the mal effect of federal reserve policy to talk about that right now and joining me from our new york studio to do so is david stockman former director of the office for management and budget during the reagan administration he's also author of the book the triumph of politics the inside story of the reagan revolution and we are just so happy to have you on capital account today thank you so much mr stockman for being here i'm happy to be here and we're happy to get your commentary because you've been very vocal very critical of the fed recently saying on national t.v. see n.b.c. you know last earlier this month that the fed and the lunatics that run it are telling the whole world on truth about the cost of money the price of risk and this is even before q e three was announced and their guidance was extended to two thousand and fifteen so first what is your core criticism of fed policy especially given the recent announcement it's based on the proposition that a monetary policy bureau twelve people sitting on the open market committee can run a fifteen trillion dollars economy in the united states and basically drive the entire world financial system it's just not sensibl

heed the former director of the office of management and budget under president reagan and the author of how crony capitalism corrupts free markets and democracy. so you are in favor of letting the bush tax cuts expire. let's talk about the fiscal cliff. this is the issue on front and center. you want those tax cuts to expire. why is that? doesn't that make the recovery weaker. >> we are in monl 38 of the recovery. we don't have the right to keep borrowing and borrowing massively until someone says we have reached a point where we can pay our bills. i think we have no choice and if it means the economy is weaker because we have to cut spending or raise taxes or both, which i think we need to do then that's the agenda before the country. we finally are reaching the point where we can't borrow our way to prosperity. >> what are the implications of this. this so-called fiscal cliff, when the tax cuts expire year end, when the spending programs expire you know you will have defense companies, health care, transportation companies laying off. they have to tell employees they are going to g

of justice. that's the state level. the f.b.i. uniform crime reporting, that's the document i just showed you, that's the federal level. and the white house office of management and budget, who is kind of the group that defines how these categories will be established. so if you look at the racial designation by agency, all three of these agencies define race in the the exact same categories, other than the the white house has recently separated native hawaiian or pacific islander. those are two categories. the state, the federal and the white house are consistent across the board in how they define race, and how they require us to report our arrest statistics to them. so this is sort of the most important concept of what i'm about to present. see you'll notice there is no hispanic on this list. so, again, as defined by the federal government, persons of hispanic origin are -- of any race. so you can have white, hispanic, black hispanic, asian hispanic, et cetera. and we are to report hispanic ethnicity according to the appropriate race. so hispanic is not on the dropdown, if you will, for race. , in crime reporting in california or at the federal level. so that was kin

he's the former director of the office of management and budget under president reagan and a author of "the great deformation." david, great to have you on the program. thank you so much for joining us. you're in favor of letting the bush tax cuts expire. you want the tax cuts to expire hoop w . why is that? doesn't that make the recovery weaker? >> i think it does. on the other hand, we're in month 38 of this recovery. we don't have the rights to just keep borrowing and borrowing and borrowing massively until someone says we've reached a point where we can start to pay our bills. i think we have no choice, and if it means the economy is weaker because we have to either cut spending or raise taxes or both, which i think we need to do, then that's the agenda before the country. i mean, we finally are reaching the point where we can't borrow our way to prosperity. >> what are the implications of this? this so-called fiscal cliff, when the tax cuts expire at year end, simultaneously when the spending programs expire, you know you're going to have defense companies, health care companies,

the white house office of management and budget says it would have to cut $109 billion in defense programs with medicare, markets rallied as bond purchase program starts to take affect. your bloomberg silicon valley closing higher, also and there is time yet again. there are holiday spending plans already, walmart coming out with top 20 toys so kids may be asking for, get ready, start sthoping, get your furbie. there is leap pad two is second followed by v tech tab blet. larry, back to you. >> the president and first lady hosted u.s. olympic and paraolympic teams at the white house today, saluting athletes on the south lawn. mrs. obama watched many of them this summer, calling a fan in cheeft president told the athletes they cannot have been better. >> importantly there may be specially conducting yourself on a world stage. >> united states won 104 medals. they took place after the summer games and a record number of people, 2.7 million came to watch. >> finding nemo is one of the pixar biggest hits, ever, what could be better than rereleasing in 3 d? >> the movie redefined animation with

under the terms of the bill signed by president obama last month the office of management and budget ation of how it would implement $109 billion in across-the-board cuts. the white house spokesman says the report will be turned in next week. well, today's disappointing jobs report fueling hopes for new action from the federal reserve. when they gather next week cover romney suggesting new measures would do little to stimulate the economy. >> i think it's hard to predict exactly what the federal reserve will do. i don't think there is any action that they're going to take the will have an immediate impact on the economy. frankly, i think they shot a lot of their monetary bullets and the bullets are not able to strike the target that makes a real difference for the american market today. lori: my next guest is an economic advisor to the romney campaign. joining me now, former federal reserve senior economist at the american enterprise institute. kevin, great to see you. let's get the price of gold, wall street on that jobs report betting that the fed seat, the firing of the printing pr

