and you've got another banking system called the government kind of particular working the federal reserve how in the repellers that it has. this one stuffed up we can use the other one to do something which would be wrong in normal circumstances but to try to unstuff what's been done out of the heat on. scramble that huge miss you created and try to get back to the side from a very very bad rotten scam scrambled eggs back to something at least resembling the aig financial system should be so i would want the federal reserve to create money which would within give directly to households and businesses but on condition that if the household of the business was in debt they have to reduce the debt no choice you've got to pay your debt down but if you don't have debt. and you actually maybe on some of those of all the sold by the banks you get a cash injection now with the why this would work through the system and call it a modern dribbling the way it works through the system is that that would then require the banks to write down the value of the loans that go up the assets wouldn't shy because

those two words are federal reserve. how do you reconcile that? >> no, exactly. what i said. $2 trillion a year in stimulus. that's the only reason we're growing at a paltry 2%. that's a horrible equation. imagine what would happen if we did not have all this qe. the fed could do that for another ten years. we'd have a $30 trillion government debt. we'd have a $15 trillion balance sheet. if you want to bet on that, nathan, bet on that. i'm betting on 320 million people doing what people do as they age. they spend less money. the fed's going to only have to stimulate more and more. >> really. the american consumer is fabulous, harry. >> $2 trillion of stimulus, nathan. >> you could have a $2 trillion mortgage on your house if you can afford to pay the debt right now. you're not going to be going bankrupt any time soon. >> nathan, i want to talk to you five years from now. you are crazy. people in a bubble, they never see the bubble. they sit there and say it's fine until it bursts. >> harry, some day the star is going to super nova. if you predict it long enough,

dagen: what about, do you believe this is in large part artificial and juiced by the federal reserve? howetel -- how much credit do you give them? >> it is the same idea there. for someone to buy into the stock market, somebody must be exiting. there is no real effect. i would say the big story about the fed is we see a record high in the dow. what we leave out is how much higher the dow jones industrial and s&p would be if the fed were less activist. dagen: you see so much money flowed out of u.s. stock in the last several years. does the new record on the dow have less of an impact among the general feeling of americans? >> without question. when we are talking about record highs for the dow, we are, for the most part, talking about levels hit 14 years ago. the dollar was worth substantially more than what it is today. measured in dollars, it is not that great. the fed would love us to think they are actually doing something to help the economy. the obama would love to promote this. there is still 12 million people unemployed. dagen: john, good to see you. thank you. charging nearly 30

the 1970s and '80s, the federal reserve adopted long-term policies to halt inflation and ease unemployment. but what would the fed do in an economic emergency? monetary policy -- howl does it work? that's the question economic analyst richard gill and i will investigate on this edition of "economics usa." i'm david schoumacher. the federal reserve board is responsible for deciding how much money the economy needs to grow. in the early 1970s, the fed held to a policy of using the money supply to try to keep the economy on course. in times of inflation, the fed tightened the money supply to squeeze excess dollars out of the economy. in times of recession, it increased the money supply to stimulate growth. but in 1975, the fed, under the chairmanship of arthur burns, faced a new and troubling dilemma -- caught between persistent inflation and a growing recession, how did chairman burns keep the economy on course? by late 1974, inflation had become a serious economic problem. under pressure from rising fuel prices, inflation rose to a staggering 12%. inflated interest rates had driven up the price of mortgages and brought the building industry to a standstill. sales o

reflects the fact that the dovish thinkers in the federal reserve are wondering how much the bond buys are reflecting the real economy. david: they have no intention of stopping. i think you're absolutely right. the effectiveness is certainly questionable. certainly major things that is supposed to expect the fed decision, unemployment or value of the dollar. they seem kind of stuck into a place where they have gotten into it and can't get out of it. >> to some degree, yes, at the same time. there are fewer and fewer policy options at this juncture as well. i think the real issue underneath the real economy the fact we don't have a source what i like to call economic inspiration. we don't have the one engine of growth. in '90s it was a tech boom. when we look around the world it simply doesn't exist. the federal reserve can bridge a gap between periods of slow growth but they can't continue to sustain the economy for years, maybe even decades. it is not possible. lauren: brian, when in your opinion does the fed step off the accelerator and taper off their asset purchases. is there a go

