this is a very important long- term problem for the country. people are saying the right things about recognizing the imperative in deficit reduction. the composition matters a lot. it will determine the phasing in of the debt reduction and the comprehensive changes on tax reform and spending. that will determine whether it will be good for the long term growth of this country and good for the short-term challenges of trying to dig out of the crisis definitively. >> other questions? >> what is the role of immigration reform in fixing the challenges you are describing? >> one of the great strengths of this country is that we remain a compelling place for people to come and build a business. i think is very important for us to make sure we preserve the fundamental strength. that is to make this the most open place for people to come. if we do that well, we have an economy that will grow at a rate that will be substantially faster than other major economies. the underlying potential growth rate for us will be between 50% and twice the rate of othe

mortgage investors themselves would bear the long-term consequences. our ranges like this -- our arrangements like this gave rise to the idea, i will be gone, you will be gone. homeowners, too, responded to rising prices and flexible taxes to raise their home equity. meanwhile, financial institutions frequently sought to maximize their balance sheet leverage. it sometimes left shatter we off-balance sheet structures where capital requirements were less stringent. that strategy worked brilliantly until the eventual collapse of investor continent -- confidence and market liquidity. there was not enough capital on hand with the balance sheets to support them. all too often, the seemingly innovative lending practices led to bad economic incentives. it was to believe based on current year of loan volume with little regard to the risk building of the system. most damaging of all come some of the largest and most complex companies were made exempt from the marketplace because of their size and interconnectedness. there were too big to fail under the rules of

taking this patient, calm approach, you know, thinking long term.l sounded to me a lot like the oracle of omaha. >> you know, let's parse through some of the things that you're saying because one aspect of buffett's temperament, as you mentioned moments ago and as you wrote in the book, is this long-term thinking mentality. how did that serve him well? this -- in the last few years? particularly in the fall of 2008, when the market seemed like it was about to fall off a cliff. >> yeah. we all remember that. that was such a scary time for investors. and buffett, one of his most famous savings is always be greedy when others are fearful and fearful when others are greedy. and that serves him very well. it served all investors well during that time, during that fall of 2008, if they were able to control their emoegsz p i mean, that's what we're really talking about here, is the ability to control your emotions, to not do things to get other people in trouble. and we looked at a guy like buffett, when the market was tanking, that fall he was out buying

we also need of long-term thinking on other important national policy issues. too often the response that the economic growth has been another tax credit or threatened interest rate that's good for a while but does nothing to enhance the long-term performance of the economy. the political divisions that appear to have stepped the will to meet the time of long-term investments in education and public infrastructure that will pay dividends over many years, programs of national service like the civilian conservation board once provided jobs, skills to dump people in need as the work to conserve and develop natural resources. we still see the handiwork the national parks force throughout the country, the sense of pride and purpose and installed by programs like this is greater and cost the same as programs designed to put a few extra dollars into consumers' pockets much of which is used to purchase foreign made goods. we need to get serious about increment reform that would make the system of old age insurance and health care sustainable over the long run as longev

urage to tk about the long term.f he satt the table and said i want this and this and this he probably would have gotten it at that point. now it's very complicated. >> charlie: people tend to be not more bold but less bold in a political election. >> yes. >> charlie: are you in the end optimistic. >> i am. i do think things in general are meant to work out. that doesn't mean thatyou alon the way won't face huge issues d problems, i do think are 're facing quite a few right now and i expect we'll face more in the future. >> charlie: to understand what you said is to focus on the long term, make sure at the that we do not. >> while we're doing the, all this needed short term tngs whether they be driven by politics or whatever, let's keep also doing the right thing, you know. it's pretty much the old fashion way but i look it. >> charlie: i do too. but some people will ask what is the right thing. there's anpini on what is the right thing. >> that's true. i don't think there's one single way but we can point out som th

somebody in the administration really has to start thinking about that long term even if long term only means five-seven years. how you sell a billion dollar program to people who think they are done with the payments? >> deputy secretary nyes will be chairing a roundtable discussion on friday with approximately ce 30o's of major companies to talk about the opportunities of investing in iraq. he will also be meeting and having a number of press interviews along with ambassador geoffrey to make the case that iraq is worth all the effort and worth the long-term commitment we have made. thank you. >> those people might have a financial incentive to invest in iraq because it might be good for their 30 companies but the american people do not necessarily on that portfolio and will not see it that way. i will say it again -- if ain't got no one to sell yo it,u ain't got no one to buy it. i taught english better than that them of the gentleman from virginia is recognized for five minutes. >> i wonder if you could comment -- i should ask -- what is your understanding of how much funding there i

