Our foreign policy, security and economic priorities in ukraine, Central America, africa, asia and other regions. Treasurys International Programs are some of the most Cost Effective ways to reinforce Economic Growth at home and to respond to critical challenges abroad. Specifically, u. S. Leadership and International Financial institutions enables us to influence how and where ÷olk resources are deployed, often on a scale we cannot achieve through our bilateral programs alone. Its crucial we continue to have bipartisan support for these institutions to ensure our influence remains as strong today as its been over the past several decades. Treasury looks forward to continuing the dialogue with congress on the Important Role that the International Financial institutions play in the Global Economy. Especially as we implement the imf reform legislation and negotiate replenishments. Of several of the mdb windows that serve the worlds poorest countries. Thank you very much and i look forward to your questions. Thank you, mr. Secretary. Now recognize myself for five minutes for questioning. Mr. Secretary, one thing maybe we can agree on is that tens of millions of our fellow countrymen are unhappy. I think one of the reasons theyre unhappy is too often they see an administration that either makes up law, ignores law or lives above the law. They see a congress that they think is helpless or hapless in dealing with that. In that context, mr. Secretary, i think you know for almost three years this committee has been seeking documents regarding debt ceiling Contingency Planning. And information shared with the Justice Department regarding what some call too big to jail. As i think youre aware, almost one year ago, this Committee Subpoenaed documents from treasury. In that time, we have yet to receive the documents. You were ask about this last week in your appearance before the Appropriations Committee. You said, quote, lawyers are working through the document requests, unquote. Mr. Secretary, it has been almost three years for these requests. You also mentioned in your appearance before the Appropriations Committee that you will provide us with, quote unquote, appropriate material. But mr. Secretary with all due respect, article one of the constitution, theres Longstanding Supreme Court precedent that this branch of government has the oversight role. We get to deem what is appropriate for oversight and investigation with all due respect, sir. It is not you. It has everything to do with checks and balances and separation of powers. Thus my first question, as the custodian of records, do you understand our subpoena of may 11th, 2015, imposes a legal obligation on you personally to ensure that the requested records are produced . Mr. Chairman, we recognize the important oversight rule that Congress Plays. We take seriously the responsibility mr. Secretary, the question is, do you understand a personal legal obligation . Is that your understanding . Mr. Chairman, treasury has taken steps to respond to each and every one ill ask you again, mr. Secretary. Do you understand you have a personal legal obligation . If you dont, then i would commend for your study, 2 usc. 192 through 194. And 18 usc 1505. So ill ask you for the last time. Do you understand that you have a personal legal obligation to ensure these requested records are produced . Mr. Chairman, treasurys approach to the committees inquiries have followed the long standing policy set forth by reagan in 1984. Mr. Secretary, youve had three times to answer the question. Ill move on. Has anyone directed you not to comply with this committees subpoena of may 11th, 2015 . Mr. Chairman, just the other day, we responded in detail to the inquiry from this committee my question, mr. Secretary, is has anyone directed you not to comply with this Committee Subpoena of may 11th, 2015 . Its a simple yes or no answer. The letter we sent to the committee indicates, we have been reaching out to the committee, responding third time, mr. Secretary, has anyone directed you not to comply with this committees subpoena of may 11th, 2015 . Mr. Chairman, we have been trying to work with the committee to provide im trying to get you to answer a simple yes or no question. No wonder the American People get outraged. Simple yes or no question. Have you been directed not to comply with the subpoena, yes or no, please, sir . Mr. Chairman, we have been trying to respond to the subpoena. Thats the point im trying to make. Well, for the third time, you didnt answer that question. Next question then. Have you directed anyone at the Treasury Department to withhold documents from this committee . Pursuant to the committees subpoena of may 11th, 2015 . Mr. Chairman, if you would just give me a moment to answer your question. We have been if youll answer the question, mr. Secretary, ill give you a moment for context but we need to start off with a yes or no. Mr. Chairman, with all due respect, these are not yes or no questions. If you want an answer, im happy to give i dont know how much more simple it could be. Have you directed anyone at the Treasury Department to withhold documents from this Committee Pursuant to the Committee Subpoena of may 11th, 2015 . If youll give me a yes or no, mr. Secretary, ill give you a moment for context. At my direction, the Department Staff has been reaching out to the committee. Trying to seek an accommodation. The committee has not followed up with any meetings to try and work through that. Its been three years on some of these document requests. In many cases, we dont even know what the committee is looking for. If i need to provide you with another copy of the subpoena, i would be glad to do it. Are you at least certifying then are you prepared to