street heavyweight larry fink from black rock and find out how worried he is in the go-go markets, person bernanke and fed policy. the federal reserve is about to release the results of the annual stress test. find out how well the big banks could hold up to the pressure of another financial crisis and whether or not we're going to hear about dividend increases in the next couple of days on the heels of the result of the stress test. d#: 1-800-345-2550 seems like etfs are everywhere these days. tdd#: 1-800-345-2550 but there is one source with a wealth of etf knowledge tdd#: 1-800-345-2550 all in one place. tdd#: 1-800-345-2550 introducing schwab etf onesource™. tdd#: 1-800-345-2550 it's one source with the most commission-free etfs. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 one source with etfs from leading providers tdd#: 1-800-345-2550 and extensive coverage of major asset classes... tdd#: 1-800-345-2550 all brought to you by one firm tdd#: 1-800-345-2550 with comprehensive education, tools and personal guidance tdd#: 1-800-345-2550 to help you find etfs that may be right for you. tdd#: 1-800-345-2550 schwab etf onesource-- tdd#:

how do you position for the moment where the federal reserve just can't take it anymore? osition your portfolio for that? >> i do not want to be the last person out the door. i want to be at the front of that exit line. that would involve a sharp rise in interest rates. the fed owns a huge amount of long-term treasuries. the treasury, meanwhile, is trying to issue long-term treasuries. liz: you are short the 30, are you short the ten? >> no. we would not be short the ted. we may even belong to ten. even the five-year right now looks pretty attractive. people will be looking forward. liz: let me get to yesterday. as he watched the dow finally hit an all-time high after five years of an all-time grime, fingers bloody climbing back up that wall, what were you buying? >> ultimately, it sold off, risk on high-yield still works. now we are trading much more tactically. we will buy the individual issues we like. we will have that put on the s&p. offsetting that stress case scenario. liz: can you guide our investors a little bit? are there particular names out there that you reall

federal reserve and j.p. morgan in managing this economy how does that work well you know i think definitional leave the fed the federal reserve especially the district banks federal reserve bank of new york has a vested interest in making sure that this institution grows that it it remains unquestioned and unquestionable jamie is on the board of directors the new york fed was at the center his term has expired now but yes after he gets fired now he's off it all conflict it was a conflict there's a conflict well we have to remember yes you have public official or see a private bank or the federal reserve district banks or private institutions they're not even part of the federal reserve board their bank owned corporations where at the end of the year most of the money they make goes to treasury but there's a dividend paid out to those banks that own them or the london whale situation they claim that it wasn't it was an accident they're not doing proprietary trading anymore that they're supposed to not be doing proprietary trading. it was a glimpse into the u.c. call reckless endangerment isn't that a perfect ex

federal funds rate. of this guidance will help market participants assess how the federal reserve's interest rate policyly to respond to economic developments but it's broader purpose is to assure households and businesses that monetary policy will continue to support the recovery even as the pace of economic growth and job creation picks up. in their individual projections, 14 of the 19 fomc participants saw the first increase in the target for the federal funds rate as occurring in 2015 or 2016. let me comment briefly on how the two main pieces of our policy accommodation, asset purchases and guidance about future changes in the federal funds rate, fit together. the purpose of the asset purchases is to increase the economy's near-term momentum with the goal of improving the outlook for the labor market and helping to promote a self-sustaining recovery with price stability. the forward rate guidance provides information about when the committee will begin considering the removal of policy accumulation through increases in the target for the federal funds rate. importantly, the committee expects a consi

korean conflict, president truman also faced another battle, between the federal reserve and the treasury, over financing the war. howld it be resolved? 1965, lyndon johnson's administration was spending on both a war and a great society without raising taxes. the fed was left to fight the resulting inflation alone. the nation's central bank, originally created to protect the banking system against panics, acquired more power to affect the economy than even it imagined at the outset. the federal reserve: does money matter? with the help of economic analyst richard gill, we'll explore that question on economics usa. i'm david schoumacher. coins, bills, checks-- our basic money supply. the amount of money and where it goes wiin the banking system has been the main concern of our nation's central bank. at the fed's headquarters here in washington, dc, closed deliberations are held by experts who continuously monitor our financial health and prescribe remedies. how did these experts prescribe a remedy that plunged us even deeper into the great depression? early in the 20th century, american banks operated with little reg

