this is taking up a lot of time. >> all right. >> all right. so with respect to sabotage, i mean, my understanding of history, for example, the plane being shot down, it's not clear that that was the cuban it was a tragic circumstance ended up collapsing talked to had begun to take place. i have not seen a historical record that suggests that they the plane down to cifically in order is not president for the president of the united states president of cuba to the an announcement at

same time that they are moving towards normalizing relationships. anything not been like this in the past. does not mean that over we can't two years anticipate them taking certain up ions that we may end finding deeply troubling. either inside of cuba or with respect to their foreign-policy. that could put significant on the relationship. that's true of a lot of countries out there where we have an embassy. normalizing int of relations is that it gives us a greater opportunity to have with that government, then not. the uld be surprised if

cuban government purposely is now o undermine what effectively policy. wouldn't be surprised if they take actions that we think are a problem. in a position to actions to whatever they take, the same way we do with a whole range of countries around the world, when they do things that we think are wrong. but, the point is that we will be in a better position to actually have some influence. there maybe carrots as well as we can apply. the only way to send dell's came up -- i think maybe i mention this in the interview i did -- i delivered a fairly lengthy statement on how a new looking forward to

future in the relationship between our two countries, but we will continue to press on and human democracy rights, which we think are important. my opening remarks probably took 15 minutes, which on the phone is a pretty long time. end of that, he said, mr. president, you're still a man, perhaps -- at the end of my remarks i apologize a long time, but wanted to make sure that before into the conversation that he was very clear about where i stood. he said, don't worry about mr. you are still a young man, you still have a chance to break fidel's record, one time he spoke seven hours straight. that mr. castro proceeded to

give his own opening remarks, long as d twice as mine, and i said, it must run in the family. that was only discussion of fidel castro that we had. the other forgot all questions. -- how presley involves what you y involved get? congress, we ct to cannot bring down the embargo. think will happen -- where will be a process congress digests it. there are bipartisan supporters approach, their bipartisan contractors to the approach we take.

certainly weigh in -- i think ultimately we need to down the embargo. i'd don't anticipate that that happens right away. i think people will want to see this moves forward before there's any serious debate about it -- whether or not we would make major shifts in the embargo. follow on that -- you hat conditions would meet with mr. castro? would you say you are considering additional economic or financial sanctions on north korea? of you rule out the use military force?

>> i think i'm going to leave it at where i left it. we just confirm that was north korea. we have been working out the range of options. they will be presented to me. i will make a decision on those proportional is and appropriate to the nature of his crime. respect to cuba, we are a stage here where me visiting cuba, or present castro coming to the united states is in the cards. i do not know how this relationship will develop over the next several years. fairly young man, i imagine some point in my life to l have the opportunity visit cuba, aand enjoy the cuban g with

people, but there's nothing specific where we are trying to sort of visit on my part. colleen. earlier about 2014 you took at year -- action on immigration -- are going to consider executive you concluded e that you cannot break the fever in washington and the partisan gridlock? >> i think that real opportunities to get things done in congress. before, i think the american people would like to see us get things done.

going to be, is aare we able to separate out where we disagree and those areas where we agree? there will be some tough fight on areas where we disagree. if republicans seek to take healthcare way from people who got it -- they will meet stiff resistance from me. if they tried to water down consumer protection that we put in the aftermath of will inancial crisis, i say no, and i'm confident that i will build uphold the veto on those types of provisions. increasing american exports, our tax system, rebuilding our infrastructure, my hope is that we can get some things done.

i have never been persuaded by this argument that if it the executive actions, they would have been more productive -- there's no evidence of that. i intend to continue to do what i have been doing. where i see a big problem, and an opportunity to help the american people, and is within lawful authority to do something, i will do it. side-by-side, i will reach out congress, and say, let's work together, i would like to work with you. immigration is a classic example. i was very happy when congress immigration artisan reform bill. i did everything i could for provide and a half to the space for them to act. to them -- look, if

their specific changes you would like to see, we're willing to compromise and be patient. ultimately, it didn't work out. will be -- is like tive actions on areas equal pay, or r sensible more immigration system are important to republicans, if they care about those issues are is executive actions bothering them, there's a very -- pass bills.n both sides will have to on most issues for those issues to become law. they have to take into account i care about, just

decide to take into account the issues that they care about. i think this will be our last question. >> thank you so much. so one of the first bills that mcconnell took on would authorize the keystone xl pipeline. you highlight some of the risk associated with the project. what do you do when faced with that bill given that republican majority? also, what you see as the benefit? also, given the drop in oil prices that we've seen lately, does that impact this? >> i don't think i have minimized the benefits. described the benefits. issue in keystone is not

is canadian , it oil that is drawn out of tar sands in canada. being il currently is rail or out through trucks, and it would save and the oil companies, canadian oil industry an amount of money, if they could semi-pipette all the way to the united states to the gulf. to the goals, ve it is then entering into the world market, and it would be sold all around the world. won't say o -- i no. little impact --

s. gas impact on u. prices, what the average consumer cares about by having the pipeline come through. sometimes the way this console this oil -- the implication is that it will united gas prices in the states -- it will not. it is very good for canadian oil companies. it is good for the canadian oil industry. but, it will not be a huge benefit to the u. s. consumers. it will not even be a nominal benefit to u. s. consumers. now, the construction of the pipeline itself will create thousand jobs ple -- temporary jobs. there are probably some additional jobs that can be in the gulf.

those are not completely it is just like any other project. could ou consider what we be doing if we were rebuilding our roads and bridges around the country -- something that could authorize -- we can probably create hundreds of 1 million of jobs, or jobs. if that argument, there are lots of more direct ways to create american construction jobs. then with respect to the cost, is said is -- i want to make sure that if in fact project goes forward, that of not adding to the problem climate change, which i think is very serious, aand does impose serious cost on the american people.

if we have more flooding, more wildfires, more droughts -- impacts rect economic on that. we are now rebuilding after sandy. we have to consider how we how we e preparedness on infrastructure and jersey shore the -- that's the example of the kinds of costs that are imposed, and you can put a dollar figure on it. who have a nebraska judge still deciding on the new path this pipeline -- once that is resolved, that the state department will have all the information it needs to make its decision. give this perspective because i think this tendency to some magic hing as

formula. see on paper where exactly they've been getting that information from. in terms of oil prices and how -- i pacts the decision think it will not have a impact, except perhaps in the minds of folks prices are lower, maybe they are less susceptible to this argument. but, it would never be the lowering gas prices the oil piped out would go into the global market. i will see what they do. >> any new year's resolutions?

