"the unwinding: an inner history of the new america." okay, i'll bite. how are we unwinding?hat is unwinding america other than, let's say, gay marriage, legalized pot, and socialized medicine? (laughter) should i have said spoiler alert? did i just give away the book? >> those are not the big themes of the book. the book is about how over the last generation the institutions that used to support the broad majority of americans like government, like news media, like corporations, like schools have stopped working on behalf of the majority. >> stephen: corporations are doing fine, my friend. >> they are doing well. but most of america is not. so we've become more and more a country divided between winners and losers. let me just say, this is not an argument book. it's not a policy book. there are lots of good books about this subject. >> stephen: so you're not arguing with the book? >> i am not. (laughter). >> stephen: so if we were to have an argument, i've already won? >> doesn't that always happen? (laughter). (cheers and applause) >> stephen: certainly once we're done edit

george packer, the unwinding. ll be right bac bac (cheers and applause). >> stephen: that's it for "the report," everybody. good night. - go back to the top. one more time, guys. - everyone, i need your attention...gather up. i said everyone, sketch-tron 6000. mr. hank hooper, the owner of our new parent company, kabletown, is touring 30 rock for the first time today. i will make a good first impression, so i need all of you to be your most normal. tracy, do not mention where you think dinosaurs come from. - do not mention the underwater city of sauronicon-- got it. - jenna, get all of your crazy yelling out of your system. - if you don't volumize my hair, i will choke you to death with your boyfriend's wig! - very good. frank, how is your armpit thing? - not great. it's almost touching my thigh thing. - okay, let's do our best. remember, everyone, just don't be yourselves. lemon, meet me in my office in ten. i need to ask you something. - oh, do you need sex advice? here's a tip. sometimes a lady likes to leave he

george packer, the unwinding. d version ♪ this holiday, tech the halls and ring in the savings with our radioshack price match guarantee. get great deals on the best brands at radioshack. (cheers and applause). >> stephen: that's it for "the report," everybody. good night. from comedy central's world news headquarters in new york, this is "the daily show" with jon stewart. ["daily show" theme song playing] [cheers and applause] >> jon: welcome to "the daily show." my name is jon stewart. we've got a good one for you tonight. my guest evangeline lilly. but first -- i don't know what that was. [laughter] we all know christmas is everyone's favorite holiday, everyone's. earch's. [ laughter ] -- everyone's. [ laughter ] but it's difficult for even the state your namest defenders of christmas to keep the spirit of the season when christmas its very essence is under constant siege by someone, something. [laughter] it's the subject of the new segment war on christmas (bleep) getting weird edition. first up. [ laughter ] t

so that gives you a brief mouth of "the unwinding." i'm going to turn it over to jeremy and then we can do the questions. [applause] >> did you interview newt gingrich? >> i am new to the tampa convention last year and had one question for him. he is at the vips did not have the benefit. >> transition from it into serious journalism. [laughter] you know, when newt gingrich as speaker of the house, he would hold his daily speakers briefing that i believe with erudite c-span. he canceled it eventually because amy goodman, my mentor from democracy now confronted him on live national television about his purported use of the word to describe hillary clinton, who at the time was the first lady. the "washington post" did a piece on it and the catalyst gingrich can't ditch bitch comment. we are in a moment right now, not just in this country, but globally where there's an emerging war against journalists in an country is there's a direct work and struggle us. in mexico, almost every week journalists are gunned down, either by narco cartels or

in "the unwinding: an inner his his -- history of the new america," george packer presents a portrait of the current social and political climate in the united states. pulitzer prize-winning biographer a. scott berg recounts the life and career of woodrow wilson in "wilson." in "hitler's furies: german women in the nazi killing fields," wendy lower, history professor, recalls the roles german women played in the holocaust. neil irwin, economics editor of the washington post wonk blog, reports the leaders of three central