the 10th amendment provides that the powers not given to the federal government are reserved for the states and for the people. [applause] how did we get a $16.50 trillion national debt? we have a federal government that thinks they have the authority to regulate our toilet seats and our light bulbs. we need to get back to the constitution. article 6 of the constitution provides that the constitution shall be the supreme law of the land. there is an ongoing effort to undermine united states' sovereignty. before i was in the senate, i was the solicitor general of texas. we stood up to the world court and to the united nations. [applause] to the president of the united states, who happen to be a republican. i went before the supreme court of the united states and said, no president, republican or democrat, has the authority to give away u.s. sovereignty. [applause] we have seen republicans willing to stand up to republican presidents. my question to you is where were the democrats when rand and the rest of us were standing on the floor on drones? [cheers and applause] need to dothing we is we need to champion growth and opport

. >> bret: no major changes on the horizon in how the federal reserve is dealing with the economy. while fed chief bernanke says things are getting better not everyone is encouraged. chief national correspondent jim angle looks at both sides tonight. >> if the federal reserve hadn't muched enormous amount of money in the economy it would be gasping for air in a recession. today, ben bernanke says the fed is still concerned enough to keep pumping $85 billion a month in the economy as it waits to see if the recent signs of hope take hold. >> spending by households and businesses has continued to expand and the housing speck somewhere has seen further gains. >> the recovery is still not satisfactory, the job market improved it's not enough. >> up employment rate continued to tick down. however, 7.7%, ton employment rate is elevated. >> the fed helped stop the economy from falling and the low interest rate make home and car sales easier. but there are limits. not as good as pushing along investors who don't really want to build factories, employers who don't want to hire. it's up succe

of course, we talk how the federal reserve is playing a role in the rallywell.tanding behind the economy and keeping the interest rates low and making sure that we can keep this economy bubbling along. so, every day we're watching this and every day it's going higher, harris. >> so you're sitting at home and not a big time investor. watching your retirement funds, is now a good time to put money in stocks. >> the people we're talking to saying he we could have a retrenchment, 2, 5, maybe more on the big board, the dow stocks and that's an opportunity for people to get back in if we have a pullback, that's what i would wait for. if you've got a long time horizon, be in stocks, you want to make sure you're going to fund your retirement with investments that last over a lifetime, not over 20 minutes or two seconds, like the pros sometimes do, harris. >> gerri willis, thank you very much. libyan authorities reportedly holding a person in custody tonight in connection with the terror attack on the u.s. outpost in benghazi. it left our u.s. ambassador and three other

the 10th amendment provides that the powers not given to the federal government are reserved for the states and for the people. [applause] howid we get a $16.50 trillion national debt? we have a federal government that thinks they have the authority to regulate our toilet seats and our light bulbs. we need to get back to the constitution. article 6 of the constitution provides that the constitution shall be the supreme law of the land. there is an ongoing effort to undermine united states' sovereignty. before i was in the senate, i was the solicitor general of texas. we stood up to the world court and to the united nations. [applause] we stood up to the president of the united states, who happen to be a republican. court before the supreme of the united states and said, no president, republican or democrat, has the authority to give away u.s. sovereignty. [applause] we have seen republicans willing to stand up to republican presidents. my question to you is where were the democrats when rand and the rest of us were standing on the floor on drones? [cheers and applause] the second thing we need to do is we need to champion gr

