host: i wanted to respond to some comments made earlier this week by hank paulson.said that china is so integrated in the global economy, more than any other country except the u.s., that the future of the global economy depends on how fast china can continue to grow. earlier this week, the former treasury secretary hank paulson speaking here in washington and discussed growth at about 7.3% now. here is his assessment. [video clip] >> the big picture is that this is a country that has accomplished an extraordinary amount over the last 30 years and they have done it with an economic model that has run out of steam, in my judgment. sustainable. isn't we can get a bunch of economists in a room and talk about this, that, and the other thing. when you talk about what they need to do in terms of reforming the labor market, or moving migration restrictions, all of various social reforms, the government reforms, the economic reforms in order to unleash the potential in the private sector, to rein in the state owned enterprises, to reform the financial system -- you know, a

when they come back, he'll hear from former treasury secretary hank paulson giving his thoughts on china's economy. in 2011 he started the paulson institute with the purpose of promoting sustainable economic growth and a cleaner environment with a particular focus on the united states and china. again, we'll hear from him coming up at 11 eastern as our live coverage continues on c-span2. until then, a portion from in this morning's panel discussion. [inaudible conversations] >> well, good morning, all. my name's kevin nealer, i'm delighted to be here and introduce this terrific panel. you've already met the founder of our get together here, matt goodman, who holds the psi upon chair in political economy, but many of you know that matt was white house coordinator for asia-pacific economic cooperation and coordinator on the east asia summit. on my far left, how do you feel about that, far left? [laughter] >> that's where i belong. >> david dollar is currently senior director at the brookings institution but was formerly at the treasury department as their representative in beijing. were you

please join me in thanking hank paulson. [applause] thank you, mr. secretary.ll for coming, especially on a rainy day. we will be continuing this conversation for another year at least so i hope you will join in with us. thank you. bye, bye. [captioning performed by national captioning institute] >> the supreme court earlier spoke about the total money people can contribute to federal elections. than 117,000d more dollars total in election cycle. thecourt found it violates first amendment. you can hear the argument in about an hour from now. the bostontern, marathon bombings was a year ago today. primetime will take a look at human to intelligence. historicalmerican association conference in washington. >> it is my great privilege and high honor to and personal pleasure to present to you his karzai,ncy, hamid resident of afghanistan -- president of afghanistan. [applause] >> thank you. thank you very much. thank you. please. thank you very much . please. thanks a lot. thanks a lot. please. thank you for the great honor. mr. speaker, mr. vice president, members

man and he interviewed hank paulson and hank paulson talking about the time of the lehman crisis hank paulson said that the chinese had told him that the russians had got on to them and said why don't we take out like you know destabilize fannie and freddie now that i find interesting the chinese didn't go with it and when the chinese made it up to try and put pressure on how important we don't know but i think it does show that if we start mucking around with them on a financial front the consequences i think for ourselves could be very very dangerous so i read the story person as they are giving credence to the story or you think it's an interesting development we'll use in his blog so why would an addict and other chinese or were engaging in finance a war at the time of the two thousand a crisis when things were looking wobbly and lehman brothers collapsed and i think man and i think the point was that the chinese at that stage were major creditors and had to be kept on side through the process that was why hank paulson was talking to them yeah and but the russians were not really

host: i want you to respond to comments made earlier by hank paulson. you say week thelier this former treasury secretary hank paulson, speaking here in washington, discussed china's economic earth, now at about 7.4%. here is his assessment. [video clip] >> the big picture is this -- this is a country that has a compass an extraordinary amount over the last 30 years, and they have done it with an economic model that has run out of steam, in my judgment. it just plain isn't sustainable and so you can get a bunch of economists and sit around a room and talk about they got a do this and that, and when you talk about what they need to do it in terms of reforming the labor market, removing immigration , all of the various social reforms, government reforms, economic reforms, in unleash the potential of the private sector, to rein in the state owned enterprises, to reform the financial system, a $9 trillion economy to change the model is a difficult place to do. news iso me, the good the leaders understand it. it is not like talking to u.s. politicians, who s