and six south american countries are recounted in bolivar, and in the unwinding, and enter history and winner of the 2013 national book award, george packer presents the current social and political climate in the united states. and the life and career is recounted of woodrow wilson. and inhaler series, german women and the killing fields, this author recalls the roles the german women played in the holocaust. leaders of three central banks played three major roles in avoiding an even bigger economic disaster in the alchemist, three central bankers and a world on fire. for an extended selection, visit our booktv website at booktv.org. >> this was a deliberate move to end with a controversy because it was always the perspective. in other words, she was the one that stood out to say hello and she was responsible. and i was very much the idea and she was a victim. and she should have been protected. and they say it was a transformation of an elite force into the political rally where she was killed and after. we saw videos and pictures and we talked to numerous individuals and so no delet

inspiration. >> all right, we will continue this conversation on-line, for now the new book is is the unwinding pack cert winner of the national book award, congratulations, thanks for talking to us. >> thank you. s >> woodruff: finally tonight, the holidays are a time when families gather to celebrate and often remember loved ones no longer with us. fred de sam lazaro reports on one group trying to revive the legacy of relatives forgotten at a mental hospital in minnesota >> one solitary cross is all that suggests that this is a cemetery and perhaps that's fitting. there are several hundred people buried here spent most of their lives invisible to the outside world. there are no headstones in this burial ground-of-a former minnesota mental institution. the graves are marked not with names, just numbers. the relatives had to go through historical archives to find her number. a few years ago a disability rights group began working to change this their project is called remembering the dignity. >> we're here today to remember and honor albertine an i have to make sure i say her name right potrus.

first, the federal reserve take the first step in unwinding its unprecedented economic stimulus. at one of the final meanings of chairman ben bernanke is tenure, the fed announced it will trim its monthly bond buying starting in january. peter cook has more on the decision and mr. bernanke's last news conference as chairman. >> let the taper begin. at their final meeting, the federal reserve decided to scale ,ack the bond buying program convinced that the economy's cumulative progress allows the central bank to ease up on its record stimulus. chairman ben bernanke who has chosen successor janet yellen also carefully matched to that move with new language reinforcing the commitment to keep interest rates low for the foreseeable future. the bond buying which has swelled the balance sheet will be reduced to $75 billion a month starting in january from the current $85 billion. defended the decision in what was likely to be his final news conference as chairman. >> our modest reduction reflects the committee's believes that progress towards this economic objective will be sustained. wi

the fed has taken its first step towards unwinding its record stimulus program. us now to discuss what happens next is our chief economist bill, back in the summer, we were all freaked out. since then, the fed has communicated, and it has finally sunk in. when he pulled the trigger on the taper, the market reaction was positive. >> very much so. from may to october, was will we, will we? the only thing that everybody knew is that tapering was not tightening. be.as as clear as he could i think it was a brilliant statement, a brilliant move. i was figuring 15%. as you said, we have to start sometime. last night was the best time to start because the simple fact now we have a 10 day holiday, so we can really see what is happening. the market reaction has been what everybody expected. positive for equities. the dollar slightly improved. we are seeing a continuing hit with commodity markets. even the market was looking for this -- how will it affect emerging markets? and that is what we will have to look at their the first and for a second quarter. >> the market reacti

that is how you get the unwinding in a republic. people want us to address the real problems rather than play games. too often, we play games. our motivations tend to be about us. oft: senator coburn, author the fourth edition of the wastebook. you can see it at on the next "washington journal" we will talk with scott by david sanger. then fund-raising and spending elections 4 and 2016 and role of outside spending s.oups by super pac "washington journal" is live morning at 7:00 a.m. eastern on c-span. >> i was a donor to martha's of your e so many viewers. michael and i would do the annual consideration of things we cared they were se important to us, issues that we match bout because they the our broader belief but the and rs in our community martha's table delivered hot meals to the little park outside the bill and melinda gates at mcpherson square and i would see the van there people and i knew that it was volunteer driven. volunteers, 80 hard working staff and they had the ous influence in community they were serving. it was a gr

