what i'm going to show you here ok so this is a bank's reserves say they have a reserve requirement of ten percent so this is their reserves it's ten percent banks can lend out ninety percent then of the money that they have so this has an effect of expanding credit in the economy as you just saw now when a reserve requirement is increased what does it do it forces bends to read big to reduce lending so you see this come down because they have to keep more of that money in their reserves in that pot that you saw down here at the local central bank so they can loan less so what is the effect of china cutting its reserve requirements for its banks as we've just seen them do well in their case it's by a half a percent and this is basically a green light for the chinese banking system to loan more and create more credit now as they know that is inflationary it tends to put upward pressure on prices but now you know what it is that they've done this with the reserve requirements and what they are. still ahead you've been an active audience watching and commenting on our show asking quest

that is only excess reserves -- excess reserves that are held above and beyond expected losses. this is important. the total cash reserves we are holding is $33 billion. >> but the insurance is one trillion? >> it is over one trillion dollars. >> in that report, i think, being close to zero under the forecast, the chance that future net losses could exceed capital resources as close to 50%. i am under the impression that the study was based upon june and july data. is that correct? >> it was based on predictions for house prices and the latest data as of june. >> this serious delinquency rate has increased from june into september. my data shows we have a 50,000 more delinquent loans as compared to june. >> as the portfolio grows, the number increases. as with all types of loans, there was an increase in the delinquency rate at the end of this summer. home prices have performed better than expected given that home prices are the single most important factor on predicting the value of the fund. it is likely that the actuarial understates the capital reserves relative to do 30. >>

army reserve. 40% of army reserve soldiers are minorities. the nation is only like 25% or 26%. 25% are women. and out of the 6,136 african-american officers and army reserve, 2,474, maybe that's any officer, are women. why so many women in the reserves? >> well, number one, i think it's the mission of the army reserve, we have a lot of medical units, we have a lot of units that are not combat type units. so they really have -- we have only one infantry battalion in the army reserve. the rest of our mission is logistics. we have medical units, civil affairs, which involves a lot of special skill sets for civil awares -- affairs. a lot of what we do is attractive to females and two, it's a welcoming environment. >> you said abimportant moment in your life was watching your mother and grer deal with a car salesman. when was that and why was it so important? >> i was in grool, maybe third or -- in grade school, maybe third or fourth grade, in the early 1960es -- 1960'sing back in illinois, we need -- we needed a new car. my grandmother had a vice

army reserve. what is the difference between being in the regular army or the reserve? >> when you are in the citizen army, you are a full-time citizen and a part-time soldier. since 9/11 and even before iraq, the part-time really was not part time, because the advent of technology. i am almost in a constant contact with what is going on. people say, "how do you manage this?" and say that you care about your child soccer career, you become a coach or an assistant coach, and you find a way to work that into your schedule. it is very much the same for people who serve in the reserve. it is something i think that we are very passionate about. we care about our country, and we feel there is a contribution to make, so you fitted in with your full-time civilian career. >> what is your full-time civilian job? >> i am a clerk of the court in wisconsin. we cover many counties, and i have a staff, an operational staff that manages the caseload. i have two bankruptcy judges that i work for, and it is one of the greatest jobs in the world apart from this one, i think. >> how long h

nugent: i continue to reserve. the speaker pro tempore: the gentleman reserves. the gentlelady from new york. ms. slaughter: i'm pleased to yield three minutes to the gentlewoman from connecticut, ms. delauro. the speaker pro tempore: the gentlelady from connecticut is recognized for three minutes. ms. delauro: mr. speaker, while this body wastes its time debating yet another bill that does nothing to create jobs or help the middle class, the american people are looking for action from us. we need to stop supporting handouts for wealthy corporations and pass an extension of the payroll tax and under employment benefits heedly. despite saying for months if not years that tax cuts are their most important priority, the majority's failed to act on a critical extension of the payroll tax. even though it would save the average american family $1,500 a year. 400,000 jobs will be lost if we do not pass this payroll tax extension. the majority's also failed to act on extending unemployment insurance benefits. even though u.i. have kept 900,000 kids out of poverty last ye

