to transportation and all of the other things that you know so well? it married up with the approach you are taking in order to be players in this world.

allow statesmanship to collaborate so economic goodness make to america and america's engine of national security strong? that is our economy. so for the air force, this conversation is a rich one and plays into the entire purpose and reason why the air force exists. when you talk about economies of force and having aspirations to the air forceder, is your best bet in many ways. what we do is go out and bring air superiority anywhere in the world so that we can go and see, hear, understand the environment with all of the other elements we have to understand decision quality information so that we are acting with efficiency and

prudence and in a way that has a cause and effect relationship to bring peace and stability and not conflict if it all possible. we can then move things to wherever that place in the globe thingswe can deliver whether it is humanitarian or other things. nobody can stop us if we have that will. finally, we can bring to bear the capabilities. we can drive deterrents to those who might oppose america's desire to be a leader for peace and good in this world and we can deliver it in any environment, contested or uncontested -- it doesn't matter. we can provide our president options and of those options mean we do not have to say no. in order to do that in and affordable way and to continue to be in that indispensable role in our nation, we

have to look at those underpinning questions about how we are structured and how we fit into the joint fight. finally, we have a command and control that links it all together. the air force is the one that provides -- that will bring the entire fight together in a harmonized way to make sure that we always maintain the advantage against any potential adversary and nobody can do the integration that the air force can provide. those kind of describe some of the questions that i think are at their that we should be asking. q dr needs to ask other .uestions it needs to rest questions about these asics and deficiencies. we need to make sure we are stewards of taxpayers money.

when he to take a look at our sizing construct to make sure we are sized appropriately for the right capacity. when he to the guitar models and total force for how much capacity is in the reserve component and how much is for this future, depending on how our nation wants to proceed. we need to always take a look at their homeland defense. the ability to look at what threats are out there that we might need to be ready for. i will close with one statement that i think the our charge in uniform. we will never predict what the future will look like. we will always get that wrong and always have as people. we can build things that provide options to our american people

that bring the resiliency so they can swarm and fuse any and to bringhere forand space superiority decision-level quality information. you can move things there, to and from, at the time of your then finally you can command and control it and you can act. you name it, you can put effects on target and you can do it all at the speed of this world. that is the final point i will make. there is a dimension to the security element that only the air force provides and we have to not forget that. readiness and our ability to move quickly. the president has a problem in the south china sea and in hours

or days later you have a problem in south africa, you need to be able to swing immediately. otherwise you allow things to cascade out of control. because back to the old adage -- a stitch in time will help you prevent spending much more in the future. the air force is that arm that brings the temporal dimension that brings us a better future. is a wonderful place to have those communications. and those things we uniquely provide this nation that has made it indispensable since our inception in world war ii and will make us a player in the future that gets stronger and as we gospecially through financial times where you need good economies of force and return on investment for your taxpayer dollars. the air force is your service to provide that. ok. thank you for having a few

opening comments. i hope those questions i asked precipitate a few questions of your own. take it anywhere you want. i have my limits. i can only talk to the air force and the role that i play, but i welcome any question. this is about contentious conversation so that we as protectors of this nation are policymakers who make decisions and being provided clear counsel and our nation does not regret that we didn't have the right conversation at the inflection point in our history. >> thank you, sir. have a c and i think we will roll back the podium here. seat and i think we will roll back the podium here. i will comment on some points that you made. i want to look at it from three

levels, if you will. one is from the perspective of the air force. it review is a process but produces a report and there is a document. i have not checked with my local library to see how may times their copy gets checked out and for a numbereach of universities are and i know my students get to read even the old ones. it does move around and up and down the circles, but as it is much more process than the document itself. on elizabeth from three perspectives. one is inside the air force. i want to look at this from three perspectives. one is inside the air force. there is this cold guidance and guidance from the strategic choices in management review that was just completed.

there are a lot of other internal documents as well. is due to congress. it seems there, are issues that you touched on in your opening remarks that is important to get started in advance of getting guidance and in terms of reference. how do you use that time now to position yourself better? >> the answer is we never stop this process. team and that is always there. we become more public during this tenure where we will deliver a report, but we wrestle with these questions each and .very day we keep going back to our

partnership with the army, marine corps, looking at grapple with to these questions. from a process perspective, we gave insights. even though it did not deliver everything that everybody wanted to deliver, it was a process where the money was and it looked at and helped reveal some of the state and affairs we were in. a platform for strategic decisions and where we want to go in order to be affordable and , relevant, and effective. this team, that is there all the time and is then out in the public more often at this team.re will build a

18 teams.ned we built our strategists and subject matter experts to collaborate on these questions. we will do the same here. once they give us that schedule we will take a look at that structure and then we will contribute. some of the services there are more closely attached to the resources or to an existing set of shops. are more independent than that, aren't you? >> yes and no. we have thense that potential of being independent when it requires that. we are married to our entire

corporate process. we plug in primarily to our resource. it has to betant. that way. that's is our strategists, our programmer. that is where this corporate process looks to for its strategic guidance and counsel. the goal is to uplift the entire process of the air force so there is no stone unturned when we are looking at a question to find the creative, collaborative, and harmonized counsel that is true to an air force strategy and continues maximum potential. notch.me move it up a interestinge elements in the process.

haduple of years ago, you to defend strategic guidance that was issued january 2012. it had the intense involvement of the president. strategicou had the choices and management review. even in advance of guidance, had you look at that perspective from where you are sitting. >> i think that is a fairly clear picture. that guidance is the place where we begin. that is part of our presidents posture and that is where we start the conversation. that has been clear from day one and unequivocal. is that this whole

conversation about strategy includes all three elements. it includes what we are trying to achieve. it includes resources we need to achieve that and the methods we go about achieving that. you have to look at all three. the defense strategic guidance has to be considered in this conversation. it is above my pay grade to the white house and to others as we have this conversation. the ground rules are clear and they are unambiguous. place to begin the conversation. >> you do not assume, for instance, that using the qdr process will allow you to raise questions. it is a way of reinforcing it. >> what it does is open up see how wen to explore the possibilities. are there ways we can do this where we can achieve it perfectly?

are there places where we might have to adjust? and if so, it is not our call, but at least we can have that conversation. wherewide open as far as we can explore. in my humble opinion, there is asmendous room for maneuver far as being creative or innovative. as people who are defending this nation and using american people as resources to defend it need to be creative about going back and questioning our assumptions. it we doing this because worked for 70 years and we think it'll work again? or is there a new approach where we could achieve the same result better, cheaper, faster, smarter. that is where the conversation goes. >> the possibilities of looking at those from a fresh perspective. >> only the president lets us. it on ae talk about

professional level. article two of the constitution, article one puts congress in charge of providing resources. also, the rules of regulations in which we operate. in a way, congress created this to requirea check the pentagon to explain what is it therefore, why do we need an air force and army, and a way of validating that. part of how they do that, most of the times we have done a qdr, there has been an independent panel that looks at what dod doesn't provide their judgment to congress. this time they have done something different. that panel is already in place, ready to go, parallel with the internal process. thedo you incorporate

existence of this panel and its role? >> that is the call of my bosses on how they mechanize that, or my bosses bosses boss. the reality tickets after the collaborative here. the one reason you hear voices in congress that are dissatisfied with the past gets after this element. it wasn't just that they were ouring the qdr to grade hallmark, they want to be able to help, see, shape, and understand how the strategy is informing where we are going. that is a very important thing. i am a firm believer in this that kind power were of collaboration, although contentious and sometimes filled is betterical drama than not collaborating. however the secretary of defense and the president decide to make

thisce this -- mechanize collaborative element, it has to be there to some degree. where congress does not have regrets, the executive branch does not have regrets, and that is the place to be. i embrace the collaboration. i will work with that -- work with whatever they give me and to make sure we are collaborating. >> it gives the dot to talk about ways in which we're smarter today than we were yesterday. when you go to congress and say to that -- and say that, their first question is why did you not stop being a member sooner? getting to be a harder and harder explanation. i am monopolizing the conversation. let me turn to some of the questions from the floor. >> think you.

i would like to piggyback of what you just talked about in the congressional role. that the addedar specific language is it should not be resource constrained yet somewhat consistent internally to the same language is it must be with the budget plan. so we have a couple of questions from the audience that talks a little bit about resources. the first one is one we often hear every time it is due, and that is talking about how the you talk about developing a strategy without first organizing resource constraints. given our of our resource constraints. it also includes your people and equipment. another question is piggybacking off of the resource question, how does the air force an think about modernizing

air force that is currently arguably the smallest and oldest in the service history? on the people, if you could talk a little bit about the access component, reserve component mix. i understand this camera was to have a working group on this question that never really convened or came out with much output. if you could talk about those three. how are you approaching the question of resources in office and modernization and the mix. >> great questions. each of them in order. all of you that are part of strategy understand that you have to take excursions intellectually in order to find the sweet harmonization point between ends, ways, and mean- spirited the unconstrained portion of that are the

excursions where you start with the nature -- nature of the world and your place in it and unconstrained, if i could build anything that is feasible, how would i put that together. it comes down to having a good strategy. and then blushes of crawfish the and looking for opportunities to innovate and opportunities to be creative about -- about the approach. opportunities about the ways you try to achieve that are informed by the resource constraints that are the reality. this goes back to the same principle. the way we approach it is the way that most people do, and that is just as we do this

process of looking at the strategy, looking at the world and looking for alignment, as you do that again and again, you start the uncovering opportunities to do things in a different way that allow you to achieve a fuller degree of the strategy. this conversation is how we get after the strategy that is resources unconstrained but being practical about the fact that resources are part of the three-legged stool of the end, ways, and means and only the process that allows you to start getting some synergy there and having something that his firm, solid, and dependable. second and to your ofrd one, there are a number

.nteresting paths you can take i will take the last one first. military isin any you want to maintain capability. are creative ways of doing that where you can have a capacity that is not quite as expensive to maintain. the balance is always there. the fact that this camera did not come out with any tangible solutions or suggestions on that is not the fault of the skimmer, just never scope to do that but that has to be part of the calculus. this goes into the conversation i was just talking about. the balance between active duty, makes and reserve, difference. it is predicated on how you

believe you should be shaped in order to be responsive to the world. there force will be very different because of the readiness model. but with what capacity? so that is why it was not part of this. that goes after the qdr. then the programmatic part. a pass to be rooted in programmatic. those conversations answer all three. did i miss anything you wanted to hear? >> could piggyback on one of those? ofhave done a fair amount work here, and i know there are force has gone into this in greater depth of the impact on the budget from the rising cost of manpower, even if you cap off a number of people, an increasing share of the budget. health-care costs associated with the manpower. and costs rose inside operation and maintenance with respect to civilian personnel paying

benefits. those costs are growing fast enough that adds up pretty dramatic moves, they squeeze out investment over time. and some of those issues were on the table in the strategic choices review, but some work off the table. are any of these off the table inside the session or is everything on the table? >> everything was on the table. it really was. it continues to be on the table. about not heard anything my leadership talk about anything being off the table. really -- much of that lies in the congress. they will make decisions. our role in the military is to provide the best military advice

so that as i am asked to provide a course i can recruit -- recruit, train, and volunteer, i have to make sure the compensation packages allow me to do those things and that the efficiencies are prudent and responsible. i think it is incumbent upon us to continue going back to congress as department of the -- to oero is sd, improving suggestions that not -- that does not break recruitment, retention and volunteer force. it is very different for each service. the air force has a very different model than army and navy and marine corps. it is hard to find consensus, but there is consensus. this will continue, i am convinced. we have not seen what it will look like.

