camillo shell will get the real headlines with none of the mercy or can live out of washington d.c. meet the press for the first time since the fed was founded in one nine hundred thirteen the federal reserve chairman took questions from the media so we'll tell you what the wise men ben bernanke he said about the future of the u.s. economy and then a shake up of the obama national security team the cia and the pentagon are getting new leaders so how will these changes affect u.s. wars taking place in the middle east and north africa then burgers debunked again

president obama surprised everyone this morning when he released his long form birth certificate what should he have kate for the birth of their crowd or will they simply move on to the next theory and then does the crime fit the punishment oklahoma lawmakers passed a bill that would mandate up to a life sentence for anyone convicted of converting marijuana and hashish more on that later in the show but first let's move on to our top story. so i try to reserve chairman ben bernanke he held a press conference and it was the first of its kind since the fed was founded in one thousand thirteen and supposedly it was the first of what will be for annual news gatherings so did the earth rattled or the winds blow did the world change well not quite as usual dry till morning he said a whole lot of not much it q.e. to work yes but it didn't fix all the problems will they do it again you know because they don't want to become a larger concern although the rising gas and food cry. we're seeing now are just

transitory and there's nothing of the fed can do about those and then unemployment yeah that's still a problem too so why is the fed suddenly opened up to the people and will it really make any difference to you and me to discuss this from our studio in los angeles is nomi prins senior fellow at demos and author of her latest book it takes the pillage behind the bonuses bailouts and backroom deals from washington to wall street and we thank so much for joining us tonight now what did you think of this first ever press conference coming from the federal reserve did you hear anything groundbreaking coming from ben bernanke you today because i sure didn't know either the earth certainly didn't move i mean i think. the. excitement before his speech and much as a media was actually larger than any impact after the speech there wasn't a lot said in fact he spent about ten minutes going over what the f l m c had just said earlier in the day really just confirming that he agrees with his own

committee and then when i was answer really tepid and taking questions from the media and it was all over within an hour why do you think of the fed decided to make this move mean it's always been this secretive organization right it's always been out of the public eye but do you think they're starting to feel some kind of pressure that there's you know there's resentment from the public and there's a desire for transparency more political pressure for that. i think there's sort of an extra no message that says we want to be transparent but again there were no secrets that were brought out in today's meeting nothing earth shattering came from her neck you there's nothing that he said that we didn't already know in fact all he did was confirm that you know the fed is doing the right thing always does the right thing and solutions a little higher but if you don't count gas and food then it's not really any even if it is it's only transitory jobs are still an issue but we are trying and we've done some work on the party basically has really said what he said before in other

forums this is a man who's been in front of congress before answering questions this is been a man whose press conferences with in private forms are actually made public and put on television he's been on sixty minutes so it really wasn't the sort of be all end all open up the secret chest and really show everything that's going on and show their hand it was really just a kind of ok i get it there's a little bit of negativity on the part of the called who thinks that we are too secretive and are doing the wrong things except for and so we're just going to come out pretend we're not secretive we're going to talk about transparency we're not really saying anything that we don't already say and then we're going to sort of check that off or listen to what we do anyway but i guess makes sense right if he's the one that's making these policies then i guess he's not going to come out to the press and say that he thinks that they're bad policies but let's break some of those policies down you and i've heard sample you know he was asked if he thinks the quantitative easing two was a success and he said it. was

a success and the people the property was really going to fix every single problem they were wrong regardless it works do you think he worked. since kill each of the dollar has devalued the commodity prices particularly in the metals market and in oil have increased the stock market has certainly increased its on the balance sheets of the bank's books and some corporations are looking better. but in general that doesn't necessarily mean it hasn't meant that anything is been fundamentally different for the main street economy we still housing problems are so job problems we still call the general recovery situation that we have anyway so he's not going to come in and say that what he decided to do didn't work he basically spun it as it did work we did do the right thing everything you talked about was the fed doing the right thing but if you look at it in terms of main street measurements. it hasn't helped but then he had an answer for that too it wasn't suppose you know

