but, you know, what is -- what is treasury doing?is treasury going after those banks that hold those assets, as well? >> we are. >> okay. well, i would look forward -- maybe we could unpack this a bit more in a slightly different setting. but i think this is a significant, significant issue, and this is one of the few tools that we know has worked in the past. and that we need to continue to implement that. so with that, mr. chairman, i yield back. >> the gentleman yields back. the chair now recognizes the gentleman from west virginia for five minutes. >> thank you. continuing right along on the north korea issue, line of questioning. and i think my first question is about relating to the office of foreign assets control. so direct this first one to mr. smith. on september 26th, ofac announced it was designating eight north korean financial institutions along with 26 representatives of north korea, banks abroad. so how is it that as of september of 2017, there were still any north korean banks that remained unsanctioned and how many

i don't see it in treasuries. why not? mr.nbach: markets, especially investors who are thinking about the fed next year are not able to extrapolate the deficit increase we are expecting next year, which according to the jct, the scoring on this plan was released by the house would add about $170 billion to the deficit in calendar year 2018. that's not going to be that much of a pickup in treasury issuance. you look in 2019, you have a $220 billion increase in the deficit, 2020, another $200 billion plus. but again, what's happening in 2019 and 2020, that's way too far out on the calendar for the market to trade off of right now. jonathan: nick, is that something you believe as well? the idea that, yes, treasuries, there may be more coming to the market. yes, we will add to the deficit. yes, the federal reserve will be pulling back as well, but it's too soon to price that in? mr. gartside: it's fairly too soon, but the reality is there's also a global phenomenon going on here, which is austerity is dead and other countries are

treasury told us this week that it's unlikely to be the case.y now, optimism over tax reform as that built into the marketplace is more of a flattener, not a steepener. jonathan: beautiful by treasury we didn't think there was much demand for longer-term maturities. i could pick out a whole list of options we've had this year that signal terrific demand for duration. where do think we are getting at with that? mr. gartside: when you look in the european context, we have european countries that a hundred years ago didn't exist now issuing 100 year bonds. in europe and the u.k., there's this appetite for longer dated bonds. and in this sense, the longer the better. jonathan: priya, was it about demand that people did want to buy it, or was it something else? ms. misra: i think it is demand. you don't have pension regulations like they do in europe or canada. there's no need for a pension fund here to be extending out duration. if they were to start issuing, and for treasury, it's not going to be a one-off, it's every quarter we would have to deal

michael: we are talking with secretary treasury -- treasury secretary steven mnuchin.gears a little bit from taxes and talk about trade. the dollar has been strengthening recently. a stronger dollar tends to raise the trade deficit, so does a strong dollar policy work against the trump trade agenda? sec. mnuchin: as a general matter, i do not comment. michael: you are the only one who is allowed to. sec. mnuchin: i do not comment where the dollar is in the short-term. part of the dollar strength is a function of the u.s. economy, how people perceive the u.s. economy, which is very strong. u.s. interest rates relative to the rest of the world, so the dollar has appreciated overtime. having said that, there are short-term concerns about trade. the main focus is that we get free and fair and reciprocal trade, and a big part of his conversation in china and other parts of the trip will be making sure that we have fair, reciprocal, two-way trade, and deal with the trade deficits. michael: federal reserve, you have three governorships to fill. then you tell me about the proc

treasury market next year.y guess is it will be much more difficult for the curve to flip -- continue to flatten in the next year. >> if i don't get some pickup in inflation and the fed stays, two years it will go higher in the curve will go flat. jonathan: joining me in new york is vishwanath tirupattur, lisa hornby, u.s. fixed income portfolio manager and coming to us from london is iain stealey. we want to go straight to a chart of two's, tens and the curve rolling over and getting flatter. what you see is how supportive the federal reserve has been at the front end. and how the two-year has inched higher and higher. i see how the 10-year has stayed in there as the gap has narrowed. is there a signal in a -- that price action? vishwanath: i think there is something in the price action here. in fact, we expect this flattening trend will continue to be there and extend beyond the 10-year point in the curve is what we think. there is a clear expectation about inflation. the market is telling us that the market

