bank of england found their independence on the fourth of july. during the press conference, jeff pressed mario draghi on forward guidance. >> you were meeting another central bank in london was also having a meeting of its policy members. and in a break with previous tradition, we had a very clear forward guidance from mr. carney, the new governor. i wonder if because the bank of england has now changed its style on guidance it's time for the european central bank to also step forward with a new policy on guidance? it's clear from mr. carney's comments in the market reaction that he's moved the gilt market, moved the sterling curve. is it time that you put aside the precommit barrier to more detailed and specific forward guidance? >> thank you. if you ask this question, you haven't really listened to my statement. the -- >> sounds a lot like the statement i listened to when i was here in june. >> that's why i said you haven't listened carefully. the counsel took the unprecedented step to give forward guidance in a rather more specific way than it

the bank of england. expectations are pretty high that the former head of the canadian central bank can turn around the british economy. ♪ >> reporter: today a canadian is going to become one of britain's most powerful men. after 319 years, the bank of england governor is going to be a foreigner, mark carney. like his hero, ice hockey legend wayne gretzky, carney has been billed as the great one, even the best central banker in a generation. but with uk growth stunted and banks still in turmoil, the incoming governor will have to put his game face on to thaw the ice. ever since the chancellor chose mark carney as the new bank of england governor, he's been seen as the ultimate dove, happy to use and perhaps overuse, even if it makes us all feel a little bit too sick. back home in canada, the gloss has started to come off a bit. with the housing bubble caused by low interest rates and too much lick wis i had, the oecd have said that canada's housing is the third most overvalued in the whole developed wor

we're tracking it at 151.13 before the bank of england minutes hit. so this has been curious, the sterling trade has gone up. the mpc members will discuss alternatives at 2 qe overcoming months. perhaps qe isn't the only method that the members will adopt. a quick look at the unemployment rate as well. we got the jobless numbers crossing. the uk june claimant count is minus 21,200. expected to be minus 8,000 in terms of some of the other key parts to this component. the average weekly earnings were plus 1.7% year on year. the market expected this to be a little lower at plus 1.4%. this has been interesting too because when people are looking at the prices of houses over here, many are saying that the weekly earnings are not justifying some increases. we have seen already the pricing on sterling. >> that's a big surprise. i don't think anybody who is thinking the vote would be 9 million on whether to extend qe or not. i think it was 7-2, kind of just considered to be a definite, so the fact fisher particularly has now gone back into the no extension of

that's what the bank of england. walter bagehot wrote a book about and that establish some of the doctrine of what central bankers have been doing since 200 years since. you're the lead of last resorts your you lend freely at ability rate. you stand ready to make money available when it is otherwise not. it's not a seamless progress of, for the good when you look at its history. a lot of you probably know the stories of the 1920s what happened in germany. the power of the central bankers use and it sometimes misused. so this is a prime example. after world war i there's reparation payments the german government is supposed to make. and a mannamed rudolph was the central bank for germany in the early 1920s and he saw it as his priotic duty to print money, however much was needed fund the government to meet its obligations. you can imagine how the story ends. you just print without regard what happened to the price level. it becomes an inflationary force. he had this odd obsession with physical technical job of printin

the bank of england decision. for the time being, i'll send it back to you. >> we'll check in with you in a bit. let's return to the stories on markets, portugal in particular, ten-year yield now 7.2%. the retreat about 100 on basis points in the 24-hour period. significant improvement about the way investors are feeling around borrowing costs in portugal. joining us is laurent franzlo from barclay's. we saw that spike in yields yesterday, an extraordinary move across the curve. why do you think investors have reversed positions so quickly in such a short time frame now? >> the question is whether investors have really reversed positions or not. let's keep in mind in particular portugal -- portugal and greece are very small markets, very fairly ill liquid markets especially in terms of prizes. so it is not that there is a lot of volume that is going through at these levels. that's why you've got jumps up and down of 30, 50 basis points on a daily basis. so clearly there is more reprising of the risk premium on por

