treasury secretary timothy geithner announced he will join private equity firm warburg pincus as president and managing director now geithner who stepped down as treasury secretary in january will join the new york based firm in march the firm said in a statement quote gov will work closely with warburg pincus is top executives on overall firm strategy and management investing and portfolio management organizational and funding structure and investor relations geitner played a central role in the government's response to the two thousand and eight financial crisis before becoming treasury secretary of two thousand and nine prior to that he led the federal reserve bank of new york for more than five years. and finally the world's largest futures exchange the c.m.e. group said that its clearing service for energy and other swaps was hacked back in july of this year sparking a federal criminal investigation now certain customers information relating to the chicago mercantile exchange as we report service that was compromised now clear

treasuries in september during the last budget battle. foreigners dumped more than 130 billion in investments, the numbers were higher showing $14 billion. >>> investors buying up stocks in china's markets today, the shanghai composite rose 3% following the announcement by chinese leaders of massive social and economic reforms, including opening up its markets to more investors, encouraging competition among private companies and allowing more foreign investment into the country. more foreign reform, easing up on the parents' one-child policy, which some say has caused more aging population, it has created an unexpected boom in investing in the older generation. >> reporter: at a nursing home in beijing, the sing-along is led for the fellow residents. the 82-year-old is one of a number of senior citizens, benefitting from elder care. nursing home life is good, he says, i feel really safe. due in part to the decades-old one child policy china is aging faster than other developing nations. pension and health care systems here are not well e

treasury secretary jack lew who is currently touring asia. speaking exclusively to our colleague in singapore, he gave his view on china's reform plan. >> there are a lot of questions still to be answered. the communique coming out of the plan is at a very general level. to be optimistic, it leans towards market oriented policies. it doesn't spell out all the policies. we'll be having discussions where i hope to learn more about some of the specific policies. the tests are easy. the tests are easy something like the shanghai free trade zone and moved to open it. we'll see what the details are. it can't just be a banner. it has to be some details underneath to open up markets like financial services and other things to competition. you look at where they move on currency. they have to move steadily in the right direction and continue to close the gap and ultimately they need to have a -- they're making progress, but they need to have steady, sustained progress and moving back and forth. >> all right. jack lew moving earlier. what do they make

mr assad will no doubt her to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay crawford's two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giants early terminations of a bagged coffee grocery deal between starbucks and foods starbucks said that bridge contract agreements a mismanaged the brand while kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are some your headlines for today is always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars historical record

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay kroft foods two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and kraft foods starbucks breach contract agreements and mismanaged the brand wall kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are summer headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars by historical record

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them for the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and i. think what a bizarre it's really shocking mockery let's talk about quantitative easing because if that's bonkers then this is a really messed up what you know i mean this is like a relatively policy that's completely and say it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. even and with. with quantitative easing they buy eighty five billion dollars a month worth of bonds buying these bonds inflates the press these bonds but they are also

but they're buying from the treasury that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them from the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep those free market and i. think what bizarre it's really shocking and let's talk about quantitative easing because that's bonkers and this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty you see them and with with quantitative easing they buy eighty five billion dollars a month worth of bonds find these bonds inflates the pr

who could imagine that the treasury would come up with some device for. continuing to make the payments there are ways the government could slip around as they're there they're well known the government has chosen not to do so i think the actual situation is that the republican party has caved on this issue there is not a majority to block the rise in the debt ceiling and so this problem having been resolved a few weeks ago will be resolved in february in essentially the same way and i think everybody now realizes that that's the case so i'm confident actually that this problem is has been dealt with at least for now. that was james galbraith a professor at the university of texas at austin and son of prolific economist john kenneth galbraith now it's time for today's big deal. joining me now for today's big deal the one the only rachel corrie's is how you doing lady i'm doing great how are you ok now this is one of my favorite subjects that we're going over today celebrity photos and they're not always from the red carpet some of the best ones now some o

