housing recovery in the states but what about us treasuries say where will the pressure be felt the impact of the u.s. treasuries is the most important financial instrument conlin the financial markets so any and. any trouble with this instrument. no spell big trouble for their world financial system above given the importance of us treasury for the health of the wall financial system and the chances that the compromise is not going to fall in the very slim i want about the us dollar that away expressing a full round the conditions that have been created with this. government shutdown and the potential battle for the debt ceiling limit all these conditions will likely to prevent us fed reserve from tapering this and the stimulus in the near future. so there are no consensus no shifting to the fed. cutting rates the rate of monster purchases further down the road in the future sorry the current consensus is there that we're going to see the car the december meeting on nelson december meaning i mean i think we're all going to seed early before they're beginning of next year and they have see

treasuries and you're a foreigner i mean if you're in russia and you owe us treasuries politicians are going to put the interests. of a russian bond holder ahead of an american voter so our foreign creditors are really low down on the totem pole of getting their money paid back i mean i would be surprised if we defaulted just on the bonds held by foreigners but not on those held by americans and believe me you know if push comes to shove do you think an american politician is going to say we need to raise taxes on average americans or we need to cut social security benefits because we need to pay china the interest on their bonnets why not more should we make china back to principle because they don't want to roll of the that will never happen but we say mr ship when we are talking about america being addicted to foreign that what we are really talking about is the american people being those addicts who through their you know lifestyle choices through their political choices consumer habits what have you it is the american people who are ultimately halting the rest of the world hostag

treasuries david kay thank you so much speaking to us from singapore today thank you time talk about u.s. treasuries we spoke to the russian billionaire and head of the biggest al-ameen you produce in the world were sold yes i'm talking about how they got a pascal ferry ample scott space haven't asked him but his take on the u.s. debt situation back to the united states it's a big issue is sort of hanging over everyone not that possible before the markets were relatively stable and have been during the shutdown of the united states i suppose that's good news. is that was not a surprise i mean we were expecting more volatile respond in the markets will realize that we can move close to. default to the computer different story you say you are expecting. more from the time we have no idea it was evil couldn't meet that was official reason we're not. going to come here so they didn't manage to meet for us in the street before this was. probably rational with us. is a worrying time for those who have investments in the u.s. treasury. i would never interested in your story. but it's a bit.

more than fifteen trillion dollars causing that domino effect now live with us all right now is economist and paul british treasury official daniel mackinnon who joins us live good to have you with us here on r.t. just how bad would this default be. well i think it could have quite considerable negative implications if we do consider technical default remember that it is a technical default america being a sovereign country can print its own money and issues its own debt so the idea of america going bankrupt is incorrect but a technical default can happen if america misses payments bondholders and if that happens then you could easily see the rating agencies downgrading america's credit not has lots of ripple effects lots of knock on effects in terms of banks you've got exposure to us treasuries to money market funds mutual funds and they could be very seriously over and above the loss of confidence i think the technical people have would have in the international investment community. now time and japan hold more than two trillion dollars in u.s. treasuries are why investors still choosing america over any other

us. treasury saying we will hit what the government can spend this upcoming week. now the white house is talking to senate and house republican leaders and at least trying to come to an agreement it sounds. there has certainly been a shift in tone. how do you think this ends? how serious would a breach be, by the way? >> let's start with that. a breach would be quite serious. first of all, i don't think we're going to default on our debt. this is a different story from the government shut down. here we're talking about something like 5% of gdp or, another way to put it is 20% of government expenditure has to be financed by borrowing. shutting that amount of expenditure down is a big deal in terms of its impact on the macro economy. it's also a big deal in terms of what it implies for the future of the budget. this is no longer just about thinking about obama kaerp or whether we want to play partisan politics on that. in some sense that's a distraction. right now what we're talking about is the size of the government. these discussions are pretty serious at this poi

