treasury who could have answered that question more sufficiently. one final question we have going on, if i could just ask one final set of questions. in your written testimony you said the european situation were to deteriorate further financial markets would become more stressed and you go through the scenario of the american economy and say this is bold language for the federal reserve at a time that u.s. unemployment is very high this is a particularly unacceptable outcome. the extreme financial march would be impaired. strong language for the federal reserve. in the event of that scenario, that the european situation were to deteriorate further, what is the fed prepared to do to prevent this outcome? >> i think my language was more about how unacceptable the high unemployment rate is, if the unemployment rate were to go higher because of the events in europe that would be very unsatisfactory. >> to be specific and my time is limited, i will read you the whole paragraph. that is not what the reinstatement says. >> i will stipulate to your interp

ten year treasury yield break out so right now they're saying that u.s. treasuries remain among the safest assets in the world they're considered safe everybody's buying them the yields are driven down but what could prove those investors wrong u.b.s. asks they give a few reasons for the answers but the one that's most interesting to me they say alternatively the appeal of u.s. treasuries could be eroded by common bond issuance in the euro zone creating the potential for a larger homogenous market for european government debt that could rival u.s. government hedge money that however seems a remote possibility well this is what the currency war is all about you know a couple of years ago it was thought that the euro would be a replacement for the dollar on the currency side this was the reason why up to thirty percent of global trade was done in europe then the arrow started to break apart or be challenge with all of these sovereign defaults are being rumored and downgrades so but now the competition will be who can issue the most. sovereign debt so the no

treasury market and yell. go up in i'm talking inflation south station harbor i know you're coming back after the break by popular demand no more gas in the shower just gone with stacy and i have twenty twelve the gas all right don't go. well with the. technology innovation all the developments around russia we've got the future covered. welcome back to the kaiser report america's are with states dinner time to find out what your predictions were at facebook dot com forward max kaiser says you never max the most popular of the sixty four predictions made by viewers of this program was from ash braised merkel and sarkozy to release a sex tape while they worked for paris hilton. and i mean if they were to release a six day i'm sure you've got a tremendous amount of views on you tube but speaking of releasing tapes online i want to ask you about this what you see for two thousand and twelve on the online distribution market because there's a very interesting story that broke at the end of the year and that was lo

treasury market and yield. so go up and talk about flesh and stuff stacy herbert i know you're coming back after the break by popular demand no more guests of the show we're just going to stacy and i have twenty twelve at the gas all right don't go away. the official placation. pulled from the. video. feed now in the palm of your. on the dot com. good to take three. four three. three. three. three. video for your media project preview deodato r t v dot com. welcome back to the kaiser report i'm max kaiser with stacy arbor time to find out what your predictions were at facebook dot com forward slash max kaiser stacy ever max the most popular of the sixty four predictions made by viewers of this program was from ash raised up merkel and sarkozy to release a sex tape while they worked for paris hilton. and i mean if they were to release a sex tape i'm sure you've got a tremendous amount of views on you tube but speaking of releasing tapes online i want to ask you about this what you see for two thousand and twelve

hank paulson was treasury secretary under bush was about to nationalize fannie and freddie take them over because they were in such bad shape when he in doing so it would wipe out the share or hold or value of those companies. meanwhile he was telling congress and the public that it was going to take some minor fixes and some audits and everything would be ok but he secretly met with a roomful of hedge fund managers who had a lot to gain from this information he gave them this information before he told congress and me for he told the public now we don't know for sure whether or not these hedge funds and short of the stock we got out of it out at freddie and fannie but they might but what is he doing meeting with leaders top hedge fund people and not meeting with congressional leaders not telling the public and that's absolutely outrageous is it legal for this to go down to the aspirated it's i'm afraid it is because they are lar our laws are so porous about this and b. hank paulson didn't actually make any money on it so he's not really committing insider trading and now it's unclea

