to bridge that divide and find common ground. are we really going to asked them to wait patiently, continue suffering through the keep watching as we cruise toward an economic calamity? that does not make sense. let's have those conversations, let's have those negotiations, but let's end this crisis and get to work. yesterday i heard something from the speaker, he said he did not want to end the shut down now because that would be "unconditional surrender to the president." have we really come to the point where simply allowing the government to open is considered by one party to be a political loss? are we really in a place where

the majority of one chamber in one branch of government believes allowing the united states of america to pay its bills is a major concession? i say to my republican friends who are here today, can you imagine if our roles were reversed? i have been working very hard this year to write an early childhood education bill. i am passionate about it. i suspect there are a few people in this chamber today who could see themselves in the white house. what would my republican colleagues do if i said to them, if they did not pass my bill to expand pre-k, i would get all of the democrats together and we would refuse to pass any spending bill until we got what we wanted?

if that led to a government shut down because they refuse to let my bill pass, what would they do if i commanded a supercommittee to discuss ways to invest in our children before i allowed to vote to open the government back up again? i would humbly suggest that my republican colleagues would say exactly what democrats are saying now. this is not a legitimate way to negotiate. the only path forward is to end this crisis and have a conversation. the great american system that we hold so dear, our democracy that is the envy of the world simply cannot work if a minority of members can threaten to shut down the government or devastate

the economy if they do not get their way on an issue, any issue. that is not what democrats did when we were in the minority and it is not what we should do should that day come again. our system was designed to push both sides towards negotiations in a divided government, to encourage negotiation and movement towards common ground. it breaks down when one side refuses to negotiate in advance of a crisis and it falls apart when a minority refuses to allow the basic functions of our government to perform unless their demands are met. i know all of my colleagues, democrats and republicans, came here to fight for their constituents to solve problems, to make this country work better. i know there is nobody here today, not a single senator who

was sent here to shut the government down or to push this country towards an unprecedented default. i know so many of my colleagues are sick of the constant crises. they hate seeing their constituents get hurt. i think we should find a way to sit down and find a way out of these dead ends. that is what i am here today to offer, a way out, a path forward. it is not a defeat of one side or the other, it is not any kind of surrender, but it would allow us to get out of this mess that has been created and open up the path to negotiations so we can avoid the next one. i am going to asked for consent

to start a budget conference as soon as the current crisis has ended. democrats have made it clear that we want to negotiate. we could not have made it clearer. we will sit down and negotiate over anything the republicans want and we pledge to work as hard as we can for as long as it takes until we get a fair and long-term budget deal to end these constant crises. this current crisis needs to end and the threat of the next one needs to be lifted. republicans do not need a hostage. i urge my republican colleagues to please consider today taking us up on this offer. we can into this today, we can do the right thing for our families and the communities we

represent, and we can get back to work helping people solving problems and working together. madam president, i respectfully asked unanimous consent that when the senate receives a message from the house, the senate proceed to the consideration of calendar number 33, the amendment at the desk, the budget resolution passed by the senate be inserted, the motion to reconsider be considered made and laid upon the table, the senate proceed to a vote on the motion to insist on its amendment, request a conference with the house on the disagreed vote and authorize the chair to appoint conferees on

the part of the senate. >> is there objection? >> reserving the right to object, we agree it is good to negotiate and we should. i would only hope the president would be part of the negotiation in order to make it successful. why is it contingent on passage of the house continuing resolution? we happen to think it is a problem when the debt ceiling were raised, we would see the debt go up by 68% under this president.

we have a long-standing request make sure that ricky -- that reconciliation conference so that the debt can be increased. we think that is a bad idea. i would asked the senator from washington whether she would consider an amended unanimous consent request and we would asked the senate that the senate proceed to the consideration of calendar 33 that the amendment at the desk be inserted that 25

be amended and agreed to. request a conference and authorize the chair two point conferees. with all of the above occurring with no debate, i would further ask consent that it not be in order for the senate to consider a conference report that includes reconciliation instructions to raise the debt limit. >> will the senator so modify her request? >> sometimes i think those who have been objecting 21 times have forgotten who i will be conferencing with, which is the republican house majority.

what they fight for will be represented in a conference committee. that is the point of a conference committee. having a conference committee to work out our budget agreement is exactly what i have asked for. i will object because what the senator's requested does is say, we will keep our government closed. we will not allow people to do the function so desperately needed. we will hold that hostage. we need to open the government, we need to pay our bills, and we need to negotiate. that is what our request does. >> objection is heard. >> i object.