that is required -- from the united states treasury that is required and needed. to the chairman of's point, -- chairman apostle point, -- point, the act requires at the end of every fiscal year which includes the fha must have sufficient oferves to cover 100% anticipated future losses. the fha's rogue worms -- programs are subject to the federal reform act. they can take advantage of permit and definite authority to cover increases in cost for outstanding loans and loan guarantees. that is all this is. this authority allows the fha access to u.s. treasury funds without congressional approval for any funds needed to balance its books. that is what this is. that is what is in the law. it is no kind of bailout. importantk it is very that we be honest with the american people so they know this is codified in the act of 1990. >> the chair recognizes the gentleman from texas. >> thank you, mr. chairman and for holding this hearing. we have several points. every body erect a nice is that fha has played a viable role -- everybody has recognized the fha has played a viabl

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them from the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and you know you think what bizarre it's really shocking and let's talk about quantitative easing because that's bonkers and this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. you then and with with quantitative easing they buy eighty five billion dollars a month worth of bonds find these bonds inflates the price these bonds but they are

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them from the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and i. think what a bizarre it's really shocking mockery let's talk about quantitative easing because if that's bonkers then this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. even and with with quantitative easing they buy eighty five billion dollars a month worth of bonds find these bonds inflates the price these bonds but they are als

that they aren't ok for the record they're telling the treasury but they're telling the treasury to print these bonds buying them from the treasury inflating the price of the bonds and then keeping interest rates low and what's really shocking is that you explain to me very clearly is that they're not just buying them for the treasury they're buying them through these third party banks that are actually doing the buying and selling to keep this free market and i. think what a bizarre it's really shocking and let's talk about quantitative easing because if that's bonkers then this is a really messed up what you know i mean this is like a relatively policy that's completely and saying it's over the past eight years and you know the fed it's it's what it morphed into can be argued that it's horrible that it's going to what the fact the matter is that something different than what it was in the one nine hundred eighty s. you then and with with quantitative easing they buy eighty five billion dollars a month worth of bonds buying these bonds inflates the price these bonds but they are al

when you're him, you're treasury secretary. every company, you know every ceo, every major ceo in america. >> it's a big deal for them. melissa: a huge dl for them. >> just overseas too. melissa: i was surprised it wasn't kkr. warburg pincus is big. >> it's a big deal. whatever specific deals he is involved in, his name will carry resonance. it will open doors. melissa: for sure. >> will be a very good thing for him. will be a very good thing for them. it will work out on both side as well. melissa: isn't it ultimate hypocrisy though? >> none of this is new either side of this. none of this is new last three or four years. >> no, but what is new for the first time we had a presidential candidate who had a treasury secretary who attacked private equity. that was a point of his campaign and now his treasury secretary is going into private equity. >> at same time. who was funding his campaign? >> when did that happen? when last time something that hypocritical happened? i don't know. >> nothing more. thanks, guys. coming up, anoth

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay kroft foods two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and foods starbucks said that cross bridge contract agreements and mismanaged the brand while kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are summer headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars a historic

the treasury department will sift through the comments. they have to be submitted by the end january. there may be a public -- hearing. and itch tf the normal regulati process is allowed to work. final regulations will emerge in a couple years. >> julian epstein is set in stone. but what the treasury clearly indicates, they want to move toward claire frity and try to certainly what they call candidate related political activity out of 501 c 4s. >> some what out of it. they should put a footnote out of this program. this program. it is a significant move. it clarifies what has been lacking in clarity for the last 50 years. the scan daudal was never a sca. groups on the left and right. were targeted. under shifting criteria. who qualifies for the tax status and who doesn't. what the rules are frying tryin here. what the rule change is trying to do here. clarify, what is kconsidered political activity. what isn't. a lot of groups, they run an ad to a campaign. lauren o'donnell is running for congress. isn't lawrence o'donnell a wonderful guy.

