[applause] this of this going to make it easier for these wide man gaps semiconductors to go from the drawing board, the factory floor, the store shelves without necessarily the stores shelves. What i just saw, for example, or these really big piece of equipment, test Utility Companies or windmills translate the power that they are generating demand actually committed transmitted to where theyre going to be finally used it will bring together shift designers, manufacturers with Companies Like exxon and delphi the stand to benefit from these technologies. And this will help the companies but it will also help Small Companies because they will be able to use equipment that otherwise would not be able to afford and test a prototype new products and, of course, American Workers will be able to come right here to North Carolina to learn the skills that companies a looking for. In the next generation a manufacturing will be an american revolution. So in the coming weeks to be launching to more these innovation hubs. We already have them all planned out. Bonn will focus on digital design and manufacture. Another will be developing lightweight metals that can transform everything from Wind Turbines to military vehicles. Together theyre going to help build new partnerships in areas that show potential, helped to lift up of communities to help spark the technology and research that will create the new industries, the good jobs required for folks to punster to get in the middle class, and that is what americas all about. Now, we have always been about research, innovation, and then commercializing that research and innovation so that everybody can benefit. Then we start selling yourself all around the world. We start exporting. We create good jobs. Middleclass families that are able to buy the product that results from this innovation commend you get a Virtuous Cycle where everyone is doing better and no one is left behind. And that is so we can do if we pull together the way those companies and universities have pull together this as part of this bid. This is going to be a long haul. Were not going to turn things around overnight. A lot of jobs were lost. The textile industry, furniture making, but they great news is is that ultimately because our people are good and smart and hardworking and willing to take risks, we are going to be able to start bringing those jobs back to america. [applause] and that is what we do. When times get tough, we dont give up all we get up, we innovate, we adapt, we keep going, we look to the future. [applause] and now one of you to know, North Carolina, that as long as we keep working together in fighting together and working telomere to widen the circle opportunity for more americans of that no one is up behind. If you work hard and are responsible, you can go out there, guinness still, traders of, find a job, support a family if we work together, and that is our focus, there is nothing we cant achieve. There is no limit to how felt frolicking go. The policy. Time bless america. [applause] [applause] [applause] [applause] [applause] coming up tonight honor cspan2, imf director kristine lagard cox about her al look for the economy. Then Homeland Security threats followed by remarks by president obama on the economy and efforts to boost manufacturing. Thursday treasury secretary jack lew speaks about the economy and even hosted by the council on foreign relations. Live coverage at 8 30 a. M. Eastern here on cspan2. Environmental Protection Agency testifies about the president s Climate Change policy. Live coverage starting at 9 15 a. M. Eastern on cspan cspan three. As the president for stated in march and reemphasized tuesday night the goal of the United States in afghanistan pakistan is to disrupt, dismantle, and the to al qaeda and its extremist allies in a prevent his return to brunt prevent its return to both countries. Stabilizing afghanistan as necessary to achieve this overarching goal. Robert gates served two president s as defense secretary. Cia director. Fridays 6 30 a. M. Eastern, and live book tv the event. Secretary gates talks about his management in the wars in iraq in afghanistan. And then a few weeks womens history for beginners author Bonnie Morris will take your questions and comments live on in debt to february 2nd at noon eastern. An online for the rest of january, join our book tv book club discussion. Go to booktv. Org and click on book tv to enter the chat. International Monetary Fund chief Christine Lagarde spoke about the World Economy in 2014 citing the u. S. Budget deal as one step toward stabilizing the economy. From the National Press club, this is an hour. Now for our guests today she is the first woman at the helm of the international Monetary Fund and the first woman to hold a finance minister job in a g7 country. Christine lagarde has led the imf for two and a half years during which she has been erased and the European Economic crisis. Not new to the u. S. Capitol. She attended Holton Arms School in bethesda and mark that the u. S. Capital as an aide to then representative William Cohen where she helped him correspond with his french speaking constituents. [laughter] a onetime member of the French National synchronized swimming team, she became the first female chairman of the International Law firm baker mckenzie. Earlier in her career and a Job Interview in the law firm in paris she was told she would never become a partner because she was a woman. It later in her career she would stress equal opportunities for women, encouraging them to work in advancing their careers. Coming her a letter she joined the french government