yet the american treasury is about to shrink hamilton's importance. the very same moment his story is being told on the broadway stage to rave reviews. >> i've seen the play, it's that good. >> i was blown away. it is revolutionary, it will revolutionize american theater. >> rock stars and a-listers lined up of the broadway premier last month of what's being held as a heartbreaking american masterpiece. the founding found story of founding father alexander hamilton. a score set to hip hop is undoubtedly boosting the program's profile but hamilton's life and history may be just as thrilling as the bells and whistles that help bring his story to life. >> he was washington's right hand man during the war for independence. a de facto chief of staff. >> educated at what's now columbia university. hamilton made a name for himself in the continental army. he was barely 20 when he became washington's closest assistant. >> he edited led the development of the most famous work of political thought, the federalist papers along with james madison and john jay and

we will hear testimony on the nomination to read the undersecretary of the treasury and if confirmed would be the third undersecretary of the treasury with the responsibility for the office of tourism and financial intelligence the undersecretary reports directly to the secretary. this is responsible for executing for money-laundering while overseeing enforcement of the constantly evolving sanctions program. also receiving regulatory and enforcement opportunities such as the office of terrorism in financial crimes for foreign assets to control the office of intelligence and announce -- analysis and the financial crimes enforcement network. mr. szubin comes over 14 years of government experience. with the recent deal that is considered here in the senate. and to help assemble with the architecture gives the world's leading state sponsor terrorism. given the context it is important and timely. >> i appreciate your willingness to allow the nominee the acting treasury and the senior positions relating to economic sanctions it is eminently qualified to his children and wife and parents. ,

treasury secretaries. john spencer was secretary of war in the 1840's and then treasury secretary. the multimission service, responsible for peacetime missions, search and rescue and , other things, yet they are a national defense force. from his dual background he was excellent at leaving the service in that way. here is george boutwell, treasury secretary in the late 1800s under president grant. boutwell has a cutter named after him. he had the responsibility of getting the revenue cutter service ready for alaska. in 1867, the united states purchased alaska from the russians. huge territory. the crew suffered -- you have the bering sea, the high storms and ice and polar cold and arctic dangers. the coast guard got assigned to the area to do police keeping and lifesaving, and he got them ready for that. we are going to say more about that assignment later. worth ross, captain commandant of the u.s. revenue service, he 1905-1911. he saw that fishing and hunting laws were enforced in alaska. the cutters served as courts on the water and they took criminals back to seattle, and to san

there's a bonds in australia and new zealand attracting a rally there, and the u.s. treasury -- the fed to be great near zero. that is leading wants to jump. as we see a 10-year australian debt, the yields falling for the first time in three days. we take a look, this is what you have on the aussie bonds. we take a look at what is happening in a two-year note in the u.s. an interesting move here, the u.s. 2-year note has its deepest drop in two-year treasury yields since 2009. you see the move there for the u.s. yield, earlier in was about 13 basis points. work, we'll get to work later. angie, let us take a look at the commodity markets. you see the goals, these are investors closely betting on whether the fed will move the next meeting -- basically a month away. see gold advancing today, investors generally using gold as a hedge against inflation. right now, they see it as a favorable asset -- gold coming to the highest in two weeks on renewed demand for that haven. trading on the house. we should see limited pullback on the oil prices, trading in london looks like this toda

the treasury has a different issue they will be focusing on. has sent a letter to congress last week in dealing with the bigger issue, which is that we have we will call it the statutory debt limit. when you add up all the borrowing we have, we are at a limit. there is a limit in the law that we are about out of room to have any more borrowing authority. about theed earlier end of october, middle of november. that is when the treasury has to start being very worried about how to manage a situation where we were not have enough borrowing authority to pay our bills. host: these two issues coming close together in time. here's a little bit of treasury secretary jack lew, actually couple minutes from june. we will get back to calls in a moment, but congressman mike mulvaney and the treasury secretary had a conversation about the prioritization. r [video clip] mulvaney: mr. secretary, you told another time that the systems are automated to pay -- you for 224 years went on to say that it would not be easy to pay, they were not designed that way, etc.

