This is going to be great fun and I would like to especially say my sincere thanks to Secretary Madeleine Albright. It's a great privilege to have her here. You know, there are many things that you could say about Madeleine Albright and she's set records in every dimension. The one that stands out to me most is that she has five bestseller novels or books. You know, I don't know anybody else in public service that has five bestsellers in the New York review books. It's remarkable, but it's typical of this very broad and grand intellect that has devoted so much of her life to making America's foreign policy better. And I first had a chance to interact with Secretary Albright many years ago when I was just a little staff guy up on the Senate Armed Services Committee and used to hold salons over in Georgetown where you were trying to help people think about better ideas for America's foreign policy. And I've had a chance through little ways to work with and around Secretary Albright for the last 20 years, 25 years. Yeah, I'm very proud to say that Secretary Albright was an alum of CSIS when at one time she was a research assistant to Drs. Big Brzezinski. And at the time there was a question about what was going to be her title. And Dr. Brzezinski said, I think we should call you Empress of Research. But it shows the kind of the affection and respect that they had for each other and continue to have for each other. I must say I've been the great recipient of being in her presence and around her for many years and it's been a real joy. Secretary Albright, while she was Secretary, was quite instrumental in shaping much of our current policy portfolio as it relates to China. And I can remember that she was championing the way that we should help China become a member of the WTO. And this was one of her signature accomplishments when she was Secretary. And it has been since that time she has kept an active both intellectual and business presence working around Americans and Chinese helping our two countries understand each other and find the positive benefits of working with each other. So I think you are the perfect person to keynote this and to bring this conference to its climax. So could I ask you all with your applause to please welcome Secretary of State, Madeline Albright. Thank you very much, John. And there's nothing nicer than to be introduced by a good friend. So thank you and I am delighted to be back at CSIS though this is much grander than when I was Empress. And I want to congratulate the Simon, the Simon Chair and Political Economy Program here at CSIS for putting together such an informative and comprehensive report on China's economic transition, which I understand is the culmination of two years of in-depth study. And this is indeed a critical time for China's development and for U.S.-China relations. So I very much applaud your efforts to probe China's economic decision-making processes and to better educate policymakers and business leaders on the complicated political and economic landscape in China today. And the title of the report is especially apt as I read the papers this morning, the Wall Street Journal about the Chinese Navy and everything that is going on. So as always, well done. As the study notes, after 30 years of rapid historic and by and large successful growth where hundreds of millions of people were lifted out of poverty, China finds itself at a challenging inflection point. Labor is neither as cheap nor abundant as before. An emphasis on low-skill manufacturing has given way for the need to innovate and excess capacity and growing debt have called into question the sustainability of an economic model from which China has benefited for so long. The United States has an awful lot at stake when it comes to China's economic decision-making, which explains why so many in this country are concerned about China's political and economic trajectory. Indeed, today there are growing questions about whether Chinese leaders will be able to take the actions necessary to transform the country from an export-oriented and investment-focused economy into one in which the drivers are consumption and innovation. It's equally unclear how well Chinese leaders will be able to grapple with the host of additional challenges that threaten social stability such as urbanization, serious pollution, rising income inequality and persistent food safety concerns. How China addresses these problems matters deeply to the United States because our economies are more interdependent than ever before. And we stand to benefit greatly if China's economic reforms succeed and we could suffer if China fails or if its rebalanced economy is not open to Chinese and international firms alike. So we need to come to a better understanding of what's happening in China today and how its pursuit of economic reforms will impact the 21st century's most important and complex relationship. And let me repeat it. I do think that this is the 21st century's most important and complex relationship. In my current role as chair of the Albright Stonebridge Group and through my association with various Track 2 initiatives, I travel to China often and frequently participate in dialogues designed to foster greater understanding between our nations. But my own perspective on this subject does extend back several decades to when I first began serving in the United States government and that was late in the 1970s during the middle of the Cold War. I was working in the Carter administration at the National Security Council for Zbigniew Brzezinski who had actually been my professor at Columbia so I tell my students they should be nice to me. But and my job was to convince members of the US Congress to cooperate with the executive branch and this was not an easy assignment even then as now. President Carter as you know had proposed a historic plan to normalize relations between the United States and the People's Republic building on the opening made by President Nixon and Secretary Kissinger. For President Carter's plan to succeed Congress had to agree and in an effort of persuasion I had the privilege of accompanying a congressional delegation led by my previous boss Ed Muskie of Maine. To me the trip felt like a great adventure because for almost 30 years they had been very little contact between our two countries and even though it was a few years after Nixon's visit most of what we knew about each other still came from magazines and history books and much of that information was inaccurate, distorted or just plain wrong. Our lack of familiarity meant that our meetings although friendly were also formal and stiff and both sides were curious about the other and very polite but no one dared to inject humor into the conversations or be able to relax. One of the things when we first arrived in Shanghai I loved the idea of getting up very early in the morning to walk around and what had happened there I had seen everybody in their dark suits, malsuits but I did notice early in the morning that the Chinese had exuberantly colored underwear that was all on the lines in Shanghai. When I returned to Shanghai in my official office I now see that the underwear and colored underwear has been replaced by neon lights but I'll never forget those early walks in the morning. I think one of the things why it was hard for us to understand each other and relax is because we represented vastly different cultures and ideologies and economic systems and we were each unsure about what the other wanted and failed to fully envision where those initial conversations might lead or how soon China might transform. To be fair there was no such thing in those days as a Chinese entrepreneur and few signs of apparent were apparent to us that the leadership in Beijing was already planning for dramatic change. Yet hardly a year passed before Vice Premier Deng Xiaoping came to the United States to share with President Carter his plan to open the Chinese economy, a decision that continues to shape both of our countries and the entire world. As we all know since the beginning of the period of reform and opening up China's economy has grown at a faster rate over a longer span of time than any other in history. Extreme poverty has declined sharply, average life expectancy has more than doubled, illiteracy is vanishing, the middle class has mushroomed and Chinese industrial centers have become magnets for investment. In the process the country has established a host of new connections to the United States and has gradually assumed a more expansive international role. And all this helps to explain why in the late 1990s when I was Secretary of State, I visited China five times in four years. The Chinese Foreign Minister and I had become very good friends but frankly both of us seem to be very bored in our meetings as we sat there with our talking points given to us by our staffs and so finally one of the times I said okay here are my talking points, give me your talking points and let's have a strategic discussion which we did and so I think that because we were able to expand on each other's thinking I think that it was a very helpful kind of process. I have to say the part that was interesting was watching Chinese behavior as it expanded. When I was at the United Nations first it was very hard to get any Chinese to be a part of any discussion in the informal sessions unless it concerned interference in internal affairs. Otherwise the Chinese representative would just sit there and you never knew whether the person was going to vote or not. So I finally gave the Chinese rep a little blue ball so that he could practice raising his hand in order to vote but basically it was a matter of trying to get China involved in international affairs. I do think that what did happen was as our relationship progressed our meetings became far more interesting and so among the things we did discuss and John thanks for mentioning it was about most with China's potential membership in the World Trade Organization. As you may remember the Clinton administration fought hard and successfully to persuade our Congress to authorize permanent normal trade relations and thereby make possible China's entry into the WTO. Ken you had an awful lot to do with all that so we prevailed in part because of the vigorous support we had from the American business community. Together we argued that China's membership would be good for both countries and we were right. It's hard to believe this now but US China trade back in the 1970s was less than American trade with Honduras and when China joined the WTO in 2001 our bilateral trade exceeded 120 billion and today as you all know annual trade is worth over 600 billion dollars. The bilateral relationship that our policymakers and businesses helped nurture all these years is much more complex now. We're no longer creating something new but managing bilateral ties that are well established sometimes rocky but always evolving. So where does our relationship stand today? First it's very much worth noting that both presidents Obama and G have demonstrated their commitment to maintaining strong bilateral ties. The two leaders had a chance for that one-on-one interaction early on at Sunnyland Summit two years ago and shortly after she came to power and have since met several times to discuss issues of importance in our countries and the world. At the APEC Summit in Beijing last November both presidents agreed to a landmark ambitious agreement to curb the effects of climate change with China committing to stop emissions growth by 2030. And this was a huge step forward and a key step in spurring other nations to do the same. As President Obama told President Xi when the United States and China are able to work together effectively the whole world benefits. As in any relationship of this complexity there have been and will continue to be stresses and disagreements about issues ranging from territorial claims in the South China Sea to human rights. But of particular concern to me and of great relevance to today's conversations are the challenges facing our economic relationships right now. The United States has had many longstanding issues with China such as inadequate enforcement of intellectual property rights, investment restrictions, regulatory barriers and licensing problems that have restricted market access for our