is it possible for the treasury department or the u.s. government to create channels for humanitarian aid in these cases without disrupting the ecosystem with the national interest? >> it's a great question and it's certainly a challenge. the maximum use of these isolationist campaigns can do some damage. we have seen is not just in examples you give them in remittance operations, charitable contributions so that is always a balance and a challenge. sitting in front of you is a former counsel from ofac deshawn thornton who could tell you chapter and verse as to how the treasury department issues regulations and licenses to allow for those kinds of humanitarian exemptions and one of the interesting things we have seen the treasury do and this goes to a more positive agenda in the financial war for campaign is to allow licenses for categories of exports or categories of financial failings that actually allow for the kinds of goods and services to get into countries that we want. for example technology to get to opposition in places like ira

government, the u.s. treasury. thank you for your service. >> was interesting, we did it with counterparts. it became very important factors in the state, including in financial intelligence committee. secondly the banks themselves as we talked about, banking centers and certain countries like switzerland or victim's fund or luxembourg become more important in those alliances, it is less about nato and more the banking centers so one of the successes of this period and it is a constant challenge, having the banking center in line with interests in policy and a lot of credit goes to treasury officials, john taylor and others, and the banking centers adopting the same standards, applying and starting to isolate iran, north korea and others and that has gone relatively well. we had some friction worth watching in the newspaper, tax treaties, treatment of tax transparency has always been a point of friction between banking centers and that is one of the u.s. is trying to deal with aggressively and will continue to preve

the way to the u.s. treasury has innovated this in the way the europeans do this is very critical and important as well. but it's part of what i call financial suasion. how do you impact what organically rejects the list of financial activity. how can we profit system where you will align your national security interests with a financial interest. so you are right. it's not just sanctions and classic sanctions but the use of sanctions and enforcement mechanisms, laws, international standards, signs, everything in the toolkit to actually set the ecosystem and competent. treasury today is masterful at it. they do this very well. it's one of the great tools but i think the u.s. government should bring to bear in many ways. >> it is not perfect as you write about. several different case studies, most notably north korea, which is a page turner of this section . you write about the shortcomings and how the treasury's goals in this kind of isolation but not always measure up or lineup with the goals of other agencies o

the relationship with the treasury became more equaland sy. more on open-market operations we talked with richard gill. when the fed made open-market puhases of government securities as it did prior to 1951, it was effectively increasing the reserves available he commercial banking system. and thus potentially making more money available to the economy in general. here's how it works. the fed purchases,ay, bilfrom the treasury.on it pays for these bonds by adding 1 billio to thereasury's account. the treasu uses is to write checks toeople who are providing services to the government. ese private individuals sit ese checks these deposits become part of these banks' reserves. with these neweserves, banks can create more money. is is very muc like pnting-press money. the fed was sayingatheime oy may have been appropriate inepressioyears, but was longeappropate aeconome it waslso serving noceatheime oy thatonetary policydeies.e mighnobe soeak a ol as oe imaginedappropate aeconome it waslso serving noceatheime oy thatowe worked for two centuries to

already hit the borrowing limit on may nineteenth of this year u.s. treasury is legally only allowed to rack up sixteen point seven trillion dollars in debt but have for the nagel's a way to legally spend an additional two hundred sixty billion dollars using what's called extraordinary measures and the letter to speaker boehner treasury secretary jack lew explains what extraordinary measures he's utilizing the government securities investment fund or the g. fund is a retirement account for federal employees it contains about forty percent of all thrift savings plans balances there are four point six million civil employees and uniformed service members who have t.s.p. retirement accounts and congress has granted the treasury the statutory authority to suspend reinvestment of all or part of the balance of the g. fund and other words the treasury is borrowing from the retirement accounts of servicemen and women however in that same letter it also states that after the debt limit impasse have ended the g. fund it's made whole congress has the full authority to ra