and very new people talked about the collusion and the desination from treasury indicates colougz. >> of the talk of russia and syria and what we are and not doing. we are ignoring the horrendous terrorist group that continues to function. and based on what you learned from the treasury and funder ares, what does it tell you about the state or health of the terror group? >> they are co-opting al-qaeda fund-raising channels and funneling them through places like turkey and in the syrian frontier. things are going well for isis all things considered. >> how do we cut it off. >> part of it, and i mentioned it on the show. 565 border between turkey and syria. three different times in the desination that they are using that border to fund people and money over the border. do something with the turks. we heard that the turks are doing a better job. but this tells us otherwise. >> josh earnest spoke about the way forward when it comes to syria. you recently wrote about the foreign policy of the administration and how you feel it has been work nothing tannedum with the bush administration. an

but more importantly, the top buyers of treasuries are now gone. you have the u.s.eral reserve, which was a buyer. china's no longer a buyer. japan's no longer a buyer. saudi arabia's no longer a buyer. russia's no longer a buyer. who's left to buy? you have u.s. insurance companies. the question is will they fill the void? >> but hold on. when you think about it, when u.s. equities were at their lows last week, where was the yield on the ten-year? 2%. when we were on the lows earlier in the year in january, the yield on the ten-year was at 1.7%. so if we're going to go into a rocky period for global equity markets, i think you're going to see u.s. treasuries bid again. >> because treasury bonds and stocks are going down together. you have multiple macro rebounds -- >> but guess what? >> they don't offer the type of -- >> if things are as bad as you saw they are, b.k., foreign private buyers, not central banks are going to be bigger bidders of that paper than banks. that's the support valve. >> if what you say is going to happen we're in for bigger problems from the

chairman: we go to the secretary of the treasury. >> this is an important issue. the full discussion we are having will make it clear this will strengthen our national security. the powerful array of u.s. and international sanctions on iran is the most successful regime in history. we cut them off from world markets and crippled their economy. today their economy is about 20% smaller than it would have been had it remained on the 2012 growth path. the united states government stood at the forefront of this effort across two administrations and with the bipartisan support of congress. we have established a web of far-reaching u.s. and international sanctions that allowed them leadership afte afr rolling back their international program. the world's major powers have been able to remain united in preventing a nuclear armed iran. that produced for tough resolutions and sanctions in many companies. countries. the point of the sanctions is to change their behavior. accordingly, once the iaea confirms that they have completed steps to rollback the nuclear program and ext

to be the undersecretary of the treasury for terrorism and financial crimes. adam szubin if confirmed will be the third undersecretary of the treasury with the responsibility for the office of terrorism and financial intelligence. the lenders to the secretary reports directly to the secretary. this position we realize is responsible for exercising the dual mission of combating terrorists financing and money laundering while overseeing enforcement of that nation's constantly evolving sanctions program. the undersecretary also receives a number of separate policy, regulatory and enforcement options such as the office of terrorism and financial crimes, the office of foreign assets control in the office of intelligence and analysis, the treasury executive officer for asset forfeiture and the financial crimes enforcement network. adam szubin comes to the undersecretary's office for 14 years of government experience. he has participated in several international negotiations including the president's recent iran nuclear deal that is being considered here in the senate

we run into a huge deficit and the way we finance that is by selling treasuries. there's a lot to be concerned about in this market. i think this one has the potential at least to be as big as the libor scandal that we saw. the question is whether or not there is actual manipulation that the government can prove here, if there's a smoking gun text messages and the like, then it could be a big one to watch. >> eamon, thank you very much. >> you bet. >>> on wall street, a pause from the volatility. investors had a chance to breathe and digest comments from david tepper, an influential hedge fund manager, who said he was concerned about earnings and was not overly bullish on stocks next year. by the close of trading, the dow jones industrial average rose 7 of points to 16,330. the nasdaq climbed 39. the s&p 500 gained 10. overseas, investors paid attention to china and comments from the premier who said his court country's state is in good hands. >> reporter: chinese premier league used the opportunity at the keynote address here at the world economic forum to address