we will be right back with our fed roundtable after this. ♪ processed has begun the of unwinding its e bond buying program to the tune of $10 billion a month. it will taper. we just heard from federal deserve chairman ben bernanke -- reserve chairman ben bernanke. peter cook was inside of the room at his last press conference. we are talking about what a monumental day this is in some ways because this is the legacy ben bernanke is leaving behind. he has begun this taper program, the unwinding of the balance sheet, something janet yellen will face, and it will be a real test for her moving forward. >> absolutely. the chairman, we know the decisions he made during the financial crisis, being credited with keeping the economy from falling into the a bass, but he will be judged on how this wind down takes place, as we'll janet yellen. they will be tied together because of this turnover. wasas striking when he asked about whether janet yellen agreed with everything, and whether there might be any surprise in the future, that there was no separation. he wanted to make it clear there was no

rates that we have had, how they have affected these asset classes, and as importantly, what is the unwindingng to do. moneyn you speak of more in alternative assets, this is a trickier to make that argument because the s&p 500 is up something like 25%. it is difficult to steer money out of the stock market. >> it has been a good year for equities. i think especially for institutional investors who are looking for something that is more certain over a longer horizon, perhaps with quite a bit less volatility, they're still going to be an underlying demand for alternative assets to some degree irrespective -- growing?e it going -- >> yes, absolutely >>. here that is a pretty big umbrella. he left private equity and real estate and hard assets. -- you have private equity and real estate and hard assets. >> the key thing in any portfolio is to keep in mind that precipitation. we aren't necessarily thinking -- picking one over the other. we think that they are going to offer something effective. >> i think of some of these harder assets which we don't talk about, quite rightly, as much as we do th

thing to convey to markets because i think the position the fed's and now in trying to unwind quantitative easing is they're trying to take it away and not have markets overreact not have markets fall out of bed because the sort of stimulus this candy has has been taken away from them and i think the big concern is has the fed painted itself into a corner here where any removal of the stimulus will be a signal to markets to go down did it the show that you spoke with knowledge at all of the close connection the fed has with the big banks and if so did they see it as a problem or conflict of interest. well i think and then again this will surprise viewers i think there's a number of officials at the fed charles plosser jeffrey lacker richard fisher who are in our film who are currently at the fed who don't like what fed policy has been portraying which i think has been support for the big banks support for the stock market ben bernanke has been very explicit about wanting stock prices to go up and recently with with their purchase of mortgage backed securities at five hundred billion dollar

[applause] "the unwinding" by george pack packer. 's national book award in nonfiction goes to george packer. [applause] ♪ ♪ ♪ ♪ >> this is an incredible honor. anyone who was at last nights reading knows that all of the nominees in this category did great work, and i feel very lucky to be given this award. thank you to my friend, john, alex, and the rest of farrar straus and giroux. you still do it the old-fashioned way which is still the best way. [applause] thank you to sarah of the wylie agency for your crucial intelligence and enthusiasm. thank you to daniel and david, and others at "the new yorker," for giving me just the right balance of freedom and editorial brilliance. thank you to my friend, dexter, for being there from the start your my mother and sister, nancy and ann packer, writer's both, so they understand. my children, charlie and julia. i won't say he made it any easier if you did make it a lot more fun. to laura, my love, thank you for sharing my life and my work. i can't imagine either one without you. and, finally,

in "the unwinding: an inner his his -- history of the new america," george packer presents a portrait of the current social and political climate in the united states. pulitzer prize-winning biographer a. scott berg recounts the life and career of woodrow wilson in "wilson." in "hitler's furies: german women in the nazi killing fields," wendy lower, history professor, recalls the roles german women played in the holocaust. neil irwin, economics editor of the washington post wonk blog, reports the leaders of three central banks plaid major roles in avoiding an even bigger economic disaster in "the alchemieses." for an extended list and links to 2013 notable book selections, visit booktv's web site, booktv.org. >> next on booktv, eric prince, the founder of blackwater. he talks about the successes of the private mercenary group and the sacrifices that blackwater employees have made in the war on terror. this is about 50 minutes. [applause] >> well, good morning, everyone. so nice to see so many of you here early on a friday morning. of course, our special guest is erik prince, and we wi