george humphrey was secretary of the treasury. they didn't always agree. sed to say when arthur burns came "here comes arthur with his kit of tools." he meant his tools for dealing with the recession. at various times he got out of line. humphrey got out of eisenhower's line by saying, "increasing expenditures in a recession is really a terrible thing." he was more in the hoover image. he quickly got back into line. ike's forecast showed unemployment climbing past 6% during the winter of 1954, the highest level since the depression. millions of workers were idle. eisenhower went to the people to urge confidence. he predicted the economy would improve. he promised spending programs if it didn't. he was ready to take action, but didn't have to. if you keep tax rates stable then the revenue will fall when the economy falls because people have less income. the revenue will rise when the economy rises because people will have more income. that stabilizes the economy. some expenditures will rise in a recession unemployment compensation, for example. we at the com

the third quarter. that is a substantial difference. we had been projecting that 10- year treasury note rates would rise quite a bit over the next several years. we view this as an acceleration of something we thought was going to happen within a few years anyway. if we were to do new baseline budget projections today, we would project higher interest costs in the next few years. in our 10-year projections from the spring, we had rates coming up a lot anyway. i do not think what happened the last few months we change our projections five years from now. 10 years from now, 20 years from now. in fact, the market read on interest rates five or 10 years from now is not much different than it was earlier in the year. we have seen an increase in rates that has come sooner than expected but not something that would change the contours of our economic forecast. but it is certainly true that as rates rise from their level close to zero to something closer to their historical average, that increase in rates applied to debt has a huge effect on the government's interest payments. i think thos

the u.s. treasury imposed sanctions on the islamic school, saying it trained recruits and facilitated funding for al qaeda, the taliban, and others accused by indian intelligence of masterminding the 2008 mumbai attacks. the sanctions include a ban on u.s. citizens having anything to do with the schools. the pakistani interior ministry and the army declined to comment , but the school principal said the accusations are totally false. >> the treasury said the shake controlled the school, which was founded as a mosque more than two decades ago -- the chic -- the sheikh controlled the school . he rejected claims against him, saying he was just a regular prayer leader in the mosque who left months ago. >> the united states accuses the school, which radicalize his children, of conducting insurgent activities and training them to become bomb manufacturers and suicide bombers. the nation's collective for the school were given to terrorist troops, such as the taliban, which uses the money to fund the ongoing v

the u.s. treasurys only legally allowed to racked up 16.7 trillion dollars in debt, but the house finagled a way to legally spend another 200 200 $60 billion using what is called extraordinary measures. -- another $260 billion. the g fund is a retirement account for federal employees, with 40% of all thrift savings plan balances. there are 4.6 million employees and uniform service members who have accounts, and congress had granted the treasury the statutory authority to suspend investment of all or part of the balance of that refund. they are borrowing money from the accounts of servicemen and women. it also states that after the debt limit impact has ended, this is made whole. congress has the sole authority to raise the debt ceiling, and they have done so 78 times since 1960, but since 2011, it has become much more difficult. congress is not obligated to raise the debt ceiling, and if they do not, will this fund be paid back? this is just one example of extraordinary measures the fed is using to con

i think you're right on the treasuries. of course, the fact we're preventing normalcy had to take a toll on the treasuries. it did. if you look at the way the market traded since the 18th, it is definitely seeing lower rates. if you look at correlation, stocks and treasury rates have been pretty correlated. but maybe the equity boys finally started to realize that the fed and the notion of not tapering seemed like an immediate positive the day it occurred. but really what it says is, is that we have a really mediocre economy. in the end, maybe even the stock market is starting to figure out that just isn't a good thing. >> stephanie, how do you see it? what do you want to be doing as we begin the fourth quarter next week? how would you allocate capital here? or do you want to pull back? >> well, september is typically the worst month of the year, believe it or not. >> hasn't been. >> yeah. on average it's down about 0.5%. most people think it's october. that's on average since 1971. october's up 0.7%. so i think the volatili