an available opportunity would be in the treasury markets. as a retail investor these are at an artificial discount due to the fact we've had the liquidating piece of china fighting with the safe haven flows into the markets. see the markets move higher. connell: i'm joined by jim burkhardt and i guess oil is the big story. trent, what you're saying is interesting. what i'm surprised about too is given the conversation over the last hours, you haven't seen more of a rotation of money, the safe haven trade into treasuries. logically you would see more of, that instead people are cashing out, right? what do you make of that? >> well, i think it's what we talked about. i think when it's spurred on by things going in china and the thought process is china's trying to do some things to stem what we've seen going on over there. most people assume it's going to have to do with liquidating a piece of that large part of the long u.s. treasury, they hold about 20% of the outstanding u.s. debt. any time there is narrative they could be liquidating that,

this area in front of the treasury was usually packed with touristtourists, and the numberf tourists vitting petourists vis. petra residents who use this for now if i'm lucky i make around $30, that is just enough to feed and look after reply, jordan, the government says it now has obudget to promote pe petra abr. >> our campaign will being campaigned internationally. the largest, traiskt start coming abandon with the 0 pilot. >> anne 00 employees have been laid off this year. but many who live and work in this region believe the beauty of petra will bring more to the area. >> the breaking news have it yoaz on dmament e-demand come here again. >> to okinawa, where the presence of u.s. troops remains contentious. >> no osprey! >> and, in a culture resistant to change, how one woman is blazing new trails. >> in the future, i hope to see mixed race people commonly accepted. >> journey to japan. >> i'm roxana saberi in hiroshima. a city known to many through history books and images seared

another benefit is the treasury is allowing them to keep whateveravings. likesame time it looks there are personnel challenges th the mod is trying to dedeal with to increase the number off soldiers, sailors, airmen, recognizing e services have shrunkoo far. trade-offant to see a where the programs will have to be sacrificed in order to ver the manpnpower part ofof the equati that has been shortchaed for a while? of pe idea a that a 2% -- anandudget, suddenlyy there were goingng to be l loadf neequipment broke down. that was itsest. if therere was expert cash, then highwower is going to have a iority. and without having t structure thatnables that quitman n to be employed by the u.k. as a who. -- that equient to be employed by t u.k. as a whole. i think will get continual refinement of what we do now, what can be done for 2020. it is a very tough process. dririving been efficiency reforms. a lot of the money ththe department has gotten back throrough efficiency savings.. it looks likike a lot of them ae baed by military services. not saving as mu money. mea

in the treasury market we saw extreme gyrations. i want to take a deep dive in the bloomberg terminal to break down what we saw in the two-year yield. it started right before the announcement even came out. --rted right before 2:00 let's see if i consume in and show you. it started to decline right there and continued the slide. camewas so steep when he to the yield. the biggest decline since march. the ecb started the bond buying program. that is a significant decline that we saw. to put it in more perspective, too, take a look at the three-day chart. that is pretty ugly. you saw the rally within the yield about two days ago as we get better data, it held its own yesterday and then fell right off a cliff. joe: absolutely. the two-year yield has been rising a lot and people took it as a sign the market was ready for a rate hike so when it didn't come, you got that tumble. my chart is basically the mirror, looks exactly like your chart except this is the dollar. 2:00, or just before, it started to weaken, and then we got that no hike,

