u.s. treasury bonds diversification should be a basic principle when demand for u.s. treasury securities a strong it's a rare opportunity for us to gradually pull back so these are the same sort of you know speaking of alan greenspan he's to send subtle signals to the market insiders about what his next move was of course nobody in the population knew how to read alan greenspan but he was sending them signals of what to do to protect themselves these are the same sort of equivalent in china these economists are telling people what the program will be very soon now shang money and another economist who works with the state told the paper also that china should invest more of its two point five trillion of foreign exchange reserves and hard assets such as gold well they're buying they're selling the dollar on rallies and they're buying gold on tips is to china put any time gold comes in the price moves down john is there bye bye bye so one way and they've got that fantastic because it goes with the previous story about the europeans holding all these debts now the europe

u.s. treasury. and of course the stock exchange with the big flags on it there same buildings that would have been here most famously the morgan bank. and that really was and in some ways still is just the epicenter of american capitalism and government tell me what happened at about twelve zero one away or strong way again exploded into the lunchtime crowd. they killed about forty people in the street and injured hundreds of people it was fairly sophisticated i mean whoever built this thing. knew what they're doing they knew what they were doing and of course the question immediately became who was that person or who were those people and the best theory is that it was a man named mario buda who was an italian an artist who was a lone operator and he was even within this circle of militant anarchists very committed revolutionaries he was the committed of the committed what did he want though i mean it was there anything that give us an idea what these guys wanted there was a lawyer found in a mailb

u.s. treasury. the settlement also requires the bank to review how it sells complex financial instruments. that's because one of the deals in question was crafted with help from a client betting on them to fail. the s.e.c. says this sends a powerful message. >> this settlement is a stark if they vie lit the principals and honest treatment and full disclosure and fair dealing and those principals do not change regardless of how complex the product or how sophisticated the investor. >> susie: for its part, goldman admitted its marketing materials did not have all the proper details. but the firm did not admit legal wrongdoing, instead saying the settlement was the right outcome for the firm, its shareholders and clients. >> tom: the goldman sachs settlement came at the end of the trading day. beginning the day was j.p. morgan. the first of the big banks to report earnings is feeling more comfortable with its outstanding loans. j.p. morgan set aside half as much money in the second quarter for bad loan

u.s. treasury is facing new criticism it didn't consider hundreds of thousands of job losses on the economy when it pushed for gm and chrysler to close hundreds of car dealerships laster yew. the closures were a condition of the $81 billion bailout of gm and chrysler. the move was designed to make the two companies more profitable. but a report to be released tomorrow by the inspector general says the treasury neglected to protect the broader economy when it said they would gradually close had dealerships. the obama administration says the plan has saved 1 million jobs and paved the way for both companies to thrive. >>> tomorrow morning carpool commuters on the the -- on the golden gate bridge will need a fast track account to get the discounted $3 toll. those with cash will be charged the full $6. carpool commuters will still have to drive through an attendant lane so the toll taker can verify the amount of people. those with fast track will still be charged $5. >> it looks like it will be a murky, overcast ride on the bridge. >> that's right. we are seeing clear skies, but a little fuzzy

u.s. treasury secretary timothy geithner said letting the tax cuts expire is the right thing to do but he wants to retain the tax cut for the middle class. the republicans say if the tax cuts for the rich go away, they'll take more jobs with them. >> only in washington, d.c., would anyone believe that raising taxes creates more jobs. they know we can't tax and spend our way back to a growing economy. >> i think it is fair and good policy to allow those tax cuts that only go to 2% to 3% of the highest earners in the country to expire as scheduled. >> reporter: that leaves republicans and fiscally conservative democrats with a tough choice. keep the tax cuts for the rich, that is and risk the anger of the middle class in this election year. >>> the days are ticking down until arizona's controversial new immigration law takes effect on thursday. the legal fight is far from over. on friday there were two sfr separate hearings in phoenix that attracted hundreds of protesters. they claim the law would undermine u.s. foreign policy and that immigration is a federal, not state responsibility. a s