that pot of money is the power of the secretary of the treasury. the secretary of the treasury is empowered to pay off debts and put money in if he thinks it is necessary to prevent a meltdown, but he is mandated, not permitted, but mandated under the bill to recover every dollar from an assessment of financial institutions with $50 billion in assets or more with a form that essentially says, if you are to play with derivatives, this is not mutual funds -- >> you make a good point. and i want to -- >> let me make one more point. i think it is inconceivable that a secretary of the treasury would say to the fed, you can't do that. >> if we keep getting secretaries of the treasury from the fed and vice versa, they do. >> of course, i am the most -- it is a horserace for the most cynical person on the panel, but in my experience, policymakers are so risk averse -- adverse. you can tell them, there is a .0001% chance this is going to happen, and they will not do it. if you look at the dodd frank legislation and where we are, a lot of this relies upon bei

and in october the treasury said that the u.s. will max out on its debt limit, and then there will be another big fight over there. >> now the president said i'm not going to negotiate. well, i'm sorry, it just doesn't work that way. we're not going to ignore

what else the treasury might do, i don't know. for example, the ability of the treasury to delay payments is not just something that we can speak to. also givesection other options? -- i have tove think about that more carefully. can'tojection -- if they sell as much debt, and they could sell more on another day. i don't know how to think about your question. offer solutions under the regular workings of the cash management. the point at which we think they would not have as much cash as they would need to make the payments they would normally make on that date. what else might happen or what they might do is other people's jobs in this town. ok. when we stopped there. thank you all very much for coming. if you have further questions, we are happy to answer them. >> there's two problems and don't ask me -- i still don't quite understand it. one of them's online and one of them is a hard-lined communist. we're submitting it to both probablies. >> and i would suggest you send one to the p.o.a. as well. that it n is, i feel stops at h

charlie: he is not the treasury secretary running the fed, those are the main. just got off the phone with him, he said something that resonated with me because i have been following the notion of the banks broken up, too big to manage. this is what he told fox business exclusive, jpmorgan is likely to spin off a significant piece of the bank to appease the regulators. he thinks the regulators from the fed to the sec, all of these banking regulators investigating jpmorgan want a chunk of change out of them. they want fundamental change, they want to downsize it because they think it is too big to manage. which piece with a spinoff? this one off the brokerage division when they needed to downsize, said the likely candidate is the asset management business. he really believes this is a concerted effort what is going on with all of the investigations day after day piling on jpmorgan a concerted effort basically to force change at the bank and he thinks the change that will come is jamie dimon finally throwing in the towel on the business model which he cherishes. h

i had to tell them, the treasury is doing a lot. of the developments i described in the book is the evolution of a document in the military. it is going after the finances of our enemy that are shooting at u.s. forces. it has evolved in iraq and afghanistan. the idea, can we use network analysis to understand who is funding those who are trying to kill our soldiers, that is something that treasury was deeply a part of. from the book you write, we harness the private sector's own interest in calculus to isolate rogue financial actors. we leverage the fact that we are in a globalized financial system and the u.s. dollar is the chief reserve currency for the world. u.s. capital markets are the principal or the key attractive market. if you're a u.s. actor and want to do business globally, you have to play by our rules. in many ways, that allowed us to effect in a multilateral way how we used our authorities. we try to use them carefully, but we try to use them strategically. risk realize that the aversion that was part of the bottom li

voting for the treasury to pay america's bills is not a concession to me. that is not doing me a favor. that is simply carrying out the solemn responsibilities that come with holding office up there. i do not know how i can be more clear about this. nobody gets to threaten the full faith and credit of the united states just to extract political concessions. no one gets to hurt our economy when millions of innocent people, just because there are a couple of laws you do not like. it has not been done in the past. we are not going to start doing it now. i am not going to start setting a precedent, not just for me, but for future presidents, where one chamber in congress can basically say each time there needs to be a vote to make sure that the treasury pays its bills, we will not sign it unless our particular hobbyhorse gets advanced. imagine if you had a republican president and a democratic speaker, and the speaker said we will not pass a debt ceiling unless we raise corporate taxes by 40%, or unless we pass background checks on guns, or whatever other list o