strong language for the federal reserve. in the event of that scenario, that the european situation were to deteriorate further, what is the fed prepared to do to prevent this outcome? >> i think my language was more about how unacceptable the high unemployment rate is, if the unemployment rate were to go higher because of the events in europe that would be very unsatisfactory. >> to be specific and my time is limited, i will read you the whole paragraph. that is not what the reinstatement says. >> i will stipulate to your interpretation in the interest of time. the federal reserve is doing what we think is appropriate to support lending in the united states and that is why we have engaged with foreign-exchange swaps with five other central banks. i don't think we contemplate any other action at this time to do anything else in terms of providing assistance to europe. is really their problem to solve from the federal reserve perspective. the ecb has liquidity in place in terms of the eurocurrency. they have swap lines we thi

the commitment to reserve training and to reserve service must be clear. we must convey the message that we are serious about making the reserves is serious part of our 2024 structure. we are absolutely clear that this has to happen. and i recognize that there will be some areas of residual skepticism. it is for us and for the reserve forces themselves to overcome that by demonstrating commitment, capability, and confidence. >> can i go back to my original? ? -- can i go back to my original question? when is the committee in the public in general going to have a detailed animation response to all of this crash marked the moment what seems to be happening is that some of the things you have said are known to those directly involved, but it does not seem to be clear, coherent response. there are individual measures gradually taking place. is there going to be a detailed response that sets out the program, the time lines, responsibilities and so on? >> >> yes. there have been a number of steps that have already been taken. at future reserves 20 program manage

and then with reserves than about excess reserves and that they can therefore lend and what they didn't do is having the deposit depositing money they hand out a fraction it gets left out you get the chain reaction of a time when they get to the stage back where they have no excess reserves and conlin anymore that's the almost the exact reverse of what happens in practice what happens instead is the banks create. creating money in the process and that money then circulates through the system which later creates the reserves that they then need to balance the whole system and the central banks have pretty much required to create those reserves later on so the the bank but that doesn't happen when you have non bank lending when another bank lends even something as speculative as goldman sachs and so on to actually land and then finance you. know all the various forms of asset cross gambling their bank account at the bank the genuine bank goes down to create a loan somewhere else so they get without creating money and of course somebody has to service that day so you actually because they'

as you know the federal reserve is a relatively recent. institution. in america i said i mean it's the past hundred years in between friends to me what is a hundred years it was founded in one thousand nine hundred eighteen having been enacted in one thousand thirteen so from the dawn of the constitutional history of america seven hundred eighty nine to nine hundred thirteen with some exceptions having to do with earlier. variants on central banking this country was without a central bank and so what how do we fix interest rates while there was a supply of credit or savings in the demand for credit and savings. and the marketplace tended to the setting of interest rates rather well the period one thousand nine hundred to nine hundred thirteen for example in the authority of the terrific and universally esteemed financial economist charles good heart was perhaps the most successful it was the most successful periods in american finance interest rates were stable bank failures few. bank earnings strong nothing like the systemic collapse that we saw near

and that is only access reserves that are -- i'm sorry, the capital reserve account is only excess reserves that are held above and beyond expected losses. and this is going apportioned. total cash reserves here holding against that book is a total of dirty $3.1 billion. >> at the insurance in force the 1 trillion, is that correct? >> it's over $1 trillion. that's correct. >> now in that report if they quote you correctly, with the economic net worth being very close to zero under the base case forecast, and the chance that future net loss on the current outstanding portfolio could exceed cap under the base case forecast, and the chance that future net loss on the current outstanding portfolio could exceed cap under the base case forecast, and the chance that future net loss on the current outstanding portfolio could exceed cap is close to 50%. i am under the impression that study was based upon june and july data. is that correct? >> it was based upon predictions for house prices. >> and the serious delinquency rate has increased from june to september. is that correct?pppp my data shows w