this has to include efficiency and compensation. you encouraged contentious formula. willus how this effort look at changing. there has been recent commentary leadhis effect, at that qdr -- needs to move towards an unmanned fleet. can you tell us how that will be addressed? >> next question. again, this question but that those assumptions. we all have to go back and ask. we have to take a look at where technology is at and the facts. this is a sober stare straight

and i of science and technology of what is practical, what is noty and making sure we do take any steps to grab on to a branch of the future that is insufficient before we let go of branch of debate. it comes back to the fact that we cannot fail in the business. if you are in corporate america, you can take risk. muchay not have as authority as some people think. we did not have the authority to take certain risks. we have to be efficient for the nature -- the nation, no matter what. it means this question and things just like it we have to look at fairly, let the facts guide us and look at the places where we can be more effective and efficient and deliver better bang for the buck for the american people. we need to let go of any preconceived ideas and not to grasp after a love affair with a

certain preconceived idea of what may be in the comic books or movies. practicality,f clear i presentation of the facts and the science that is out there is a key component to this. we have to be creative, but we have to be careful not to be reckless. from the audience. you mentioned a love affair from the technology. part of that is out of necessity. that is very true in the area of energy. could you talk a little bit about how how qdr will talk about renewable fuel energies and cutting-edge requirements coming down the pike that you can see. i know the requirement is to look at 20 years, particularly where energy is concerned. among all the areas, that is among the most impossible to

protect. if you could talk about how you are looking at that area. >> think you for that question. this gets back to the first principle of how we approach the question dovetails into the last one as well. that is because we do not know what the future will look like, we do not know how the world will change, what kind of discoveries we might trip upon as human beings that are deemed dangerous. that this first principle of designing things that are adaptable, flexible and resilience and affordable e. the affordability part of this starts with you. looking atinually this, but we're also not only people who have a voice in this conversation. there are many stakeholders with regards to the energy policy in this country outside the department of defense and we have to be mindful of staying in

our place with regards to that. we will be advocates of a fishing capabilities that bring us the agility we need in order to be sufficient for the future. energy plays right into that. to the max extent possible we want to be the smartest about energy. asia, the so-o called strategic guidance that came out not that long ago if tends to be more focused on the geography. the requirements you see now tend to be more shorter in terms of distance. how do you balance the needs between both of those requirements as it goes forward? >> a great question. geography does matter and always has. it is like this of conversation to many of things -- the sub

conversations to many of the things we do. there are requirements. to move things there, with impunity and to act if needed with the power to ensure and command and control all of that. all of those things are required in asia where the tyranny of distance require certain attributes in order to achieve that in a timely manner and in other places where you meet different baskets that may not required distance, speed specifically with asia pacific. alance so that you have

spectrum of capability that can apply to either one. the trick is to try to make those problems that overlap where you have capability that can do more than one thing. can apply for capacity and capability to multiple problem sets. the trick of the air force is to make sure geography and journey of the distance is not something that prevents us from bright -- providing options. things to decide those and an affordable way. this goes back to strategy. what does the air force look like and how do we build into that in light of technology changes? >> would you and told me to expand on that question a little bit. with respect to whether it is asia pacific or persian gulf or the regions where we will have potential deployments, when we took a hard look at this last year, particularly with respect to this, we looked at a lot of

options. way tocribe it as a trade off capability against demands. there is some domains that did not lend itself to as clean of a trade-off. its base, cyber threats, offense, defense, and monitoring. to a lesser extent, missile defense. how be fooled those into the same kind of allocation dynamic? >> that is a great question. i would propose sometimes we get anchored into thinking those are places where you cannot have a symbiotic relationship, but that is generally just a limit of your imagination. there are ways of providing effects. let me give an example. of controlling a certain place with a certain thing, but sometimes you can control that space with

different things, different approaches. you look at nature, for example. nature defend its territory and controls space in many different ways. the same is true in our business. we have a certain theology that controls air space. isspace superiority mechanized in a certain way. having the creativity of thinking outside the box and exploring ways to do that and and more cost effective ways, you start discovering these areas are not as definitive as you might think, that this is a continuum of a battle phase out there. under sea, sea, land, air, cyber -- it is continual. that is what the joint fight is so keep with the interdependence and interoperable liddy.

interoperable liddy is so important. we're all focusing efforts. so that this nation has options to control things in unique in clever ways we made half -- may not come designed in the past. it reminds us many of the structures we currently rest upon in order to provide national security work conceived and the theologies were born out of world war ii and a snapshot of where we were with technology and regards to understanding of the world and physics and strategic environment. all of those things have changed. yet, i would propose we still have work to do and reflecting on what those mean and what territory we can go down now in order to build things in that continuum of thatfor less money. question takes you down that journey. what you find is they are not

clear-cut lines where you have to build a space craft in order to do this in space. you do not necessarily have to build an aircraft to do this in error. there are other ways. we have to be creative and innovative and thinking about those things to go back to the core missions. better change over time or we will be stuck in the about ang dogmatic technology that becomes irrelevant. if we do not adapt, we will not achieve what we're supposed to come to be prepared for the unexpected and never fail. >> going back for some more. , we know it is early enough qdr process. there has been nothing in writing. can you give us specifics on how

your work kick in terms of the element was changed in terms of timing, strategy or management approach as result of the skimmer? was anynot think there change. it was nothing more than a journey to explore where we're at and take a look at sensitivity analysis. if you got a little smaller, how much money would you save and what would that mean for your ability to achieve what you have been asked to do? that is good in sight. take a fresh look across every nook and cranny across the department of defense to see how the air force plays in the joint fight and where the opportunities are. the was really all that journey provided. that did not fundamentally a approach orange the the way we are mechanized, but it did give us a deeper insight into how we play and where the

money exists and where the point of opportunity are between the services to do this better. before answering this immediate prior question, you talked about core questions and what the military needs to undertake. over the past several years there have been discussions on the hill with the department as a whole for the importance of building partner capacity. part of that we explored last year. if you could talk a little bit the authorities that have been helpful. the past few have always had a section on building partnership capacity. some have struggled with considering that a core mission. andd you talk about this the role of foreign military sales and other elements of

engagement? >> thank you. i think the alliance is we have are an important conversation in the qdr. and i hope that as part of this as has been a part of others. your capabilities harmonize together for the national common will, what ever it is we're trying to do and in a nation that chooses to build capacity can contribute the past -- capacity or capability in a meaningful way. so this journey we take with our partners to build their own capacity and capability is key and will never change. what i hope this will do is

explore other ways of bolstering that so that when we do have an event in the world or not -- multiple nation see a problem and want to bring diplomacy, bear tod of forced to provide stability and predictability that we can do so in a way that they bring capacity we do not have to bring and we come together at the point of impact, the point of interest in a way that makes us all stronger and better. we always have room to grow on that. it is a perfect opportunity to refresh that for where we are technically, where we are with our approach. how are we approaching this, and how are we bolstering the relationships? i want to leave that conversation with one other element, and that is trust and that you build that over time.

it is not just the stuff we sell and the stuff they build, it is the relationship we build, both operationally where we exercise together, but also with leadership so there is trust. you can have all the perfectly harmonized capability at the right moment in time, but if you do not trust each other it is not much use. this is a key component of the alliance conversation we need to have. >> how about one more, and that i have a final question. some of your friends are following up in your request for contentious questions. i think they had a very sensible

question that followed. is there a lesson for the future for qdr? for the huge problems that get started in the budget in have to deal with them as the budget begins to decline, as they always inevitably do. is there a lesson for the future of the acquisition program? >> absolutely. there are lessons all across with regard to acquisition of all the programs. that is for all the services, not just the air force. those lessons excess for congress, interagency partners. this is about the nation taking a look at how we structure the symbiotic relationship between industry and putting america to work within the nation. to the department that uses the industrial nation.

to the congress that thatpriates sufficient for job at hand. so there are lessons. of a lessons are part journey where we cannot lose track of what we're trying to achieve. what we're trying to achieve its options that as technologies incorporate that make the most benign areas into contested areas in the future as we go along, that america can project power anywhere, contested, highly-contested, uncontested -- that we can contest power anywhere. that journey contends a lot of them to do just that. yes, there are lessons and we need to learn from them, but we have to be careful not to boomerang in a way that steals from us the capacity and capability in order to project power as a constant along the journey of discovery and

lessons. i embraced those lessons and look at it sober i did, we all do. we have to be able to project power in contested environments. fighter is that machine. >> let me wrap up with one final question. you mentioned earlier the total force. you mentioned the reserve components of the air force reserve and air national guard. expand that a little bit and you .et the air force civilian expand it further and you have the contractor support, which has become more essential for not only all operations but maintenance and support in day- to-day life. you have an industrial base as well. the industrialon base. we are relying on military

civilians and contractors. we allow for modernization and our engagement with the innovation and production capacity with industry at home and around the world. how do you take into account those elements, the contractor work force and industrial base as you wrestle with these questions? >> you have to keep your eye on these things. that is the lifeblood of the journey of defending the nation. the industrial base is the saving grace. it comes to the aid of the country when there are problems. protecting the industrial base but protecting it smartly and always looking back at the relationships of civilian total force, contractor, industrial base and trying to design it so you are getting the best bang for your buck. at this andcan look come away saying that is money

well spent. that has been in this business for any amount of time understand if you take your eye off of industrial base, you will rue the day you did that. we must keep that firmly centered as we go forward, because when we get into the future,ed event in the often times it is the industrial base that saves our bacon. that is one reason why you want to make sure the research and development that is part of that space is vibrant, especially in times of austerity. it will be the industrial base.

we will do all we can to help you deal with that. i would like to extend a thanks to the viewers on the web and the network and those that are with us an audience and for your questions. i would like to thank rolls- royce for your underwriting support in this series, but most of all, i would like to ask you to join me in thanking the general for his participation. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] 3] nagging question i did not get to? thank you all for being here. i do appreciate the partnership. my door is always open, so take advantage of that.