hank paulson is back from a trip to china. i asked him how many times he had been here. he said, more than 100 times. both at goldman and the treasury and now pursuing a third career, which is, interestingly, 100% nonprofit. he has no investment to china except maybe his heart. mr. paulson i thought i would , start by remembering that you presided at the home for a horrible financial crisis. we were a country with a sophisticated financial system with the people running it. it didn't turn out to be as good as we were led to believe. in some sense, the chinese are facing what is regarded as a potential for a financial crisis. perhaps with less expertise. they do have a few resources that they need them. i wonder if you could talk about how big a risk you think there is in shadow banking or credit boom or housing. how well prepared they are to manage it if it hits. >> thank you david. it is great to be here. that was a question i got a number of times in china. my view is, of course every economic system known to man, every economy from time to time, will have financial cr

host: i want you to respond to comments made earlier by hank paulson. but you say week thelier this former treasury secretary hank paulson, speaking here in washington, discussed china's economic earth, now at about 7.4%. here is his assessment. [video clip] >> the big picture is this -- this is a country that has a compass an extraordinary amount over the last 30 years, and they have done it with an economic model that has run out of steam, in my judgment. it just plain isn't sustainable and so you can get a bunch of economists and sit around a room and talk about they got a do this and that, and when you talk about what they need to do it in terms of reforming the labor market, removing immigration , all of the various social reforms, government reforms, economic reforms, in unleash the potential of the private sector, to rein in the state owned enterprises, to reform the financial system, a $9 trillion economy to change the model is a difficult place to do. news iso me, the good the leaders understand it. it is not like talking to u.s. politicians, w

president of the board of trustees during the time, former undersecretary of the treasury, working for hank paulsonke told him not to talk to me, but he did it anyway. i have a lot to respect for help for doing that. he told me what he thought was going on and how this affected him. and the board of trustees from their perspective. >> what did he say? >> he basically said it was like a fog of war. i start with a quote from morris. mcanamara has come out with this donaldble film about rumsfeld. he has investigated very thoroughly and thinks there are a lot of unanswered questions. the quote i use is basically the truth is out there and in principle we can find it. that was my driving force. the truth is out there. and in principal, we can find it. i did the best i could. i do not know if what ever get to the bottom of this unless and until some people who really know what happened or not completely discredited, i do not think they are discredited, but everybody thinks crystal magnum is discredited. now a convicted murderer in jail for murdering her boyfriend. anything mike nifong -- and they think m

. >> a lot of people give geithner and the fed chairman, bernanke, and hank paulson credit for bringing us out of the midst of that crisis. you disagree with that judgment? >> i think they did well in getting us out. they didn't do so well in getting us in. >> in other words, they failed to see what was coming. >> they failed to do anything about what was coming, and they failed to take responsibility for what was coming. >> i mean, the leader of that group became the head of citibank. and when the vice chairman said that's not my responsibility. >> you're talking about bob rue by? >> my friend. yes. [laughter] you know, and geithner and summers. i mean, they knew what was happening. and if they didn't can know what was happening, they should have known what was happening. >> do you think the leaders of those financial institutions knew what was happening? >> yeah, of course. >> they did? >> they did not know there were $400 billion of bogus paper out there? of course they did. they knew what the leverage was, of course they did. >> so they didn't do anything about it because -- >> i do

. >> -- hank paulson.t when history is written and we look back 100 years from now, his name, and bernanke and greenspan will consistently be on a list that i can imagine other people on this list will not be. it's almost not impossible to believe what happened as treasury secretary -- forget about goldman sachs going public, changing the face of wall street. how did he get missed from this list? >> he is an incredibly inspiring person and truly heroic. >> you don't have to decide he's been heroic. just that he was impactful. >> they were better at solving a problem rather than anticipating it, right? >> we could have done another trio. how broad are we going to make it. and that's number one. and number two, the crucial element of the fed with the money spigot was dominant. >> so was the time frame. a longer period. it was still longer. this was a 30-month -- for that reason we would have put him in there. hugely transform active for a lot more than 30 months. we're looking for somebody with a longer reco