germany's thriving economy may well be dragging the rest of europe down a us treasury report suggests the continent is suffering from a trade imbalance caused by a flood of exports from germany but talk of berlin orchestrating the e.u.'s policies is nothing new it recently persuaded brussels to delay a limit on car emissions to save the revenues of its own auto industry or smith explains. with friends like these who needs enemies david cameron for all his fall prefer to negotiate with the e.u. the need it all together and germany. is the linchpin that holds the entire project together and yet these two countries that are reportedly cutting a secret deal to protect their main industry again e.u. regulations it's a tit for tat thing britain is proposing to support germany's to delay the introduction of a cap on carbon dioxide emissions which will harm b.m.w. mercedes and and in return in seeking germany's help to protect the banking sector from the ways of brussels regulations the proposed deal may also include asking for germany's help to cap on bankers' bonuses something the tory part

federal hold and leaves president obama grounded as he is forced to cancel a trip to asia while the us treasury issues a warning of a catastrophic default. on the price tag for the new ones on his bailout reeks feeding the government couldn't have chosen timing for the project. international news and common life or months ago this is all see was made things for joining us so i can trunks and sound whistleblower edward snowden should be only had to list a list of names recently nominated for a prize for freedom of thought that was a drug made by a former n.s.a. director michael hayden but it's. a way of criticism he told. he was misunderstood. well speaking at a washington post panel discussion on a cyber security former n.s.a. director general michael hayden joked about putting edward snowden on a list that has very little to do with human rights or honorable recognition america's former spy chief eg knowledge that snowden an n.s.a. whistleblower has been nominated for a human rights award and then reportedly said quote i must admit in my darker moment over the past several months i had also th

federal hold at least president obama grounded as his source to counsel a trip to asia while the us treasury issues a warning of a kind of default. on the price stock with the new law is on his bailout plate greeks feeding the government couldn't have chosen what timing for the project.

the us federal hold present a solid grounded us is forced to counsel a trip to asia while the us treasury has a warning of a catastrophic default. on the price tag for the new most can out the ins unger's bailout plagued greeks thinking the government couldn't have chosen was stymied by the project.

karen hughes swirled bank whistleblower could have you back foreign governments keep buying give us treasury bonds to spied obvious problems years economy is facing what's making them do that in your opinion i think the biggest market for the federal reserve notes is the u.s. treasury and there is a god of dollars right now but yes there's also a small market unfortunately the market is weakening as the dollar weakens because of all of this what they call quantitative easing where every month so many additional dollars are printed with absolutely no backing you never told when it first part should we be buying gold well yes and no i think gold is probably a wise purchase right now but more as insurance than investment because there's actually a great deal of gold there's even more gold than people know about for example the amount of gold that's in deposit in the bank of hawaii is a hundred and seventy thousand tons this is more than the world gold council says is available for all the gold on earth people don't know how much gold areas there's a lot of gold are you buying gold. i did actual

registered in these being rich sit around the world you'd be find people less and less to treat us treasury bills and the dollar itself as a safe haven somewhere that's guaranteed to be where you can put your money put your savings put your wealth and it will hold its value over time for the show you are one of the more dramatic moments of the crucial nighttime vote in congress for the house transcriber unleashing a rant about god and freemasons before stunned lawmakers and she was forcibly removed from the chamber you can see right there she explained later that she was simply doing the will of the holy spirit or to rome we go where italy's economy ministry has been attacked by furious protesters i'm good by the government's ongoing cost cutting drive thousands took to the streets denouncing the ongoing austerity measures failing to dig the country out of recession. that you got pissed off with. at some point during this mass protest rally which has been taking place throughout the last two days really in central role a group of young radical protestors started throwing eggs at the finance