history will be his judge. , wes too soon to say haven't seen how the unwinding will play out. on monday federal reserve act. the people close to him have respect for him and what he did. the kind of leadership he presented during a time of crisis, and the history books from a lot of the folks i'm talking to, those who are critics of his or not, they realize he had to make tough decisions and a lot of people in this town did not want to be in his shoes over the last eight years. >> thank you. we will see you at our 2:00 p.m. said that broadcast. fed broadcast. does ben bernanke run the meeting or does he deserve -- defer to yellen? >> he runs it, she has not been confirmed yet. presentationthe for 15 or 20 minutes? >> they go around the table one by one and give their economic outlook and what they think they should do as a group. >> does she take questions? >> they can question each other, but that is generally not done. give a presentation. it takes a while to get through the whole process. going to see press conference after every single meaning -- meeting? >> that is a wildc

opponents argue that the fed has to start pulling back sometime, and unwinding the program would be more difficult the longer it goes on. and they say the budget deal in washington is brightening the outlook for the economy. how will it effect the average american? mortgage rates will grind higher. >> i would not be surprised to see rates going back up just enough to cause issues for the first-time home buyer and those who are sensitive to the monthly payment. >> reporter: the feeling feelint the recovery, new home construction soared the most since 1990. >> patricia, a couple of questions i want to ask you, this is a very orderly way to manage this tapering, isn't it? i think a number of people thought, and we may even have discussed it that it was a cold turkey thing, it would just end, right? but if you look at how it's going to happen, this is a very orderly process of tapering. >> no one was really expecting the cold turkey because that would be extremely disruptive. what the fed is indicating it's going to do is unwind slowly, but they'll have to measure how the markets react. the

. >> which story did you tell from "the unwinding." read a passage where one of the main characteristic is thinking about the -- -- he's sit on the front porch at night will being to the jack danielles listening to the trucks go by and knows some of them are full of chickens that head down to slaughter houses. he begins to think about with the chicken goes and how they come back to the bo gang les he owns. he sells the meat to his customers. it's an elaborate and kind of dark picture of an economy of fast food and imported oil and people getting poor in his part of the country. >> george, do you see what is going on in the country today economically as different from other tran formations that we've had? in our nation? >> yes. with an exception. i think the analogy would be to the early 1900s. when we had vast inequality of wealth. we a handful of robber barons at the top. and we a lot of new immigrants struggling to survive. 50 years of what i call the roosevelt republic, in which middle class people began to get ahead, started to com

it is going back to another risk factor they came out. 60% remember stout the unwinding of quantitativepolicies would have a negative impact on local markets. that figure was highest in places like india and brazil where they had account problems. we arty saw issues with that earlier in the year when the fed announced plans to begin tapering as it urges his. -- tapering as it purchases. let's talk more about our exclusive interview with the ceo of airbus. bregier inth fabrice the last half hour. we asked him about the game thinks and if he still the 380 is it. >> we think traffic will grow by about five percent per year, thanks asia, china and middle east. it would double every 15 years. traffictwo times more from before. you need the a 380. this is the aircraft or the future. the perfectione of that playing? can you take it into the united states? are going to see a big rush for you selling that aircraft and see united states now that we have consolidation done? were going to see that aircraft having a story in the united states? how to change perception of the airplane? >> this is the

once we put that on the books, like i said, you can't unwind the clock. so okay, here is what we're going to do. i must admit, i didn't like it very much. i thought we were giving up too much, but having said that, the alternative wasn't very attractive. and we shook hands like gentlemen do and we called a truce, and those were the rules we would operate under. everybody said well, we dodged a bullet on that one, and the senate will continue to function like it's functioned the last 225 years, as a place where the minority, whoever that might be at any given time, has a voice. the only body in the world that operates like that. like i said, i must disit i had qualms about it. i talked to my colleagues on both sides of the aisle about my qualms and at the end of the day, i -- i reached the conclusion that it was better than the nuclear option. so why did this come up again? if we had reached a deal, if we shook hands like gentlemen and women do, why did this come up again? i thought this was behind us. i thought we would make our way through nominations an