is basically the governors of the bank of england from the bank of france, european central bank, salon, india, brazil and the bis general manager. that's the elite meeting where i think a lot of the discussions have gone on about cordoning the response to the global financial crisis. there's 18 of them at that in the find and on the 18th floor. a fabulous diamond. it has views over friends and switzerland and germany. it's very global. the next day there's the global economy meeting. that's 30 countries. and vignette countries like turkey and the philippines and indonesia will attend the as was the 15 or 18 that were there the previous night. they sit around the table and another 15 countries are allowed to attend the meeting but are not really supposed to speak unless it's really, really urgent. countries like hungary, for example, or macedonia. they are allowed to attend but they don't talk. sorry, i think macedonia is not allowed to attend because the final 15, the third division, they're not allowed to attend. they just have to hang around. but they are allowed to attend the launch

so that leaves the door open for more dovishness from the bank of england. >> how do you expect that dovishness to be translated into policy? is this more funding for lending world and more qe? what is -- and instead of trying to talk things better? >> the key watch word is forward guidance. sort of -- >> what they said is that they're concerned about the rise in global yields and the rise in uk yields and that in august they look at forward guidance. the way that forward guidance comes out could well be that they promise to keep and trade to current levels for two years or contingent on hitting a certain unemployment or gdp level. i think we're likely to see something along those lines in the august statement. this will be stronger forward guidance than they have done in july. the critical question is whether they'll reinforce the words with actions. >> they can't -- they don't control -- do they -- i know they keep buying a lot of -- they bought a lot of the gilt market. this particular moment when they're not buying anything, yields will influence by the fed, are they not, by what

of england, bank of france. and india and brazil. dis general manager. that is the elite meeting where a lot of the discussions have gone on about coordinating the response to the global financial crisis. those are 18 of them in that. of fine dining room on the 18th floor. at fabulous dining room. use of france and switzerland and germany. very global as befits a global institution. the next date that is the global economy meeting, and that is 30 countries, and then you have countries like turkey and the philippines and indonesia that will attend as well as the 15 or 18 that would have the previous night. and they sit around the table. in another 15 countries are allowed to attend the meeting but are not really supposed to speak unless it is really, really urgent. countries like hungary, for example, or macedonia. they are allowed to attend, but they don't talk. or no -- actually, macedonia is not allowed to attend. the final 15, the third division, they're not even allowed to attend a global economy meeting. th

the bank of england releases some information as well. but it was pretty solid that we don't want to be release the information about the meetings. it's a juggling act. powerful people meeting in secret are not going say i'll tell you everything we talked about. pressure is being put on them. it's happening. t a kind of, you know, it's a very pressure. terrorist a shift in about institutions around the world on social media and what happened in the arab spring and the occupy movement. people are demanding accountability nowadays. i feel the bis needs to adapt to that. >> i want to open the discussion to the whole room. just a housekeeping reminder, if you could wait for the microphone to come to you before you start speaking. and normally we ask everyone to say who they are. since the cameras -- not everybody wants to say that. you can say i'm roger rob rabbit. and i want to mention this. not are all on the record. please feel free, if you would like to tweet using #political forum. and@worldpolicy. do we have a question? >> hi, i'm bill.

more comments out from the bank of england as well. they say corporate loan demand is on the rise. demand for credit from business in the uk up in the second quarter expected to increase again in the third. this is a bank of england, they say the credit conditions that demand for credit of all sizes up to april in june. companies wanted credit to fund mergers and acquisitions and restructure their balance sheets. they say the rise in demand is matched by an increase in supply of loans and supply of loans is expected to remain broadly stable between july and september despite government efforts to spur greater lending to small businesses. david owen is with us. quick view on that survey, david? >> all very encouraging. corporate loan growth is picking up. i would hasten to add it is skewed toward larger companies. that's more of a large cap company issue. the end of the day, it is the s&p that we want to see more traction in the early days. they catch more types of -- the way companies at that end of the food chain actually get financing through factory and invoicing and so forth. w

