to tackle the country's recession as well as a mind blowing study of how google's search engine influences the brain. welcome to the low to show that the real headlines with no mercy to live out of washington d.c. we keep being told the uncertainty is the reason that businesses aren't hiring well tonight our guest smith tells us why that excuse is not only destructive but in her own words propaganda needs to be laughed out of the room then rick perry says the fed printing more money may be treasonous michele bachmann doesn't think dave families count as families you have to wonder are the republican presidential candidates more extreme than ever before and according to a recent study the ability to just google it is changing what we choose to remember but is that a positive development or is it a sign that we're getting stupider we're going to speak to the lead researcher to

see what she has to say we're going have all of that and more including a dose of happy hour but first let's take a look at what the mainstream media has decided to miss. you know the name calling in politics these days has turned into a stream of never ending fodder for the media and let's face it why wouldn't it be when you have the words terrorist communist socialist fascist and you name it being thrown around so lightly by pundits and politicians alike the thing is it's one thing to address the name calling of and call out the name caller when what they say doesn't apply and quite another just to let it go unchecked and let me give you an example a couple weeks ago we saw an outpouring of anger directed towards the vice president who even though he denies it was reported to have called the tea partiers terrorists when it came to the debt ceiling debate again the vice president claims that he never said that the white house came out and said that they don't find that type of language acceptable and

a huge media debate unfolded asking whether or not the tea party really can be compared to terrorists which they can't but yesterday while at a campaign stop the present. was confronted by a tea partier about that issue but you are living with your wife. so the tea party are demanding to know why president obama was talking about civility when vice president biden allegedly called members of the tea party terrorists he just kept saying well let's face it him saying that on the news everywhere the absolute he said. now i don't really know biden said that or not but for starters i would like to give that tea party or their a little bit of advice and remind to the not everything you hear or see on the news is true which is why i spend so much of my time calling them out for that and so here we get to the next element see this tea party or was very upset about being called a terrorist the president said that he understands because he himself has been the victim of being of queues of being a socialist or somebody who was born in this country but at the end of that whole thing the tea party or later told reporters that he still thinks obama is

a socialist and that's where i have a serious problem the mainstream media and the right wing mainstream media machine known as fox news has spent an endless amount of time talking about how it's so wrong to call the tea partiers terrorists which i agree just doesn't apply but then when it comes to using other terms to describe someone the in reality well things that are one hundred percent not true then they just perpetuate it and the perfect example there came after warren buffett wrote an op ed yesterday calling for congress to stop coddling the super rich and make them pay their taxes like the rest of us but this is where fox news decided to take it. warren buffett wrote an op ed in the new york times today so we should be i think you mentioned earlier we should be we should be taxed more of just for the people who are a little bit when you go the ones who create well you're not getting any of these other job creators tax them a little bit more which they're not doing enough already what is this i mean owen is he completely a socialist and he's playing into mr obama's hands of. you know i have really had

it with this word i don't believe in a tit for tat eye for an eye mentality i don't think it's ok to call tea partiers terror. it's just because the right wing calls obama a socialist and i first started to believe that you should be able to say whatever you want because you have the freedom of speech in this country but if you're going to go on the airwaves and say whatever you want it's up to the media to check that and yet instead of checking it the mainstream media either perpetuate it perpetuates it by using the words themselves as you just saw on fox news or they just ignore it or scaf and giggle for a second and move on like m s n b c or c.n.n. but why don't we just settle this thing once and for all right here on the alona show maybe people will stop using the word socialism all the time if they knew what it actually meant let's take a look at the definition of this work and this comes from a number of dictionaries out there socialism is any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods

a system of society or group of living in which there is no private property and an economic system based on state ownership of capital don't matter what you think of the president or of congress or of the laws on our books and i know we've described what's going on in this country right now is socialism if anything we have a government that is too close to industry in this country but it's too close in the sense that it allows these industries to get off easy not pay their fair share in taxes and so the only people that are actually paying their fair share are people like you and i and the richest of the rich most often those in government or the ones who are leading the industries well they have plenty of private property private capital they hire from the state or for which there are enough loopholes in tax laws that they don't actually have to pay anything to the state. so when warren buffett or the president says that the rich need to pay more in taxes they mean that the rich actually need to pay taxes as buffett pointed out in his op ed yesterday he as one of the richest people in this country one of the richest people in the world paid less taxes last year than any of the other people in his office