. >> that goes back to hank paulson putting fannie mae and freddie mac into conservatorship and crushinging shareholders in the process. it is not like the government has ripped itself willing to ignore the investors in the interest of the taxpayer. itself willing to nor the investors in the interest of the taxpayer. >> you do your homework, you examine what is going on. you have to take into consideration, will the rules change again in the future or is there a national policy at stake that will rise above? we look at -- the securities that are being developed and some strategies being developed, around the futures of housing finance, we think these are sustainable. they have a very positive constructive, forward-looking view in terms of housing policy. those of the strategies we are most interested in investing in. >> where else? >> we do like to marshall real estate and commercial real estate, there is a similar theme. a very close cousin to what is happening with fannie mae and freddie mac. it is multifamily housing. insurers of largest multifamily mortgages. of have a huge transition h

i meet interesting people and had an entrance to dinner last night with hank paulson which is unusualar what is going on. i like to hear what people are thinking and especially now, the world is at an odd inflection we are at a winter induced lowell and will roar forward or which -- or are we in a period of long growth? i think we are in a long slow growth. i think it is propelled by waves of capital. there is a lot of money sloshing around in it reminds me of 2006. it is everywhere. there is a lot of money chasing property in europe today in the u.s., two and we have a lot of clients that want to buy core real estate in the united states. they are throwing in the towel on caution. they have decided that everything is better than bonds everywhere. property is a good place to move some money. i think you see that in the stock market with profit to valuations because there is fewer places to put money. >> fewer people understand real estate risks better than you. help these people understand why it is not necessarily good inc. to be moving to a liquid investments like properties? >> bec

. >> with that, please join me in thanking hank paulson. [applause] >> thank you, mr. secretary. thank you all for coming, especially on a rainy day. we will be continuing this conversation for another year at least so i hope you will join in with us. thank you. bye, bye. >> members of congress, it my great privilege and high honor and personal pleasure to excellenceyou his hamid karzai, president of the afghanistan. of [cheers and applause] >> thank you very much, thank you. please, please, thank you very much. thank you. thanks a lot. thanks a lot. please. the great honor. , mr. vice president, of congress, guests.ished the great people of the united states of america. it is my distinct honor to speak on behalf of the afghan people assembly.gust i thank you and the people of for yourt country ourrosity and commitment to people. you have supported us with your resources. with your leadership in the world community, and most importantly with the precious soldiers.our [applause] >> find more highlights from 35 house floor coverage on our facebook page. c-span, created by america's

treasury secretary hank paulson and if he does do that and then does it in a very how hard way than this whole call put in scheme could unravel and we could get into a back up again so i think a lot of good news is already priced into europe but i can see why the markets responded the way they did back in august two thousand and twelve. national clearly out lower bond yields rising house prices and a return to foreign capital is helping at the periphery yet when i ask how long can this upward swing last. it can last for as long as they stop insisting on any kind of further fiscal austerity and it's the usual story where you know if you stop strangling the patient and let him breathe and lo and behold he actually lives the problem has been that you've had these measures whereby we have worked to cross purposes the the central bank has said we're going to banks up the bonds but the quid pro quo for doing that is that they continue to demand more and more austerity from the periphery countries and that's tended to exacerbate the problems of underlying aggregate demand spending power what's

. >> with that, please join me in thanking hank paulson. [applause] >> thank you, mr. secretary. thank you all for coming, especially on a rainy day. we will be continuing this conversation for another year at least so i hope you will join in with us. thank you. bye, bye. [applause] it is my honor and personal pleasure to present to you his i --lency harmonic cause karzai. [applause] >> thank you. thank you very much. thank you. lee's -- please. thank you for the great owner. speaker, mr. vice president, members of congress, distinguished guests, the great people of the united states of honor to speakmy on behalf of the afghan people in this assembly. i thank you and the people of this great country for your generosity and commitment to our people. you have supported us with your resources, with your leadership in the world community, and with the precious lives of your soldiers. [applause] find more highlights from 35 years of house floor coverage on our facebook page. >> in a few moments, a discussion on proposed changes to the tax system. journalists talk about the book they a

believe me, i will never forget the treasury secretary hank paulson coming up and literally quaking in front of us in the senate room, in the lbj room. pale and faxed as he explained what was going to happen to lehman brothers and the financial world if congress did not pass was then called a bailout. paid the american taxpayer. there was irony in a number of one party coming to members of another party to austin to save them from themselves. -- to ask them to save them from themselves. it happened. since that recession, which put the financial system of this country and the world on the precipice, since then we have come back. people have forgotten what president obama had to begin to do even before he was sworn in as we try to navigate through that late fall of 2008. since then, u.s. exports have hit an all-time high. a record $2.2 trillion. supporthose exports $11.3 million and account for 14% of the entire economy of the united states of america. i am happy to tell you that america is selling more goods and services abroad than at any time in our history. that is a remarkable, schm