companies in China. But in addition to these legacy issues U.S. businesses are voicing increasing concerns about a series of actions taken by China in recent months including its enforcement of China's anti-monopoly law, its development of new cyber security regulations and the government's increased support of state-owned enterprises. It's interesting to note that Secretary Liu just in the last 24 hours has been working on the issues to do with some of the cyber security regulations. These measures are changing the mood about China and in the U.S. business community which has historically been the strongest backer of closer U.S. China ties. A recent poll released by the American Chamber of Commerce in China showed that nearly half of U.S. companies surveyed feel less welcome in China now than they did a year ago. Almost 60% felt that foreign firms were being singled out by the Chinese government's recent campaigns. These actions are also shaping perceptions of President Xi who has clearly been the driving force behind these measures. I often think back to a dinner that Xi Jinping hosted for me and other former people when he visited Washington as vice president and heir in, heir apparent in 2012. In our conversation he appeared to be very much attuned to the needs of his domestic constituents and indeed he has since taken on populist themes to enhance his and the party's credibility with Chinese people. But he also appeared eager to establish connections with the United States. He made a big point about telling us about his days in Iowa as an, on an exchange program and he said that he had kept in touch with his hosts and fondly recall the generosity he encountered, his love for Mark Twain and the beauty of Muscatine, Iowa at sunset. Three years later there's no question that President Xi has become China's most powerful leader since Deng Xiaoping. He has already skillfully asserted his control over the direction of China's economy and foreign policy. Xi has also reinforced his authority over the Chinese Communist Party through his anti-corruption campaign and measures such as his fore comprehensive which includes a call for a strict discipline among low and mid-level party officials. Indeed when I visited Beijing last December as part of a dialogue between the Aspen Strategy Group and the Central Party School I was struck by how closely officials adhered to the party line. It was a marked departure from other dialogues I've had in recent years. One was between American, Democratic and Republican political leaders with the International Department of the Chinese Communist Party where we had, first of all I was trying to figure out why they wanted to have the dialogue in the first place but clearly in some effort to figure out how to release some of the pressure at the bottom of the pyramid and there really was much more discussion there to the point where I finally had to say don't tell me about your party system. We don't know whether we have 71.5 million members and nobody registers, nobody goes to party school at which point one of the people in my delegation chairman of the Democratic Party Howard Dean said yes we do know how many people we had because of the great database I established. So, but we did have some back and forth. One would think that the centralization of authority would yield rapid progress on the reform goals Chinese leaders laid out in November 2013 but implementation has been slower than many had expected. And I think that that was the kind of the frustration that many on the American business side feel about the pace of economic reforms. My own impression is that the anti-corruption campaign and other new policies have had such a chilling effect on the Chinese bureaucracy the governance is being disrupted for it is safer to do nothing than make any policy or commercial decision that may be called into question. It isn't only American companies who feel under pressure. In recent months the environment for civil society has also become much more precarious. I'm deeply troubled by the growing number of detentions of advocates and lawyers as well as the tightening of control over foreign and domestic NGOs in China. The ongoing anti-western ideology campaign is also making Chinese entities fearful of partnering with foreign academics or NGOs. And this is extremely hurtful to China's continued growth and development and to achieving President Xi's own goal of creating an innovative society. So it's fair to say that I have some concerns about China's current direction. There are real questions about what will happen to such a top-down political system with its burgeoning middle class when people start to expect more from their government. I'm told that President Xi and other Chinese leaders have studied the fall of the Soviet Union. It struck me recently that they and Vladimir Putin have this in common, none of them want to be Gorbachev. But China is not the Soviet Union or even Russia under Putin. And the relationship between the United States and China is too important for us to even think about not paying enough attention to it or writing it off. President Xi and other Chinese leaders want to put their economy on a stronger footing and to succeed they will need to raise standards and best practices in industries and throughout their economy, develop technical expertise and strengthen transparency and rule of law, not rule by law. The Chinese government knows it can't do all this alone and that it must continue to look to the United States business community for assistance. And American companies can, for example, help improve the safety of China's food production process by sharing best practices on inspection techniques and recall processes. They can help make farming more sustainable with smarter integration of new technologies in the agricultural sector. And they can partner with China to integrate new technologies such as mobile internet, cloud computing and big data with modern manufacturing. There are many compelling examples of areas where American companies can be helpful in creating a stronger, more stable business environment in China. So we have to continue to encourage this interaction because our own well-being is in many ways dependent upon how well Beijing implements necessary economic reforms. But when we see that foreign participant in China's economy are not being treated fairly, we must confront these difficulties head on. For example, the United States has been vocal about its concerns with China's draft counterterrorism law and its cybersecurity provisions which would effectively force many U.S. technology companies out of the Chinese market. And that is a lose-lose proposition for both sides. The bottom line is that both of our countries have an interest in safeguarding security of new information technologies and in the process preventing cyber aggression from becoming an even greater source of neutral suspicion. One thing I've learned about engaging with China or any other country for that matter is that leaders cannot be bullied into acting against their own perceived self-interests. We can, however, appeal to the pragmatism of its leaders to find areas where our interests coincide. And I expect that will be the Obama administration's focus on the run-up to President Xi's visit to Washington this fall. I know from my own years in government that leaders in both Washington and Beijing must cope with enormous pressures. Some of these pressures are political and some economic and some domestic and some global. All are inherent in the challenge of trying to govern countries of hundreds of millions of people in an era of technological revolution, social mobility, and ideological uncertainty. We see this growing pressure at the bottom of the pyramid today in China. And President Xi's added dilemma is that many of the most important systemic reforms, particularly those that would increase the role of market forces and increase competition in the economy, may slow growth all at a time when the economy already has begun to show signs of flagging momentum. The temptation in all countries will always be strong to find a foreign explanation for problems at home. Thus, deflecting immediate blame but also making diplomacy more complicated. And this is especially the case when a relationship is as vast and has as many dimensions as that between the United States and China. When I was Secretary of State, observers spent an awful lot of time debating how best to describe the connection between our two countries. Some called it our relationship complex while others preferred multifaceted because it had more syllables. Some said that we should be called strategic partners and others thought strategic competitors would be a more accurate term. My own view is that such labels are so dependent on particular circumstances that they can often be more misleading than helpful. Terms like competitors can also encourage a zero-sum view of U.S.-China relations, which I think is counterproductive as we've seen in some of the debate over the Asian Infrastructure Development Bank. The truth is that our two countries' relations are far warmer, deeper, and more productive than anyone would have dared to predict a quarter of a century ago. We've made amazing progress and at the same time, our governments, businesses, and civil society organizations still have moments of irritation and disagreement. And there's no doubt that we are in one of those moments right now. The good news is that we have learned through experience to prevent these disagreements from causing a rupture in ties. The bad news is that sources of potential strain will continue to appear at unpredictable moments. The one thing we can be sure about is that our relationship is and will remain the most significant in the world. And that means that we have to persist in the task of understanding and adjusting to each other. We have to make this relationship work and we have to get it right. And that this does mean that we will always, it does not mean that we will always agree because we won't. It does not mean that either country must abandon its interests or retreat from cherished values because that will not be necessary and certainly not viable. It does mean that we should endeavor to identify projects on which we can join forces and manage our differences so that they become less and less frequent over time. And to that end, our leaders are more likely to act wisely if the American and Chinese people continue to learn about each other, communicate with each other and make the effort to better understand one another. And I have to say this conference and this report is an amazing contribution to that as I look through the text and the recommendations. So let me thank you once again for inviting me and I now look forward to answering your questions which I will be able to do since I'm no longer in the government. I'll move this out of the way so you all can see.  