certify in writing youre in compliance . Because so far, youve failed to do so. You cant tell me youre trying to comply and then not certify youre in compliance. Respectfully, what we suggested, the attorneys should sit down and talk with each other, go through the details. I was being diplomatic at the Appropriations Committee the other day. This committee has not responded to our offers to meet at the attorney level. So weve been trying to be responsive. Mr. Secretary, what do you think would happen to an ordinary citizen, a school teacher, a factory worker, if they decide to if they refuse to comply with the legal subpoena . What to you think would happen to them . Weve been working to comply with the committees request. Mr. Secretary, with all due respect that just doesnt have credibility. It just doesnt have credibility. Ranking members recognized for five minutes. Thank you very much for being here, mr. Chairman. The chairman just talked about the american citizens distrust with government and how angry they are with government. Mr. Secretary, i believe that if theres anger and distrust, its because of the way we conduct ourselves here. And when the secretary of the treasury is battered and disrespected, then i think the American People sees that more as the congress of the United States not being able to work with each other, more than some socalled demand for response to pages that have been sent or questions that have been sent or depositions. As i understand it, weve received over 3,000 pages from the treasury since may 11th, 2015. And as i understand it, there were four more depositions that were issued yesterday. And i want you to know, mr. Secretary, that were not consulted at all by the opposite side of the aisle on these depositions. We dont have the kind of cooperation here in this committee that would lend itself to seeking information from you or any of the other secretaries. This has become a game of gotcha. This has become a game of were going to overwhelm you with subpoenas and questions so that we will be able to say you have not responded. I am hopeful the important issues of the treasury are being worked with every day. We are in a situation where yes our economy is performing and since 2008, we certainly have made advances, but we are concerned about the volatility of the markets and we want you to concentrate on the real issues. I would hope that your office would not be tied down trying to respond to unreasonable request from this committee. I dont think and i dont believe theyre legitimate and i apologize for the way youve been treated here this morning, not being able to answer a question, being interrupted, not accepting that youre willing to have an explanation, and so it should not work that way. And i want to get on with dealing with the real issues that youre confronted with. Since initiating free market reforms in 1978, china has been one of the worlds Fastest Growing economies. Averaging 9. 7 in real domestic product growth. Annually from 1979 to 2015, lifting 600 Million People out of extreme poverty. Chinas economy has slowed. Its real gdp growth was 7. 3 in 2014 and 6. 9 in 2015. And its projected by the imf to fall to 6. 0 by 2017. What are the implications of a slowdown in china for the United States as well as the Global Economy more broadly . Thank you, congresswoman waters. Chinas economy is one of the the two largest economies in the world along with our own. It is not as integrated in the Global Economy in the way ours is in terms of Financial Systems, in terms of the interlocking relationships of those Financial Institutions. But it is a purchaser of vast amount of inputs from around the world. So theres understandably a lot of focus on chinas economy because it has a lot to do with what Global Growth will look like in the future, particularly an emerging economy as it provides so many inputs to china. Chinas in the middle of a reform process that is very important to china and its important to the Global Economy. As they move towards a more market oriented system, its going to be bumpier. Theyll be more volatility. Theyll have to learn how to tolerate some of those disruptions the way those of us more experienced with market economies do. But theyre going to have to stick to the reform path because if they dont if they dont open their market, if they dont make the changes, theyll be left with an overhang of overcapacity that will weight them down and make it so some of the doomsday scenarios would then become much more meaningful risk. I think china has a lot of tools. It has a lot of capacity. The question to me is not the question many have asked is china out of tools. They have 4 trillion of foreign reserves. They have enormous resources within their government to deal with policy. What they need to do is not back away from the reform program. Thank you, mr. Secretary. The chair now recognizes the chairman from michigan. Mr. Huizenga. Thank you, mr. Chairman. Im going to take a slightly different direction on my questioning. Not because i dont believe what the chairman has been saying is extremely important. Im concerned as well about responses of just even simple letters. Ive gotten two dated march 18. One dating back as of last year, like in may. So speed is not exactly been treasurys m. O. Here. But my question on the imf, and you address this a little bit in page three and four of your written testimony starting on page two. The greeks obviously have suffered eurozones highest unemployment rates, 25 , for the past five im sorry, four years. Youth unemployment near 50 . Instead of helping reduce greeks public debt to gdp ratio to 110 as planned, the fund has witnessed the debt to gdp ratio climbed to over 175 despite major restructuring of debt