good many central banks around the world already have a numerical definition of price stability and we in our statement said that for our purposes were going to define price stability is 2% inflation. and so the markets will know that over the medium term, the fed will try to hit 2% inflation even as it also tries to hit it subject to his for growth and employment. finally, the fed has also begun to provide guidance to investors in the public about what we expected with federal funds rate in the future given how we currently see the economy. so given how we currently see the economy, we tell the market something about where we think the rates are going to go. to the extent that the market is better understand their plans, and that is going to help reduce uncertainty and financial market to the extent that our plan are in some sense more aggressive than the market anticipated, we also tend to ease policy conditions. okay, so i can monetary policy has been used to try to help get the economy back on its feet. the recession, which is the period of contraction, which is very severe as o

in those situations prosperity stipple stability and contentment for the vast majority of us are pretty much nowhere to be found and this is all happening because we have failed to take a step back and look around we fail to ask ourselves that fundamental question what is the purpose of an economy if progressives are going to take back america just like they did with the republican teddy roosevelt the early one thousand nine hundred busted up the big corporations with f.d.r. in the one nine hundred thirty s. then it's imperative that we do you redefine both the word freedom and the purpose of an economy and that begins with asking the questions what is freedom what is the purpose of an economy everything else from universal health care to the rights of working people to regulations on oil barons and banks there's follows from those questions it's time to go back to earlier definitions of freedom that is the koch brothers have redefined it as the right to pollute and corrupt politicians for italy but as f.d.r. defined it as the right for americans to be free to chase their dreams because

the second topic you identified is my statutory role on the financial stability oversight council. congress designated the director to serve as one of ten voting members. the u.s. consumer finance market represents loans and deposits and it is central to stability of domestic and global capital markets. because we share the responsibility of regulating with some of our colleagues our mutual participation furthers our efforts. participation also provides a broader vantage points on triggers and vulnerabilities that pose broader risks. i have found this to be valuable as we work towards a sound financial system that protects consumers and helps safe guard the broader economy against systemic risk. third you asked how our statory obligations protect. the consumer bureau does not generally enforce the law in such bapgs. we have the authority to adopt rules that can effect community banks as well as larger banks. we will help community banks by our new oversight of nonbank firms. i have heard from community bankers who refuse to make a mortgage loan only to go down the street and get a

the financial stability oversight council has spent a lot of time on europe and thinking through what its implications are and might be to our financial system. that work, of course, is on going. for the first time, the range of ent tea u.s. government to work together in engaging counterparts in europe to make sure that we are as well prepared and have thought through the various contingencies that might be necessary. >> do you have anything to add to this? >> with respect to european preparation, i just say that one thing about the euro zone problems they have been with us for some time as a result of which we have been able to regularize a system of oversight of u.s. sfinancial institution exposures and activities in europe. so right after the first greek problem as ros arose, 2010, on hoc basis we have been looking at these, we have been able to put in a system that allows us to check the positions and exposures of individual firms against -- aggregated data whether from market sources or from supervisory sources to make sure both we and the firms have a handle on what is going on

some are doing not among the tools was the creation of a council called the financial stability oversight council which the site is a member, which helps regulators coordinate. we may particularly on account

the relative security and stability that iraq achieved at that very high price is still fragile. in order to meet the challenges it is facing, iraq needs to make meaningful progress in two main areas, power sharing and revenue sharing. our iraqi brothers have suffered dramatically from ethnic and sectarian agendas as well as authoritarian policies in the past. no other country in the region has the humanitarian and natural wealth that iraq has and it's this wealth can only be beneficial if all iraqis have an equal and fair say in the way their country to be run. turkey will continue to engage actively with all the segments of iraqi society to help iraq successfully navigate this volatile period. in our eyes, there is only one iraq to basra. and regardless of the backgrounds, our goal is to help all iraqis. our policy towards iraq is drive by principles such as inclusiveness, power sharing, and a functioning free market economy that is integrated with the region and international markets. we stand ready to support any leader and political group that will work for the realization o

european policymakers have taken a number of actions but more will likely be needed to stabilize euro area bank, calm market fears about sovereign finances, achieve a workable fiscal framework for the euro area and lay the foundations for longer term economic growth. u.s. banks have greatly improved their financial strength in recent years as i noted earlier. nevertheless, the situation in europe poses significant risks to the u.s. financial system and economy and must be monitored closely. as always, the federal reserve remains prepared to take action as needed to protect the u.s. financial system and economy in the event of financial stresses escalate. another factor likely to weigh on the u.s. recovery is the drag exerted by fiscal policy. reflecting ongoing budgetary pressures real spending by state and local governments has continued to decline. real federal government spending has also declined on net since the third quarter of last year, and the future course of federal fiscal policies remains uncertain as i will discuss shortly. with regard to inflation, large increases in ene