those earn money from a job rather than make money with the money they already have and it's not about a redistribution of wealth it's about trying to even out the system make it fair close loopholes so that one portion of the population isn't getting away with murder while the other carries the entire burden but who wants to deal with definitions or facts right just let them call each other names let the american people be fooled and scared until they think it's real and that's what the mainstream media chooses to do and that's how they miss. let's face it because to me isn't getting any better and in fact one in three economists now say they believe we're heading into a double dip of a recession and for the more than sixteen percent of americans who are unemployed if you use the real figures in the us six that's not good news but is that these predictions that are keeping businesses from hiring the idea of more bad news if

you listen to them by them i mean the corporations in the businesses they'll tell you that it's the threat that higher taxes and more government regulation are creating financial uncertainty it's a little odd considering taxes are lower and regulations are fewer than in recent decades in the u.s. and according to our guest tonight that argument is propaganda that needs to be laughed out of the room so joining me from our studio in new york is eve smith creator of the blog naked capitalism and author of econ how unenlightened self-interest undermined democracy and corrupted capitalism eaves i want to thank you so much for joining us tonight and now where i got that line from where you said this is propaganda needs to be laughed out of the room was at a recent post that you put up when you were a guest blogging for glenn greenwald over at salon dot com can you elaborate on that for us. well it's interesting how uncertainty has increasingly in the business media become code i mean now that for we need less regulation we do less taxes you know that they've said they've they're so confident this idea that certainty equals

government intervention that they don't even need to bother unpacking the tag phrase in fact it's really obvious why businesses aren't hiring the economy's terrible i mean you pointed to the statistics we have an economy which before the bust was seventy percent consumption with high unemployment rates with millions more underemployed with plenty of workers not included in the headline unemployment rate consumers aren't feeling optimistic they aren't willing to borrow more money and spend beyond their means the way they were in the past and banks on accommodating them either i mean banks have to tighten up on a lot of consumer credit and so it is that there's uncertainty that there's actually a pretty. certain to that the outlook is going to be terrible all the business surveys completely debunk the party line the business is the culprit the business the surveys show that businesses are most worried about demand you know unless you're in a business that benefits from a terrible economy and there are some you know tailors for example are doing

gangbuster business right now unless you're one of those businesses that's countercyclical countercyclical you don't have good prospects and you don't have any confidence that the economy is going to get better any time soon why would you stick your neck out and hire people why i think that's a great question then but so then you know why would a businesses stick their neck out and start hiring right now no matter how many calls there are for them to please stop sitting on all the cash that they're holding you know it's interesting how it seems like they've switched spots with the american people who used to be the ones that are saving and now it's the businesses that are saving because until recently consumer spending didn't actually fall until what was it june or july. that's correct i mean the well it has bumped along at a lower rate but yes the basically there has been the trend has been that there has been. modest increases in consumer spending even from the crisis on where there was the fourth quarter of two thousand and eight really two thousand and nine with their big declines in consumer spending but the you know a lot of people have been surprised that there haven't been more consumer more

cutbacks in consumer spending you know for example the christmas season last year was much better than people anticipated but nevertheless you why in the frame you know you raised a very basic point which is that the intuitive understanding that everybody has about how the economy works is that consumers save businesses spend spend spend the money therefore you don't want government running big deficits because god for fit my crowd out business. investment by raising interest rates now that model has actually it's not just that that model isn't operating now it actually didn't even operate in the last expansion under nice under bush businesses have been net savers since two thousand and two and that's just an unheard of pattern in an expansion and you can look at the way the economy works overall now this is have terrible incentives stock market trading is very short term oriented investors are very punitive if investors missed their quarterly numbers big c.e.o.'s have stock incentive way to pay and so they've got incredibly short term oriented nobody wants

