think that's going to spread around the world and master card will take advantage and stock is. >> brenda: ed, a bull or bear. >> a bear. and the stock, even though they're getting rid of plastic. >> brenda: neil is next. ♪ ♪ here we go, start the fun. until the cookies are done ♪ . >> neil: don't laugh now, doughboy, you got burned and we're all getting baked and free cookies as a result. and i'm neil cavuto, and a very bad recipe for our economy. general mills, owners of brands like pillsbury and cheerios, let's say they're not too cheerio there. higher costs turning it sour. fed ex seeing a bumpy ride the rest of the year. the and customers are scaling back.

so, two of the biggest u.s. companies that are completely tapped into the economy are seeing inflation and yet, washington still insists it's not there. and not even close, ben stein, charles payne, dagen mcdowell and adam lashinsky and charles gasperino. >> i don't think that the government has a monopoly on inflation. the fiscal monetary policy, president obama has already said, listen, the prices necessarily have to go higher with energy and ben bernanke's goal is to inflate, inflate, inflate. >> they know that they hide it. >> they hide it, but they have an agenda and both sides of the equation that control out of this are determined to push the general. >> what do you think of that. >> they have a different way of counting inflation, we go to the store and see higher prices and inflation and rent an apartment or house for our son, higher inflation, the government has all kinds of way, saying he no, it's not

inflation and i've seen this in action for myself and over, many, many, many years, but of course, there's inflation and what we really is is stagflation and it's going to get a lot worse. because there's a huge bump in the money supply caused in the last few years by mr. bernanke, when that starts getting spread around and that increases when the whole economy revives, we can see a serious, serious doubt in inflation. >> you know, when you have companies saying it, and they're in the fight, every day. i'd sooner trust them than i would an academic or anyone else. >> and that actually can cause even more inflation. >> yes, yes, exactly, exactly. >> and that's what ben bernanke is worried about, he has to go out there and cover his eyes and say, i don't he see any inflation because he's trying to tamp down the-- >> so, he keeps covering something else and subsidizing this. >> and part of it, what ben was saying, it's companies and

consumers, think inflation is coming down the road, they will change their behavior today, that actually create more inflation. >> very good. >> like raising prices in the pipeline to ensure that their margins don't get squeezed because prices go up in the future. we could be in the beginning of a very dangerous cycle. >> think about why he's doing what he's doing. >> who? >> ben bernanke, i mean, this is the reason, i mean, all of this comes back to 0% interest rates and worrying about the banking sector, and he's worrying about the economy still. he would rather create a wealth effect of people buying stocks and the economy getting better and the risk inflation, no doubt about that. and 0% interest rates and that's why people are buying commodities and why prices are going up and gas prices are going up. i don't think that 0 percentage rates are going to last forever. i would rather see a little inflation, than a depression. >> oh, everyone likes the-- >> when you open up your

401(k) statement one better and the prices are going up, you feel better and the thing ben bernanke said he didn't think that they were responsible for the housing bubble. and-- >> no, he probably said, i don't think alan greenspan is solely responsible, but there was fanny and freddy and risk taking-- >> and what i want to race with you though is this. if the genie is out of the bottle and more companies saying, i don't know what you're saying, ben, but we see inflation and i'm sure we're going to get others, no other reason to blame lousy earnings on that. then, he's going to be in a corner, right? >> well, sure, but i think that charlie is starting to get at it-- >> which charlie, gasperino or payne. >> you're the only one that calls charles payne charlie. i would never call him charlie. >> neil: he prefers mr. payne, but-- that's what i would call him,

yes, absolutely. but, low interest rates are part of it. and the other thing is where we are not seeing inflation is in wages. remember, we still have high unemployment. employers are not having to raise wages for their employees, right now. and by the way, this is not remotely a political issue or an ideological issue and there's no conspiracy here and that's what i think charlie gasperino had right. bernanke is not trying to work any schemes and the government is not trying to hide anything from us. there's a difference, but why is he doing what he's doing, and why is he doing, because, he knows, to some extent and knows about it, he's playing with fire here, why is he doing it? eplain it. >> and a little bit. and reason to a little bit. >> and what people are worried about, why is bernanke doing this? it is the absolute failure of fiscal policy, of obama, and why he's printing money, even

today. >> neil: what does that say that he's the only dove in the room and this is what he's done? >> i think that ben bernanke is not a lunatic, i think he's a pretty smart guy. >> i didn't call him a lunatic. >> we make it sound like he's throwing gasoline on the fire. >> i think he's he worried about the economy going backwards. >> and a lunatic if they're the head of the federal reserve and it's that easy and i didn't say that, but i'm saying that anybody that thinks that the federal reserve could easily manage inflation, they're out of their tree and by the way, one thing that should wake everybody up, what long-term interest rates have done in the last couple of weeks, we've got mortgage rates above now 4%, oh, i know, it's so low, but they can get out of control and quickly. >> if you're alarmed about a 4% margin. >> that's more per day. >> and you know what? i'm alarmed by it a spike and the federal reserve if they think that-- >> you're right about that and charles payne, you know, you