tuesday the housing starts telling us how many residential units began construction last week. on wednesday, the federal reserve's open market committee will wrap up a two-day meeting with a press conference from chairman ben bernanke. thursday, retailers will report on existing homes sold last month. and then on friday, the blackberry z-10 smartphone will be available to u.s. consumers. >>> and for dessert, twinkies never go bad. bankrupt hostess brands has agreed to sell the iconic cream-filled confection. the $400 million plus deal would put twinkies, ho-hoes and dolley madison under the control of two equity firms. both have history with tasty turnarounds. metropolis purchased pabst blue rbi in 2010. a bankruptcy judge is expected to approve the deal this week, meaning twinkies could tackle store shelves by summertime that will do it for the show tonight. thank you so much for being with me. my guest next week liz ann sonders, the chief investment strategist at charles schwab. each week keep it right here where we are "on the money." have a great week, everybody. i'll see you next weekend. [ male announcer ]

but just how well capitalized as determined by the federal reserve will decide how much each bank cand the least cushion to their capital. citigroup fared the best and disclosed its request for $1.2 billion in buybacks. other bank executives have spoken clearly about their plans for fear of overstepping the plans. he merely said the bank has asked for more than 88 cents in dif sends and $4 billion in buy backs it completed last year. they home to continue raising the bank's dividend. last year it shelled the $15 billion buy back in the face of the london well trading blunder. the f2 reports it asked for half of that or 7.5 billion. analysts kbpts them to ask the dividend to five cents for one cent. from morgan stanley, there's expected to be no change. they are estimating goldman sachs will announce a $4 billion buyback, though she lowered the estimate after last week's result. assuming none submitted too aggressive of an ask. that's the hope that the expectation has fueled the financial rally for the last few months. it's unclear what wound happen to stocks if the results are more di

federal reserve? >> yeah, maria. i don't know how it ends well, and i've got to tell you, the fed is completely in control. when we had a rumor or a murmur a couple weeks ago they would end their free money policy a little bit early, the market took a hit over a couple of days, and then when ben bernanke testifies before congress and puts the pedal to the metal, the market is off to a races again. i'll be the contrarian here against other guests who are saying to put money to work right here right now. the last three years, we have seen exactly this scenario in the last three years. market up double digits, everybody gets excited and two months later the market gives it all back. there's going to be a better opportunity, and i think if you're object sideline be very cautious about chasing the returns here. they will come back to you. they always do, and then you can get -- then you can put your money to work. >> maria. >> i've got to add on to that. i don't agree with that. everyone seems to be talking about that ben bernanke is fuel

if the corporate section is doing so well, how come the federal reserve won't stop the stimulus?not ease back? >> well, you made the case that it's profits. you made the case that it's profits. >> it's a great -- look. here's the thing. there's this terrible disconnect right now. bernanke talks about it all the time. between the corporate sector, the stock market, and the rest of the economy. jobs, incomes, the kind of indicators that actually mean the most for pocketbook issues. and that's what bernanke is targeting. that's the answer to your question. it's not a $64,000 question. we have a growth and jobs problem. that's what the fed is targeting. >> why do we have a growth problem if we have $1.9 trillion on the balance sheets of corporate america that's just sitting there? >> that's a good question. [ overlapping speakers ] >> tom would say it's $3.6 trillion. >> if you include the banks in there. >> that's a good question. i think i can answer it. that is a symptom of the growth problem. you've got those kinds of assets sitting on the sidelines because they don't see the kin

federal reserve meets interests rates. i'll interview the ceo of coca-cola and how things are going overseas for him. >> see what he says abouturope not specifically cyprus, which might be one tenth of one tenth of his business. europe overall is a significant part ofoca-cola's business. >> that's it for night business news. thanks for watching. we'll see you back here tomorrow night.

federal reserve meets interests rates. i'll interview the ceo of coca-cola and how things are going overseas for him. >> see what he says abouturope not specifically cyprus, which might be one tenth of one tenth of his business. europe overall is a significant part ofoca-cola's business. >> that's it for night business news. thanks for watching. we'll see you back here tomorrow night. ♪ tyin' up my white tie ♪ ♪ brushing off my tails ♪) ♪ tyin' up my white tie ♪ (♪ theme music ) matt elmore: (♪) welcome to imagemakers a weekly showcase featuring the best short films from around the world. stay tuned and enjoy the filmmakers of tomorrow today on imagemakers. imagemakers is made possible in part by a grant from: celebrating the vitality and power of the moving image. and by the: (♪ slow instrumental ) (train sounds) (♪) (train noise stops) (♪) (bells) (♪) (♪ music continues ) (♪) (footsteps) (♪) male narrator: so you want to hear a story? well, i used to know a whole lot of pretty interesting ones. some of them so funny you'd laugh yourself unconscious. other's so terrible you'd never want to repeat them. but now i can't rememb