And I think it's really nice to have name tags so you know which one is Madeleine already and which one is John Henry. I do get us my step John. That's exactly right, but not intellectually. Let me just first start. One of your bestselling books was entitled Read My Pins. And so tell us about the broach you have on right now. There's always a special message with Madeleine. This is very important. First of all, let me say how the whole thing started with Remind. I was up at the United Nations and my, as an instructor, ambassador to make sure that the sanctions stayed on Iraq and on Saddam Hussein. So it was a series of sanctions so they kept coming due all the time. And I, my instructions were to say perfectly terrible things about Saddam Hussein which he deserved. He'd invaded Kuwait. So finally a poem appeared in the papers in Baghdad comparing me to many things but among them an unparalleled serpent. And since I had a snake pin I wore it during a rock thing so that's how it all started. Anyway, one of the things I'm very careful about is the Chinese calendar and the year of whatever. So we have just finished. Some of the ones are more fun to wear snakes. And so this is the year of some animal that I can't determine. It's kind of a sheep or a goat with horns. So that's what it is. So she has the ram. I mean it just, we ought to get it started on a right and light note. Let me start, if I may, just with how you ended really when you said that we really need to find ways where we can work together. We need to find projects, things we can do together. Recently we stubbed our toe I think a little bit on this Asia infrastructure bank. What are your thoughts about that? Well, I think we really did in a number of different ways. First of all, this has some history in that there has been question not just from the Chinese but others that the United States has been too dominant in the World Bank. And the attempt had been, and there are proposals before Congress to try to adjust some of the voting in the World Bank and the IMF in some way to try to get more equitable voting shares. And that has been held up by Congress. So I think that there has been a certain amount of frustration about that. And then frankly I think we miscalculated. In terms of that other countries also wanted to be a part of the Asian, the Chinese initiative. And all of a sudden everybody wants to be in it. And so I would hope that we could recapture some kind of sense of cooperation here and work with the bank. And see, and there has, I think, I understand, I hope anyway, that there's some discussion about how that bank and the World Bank can cooperate. But I think if I, this is not entirely, there are those who have felt that the Chinese want to use the bank in order to push their own economic theories and policies throughout the world and use it as a way of entering other countries. I think that may be one of the motives but the bottom line is I think we screwed up. I think that we need it, we should not have done it this way. Well, one of your themes through your speech, and I thought your speech was terrific, was that China for its own good needs to pursue more of a rule of law, more transparency. It strikes me that our involvement with the bank would have helped us make those cases from the inside rather than be on the outside and hold ourselves away. Absolutely, and that is the hope now that we don't see it as some kind of a Chinese power grab but an opportunity for us to be able to put forward ideas on transparency, on some of the regulatory questions and deal with real problems out there where loans would be made in countries where we could have an influence on institution building and rule of law. And it shouldn't be a substitute for trying to reform the IMF.  That's for sure. Let me ask Secretary, because you several times spoke about our mutual suspicions and the tendency for get into rivalries and that sort of thing. We tend to read each other fundamentally wrong in some ways. I mean, China, I think some people in China feel they can push America out of Asia. We know that's not going to be the case. Nobody in the rest of Asia wants us out. Some people in America want to contain China. That's not possible. We know that's not going to work. We know that. But what's going to be our relationship with the rest of Asia as we sort out our bilateral relationship? How do we design a system where we can have a relationship with China, but brings in the rest of Asia when it seems that that's kind of the pivot point here? I think you put your finger on what is a basic problem here, which is that the way things have been viewed is that there's China trying to get friends and allies and us trying to get friends and allies. And that we are not, that we're operating in parallel lanes and not really looking at ways that we can cooperate. I think that in both countries there are those forces. I think we always, we know we're not monolithic, but I think we also have to understand that there are a variety of forces in China. And there are those who would like to make clear that the U.S. is trying to contain China. They have, I would say, a peculiar relationship with our military that wants to make clear that we need more military so that we can compete with them, not contain them, but compete with them. And so I think that there are forces on both sides that want to show that we have to be strong in order not to be consumed by the other one. And there definitely is a competitive aspect to that. The part that I think gets more complicated is in the trade relationship, for instance, where I think TTP is a very good agreement with 11 countries there, but China is not one of them. And at the same time, the Chinese are creating their own economic package in terms of and trying to figure out how we compete with each other when frankly there ought to be some way to bring this together and some of this has to do with the fact that there is no real structure for how Asia, East and South and East Asia are run. Having just spent a lot of time with NATO and various European organizations, there's nothing really comparable, comfortable in this region. But I think one of the things that makes it really difficult is that our allies, the Japanese and the South Koreans, are not viewed very well in China and vice versa. And certainly, anti-Japanese feeling is rampant in China and so it makes somehow bringing all this together a little bit more difficult. I do think one of the things that I've always said, as I said, I've just dealt with Europeans and they are very irritated at our rebalancing to Asia and feel that we have abandoned them. And the Asians believe that we are there now to contain them. Clearly, the way that I think I have stated all along, the United States is not a monogamous country. We are both Atlantic and Pacific power and we belong in both places and we need partners in both places. I felt that there's a bit of a tension in our government's approach on TTIP. I strongly support TTIP. I think it's a very good thing. But as you said, TTIP can't work if it's meant to exclude China, that it has to be broadened and so that ultimately China becomes a member of it. Yet at the same time we're saying that the TTIP is important because if we don't define the rules, China defines the rules. So there's a tension here. How do you think about this? Well, I think that I don't think the latter should have been stated, frankly, and was kind of irritating to the Chinese for a good reason. I think that it would be more useful for us all to be together in TTIP in a way because part of what I said in my remarks and you said earlier, one of the reasons we wanted them, the Chinese and the WTO, was that there was kind of the sense, first of all, that we didn't want to pull up the plant every year to see if it was growing to see about having trade with the Chinese, but also with the hope that international regulations and international pressure would in fact be an adjustment generally to the way they operated. So being a part of a larger economic system in which there are countries with different trading rules, more alike to ours, I think would be very helpful. I would not have framed it as saying, we have to do this so the Chinese aren't the ones who make the rules. I think we have to learn to figure out how to talk to the Chinese. And one of the things that in the last, I mentioned this Aspen strategy meeting where we just were and one of the people there was asked, what word would you, if you had to use one word to describe how Americans talk to the Chinese, what would it be? And this person said condescending. And I think that we have to be very, this is a major power. I now stated three times in my remarks the most important power. It has to be done in a way where it is viewed in a sense of parody and respect. Do you see then a, should we start now thinking about how TTIP should be expanded so that there is a pathway for China to be brought in? I think it wouldn't hurt. How should we do that? Well, the other thing that we are doing is negotiating a bilateral investment treaty a bit with them. And I think that's another method to try to straighten out some rules. But it isn't easy. I mean, the Chinese have complaints about us to do with how difficult access to the United States is. I think they overestimate the importance of CFIUS and they see it as the method that we keep everybody out when in fact it doesn't deal with, it deals with national security issues and mostly with acquisitions, mergers and acquisitions. But it's viewed as kind of a major barrier. And so I think there's just part of a number of misunderstandings that we have in terms of our relationship with the Chinese. Several points in your speech. You talked about tension inside China right now. Xi Jinping very powerful pursuing an anti-corruption campaign. But you also say it also might be contributing to the slowing down of the economy and the holding back. I mean, this obviously is a very serious dilemma for President Xi. I think that this is probably true of every country when you have a brand new leader who makes massive speeches and seems to have acquired a great deal of power and you've got a country, any country, everything that's ever been written about bureaucracies is true. But especially in a country that has a history of a variety of bureaucratic systems, I think that people are nervous. And they don't quite know, I think they're beginning to see that some, that Xi Jinping is using what is a very popular anti-corruption campaign because there really was a lot of corruption to also get rid of people that he doesn't like. And so I think there is this kind of wait and see. And so our experience, and as I said, I go there frequently, is that things are just slow and that people will say, on the anti-monopoly legislation, for instance, they will say, well, this isn't just against you. It's our own, we're worried about monopolies in our own country. And then you talk to somebody that's really in charge of it and they say, well, you know, we're trying to figure out what the rule really is and is it our office that worries about this or somebody else's? And I do think that bureaucracies have a tendency to keep their head down. So it's slow things, there's the normal kind of slowing down with a new leader and trying to grasp who is who. And then I think there is a certain amount of fear going on. What is happening is this is a re-collecting a lot of the power of the Communist Party and authoritarian. That's why when I say rule by law is very different than rule of law. And when China economically just exploded, it was when the heavy bureaucratic hand was lightened and allowed the creativity, remarkable creativity of Chinese to blossom. But in the last several years, there's been more of a shift towards championing of state enterprises and big entities. And yet there's still this desire to be an entrepreneurial society. This strikes me that this is a bit of contradiction. Well, I find it fascinating because as a political scientist, there's certain verities that one has learned in my case through endless years of being a student, Empress of Research. And so the bottom line is one of the things that you learn is if you create a middle class, that a middle class will wanna make some demands on the political system. What has really happened in China, even though there continues to be a huge division between the rich and the poor in a communist country, there is a middle class. And that middle class in some ways has been not as politically active as one might imagine. For instance, the contrast with South Korea that did develop a middle class and change the system of government there. Partially it is because there is a way of people having been satisfied by a lot of consumer goods and being able to have a better life and being able to travel. But what has happened is that there is a limit on, I don't understand how they're doing this, frankly, creating this class and yet controlling them. And the other part is you can't have innovation if you don't have information and the capability of really linking up with those that are innovating. So I have found it endlessly interesting to study and read about China. What they have done is allow a certain amount of freedom of information domestically, but they can't connect with all the internet and stuff externally. And so at some point they will become behind. There's no way to innovate if you can't really have access to all the things that are going on. What it has done, though, and this they are good at, is actually at economic espionage. That is what we're nervous about in terms of people just kind of, when people talk about cybersecurity, a lot of it has to do with economic espionage. We have to be careful