nothing can change in a day we all have to be patient and anything that he has done that has worked a little bit will sort of show us its magic its on future date it was all the right decision now of course he was asked and you mentioned earlier too about rising gas prices and basically acted like everyone else is going crazy and perhaps they're a little too worked up over this he said don't worry the prices will go back down turmoil in the middle east but also calm down i don't really know how he has a looking glass to be able to see when all of that is going to end here but in terms of inflation like you said he's saying that you know rising gas and food prices are just transitory that those aren't really things in the long term that's not typically what the fed looks at when they think of inflation but should it be a larger concern for us. well of course it should because it's wood but the fines how we operate each day gas prices have gone up on the consumer price index but twenty seven twenty eight percent in the past year energy services in general are thirty four percent that's real that's what it cost people to get to work when they

do have jobs that's money taken off the top of what they could earn when they are able to earn it so it's absolutely a problem and in even just talk about the fact that it was transitory he used the sort of made it economic. answer to everything that supply and demand that you know what there is there's a lot of international of tickle your merging markets in man for oil so it's gone off there's this unrest in the middle east which is going to go away so there's reasons it has nothing to do with speculation it has nothing to do with the fact that the fed's keeping rates around zero there's a lot of cheap money pumped into a system that's looking for investments in oil it's pretty good because you do have the screen of this kind of supply and demand stuff around the outside and he didn't address any issue any any potential concern that relates to the rising gas prices and how the fed might actually be causing that was all sort of like happening outside of any policy now for not controllable by the fed lastly to you i think

that if he tended to put a little bit of pressure on congress on the white house especially when he was asked about that as an pm kind of said that while he maybe didn't agree with what they did in terms of the u.s. on reading that maybe that would be a good kick in the butt for congress to actually start acting on this issue do you think he's right there. i think there is obviously probably yes if you mention it i think it's a little bit past in the gulf again from the federal reserve they're actually part of the reason we have a debt problem there's been a four point something trillion dollars worth of treasuries at the treasury department issued that the fed boss through q.e. two went through sheep in rates and threw one point four trillion dollars of excess reserves from the banking system that the fed pace interest on to our banks that's parked at the back of the fed is an awfully big part of this problem and and again bernanke he didn't acknowledge any of that it was all sort of congress should like work on that deficit thing we have nothing to do with it and it's a big deal or it's a potentially big deal sorry it was mentioned but you know we need to work on it so

maybe we like bernanke you better when he was secretive and not talking to. one of the difference i want to thank you very much thank you very much for joining us and yeah definitely nothing earth shattering here because very personal reserve press conference thanks so much. now twenty years ago it was regarded as the authority on the post called world world the end of history and the last man was francis fukuyama spirit neo liberal economies were the only way forward for this week for yama and the world were forced to reconsider those ideas as the i.m.f. announced that china would overtake the us economically in just five years r.t. scale import of ports. with china weights it will shape the world sue said nikolay two centuries ago. merican politicians and economists thought it would have a little more time to this news but twenty years ago francis fukuyama declare that economic and political liberalism was the end of history democracy was really all

there is now the final and most advanced stage of societal development is what i was referring to was really the growth of a kind of universal consensus on the you know the justice justice or the rightness of principles of liberal democracy was really remarkable about our world. today the world much different just ten years ago the u.s. economy was three times the size of china but new data released by the international monetary fund this month shows the chinese overtaking the u.s. by two thousand and sixteen that's just five years china is authoritarian but you know half capitalist country growing like busters they do all these big infrastructure projects very high speed rail airports chemical comparisons our u.s. and chinese economy use currency as their basis but using purchasing power parity at the i.m.f. says that the chinese economy will grow seven point eight trillion dollars over the

next five years the u.s. economy on the other hand will only grow three point six trillion this leading to the lowest world economic output by the united states in its history just seventeen point seven percent and some economists say twenty sixty. he is a conservative estimate in real more realistic terms try to pass as a little bit sooner than that but that's only five years and i think this is huge implications and that it's those new liberal policies such as deregulation and tax breaks for big corporations that have created a huge wealth gap in the u.s. and held american development back to creating you need to. open up and probably close you can of your economy to go back. and they say that china's rise flies in the face of fukuyama theory china is definitely a refutation of the idea that you would grow. in arms is what works and here is an economy where the state controls not only the banking system but most of the war