he has decided to break the tradition of former treasury secretaries not criticizing the current treasury trying to do everything he can to stop congress from passing the worst tax legislation he has ever seen. larry summers joins us next. patrick woke up with a sore back. but he's got work to do. so he took aleve this morning. if he'd taken tylenol, he'd be stopping for more pills right now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill. tylenol can't do that. aleve. all day strong. all day long. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one e

the current treasury secretary.il now. harvard economics professor lawrence summers was bill clinton's treasury secretary after first being confirmed as a clinton under secretary of the treasury in the interest, i should note i was the chief of staff of the senate finance committee when the first vote was taken on professor summer's first senate confirmation. between the checkpoint administration and obama administration, lawrence summers served five years as president of the harvard university. then he served as the director of the national economic council for president obama t. lies that the trump administration has put out about its tax bill are as offensive to larry summers as any lies that donald trump has ever told. because for larry summers, economics is a deeply personal pursuit and for all good economists, it's a pursuit of the fruit. for larry summers, economics is in his blood. he was born into the profession. his brother robert was an economist. his mother anita is an economist and a professor at the un

is there a message in the treasury market?he yield curve is in the -- near the flattest level in a decade. we begin with the big issue, junk-bond pain. >> high-yield securities a difficult market at the moment anyway. >> is this a couple of isolated cases or the start of something broader? right now, it still seems more isolated. >> clearly the tax package will create winners and losers. >> tax reform has to happen. if it doesn't happen, it gets ugly. stock markets get ugly. everything gets ugly very fast. >> it is no longer a green light for credit markets. it is more yellow. clearly, there are still some companies with decent fundamentals, but there is a lot of sectors or more sectors under pressure. >> you're not getting paid an awful lot for full risk. as an investor you have to be careful. buying quality. these days when the markets rollover it feels volatility needs to rise. maybe that is what we are seeing. >> my concern is what if the market starts to price real andmism around a tax deal the 10-year goes to 2.60? that

treasury told us this week that the likely to be the case.mism over tax reform as that built into the marketplace is more of a flat in her, not a stephen -- steepener. jonathan: beautiful by treasury we didn't think there was much demand for longer-term maturities. i could pick out a whole list of options we've had this year that signal terrific demand for duration. where do think we are getting at with that? mr. gartside: when you look in the european context, we have european countries that a hundred years ago didn't exist now issuing 100 your bonds. -- 100 year bonds. in europe and the u.k., there's this appetite for longer dated bonds. and in this sense, the longer the better. jonathan: was it about demand that people did want to buy it, or was it something else? ms. misra: i think it is demand. you don't have pension regulations like they do in europe or canada. there's no need for a pension fund it to be extending out duration. if they were to start issuing, and for treasury, it's not going to be a one-off, it's every quarter we would h

from the longer end of the treasury curve.u put all of this in context, yes, the curve is a plaque. at some point, it will become a concern for the fed if it does get to be too flat. one, it will really hurt bank profitability. two, as an investor if you look at the curve, you are not getting adequately compensated for taking risks. jonathan: we have this classic flattening. i wonder whether it is the message for the fed to slow down. does that have to be their takeaway? henry: i don't think so. in my guess the curve will probably end up shifting higher. that will be a source of volatility. one of the most underappreciated risks in the market today is inflation. not ready to give up the supply and demand of labor will push prices higher. we expect things to happen sooner than they actually do. i think we probably see the move higher. your point about the curve, whether it is funds, two's, ten's, it does not move as if they think the fed is crediting rates. but they are. the main signal, watch out. there is too much risk. there