>> as the discussion comes to a close, do not forget if you missed any of the discussion, we have it available on the c-span video library. in a related story, the associated press is reporting the pentagon is moving to ease the pain of the mandatory unpaid furloughs that civilian employes have had to bear for a month because of budgetary pressures, cutting the days of from 11 to six. officials say they found sufficient savings in the final months of the current fiscal year to lessen the burden of those that have had to take a week off without pay since early july.

officials said they would need to buy 9 million in savings in order to eliminate five of the ninth furlough days. chuck tickle approve this after meeting with top leaders. earlier today a senior fellow talk about the effects of budget cuts on the military during remarks earlier today. at the 2014ok budget, cuts that would be required by sequestration are so harsh for that year. there is no way to phase them in realistically. it is even a worse debacle of the notion of sequestration. the pain that occurred in that year dwarfs even what we're going to this year and compounds what we're going through this summer when almost half of the air force is not flying, when equipment queues are piling up and not fixing the stuff we need to keep safe for forces. i think congress might ultimately say $52 billion in

2014 defense cuts needs to be softened a little bit and maybe they at the cuts to the back end or something. and other words, nothing that changes the logic of sequestration but changes the logic in 2014. that is possible because the sequestration is so horrible for the armed forces. to go just a portion of that event. coming up later this afternoon, we will go live up to phoenix for the next stop on president obama as middle-class speech tour. he is expected to lay out ideas for helping homeowners and potential home buyers. he began a series of speeches on how to help the middle class and boost the economy. we will have his remarks right here on c-span. and coming up at 5:00, a discussion on national security and civil liberties from aspen security form. speakers include barton gilman who broke and as a prison program story. dennis blair, for more rigid

former national intelligence director and anthony romero. here is a preview. whether it is, legitimate or legal, it is illegitimate and illegal in our minds. section 215 and 702. let's break it down. the 215 standard is really important to read the word of the law. its statement of fact showing there are reasonable grounds to believe any tangible things that they can see our relevant. it defies the knowledge or the understanding of the word relevant when you are collecting every single phone call.

they say metadata is not content, but it can give a lot of content. how long i stay on the phone call. how often i call my mother as she struggles with breast cancer. how often i call my office. who i call in the government. whose private cellphone i happen to have to i do not call at office because they did not want a lot of my phone call from me, but i have a private cell phone, because we want to keep that somewhat between us. that data, would compiled and complete. this can give you a very full picture of what my day is like. i think the fourth amendment does cover the protection of my

mid -- my mother data. is coming upsion tonight. c-span will hold -- host an examination of the nsa surveillance program. we will look at the white house recent decision to close some of the middle eastern and african embassies based it on interception intelligence and the impact of the high-level information leaks. joining us will be the freelance journalist and politico defense reporter. we will also take your phone calls, get your reaction on twitter and facebook. the town hall discussion gets under way live at 10:00 eastern. the encore presentation of first ladies. to go the earliest letter we have dates to october 1762, and we call it the miss adorable letter because that is how he opens the letter.

john writing to abigail. he says ms. adorable, by the same token that the bearer of hero set up with you last night, as here -- i hereby order you to give him as many cases and many hours of your company after 9:00 as he shapley's to demand and charge them to my account. i presume i have good right to draw upon you for the kisses as i have given to that 3 million at least. and a consequence, the accounts between us is an immensely in favor of your spirited takeover first lady's continues tonight at 9:00 eastern on c-span. >> washington journal this morning visited the port of virginia. and next, the virginia port authority and the chair of the port authority board.

host: we are live from the port of virginia in norfolk, virginia. the000 jobs in this area, annual economic impact is a $41 billion. 30 ships -- each container, each ship, excuse me, has 10,000 containers on it. conversation. at the virginia port authority the interim executive director and chairman of the board of commissioners, let me begin with you and the history of the port of virginia. when did it start? how long has it been around? guest: it has been a success story ever since it started. in 1982 they consolidated all the terminals in virginia under the virginia port authority. there is someone who serves as chair, we kind of governor the overall economic impact and affairs of the port.

our executive director has a staff of about 100. the international terminal has about 300 people, 1200 more laborers. we operate the port of virginia. host: rodney oliver, what is your job as executive director? what do you do on a daily basis? guest: to make sure that the employees have the resources they need to their jobs well and make sure that we get noticed. host: tell me, what does the port of virginia consist of, infrastructure-wise?

what is here? guest: the terminals where we are setting up today, we have the marine terminal, the portsmouth terminal in of the news marine terminal and the inner port, which is an intermodal facility. we also have the port of richmond. host: what is happening here as we speak? it it's very busy around here early. as you said, it is a big footprint on the water, what is happening?

end,: we are on the north there is a ship behind us right now, but as i came in today it was a short wait. they were continuously coming in by rail for export. they began to unload as we spoke. it was their position to load them onto ships coming later today. the truckers are also coming in to pick up containers and taken to their final destinations. host: you are expecting a ship midday, today.

what is the timing like? is it pretty precise? is it a timeline that you have? what is the process like? guest: there are times when the schedules have to be adjusted. we generally know when the ships are going to be here and we start working with them way out in the chesapeake bay. generally they are docked for about 12 hours. loading and unloading export containers, we are fortunate in that we handle roughly 50% of our cargo. host: a ship is coming in along the way.

what is the process? how do they get to your doctor? -- to your doctor? who are the pilots? association pilot is a separate group that navigates the ship. host: are they state run? guest: they are a separate entity. host: ok, ok. so, they get them into the birth year off the dock. what happens next? guest: they tie the container ship up to make sure it is secure and continue to work on the ship. they will begin taking containers off, putting containers on. generally what happens with a container coming off the ship,

it will be dropped to the ground, picked up by a scuttle carrier, a piece of equipment that moves equipment around the terminal. discharged. host: how long are these containers sitting here on the ground? guest: we generally tried to get them out within 24 to 48 hours. the boxes will be picked out by truck, they could be on the terminal for up to seven days, but generally two to five days. host: we are speaking with rodney oliver, live from norfolk, virginia. here to take your questions

about how all of this works, if you are interested in the port across the country, this is the third largest on the east coast. there are about 1 dozen on the east coast. the court of virginia is ranked five or six, depending on the amount of cargo coming in. start dialing in now, we would get your questions or comments in a few minutes. i was thinking about what this all means for this area. the governor asked you to sit on this board and wanted to to get a local businessman is perspective. why? what does this mean to the community and the state of virginia? guest: virginia is blessed with a lot possibilities. obviously we have a huge military base here. you started off by saying that

one outs an impact of $43 of the 11 jobs in this state is virginia.e port of if you look at the volume, we do two military containers per year. every six on the train represent one virginia job. there is an impact added to our state's economy. the port of virginia is huge. at the board of commissioners, our job is to return the value to the shareholders, the citizens of virginia. host: how do they benefit? guest: by jobs. the governor is very focused on that economic development. host: these jobs supported indirectly or directly, the

people at work here, who are they? on average, what kind of wage do they make? guest: they were for the international longshoremen's association. some are higher, some are lower. of course, you have the staff at the operating company performing maintenance to supervise the employees in the servicing the needs. at the virginia port authority, we have security staff that makes sure the terminals are secure, as well as a marketing and development staff and administration.

host: how does this port compete, jeff wassmer? if it does. explain that against the others across the country. guest: it is an interesting dynamic. one of the interesting drivers for where these go, the people that own the cargo, there are a lot of costs involved along the way. from a manufacturer to where it is being exported from. obviously we compete by cost, which is extremely important, but it is also about efficiency. how can we get the cargo on its

way to its final destination? how much does it cost to move a container across the ocean? there is a huge dynamic at play right now, the dynamic is the size of the ship. a ship that carries 5000 can go to the panama canal. ships are on the ocean right now that require about a depth feet, this is the only port on the east coast that can take a ship that requires a 50 foot raft with no overhead obstructions. we can take the big ships down. 49 and a half feet, it is cheaper to put cargo on a large ship. those large ships need somewhere to go. host: the recent -- recently the president has been going around the country and talking about the infrastructure of the nation's ports, calling for investments. port officials are saying that they need to be at at least 47 feet of dredging in order to

take a super tanker coming from the new panama canal. explain that. guest: it is all about the depth of the ocean. people assume that once you get to the ocean it is just deep and it is not at every port. we have natural links that come in to each one. not only that, right now we have the capacity to do about 2.5 million tdu's per year. we have the potential capacity to grow to 6 million. if you look at the federal dollars from 2014 across the eastern seaboard ports, virginia ranks no. 8 in what we are getting.

we have the current death, the ability to get to 55 feet, potential capacity that we call a great investment for our national dollars. host: what are you asking for from the federal government? guest: we are the premier gateway for the east coast. a lot of our product go on the train to the midwest. we want our partners to feel like it is the airport as well. it helps us to get our products into the midwest. the delegations in the midwest states have worked together and you will be meeting the congressman shortly to go after those federal dollars to make virginia the premier place to bring in cargo. host: our viewers know that washington, talking about sequestration, spending cuts, annual spending, it is not getting done.

how do you get the money? host: rodney, what do you think? guest: scarcity in ports up and down the east coast are seeing that. we had the foresight and i do not include myself, but they the foresight to see the need to dredge to 50 feet into authorize 55 feet. we are well ahead of the curve and a good thing is that it is cheaper to drill here in virginia. right behind you there and who was -- it is a great asset for

the port. guest: we have a soft bottom out here. we are just picking up sand and relocating it. other ports are bad rock, they have to dynamite, explode, move it off. the advantages of dredging in the port of virginia are huge. host: that means that the epa is involved, one federal agency that has a role at the nation's ports, along with fema and the coast guard. we want to turn to you and get your questions and comments about the nation's ports as we are live here from the port of virginia. democratic caller, hello, bob. caller, mr. washington answered questions about the panama canal -- mr. wassmer some questions about the panama canal

expansion. i wondered how much is this a republican and democratic issue as opposed to an economic issue? guest: that is a great point. we are getting ready for a new governor in virginia. which way that goes is not important. both candidates understand the vibrancy of the port and understand that it is not a political football. we would love to have leadership in the state currently and in the future the understand this. the panama canal thing, we hear a lot of talk about expansion through the panama canal. the new panama canal, the ships can hold much larger, 12,500 larger ships can come through there.