ecb, the bank of england, japan, and that push/pull with the fed, how does that play out for equities? we clearly see how it's impacting emerging markets. >> if nothing else it's going to increase volatility. you're at the inflection point in the u.s. yes, i know we're not going to have a new rate cut -- any rate hikes for at least two years, until 2015. we haven't had a rate cut since 2008. that's sort of a secondary issue. the fact that all this extra money has helped push the equity markets higher. the fact that they're draining it. you look at japan, they're basically the qe junkies homeland right now. they're the ones continuing the whole policy. in europe there's very few ways to play it, one of them being reno. >> why reno? >> it's got the stake. exposure there. weakening currency will help them. that's sort of a main program. >> does the strengthening dollar that we've got, is that going to play a part in your -- >> it should help -- it should offset some of the weakness within the eurozone. i wouldn't be surprised if in the u.s. earning numbers you see them shaving a couple c

economists expecting around 160,000, and all of that is both the ecb and the bank of england yesterday offered forward guidance breaking with the tradition saying that record low interest rates will be maintained for a prolonged period. part of it is almost hard to separate what is going on with us today, because of what draghi said yesterday. >> all part of the same story, because the ecb and the bank of england came out to say that when the yields in the u.s. jumps, it sets rates along other developed markets and they have had to deal, and image anyone the position of europe and britain and not only as strong an economy as the u.s., but you have to deal with the higher rates as a result of it, and they are trying to push back against it. i will quote citi because this will give you a sense, they say that a positive response today is more likely to unwind the currency blocs and replicate and this is important because we are are seeing it, replicate the mid-june forward and we saw bond flow redemptions and the yields higher and people worrying about the emerging markets, and that patte

according to the bank of england. that's not -- the dollar index is currently up near 4-week highs. we're getting back slowly towards that 100 level eurodollar pretty steady at around 130.26. >>> still to come, the recent slide in japanese equities dropped to levels where it is now time to reinvest. that's the chosen strategy for our next guest. the nikkei today back over the 14,000 level. second hour of worldwide exchange coming up right after this. >>> you're watching "worldwide exchange." i'm ross westgate. your headlines from around the globe. make sure the voices of all egyptians are heard. responding to a demonstrations through a political process. this as egypt's foreign minister resigns. >>> greece wants to get its house in order. the finance minister quits as he admits he lost public support for his austerity plan. >>> in italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. >>> the world's biggest pension plan in japan posted highest annual profit ever, $112 billion. th

central bank meetings, the fed, the bank of england, ecb, plenty of data, pmis and the jobs report at the end of it. no one really wants to get in the way of that. the index down at five-week lows. dollar/yen currently at 97.96. let's talk about japan. shoppers are spending more. june's retail sales climbed 1.6% from the same month a year ago after little less than analysts' forecast. recent economic data in the country has improved steadily, prompting some to highlight the effectiveness of abenomics. kuroda said a retail sales tax hike is needed, and it won't kill economic progress. the bank of japan governor said it's important for the government to get its books in order to show that the central bank isn't monetizing cabinet spending. his comments come as prime minister abe's review, the government wants to soften the blow to the economy. a final decision is expected in august. joining us with his thoughts, miles branchle at pimco. miles, good to see you. >> good morning. >> how much does it matter what they do with the sales tax? >> i think it's quite important. it's about the pac