u.s. has the lowest. borrowing costs in the world mostly because of china's large cash surplus which they used to buy treasuries so china is having to pay a huge amount of money for their own debt relative to the u.s. but the u.s. debt would be unsustainable if it were not for china recycling their own savings and america wants to label china as a currency manipulator when in fact the real problem is that america is a ratings manipulator well you could view china as a currency manipulator in that they keep they sustain the u.s. dollar beyond its natural law if that's true. so along the same lines next headline reads gold keeps rising as panicky investors look for security according to the article investors have piled into gold on fears that capitalism is about to crumble into a capitalism is about to crumble because the whole idea of supply and demand has been destroyed you no longer get price signals on the exchange which is indicative of supply and demand the prices are manufactured by high frequency trading and algorithmic trading which distorts the entire system and it's the death neal for capitalism and go

u.s. treasury. a couple of points, b.p. is eligible for the tax break but many people will still resent it. another example, back in 2006, the boeing corporation was settling ethics charges could have taken a $615 million tax break but passed. now lawmakers will probably pressure b.p. to follow boeing's example, katie. >> couric: mark strassmann in grand isle. mark, thanks very much. now to the latest on that small city in southern california where officials paid themselves huge salaries until tax payers found out and revolted. now it turns out that city manager who was forced to resign could make even more in retirement than he was when he was working. here's ben tracy. >> reporter: after years of exorbitant pay-outs, last night was payback. >> shame on you. all of you. >> reporter: furious tax payers angrily confronted the bell city council over their bloated salaries. >> you're disrespectful. you're piece of ( beep ). >> reporter: four of the five city council members were being paid nearly $100,000 for their part-time j

u.s. treasury some time ago that rather than subjecting us to be seized credit market, would rather borrow directly from the united states treasury. they print the money. i broke at a 30-year -- i'd borrow at a 30 year rate. i would save $132 million per year by being able to board likely from the treasury. we torture ourselves by going for the current credit market. there are many things the federal government can do that will not cost the fed's a dime and they will make money. i was down here about a year or so ago and said somebody and treasury that my government is older than yours. [laughter] unlike those who invested in whether it was banks, investment firms, automobile, airlines and a number of others, we actually would go out of business. we are a great credit risk because we will pay our bills and we will pay you back. it is a daily challenge trying to maintain a high credit rating and access to the markets but also making sure we could pay our public employees. they are not running charities either. they like to get paid from time to time as well. it is a bit of a challenge. they

u.s. treasury refuses to set clear goals. >> treasury's continued indications that this is a successful program without identifying these goals and benchmarks is simply not credible, and i fear that the growing public suspicion that this program is an outright failure will continue unless and until treasury adopts this recommendation and comes clean with what its goals and expectations are. >> sreenivasan: the government has provided up to $50 billion for mortgage modification efforts. but barofsky said lenders get too much leeway to decide whether to reduce a homeowner's principal balance. british scientists have found the heaviest star ever spotted in the universe. the star-- labeled "r-136--a-1" was once 300 times the mass of our sun-- and remains 10 million times as bright. the report today placed the star in the tarantula nebula at the center of a cluster of stars. it's roughly 165,000 light years from the milky way. those are some of the day's major stories. now, back to judy. >> woodruff: next tonight: the economic crisis in greece. air traffic controllers began a work slowdown there tod

u.s. treasury is facing new criticism it didn't consider hundreds of thousands of job losses on the economyhen it pushed gm and chrysler to close a number of car dealerships last year. the closures were the bailout of gm and chrysler. but a report being released by the special inspector for the tarp fund says the treasury neglected to protect the broader economy to gradually close the dealerships. obama administration at the it saved million jobs and paved the way for companies to thrive. >> people made the 24th annual aids walk a huge success. >> an estimated 45,000 walkers raised 3 amendment. the money will go to bay area organizations for prevention and testing and service. 6.2 mile walk begin and ended in golden gate park. >> well done. way to go. >> let's take a look at the forecast and that gorgeous picture you saw fog rolling in. >> we're going to see that another live shot nice from mount tam. and we have been looking at the fog day to day but still sunny beach weather still on the cool side but finally marine layer will be making its way inland to begin a slight cooling trend today

u.s. treasury? i don't know. but either way it's government jobs. and i guess we should be careful and not complain too much because i guess uncle sam needs the help. madam speaker, the voice of the american public has been clear. americans want a pro-growth solution that will encourage job creation and investment and would keep americans competitive with the world. said today we find 41,000 more jobs, and will dry up in the free enterprise system, jobs back home. this legislation further diminishes not only these jobs where they add billions of dollars to our national debt. that is the hallmark of this administration and this congress. more taxing, more spending, more taking of jobs from the free enterprise system to government, and perhaps worst of all a debt we may never, ever pay for. when my friends on the other side of the aisle start to promote positive solutions instead of federalizing more sectors of our free enterprise system, they can count on receiving our support. can't do it today. today is a no vote. i reserve the balance of my time.

