if you say yes okay we will do it and that was the guy that became the treasury secretary. so, they've been behind the scenes very powerful for a long time. i think ironically as a result of paulson being the treasury secretary and all of the troubles that goldman found itself in politically and from the public relations point of view it is unlikely that the current ceo of goldman sachs, llwyd blank fine, is going to get the call from president obama to be the treasury secretary, so they've had an incredible amount of power on wall street and in washington, and frankly the rest of the world and governments around the world for about 100 years, and as a result of the crisis, i think maybe this spigot has been turned off a little bit although they still have the head of the commodities futures trading commission was a former goldman partner and the deputy secretary of state is a former goldman partner, the world to become head of the bank is a goldman partner and the head of the guide is about to, mario, considered to be the leading candidate to take over the european union is

that was the guy that became the treasury secretary. they've been behind the scenes very powerful for a long time. i think ironically as a result of, you know, paulsen being the treasury secretary and all of the trouble that goldman has found itself in politically and from a point of view, it's unlikely the current ceo of goldman sachs, lloyd blankfein is going to get the call from president obama to be the treasury secretary. they've had an incredible amount of power on wall street and in washington and in frankly the rest of the world and governments around the world for about 100 years. as a result of the crisis, i think maybe the spigot has been turned off. although the head of the trading commission was goldman partner, and secretary of state is former goldman partner, head of the world bank, and marchy draggy who is the leading candidate to take over the european union is also a former goldman partner. they are around. don't -- >> host: they seem problem -- they seem to be everywhere, don't they? >> guest: chances of them being tre

to the treasury department you know what he's selling notes keep building the bed we're just going to blow past as we move what if what if obama did what reagan was advised to do because now he's in the situation where he really wants to spend president meanwhile i mean a few things that element as you mentioned before isn't actually incurring a lot of this prudent but we wish it would because we're still going to spend after we had it it was like wishful thinking rice right. throughout their lives and american people like to think that they think i'm saying that they might stop spending money we don't have a novel you know one thing i want to we even have a limit on it's only fourteen in the courtroom yeah exactly exactly but the thing about making in mind too is that the american government is a credible player in the global marketplace and even china is still saying that investing in america is an extraordinarily smart choice even when they own their body really property in america they're taking our drive and converting it into hard as its ear which we can't print our way to recla

that includes maintaining costly tax cuts, costly to the treasury. that means addressing entitlement programs. we are an aging population. more and more of us will be collecting social security and medicare. baby boomers are retiring. these are all things that the parties are trying to impress in congress right now. host: indianapolis. republican. scott, good morning. caller: i have trouble with the word entitlement. i have taken social security since i was 10. it is not an entitlement. i have probably contributed quite a bit of money since then. -- and i have been treated to social security since i was 10. -- contributed to social security since i was 10. they are calling it entitlements like we are drags on the economy. we are fleeibeing blamed for a completely inept government. we're blaming other countries for our problems, however, we are a problem. we of a completely inept government. that is what caused the uproars over the past couple of months. guest: it is a point well taken, and people should be more careful on how they entitlement things.

host: a little bit more on the story. treasury secretary geiger has warned for months that the government would soon -- treasury secretary timothy geithner has warned for months that the government would soon reach its debt ceiling. he has already suspended the program that helps state and local governments manage their finances. he will begin to retire -- he will begin to borrow from retirement funds from federal workers. they are legally required to reimburse those funds. democratic line, a chase. caller: we have a spending problem, but the five big oil companies were talking to congress about $2 billion in tax relief. isn't that a spending problem? people are saying that obama- care is not bipartisan, but mitt romney past obama-care in massachusetts. host: speaking of oil, the senate bill that you might want to look up is a bill to repeal tax breaks for these large oil companies. there is no firm agreement to bring this up, but the majority leader says if he can not reach an agreement with senator mcconnell, he might call clotu

