time, what i would like to do is sort-of describe some of the big challenges that you the united states economy faces right now and then kind-of lay out wells fargo baseline forecast for where he where where we see thing headed for the overall united states economy and at the end of high presentation i brought as me some terrific slides on the local regional market specific to real estate but only a great fool would use those after the presentation by dan that we just witnessed and so i'll probably concentrate more on the united states stuff and not impasse pipe hive and so we begin here with this graph the federal budget surplot plus or deficit. obviously it's been some time since we have run anything like a significant budget surplus we went into the recession carrying a farrell substantial deficit and obviously that really ballooned and got much much worse and what we are facing now are really the biggest bulletin deficits that the united states economy has faced since the second world war we are moving in the right direction it's getling smogger and it's still a farrell daunting challenge a

at least in the case of the united states you're seeing the private sector in the act you seeing a gradual improvement of the economy a much more worried about the european situation where you have been go ahead go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have the balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states' economy is definitely on an improving its housing sector is coming bag name a little i would. put. the housing going through my comfort the more confidence is not a measure of economic activity. we've. got a sense president hamid karzai has ordered the u.s. special forces out of a crucial province the americans were linked to the torture and murder of local villagers in an area seen as vital for defending the capital kabul the move comes as nato prepares to hunt responsibility for security to local forces by twenty fourteen and politics professor patricia does naras as afghanistan will struggl

at least in the case of the united states you're seeing the private sector in the act you're seeing a good tool improvement of the economy a much more worried about the european situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do. go ahead well do you know just united states economy is definitely on an improving bad housing sector is coming back and name a name or i would. put the housing sector because you'll notice that housing is going through my confit consumer confidence is not a measure of economic activity look a lot a lot a lot of the problem with i now or has been since the financial crisis is the absence of confidence and overly leverage households and corporations not corporations so much households and banks these situations are slowly getting better the united states has the flexibility you're listen i you know i was goin

at least in the case of the united states you're seeing the private sector the act you're seeing a good tool improvement of the economy a much more worried about the european situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do. go ahead well do you know just united states economy he's definitely on an improving bad housing sector is coming back and name a name oh i would. put the housing secretary on the housing crunch through my confit consumer confidence is not a measure of economic activity look a lot a lot a lot of the problem with i now or has been since the financial crisis is the absence of confidence and overly leverage households and corporations not corporations so much households and banks these situations are slowly getting better the united states has the flexibility you're listen i you know i always i have to tell you

at least in the case of the united states you're seeing the private sector the act you're seeing a good tool improvement of the economy a much more worried about the european situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do. go ahead well do you noticed united states economy is definitely on an improving bad housing sector is coming bag name and what would. put the housing sector because you'll notice that housing is going through my confit consumer confidence is not a measure of economic activity look a lot a lot a lot of the problem with that now or has been since the financial crisis is the absence of confidence and overly leverage households and corporations not corporations so much households and banks. these situations are slowly getting better the united states has the flexibility you're listen i you know i was going to h

to revive its economy has certainly been put in the spotlight in today's edition of cross talk that's coming up a little bit later today. at least indication of the united states you're seeing the private sector and the seeing a gradual improvement of the economy a much more while the above deal of p.n. situation there have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy is definitely on an improving bad. housing sector coming bag named name oh i would. put. that housing is going through my confit consumer confidence is not a measure of economic activity. i do stay with us for cross talk a bit later here on arts he for now though the afghan president hamid karzai has ordered u.s. special forces to leave the key battleground province of water back troops there were accused of torture and of the murdering of civilians and just as kabul is preparing to regain control of s

to revive its economy a back in the spotlight for today's cross talk that's coming up next hour. least indication of the united states you're seeing the private sector seeing a gradual improvement of the economy a much more while the above do you a p.-n. situation where you have been head go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy he's definitely on an improving bad. housing sector coming bag. put. the housing is going through my confit consumer confidence is not a measure of economic activity. ok let's get into it here on out so you starting with south korea into the artsy world up there we are the new elected for female president when it's called for the country's northern neighbor to drop its nuclear program she believes the move would lead to shared development between the states the communist north carried out his third nuclear test

at least in the case of the united states you're seeing the private sector the accuracy and i gradually improvement of the economy a much more while he had a bad deal of p.n. situation where you have been go ahead and go ahead we're where do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy he's definitely on an improving bad housing sector he's coming bag named name oh i would. put. because you know most of the housing is going through my cough it consumer confidence is not a measure of economic activity. we've seen. as a. hero today when will stay with us next fall later special report in just a few minutes.