what does that mean in practical terms while the bank is unwinding this long-term stimulus project. > i think since inflation has been so contained it means that she has the freedom to target unemployment as aggressively if she chooses as bernanke has in the past. she really can be data driven and deliberate but look at a certain set of indicators that is targeted at unemployment. being motivated by those rather than worrying about the protecter o interestrates. there is head wayne that may go forward, reverses, stops, the market may be queasy trying to figure out what the latest number means, we can expect to say that. >> mark, with the new chair will there be new tools at her disposal. >> she certainly could change course. you could pro long. i think a lot of this will actually be when does the further tapering take place? so some of this is about timing as much as anything else. i think she'll keep her foot on the gas longer than bernanke would, and it's important to keep in mind it's a committee. she's not a dictator. it will be a committee and where she moves that committee is an

we need some protection in case the market unwinds. >> have we seen a lot of bets in that direction, e volatility will go up as this hedging milk and is him -- as this hedging mechanism? >> we have seen the pickup in the movements. this is better than one percent last friday and one percent as well. you have seen the pickup along with those moves. the options going towards expiration next week. the activity we have seen in the last couple of weeks and months, andave seen some buying the selling of the high calls. january,een in february. we saw the call buyers in february and april today. >> to take us and decipher what you are saying, do you think a lot of this is protection or are there some out right bets that volatility will go up significantly? >> a combination of both. ,hen you see a trade like that that is a binary type of trade where it is like earthquake protection. as far as the activity that we at theing, we're seeing money calls. that tells me there might be some offensive positioning moving into next year. we have a lot items between now and the end of the year. we have s

take action that might send a signal that the united states did not want to fully test this during the unwindthewould unity we have achieved in the if thiss, and then, does not work out and you have to look at the other alternatives that the president has kept on the table, you still oft to have some kind international support for any follow-up action. if the perception is that the united states did not give this people testing -- give the full testing, that would be harmful for our interests. for full sanctions relief to , one of then iran noditions is that iran is longer a state sponsor of terrorism. all of their missile programs are accounted for, they are no longer a threat to u.s. therests and allies in region. the conversation about hezbollah and other issues has to be had. it has to be a conversation i will go through congress or the president will have to certify that thoseress issues have been satisfied. as we have talked about several , that couldmonitor pose the way for the opening of conversations that need to be had. >> if you look at the language of the sanctions, they do have r

president hu ping had lunch and expect we had a pretty normal steamboat restaurant in pj to be the way to unwind when bill and terry his own trip or meal. what regular people the choice of steamed buns are bound to include pork and onion green vegetable and cute pig liver the cop and twenty one year and around three dollars and ten. working as normal people eat like a normal person people stood next to him and took photos. the deer camp and became super popular online or printed by many chinese sources. people started ordering the same usc played with some kind of tourist attraction. at this hour. one of more than four hundred identical store to get the present appeal and had to wait in line for hours many offered to take photos complete worry that. not everyone would help me kill time job and all that changed towards holding the visit next up until monday clinical teaching how to get married first to complete thousand us dollars. shanghai the posting them and get woman buried it deep in the school for training he promises that people took the class. the thing related to find a three hundred and