u.s. treasury to issue money to pay down our federal debt results in the accumulation of more interest on the debt and the need to eventually issue even more money to pay down the debt. host: that all said, how does that affect our lifestyle? caller: well, when the interest on the debt, we aren't getting anything from that. debt can be easily avoided. host: ok. thank you for calling in. want to show you some of the local papers that have some national stories with national implications playing out. this is the boston globe, as you know, that the a judge up there rejected the gay marriage ban. that was in a u.s. district judge in boston. that's the lead story in the boston globe. in the boston tribune, the blagojevich trial, an aid said the govern hid from his duties and also a story about lebron james, i'm not sure what that's about. they had a lead story about a court case that ensurers can continue to tie rates to credit scores. that was a michigan state court. and finally in the times pick kuehne out in new orleans. another court decision, court rejects fwoid restore drill ban. that's

u.s. treasury, i think that is what they are trying to do.uest: the national debt problem is only going to get worse. scheduled to be increased to $200 billion, which is more than the defense budget in 2020. the debt held by the public is 8.8 trillion dollars. we have more problems coming our way on top of this. we have a massive entitlement spending crisis coming our way. if we do not start today cutting spending, we are not going to be able to get out of this crisis. host: we had a clear message a little while ago, asking about the fair tax plan. guest: i think that the fair tax is a consumption based tax, we would get all of your income and you would only pay the tax once you consume your income. so, it is a one-stop tax, which economists like. also, it does not -- there is no distortion between fazing consumption. -the fair tax is one of the taxes that is actually a very good tax. we desperately need tax reform in this country. i would be happy to go for a flat tax, which is the same thing, but when you get your income and it fits, the fa

u.s. treasury bonds, that's not collateralized by mount rushmore but backed by the government.nd our tax dollars. and they have invested in homes around the country and that is corporate debt and consumer debt. so not collateralized by those but part of it. host: good morning, caller. caller: good morning, i would like to know how the recovery will take place when so much money being transported across the border by illegal immigrant. they come in and take a job and lower the economy. and then they take and send most of their money back across the border to mexico. that's millions of dollars and tax dollars that workers in the united states could be putting back into the economy. thank you. guest: i think most economists would not view remnines by immigrants, it's not used by the united states or used to buy goods in the u.s. but the numbers are not math that hold back the recovery. host: this tweet message is sent, how in the world does the u.s. compete with the factories filled with slave labor, like where the ipad is made. guest: there are different conditions, where conscie

u.s. treasury and you take all this money and use it to subsidize the so-called gene, give money to the socialso on you n get everyone of these leftist constituencies on the same side by taxpaye on the other side and they can lift the treasury in order to support all of their friends. spin i wanted to bring him here because i want to show you what is on the other side of the board and i need yoto help jobless together because i think this is stunning. we have van jones. we tied him yesterday, tied them together with the right directly to obama and write directly to the apollo line. bill kerr pinned with the americans for prosperity's joins us. first of all you were the one who broke the van jones story on "fox news". van jones, president obama so-called green job czar quit his post last week in. jones was supposed to help implement job generating climate policy. >> ladies and gentlemen please welcome vice president for american prosperity foundation, phil cirpin. >> at that we should play the clip because he was speaking in one of their great speech or-- featured keynote speakers and i think i

u.s. treasury bonds right now. i cannot see people taking off to put money into the euro, for example. i am not so worried about the crisis scenario in economic terms. i am worried about the gradual scenario. the imf put out a study recently that had the implication that having the debt to gdp ratio go from 40% to 90% as forecast for the united states over the next decade would reduce the growth rate by 0.75% tim. that is an enormous change in the growth rate of the economy. it is hard to move the growth rate by one. with most policies. we're talking about 0.75%. that is 3/4 of one point. that is a remarkable reduction in growth. that will increase the debt to gdp ratio further and so on. in economic terms, i am worried about the gradual scenario. that is worse for the political system. the reason we are in this situation is because every time congress looks at it, they decide to put it off another year. there is never an end date were they have to deal with these things. social security reform in the early 1980's, fund was literally running out of cash. they had to do something in the