about that. Okay, colleagues, we've, by the way, we're going to offer a light lunch if anybody wants to stay, it'll be outside. The secretary is gonna have to leave in about seven minutes. And so we're gonna have a very brief period for some questions. So let me just, if you take right back here in the corner, we've got a microphone coming to you from behind. David, you'll be next. Barry Wood, RTHK in Hong Kong. Madam Secretary, there's an irony, it seems, that the United States was the principal advocate of the reforms in the IMF that would have given the Chinese and others more say. Why, in your view, has the Obama administration and the business community failed to energetically fight for these reforms in the Congress? It is my belief that they have been trying to energetically fight, but nobody is energetically listening. And that there are certain things that they do not, I mean, there are issues in a whole bunch of things like this where there have been the economic structures, I'm talking about Ex-Im Bank, et cetera, where there need to be some adjustments and changes, and it just has not been a very receptive audience. And I think partially, especially on the IMF, there is kind of this sense that we have the power, we have the money, I mean, the IMF is not run by an American, the World Bank is, but I do think that there needed to be some redistribution and people are concerned, frankly, that we will lose the influence. And that there are, on the Hill, those who wanna make sure that America is always out there before, not seeing the larger picture where we would be better off. We don't have to run everything all ourselves. But I think it is a, I had spent time on the Hill. I've spent time in the executive branch. I have been in the executive branch when the party on the Hill was the opposing one. It's hard work, but you have to do it, but the opposing party has to listen. Believe it or not, I was just going over some speeches that I have to give and some interviews. I spent a lot of time with Jesse Helms, not the most pleasant moments of my life, but the bottom line is it had to be done and I think that that's what the other side has to also see the issues clearly. Brother Sadney. David Sadney, a non-resident here at CSIS. I would like your comments on one of the recommendations in the report that I found most practical, which was dealing with level of relationships. The report points out that the U.S. cabinet level members tend to get trapped in meeting their counterpart, so-called ministers, when the actual power resides at higher levels at state counselors and vice-premiers and the report very strongly urges that we try and change that, but it's very hard to change established patterns. So do you agree with that recommendation and if so, do you have any recommendations for your successors on how to break through to the decision-making levels in China? I think it is very hard, but let me just say this. One of the things that happens is having been a minister that once the people from the other side want to only meet with your president, it kind of denatures what you can do as a minister. So I do think there is a matter of having some kind of counterparts that you deal with and that's why the division of labor, I think it's actually a good recommendation, but it has its unintended consequences, which means that the foreign minister is not going to want to talk to the secretary of state and so I think there has to be some way that you talk with your counterpart and then try to establish higher relations or relations that take place. I mean the strategic and economic dialogue, I think creates a very good place and then the whole commercial, those dialogues I think in some ways need to be made even more important because they are really working, but you do have to get to the top, there's no question, but you can't decide you're not gonna meet with the ministers. Right down here, if we could run the mic real quick, we'll get this and we probably can sneak this in as our last question. Thank you, Paula Stern. Madam Secretary, I thought your comments, particularly in comparing NATO and our relations with our NATO countries, with the building that we're trying to do in the Pacific vis-a-vis China, yet at the same time we've got the issues of Japan and Korea vis-a-vis China being so fractious. So I'm wondering if you have a suggestion of how the US strategically knits this more effectively so that we can have a very positive, more constructive Pacific relationship. Well, first of all, I often tell people, I went to college at some time between the invention of the iPad and the discovery of fire. There were different organizations in our alphabet soup. One of them was CETO, and there were different ways that we were looking at some of the post-World War II and Cold War structures. I think there have been, there are kind of embryonic organizations, ASEAN and a variety of different ways. There have been discussions about creating some larger infrastructure. Six party talks, different ways that, I think it would be very useful, but very hard to do and primarily, and I know people never liked this comparison, is the way that Japan is viewed. Germany was not in everything at the beginning, but at least Germany behaved differently, at least those that were kept waiting for an apology thought so. I have been stunned by the anti, stunned is the only word in the anti-Japanese feeling and making it very hard to kind of, since Japan is our ally, of how to make this work. One hopes that there is a way that Abe economics might press them to do something a little bit different, but until that has worked out, I think it makes it very hard. I do think there should be some attempt to try to get TTP and the Chinese grouping, maybe relations between the two groups at the beginning or use the bit in some way to get more, but I've been in ASEAN meetings, I've been or APEC meetings and it's just, they're the seminal aspects of some kind of organization, but my own sense is until the Japanese issue is dealt with in some way, or in South Korea, I've been in meetings there, it's unbelievable what they say about the Japanese. So I think that this is one of the big stumbling blocks in all of this. Colleagues, I mean, we've all been given a great compliment by the way that Secretary Albright has spoken with us today. She's spoken with candor and energy, honesty, great conviction. It's been a privilege to hear. Would you all with your applause, please thank. Thank you very much. Thank you.


All right, so first things first, um, how did you do today? Trox and, um, sorry, I'm not going, let me turn down my volume. That's okay, I turned you up because you were really low. Oh, okay. And I just caught a really poor fill, like it was terrible. I got in at 1927 and you called it at, like, 1970. Wait a minute, the first, no, that was the same. The second call, then, was, no, because I have, I'm looking at my orders, so my open price for the first one was, oh, you, you are right, but the first one was right at 20 bucks and where before it broke, there's no way you could have gotten filled at 1925 even if you had a horrible fill. The very, very first one, or didn't you do that one? No, I did do that one and I got filled at 1927. Okay, wait a minute, let's go over it. Okay. This trade right here at 931, you did this trade here and got filled at 1925, you couldn't have. No, you are correct. Oh, okay. I missed that one and then you called it again and I got in the second call. Okay, so that one you did, okay, fine. All right, so you did that one, got filled poorly. Anyways, then what'd you do? So I went ahead and put my stop in and I do have to confess I put it in about five cents lower than you called it. And? And I got stopped out. So I lost 223, my risk was 200, so there's a little bit of room there. So this one here, okay, just hold on one second. So you got a bad fill in this one, but it went down, broke down, broke down, broke down. Where did you, where did you have the stop? I put it, it was five cents lower than how you called it and that's why I got stopped out because I know you did not get stopped out. Oh my God, you literally must have missed it by pennies. No, seriously. Seriously. I put it a teeny bit lower because my fill was so bad. Yeah, yeah, yeah. But I mean, at that point, it's like, do you know what I'm saying? The best thing to, like if this ever happens to you again, just note to self, the better than changing the stop would be to change your share size because that worked and went into the money and you were profitable, maybe not a lot because of the fill was bad, but you could have shaved off 100 shares or something. Take some of your risk off, book some of the money, put the stop at the right place. Okay, okay. That's how I would have done that. And I usually always, I'm such a stickler for, I always put my stops exactly where you say. Well, this was a crazy thing today, the way that it traded it pretty much and it was better in the afternoon, but it was crazy in the morning. But either way, next time that happens, which a lot of times, you know, you get it late or I call it either, even if you didn't get it at the right time I called it, whatever, if you take normal size just to get it, get the stop and at the right place, realize that you had a bad fill or perhaps you oversize yourself, then it went right positive. Just get out with five cents, 10 cents, 20 cents, whatever, take some off and put the stop at the right place because you're better off doing that than doing what you did and then taking a loss when the trade goes on to work. Exactly. Okay. Okay. So then what did you do after that? So then when you called it again, I got back in. Oh, I'm not sure exactly where. Maybe after noon train or again in the morning you did it. It was your third one in the morning. It was right around here, around this timing here in the five minute, right a little bit after 10 o'clock. Yes. Then what'd you do? So I got in and I went a little bit less with my shares just because I've had a lot of stop losses lately. Okay, which we'll go over next, but let's do this one here. So I got in and then I was positive and I got out when you got out. So I made $64 back to lessen the pain of the first loss. I wasn't positive for the day, but I definitely lessened the pain of it. All right, well then that was so, okay. So then were you up on the day or down on the day then? I was down on the day. Okay. And then when I called the afternoon trade, did you do that or you didn't do it? I did not. I have to usually leave the house at 8.30. Okay. So I can't do the afternoon trades unfortunately. I wish I could. Well, if you had just, I just wanted you guys to get in again. Well, I ended up sending out an email to do it on the 30 minute, which is rare. But anyways, if you did it on the 30, if you had done it, you would have had plenty of time by the time I sent the email. Anyways, it dropped, dropped, dropped. Where do you think you would have gotten out of it if you had shorted it right around this area here? If I shorted it there. Yeah. I don't know. It's hard to say how you would have managed it. I'm sorry. Say that again. I'm wondering how you would have managed this. So if I shorted it there. Where would you have put the stop and also where would you have gotten out? Okay. So I put my stop probably, can you see my cursor or no? No, I can't see yours. I don't know if you can do two share screens. So you just tell me the time or the price point. I would probably, I think I'm looking at right, like 1980, a little bit above 1980. Okay. And then where would you have gotten out? And I would probably have gotten out, I don't know, it kind of broke the base there. So I may have held onto it a little bit. You think you would have held it into the clothes? Just because it looks to me like it kind of broke that base, but what time was this? It fell, it fell, it fell into two o'clock and then it fell into the clothes. So it fell all afternoon after it broke. I'm just wondering. I'm just trying to figure out how much you would have made then to turn you around then to be positive on the day if you'd shorted it here, put the stop where you said, and then I'm asking you how you would have made it to the trade. I probably would have gotten out after a good push down. Okay. Because I wouldn't want it to flip on me, which would probably make me a little bit positive for the day. Okay. Instead of negative. So looking back at today, what do you think if you had to do today over, what would you have done differently? I would have put my stop loss exactly where you said because then I would have been stopped out. Okay. And as far as getting a poor fill, there's nothing you could do about that. There's nothing I can do about that. And I was happy with my second trade in it. I wouldn't, you know, I risked a little bit less. Just because last week I didn't have a great week and yesterday I didn't have a good day. So it was just like, I didn't want to, you know, put a full trade on the table. I don't know. I guess it would have been the stop loss would have been different. Okay. All right. So then if that had been the case, you would have been up today, right? Yes. Yes, I would have been. Okay. All right. So tomorrow you're going to put the stop loss where I say, and if you end up getting a bad fill, take some out, fix it, put the stop where it's supposed to be. Okay. All right. Go ahead. Oh, I don't know if you have time for other questions. Yeah. I just wanted to see what you did today because this just happened. I know. Yeah. It was, that was a wild one. It was absolutely wild and crazy. Everybody, everybody did a million different things than this today. And I don't normally call an afternoon trade, but I felt so certain that number one some people wanted another play in it and I really thought that it would close in or the lows and it did. And I said 1850 and that, and it just ran out of date went to 1850 if it hadn't ran out of time today would have broken that number.  