treasury market and yield. go up it or talk about flesh and stuff stacy herbert i know you're coming back after the break by popular demand no more guests of the show we're just going to stacey to have twenty twelve the gas all right don't go away. more news today violence is once again flared up. these are the images. from the streets of canada. showing corporation to rule the day. well. technology innovation all the developments around russia we've got the future covered. welcome back to the kaiser report america's guys are with states you know over time to find out what your predictions were at facebook dot com forward slash max kaiser stacy over max the most popular of the sixty four predictions made by viewers of this program was from ash raised merkel and sarkozy to release a sex tape while they work for paris hilton and i mean if they were to release a sex tape i'm sure you've got a tremendous amount of views on you tube but speaking of releasing tapes online i want to ask you about this what you see for

treasury market and yield. go up at the top of the flesh and solve stacy arbor i know you're coming back after the break by popular demand no more guests of the show we're just going to stay sane after twelve delta gas all right don't go away. come one stream cascading from mountain slopes the view is miss mirage. but this beauty brings death and speed of more than two hundred kilometers per hour . step to along. well with. science technology innovation all the moves developments around russia we've got the future covered. welcome back to the kaiser report america's are with states time to find out what your predictions were at facebook dot com forward max kaiser says you never max the most popular of the sixty four predictions made by viewers of this program was from ash braised merkel and sarkozy to release a sex tape while they worked for paris hilton. and i mean if they were to release a sex tape i'm sure you've got a tremendous amount of views on you tube but speaking of releasing tapes online i want to as

>> senator, the treasury operations, treasury functions, along with our internal audits would work to ensure -- assured that the investments were held using the customer funds, conformed to rule 125. s, i think has been stated, -- as i think has been stated, at least until that evening on the 30th, there had never been any indication that that had been ever not followed. >> right, but we have a problem. at some point, something happened, and i guess it treasury is involved in that process, i guess my question is who directly in the firm interfaces with treasury, and makes those decisions? >> the decisions about whether you move the money is separate from what would be the investment decisions that you might take. the investment decisions that you would take against -- i should not say against. the investment decisions you would take had to conform to rule 125, and nobody ever disputed that, nor am i aware of any time that those investments did not conform to that rule. >> but, i am curious who -- again, i understand what you are saying, but knowing you have this smorgasbord of doing t

, secretary of treasury. because, if your bank collapses, that is america's biggest market, and unemployment in the united states will go up and that will defeat obama. >> i don't really think that politics played that much of a world. i think he would have sent the secretary of treasury in the first or last year of the administration -- is secretary of treasury of the united states must get involved because it affects not just the reelection prospects of the president but the economy of the united states, all of us. this is an institution of response. >> i think colby was right when he was saying the real problem is living beyond europe's needs. the problem is the entitlement state, which the europeans have developed, to an extent, that is obviously not sustainable. of course, miss south -- the greek, spanish, italian systems -- compared to the stronger northern economies. but this is social democracy run wild, way beyond means, and now comes the reckoning. the interesting thing is that america has a look at

keep them in treasuries or gold? what are your thoughts on that? >> i think you probably want to have a combination. as i said, i suspect the u.s. can still outperform europe. the only way that would change is if europe somehow fixes this, and i'm not sure that's possible. i'd say u.s. centric for u.s. investors, and i'd have a combination of bonds, stocks, and definitely have some gold. and even though gold may not have found the ultimate bottom from the high up of $1921. we're estimating it gets down to 1425 or so. but in the scheme of things, i think investors want to own some gold. >> thanks for the insight. happy new year to you. >> thank you, susie. >> susie: and we've been speaking with rick bensignor, sheaf market strategist merlin securities. oil prices gushed back above $100 a barrel today on rising tensions in iran over blocking crude shipments. the spike in prices also came on that strong consumer confidence report we told you about. looking ahead, investors in commodities could be in for another wild ride in the new year. analysts say