the quarterly open market meeting. live coverage at 2:30 on c-span three. ining up, treasury secretary speaks to the economic climate of d.c., and the budget negotiations. then, john mccain talks about the situation in syria, and later upcoming legislation in the house. >> 15 years ago, book tv made its debut. , ofe are all keen students love. maybe not quite as much as ken stars. more than 9000 authors have appeared on book tv, including presidents. >> i want to give the reader a chance to understand a process by which i made decisions. the environment in which i made decisions, the people i listen to as i made decisions. tos is not an attempt rewrite history. it is not an attempt to fashion a legacy. it is an attempt to be a part of the historical narrative. >> also, supreme court justices. >> every single justice on the court has a passion and a love for the constitution and our country that is equal to mine. then you know that if you accept that as a truth, which it is, you understand that you can disagree. >> and nobel prize winners. >> what is interesting is the negotia

working with the treasury and the white house during the bush administration, his job was to figure outs to stop money adding to terrorists. he writes about the attack in a new book and joined me a short time ago. suspect that on this anniversary of september 11, most people are not thinking when they think of the war on terror about the treasury department, but you are suggesting that as important in the american fight against terrorism is intelligence. >> i think that is right. one of the great innovations was the use of financial power much more aggressively, not just by the united states but but by the u.k. and the rest of the world. you have to look at diplomatic strategy and foreign policy, and what are the tools you have to bring it to bear? between job owning and dropping missiles and bombs, what we have to bring to bear, and in many cases, it is financial power, sanctions, financial persuasion that can be brought to bear with items in the financial system, and that is very important. >> give me an example, specifically. >> it worked very well in the early days after september 1

are they heeding the treasury secretary's warning? >> reporter: the big fight is keeping the government funded past monday night when the government face as shutdown unless government can come to an agreement. but a much fiscal issue looms. they will run out of money in the sense that the bills going out are bigger than the money coming in and cash on hand. we saw the treasury hit it's spending limits back in spring, but they were able to use extraordinary efforts to extend ththe funds. >> thank you very much. the united states is the 91st country to sign on the u.n. arms treaty. controls regulation in controlled sales of arms. >> this is about keeping weapons out of the hands of terrorists and rogue actors. this is about reducing the risk of international transfers of conventional arms that will be used to carry out the world's worst crimes. this is about keeping americans safe and keeping americans strong. >> now that has not stopped gun rights groups from opposing the treaty. it still has to be ratified by the u.s. senate. >> u.n. i

for one, it's just not possible for the u.s. treasury to know with precision when the moment will be, because outgoing payments and incoming receipts vary significantly from day-to-day. operating on a small cash balance creates the real danger that on a day that we anticipate having a positive cash balance, we actually will have a negative one. at the same time, we're relying on investors from all over world to continue to hold u.s. bonds. every thursday we roll over approximately $100 billion in u.s. bills. if u.s. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance. the point is, trying to time a debt limit increase to the last minute could be very dangerous. make no mistake, if congress does not act and the u.s. suddenly cannot pay its bills, the repercussions could be serious. the impact on families and businesses could be significant. investors losing confidence in the full faith and credit of the united states could cause da

so the same thing on the treasury's side. s long as the debt ceiling debate goes well, there will not be a default component in the treasury peas. that is set communist to mayor. [laughter] people don't come to an economist tac toe parties. and advisedly so. they could choose to of the purchases of mortgage-backed securities constant which is what the consensus of the marketplace is, they will do that and that they will slow the purchases of treasurys. they can still keep adding to their portfolio. but at a slower pace. they can stop adding to the portfolio and simply replace amortization. and they could to slow the purchase and not even replace amortization or they could stop purchases of treasurys. the zero options. the kindle treasury's constant and each of those things with mortgage-backed securities or some combination of all of those options on either side. they have a lot of choices of how they do this. the consensus to the marketplace based partly on a paper that was delivered at the jackson hole conference which said