in june june 2005 as minister for foreign trade. She worked briefly as a minister for agriculture and fisheries in 2007 became the french head of finance. She also chaired echo friend council, the body of economics, and finance ministers of the european union. This experience came in handy when she had to negotiate the bailout of greece and economic help for portugal at cyprus. According to news reports of the darkest hours she handed out m m candies. Shephard global counterparts. [laughter] with europe slowly emerging from the deep recession and the u. S. Dealing with its own budget issues she expressed optimism about the Global Economy in recent weeks saying, the imf will raise its outlook both for the u. S. In the Global Economy. Yet she remains concerned about the Global Recovery being uneven and subdued and about the flowing of emerging market economies, the main engine of Global Growth in the last several years. She said the risk of heightened volatility in Financial Markets may create new challenges to the emerging market economies and further slow their growth. In the u. S. She is urging the funds largest shareholder to fill a pledge made three years ago to approve the increase of the imf capacity and allow more states in developing countries including china. Clearly for the iron lady of the Global Economy the challenges are far from over. To hear about these matters today please join me in giving a warm National Press club welcome for managing director of the imf [applause] thank you so much. [speaking in native tongue] as you can tell, do as i am told. At the time when my predecessor would sit down, and clearly have failed. Good afternoon and thank you for having me with you. But like to thank the National Press club and especially presence far not only inviting me to this prestigious venue but essentially presenting meola nevada want to talk to you about now. Something we have prepared together, which we have not. That me, first of all, begin by wishing you all a happy new year i guess its still time to do that given that we are just exactly halfway through between our western new year and the Lunar New Year which will bloom in a few weeks time. At the its also appropriate to wish our cells at the new year google one of like to talk to you about which has to do with the Global Economy and what we should expect for 2014. Of going to test you numerologys skills by asking you to think about the magic seven. Okay. Most of you will know that seven is quite a number in all sorts of themes, religions, and im sure that you can compress numbers as well. So if we think about 2014 all right. Im just giving you 2014, dropped to zero, 142107. Okay. This just an example, and were going to carryon. So 2014 will be a milestone and hopefully a magic cure in many respects. It will mark the 100th anniversary of the First World War back in 1908 1914. The 17th anniversary of the conference that actually gave birth to the imf, and it will be the 25th anniversary of the fall of the berlin wall, 20 theft. It quickly turned into the greatest Global Economy calamities as the great depression. The crisis cylinders. Yes. Optimism is in the air. We have left the deepfreeze behind this and the horizon looks just a bit brighter. So my hope and my wish for 2014 is that after the seven miserable years we can we have seven strong years. I dont know whether the g7 will have anything to do with it the weather will be the ag 20. I certainly hope that the imf will have something to do with it. Is this Wishful Thinking . No. But it will not happen randomly without us together and policy makers in particular making the right decisions, having the right policy makes, organizing themselves in a coordinated way. Let me talk about first of all the global bark as we see it and then i would like to touch on the policies that i believe will help us transform those miserable years into strong years. Now, i am going to anticipate potential questions that some of you might be to to task by adjusting clearly than not going to give you the number of our revised World Economic outlook number that will be this close and january 21st. Suffice to say that it will be directionally positive as a revision. But im here to discuss the main trend. We saw momentum strengthen in the latter half of 2013, and we believe it will continue to strengthen in 2014, largely due to improvement in the advanced economy. Yet despite that directionally positive movement, growth is still stuck in fairly low gear. It remains a potential which we believe is 04 which means that the world could, if it worked, create a lot more jobs than before that we have at the moment, and we could do that without having to worry about the inflation genie coming out of the bottle. With that positive initial statements ive but like to have that it will not be without significance. With inflation running way below central bank targets in most corners clearly were seeing rising risks of deflationary which could prove disastrous for the recovery. If inflation is the genie, then certainly deflationary is the over that must be fought decisively. Throughout the years of crisis we have relied heavily on the emerging market economies and on the lowincome economies to be it drivers of growth. If you combine those two categories, they produced actually about threequarters of Global Growth. However, a growing number above emerging market economies are slowing down as the economy cycle turns. So that is also one of the risks, as we see, going forward. We also see risk arising out of the Financial Markets turbulence in the volatility of capital flow. Their reaction to the fed tapering is partly due to the fact that we have had a dry run in may and june. It is good news that this reaction was found, but there could still be rough waters ahead. Overall as i said that direction is positive, but Global Growth is still too low, fresh out, and many had. Moreover even as it is or as we forecast that it will be, it is aiden of to create 200 million jobs needed by people looking for jobs everywhere the world. Additionally into many countries, actually most, the benefits of growth by being enjoyed by far too few people. Just to give an example, in the United States, 95 percent of income gained since 2009 went to the top 1 . 