host: how much are we talking about in goods? caller: 8000 -- guest: 8000 cv's. holds a lot of things. if he were to ship from hong kong to the port of virginia to the panama canal, that is about 11,020 miles. through the suez canal, 11,700 miles. the real dynamic of the panama canal is how much it costs for the ship to go through the panama canal. it might be more economically feasible to get through the suez canal. the panama canal dynamic will play itself out in the next few years. host of the president's call for more infrastructure because of this issue, he is saying that for the united states ports to stay competitive, that this is

what needs to happen. if they did not come to the united states, where would they go, these big supertankers? guest: there are reports that could be built in the caribbean that take larger ships and we would get smaller ships here. we want to take advantage of a ship that comes in for first port of call or last port of call, unloading goods, exporting goods. we won we want -- we want those ships coming here first. host: good morning. caller: we talked about how big virginia was, how deep the waters are, of and what comes through the port, and how big the containers are, is there anything else you would like to tell al qaeda about our

situation here? host: are you still there? caller: yes. host: repeat your question, i missed the last part. anything they want to tell you about what? caller: anything else you would like to tell al qaeda about our situation in the united states. host: i see what you're saying. i see your point. the vulnerability of letting this information out and how it all works, the security threat, a question we were asking our viewers this morning about the latest terrorist threat, what do you think? guest: obviously since 9/11 there has been heavier security. as you know, we came on to the facility with an escort and we have security badges here that are required. you need to get a federal

transportation worker i.d. to make sure your eligible to be on the terminal. we also had custom border protection on sites where there are scanning containers and certain containers that insure that the cargo that is in there is what it is presented to be. the containers that out of this facility for any reason, we scan them. theombs, nuclear threats in terminal. we are also very cognizant of cyber security as well. we did a study a few years ago on cyber security and its possible effect on the port. a few years ago we commissioned a study to assess cyber security threat with assessments done. we hired a firm to come in --

host: for that type of situation, the u.s. for federal money to upgrade your computer system to avoid some sort of hacker, al qaeda or otherwise? or is this something the state has to pay for out of pocket? guest: since 9/11 there have been federal dollars allocated for physical security, but more and more those of being used for cyber security. guest: and that they are often matched by state dollars as well. host: security, let's talk about it more. the ships in another country, is it getting looked at by u.s.

officials? guest: it is. officials in those ports around the world are inspecting -- not every container, but they're also looking at them when they arrive and in new york. host: is that part of a treaty that we have? guest: it is. i do not know what the acronym stands for, but it is a security situation that this port and many others have around the world. host: if a country is not participating, do you still take the containers from the country? guest: we do, but they are monitored differently, more security. host: here at the port of of virginia, what countries are we talking about?

what countries are bringing in containers? our biggest partners are china, germany, brazil, india. put on the import and export cargo throughout the world. host: what do we bring in, what is going out? guest: generally we are exporting finished goods, importing raw materials. host: give us an example. guest: paper products, beverages, auto parts. finished goods come here. host: i want to go back to security, the caller had concerns about what we are talking about today and one aspect that we did not talk about is that once a container is put on a truck, you said that every truck is scanned.

what happens when it leaves the port of virginia and is taken across the country? guest: it has to go through a radiation detection device. the radiation stand attacks minor amounts of radiation. >> greenberg, va., bruce, hello. caller: good morning. host: you are on the air. thank you for waiting, go ahead. caller tell could you explain further the purpose of the inland port and the area in the united states that service and how cargo is dispersed through the ports?

guest: i would love to. the virginia inland port, there is no water. is moved by truck to a final destination. with truckers making multiple transits through the day. if they had to drive down here, it is a vibrant part of the port. we started it 24 years ago.

it is just now catching on, the use of inland ports. host: georgia, independent caller. caller: i was calling to find out about truckers, the process of getting a contract with the ports to move containers. guest: we are always looking for truck drivers. host: are those of truckdrivers each under security concern? guest: they are. host: ok. we will go to lawrence in miami, florida.

caller, how much is the influence of american and ships with made in america compared to the foreign manned ships with products made in foreign lands? if there is not a balance there, at least, why would we want to have more foreign ships? how many homes more are we going to lose? host: ok. guest: i can tell you that in the port of virginia our ratio of import to export is about 5050, which is a great place to be. from this country, like i said before, we are sending over paper, pulp, agriculture and

really supporting those things that are made elsewhere. there is made in the united states, there is a huge push to reach shore some of the offshore manufacturing. the port of virginia wants to be a conduit for trade. host: you said that it was pretty much 50/50? why does that matter? guest: manufacturers, producers, farmers in the united states, they want places to send their goods. we have to pay attention to exports and imports. host: how much does it cost for a container to sit empty? guest: i have never seen an account in that manner, but i am sure the ship lines do not like it.

host: i think you gave me a figure earlier that each container represents about $20,000 in economic impact on the community, so given that, how quickly do these shippers, these companies want to to get on and off? what do they expect? our goal, again, is not to have cargo sitting in the port. the goal is to get it on the ship, headed out to the end user. in america today we have this just in time logistics' where people want their product, other parts for autos, whatever it is, to show up just in time. that makes timing critical. our goal is to make cargo out if you're within 24 or 48 hours. host: i heard that this is a certain supply of goods. if several ports were to shut

down, what would happen in this country? >> not necessarily immediately fell within a week or two weeks there would be. there are a distribution centers that support the retail establishments. guest: some of the concepts have spurred a lot of economic growth for the community as well. apart from this they cannot show up to the assembly line eight

hours before it is ready to go on the vehicle. what that has caused as the tire manufacturer to create a distribution center. this is not just the plan that puts it together. it is the whole distribution system. they stockpile those likely to be able to respond. host: it can't show up eight hours before? guest: they would rather a distributor stock it. host: let me go to cynthia who is a republican. caller: good morning. i just want to say to mr. oliver, and appreciate your comments on security. i wonder if it is responsible of them to be asking certain questions.

i do have every confidence in realizing my little brother graduated from newport. i want to say go navy. enter mr. wasner, i would like to be an advocate for you to receive more national funding for anything that you would need there at the port. thank you for your service and keeping us safe. host: all right. let's hear from john. caller: i travel to overseas. i would like to ask it anyway them had been to the dubai port? guest: i have not personally. i have been to hong kong and singapore. guest: i have not been to dubai. it is a major trade center.

it is a major hub. a lot of cargo divides. it exported from divide to the final destination. do you have a follow-up? caller: i think they have to realize that we do not want to just compete within the united states. the world is changing. it is the fastest port in the world appeared if we want to invest, we have to get rid of people like eric cantor who does not want to invest in the state or country. that is the whole thing about this. i've traveled to dubai many times. i've never seen anything like this, any port like this in the entire world. for the safety and security.

they generate more business than any other country. host: can i ask you as you have been watching this program this morning live here from virginia, you are seeing images of activity around here. how would you say it is different from the ports in dubai? caller: quite frankly you have to see the way it works. i cannot even explain in the picture. they are expending more than you expect. they cannot even handle this. we are a great country. we have money. we do not invest our country or state. we are behind. this is nothing. caller: ok. guest: we understand the international impact. trade internationally is projected to be up 9.5%.

there are some huge ports obviously outside the united states. we understand that. they spent quite a bit of time going to the other ports, establishing relationships, trade partners. there are consumers beyond that. we are a maritime nation. there is no doubt. we understand the international impact of trade. we need to invest more in infrastructure. we need to be able to handle the influx of trade that will begin. i think they will accept the fact that we have a great staff around the world. we have representatives who are working on this exact issue. >> what did your folks tell you about the port of dubai? what port like yours need in order to keep up what is happening in dubai and other

areas? guest: they've got a very innovative concepts. right behind the port they have a huge foreign trade zone where a majority of the distributors have located. we have a foreign trade going. we also utilize companies in virginia beach, kanin. they use the status to their advantage. host: we will go to colleen, democrats. [no audio] colleen, are you with us? colleen and wisconsin, democratic caller? let me go to john. here we go. are you with us? caller: yes. i have a question. how does [inaudible]

[indiscernible] compre to the virginia port, etc? host: it is a little difficult to hear. we have a rainstorm coming on. she was talking about lake superior area. guest: the port of virginia is part of one that makes it work. we have a role to play. mostly with international partners handling the transoceanic ship. there are riverport. this is how commerce moves. we understand that we have a lot of partners there joining us.

host: brookhaven, mississippi. republican. caller: i don't like what y'all are doing on this. you are showing pictures and everything and how to do all kinds of things. i do not think you all should be doing this. i wish y'all would please stop showing this on tv. terrorists watch tv. i am highly upset. host: go ahead. guest: maybe i can give you come for. this is at a 30,000 foot level. there are much more details that go into it than what i can even describe your today. rest assured that there is a great deal of security in and around the ports and ports around the country. the federal government is doing

a good job. host: all the information is public information? guest: it is. host: at what point does the government come into play? what it is here, who takes over security? host: security is a joint venturer. when it is under water it is mainly coast guard. when it reaches the earth it is port authority and customs. reporting scanning and certain containers that open it, it is federally managed. the state portion as to make sure they are secure. host: republican caller.

hi, dave. caller: hi. host: you are on the air. good morning. caller: can you hear me? host: yes. you're on the air. caller: mr. oliver, i just want you to know that i want to help you any way personally. if you get stuck in a situation that you cannot get out of, you have to work with those people that are familiar with the situations. you follow what i'm saying? host: what do you? caller: i work for data security. these involve our economy. it involves the united states. these things when it comes down

to the climatic situations that you cannot take lightly. these are the most important that our country has to face daily. host: the issue of a cyber threat. guest: any type actually. >> let me go back to the cause for companies that are shipping in their goods. how many different times is the ship charge before they get here? once they get here, how does the pricing or? guest: if you want to put it into perspective of one of the big box retailers, they are shipping project from china to chicago. the portion that is just here at the port of virginia is less than 10% of the cost of the

move. there is a very big cost to move it from china to virginia. there is also cause to move it to chicago. that normally be by rail. the port of virginia cost is relatively small the grand scheme of things. our focus there is service. host: once he gets here, how does the pricing work? does each container have a cost? guest: it depends on the number and types of moves that go on at the terminal. host: does it depend on the weight of the terminal as well? guest: it cost the same to move an empty box as a box that is full. guest: what is the number of times we have to touch it. we judge it to take it off the ship.

we stacked it on a truck. it is driven through the scanners. if it goes on the rail it is stacked and another takes it through security. there are multiple lifts involved. host: it is more expensive to put goods on rails than trucks? guest: 32% of our cargo goes by rail in the port of virginia. that is increasing. it is the consumption demand in the midwest that drives that. rail is a little more expensive. all cargo is good host: host: article. host: the rest is trucks? guest: primarily tracks. we service richmond. primarily it is truck traffic. host: behind me are the cranes that lift the containers off and on. how much is one of these cost? guest: they are roughly $10

million a piece. the cranes that you see in the background here are the largest container cranes in the world. they have a reach that extends past 24 containers out. the really large ships can call here today and utilize the cranes. guest: that is an important point. the ships that are coming through the panama canal are about 10 containers wide. this is going to get bigger as well. it is not only the depth of the harbor or the ceiling, it is the structure like the cranes like is the equipment on and off. host: how many times have you

had to update the type of crane? guest: the cranes here, there's not one that is 15 years old. they last about 25 years. there has been a major shift so the size of the container cranes has to grow as well. warmly but the one behind us in 2002, -- when we got the one behind us in 2002, we knew the ships were going to get bigger and we had to get ready. host: democratic caller. caller: is this only a container port? guest: we are primarily a container port but we have some facilities that do roll on roll off vehicles. we also have some larger things that cannot fit into container. rodney can probably tell you the percentage. guest: the virginia port

authority does not control these two terminals. an excess of 40% of the coal that moves through the united states for expert comes are the port of virginia as well. it is just in periphery. host: 40% moved out of here. where is it going? guest: all of the world. everywhere. china is a big consumer. south america is a big consumer. europe is a big consumer. pretty much everywhere. host: going back to the cranes, how long does it take to get one ship off and onto the ground? guest: we can move 30-35 attenders and hour per crane. host: how does the crane nowhere where to go next? guest: it is rather complex. it is a process. the ship going works with the port of virginia on the plan.