. >>> another warning to congress from the treasury secretary, jack lew, telling congress waiting until the last minute to raise the debt ceiling could cause harm to the economy. >> if congress doesn't act and the u.s. suddenly can't pay its bills, the repercussions could be serious. the impact on families and businesses could be significant. investors losing confidence in full faith and credit of the united states could cause damage to our economy. >> the treasury is slated to hit the borrowing limit of $16.7 trillion about a month from now, mid october. >>> between tackling the next debt ceiling deadline and the budget deal, congress has a lot on its plate that directly impacts the economy, the stock market, and your investment. the big question is are lawmakers ready to work with president obama and can they really get any of these deals done. john harway joins us from washington. where do things currently stand? >> reporter: pretty bleak now, sue. there's still time for the house and senate to strike a deal on extending government funding that runs out on september 30th, but there's

voting for the treasury to pay america's bills is not a concession to me. simply carrying out the solemn responsibilities that come with holding office up there. i don't know how i can be more clear about this. nobody gets to threaten the full faith and credit of the united states just to distract political concessions. no one gets to hurt our economy and millions of innocent people, just because there are a couple of laws you do not like. it has not been done in the past. we're not going to start doing it now. i'm not going to start setting a precedent, not just for me but for future presidents, where one chamber in congress can basically say, each time there needs to be a vote to make sure treasury pays its bills, we're not going to sign it unless our particular hobby horse gets advanced. imagine if you had a republican president, and a democratic speaker and democratic speaker says, we're not going to pass a debt ceiling unless we races corporate taxes by 40%. or unless we pass background checks on guns. or whatever other list of agenda items democrats we

federal housing administration says it must draw $1.7 billion dollars of taxpayer money today from the treasury to cover projected losses connected to reverse mortgages. the department currently has $30 billion in reserves. it's the first bailout for the agency. lumber liquidators could soon face a hard knock. federal authorties with immigration and customs recently executed a search warrant at the retailers headquarters in virginia. it's not clear what they were after. usa today reports the company is cooperating with authorities and has turned over information relating to the importation of certain products. the stock fell $7 dollars friday. fewer americans are on the move. census data finds 11.7% of the population moved in 20-13. that is only slightly above an all time low of 11.6% in 20-11. we are hearing as home prices continue to rise, more americans are staying put. more americans are making long distance moves than they were at the worst of the recession. also fewer are making the shorter distance moves that people tend to make when they are looking for cheaper and better housing. that

the treasury department did the same thing. it's regulators and lawmakers.his case, the bankers from least villains but they are getting the biggest hit. >> david: bill, so many examples of lawmakers, mostly democrats, some republicans by the way, saying we won't have trouble with the housing market. for example, here is barney frank in 2003. >> the more people in my dgment exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the treasury, which i do not see. we have endities that are sound. >> david: fannie and freddie collapsed. they wanted the banks to take the bad loans. >> i'll concede. fannie and prez are wicked. a lot of democrats are wicked. i'm being serious. government messed things up intervening in the housing market. >> david: why shouldn't we rescue them? >> here is the problem. if you prosecute lawmakers for passing bad laws you would empty out every legislature. so now what do you do to run the government? if you don't like it, barney frank, don't vote for it. >> david: the fac

the slump had no apparent cause, at least none that was evident to the wilson administration. treasuryecretary william mcadoo shrugged off the recession as "a propaganda of pessimism." republicans had no doubt why the economy faltered. it was that daerous democrat woodrow wilson. while many were quick to blame wilson, few thought the government should intervene to correct the situation. the prevailing point of view seemed to be that the business cycle was correcting an imbalance, and that by intervening, you might only make things worse. by the government coming in and purchasing more goods and services to take up for the lack of business investment they might adversely affect the little business investment that there was. it's doubtful that this attitude provided much comfort to the unemployed workers who lined new york streets demanding assistance workers who had barely recovered from the panic of 1907. but when relief came it changed the world. when europe hurled itself into battle in august 1914 neutral americans began supplying food and weapons for the belligerents on both sides.