the u.s. treasury secretary, he said that there is no way that dominique strauss- kahn can run the organization given the charges. they would like to have them formally appoint an interim leader. people like timothy geithner would like a formal appointment while dominique strauss-kahn faces these charges. >> what is next? >> dominique strauss-kahn is at rikers island in prison with thousands of inmates. he will appear back in court on friday. his lawyer will appeal the bail decision. the judge might defer that to a higher court and will also possibly as more details come, this might be presented in front of a grand jury which is made up of u.s. citizens. their job is to look at the evidence and assess whether the evidence matches a certain vote and whether it should go to trial. >> you are watching bbc news. police in southeastern mexico have discovered at least 500 men, women, children that have been crammed into the trailers of two lorries. they are thought to be from latin american, india, and japan

the. trouble for u.s. treasuries and again it would still trouble for the united states dollar i mean europe and the euro. what for europe and the euro the euro in the way i believe i personally was a transitional experiment currency the euro is technically strong but it is culturally still a weak currency it is not yet by no means equal currency the special drawing rights and the myth and make our little words into a country. it is a strong mechanism because as it stands right now it is a basket of currencies that includes the united states on the euro pound sterling. or a fourth currency now it is stronger our there is a strong core to have the brics currencies are in call resume russia india and especially china so the fact there are dispersed special drawing rights will be strengthened in quantity and be more of a why it was called as far as the currencies that spans would make many countries like. russia like india feel more comparable keeping the euro back and central bone reserves in special drawing rights wit

. ♪ flash, aah-ah ♪ flash, aah-ah >>> the day the treasury department has been warning would come hasit the debt ceiling set by congress, freezing the government's power to borrow money. so what should the government do now? some experts think they have the golden answer. cnn's mary snow has more. >> reporter: as the united states plowed past its debt ceiling, the treasury secretary manured to allow the government to keep borrowing until august. congress is nowhere near an agreement to raise the debt limit. to buy time for spending cuts, some conservative economists think the u.s. should sell assets, like land in the west leased if are farming and ranching and the tennessee valley authority. chris edwards of the think tank, the cato institute, which advocates limited government thinks the u.s. should even sell its nearly $400 billion worth of gold. >> i think selling gold would show that congress and the white house are willing to consider new ideas to pay down the debt. that shows progress and a reformed mindedness, i think, that will calm financial markets. >> reporter: the treasury

money does not sit around long in the treasury. it may well be spent to help pay for other affordable care act provisions or anything else it can be spent on. your $100 is spent, but i have a promise for the hospital insurance trust fund that anytime i need that money back i can get it. so let's say we spent for other coverage expenses, and three years later i need it back to help pay for hospital insurance costs. so i let treasury no and they come up with $100 in cash plus the $5 in interest they owe or whatever it might be. they gave me that cash and i spend it so so far we have a need for $200, $100 over here for the coverage expansion and $100 for hi. we spent $200 i got my money back but you only paid $100. when i got my money back treasury had to raise that money some of the way. they are to spend your $100 they had to raise it by further borrowing or not spending some other $100 or raising a new tax. so, on the one hand all this is nothing new. that is traditional trust fund accounting. this is just the way it works through t

. >>> and the next move for the treasury department as the u.s. hits its legal borrowing limit. >>> and the shuttle "endeavour" blasting off on its last mission. i'll have a conversation with astronaut and trail blazer mae jamison. and then america's job hunt. >>> always, always, always have resumes readily available. it's one of the boy scouts things. always prepared. but what we'd rather be making are tee times. tee times are the official start of what we love to do. the time for shots we'd rather forget, and the ones we'll talk about forever. in michigan long days, relaxing weather and more than 800 pristine courses make for the perfect tee time. because being able to play all day is pure michigan. your trip begins at michigan.org. [ male announcer ] there's just something about werther's caramel that makes a chocolate so smooth and creamy, you don't just taste it, you feel it. ♪ magic [ male announcer ] werther's original caramel chocolate. what comfort tastes like. >>> check out the stories from across the country. a jumping castle goes flyin