But anyways, the point is though that it's, it sometimes these ones are whippier than we think. And I was not familiar with the stock. So it is what it is. But if you know the gap is good and you still have conviction, which I did still have conviction in it. You can retake it. But managing it correctly is something that not everybody does. I mean, some people in the room are horrible at that. I mean, I'm not, you're not bad at it. It's just that you were trying to be tight today for the fill. But some people just are terrible at managing trades. And it is important because you could get something, you could short something like this today and end up losing money. And that's just poor management because this had so many setups in it today. And even though it was wild and would be in the morning after we all realized that, then it was like, okay, fine. Now I know this thing is like this. And then you got to adjust accordingly. Give it more room, give it more time, scalp out of it faster, take it more than once, whatever. Do you know what I'm saying? Once you realize something is a certain way, you're saying, okay, now I'm going to adjust today because this thing is wild. I'm not going to hold it to the full on target because it could bounce back huge and I can retake it again or whatever. Or I'm going to give it more of a wider of a stop. I mean, you have to adjust accordingly when things act weird or crazy. I did, it sounded like though you had someone in the room that shorted it like three times. The one guy did it four times. But I mean, you had to literally take it, put the stop in, have your hand in the button.  I mean, what can I say? I really, really like the gap. But by that point, I was aware that it was crazy. It's neither here nor there because I gave the afternoon trade. It's just unfortunate you couldn't do it. But I know some people did it because they emailed me. So, but what happens is sometimes something acts like really, really crazy in the morning and then people just don't even want to do it at all. But they're really, you know, this was good today. I, in fact, I didn't look at the AVAV. That was the other one that worked. But I don't know if that set up in the afternoon. Oh, it did. But this was crappy. This didn't hold, broke, held a low. Wow, that was not exactly at all what I wanted to say. OK, all right, so we can go over the ones from last week. However, is there anything specific though that in a bigger picture that you want to go over in a bigger, bigger picture before we talk about last week or? I'm just trying to think like, I think I just had a bad week last week. Because you said you were doing good in the email. Yeah, I was doing well. Like, I even had like 10 days straight with profit. OK. And I, my account was up from like 9,000 to like up 1,300 from there. And now I'm down to 8,000. OK. I just lost a lot last week. And then my first days this week were negative. And so it's kind of like, now I'm in panic mode. And I don't want to be. OK. But I don't want to lose too much money in my account. All right, but that's why you have to follow things like today where I say to put the stop. So you've got to be hardline now, Thursday and Friday. Boom, because today you should be profitable. Exactly. So anyway, it's OK. Yeah, I think I'm sizing right. I'm risking $200 per trade. And I'm able to take two trades if I need to. And yeah, I felt like I was pretty confident in doing well until the last two weeks. And I don't know why that is. OK, so the last two weeks ago was the Thanksgiving. I was closed. Did you trade alone? I think I actually had, I can look at my calendar. I think I actually did trade alone maybe one day. And I took a profit. And I even feel like when I trade alone, I feel like I can see what's happening. Like I feel kind of confident, not too confident, because I'm so new. And I don't put a lot down when I trade alone. Well, that's good. Yeah, let's see where is my trade log. So you traded alone, and you made money. That was good. OK, so where did things start to go wrong, that then where was the first one that went wrong for you? OK, let me pull up. I'm just a click away from this. But that's great that you can do it on your own. And again, a holiday week, it's touch and go. But I mean, there might have been stuff to do that week. I didn't really, I didn't really honestly didn't even look at anything in the mornings. Let's see, what was the date? Last week was the end of the month of November. And then the beginning of December. Friday was nothing last week. Did you do something Friday? Friday was nothing. So let's see. Thursday, I was out. What did you do Thursday? Thursday, well, da, da, da, da, da. Wait, so Friday was nothing. Thursday was BKS, and that was negative 347. Now, I thought Gyro said there was a good day Thursday. What happened? He was calling BKS. OK, let me look. And I wish I took notes on it because I can't remember exactly what happened. Did it work or not? Obviously, it didn't work because I got stopped out. BKS Thursday was the 30th. Yes, he called it. I don't think he, I know he didn't trade it himself. OK. Or maybe he did, and he got stopped out as well. I can't remember. And then he called the spider. And I just can't do a lot of volume in the spider. So I made, like, 10 bucks. Wednesday, I don't think I logged a trade. Or I forgot to put it in Tuesday. Oh, no, Thursday, that was Thursday was my day. Thursday was no. Thursday, I called the spy and BKS. And I didn't get BKS. He did Wednesday. What was Wednesday? And that's right. I didn't do the BKS, but I called it. And some people did it, and some people didn't get it. I called the spy. That was a great call. You didn't do it? Oh, just because I feel like I can't do a lot of volume in that one because it's so expensive. But I mean, you may not be able to take $200 risk, but you didn't do anything then, even 100 shares. No, I did. But I think I had to literally go out the door to work. And so it was just I kind of had to just shut down my platform. OK, so then did you make money on that day or not? No, I was down 347. And I obviously sized. I think I sized BKS wrong. You must have. Because I was going to say, if you made money in the spy and you're risking $200, how did you lose? No, I didn't risk $200 in the spider. I think I did a lower risk in the spider. But how did you lose 347 in BKS? Because I think it was last week I was going to start risking more. And that's when I had a really bad week because I was going to up my risk to $300 a trade. Where did you why did you decide to do that? Because I was feeling confident. So you were feeling confident that all of a sudden you started losing streak when you upped your risk. Exactly. OK, all right, so rewind. OK, so that's pretty much that. So now I'm back to $200, and maybe I should even bring it down lower to $100 a trade for a while. No, no, you don't have to do that because you were confident doing $200. You clearly, clearly were. All right, so then that was that day. So you sized yourself. But do you see here, you would have had a positive day if you would have done the spy trade with the correct size, even though BKS lost, even with a $300 risk. You would have. So you didn't size yourself the same. And it's OK if it's a little bit off. I mean, because I'm not exact, exact, exact every day because I'm just trying to get it, and I kind of try to look at my sizing like $2,200, $500, whatever. But honest to goodness, that was another mistake right there because you did not size the second trade, which happened to work correctly and was a huge trade. You would have been positive on the day. Not only would you have come back the loss from BKS, you would have been positive. Now, I'm always trying to not use my full buying power. And why? That's a question I have for you. I feel like I shouldn't use all my buying power because it's too risky. So I always try to stay around $25,000, but I have $90,000 buying power. What do you mean too risky? I don't. Honestly, it's my boyfriend. He says you shouldn't be risking your full amount of buying power. Well, first of all, you have margin. So even if you risk the full amount of buying power, what does that have to do with anything? If you have a stop-in, if your risk is $200 or $300, that's what you're going to lose when you get stopped out, as long as you have a limit order stop-in. Unless I don't know if you're at a retail accounting for the prop account, if they said something to you about it, what kind of place are you at? No, no, they did not. This is something that I've created in my own head. And so it is OK to use the buying power, then, as long as you have your stop-loss in. I can't see one negative reason what is wrong with using margin when you're day trading. And if you want to max out your buying power, I've done that before. When I had small accounts, I've done it when I've had large accounts. I mean, the buying power margin is completely different than your risk per trade. You understand that, right? I do. I do understand that, because if the stop-loss is in, you're protected. That's right.  And as long as that stop is hit, or you take the trade out before 4 o'clock, which is up to you, then you're not going to be holding that trade overnight. And by the way, even if you held it overnight and you had a margin account, it would be 2 to 1. It still even wouldn't be full-on, but I still wouldn't do that because somebody could gap against you overnight in the wrong direction. I would never hold overnight, ever. But theoretically, you even have margin overnight. I mean, in most accounts, but it will vary whether or not you have a prop account or a retail account. But I think that that's the philosophy, maybe, that's going on with your, maybe you got to explain that to your boyfriend or something, how you use stops and that you manage your trades and you're out every day before 4 or something like that. OK. And so, yeah, therefore, I probably would have taken the full size and spider then, risking $200. I mean, it's not like we're doing this every day, these expensive ones. But you know, you don't want to miss them because then it's something like that. If it's going to get in your head that you're really upset that you took a loss on the day when it wasn't necessary because you did two trades and one worked really well, then, you know, I think that it's something that you have to decide yourself. But I don't see any problem with using your full buying power if you need it once in a while. OK. That's what it's there for. That's what it's there for. Otherwise, I mean, otherwise, and everybody would have to have an excess of their BP all the time.  