corporations they control vestments which is you know twice as much as a percentage of g.d.p. as it is in the united states and. so for us this is a growing economy and in the history of the world. an economy that has lifted three hundred million chinese out of poverty well the number of americans living in poverty increased from thirty one point one million to forty three point six million and just the last ten years through wood from revises theory it's hard to say i still will bet on a system of checks and balances over you know even a good quality authoritarian system killing ford artsy washington d.c. . still ahead tonight the sly efforts to shut down the site wiki leaks is raking in some major donations that story just minutes away and then panetta to the pentagon and petraeus to the cia president obama hates his national security team so what

are the moves mean for the u.s. military operations around the world but it's got to some are. we. right. leg i think a lot of money well. we never got the treasure bird in the safe haven grad you can complete the freedom . my guys welcome michel and tell me about a show we've heard our guests talk to say on the topics now i want to hear from the audience has gone to you tube to video response or to twitter for part of the

questions that we've host on you tube every monday and on thursday the show long response is to leave playboy to make up. for the six ft. five. you know your story and it seems so. easy to understand it and then something else here's the part of it realized. that.

the u.s. government. and its founder julian assange is our enemy number one the sun just portrayed as a betrayal of u.s. national security interests somebody who is circumvented the power of both the us media and the government to expose the american government secrets get a new report shows that julian assange has caused does have a large base of support even after the massive smear campaign launched against them and the government pressure on private businesses just on that the german nonprofit group while holland foundation who oversees donations to weekly leaks has been keeping track of how much money has been coming into the site the route twenty ten i believe it or not there's a pretty significant number of supporters enough to donate one point nine million dollars despite having its pay pal account shut down in december i'll take a look at this chart that while holland is created documenting the influx of

contributions throughout the year if you notice in april of last year there was a huge increase in donations and i would like to point out why it was the same month that a song we could be released their first major leak they got international attention collateral murder where members of the u.s. military opened fire on civilians and children. there either. so i think that you can say that this video triggered something in people all over the world that made them want to donate to the cause of transparency but let's take a note at the end of this graph in november and in december the site took in almost seven hundred thousand dollars in donations and if you think about it guess what wiki leaks released at that time do you member that massive dump of two hundred fifty thousand diplomatic cables revealing what goes on behind the scenes of u.s.

diplomacy keep that in mind so looking at this data i think of there is an obvious correlation major dump major donations and although it's becoming clear that the wiki leaks mission has a large amount of support the f.b.i. is still working overtime to bring them down according to reports from glenn greenwald and salon dot com the f.b.i. has just issued a grand jury subpoena on a cambridge man who's publicly linked to the whistle blowing web site and the subpoena specifically indicates the suspected man is in violation of the espionage act and we should note that up until now no non governmental worker has been accused of such acts so while the wheels begin to turn within the obama d.o.j. we'll be keeping an eye on the unfolding drama in cambridge and continue to monitor the situation in alexandria where a grand jury could be forming to try to prosecute julian assange regardless of efforts it's obvious of the world has caught on to the power of his whistle blowing web site and whether or not people agree with what they're doing i think one thing

is clear they are at least paying attention but i would even go far enough to say that the influx in donations proves that people are and are tired out there anough be people are tired of failed attempts of government transparency they want change and i think they're thinking weekly for the work that it does. now it looks like the rumors that we heard over recent months are true president obama is expected to make an announcement tomorrow now meeting general david petraeus to take over as director of the cia and to name leon panetta current cia director as the replacement for robert gates as the new secretary of defense and you bastard afghanistan is also expected to be announced with all signs pointing to ryan crocker a five time in bassett or who last held the diplomatic role in iraq and the timing here couldn't be more important troops are scheduled to leave iraq supposedly by the end of this year this summer troops are scheduled to begin withdrawing from afghanistan although no details have yet been given as to what that's going to look