the brink. i'm hear what former treasury secretary hank paulson. joining us are josh tier ring gal editor of bloomberg business week's and the film's director joe berlinger. here is the new edition of bloomberg business week five years from the brink. a lot about paulson and five years later. the question then is this is a documentary film, not a magazine. so why did you decide that you needed to do this film. >> i've tried to figure out what the right medium for presentation is of any kind of story. and this there's been plenty written about the financial crisis but in my conversations with folks including-- i don't know if hank know this is-- but include being tim geithner, one of the way you close a conversation is you say so what have you surprised that we haven't covered in the magazines and tim geithner said to this day no one has gotten hank properly. he said he has come off either as too intellectual too fiery and no one quite know it is story at the center and that he took thising on his back and guided us through. and i thought well, that'

s and by the way you know the secretary of treasury can call any damn banker that they want but they can't do is do it in secret and they can't give these these bankers inside information or allow them to change the policies and the actual regulations of the united states and in this case was also changing our trade policies we are the point of the end game was to require every nation in the world to throw out all their banking police . and the way they did they went to places like ecuador and they said you want to sell us bananas we're going to sells your goods we're going to sell it we're going to sell you our bats are derivatives no bananas unless you accept our derivative africa bats are good and you know larry summers was infamous for once saying that the third world does not accept enough toxic toxins and poisons and toxic assets he was and people always talk about chemical and he may have been but he was mainly talking about toxic financial ass. that's it the third world doesn't take our rivers junk they won't take our sub prime synthetic collateralized debt obligations isn't t

s and by the way you know the secretary of treasury can call any damn banker that they want but they can't do is do it in secret and they can't give these these bankers inside information or allow them to change the policies and the actual regulations of the united states and in this case was also changing our trade policies we are the point of the end game was to require every nation in the world to throw out all their banking police. and the way they did they went to places like ecuador and they said you want to sell us bananas you're going to sells your goods we're going to sell it we're going to sell you our bats are derivatives no bananas unless you accept our derivative africa good bad or good and you know larry summers was infamous for once saying that the third world does not accept enough toxic toxins in boys and toxic assets he wasn't people always talk about chemical and he may have been but he was mainly talking about toxic financial ass. it's a third world doesn't take our rivers junk they won't take our sub prime synthetic collateralized debt obligations isn't this that'

voting for the treasury to pay america's bills is not a concession to me. 's not doing me a favor. that's simply carrying out the solemn responsibilities that come withholding office up there. i don't know how i can be more clear about this. nobody gets to threaten the full faith and credit of the united states just to extract political concessions. no one gets to hurt our economy and millions of innocent people just because there are a couple of laws that you do not like. it has not been done in the past. we're not going to start doing it now. i'm not going to start setting a precedent, not just for me, but for future presidents, where one chamber in congress can basically say each time there needs to be a vote to make sure treasury pays its bills, we're not going to sign it unless our particular hobby horse gets advanced. imagine if you had a republican president and democratic speaker and the democratic speaker said we're not going to pass the debt ceiling unless we raise corporate taxes by 40%. or unless we pass background checks on guns. or whatever oth

the treasury was filled with objects both magical and beautiful. there were miniature boats, statues of gods, servants who would come to life to serve the king, and personal articles like mirror cases. there was even a box in the shape of tutankhamun's name. the oval shape enclosing the king's name was a symbol reserved for royalty. it is actually a loop of rope tied at one end and means that the pharaoh was lord of all the sun encircled. how es one put into perspective a civilizati that was most ancient yet extraordinarily sophisticated and able to maintain itself over a span of 3,000 years? french art historian elie faure suggests that ancient egypt, throu the solidarity, the unity, and disciplined variety of its artistic products, through the enormous duration and sustained power of its efforts, offers the spectacle of the greatest civilization that has yet appeared on the earth. who can say? in any case, the artistry that has come down to us speaks for itself. rome - the remnants of its architectural genius bear witness to its greatness. in the