cable has accused the bank of england of choking off an economic recovery by imposing excessive demands on banks. describing sections of the boe as, quote, the capital taliban. he echoed the views of the chancellor george osborne concerned a reluctance of financial institutions to lend is damaging the prospects of british business. this comes as figures from the british bankers association showed borrowing by nonfinancial firms edged up by 172 million pounds in june. and the number of mortgages hit a 17-month high. >>> the top job at rbs is still to play for apparently. this after black rock confirmed that mark mccombe who heads the asian operations, turned down the role of rbs chief executive. it follows a report in the financial times which said he was the external front-runner for the post. the uk bank told cnbc they could announce a replacement as soon as next week. here is a look at how rbs shares are performing, firmer, up more than 1% today. >>> and some interesting news as well in the banking sector. icbc lost its title as the world's biggest bank by market capitalization. after

the bank of england still faces big challenges. this is a verdict from pricewaterhousecoopers which claims that inflation will be above target for a while, creating a dilemma for the bank of england. all the details at cnbc.com. you can follow on twitt twitter @cnbcworld. >>> still to come, bank of japan held policy steady, but shake up its vocabulary. the central bank dared to use the r word for recovery. we'll be in tokyo for the latest after this. [singing] hoveround takes me where i wanna go... where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. most importantly, 9 out of 10 people got their hoveround for little or no cost. call now for your free dvd and information kit. you d

the bank of england and the federal reserve to could have a place to meet that wasn't supremely protected and inviolable. well, what does that mean? it means that this is an international organization and it is a unique hybrid in the world. it is the world's oldest global financial institution before the imf, before the world bank. it got all of the same protections for almost all of the united nations and from the moment it was set up with a national treaty, it is just almost extraterritorial in the same as the british embassy that has that level of protection. during the 1930s, the central bankers had a place where they can meet and discuss things away from politicians and the way it goes from the eyes of reporters. during the '30s, things were so secretive. there was a "new york times" reporter who did report on this for the magazine. and he said after these meetings come he wasn't even allowed into the room when it was all gone. ..

many believe with ecb and bank of england meetings closed on thursday and friday jobs numbers on our sides, volume tilts will remain high. if you don't believe me, look at the straddles for the treasury complex that go off on friday. they are running a definite rich. look at ten minus two spread and talking about speechning, a little less than two years, want to pay attention to that, but maybe the most important chart, a little over a three-year high on the zone. trading our tens versus european tens in the mid to upper 70s. sue, back to you. >> thank you very much, rick. appreciate it. you're up to date on the interest rate curve and the bond market. >>> last week "power lunch" first told you about a second wrongful death lawsuit against energy drink-maker monster beverage. the family of a 19-year-old filed that suit and an earlier suit was filed by the family of a 14-year-old girl. monster trades at the nasdaq, as you know. the stock is down since last year when word emerged lawsuits were possible, but the stock is actually up 8% just in the last week. last week we had one of the

what will be key is what happens at the end of the week with the bank of england and the ecb meetings on thursday and the jobs report coming out on friday. back to you. >> big week, actually, for meetings and data, even though it is a holiday-shortened one. sharon, thank you. we're in the final stretch of trading, about 50 minutes before the closing bell sounds on this first day of the second half of the year. the dow kicking off, up 121 points right now. s&p 500 also stronger. >>> coming up on "closing bell," is ben bernanke and the fed giving the consumer too much credit? somebody here is warning just that, and it could have disastrous consequences. the debate coming. >>> also, groupon. you know, you love the deal that comes in your e-mail. but should the stock be the target of your affection, as well? we'll look at that. >>> plus, just when you thought the duel was done, carl icahn is back again, this time with $5 billion in hand. he'll explain his latest move coming up to maria exclusively. >> yeah, we want to take you live to egypt, get you the latest on the protesting going on.

