after a hard day's work. diagio will be up 20%. just a glass. >> it's saturday morning, you lush. >> where's the box wine? come on. welcome everybody. glad to have you. as soon as republicans rolled out a budget cutting trillions in spending, democrats pile on. >> their budget doles out more to those who already had the most. makes massive cuts to investments that benefit all of us. >> house republican budget fails to provide for our national security or economic security. >> it makes devastating cuts in important investments like our kids' education. >> that's the democrats way saying they don't like it. charles says stop the scare tactics start the slashing. ben stein.

the whole gang here. all right. dr. pain what do you make of this? >> democrats have one game plan. that's buying votes. that's it. fiscal responsibility. here's a crazy thing. you think about literature it's always about being able to go back to the past and see what you've done wrong. the ghost of christmas past. we've seen this from the roman empire to modern day greeks. it's all about keeping power for the moment no matter what the destruction is going to be in the future. judge, that's beautiful. >> thank you. >> i think these votes fail when it comes to budgets. you have the republicans trying to use the war account to skirt capital military spending. if you want to spend the money, come up with the offset somewhere else. >> they say they have. everyone agreed to the sequestration cuts. if you are going to break them, be consistent and make up somewhere else. >> right. they assume expiration of tax

benefits to make the numbers work. nobody is going to do a thing until interest rates skyrocket. right now last week the federal government could borrow over ten years at less than 2% a year. they can borrow and spend as much money as they want to. it's both parties. >> if you think about it, democrats and republicans go back and forth how the other was wasting the money. both budgets over ten years spend in excess of $43 trillion. the republicans are the more fiscally proven because they are at 43. democrats are 47. >> listen, the american people voted for this. i don't think -- interest rates though that does help when you have low interest rates and you can borrow at almost no cost. more to do with the political will of the american people. we put in divided government, we elect people that really don't care about the budget and that like to spend.

it permeates the entire republican party as democrats. elect one party, the republicans. you will get more budget cuts. they don't have a perfect answer. >> whatever cuts either party is looking at and there are very few, it's just shave in growth. >> there are no easy solutions as mr. biden would say. we are between a rock and hard place. number one item essential defend america. get rid of the sequester. stop the gap on defense spending. two, i hate to say this, but it doesn't really matter what interest rates are. we sell a huge percentage of our debt to the federal reserve. costs nothing for minting money. we've got to figure out a way to make some rise in income tax for very high income people like charles payne and others on this show. we cannot continue to let these people pay very, very low income

taxes. the main thing is let's not quibble about tiny amounts here and there. how much do you need to defend america? that's what you've got. >> i love you to death, but if you can't make do on $600 billion a year, you've got some operation. >> that is a meaningless number. it doesn't mean anything in terms of what is needed. the question is can the joint chief say to us we can defend you against any reasonable threat? >> adam what do you think? >> i agree with ben in the sense that if you look out over the next 40 to 50 years we need to prepare ourselves for a confrontation with china. i would say $600 billion is not a meaningless number. the question with is what's the right number. we node to start there. by the way, the conversation we are having is the conversation

that congress and the president ought to be having. this is called a conversation. >> they are not having it. they are not having it. this is another one of the things i have on my to-do list. if you are not going to have in washington, i might as well start the debate on this show. >> one way to deal with this is get the economy growing. i would be all for an income tax increase if they would do any amount of cutting, which they won't. the one way to solve this -- >> you would be open for a income tax increase? >> i don't have a problem paying a little more. >> you already are. >> even more if if they really -- >> do you honestly think they won't? >> no. that's why. >> if you start saying i'm pill willing to pay a little bit more it turns into a hell of a lot more in short time. >> the top rate is now close to 40%. when you throw in medicare

surtax surtax, health care tax you are in the mid 40s. revenue is not issue here. >> there is no such thing as irrelevant number. i think the number is not about the numbers we are talking about here. it's we are actually putting through the things in defense even the military doesn't want. it creates jobs in some local politician's district. i mean it's all about responsible spending. everyone watching this show is cutting back on their own budgets over the last six years. why can't our government do the same thing? >> not the same thing. >> i said watching this show. >> speaking of not cutting back, every time the president speaks about the economy, he talks about the need to spend more on education and infrastructure. >> that gets back to another problem i have when they talk about wanting to strategically invest. you can't strategically invest what you don't have. we could do all this stuff but that's the biggest excuse for never having our credit rating