treasury sold $23 billion of 10 year notes at 2.314%.and and the yield at the lowest levels since september. still with me is henry peabody, subadra rajappa and ashok bhatia . let's bring up the chart of the week. for many it is the chart of the year. many people thought it would get steeper. a lot flatter, the yield curve. take your place in looks something like this. a bounce over the last couple of days, but the trend is pretty clear. what is the signal, the message that comes out of that chart? subadra: you have to look at the yield curve and context of the current market environment. you have technical factors like the treasuries refunding announcement last week. they will be focusing more on issuance. that puts pressure on the backend of the curve. a rallying on the backend. you also have some longer-term secular trends that are keeping bond yields at the long end of the curve in check. demographics is an important thing for considering. you also have the savings g lut, entremed is the man from overseas accounts. -- and tremendous

treasury told us this week that it's unlikely to be the case.y now, optimism over tax reform as that built into the marketplace is more of a flattener, not a steepener. jonathan: beautiful by treasury we didn't think there was much demand for longer-term maturities. i could pick out a whole list of options we've had this year that signal terrific demand for duration. where do think we are getting at with that? mr. gartside: when you look in the european context, we have european countries that a hundred years ago didn't exist now issuing 100 year bonds. in europe and the u.k., there's this appetite for longer dated bonds. and in this sense, the longer the better. jonathan: priya, was it about demand that people did want to buy it, or was it something else? ms. misra: i think it is demand. you don't have pension regulations like they do in europe or canada. there's no need for a pension fund here to be extending out duration. if they were to start issuing, and for treasury, it's not going to be a one-off, it's every quarter we would have to deal

the treasury curve is even flatter.he difference between short and long-term yields is the narrowest in a decade. a week for credit. a long correction, at least for now. we begin with the big issue, a signal in the treasury market. >> the fed operating on the short end of the curve, global markets operating on the long end of the curve. i don't think it is that problematic, but it is telling if there different players in different parts of the yield curve. >> it is not just the shape of the u.s. curve. it is the differentials in other curves as well. that's a testament to the influence of other central banks. >> the rest of the world is still printing money. ecb, bank of japan. they promises they will do that until september of next year. it is hurting duration and credit risks. they ultimately end up in the u.s., and that is a very important driver. >> one of the weirdest things as we are doing it against the backdrop of the fed and potential tax cuts next year. you got hundreds of billions of extra supply coming into

they're still in, nicholas brady with secretary treasury, and prop how into treasury. this is the first time that we have a fed chairman with true .reasury experience is that going to mean a different dialogue on the dollar from our newly minted fed chairman? >> federal think so, tom. a think he's been clear that the dollar policy is decided by the treasury department. the trump administration, it's not recognized. dollar isar that the regarding this factor, some the federal reserve can't control. muchess analysis, very like how draghi describes the euro for the ecb. >> within this policy, i know he watches surveillance every morning -- do we have a strong policy right now -- stronger dollar policy right now? >> it's not exactly the price of the dollar, lateral measures like euro are the dollar, but a strong dollar policy means that the u.s. will not use the dollar to try to -- as a weapon to try to get foreign companies -- countries to open up trade policy like they had previously. dollars, the u.s. uses to lighten up the debt burden. sorry. >> i think this is importa

and i'm afraid i haven't seen that from the treasury department. >> you would like the treasury secretary to bring forth those publications if they exist? >> i would like to see what the judgment of the career professionals who are in the business of doing scoring at the treasury department is. and i would like to see claims of the existence of publications to be explained in terms of language that's clear, wasn't that there was going to be a publication, it was that there already was a publication, and perhaps i'm misunderstanding something. and that's something that could be laid out. >> lirt talk about what we can realistically expect. what do you think growth will average in the next seven years even with the tax cut? >> i think probably 2%. >> okay. >> i think the estimates -- >> so -- >> it's pretty substantially overoptimistic. let me tell you why i think that. >> what i want to do is compare your answer to what we have from the polls. >> the people are saying 2.5%, so you're only at 11%. so you're in the minority, obviously, there. >> that's okay. >> let me point out, larry, in ja