registered and he's being registered around the world you'd be find people less and less to treat us treasury bills on the dollar itself as a safe haven somewhere that's guaranteed to be where you can put your money put your savings put your wealth and it will hold its value over time. and here's one of the more dramatic more than sort of the crucial nighttime vote in congress the house transcriber unleashed a rant about god and freemasons before stunned lawmakers that she was forcibly removed from the chamber explaining later she was doing the will of the holy spirit . italy's economy ministry has been at times by here is protest angered by the government's cost cutting drive thousands took to the streets denouncing the ongoing us measures for failing to dig the country out of recession this colonel was there for. at some point during this mass protest rally which has been taking place throughout the last two days really in central role a group of young radical protestors started throwing eggs at the finance ministry and also throwing bottles sticks and these so-called thunder flashes or pap

us. >> secretary treasury jack law says, treasury secretary says congress must raids the debt limit by on the 179. to aslide default 1234eu6789. we and floor side has blinked. leaving lot government workers upis the about not getting pay connection many tourist angry that the national monuments parks, are closed. fox five has been tapping their mood and join us live from am phaupl. >> you know downtown washington beautiful at night specifically when moon mements are all list. normally they would be open for visitors. i refreshes getting engaged one night on my birthday actually on top stefps the lincoln memorial but, i digress. there seem lot of fewer people than normal out here tonight. in section is of went park. climbing over barricades to get close look at the martin luther king memorial. all of that despite possibility of having to pay a $50 fine. >> they could give you ticket. what do i do with it? could you have pay fine. >> how much is fine? it might be worth it? of. >> if you spend your wait for your whole life to get here. that's a hefty fine i think for coming just side play

billions of dollars that will continue to get put interest over and wealth funds as opposed to us treasuries and they're trying to look for any way now to take those excess savings in excess capital now distribute it across the world you see us now china now is investing in nuclear power plants in the u.k. these are power plants and u.k. will be one hundred percent owned by the chinese government you know in addition to manchester airport which are just oh the u.k. and are looking for china to come in and rebuild their infrastructure because like the u.s. and u.k. we see we can no longer even repair or build new infrastructure own countries all right dan collins got to leave it there thanks again for being on the kaiser report thanks max and that's going to do it for this edition of the kaiser report with me max guys and stacy herbert i'd like to thank our guest dan collins of the china money report dot com if you want to get in touch tweet us a kaiser report until next time bio. deliberate torch is on it's a big journey to some. one hundred twenty three days. through two hundred two cities

and you're a foreigner i mean if you're in russia and you owe us treasuries politicians are going to put the interests of a russian bond holder ahead of an american voter so our foreign creditors are really low down on the totem pole of getting their money paid back i mean i would be surprised if we defaulted just on the bonds held by foreigners but not on those held by americans and believe me you know if push comes to shove do you think an american politician is going to say we need to raise taxes on average americans or we need to cut social security benefits because we need to pay china the interest on their bonnets why not more should we pay china back the principle because they don't want to roll of the that will never happen but we say mr ship when we are talking about america being addicted to foreign that's what we are really talking about is the american people being those addicts who through their you know lifestyle choices through their political choices consumer habits what have you it is the american people who are ultimately called ing the rest of the world ho

us. >> treasury secretary jack law says congress made must raid limit by october 17th it said default. stay with for inning coverage to this government shut down. we posting new information on myfoxdc.com. twitter, and of course facebook. >> turning weather and live look outside where it was nor steamy fall day. we don't get many of them but we did today. can we expect more of skwaeuplt we have more with the answer. i hope it is no! no? that good i am done we will get rain which we desperately need some strong thunderstorms at times tomorrow moving on through. i will tell you what stroerplt going signal change. so we are going say good-bye 80 14z to 90s. look like we will be much, much cooler, for rest of the week temperature oupt there right now is 76° here in city. temperature are in lower 70s around some spots still in up he ever 70s cull upper i am talking to you. then a little kaoplter over eastern shore where cambridge 70° this is pretty strong frontal system that's going to come through. it is tied off to paren low which coming through midwest and that same parent low has been r

