>> trace: welcome to the glenn beck week end edition. goldman sachs, they are cozy. tangled web that neither of them want you to see. federal reserve is on the hot seat. why the lack of transparency and why can't anything get done in congress. ron paul will be here to talk about that. ben stein and the growing up in of czars, 32 in the obama administration and more to come. if you believe this country is great for crowds in washington try to run up to the ground and stand up, come on, follow me!

>> glenn: i'm going make your blood pressure pump. goldman sachs posted higher than expected earnings of 3.44 billion dollars, up 65% even though they took over $10 billion in government aid in which they were allowed to pay back last month. now, the packages we're averaging around $770,000 for each of their 29,000 employees with top executives gaining millions of dollars. treasury-secretary henry paulson former ceo of goldman sachs, this is how it all started. he was the former head of goldman sachs. then, of course, george w. bush made him treasury-secretary. what is the first thing that he does. first thing we go into this

crisis, he let's bear stearns fail. that was one of the big competitors of goldman sachs. and then fannie and freddie, then he says lee lehman brothers which is the biggest competitor of goldman sachs, let them fail. so the former goldman sachs ceo let's two companies fail. the one company which was one of their competitors and then the sending one was the biggest competitor. then they decide the next day after lehman's chief stopped aig failed. the only one to help paulson out the former ceo of goldman sachs, in the room was a guy named lloyd blanenstein. they decided you should bail out aig. so they bail out the day after they let their competitors out,

they bail them out to the tune of $85 billion. these two jean uses, say yes, you have to do that for the economy. so who is the biggest single payout from aig? what a surprise, on the check, make it out to goldman sachs for $12.9 billion. now, the treasury secretary again hank paulson, remember goldman sachs ceo, he decides he needs somebody to head up tarp. who do i know? there was a guy goldman sachs. he is going to appoint to oversee tarp and one of first things he does, goldman sachs has to be changed to a banks holding company. that way they can have access to tarp, fdic money get money from the fed.

that way they can be saved! right, right. so cash carry, he's out. he has been replaced by gary ginsler, he is former partner at goldman sachs. now, once cash carry has made goldman sachs a bank holding company, they don't have that pesky sec thing. they have a guy named steven friedman, the former chairman of goldman sachs, now overseeing them because steven is at the fed, used to be at goldman sachs. but not now. steven wasn't just used to be at goldman sachs, he had a lot of stock. he was on the board of directors. that is the conflict of

interest. you can't do that unless timothy guided geithner comes to the rescue. please, please, can we have stevens who is on the board oversee goldman sachs? sure, of course. timothy had geithner says absolutely. sure we can do that. he gives them a temporary one-year waiver of the rule which meant that he could not only hold the shares, but this one that you could serve on the board of directors and also, mr. friedman, he can also stay on the board and buy an additional 52,000 shares of goldman sachs. in the meantime, time, he makes $3 million. now, just so you know, goldman sachs, they have learned their lesson. look at them, they are profitable now. sure they took all this money and they took this money over here. sure, they took your money. they paid it back through tarp,

but this is their money from aig. they learned their lesson, no more did he river activities. they're not going to be doing oil speculation as much as they were. they have a new derivative, the green environment. they have purchased 10% of the chicago climate exchange and $1 billion of carbon assets. that is fantastic. they are endorsing mandatory limits on carbon emissions, $23 million to buy that 10%. so half of what we gave them through aig, a billion dollars in carbon assets, such as alternative energy projects. they are lobbying hard for that cap and trade that will be good for you, the small business man. two more things in this web of bubbles. there hired a new lobbyist for

goldman sachs. he is michael peespeas. and they actually hired him. they had to hire him because this guy left, mark patterson a goldman sachs lobbyist and he has been moved to chief of staff of timothy geithner. tim is not a goldman man and michael, we found him in barney frank's office. can i ask you a question? do you think there is anyone out there without an agenda in washington, d.c.? can we find anyone who just says i want to fix the problem, i'm not part of a web. somebody without a conflict of interest. we're go being spun in a web of lies and we're caught up in this web.

don't worry. people will tell you over and over again, we survived worse -- no, we haven't. >> founder patrick burn who says he believes goldman sacks is a criminal organization. i want you to take a look. >> this as if we bailed out an italian family and have a record quarter. there is a writer at the rolling stone who has written some of the best coverage of this financial calamity is from matthew of the rolling stone. he has summarize this had in one sentence, rich bankers bailing out rich bankers on your credit card. >> pa trickle, i don't know, i think you would agree with me that wall street owns our government? >> rul. economists have a term for it, it's called regulatory capture.