put put the treasury in control once again write the treasury would issue money but if you leave money creation to the banks and dodginess money and steve kean who you often have said the banks lend money only then when money to spend on goods and services they spend money for corporate takeovers to inflate real estate prices so government money creation is different purpose for from private bank money is going to leave it there dr michael hudson thank you. alan us an idea for this edition of the kaiser report with me max kaiser stacy i would like to thank our guest dr michael hudson if you want to reach us on twitter it's kaiser report and flex time . i don't. see people. suffering always in the detention center the libya is one that did thirty percent of the responsibilities of coming from one country to seventy one of the seventy percent is coming from an area i think that we have to see that we have to discuss how to improve our capacity to alleviate that this operates on the human being to. wiki leaks says that the cia wrote code to impersonate russia's kaspersky lab antivirus pro

dollar bills, featuring the treasury chief signature, lee, an overreaction?lee: it's hard not to react when you see something like this in some ways it's a self- inflicted wound with all of her twitter and everything she's done before a lot of people saying look at her grabbing the money but it's a distraction. let's stop talking about this she shouldn't have even been thereafter having the whole twitter storm we had around her hash tag why would anyone allow her into that photo op right now >> dagen: chuck? as my daddy might say, do you in have somewhere to be? >> chuck: no kidding. i can hear my dad talking to me now so that's the reason i give donald trump credit because he tapped into something stay with me here, about a frustration with people who want to drain the swamp and this picture represents everything that's there. and i don't mean none of them are bad but you've got this super wealthy guy working in the government now and guess what he has a beautiful, smart woman with him whose his wife at the treasury handling our money like its got every repr

the treasury at a two-year. look at this aggressive widening we have seen throughout the year so far. we are north of 240 basis points on a two-year spread. i have been asking if there is oxygen left? can the fed continue governor loans? lisa: normally when you have the u.s. tightening, or one central doestightening and another not, you have people go into the dollar or the currency of the banks that are tightening. if that is not happening, you are not have the stronger dollar as the headwind. the fed can keep hiking, it will not necessarily d balance the economy, even if eurozone keeps up with its policies. jonathan: i do want to turn to allen higgins. it is always great to catch up with you. it has been far too long for you and i. we have been talking about the front end of the yield curve. first is to year and the u.s. treasury to year. it is north of 240 basis points. my question is whether the federal reserve can continue and whether it will continue to get wider? >> nice to talk to you. we think it will c

treasuries heading higher, yielded lower on treasuries.e appetite for stocks bonds this morning, adding to the complexity of what we are seeing this friday morning. that is the picture across these markets. let's get the first word news with ed ludlow. >> u.s. special counter robert mueller says donald trump's ex -- campaign subpoena. the subpoena was served in the middle of last month and with more than a dozen campaign officials. that revolution came the same day top republican and democrats on the judiciary committee pressed jared kushner to provide additional documents for its investigation. india's sovereign rating has been raised for the first time since 2004 by moody's investors service. the repeat bond and stocks india from thed aa three. will helping pushed stabilize rising levels of debt. that is a one-level shift from the lowest investment grade rating and puts india in line with the philippines and italy. saudi arabia's energy minister has said opec and its allies should announce an extension of the output curves when they gath

treasury two-year. and it's aggressive winding, north of 240 basis points.question is whether the federal reserve can continue going alone from here and if that's right can continue to get wider? alan: nice to talk to you. we think it will continue to go wider. for fixed income investors, they do not want to take a currency risk. they can't catch all that spread. if you hedge it out with fx forwards, you will pay circa 150, 160, so you don't capture all that spread anyway. from a fixed income perspective, it is less wide than it may seem. the fed is hiking and the ecb is on hold doing nothing until the third quarter. jonathan: if you think about it in 2017, everything has kind of gone right you would hope to go right in europe. the equity market has not done much but the earnings have come through solid. the data is looking really good. the ecb has remained on hold. the economy overall has picked up. confidence numbers are great but deals have gone nowhere. it is the same in the united states. why are we here with bunds at 40 basis points and treasuries arou