of gazprom believes however that the disparity between its prices and long term contract prices will soon be minimal. that's leadership in the next two years so we can expect sport prices to go significantly higher gas futures whole winter time to love and when did well when trying to the team if they're not already higher will be around four hundred dollars or a thousand cubic metres and this is equal to the price formula in our long term contract. despite the low european and asian markets the u.s. markets are trading in the black monday though speculation that they will fall throughout trading is high due to continuing concerns over the debt crisis in greece. and various sentiment dominated the russian markets on monday the us yes and the my stakes close more than one percent in the red looking at individual

is this going to be a good deal long term for san francisco? >> the report has been reviewed by economists on all sides. i do think it is a great deal. it is not only for the historic nature of the event. but people are putting up their own money to help us repair dilapidated structures. one of the reasons why the port is not the maritime operation as much as it used to be is because the properties are in bad shape. it is very expensive to repair the underwater structures. i say that as a city administrator involved in reviewing the capital plans. we have not fixed because it is too expensive. we have had to rely on private investment, smart investment, to make some of these piers turnaround. the cruise ship terminal is one of the big focuses. we're looking at building a new cruise ship terminal and having it available for the america's cup, the center of it, and being able to use it for generations thereafter. everything we're putting in the long wharf -- and along the worth will last beyond the america's cup events. we're trying to do its sma

what is china's demographic structure suggest for looking very long-term, the long-term growth trajectory? and perhaps long-term budgetary? >> right. a very good question. so china is aging. the experts like peter diamond and nicobar and others that have advised the government say they are still in the window where the state balance sheet which is gigantic, big enough to sort of sort this out, but it's not going to last forever. uncharacteristic i think olivier would concur with this, the tennessee could move very quickly when a problem is identified is not industry in the pension of social security very. knowing they've had a problem for, i don't know, probably 10 years and only now are they starting to sort of elaborate and make universal pension systems -- sorry, i'll get it. so this is a real challenge. i think it's nowhere near as serious yet as it is in europe in terms of adjusting fiscal and other arrangements, our japan for its says most extreme form. but it's not -- if they don't deal with it fairly early it could slow them down. on china's growth trajectory, demographers have di

and we deal with youth who are returning from long-term placement in facilities which are out of the state of california. and then our look toward you by improving the case management system by introducing an electronic way by details the work and the reports that are filed and in the filing system. and we are exploring revenue options available through title 4e and looking for some adjustment in the way that those funds are calculated and referred back to the city and to address the limited options for high-risk youth who would otherwise be sent to california division of juvenile justice. continuing in our department planning for the five years, we recognize the significant challenge with respect to succession planning and recognizing in a study that was completed by the department of human resources in 2009, 75% of j.p.d. staff would be eligible for retirement and we know the high costs associated with one-time payouts and the enhanced h.r. support necessary and also the operational disruptions caused with orientation and training. not at least of this would be the vacuum of lost i

and somebody in the administration really has to start brinking about that, long-term even if long term only means five to seven years, how do you sell a billion program? to people who think they're done with the payments. >> representative ackerman, if i may, deputy secretary will be chairing a round table with approximately 30 presidents and c.e.o.'s of major u.s. companies to talk the challenges and the opportunities of investing. he will be having a number of press interviews along where ambassador jeffrey to be making the case that iraq is worth all of the effort and worth the long-term commitment that we've made. thank you. >> those people might have a financial incentive to invest in iraq because it might be good for their 30 or whatever companies. but the american people don't necessarily own that portfolio and aren't going to see it that way. if i could put on my public relations try and try to understand what the american people are going to be coming. if you anti got no wish to sell it, you anticipate it got no one to buy it. i thought english better than that. thank you, mr.

one left. >> i enjoyed the talk about china's demographic structure for looking very long term, the long-term growth trajectory and perhaps the long-term budget for the next few months. >> right. a very good question. the experts like peter diamond and make our than others that have advised the government said there still in the window with this day balance seat which is gigantic, sort this out. it's not going to last forever. uncharacteristically, the tendency to move very quickly when a problem is identified is demonstrated in the social security area. a problem for probably ten years. they started to elaborate. as gated. so this is a real challenge. i think it is nowhere near the theory as it is in europe in terms of, you know, adjusting principal and other arrangements or japan or its at its most extreme form, but it's on the horizon. if they don't deal with it fairly early it can slow them down. i am trying to slow project three. the markets have different opinions. david bloom at harvard says if you make enough institutional adjustments including how much people work, how many transitio