like in size and scope and add to that the news today an afghan military pilot opened fire on u.s. troops killing eight as well as security contractor that makes it the seventh time this year that we've seen afghan forces turn on the coalition troops or seeing the taliban and personate that and according to afghan officials pakistan is also amping up its pressure for karzai to ditch the u.s. and build a long term strategic partnership with pakistan and china instead so it's easy to say that there are a lot of troubles a lot of tough decisions ahead for obama's national security team so will these changes make that situation better or worse joining me to discuss it is lawrence korb senior fellow at the center for american progress and jack rice former cia officer and criminal defense attorney general i want to thank you both for joining me tonight now lawrence i'd like to start with you if you don't mind i think you know you think of these changes specifically we're talking about both petraeus and panetta good moves bad move i think they're terrific because secretary gates has

wanted to leave so he got pretty far you have a lead it's very hard to get someone from outside the administration with all the before the election you want someone who is going to be cool what the pentagon house who the president wants to cut the pentagon by. and that is former director of o.m.b. how you want so man who when you make the reductions understands the world is just coming from the cia he's been looking at it we want someone who's going to be able to work with congress he's a former congressman and he was a republican before he became a democrat so i can't think of anybody who would have better experience to carry out. president obama's agenda similarly i think by building general petraeus to the cia we've had some differences between the cia and the military about what exactly is happening particularly in afghanistan hopefully general petraeus will be able to bridge that gap now jack i want to get your opinion here what do you think of these and this is i think a lot of people are describing this as

a shakeup but if you really think about it it's it's the same faces that are just being put into different positions and you know given an entire. you know you're absolutely right i mean if you think about if you'd rather kate's a good night for her boss at cia for part of the time that i was there what would you bow administration in general was a continuation in some ways of what we've seen from the bush administration and if we think about this so-called shake up you're absolutely correct that it really isn't changing very much it really is the same voices the same faces the same approach and so we should simply shipping some of these people around i mean i think one of the benefits that the president has right now and again our other guest here is absolutely correct that they don't really have to deal with the problems with congress here because both of these men have already essentially been anointed so nobody is going to turn around now and say well you were fine when you were commanding all the troops in afghanistan or you were fine when you were control of the cia now we're going to ship you about and all this and they're going

to have problems and no part of the reason they're doing this is because they are not going to have those problems as we get closer to two thousand and twelve which is you are a huge part of the component here so you think that panetta perhaps as former director could get budget cuts passed through congress and it's one thing to have a good relationship with congress it's one thing to have this on your track record but even robert gates himself despite saying that he wants defense cuts to happen hasn't been incredibly successful on that measure no he has never tried to cut defense budgets he slowed the growth of this is different we're talking about real cuts and i think it all be part of a deal with which the congress of the administration is going to put everything on the table and defense has to be part of it the advantage of having prevented bulis he understands how to deal with projects in an era of constrained resources and he brings that skill to the two to the job the other thing is having served in the pentagon they like people but in the service he's been in the in the military so i

think he brings brings that to the table as well which i think is very very important and one of the most important appointments he. it is ryan crocker terry colbert for general i can bear you know afghanistan because if there's a leak of bob woodward's book people go oh that i could very didn't think of cars i you know and ryan crocker husband ambassador to pakistan he knows the area and how he's worked with the military in iraq so i think that will improve the climate in afghanistan as well well since you mentioned ryan crocker here we had a number of news stories coming out of afghanistan and pakistan today first in afghanistan there is a. pilot who for twenty years has been a pilot who then ended up opening fire and killing eight u.s. troops killing a contractor and this is something that we've seen happen many times before either someone who has decided to turn against international coalition troops or someone who's been a taliban impersonator then the wall street journal is reporting that the pakistani