to invest anymore and so i think if you know you definitely bring up a good point there which is everything is focused on the short term it's focused on these quarterly earnings and how come we don't actually hear that discussed as much in the media the fact that businesses aren't hiring because they're more worried about making sure that they still look good on paper just in the short term and making sure that these executives still get their record bonuses every single you know every quarter rather than the fact that well this is part of the problem here . well unfortunately the business meeting remember the a lot of the discussion happens in the business meeting then the sort of the wider popular media winds of picking it up is that the business media itself has benefited from the short term focus because you know when i was a kid i started out wall street in the early eighty's people didn't care that much . about quarterly earnings to be perfectly blunt i mean yes if there was something extreme if there was either markedly good news or markedly bad news on the quarterly earnings of course investors would react but sort of the band of their

reaction was you know of. what where earnings could be for them not to react was a lot wider than it used to be in part because nobody took quarterly earnings that seriously they were on there they were and are audited there's a lot of noise between what happens in the quarter and what you actually see anyway . and but the business particularly in particularly when consumers started getting access to real time market data you saw a big shift in behavior in the late ninety's when suddenly you had the rise of the dot coms everybody was investing in them you know the stock seemed to be moving all the time and you had this this new obsession with where stock prices were and that led to more people watching the business media more closely so the business media is is the big beneficiary and promoter of the short term focus so how do we change the conversation how do you get both the business media to start talking about the long term and what exactly needs to get you know what exactly the country needs the world needs to get the economy back on track in the long term and to get companies

thinking in the long term do they have any kind of incentive to do that. right now no because also short stock holdings themselves are very short term oriented i mean there's so much if you look at the statistics particularly with now high frequency trading beings being so influential the average holding time even before high frequency trading took hold of the stock was under seven months i mean if you throw in the impact of a shift here i haven't seen recent recent as to six but it has to have collapsed so we really don't have long term investors in stocks anymore i mean the irony is that and the private equity funds which in theory they buy companies take them private in theory they should be able to take away take a longer term perspective in fact they just want to basically get the earnings up and throw the companies back into the public market so even they don't take much of a longer term perspective either i mean the biggest change and it would take a lot of muscle to do it would probably take changes in the tax code would be to discourage. c.e.o. incentives towards being stock market oriented and instead have them reflect longer

term measures of business performance like free cash flow i mean if you took if you go to business schools free cash flow which is what the business really makes that returns after that it's cash flow not it's reported profits reported profits can be manipulated and that's what it has available on an ongoing basis to invest in in either in either in dividends or in or in the company itself but that's really the bottom line measure of how business is performing well you know i think you're right in the sense that we probably won't see that because nobody wants to see any more government meddling here but then what do you suggest is the answer do people just have to deal with it for now and just realize that we know the one thing that is certain is the economy isn't going to look good for probably at least the next two years and so i have to sit around and twiddle my thumbs and deal with the fact that i won't have a job and you know the government should sit around a deal without or should government try to create more jobs. well this is it's funny the way businesses are complaining about a situation that they've created because the other way out of this box would be to

have more government spending you know as i indicated before when you got the private sector saving up businesses are saving you actually need government to take up the slack and yet there's been this propagandizing oh my god we can't have deficit spending in a downturn that's nonsense some of the time you know you want to worry about government deficit spending is when the economy is strong got a legitimate concern would generate too much inflation we learned that inflation if it becomes persistent is very damaging to the economy and to investors but that isn't what we have now and the fact the businesses have been have either sat on their hands or have taken an anti-government line you know they're living with the system they created i mean it's funny it's sort of like that cliche of an orphan asking for sympathy when he's actually the one who shot his parents and the meantime just blame the government instead of asking them to do anything about it even i thank you so much for joining us tonight. thanks so much really appreciate the opportunity now still to come going to call out the f.b.i. for trying to scare parents and the g.o.p.

race for the white house is in full swing and so are some outlandish comments by some of the candidates so are they crazier than usual or has that really become mainstream back into the most. wealthy british style it's sometimes right in the front. of the. market. find out what's really happening to the global economy for a no holds barred look at the global financial headlines tune in to gaza reports on our.

