some investors are looking .orward to increasing rates joining me now to explain his lisa abramowicz.ave rising rates? why would they look forward to it? >> why would rising rates be bad for bonds? let's talk about that. the conventional wisdom is yields rise. the bonds you already own lose value. people say, look, i can get higher yields by biting other debt. why should i -- by buying other debt. why should i buy this to get yields that are lower? if you are a bond investor that things yields are going to rise, if you hold a lot of cash or you cane instruments, buy bonds when yields go up to capture those higher yields and deliver bigger returns. it ends up being a positive. >> it just depends on when you make the purchase. >> it depends on how much cash you are keeping or how quickly you can liquidate. how much cash or how much -- how big of a proportion of cash-like assets do you hold? that drags too much, down performance. if you don't hold enough, you cannot capture the higher yields and you lose out. >> how much could benchmark yields rise this year? we started off the year with

christian-ono row dill jouse in trying to be as straight orward in your answers as i am -- when it comes to raising the debt limit what may be the mits if we fail to raise the debt limit? > we think the failure poses very significant risk. we haven't actually done that before the country, we have not let that debt limit last for any period of time. but if it were to happen, then that could be very large and negative ramifications for the financial system and for the u.s. economy and maybe the global economy. >> when you say "maybe the global economy" is it because we're connected and because we're the largest economy on the la set? >> the -- both companies are very interconnected and we play a similar goal because they're viewed as such an asset. if they were call into doubt be trusting would nd costly for u.s. treasury in borrowing. >> when it comes to health care, you already spoke about -- somebody asked you question about the projections. in 2009, the c.b.o. estimated that spending for medicare and in al would reach 10.5% the year 2049. will reach about 8% in 2039 that looks like it'

remarks,orward to your we will then have time for theussion not -- held by president of our latin american initiative, and questions from the audience. if you are following us on twitter, please use the #bachelet. thank you for joining us, prime minister. >> thank you for those kind remarks, and in particular thank you for being there with us, watching the football game, suffering as we suffer. thank you for that. the board of the brookings institution -- and the acting and the director of the latin american initiative, -- the secretary-general and his excellency -- ministers and senators and congressmen of the delegation, distinguished ambassadors, officers and representatives of the u.s. government, professors and members of academia, and i see a lot of good friends here. i started this to give a little wethe latin american touch, usually start this with a mention of all the important people. it is always a pleasure to return to the united states, which was my home for several years. where learned important lessons and made close friendships. brookings and those who we areored this meeti

what we were much more straightfstraightf orward. we caught them. hoover wanted to send them right to jail. so the last one here had his secret letter writer. you have to read it, it's just -- the red says troops, nina, are coming to new york next week. so that's the secret writing, uncovered, these chilling messages. so here's one of the nazi spies to give an example of someone that was caught because he's a bermuda traffic. he was based in new york city, kurt ludwig, and so this is one of his mugshots here on the left. he was a nazi spy and he used pure met on. is in one heard of that? as common as aspirin. oftentimes people used dual use sick of writing in other words, medicine that could be both used for headache and for secret writing because when the fbi knocks on your door, that's just headache remedy. of course, when you find the toothpicks, you know, what are you writing, or even the letters themselves. i was amazed how many literacy wrote. i saw them in the finals. you should try it at home, to write secret messages, invisibly, for long pr