economy for the federal reserve coming up in december? >> it does. what we've seen over the course of today and this morning is the fact that central banks are acting in a coordinated fashion, which means they probably have a play book that extend beyond just today's action into other activities such as some kind of kiwi three or other activity by the fed at their next meeting. >> tom: what about the chinese action lifting some restrictions on lending, is that a consequence of the slowdown in chinese exports? >> it really is more of a parochial issue to china specifically. they're trying to battle inflation while not letting their economy slide into recession. growth in china is really still quite strong, north of 6% even by the most pessimistic estimates. but at the same time they've been trying to clmp down on lending, and today's action is really an effect to try to fine tune the economy there to make sure it doesn't risk falling into a recession. >> tom: these two actions taken together at all change your outlook for the end of the year for the f

plan, allows us to achieve that prudent level of reserves. by the time you get to your 2022, we are satisfying the required reserves. on our side of the budget, it seems to make sense that it is either two or four pennies. the level of our programs that we fund is a key variable. to our customer department, you can see what this will mean to their budgets. what i have done for you on page 12, as we go through the municipal railway line, that would be $1.3 million added to their budget in costs. their budget is about $800 million. adding $1 million to end $800 million budget would be less than one-quarter of a percent. a very small percentage of their budget. nevertheless, it is serious money. in the case of the public health department, their budget is $1.8 million a. this would add costs of about $600,000. it would be even less than a fraction of a percent. while the dollars are large in million terms, as a percentage of some of the budgets we are talking about, they are relatively small. the options are two. the base one option will bring u

reserved visitors and tourists are welcome to see all that and take pictures most of the reserve territory is covered with marshes there are ideal for bird rookeries in spring and autumn when thousands of migrating birds stop over to rest as it turns out studying the composition of the bugs helps retrace the biological history of the region russian scientists take peat samples for tests. deposits are the best sources of information studying their layers makes it possible to estimate the rate of peat accumulation but this is also important if we are to understand the dynamic development of the natural environment because these settlements are chronicle of nature. the unique feature of the reserve is that it covers the territory of three countries. the natural environment is uniform on both sides of the river russia is on the eastern bank norway and finland to the west russian and finnish scientists spend most of their time collecting biological material which is later studied in norwegian laboratories monitoring and conservation firms are very important because for the nature of course stuf

required by the reserve policy. and what this does -- this takes into consideration the very large shortfall that we were slated to run out of money in 2014, and instead, this increased over four years and brings the new projections up to the red line, keeping us above zero in all years. and the reserve policy -- you can see there, there are few years where we are close to the zero line, but we are technically above this. and technically, this does comply with your reserve policy. what this does not do is it does not give back any of the very difficult cuts you had to do with the solar programs, reducing this to $2 million next year and the energy efficiency programs, or the city-own three nobles. those were very difficult cuts that you can see on the slide. this is on slide #5. you have reviewed those at a previous meeting so i will not go into too much detail on those. the municipal rate package before you today, with the entities previously received in the principal -- the principal fund must -- funded rate, 9.1

janice currency reserves are the biggest in the world, but -- china's currency reserves are the biggest in the world, but it says it cannot resolve the problems. >> in recent decades, china's currency reserves have grown to 2.5 trillion euros. speaking on friday, the chinese vice foreign minister suggested that the europeans should not expect any of those reserves to flow into the eu's bailout fund. >> i say that the idea that china should defend europe should not stand. that means the money should not be used this way. we have always been an active participant. >> china's reserves are akin to the country's savings, and the 1997 asian financial crisis taught beijing how important the reserves are to the nation. >> egypt's electoral commission has turned in the first results of voting with 67%. the commission did not announce the results of the paul. it is the first democratic election in egypt in 60 years. observers expect islamist parties to do well, especially the muslim brotherhood that was banned under the mubarak regime. all right, for more now, let's go live to cairo where our cor