. >> it is important that wall street reform implementation is completed to enhance financial stability and reduce systemic risk. secretary walden, just to be clear, it does not seem to be the jpmorgan trading loss was systemic. do you agree, and what do you agree will be the implications of the recent losses at jpmorgan on the wall street reform that have yet to be completed? >> thank you, mr. chairman, for that question. obviously, the loss at jpmorgan chase was a big loss and one that will affect shareholders, but we concur in his judgment that it is not about the solvency of the firm or for that matter, the stability of the broader financial system. i think that what's clear is the lessons we all learned from what happened at jpmorgan chase will serve as important lessons, insights, into the range of dodd-frank implementation work to come, whether it's the volker rule or questions about risk management or enhanced prudential standards, or for that matter, capital, and i think this incident underscores the need for us to pay attention to examples like this in order to learn those les

stabilizing the bond market is easier than stabilizing the italian market. >> good to talk to you againanks for that. >>> we just got reports of an earthquake of magnitude of 4.9 hitting taiwan, according to the central weather bureau. we'll keep aur eyes on that. one of china's influenceal government vers has made bearish comments about the economy saying annual growth could slip if june indicators disappoint. beijing is due to publish second half data by mid-july. henry, if we get a sub-7% growth number, reaction from vinnesters? >> i think in the uk we've seen this sort of mining sector, major exposure to china that's been derated, ignoring when we've seen. the truth in other thing we'll see, sloet of chinese growth. what are the causes of that? more comfortable view on iran? but i think it has been to some extent that china has to slow down otherwise inflationary story will be too great for western economies. while we don't get benefits for filling up or tanks it does flow quickly in the states. i think all in all the damage has been done to, if you like, the shares that most closel

for all of this to work, we have to have a stabilized situation. at the moment, europe is not giving the right signals. there has been some progress in improving the institution architecture, but not enough. the big moves have not been made yet. i am hopeful that there is a wind of change of we the french election which will change the -- with the french election which will change the emphasis and balance it with growth. at the moment, you have demanded not been there because wages and salaries have been cut, and also a system that is not functioning and does not provide working capital. >> how close are things to unmanageable there? >> we had a fragmented election results. we are going into an election where the result is hanging in the air. the polls give the conservatives and the left pretty much equal results. it is touch and go. it is clear that the parties are too bid for one party to shoulder. we tried it for two years. >> my sense is that the coalition in greece was doing its best, doing all the things it was asked to do. that was not produ

after decades of turmoil, somalia strikes peace and stability inside the war-torn country to see what progress has been made. welcome to "bbc world news." i'm geeta guru-murthy. also in this program -- norway's top forensic psychiatrist appears as a witness in the trial of anders breivik. and the musical "once" scoops not one, but eight of the theater world's top awards. >> stock markets in europe have responded positively to the bailout of spain's beleaguered banks, which was agreed over the weekend. the leading asian markets were also up after spain became the fourth eurozone country to be offered a rescue deal. spain's prime minister said the loan package, which could be worth up to 100 billion euros, will secure the future of the european single says currency. mike wooldridge has more. >> after the long, downward slide, spanish stocks rose sharply when the new week of trade -- trading began. shares in the troubled lender bankia, which are requested 19 billion euros to cover bad loans and assets, rose by 16%. the increasing confidence by investors was also reflected elsewhere in eu

. >> it is important that wall street reform implementation is completed to enhance financial stability and reduce systemic risk. just to be clear doesn't that seem to be that the jp morgan trading loss was systemic? do you agree? and what do you believe are the implications on the wall street reform rule makings that have yet to be completed? >> thank you, mr. chairman for the question. obviously, the loss at jpmorgan chase was a big loss and one that will effect share holders. we concur in his judgment that it is not about the solvency of the firm or the stability of the broader financial system. i think what is clear is that the lessons that we all learn from what happened at jp morgan chase will serve as important lessons into the range of dodd-frank implementation work to come whether questions about risk management or capital. risk management, enhanced standard, or capital. this incident under scores the need for us to pay attention to examples like this in order to learn those lessons both with. with respect to dodd-frank in limitation. and the broader limitation of supervision t