now the head this all happening ahead of the bank of england monetary policy decisions due thursday. it is not just the fed this week of course. those policymakers in the u.s. will kick off their own two-day meeting tomorrow. take a look across the major european markets now. mixed picture as you can see on your screen and also mixed when we look at the fste adding literally a couple points this morning. france down by a few, germany up by a few. the big mover appears to be italy, down by 0.9 of 1% and smaller moves elsewhere. britain a wpp will be taking over by the omnicom group assuming that is approved as the world's largest ad company. shares adding 1% and wpp up about half a percent. elan trading higher in their home country of ireland after they agreed to be acquired by perrigo. they have been talking details all morning. those shares up 3.8%. >> bring in bob and see what's moving to the downside in this case, bob. >> started at 11:00. this is a little bit of a -- immediately i got top lines of people saying judge say lawyers for hank greenberg should be allowed to depose bern

michelle was talking about this, the bank of england saying -- coming out with a statement they didn't do anything. we hardly get a statement where they don't do anything. but this statement said the implied rise in expected future profit of bank rate is not warranted by the developments in the economy. in other words, ecb has also said, never precommitting, but came out and expected rates to remain at present or low levels for an extended period of time. never said that before. didn't know what an extended period of time means, but not six or 12 months. still not sure if that means it is three months or 15 months. but anyway, that was the comment from the ecb. certainly lifted the equity markets. dax up 2%. today, little more caution after the big rises. we have employment report, the ftse 100 up .6. the portuguese government has come out and said we had talks with our coalition partners, we think we'll be okay. don't think there will be any more resignations, but yields still elevate and above 7%. on the 7% mark at the moment of portuguese yields. push it on to the debt market, we'll

ecb and bank of england reporting to be a big day. you'll be watching your screens. back to you, carl. >> okay. thanks a lot, rick. rick santelli. a list of the highest paid ceos is out. we'll tell you who is on top and who is sliding in the ranks. first, pharmaceuticals returns to wall street. mark trudeau will visit us with his prescription for the growing spinoff. we'll be right back. [ female announcer ] doctors trust calcium plus vitamin d to support strong bones. and the brand most recommended by... my doctor. my gynecologist. my pharmacist. citracal. citracal. [ female announcer ] you trust your doctor. doctors trust citracal. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ ♪ [ male announcer ] the par

in japan, the ecb, bank of england, and our fed. we have a very false market which is buoyed by this tremendous amount of money that's been created by nothing, checks for free, and if there's any crack at all anyplace in the world, you're going to see a tailspin that's going to be very unpleasant to be on the plane for that ride. >> many of us, including yourself, art cashin, myself, talk about it's more than that. do you think even with the logic of that distorting the taper, it's a subsidy. i don't care logic or no logic, any form of removal is going to give us more hiccups. agree or disagree? >> no, i totally agree. as a matter of fact, the real number with the rollovers and so forth is about $100 billion a month. also the treasury came out and said that they're going to be cutting the amount of money that they're going to require so that means the fed is even going to be buying a bigger percentage, and it's, as i said a very false market created by all this free money. >> well, mark, i'm going to have to cut you short. thanks fo

about tapering. >> they gave more support for the guidance which the bank of england has recently adopted and bernanke has em phasized in the remarks that along with qe, and forward guidance, it is with the accommodation of forward policy and whether when those two things end, it will amount to a tightening remains one of the questions that people are debating. >> can i point out that the data book is going to be released this afternoon, and at 2:00, and so that will assume that the tape sr is still in place. >> and now we are joined by midtown manhattan steve liesman who -- oh, at headquarters, and this is not how you want to go out if this is the last appearance. >> well, it is memorable, and the one where the microphone did not work and the testimony is not delivery, and bernanke would be fine to have his testimony stand and not answer the questions. i want to know how much of the questions get into the finaler points of the qe that the market wants to hear, and the guys in the house are interested in promoting the political purposes, but simon hit on a question there that i believe th

your views on this, how much -- we saw last week the ecb and bank of england coming out and talking about rates staying low for a while. are they terrified or how worried are they that the fed will import its monetary policy over here? >> i don't think the feds -- >> the rise and they can't do anything about it. >> that's what they're seeing in the markets. i don't think the fed are intending to do that. but the markets rightly or wrongly are extrapolating what the fed are talking about, assuming the ecb and the bank will do the same thing. i think they have been working incredibly hard to disabuse that motion and we have seen a little bit of a fallback in yields on the european front but not enough. >> where we saw the interest and the reaction immediately after the comments was in the belly of the curve, in the five-year. >> and currency weakened as well, which was helpful. but the u.s. economy is in a re different position. and let's remember, all the fed are talking about is slowing down the rate at which they're adding stimulus. not actually at the moment -- tapering is about -- >> t