>> asking republicans to join us in a conference committee to resolve our budget differences between a house and the senate, 21 times the senator has come to this floor simply asking to negotiate. the republicans, who have been arguing that we do not negotiate, turned her down 21 times. the junior senator from texas shut down the government over the notion of defunding obamacare. the senior senator from texas has said he objects to going to a conference committee to resolve our differences.

if we're are going to restore this senate, what the senator from washington has asked for is very basic. open the government. this morning, the chaplain of the senate started by acknowledging the five families who were notified after they lost a military member, a son, husband, brother in afghanistan over the weekend. the chaplain noted that in their bereavement, they were being denied the basic benefits. the chaplain of the senate set up this morning, enough is enough. this notion that closing down our government and keeping it closed is somehow acceptable political conduct is outrageous. we just left a press conference where the senator mikulski of maryland, spoke about the impact on the local economy of the loss

of these jobs. i could tell stories of illinois come of 50,000 federal workers. we were in the midst of a terrible accident last week right before october 1, a train ran into one of our metro trains coming back from the airport. 30 people were sent to the hospital. the national transportation safety board went out to investigate the accident. they had to leave at midnight on october 1. we will pick out the vital functions of government.

so far, all of the bills passed by the house of representatives represent only 18% of the domestic as cautionary budget of the united states. all of those combined. each day, as another tragedy occurs, another embarrassment to this republican strategy emerges, they will try and to find a way to fix that problem. open the government, pay our bills, while we negotiate. for the 21st time, the republicans have come to the floor and denied the request to sit down and negotiate. 21 times.

>> the senator from alabama. >> it is a good thing the democrats, for the first time after four years, passed a budget, at least brought one to the floor. before that, they not only did not pass one comment they did not bring one to the floor for four years and refused to do so even though the specific provision of the code called on them to do so. it required them to do so. it was a stunning development. senator conrad wanted to bring budgets up, said he was going to bring the budget up, but senator

durbin and others in the leadership had a vote and voted against him. senator murray, to her credit, has got a budget through this year, which was a good thing. i suspect senator murray was one of those who blocked senator conrad. i think it is a bit aggressive to say republicans are blocking a budget. the legislation necessary to raise the debt ceiling again should be passed like legislation should be passed on

the floor of the senate and it would require a 60 vote point of order. their concern is that in conference, a raising of the debt ceiling will be put in the budget, which only requires 51 votes. they will allow the budget to go to conference, but they want a commitment from our democratic colleagues. they have indicated they do not intend to put that on the budget. senator durbin said he did not think it was appropriate.

it is a time of great importance, the american people understand it. they want us to take action to place this country on a sound financial path. we are heading to the debt ceiling. we limit the amount of money congress can borrow. how much money we can spend above -- we are now spending about -- think about it.

that is what we are doing every year and it is unsustainable. august 2011, the american people told congress, we want to clip back on your credit card. you will not continue to borrow this much money every year. before you raise the debt ceiling, we want you to show that you are going to be more frugal. after a time, there was an agreement reached. this is what we agreed to.

over the next 10 years, we would raise the debt ceiling $2.1 trillion. and then we agreed on the next 10 years that we would reduce the projected growth of spending by $2.1 trillion. it gave the congress 10 years to find the cuts. we have already borrowed another 2 trillion dollars and we have hit the debt ceiling cap again. by the way, these are not really cuts. when you look at the united states budget, it was projected to increase spending from 37 trillion over 10 years to $47

trillion over 10 years. with the budget control act, spending when increase from 37 trillion to $45 trillion over 10 years. that is not really a cut in spending, is it? the reduction in the growth in spending was not extreme, not a responsible, and should be preserved and must be preserved. the president of the united states, after signing that agreement in august, the sequester was all part of the same deal, in january, he proposed a budget that would increase spending

another trillion dollars and would raise taxes a trillion dollars. that is basically what our colleagues passed in their budget this year. a trillion dollars more than the budget control act says we should spend and raise taxes another trillion dollars. this is a total abdication of the promise we made to the american people. ok, we will vote to raise the debt ceiling. our people did not like any raising of the debt ceiling. we promised we would not spend so much. we promised we would reduce

spending $2.1 trillion and a lot of cynics said congress would not adhere to that. that is exactly what the president did in january of 2012. he proposed to spend another trillion dollars above the amount of money we agreed to spend six months before. i did not really want to sign that agreement. i have taxes i want to increase. this is what is occurring.