foreign minister is now pressuring karzai to give up on the u.s. not really sure how he's going to do that and stick with pakistan and its ally the chinese so i do think the ryan crocker israel is going to be really important here what do you make of that report from the wall street journal here jack. well i think this is huge i mean the fact is that afghanistan is an unmitigated disaster and in some ways it's getting worse not because of what's necessarily happening just you know i can understand but what's what about it pakistan because every time we talk about this issue every time we talk about the region you can never do it in isolation it has to be the two side by side i think time in kandahar kabul or herat other parts of the country and if we look at what's going on right now in pakistan it's fascinating to see what the pakistanis are doing and they're pulling back from the americans regardless but we have to really pull back further and look at what it is that pakistanis are always been interested in if you think about the

pakistani i.s.i. their intelligence service they essentially created the taliban drew the taliban into afghanistan for one purpose it's to gain control team influence in the region the idea that they would actually go to karzai and say come to us is frankly pretty credible pretty honest when we look at what they always try to do they want to control this area they want to ensure that they are the ones who get to put their stamp on it and they're driving forward makes a lot of sense based upon what they've done in the past i'm just wondering with petraeus now going to the cia does that kind of give him an easy way out of this war in afghanistan that he was asked to take over there is supposed to start a schedule with or all in july we still haven't heard any type of numbers in that respect we still have no idea when this war might end he is a quagmire it's a mess and now he just gets to wipe his hands clean of it or perhaps make i.e.d. labor on a different terms of drone there writes the real significant thing is for obama

because he has said that he wants a significant drawdown this summer given the fact that general petraeus with his strategy he's invested in it he may not be happy about that whereas he's not there anymore so i think will be much easier for obama thinking that perhaps it is a strategic move by a while i get it i mean everything. politicians there was is a first for a change of benefits oh here's a does help you know does help obama you could have a new commander there and given general portray a dispatcher in this country because of what happened in iraq it would be very hard for a president to go against him if that were his position so i think this is a good sign in the sense that jack points out if you want to get out of afghanistan while you can i think this was the you know what if i there's an additional angle to this that i think we have really discussed here and your idea of moving to train us over to see does something else too if we have to go back to really just after nine eleven and you saw this through donald rumsfeld the former secretary of

defense where you started seeing more of a militarization of the intelligence community even to even state department too but the idea of bringing somebody like petraeus into the agency really drives them closer in that direction to essentially being something at the hip with the d o d b now there is a benefit to that there is a detriment to that because frequently right now if you have nothing but intelligence that students driven for the purpose of giving the military what they want you miss a lot of the other advantages and requirements the intelligence community really has and that's really to provide intelligence to a lot of these lawmakers in washington if all they're doing is essentially giving targeting and giving the site selection it doesn't really do all of the other things the intelligence community may need so we have to be really careful and heber eyes on that one too but how much of the intelligence do you think of a trace really might be passing on to congress or how much more might we see of

this fusing right and even sometimes role switching that we've seen between the military and intelligence agencies lately i mean is this also a strategy to wage more shadow wars use more drone strikes in places like libya like the like yemen like in pakistan so that we don't any longer have to commit any type of ground troops who. i think the day. that i want to make a way i think i did it was very quickly i think that is one of the biggest concerns that i have here i think about what it actually might mean if you see the intelligence community and specifically cia absolutely controlled from that perspective it's one of the problems we've had in the past you know that's sort of the philosophy you're going to take now it may cause serious problems down the road it will be as you mention yemen of course afghanistan pakistan somalia and the list goes on and on from there i think basically we have reported on a new strategy secretary gates said we're not going to send large land armies into

you know a sure the middle east or africa and so the future of dealing with this threat will be drones and special forces and cia agents on the ground like you have and a pakistani so that means petraeus essentially probably will still be somehow controlling and leading whatever the speech or errand for yours might be john i want to thank you for joining us tonight now we're taking a break but coming up he's been bashing china for weeks in the media turns out of his business man of the clothing line made there is tonight still time here and a further is our eating for president obama really has a long form birth certificate today again proving he's a u.s. citizen but you came to the birth crowd an experience most of the young thirteen aversive he joins me now we come back. let's not forget that we are in a park right.