. ♪ >> back in the old days there was a system where each time the treasury needs to borrow money, itgo to congress. but after world war i this process became cumbersome. so the debt ceiling was established by law to give the treasury to borrow more than it had up to a limit. despite the effort as some to portray this as a new phenomenon the debt ceiling has been raised more than 70 times since 1962. most countries acknowledge if you run up a bill, you pay for it. the debt ceiling is not a limit on how much money the government can spending, because the government has no such limit. as long as your members of congress pass bills that cost money, that money will get spent. the debt ceiling a somebody paying those bills raising the debt ceiling this i'm around isn't likely to cause problems with the credit rating. david walker was the u.s. comptroller general from 1998 to 2008 and he headed up the government accountability office. he joins us to explain why hitting the debt ceiling would be a problem to the u.s. economy. david there are ways to deal with spending too much money. there a

he retired from the fed in 2010. former treasuryr is a popular choice of the white house but he has repeatedly said he's not interested in the job. this is a story that we'll continue to watch on wall street, ross. >> seema, thank you for that. joining us, chief investment officer of commonwealth financial network. brad, good morning to you. the clear direction is summers is gone, therefore, any other candidate is more dovish. how long does that sort of relief last? >> oh, i think there are two things going on here. first of all, you saw the markets react to the potential for the fed to start tapering the stimulus. they bid prices up, bid interest rates up, i should say. that has started to recede already. the fact that you have probably the most dovish candidate as the front-runner obviously has to alleviate worries. >> we are going to start tapering? >> well, that's what they say, but if you look at the weaker economic data that's come in, i actually don't think that's a lot. i agree with you, that's the probability. that's the pe

in fact, they return billions of dollars to the treasury. of that because of this asset buying purchase program. they are free and independent. an audit necessarily places re strixes on that independence and although congress may have a problem with the approach of the fed in certain circumstances -- if you look traditionally over the long term, independence is the key guiding factor of most central banks around the world. host: why are some folks pushing for an audit? guest: some folks are disturbed at the extraordinary measures that the federal reserve is taking, not only to get the economy growing again and get jobs created but also what happened during the financial crisis when the fed helped bail out the banks that it regulated. for some people that doesn't quite sit right. and so there is this desire to kind of reign in the -- rein in the powers of the fed because they saw the execution of tremendous financial power during the financial crisis and they find that concerning, quite frankly. ost: let's go to ruth from sandy hook, connecti

the treasury secretary sent a letter warning the treasury extraordinary measures will be exhausted no later than october 17. this brings the possibility of a default closer as well. law enforcement and air traffic control will continue. checks will still be mailed out as well. it means the postal service will still be in service. if the debt them it is not raised, the united states would not be able to meet all its obligations. this doesn't necessarily mean we would automatically default on the debt. >> we now go to florida for the story of 38-year-old marlon brown. he was killed when a police officer ran into him with his police car. as you will see, brown was pulled over for not wearing his seat out. -- his seatbelt. he fled from the officers. that is when harris slammed his cruiser into brown. brown died from his injuries. officer harris was fired, but is that all that should happen? they did pay a settlement of $550,000 to his ex-wife for his death. the family wants the officer who killed him to face vehicular manslaughter charges. a grand jury looked at the evidence and decided n

over in the bond market, u.s. treasury bonds rallied after an auction on the benchmark ten-year note attracted the highest demand in six months. $21 billion worth sold at a yield at 2.94%, the highest uncle sam paid in two years. >> susie that pail in comparison to verizon's history making corporate bond offering today. the biggest ever on wall street. the giant sold $49 billion worth of bonds today and incredibly, that was only about half of what investors were willing to buy. it will use the proceeds to help finance the purchase of vote a phones, 45% stake in those two companies, verizon wireless joint venture. david faber joins us with more on the massive side of this deal and you've been following the deal for months, really. what does this say and why is it so important? does it say about verizon? >> there is demand for bonds from good corporate borrowers, the likes of verizon for quite sometime. it's been an underlying story not just for the bond market but the equity stock market. we've seen so many corporations iss