we have got to stand firm. adhere, at least, to the containment of the growth of spending that was in the budget control act. failure to do that is a capitulation in our promises to the american people, a total abandonment of any contention that we would be fiscally responsible. it is unthinkable that we would abandon the limits. the truth is, the sad truth is the budget control act reductions in the growth of spending do not come close to putting us on a firm financial footing.

we are on an unsustainable debt course as our cbo has told us. we are seeing a reduction in the deficits this year. we have never come close to that kind of deficit before in the history of the republic. what does the budget say that says we want to tax a trillion dollars more and spend for money under these circumstances?

i will tell you -- there is no way we can save any more money. we can save another dime, you people, you just don't understand. we have a problem, though, and you know who is responsible for? you are. you, the american people. it is your fault. you will not give us enough money. if you would send us more money, another trillion dollars, we could solve all of our problems.

send us more money. by the way, we will use that money to create government programs, government bureaucracies that impose great cost on the american economy and have resulted in the declining wages of american workers to the degree that is not acceptable. we need a growth oriented, lean government that serves the people for the least possible cost and reduces the deficit. and the deficits themselves are pulling economic growth in our country down. the size of our debt is so large, we have never had anything like it. it is already beginning to diminish our prospects for growth in our economy and reduce job creation and wages. madam president, i know that we are in a tough time. we need to work our way out of

this. the president negotiated over the debt ceiling in august of 2011 and we made a step forward. it was the most significant fiscal step this country has taken in decades. for the last two years, we have spent less money than the year before. we need to strengthen and save medicare. we cannot afford the affordable care act. we have a total misrepresentation on the affordable care act regarding its cost.

it does not pay for itself, nowhere close. it is as unstable financially as social security is. >> the senator's time has expired. >> i thank the chair. let's keep working. maybe we can develop some ways to confront our financial problems. it is absolutely critical that we do. we have a moral responsibility to do that. we up start working together to achieve it. i think the president needs to back off his statements that he will not negotiate.

if he might stay for a moment how that budget conference committee works. >> madam president, i have one unanimous consent request for a committee to meet during today's session. this request be printed in the record. >> without objection. >> through the chair, i wanted to pose a question about the budget conference committee. i think it is something that has puzzled a lot of people across america. we hear some folks standing up and giving speeches. my understanding is that anything that comes out of the

budget conference committee would have to have agreement from the team of delegates from the house side and the team of delegates from the senate side. this is a question i would ask of the ranking member of the budget committee to clarify that process. >> the senator from alabama. >> that is correct. i understand the speaker has indicated that there is no guarantee that the increase in debt ceiling would not be a part of a conference report that came out of conference committee. we have independent senators in this body who simply said we do

not think we should be subjected to having the debt ceiling increase without a full debate and the normal processes of 60 votes in the senate. that is where the disagreement lies. people can have disagreements about the validity of their concern. it is a legitimate concern. if there is no intention to move a budget, that is the disagreement that now exists. >> the senator from oregon. >> with that concern, why not

simply asked the house delegates to carry that concern rather than blocking the start of the conference committee? >> the senator from alabama. >> it is very simple. senators have rights and they have a right to assert those privileges on the floor of the senate. we have senators who say, you should not do this because you should not raise the debt ceiling on the budget bill and we do not want to go to conference unless you do.