at least in the case of the united states you're seeing the private sector the. improvement of the economy a much more while we had a bloody european situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see then and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy is definitely on an improving bad housing sector coming bag. put the housing. the housing clinch confit consumer confidence is not a measure of economic activity. we think. it's good to have you with us here on our team today german chancellor angela merkel has caused a bit of a stir in turkey by calling for talks on ankara's a session to the e.u. to be restarted she's currently on a trip there starting with a visit to german troops on the border with syria but support for turkey's aspirations to join the e.u. not being echoed at home concerned about angkor is human rights record

at least in the case of the united states you're seeing the private sector seeing a julia improvement of the economy much more worried about the european situation there have been go ahead go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere with. the balance sheets of every country and the printing of money is just really it's doing the complete opposite of what you wanted to do the united states economy is definitely on an improving. housing sector coming. forward. put. cause you'll notice that housing is going. to do more confidence is not a measure of economic activity. is a. german chancellor angela merkel has caused a stir in turkey by calling for talks on anchor as ascension to the e.u. to be restarted as she's currently on a trip best starting with a visit to german troops on the border with syria but her support for tech is a separation to join the own being echoed at home concerned about ankara's human rights record especially strong with more journalists reportedly jailed in take it than ira

at least in the case of the united states you're seeing the private sector in the act you're seeing a gradual improvement of the economy a much more while the about the european situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy he's definitely on an improving bad housing sector is coming bag name on a boy would. put thousands of consumers that housing is going through my confit consumer confidence is not a measure of economic activity. we've seen. as a. hero today itself next to this bull someday with kate. there's an old urban legend that says that the u.s. army stopped using circular targets for rifle practice because the soldiers would be hesitant to shoot people on the battlefield the logic is that if you practice shooting something that looks like an enemy soldier you'll be desensitized about killing

unless the united states economy begins to grow, now growing at about 60% of our historic rate, less than 2% as opposed to 3%, we have unpredictablility. chances of growth are going to go down even further if kundera -- government spending is cut through sequestration. all these things add up. the politics of the united ownes -- we have our domestic politicians who are increasingly getting in the way of an economic recovery. >> to the practical impact that these automatic edge cuts might -- is it a practical impact that these automatic budget cuts might have, or is it more the perception that countries might have of america's govern ability or perhaps lack of government governa -- america's bility or perhaps lack of governability? >> pentagon is talking about having less aircraft carrier presence. the foreign-policy establishment could see some of its dollars cut. foreign aid is never the favorite thing of the congress. some of those accounts could be pressured. a lot of these cuts ordered by sequestration are essentially dumb. they are acrsooss the board. certain things are exempt.

to revive its economy are being put in the spotlight today with cross talk that's coming up well in about ten minutes from now. in the case of the united state you're seeing the private sector seeing a gradual improvement of the economy a much needed but do you opinion situation where you have been head and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere while you have to balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy is definitely on an improving bad. housing sector coming bag. put the housing sector of. the housing clinch confit consumer confidence is not a measure of economic activity. we see. now a world of daytime here in arts he's starting with the story of at least ten people were injured after a clash between israeli soldiers and palestinian demonstrators it's claimed shots were fired and happened during protests against the death of a palestinian man who died in israeli custody under disputed so. there are allegations that

from the united states as a dominant force to maybe some other country being the dominant military presence? >> there is no secret in the world certainly, governor that the united states economys in a weakened cycle. but the fact that the united states military is going to be weakened as a result much our policies is quite extraordinary . that will as it has in the past. testimony encourage our adversears and embold end them to take much more riskings with their adventurist movement and things to achieve gerks o politically in the world. you can sigh it playing out before our eyes with the rise of al qaeda and affiliated. twice the size in iraq after we left our troops there a year and half ago . now the most aggressive and successful affiliated group in syria . the beng bing attack and lack of response to the bengazi attack brought on the mali attack . this is going to continue even further if the united states is not capable of responding. >> we nide to be concerned about the poof a nuclear device some say in a year. is there any reason they would be afraid of the united states intervening to stop them as we scale back our military? >> let me just be clear. the iranians hav

printing of money is destroying it is doing the complete opposite of what you wanted to do the united states' economy he's definitely on an improving bad housing sector is coming back and name nato i would. put. you in one of the housing going through my cough it consumer confidence is not a measure of economic activity. we. have got a stance president hamid karzai has ordered the u.s. special forces out of a crucial province the americans were linked to the torture and murder of local villagers in areas seen as liable for defending the capital kabul the move comes as nato prepares to one hundred sponsibility for security to local forces by twenty fourteen and politics professor patricia additional rose says afghanistan will struggle on its. the wardak province is you know the family is strong the place isn't volatile and i think they're kind of tired as well as most afghans having u.s. forces going in and out of people's houses that are and comment karzai president karzai needs to take care has and the seeds definitely president karzai is trying to make a statement and our fact they haven't come to