the middle class. it means streamlining regulations that are outdated or too costly, and coming together around a responsible budge. one that grows our economy faster now, and shrinks our long-term deficits one that unwinds the harmful sequester cuts -- [ applause ] >> and frees up resources to invest in areas like scientific research. a relentlessly growing deficit of opportunity is a bigger threat to our future than our rapidly shrinking fiscal deficit. [ applause ] >> so that's step one towards restoring mobility. making sure our economy is growing faster. step two is making sure we empower more americans with the skills and education they need to compete in a highly competitive global economy. we know that education is the most important predictor of income today. so we launched a race to the top in our schools. we're supporting states that have raised standards for teaching and learning, we're pushing for redesigned high schools that graduate kids with in demand high-tech skills. we know it's harder to find a job today without some higher education, so we have helped more students go to college with grants and loans that go father than before. we have made it more practical to repay those loans. we'

that is how you get the unwinding in a republic. people want us to address the real problems rather than play games. we are real -- in real trouble in terms of leadership. it will want us to address this. too often, we play games. our motivations tend to be about us. host: senator coburn, author of the fourth edition of the wastebook. you can see it at coburn.senate.gov. we appreciate you coming. we are live-span, at the pentagon for the briefing is afternoon with defense secretary chuck hagel, and the chairman of the chiefs of staff, martin dempsey. it should get underway shortly. there will be another -- a number of issues, including the defense authorization bill, which continues to be debated on the floor. the senate has recessed emily back at it at 2:15 p.m. eastern. the bill includes over $80 billion for the war in afghanistan. the administration just issued a statement of support a little while ago. although the bill includes a limitations and will implement certain efficiencies, the administration supports passage of the legi

the fed starts to unwind. a $10 billion taper to start in january. e markets rally on the news with the dow closing at another all-time high. >>> target targeted. credit and debit cards, data stolen from an amount of unknown amount of users starting on the black friday weekend. >>> and at u.p.s., it is the busiest day of the year for holiday packages. you now have less than one week to get your holiday shopping done. it is thursday, december 19th, 2013. "squawk box" begins right now. >>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with a version of joe kernen and andrew ross sorkin who is reporting from the yale ceo summit in new york. we have a stellar lineup this morning. erskin bowles will be joining us on set at 7:00 a.m. we have the ceos of pvh, pulitzer prize winning columnist tom freedman and steve swartzman. and yes, we are packaging all of this into the next three hours. it's hard to imagine. joe is going to be here very soon. a little bit of trouble with the tires today. yeah. pothole tied him up. rig

the fed reserve is taking the first step of unwinding its massive stimulus policy known as quantitative easing. it's down from $85 million to 75 billion. it's helped strengthen the housing and stock market. ben bernanke says the fed can still reverse course. that sent stocks skyrocketing. the dow and s&p closing at record highs closing the biggest daily gain in two months. the nasdaq closed at a 13 year high. the markets continue to climb later in the a week. america's economy is growing faster than first thought. the final reading shows an annual growth of 4.1%. that's up from 3.6%. this is the first time that gdp has topped 4% since 2011. gross domestic product is very important. it's the broadest measure of the strength and size of america's economy. we have big earning news. oracle beat analyst estimates. u.s. home builders broke ground at the fastest pace in over five years increasing 23% over october and on jennifer anastasoff -- on an annual pace. joining us are barbara marcin and alan blinder. he's author of the book after the music stops. thank you both for joining us. alan, wh

what does that mean in practical terms while the bank is also unwinding this long-term stimulus project>> i think for the near term futureish it means that she has the freedom to really target unemployment as aggressively if she chooses as bernanke has in the past. she really can be data driven, deliberate, but look at a certain set of indicators, motivated by those as opposed to worrying about the specker of rising inflation. >> one of the ways that traditionally has been done is by lowering interest rates. they're practically at zero, it's not that like you can do more than that. >> there is the head wayne as we've been talking before the break. what you may see is a policy that goes forward, reverses, stops. the market may be queasy from time to time trying to figure out what the latest number means from the medicine stimulus program. we can expect to see that. >> mark, will the new chair have many tools at our disposal. >> it could reverse course, and you certainly can pro long, so i think a lot of this will actually be about when does the further tapering tick place? some of this i