it ensures that all of the containers as possible are all located in one spot. guest: once they are in our yard we have the responsibility to make sure they get to the right stack or truck. there are also some devices that allow us to track them electronically. caller: the easiest way to explain the workings of a port is the of it as a rubik's cube. when you move one part another part has to move. people understand that. they will get it.

host: roger, why do you say it like that? why is that important? caller: that is a good visual aid. i work for the u.s. department of agriculture. i dealt with quality issues on the great lakes. i dealt with the solution that is coming into lake michigan. people that are worried about security, believe me we have had aerial photography in the united states as the civil war. you do not have to worry about the security of these things are it is somebody wants to have a picture of it all they would have to do is snap one from a satellite. the people are doing a great job. they need to continue to fund it and work on it. thank you.

host: what about his visual aid about the rubik's cube? guest: it certainly is. the port industry is a little ibit new to me. it is an amazing sight to come and see the ships unload him of the cargo move through security, how to get on the right track. across the way we have an apm terminal. it is the most modernized terminal in the united states. a lot of this is done by computer. all cranes controlled by computers. it is an amazing operation. that is a good way to describe it. host: we are sitting in front of the elizabeth river.

give us a lay of the land. where are we? guest: virginia is in the mid- atlantic, very centrally located on the east coast. we are 18 miles from the open ocean. most transit this the chesapeake bay. it may be the second largest bay in the united states. the elizabeth river is where the majority of our traffic flows. it is where three of our four terminals are located. one is very close to here. the port of richmond is also here. host: a lot of history with the james and elizabeth river. how has it changed over the

years? guest: this used to be an army base. in 1909 this was a federal army base. we have undergone substantial renovation since that time. over the last 15 years this has been completely renovated. it has gone through dramatic changes. guest: a great point as well be touched on, the port of virginia, we do a lot of container traffic. we do the roll on/roll off. the ships require a lot of draft. we have partnerships with the navy. and they are very interested the port of virginia. we have the largest shipbuilder in the united states. it is a very vibrant port for commerce, defense, and manufacturing. host: let's go to frank in florida, republican caller. caller: hello? host: go ahead.

caller: i have one question. what is the cost of import tax that china charges us but we import our project to china? what is our cost when chinese product imports to this country. this relates to raw material. what is the differential in the cost in the tax? should it be the same? i appreciate your time. guest: that is all handled at hte fe -- at the federal level. we are all here about the free flow trade. maybe that question would be

better answered by our federal officials. host: coming up in a few minutes we will continue our coverage from the port of virginia. we will speak to two members of congress. a democrat and republican. they will be joining us to take your phone calls and talk a little bit about the economic impact on their district in the state of virginia. what they are doing on a federal level to further the economic growth of this port and what their opinions are on infrastructure. let me go to mitchell in baltimore. independent caller. caller: good morning. can you hear me? host: we can. caller: what is the average income for an employee there? do you see an influx of

potential residents coming there because of your great facility there? do you see that happening? do you have numbers on that? guest: it obviously varies by job function and seniority and by experience. some pay $30 an hour. that's probably in the right range. we provide opportunities, over the last 18 months is the fastest-growing port on the east coast. we see opportunities for growth in the future. host: do you want to weigh in on that? guest: absolutely. our plan is growth. the more we move, the more jobs, the more impact we have on virginia. host: what does it mean for the coffers of the state of virginia, revenue coming in?

guest: $1.3 billion in state and local tax revenue generated through activities both direct and indirect. host: have you had discussions with the board about what that means for budget holes and balancing the budget here in the state of virginia? guest: i think the main driver is not so much returning money to the profits. we have infrastructure needs. the economic impact is the jobs. it is not to fill holes. we have access to rail, transportation, truck traffic, roads to get traffic out of here. we invest along with the department of transportation to make those routes viable and easy to access.

within mandating that there is no overhead structures, we have a lots of funnel. there is a lot of congestion through the tunnels. we are continually working at the state level with the department of transportation. and the port of virginia. it was a huge user to ensure we have the transportation system be it rail or truck or consumer traffic, private auto, make sure the port of virginia has this. host: is the benefit then to private companies in the state of virginia? if so, can you describe it a little bit? guest: the mission is to stimulate commerce through the port and serve as the eastern seaboard gateway. it is economic development. that is what we are all about.

host: christine, democratic caller. caller: hello. [indiscernible] host: christine, i had a little trouble hearing you. say it again. caller: the impact of [inaudible] host: we able to pick that up? guest: the top five ports? caller: [indiscernible] host: we will take that. i could not understand what she was saying there. guest: new york is the largest port on the east coast.

savannah is the second largest port on the east coast. virginia is third. trust in his fourth. on the west coast -- charleston is fourth. on the west coast it is la beach. there are two. they are by far the largest in the u.s. guest: same thing. we are number three on the east coast but we are growing. we definitely want to be the premier gateway to the united states. host: as he wrap up our conversation we will continue talking about the ports in this country. we will have two members of congress coming up. recap for us what the port of virginia is looking for from the federal government, what are your top priorities?

guest: as we mentioned before, we have a capacity greater than any other ports on the seaboard. we arty have 50 foot depths that the ships are demanding. we're close to 55 deep. we need more dollars to make the we arty have 50 foot depths that the ships are demanding. we're close to 55 deep. we need more dollars to make the federal investment the smart as it can be. we can dredge and make them deeper, but the best bet for the dollar is weak heart and are with the other ports. we do that every day. we think the federal influx of dollars was a lot further. guest: we have an opportunity here with the marine terminal concept. it is directly behind us.

it is to expand the disposal area which is a very efficient way for us to use of dredge. it would be 600 acres of prime real estate, the most prime real estate on the east coast. host: there are spending restraint and washington. that will be next. rb scott and scott ritual -- we will talk to them here. thank you both or having c-span here at the port of virginia and working with us to make it so our viewers can understand a little bit more about how port work in this country. i appreciate your time. guest: thanks for coming. host: we are back live from the port of virginia and norfolk, virginia where there are 45 ships a week at come here to the sports alone. and economic impact annually of

about 31 billion dollars to $43 billion. we have two congressmen here with us. thank you both for being here. we appreciate your time this morning. it is obvious that the port is a big economic impact that is important for the state of virginia. what does this mean or your constituents? guest: we are so proud of our port. it is a principal economic engine. it is a strategic ward of importance not only for our local economy in virginia but really the nation. over 350,000 jobs direct and indirect for the commonwealth of virginia. it so much the goods that come through here end up going throughout america.

we are proud of it. it is home to all of our east coast aircraft carriers. guest: with 380,000 dollars all over virginia, we have coal in the south, you have manufacturing. you have to keep it up. we are building the roads and bridges to access. you cannot have cargo coming in and thing getting stuck in traffic. we are working hard. it is a great investment and engine for the commonwealth. host: the president has been to a couple of ports recently in florida talking about the importance of infrastructure, calling on congress to support his overall infrastructure plan, part of that for the updating ports. as a republican, were they concerned about the amount of spinning that washington does and wanting to cut back?

what has been the impact of that on this port in virginia? guest: i start every day thinking about where is the common ground? i do believe that true investment in infrastructure is the right thing to do. oftentimes in business you make a capital investment that if you just look at the cost of that year year and say we cannot afford it at you advertise it and look at the useful area of what you are investing in, you

decide it is a good investment. i think our overall economic situation and what we are continuing to borrow is that this is still very large. we have got to get a hold of mandatory spending. it is related. this is putting pressure on our ability to invest in things like the port of virginia and other strategic facilities. looking for, and grounds. i'm convinced we can find it. host: what about the ban on air marks? republicans that we are going to -- earmarks.s. i believe these ports are dependent on specific grant that come to them through air marks. -- erarmarks. >> this is a really tough subject. the abuse was clear and irrefutable. parties change in different offices. i do think that we need to find a way to be able to make this. host: is what the president is -- too big?o bid?

guest: i am convinced they will support and infrastructure plan. i do call for us to be more flexible on that topic. i have said as much. i believe on the issue of revenue. they have to come up by reducing some of the loopholes and the tax giveaways. we have to grow our economy. there is no better way to leverage this asset. it has been critical to america since 1607. there's so much history here as well. host: weigh in on this debate in washington that is happening. guest: it is a question of priorities. guest: it is a question of priorities. experts have calculated that we have over $3 billion in infrastructure needs.

growth needs repair. over $3 trillion. it is just a matter of priority. we need to make those in vestments. if we make those investments we still have an exceedingly high unemployment rate. a lot of people have stopped looking for jobs. we need to get people back to work. host: where can democrats agree to cut spending in order to fund a something like the infrastructure needs the port of virginia? guest: in terms of nondefense discretionary spending, we are on track to having the lowest spending since the 1950s. we are arty cut much lower than what is necessary. if you're going to make the investments in the future you have to have the revenues. you have to have spending at least average over the last 50 years. if we assist on being in the

lowest point in spending you're not going to be able to have the infrastructure. host: i want to turn over to our viewers. republican. search on the budget committee. bobby scott representing the third district. your need to congress. how many years have you been serving? guest: less than two. host: a new member and a veteran. we will talk to greg first. republican collar. caller: good morning. since you looked into whether they brought down the twin towers, can you explain to any physic teachers on how a top

parking crush the lower part without decelerating? host: the question is about 9/11 and what was really behind it. guest: i think he's referring to the theory that that the government blew up the twin towers. i have for that theory before. i do not believe it. guest: i do not either. i wake every day, and i am sure bobby and the president does, we are thinking about job creation in getting this country on track. i want to open up a coastal virginia energy. i really believe it represents tremendous potential to get our economy growing. host: we can talk to that about a little bit. explain to our viewers the organized effort out there to call into the show in particular about what happened on september 11 2001. if our viewers are interested in why we get those phone calls.