however, the majority can be stabilized on medication, but what they need is a place to be discharged to. the next level down is a cute psychiatrist. the many hospitals are involved, i will first focus on one. these services help stabilize a patient and we initiate any treatment options that are inappropriate. they are currently operating 54 acute psychiatric beds. while the inpatient psychiatric beds are often filled to capacity, the majority of those patients could receive and lower level of care if that was available to them. some of the patients are eligible for other low level of services. this means that not acute patients in the hospital because they need to stabilize the medications or because they need a different level of care, because they need this high level of care. i mention that other hospitals also provide this care. pacific has 18. st. francis has 31. also, the psychiatric hospital at langley quarter. with the exception of langley porter, which is a dedicated psychiatric hospital. these other run at about 60%. as mentioned previously, hospitals also receive psychiatr

from the chinese point of view what that navy has been doing through the decades is maintaining stability in the region which allows countries like china in particular to engage in peaceful commerce and china's economic growth in the last decade or so has been a directory's result of that stability in the region for which the u.s. naval presence there has been an important aspect so so the increase of the number of ships in the region in this pacific region so shouldn't mean then crease in the full human of mutual trade with china or is it because i'm increasing. possible. threats that can. you see the united states is not really increasing the size of its navy it is holding maintaining the level of its navy and in particular the important measure here is the number of carrier task forces and we're holding that number of carry cash we're not increasing them at a recent interview by the president of the american security strategy it was proposed to reduce one period task force and the person rejected that religion on the basis of the importance of maintaining stability in the asia pacific

. >> spanish prime minister says he'll push eu leaders to help stabilize financial markets at thursday's summit. >>> debate over euro bonds. merkel says she won't approve for the ideas, quote, as long as i live. >>> deal under threat. two weeks before shareholders vote to the deal. >>> one california town has run out of options and set to final for one of the biggest municipal bankruptcies in u.s. history. >>> welcome to today's program. one hour into prading session in europe. one to the upside. 7 to 2 on the dow jones 600, 8 to 2. follows a flat session in europe yesterday. ftse was down three points. did make it four consecutive days of losses. we're up under 0.5%. the cac up nearly 0.4%. the ibex up a third of 1%. marianna coming out and saying not only are funding costs getting unsustainable in the long term but working on solution-preferred stockholders and seeking solution for retailers with preferred stocks as well, as far as the banking industry is concerned. the key point is, spanish bond yield have been heading higher where we've been up 6.83%. gilt, euro is higher, 6.9 %. tam

and receiving long-term stabilization come equipped to $13.3 million in net present doubt you. a major document relating to the trust exchange, a conditions to convince of the trust parcel and termination of the trust parcel between the port and developer include the dda, between the port and developer, a lease between the port and developer for the trust resell parcel, purchase and sale agreement governing the conditions for the conveyance of the trust parcel, trust exchange agreement between the port and state lands for the realignment of the trust within the site, and in its agreement between the port and developer for the maintenance of the open space parcel. in brief, here is more detail on each of the agreements. dda cover and a condition that must be satisfied prior to the port leasing the trust to retail partners. the obligation of the developer to instruct their retail improvements on the treasury parcel and remainder of the site. commissions on the delivery of the product improvements, terms of conditions for public financing. anticipated relevant dates in the disposi

first to promote economic growth and stability. the federal budget made -- must be put on a sustainable path. the federal budget deficit, 9% of gdp, is likely to narrow as the economic recovery needs to -- needs higher tax revenues. nevertheless, the cbo projects its -- if current policies continue, the deficit would close to 5% of gdp in 2017 when the economy is expected to be near full plumbing. -- full employment. under current policies and economic assumptions, the cbo projects the structural budget gap and the ratio of debt to gdp will trend upward thereafter. reflecting rapidly escalating health expenditures and the aging of the population. this dynamic is not sustainable. at best, rapidly rising levels of debt will lead to reduced rates of capital formation and increasing foreign indebtedness. it will provoke a fiscal crisis that could have severe consequences. fiscal policy must be placed on a sustainable path that results in a stable or declining ratio of federal debt to gdp. even as fiscal policy makers address sustainabi