the treasury department will sift through the comments. they have to be submitted by the end january. there may be a public -- hearing. and itch the f the normal regulations process is allowed to work. final regulations will emerge in a couple years. >> julian epstein is set in stone. but what the treasury clearly indicates, they want to move toward claire fee rity and try to get certainly what they call candidate related political activity out of 501 c 4s. >> some what out of it. they should put a footnote out of this program. it is a significant move. it clarifies what has been lacking in clarity for the last 50 years. the scan daufl dal was never a scandal. groups on the left and right. were targeted. under shifting criteria. who qualifies for the tax status and who doesn't. what the rules are frying to trying o here. what the rule change is trying to do here. clarify, what is kid considered political activity. what isn't. a lot of groups, they run an ad to a campaign. lauren o'donnell is running for congress. isn't lawrence o'donnell a

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay crawford's two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and. starbucks said that bridge contract agreements a mismanaged the brand wall kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are some your headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars a historical record bu

mr assad will no doubt put to use his experience as a former assistant secretary of the treasury and while in that position he oversaw the unwinding of the troubled asset relief program better known to most people as tarp if confirmed by the senate massage it will replace gary gensler. and finally starbucks announced tuesday that it will pay kroft foods two point seven five billion billion with a b billion dollars to end a lengthy dispute over distribution of packaged coffee now the payment was ordered by an arbitrator following the coffee giant early terminations of a bagged coffee grocery deal between starbucks and foods starbucks breach contract agreements and mismanage the brand wall kraft denies this of course they demand that starbucks pay them a fair value for the business the award will now go to monday's international which spun off from crawford twenty twelve. those are summer headlines for today i was always will be tracking these stories and keeping you posted on all the latest. now just last month u.s. national debt seventeen trillion dollars by historical record but als

he worked hand in glove with me at treasury. what he said is, if you've got the right authorities, no institution needs to be too big to fail. but in the midst of a crisis, almost any institution of size is too big to liquidate quickly. and so really the -- i believe that dodd frank gives regulators, if they have the

treasuries. 2.68%, we were yielding 2.71% yesterday on the ten year. we have seen a fall in the level of expectations for what a yellen fed will mean with her confirmation coming up, as well. the dollar today on the defensive. dollar/yen, once again, we haven't held that break through, from 99.70. sterling back over 1.60 nearly to 1.61. that's where we stand right now. in europe, to recap the asian session, let's bring in sixuan from singapore. hi, sixuan. >> thank you, ross. treading markets today with a negative lead from the u.s. the nikkei 225 eased 0.25% after the 7..7% gain last week. the dollar/yen weakening to trade below the 100 level. so that adding pressure to exporter stocks. meanwhile, australia fell for the second straight session down 0.6% at the rba keeps the door open for further cuts. china markets pulled back after yesterday's strong gains. the shack high composite pulled lower by 0.2%. china enterprises lent support to the hang seng indetective which ended on a flat note. seou

treasuries given the dysfunction in washington? >> well, i think i would look at it from a macro perspective. if you take into account the exposure to treasuries from all the state owned enterprises the figure would be much bigger than the official $1.3 trillion. obviously we'll continue to invest in the u.s. market, the largest in the world, but we need to look for ways to dive e diversify our exposure. that's the driver. >> yes. let me talk about the transparency issue. there are a lot of american investors who are concerned about a lack of transparency with china in general and also specifically its banking system. how can you reassure them that is not the case some. >> well, do you believe in the global firm because if you do, then you should trust our figures. all the major banks use global accounting, these firms as our auditors and by law we have to rotate them every six years. >> all right. thank you. we appreciate it. thank you very much to dr. king lun, ceo of the bank of china asset management. down to you. >> thank you

all our money goes back to the treasury. i get paid the same amount of money, which isn't much, regardless of how much money we generate for the federal government, and to the cbo chart if you add in 20 -- >> i'm running out of time. let me get to some other questions. we are arguing semantics. are you being prepared, are you looking at a possible downturn and what are you doing to prevent that and what's your thoughts on qm? >> again, i don't control what happens in the common. i really hope we don't have another downturn but we are -- >> man, you just testified you look from economic projections to make changes and adjust this to your program. i'm asking what are you doing? >> let me clarify. the economic projections are used to value the existing portfolio, okay? what we look at in terms of our undivided criteria is what do we need to do pricing wise, credit lives to ensure that we are pricing our risk appropriately, and taking the right wrist. we have done pashtun i've listed those out. we have done a number of measures