royce: reserve. i reserve the balance of my time to close. the speaker pro tempore: the gentleman from kentucky. mr. whitfield: i might make one other comment about turkey. we all know that with the arab spring and the movement toward more free government in the middle east, the prime minister has been one of the real leaders and spoken up against syria and spoken up against egypt and spoken against other countries and been a real leader in trying to bring about a measure of freedom in that area. i might also say that the time period that's been discussed earlier about the early 1900's, of course during world war i when a lot of these things took place, the country, the ottoman empire was fighting for its existence at that time and there were atrocities that took place on both sides. but as i said, this resolution, there isn't anything this this resolution for anyone to oppose, but i think we should recognize that turkey is making great strides that they are returning properties. that they are taking a step as has been pointed out by secretar

i'm happy the meet a reserve unit. i know there's an excellent unit london scottish just around the road. perhaps that's something i can get without difficulty. >> can i recommend you do it before the current co hands over to his regular counter part? >> the chairman would like us to take this offline? >> oh, sure. >> just one point. you said there is skepticism and certain amount of alarm in the regular army. the worry is that the 30,000 won't be reached but you have assured us it will be reached by the appropriate time. the alarm in the regular army is also because the sdsr suggested the regular army will go down to 92,000 but they are taking another substantive cut down to 82,000. that is a huge amount out of the army and the sdsr thought that we could manage on 92,000 not 82,000. i'm delighted about the reserves but worried that we take a great slice out of the instantly deployable regular army. and that worries me. i have to say. >> is it not, of course, the case whether we have 82,000 or 92,000, the whole of the

major reserves for many years. from here we will set out from the main lands of the coral a peninsula to this readily and rebuts you commensal as they are the farthest tips in the northwest of our country norway lies beyond them. and humorous military bases was stationed in the barents sea during the cold war after the collapse of the island curtain these places became open for tourists today it's possible to see the maneuvers of the nuclear submarines. and that's where this country's best kept secret is our nuclear undersea fleet is based there. but you can feast your eyes upon all kinds of submarines that regularly surface include of oil bay that are protected by patrol boats. on the other side of the call open in the baazigar river empties into the bright city. the village of wasicka is situated on both sides of the asteroid fifteen kilometers from the sea tides raise the water in the river to a height of up to ten meters and increase its salt content. at. the high tide makes it impossible to bridge the river so

speaker, i reserve the balance of my time. the speaker pro tempore: the gentleman reserves. the gentleman from mississippi. mr. harper: thank you, mr. chairman. it is clear that what has happened here is there's been no response to many of the allegations of mismanagement that we have heard so far. it is clear on the things that have happened that the e.a.c. in particular, it is time for this to come to a conclusion. it is an agency whose average salary for its employees, which the employee size is more than doubled in the last -- since 2007, the average salary is $106,000 for this agency. . rond reagan said the closest thing on earth to eternal life is a temporary government program, and this was supposed to last for a period of three years. the national association of secretaries state in 2005, did a resolution, a bipartisan group, did a resolution saying, bring this to an end. they renewed that resolution again in 2010 and yet it remains. if we cannot get rid of an agency like the e.a.c., then we are never going to be able to get rid of anything up here. with that i reser

the federal reserve has foreign currency swaps, it's a normal function of the l federal reserve for quite a number of years. explain what that means. >> well, in a nutshell, what it means is that the eurozone can actually swap currencies with us and others we send cheap dollars over to europe, and they ship expensive euros over to the united states. >> okay. so why is this an issue that the federal reserve in this current environment, why is this foreign currency swap agreement an issue right now? >> well, again, it's not being done at parity which means we're just not providing them swapping them the current is at a market rate. it's actually a subsidized rate. we cut the rate on it. >> okay. >> so, in other words, again, we're subsidizing europe through the swap. >> okay. so really the issue here is that we've reduced the, the cost of this exchange and made it below what is the current market rate. therefore, incentivizing the european central bank to transact this type of swap agreement with the u.s. federal reserve. so what is, so in light of that, um, dr. lockman, i've asked you this