nicole: the yield on the treasury 2.15%. e to "fbn:am," your first look at what is known in today's markets, the latest breaking news and what to expect for this very busy day ahead as people get into their desk. cheryl: we do have breaking news this morning. democratic presidential candidate hillary clinton does not need to apologize for using a private e-mail account. an interview saying what i did was allowed. she also said the scandal has not damaged her campaign that the attack continues including her opponent carlie fiorina. >> we cannot have a president of the united states who has lied about her e-mails and your lies about server in her basement. cheryl: meanwhile, a poll shows bernie sanders now leads clinton by nine points in new hampshire. nicole: president obama signing an executive order requiring federal contract is to offer paid sick days to the employees. it would give 300,000 work are set to seven days of paid sick leave each year. in his speech in boston, the president also president and congress. >> take a

on that fed narrative, you'd expect the treasury markets to be down too, we're not seeing that. e seeing that uncertainty creep back in the market, the vix up. i think it's something you want to pay attention to as we go into next week. liz: yeah, we're looking at a ten-year yield of about 2.31%. steven, elliot, strength, good to see you are. you see to the far right the dow, but we're going to start rotating in what we call our dropdown ticker there some of the indexes intraday. investors appear to really be grappling with this persistent uncertainty about the fed's rate hike plans, the actual day it happens. now a handful of fed officials -- and we've been following this since this weekend -- have mouthed off now saying a rate increase is still very much on the table for this year. how are we supposed to swallow that? well, we thought let's bring in harvey are. who is harvey? he's the former ceo and chairman of american express. you took the reins in 1994 at american express right before the fed tightened rates. tell us what it was like back then and if you head any mistakes ab

lauren: the 10 year treasury 2.16% at the moment. sandra: welcome to "fbn:am," your first look at what is new in today's markets, the latest breaking news and what to expect for the day ahead. lauren: weak manufacturing data helped a major selloff this morning that started in asia. for the details they go business reporter tracey che. tracey is a reporter for chinese state television. good morning to you. tough day. reporter: good morning. asian markets are seeing a sea of red. the market shot up nearly 5% of the country releasing a pretty weak manufacturing data. markets recovering after government released a few support measures. in hong kong from america's move to the downside as well. the hang seng down 2.2% after that is retail from the city showed a fit decline this month. japanese stocks fell sharply as well pick the nikkei down almost 4%. that is after a string of weak economic data from home as well as abroad. the exporter suffers huge losses and south korea at the cost be seen from redstone about 1.4%. back to you guys. lau

the treasury responsible is the key agency for any money laundering programs. so i will now if you'll commit to working with me to make sure that both regulators and the financial industry are doing everything possible to shut down financing for human trafficking. mr. szubin: senator, i'm pleased to make that commitment. i couldn't agree more about the severity, i think the escalating severity of the threat. i think you'll be pleased to hear that i was being briefed earlier this week by the director of fnsa about their efforts and they've seen a tremendous jump in reporting from financial institutions after finsn put out an advisory alerting financial institutions to sort of the red flags or hallmarks of human trafficking in terms of the financial transactions, they've gotten thousands of suspicious activity reports that are then accessible to and harnessed by law enforcement, state, local, around the country. so i think there's a lot there, but there's so much more to do. and it all starts with intelligence or law enforcement work to be able to lead us to the

i am your obedient servant, secretary of the treasury, alexander hamilton. the vein of general washington, i would like at this moment to ask you all to join me in a loud and hearty huzzah, three of them to the wonderful revenue cutter service. hip hip, huzzah! hip hip, huzzah! thank you very much for your kind attention. [applause] >> it's tough to top that. today, so be a round if there are any questions, you may ask. i was talking to alexander hamilton when he came in. i mentioned some anti-federalists lived in a neighborhood, a man by the name of aaron burr. security is looking for burr and his colleagues so that they don't come in. once again, thank you president washington and secretary hamilton. now from the very beginning of the revenue marine to the west coast card today, -- to the u.s. coast guard today, captain michael day. secretary of new york is the largest coast guard operation field command, almost 3100 active-duty civilians, reserves, auxiliary coast guard forces, spread over three small boat stations. two aides, eight cutters, 10 auxiliary