secretary treasury and so forth. he will go down in history as one of the outstanding secretaries. >> i had a relationship with the white house. >> nothing personal, please. [laughter] >> much of mike understanding came from -- my understanding came from -- she said you are working for george shultz. it is quite a bit different than other agencies. i think it carried sir. things change. after 1972, when peter brennan came in, that was a different attempt to, a different view of governing. pete came out of the building trades. his appointment was a political outreach. he certainly did not have and knowledge of government who was responsible for the same way when schultze did. years lasted about two when we were in the ford administration and things returned to the model we had gotten earlier. >> i can tell an anecdote about the white house labor. i was a staff member for a year and then larry offered the the job of collective bargaining commission. i would work halftime at sea day and half time at labor. -- cea and ha

treasurys it could be a problem. the u.s. and japan continuing to increase treasurys but the u.k. and japan, the flat land treasury purchasers. the fed has been active that the european bailout starting in 2007 was forward with the discount window of operation and peaks in 2008. the largest european bar was a failed belgian bank. most of the discount windows loans that were paid we are still in the dark on the guarantees. recently the pcb through swap lines in november. these are seven day swaps trading 0.8% and the bank board the same amount in the prior week, etc.. it begs the question how long that will keep this fall line open. we cannot see the swap line's real-time the evidence indicates the swap is a short half-life meaning that it is able to drive down the rates momentarily and rises back up showing that it was ineffective. recent disagreement of the size of a fed intervention of discount window and guarantees between and the fed and bloomberg markets. the bloomberg market said the fed committed $7.7 trillion as of march of 2009. almost the size of our national debt at one

treasury secretary timothy geithner has travelled across the atlantic to emphasize the importance ofhe problem. >> the u.s. treasury secretary alongside his german counterpart, shoulder-to- shoulder, as yours a leaders try to figure out how to keep the currency -- as eurozone leaders tried to figure it had to keep the currency afloat. >> i am very encouraged by the developments in europe over the past few weeks. including the reform commitments made by the new governments of italy, spain, and greece, and the new steps and you heard this week about a fiscal compact for the eurozone. >> at the start of a whistle stop tour. it comes as the ratings agency stands at assessing credit risk and surrendered to strip eurozone countries, including germany, of their aaa rating. across the eurozone, there has been irritation from political leaders. the chairman of the eurozone said that the threat to downgrade was a wild exaggeration and unfair. in paris, there were -- there is similar annoyance. we have done much to cut deficits and we will do with the whole tone. >> it does not take into accoun

the american treasury secretary makes another business to the european central bank. protests in russia. the biggest demonstrations in years. online demonstrations say that they have been ruled. it is midday in london. four-o'clock 30 in the afternoon in the afghan capital. the scene of the most devastating attack in seemingly coordinated attacks around the country. this is the first time the bombers have targeted shi'ah moslems on their most holy day. the country's president is taking place -- taking part in an international conference. the job just got a lot more difficult. humphrey has the report. >> hundreds were gathered at the riverside shrine when the suspected suicide bomber struck. security forces cleared the area as news of two other attacks came through. one in the northwest. and in canada are, in the south. -- can the hearth -- kandahar, in the south. this attack is seen as particularly brutal. >> this action is against humanity and islam. >> the casualties were huge. but we tell our enemies and that we do not care about your attacks. we will continue even

traders hidden charges leaving pensioners and savers worse off treasury warned so this is from the united kingdom highly paid city traders are depriving pensioners and savers of thousands of pounds through high management fees that are often hidden according to leaked advice provided by consultants to the treasury the charges are spreading and so steep that savers may find they get less back in retirement they and they invested in savings accounts and pensions over their lifetime the findings raise new questions about the prime minister's decision to veto a new e.u. treaty over his demands for greater protection for the city bankers are tapeworms essentially you live in your pension account the parasites and they're eating it up david cameron of course chief parasite chief tapeworm and residence over there number ten downing street it provides cover for a little taper and bodies but it's the biggest form of all that's why europe kicked them out of a recent summit because they don't want tapeworms at the table well david cameron has insisted that the financial sector is of vital national i

