we hope that his budget at this late day will change our unstainable debt course. based on history, i'm not optimist optimistic, we are in a difficult challenge. we face a number of difficult problems. i am hopeful that the president's budget will do what a budget should do. layout a sound course for america's financial future. it has not yet, last year's budget did not do that. i hope he will this year. i'm not confident. mr. chairman, thank you for letting me share those remarks, we, chairman bernanke, value your opinion. and you can help us work our way through the most dangerous systematic debt challenge that the nation has faced. >> senator sessions, i am optimistic you said that you are not. i am. >> about the budget that the president is submitting? that is different, i said i'm not confident that he will layout a plan that he will get us off this debt course. >> i a am optimistic and the president's budget that comes out will reflect the overall optimism that is rising in the country yard to the economy. and it all summed up in this chart. this is private s

this is clearlily unstainable. this did not occur overnight, it's the result of fast rising health care costs and an aging population. the cbo projects that net federal outlays for motorcycle entitlements could rise to 25% of gdp, the time for projections to be reality is coming closer. having a large and increasing national debt runs the risk of serious economic questioconsequ threatens to crowd out private capitol formation and from borrowing from a broad, the income we have would be devoted to intere interest payments on the debt. even the prospect of unstainable deficits has costs, including a increased possibility of a sudden fiscal crisis. as we have seen in a number of countries, and rates can soar quickly. although historical experience and economic theory do not indicate the exact threshold as which the debt would increase, we could be sure that without reaction, we will move closer to the point without action. to achieve economic and financial stability, u.s. fiscal policy must be placed on a sustainable

i said i'm not optimistic he would layout a plan to get us off an unstainable debt course. excuse me. >> well i'm optimistic and the president's budget that is going to come out, i think, will reflect the overall optimism that is rising in the country with regard to the committee and think it's all summed up in this chart. this is private sector jobs. and you can see for about a year and a half, there were massive job losses in the private sector in each of the months and of course, this only starts in january of '09 in this chart, you can take it back to further in '08, that is when the crisis started. this tells us along about march of 2010, the jobs' picture dramatically changed. and there's the trend line to the point at which is now 257,000 in this past month on job increases and that to me shows a trend that is, i think reflecting the optimism that is starting to bubble up across america. mr. chairman bernanke, your job has been very tough over the last few years with the consumer confidence that has been shaken. the events in japan and europe threatening to derail ou

and property taxes were going up at a rate that was unstainable. unsustainable. 6%, 7%, 8%, every year. and it was just on automatic pilot and you heard it all over the state. the tax cap doesn't stop as we know, the taxes from going up. but it engaged the citizens. what is this tax cap? what's this about? more people are now turning up at the discussions, the local budget discussions because citizens are engaged and it's put presidential on the local officials to think before increasing. but that's exactly what we wanted to happen. and we want the citizens engaged. and it is working. but the local governments are also right that we have to do more on mandate relief. we set up a mandate relief council in last year's legislation. i want that mandate relief council to have public hearings all across the state where citizens participate and local elected officials participate. let them come up with a package that they present to the legislature this year on mandate relief. let the legislature take it up or down vote this year because the local governm

legislation that they say will help resolve some of the financial issues facing medicare, claiming it is unstainable with the growth projected over the next 10 to 12 years. this is washington today. >> the obama administration has denied wisconsin's request for a waiver from the new health care law's medical loss ratio. while partially approving north carolina's. and with the two decisions, the hhs, department of health and human services has concluded its review of the 17 states that have requested a waiver from the law's requirement that the individual market health plans spend at least 80% of premiums on medical health care or give customers rebates. the department has rejected ten requests and approved modified applications are from seven requests. encouraging reports about jobs and housing have helped boost the dow to its highest close of the year, up 123 points. nasdaq was up 44, s&p was up 15. president obama has sent to congress the proposed legislation that estalked about a little bit earlier this year would give presidents more power to consolidate governmental functions. the president sai

of course world bank president zoellick says china's current economic growth model is, quote, unstainablend some with the broad recommendations this report has for beijing include strengthening a market based economy and fostering innovation and social security for all. of course the report also calls for gradual reform and very sharp reform for enterprises and zoellick acknowledged beijing and the world bank don't see every issue eye to eye in this report but these issues cannot be ignored and hopes new generation will take the recommendations seriously. >> thank you very much, tracey. that was tracey chang. let me get you a reaction, do you agree with that world bank repo report, is china setting itself up for an economic crisis many years down the road if they don't do something about it? >> if you look at what the world bank's done, it's not too prescriptive. they admit that themselves. they are looking at great gains. when i look at their key six recommendations, i felt it was hard to disagree with any of them but they are vague to that extent as well. china ends up in some crisis, o