he also told us that he wants a look at the role of the treasury in relation to other departments. ing that worries people like mark foley act. we will hear a little bit more from a man who wants to change the conversation, called all kinds of experts. i was absolutely taken by your interview, riveted by the tone we heard. formuch can the party amend change with the bank of england chooses to do? i was thunderstruck that mr. thennell had the idea that bank of england should work on justice onere, thing, year -- how much can they amend with mark carney does? francine: i think we are having technical difficulties. your answer to the question is -- it depends on whether the labour party gets into power, because they don't have power to change anything until they get elected. but, and this is something you were talking about bernie of the, the whole shift debate here in the u k will be on equality, or the lack of. tom: i look at what we see in the united states and what we see in the united kingdom, and of course in catalonia. it is one thing is one thing as a discussion point that keep

he owes the royal treasury $17.30. he writes, "i gave eight pounds of bacon to the officers of the customs house." he paid four dollars to be officers of the customhouse. he gave wine to eight inspectors. he paid a total - b-r-i-b-e to inspectors. [laughter] and he repeated. $3. it looks to me as though he was not paying his duty so much as he was bribing the officers in charge. it was a widespread practice. it was not just clark. many other individuals engaged in that because it was the way to do business at the time. as i said, i thought if this is a business trip, where our clark clark's records about doing business? i'm not sure. when it came to bribery, then i got interested in whether william clark made a connection with the business agent of his brothers in law, they had a spanish passport to do business. well clark did not write , anything of his name. this individual who was a business agent -- i hate to say it, but his name was daniel clark. it was another nonrelative of william clark. he was an irish immigran

look at the treasury note yielding something just north of 1 percent. te-term corporate bond or take a look at the equity market. the fed is making a mistake not raising rates. you have rates. you have got to go out there and do something plan that are safer ways to invest. >> you have to keep a close eye. shares of you, you pay, and atf the tracks the correlation of the dollar, stock market tends to go down. when it comes to stocks, leverage loans, bk ln has been extremely weak. the interest and dividend heavy stocks continue to break and bring the market down. >> one thing i would like to bring up specifically is good old gold and silver. i'm not really by trade or fundamental philosophy. it has been beaten-down. it is in the 11 hundreds. silver is up 8 percent. you are starting to see factually major value buying at these levels now that the us levels are going down gold and silver may be very attractive. adam: a lot of us felt that the fed was not going to make a decision to raise rates. t >> iight move higher. inflation will remain low. expected to

the future aligned it will go to north to uniontown because the in thery of the treasury jefferson administration, guess where he led to? uniontown. then it will continue on to washington, because washington is also an established town. the national road when it comes ohio waswn 1818, already a state, have been a state for 15 years. indiana was a state at this time. it facilitates the movement of goods to the west. ohio would become the fourth-largest state in the union. well, when people move west, they need houses to live in. if you look at all of the structures on the ohio river to the mississippi, it has been estimated over 50% of all of the buildings were put together with nails made here. you put them on the national .oad and send them westward we have records in the 1840's of wagon trains heading west with nails that might have 20 or 30 wagon and a line going west. in 1830-1890, it will produce 50 million case of males. this is nail city. the suspension bridge was put up in 1849, the longest suspension bridge in the world. marvel.technological it still brings in science come interestedand

the treasury of the royal scandals was all about european royalty, the dark side or the less known crazy scandal to treasury of deception. i did secret lives of the czars of russia so i like to write about the history that we never learned in history class. >> [inaudible] >> i guess that wraps it up if there are no more questions. i do appreciate everyone coming and if you are having a bad day ever, turn it to the bad day that you're trying to plow through and i guarantee that he will feel you will feel a little bit better. [laughter] thank you all very much. i appreciate it. [applause] >>> best selling author joining us that freedom fest in las vegas before we get into her latest book update us on the legal situation and where you are. >> my legal situation is mostly resolved and by that i mean completed in eight months overnight could find it for exceeding the campaign-finance limits by $20,000. i'm still doing some community service and counseling but the bulk is completed. >> host: you mentioned the book. was it justified, do you feel that the punishment was justified? >> you have to