in 2012. Clearly imf involvement has done little to improve the lives of greek citizens in part because greeks leaders have been slow walking reforms for years. Last december, greek Prime Minister tsipras was unapologetic criticizing the funds unconstructive attitude on fiscal and Financial Issues and he indicated the imf should stay out of any future bailout. He and i agree on that one. You actually mention that at the direction of congress, your written testimony, United States champions reforms and the exceptional access lending framework to tighten requirements on debt sustainability. But then the u. S. Led the charge to go against these reforms with inserting new loopholes. Im just curious and confused as to why you would go a bipartisan congressional directive and go against that with the imf and if the greeks dont want the imfs medicine and if the medicine has been so ineffective anyway, why should we insist on giving more taxpayer dollars . Congressman, i think let me start with the reforms of the imf. Very quickly. Yes, please. The reforms removed the provisions that allowed Systemic Risk to cause an exception that would allow lending this issue you describe. The exceptional access remains very important. Its been the way weve seen assistance provided to many important countries. Why would we introduce more loopholes . The imf rules stipulate the country must possess the political and Institutional Capacity to ensure success of an exceptional access loan. Government must be competent, committed to the reforms. The Greek Defense and foreign ministers, im sure youre aware, threatened to flood europe with migrants including potential terrorists if the country didnt get what it wanted in bailout negotiations and the defense minister said, quote if europe leaves us in the crisis, we will flood it with migrants and it will even it will be even worse for berlin if in that wave of millions of economic migrants there will be some jihadists of the Islamic State too. If they, european creditors, strike us, we will strike them. We might have just seen that in brussels today, isnt that true . I think thats a conclusion that i have no basis to comment on and i think we shouldnt jump to statements like i hope not but when youve got the defense minister of greece threatening europe, our nato allies, how in the world can we allow them to even qualify for this . If i can respond to your questions please, quickly. Both on the financial and on the larger set of issues in europe. On the financial side there have been many important reforms enacted in greece over the last year. Im not going to disagree that the process was very bumpy and messy and the whole world was watching it. After an opening set of conversations that was not constructive, the government agrees to settle down and enact more reforms than anyone thought possible. This is principally a european challenge. It has been all along. Its been important to europe to have imf as a partner. So theyve settled down but earlier this year, not last year, this year, weve got the defense minister and others making outrageous comments sir which i still dont understand why you would lead the parade to try to include if i can keep separate the financial and the kind of geopolitical for a moment. Open the financial side, i think the imfs only going to remain involved if theres ability to do review. Which will be based on some debt forgiveness, restructuring, that would be required. If its sustainable, then its consistent with the imf rules. If they do that, that will keep a european commitment together. Why is that important to us . I think at a time of geopolitical instability, it would not be a good thing for europe or for the United States if we were to see real tensions of europe breaking apart again. We see that already. I think this is why im going to be introducing a bill today to try to tighten those loopholes. I would suggest that treasury not go against congress again in a bipartisan manner. You need to work with us in this oversight. So thank you, mr. Chairman. Time of the gentleman has expired. Miss moore, Ranking Member, the Monetary Policy and trade subcommittee. Thank you very much, mr. Chairman. Mr. Secretary, you have indicated that our economy is growing very slowly, at 2 . And of course our colleagues here are fond of reminding us that were 19 trillion in debt of course. We just in the last budget negotiations did another 700 billion in unpaid for tax cuts. Some good, some tax extenders that were not so good. Anyway, theyre all unpaid for. On top of the wars we didnt pay for. And so were now over the next couple of decades 2 trillion more in debt from this policy. I guess what my question is, is i also sit on the budget committee. And the solution to this is sort of more austerity. Lets, you know, lets block medicaid, lets voucherize medicare, lets cut the social services bloc grant. Lets, you know, take the entitlement status away from pell grants and food stamps. And i guess as the secretary of the treasury, i guess im wondering if you think austerity is the solution to our deficit problem. Congresswoman, i think we have to make sure our economy is growing. Part of that means we need a fiscal policy that keeps it going. We also have to take a longterm view and have a sustainable fiscal outlook. If you look at where we started in 2009, there was an economy that was crashing. There was a debt that was skyrocketing and a debt that was out of control growing to over 1 trillion. We brought it under control. Its not down to zero. The deficit is not down to zero. But weve reduced it by three quarters to 2. 5 of gdp. I think if you look at this next tenyear period, we maintain stability and its a foundation to then look at the challenges of how do