>> go ahead. >> thank you mr. president. last question, i guess. ago this month, i asked you, what is the state of black america? you said it was the best of times and the worst of times. the best of times in the sense that there had never been more opportunities for african americans who had received a good education. and the worst of times in terms lack of employment. today, what is the state of black relations? >> like the rest of america, black america is better in in regate than when i came office -- the jobs that have been created, but people who gotten health insurance,

before one pensions that have been recovered. a lot of those folks are african-american. the gap in income and wealth of black america persists. on that more work to do front. in ave been consistent a legacy of this is a troubled racial past -- jim crow and slavery. that is not an excuse for black folks. i think the overall majority of black people understand that it is not an excuse. they are working hard, try to get an education. but, they behind often in the race. we should be able to provide a hand hand up -- not

down, and help folks get a good education, help them get a high school education, get to college. if they do, they will be able to succeed, and that is good for all of us. we've seen some progress in education reforms that we have passed. we are the highest high school graduation that we've seen in a very long time. we are seeing record numbers of young people attending college. in many states, using progress and reading es scores for african-american and latino students. -- still have re work to do. as we think about race been ions, they have

colored by the ferguson and new york -- a the ing awareness of broader population of white communities of color have understood for a long time -- specific instances where law enforcement doesn't feel as if it is being applied in a colorblind fashion. that i formed is supposed to report back to me in 90 days. now with a bunch of abstract about race relations, bbut some concrete practical that police departments and law enforcement agencies implementing right now to rebuild trust between these color and the police department.

my intention -- as soon as i get those recommendations is to implement them. require them will congressional actions, some of them will require actions on the part of states and local jurisdictions. but, i actually think it has been a healthy conversation that we have had. not new phenomena. the fact that they are surfacing is because in part people are able to sell what that in the past only been the kitchen nd table, and it allows people to make their own assessments. you're not going to solve the problem if it is not being talked about. in the meantime, we've been moving forward on criminal justice issues more broadly. one of the things i talked about in my opening statement is that last year was the first that we had the population

prisons go al down, and the crime rate go down. this shows that we are able to go nk smarter about how we about crime. a better job of saving money in the process, by initiating some of these reforms. i've been pleased to see that we've had republicans and democrats in congress who are interested in these issues. i will say, thing and this will be the last thing that i say. one of the great things about this job is the you get to know the american people. you meet folks from every walk of life, and every region of

the country. what i don't think it's always captured in our political debate is the vast majority of people are just trying to do the right thing. people are basically good, and have good intentions. sometimes our institutions and our systems do not work as good as they should. police es, you have a department that has gotten into over periods of time. offer practical solutions, i think people want to fix these problems. this is a situation where good seeing somebody choked, and dying. i think that troubles everybody.

so, there is an opportunity for to come together and take a practical approach to these problems. i guess that is my general theme for the end of the year -- we have gone through difficult times. your job, press, to on all the mistakes that that ade, the bad things happened, crises tthat look like they're popping. and, i understand that. but, through persistent efforts the american people, things get better. has gotten better. our ability to generate clean energy has gotten better. we know more about how to educate our kids. we solve problems.

ebola is a real crisis. you get a mistake in the first case because it is not that has been seen you fix it. you have some unaccompanied at the border -- it may not get fixed in the the new cycle, bbut it gets fixed. what i hope, aas we reflect on the new year, is that we generate some confidence. america knows how to solve problems. when we were together, we cannot be stopped. now, i'm going to go on vacation. thank you everybody.

>> u. s. policy toward cuba was the of the topics that president addressed. following the recent release of usaid subcontracted out and growth in cuba. a cuban prison since 2009. that with gross' statement after his return to the u. s.. >> this is great.

to say -- happy holiday season to all of you. day of the first hanukkah. guess so far, it is the best tonic of that i will be a long time.in what a blessing it is to be a citizen of this country. thank you, president obama, for have done that you today and leading up to today. to acknowledge pics coordinate efforts of my wife, judy. 44 1/2 years we've been married. lawyer and personal moses, scott gilbert.

and their efforts to restore my freedom. they had my endless gratitude, love, and respect. the relentless and often intense efforts of duty and and t, the partners llp law es of gilbert right now -- e are they made me take my jacket off, is that i had to take it off, has reeser of capital hill been inconceivable. leahy in atrick vermont has been instrumental in today. i want to thank all the members sides of the n all aisle. or visited me,

subjecting himself to my ranting, and help me regain of my weight, even in cuba. to all those who tried to visit me and were not able to, thank you for trying. i am at your service as soon as i get some new teeth -- i hope they will be sharp enough to make a difference. the washington community, howard in particular, all directors and staff who participated in synagogues and schools, and and r jewish, christian, muslim organizations, god bless you and thank you. it was crucial to my survival to know that i was not forgotten. your prayers and your actions

have been comforting. to my extended family, especially my sister, my our ins, my friends, shabbat crew, and so many others, thank you. i do understand that there many others who actively securing my in am only of whom i nominally aware. promise i will share some more personal gratitude, as soon as i know who you are. ultimately, the decision to secure my r and release was made in the oval office. to president obama, and the staff, thank you. in my last letter to president obama i wrote that despite my tenure in captivity,

i would not want to trade places with him, and i certainly wouldn't want to trade places with him on this glorious day. five years of isolation not need anding, i did cognizant fings to be of incredible challenges facing our nation. i also feel compelled to share my utmost respect for the people of cuba. in no way are they responsible for the ordeal to which my family and i have been subjected. to me, cubanos, or at least most of them are incredibly kind, generous, and counted. it pains me to see them treated of unjustly as a consequence

two governments' policies. history shows us that such does not result in a right. i'm hoping that we can get these belligerent policies. i was happy to hear what the president had to say today. it was particularly cool to be sitting next to the secretary as he was hearing about his job description for the next couple of months. in all seriousness, this is a game changer, which i fully support. in the meantime, i ask that you respect my wishes for complete and total privacy. a judicial lesson i've learned from this experience is that freedom is not free. as personified by scott and her the , we must never forget moses' covenant