looks like the f.b.i. is finally getting into the asking for making their grand entrance into the twenty first century with a new smartphone app available exclusively for the i phone called the child id app now the whole idea here is the parents can load information into this application for each of their kids with details about their height their weight description anything else that would be helpful to identify a kid if they got lost now aside from providing tips on how to keep your children safe but just as that if for some awful reason your child goes missing you have all the necessary data on standby to immediately send on the internet to local police anyone else that you think you might need to alert and that sounds like a good idea to encourage people to download this app that b.-i has also made it free and they've even come up with some interesting posters like this one to spread the word about technology but the thing is if you take a closer look at what they're saying on this poster might leave you scratching your

head as a few other skeptics have pointed out already the stats the f.b.i. is posting might not necessarily be accurate take for example the first line or it says a child goes missing every forty seconds in america many never return home now the points out that would mean that eight hundred thousand kids go missing every single year however according to openly available f.b.i. missing children statistics that's not even close to true that's not even in the ballpark and a recent study released by the f.b.i. itself it shows that about one hundred fifteen children a year or the victims of a typical kidnapping according that same study forty percent of those children sadly were killed so when you calculate the stats that means that forty six kids during that same year didn't return home so the statement every forty seconds seconds a child goes missing seems to be blatant misinformation and the characterization that many kids don't return home is also overblown now according to the f.b.i.

it's forty six kids out of one hundred fifteen victims so i would argue that's more like less than half would be the more. already so it's very clear from the way of this poster's word of the f.b.i. is fudging their numbers using alarmist language to instill fear into parents and to top it all off a study out of princeton shows that despite the fact that most cities across the country have in fact become safer the public's perception has not changed and with fear mongering like this coming from the f.b.i. i think we all know why i don't want to spare my usual ranting about the privacy issue with these apps and devices i can say when the f.b.i. promises it won't be keeping all this personal data about your kids i'm not buying it so while yes i'm totally in favor of using technology to keep children safe i don't think that we need to amp up a smartphone apps appeal by having the f.b.i. scare the you know what out of all the parents with their lies. well well well there's no denying that the presidential race for two thousand and twelve is officially on but are the candidates on their rockers it's one thing to try to

appeal to a base be at the fiscal or social conservatives but in trying to outdo one another be the bigger tea party or as well as cast all the blame on the current administration are these candidates doing rhetoric that's outright extreme take a look at what rick perry said about the federal reserve's policies and fed chairman ben bernanke. early. this morning. that's of course coming from the guy that has floated around the treasonous idea of seceding from the united states but that's just one example we're going to look at a few more clips and ask if this batch of candidates are crazier than your typical

politician or crazy has just become the new normal or to discuss this with me is matthew boyle reporter at the daily caller matthew thanks so much for joining us tonight thanks for having me ok for starters these people i guess you could say are more on your side than our minds that lies i do think that the candidates are a little crazier these days that the stuff that they're saying seems a little more outlandish than usual who want to first of a really like to get a copy of the rubric that you guys use to define people in the political spectrum as extreme or not i that's i don't i'm going to do is i'd love to see it because people when i was clearly support rick perry in the clues bachmann that's why she won the ames straw poll but i'm talking about the the rhetoric of the politicians right and the type of situation that the country's in right now because obviously you're going to find some kind of supporters if these are the top candidates in the g.o.p. race right now right clearly americans are angry they want some kind of a change. be it whether they want obama out of office or they just want some kind of change in the country in general but when you're in dire straits and the economy

is in dire straits and people are starting to feel desperate are they going to be more willing to go to someone that is a little more out there than normal will i mean first off i mean if you're going to say that there's vitriolic rhetoric or whatever term you guys are using these days i'm nothing vitriolic rhetoric and i want to remind rhetoric i derive no i'm saying do you think that people want to change for example let's go back to what rick perry was saying here right about the federal reserve about ben bernanke he of course there's the whole we're not going to teach free to very nice here in texas but now it's this idea that the federal reserve shouldn't even be printing more money is that a mainstream idea has it been the only tell you this if i would highly try i would much more trust rick perry's advisor on the economy than barack obama spurlock obama is still nine point one percent unemployment he said we were going to stay under eight percent unemployment that isn't true rick perry has the data on the radar data there's no you're not and it's really high should restaurant in their eyes when the passes have been totally normal for the majority of the candidates to start talking about the need to not have the federal reserve print more money to