. >>> the u.s. treasury secretary has asked congress to raise the debt ceiling as the federal government has officially reached its borrowing limit. plans to use pension funds are being eyed to give the treasury additional room to borrow. the treasury department on monday released a letter from timothy geithner saying that the government has reached the borrowing limit set by the legislature. the limit prohibits the government from issuing new bonds to secure funds. in an aim to free up borrowing capacity, geithner says he is suspending payments into two government pension funds in the short-term. he said he will use public servant pension money to compensate for the shortage until august 2. he warned congress that failure to raise the debt limit could bring catastrophic economic consequences. the republicans controlling the house of representatives say they will not agree to raise the ceiling unless the obama administration agrees to reduce the deficit via spending cuts. experts are concerned that confidenc

the treasury department issues an interpretation or explanation of the administration's policies when it talks about energy production, and this is what the treasury department said in 2009 or 2010. the treasury department -- this is secretary geithner, appointed by the president, confirmed by the senate. but the treasury department said, to the extent the tax credit -- the tax credits we're talking about here -- encourage overproduction of oil and gas, it is detrimental to long-term energy security. so the treasury department, president obama's treasury department, are making the extraordinary claim that i have not heard any senator make here because it is so implausible, that these tax provisions encourage overproduction of oil and gas right here in the united states. if we are overproducing oil and gas in the united states, why is the administration telling existing lease holders they have to use or lose the leases that we have? it is an ideological fixation that says we have to discourage production of oil and gas even though about 80% of our energy needs are -- come from fossil f

department of the treasury. mr. jl sub when of treasury. this wonderful event the first vice president of the expert bank of the united states in the honorable shawn robert to be the first or the export of the united states. at a time when our economy and financial markets are in fragile recovery, it is vitally important that we do our job here in the senate to act on the president's nominees in a timely manner. i support the nominations and recommend a committee report unfavorably. to the full senate -- and that the senate as quickly as possible on their explanations. ranking member shelby and i have agreed to move the nominations for this closer, falling in mr. albini and block the advisable. we will then hold a roll call vote and mr. colin n. roll call vote. senator shelby, would you like to make a statement on the nominees? >> sure. i just want to make a statement, mr. chairman, regarding dr. diamond. as they said many times, i don't believe dr. diamond is there a person for this job. he is of course a very accomplished academic and econ

. >>> today is the day the treasury department here in washington has been warning would come. t by congress, freezing the government's power to borrow money. what should the government do now? some experts think they have the golden answer. cnn's mary snow is in new york. she has the answer for us. how serious is this? >> reporter: the treasury department is not in any rush to sell uncle sam's family jewels but the talk by some economists to sell gold and other assets is loud enough that the treasury department has addressed that to say why it is not in favor of it. as the united states plowed past its debt ceiling, the treasury secretary maneuvered to allow the government to keep bore oeg till august. congress is nowhere near an agreement to raise the debt limit to buy time for lawmakers to negotiate spending cuts some conservative economists think the u.s. should sell assets like land in the west leased for farming and ranching and the federally owned tennessee valley authority. chris edwards of the think tank the kato institute, which advocates limited government, thinks the

the long-term restoration of the treasury building. american history tv will be live from mississippi for the 50th anniversary of the freedom riders. get the complete schedule at our website. >> this weekend on c-span [applause] the fall patrick talks about his life. last year's deepwater horizon oil rig explosion which killed 11 and released millions of barrels of oil into the gulf of mexico. william cohen shares is in sight on money and power, how goldman sachs came to rule the world. but for the complete schedule at our website into our schedules in your in box. sign up for alerts. >> let me be as clear as i can be. without significant spending cuts, and changes in the way we spend the american people's money, there will be no increase in the debt limit. >> follow the debate on the debt ceiling as lawmakers continued to work on economic issues in cooperman -- including government spending, taxes, and the deficit online at the c- span video library. you can search, watch, a clip, and share washington your wait. >> "washington journal"