agree not to sneak that through without a full vote.attaching it to the bill is a budget deal that is huge and would have a lot of interest in it and would make it more difficult to separate that question out. that is their view. i'mo not see any problem. amazed that the intransigence of the majority is not excepting that. i don't think it's likely that the house would add that to it, frankly, not too worried about it. and that's causing the disagreement right now. i think it would be great to go to conference and would like to see a conference ocher, frankly. it's an unusual and

positive development that afterafter four years of not even bringing a budget to the floor that we now have the majority passing a budget so we can try to do something with it and conference. i have to tell you all of our colleagues, there is a big theference in the budget. budget passed out of the senate without a majority that every republican opposed completely busted the budget control act. it is nowhere close to what was agreed to in that act two years ago. we've got a huge gap to cover in conference, not impossible, and it would probably be a healthy thing to start that process and i wish my colleague would relent and commit to try to not sneak the

debt ceiling increase under i thank the chair and my colleague and the budget committee contributes ably and works hard to try to do the right thing around here. thank you. >> the senator from oregon. >> the thing that puzzles me is there is a process on this floor for giving instructions to a mynference committee. colleague has left the floor butthe question i would have followed up with is given that there is a specific process in the senate for doing budget instructions to a conference committee, why not utilize that specific process, hold a vote on the conference committee instructions rather than blockading the conference committee from starting? i guess i will have to rhetorically answer the question.

there is no good explanation. no good explanation for why not going through the normal process of proposing a budget committee instructions for conferees. could we resolve this today? have a proposal put forward to instruct the conferees, it passes or does not? isn't the whole budget process designed to be a simple majority process so that we can get the job done and not be paralyzed? i think, madam president, i believe the story and i would've liked to have the perspective of my colleague, i think the story is a determination to not allow a majority determination of the and insteadructions.

allow a minority to do so. i believe that is an unprecedented situation and i wanted to clarify that and understand whether there was a precedent for this determination that in a simple majority process, a minority would blockade the process. it is very strange that they should become a central issue. i want americans to understand that it boils down to this. we have been trying to start a budget conference committee that a small group has wanted to instruct the budget committee, but to do so without going through the normal process on the floor. it is that precedent that seems unacceptable.

if the tables were turned, it would be felt strongly on the other side. i hope to keep exploring these questions. this obstruction of getting a budget is damaging. this body absolutely has to be able to do with fundamental work in determining the budget and getting the conference and doing the spending bills because otherwise, we are careening from i'm going toisis. shift gears here. i want to step back from what is going on immediately with the shutdown and asked --what do the seeds of this come from? if we turn back to april, 2009, shortly after i came to the senate, there was a memo put out frank individual.

lutzt is damaging. was providing a roadmap on how to block any sort of improvement in our health care system. he was instructing my colleagues across the aisle that it does not matter what is in the health care bill, it does not matter what good it does, what ever it is, call it a government this is long before anybody knew what would be in the bill. this strategy of poisonous partisanship rather than problem solving has been with us since at least april of 2009. thereforea series of myths were as the process proceeded, those behind it doubled down on it. we havein the health care reform, ,we have a process by which small businesses can join together and get the marketing

clout of a large group, negotiate lower rates, and get a better deal. under the let's demonize and deceive strategy, there has been an assertion this would hurt small businesses. individuals can band together --d did a much better deal. and get a much better deal. we are seeing drops in rates for individuals across this country. under the deceive and demonize strategy, it became, let's tell people insurance rates will go up instead of down. we have a bill before us, a health care reform law coming into effect that ends abuses in

the insurance industry, a situation where you could not get a policy if you had a pre- existing condition, it if you had insurance and got sick, you would be thrown off the policy. the fact that children were not able to stay on your policy on tape -- until they were able to get insurance of their own. these bill of rights are reforms that are deeply sought by americans across this country, but under the frank lutz strategy, there was an assertion that this would destroy the you have asystem. process whereby under the marketplaces, insurance companies will have to compete. under the frank lutz strategy, they decided to say this would hurt competition, even though it it putshens competition.