us money. the treasury's history of repayments and the smooth operating of the treasury market has created that high level of confidence that permits us to borrow at very low rates. i don't think it is in the interest of the american people to do anything to give our investors less confidence in the united states. that would include either failing to repay, or as i said in my testimony, so much debt that it will not be supportable. >> mr. stevens, some in congress have proposed payments to bondholders should be prioritized in the event of a default. is this a workable long-term solution? >> to go back to my previous answer, i think it, to some degree, misses the point. if you are household and depending on the bank for continuing financing, and the bank learns this month you will decide to pay these bills but not those bills, doesn't engender greater confidence in the bank to continue to lend you money. that is the key point. the money that you are lent, if you are lent any, is going to be much more expensive. it makes the whole that you were -- it makes the whole that you the hole that you are

treasuries? we are seeing issues in the financial markets. the cost of usingshort-term treasuries as collateral has increased. we reportedly sold off treasury holdings in maturity in late october. secretary lew testified in front of senators and others that yields in short-term treasuries nearly tripled from the week before. we saw in that hearing where some are setting up a construct where government, the treasury, the president has to choose between paying off bondholders, paying off chinese investors and wall street investors, choosing between that and medicare and veterans benefits, funding everyday government in this country, a choice that no one should absolutely inflict upon a government. it has never been done before. this week i spent a lot of time calling community bankers and business people and hospital administrators, people running major research institutions in our state, mostly, i assume republicans, and most of them are incredulous we would even be thinking about this prioritization if we reach the debt limit, that we would prioritize, even th

so, in the end people are very happy to hold us treasuries as long as they see the us is continuing basically to be a stable place. the deal that has just been reached will confirm their view, i think, that in the end the us pulls back from the brink. and so, the confidence will remain until that ceases to be true. >> looking at the economy, how do you see the us economy five years after the great crash? >> well, i think it's actually largely healed. the evidence we have from previous studies of crises tends to take five to seven years to get through the process of deleveraging and so forth. now the u.s. economy clearly has some very, very big issues, some problems. i think rising inequality and the plight of the middle class are the most important structural problems. the long term trend growth issue, how fast will the economy grow in the longer term that's, i think, a very, very big issue. but in terms of dealing with a crisis the us is clearly ahead of anywhere else. the deleveraging has been very substantial, there's been a big reduction in household debt in default which is sad, but it's

if you can no longer use u.s. treasuries as the most easily liquid collateral in the world, it's a question of you may not be able to get a mortgage for a certain time because the basic benchmark everyone uses to set rates in the mortgage market no longer ay be valid measure by which to set more standards. that's just around the u.s.. you go around the world, suddenly, a lot of transactions that are interbank rely on a , right or wrong -- >> authorities in italy have detained a tunisian man, suspected of being the captain of the boat full of african migrants that sank off the coast of lampedusa. he faces charges of aiding illegal immigration and multiple counts of homicide. meanwhile, ministers from the european union were in luxembourg trying to work out how to prevent a similar tragedy from happening again. after, the bodies keep coming, and they are not finished yet. divers at the wreckage look at the horror of their work. the bodies of dozens, some with arms stretched out as if in a plea for help, are crammed into the ha

if you can no longer use u.s. treasuries as the most easily liquid collateral in the world, it's a question of you may not be able to get a mortgage for a certain time because the basic benchmark everyone uses to set rates in the mortgage market no longer ay be valid measure by which to set more standards. that's just around the u.s.. you go around the world, suddenly, a lot of transactions that are interbank rely on a , right or wrong -- >> authorities in italy have detained a tunisian man, suspected of being the captain of the boat full of african migrants that sank off the coast of lampedusa. he faces charges of aiding illegal immigration and multiple counts of homicide. meanwhile, ministers from the european union were in luxembourg trying to work out how to prevent a similar tragedy from happening again. after, the bodies keep coming, and they are not finished yet. divers at the wreckage look at the horror of their work. the bodies of dozens, some with arms stretched out as if in a plea for help, are crammed into the ha