that is an opinion out there? guest: i do not think it has any credibility whatsoever. host: let's go back to your point. guest: i just came from louisiana. i had a great trip there. there is such potential to open up and create jobs here. host: what is it? guest: it is taking those amazing resources of natural gas and oil and also the renewables there and putting americans to work and creating revenue that we need for better roads and better schools. i think in washington we too often polarize things. either you are for the environment or for jobs or something like this. i do not see it that way.

we can do what has and done in louisiana and other areas. diversify the economy. they have great paying jobs. i want the same thing here. host: what specifically? guest: i ran on the opening of coastal virginia so that we can get to the natural resources that are there in an environmentally safe way. the governor ran on it. the general assembly want it. the only thing holding us back is the administration. that is not a partisan comments. there is essentially it. they are not moving forward. we are working hard bipartisan. we want to move that forward and get virginians working again. it got to diversify our economy. this is a great way to do it. host: what would it mean for this for? guest: shift will be going in and out on servicing the facilities that are out there. they would be over the horizon. you would not see them.

such to him and his work has been done since the event down there in 2010. they may technological improvements. there's a lot of potential. guest: they have the same argument a couple of years ago. and oil spill caused a total disaster. we had a great investment on the --esapeake bay, torres and. tourism. a lot of industries. to jeopardize that over an initiative that frankly will not reduce gasoline prices by any measurable amount. guess on a global basis will not make enough difference to make any difference at the pump. into that our entire environment on that. that is something that requires a very meticulous review.

i'm glad the administration is looking at it. a lot of people were for a review. they report before the gulf coast. guest: wait for the jobs. a lot of people are cleaning up the mess. if those are the jobs you want guest: i knew we disagreed on this. as americans, when something catastrophic happens we do not stop flying. we figure it out. we are smart people. we think her way through these things. there are definitive steps that have taken technological advances.

they have pre-position the equipment that is needed. i do not concede to any of my friends that's they may care about the environment more than i do. it is not an either/or proposition. as a relates to the port port, this is a key opportunity. host: we're talking to two members of congress. we want to get your thoughts on the port in the country. the economic impact of it all. let's go to michael in washington, dc. go ahead. caller: this question is for both of you. what is your party's approach with regard to making the country more competitive in

every way? seems as if if all the politics of america is concerned with these little enclaves you belong to. you heard earlier today about the improvements. it is not only dubai. there are other ports around the world. it is important that the american politicians start to see the need for making this country more competitive. it is not just our military force. you must also be an economic force. it is important that we keep our eyes on the ball. it is important we do the involvement there at that facility and fund it so people in this country can have a better life. you know that people are suffering. it is not just because there are no jobs. it is because the politicians do not have an eye on making the country competitive.

host: let's get a response. caller: i want to hear how you're going to contribute to make this more successful. guest: that goes to the point we have been making investments in the port here. we have been doing it for a long time. the port is growing. it is the fastest-growing port on the east coast. it is great. we have to continue making those investments. when he had air marks we are getting funding to make that happen. we're getting money through the administration system and executive branch to make sure it can take place. as the gentleman has indicated, we need to make sure that we continue to get economic development and impact. 50,000 jobs, $41 billion of

economic impact. guest: this is the sheer value of making our country more competitive. as a businessman who is now entered public service. i believe the federal government has become too large and really acted so often at the break to innovation. i talked to so many hard-working entrepreneurs, once i can totally relate to it says i'm not going to make this investment. i'm not sure where the portable care act is. the area that is out there i really believe we can unlock our potential. the key is their energy. this is a life-changing opportunity for americans, the states that have those resources and have said they wanted to pursue it. north dakota, louisiana. they are doing really well.

unemployment is low. it is a comprehensive approach. i am not for no regulation but for less. to make it easier for someone to want to invest and create a job for america. we can do it. host: south dakota, republican collar. caller: do you know the reasoning kind why george bush wanted to -- behind why george bush wanted to sell our ports? host: i do not know you member this. i think he is referring to 2004, the dubai company wanted to buy a port in the united states. guest: i certainly remember that. guest: we believe in privatizing the ports here. i think in the full length of time i decided to keep the state owned. host: what does that mean? guest: the caller i believe was

referring to when there was discussion here locally about actually selling the port to a foreign company. that came to a full halt. i thought that was the right thing at the time. host: what does this mean to you that this is a state owned entity? guest: it is run and the public good. if it is privately own you have to maximize short-term profit. with government owned we can look at the long-term benefits to the commonwealth of virginia. that is why i am delighted that we do not sell it. we have to consider all of this. the fact that it is now still in control the commonwealth and use for the public good, that makes a good. host: is this port sustained by revenues?

guest: 100% sustained by the revenue. it is not receiving any operating revenue. we do carve out a little bit of revenues at the state level for capital investments here. we also get some funds from the federal government for environmental matters and security. this is a key strategic port. our east coast carriers are here. some of our navy personnel and soldiers are right here. some of the staff was apologizing for the weather. we love this. guest: this is lots of water. we do not let anything hold us back. this is classic navy weather. host: talk about where we are in relation to the naval base here. and what that means for both of you can see all

at 10:45.sit t this is president obama in phoenix talking about the housing market. >> hello, phoenix. hello, arizona. i love you. it is good to be here. thent to say thank you to -- for hosting us here today. we are so glad to be here. i want you to give it up for somebody who has been fighting for homeowners and working families every single day. ud, give him a big

round of up laws. [applause] -- a round of applause. [applause] we have your mayor here. [applause] doing an outstanding job. the mayors and state legislators and tribal leaders here today, thank you. jorge a big round of applause for his introduction. your superintendent. principal. [applause] i appreciate everybody for having me here today. the students see are pretty enthusiastic about being back in school.

i am not sure i would have been that enthusiastic. i know this is not your typical school second day of school. give a special shout out to the new seniors, class of 2014. [applause] you are aware you are not finished yet? [laughter] senior year, that is sometimes tempting. want you all to stay focused. over the last couple weeks -- >> happy birthday, mr. president! >> thank you very much. [applause] i had my birthday a few days ago. we've got some singers here. >> ♪ happy birthday to you presidenthday, mr.

happy birthday to you ♪ [applause] >> thank you. thank you. now 52. michelle says i do not look a day over 51. [laughter] so, for the last few weeks i have been visiting town halls across the country, talking about what we need to do to secure a better bargain for the middle class. sureional strategy to make that everybody who works art has a chance to succeed in the 21st- century economy. in arizona people understand the challenges that are out there especially because the past four and a half years together we fought our way back from a devastating recession for cost millions of jobs

americans. a lot of folks lost their homes. a lot of folks lost their savings. what the recession showed was the long illusion of middle- -- the longty erosion of but alas security. but we fought back. we took on a housing market that was in freefall. we invested in new technologies to reverse our addiction to foreign oil. we changed tax codes that have become tilted a little bit too much in favor of the wealthy at the expense of working families. [applause] we save the auto industry. we now have gm that lance to hire 1000 new workers right next door, and to make sure we are building the greatest products in the world right here in the united states of america. [applause] -- havenesses upgraded created 7.3 million new jobs in

the past few months. we now sell products made in america to the rest of the world. exports are way up. we produce more renewable energy than ever before. more natural gas than anybody else. health care costs growing at the slowest rate in 50 years and our deficits coming down at the fastest rate in 60 years. [applause] of ahanks to the efforts lot of people like you, we have cleared cleared away the rubble of the financial crisis. we are starting to lay the foundation for a more stable, more durable economic growth. but as any middle-class family will tell you, we are not yet where we need to be. because even before the crisis hit, we have lived through a decade where a few at the top were doing better and better, but most families were working harder and harder just to get by. and reversing this trend should

be, must be washington's highest priority. it is my highest right 40. right 40.y highest i want to make sure in america it does not matter where you come from, who you love, you should be able to make it when you try. [applause] now unfortunately for the last year or so, we have had an endless parade of the structures and political posturing, phony scandals that shift focus away from what we need to do to in short middle-class families and create opportunities to get into the middle class. and as washington has another could debate, the stakes not be higher. that is why i am traveling fornd laying out my ideas what it means to be middle- class. the good job with good wages.

a home to call your own. a good education. affordable health care that is there you when you get sick. a secure retirement, even if you are not rich. ladders ofes, the opportunities for people who earn their way into the middle class. to work their way out of poverty. those are the elements that i think all of us believe in. but right now, we are not delivering as much as we should on those promises. last tuesday i went to tennessee to talk about the first corner storm -- cornerstone which is how do we make sure we are creating good middle-class jobs here in the united states of america? today i have come to phoenix to talk about the second component. cornerstone that lies at the heart of the american dream. at the heart of middle-class life, and that is the chance to

own your own home. [applause] the chance to own your own home. we have a lot of young people here who are thinking about college. they are going to get a higher education. they are going to find a job. they are going to find somebody they love. and the reason they will is is the ultimate evidence that here in america, part work pays off and responsibilities are worth it. i think about my grandparents generation. when my grandfather served in world war ii. he served in patton's army. when he got back, the country gave them a chance to go to college on the g.i. bill. it also gave him a loan to buy a home from the fha. for him and generations hence, a home was more than a house. it was a source of pride and security. it was a place to raise kids, put down roots, a place where

you could build up savings for college or set up a business or retirement with security. buying a home requires responsibility on everybody's part. you have to save up to i home. and banks were supposed to give you a fair deal with terms you could understand and buyers were supposed to live within their means to make sure they could make their payments. so in that earlier generation, houses were not for flipping around. it was not for speculation. it was for living and building a life. unfortunately over time, responsibility too often gave way to recklessness. you had reckless lenders who sold loans to people they knew could not afford them. we also hadce it, reckless buyers who knew they could not afford it and still took out loans. and this created a housing bubble.

placesecially in some like arizona, it was devastating when that bubble finally burst. triggered a -- recession. millions of americans who had done everything right were hurt that lead by the actions of other people. housing prices limited. by the time i took office, home values have fallen almost 20% from the year before. housing prices had fallen nearly 80%. housing prices have fallen nearly 80%. a record number people were were behind on mortgage payments. phoenix, they saw the devastation. this was part of ground zero for the housing bubble or sting. -- bursting. less than a month after i took office, i came here to arizona and i laid out the plan to stabilize the housing market and help responsible owners get back

on their feet. and the truth is it has been a long, slow process. the housing market is so big, it was going to take some time to heal when it got hurt that badly. it has taken longer than any of us would like. but during that time, we helped millions of americans save an average of $3000 a year by refinancing at lower rates. we helped millions of responsible homeowners stay in their homes, which was good for their neighbors, because you do not want a bunch of foreclosure signs in your neighborhood. where congress would not act, we acted, so over the past two years, we have the department of justice stand up for people who people who had been conned by predatory lending and we won a settlement they gave more money to victims of discrimination in one year than in the previous 23 years combined. we worked with states to force big banks -- [applause]

we worked with states to force big banks to repay more than the largest lending settlement in history. [applause] that folks the time who had lost their jobs could delay the payment on their mortgages while they kept looking for work. we cracked down on the bad practices that led to the crisis in the first place. i mean, you have some loans back there in the bubble that are called liars loans. something called a liars loan is probably a bad idea. [laughter] because of all these actions we have been taking, our housing market is beginning to heal. home prices are rising at the fastest ace in seven years. sales are up nearly 50%. construction is up nearly 75%. new foreclosures are down by nearly two thirds.