the central bank is taking the first steps in unwinding stimulus. sh joins us now from washington for more on that. the latest on the janet yellen nomination. with the fed tapering, have we finally reached the end of the stimulus campaign? are we getting back to normal? >> i think it is probably a little too soon to say we are getting back to normal. they are not buying $85 billion a month, but they are still buying $75 billion a month even as they taper throughout the course of this year lower and lower. we are still probably looking at maybe another $400 billion or $500 billion of purchases below -- he for they are done. they have their target interest rate near zero for that entire period. we are quite a long ways for even something that resembles normal. >> german bernanke, did he answer all the questions we have about fed policy? >> no. one of the day questions that he is leaving to his successor, janet yellen, is what the fed is going to do with that target interest rate. they have said they will hold it near zero until unemployment is at 6.5%.

>> i think secretary sebelius would serve us well to step down and the president to appoint somebody hugh understands how to unwindhe mess called obamacare but since i will not hold my breath the inspector general should continue the investigation and that i think is very important the same thing to be promoted to a leading position is steve administration in gone awry now compounded by a senate by a requiring a send people with a show the nuclear option two weeks ago. lou: to other options hirings the aide to senator became as he pushed forward the kennedy became amnesty legislation that has people very concerned and second, though where we stand will speaker bather -- speaker boehner had his way for immigration reform rather than the approach where you have leadership for a good six months? >> it has been working with us very closely including the speaker who was very helpful about one month ago to make it clear that not only will we take up the amnesty bill but not even conference with it after reid to our work with a step-by-step reform first to the legal immigration reform then finding appropriate legal statu

that is how you get the unwinding in a republic. people want us to address the real problems rather than play games. too often, we play games. our motivations tend to be about us. host: senator coburn, author of the fourth edition of the wastebook. you can see it at coburn.senate.gov. we appreciate you coming. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013] that kim jong-un has executed his uncle, we will discuss the situation inside the country. it will be followed by a look at president obama's national security legacy. fund raising and spending for the 2014 and 2016 elections in the role of outside spending groups like super packs -- super pac's. "washington journal" is live every morning at 7:00 a.m. eastern here on c-span. >> like so many of your viewers, i would to -- michael and i would do the annual consideration of the things that i would care about because they were important to us when we grow. issues that we care about because they matched our broader is bel

we don't think that has happened to an extent that is a danger to the system of the -- when those positions unwind over the summer they create bumpy nests in interest rate markets in particular. general philosophy on financial stability issues is we try to address it first and foremost by making sure the banking system and financial system are as strong as possible, banks and capital withstand losses and by using whatever other tools we have to try to avoid bubbles or other kinds of financial risks, that being said i don't think you can completely ignore financial stability concerns in monetary policy because we can't control them perfectly and there may be situations where financial instability has implications for our mandate which is jobs and inflation which we saw in the great recession so it is a complex the shoe. it will be many years before central-bank have completely worked out exactly how best to deal with financial instability questions. the first line of defense is regulatory and other types of measures. the asset purchase program, the last one is well on its way, we are pleased that w

steelers who's wrong with nothing but don't expect much out of life if that's the way you want to live don't don't remember unwind of the american dream of being in the middle class and working a forty hour week is not a reasonable thing you've got to earn your way in this society i mean when you think i'm talking about the i'm talking about the middle class i'm not talking about becoming rich not. just look at what's available think about think about what you're saying take a step back look at all the welfare that's available social security you've got not only welfare and all went well now you have now you have the health insurance obama's going to buy your health insurance with the health reform act you've got real wealth. and that's your for profit company and this guy this myth that mythological average guy pays nothing in tax he gets all these benefits then you want to come in and say now we have to worry about his. you know very well the average person in this country the upper five percent pay almost all the taxes in this country. the opera five percent support the budget simply not true for five percent