when you're him, you're treasury secretary. every company, you know every ceo, every major ceo in america. >> it's a big deal for them. melissa: a huge deal for them. >> just overseas too. melissa: i was surprised it wasn't kkr. warburg pincus is big. >> it's a big deal. whatever specific deals he is involved in, his name will carry resonance. it will open doors. melissa: for sure. >> will be a very good thing for him. will be a very good thing for them. it will work out on both side as well. melissa: isn't it ultimate hypocrisy though? >> none of this is new either side of this. none of this is new last three or four years. >> no, but what is new for the first time we had a presidential candidate who had a treasury secretary who attacked private equity. that was a point of his campaign and now his treasury secretary is going into private equity. >> at same time. who was funding his campaign? >> when did that happen? when last time something that hypocritical happened? i don't know. >> nothing more. thanks, guys. coming up, ano

treasury bond market we have a seventeen trillion dollar national debt although you know that's just a tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries make sure the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth that repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the guy. it borrows more money every single year right you mentioned a moment ago about reform they're doing the delaying deformed they're not r

treasury bond market we have a seventeen trillion dollar national debt although you know that's just a tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries mature the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth. repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the government borrows more money every single year right you mentioned a moment ago about reform there do the delaying deformed and not reforming so r

treasury bond market we have a seventeen trillion dollar national debt although you know that's just a tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries mature the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth that repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the guy. it borrows more money every single year right you mentioned a moment ago about reform there due to delaying deformed and not reforming so

the treasury department plans to sell its last 31-million shares of g-m stock, two-point-two percent of the company, between now and years' end...finishing a controversial chapter in american business. "they couldn't compete with japan." in 2009, g-m was nearly out of cash. the obama administration directed a nearly 50-billion dollar bail out. dubbed "government motors," a task force overhauled g-m's management, dropped two- thousand dealers and closed plants. "we're a better company now." "they are more profitable now." but some say the bailout violated financial darwinsim. "who's to say what would have happened had toyota gained market share. we might have better cars." in a statement, the treasury department said "had we not acted to support the automotive industry, the cost to the country would have been substantial--in terms of lost jobs, lost tax revenue, reduced economic production, and other consequences." some think one of those 'other consequences' may have been elections lost in michigan, ohio and elsewhere. "it was political." overall, taxpayers will have lost about ten-b

ally financial, the one time lending arm of general motors repaid the treasury another $5.9 billion. ally paid back more than 70% of the total bailout money it got from uncle system. >>> south florida may look like it's making a come back, but if you dig a little deeper, it's in a hot bed of shady bond deals. our series "mission critical" heads to miami next. >>> even though sales of the all electric leaf car have been below target, nissan still plans to beef up u.s. production. now since the start of this year, the auto maker dropped the price of the leaf by more than $6,000. it now says the leaf is the top reason that customers are referred to the nissan brand. >>> some of those electric cars might come in handy on the day before thanksgiving, which aaa says will be the single busiest travel day of the year. aaa is out with the annual thanksgiving travel forecast, predicting more than 43 million americans will travel at least 50 miles from home over the long holiday weekend. that's down 1.5% from last year. nine out of ten travelers will go by car, fewer people flying this year. >>

he went to a private equity firm that wasn't regulated by the fed or ral by the treasury. that was a big part of it. he was also looking for a situation where some of the controversy that may have surrounded some of the big banks was not going to follow him into that job. >> this company has a british background, right? >> yeah. it does. it's also sort of a more low-profile company. >> discreet. >> my guess, that's not going to remain the same, the situation anymore. geithner being over there is going to mean the deals that are done by warburg pink cuss will be more scrutinized. >> he didn't go in as the ceo. >> he is going to be involved in running the company. another criteria, if you go to a big inment bank they might call you every day and say what's the fed going to do. when you're making longer term investment decisions over a number of years they're not going to call him for that stuff. a different set of skills are involved. he was looking forward to the new challenge, i'm told. >> thank you very much. steve liesman reporting on timothy geithner. >> we wish him wel