we are also eager to continue working on finding those long- term sources of revenue. it is not right to pay for all of this with a bond, or even to try to get very far. we have to do something. of course, the bicycle coalition will continue to work with city agencies and you folks to find those longer-term sources of revenue. so again, we are taking this seriously and we hope that you will give it full consideration. thank you. >> elizabeth stant. walk san francisco. you may have heard that yesterday at two pedestrians were hit in the city. one man was hit so badly, it was presumed that he was killed, but he is now on life-support. so pedestrian safety cannot wait. on tuesday, the national transportation for america released a report called " dangers by design." it highlighted the fact that in the last decade, 47,700 people were killed by being hit by cars, which the report points out, is the equivalent of a jumbo jet crashing every month but right now we are not seen the kind of public attention and funding that would go to a catastrophe like that. the report also fo

we're focused more on the long term.ven after you raise the debt ceiling, we will still owe $14 trillion. that is the real issue that we see out there that is looming that we have got to solve. the debt ceiling itself hopefully will get worked out. but it is short-term. >> senator warner, for the democrats, and this is where the republicans fear is coming, the -- the republicans' fears come in, the big issue is going to be any willingness to agree to significant entitlement reform, by which women entitlements cuts. we've seen the issue of medicare. when paul ryan came out with his budget, that was heavily attacked by democrats, and indeed was playing a significant role in that upstate new york election. democrats seem eager to use the threat of medicare cuts that -- to bash republicans around the head as a result of that paul ryan budget. are you confident that any deal that can be reached before august that is going to have meaningful entitlement reform that will actually be credible and believable and will not be used

in some ways the long term is more interesting and the long term i find worrisome. i think this country has a better set of problems than any other country but we have a real society problems. tunnel talks about stapling visas to people, we don't do that. we attract talented people and then we send them elsewhere. >> charlie: that's a congressional issue. congress hasn't been willing to face up to that. >> yes. a lot of these are political ises. what's worrisome they aren't just political issues because we don't have drive enough politicians. david mentioned this early. they're political people with us as a people. why we have a deficit is the reason people want more benefits than they're willing to pay for. this isn't simply a matter if we only get politician brave enough to tell the truth. we need to be willing to hear theruth and it's true we have a politician that can persuade us of the truth, that we're now on schedule to get much more medicare benefit than we pay taxes. >> charlie: what ought to be the debate coming up over the next two years abouthe american

stick -- the scale of challenges we need in terms of long-term growth. you cannot do it through spending reductions concentrated on narrow slices of government where it depends on the government doing things only the government can do. >> $45 trillion over 10 years, is that bipartisan? >> important things that happened over the last six months in this town. it is hard to appreciate from a distance. you had republicans in the house, the president of the united states, a bipartisan deficit-reduction plan, all agreeing on a broad target for deficit reduction in that magnitude of $45 trillion over years.-first 3-5 once you have both sides of the aisle committed to that objective, it is all about the composition of the objectives. if you look at 1996, we had a valuable bipartisan deficit- reduction plans in place. the most important plan -- imported change when you have both sides involved and the president saying you have a the with-we need a balanced budget, you have a chance to do some -- the most important plant, when you have both sides and about that th

about what the long term enduring relationship will look like. in the course of that discussion, we'll ultimately identify the roles and missions and functions which conceivably they could bring to the enduring relationship. i think while much remains to be discussed, it is not beyond the realm of possibility that some advisory capacity will be required. some enabling capacity will be required for afghan national security force operations. some intelligence capacity would be required. both to build the intelligence capabilities of the afghan forces, and then some counterterrorism capabilities to address any reemergence or any potential terrorists hot spot that could emerge in afghanistan in the period beyond 2014? : and i want to do everything possible to improve the detection rates and stem the flow of ammonium nitrate from pakistan coming into afghanistan. and i think we need to put serious pressure on the pakistani network distribution of ammonium nitrate. we know who the key facilitators are impacted than. they are pushing good -- these cache

plus, working solutions is committed to long-term -- to the long-term success of each business. what we do in addition to every loan is provide five years of business coaching, advising, and mentoring. the san francisco loan fund has been a bright spot in a dismal economy. has been extremely successful in creating jobs and economic development. for example, in just weeks that mission cheese has been open, sarah has already created five new jobs and the loan fund overall has created 50 new jobs. working solutions, through this loan fund, has made 27 loans to businesses. the interest rate is low and fixed at 4% to 6%. we have lent out close to the entire $680,000 of the original lending capital, and 100% of those businesses are repaying their loans. as the funds revolve, they become available for additional businesses. the funds are used for different things like marketing, hiring new employees, purchasing equipment, tenant improvements, and more. the types of businesses that have benefited from the city loan fund range from salons, cafes, retail shops -- all different types of bu