and establishing criteria for the release of the reserve.is not an expenditure of that money. supervisor campos: great. with that, i would simply ask my colleagues to move this item forward. if you have any of this of the questions coming as a more than happy to address them. we also have the public defender and the chief attorney who are here in the event that any questions as well. supervisor chu: thank you. i will like to offer the public defender an opportunity to say a few words on this item. >> thank you very much, supervisors, for hearing this resolution today, and thank you, supervisor campos, for sponsoring it. for as long as i have been public defender and even before then, this fund has been established in order to allow our office, as well as the superior court, the indigent defense program, to provide representation in cases where individuals were charged with death penalty offenses and/or special circumstances offenses where a person faces the possibility of a sentence of life without the possibility of parole. the reason why t

rogers: continue to reserve. the speaker pro tempore: the gentleman reserves. the gentleman from maryland is recognized. mr. ruppersberger: i you i yield myself such time as i may consume. -- i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. ruppersberger: i think we really need to discuss the issue of cybersecurity. cyberthreat is the one thing i think that keeps a lot of us on the intelligence committee up at night. how serious a threat it is to our country. we are being attacked on a regular basis. and we as a country need to do what we have to do to go forward and deal with the issue of cyber. cyberposes one of the greatest threats to americans for both an economic and national security perspective. we are losing millions of dollars because of cyberattacks. our intellectual property is being stolen daily just as we speak. our pentagon is being attacked as we speak. we have seen countless examples of cutting-edge u.s. ideas being stolen and used for foreign products. cyber is also a major national security c

-- rainy day reserves. while we start with our lost up on balance we assumed in the current year budget, we have healthy growth and our tax revenues. $165.9 million next year. the year after, that is a good sign of our economic recovery, something that the mayor has talked about that he wants to make even more robust and speed up even more with his economic plan. it is a good sign, a sign that we are out of the recession in the city. however, we do have a revenue loss is projected. particularly from the state. as i have talked about in previous meetings, reductions in the metical rate at a good hospital, cuts in laguna honda. other states, particularly at the human resources agency, other reductions at mental health, one-time revenue, various other changes. all in all, from this year to next year, the prediction is we will see a net change of $20 million in revenues, and the following year, $105 million in revenues. the problem in our deficit is not a revenue problem is more -- problem, it is more a deficit

that is how much the federal reserve pays to make up no matter what the denomination. the system of money we have now, one thing that is important to remember is it took a long time for the u.s. the last large nation in world to come to the central bank model. they got rid of it -- but the basic model for how modern money works isn't a lot of ways the opposite of the way people talk about it in mainstream political discourse. i give the example of the origin of the bank of england. in 1694 a group of london merchants made a loan to the king of england to fight war in france. and he gave them a right to take the 1.2 million pounds he owed them and to lend it to other people in the form of bank notes. that is what british pound sterling bank notes actually are. i don't have any in my pocket any more but if you look at the ten pound note it says i promise to pay the bearer the sum of 10 pounds. it is not actually 10 pounds but a promise to pay 10 pounds. at that time silver or gold worth something. and that mainly affected you can pay your taxes to cancel the debt. but it

because that is something that definitely is incomparable when you look at china's foreign reserves being the largest creditor compared to the united states the largest debtor nation so we will continue this conversation for now that was professor and lee. right it's time now for word of the day where we break down a financial term or concept for our very smart for your but perhaps not the financial expert and given that our discussion with and least centers around the united states and china and there are disputes between the two countries so often center around the issue of currency we want to break down currency peg today and let's take a look at how it is being talked about in the news right now so in this article about china's currency the you want being up late on a stronger central bank guidance that was received in a weaker dollar abroad the wall street journal writes that you want is that four percent against the dollar this year and seven point seven since june of two thousand and ten when china and its currency pegged to the dollar and vowed to make the you want more flex