eat gold so it just depends on what's necessary at the time but my next question is now a former bush treasury official. he said that maintaining the dollar as a world reserve currency is a quote national security issue what do you see the u.s. government doing if it looks like the dollar's reserve currency status is actually challenged. well by the way coming back to her being he was also the one running around for three years saying the euro was going to fall apart greece was going to get kicked out spain had to quit the euro and the fact the euro is strong and

motion confirming the mayor's appointment of vivian fei tsen, term ending february 26, 2014 to the treasury island development authority board of directors. >> okay. you're used to this. >> it's great to be here, i'm very honored that the mayor has nominated me to be the treasure reer of the island authority, i've been involved in numerous specific projects in this city. i started out building affordable housing and with the first housing director of the chinatown development community over 36 years ago and i went on to do other things but i have maintained my relationship with that great neighborhood organizations for three decades and i am now the president of its board of directors, i was on the commission of the agency in the early 1980's and early 1990's and [inaudible] which i've been stuck for about three decades prior to my [inaudible] and a great advocate, strong advocate for family and children uses on that block. i was on the de young board of trustees and helped them with the building of the new de young museum in golden gate park, i helped the port of san francisco after more o

treasury bond market we have a seventeen trillion dollar national debt although you know that's just the tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries make sure the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth. repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the government borrows more money every single year right you mentioned a moment ago about reform there do the delaying deformed and not reforming

forget the treasury rates. look at corporate rates. 5.5% there is no bubble. >> there is no bubble yet. if you look at last week's economic indicators, 10 out of 11 came in worse than expected. at the same time yellin -- >> really? >> yes. >> at the same time, yellin goes in front of congress and says more juice in the punch bowl, more in the punch bowl. treasury yields are starting to come back down. and guess what? oil prices are coming back down. if you look at the commodity prices, they're suggesting we don't have this big global recovery because they're falling off at the same time the dollar is. so we're not seeing bubble here. we're not seeing massive global recovery. we're not seeing overheating here. >> there is a slight touch of deflation out there. >> there is. >> maybe the fed is right. >> it's not -- >> maybe janet yellen, the empress of the doves is going to be right. maybe bernanke was right. >> europe is easing. >> they're all pouring money. maybe not the drug stocks. brian kelly, jim lacamp, ba

treasury bond market we have a seventeen trillion dollar national debt although you know that's just the tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries make sure the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth. that repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the government borrows more money every single year right you mentioned a moment ago about reform there do the delaying deformed and not refo

treasury bond market we have a seventeen trillion dollar national debt although you know that's just the tip of the iceberg we actually have one hundred trillion plus in total debt seventeen trillion is just where there are treasury bonds outstanding but the u.s. government has lots of obligations beyond the treasury debt but if you just focus on that where does the u.s. government get the money to retire all the maturing bonds every year trillions of dollars worth of treasuries mature the government doesn't have that money it relies on new buyers to cash out the old buyers and in many cases it's the same holders the people that hold the debt just roll it over so we never have to pay it back but nobody wants to acknowledge the simple truth that repayment is impossible all we can do is borrow more money to pay off the maturing debt but then the debt stack keeps getting bigger and bigger and bigger because of the compound interest and because the guy. borrows more money every single year right you mentioned a moment ago about reform there do the delaying deformed and not reforming so r

treasury's fault ahead of bernanke. we'll have bernanke's remarks live when they happen here on c-span 3. until then, treasury secretary jack lieu said the debt ceiling should be extended and he earn couraged capitol hill to take acti action. >> what are we going to do on the data issues. we got these more looming deadlines in january and february. you're saying we're not going to have another experience like we had in october? >> i think if you look at the things republican leaders have said since october. it's clear this was not a good experience either for the country or for them politically. i know the right answer, the right answer is, they should just extend the debt limit way in advance and not have any sense of crisis at all. the debt limit expires. we do have extraordinary measure s when they start moving forward, they do the debt limit in a businesslike way and give some uncertainty to the u.s. economy. >> we're going to hear from paul ryan later this afternoon what would be the right way too go forward. >> tr