society sets up regulators to protect us on from certain industries but often those regulators come under the thumb of the industry. they are called a captured regulator. they have captured the institutions that are supposed to protect our country from wall street. >> do you think this the same thing. i think it was last night's program, we have merged our government and these gigantic corporations have merged. the framework, if you are not in one of these gigantic corporations, forget about it? >> it's called an oligarchy. there is economist simon johnson and he's been given some electric tursz on this, this is just like the imf. what we're faced in this country is when the imf went into argentina and russia, you have

an oligarchy who highjack the government. they get out of control and make a lot of money. then it collapses. his job with the imf was to go to places like indonesia. they end up with a new leader who is a bold, young visionary but they look them squarely in the face, is this guy, is he really willing to stand up to do to break the back of the oligarchy. the united states, that is exactly the situation you are in here. that is exactly the situation we're in, it transcends party politics. they have captured washington, d.c. and they have just prevented, they manufactured this, not deliberately, but they manufactured the loopholes that let this happen and they are doing everything they can do to keep those loopholes from being

closed. >> how come i'm not being hearing this? >> the media is largely captured. new york financial press has become very close to the financial community on whom it reports. so they will not report the kind of news and evidence. you only see at the fringes but very respectful people, simon johnson, it's great that the message is breaking through the smoke screen. >> glenn: i wonder if it's good or i'm suddenly on a really dangerous boat to hell. >> don't worry. they are the most powerful people in the world. thank you so much. let's go to ron paul the congressman from texas. congressman, i draw this spider web up here. i see it. i think to myself, at the center of this really is the fed.

they are in this thing all waited around. yet, you want to talk about powerful people. you've got a majority of congressmen that are willing to say we need to open up the books to the fed. you can't even get this thing brought to the floor now. why is that? >> well, so far we haven't been able to. we have 273 which includes 90 democrats. so the large majority of the coming men wanted, it's not because they really understand the issue. it's as much of the fact it has struck a chord with the american people. they are demanding more transparency. i think this is very good. we had the first demonstration last week when they tried to bring it up in the senate. he was doing exactly what they had done four times on the bill they ruled him out of order. they sd said you are not

following the rules. that means from the administration and leadership, those republicans and. >> who is blocking it? >> i don't know the individuals. i would know one thing, if obama wanted change and change is he would do something. we got nearly million dollars from goldman sachs. this to me is a perfect example of my argument, there is not a lot of difference between the two parties. you take this goldman sachs issue. wouldn't it be revealing if we were able to get the transcripts and all the agreements and discussions that all treasury and all federal reserve officials with goldman sachs? that would be a revelation. they are hysterical when they think we're coming down to open up the books. i got information the other day

during another crisis in central america, the banks are in trouble. i've said, went to the imf and told them to pay the interest to the banks. that is how corrupted it is. as the system continues to falter, they're going to move it all over to the imf. they'll have a world organization so the powerful elite men will have a world currency. that is planning for right now. we as a people have to wake up. my effort is exposing the fed. open up the books. we have both republicans and democrats demanding it. you made the right pointed, how are we going to get the leadership what they are demanding. >> glenn: how much time do we have to wake up? >> that is hard to say. timing is really tough in economics. i would guess just a few more

years. i would think the handwriting would be clearly on the wall clearly before obama finishes his first term so means the crisis the value of the dollar, not just the financial system. we will see high inflation rates soon. >> congressman ron paul, thank you very much, sir. >> speaking of the fed, a videotaped of alan grayson grilling the inspector general, tracking trillions of dollars of your taxpayer money. watch this. >> i'm asking if if your agency extended 9 trillion dollars in credit which works out $30,000 to every single man, woman and child in this country, i would like to know if you are not responsible for investigating that, is? -- who is? >> we have responsibility for

the federal reserve programs and operations, audits to conduct audits in that area. in terms of who is responsible for investigating, would you repeat the question one more time. >> what of you done to investigate the off balance sheet transactions conducted by the federal reserve which according to bloomberg now total 9 trillion dollars in the last eight months? >> i'll have to look specifically at that bloomberg article. i'm not -- i don't know if i have actually seen that particular one. >> are you telling me that nobody at the federal reserve is keeping track on a regular basis of the lawsuits that it incurs on what is now a 2 trillion dollars ports folio? >> i don't know. you are telling me that you making there are losses. i'm saying -- until we actually look at the program and have the information we are not in a position to say whether they are