people apples to apples having to lay out their rates and benefits under these different levels of insurance. we're seeing that competition let'sprivate companies. fast-forward -- we have that phase of the demonize the plant even though we have to mischaracterize it and dc it and delude americans about what's really in it. >> the senator's time has expired. i willnk you very much. wrap up with a sentence or two for my colleagues. thank you for coming to the floor. continue the conversation. it is so important that we put our government back on track and quit careening from crisis to crisis.thank you, madam president. coming up, president obama

nominates janet yellin as the new fed resident, followed by "washington journal." treasury secretary jack lew will testify this week about the debt ceiling. ate coverage gets underway 8:00 eastern on c-span two. three, the senate banking committee will hold a hearing on the debt limit and the potential impact a u.s. default could have on the global economy. governor wholahoma heads the american bankers association will testify. live coverage is that 10:00 a.m. eastern. >> first lady grace coolidge was known as the first lady of

baseball baseball. quacks she was a lifelong baseball fan being in massachusetts and vermont, they were big boston red sox fans. when they went to governor wash, had allegiance to the local team down there, the washington senators. in our collection, we have a number -- a number of season passes she was given by the american league. usually they were issued to her either in a or a pocketbook. some of the pocketbooks are wonderful art deco in style. one of the items in the exhibit is the certificate that she was given by the boston red sox and the washington nationals as they and as aed in 19 55, giving her the first lady of the land, the first lady of baseball. watch our special called " continueies" and we our series monday. >> president obama nominated

to head the federal reserve. she would be the first woman hao lead the central bank and its 100 year history. >> ladies and gentlement, the president of the united states accompanied by ben bernanke and vice chair, janet yellen. >> have a seat, everybody. good afternoon. over the past five years, america has fought its way back from the worst recession since the great depression. we have passed historic reform to prevent another crisis and protect consumers. for the past three and a half years, our businesses have created 7.5 million new jobs. our housing market is rebounding. manufacturing is growing. the auto industry has come rolling back. we have cut the deficit in half.

i think everyone understands we have a lot of work to do to rebuild the middle class, but we have made progress. we should not do anything to threaten that progress. this has made a difference to millions of americans. we can thank the extraordinary resilience of the american people. we can think that dynamism of our businesses. a lot of it has to do a choices we have made to create more jobs and growth. one of the most important contributors to this whole process has been the fed reserve under the strong leadership of ben bernanke. for nearly eight years, ben has led the fed through some of the most daunting and economic challenges of our lifetime. he has made it clear that he intends to finish his service as chairman at the end of his term, which is this january. i want to take a minute to pay

tribute to ben for his extraordinary service. buti want to announce my choice for the next chair of the fed reserve. one of the nation's foremost economists and policymakers, current vice chairman, janet yellen. after i became president, i was proud to nominate ben for a second term. the fed is and must always be independent. i want you to know that i am very grateful to you for being such a strong partner in helping america recover from the recession. it is no surprise as the son of a pharmacist and schoolteacher -- isben bernanke has the the academy of death is the opec to me -- is the academy --is the epitome of calm.

he has been a voice of wisdom and a steady hand. at the same time when faced with potential global economic meltdown, he has displayed tremendous courage. he took old action that was needed. he helped us stop the freefall and stabilize financial markets. thiscredit flowing again. has made a profound difference in the lives of many americans. a lot of people are not sure what the federal chair does. but more families were able to afford new homes and businesses could hire workers. more people could pay their mortgages and car loans. it meant more growth and more jobs. i would add with his commitment to greater transparency and clarity, he is also allowed us to better understand -- the work of the fed. he has lead a new era of fed he has been more clear about how the system works andit is good for our democracy.as i travel around the

worldthe job of the fed chair is ,not just our top monetary policymakers. the world looks to the american fed chair for leadership and guidance. the degree to which he is admired and respected and the degree to which central bankers all across the world look to him for sound advice and smart policymaking is remarkable. he has truly been a stabilizing degree to which central bankers force not just for our country, but the entire world. i could not be more grateful for his extraordinary services. you and your wife and your children, thank you for your outstanding service. [applause]

as i said, the decision on who will succeed ben is one of the most important economic decisions as president. one of the most important appointments any president can make. the chair of the fed is one of the most important policymakers of the world. i have considered a lot of factors. we need sound monetary policy to make sure we keep inflation in check. we need to increase employment and create jobs. it remains our most important economic challenge. i have found these qualities in janet yellen. she is a proven leader.