-- freedom and responsibility. i'm incredibly blessed to have the freedom to resume a positive and constructive life. a r now, i will close with quote -- it is good to be home. thank you, and i wish you all a happy holiday season. i support the president. thank you very much. >> happy hanukkah. >> happy hanukkah. >> florida republican senator marco rubio opposes the obama administrations changes in policy toward cuba, saying, the normalized d not relationships with cuba until

it has a democracy. for being here. as a descendent of cuban has grants, and someone who been raised in a community of cuban exiles, and a man who cares deeply about the the cuban people, -- one of my greatest hope is to see the people of cuba live freely. it is for those reasons, that the announcement today by the present is so upsetting. the white house gains no the itment on the part of

cuban regime for freedom of speech, elections. no binding commitment was made. no commitment was made to allowing the establishment of parties, or even begin the semblance of a transition to democracy. in exchange for all this concession, the only thing the do an government agreed to free 50 political prisoners, aand allow the united nations and the red cross to allow conditions on the island. the same organization that did nothing last year. this entirely policy shift announced today is based on an illusion, a lie. the light and illusion that more access to commerce will translate to political freedom for the cuban people. all this is going to do is give

castro regime -- which control every aspect of cuban opportunity to changes to these perpetuate its power. only result s will a government for abused s shamelessly human rights, but it will not lead to assistance for those who writes are being abused. it is just another concession the obama ey why administration, rather than a universal every right that our country was founded for. changes , what these

will do, they won't tighten this regime's grip on power for decades to come. it will significantly setback of the hopes for democracy the cuban people. i am overjoyed for alan gross and his family. and prayers are with him his family because he was not just a prisoner, he was a hostage. but, this president has proven today that his foreign-policy than naïve -- it is willfully ignorant of the way the world works. this administration just last week finally agreed, after of congressional pressure, to impose sanctions on the venezuelan officials for violating human rights. our government that has spent of 2014 by only imprisoning

his own people. the cuban government is influential at the highest the venezuelan regime. is s policy contradiction absurd. it is disgraceful for president, who claims to human re human rights and freedom -- this president is the single worst negotiator that we have had in the white house in my lifetime. he has basically given the cuban government everything it has asked for, and received no assurances of advances in democracy and freedom. let me close by reminding everyone that god bestowed on the same people rights as every other man and that has lived -- in are in le rights that our founding documents. cubans look to americans for us to stand up to these rights.

to our commitment to life, liberty, and the pursuit of happiness. these rights exist not just for those born in the continent of the united states, but to people everywhere. it is unacceptable that the in this hemisphere who do not know democracy, and have not known democracy for over five decades, are the people of cuba. overriding be our objective -- do all we can to bring about political and democratic openings in cuba. then, free cuban people can decide on whatever economic model they want. will easures taken today do nothing, and i fear, it will significantly set them back. this president, and as a magician, have left the people -- let the people of cuba down.

>> you might have some things here about what you think will happen. seen other foreign-policy, and those things worked out pretty well. the cuban regime better than the president does. this is a regime that manipulates every concession that this country makes to its advantage. what we open up travel for the united states, they allow them to leave this country but leave their families behind. when groups travel to cuba, they deliberately staged events people to see, and deny access to others. a ey even have state-sponsored opposition, so

they can put up the façade to the world that they actually have opponents within the country. again, the cuban government has manipulate concessions given by this country. the number one goal of the cuban regime is to remain in power. anything that we do will return mechanism for holding power. will never overnment allow for changes on the island affect the power. the ou call the present worst negotiator -- what can congress do in response? sense is that i will be the chairman of the western hemisphere subcommittee on foreign relations. i think we will have a very couple of g next years on how you will get an embassy funded.

the exchange with the cuban five -- what is your reaction to that? >> i'm glad the alan gross is back. he never should've been there to begin with. let me take this moment to point out something that the president said that is factually incorrect -- he's executing people do not have to modern technology because the u. s. embargo, that is false. the reason they do not have access to ttechnology like smart phones, is because it is illegal in cuba. the reason alan gross was taken hostage was because you try to help a small jewish community to that to have access equipment.

say that the cubans do not have access to technology because of the u. s. embargo is false. the other thing i would say -- government controls that net -- this notion the cuban government will like cuban people accept whatever website they want is ridiculous. my last point is -- i'm glad with his is back family. when we ys skeptical exchanged by four americans -- that a troubling precedent.

[speaking in spanish]

>> i'm curious what you tell folks. have any news today influence -- i think the points, influence and it has is on the release of mr. gross, which i have not criticized. i think the people of cuba to say the same chances to have democracy as the people of argentina have had, as the people of italy have had. i hope people with that press each on the world stage take of the causes of freedom and democracy. the cuban people are the only people in this hemisphere that is not been able to elect a last 50 years.

it is outrageous. and for this government, and up ack obama, to give unilaterally everything iin exchange for something other than democracy is unacceptable. you just mentioned the issue the president unilaterally giving up concession. >> we will study very carefully whether any of these measures contradict the law, with regards to the cuban democracy act. i would say that many of the changes made today fall within the purview of the presidency. my criticism are largely based are he fact that these unwise decisions. the fact that i now know that this will make the date democracy comes to cuba even further away. what will happen here is that

they will utilize these changes to create more wealth, more funding for the repressive regime. american companies will become the cuban ted in economy, and in a few years, hear congress lobbying. bill we tried to pass a passed a law in china, my office had phone calls of chinese company thing back of. have rather seen an ordinance? >> according to the white house, they do not go hand in hand. according to the white house, on gross was released humanitarian matters. that is a separate topic, which

in my abilities to discuss in depth. suffice it to say that the three spies were in u. s. custody were not denying spies were going around with newspaper clippings -- they were directly involved with the the murder nment and of american citizens. obama alluded to americans, most of them in your hometown in miami, saying that they accept normalized relations. that is quite different from what you are saying. how do you explain younger generations that agree with mr. obama? >> part of it is because -- look, this is not a political thing. i don't care if 99% people care that we should normalize relations in cuba.

we till believe that before normalize relations that we had to see steps towards democracy. also say that we share the goal for freedom in cuba -- we may disagree on the tactics, in we share our interest the goal. increase ng to remittances, and in exchange the only thing tthat cuba will do is release that the political prisoners. let me be clear, i am in favor of normalizing relations with cuba, but for that to happen, cuba has to be normal. the data cuba becomes a a democracy, or take steps towards becoming democracy --

that they clearly is not today. >> you were told that the administration would not move support of hout the did ress, how much administration tell you? >> i was aware of these measures last night, not by demonstration. at the to not discuss time because i did not want to imperil the safety of mr. gross. i understood he was in route. i was not consulted by anyone in the administration until am this morning, when i received a call by mr. kerry. they are ed that being incredibly naïve on the impact of this will have in cuba.