. -- preparations does the treasury secretary have to start making? guest: they have to focus on the deficit. not to confuse the issue here, but the treasury must like -- much like all the other agencies will have to worry about which personnel should remain on the job as essential personnel. in terms of the treasury, they will be under the same situation of every other agency out there in terms of who should come to work and who should not come to work to maintain essential services. the treasury has a different issue that they are going to be focusing on. secretary lou has arty sent a haser to congress -- lew already sent a letter to congress last week on a bigger issue called the statutory debt limit. when you add up all the borrowing we have there, we are at a limit. there is a limit in the law and we are a bout out of room to have any more borrowing authority. sometime andhat as we mentioned earlier, it may happen in the middle of november. to treasury would have manage a situation where we do not have enough our wing authority to pay our bills. h

let's get back to the markets. treasurieslied overnight after the fed decided to keep the stimulus on hold. the 2-year note tumbles the most. takes a look at gold, saved by the fed. climbing. in the stock market, banks were hit. america tumbled 3% overnight, that is understandable. the s&p 500 fell 0.3%. the highest before the decision and then the selloff. let's get more with west coast ridge, global chief investment -- wes, global chief investment strategist joining us from san francisco. everybody was waiting for the fed decision. as you said, much to do about nothing. wes: it was anti-climatic. the fed did what the market expected if you look at the futures. there was a one in three chance that the fed would raise rates and they did not. while there was a tremendous amount of volatility after the announcement to ended coast to where you were before hand. the big move on the day was as you would expect on the short end of the yield curve with two-year pulling back a bit. it looks like the fed will wait to pull the trigger.

the euro, the dollar, the treasury yields are kind of consolidating right there. e one real outlier is the vix futures. that may suggest that the further dated contract is something you want to sell if it -- if you believe the market will accommodate a september hike. olivia: could all of this be seen as quite normal? we are in this new era of low volatility because we are in this new era of unprecedented forward guidance from the fed and out the fed is thinking about tightening at last. isn't it normal that volatility is coming back and we are maybe making too much of all of this? no one really knows why the markets explode like it did last week. if you look from a technical point of view, the s&p 500 has been around sideways for the last seven months. sometimes you just eat some volatility to cleanse things out. there was no real news leading to last week. technical there is a dimension to this that is inevitable. the sectors that got hurt the most last week where the sectors that it done the best in the first seven months of the year. olivia: momentum stocks. en

chairman: we go to the secretary of the treasury. >> this is an important issue. the full discussion we are having will make it clear this will strengthen our national security. the powerful array of u.s. and international sanctions on iran is the most successful regime in history. we cut them off from world markets and crippled their economy. today their economy is about 20% smaller than it would have been had it remained on the 2012 growth path. the united states government stood at the forefront of this effort across two administrations and with the bipartisan support of congress. we have established a web of far-reaching u.s. and international sanctions that allowed them leadership afte afr rolling back their international program. the world's major powers have been able to remain united in preventing a nuclear armed iran. that produced for tough resolutions and sanctions in many companies. countries. the point of the sanctions is to change their behavior. accordingly, once the iaea confirms that they have completed steps to rollback the nuclear program and ext