but when we talk about it, we talk about it as long term debt? >> it is dead. for atomic purposes. -- is debt. as a legal proposition, it is not treated as bad debts of by which we have been incurred -- encumbered. that is the legal definition of debt under the state constitution. supervisor farrell: it is because of the legal structure? >> that characterization. if we undertook an agreement today to pay in a subsequent fiscal year a third-party $1, that would violate the debt limit. it is an accounting treatment compared to the legal treatment, if you well. supervisor farrell: legally, not debt, but for all intents and purposes -- fair enough. absolutely a debt. >> the other thing -- an additional protection is that we again employed outside law firms to basically died as through the debt issuance process, and they render important debt bonds due authorized -- duly authorized and enforceable against the city. and so, i think there is a large history where investors find comfort in this because they do not know what our processes are , that it would be a valid

the nation's long-term fiscal imbalances did not emerge overnight. a significant extent they are the result of an aging population and fast rising health care cost which have been predicted for decades. the cbo projects the federal outlays for health care entitlements which were 5% of gdp in 2010 could rise to more than 8% of gdp. even though the projected fiscal imbalances associated with social security systems are smaller than those with federal health programs, the too are significant. although we've been born but the development for many years, the projections are becoming reality to a large and increasing level of government debt relative to the national income risks serious economic consequences. over the longer term, rising federal debt crowds out private capital formation and reduces productivity growth. it to the extent that increased by borrowing from abroad for the future income would be diverted to interest payments on [inaudible] callow? any better. okay. high levels of debt into the ability of policymakers to respond effectively to fut

if we are borrowing for long- term debt, it is 5%. we issue commercial paper while the budget is happening and then we will look into the long-term debt after we stabilize the project, and we hope to get a better market for the bond rates. it is not a separate discussion. it will roll out ultimately into the regular bond issuance. it is a bridging tool to make sure you get the best rate when you do not need to go out and borrow the money long term. supervisor chu: to be clear, the issuance or item one, the dollar amount that would be raised per month is included as part of the wsip already approved rates that have been communicated? that's absolutely. supervisor chu: in terms of item two, that will be in addition, but because it is currently commercial paper without a bond that is necessarily financing it, you do not have the impact yet? >> our projections on that, we said it would be about $41 per month for water rates based on wsip. if you add in the new meter system we are going in, we project now that the total rates would be abou

the tax rates >> in your report is a long-term budget -- cbo's production in the most long-term budgeterstate the severity of the long-term budget because they do not incorporate the federal attack economy, nor do they include the imact of higher tax rates on people's incentives to work and save, whch i think is significant. going onto the next page, you say growing debt would also increase possibility of a sudden fiscal crisis. i wonder if you could talk to me -- is simple to look at what sadness and the crazy things, but what does that any crazies need to? how fast a sudden and how big is the crisis? >> first let me emphasize most of the projections in the report of the economic conditions for comparison across policies. we do in chapter two of an extended analysis on the economy. sudden fiscal crises in other countries have come on and the matter is months or weeks or days they have generally had very destructive effects in the economy to make the decision to put off at a moment when the economy is already under siege if you will a particularly difficult. and dutcher mantles to econ

i think our long-term goals are to reduce car trips over all the city. that has to include a big reduction in the downtown area. that is an area where i think it is easy to achieve that reduction. if we make transit run smoother, we will have more people on transit. if we make pedestrian and bike safety stronger, we will have more people choosing those options. i want to be careful that we do not say we cannot do anything because it will negatively impact car trips that are already there when we know we want to reduce those overall as our long-term goal. >> we agree completely. right now, ellis street is serving as a relief for our two detours. i think it is critical to have it in place. otherwise, it would cause gridlock in the entire area. in the short term -- director brinkman: i will bring up again the response we had from the union square merchants at one of their meetings. they were pleased with the lack of traffic. i think that is an important thing to keep in mind. i have said before that traffic is not like the weather. you can do something abou