it all hinges on fantastically complex intrusion into a healthcare which is 18% of the united states economyhe president said all during his arguments about obamacare, that if you like your doctor, you can keep him. if you like your health care coverage you can keep it he was technically right. the fact is if you are not being offered it because your company has north korean offering it and opting to pay a fine because it would be cheaper, that in fact you don't have the kios of having your own health plan or your doctor. you said it was unintended effect, unintended perhaps but utterly predictable. i'm not sure that the president really regrets this. i think his ultimate objective what he always wanted, nationalize health care like you have a britain or canada but you can't get there in one step. this is system so complex ultimately i think the only escape, the only way it can end up is going to be to nationalize the system. >> chris: if that weren't complicated enough, governors are trying to decide whether to sign up for the government offer because of the supreme court says they continue

at least indication of the united states you seeing the private sector the you seeing a good julie improvement of the economy a much won't do you a p.-n. situation where you have been go ahead and go ahead we're do you see an improvement in the united states what do you see that and also do you think a monetary policy is going to get you anywhere with. the balance sheets of every country and the printing of money is destroying it is doing the complete opposite of what you wanted to do the united states economy he's definitely on an improving bad housing sector is coming back named unable i would. put. you on it because you'll notice that housing is going through my comfort consumer confidence is not a measure of economic activity. we believe we see. is the. time now for world updates. at least ten people have reportedly been injured amid clashes between israeli soldiers and palestinian demonstrators it's claimed shots were fired during protests against the death of a palestinian man who perished in israeli custody under disputed circumstances there are allegations that thirty year old arafat's was killed by

counterfeiting is an enormous problem for the united states. our economyhrives on innovation, doing things first differently, better and if you have organized criminals in asia and other parts of the world's they will undermine everything you do right away. it hurts the economy. remember these guys aren't paying taxes or investing in people or investing in the next iphone, they are not trying to put the super bowl on, they are criminals. when you buy something from these people your money is going to organized criminals overseas. dagen: how do you drive that message come from nfl fans? if i want to stick jersey, nike wasn't making one, i am going to go out and find it some way somehow? >> that is a great question. we work with licensees to make sure there's merchandize the fans want that are available for them at every price point. so that they are not tempted to go out and buy something from a counterfeiter. we work hard with licensees and local businesses in new orleans and elsewhere to make sure we can meet the demands. dagen: designed it to go to the g

threatened to expel the 2.4 million it hosts if afghanistan signed the agreement with the united states. the economy is in trouble made worse by sanctions. caught in the middle are afghans cho who have few rights in iran even though many have lived there for decades. hundreds cross the border every day. some comb home voluntarily but many have been deported forced on to buses and sent back here. >> his hands were painted red in an iranian jail to identify him as a prisoner. he says his only crime was asking for his salary. >> i am deported and the wages from five months of work is still there. why would we go to iran? why would we choose misery? >> sent back with him are teenagers at the international calls children. their afghan families see them as bread winners. like this 15-year-old. >> my employer didn't pay me. he fired me then he turned me over to the police and then they deported me. >> despite the mistreatment, many afghans will try to go back pay smugglers hundreds to return to iran in search of work. >> 30 years of war and the low wages here make the problem of human trafficking even bigg

united states. the question has always been the level of enforcement. it was created in 1924 to help lose stop coming across the border. -- help booze stop coming across. in 1990's when the united states economy roaring, people were truly come across the border in large numbers. the mid-1986 border reform pact when reagan gave amnesty and they try to deal with it then. then when the united states economy became this huge loads don't, people were coming across in larger numbers. as we have tightened enforcement and tighten security of the border, people who are here illegally cannot go back to their native country, may in mexico. they are afraid if they go back and they will not be able to get back in. now we have what is generally come to a consensus as 11 million illegal aliens who are in a kind of legal limbo. they broke the law. they are here. they are afraid to leave because they cannot come back. the question before the congress and the administration is how do you deal with this? proposals are being circulated. host: san antonio, texas, republican line. caller: we call it boots and bullets on the border. we have them on the border doing the same thing we do in afghanistan and we stop ta