millions of families have been able to come up for air. they are no longer behind on their mortgages. [applause] and just like the crisis hit phoenix very hard, angst do locally --rship here thanks to great leadership here locally, phoenix has also led one of the greatest recoveries in the country. [applause] home prices in phoenix have risen by nearly 20% over the last year. sales are up i almost 25%. up by home sales are almost 25%. i stopped by ericsson instruction this morning. they were explaining how right when the bubble hit, ericsson shrank to less than 100 workers. employing 580e people and they are hiring even even more people

because the housing market is bouncing back. things aboutf the housing. it is not just important for the person who owns the house. , ourconomy is so impacted home values were in a better place. their savings may be locked up in the house. the old construction workers. at the contractor's. suppliers. profit makers. all these folks are impacted. we made progress and that helped move the economy forward. but we have to give more hard- people a chance to own their home.

we have to give more homeowners the opportunity to refinance. but we have to change this bubble and bust mentality that causes any first life. market to have a housing that is fair and reasonable. i have put together a plan that will calm push that. to convincelike you members of congress to take up some of these actions. [applause] this will not help the neighbors

who have people next door legal foreclosed home behind. what we want to do is put forward ideas that will help millions of responsible middle- class homeowners and we want to americans whoing dream of owning their own home fair and square, who are willing to make payments, understand that owning a home requires responsibility. and there are some immediate challenges we can take on. let me list a couple of them. congress should pass a good bipartisan idea to allow every homeowner the chance to save thousands of dollars every year by refinancing their mortgage at to date's rate. we need to get that done. we have been talking about it for a year and a half, two years, three years. there is no reason not to do it. a

that weber two, now have made it harder for reckless buyers to buy a home they cannot forrd, let's make it easier responsible buyers to buy a home they can afford. shaun donovan and i have been working with the finance industry to make sure we are emphasizing overlapping regulations, cutting red tape for responsible families who want to get a mortgage but keep getting rejected by the banks. we need to get well mollified americans who lost their job a fair chance -- well-qualified americans who lost their job with their chance to get a home while they repair their credit. in step three is something you always hear about when it comes to the housing market. and that is fixing our broken immigration system. [applause] when more people played by the

up forthe home values go everybody. according to the average study, the average homeowner has seen the value of their home go up by thousands of dollars. the good news with the help of your senators, the senate has already passed a bipartisan immigration bill that has the support of ceo's and labor and law-enforcement. [applause] so, i want you to encourage republicans in the house of representatives to stop dragging their feet and go ahead and get this done. -- we should address the uneven recovery by rebuilding the homes hit hardest includingsing crisis many right here in arizona. let's put construction workers back to work repairing rundown

homes so that the value of homes in the surrounding areas start picking up. we can put people to work right now and improve the remaining housing stock that is out there. there are places facing a longer roll back from the crisis that neither country's help to get back on their feet. step 5 -- weaned -- we should make sure that families that cannot yet afford to buy a home still have a decent place to rent. you know, it is important for us to encourage home ownership. but a lot of people rent, and there is nothing wrong with renting. we have to make sure we create affordable opportunities when it comes to rental properties. the crisis, banks and governments too often made everybody feel like they had to own a home, even if they were not ready.

that is a mistake we should not repeat. instead let's invest in affordable rental housing. let's address issues that drive up rents for working families. so -- [applause] americans more refinance their homes, if we help qualified families get a mortgage, reform our immigration system, rebuild be hardest hit communities, make sure that folks have a decent place to rent if they are not yet able to .uy all this stuff will give more middle-class families the chance to either buy their own home now or eventually by their own home. it will give more relief to homeowners. it gives more options to families who are not yet ready to buy. it will improve the housing market and will improve the economy. but -- and this is the last key point i want to make -- as home

rise, we cannot just be inflate another housing bubble. everyone in arizona learned some lessons from what happened. not tenderlys do just keep on going up forever -- do not generally just keep going on up forever. what we want is something stable and steady. that is why i want to lay a rocksolid foundation to make sure the crisis we went through never happens again. we have got to ensure that. [applause] and one of the key things to make sure it does not happen again is to wind down these -- not really government, but not really private sector. they are known as freddie mac and fannie mae. for too long these companies were allowed to make huge

profits buying mortgages, knowing that if there debts, taxpayers would be left holding the bag. tails youds they win, lose. it was wrong. along with what happened on wall street, it helped inflate this bubble in a way that ultimately killed main street. the good news is there is a bipartisan group of senators working to end fannie and freddie as we know it. i support what i believeor reform should look like. private capital should take a bigger role in the mortgage environment. i know that sounds confusing to folks who call me a socialist -- but i absolutely believe in the free market and just like the healthcare law we put in place, obamacare -- [applause]

which, by the way, if you do not have health insurance or you are buying at exorbitant rates on the individual market, you can join the marketplace and be part of a pull that gives you much lower -- be part of a pool that gives you much lower premiums. saves you a lot of money. [applause] in the same way what we did with healthcare was to set up clear roles for insurance companies, protect consumers, make it more therdable, but build on private marketplace. i believe our housing system should operate where there is a limited government role and private lending should be the backbone of the housing market. and that includes community- based lenders who know borrowers not as a number, but inane. it is the first principle. the second principle is we cannot leave taxpayers on the hook for bad decisions by some of these lenders like freddie

mac or fannie mae. [applause] the pursuitncourage of profit, but the era of expecting a bailout after you pursue your profit and do not manager risk well, that puts the whole country at risk. we are in being those days. we are not going to do that anymore. -- we are in being those days. we are not going to do that anymore. the first principle is we should improve access to mortgage products like the 30-year fixed mortgage. that is something families should rely on when they are making the most important investment of their lives. for first-time buyers, all these young people, we have to make sure it is affordable. families working to climb their way into the middle class. we have to do what we can to make housing affordable.

that means we have to strengthen the fha so it gives today's families the same chance it gave my grandparents to buy a home and preserves those rungs on the ladder of opportunity. we have got to support affordable rental housing. the mayor seems to have been doing a great job here -- [applause] we've got to continue to do it. fourn bring one in homeless veterans off the streets. [applause] here in phoenix, thanks to the hard work of everyone from mayor stanton to u.s. airways, you are on track to end homelessness for better and, period, by 2014. -- homelessness for veterans,

by 2014. we have to keep going. no one in america, and certainly no veteran, should be forced to live on the streets. [applause] so, here is the bottom line. but all his principles together. that is going to protect our at tire economy -- our entire economy. and it will improve the housing market, not just here in phoenix, but throughout the state and the country. make sure that we are protecting individual homeowners. we have to give them the tools so they can protect themselves. a consumer finance protection bureau that we created -- [applause] that is laying down new rules of the road. they are designing a new simple mortgage form that will be complaining push. so you can actually read it.

-- they are designing a new simple mortgage form that will be in plain english. i am just saying, you will be able to read it. there will be a lot of -- there will not be a lot of fine print. that way you know before you all. youhat way you know before owe. [laughter] [applause] thisrd cordray is head of head watchdog. he is aggressively protecting consumers and homeowners. when it comes to some of the other leaders we need to look out for the american people, the fed still has a job to do. a man named mel to be our nation's top housing regulator. -- i nominated a man named mel our nation's top

housing regulator. he is the right person for the job. congress and the senate should give his nomination an up or down vote with no longer obstruction or delay. we do not have time. [applause] so. i want to be honest with you. no program or policy is going to solve all the problems in the housing market. bubble went up so reachedt the height it before it burst was so unsustainable, we knew it would take time for us to fully recover. but if we take the stuff i talked about today, then i know we will distort not just our home values, but also our common -- i know we will restore not just our home values, but also our common dollies.

we will make a home a source of speculation., not i wanted to be like that for all the young people who are here today and their children and their grandchildren. [applause] focused ontay middle-class security in an opportunity to get into the thele class, if we take strategy i am laying out for the entire economy -- jobs and creating, healthcare, ladders of opportunity -- we will secure that better bargain for all americans where hard work is once again reported with a shot at the middle class life. americans wille know the pride of that first paycheck. more americans will know the satisfaction of flipping be signed to open on their own business. more americans will know the joy

of scratching the child's height on the door of their new home. we can do all of this if we work together. it will not be easy. if we will take a few bold steps in of washington will just end the gridlock, set aside the slash and burn politics -- [applause] scoringolicy instead of political points, our economy will grow five years from now, 10 years from now. that is what we are fighting for. thank you. [applause] ♪

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013]

>> from here in phoenix, president obama heads to california. tomorrow, the president will visit with troops and their

families at camp pendleton. in a couple hours we will take a closer look at the nsa surveillance program and its impact on national security and civil liberties. we will examine the white house -- embn to close indices assies based on intelligence. here is more from anthony romero. >> whether it is in the public eye or legal, the answer is it is illegitimate and illegal in our minds. let's break it down. -- the 215dard standard is the statement of fact that there is reasonable cause to believe that there is a tangible thing. that are relevant to foreign interests in espionage or in intelligence

investigation. it implies knowledge or relevance when you are collecting every single phone call -- metadata. we will get into metadata. how is that limited to relevance when you say we have all of the phone numbers made to and from american citizens? i do not think the word relevant is right. that relevance is a bit more circumspect. metadata. metadata is not context, they say. well, you know what, metadata can give you a lot of context. how long i stay on a phone call. how often i call my mother. as she struggles with breast cancer. who i call in the government. who's right itself and i happen to have. who i do not call at the office. they have a lot of my phone calls. i had a private telephone.

we want to keep that somewhat between us, right? that metadata was compiled into complete information, can give you a very full picture of what my day is like, right? i say the fourth amendment does copper the protection of -- does cover the protection of my metadata. quick that was part of an event listed by the aspen institute looking at nsa surveillance. we will see more of that program with host jonathan frei and a political reporter. we will also take your comments and tweets. it all gets underway at 7:00 p.m. eastern here on c-span. while congress is recessed for the month of august, book tv will be in prime time, focusing tonight on festivals. a look at african-american history and the 21st century. then a discussion of the book