do have to recognize history to know that inflation, once it starts creeping up, boom, it's on, with a vengeance. >> and that's what ben alluded to and dagen, the ability that ben bernanke said on more than one occasion, he's making it sound like a light switch. >> what does he do? >> and let's say he has to address it, the only way to address it, and he's on track on the amount of money you're throwing into the system or you can raise interest rates. >> my greatest fear they'll wait too long. but the original premise of this whole piece, why doesn't the government see what everyone watching the show sees. >> are you saying that we'll be off our subject. >> by the way, greenspan did have the interest rates. and you had investors that fell out of bed and it was ugly and if that-- >> there's a reason by the way. >> february of '94, it lasted like eight months and i tell you, it's better than the alternative. >> adam, adam. >> all i wanted to say is that the government, the government is not looking at one data

point. look thing at just the hour, they're looking at everything. >> and i would have accepted what adam was saying until he did that quotation. >> i hate it, but i love adam. >> when he we come back, the companies getting in your face, by getting into your facebook account. they want to really check you ought before giving you a check. and someone says that this is the best thing for the job market. and that's why forbes is such a great show, they don't mind ticking the entire country off. and saying a few of the house olds watch them. up next, trying cuts and finding yourself cut down for the efforts. paul ryan is finding out again. >> the baerj state benefit package. to roll over my old 401(k) into a fidelity ira. man: okay, no problem. it's easy to get started; i can help you with the paperwork. um...this green line just appeared on my floor.

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i'm jamie colby. the new details this morning into mf global's collapse showing the former ceo and former new jersey governor john corzine may have lied to congress. according to new e-mails released suggesting that corzine asked 200 million dollars transferred from a customer account 0 before the company tanked and the money allegedly moved to the company's accounts overseas and if it's true, that would conflict with consider zion's statements under oath, and mf global filed for bankruptcy back in october. and he's calling it a pilgrimage of hope. end to drug related violence in mexico. before meeting with calendar rone. it's the first papal visit since john paul. 2's trip. >> see new 30 minutes. keep it here on fox. >> and they're back! >> and less popular than ever. >> paul ryan, aka, the

medicare banker. and they have the placing for medicare, with the posse in congress locked and loaded behind it. and weekend at bernies, even when no one in america wanted to see weekend at bernie's two. they went ahead and made the sequel anyway, if you like low he cal tv stories about angry seniors chasing republicans down the street. you're going to love young guns two. >> well, at least this time they brought humor to the table. i like everything about all the weekend at bernie's movies and i have no idea what they were trying to get at here. is it any wonder nothing gets done in washington. that ad was put together before lion had the plan out and they didn't know what the plan was about. it had to be evil, it had to be bad and here we are, charles payne, again. >> and here we are, it was a great ad no matter what side-- >> by the way, after a weekend in bernie's, i would have done

a weekend at bernie's, two, three and four, i guy grdigress. >> the same argument, the same sort of, to your point, it was made before the plan came out, the plan was given no consideration and yet, we're going to-- we're over a thousand days with the federal budget. at some point, someone missing the room in the segment and someone is going to have to step up to capitol hill. >> that's right. look, we're sistering default in the face and this company cannot keep up with the same fiscal policy we're keeping up and we're going to default eventually and very, very hard times, what's happening in greece, but the real hardship here is going to happen there. and we've got a brave man who steps up and has a plan to avoid default and i think that representative ryan deserves kudos, for this. in a huge way. >> adam lashinsky, i'm sure you're right on this one. >> well, i just want to say

that i'm just shocked and appalled that somebody made a hard hitting, a political ad that was not nice to some of the people in the political arena. come on, everybody, this happens all the time, the democrats have been bad at it for years, trying to play catch up with the republicans, so, you know, we should pat them on the back for coming back. i would have mentioned something that you said, neil, you said that nothing gets done in washington. nothing gets done in washington in an election year, so, i also applaud congressman ryan for putting the plan out there to be brutally shot down so that we can discuss it in the campaign, and something will happen on this next year. i promise you, but the only prominent republican to support it, this is surprising, mitt romney. >> that doesn't surprise me, everybody is out there worried about winning votes and it's up to the american people whether they want to read the ryan plan and hear the cold hard facts and decide they'll get behind somebody who will actually do something about it. beyond that, this is a real,

open to debate about what is the role of government. what is the social contract in this country? ultimately as a nation, we've go to decide that. >> and you know what's interesting, picked 55 as the age, the cut-off for this hand other to the new medicare. and i don't know if i'm for or against that because i'm just under, but that was interesting. >> a couple years left. >> unfortunately, it's getting very close, i would say this, as an ad i think it's particularly effective. i was distracted by the weekend at bernie and the faces and sfupd stuff. >> neil: to adam's point they do it all the time. when you know that it happens and anyone tries to move the ball, why bother. >> paul ryan, basically, simple. other ad throwing granny off the cliff. >> neil: by the way that was harvey korman. >> we asked why did romney step up to the plate and endorse the plan?