losses or to respond in any other way to that. >> glenn: coming up if you think unemployment is bad at 9.5%, turns out it skyrocketed to a lot more than that. lot more than that. the truth about our (female narrator) from jennifer: a microfiber sofa bed. just $299, only at jennifer. $299. jennifer: the only place to buy a sofa bed. 90s slacker hip-hop. ♪ that can strain your relationships and hurt yourody 'cause we'pride ♪ng a ride ♪ ♪ it's the credit roller aster ♪ ♪ and as you can see it kinda bites! ♪ ♪ so sing the lyrics with me: ♪ when your debt goes up your score goes down ♪ ♪ when you pay a little off it goes the other way 'round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in the air, and wave 'em around ♪ ♪ like a wanna-be frat boy trying to get down ♪ ♪ then bring 'em right back to where your laptop's at... ♪ ♪ log on to free credit report dot com - stat! ♪ vo: free credit score and report with enrollment in triple advantage.

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>> glenn: i want to thank you so much for reading my new book "common sense," a case of out of control government. it is the number one book out of all categories, everything. "new york times" best-seller for the past four weeks. best-seller list. please i ask you, pick one up and please, give it to somebody. don't let it sit on your shelf. highlight it, dog ear it and keep it with you or give it to somebody else. i told you how obama wants to run universal health care down our throats but can we stop and look at the mounting debt and skyrocketing unemployment. it is worse than what everybody is telling you, i believe. walt zimmerman the vice

president of i-cap and mort zuk zukerman. let's start with you. can we look at the debt that we have. we just broke -- put this on the screen -- we just broke through in june 1.1 trillion dollars for the first half of the year. can you give me some significance to that? >> well. when you can't afford something but you want it, you go into debt. it's how this country has worked for a long time, at least the last 20 years, it's how the average american family works. nobody thinks twice about going into debt. it's a sign of weakness. its sign this country doesn't have the same power it used to have. it's a big cost to us all because the government is going

to have to borrow money to fund that debt. they are going to crowd the credit markets. interest rates are not going back down. >> glenn: when interest rating up and all the good loans that are out there reset, what happens? >> if you have a massive amount of mortgages that still need to be reset. much bigger. >> glenn: these are the good ones? >> yes. >> glenn: but it's not like it was. >> and with unemployment showing no signs of easing off and housing prices off 50% from the high, those mortgages need to be reset or foreclosures are ready to happen. >> glenn: mort, i read your op-ed piece. you are saying much worse than what anybody is saying about

unemployment, right? >> yes, i am. i think the numbers we are getting are headline numbers. 9.5%, it's doubled in the last year, plus one of the factors, rates of growth and unemployment we've had. if you look at what happened in the last month where they announced there were 467,000 jobs lost. we're still going to lose that number of jobs. if you look behind the numbers, the government assumes every month it's roughly 185,000 jobs that is being created in industries that are not creating jobs. if you look at the numbers two months out they jump quite considerably. what we are looking is a continuing trend of growth and unemployment. unemployment is going up. obama administration said when they proposed their stimulus program it was going to stop at 8%. we're at 9.5% and that is

unprecedented in this kind of prosperity. >> glenn: we hit 11% what happens? >> first of all, 9.5%, i call that fake unemployment. it doesn't include people who stopped looking, who gave up looking, involuntary part time. >> glenn: i'm going stop looking for a job. when do you stop looking for a job? >> let's say you accept part time work. those people are not included in that 9.5%. when you include those people, it's 16.5%. >> glenn: show me the chart here of america. take us around here. show us the chart. we have in oregon, 13% unemployment, but the broader definition is 23%? that is under-employed, people that want part time jobs. isn't oregon the one with the highest total, household

unemployment? >> that is the phrase they used to capture under employment and unemployment. >> glenn: but i believe they had the highest rates of hourly wage they raised minimum wage so they were ahead of curve which hits the rest of the country next week. this minimum wage, please don't do minimum wage because we're going into a recession. what is that going to do when they kick in minimum wage? >> clearly it's going to intensify the desire of companies who are trying to slash costs. they simply can't be competitive in this kind of economy and still make money. so what you're going to have is intensify, we're going to cut more people. i think we're looking, we said before, into increased level of under employment and unemployment, there are 25 million people 'that are in that