u.s. treasury in washington, in a branch office in the federal reserve, a private financial institution or institutions? >> one, i don't know the answer to that question because i'm not privy to the escrow negotiations between the administration and bp. two, i have urged both of the escrow negotiators to deposit at least some of the money in local regional institutions in the gulf that have expressed a real desire to benefit financially from this. >> who makes the decision where -- what depository institution to be s to be used? >> again, that would be between the administration and the fellow i've been consulted with is tom perelli, the social attorney general and at bp -- >> but you have no definitive role in making that decision? >> none. >> you're purely -- make the decision, what the protocol is for claims, the claims process and the decisionmaking protocol for making decisions on the claims and tn being sure that there's adequate follow-up and documentation. is that a fair statement? >> that is correct. i want to make sure that the checks don't bounce, but that is absolutely accurate

u.s. treasury security. when that spread gets large, it is an indicator that there is something seriously malfunctioning in the credit markets pith that variable takes on this page in the 1930's by far. it is highest in the post-world war ii. . -- era. the next highest would be in the 1980's. it was not quite as big, and not quite as bad. i was holding fixed the credit channel, which would to some extent be related to monetary policy, although i am not bring in not all of the channels. there is that the factor that was a bit negative contributor to gdp growth, one we had -0.9% growth. i think it makes sense for the federal reserve to have an aggressive reaction to the financial crisis and the recession. part of that is a customary, monetary policy with sharp cuts and nominal interest rates, and some more direct quantitative things about open market operations and such. the thing that has surprised me about bernanke and the fred -- and the fed, is they are very heavily concentrated on mortgage-backed securiti

u.s. treasury, but the department of health and human services, and the department of agriculture.ovides the resources to try to address the issue of food deficits. that is one issue. because of the difficult economy, we have seen an increase in the participation in supplemental nutritional assistance program. some states do a phenomenal job of making sure that snap beneficiaries are aware of the program and participate fully. in other states, roughly 50% of the people who would qualify participate. obviously, that leaves people having to go without a maleal. young people in those families are not getting in the nourishment they need. this is a health care issue and a national security issue. i really appreciate you putting the spotlight on these issues, because it helps elevate it been the minds of people across the country, -- elevate it into the minds of people across the country, and hopefully, it will get congress to take action. the usda has a challenge of trying to collect 1 million pounds of food to give to local food banks. these banks are staffed by angels, in my view. th

united states will send a senior state and treasury department officials to japan and south korea next week to discuss sanctions on iran and north korea. u.sassistant secretary of state philip crowley told reporters about the upcoming visit on thursday. the state department is sending robert einhorn, its special adviser for non-proliferation and arms control. the treasury department is sending its deputy assistant secretary for terrorist financing and financial crimes, daniel glaser. they'll arrive in seoul on monday and tokyo on tuesday. the u.s. government imposed more sanctions against iran earlier this month. the move followed the u.n. security council's adoption of a resolution to impose further sanctions on iran due to its nuclear development. the u.n. sanctions mainly target foreign firms that have exported oil products to iran. the united states is also working on further sanctions against north korea following the march sinking of a south korean warship allegedly by the north. the sanctions are said to include freezing of assets of north korean entities and individuals in the u.s. the u.s. is expected to call on japan and south ko

u.s. bond funds. the money is not just going into treasury. stop quality corporate bonds are also benefiting from the flight to safety. but credit strategist believes high yield corporates, otherwise known as junk bopdz are a much better option. >> high yield bonds are paying on average, you know, 9-plus percent right now. fundamentals are still improving for a lot of these companies. we're seeing that come flew as we get into earnings season right now. >> reporter: an easy way to get broad exposure to the corporate bond sector is to buy an exchange traded fund. the bond index is currently yielding 9%. the investment grade version is yielding 5%. both are paying out a lot more than ten-year treasurys which yield less than 3%. one of the biggest risks to corporate bonds is the possibility the fed might start raising interest rates. even if that happens, he thinks junk bonds will hold up fairly well. >> from a price standpoint, you will not see much of a move with respect to high yield bonds. obviously with a sizable coupon that they have on the