that's important to the united states economy, tour producers, our exporters. we can gain from today's witnesses, ideas and suggestions about how we can improve our response to these means and appreciate all of them being here to work with us in this regard. again, i'm looking forward to working with you in the committee stood for in the 113th congress. >> thank you very much. we have a group of excellent panelists today. i asked the members opening statements be submitted for the record ever to members, we recognize senators based on order of appearance at the committee alternating sides. before introduced the first panel, with a two -esque in its consent to enter items into the record. testimony from national association of districts and the official record and i can come a letter from the u.s. cattlemen's association. if there's no objection, we would enter that into the record. thank you. welcome again. we ask that you keep, as you know, our two witnesses now keep comments to five minutes, but we welcome your extensive written testimony to be shared with us

in for tom hartman coming up in this half hour obesity is a serious problem in the united states crossing our economy hundreds of billions of dollars every year and worse obesity is affecting kids at a younger and younger age so what is the u.s. department of agriculture doing now to combat this epidemic and why does it have right wingers crying nanny state. also with the republican great recession still in full swing more and more working americans are having to delay their retirement plans just a little bit tom explains i was good retirement is just the latest casualty in the billionaire class is war against working people and later what do you jerry seinfeld very manilow and geraldo rivera all have in common i'll give you a hit they have the same thing in common that organizations like the american federation of teachers and the american medical association all have in common still don't know well it has a little something to do with guns i'll explain more in tonight's daily. so the days of junk food vending machines in our schools may be numbered last friday to be department of agriculture unveil

i mean in the 1990's when the united states economy was rip roaring and growing, people were come ago cross the border in large numbers. there was a 1986 border reform act and bonled reagan gave an amnesty and they tried to deal with it then. then when the united states economy became this huge load stone people were coming across in much larger numbers. actually what has happened, as we have tightened our enforce. and tightened security at the border, people who are here illegally can't go back to their native country which is mainly mexico. or they are afraid if they go back they won't be able to get back here. so they stay here. so now we have what's come to a general consensus of 11 million illegal ail yens in a limbo. they have broken the law. they are afraid to leave because they can't go back. and the question before the congress and administration is how do you deal with this? this is what all those proposals are that are being circulated. host: texas caller. guest: i say put the u.s. guard and reeverybody ises on the border and do the same thing we do in ask and we start prot

and then when the united states economy became this huge lodestone, people were coming across in much larger numbers. actually, what has happened is as we have tightened our enforcement and tightened security at the border, people who are here illegally can't go back to their native country which is mainly mexico or, put it this way, they're afraid that if they go back, they won't be able to get into the united states. so they today here. now we have what's generally come to a con consensus, it's 11 million illegal aliens who are in a legal limbo. they've broken the law here, they're afraid to leave because they can't go back, and the question before the congress and before the administration is how do you deal with this? well, this is what all these proposals are that are being circulated. >> host: san antonio, texas, republican. >> caller: hello there. i've got a program i'd like to run past you. i call it boots and bullets on the border. i say the we put the national reserves on the boarder and start protecting the americans instead of the rest to have the world. >> guest: well, it

a booming china helps the united states. our economies are so connective and interdependent. we are selling more to china now. one example, i did a story. it was about how general motors was basically bankrupt in 2008. they were saved mostly by china. i talked to the head of china's sales there. same with forward -- ford. general motors said they were not selling cars. they were still in the united states. business in china was booming and continues to boom. china build more cars now, and buys more cars than the united states does. that trend will get bigger and bigger as you get the western provinces getting richer and richer. we are selling more to china now. that is before us. >> i want to run some bit -- video from you from "the washington post" website. this is the chen guangchen story. >> around may of 2012. >> the gentleman with the sunglasses on in the wheelchair, where is he today? >> new york university. he got out after he escaped. he went to a hospital in beijing and then later the u.s. gave him a visa to study. he wants to go back. >> here is may 2 of 2012. [vide

united states. the united states economy takes a hit, they take a hit as well.out there like terrorists that obviously would want to take down the electric grid where china may not want that? >> yeah. that's the interesting thing about china that people have been asking is how is their motivation different? there aren't too many other different countries we witnessed doing this almost exclusively for financial gain. they've had access to systems that they could have year you wanted and -- that they could have corrupted and attacked but they've chosen not to. if you had a different organization like a terrorist organization yeah, i mean they could -- theoretically gain the same access. it is really not that difficult. it is easy to play offense and very difficult to play defense. >> bill: you can find out more about this report from mandiant at their web site, mandiant. we'll have the link on our web site too. m-a-n-d-i-a-n-t.com. dan, can we really point fingers at china here when at least reportedly the united states used the same kind of system, of a worm, to