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join me at the top of the hour. now back to glenn beck. >> glenn: hello, america here is the hot list. common sense solutions to the story the mainstream media fall on. price of oil they say is coming down and they say that is good news. i say not so fast. it's coming crashing down. according to philip, he is the guy who correctly predicted that oil would exceed hundred dollars per barrel. now he is telling bloomberg, oil could plummet from today's price to $60 to $20 by the end of this year. well, you got a lot of oil, then no demand, that is what makes the pricing down. why would demanding down? no job to commute to means less

demand. nobody buying products, as he says, quote, if the recession continues and its warm winter it's going to be devastating. honestly, do you think the recession is over? also, they keep telling us that europe is warming, where does that leave us? anyone who tells you that the economy is sprouting green shoots, try to figure out what their agenda is. i think they are lying. remember their names and hold them accountable. now, here is the way to make money, invest it. invest in california ious, i mean that. good investment. california which is still facing a $26 billion shortfall has paid more than 450 million ious this month. but some banks have stopped redeeming them for cash. iou holders are selling them to

people who earn 3.75% on the deal assuming that california can actually repay those ious. head of a new york trading firm who started the trading, given the need for cash, it was quote, important to launch this market promptly. wait a minute, it sounds like the free marketed system is bailing people out. the ious some people were trying to sell it on the internet, you know that place where nobody ever gets ripped off. >> then wal-mart, i like wal-mart, i'm a fan, i shop at wal-mart. soon you won't find price on the tag. you'll be able to see how green and socially responsible all of their products are. wait a minute. didn't you just do universal health care. this is part of their new plan and ask 100,000 suppliers

questions like, have you measured your corporate greenhouse gas emissions, or do you have a process for measuring social compliance? wal-mart, what are you doing? it's a private company, they can do whatever they want. i would like to know why they are doing it. i think they see the handwriting on the wall and it scares them. if wal-mart doesn't do this, the brown shirts in this government, the progressives or going to forces them to do it. they have been trying to put this company out of business for a long time. how green a washing machine is, i really don't care. does it work, is it cheap? you're not going done able to ram them down their throat. thinking at wal-mart is same kind of logic that the administration is using to

justify negotiating with leader. now hillary clinton and president obama wants to sit down and talk with him, we'll make some concessions. don't get them too close because they'll destroy you. same advises for wal-mart. don't play this game. they want to destroy you, and in the end wal-mart, they will. >> next story is, al franken. i'm sorry, senator al franken. he had hard hitting questions for judge sotomayer when he learned that she was inspired by a famous tv lawyer, perry mason. >> i know you are a big fan of perry mason. i've watched perry mason with my dad, my mom and brother. we would watch the clock, we knew it was two minutes to the half hour, that the real murderer would stand up and

confess. it amazes me that you wanted to become a prosecutor based on that show. in perry mason the prosecutor, burger lost every week, with one exception which we'll get to later. >> i'm fascinated. >> we learned later she did not know the name of that one case that perry mason did not win. it was the case of the deadly verdict. can i say something. minnesota i'm about to rip your star off the flag. >> other people in the media like to call me the crybaby because i actually care about my country and sometimes i cheer up. men don't tear up. but has anybody heard about

chuck schumer and what he was drying about. >> now in 2009, many more role models for a student to choose from. with judge sotomayer foremost among them. >> glenn: you know what. because she was talking about her love for nancy drew -- it's true. >> back to the hot list. obama's car czar he is leaving washington, real story behind steve ratner and who

president obama: i took a trip to elkhart, indiana, today. elkhart's a place that has lost jobs faster than anywhere else in america. the unemployment rate went from 4.7% to 15.3%. in fact, local tv stations have started running public service announcements that tell people where to find food banks... even as the food banks don't have enough to meet the demand. as we speak, similar scenes are playing out in cities and towns across america.

hello, america. i don't know about you, but i love these czars we have. the car czar, steven ratner, the

chief architect of the gm and chrysler bailout. he is being replaced by ron blume, a united steel workers advisor. he is one of 32 of the obama administration soldiers and the list keeps on growing. coming up number one, none of czars play by the same rules as other advisors as cabinet members. in los angeles, economist, "new york times" columnist, ben stein and former speech writer for president nixon and president ford. you do not want to remove that from your resume? >> i don't know. i love nixon and ford. nixon is a great man. >> glenn: you know about the whole taped thing that happened, right? >> i do. i know that if they taped every

one of us, every one of us would have a lot to answer for. >> glenn: okay. ben, let's talk about the czar. speaking of president nixon had, one.... >> there is no pro vision in the constitution for czars. this is something that is made up. these are essentially presidential assistants. they go to the president and say you are a bad boy. they have no power. steven rattner had no experience in car czar. he has no experience. we don't know he is going to accomplish anything useful dpeorp ruining the rights of a lot of creditors. >> glenn: he was an investment banker. >> his record in making money for anyone than himself is quite mediocre.