the notion that somehow this will lead to a second cuban as a result of the fact that cubans will be able more products from the u. s. is ridiculous. i know the regime's true nature. changes will change nothing as far as the cubans behavior. >> you are saying that congress was not consulted? >> i do not know if other members of congress were consulted. was not consulted before the decision was made. i spoke to no one in the menstruation until 10 am this morning. >> in 2016, what does this mean? >> i am not discussing 2016 today. i would just say, as part of the issues that we can do in congress, we will do everything that we can.

it is something i'm personally committed to being a part of. by the way, i'm also committed civil liberty, freedom, and democracy in venezuela, north korea, iran. cuba is close to home for me. both because it might heritage and the community that live in. i know literally hundreds of people who have lived under the repressive regime. i know firsthand how this repressive regime manipulates families. i know what they're capable of doing to people who speak out against the regime. none of that will change. the measures taken today will do absolutely nothing to change that course. [speaking in spanish]

>> i just want to ask about how are to blocking of an embassy. the fact that majority, s have the to have the sense that it will be blocked? >> i am committed to doing that. it has obviously to spend a few hours since the announcement has been made, believe me take this very seriously. it is the role congress to provide oversight on these issues. the president's job is to

execute policy -- time and has forgotten that. prepared to use the majority in congress to unravel as many of these issues as possible. i do not have animosity for our demonstration, but animosity for the cuban government. [indiscernible] i've no idea. quite frankly it is irrelevant. as i told you earlier, i do not care 99% of people disagree with my position. this is my position. i'm glad that i'm on the side of freedom and democracy, on the side of human rights. i hope we can have a majority in congress to overturn the changes. aid today -- nt

to you disagree with the statement of the policy of the past five decades have not worked? >> i think we should increase the measures that we've taken against cuba. the year, a ship that left panama canal was intercepted on that boat were goods were embargoed -- the u. s. did nothing. this government has been slowed to criticize cuban human rights violations. this government accepted cuba's of the americas iq of summit put - a together to defend democracy, include a dictatorial regime, like cuba.

this argument of embargo has not worked, it sounds good on paper. but, just because we change our policy in cuba does not mean the cuba will allow us to do that we want. potentially be more american telecommunication companies in cuba. but, who the people be able to call, or what they will build do an internet will be controlled by the cuban government. yes, more trips will be allowed, but that will be controlled by the cuban government. to will all be controlled their benefit. they will not agree to anything grip on tabilizes their power. these sorts of -- [speaking in spanish]

answer that question -- it's on the cuban list of state sponsors on terror. a think the north korea is terrorist government, whether kidnapping movie starts, it is a terrorist government. last year, in the panama canal, intercepted cargo to havana, that sounds like terrorism to me.

do not know why the president the that they will review list -- he said it made no sense for cuba to be on the list in the 21st century. >> can you talk with the congress of this taking action? lift is congress will not the embargo. thank you. >> in a speech to the nation, raul castro ent reiterated his nations commitment to retaking relations.

this was done on the same day down gross was released to the united states. >> my fellow countrymen, since election to the president, i have reiterated on numerous occasions our willingness to of ntain with the government a respectful ates dialogue based on the principle in order ign equality, to address a wide variety of in a reciprocal manner, detriment to the national, independents, and the self-determination of our people. by the u.s. essed publicly and th

privately -- to the u.s. government both publicly and privately on several occasions during our long-standing of uggle, with the aim addressing and resolving our differences through negotiations. without renouncing any of our principles. the heroic cuban people have of serious he face aggression, adversities, and sacrifices, has always l and been faithful to the ideals of independence and social justice. strongly united throughout the 56 years of revolution, we maintained our unswerving

loyalty to those who fell in defense of our principles. dating back to the beginning of our wars of independence in 1868. currently, despite the difficulties, we are now the task of updating our economic model to build a prosperous and sustainable socialism. as a result of dialogue at the highest level, which included a phone conversation that i had with president barack able to e have been in resolving some issues of mutual interest for both nations.

fidel promised, in june, when he said -- they shall return. today, herardo ramon and antonio have returned to our homeland. joy of their families, and of all our people, who have tirelessly fought for this goal, is shared by hundreds of solidarity groups, ees and governments, parliaments, institutions, the individuals who, during

last 60 years, have conducted continuing and under relentless efforts seeking the release. we convey our most profound commitment to them all. decision obama's deserves the respect and recognition of our people. i wish to thank and a knowledge support of the vatican. support ticularly, the of pope francis, and his efforts for improving relations between cuba and the united states. the uld also like to thank government of canada for facilitating the high-level dialogue, undertaken between both nations. turn, we have decided to

to the and return spy of cuban aa origin, who was working for that nation. and for ion, humanitarian reasons, today we returned, to his country, the american citizen, allen gross. unilaterally, as has been our adherence nd strict to the provisions of our legal system, the prisoners concerned have received reduced sentences, that includes the release of these individuals,. and that the government of the had expressed interest in.

to renew lso agreed diplomatic relations. in the way, means that matters have been resolved -- the economics, trade, and financial embargoes, which have led to enormous human and economic damage to our country, must cease. although the measures of the embargo have now been codified the law, the president of united states has the executive to modify its implementation. we propose to the government of states that it

mutual steps to improve atmosphere, and work towards normalizing between our two countries based on the principles of international law the united nations charter. reiterates its willingness cooperation and multilateral entities, such as the united nations. acknowledging our profound differences, mainly in related to national sovereignty, democracy, human rights, and foreign policy. i reassert our willingness tto

dialogue on all of these issues. call upon the government oof united states to remove the obstacles hindering or between our ties citizens amilies, and of both countries. those restrictions related to traveling, ddirect postal service, and telecommunications. that has been made that it xchanges shows solutions e to find as we have llenges,

reiterated -- we need to learn the art of coexisting in a civilized manner with our respective differences. we will continue to talk about these important issues at a later date. thank you very much. president also spoke yesterday about restoring relations with the u.s. in a televised speech before the u.s. parliament, saying this is a newchapter in u.s. cuban relations. but he also confirmed that cuba relations were not and the communists ruling in cuba. and that all issues would be on the table and reestablishing diplomatic ties. you can read more on this from the "new york times". and on fox news sunday this morning, senator ben cardin was asked about castro speech.

you that i can assure we will ccontinue to point out the faults of the cuban system. and we will speak out against human rights. is clear, the more that americans interact with humans, the more the cubans will realize that their current system is failing them. and will want the benefit of a more open society. that, i think, is clear. our we will stay strong in message on violations of human rights. allen gross is now home with his family, that is an important step. the commitments given by the cubans, we will see how to carry them out. so, we have moved on to a new chapter. we're looking forward rather than back, and i think that will be good for the cuban people and the united states. >> gentlemen, let's take a number that i suspect you can argue both ways -- and that is the number of prisoners in cuba.