they can't, if there is this drip drip drip as jonathan calls it that continues, then the thing could start to unwindn the latter part of 2014 ahead of the midterms. >> jonathan allen, i've lived this whole experience. because for eight weeks i was stymied in trying to get access to healthcare.gov. finally when that log jam was broken, i was looking at 24 different options for my family and me. and just a couple days ago pulled the trigger on one of them. when you go through the processing with and i'm in a state that didn't set up its own exchange, now you're almost overwhelmed with change which i guess is a good thing. and one of my takeaways is it focuses you more on the costs of health care. because no longer is your only question am i covered. now in order to pick a plan, you need to get knee deep in the world of deductibles and you need to decide do i want to write a check now or do i potentially want to write a check later. i guess my point is it's a whole new world when you finally are looking at essentially the orbits for health care. >> this is a complicated matter but an important one. mor

the fed, how do they balance? they definitely needed to unwind. >> this the point were making last time.arks understand that fed tapering it does not mean a rise in interest rates. the markets panicked. >> that is right. there has been communication to distance they ease of tapering from rate hikes. talking about 2016 or later. chance view is there's a that the fed could be hiking the rates in 2015. would bring that forward a little bit because of the nature of the recovery. in the u.s. economy particularly around the house in the markets. we were talking earlier session about the aspect around housing and house building creates demand for finishing and appliances. the key elements in our view for next year. that positive momentum in the housing market will spread out more broadly. >> if you look at the world economy, 2015, the fed started to tighten. they will start taking. your the ecb possibly using. and the bank of japan. >> it is a phenomenal environment. central banks on different levels. the fed meeting the accommodation. you have to find a way for mario keepi and his team to euro

hedge funds you know that's a mega trend that we need to keep an eye on because when the petro dollar trade starts unwind it's going to impact the curve and we could see a number of different financial events occur once that starts on war and. that was market molin editor of futures intelligence. coming up economics professor richard edlin joins me live to discuss what germany's history can teach the u.s. about inflation then rachel curtis is joins me to talk about a busy battle one ben is having over there music it's in today's big deal but as we head to a quick break here's a look at some of today's closing numbers. i'm . kind of. i'm. all about money and i'm actually like a politician right. here just two. days. i've got a quote for you. it's pretty tough. stay with substory. because this guy like me are about done stead of working for the people most missions the beach or ritual the drug runners vision. of the road it was. ninety years ago this month the great german inflation came to an end with the collapse of the market in one thousand nine hundred twenty three now as record numbers of people spen

congress came together to pass a budget one that will chart our economic course for the next two years. it's unwindingdents and seniors. >> they did take republican leaders to task. unemployment benefits for 1.3 million americans will expire next week unless congress acts. he arrived in hawaii overnight for his annual winter vacation. his daughter landed in honolulu last night. president obama has no public event scheduled where he is in hawaii where he expected to stay. he predicted that 2014 will be a break through year for america. he'll keep in place a mandate that individuals buy health insurance and defended the nasa surveillance programs. obama did not acknowledge that 20 -- did acknowledge that 2013 was a tough year and he was unable to pass gun control legislation. >> there are areas where there have been frustrations where i wish congress moved more aggressively. not passing gun control in the wake of new town i continue to believe was a mistake. >> he said he is not concerned about poll numbers as they've gone up and down during the course of his career. >>> reid spokesman said that he's re

on top of that, we've got the big unwind here in terms of tapering. k actions speak a lot louder than words when it comes to fed policy. and the fact that fed -- future fed chairman janet yellen voted in favor of tapering at the last meeting tells us that she may not be as dovish as many people may suspect. >> yeah, but ed, does tapering necessarily mean a stronger dollar? >> i don't think so, not necessarily. and here's why. listen, when we started quantitative easing for the first time, december 16th, 2008, the u.s. dollar index trade weighted closed that day at 80.01. today it's stronger. the u.s. trade weight is actually a little stronger than it was five years ago. so the assumption naturally was that qe was going to make the dollar weaker. it didn't happen. and therefore we cannot assume that tapering will make the dollar stronger. >> ed, here's the difference. it's sara. the only difference right now is the federal reserve is cutting back its stimulus. but other central banks around the world, major central banks, are in the opposite mode. they'