department of the treasury. mr. daniel to the assistant secretary for finance u.s. department of treasury. miss wanda, the first vice president of the expert and ahe bank of the united states, andtn the honorable john robert ulvaney to be a member of the e board of directors for the export/import bank of the unite states. un at a time when our economy and financial markets are in fragile recovery recovery, it is vitally important that we do our job here in the senate to act on the president's nominees in a timely manner. i support the nominations and recommend a committee report unfavorably. to the full senate -- and that the senate as quickly as possible on their explanations. ranking member shelby and i have agreed to move the nominations for this closer, falling in mr. albini and block the advisable. we will then hold a roll call vote and mr. colin n. roll call vote. senator shelby, would you like to make a statement on the nominees? >> sure. i just want to make a statement, mr. chairman, regarding dr. diamond. as they said many times, i don't believe dr. diamond

the u.s. treasuryecretary said there is no way that he can run the organization at the moment, given the current circumstances. he did not call on him to resign, but he at least called on the imf to more formally appoint a new leader. they do have an interim leader, but timothy geithner would like a more formal appointment of a leader. that is, while dominique strauss-kahn is facing these charges. >> what else is happening? >> dominique strauss-kahn is in new york being held with thousands of inmates. on friday, his lawyer will appeal the bail decision, the fact that it was turned down. the judge might refer that to a higher court. and the evidence might be presented in front of a grand jury, a jury made up of u.s. citizens. their job is essentially to look at the evidence and assess whether the evidence matches and whether it should go to trial. >> police in south mexico have discovered a least 500 men, women, and children crammed into the triggers of two lorries and one of the biggest cases of people

the family joined with us inviting secretary of the treasury to address those concerns today. please join me in recognizing him and the members of the families who are present. [applause] i would be remiss if i did not publicly thank the staff of the center. the superb work in putting this together on very short notice. [applause] for two years, three months, and 22 days, tim geithner has been at the center of a fiscal maelstrom. if he did not have a thick skin when he started, and he now resembles a crocodile by now. before becoming secretary of the treasury, he was chief executive officer of the federal reserve bank of new york. as a journalist, he believed in correcting journalistic errors -- as a journalist, i would like to stress that we have never -- he is a graduate of dartmouth college and johns hopkins school of the dance international studies. he has studied japanese and chinese and lived both places. something that grows ever more important in navigating the world economy. how has he done his job so far? two years and five months ago, he was being lambasted by both t

in case you haven't noticed our government is broke worst when the treasury department has a fourteen point two nine trillion dollar debt ceiling on monday obama decided that instead of borrowing more money or say would you sing government spending the treasury would raid federal pension funds to maintain current government spending levels but what about assets the government must. something of value as collateral besides your future tax contribution right well according to a heritage foundation report on asset sales a quote partial sales of federal properties real estate mineral rights the electromagnetic spectrum an energy generation facilities could bring in two hundred sixty billion dollars over the course of the next fifteen years ok so not really up to fourteen trillion dollars yet so. oh yeah the goal they can sell the build it for god's right i mean it's just been sitting there since president roosevelt stole it from the american people in the thirty's one hundred forty seven million else's a billion let's see the price of gold is about fifteen hundred dollars an ounce so that