It's like you have that money there. Then part of that money isn't working for you at all. OK. Now, I've been using just the market orders to get in and out. I know I think you use limit orders. Every broker is different depending on the broker I found where I've traded previously as far as the fills and also the ECNs I use. So I would play around with it if you're getting poor fills to start doing limit orders or change the ECN. The ECN is like ARCA. Right. What are you using to get in? ARCA. ARCA is expensive, but I usually do get a good fill. Is that who you're today with that fill? Because I'm surprised on that. Yeah. Let me see. Now let me double check. Usually the free one sometimes you don't get great fills. But ARCA, you're paying for that. Try night. Maybe night if you have it. What did you say? Night, N-I-T-E, if you have that one. OK. I'm with TurboTik, so I don't know what they offer. Let's go and look at the list or email the broker about the list. OK.  If they don't have one in place for you, you can do that yourself. And so that might help you too. And maybe your boyfriend feel better about it. In other words, you say, I'm not going to lose any more than $1,000 a day. And they put in a stop on your account. Maybe that would make you feel better as far as maxing out your BP. Because for example, the spy, if you had taken the trade, it went up immediately and it never looked back. And it ran up. So you would have never been down. But if you were worried about something like that, you could put in a stop where it would take you out at a certain amount on your whole entire account of the day. Do you know what I'm saying? For discipline reasons. So that's something else. If they don't have a stop in for you, you could make up your own and say, put this in. OK, yeah, I think they have me at 500 right now. All right. OK, well, then they have one. So tell your boyfriend that. And he'll know better about it, yeah. So basically, if something dropped off, if the spider dropped off the planet, it would have gotten me out. They're going to take you out. Yeah, they're going to take you out of the trades, yeah. That must be all electronic, right? They have risk managers, yes. It's set up in your account because everybody's is different. And then I did have, I've been trying to, I know when you rate your gaps, I try to rate the same gaps every night. OK. And to see if I'm on with your numbers. OK. And I'm usually one off. Well, that's OK. We can go over that. But let's really quick go back. OK, so that was Thursday. You should have been positive. Wednesday, what happened with, that was the day that Jaira ran the round. I'm trying to figure out where you turned the corner here that you had a bad week last week. So Thursday, you should have been up. Wednesday, what happened? Wednesday, I must, I forgot to log it. Wednesday, I... I thought he said there was a good call in the room, but I don't remember now. I don't, I might have, what do you have for Tuesday? I have ADSK for Tuesday and Monday. Oh, ADSK was Wednesday. ADSK was Wednesday. ADSK was a good one. You didn't do that? I, OK. Monday was nothing. Tuesday was Momo. So ADSK was Tuesday. Yeah, that was great. I sent out the email the night before. I said, I said, look at it. I said, this is good. So that was the one that he called and he didn't trade. And I just didn't, I think it was kind of like how he started off the day. He just said, oh, I'm just kind of out of it. I'm not feeling that great. And so it kind of didn't give me confidence in him. But I sent the email out at night. And I will try to continue to do that. Did you listen to my video? I didn't, I didn't get that email. Oh, I wish I had. I wish I had. No, I sent an email the night before to the room. Here, you're on the list. Let me just look at it. No, I'm sure, I'm sure. I get so many emails, Melissa. I'm sure it just got lost. I sent it out Tuesday night because I thought I was going to be running the room. And then they moved up the taping. And you could hear it in my voice. And I was like, oh my gosh, this is going to work. And I hadn't even rated it. And I just knew. So anyways, that, but even still, OK, you could have rated it yourself and looked at it yourself. You didn't want to do that because of the price point or what? No, I think I was fine with it. I was just, I was trying to follow his lead. And he wasn't in it. And I ended up getting in it. And I made $40 and then I got out. OK, well, you were positive. So that was positive. Positive. OK, so you should have been confident to do that yourself, though, because of the fact that he did say it was good. And if you traded the previous week alone, you said you were feeling good doing stuff on your own. I'm not sure why you were hesitant with this one, unless it was the price point. I think I was just trying to follow his lead. OK, so what did you do with it? Where did you get it? Do you remember? I don't. I don't. I need to. Did you do it on the one minute? Yes. Looking at this chart here, though, you don't remember where you took it? Oh, wait, sorry. I have my trade thing over you. One sec. One minute. Get what he called. I'm saying, look at this here. Where would you have done it? Where did you do it? If you're just looking and you're trading by yourself. OK, I'm not. Where did it open for the day? So I have it right in here. Wait, I can't see your cursor. Can you see it now? No. It's a screen sharing not working. Wait, hold on. Let me know it's. I don't see a cursor. That's weird. Anyways, can you see the chart? I can. OK, well, the first bar there. 1129, you see the date? That first bar with the little toppy tail. That's the first bar of the day. Then it dropped. Then it pushed back. Then it base, base, base. Then it broke. You don't remember where at what time you did it? Hold on. Look at your chart. Let me just enlarge this. Because I'm trying to figure out how, again, if you took a $200 risk, how you could have only made $40, no matter where you shorted this puppy.  Unless you just took it and got right how? I think I did just take it and got right how. I know. I was just, I was feeling not. I was really relying on, you know what I mean? I put too much weight on following you guys, I think. But you just got done telling me you felt really confident the week before. I know. All right, I'm trying to figure out here, what's the situation? All right, so then you made money. You made money, so you made money Wednesday fine. Monday, did you do anything on your own or not before we go over the Momo? Momo was crazy. Oh, Momo was crazy. Monday, did you do anything? What day? What day? Did you do anything Monday? Oh, so Momo was Tuesday. OK. I thought, I think Momo was Tuesday. No, I did not do anything Monday. Was Momo Monday? Let me back. A Momo was Monday or Monday or Tuesday, I forgot. So I did have one day I didn't trade. So. Yeah, Momo was Tuesday. OK, so I didn't do a trade on Monday. And then I had two stops on Momo. And I think you went on to do it in the afternoon and you did well. Yeah, so you couldn't do the afternoon one, so I got that. Yeah, that's what I'm really. It's like I'm so bummed that I have to work, because I know some of your afternoon trades are great. But honestly, I don't prefer to do those. I mean, today, because it's December, and we don't know what we're going to get. It's kind of like you get an opportunity to do something if you happen to be home to do it. This was very, very, very, very hard. OK, but let's just go over it. So money was nothing. Tuesday, you lost on Momo. Wednesday, you made money. Thursday, you should have made money. Friday, you didn't do anything. But so do you see if you would have, size yourself right Wednesday. Forget the Momo. It was hard. If you had sized yourself right Wednesday and sized yourself right Thursday, you would have been up last week, even with the Momo not being able to do it. And it was crazy. You are correct. You are correct, yeah? Yeah? It's like I sized myself or did a lame trade on Wednesday. And then Thursday, I oversized. You oversized the first one and undersized the second one. Yeah, so I need to keep everything consistent. That is absolutely clear. Also, I wouldn't do a trade and then kill it immediately unless we're going to do that with every single solitary trade.  But like with the scalp, you did an ADSK, I mean to quick scalp something like that that fell, you know, five, six hours on the day, that doesn't make any sense. Do you know what I'm saying? So I think you need to decide if you're going to give a trade a chance to work or if you're just going to get out of it in one red bar or two red bars, which some people do. I know some people do that in the room. And that's not the way that I trade. But I'm saying if you really feel like that's what you want to do and up your size, then you have to be consistent with that, too. So you're not being consistent with your sizing and you're not being consistent with your exits. So there's no reason for your confidence to be low. The fact is that it's just a simple fix. Okay, yeah, I need to just do 200 on every trade. So you're going to go back down in 200 now? Yes, yes. Starting tomorrow. Starting tomorrow. I started doing that, I think this week. So I'm back with the 200. And you, so you're not against a market fill. Again, I think you have to, every broker is different. I have not had good luck with market fills personally. So that's why I do limit orders. And that's, so I played around with both sides of it. And so that's just what I do. So it's really, you could play around with it yourself, test out different ECNs, limit orders, market orders, hotkeys, using the mouse, whatever you want to do. I do think it has to do with the broker. And so I would test it out yourself and do something different tomorrow and see if you get a different kind of fill. But I think today it was very spreading, showed kind of an example. And I think so too. I think there was just one, if today it was spreading. And then I think I had just one other one that was a bad fill like two weeks ago. That's going to happen. That's really going to happen. And there was something else I was going to say. Like if I had done the Fred today, it probably would have been a horrible fill. I mean, because I saw it, I had kind of pressed it, but it already broke. And then I'm like, screw it. And I really didn't think that the target was that big anyway. So this probably would have been a horrible fill if I had pressed it. So then we moved over to the other one, but the other one was much, much better. But I think that you, the other thing is, this is not a time to increase your risk. It's not a winning season. So again, I'm not certain why. I mean, you were doing really well. So I get why you wanted to increase your risk. I totally get that. But you also have to think of the time of the period with the market, of what's happening. Because if there's going to be days where we don't get any trades at all because there's just no good gaps, you need to keep your confidence high and you need to stay green. And if you're making $1,000 a week or whatever you were making, and to just stay on track with that until 2018 because the bottom line is that you don't want to ruin your confidence right now. It's just not a busy season right now in December. It's not the time to increase your risk. Okay. And then I don't know, do you mind going over just a couple of the ratings? Yeah, let's do that. In fact, why don't you look and see? Let's do, I'm going to stop the tape. Why?