the secretary treasury weighed in on that and the president has weighed in on that. that might be a thorny issue as well. >> that's another area where the chinese don't like to take a lot of guidance from the united states. they feel like they know how to operate their economy just fine, thank you very much. of course, the treasury secretary has said that he thinks that devaluing the currency was not enough. what the united states wants to see is a real free flowing response to global exchange rate. the chinese government is not likely to let go that lever of power that they control and weild over their economy. >> it's going to be a fascinating visit. eamon, thank you very much. appreciate it. >>> we begin tonight's market focus with two dow components joining forces to bring more iphones and ipads to business users. collaboration will allow apple devices to work more efficiently in workplaces that use sysco technology. sysco system fell slightly to 25.88. google announced the android watches are now compatible with apple's operating system. separately, google's lif

stay department of the treasury hartman are going to do everything we can to assist 10, to build strength and inspire confidence. >> senator corker? >> thank you. thank you for your service to the country. i very much appreciate you telling us a little bit about your family history and your family support, and i have had tremendous respect for what tf i does the 700 people you work with there. in spite of the great work that you have done, and others for you, i think you understand there is a bipartisan majority here that feels that not to you my but the administration squanders those efforts. instead of ending the in nuclear we are along for the industrialization of the program. many of us here, we are very does way. press then he said he wanted to do, which was to end .he program that expireprograms at the end of 2015. since the snapback provisions that were negotiated as a part of the deal the fact that there have to be to, that is that back she would be very supportive of us extending isi immediately so that the locations are there to snap back to. mr. szubin: thank you for your kind

this area and front of the treasury was usually packed fo h tourists. the number of tourists visiting petra has dropped 80%. the la last year has been the worst with as little as 40 tourists visiting the ruins per day. >> i used to make more than $400 a day in camel rides. now if i'm lucky, i make around $30 and that's enough to feed and look after my camel. >> blaming on adviso advisoris t discourage traveling abroad. >> our campaign is going to be conducted internationally, we're looking at you know, the least sensitive markets for us and the largest markets for us, that you start working on to make sure that traffic start coming back from these markets sooner than later. >> in petra city ten hotels have been forced to shut down and 1800 hotel employees have been laid off over the last year. but many hope the beauty and safety of petra back again. al jazeera. >> keep you up to date with breaking news, on aljazeera.com. our team updating 24 hours a day, all at al jazeera. aljazeera.com. trafficking of children as sex workers. it's a crime people think h

alix: didn't we see equity prices rise, money come out of the treasury market. seemed like game on. issue around how the fed framed its concerns or why it was not raising rates. they said it was a dovish hike. one, i'm not raising rates because i'm worried about global growth and inflation. another dovish hike when you say, things are great, but i higherre comfort, inflation target, higher nominal growth. equitiesad done that, would have continued to rise. which you can in do a dovish hike. at the margin, we felt between the two. nighthat keeps you up at as you look at the market and monetary policy? inflation, excluding housing. it is falling, and will fall more next year. 60 basis points is all we have for export. yet?the fed is not there alix: what if they don't go until 2017? >> it's possible they missed the window. what happens next? productivity does not go up, we will stagnate. look at walmart. those are some of the issues. alix: thank you so much for joining us. thank you so much. we appreciate it. china's much is metalsng appetite for hurting other coun

. -- preparations does the treasury secretary have to start making? they have to focus on the deficit. not to confuse the issue here, but the treasury must like -- much like all the other agencies will have to worry about which personnel should remain on the job as essential personnel. in terms of the treasury, they will be under the same situation of every other agency out there in terms of who should come to work and who should not come to work to maintain essential services. the treasury has a different issue that they are going to be focusing on. secretary lou has arty sent a haser to congress -- lew already sent a letter to congress last week on a bigger issue called the statutory debt limit. when you add up all the borrowing we have there, we are at a limit. there is a limit in the law and we are a bout out of room to have any more borrowing authority. sometime andhat as we mentioned earlier, it may happen in the middle of november. to treasury would have manage a situation where we do not have enough our wing authority to pay our bills. host: t