the treasury secretary said this last night. when we lock herself in multilateral deals, which diminishes >> because it minimizes u.s. leverage. we are not prepared to threaten they are going to close their mark. threatening to pull out of the treaty. not saying you're planning to to make a free trade agreement. but the traditional argument has been if you want want to open the korean market, much better for the united state and japan and japan make some concessions to get the koreans to open their market, then we have to make your concessions the usual view, to think about common sense is three economists, if i want to persuade "the wall street journal" to do something, am i better off trying to do a as part of a group of economists trying to get "the wall street journal" to do something or i better off doing it as myself? the usual idea has been when you have a larger group come you cannot more powerful agreements. if you are allowed to in your farming and industry, you would rather form with all terms in your industry then wi

treasury two-year. north of 240 basis points.question is whether the federal reserve can continue going alone from here and if that's right can continue to get wider? alan: nice to talk to you. we can continue to go wider. for fixed-income investors who don't undertake risk they can't catch all that spread. fxyou hedge it out with forwards, you will pay circa 160. you don't capture all that spread anyway. for a fixed income, it is less wide than it may seem. the ecb is on hold doing nothing until the third quarter. jonathan: if you think about it in 2017, everything has kind of gone right you would hope to go right in europe. exp market has not done much for the early -- the data is looking really good. the ecb has remained on hold. the economy has picked up. confidence numbers are great but deals have gone nowhere. undsare we here with b at 40 basis points with the data where it is right now? alan: you are quite right. if you came down from mars and look at this european data in particular, you might think maybe short rates at 3

these are handled by different part of the treasury.ll be speaking at the event this morning today and is involved in those people michael: yo. michael: you and i talked economics for years. so focusedpresident on bilateral trade deficits when any economist will say that's not a measure of a country's economic health? david: the president is a very focused on jobs for americans and wages for americans. shorthand for that is to look at the trading relationships that are not working for the u.s. that applies to the nafta relationship, the china relationship, where overtime these relationships deteriorated. it ask i would best put the president being focused on getting a fair deal for american workers within a trading system that needs to be reciprocal, where the u.s. may be for years had allowed its markets to be more open or more inviting than others. that worked, but it also created a a lot of problems for us, and that's what we are trying to fix with this. china being a case in point and he will soon be there talking about these issues

we begin with a big issue, the relentless flattening of the treasury curve. >> to me, what is reallyubling is how fast the curve has flattened over the last two to three weeks. >> the yield curve almost always flattens when the fed is putting rates up. last time i checked they are still doing so. i think what has caused people to stop and take note is the speed and the vehemence with which it has flattened recently. >> you still have lots of central bank liquidity around the world, even if the u.s. is pulling back. the bank of japan expanding their program. ecb is very involved. you are not seeing global central bank purchasing winding down. >> you can easily say that between 50 and 0 is the flashing sign. things are starting to get a lot more challenging. above 50, you can always kind of explain it away. >> if equities are doing well, credit spreads are doing well, the economy in general in the u.s. and globally is doing well, i think there will be some willingness to look past the flatness of the curve. jonathan: joining me in new york city to discuss is bloomberg news and bloomber

we turn now to one of the president's men working on that bill, treasury secretary steven mu in which, welcome, mr. secretary. before we get on to taxes i want to ask you question about rush a. you are in charge of carrying out the sanctions against russia through the treasury department for meddling in last year's election, you sat in security meetings. how sit possible then for the president to say that he believes that president putin is sincere when he says he didn't meddle in the last election? >> first let me say that we are absolutely carrying out the sanctions, that's something we're very focused on. the president has said that he believes in the intelligence, also said that he believes that putin believes what he said. but it's really time to move on off this issue, i think the president was focused on very important issues such as north korea and syria where we have to get along with and have common goals with russia. that's what's really important right now. >> dickerson: there's no ambiguity about this issue from your standpoint in terms of rush interfering with the electi