Welcome back to another one. If you're new to the channel, I'm Gulf Pony. I do new car track SUV reviews on YouTube. And today we are in the brand new 2023 Ford Mustang GT courtesy of Bob Ruth Ford in Dillsburg, PA. For more information on their inventory, please feel free to check out the link in the description box below. And so today we are in this one because some of you guys may already know I did own a 2019 Ford Mustang GT in Need for Green. I absolutely love that car, but got a new job where I had a heck of a drive and I have to drive through the winter. So rear-wheel drive just ain't got to work out anymore. So I had to get rid of it unfortunately. But I did want to check this one out because of course the Mustang does have better visibility than the Camaro, one of its competitors. Not only that, there is a complete redesign coming out for 2024. So the question really I'm going to lead to you guys for the comment section is do you buy a 2023 now or do you wait for the redesign in 2024? So ultimately in this video, we will be testing out and going over everything about the 2023 Mustang GT from acceleration to braking, steering field, ride quality, sound system, exhaust clip, all that fun stuff. So having said all of that, what do you guys say? Let's just go ahead and jump right into it. And as always, let's start with pricing and sell. There will be a few different trim levels for the 2023 Mustang GT. First, you got your base fastback starting at $38,345. Premium fastback, which is the one we are in today starting at $43,365. And then there is the premium convertible going for $48,865. But regardless of trim level that you go with the power plant on the Mustang GT is going to be the same. Powering the beast is a five liter naturally aspirated V8 cranking out 450 horsepower at 7,000 RPM, 401 pound feet of torque coming in at 4,600 RPM. Power is going to be sent to the rear wheels through your choice of either a six speed manual with rev matching or a 10 speed automatic with paddle shifter. So last time I tested the Mustang GT I did test it with the six speed manual with rev matching that was a blast. Today we have the 10 speed automatic we're going to be testing out. And by the way, the 10 speed automatic if you were interested goes from $1,595. But when it comes to the zero to 60 time again it's going to differ depending upon the transmission set up that you go with. So for the six speed manual that's going to put you at approximately 4.3 seconds for the 10 speed automatic that is going to put you at approximately 3.9 seconds. That's going to be mostly track times right there with those numbers. So you're not probably going to get those numbers on the street but on the track it is 100% doable top speed 155 miles per hour with MPG numbers coming in at 15 in the city, 24 on the highway taking premium unleaded fuel.  So if I toggle between them I'm going to have drive modes like normal snow and wet sport track and drag adjusting things like the shift points the throttle response and the traction control settings. So then you might be asking yourself well what about the steering sensitivity can I adjust that you can. There's actually another toggle switch just to the left of the drive mode toggle switch and when you hit that I always left it in sport driving mode by the way whatever I had my Mustang so we're going to go ahead and just leave it in sport driving mode it does instantly make a much heavier weighted steering feel to this thing. I always absolutely love that steering feel so I'm just going to leave it there. But so then a couple other things I wanted to mention to you guys on the Mustang GT there is line lock which is pretty cool.  So that is pretty cool I like that feature. There's also of course launch control to get your best start and there's also track apps which is a function within the digital portion of the gauges and that's going to give you the ability to test out a bunch of different statistics like you could set it up to do a zero to 60 run which I did all the time. To my 2019 for Mustang GT there's braking performance there's lap times there's a bunch of stuff so that is pretty darn cool that that is there as well. So now I haven't got all of that out of the way I'm going to go ahead and let me actually go ahead and put it in I'm going to put it in sport plus driving mode here. So let's go ahead and test out the paddle shifters first and let's see how quickly these paddle shifters are going to react for us here. All right, three, two, one, first gear, go. Quick, quick, okay, paddle shifters and it's been a couple of years since I've tested one of these paddle shifters are ridiculously quick. So that 10-speed automatic paired up with paddle shifters did a wonderful job and honestly I was a little bit hesitant because a lot of times you only get quick reactive paddle shifters with dual clutch transmission but with the 10-speed automatic and the Ford Mustang GT it did brilliant. So wonderfully quick paddle shifters in the Mustang GT you are definitely not going to be disappointed since we're touching on transmissions a little bit that was one of the reasons that I personally went with the 10R80 the 10-speed automatic just because I knew they were ridiculously quick. Now the six-speed was heck of a lot of fun. Don't get me wrong, but the reliability with the six-speed the Tremac six-speed manual in the Ford Mustang is not as good as the 10R80. I just want to put that out there. So if you're looking for the more reliable transmission rumor has it at least that the 10-speed is a heck of a lot more reliable than the six-speed. So I'm just going to put that out there. But now having said that let's go ahead and give back full control to the Mustang GT here. Let's put the acceleration to the test with the car having full control and let's see how quickly we can get this one here up to speed. All right, in three. I love this straight away. Two, one, yo.  Whoa, that was fun. Dang, I missed that man. It throws your head into the back of the seat like zero to 60 and 3.9 is dang good. And it, I knew you're not going to get that on the street. I know that I've tested it a thousand times but it is still dang fun. Even without the six-speed manual, this car has always been a blast with the 10-speed automatic because they did the 10-speed so dang well you're going to have fun in a Mustang GT no matter what, no matter what transmission setup that you go with. So that is a heck of an acceleration and I'm done talking about acceleration because there's always braking is equally important. So the braking character, the braking setup I should say will differ pretty substantially. There's a bunch of different setups here. So upfront you will find 14-inch ventilated front disc with four piston front campers. In the back, 13-inch rear disc with single piston rear campers. That's the standard setup and that's probably the one that we have today but it is the one that we have today because if you do go with the performance pack that goes for $6,700 now back in the day when I got it, it was like 4,000 or whatever. But anyways, you will get 15-inch ventilated Brembo front discs with six piston front campers. That is a heck of a braking setup right there. 60 is your stopping distance. I've seen it come in from anywhere from 99 feet to 104 feet. So 104 feet is ridiculous, you guys. And 99 feet is circuit track kind of ridiculous. So that is insane. It doesn't get a heck of a lot better than that. It might not even get any better than that. That is a heck of a 60-zero stopping distance number. And I can tell you guys the braking feel is so much on the furb side. It instantly brings you to a stop. It is definitely not a soft braking feel. And you wouldn't want that of course. And it must take GT anyway. So it instantly brings you to a stop. I absolutely love it. But then touching on suspension and handling, again, a ton of options here as well. Independent front and rear suspension, of course. But if you were to go with that performance pack yet again, it's going to add to that heavy duty front springs. You've got a K-brace, black painted strut tower brace. There's a torsion differential, unique chassis tuning, upsized rear sway bar. So quite a bit is added with that performance pack. But I did want to add to that, there's a MagnaRide DanBank suspension. That's one I always like to recommend, by the way. That goes from $1,695. But that's essentially going to monitor each shock absorber individually, tightening up the suspension during heavy cornering. But also reading the road of perfection is giving you a smoother ride. And that is one thing I can tell you guys. That is a noticeable difference, especially with the four Mustang GT. Because I've driven both at this point. It is a much smoother ride with that MagnaRide DanBank suspension because you really do tend to feel a good bit of the road in the Mustang GT. I'm just going to say that. As far as steering feel goes, that is wonderful though. Especially in that sport steering feel mode, it is such a heavy feel to the steering. And I absolutely love it. That is something I definitely miss. As far as cabin noise goes, it's actually really good. The only thing you really get a lot of is that beautiful exhaust note when you really get on this thing. And we're going to do an exhaust clip a little bit later in the video. So make sure you stick around for that. But other than that, yeah, it sounds great. It's just the exhaust. There's no wind noise. There's no road noise really coming into the cabin whatsoever. It's just that beautiful exhaust note. So no complaints from me there. And touching on visibility, I could see 100% perfectly fine. I had never had any issues with rear visibility in the Mustang GT. So that is certainly 100% on point. And to my surprise, because this has changed since the 2019, I know at least is, when it comes to forward visibility, rain-sensing windshield wipers now come standard on the Mustang GTs. That's pretty cool. Essentially what that is is whenever the Mustang detects any kind of mist or rainfall, it's going to automatically turn on this windshield wipers for you. So it's just one less thing you've got to worry about kind of like automatic headlights. It's a convenience feature there, assisting with visibility yet again. But that pretty much rounds out the performance segment of this review, you guys. Let's now go ahead and take a look at the exterior of our brand new 2023 Ford Mustang GT. All right, so here she is, you guys. The new 2023 Ford Mustang GT finished in grabber blue metallic. Yes, the legendary grabber blue. It's been around for quite a while on the Mustang, but definitely catches your attention, definitely looks good on this thing. But let's go ahead and start with where the Mustang is made. As you would imagine, it is made in America. The VIN does start with the number one. Specifically, it is made in Flat Rock, Michigan. So in case you were curious about that, let's go ahead and start up front on this one. There is going to be a new look again for the 2024 model year. So this is the last time you will see the specific look on the 2023 model year. So if you do like this look, now would be the time to actually pick one up because again, it is completely redesigned for 2024.  There is a night pony package that goes for $1,195. That is going to give you black emblems along with black wheels to go along with that. So you do have that option if you wanted. LED headlights do come standard with LED signature lighting as well. You do get LED daytime running lights to go along with all of that. Automatic feature, meaning when it starts to get dark in at night, those headlights will turn on automatically for you there. That's always nice. You do actually have LED fog lights down below as well. So it's pretty cool to go along with that. One of the things that's going to differentiate itself a little bit, again, with the performance pack, is you will get a performance pack specific front lip.  Again, that's only with the performance back. And the other thing I wanted to mention to you guys on the hood here is these hood vents up front here, they are actually functional. So they are going to assist with a little bit of ventilation, allowing the V8 to breathe a little bit, so they are much needed. So I do like that they are functional because so many vehicles out there these days, a lot of times we'll just put them on for just luck. So they do actually work here on the Mustang. But anyways, pretty much you're out and out the front end of this one. Let's now go ahead and make our way to the side. All right, so we now see all around to the side of this one, black windows surrounds do come standard. Take a look at the front fender. You have that 5.0 badging. Of course, they are finished in chrome, unless you go with the night pony package and then they're going to be finished in black. Body colored power adjustable side mirrors will come standard. But if you go with the premium like we have today, we do have that premium trim level, believe it or not, you will get heated side mirrors with the pony projection lights at night. So what's going to illuminate a pony logo onto the ground at night. So that is pretty darn cool, of course. I can't show what you guys right now, but take a look at the wheels set up, 18 inch machine finished aluminum alloys will come standard.  