i have asked for information from the office of management and budget. ill this cost taxpayers across it country to comply with just the 17 regulations? melissa: if we have to hire all these people in order to audit and take care of and manage it. will we get taxed to pay for that. will they go out and fine people to recoup that money in order to pay for it so i'm going to be paying for it? >> well, we also heard today from a former irs commissioner and a assistant secretary of treasury for tax policy, who said, this is a quagmire. it is so complex, it is so difficult, and the compliance burden will be enormous, it is really going to put a further drag on the economy on hiring and so forth. there will be many, many unintended consequences as a result, that will be adverse to hiring, to creating, you know job positions, private sector job positions in this country. we're going in the wrong direction. we want to simplify the tax code, not make it more complex. melissa: are we turning the irs into sort of a super uber-power agency? are we giving them superhu

i once worked in the government in the office of management and budget. >> under reagan. >> indeed. president obama will know the jobs number. he gets it about 4:30 in the afternoon. do you think there will be hints in tonight's state of the union? do you think he'll be ebulent because he knows it is a good number or sadder because it's a bad number? >> i guess he'll cover the bases. he's going to talk about the need for sacrifice going forward, whatever happens. >> if you get a couple hundred jobs and beat all expectations might he linger and say jobs are improving? everyone will be listening. >> i would like him to explain why when clinton says it will take more than four years why there are 48 million people on food stamps, 23 million people unemployed. if he can answer why we are in this situation. >> those are crucial questions. we'll cover it later in the program. that's the exact question. you don't think he'll give us a hint? >> he's where he is because he's excellent. >> you're still long gold? >> still long my gold position. you can be long of europe and also be long u.s.

alan simpson former white house chief of staff erskine bowles and budget committee chairman and our forum co-chairman pete domenici and former office of management and budget direct or alice rivlin. these four individuals will present their findings and recommendations of their bipartisan panels which were separate undertakings but which came to broadly similar conclusions as to the steps that must be taken in response to our fiscal challenges. i am confident both of our panels will address the subject of sequestration or going over the cliff or whatever the title is these days, which by law will occur in the beginning of next year. i'm hopeful that our discussion will not just include the sequester matters and concerns which are very legitimate but will also go into long-term but essential structural problems and challenges that must be addressed and solved. most analysts believe that our lawmakers at the white house will find a way before january 12 leg the worst effects of sequestration particularly in the defense arena. even if this is a -- the threat alone is creating a climate of uncertainty that is harmful to the defense industry and defe

of the budget committee in the house of representatives when he was a representative from california. and then when president clinton came to office, panetta was appointed poppa's of -- office of management and budget. panetta understand budgets. and it is said that keep more than anyone else during the clinton years was the one who projected, who forecast the idea of a balanced budget, which is what happened at the very end of the 20th century. in my judgment on -- no matter who wins, whether it be obama or romney, whether the new president or reelected president is facing the same set of problems. the winner will be facing the same political environment that president obama faces right now. meaning essentially, the same kind of economic realities that he will have to work within as obama is working within right now. budget cuts, in other words, could end up determining the shape and the look of america's defense policy. you would like to have it backwards. you would like to have the proper policy conceived by experts, and then there would always be the money to be able to have that kind of policy. what i am suggesting is that we have reached a point in our political and economic develo

of v.a.'s lease authorization. mr. speaker, i want to assure our veterans and stake holders that i'm committed to working closely with my colleagues in the senate, the administration's office of management and budget and the con gredgesal budget office to find a way forward on those authorizations in the near future. i urge my colleagues to join me in supporting h.r. 6375 as amended. i reserve the plans of my time. the speaker pro tempore: the gentleman from maine. mr. michaud: i yield myself such time as i may consume. i'd like to thank my colleagues for their hard work and effort on this important bill as well. each year as we assess the construction needs of department of veterans' affairs we do so with the safety and help of our veterans in mind as well as fulfilling our statutory requirement to authorize major medical facility projects. this is a responsibility that we do not take lightly. h.r. 6375, the v.a. major construction authorization and expiration authority extension act of 2012, would authorize approximately over $377 million for major medical facility projects, specifically including in the authorization for mental health buildings at the v.a. medical cent for the seattle, washingt