that has risen to four times as many. why reward a dictatorship that, the last few e in years, has become more repressive, not less so? >> indeed, why continue a policy that has not brought about change. the number of political prisoners is outrageous. it is hurting cuba. we know that. if they do not open up their society, the people suffer. continue to oing to speak out, with regards to the faults of their system. normalizing ion of relations with cuba was one of at a opics discussed recent event. also outlined president obama's economic agenda, and talk about the north korean cyber attack against sony pictures. speaking for about 50 minutes.

and gentlemen, please welcome chief correspondent, ben white. [applause] >> good morning, everybody. you for coming out. ben white, chief correspondent and author of the morning money loose letter. which, hopefully, some of you read. thank you for everyone who is tuned in to the live stream. we are delighted this morning jeff zients with us.

i want to encourage folks to send questions via twitter. before jumping into a program, i would like to thank him the peterson peter g. foundation. we really appreciate that. i want to thank everybody who has come out to these events throughout the year. here to say a few words for the foundation is loretta ucelli, the president of the peterson foundation. >> thanks, ben. good morning, everyone, and thank you for coming. mentioned, i'm loretta ucelli, and i'm with the peterson foundation. we are a nonpartisan whose mission is to raise awareness and accelerate action on the nation's long-term fiscal challenges. and elieve that a strong solid fiscal foundation is an

important ingredient in achieving and maintaining a prosperous and healthy economy. we are concerned that, short-term deficits fiscal er, our long-term path remains unsustainable. is to bring mission folks together, like we're to ng with ben this morning, have serious and substantive discussions about the direction of these issues and policies. delighted to be this ng from jeff zients morning, who is at the center of all these issues. again, thank you for coming. and thank you, ben, for being such an engaging host and moderator. thank you. >> okay, let's not waste any more time and bring out jeffrey zients.

>> a proud graduate of the saint albans school in washington dc. >> thank you. thank you so much for coming is a busy newsday. i was saying backstage, we are that when the president goes to his vacation, we can a rn the new style down little bit -- dial down a little bit. thank you for joining us. i want to ask you about one of the big new stories of the day, pictures polling " the interview" movie. it strikes me as a major history moment in the of this country, that a major hollywood studio has pulled a due to cyber lm terrorism -- state-sponsored cyber terrorism. a couple questions. one, how will the government respond? how can the government respond to that in a way that shows it won't be tolerated going forward?

and how big of an economic are we long-term, looking at on corporate america by state-sponsored cyber terrorists? >> the president spoke to this last night, and, clearly, this is a serious situation. if i go back to where i was before and government, i spent all my time in the private sector. role of a ceo, it is to think through what are the risks of the business. depending on what industry you business you are running, thinking through cyber and what are you doing to ensure that you have safeguarded your network is top most ld imagine -- ceo's list. you know, the president hhas led on this effort. we have a single point of contact at dhs, now, for cyber incidents.

which didn't exist before. we're working very carefully with the private sector on our infrastructure. areas like nuclear power plants, and at the same time, increased information sharing between the federal government and the private sector. that said, we do need legislation. the president proposed legislation in 2011. congress has not acted on terror security legislation. that ed legislation encourages information sharing, time, provide e greater protection in terms of liabilities. is an important area of focus, and one that we has to be very vigilant. >> in terms of a government with the do you agree notion that something like this by the north korean government cannot go i responded to? >> i think at this point, it is in the hands of the fbi. i believe it is the fbi to confirm who the actor was here. and what the legal next steps

are. >> and just in terms of quantifying the economic threat from america faces now actions like this, i mean, i think that the hollywood community is taken aback by to do this -- n to back down in the face of cyber terrorism. a ceo, experience as and also new role in the government now, how big of an economic threat is this type of cyber terrorism? and are we likely to see more instances like this, were state-sponsored cyber are able to achieve their goals? wrong focus is on what is the economic potential in the future. i think, right now, the focus get ahead n we do to of this, and to protect their networks. be ry company needs to investing in cyber protection. and as i said before, we're

doing what we can within the authorities of the president to protect federal government assets, and to work with the private sector. but in order to take this to the next level, we need legislation. >> let's talk about the cuban is little bit. the president announced yesterday. a lot of people and moving towards relations with cuba and opening an embassy. talk to us a little bit about what he can do in terms of opening up economic ties between the two countries, without congress removing the embargo. >> right, so as you said, this is not a lifting of the embargo. time, there are opportunities to work commercially and focused areas, including agriculture. including and supporting residential construction. also, importantly, in opening up more, broad access to the internet in cuba. which will be good for the citizens of cuba, and also for potential entrepreneurs.

these are historic moves as -- you know -- change in strategy. a 50 year strategy that clearly needed a revisit. as you point out, there are some economic opportunities -- targeted, economic opportunities. to the do you respond criticism -- one place i read it most clearly articulated was the "washington post" -- arguing that the castro regime close to its last legs -- tthe lack of economic support, of oil prices -- and that these liberalization to simply pour more money into their pockets, not really advance more cause of the cuban people. and that, given more time, the path that we are on possibly -- >> i think after 50 years, in any sector you revisit your strategy. which is what the president talked about yesterday. believes that ent

yesterday's actions will lead to a more open and free society. as i talked about just a second ago, there are targeted economic opportunities for u.s. companies here. >> let's talk a little bit about the russian ruble collapse, and the impacts, if you see it, and the united states economy. and, generally, destabilization of the russian economy. a lot of economists say it is relatively minimal the exposure we have to that. what is your view on the impact that they could have. at the potential for a potential crisis? >> so, we are monitoring the situation carefully. as you point out, our direct terms of our relationship with russia -- is pretty minimal. the sanctions that -- that have been put on the russian economy working in close

correlation -- the sanctions were very targeted. targeted in a way to have russian certain sectors, including defense aand energy. and at the same time, to minimize the impact on our own economy. and on the economy of our european allies. the sanctions have had an effect. importantly, they are targeted in the russian leadership and its policies. goal here, not to impact the russian people. the drop in crude, which is unprecedented -- they don't talk about the positives of in the global .s. economy, but that has had a negative impact on russia. watching that market sure that nd making we are tracking any potential

the global to capital markets. >> to get to the impact of oil -- the macroeconomic outlook in your view on the potential for economic growth in 2015. but before, i want to talk about the omnibus. we all know, in this room, is president of funding bill tto fund the government to september -- without homeland security. the big question among the democratic left us -- why sign it included the rollback of part of the derivatives push out under dodd frank? okay her terms, making it for banks to keep reserves. a lot of outrage on the left, in terms that it was a bad deal. why did the present time that deal?