we've literally run hundreds, if not thousands of examples within treasury. and for most people -- and again, may not be 100%, but by far the majority, both the house and senate version provide middle income tax relief ask. that's what we want to do. and over $1,000 of tax relief, which is quite significant. and we actually ran the numbers for you. even a family of $300,000, which is a lot of money in new york, they're also getting a several thousand dollar tax cut. so i think both plans accomplish what we're looking to do. >> but certainly there are middle class voters who voted for president trump who are going to get a tax increase in this plan, if it becomes law. and that's not what they were told by candidate trump that would happen. >> well, it's not what he wants. and as we go through both plans, the house, i expect, will pass their bill this week. the senate will move on it after thanksgiving. we'll end up in conference, and we'll fine-tune this. so, again, the problem is the tax code is so complicated that literally everybody may take advantage of a

chair of the treasury select committee. welcome to bloomberg.presented to the government, you are gifted those. at no point in the next four years does the u.k. economy expected to grow past 2%, does that not suggest that maybe the government should be doing more to stimulate? >> that is probably what the budgetary was about, a reason why our economy is not growing as quickly as we would like is because of a lack of productivity. the chancellor talked about investing in infrastructure and skills, and also housing. there is also brexit. we will be leaving the market where many of our businesses are used to exporting without trade barriers and other things. they will be adjustment. we do not know what that will do in terms of forecast and growth for the next years. with the weakness and growth, is it about the obr saying they will seek negative impact for brexit, uncertainty? >> they have not changed what they are saying. transition.e a we do not know what will happen. there is a bigger issue about productivity which is something not new, somethin

the decision the day before thanksgiving by the treasury department gave great hope to these homeowners that actually the system can work. and again that'probably the mospowerful emotion that people tooaway from the decision that took place on wednesday. we're going to continue to move forward to help people, middle class, hdworking people who paid their bills and invested again ts their life's biggest asset, their home, to make sure they are protected and get help. with that i yield back, mr. speaker. the speaker pro tempore: the chair recognizes the gentleman from utah, mr. curtis, for five minutes. mr. curtis: tnk you, mr. speaker. most of usnow how important water is in our states and the impact itlays in growth. it's directly tied to economic developmentand the health and beauty the places we live. today in accornce with commitments i have made to build iproved quality of life in the rural areas of my district, i'm introducing bipartisan legislation that will re-authorize the bureau of reclamation to provide cost aring for the endangered fish recovery progra in the upper colorado a

treasury.china remains the biggest foreign holder of treasury. the aussie dollar jumped but after the october unemployment rate unexpectedly fell, fewer people suck work with full-time jobs continuing to search. fewer people soft work -- saught work. australia's labor market has been a bright spot. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. going live to the hong kong stock exchange. we will talk to yixin. the next look at where the hidden risks are for investors. ♪ ♪ lending to invest up to $25 billion in saudi arabia. it deepens ties -- softbank may put $15 billion into a new high-tech city that the saudi cream -- crown prince wants to build on the red sea. santos is soaring today amid reports it has been approached to support a tech overbid. the stock is up over 11%. that is the most in almost one year. a former shell executive is leaving a consortium preparing an all-cash bid of 11 billion au

you've been at the treasury department. you were there to help design the bailout during the mexican peso crisis. you know what happens in an in crisisen it is mode. and i ask that because we are in relatively peaceful times. right? you know, this is not an economy that is in a recession or needs any kind of -- the mandate really is to keep everything study and call. so if we were to hit a speed bump, a crisis point, would you want someone like jerome powell at the fed? if we were to hit a crisis point, i think i would prefer someone like ben bernanke who 2007-2009 but the great depression in his bones because that is what ben bernanke cut his teeth on as an academic and we were well served when 2007 came around that we did have ben bernanke because he felt the great depression in his bones and was ready for what was coming. that was important back then. it was important to have sold with a look back at distant economic history then because the last huge major crisis we had have been a long time ago. unfortunately, the last