the us treasury department is also calling on congress to strike a deal on raising the debt ceiling.secretary jacob lew warns the economy could plunge into a downturn worse than the great recession if congress fails to raise the federal borrowing limit. jericka duncan, cbs news. >> congress now has until october 17 to raise its current $16.7 trillion borrowing limit before the government defaults on its debt. >>> the partial shutdown of the federal government is having its effect on financial reports. >> we are now joined by gigi stone of cbsmoneywatch.com with more. >> reporter: good morning. the futures right now indicate a higher open for stocks this morning. but uncertainty over the budget drove them lower yesterday with the dow losing 136 points and the nasdaq falling 40 points. because of the shutdown, the labor department won't release today's highly anticipated monthly unemployment report. so investors are now turning their attention to the debt ceiling. the treasury department warning the economy could plunge into a downturn worse than the recession if congress doesn't vote

us. >>> treasury secretary jack lew will join moderator david gregory on "meet the press" this sunday to discuss the shutdown, the debt ceiling and so much more. >>> right now on capitol hill, the congressional progressive caucus is holding a rally. take a peek there, they're outraged over the government shutdown. here's independent bernie sanders of vermont speaking moments ago. >> real unemployment is close to 14 million. 20 million workers have no jobs. what congress should be doing today is putting people back to work. >> back to work! >> we should be -- we should be creating millions of new jobs, not furloughing and laying off millions of federal employees. >> so meanwhile, house minority leader eric cantor announced that the house will vote tomorrow on a number of new mini funding bills. joining me now is republican congressman andy harris of maryland. sir, it's great to have you here. let's talk about these mini bills because what they're going to deal with is basically the fda, emergency disaster recovery, head start, nih. do you agree with that style of piecemeal legislation in

treasuries are the world's safest asset and the most widely used collateral in the risk mitigation and financing. stringing the financial architect press the treasury's with increased raising costs, reducing the financing capability of the collateral markets because of the marginal costs throughout the financial system that would reflect the overall pricing to the uprising. given the uncertainties surrounding the failure to pay market participants to the look of the book to provide key market participants and service providers in the form to share information of the latest development in the treasury, the administration and congress, the status of the infrastructure provided. a particular concern to market at this point with an early indication for treasury securities will be extended and whether the process these are being more can be delayed. it's important for the markets to know as early as possible of the treasury intends to extend the payment date of any principle. the treasury securities are traded at a global market with the trading day beginning in asia at 8 p.m. eastern stand

use. the treasury is set to run out of money october 17. united technologies is canceling plans to furlough employees. most employees will be put back to work. they had planned to put workers on leave beginning today. the average for a gallon of regular gasoline is now about $3.25 a gallon. that is down from $3.41 a week ago. i and lack ofy progress. we did have a higher close on friday. at the new york stock exchange i am jane clean with the bloomberg business report. >> would you pay to design your unborn baby? parents could determine which traits their children could inherit. things like the babies i color and taste perceptions. the company said it is all in good fun. >> when they say we should be seeking to predetermined the traits of our children, that starts to go into scary territory. >> it could create a world of genetic haves and have-nots. >> now weather and traffic on the 1's. good morning. repeat thempac impacts. most of the heavy rain begins after 10:00 a.m. we could see from one to three inches of rain. this could lead to some

but the debt limit, i think the treasury uses the word catastrophic. >> that was a tough word from the treasury and their assessme assessment. markets were nervous all week. what do you think? was it the debt ceiling, shutdown? what else? we have earnings next week as well. >> this is all about washington. people get worried, even what we said about the employment report that is history at this stage. the more uncertainty it causes and uncertainty is toxic for the economy and markets because it causes people to hesitate to make decisions. i don't think we're going to default on u.s. debt. i think even in a worst case scenario and that could happen, the treasury secretary will probably still give priority to making sure the principal and interest payments are made on u.s. debt first. what we really need is a six-month cooling off period where we pass the legislation necessary to reopen the government and to deal with the debt ceiling and both sides need to pull back from this. right now we're heading for a collision which is really undermining the economy at a time when the economy didn