this is a long-term problem that requires a long-term solution, and that is to approach the president has taken, which is why has taken measures to increase domestic oil production. that is why he has passed the significant our rules which will ensure the more fuel- efficient cars are rolling off of the assembly line and popular in the streets of our country. his wife he is sought to diversify our energy supply -- here is why he has sought to diversify our energy supply so we do not depend on the importation of foreign oil to the extent that we do now because it mixes highly reactive in the face of spikes in a global energy market that we cannot control. >> yesterday, when former governor tim pawlenty unveiled his plan with 5% growth annually. he also wants to raise the social security retirement age. what is the president come position? >> i don't have any specifics for you. without slashing benefits -- and with regards to 5% growth, we can agree that that would be very beneficial to the economy. we think providing expense of that tax cuts to the wealthy, which we did in the last ter

i believe we serve the same goal, to serve the long-term viability of st. luke's hospital. we have had several discussions about that and mutually agree that our public health director, barbara garcia, to make sure that happens with this rebuild. my proposal for the development agreement seeks to accomplish this goal by taking steps to ensure st. luke's become an integral part of the cpmc system of care in san francisco. we have asked that development agreement implement recommendations of the st. luke's blue-ribbon panel which was charged to create a viable plan for acute-care hospital and outpatient services at the st. luke's campus. it specifically advise orthopedics as a specialty service to be provided by save lives, not for the short-term, but for the long term. we have also sought that cpmc establish centers of excellence in senior health to anchor st. luke's in the community and make its destination for senior care, which is largely reimbursed by medicare. we have requested that the charity care and medical obligations which would require the contributions at the st

i'm not sure i see the long-term solution.t seems they're in a hole they can't climb out of and that maybe no one is willing to pull them out. >> that's exactly what they're trying to work through, the european lead thers week. of course they've been grappling that for more than a year and are still working through what mix of ultimate solutions are going to be helpful but they have to make that choice. >> again, i would emphasize that what those governments are committing to and what they've already delivered in many ways, they've got years to go, are very substantial, very difficult set of reforms and there's no path without going through those reforms. >> is there a firewall between greece and spain, italy, ireland, or is the contagion danger high through the rest of the year? >> it's important this financial arsenal they put in place is available and deployed to make sure they have that firewall. one of the most important things that's happened over the last six months or so is that spain has been able to earn more credibi

we've got to think long-term. thank you, everybody. [captions copyright national cable satellite corp. 2011] [captioning performed by national captioning institute] >> live coverage from the pentagon begins at 9:45 on c-span three. "washington journal" is followed by an afghan stan reconstruction contracts

i hope we do it inthat conversation in the long-term. my concerns were these. it was not the center itself. i wasn't convinced by the process -- although it could have been we found the best space possible, but i wasn't convinced that we necessarily found the best space given the price of the building we will be doing the lease in. currently we spent from there are 3,2,000 a year up to $78 ,000 a year on current real estate. this is going to had another $1.4 million annually towards what we spend on real estate. on howard street, i think that is a positive step forward. i am worried about the additional cost. i wonder if we could have negotiated a better deal. i am also curious as to why, and i brought this up as budget committee, when we looked at around 10 other sites, all of which were owned by the city, there were at least three hours that did not score that much lower than 1455 market that were a lot cheaper that i felt like we could have put our space in. i know there was an argument that maybe those spaces weren't the most appropriate. i brought this up

we will be proposing a long-term fix to the payroll tax. it will be fair and still allow our revenues to continue. that is under way. i have been talking about the empty storefronts. we will do our best to incubate ideas and make sure these get some attention. we want to work with people to make sure that if we can have some better ideas, it may be multiple commercial tenants in one place, we will experiment with that and other things being tried throughout the city. we will bring those ideas out as well. >> i want to add to what the mayor said. my office and staff and many of us in the richmond district, the merchant associations are working hard with us to fill the vacant spaces in our neighborhood and support small businesses. next speaker? >> when you visit some countries like italy or spain it does not matter if you are a resident or not. everybody pays the same price. only one country discriminates against rterrorists. that -- only one country discriminates against tourists. that is russia. you pay different prices in the museum. when

if there is one a two players, or region to internalize, it is in the long term self-interest, i will close with a little talk of terminology. i encountered this with friends in asia under the heading of lifestyle. two say this has to be different. what are we talking about? you are in a blu sure and i wear sandals and somebody has a ponytail. we talk about individual choices with the broad spectrum of where we think of people free to make individual choices and it is nobody's business. not a social issue with relatively few constraints. what the chinese mean by lifestyle is something completely different. it doesn't fall into the realm of individual choice but of collective choice. how you build cities and what transportation system you have and how many kids your allowed to have. and whether you can drive a car and what kind of car. , etc.. that is a clash of civilization because in the asian setting among the countries, the notion that there is a very large area that is predefined constitutionally is free from interference. from society and government, it is not the accepted propos