95 percent of the Income Growth gained went to the top 1 . This is not a recipe for stability and not a recipe for sustainability. Lets now turn to the policy recommendations. Because all of that really points to the policy makers all need to stay focused on the policies that are needed for sustainable inclusive growth as low as rewarding jobs. And we so far have certainly avoided the worst case scenario, and no policymakers have made part of the necessary effort. Those that arent when clearly beyond the call of duty with the central bankers. Government in most places deployed fiscal stimulus where they could and applied adequate, sometimes a bit too much Fiscal Consolidation whether should. The road has certainly been difficult and continues to be so, but as head toward moral one said, the difficulty is the excuse that history never accepts. Now that the Global Economy looks more stable the big party for policymakers from our point of view in 2014 is going to be to fortify the few Global Recovery in make sustainable. Great. And going to have run you through the advanced economies that have will take by groups, then the emerging markets, then in come countries as to what we see as a good, coordinated policy makes this should be applied in order to secure and strengthen growth in secure jobs. To look at the advanced economies first with a means is that your member what i said about the monetary policies. Central banks are going to have to slightly gradually, over time, and properly communicated and do what they have done, but they should not to that and tell growth is robust enough and firmly rooted perrys of the way in which state perry is applied, the way in which from unconventional to conventional they return will have to be very well timed. At the same time countries will need to use the rule created by that unconventional policy to put in place the reforms that are needed to jumpstart growth and jobs. So it is not just for central bankers to do some policy work but also for the other in terms of budgetary policy in particular. Let me get deeper in touch on the different regions and look first at the largest economic player in the world, the United States. Growth in the United States is certainly. [inaudible conversations] , driven to essentially buy private demand. And theyre public that we have observed in 2013 unfortunately was tried by the Fiscal Consolidation of 2013, helped by the loosening of the fiscal course it as a result of the recent budget deal. Still, it will be critical to avoid premature withdrawal of military support and to return to an order in the budget process, including removing the threat of the debt ceiling. It if we live look at the arrow, it is clearly turning the corner from recession to recovery. But when you drill down growth is still on balanced. Some kurds trees growing reasonably well and some economy is doing quite well and others lagging behind. Some of those are actually suffering from significant high debt and credit constraints as well. So here is Monetary Policy the continued health. Clearly the ecb has done quite a bit to facilitate the financing of the economy, but i can do more, and we believe that it can do so in a very targeted way by facilitating targeted lending, in particular, in order to avoid the financial fragmentation that is still there is much beyond conventional policy it has been applied. We believe that the forthcoming asset quality and stress tests that would take place in the course of 2014 and going to help if it is done even in italy and in a credible manner in that obviously will communicated as well. In the euro area, there is a need to accelerate reform, booze labor Market Participation and that applies pretty much across most euro area countries. Lets now turn to japan. In japan the initial boost from economics and the three errors has been effective, but it is weakening a bit. Hopefully temporary fiscal stimulus that it announced will actually upset or this sparsely upset the negative effect of the necessary consumption tax increase end to the account economic and social reforms that we believe are needed to strengthen growth in japan. What 29 that . Well, regulating the service of product markets other heavily regulated and badly protected command that is where i mean by social reform, making sure that women in the japanese economy can access the job market. I am very pleased actually that the prime ministers listens to that recommendation and that he is including in his budgets of 2014 significant amount of spending on Day Care Centers for japanese women. Now, moving away from the advanced economies camillas look at the emerging markets, the challenge is going to be to navigate in a pumping this in stay strong. Policymakers may be wary of any signs of financial access, and they should, especially in the form of asset bubbles or rising debts, including two backdoor channels or offbalance sheet instruments. Financial regulation needs to be strengthened and impleme