>> i think the bill is a compromise. it funds 11 out of the 12 pieces of government for the full year. it is really important to have certainty in washington. if you go backwards and look at consumer confidence or business across last several gradually have had a upward sloping line; however, we have had three or four tips. each of those dips is a fiscal related to crisis -- or a potential fiscal crisis -- in washington. whether it was debt ceiling, shutdown -- fiscal cliff. each dip. if you look back across the last year or so, we have had none of us. that is why we have had good economic growth.

had more job creation in the first 11 months of this year than we have had in any year since the 1990's. unemployment is down to 5.8%. we're starting to see some early signs of wage growth. so, importantly, we avoided a self-inflicted wound here. deal is not perfect. it is a compromise. in the deal -- early g for ebola, childhood, advanced manufacturing, creating hubs across the country to advance our position in manufacturing -- which creates good paying jobs. there are parts of the bill that we don't like, and you mentioned one of them -- the swath push out. that is not something we were in favor of. we also didn't like the campaign-finance change. but lifting up and looking at we thought the compromise was better than the

alternative. they might lead to economic to ues that we don't need pace for now, as we continue to make progress. the other alternative could a kick the can. as a benchmark how he did in this compromise versus projecting forward to it that might have looked like, we thought this was the right path. >> coding you have said to negotiators, look, this is mostly good. this last provision is unacceptable. take it out and send us that bill. republican seem to create a lined to shutdown scenario, and that their and game was essentially get to next year -- i don't want to -- i don't want to in any way minimize that we did not like that provision. we didn't want that provision in their.

so it was lifting up and looking at the whole situation, and benchmarking, as i said, we can shutdown -- which all agree would have been an also outcome -- but benchmarking versus what i think begin the default position. that we have a short-term crfor the whole of government, meant that we would've spent the next several months having another negotiation. who knows whether he would have come up with a compromise that was as favorable as this compromise. i mentioned that there are several good things in the for your funding bill, and at the same time, some things you don't like. but the overall evaluation here was that this bill, while a compromise, was better than the alternative. >> i want to talk about the potential for some of these fiscal crisis to recur next year. i think you're absolutely and t, you look at the dips confidence that occurred after each of the last few crisis is. you obviously have

republicans in control, but at the same time, they'll be a number of things coming up -- the homeland security needing to be funded. there are a number of issues at t could come to a head the same time. crisis we avoid another next year when republicans are, presumably, going to demand some reductions in spending? shouldn't we expect that we'll more crises next year? >> i hear from businesses across the country -- small entrepreneurs, large businesses -- hhow important it has been in the last year to not have these dark clouds. i think, and an act and what is has y this, that the hill learned that lesson. we're hopefully exiting a. of the wounds -- a ed period of the self-inflicted

wounds. remain optimistic that we lesson of ed the those dips and confidence, and that there is momentum in the economy. i mentioned the job growth earlier. and, you know, if you look at in the global leadership the position we have analysts that we are experiencing from a we are teed ices, up to have continued progress in 2015. i think that leaders hopefully understand the importance of doing a business, having these unnecessary distractions tto the economy. >> let's talk a little bit about your view on the economy more broadly. throughout the obama presidency, it has been a series of, you know, good moves forward, and then a couple steps back.

i we had a point were finally, president can take some making a sustainable economy? wage growth has really been the thing that has kept people sour -- the lack of median income increases. i we going to see that move faster, which will make people feel better? what does 2015 look like to the white house? of all, i think -- i have benchmarks this before, and i'll do it again. in terms of the president's performance and economy. if you look at our situation versus other advanced are now 8% above our pre-crisis peak on gdp, whereas europe is 2% below. we have created, or put more in the u.s. to work

then all advanced economies combined. if you unpack the 320,000 jobs that were created november, there is good news underneath. and that the fastest-growing well-paying sectors like manufacturing and business services. jobs are low going actually those were growing at a negative, shrinking percentage. in areas like retail and hospitality, which tend to be lower paying jobs. so the mix is very encouraging. we saw an uptick in wages, as you mentioned. several decades old problem of stagnant, middle-class wages. we have a lot more work to do and we need to -- there, need to make appropriate investments in training.

and take a look at training that can retrain people for high-paying jobs in very short periods of time. invest in our is really ture, which a twofer in that it puts people back to work and good paying also set us up for competitiveness in this global economy. i mentioned manufacturing, we are bringing together hubs in areas across the country to focus on partnerships -- companies focus on gether to breakthrough technologies where we can be the leaders in those technologies. not only creating the technologies, but commercializing them and manufacturing them. manufacturing jobs take 30% more than other jobs, and they have a great spillover affect into communities. thirds of manufacturing --

two thirds of research and developing jobs are associated with manufacturing. searching that we have manufacturing here in the u.s. is important. >> you are talking about that it was funded in the omnibus, right? >> the president started this a couple years ago -- piloted them by executive action -- and they have been very successful. we have now lost eight of these hubs. in the full your funding bill, the manufacturing hubs have been authorized by congress. so they have gone from an executive action to becoming law. >> there's lots we could talk about in 2015 and significant legislation coming out. let's take a break on that and get the story little bit. of people know you, some people probably don't. a washington area native. tell us where you grew up, we went to school, and how you up a new job -- wound up

in your job. >> i grew up here, just outside the beltway. i left to go to school at duke, and then straight to a company that i didn't talk a lot about a period of time. >> no hisses -- >> know, but i had a great experience at dane. i had a couple entrepreneurial opportunities, one of which brought me back to washington. went back into consulting for a year or so, lucky break and joined a fellow names david bradley, who started a company about a decade earlier. the heavy e entrepreneurial lifting of figuring out a business formula. were about 100 people, and it was a company called the advisory board. we oss the next 15 years, turned that into two companies.