knocked. we just print our way out of here. >> the real problem is growth. we don't have a tax exempt that allows the economy to grow fast enough where we can handle. >> we don't have that because the first thing you said on this show -- >> higher taxes would slow the growth rate. >> tax reform which might which got shot down by this president would enhance the growth rate. >> higher taxes -- >> who is talking to me? >> first of all, we can print money. the crisis will come when interest rates rise so much. it will happen. >> you are right about that. we talk about that. >> all that is give more, give more. i'm all for keeping us safe and

honoring our military and soldiers, veterans. every different sector has to be held accountable and explain where that money is going. >> i couldn't agree more. i see the chairman of joint chief of staff a very admiral man named general dempsey on tv say i cannot defend america if sequester continues. i cannot defend america's national interest that. scares me to death. >> you go to a movie producer. unless i get 10% of the growth i cannot do this movie. >> i do not compare general dempsey to a movie. >> they are going to argue for as much money as they can get.

why do they say there is room to prioritize within the budget. >> dempsey is the boss and says i cannot defend america if the sequester continues. ash gardner says i cannot defend america, i believe him. >> they are politicians. >> they are politicians. >> no one is above questioning. >> aren't they politicians? i don't understand why someone has stars on his chest we should be you doing and saying okay. >> the problem is the notion are compromised. we should have the strongest military in the world and sequestration should be focused on domestic spending, not military. it's always we've got to get more here and take little there. >> nobody is going to cut jack, not even their damn hair.

what have you got? >> as the administration negotiates with iran iran and hezbollah getting left out of a new u.s. intel report on global terror threats. is that a mission a threat to our lives and livelihood? the epa's latest targets barbecues and showers. get ready to get steamed. we'll see you at the top of the hour. >> washington is after my barbecue? not on my watch. up next here, hold on to your retirement savings. if one of these presidential hopeful wins, you could lose. i'll give you

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i'm gregg jarrett. back to "cavuto on business." congress allow workers to swap out their 401(k) assets, perhaps at august levels for a guaranteed retirement account. just a one-time swatch trading your 401(k) for a guaranteed retirement account that will be composed of the equivalent of government bonds. >> we could have cut that byte down, but i said no, no, no. i sense a ratings juggernaut. you may not know that woman and after that byte, you may not want to. you know this woman hillary clinton is considering making that woman an economic advisor if she ultimately runs for

president. we should stress that what this woman was saying back at the height of the meltdown and that everyone's portfolios had been decimated and there was a great risk at the time to putting all your eggs in the market basket. she seized on that. what she is saying is you don't want that to happen again. the government should take over our 401(k)s. we won't have 401(k)s. >> we won't. we might have something worse. anyone with a 401(k) right now is rejoicing they didn't sell at that particular time. we should be putting a certain fortune of money into the market, into great american companies. having said that imagine a government in charge of your retirement? disability -- >> they are. it's called social security. >> disability will be done next year. no money next year. the number every year shrinks. >> there was a great story in

the "wall street journal" the other day about a guy passed away. he worked at a gas station. he saved just by buying simple stocks high dividend stocks. $8 million. this guy worked at a gas station. >> beautiful story. >> i sent it to you. >> i did it on my show. >> that's the whole thing here. it is not that complicated. you don't need them. by the way you think the government is going to keep that money invested? they are going to spend it. there is no such thing as a lock box. >> i have social security. they want social security plus. >> what will they do with that? >> right. the reason i love 401(k) plans, that is your money. that is in an account, it belongs to you. you can use it you can borrow from it, you can use it to make a first-time home purchase. it's yours. it's not a government promise. they are taking money out of your paycheck for social security and they are promising to give you a benefit down the road. i think money in investment accounts is yours feels a whole

heck of a lot better. >> the assumption the company giving you that is going to be around. >> no. that's different. the 401(k) is yours. >> i understand. there are fears and "business women" was echoing them 401(k) down the road could face a problem. i'm debating whether the government is up to doing something like this and should be doing something like this. >> probably not. generally it's a bad idea. having said that. >> when you said probably not -- >> charlie was referring to is a success story. >> under what scenario could you envision the government doing this? >> i can envision a scenario where the government set up a retirement program where the rules were very clear where they could help people limit their downsize. we have to be honest about the fact that a lot of people lost a lot of their retirement savings.