>> glenn: he ran a group? >> some of those make money and some of the years he didn't make money and he is under investigation by the attorney general of new york state for possibly paying bribes, there is no certainty about it to get state pension fund business. i think that is why he is gone. >> glenn: you'll go for your guy being taped and breaking in but somebody can't bribe somebody for business? >> i think its double standard. you're totally right. >> glenn: i see it as such. >> this czar thing is out of control. is to control by the white house to bypass the cabinet and aggregate as much control in the office of president and there is no provision in the constitution. >> jamie: i want to talk about this whole idea the guy that used to run the steel union is

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economist, columnist, strange lay big fan of richard

nixon and good friend, ben stein? >> huge fan. >> glenn: great state of idaho? >> i like idaho. >> only here is the thing. we're talking about the 32 czars car czar just resigned. in may have a little shadyness in his past but we don't know who they are. they don't have to be approved by the congress. they can own stocks or bonds in companies and oversee them. what are we doing? >> i'm not sure that is true. these people are ranked. and had i to be vetted by the f.b.i. so they may have to. the main thing, the idea to appoint somebody to a job and the job gets solved is just ridiculous. you can appoint somebody to job, it doesn't mean he is going to

solve the problem. water czar in california, i don't see any more rain in california. >> jamie: you choose not no look at it. ron bloom was an investment banker and he was also, i don't know head of the union for the united steel -- i don't know if it was steel, or steal, i'm not sure. we can look in to it. >> he has no experience in automobile business either. it's amazing. there are millions of people with experience in automobile business. they are not getting any of them. none of these guys worked a day in an automobile company. what makes us think they are going to know anything about it. you have a young guy that dropped out of yale, what does he know about it? it shows us an infantile understanding.

>> they have the presidential feel behind them. you don't have to answer to these guys. legally you, don't, right? >> but the white house will make your life miserable if you don't. >> glenn: so america, this has not been kind of what we've been talking about the whole time. look at acorn, these community organizers, they intimidate and bully. we have czars and intimidating and bullying to get this way. >> no congressional oversight. america is disappearing before our very eyes. it's very sad and scary i l. i wish the america would wake up. the socialism is terrifying, especially in the automobile industry. we're the going see in it health care and energy. social.

is rushing toward us. >> glenn: ben, we've been friends for a long time. we disagree but i consistently say we have been stripping everything out of america. socialism is coming. at what point are you going to say, we are in real trouble? >> i think we're in real trouble. i don't think it's george w. bush's fault. he didn't understand what was going on. >> glenn: one was in a steam train and one was a jet plane. >> henry paulson was one that turned it over. washington still got their fingers in there. it's very scary, the constitution is important document and to throw it away is very terrifying. >> glenn: thank you very much. >> what is goldman sachs have to

do with acorn? well, you'll

>> glenn: do you remember the outrage over the aig bonuses? we went over to acorn headquarters in new york, to see are they raising any trouble. are they picketing about the average goldman sachs workers' bonus which is $770,000.

my radio producer, stu, was out in front in brooklyn when we caught up with him. >> we're out in front of the acorn headquarters. it's a time-honored tradition, community organizing group that you've only heard about evil banks but you're. >> you're with protestors here? >> yes go, as you can see they are very dedicated protestors. we've noticed that apparently protested the evil banks has gone out of style. we're trying to start our own protest of goldman sachs, a protest of acorn for not protesting goldman sachs. we've done a very good job. you do the logical things, you bring two blogs to start the protest and we've bribed them with smart food, they are going

pay the protestors. >> glenn: those don't look like handmade signs. it looked like an organized.... >> this guy right here is part of the protest and the two women who have professional art department in their houses. it's one of those things, this will get the community fired up. >> glenn: he may be crazy or really angry with you. i'm not sure. >> i think we've got something going on, good relationship and understanding the issues the same way. i think the most important thing we're worried about right now, if we get protested. if we get protested, this would be the history's first protest of a protestor protesting someone who isn't protesting enough. if you think about it in that context, it's historic. >> glenn: enough said. thank you very much.