morgan not only don't they don't have any reserves that they're not placing any in reserve collateral to make loans but they're just stealing people's money out of their accounts as collateral to make loans off their balance sheet on the dark pools to offset their shorts over positions and other nightmarish balance sheet items as a way to try to extract themselves from their own fraud so this is the trend going forward it's not even a zero reserve banking it's mega reserve banking well let's see where this is going in the near some of the predictions being made by banks and bloggers around the world saxo bank outrageous predictions for two thousand and twelve the perfect storm they predict e.u. declares extended bank holiday during two thousand and twelve they predict that the december treaty changes prove insufficient to solve e.u. funding needs particularly those in italy and the e.u. debt crisis returns with a vengeance by mid year in response the stock market finally caves in and drops twenty five percent and short on. i predict that the first country to declare a bank holiday wil

i am particularly supportive of the reserves item, i think the operating reserves of 25% on the current basis is an important goal that we are normally at, succeeding those. this, for me, is very important. life -- i feel lonely doing these things but this is how we defend against emergencies, and let the bondholders know that we are doing the right thing. at least, the three outside bodies -- if this proposed policy could be brought to those three entities, in the next month or two, it would be good prior to the commission adopting a policy, often those entities see something after this has been passed. it would be good to consult with them beforehand. this was about everything on the policy. let me go back to the overall budget. i think this squares well -- i was thinking about the costs -- that are fixed and what is variable or discretionary, within the budget. it seems a lot of the staffing is fixed, and you kind of need the. it is not like you will not staff a treatment plant at three in the morning. but in terms of what is a choice, things like chemicals. i was focused on chemical

weighing on the market even before the federal reserve was best buy. the electronics retailer may have lived up to its name for consumers, but not for shareholders. the company earned four cents per share less than anticipated, thanks to big price discounts in most products. it profit margins fell as a result of more discounting. shares certainly fell today, down 15.5%. volume jumped five-fold. one bright spot was mobile devices, which posted a sales increase while comparable store sales of other electronics fell. the drop in best buy was felt in the consumer discretionary sector, which was the worst stock sector today, falling 2%. that was followed by drops in the material and financial sectors. while mobile devices may have been an area of growth for best b buy, blackberry maker research in motion continues to sink to new lows. with today's 4.5% drop, the stock is at its lowest price since 2004. shares have lost three quarters of their value this year. rimm reports earnings on thursday. many analysts expect it to report a drop in phone shipments even

i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. for what purpose does the gentleman from washington seek recognition? mr. smith: i yield myself three minutes. the speaker pro tempore: the gentleman is recognized for three minutes. mr. smith: thank you, mr. speaker. i, too, want to thank the chairman, mr. mckeon. we always say our committee is the most bipartisan committee in congress. we strongly believe that. republicans and democrats on that committee are committed to doing our job which is to provide the troops and make sure that our national security is protected in this country. mr. mckeon was an excellent partner to work with. it's a model for what happens when you sit down and try to legislative together. something i think could be emulated by many more committees and issues. thank you. it'seen great working with you on this. i think we produced a good product. . i want to address the issue surrounding detainee policy. i have never seen an issue more di

can create bank reserves which used to be goat and now they're just simply money the fed can create at will and literally out of thin air so over time we have made our monetary system ever more elastic if you like we have to zines it in such a way that it can create ever more money in an attempt to extend these credit booms ever further all right so in the austrian school all the depression in the united states and around the world in one thousand nine hundred thirty s. was caused primarily by the credit expansion in the one nine hundred twenty s. this goes against the prevailing theory of people like ben bernanke or part krugman of the new york times who believe that the depression was not caused by a credit boom of the one nine hundred twenty s. but caused by policies that came in after after the crash so your thoughts i would say the following you know if you look at such a crisis and such a recession it is very clear that at the starting point of such a recession or depression the economy must have accumulated mess of mis locations or imbalances and the question for us economist