former treasury secretary hank paulson and president obama's former agent and adviser. you can watch live coverage from the center for strategic and international studies starting in 9:00 a.m. eastern. and over on c-span2 former state department advisers discussed the muslim brotherhood and floods in the middle east or the past three years. the american task force on palestine house the event started in 9:30 a.m. eastern. >> there's an old saying that victory has a hundred fathers and defeat is an orphan. would not be surprised if the information is pont in regard to recent activities. >> we are just talking about the fact that the interrogation last week of the standing committee senator goldwater ask questions about the use of an aircraft from the carrier essex were their markings painted out. we figure that somebody over there has told them. therefore the water will spring it. a going to try to spring and in such a way that it looks like there was u.s. air cover and you are wrong and i was or insane there wasn't. >> historic audio from the attempt to overthrow cuban

no relation to hank paulson. >> i have a little pat in me i think. >> you've not nothing. >> this wasf pull back. i think in the media we have done our part of really overexaggerating it to ring out the complacency. 10%. we would act like that was the end of the world. are we doing our job? >> well, i think the media did its job, got everybody very excited last week. i think the total decline was less than 4%, which didn't account for much. all this news about the biggest weekly decline in the year, two years sort of overshot the mark a little bit. we didn't have any correction except the technology. dow jones ended that index about 16% since the beginning of march. drug market just setting there. >> i hate to say you were right about things. you didn't think the beginning of the year would be this great. the whole year will be sort of a consolidate the last three or four year. >> a little bit. >> watching this, is this what you're seeing? >> a little bit. we're not done. i still think we might felt as highs on 2,000. but still come back to enjoy the year a little bit. one thing i'm i

engaging like a vince cable this vince cable free to act or is he like in america for example hank paulson was told when he was testifying before congress in two thousand and eight in the back rooms that if he didn't allow for that huge seven hundred fifty billion dollar bailout of goldman sachs that they were going to crash the economy this is in the public record this is vince cable similarly being held hostage by the banking lobbyists i think is certainly by the banking low base but also by the treasury because the only people that can effectively intervene in this other than the criminal and reckless investigative authorities is the treasury and what they need to do is remove them is chairman because he's known about this for four years and covered up the need to allow the criminal and regulatory authorities to put bankers in court i look forward to seeing bankers in court i look forward to seeing them in court myself the must address the bonus issue we cannot be having r.b.s. bankers being paid two hundred percent of their solidly for failure as a bonus and in my view is that the best

out the markets of october of one nine hundred twenty nine and the six bankers who designed to hank paulson the two thousand and eight bailout of the markets tell us about the role of the six. the throughline of the big six bankers and that was by the way a term coined by b. c. forbes back in the one nine hundred twenty nine crash period where he looked at the bankers that were in charge of saving the markets and crashing the markets into that one nine hundred twenty nine period and most of them had through lines connected to the morgan bank the rockefeller family national citi bank which became part of what we have now is citi group first national bank which also became part of citi group morgan guaranty bankers trust part of morgan which is now part of j.p. morgan chase so back then you had six people that got together running these six banks from these very powerful banking families because they needed to save the markets they needed to save themselves and that's what they try to do they took their own money their depositors money and they threw it at the markets and of course that didn'

the hank paulson, the former secretary said the russias approached the chinese and said if we dump all of our holdings of american debt now we can crater the economy, and the russians did. the chines did novelty. it worsened our economic situation substantially. >> you have a followup: game plan, how to protect yourself from the coming -- >> guest: as part of my research i got into the chinese doctrine, written in a book call unrestricted warfare, published by the people's liberation army of china. two senior colonels in the pla wrote this, in 1999. and said the best way to beat america is a stock market crash, cyberattacks on the infrastructure, or ruining the currency. so i not only looked at what happened in 2008 and 2009 and looked forward to what could happen. what i found was the next type of war we'll face -- not a shooting war or guns and tanks and air craft carriers. cybereconomic in nature. this is what all of our enemies have said. they don't want to take on the military head-to-head now. they've said, we will crash the american economy if we get into a war. that's not just