like the stability that monarchs and khadafi and mubarak and ben ali these ben brought stability and here voting yes for the fiscal treaty is going to bring stability but bad debt banks should go bankrupt according to max keiser at an event in dublin he said if they are capitalists they should obey the rules of capitalism if you make a bad debt and screw up then you've got to pay the consequences you can't go to the government and get a bailout that's not capital. that's not even socialism that's crap little ism right i was a speaker at the financial terrorism conference and will be in london in manchester during the conference i came up with an excellent point i thought in terms of the bondholders of angle irish and the government is paying them off even though it's an unsecured bond an unsecured debit i suggested pay in coming in but or pay off the creditors in a billion or two billion worth of butter put the cows on over time you know there should be huge billboards i shouldn't say keep stability vote yes it should be triple time l.c. keep the teach work in well i mean that's a go

all the regulators joining us today are members of the financial stability oversight council, a body created to monitor risks facing our financial system. most here all work in the focal world to prohibit proprietary trading with government issued insured deposits and the fdic continues to work diligently to implement the living wills requirements and establish the liquidation authority for financial institutions. similarly while there is a need for strong regulation of all financial institutions wall street reform recognizes that small community banks should not be treated the same as larger banks. because large complex banks take on the most risk and pose the greatest threat to our economic stability they should be required to pay their fair sh e share. like wise small banks should not have to pay risks taken on by larger competitors and assessments have been lowered accordingly. i hope to hear from our witnesses today about the steps they are taking with regard to small banks. some have claimed that the wall street reform act was not the right set of solutions to the crisis and th

that is for a patient or a person, a runner, a walker that needs more stability, additional stabilitywhat the shoe provides. and that comes in different colors, different levels of padding. depending on the shoe as well because every shoe is different. you can put them in your athletics or work shoe, dress shoe. >> so it's a good idea. >> it's a good idea. for someone who has a problem with a heel spur or history of plantar fasciitis, they would benefit more from custom made inserts which are typically done in the office. these are specifically made for that person's feet. >> so that's an orthotic. >> it's a custom made orthotic. >> dell solano, thank you so much. i know i'm always looking for the right shuchlt i already heard you swha my problem is. thank you so much for coming in. our time, 11:52, and coming up, queen elizabeth not looking her best. >>> plus meteorologist tom kierein will be back whether we kierein will be back whether we every driver is different, and we've got great news for them all. now you can try snapshot from progressive before you switch your insurance. just

she said funding recipients would be subject to strict and, long-term, that would help stabilize theo. >> there is a legal connection here between sound policy and solidarity. that is a very important. we back the euro. we want it as our stable currency. we believe we can run our economy better with it, that our living standard will be higher, and that is why i am is seeking agreement from you all. >> while many in the opposition are wary of handing over more power to brussels, the general consensus in parliament is that the common currency must be saved. >> and voting has just begun after that debate. let's go to john who is following things from our parliamentary studios. is the government going to get its two-thirds majority? >> i think that is very likely. i just returned from the chamber. and just to clear up a possible misunderstanding, because i think in the international media, this is often being and accurately reported. this debate, of course, the chamber today is not about the concessions that angela merkel made to spain and italy. it is about two international treaties th

i also know that there are risks to stabilization with. civil war in syria with all the consequences. news of war. we also discussed a number on which we agree specific goals at least to the negotiations that should resume security of israel. palestinians. many of those matter is now only promises can work together and have common ground i wanted also in particular to emphasize relations between our two countries and our little response ability to find a political solution to number of conflicts this is the essence of this meeting will be followed by others and the meeting of ministers prime minister throughout the year two thousand and twelve i know that. was in a hurry here. that is waiting for him. questions not to many and if it can't answer a question. like. for start i would like to think mr president for his invitation. mr president has any merit in fact. every issue that we have discussed he left nothing to me nothing for me to comment on. apart from. the fact that we discussed. each of these issues in much detail. both of our bila

there is a problem of spain which needs to be stabilized. and the europeans need to make a vision of what it is going to look like going forward. the bottom line is continued headwinds with gusts, and it's going to feel very destabilizing for a while. >> susie: a the love people i'm talking to today are talking about the destabilization, talking about a lot of turmoil on monday, no matter what the outcome. and then you have all of these world leaders and policy makers meeting in mexico for that g-20 meeting. is there anything that they can do to cushion the blow from this greek situation? >> so the world leaders can use words. it is the central banks that have actions. the central banks can do two things as pointed out earlier. they can inject liquidity, and they can ensure the normal functioning of markets. so the good thuz the central banks seem to have developed contingency plans, and seem to be willing to implement them. the bad news is that limits the downside. it doesn't provide the up side, and that's why this uncertainty, which basic