start questioning the federer first i don't know actually losing it is ron paul but if you look at rick perry's actual comment uses not before the not to lection he didn't say it would be treasonous to do it at all ever again that would be of more of a ron paul kind of idea rick perry said now for the next thing in not it right now be as you know that if you're going to fire the outsider you're going to put more money before the next election as a way to hide back anomic damage that you've done to the country that's what rick perry start really well in perry was done well rick perry won't if he's going to do it even though that's the last he was asked by reporter they said they do you think that that would be done by the obama administration just to beef up the economic numbers right because some people would actually argue out there i disagree that q.e. two helps out the economy and he did in fact say a total loss and he said if they print. between now and this election i would suggest that's exactly what's going on that they're just trying to improve obama's chances so he just doesn't like the idea that obama try to do something to help the

economy in the meantime he wants the economy zigzag only he was economy to crumble and be bad so he can be a little press you're going to falsely prop up the economy by printing more money that's what he's talking about a question that needs to be discussed right that's not a question of the president make singlehandedly this is the federal reserve that we're talking about the federal reserve supposin the independent or it's supposed to be is it really what i think you want to go down the road the federal reserve is not independent you know if you and i can agree on now when our ok but so did ron paul change things why now do we have rick perry now and why now do we have tim paul leonti talking about you know angry united's to the dollar being a. candidate obama isn't a name not anymore but now he was in the race until about two days ago why suddenly do we see here this rhetoric what rhetoric the fact that people are talking about the they don't believe in the federal reserve the idea of having a central bank anymore that they don't believe that maybe we should go back to the gold standard this used to be only ron paul got to say it right when he had terry said that we see that we shouldn't have the federal reserve anymore or go back to.

the federal reserve very saying that we shouldn't put more money to falsely prop up the economy saying it is one of the election so there was. some. false win or. break right up economy based on printed money printing more money i mean that's where perry is saying i want to see repairs not saying to do away with the federal reserve like ron paul saying you know if you actually really contrary is only saying this now and i believe if we can agree to disagree here because obviously we're not getting anywhere is that the only reason rick perry is saying these types of things is because maybe ron paul started leading the way because now we're in this new identical cigar a void that's where the far away are you want to say that you're probably crazy let's move on to a social issue ok so we have a clip from michele bachmann and well let's take a listen. can a gay couple with adopt children in your mind be considered a family. when it comes to marriage and family my opinion is that marriage is

between a man and a woman and i think that's that's been my view what would you call it was kids would not be considered a family to you you know all of these kind of questions really aren't about what people are concerned about right now this isn't what i was when you said and i just said that any any candidate for president should be asked about his or her views and their record this is a record of your statement these were defining political issues for you is your political career advanced you're the one who said that same sex marriage was a defining political issue of our time those were your words back in two thousand and four so i'm just asking you about your views on something that is animated your political life i think my views are clear. why i think that there gregory did a pretty good job of calling her out there in terms of her hypocrisy but so basically she's saying that if you're a gay family then you're not you're not actually family you don't count maybe you shouldn't even be people you just don't count period ask you that is not a crazy idea is that

a crazy idea i mean and what are you regular guys who are in the say back in two thousand and four she said if you guys have had years to bring this one up why are you bringing it up now i mean what do you think you guys to me for i my david gregory the last meeting in the early years i think is going on in the election right now and if you look at recent polling right the majority of americans actually approve of same sex marriage i'm sorry but the tides are changing the world is changing and it's shifting and opinions are shifting so to me to have candidates come out and openly say that they don't think that gay families count as families that's pretty ludicrous and that's crazy and that is a huge portion of the american population they're calling not a person do you think that's crazy or not it's a little bit out there but what i'm saying that why wait until after she wins the ames straw poll to start when she's been doing sunday shows for months now i almost every weekend it's been getting she's beginning and then order the amount of press an inordinate and ordinate amount of press and why wait until after she wins the straw poll. to bring not i not sure i mean because you know that she might actually

be a serious candidate for president nobody considered a serious candidate before she might as well that's up to other people right but after this you know what i'm always good for is what i'm saying is. if i have to take we have to take a break so i got all right but thank you so much for being here i thank you so much . still to come tonight we have. had computers the smart phones have made our lives easy but are they also making us. the official. video.

direct from our studios in. europe's economic leaders france and germany put forward a new proposal to steer the blog out of its economic woes a single collective eurozone government led by president but the. markets closed down after news of the region's weak economic growth. all eyes are on moscow skies where the international max air show has taken off. combat jets. and thousands in india are living on the breadline and ready to seize any opportunity to feed their children even selling their own.