"stalin's secret agents." then a discussion of the book "the romney family table." and finally a book about whitey bulger. ♪ >> if we turn away from these brothers, we unite ourselves with these forces that bring about the suffering. would you take advantage of it. >> obesity in this country is nothing short of a public health crisis. i would tell him when i thought that someone had their own agenda. >> [indiscernible] >> i think it can serve as a

window on the past two what is going on with american women. she is really the only one in the world you can trust. >> many of the women who were first ladies were writers. journalists. many cases more interesting as human beings than their husbands. if only because they are not first and foremost limited by political ambition. when you go to the white house today, it is really eat it roosevelt's white house. -- it is really edith roosevelt's white house. >> there was too much looking down. >> yes, ma'am. case thek in every changes the role to

fit her personality and her interests. >> shoe later wrote in her memoir -- she later wrote in her memoir, i myself never made any decision. i only decided what was in portions and when to present it to my husband. you stop and think about how much power that is. that is a lot of power. part of the battle against cancer is to fight the fear that accompanies the disease. the way wesformed look at these bugaboos and made it possible for countless people to survive and to flourish as a result. i don't know how many presidents have had that kind of impact on the way we live our lives. walking around the white house grounds, i am constantly reminded about all the people who have lived there before and

or tequila really all of the all of- and particularly the women. >> first ladies. a c-span original series. produced in cooperation with the white house's circle association. season to begin september -- season 2 begins september 9 as we explore first ladies from edith roosevelt to michelle obama. the center for strategic and international studies hosted a discussion earlier today about the air force quadrennial defense review. here is more about that. >> we have a fiscal year that ends in seven weeks. as of now, the defense department does not know what the end of that fiscal year looks like. we still have the programming actions that are out. we still have contracts that have not been awarded. there are still decisions about how many furlough days. there are reports that furlough

days are being reduced in this department. 11 26. i guess that is good news unless you will your vacation around a we have noekend. idea where we are going in fiscal year 14 which starts october 1. there may be some flexibility under that law or not. we may be looking at a government shutdown. we have a debt ceiling crisis that will hit somewhere around, oh, veterans day, thanksgiving, sometime like that. and if we do not have a resolution, we will have to pass control actions and have another sequester as late as january 18th of next year. uncertainty inf the budget arena. this is somewhat independent of those resources and the value

of doing the duty are and what the resource occasions are. we have done them. they are useful when you are building up and when you're building down. what we're going to do is welcome general frost. i will engage in a little discussion with him on the stage. open it up to questions on the floor. you all have the opportunity to pick up as you came and notecards. hold them up. staff will come around and pick for you. raise your hand and they will bring you a note card. i do not think we have pencils, but we can probably find them if you need to. cards up, we the have two senior folks, our senior advisor and senior fellow assimilate those cards, get as many questions as

we can. and we will see if we can get some answers or at least some commentary on this. the whole point is to engage in the dialogue and discussion. we are really grateful to general frost for joining us here today. general stephen frost. sir. [applause] >> thank you for being here today. i know there are other things you could be doing on such a fine summer day. it is not quite as hot as the dog days of summer. i appreciate that you are here. and i know you are here because you care about this nation just as i do. you want to make sure that the dialogue is rich and deep and i welcome contentious conversation because that way we and we will right not have groupthink or take the easy road as the answer.

that usually fails the society and we're not in in the business of failure. by saying thisf cutie are is an opportunity. asks an opportunity to questions. as part of the broader department of defense journey, i am going to be helping to articulate those questions from our chief, our secretary and our stakeholders. play a meaningful role toward some of the things he was alluding to. toward the fact that our role has changed and i'm not sure we got the job and what it means thewhat we are building and relevance to the international communities.

so some of these are pre- fundamental. we need to act. core right into the missions which i will talk to in a second. the tough questions are, what is the nature of our world and what role do we lay in. of constructs, concepts, and methods to we look at to see if there is a better way of doing things. a way we approach this in that is a portable. clearly resources will change. it also means looking at the entire relationship. the methods we're using to achieve them? our posture, our methods? some of the same theology grew out of world war ii. it needs to be looked at and

questions. is the technological place we sufficiently with the way the world has changed, information sharing, all of these things that you know so well and --sn't marriott well with does it very well? the opportunity to have the diplomacy and theement ship so that engine of national security is strong? so, for the air force, this conversation is a rich one. it plays into the purpose of why the air force exist. aspirationsk about to being a world leader, yet doing it in affordable way, the air force is your best bet.

it is your best bet because we bring aerospace superiority anywhere in the globe. anywhere our nation needs to be so we can hear and see the environment with everything we have to understand the information so we are acting with efficiency and prudent and in a way that has because in effect relationship to bring peace and stability and not conflict if it all possible. we can then move things to wherever that place in the globe is and we can deliver things whether it is humanitarian or other things. nobody can stop us if we have that will. finally, we can bring to bear the capabilities. we can drive deterrents to those who might oppose america's desire to be a leader for peace and good in this world and we can deliver it in any

environment, contested or uncontested -- it doesn't matter. we can provide our president options and of those options mean we do not have to say no. in order to do that in and affordable way and to continue to be in that indispensable role that we play in our nation, we have to look at those underpinning questions about how we are structured and how we fit into the joint fight. finally, we have a command and control that links it all together. the air force is the one that provides -- that will bring the entire fight together in a harmonized way to make sure that we always maintain the advantage against any potential adversary and nobody can do the integration that the air force can provide. those kind of describe some of the questions that i think are

at their that we should be asking. qdr needs to ask other questions. it needs to rest questions about these asics and deficiencies. we need to make sure we are stewards of taxpayers money. when he to take a look at our sizing construct to make sure we are sized appropriately for the right capacity. when he to the guitar models and total force for how much capacity is in the reserve component and how much is outside of that for this future, depending on how our nation wants to proceed. we need to always take a look at their homeland defense. the ability to look at what threats are out there that we might need to be ready for. i will close with one statement that i think the our charge in

uniform.we must be prepared for the unexpected. we will never predict what the future will look like. we will always get that wrong and always have as people. we can build things that provide options to our american people that bring the resiliency so they can swarm and fuse any problem out there and to bring air and space superiority for decision-level quality information. you can move things there, to and from, at the time of your choosing and then finally you can command and control it and with corrosive effects, diplomatic effects, humanitarian. you name it, you can put effects on target and you can do it all

at the speed of this world. that is the final point i will make. there is a dimension to the security element that only the air force provides and we have to not forget that. readiness and our ability to move quickly. the president has a problem in the south china sea and in hours or days later you have a problem in south africa, you need to be able to swing immediately. otherwise you allow things to cascade out of control. because back to the old adage -- a stitch in time will help you prevent spending much more in the future. the air force is that arm that brings the temporal dimension that brings us a better future. this qdr is a wonderful place to have those communications. and those things we uniquely provide this nation that has made it indispensable since our inception in world war ii and

will make us a player in the future that gets stronger and better, especially as we go through financial times where you need good economies of force and return on investment for your taxpayer dollars. the air force is your service to provide that. ok. thank you for having a few opening comments. i hope those questions i asked precipitate a few questions of your own. take it anywhere you want. i have my limits. i can only talk to the air force and the role that i play, but i welcome any question. this is about contentious conversation so that we as protectors of this nation are policymakers who make decisions and being provided clear counsel and our nation does not regret that we didn't have the right conversation at the inflection point in our history.

>> a reminder sir. you can see all of that event any time at www.c-span.org. coming up tonight at 7:00 eastern, we will have a live town hall on the nsa surveillance program, its effect on national security, foreign policy, and civil liberties area to journalists will join. we will take your facebook comments, phone calls, and we. first, -- and tweets. first a discussion on data collection from former erectors involved in the expansion of the nsa program. this was from the aspen institute. it is about 15 minutes. [applause] >> i think it is safe to say that when we set this panel some months ago, my fellow panelists sitting onicipate

stage with people who had clandestinely with edward snowden, and i was there with their knowledge and consent to revise and extend the subject a this panel to include considerable amount about we have learned recently about the nsa and what we should think of it. my fellow panelists do not need any introduction for our purposes today. i will just mention that the ambassador was the first director of national intelligence during the. of 2000 -- during the period of 2005 until 2007. during this time there was a transition within the bush administration to begin surveillance programs.

the prison program which i first heard about in the washington post two months ago. also, the same job from 2009 until 2010. that oversaw the immediate aftermath of the extension of pfizer, particularly section 702. -- the extension of fisa, particularly section seven of two. -- 702. i'm prepared to accept having read some of the documents, and i am reconfirmed in this, there a lot of things in this that cannot be talked about. havetheless, while we recently learned that we are collecting more data than the public was aware of, the u.s. government was unable to connect the dots sufficiently on the naev brothers even though

the had been brought to cia's attention in the past. what do you make of this and the gathering of intelligence information? really two aspects of this. one is having the information available so it can be collected, analyzed, and turned into action. the other is the process of bringing it together. the place where the information is relevant and available have been so widespread, that the old days when you could reagan to elsa- brick into the program and get the key message -- it would be gone. and now you have to go do some a different places. it turns out we can gather more than we can turn into actionable

intelligence. this is the function of a lot of things. do, however, have to continue to get this information into analyst's. we have to give the machines that will help them deal with the enormous volume. and we have to have good people to go beyond what machines can do to use training to get it done. possibleg said, it is to -- for the intelligence community to do everything perfectly, and yet for something bad to happen in the united states. that the country would have to take in order to prevent the sorts of things from happening, i think would go far beyond the bounds of intrusiveness we want our government to have into our lives. accept this boundary on

how much information we want the government to do so they can make us safe, and how much do you want to keep civil liberties and privacy for americans? that is something that we have to work on and debates. and where it is right now, we can solve some things. we cannot stop other things. that is where we have it. i think that we do not want to go any further in terms of gathering more data on americans. i think we need to get better at using what we have in order to try to stand off that actions. re-bout the compartmentation, it sounded as though you were saying a lot of what wrought you into the job was created for you. share, tearingto down these stovepipes.

all, that is still important. and i think sharing is critical to the integration of information on a real-time basis. andink i would have to wait see what the real damage what mr.t is of snowden did. i'm not sure exactly. to a lot he had access of information. i think we should bear in mind here, it is worth repeating that hindsight is 2020. you can take this with just about any event that has occurred and say, why didn't i see that? i think that most wings that could have been done probably does most things that could have been done probably were done. and there are situations that will escape this and incidents will occur. the fact of the matter is i think the country since 2001 is considerably safer than right after 9/11 because of many of

the efforts that have been made to integrate and improve our intelligence. i think that i feel nowhere is that better illustrated than on the battlefield of iraq and afghanistan where iafghanistan,e really perfected the art of integrating and forward deploying our multiple intelligence capabilities, so we could bear down on targets. i think what stan mcchrystal accomplished in dismantling al qaeda in iraq was a phenomenal, schmidt, made in part by this integration and reform process, and by great advances in technology that have occurred during the past decade. >> let me come back to something that did happen on your watch. know, theow government went to the pfizer court an