>> i mean, the ecb is trying to play the same game as the feds did and the bank of england are now, which is to try and manipulate market rate expectations and push yields further out on the euro curve down a bit to extend monetary easing. the problem is, the ecb's mandate is a little more rigid in terms of what they can do. they're walking a fairly tight rope in terms of how much they can guide the market on a forward basis and still stick within their mandates. >> is there a danger of the ecb losing out to fed -- losing control because of -- >> i think clearly the u.s., you know, the u.s. fed is probably still the most important central bank in the world. and europe can try and differentiate itself, but it is hard to complete -- >> everything will be driven by the cost of u.s. money. >> to a significant extent. the fed has set the agenda so far in terms of extraordinary easing and i think it is now doing it in terms of the beginning of the withdraw of that. central banks that think their economic situation is somewhat different are trying to -- trying to influence markets and differenti

mark carney has just taken over as bank of england governor. uk pmis for manufacturing, 52.5, much strong eer than expected. we also saw mortgage approvals coming in at highest levels since 2009. continuing strength in the uk economy. now, we have known that mervin king has been voting for more qe. well, i doubt mr. carney's going to vote for that this week because he would be outvoted if indeed that was the case. xetra dax up half a point with the ibex up about a percent. we also saw manufacturing pmis for the eurozone tick higher, 48.8 in june. the flash was 48.7, a bit better than expected. spain stabilized. italy still contracting with 23 months in a row but still the highest level since july 2011. just to show you where we've been on the performance over the half year, not quite as good as what we've seen in the united states. the ftse up 6% for the year. so far the dax up 5%. the ibex down 4%. the cac up 3.5% for the first half. break that down to sectors today. and this is how we're weighted. you see certainly weighted to the upside. the

the question, after last week, european central bank, bank of england, that were out there introducing forward guidance and kind of shaking things up in rates and currency mark, carl, whether than involved anything here here, for portugal, greece, will these remain -- i had been on the ladder, the remaining areas of concern for quite some time. >> yeah. i think it's going to go away in the near term. keep an eye dow components, intel one to watch. a downgrade to underweight. price target goes to 20. 12-month price target to 20. talking about earnings not eclipsing $2 for the next several years based on trends we know in the pc world and dell, by the way, getting a pop here on that news. >> yeah. what we know so well, trends, of course, dell one reason why we saw iss in favor because of the continued risk to the business that many see as a result of severe erosion in pc sales. and in that market, that hitting intel. microsoft, for its part, has not been hurt at all by those concerns. in fact, just the opposite of what you might have expected in this period with those shares up so sharpl

the day after that you will get the bank of england and the ecb and to finish off the week you will get payrolls. if you're sitting on a little bit of a gain and you got up here and as i wrote a couple days ago, market looked like the check engine light came on, so maybe you want to just ease back. so the combination of all those things i think is what put us there. >> and you haven't even brought up the fed which we have been talking about in terms of the personnel movements but do people need to be focused on that or can we kind of ignore it if we know we're not going to hear from the white house until september? >> i think you will see it become more active conversation next week. traditionally bernanke would go up to jackson hole. he would make the keynote speech that would lead off what strategy might be. we haven't heard who is going to replace him in that manner, and with the summers/yellen debate the place am might become very interesting. that's yet one more thing for people to be a little edgy about. >> we know there's going to be a protracted legal battle between the fed and