>> you said you're providing advice to the treasury secretary, and in your sworn testimony. and what is now apparent is you are providing advice to the attorney general of iowa. is that correct? >> congressman, the secretary of the treasury asked for advice and we gave advice. we also gave advice at his instruction. we gave advice to other federal agencies and we gave advice where we were asked. >> mortgage settlement talks, would you disclose the meetings that you have had about this with the mortgage settlement talks? >> congressman, i believe that my calendar is an open book. we've been posting my calendar since last october, last november i can't remember. >> so it would entail when you have discussions about the market settlement cracks >> i can see my calendar is an open book. we planning my time. it's on the altar of the treasury and you're also providing advice to other governmental agencies. >> congressman -- >> you can use the word, a number of times, ms. warren, simply asking a very simple question. pledge your providing a device to. senate congressman, there was a

the u.s. has too much debt and basically running a ponzi scheme with treasuries there's no way in the world thetreasury should be increasing the price and that rates will not go up and then you have china which. anecdotally appears to have avoided all this because they simply ran a bubble they opened their bank spigots they told everybody to lend include anything that could be considered transaction in g.d.p. and it looks like they're doing well they're going to crash and trade it's going to be an inflationary crash one way or the other but i think the three powers are basically waiting for the other to get a lot closer grass gets to where. capper flies in a direction that's the best that i can surmise you know it might not be the case but i see the case of the u.s. is on is beyond sustainable i see the case of the e.u. as guaranteed destruction serial destruction several countries and china is rampant inflation there's absolutely no way tonight so if china and the u.k. you go before the u.s. the u.s. benefits if the u.s. and china grow even benefits etc i figure it's a very good way to run the

that's an iou still from the treasury is that the cash and social security invests in treasury bills are you telling me that the treasury little treasury is fine but the fact of the matter is if you are in debt if you're in trouble and you owe money it's easier. for you and i'll be long gone before saturday to truly know unfunded liabilities between social security medicare and medicaid those are the other wherever here jeff these were all these are were the issues because the republicans are not in these oil subsidies which are which as you even agreed it's not four billion it's it's one billion per year ten million and over and let's say here is let's as your take it out it's going to be is won't do it's growth for you i think a lot of it well i think a lot of well well i hope and i hope you know and i agree with you medicare is in probably in trouble and it's in trouble because you've got billy tauzin who left his job as you know about pushing through medicare part d. he even got permission from the house to leave early to go to work for a two million dollars a year job is that a

so the treasury is certainly not going to want to default on debt. let's talk about the hard choices to come. much of the money is being spent on those entitlements, medicare, medicaid, social security. is that where the money should be cut? >> well, ultimately we're going to have to cut that, and we're going to have to put the 88% of spending that was not on the table for the continuing resolution debate and the need for comprehensive tax reform on the table. >> how do we increase federal revenue? >> well, we have to engage in comprehensive tax reform that will broaden the tax base. in other words, eliminate, consolidate, better target existing deductions, exemptions, credits, and exclusions. lower tax rates so we end up generating more revenue in the aggregate so decisions are made more on basic economics than tax considerations so we can eliminate a tremendous amount of compliance costs. >> this is a very important point, because then you eliminate all the stuff that we don't even really know exists in some corners in terms of these tax expenditure

separately, the u.s. treasury says china remains the biggest foreign holder of u.s. debt despite five straight months of cutting its stake. as of march, china held just over $1.1 trillion in u.s. treasuries. >> susie: still ahead, the n.f.l. and its players union are talking again, but billions of dollars of business are still at risk as the countdown to the season kickoff continues. >> tom: crude oil and retail gasoline prices fell as an emergency mississippi river spillway continues pouring flood water into louisiana's cajun country. the hope is to protect bigger towns and oil refineries down river. tom bearden with "p.b.s. newshour" joins us by phone from baton rouge, louisiana. tom, what's the latest from your location? >> well, the crest is predicted to reach the morganza spillway sometime tomorrow and then continue downriver until it reaches baton rouge on wednesday. that probably gets more attention than it probably should. all it means is that the river will reach its highest level at that point. but it will stay there for several days, perhaps more than a wee