this area is sensitive for stabilization of low-income people. a lot of them are not the people that are the problem on the street. there is a lot of -- low-income people that are an asset to the committee. they need housing and their housing is fragile. they need transit. and we cannot do any more deals where the developer gets a windfall. the building owner gets a windfall and all the sudden gets glamorous tenants and not one penny is paid into the affordable housing funds and then we take our city money and to a dedicated bus line for that building. that is insanity. we have to as we go through this process build the money back in for low-income services for housing and transit and not have stars in our eyes because all this and we have glamorous tenants. i think a glamorous tenants are where people love to give press conferences about. we really need to keep low- income people that really need housing in this neighborhood and housing should be upgraded and money should be there for housing and transit. thank you. president fong: any additiona

but what we have in the past is not political stability to start the school and the stagnation now we have political stability which is based upon democracy we need sometimes you know to set up the foundations of the new political system i think within one year or two years no more than that to see is coming back in normality and the process to come back to normality you know i think everyone would agree with the fact that there were economic and political basis for revolts in arab countries but there are many scholars that i've spoken to most of them agree that the arab spring was carried out with the support of the west and you are someone who has lived in the west and you've come back when the revolt started in your opinion how much could have been established without the west's help you know that it causes completely diverse we have a view that the we're supporting. the previous despotic regimes but i did mubarak was where the by product of the west in the name of political stability this is the latest in no not at all that it's reached because there is movement on the ground who

but i think, bruce, in the first order i put stabilization. they need to have the tools that we have. roger aldman said it this morning. i wasn't even talking to him. when i was thinking of these ideas in the last several days. you need to have the deposit insurance, bank bailout money, those tools that stabilized the u.s. they do not exist in europe now. >> the market carnage that is being created by the lack of action, basically, is what's -- what steve's point is. the damage that's being done right now. they have the funds, as you said. they just don't have the political will to put it all together. as a result of that the rest of the globe is suffering. >> there's no doubt about that. there's also no doubt that it could get a lot worse here. but issues around deposit insurance, issues around bailout funds for a country like spain, possibly support for a country like italy, that money exists. it's a question of how that money will be used. the money won't be there to solve problems. it'll be to create a window for other adjustments. but the

so go ahead to your second point. >> the second one has to do with financial stability. the question is does the prospect of very low interest rates for a long time, does it create problems for certain types of firms like life insurance companies or pension funds? does it induce successive risk taking? does it lead to effects that could be counterproductive in the longer term? there we do extensive monitoring, extensive analysis to try to identify any such problems, but it's always possible we might miss something. >> okay. and it sounds like you're not -- you're not discounting -- you're not refuting the possibility that it can happen, inflationary effects. you're just saying you think you can time it in such a way that it is less likely to? >> there are to separate issues. one is our timing of when we take monetary policy back to a more normal stance. in any monetary policy easing episode, there's always the question of whether the fed gets it exactly right, too soon, too late, and it's always the case that if the fed takes too long to remove monetary accommodation you

and once again i stress we are not protecting the regime we are protecting chances to achieve stability in the region of the chances to use if preserve stability in the arab world and we also to protect international law because the way that the syrian crisis will be a result will play an important role in the. world tomorrow whether the world will be based on the un charter or the world will be considered a place where might makes right people say contrary. mr lavrov you mentioned when i was cited for you you could get a whole rushes. that i see cooking with because i just got it was a typical of which there was. a console and when you come on that when you question if that of russia and america yes i mean it's got a social pressure and american citizens second question have russia and the us discussed a yemen scenario according to which i said well resign and leave syria thank you if you can respond in english i'll be very grateful. you know we have enough for information that you know if evidence about arms being supplied to the syrian opposition. so that arms and.

there are some financial stability issues that we are monitoring and have to be taken into account. so any kind of assessment of appropriate policy must be both at the outlook for the economy and for -- and at the cost and risks associated with new measures and new steps that might be taken. that being said, again, i think at this point we still do have considerable scope to do more and we'll continue to monitor to see how thing evolve and we're looking primarily at the labor market in this respect if we're not seeing, sustaining improvement in the labor market that would require additional action. in terms of balance sheet actions. we're unlikely to do more maturity extension for a while because we've taken it for as far as we can and we'll take other types of steps in order to make the amount of stimulus in the economy. >> i hear a lot of conversations about the liquidity trap in the u.s. after japan and the bubble burst. if that happens how could economy escape from here? thank you. >> well, the u.s. economy is in a situation where short-term interest rates are close to zero and