federal reserve. the nation's third largest bank must now submit to the fed how it plans to do a better job. under the bank secrecy act, all banks are required to report large cash deposits. doing so helps track and catch drug dealers, terrorists and other criminals. more evidence is emerging that the housing market recovery is real. single-family home prices rose 1% in january according to the closely-watched case schiller composite. that translates to average home prices back at 2003 levels. prices are up 8.1% in 20 cities measured by case shiller. among the highlights: in new york, homes prices rose for the first time in two years. in phoenix, sales soared 23.2%. meanwhile, new home sales were down 4.6% in february. however, january's rate was the storngest since september 2008. housing regulators are attempting to bring down the cost of home insurance for many americans. the federal housing finance agency has filed a notice to stop a practice in which banks force homeowners to buy insurance at a higher cost. insurance companies give banks monetary incentives for selling that insurance at

how about inflation? the federal reserve wants 2 1/2% inflation.quivalent of 2.5% tax lowering your income. >> they just raised it a half percent to 2 1/2%. >> so what that means is, your real income goes down. so, especially lower income people get of the shafted because they pay more for food and fuel and electricity. and so their incomes go down. that is supposed to stimulate the economy. the fed can do it without legislation. david: when you think of all the different ways which this administration, obama administration is almost transfixed by the european model, whether it is in health care, obamacare, whether it is in the vast increase in the social welfare state, i'm just wondering if they now are looking to europe as a model for what to do with us? now we haven't reached, obviously we're far away from the cyprus kind of crisis dimension of crisis with our debt problems but if we move closer to them, would we borrow from those solutions if you will? >> they will certainly look at them. thankfully our banking system is much better shape than

all about. 10th amendment provides the power is not given to the federal government reserved to the state and to the people. [ applause ] hown dollars national debt? we have a federal government that thinks they have the authority to regulate our toilet seats and our light bulbs. we need to get back to the constitution. [ applause ] article 6 of the constitution provides that the constitution shall be the supreme law of the land. there is an ongoing effort to undermine united states sovereignty. i'll tell you, before i was in the senate, i was in texas and we stood up to the world court and to the united nations -- [ applause ] -- and we stood up to the president of the united states who happed

she was just talking about how the federal reserve is pumping all this money into the stimulus to trycreate the wealth effect. how long can that last, christine? >> well, the fed says it's going to last for the foreseeable future here because the fed really is the only game in town. you have the sequester, forced spending cuts in washington. that's going to pull $85 billion out of economy over the next seven months. think of this. the fed is pushing $40 billion into the economy every single month. so the fed is really pushing this thing forward here or a big reason why it is. david kelly over at jp morgan, he calls it the tina market. t-i-n-a. there is no alternative. people are buying stocks and they're buying houses. those are the two bright spots in part because the fed is keeping interest rates so low for housing as well. remember about stocks, it's very important. a lot of people say to me, look, why are you guys talking about highs in the stock market when people don't feel it on main street? and they're right. here's the thing. stocks measure the corporate success of the compan

not big banks that create risk in the financial system but the federal reserve, but it is incredibly risky to the economy. i don't care how good a bank you run it is leveraging itself, and it may or may not have that regard but the institution can't manage risk in the context of a bigger system, systematic risk. i'm going to a private banking system using the market based standard mica gold standard but if we are doing that my own recommendation is at least a step to require banks to ruth have more capital than they do today than when we had a private banking system. and repeal 90% of the regulation, and let the market take care of allocation of capital and a better solution than we are working on today. i would share peter's enthusiasm. and repealing dodd-frank. i am still on the board of bb&t. tied for the average person to realize the banking system and united states is very much controlled by the government today and if you want to control an economy control the allocation of capital and particularly if you don't get blamed when you blow things up which is exactly what happened with some prime lending so they could di