may sixteenth it marks the date of the government has reached its debt ceiling of fourteen point three trillion dollars but thanks to treasury secretary tim geithner's clever maneuvering we're going to be able to extend our deadline until august second of this year however geithner has warned in order for the deadline to be extended he had to implement several extraordinary measures to ensure that the u.s. doesn't default so what extraordinary measures might be asking well let's look at this way back on may sixth the treasury stopped giving out state and local governments series treasury securities the government is also going to start investing in the civil service retirement and disability fund which is going to twelve billion dollars the u.s. is also going to slow investment in the government securities investment fund for federal employees' retirement so that's going to free up another hundred thirty three hundred thirty billion dollars another option geithner is considering as having the treasury stop reinvesting its exchange stabilization fund in trade he said carries so that would be used to buy and sell foreign curre

debt plays a special role in the system, a u.s. treasury bill is the gold standard of value.much so that during the height of the financial crisis there were bills that say we have negative interest rates. that's not safe because the u.s. government is a bunch of squabbling children. that's a possible catastrophe. >> even the chamber of commerce leader is saying that it's time to make this deal, raise the debt and not even talk about cuts right now. >> the cuts issue, it's a huge thing, not to be settled in a few weeks. >> u.s. is very unique, we have a debt line. we are on track with a financial crisis. imagine we didn't have one. we would have an enormous problem. we're on track. given the trajectory. given the problem, has to be the top priority. the prospect is antigrowth. it hurts the most important job which is jobs, so i think the important thing is for the democrats who ultimately control this town, and need to provide leadership on this to recognize dealing with the problem, not the debt limit symptom is the key. that's the route to real success. >> you just made an

this bill would close that loophole and return $6.5 billion to the treasury. another one: in 2004, congress created the domestic manufacturing tax deduction. it was designed to help u.s. manufacturers, who export a product to a foreign market -- so cars, you know, iphones, ipads, you know, all of that -- well, few would really see the extraction of oil from the ground as manufacturing. but again big oil's lobbyists earn their money. they saw an opportunity. some made phone calls and lo and behold, according to the tax code, oil companies are in the manufacturing business. this legislation closes that loophole and saves taxpayers almost $13 billion. that would be $13 billion more towards deficit reduction. now, the american people understand this bill. they understand that big oil makes enormous profits. there's nothing with making profits, by the way. but they don't need to have our tax dollars in order for them to make those profits. they understand that big oil does not need taxpayer subsidi subsidies, and they understand that if big oil wants to lower gasoli

bills deeds and you tell me that the treasury little treasuries vibe with the back of the matter is if you are in debt if you're in trouble and you owe money it's as if you say it's easier. for you and i'll be long gone before separating trillion unfunded liabilities between social security medicare and medicaid but really we're here jeff these are with all these are with the issues because the republicans and not even these oil subsidies which are which as you even agreed it's not four billion it's it's one billion per year ten million and over and let's say here is let's as your reality get out it's way over to our kids want to let's go for it i think a lot of it well i think a lot of them will well i hope i hope you know and i agree with you that medicare isn't probably in trouble and it's in trouble because you've got billy tauzin who left his job as you know about pushing through medicare part d. even got permission from the house to leave early to go to work for a two million dollars a year job is that a pharma i mean you know they they they they require republicans require me

defaulting on its debt armageddon well not exactly but this may be why the treasury department has employed what timothy geithner has labeled quote unquote extraordinary measures so that the government can pay its bills until august second these include borrowing from the civil service retirement and disability fund and suspending investment in the federal employees retirement system and short borrowing from peter to pay paul and here peter sounds a lot like your average worker but here to talk about the debt ceiling and what this all means is raj joshi he's founder and president of many think this much for being with us now you know i want to ask you as an investor there is a debate going on now that we see you know beyond politicians and with politicians that one side saying if the u.s. doesn't raise the debt ceiling and ben bernanke you would be in a camp that this would be catastrophic to the world financial markets but then you have others on the other side including investors including analysts including average american folk i've interviewed that say you know this is hyperbole and th