but we saw on friday the release of a report from the office of management and budget showing how deep of the domestic spending areas as well. that's, i think, fair to interpret as an attempt by the white house to push back. so everybody's going to try to blame everybody else. the fact is nobody want this is. i think it's also important to note that with congress's approval ratings far lower than president obama's, i don't think it would be accurate to suggest that the house republicans have an advantage when it comes to public opinion on this issue. >> let's look at the latest nbc news battleground states. it's a map which shows the president with an overall advantage at this point. but there are still a handful of crucial battleground states. >> you know, it seems with every passing week, the road to the white house, this electoral map you're showing becomes more and more difficult for governor romney. the real heart broker must be ohio. the president almost approaching 50% with a seven-point lead. no republican in modern history has ever won the white house without winning the bucke

of science report that occurred -- that was released in july. you and i had a conversation in early august about the office of management and budget and i'd like to thank you personally for the graciousness, the kindness that you demonstrated toward me in our conversations and your interest in this topic in seeing a good conclusion to this facility being built. every time you testify, every time i asked you questions, you expressed your support, not only for the facility but for the location and the process by which that site location was made. i think we're at the point now, minneapolis, which there is no reason for you, your department not to allow the facility to proceed. there's a lot of uncertainty for the contractors that are on site and when their contracts expire and all money that has been spent on this facility, the state of kansas' and the congress appropriated $40 million for use in the utility plant and another $50 million to begin construction. it seems clear to me whether or not those dollars are available for those purposes rests in your hands as well as whether or not we proceed would require -- let me say that differently. it wo

from the credit committee, yet the department of energy both in president bush's administration before and career staff of the office of the management and budget and department of treasury. moreover, when it was clear that by rushing the solyndra application it actually could result in a very embarrassing bankruptcy for the president, the department of energy pushed for a very questionable legal move that actually subordinated the taxpayer interests below that of private equity interests. a move that we have now seen will result in the complete annihilation of the $535 million from the perspective of the taxpayer. one of the glaring issues that the investigation committee uncovered was that because no penalties existed in the 2005 loan guarantee authorization, officials at the department of energy had nothing to fear. and actually breaking the law as it was written by our committee and passed by this congress. indeed, the department of energy intentionally hid its head in the sand refusing to consult with either department of treasury or department of justice for an outside reading on whether subordination could be a legitimate option. instead

chairman of the budget committee in the house of representatives when he was a representative from california. when president clinton came to office, pineda was appointed head of the office of management and budget. pineda understands budgets. and he more than anyone else during the clinton years was one who projected in protest of the idea of a balanced budget which is what happened at the very end of the 20th century. whether it be obama or romney the same set of problems recast for political advantage, the winner is going to face the same political environment the president obama faces right now. meaning essentially the same kind of economic realities that he will have to work with is obama is working in right now. budget cuts, in other words, could end up determining the shape and the look of america's defense policy. in other words, you would like to have it backwards. he would like to have the perfect policy conceived by experts and there would always be the money to be able to have that kind of policy. what i am suggesting is that we have reached the point in our political and economic development where the idea of national defense, being assured of enough money to do the job, mayb

the house of representatives when he was a representative from california, and he then when president clinton came to office, panetta was appointed head of the office of management and budget. panetta understands budgets and has said that he more than anyone else during the clinton years was the one who projected, who forecast the idea of a balanced budget which, in fact, is what happened at the very beginning -- at the very end of the 20th century. so in my judgment, no matter who wins whether it be obama or romney, whether the new president, reelected president is facing the same set of problems recast for political advantage, the winner is going to face, essentially, the same political environment that president obama faces right now meaning, essentially, the same kind of economic realities that he will have to work within as obama is working in right now. budget cuts, in other words, could end up determining the shape and the look of america's defense policy. in other words, you'd like to have it backwards. you'd like to have the perfect policy conceived by experts, and then there'd always be the money to be able to have that kind of policy. what i'm suggesting is we'v

and visiting professor at georgetown university. before returning to brookings, ms. rivlin served as vice chair of the federal reserve board, 1996-1999. she was director of the white house office of management and budget in the first clinton administration. in february 2010 alice rivlin was named by president obama to the commission on fiscal responsibility and reform. she also co-chaired with former senator pete.com chi the task force on debt reduction. and, alice, did i say that you also were head of cbo at one time? but you have done so many things, and alice is a well known commentator on an awful lot of business programs, so we're delighted to have you. i don't know who's going to lead off, but we're delighted to have you and pete. we'll hear from you and then go to questions for all hour of you. >> thank you very much. thank you very much, senator nunn. excuse me a moment. we have an agreement among ourselves that i will speak first, she will speak second and answer all the questions. [laughter] you all don't know what a fortunate man i have been here in my, as i approach old age to be asked to join with alice rivlin in forming a task force to attempt to address the issue of the debt of the unit