of really smart people are worried about what happens when the federal reserve stops its bond buying program. they tend to opine about how exit won't be big enough for everyone to make it out the door. when the fed stops buying bonds and starts selling them. these people scare the wits out of them. they could overshoot and rates climb dramatically. they scare me because they made a great deal of money over time by being right. they make me want to come out here and say get out right now. don't pass go. get out. like so many others have come out and said get out. let's be honest. have you ever heard one of these prophets of doom saying you would have missed one of the most amazing moves that the stock market has had? a move that has created all more tunes of people if they had followed the advice of the fear mongers? i don't got to worry about what happens other than i would be invested in mansions and gold jewelry. all assets have held up by value in history. the kind of inflation they fear is the logical outcome of the bond buy? do they ever admit once that ben bernanke would get us out of this without a disaster? he he

buy on the dip mentality will likely win out as the federal reserve continues to lead investor behavior. take a look at the market on wall street and how we ended the day, another record high, up 67 points on the dow. 14,397. and the nasdaq, finishing at 3,244. s&p 500 up to 1,551. see you on sunday for on the money. in the meantime, have a great weekend. i'll see you monday on closing bell. stay with cnbc. "options action" begins right now. goodnight. ♪ >> this is "options action." tonight, america is back. a strong jobs report sending the dow to another record, but there's a warning sign every investor needs to know about. he'll tell you what it is. social media stocks are soaring, so is it time to like facebook? a trade that could get you long for free. they're going to break it down. and could it a better deal be in the works for dell? some traders say yes. and scott nations explains why. the action begins right now. >> and live from the nasdaq market in new york's times square, welcome to the show. happy friday, everybody. well, of course i have all the traders here as well in times square and across the country. welcome to the sh

federal reserve. the tests gauge how well a bank would survive another economic downturn.one of the banks, allied financial in detroit, which happens to be the only bank still majority owned by the government, failed the test. let's pause there for one second, leigh. good news on its face. some people say it's not really reflective of what would happen if there were an economic crisis. what do you say? >> it's not. and it's funny. you don't really hear stress test phrase. it sounds almost an achronistic. they've been expanded. many people say they haven't been expanded enough and bad banks are still taking a lot of risks, as they are. we saw a couple high-profile examples of that last year. overall the financial system is a lot more sound. but these banks are still mega institutions that if one of them got into trouble, you know, they would still be too big to fail. >> let's not get too optimistic? >> it's good thing that 17 out of 18 passed. overall things look good. i think everyone's a little more wary. >> i'm pleased to report that harold ford passed his stress test. h

that's why goldman sachs economist says the federal reserve is unlikely to change its easing monetary policy from this report alone. >> the question i think is more how many times months do you have to see to be convinced that is the underlying trend of job growth. if you have a long period at this kind of pace of course they would make some changes but really how sustainable is it and how are we going to be looking at this three or six months down the road. >> reporter: there were gains in construction and moving jobs, the service sector with retail education and health care leading the way added 179,000 jobs, but government employment dropped by 10,000, that could be a sign of things to come as the sequester spending cuts hit. overall, it's the third month in a row that job gains were above 200,000, but it brought back memories of last year when strong wintertime hiring only brought about a springtime swoon. for "nightly business report," steve liesman. >> that surprisingly good news about jobs is good news for all of us but is the turnaround taking place fast enough? i spoke with the chairman of the president's council of economic individualsers,

federal reserve. >> we are getting some traction in the housing market. >> reporter: if the economy truly gains traction when and howes the fed pull back on its monetary stimulus. what happens to mortgage rates, to governmentç debt payments. in short, can the economy survive the fed's mandate coming off four years after a bruising economic crisis, no one, it seems, has a good answer for that. carl quintanilla for "nightly business report" new york. >> dig a little deeper and break out some sectors. you heard carl mention the fed and mortgage rates. let's talk about housing. diana oillick from las vegas on how far the housing market has come and how far it needs to go to regain full health. >> reporter: chris and candice rodgers wanted to move to a bigger house. with las vegas homes costing about half what they did during the housing boom, they figured it was the perfect time. except there was nothing to buy. >> we looked at a lot of the existing homes and some are bank-owned. >> reporter: so the rogers turned to new construction, which is suddenly sprouting up all around the city with national and local builders al