the u.s. has too much debt and basically running a ponzi scheme with treasuries there's no way in the world thetreasury should be increasing the price in that way to another one and then you have china which. anecdotally appears to have avoided a lot of it's because if they simply ran a bubble they open their bank spigots it's not everybody then include anything that could be considered transaction in g.d.p. and it looks like they're doing well they're going to crash in faith it's going to be inefficient every question one way or the other but i think the three powers are basically waiting for the other two blog world opposable as if they will. cover flies and erection that's the best attack and. you know it might not be the case but i see the case that the u.s. is on is be unsustainable i see the case of the e.u. as guaranteed destruction serial destruction in several countries and china is rampant inflation there's absolutely no way to tonight so if china and the u.k. you go before us u.s. benefits if the u.s. and china go even benefits etc i don't think it's a very good way to run the countr

hundred thirty three hundred thirty billion dollars another option geithner's consider it as having the treasury stop reinvesting its exchange stabilization fund in trade. so that would be used to buy and sell foreign currencies that's going to free up another twenty three billion dollars and just to postpone the inevitable a debt deal which will be a long and painful political process now we've heard from experts who have warned that raising the debt ceiling would be absolutely catastrophic. it would be catastrophic not just first the united states but for global financial markets if the u.s. did not we haven responsibly he said be its debt if we hit the debt ceiling that's the essentially defaulting on our obligations which is totally unprecedented in american history and the impact on the economy would be catastrophic i mean there would be a worse financial economic crisis than anything we saw in two thousand and eight. then again there are still a lot of politicians and many members of the general public who disagree cording to a recent gallup poll forty seven percent of the public thinks th

department of the treasury. mr. jl sub when of treasury. this wonderful event the first vice president of the expert bank of the united states in the honorable shawn robert to be the first or the export of the united states. at a time when our economy and financial markets are in fragile recovery, it is vitally important that we do our job here in the senate to act on the president's nominees in a timely manner. i support the nominations and recommend a committee report unfavorably. to the full senate -- and that the senate as quickly as possible on their explanations. ranking member shelby and i have agreed to move the nominations for this closer, falling in mr. albini and block the advisable. we will then hold a roll call vote and mr. colin n. roll call vote. senator shelby, would you like to make a statement on the nominees? >> sure. i just want to make a statement, mr. chairman, regarding dr. diamond. as they said many times, i don't believe dr. diamond is there a person for this job. he is of course a very accomplished academic and econ

lester the fed refunded $80 billion to the treasury. so we would have much much lower interest payments over the course of a decade and beyond if the fed simply bought and held the bonds. buying them today, the anticipation is that it will sell them back to back to the public salanter's will be paid to the public rather than pay back to the treasury. i would argue there is no reason for the fed not to simply hold them and have the interest paid back to the treasury. okay, the last point, what should the fed be doing now? i'm 100% with joe that the fed should be more aggressive. you look around if they were hard-pressed to find any evidence of inflation anywhere in the data and it has become almost comical because they are pointing to the rising commodity prices which again a lot of that is due to china and india and short of bombing china and india i don't know what we will -- and i'm not advocating that. some of that is clearly speculative and that seems to be reverse. whether that is a standard not i don't have a crystal ball but let's

manufacture it sets up a vote between the house side with boehner at the helm and problems with the treasury department and our ability to meet our obligations to p two other countries on the one hand and on the other hand the tea party members of brainers own caucus who are calling for massive spending cuts as has been are said trillions well trillions of dollars that's a lot of spending cuts when you examine as i think you just pointed out in title meant reform tax increases or defense spending there's just not that much to go around and money g.o.p. comes up with these plans once they leave those things out they're really just making program tweaks around the edges of our spending programs so it's really just a political fight that illustrates the continued intransigence in washington to really get along change anything but at the political ideological debate where both sides are stuck in their positions you know the republicans don't want to change anything on tax the democrats don't want to touch the entitlements. they just meet their fancy little statements until they get really really