same thing, hly the prescription-based research. headquartered here in d.c. and we now employ, between them, over 5000 people. are independent, public companies. so i was lucky enough to be the chairman of both companies when they went public. i have never stepped foot in the federal government before. i walked into the office as the deputy for management and the chief performance officer. so bringing some of my private expense to federal government helped the federal on ernment ketchup technology and -- catch up on technology and productivity. and i feel it has been a real into lege each day to walk the white house aand be part of the team that is working on important issues. >> and do so to sell yourself the t by not talking about saving of healthcare.gov, wwhich is been a little bit of

time fixing on. speaking of that, do think it is working well now? >> by all accounts, when i -- when the president asked me to come into the healthcare.gov, wasn't when the website working pparticularly well. due to a great team effort, many people from the private up to the plate -- dropping everything at coming out and spending all day and all night 60, 90 days -- we hadn't had a general contractor. we set a deadline, pretty aggressive deadline. the team came together and we accomplished a lot in a very short period of time. and made this website function at an acceptable level. across the last year, there has been a step function in improvement of that website, both in terms of its capacity, its reliability, and its consumer friendliness.

by all accounts, the website is working extremely well. 2.5 million people are already through the site in the past 30 days or so. >> also, some debate about proper pronunciation of your last name. have i pronounce it properly >> perfectly. >> okay, very good. >> it rhymes with science. healthcare, though, -- [laughter] >> well done. >> on healthcare, i think it is component of tant our society. if you look at what is happening with the affordable care act, the results are remarkable. have more people insured, cutting the number of uninsured by 26%. and at the same time, healthcare costs are going down. the lowest healthcare decreases in 50 years.

premiums are running at half the level of increase versus historical. so if you step back and say president at was the trying to accomplishwith the affordable care act? things -- do two increase coverage and lower cost. both are happening. >> let's talk a little bit next year in congress. particularly tax reformentry deals. you, obviously, have a different environment with republicans running the show on both sides of the aisle. do think there is a realistic prospect for corporate tax reform that would lower the top rate? can you put together a package that would be acceptableto liberal democrats, progressive democrats, who are very wary of lowering the top rate and losing revenue from corporations, and giving a hand out to corporate america? it realistic to thinkthat we

could get something to? >> you know, i do think that we are gearing up for what will be a productive 2015 on legislation. and, you know, the president been very clear -- there will be places where we don't agree -- democrats, president, and republicans don't agree -- but there are places where we do. from an economic perspective, we look at areas where there is that general agreement. not maybe at the level of the top line, ut the general agreement. where -- and where making progress are getting will improve the economy, move the dial for american workers. if you look at that could ection of what potentially get on and what in a meaningful

way for the economy and the middle class, i think there are three things that come to the top of the list. a good trade agreement. for a good set of trade agreements. second is business tax reform. and third is the tax reform links to funding infrastructure. advantages bout the of infrastructure earlier, that at both puts people back to in well-paying job and it sets up our medium and long-term competitiveness. let me go a little bit deeper on business tax reform. optimistic that we canmake real progress here is that if you look at the present framework for tax reform, there is remarkable overlap. it starts with -- at 35%, we have the highest statutory rate. by having that down

tech expenditures, and reduce it to somewhere in the 20s. plans have that somewhere as the first piece. right now, we have a global tax that if you h means are operating in different country, that means you are paying 35%. that is one system. another system is a territorial where you only pay what the tax credit is in the country that you are operating. the territorial red sort of bottom, a race to the as countries compete to have companies located there. what the president has in his framework, and the former chairman has in his, is a hybrid system. where you set a minimum rate, and if you're paying more than that in a country, you do not know anything else. if you are paying less than that, then the difference between that minimum rate and the rate you are paying in the different country, you owe that to the u.s..

both the chairman and the president have this minimum tax proposal. and the third piece is that there's lots of money -- up to $2 s are trillion -- is tracked overseas. that is not good for our economy to have that distortion. have a one-time toll-free at a lower rate to bring money back. both proposals funded infrastructure. a long-term, reauthorization of infrastructure. so that overlap in the framework makes me quite optimistic. these are not your deals to do -- where in the 20 mac or is it? what is the level so that? those are negotiations. and we all know that getting deductions or c

loopholes -- it's one of those has a strong interest special group behind it. it is not an easy piece of business, but as a really important piece of business. that could bring more companies back home. the u.s. is now the number one you e in the world -- when survey global ceos -- to invest. ceos of nterview manufacturing companies, over half -- 54% are looking to bring facilities here. we need to continue to create an environment that encourages that investment. that encourages that in sourcing, if you will. and get our corporate taxes some to be competitive. >> is there a place where the president can make a deal on things, mainly with the

republicans, that maybe democrats are not -- >> anything that needs to get done here will need to be bipartisan. present dard that the will have here is -- is this the american middle class? of corporate tax reform -- fund infrastructure, that is good for american workers. >> same calculus will apply to the trade deals. does the president expect to get trade authority from congress? and, if he does get that, can you post to the european an that trade deals in a way is both economically beneficial to america, and also raises wages? >> right, those trains are done with authorities -- trades are done with authority. we hope and assume the authority will be an early area of focus for congress. the same time, under mike's

leadership as the u.s. trade representative, there has been significant progress on the transpacific partnership. it covers 40% of the world's gdp. these are fast-growing countries. given our competitive our ntages in the world and competitive position -- and the fact that we have been getting good trade agreements in place -- will get good jobs. it is also important for strategic regions. there's an opportunity here to engagement on for labor, on environment, on intellectual property. this gives us an opportunity to do that, to set the standard. if we don't do it, someone else will. so it is a very important part, geopolitically, to get tpp done. now, the tpp as far along. the president did a meeting on

this when he was in china in november. as i said, he is very active. 1500 meetings they have done on the hill. the hill is fully engaged. at the end of the negotiation, to the hard issues. that is where tpp is that. >> okay. let's talk a little bit about what seems to be, and will probably arise in the next as tension between the business friendly wing of and the democratic wing. it is senate, right now, on a couple of issues. one being the swaths issue, and the nomination of antonio. warren has senator come out very strongly against his nomination. even some republicans were on the fence.

i want to know why you think it good idea to nominate a wall street investment banker for this particular job at treasury. it, and would bring to does it unnecessarily exacerbate these tensions is hin the party whether it too close to wall street. gotten to w, i have know antonio across the last year or so. he is an incredibly talented individual with great values. and with, i think, great relevant experience. when you are putting together a team for company, you think a broad set of experiences and skills and talents. i think the same applies in government. so when we have our team at the i tional economic council, think it is very much the same thinking at treasury. in a people from different backgrounds.