but interest rates spiked with the ten-year treasury bond hitting 2.75%. one question did arise, if that jobs number was so strong, suggesting the under lying economy is firming up and the markets are concerned with the feds starting to ease up on the bond buying purchases, why did stocks go higher? we asked bob. >> reporter: the surprisingly strong october jobs report pushed interest rates up again today, yields on ten-year treasuries are at six-week highs putting pressure on interest rate sensitive groups like utilities, real estate investment trusts, all of which are down for the week but the idea just because interest rates go up, the stock market is supposed to go down didn't hold water today. yesterday was the worst day for stocks in two months but aside from interest rate sensitive names, most of the market was up today, particularly beaten up groups like biotech stocks, oil and gas, airline and momentum names like netflix. part of today's strength was due to financials. higher rates are generally good for banks because it increases the chances bank

. >> fresh off the scandal with the irs and tea party groups, the irs and treasury are now proposing rules to curtail the activities of tax exempt political groups in campaigns. these groups somehow didn't sway the election last time for mitt romney. it's still trying to limit their right of free speech. >> all right, colin. >> paul, i have a hit to all the people who ate a little too much on thanksgiving. everyone's feeling guilty now. but as it turns out, studies

even the treasury has a $2.6 billion liability, correct? >> yes. >> so if you consolidate the books of the federal government, do the assets off sets liability and has a net monetary value of zero, correct? >> yes, that's right. >> so the trust fund has no monetary value in total? consolidate ed base snis. >> in fact, senator, we work on a consolidated basis. that's why we talk about the federal debt held by the public. >> i understand. again, the federal government is an entity. it has zero monetary value. now i want to quick go back to the cost of obama care. in front of you now is what i was looking at that showed over the next ten years the cost of the affordable care act will be about $2.4 trillion. i'm not sure what you were categorizin categorizing. do you agree this analysis, discretionary spending, woint go through it. >> let me clarify what i was saying. i was referring to the cost of the coverage proifvisions. >> i'm talking about all the expenses that it's going to cost over the federal government. >> so we have not tried to tot

treasuries was an implicit acknowledgement when you ban propriety trading you make them less liquid and more expensive for issuers. i'm told the next rule might exempt other sovereign issuers, which is another implicit acknowledgement of this problem. this is a problem for corporate issuers in america, and i'm very concerned that we not unnecessarily raise their cost of borrowing. the last point i would make, i'm deeply concerned about the consolidation that's happening in small banks, the lack of new small banks. as you know, we used to routinely launch sometimes hundreds of new community banks, i'm told by fdic there is not a single new community bank launched since 2010. regulatory compliance for institutions with no systemic risk to the economy is way overboard. i hope you will make an effort to diminish that burden. >> i promise to do so, senator. >> thank you. >> senator warren. >> thank you, mr. chairman. thank you, dr. yellen. there's been a lot of talk today about the fed's use of quantitative easing to help the economy get back on its feet, but the truth is if the regulators h

treasury securities. both lsaps and forward guidance for the federal funds rate support the economy by putting downward pressure on longer term interest rates, but they affect longer term interest rates through longer channels. to understand the difference it's useful to decompose interest rates in two components. one reflects the expected path of short term interest rates. the term premium is the extra return that investors require to be willing to hold a longer term security to maturity, compared with the short term securities for the same period. as i've noted, forward rate guidance affects longer term interest rates. lsaps in contrast, most directly affect term premiums. as the federal reserve buys a larger share of the outstanding stock of securities. the quantity of these securities available for private sector portfolios declines. as the securities purchased by the fed becomes scarcer, they should become more valuable. consequently, their yields should fall as investors demand a smaller term premiu