suggests if there's about a month of leeway after they refused to raise the debt limit before the treasury really starts to be unable to meet its obligations in terms of surgery notes and you know our outstanding debt so then even with the deadline there's another month beyond that so i think that what you will see is you know increasing posturing some sort of vote that probably doesn't go anywhere and then this back and forth and sniping in ability to come to some agreement and so it really really gets down to brass tacks i mean that's what they've done all year and that's probably what they will continue to do i mean it sounds like kindergarten to me i just i don't understand why you know when the economic picture is as dark as it has been when real solutions are needed why both sides can't somehow overcome this i mean let's turn to president obama for a second is there anything that the president could be doing that he isn't doing perhaps i don't know talking to the people directly to try to move this issue along instead of letting these sides duke it out. i mean i think that president

the u.s. dollar has expressed you are in dollar terms we're just in terms of. u.s. treasury bonds has lost about sixty five percent of its purchasing power against a broad basket of commodities and i just find that with this latest ramp up over the last two years in worldwide commodity prices in the global financial community there's a real reluctance to own up to the fact to face up to the fact that paper currency is losing its purchasing power against natural resources so i do think is it starting off point it's worth just pointing out and purity that the u.s. long bond has lost sixty five percent of its purchasing power against the natural resources which are all the things that we used to live every day sentence for air since two thousand and two. the sixty five percent loss of purchasing power against resources the stuff that you buy for money for and the the dia x. y. the actual dollar index that people look at that has not depreciated sixty five percent since two thousand and two. so i think what also is saying here is that there is a bit of a complete disconnect in t

revenues from oil and gas in the north sea worth an estimated twenty one billion dollars to the u.k. treasury every year scotland says the reserves are in their waters it's hard to imagine the u.k. would let the oilfields go without a fight particularly as westminster wouldn't be legally obliged to honor a yes vote from the scottish people the union jacks days flying outside the scottish parliament could be numbers scotland's ditching the united kingdom would mean the u.k. treasury lost valuable oil and gas revenues and it could be the inspiration for historically less peaceful independence movements in europe like the basques and the northern irish to follow suit and further destabilize an already weak e.u. the s.n.p. would support other european movements in their own struggles for independence including wales and northern ireland if they so choose it's for the people of those countries to say what we want to do we would never support or condone violence in any shape or form clearly if other countries wish to pursue an agenda then they'll get a great deal of sympathy from losses and even th

knox, that the treasury department owns. valued today at almost $400 billion. >> selling america's gold is probably not such a bad idea. there aren't really very many good reasons for the government to hold a stockpile of gold. >> reporter: that would only buy us about three months before we'd be right back in the same situation. and republicans in congress are refusing to raise the debt ceiling without slashing spending, as -- >> to raise the debt ceiling without dealing with the underlying problems is totally irresponsible. >> reporter: if the u.s. came even close to defaulting on its debt, interest rates will skyrocket, the stock market would plummet, as would the gross domestic product, and there would be immediate layoffs. diane. >> the wrangling goes on. thank you, jake tapper. >>> two weeks after the raid that took down osama bin laden, the u.s. and pakistan are working to mend fences. with secretary of state hillary clinton planning to visit pakistan soon. during the operation, you may remember, we told you, right her

he was afraid that the majority of people would get hold of the public treasury and vote themselves the treasury. hamilton's system aligned the wealthy in a government in such a way they were beholden to government so that they would always come to the aid of government, in other words, he wanted to get the rich people behind government so that if the government gets in trouble, the rich would aid government. and so what happens? in 1793, you get a panic, threatens to totally destroy the united states. we are bankrupt. and president grover cleveland, whom i call the last good democrat, he's the last democrat that believes in following the constitution as far as i can tell -- cleveland asks for help and who shows up to help him? jp morgan, the most wealthy banker, the most powerful banker in the country and morgan gives the u.s. government a alone of $480 million in gold. in other words, back in the day, the private sector bailed out the government. the banks bailed out the government, not vice versa. so what would they say about debt? none of them wanted debt to the extent we have it to