So you're not going to be able to rotate those, unfortunately, like you could with these, for example. And then there are other 19 inch wheel designs available. Most of them are staggered fitment as well, but pretty much rounds out the side profile. Love the fastback style look here. So now go ahead and make our way to the back. Fine so, but now since you are around to the back of this one, all the way to the top, you guys will find that body colored shark fin antenna. Just below that, you got a high mount stop lamp, which is pretty cool. I like the look of that. There is a body colored rear spoiler, kind of a decklid spoiler that comes standard on the Mustang GT. However, there is an option for a spoiler delete. So if you didn't want that spoiler, you don't have to have it. So it can be completely nothing back there if you wanted to. And with the performance pack, you will get a lifted rear spoiler actually. So that's available as well.  You do have LED sequential tail lights, one of my favorite features on the Mustang because when you put your turn signals on, it kind of slides from one tail light out to the outside of them. So it kind of looks like it's sliding from the left to the right. So definitely a big fan of that look as well. Just below it all, you do have a pretty darn aggressive rear spoiler in matte black. So love that look as well. And then to the sides, I told you guys that exhaust clip was coming, to the sides dual exhaust outlets with quad tips. And there is an active valve performance exhaust system that goes for $1,225.  So anyways, having said that, I do believe you guys know what we have to do next. As always here is that exhaust clip. And so now since we are around to the back of this one, when it comes to opening that rear trunk, there are several different ways to go ahead and do that. There's a button on the key fob. You press it twice. That is one way to unlock it. There is another hidden button, a rubberized hidden button just underneath the GT logo, kind of just above the license plate, I should say. That's another way. And there's a button by the driver's side left knee as well. But once opened up, cargo capacity comes in at 13.5 cubic feet for the fastback and that 11.4 cubic feet for the convertible. That makes sense. If that was not enough space, there is a 50-50 split, meaning the rear seats do fold down for quite a bit of extra space then. If you needed it, there are some kind of tie-down anchors back there. And then if you were to lift up underneath of that cargo floor, you'll find a spare tire back there then as well. But then, making our way up to the rear legroom, because yes, the Mustang does have rear legroom, it does have a rear seat. Rear legroom's gonna come in at 29 inches even, not a whole lot there for reference. I'll give it a shot. I'm at even six feet tall. This is me kind of not having a whole lot of space back there. So kids might be able to fit back there, but for adults, it's probably not doable, unfortunately. But then making our way up to the front seat, six-way power adjustable driver seat actually comes standard with power lumbar as well. So I absolutely love that. Four-way power adjustable passenger seat comes standard. Cloth seating with the Mustang logo does come standard as well. Leather seating though, it's gonna come on the premium trim level. And the premium trim is also gonna give you heated and ventilated front seats as well. Got the heated seats on because it's freezing today here in PA. You also get memory settings for the 401A package. That is specific to the premium trim, by the way. And then actually there is a recarrow bucket seat option that gets for $1,650. If you wanted that, those aren't heated. I wanted to specify that, but they're definitely gonna hold you in place the best out of all of these other options. So that is an option. But overall, as far as seat comfort goes, it's perfectly fine. It was perfectly fine in my cloth seats that I had on my 2019 Mustang GT. And it's perfectly fine in the leather seats as well. So didn't want to mention that. New problems with seat comfort there. Then take a look at the steering wheel. It is gonna be tilt and telescoping. It is leather wrapped, that comes standard. And if you were to go with that four-win A package again for the premium trim level, that goes for $2,700, by the way. That gives you a heated steering wheel then as well. But now, let's go ahead and make our way to the startup. Let me start by showing you guys the key here. You got your silver pony logo on the one side. Then when you flip it over, you got all of your buttons, of course. Lock, unlock the button to pop the rear trunk. And times two button, that is gonna be a remote start as well. So that's pretty cool, but it is all keyless entry.  And so, once started up, gauges are going to differ. So there is an option that I want to tell you guys about with the four-win A package again, there is a full 12-inch digital gauge cluster. That's the coolest setup, and that is completely customizable. But I will say these gauges aren't that bad that we have today. And this is what I had personally. So, tachometers on your left, speedometers on your right. There's a digital display front and center which can be controlled by using the steering wheel mounted controls found on the right side of the steering wheel. And it's quite a bit that you can control. Like I said, you got track apps up there for one. Also your outside temperature, of course, how many miles you'll have left until you hit empty. There's tire pressure information as well. But if you go under settings, there's actually your ambient lighting settings and gauge color settings, which you can adjust in the daytime, but I was able to always do it in my garage, which is probably the best place to do it, but you can actually completely change the look of the gauges. So instead of seeing the white that you're seeing right now, you can make it a bright blue to match the exterior. You can make all the ambient lighting in this vehicle bright blue to match the exterior. I think that would be so stinking cool. I had a green one. I did the same for the gauges and the ambient lighting. I made everything green. So that's why I don't mind these gauges because they are still customizable in terms of color. So I like that. But now let's go ahead and touch on overall interior quality. Somebody always asked me in the comment section with my Mustang reviews. Now there's no moonroof or sunroof available for the Mustang, unfortunately. Audit dimming rear view mirror does come standard though. So if somebody has their high beams on behind you, you don't have to worry about that. And it's frameless as well, by the way. I like that. Dual zoom climate control coming with the premium, aluminum foot pedals coming with the premium, universal garage door openers for up to three different garage doors found on the driver's side sun visor here, again, for the premium trim level, multi-color ambient lighting coming with the premium. But that is gonna be an option for the base fastback. And that's actually how I ended up getting it when I had my Mustang. So you can still get the ambient lighting if you don't go with the premium. I'm just saying. Just in front of the shifter, you have a 12-volt power outlet. There's a USB charging port, a little bit of rubberized storage. You have dual cupholders behind the shifter. And within the center armrest, you have another 12-volt power outlet, another USB charging port. Overall, I like the little aluminum Mustang insignia found just above the passenger side glove box. I think that looks pretty cool. These heated seats are getting plenty warm as well. I also love that. If I'm being honest though, as far as interior quality goes at least, everything is kind of finished on the basic side of things. You do have a lot of hard plastics, but with the premium though, you do get a lot of upgraded stuff. So like the door panels, for example, are gonna be finished in leather as opposed to just a cloth finish. I wanted to mention that. So it does get a little better with the premium, but now let's go ahead and make our way to the tech. So there's gonna be a couple different setups here. You got a 4.2-inch LCD screen for the base fastback. Then there's an eight-inch color touchscreen display for the premium. That is gonna be optional for the base fastback, Bluetooth and audio streaming, Android Auto Apple CarPlay. Factory navigation system though is gonna be optional on the Mustang. I like that. You can adjust your climate control settings up there as well. And of course, your radio information. So when it comes to the sound systems, there's a few of them. Six speakers is gonna come standard. Nine speakers is gonna come on the premium and that nine-speaker sound system is available for the base fastback. And then there is a 12-speaker Bang & Olufsen sound system that goes for $995. So that's an option. It is available. That's obviously gonna be your best one. But, having said that, we of course have the nine-speaker sound system with us here today. So what do you guys say? Let's go ahead and turn on the radio, see what we got playing today and let's test out the clarity of this one. And actually, I never had a problem with my nine-speaker sound system. I had it in my car either. Plenty of bass, plenty of clarity. And really, when you're talking about the size and the Mustang being not all that big of a cabin, nine speakers is really overkill. So that's great. Obviously the Bang & Olufsen is gonna be better, but nine speakers in this size of a vehicle, it's excellent. So no problems there. But last thing I wanted to mention to you guys on that infotainment screen at least is when you do put the Mustang in reverse, you will find a rear view camera coming standard across the board. Pretty high definition as well, which is always is going to lead us into safety. And so to start, front side, side curtain airbags do come standard. You do have a driver's knee airbag up front as well. In the back, you're gonna have latch, aka lower anchors to tethers to children for the rear car seats, higher pressure monitoring system. Automatic high beams are gonna be optional for the Mustang GT. I wanted to mention that. Adaptive cruise control is gonna be available then with the safe and smart package that goes for $725. But overall, when it comes to my final thoughts here of the Mustang GT, a great performance car. And in my personal opinion, which is the reason why I got it back in the day, when I didn't have to drive in the snow at least, is it is the best bang for your buck in my opinion. As far as what you get for the money, this thing is in absolute blast without a doubt. I personally would recommend the performance package. I actually did go with the performance package when I got mine. Definitely makes a big difference there. Adaptive damping Suspension I would definitely recommend. I didn't get it on mine, but if I were to do it again, I would because it's definitely a firm ride. I'm gonna be 100% honest. As you would expect the Mustang to be, but you definitely do feel a good bit in the adaptive damping suspension. The magnet ride damping suspension, I should say, definitely helps you out with that. As far as room for improvement goes, I only got two things. Interior quality is definitely not the best. They could definitely spruce this thing up, give it a little more design basically rather than just matte black plastics and a couple great plastics. So little room for improvement there. And also, wouldn't mind seeing a sunroof or a moonroof available in this thing. Because if you look at the competition, like the Challenger and the Camaro, you can get it in those, but you can't get in the Mustang for whatever reason. But anyways, that is about it for this one, you guys. Thank you so much for watching. Feel free to follow me on social media. You want to see what's coming next on the channel before it gets to YouTube. Be sure to hit the subscribe and the bell notification button if you're into new car reviews because that is what we do here on this channel. After all, do appreciate you guys watching more than you know. I will see you guys all in the next video. Stay Gold.