go.commend that viewers what they are talking about is the treasury secretary.nson is like can you recommend a treasury secretary and weinberg bring some but he up and that guy ended up going to goldman sachs. this phenomenon isn't new. it is just the volume that is so extraordinary. >> wire we surprised? given the previous connection to the industry, the role they have, the fact they have such an intricate knowledge of washington, not all the same for jacob lew, to then go back and advising these guys or operationally involved? if you look at them they are different in terms of whether ory are an advertising role taking some element of involvement in the dealmaking in terms of the operation of the business >> you say it's surprising the four treasury secretaries on the private equity firms. one way to think about that as you listen to cindy weinberg , oneng with lyndon johnson difference is now the financial services sector, investors and investment banking, was a relatively small part of the global economy, and one change we have seen over the decades since th

with treasury bonds having 235, 240,to around and you believe inflation will remain moderate, then treasuries high-yield is between 5%-7%. we are holding high yield, so the risk you are taking -- given treasuries. alix: are you provided in the field to take on the risk. we have a question asking about south africa and whether it offers value or not it if you have a strong be about investing there? jeff: i do not think we have had a strong view of south africa per se. the way we have played emerging markets is through diversified portfolios, we have leaned more toward asia. again, the view on emerging is much more linked to the view about synchronized growth, and quite frankly the view on the dollar in rates in the u.s. if you are looking at inflation being relatively moderate in rates are going to go up gradually, that is supportive of a much more benign environment for the dollar, which is better for the emerging markets in general. alix: in asia, did you buy the nikkei on the crazy weird dip on thursday? jeff: we did not. that is probably even before the election we have been holding overwe

we continue with treasury secretary steven mnuchin. a point of contention is the so-called carried interest deduction it allows some in the financial service industry to be taxed at much lower rates on their income. the senate plan seems to keep that loophole. a lot of people the last several years looked at carried interest and said this is not fair. where a hedge fund manager or real estate person can look at their revenue and treat -- and treat ordinary income as if it were capital gains. will there be changes on carried interest? >> i'm sure there is nobody in this room that cares about this topic. this is a highly interesting issue to a small part of the population. the president said on the campaign that he wanted to change the rules for hedge funds and carried interest. the house proposed going to a three-year holding program. when you look at carried interest, 2/3 of this is in real estate. only a third is in private equity, venture capital. a lot of this is small developments. but it's a big step in the right direction. bar we

put put the treasury in control once again write the treasury would issue money but if you leave money creation to the banks and dodginess money and steve kean who you often have said the banks lend money only then when money to spend on goods and services they spend money for corporate takeovers to inflate real estate prices so government money create. different purpose for from private bank money can live there dr michael and thank you. allison if this initial the kaiser at par with me max kaiser stacy i would like to thank our guest dr michael hudson if you want to reach us on twitter as kaiser apart and like signed by all. apply to many clubs over the years so i know the gang and so i got. the ball isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the super money billionaire owners and spending to get to twenty million. it's an experience like nothing else not to because i want to share what i think of what i know about the beautiful game a great chance for. i don't think the people are. suffering always in the dete

we'll be right back with treasury secretary steven treasury secretary steven mnuchin. g ♪ that independences the way to accomplish. ♪ but there is another way to live. ♪ a way that sees the only path to fulfillment- is through others. ♪ that our time here can be deep beyond measure. ♪ no one who chose interdependence ever found despair. ♪ because what the world taught as weakness, is in fact our greatest virtue. ♪ >> dickerson: republicans are racing to get tax reform passed on capitol hill. president has said he wants a bill by christmas. we turn now to one of the president's men working on that bill, treasury secretary steven mu in which, welcome, mr. secretary. before we get on to taxes i want to ask you question about rush a. you are in charge of carrying out the sanctions against russia through the treasury department for meddling in last year's election, you sat in security meetings. how sit possible then for the president to say that he believes that president putin is sincere when he says he didn't meddle in the last election? >> first let me say that we are absolutely carrying out