take a look at the bench mar 10-year treasury yields since the last rate hike in 2006. you can see there the yields were over 5% back then. today they're sitting at just over 2%. this is a cnbc special report. we are back in a second. >>> hello, everyone. welcome back. i'm sue herera with more news on american airlines. as we told you, there was a ground stop put in place and is in place for american by the faa until 2:30 p.m. eastern time. it started about quarter of 1:00 eastern time. the airline is saying it's working on some technical issues. they're trying to get it back up. it slowly is coming back up. it has to do, according to american, with the ability of people to check in. the faa now saying the ground stop is at basically nationwide and it is affecting all departing flights because people are not able to check in. you're up to date. we'll continue to follow the story which is still developing. american airlines stock though is still up on the trading session. all right. to the bond market now ahead of the fed decision and rick santelli. ricky? >> hey, sue. t

yesterday on the heels of the big selloff in the two-year treasury. y intraday chart for the s&p 500 financials index. we are at our session high right now. up 2.2% today alone. good point you make about the two-year as well. j.p. morgan came out with a note saying this yield right here shows markets can handle a fed hike, a small bump in the treasury market. that,f america is going saying that outside selloff is anticipation of china might ease some more due to a fed rate hike that there will be a trickle-down effect. china, japan, you name it. what i wanted to point out as was, the great chart that put together in this story. it showed thanks over the rate rise coming at the worst time for u.s. earnings. profit fell for the first time since 2009. the economy is doing ok. lookingral reserve is to normalize, tighten policy. since world war ii profit growth has fallen by roughly half in the one year following the interest rate increase. not necessarily a good sign. cannot really afford that if you look at what interest rates are at right now. interestin

the gorge used to be bustling with tourists down to the ruins the treasury. but western tourists have been hesitant to come here. officials say that the drop in tourism is based on the misconception that jordan isn't safe. >> we were worried before we left, but we did a little research, and everything on the internet said that everything was positive. since we've been here we've had nothing but welcoming people everywhere and absolutely no hassle. >> this area in front of the treasury was usually packed with tourists taking pictures and queuing for camel rides. the number of tourists visiting has dropped by 80% since 2011. people living around hearsay the last year has been the worst with as few as 40 tourists visiting the ruins on some days. the residents who rely on tourism say that they're suffering. >> i used to make more than $400 a day in camel rides. now if i'm lucky i make $30, that's just enough to feed and look after my camels. >> some go as far as blaming embassies that have issued advisories against traveling to jordan. >> we're looking at the leas

i should -- i should have said earlier on, that of course the exercise that the treasury has asked us to do is in relation to non-order deposital resource budget. the ota resource budget is in a different category because of the amount of oda will increase as the economy grows in size because of the gdp. >> [ inaudible question ]. >> well some will be spent in support of refugees rehoused in the u.k. in the first year in accordance with the rules. but what this means is that what i am talking to the british council about is a further reduction in non-odo funding, granting aid, and looking at the options for the british council to spend more odda funding. and i think where we'll end up, and i don't know if it is in this spending preview or in a future spending review, in a british council that does not receive non-oda aid but which receives more grant in total from the foreign office but with a much larger proportion or more of it being oda. and that will mean that the british council will need to generation its non-oda spending from its own recyclable resources while using grant and a

but indicates that the range of option, treasury wishes to consider. >> in the previous discussion youtalked about diplomatic services and you said it's the crown jewel of capability. it's already less by the french. they only spent one-third of the united states state department. more like six times, maybe seven. and can you give us some idea in detail of how can you make further reductions on the scale of 25% or 20% and the figures you've used without significantly reducing the size of the diplomatic? >> yeah, first of all, let me make the point that we should be powd of -- proud of seeing efficiency first. we've done a huge amount. when you compare the budget with the budget of the french, we operate in network roughly the same size, we do with fewer people, and i think we should be proud of that. we should be proud of the fact that we are operating more efficiently with fewer assets and i would be proposed to argue anywhere where we go head-to-head with the french. let me deal with your specific question. there are further efficiencies that can be made and i can physically identify