federal reserve. >> we are getting some traction in the housing market. >> reporter: if the economy truly gains traction, when and how does the fed pull back on the monetary stimulus? what happens to mortgage rates? to government debt payments? in short, can the economy survive the fed's band-aid coming off? four years after a bruising, economic crisis, no one, it seems, has a good answer for that. carl quintanilla for "nightly business report" new york. >>> here with his take on several of those issues is ken rogoff professor of economics at harvard university. hi, ken. you heard carl's report. how would you describe the health of the economy and also how we're doing in this american recovery? >> well, we have a modest recovery that's stable and i think that's encouraging people because it doesn't feel like the floor is about to fall out. on the other hand, it's not booming, either. and i'm not sure there is really any reason to believe it's going to be booming any time in the next few years. so the markets are up because at least some of the uncertainty has been pulled back, even the mediocre sequestration in washi

the 10th amendment provides that the powers not given to the federal government are reserved for the states and for the people. [applause] how we get a $16.50 trillion national debt? we have a federal government that thinks they have the authority to regulate our toilet seats and our light bulbs. we need to get back to the constitution. [applause] and article 6 of the constitution provides that the constitution shall be the supreme law of the land. tore is an ongoing effort undermine united states' sovereignty. before i was in the senate, i was the solicitor general of texas. we stood up to the world court and to the united nations. [applause] and we stood up to the president of the united states, who happen to be a republican. i went before the supreme court of the united states and said, no president, republican or democrat, has the authority to give away u.s. sovereignty. [applause] now, we have seen republicans willing to stand up to republican presidents. my question to you is where were the democrats when rand and the rest of us were standing on the floor on drones? [applause] the second thing we need to do is we need

how economists think. why is it when we look at the data at the federal reserve will get the gdp growth levels and unemployment rate. they have a separate welfare implication holding constant the amount of output with distributional issues, personal dignity and opportunity, it is one way in which economists aren't knowledge in the macroeconomic utility function is not quite enough to capture all the things that matter to people in the economy. >> had the chance to listen to for wonderful economies. now inviting back. liz: there you have it, welcome to "countdown to the closing bell." the treasury secretary on stage, out of all of them, the american, uk, french and german economic leader, only the german expressed true short-term worry about all these developed economies especially the u.s. are running very easy monetary policy buying up a lot of financial instruments and easing, constantly easing. other economists have just wrapped up kind of a pretty interesting panel. you don't see congress do not that often. what is the most important thing you just heard, peter? peter: i'm still cracking up at some of thos

how about $16.5 in debt. that's another conversation. thank you very much. we'll see you soon. appreciate your time today. federal reserve keeping its stimulus plan in tact, forecasting moderate growth as well. take a short break and after that, we'll find out what it means for your money with two economist who is know their way around the halls of the fed. and then live to cyprus where the banks are still closed and the situation is becoming more muddled and more dangerous for the global markets. would you put your money in a cyprus bank right now? >>> and then starbucks bought a coffee farm. wait until you hear what they plan to do wit. coming up, we'll talk starbucks business with chairman and ceo, howard schultz. that and a lot more, stay with us. ]just when you thought you had experienced performance a new ride comes along and changes everything. the powerful gs. get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you'r

question is, given the changes in the doj's mandate and the ecb's approach to monetary policy, how is the federal reserve coordinating with the other central banks and? >> we coordinate to the extent we make regularly and discuss the common set of issues that face all of our economies. for all of those that he mentioned a while europe has its own special set of issues that the united states and japan do not face, we all suffer from very slow disappointing growth and have a common desire to foster strong economic conditions. we compared notes quite frequently about the different programs that we are pursuing. if you look at our balance sheet, all three central banks have greatly increase our asset holdings. it is interesting to see in the united states and europe and many other advanced countries, the u.k. and others, long-term and short-term interest rates gave a speech. these are the policies that we are all commonly undertaking. we face a common set of issues. >> thank you again. thank you for spending some time with us. [applause] >> we will have more from the business economics group in just a moment