of people who use the mortgage interest deduction make less than $100,000 a year. let's turn to david stockman, former budget director and director of office and management of budget for president ronald reagan. great to have you on the program. >> great to be here. >> george will says the romney tax plan doesn't add up for the middle class. what's your assessment? >> that it doesn't add up and his budget plan doesn't add up. he has a secret plan to cut the budget. after all, the republicans were the party of fiscal rectitude. when you ask them in this budget what is it you're going to cut, it's not defense. $700 billion, we don't have industrial enemies left in the world. we have been fired as the policeman of the world. why is he wanting to increase the $700 billion? second, he complains about entitlements and so forth. i know you disagree with that, but i think we need to means test. not for the mom and pop who only have a social security check. they haven't said a word about $800 billion in social security needs testing. medicare, it doesn't take effect until 2023. what are they doing in the interim. so my point is, they have a secret plan to close loopholes a

few days ago in response to the requirements of the sequestration transparency act the office of management and budget transmit a book that spells out the dog consequences of sequestered to our testimony today provides you some high level assessment of the impacts. these consequences really can be avoided. the reason is simple to sequestration was designed by law to be inflexible. it was never intended to be implemented. it was an act as a prod for both houses of congress to provide a comprehensive plan to reduce the federal deficit. the only way to avoid these bad consequences now is for congress to enact a balance budget deficit plan that the president can sign and that will hold sequestration. if action is not taken we're faced with the dollars consequences that the sequestration transparency act report spells out. cuts and the national defense option will total $54.7 billion in fiscal '13. of this amount $52.3 billion would come out of the dod budget. each of our nonexempt budget accounts will hit 9.4 precipitate the only major exempt account and all those on military personal. the president has e

it does this by requiring the office of management and budget to develop performance standards to determineeral agencies are providing high quality customer service and improving service delivery to agency customers. according to a 2010 g.a. report, federal agency customer service standards were often not made easily available for customers to find or access that were not made to the public at all. if somebody wants to know how that agency's providing the service and the standards it must be made available. second, the bill raises the bar for enhancing quality and access to customer service. this is accomplished by requiring agencies to collect information from the customers regarding the quality of the service and, again, this must be a way that we raise that standard. third, it puts a face on accountability. the bill requires that each agency designate an employee to be its customer relation soss that way when somebody's dealing with a federal agency we must know who they can complain to, who they must talk to in order to provide that customer service. just like in the private sector that

despite repeated red flags and warnings in 2009 from the office of management and budget, and d.o.e. officials about the company's financial condition and the market for solyndra's product, were they viable? it is clear that d.o.e. failed to adequately mop tore the loan guarantee -- monitor the loan guarantee. the company hemorrhaged cash throughout the year 2010. when the warnings came to fruition and solyndra was out of cash in the ought tomorrow of 2010, the obama administration doubled down on its bad debt, bad bet restructuring solyndra's loan in early 2011 and putting wealthy investors at the front of the line ahead of taxpayer, which was a clear violation of the energy policy act of 2005. right up to the bankruptcy filing, the administration was willing to take extraordinary pressures to keep solyndra afloat for political reasons and ensure the first loan guarantee was not going to be a failure. the investigation also showed that the d.o.e. failed to consult with the treasury department as simply required by the energy policy act prior to issuing a conditional commitment to so

we know it is supposed to happen on january 2 but the office of management and budget is expected to manage what happens. one of our reporters define storage talking about how omb can decide when they start to apply sequester. it could be in the last quarter of the coming fiscal year before they actually do the cuts as a percentage of a whole which will be more severe. but the gives congress wartime to figure out what to do. it is a tough situation. would you have is both sides are demagoguing the issue. there are both using sequester to try to win an argument trade republicans are saying sequester was the president's idea. it is laughable that either side tries to blame the other because the majority in congress supported the thrust of being part of the budget control act. so there are a lot of things that could transpire or change things. i did a cover story for cq to see what happens when sequester hit. what could happen. the assumption about sequester and anything is that everything stops here. whether you talk about medicare, social security, sequester, everything assumes he will