she is tough, not just because she is from brooklyn. she is well qualified for the role. she served in leadership positions at the fed for more than a decade. as vice chair, she has been exemplary and the driving force she is tough, not just because of policy and helped boost our economy recovery. she doesn't have a crystal ball, but she has a keen understanding of how markets and the economy work, not just in theory, but in the real world. she calls it like she sees it. she also knows how to build consensus. she listens to competing views and brings people together around a common goal. of policy and helped boost our she is the kind of person who makes everyone around her better. not presently, she is held in high esteem by colleagues across the country and around the world who look to the united states and the fed for leadership. she is committed to both sides. she understands the necessity of a stable financial system were

removed ahead with the reforms that we have begun. protect consumers. ensure no institution is too big to fail. make sure that taxpayers are never left held holding the bag because of mistakes of the reckless few. at the same time, she is committed to the appointment and -- to increasing employment andunderstands the human costs when americans cannot find a job. these are not the statistics. the toll is terrible on the mental and physical health of workers, their marriages, and their children. she understands this.america's workers and their familiesthey will have a ,champion in janet yellen. thank you for taking on this new assignment. i urge the senate to confirm janet without delay. she will be an exceptional chair of the fed reserve. i should add that she will be the first woman to lead the fed

in its 100 year history. america's men and women thank you for not only your example and excellence, but also being able model for a lot of folks out there. it has been said that janet was -- the fed reserve literally. found love at the federal reserve literally. [laughter] this is where she met her husband, a celebrated economist sonis own right.their robert is an economist as well soyou can imagine the conversation around the dinner table might be different than ours. [laughter] in fact, i have been told their idea of a great family vacation is the beach with a suitcase full of economic oaks.-- books. but this is a family affair. again, i want to say thank you to ben bernanke for the outstanding work he has done an outstanding work to keep her economy moving forward during the remaining of his tenure.

we will have occasion for additional goodbyes. janet is counting on him to give with this, i would like to give janet a chance to say a few words. [applause] >> thank you, mr. president. i'm honored and humbled with the faith you have placed in me. i have much to do my upmost to keep that trust and meet the responsibilities that congress has trusted to the federal reserve, promote maximum employment, stable prices, and a strong and stable financial

system. i would also like to say thank you to my spouse and my son, robert. i cannot imagine taking on this new challenge without their support. the past six years have been tumultuous for the economy. it has been challenging for many americans. i think we all agree, mr. president, that more needs to be done for the recovery. especially for those hardest hit by the great recession. we have made progress. the economy is stronger. the financial system is sounder. a considerable credit of that goes to ben bernanke for his wise, courageous, and skillful leadership. it has been my privilege to serve with him and learn from him.

we have made progress. we have farther to go. the mandate of the fed reserve is to serve all the american people. too many americans still cannot find a job and worry how they will a those bills and provide for their families. the fed reserve can help if it doesn't stop affect every.-- if it does its job effectively. we can help ensure that everyone has the opportunity to work hard and build a better life. we can ensure that it doesn't undermine the benefits of a growing economy. we can and must safeguard the financial system. the city has powerful tools to-- the fed has powerful tools toinfluence the economy in the financial system. i believe it's greatest risk in this capacity to approach

important decisions with expertise and objectivity and unite behind a response. effectiveness depends on the commitment, ingenuity, and integrity of the staff and my fellow policymakers. they serve america with great dedication. mr. president, thank you for giving me this opportunity to continue serving the fed reserve and carrying out this important work on behalf of the american people. [applause]

[captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute]>> the houses back for more debate on the government shutdown and the debt ceiling. they will work on funding for border security this afternoon with loud -- live house coverage on c-span. in an hour on c-span two, treasury secretary jack lew will be on capitol hill to testify about the debt ceiling deadline. he will be at the senate finance committee at 8:00 eastern. on c-span three, another congressional hearing on raising the nation's barring limit. live coverage from the senate banking committee at 10:00 eastern. coming up on day 10 of the shutdown, congressman keith

ellison will join us. we will talk with the arizona republican david schweiker, a member of the small business committee and later, the conversation on the effect the shutdown could have a national security with john billinger. ♪ ♪ good morning, it's thursday october 10, 20 13. although the federal shutdown has now reached a 10, there are still plenty of news tongue out of washington this morning. treasury secretary jacob lew is set to appear before a senate panel today. he will warn congress about the looming debt ceiling deadline. at the white house today, president obama will meet with the house gop leaders about the budget impasse one day after introducing his pick for the next chair of the federal reserve on wednesday. also wednesday at the pentagon, military leaders announce a new plan to ke