people of academic backgrounds, people who have served in government before, maybe some in ple who have not served government before -- people financial expense, lawyers. i think antonio is a great member of the team. and to bring 20 years plus of treasury is o the obviously valuable. i hope he gets a fair hearing. mean, it true that -- i the view that at the treasury now come you don't have that experience of financial markets. there is a lack of understanding of financial the treasury right now. high-level expertise and relationshipswith people who buy our debt -- and management of that debt -- that he would

fill that spot where there is a hole. >> i would not describe it as a hole. i think it is a very experienced team, and they have been through a lot. they can handle any situation that might arise. having somewhat of antonio's and talent and commitment would be a great addition to any team. >> on the dodd frank front, i a twitter question -- when they cut some other provision, whether also be a cost of business -- will that also be a cost of business? this agreement is jjust the a series what will be of changes to the law that icial to wall street

is, potentially, damaging to the long-term safety of the system. always seeing the first chink in the armor? >> no, no. that will not be the case. the president will not allow for dodd frank to be watered down. we have made a lot of progress. have now $5 billion capital on their . are much sheets we less -- there are much higher margin requirements. so we are going to continue on dodd frank -- to push very hard on dodd frank. >> there are significant dodd water changes that would it down -- .hhe would send it back to congress >> right. >> i want to talk a little bit about your relationship with business and wall street. there was a lot of criticism in

the first term that the obama not have ation do great relationships with corporate america. that they do not have an emissary that can speak with ceos in a way that you do. did you view that as your role when you came in? how to go about -- what is your of edule like in terms talking to executives and having a dialogue between the private sector and the white house? >> i think it is my job -- were help improve as to government operations and to improve productivity. if you think about the private sector, year over year, productivity gains of 1 1/2%, 2% -- that compounds over decades to major productivity. productivity is both costs, and improving service quality. those two are correlated in all parts of productivity. great measure t a of productivity in the public

sector. gains are probably about a third of the private sector. so we have the private sector with these productivity gains, and the sector like this. that creates a productivity gap. our job is to close that productivity gap. know that it is incorrect to always lead with technology as the answer. that said, technology has been at the center of productivity gains and, therefore, closing is essential to that. closing that goal of the productivity gap and getting better technology -- put my first roll, i together a board of advisors coming from the private sector were leaders in technology and productivity. helped to bring corporate's best practices to governments to close the productivity gap. in my current role, we are all

do we create more well-paying american jobs? you have a , when problem -- revenue is not doing going to hoped it was do -- the first thing you do is you kick your team at the door and say, go talk to customers. visit new countries. know, in many ways, business people on the front lines are our customers. they are creating the jobs. so i think it is really important for all of us in government to be a very close touch with business leaders, entrepreneurs, small business leaders, llarge businesses, international businesses to understand what are we doing that is working. what are we doing that is getting in the way, and how we can fix that. and what opportunities are missing. i make sure we are interacting on the e folks were

front lines creating jobs, and the -paying jobs for american middle classes. >> in terms of that schedule, walk us through a typical day. is a long day. >> especially with white house parties. [laughter] >> it starts early, and last a lot longer than i would like it to. the best way i can think about it is meetings -- either small -one meetings, group meetings -- i would 15% of my ood 10% to time is spent meeting with ceos, to produce, labor leaders. >> do think this will change

the industry in a way -- >> you know, we are not always going to agree. we talked earlier about that there will be areas where you can agree with republicans. that doesn't mean we can't work together. not all businesspeople will agree with. but i do think we are in a very terms of our communication, in terms of getting feedback on what is and ing and networking, explaining our policies. the input is really good, and i we have a good working relationship with businesses of all sizes. >> another twitter question coming in. why hasn't the ustr addressed currency manipulation under tpp? is that something that is a concern? the currency is really the view of the treasury department, so i will defer the questions to the secretary.

>> tell me a little bit more about your sports -- you are a sports fan. do go to the games now? enjoy the camera crazies and all that? >> well, i didn't hit my chest this morning, but -- >> as far as we know. >> i am a duke fan. i grew up a redskins fan. i find that more difficult these days. [laughter] >> tell me about it. but hopefully there will be better days ahead there. >> we have time for an audience question or two. here in the front. >> you spoke about tax issues in congress have suggested that any improvement in the economy from tax reform should be reflected in the score and i'll. what is your view?

one place we agree is that business tax reform should be -- should be revenue neutral. not cost any -- have any impact negatively on the federal budget. we are not believers in dynamics going. we feel like it is not time to change the rules of the game, let's engage in corporate business tax reform in a revenue neutral way. let's not change how we score the budget as we go about that. >> other questions in the room for the director. one in the back. >> thank you. in hink one of the surprises this congress was actually the inability to reauthorize the terrorism reassurance act. i want to know if you had any thoughts about the lapses -- to

see any changes in the construction or development? does that spur congress to move quickly on it, or will they drag it out a little bit? >> this is that terrorism risk insurance. this was meant to be the last piece of business before the senate left town. and we were very disappointed that it wasn't done. assumption and our desire is that congress comes back and first it one of the pieces of business so we don't have a significant gap. >> is there a possibility that if there is a significant gap, and that gap is not filled by that it ate sector, could be this was a program that was not necessarily needed? or do you contend that it is absolutely necessary -- don't remember the exact count, but it was in the 90's in the senate. this is the right thing to do. congress should have done it before they left town. hopefully with a will do it and they get back.

>> one more question here. was 94 nk that vote three. >> the score of the redskins game. [laughter] to upcoming peak veto politics where, in the years, the real leverage democrats had was in the numbers they are playing are 67, not enate 60. so, it changes everything. the republicans taking control. very wise, former staffers -- both democrats and republicans told me, personally, to t it is to your advantage do that early and in a way, like you did cuba, wwhere you surprise people so that they take your threat seriously.

vetoes are powerful weapon, and that will most likely benefit you and the issues you are most concerned about. >> it is a good question. i think that the number one priority is where we can find common ground. where can we compromise, as we full year spending bill. about rfect -- we talk we don't like -- and i think there are areas, as we have talked about, potentially in business tax reform, in trade, and infrastructure. at the same time, and you talked about, you know, any efforts to water down dodd was the tax re extender bill -- which had permanent extensions with very little in it ffor the working-class people. the president made his views

clear that that was not going to he was support. he said, in fact, that he would veto it. within a matter of a day or so, that bill was restructured iin a way that past is a one-year extension. wasn't a $450 billion permanent head to the budget. so, i think that study, i worked closely with senator warren on that at the case study on how it's something if out of bounds for the presence perspective, he will continue to express his views, including if necessary the threat or actual be two of legislation that is inconsistent with his values, which are the values of improving life for the middle class and working americans. >> we're just going to see a cavalcade of vetoes. he is going to send stuff back. >