until january 2011 he served as a special advisor to the direct your the office of management and budget as well as the national economic council, one of the authors of the affordable care act and ask for a delivery performance. so welcome to both of you might actually like to start with seeing what she thought of the governor speech. >> you know, what resonated for me in the governor speech was really talking about the new reality, talking about the new reality, talking about the reasons that's possible. my viewpoint today of the believer and help i.t. as a think about tomorrow in the future of health care, it's really hard to imagine a publishing some of the things the governor mentioned in a paper-based system. in my own practice i've seen a lot of benefits of improved efficiencies, learning, vicious so many benefits to technology but have yet to be explored in health care and really need to work within the framework of medicine. we are still at that paradox and i think the future is very bright. >> the oregon mac experiment is on a four pack around the country, which are absolutely p

the office of management and budget transmitted a report that spells out the dollar consequences of sequester. our testimony today provides to some high level assessment of the impacts. these consequences cannot be avoided or substantially mitigated by planning alone. the reason is simple. sequestration was designed to be inflexible. it was enacted as a prod for both houses of congress to devise a comprehensive plan to reduce deficit. the only way to avoid these bad consequences is for congress to enact a deficit-reduction plan the president can sign. if that action is not taken, we are faced with the dollar consequences the sequestration transparency act report spells out. it will total $54.70 billion. of this amount, $52.30 billion will come out of the dod budget. each of these non exempt budget accounts will be hit with 9.4%. the only major exempt accounts involve those that fund military personnel. what affects willie's cuts have on duty? funding for our overseas contingency will be subject to sequestration. we will protect them to the extent we can. the support of our war fighters is our

and that is obama's increase in spending from 2010, to 2013. this is reagan from 2008 to 1985. these are numbers from the nonpartisan congressional budget office and from the office of office of management and budget and you can see that the growth of federal spending is lower than it was under any of the presidents that i talked about. indeed, the article that ran with this chart concludes that the growth of federal spending under president obama is the lowest it's been since the eisenhower administration during the winddown from the korean war. remember that besides a $1.1 trillion deficit, president obama inherited an economy that in the month he took office lost over 800,000 jobs. that was january. the next month, february of 2009, we lost about 700,000 jobs. but that's also the month in which we passed the recovery act. by the way, when the recovery act was passed in february of 2009, the unemployment rate was already above 8%. the recovery act also known as the stimulus, is what people usually point to when pressed to explain why they think president obama has increased spending, but the truth is more than a third of the recovery act was tax cuts. the stimulus cut taxes from 95% o

pennsylvania until january 2011 he served as a special adviser to the director of the office of management and budget as well as the national economic council, um, one of the authors of the affordable care act and an expert on payment and delivery system reforms. so welcome to both of you. and i'd actually like to start with seeing what your thoughts were about the governor's speech. >> go ahead. [laughter] >> you know, what resonated for me the most was really the talking about the new reality. talking about the new reality, talking about reaching for what's possible. um, you know, my viewpoint today is as a physician, as a believer in health i.t., and as we think about tomorrow, as we think about the future of health care, it's really hard to imagine accomplishing some of the things the governor mentioned in a paper-based system. you know, in my own practice i've seen a lot of the benefits of improved efficiencies, patient engagement, learning. i mean, there's just, there's so many benefits, i think, to technology that have yet to be explored in health care, um, and really need to work within the f

according to the office of management and budget's latest midsession review of our financial condition, our nation's debt will increase $4.4 trillion more over the next four years. rising to $20 trillion. and in that period of time we will virtually have doubled the entire debt of the united states, since the democrats had the majority here and president obama was elected. double the entire debt i and the course we remain on does not get better. this is their budget numbers. this is the course that america is on, and we're not getting off of. it is $1 trillion a year in deficits. the u.s. debt per household is now $137,000 per household, up $80,000 since just 2002. and while americans tighten their budgets to make ends meet in the family, congress has not passed a budget in 1,239 days. erskine bowles, president obama asked him to chair the debt commission, noted recently -- i saw him on television just a few moments ago at a conference -- he said, when you consider social security, medicare, medicaid, food stamps, entitlement programs and interest on the debt, that's what the tax reven

we are working closely with the office of management and budget.hrough their guidance on specific impacts, and i know that the omb has indicated that later this week, there will be a report to congress with more specifics. .. drive conclusions on the impact to serve as. we appreciate the work they've done, we don't have any specific comment on moderate their studies because they are all based on individual assumption or which may or may not play out under sequestration scenario. >> thank you, mr. chairman. >> thank you. chairman mica. >> okay, inspect their general and mr. delay in hand, what period of time did you cover in your review, inspector general? >> chairman mike acoma cover the last several years. >> okay, but did you include the post. after february 14 when we send the new legislation or as most of this before that? >> matches before that, sir. we have updates and faa initiatives post february. >> mr. dillingham? >> yes, most of our work was it every 14 days but we also updated the work where we could in the time allowed. >> the time rea