paul ryan got to be, if he's the nominee, paul ryan is going to play some role. i mean, vice-president maybe, maybe treasury secretary if he wins? and that's kind of interesting. and i think that's pretty much baked in. the other thing is, if you look at the ryan plan, what's fascinating about it, it's not all that radical. >> neil: no, it's not. >> right, but charles, ron paul was on and he said not radical enough. >> it's ironic, you talk about how few republicans got behind it, whether it's an election year or not. and the ad was in a comic style, but they couldn't hit it hard. no way to hit it in a hard, meaningful way and you've got to go at it, you know, the obama style of deflection or-- >> and paul ryan in a previous iteration teamed up with democrat ron white coming with a compromise. >> neil: and why is it part of the effort? >> part of the preem support. >> and call it a compromise and the only, really, the only democrat, but they call it a

compromise. >> that's in the ad though-- >> one in the end, who is the vote, it was ryan and who is the other one? >> mccarthy. >> all right. when we come bah being. with tax hikes turned out to be a losing lottery ticket? one cash strapped state is making it easier to buy online with a credit card, but that could be long odds of ever fixing a giant budget. >> everyone i've got big news, we are going to be rich! >> oh, my god, peter, there are thousands of lottery tickets here, where did you get the money for these? >> simple, i took out a second mortgage on the house. >> what?

every time a local business opens its doors or creates another laptop bag or hires another employee, it's not just good for business, it's good for the entire community. at bank of america, we know the impact that local businesses have on communities. that's why we extended $6.4 billion in needit to small businesses across the country last year. because the more we help them, the more we help make opportunity possible. >> coming up, one state is upping the ante in a dash for cash and betting on a new plan

to sell lottery tickets on the internet. this coming a

>> welcome back, do you think that raising taxes is the key to raising more money? well, think again. illinois still short on cash after they focused on tax hikes. instead of spending cuts it try and close a huge budget hole. that apparently did not work and they're hoping this will. the land of lincoln looking to get lucky, allowing them people to buy state lottery tickets online with credit cards. hoping to raise 6 million bucks with the man. >> it's irresponsible and with the gambling addiction of so many american people and everywhere. and what is next? the government next going to have online texas hold em and the state gets the pot and state going to have online pornography with the state

getting a piece of the pie? i mean, this is a really, really obscenely bad idea. of course, we need more money for state government, but to allow people to go bankrupt to use up the money they need for food or rent on gambling online, it's extremely irresponsible. >> neil: i'll put you down as a maybe on it. (laughter) >> dagen? >> i hate it. it's a regress seive tax and by the way, you're probably going to wind be up being able to buy lottery tickets in the back of taxi cab with a credit card, too, these states are desperate, but hits the absolutely wrong people. >> what about you? >> i can't get excite abouted it, personal responsibility-- >> listen, personal responsibility and bank extend credit cards to people that have credit that will pay it back theoretically and you know, maybe -- i just can't get. listen, the libertarian in me says if you're going to go there, go there, it's your

business. >> now, you're italian ron paul. >> it's about a gutless government and no one can say it better than ben just did. they cannot stobb their insatiable desire to spend, spend, spend and don't care where to get the money from. >> neil: the difference, they can do it online. >> it this opens up an entirelily-- >> with a credit card, okay, there's the little credit card. >> like drug pushers. >> adam? >> i think i'm the only son of the land ever lincoln here and i agree with everybody, except for charlie. it's not only a regress seive tax, they're afraid to tax those they need to tax. >> wait a minute, adam. >> and they should tax more or. >> let's go to the lower end of the food chain. >> adam almost snuck one in on us, they should be be tax the rich more and not control the spending habits. >> you're absolutely right,

unless, unless they can cut the spending. >> and with the lottery tickets, can you use your credit card at the machine when you go to the like a-- >> i assume you can at the 7-eleven. >> what's the difference? >> if you get it where you can fett get the foot long hot t.o.ing. >> in california, i don't think they can. >> and look at ben. you know, stein. all right, i want to thank charlie and dagen very, very much. in the meantime, up next, ben stein loves-- >> conservative investors as his list of favorites, but charles finally found a fund, a fund he likes so much, he's picking it on this show next. . >> we love it. we love it. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start.

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long-term potential. >> adam, what do you think of that? >> it is volatile and you are right. it is like picking a stock and it is dangerous. i like it but i would not do it for those reasons. >> for what reason again? >> in that it is extremely volatile. it underperforms on a one year basis and risky. >> i understand that. >> life itself is risky. >> what do you like? >> dividend growth fund. it is boring . if you want exciting. i guess i didn't see the goldman saches report. >> ben? >> i would love them both but i would go with taiwan. >>