treasury secretary. geithner's presence in europe underlines the intense global pressure on the euro. the french and german leaders have today pledged they will not leave the brussels summit until a powerful deal has been reached. emily reports. >> the latest up for the u.s. treasury secretary, the french finance ministry. the mood is somber as the eurozone crisis threatens economies on both sides of the atlantic. >> [speaking foreign language] >> we have the same concerns. that is to make sure this crisis of financial major ends and to find ways to multiply our efforts so there will be a revival of activity, a support for investment, and the creation of jobs. >> geithner was cautiously optimistic about the latest plans by france and germany to build a stronger europe. >> they are encouraged by the progress they are making, not just to put in place economic reforms across europe -- to create the conditions for stronger growth in the future, but to build a stronger architecture for fiscal union. >> this i

well it's a very small cabal it would be the treasury secretary the head of the federal reserve and the top bankers. the congressman there was serious discussion about breaking up the large banks after all they had caused this crash it wasn't you know consumers getting fat on loans it was the gambling spree that wall street went on of these banks were in serious trouble so the idea of breaking them up in reinstituting glass steagall separating commercial banking from investment banking was on the agenda was being discussed now if those congressmen knew. that these secret loans were being given out then they might have acted more forcefully instead they were told oh no these banks are fine. we need them to compete in the world economy they produce jobs blah blah blah. and you also say that wall street the secret government they serve to protect themselves rather than the public can you elaborate on that a little bit you know this this is an unbelievable story. hank paulson was treasury secretary under bush was about to nationalize danny and freddie take them over because they were inside

the treasury department says j. p. morgan chase and bank of america are doing a poor job of helping people lower mortgage payments as part of the government's own foreclosure prevention program. the treasury department plans to withhold payments from that program to both banks for a third straight quarter. >> tom: with the markets waiting and watching for european leaders to come up with a big solution to their debt troubles, it's likely any fix will not end the volatility. so says tonight's street critique guest, he expects the big swing to continue. michael farback with us, author of the new book, entitled the arrogant cycle. always great to see you, happy holidays. >> thank you, tom, great to see you, happy holidays everyone. >> tom: plenty of anticipation ahead of friday for europe. you just stay on the sidelines until then? >> i don't think you stay on the sidelines, tom, but anticipation seems to be ruling the day. we all seem to be hanging on every ultimate rans from different governments and central banks. not

. >> if you are a bank you can borrow money for free from the fed at 0 and reinvest it in treasury and pay 3%. >> the banks probably profited about $13 billion. >> jon: mother [bleep]! no! oh, oh, oh. professor butterscotch, what i have done? professor butterscotch, and he was just about to get tenure. (laughter) >> jon: an actual professor. so let's reiterate what is going on here. basically the government was lending banks money at no interest, and then borrowing it back from the banks at interest. our government is the world's dumbest loan shark. (laughter) the government was selling dollar bills to the banks for 97 cents. and the banks had the balls to bonus their employees for being smart enough to go, okay. so banks, a perpetual money machine. to be fair, according to further bloomberg research, the interest banks earned during that treasury deal while they were getting free loans from the fed only accounted for about 10 of the 13 billion in bailout related profits. i will tell you what, thank god at least the fed told congress about the size of this scheme, the 7.7 trillion so,

>> appointing to the term -- a point to the treasury oversight committee. supervisor kim: we have a representative from the treasure is office. could you please approach? >> this motion is to point peter goldstein to the city college seat on the treasury oversight committee. this is the seat that is reserved for the chancellor of the community college or his designee as per administrative code 10 baht 80-3. mr. goldstein is the vice chancellor for city college and he apologizes he could not be here today because he is in labor negotiations. supervisor kim: thank you. are there any questions or comments? we will open up for public comment. seeing none, public comment is closed. we have a motion to move forward and a second. we can do that without opposition. thank you. would you please call item no. 2? >> hearing to consider appointing one member term ending november 19, 2012 to the bicycle advisory committee. there is one see. >> -- seat. if you could please come forward. we ask applicants to speak briefly about their interest in serving and maybe some thin