>> any investor can put his money in treasury bonds. if you want a good long term return you get an index fund of great u.s. stocks. i wasn't laughing at you. i was laughing at the funny interchange in all of us. neil i don't know why you are not host of a late night talk show like my friend jimmy kimmel. >> we should point out the gentleman i referred to in the "wall street journal" article lost money during 2008. he had some bad stocks. he owned lehman brothers which went bankrupt. >> what? >> i'm sorry. i wasn't sure if you knew that. >> it's not impossible to think this could happen because politicians will play on individuals' fears. retail investors are still incredibly luke warm to the

stock market. it's been two down turns. >> it's heartbreaking 200% people missed. anyone that guarantees you won't lose money, even the federal government, that's scary. >> take the match. free money. >> why don't you just buy treasury bonds? >> we'll take a break here. first he made health care a right. now he wants to make everyone voting the law. forget hanging chads. you chumps don't vote, you are going to go to jail. >> if everybody voted then it would completely change the political matatatatat the lightest or nothing. the smartest or nothing. the quietest or nothing.

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in ale and some other countries there's mandatory voting. it would be -- it would be transform testify if if everybody voted. that would counteract money nor than anything. >> well, the president put out the idea of mandatory voting in america, which is ironic because he's against any law asking voters to simply show an id so she can vote in america but why -- >> quibble. >> ben stein what do you make of this idea? >> he's against anything making people show an id so they can get government issued health insurance so that's another problem. i don't think it's a good idea at all. look, the democrats are such liars saying that's all about big money and they want to squeeze big money out of politics. they're the ones that get most of the big money toe nations it's all just a typical democrat lie. >> it works in australia,

though. >> australia is a different political system than we do -- >> they talk differently. >> australians are very fun people. they're much like southerners -- they're much like southerners. >> absolutely. >> you know, voting is speech to me. >> she's blushing. she's blushing. what does that mean? >> you know a night here or there over the years. [ laughter ] >> voting is speech and if you make it mandatory it is no longer free. that goes against everything we believe in. >> i wonder why he didn't like compare to nazi germany or soviet russia. i think mandatory voting there. >> austria had mandatory voting and then little things like wars reversed it. >> right. >> you know listen, i think the president for a guy that is supposed to be an expert in constitutional law doesn't understand the notion of liberty. >> he is not an expert. >> what did i say, ben? supposed to be.

okay? that was his chops. allegedly. allegedly. doesn't know the notion of liberty which gives me a right not to vote if i don't want to. my rights are protected by the constitution, life, liberty, pursuit of happiness. >> adam, what do you make of that? >> i didn't hear the president say anything about mandatory voting. i heard him say it would be better if everybody voted. perhaps we could come up with incentives for people to vote. i also want to say we all know that this id -- >> he mentioned the australia example where it is mandatory. >> i'm sorry? >> he said he would be intrigued by that. >> he would be intrigued if we could find ways to get as many people as possible to vote, like everyone. >> free beer what do you think is this. >> what are they going to do send out gast an bow trucks to arrest people who don't vote? how are they going to find the people. >> thanks to charlie and dayen. think your money is going to hit

bring us your baffling. bring us your audacious. we want your daydreams your ah-has, your easier-said-than-dones. we want your sticky notes, sketchbooks, and scribbles. let's pin 'em to the wall. kick 'em around. kick 'em around, see what happens. bring us your need-it-done-yesterdays. your impracticals, your how-do-we-do-thats, impossibles, your what-do-we-do-nows, downright inaccessibles. bring us those things you're not sure how to pull off - and you're even less sure who to ask. because we're in the pushing- what's-possible business. the how-do-i-get-this-startup- off-the-ground business. the taking-your-business- global-business. we're in the problem-solving business.

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all right. stocks that jump when rates jump. charles. >> dchl og resources because crude is going to jump too. >> adam. >> iyf it's an etf of financial stocks. it will benefit when rates go up. >> ben? >> i love that one, by the way, bank of america very well managed frugal company. >> do you think ben banks is surpass the pep amounts and fines and everything else is

going to cloud over them? >> i sure hope so. i've been a government lawyer myself and i know what kind of greedy pigs they are. i hope they're past it. >> that was the risk in going to ben at that point. all right. the cost of freedom continues now with david asman on fox. >> talk about weird timing with the white house trying to make a nuclear deal with iron two names go missing from a new u.s. intel report on terror threats guess which ones iran and hezbollah, the terrorist group backed by iran. now, some here wonder if the two things are connected and whether that is putting our lives and livelihood in danger. are they right? hi, everybody, i'm ta welcome to "forbes on fox." let's go in feek us with mr. steve forbes, rich carl guard, elizabeth mcdonald mic owe ozanian and bruce jep son. >> david, the answer probably is no. this is typical obama negotiation and that is make concessions in advance. obama thinks