fashion resembles the bank of england's issues with george soros when george soros challenged via his trading of the british pound. do you think that analogy works? >> well, i think eventually you're going to see a real attack on the dollar and on the u.s. treasury market and the fed's ability to maintain artificially low interest rates without destroying the dollar. we're going to come to that point. it's not there yet. and i think one of the reasons that ben bernanke had to do some damage control as far as talking back tightening is because he's already very nervous about the reaction that he didn't anticipate in the bond market and how it's going to affect mortgage rates and the housing bubble that he's trying to reflate. >> peter, one of the trading venues that handicaps the future had the top three post -- or people in line for the chairmanship as janet yellen and then second and third were pretty close between larry summers and tim geithner. out of those three, who would your choice be, if any? >> i don't know, look, the good news is ben bernanke is leaving, the bad news is one

with had mark carney's first meeting with the bank of england, those minutes were released this morning. and we sthau aw he voted agains further qe this is what the market has been waiting for. the wild card was that he managed to convince the rest of the mpc members to vote with him, against qe, so he saw a 9-0 vote. that's what the markets have seized upon today. also comments suggesting that more qe could complicate the eventual move towards exit. across the charts, you see the extent of the red. the ftse was tracking up about half a percent first up, now down half of a percent. the cac quarante in france, the xetra dax down .6 in germany. it is the spanish market that is the weakest of the european markets, down near 1% sell-off on that market. let me show you a couple of individual stocks moving around today with big stories as well. barclay shares down almost .8%. the u.s. energy regulator has fined barclays and its traders $453 million. this relates to allegedly manipulating energy prices in california. investors, though, say it is not material to the company's earnings. novartis

she has a very long and distinguished career and international finance at the bank of england. that is "the washington post" and the times of london and of course the u.s. treasury department where we work together and number of years ago. and importantly her biography says she was born in washington d.c.. like me, that is also true. we have parents of reddish origin but unlike me her parents were wise enough to spend enough time in the u.k. that she picked up that wonderful accent that i unfortunately did not. you will see in the second. with that caroline. >> thanks very much matt. it does require a little bit of explanation when i show up as president obama's chauffeur and in fact the g8 david cameron said i had been wondering whose side you are really on. anyway it's a pleasure to be here this morning and i've want to exclaim to our colleagues that i was just meeting with my russian counterpart so he said that is why she is not here and i said she is why i am late. i think that goes to part of what is so valuable about the g20. i should be clear and interest because when ma

she has a very long and distinguished career in international finance at the bank of england, at "the washington post," at the times of london and, of course, at the u.s. treasury department where we worked to the a number of years -- together a number of years ago. and importantly, her biography says she was born in washington d.c. like me, that's also true. we have parents of british origin, but unlike me her parents were wise enough to spend enough time in the u.k. that she picked up that wonderful accent and i, unfortunately, did not. but you'll see in a second. so with that, caroline, please join us, thanks. >> thanks very much, matt. yes, it does require a little bit of explanation when i show up as president obama's sherpa and, in fact, the g8 david cameron said i've been wondering who side you're, you know, you're really on. [laughter] anyway, it's a pleasure to be here in this morning, and i wanted just as i was explaining to our russian colleague that i was just meeting with my russian sherpa counterpart, so we concern he said, well, that's why she's not here, and i said she

england and france and spain in particular so the basic program was to pay off the debt from the war that was crippling to create a centralized currency, the central bank, industrialized developed to trade treaties where jefferson had the bigger vision but he became president and as they tend to do sees the world differently after the war in office it is sharpened his focus and he wrote to a friend that basically says thanks to the blitz just like satan told adam and eve at a paradise the british have pulled us out of the agrarian model now we have to become the industrial society so you will see jeffersonian and hamiltonian republics with the party that we associate today. a and your second question? >> [inaudible] >> today's business the educational and i go into detail how the association came together. it is very much active as a knowledge society today with his wonderful and prestigious to be appointed they have a great library collection and sponsors dollars pfiffner and lecture series and in fact, if you read the official injury reshape their own founding to the 1743 proposal