bad thing that business is should still and the bank is a business and somehow it's been turned into something else from failing to bailing on the third anniversary of freddie and fannie bailouts should the us have just let them burn on ours thanks so. far have seven years of school in what i do so you know the start of the border where you know is not the truth and what the economy's going to bail out lose president obama and he had a high note with his jobs plan reported to include some kind of public works program but will it be music to the unemployed ears. we don't have jobs we're covering and that everybody knows that the people are saying where is our hoover

dam the moment she took the words right out of my mouth so as america celebrates seventy five years since the hoover dam started working we want to know where did all those damn innovative ideas go. and it's the news that just won't fly in the mainstream media the sentencing of a russian pilot convicted of drug smuggling but brought to us understand the circumstances to begin with we'll have a detailed itinerary in a live report from new york. that evening it's wednesday september seventh seven pm here in washington d.c. i'm lauren lyster and you're watching our t.v. so three years ago today the u.s. government changed history it took over the mortgage giants fannie mae and freddie mac. putting taxpayers behind the by trillion dollars in home loans that. company's backed

reportedly making it the largest bailout in u.s. history now it was part of the rescue of financial firms and big banks that we saw during the financial crisis but the question that remains is what it all of this duper taxpayer is exactly and did to save the u.s. economy for the bass parts despite the mortgage meltdown and evidence of fraud that continues to be found today authorities haven't gone after c.e.o.'s in charge during the collapse and now as we mentioned they got bailed out but police questioning a middle age artist with a political message well that's fair game archies among the lindo founded painter who is being treated like a terrorist suspect because of his political statements about the banks. i'm not a terrorist i am not firebombing in banks i never even entertain the notion in anything more than just the like like this alex shaffer has laid out his frustration with the financial system on

a canvas that pace that businesses should fail and a bank is a business and somehow it's been turned into something else while artists are known for catching the spirit of the times cheaper recent panes depicting bank buildings in plains caught the eye of the los angeles police chief or was first approached by painting in front of a chase bank three weeks later the police visited his home asking him if he hated banks and planned to do that it's just bizarre because i don't feel like i've done anything outside of everything i've ever done in my heart and yet this is really touched a nerve in recent years it seems like large banks and their bosses have been protected from prosecution for their role in the devastating financial crisis now it appears banks are being protected even from an artist. the chaos depicted in aleksey first

painting is just symbolic but the true financial chaos caused by d.p. morgan chase and other big banks is very real to many americans it's a different kind of. of terrorism and they're causing since two thousand and eight know the bank bosses in charge during the mortgage meltdown have done any jail time instead they were the recipients of bailout some bonuses well millions of americans suffer through foreclosure unemployment and financial ruin cheapest flames symbolize bringing the current system down i think we need to reform our banking system complete. really besides the repeated visits from police chief are also says recent online visitors to his blog include employees that j.p. morgan chase as was members of the department of justice well that's my.

this morning with a call that you need to get a lawyer and find out somehow or if you're on the watch list shaffer maintains a good sense of humor about the ordeal and his symbolic bank burning seems to be resonating with the public and i started the bidding off at one hundred twenty bucks and it's at ten thousand one hundred that's the big money statement he definitely tittie to the bank a los angeles ramon lindo r t all right so that's his way of recouping a little of that bailout money but on the third anniversary of the largest bailout in u.s. history it's worth asking if the economy got the return on investment of those bailouts unemployment for its part is nine point one percent it's been there for two years and close to twenty seven percent of homeowners with mortgages are underwater on according to people who track it over at zillow politicians therefore

are still looking for solutions to help us understand it any of these plans could work earlier i spoke with andrew chef of your pacific capital i asked him first what those bailouts exactly have done for the u.s. economy. better than anything for the u.s. economy it certainly saved save the holders of fannie mae and freddie mac. bonds what it saved i mean basically you had fannie and freddie being completely bankrupt after having made ridiculously foolish loans into the mortgage market now i don't think there's anything criminal about offering. foolish loans or even buying shares in a company that's making foolish loans which is stupid it's not necessarily criminal but as a result of the bailouts these companies that should have gone down the mortgage market should have completely disappeared i mean the essential u.s. housing market should have been returned to a cash business which was which was not what didn't happen but instead all the losses that should have been borne by fannie and freddie shareholders and bondholders and the banks that bought and sold fannie mae braun's and fannie mae

loans those people should have borne the losses i mean i think the banking system would have survived in a much more truncated form in a much more a much smaller more manageable for instead all those losses got socialized and absorbed by the u.s. government and now all of the taxpayers are on the hook for those losses and the mortgage industry has pretty much survived intact and they're still making bad loans and they're still artificially propping up the housing market which has still have a has a long way to fall and we haven't even recognized those losses we just push them off into the future and short hasn't done anything and you know that it has added to government debt and you i've heard you be a fierce critic of countries that you've called addicted to debt or at least you say that they're facing recession as a result now it's not just the u.s. i'm guessing that with their debt at one hundred twenty percent g.d.p. that you would think that italy falls into that category and part of let me just let me just get to my question that's

a part of the austerity package that they're voting on now includes a three percent wealth tax for the richest could this be part of the solution for the u.s. . well i don't think so i mean i believe that progressive taxes quote unquote. actually very regressive for an economy you cannot actually weight its prosperity. i think and i think the problem extends from all economies that are that are basically have been lived beyond their means for many years and that includes united states and that includes most of western europe certainly including italy and these are countries that you know have provided a very generous social safety net and who haven't provided the means to pay for it and that includes united states. and certainly what we're doing is we're by all these measures transferring our debts to the to the government and then printing and trying to print money to pay those debts we're just kicking the can down the road to use an overly overly use metaphor and you know someday the piper is going to be paid and it looks like the day of reckoning is moving ever closer based on

the volatility we're seeing the marketplace the confusion we're seeing in the markets and some of the more egregious examples of over overly indebted governments around the world and clearly we need solutions and i hear what you're saying that your position is that you can't tax your way to prosperity that can i ask you can i just ask you a personal just kind of sure see what you think if you're a fan of ferrari do you like. love ferrars well i wouldn't necessarily have them myself but if you want to give me one for free i wouldn't turn it down but you're a fan of her are you ok well let's hear a man a ferrari which is pretty expensive car needless to say this is what he's thinking of contacting the ranch just solve government debt great he told an italian paper that he said you have to begin by asking it of those who have the most because it is scandalous that it should be out of the middle class so if this deal of perroquet which is one of the ultimate symbols of wealth is saying that come on and

you don't have to mean something well i can't i can't really talk about italian tax law i'm not really fully on it unfortunately but i can talk a little about the united states tax policy and i can say there is a widely held myth that the that the rich now pay as low a percentage of income as it ever have which is untrue i mean warren buffett got a lot of press because he said he didn't pay that he his secretary makes pays more taxes than he does which is only true because all of warren buffett's income comes in the form of dividends and capital gains and those are taxed at a fifteen percent rate but the average person who has a salary makes three hundred thousand or two hundred thousand dollars a year they pay more. than the middle class as a percentage of what they make in fact we have more people in the united states now workers who pay zero income tax than we ever have so my forty seven percent of american workers pay your income tax they pay they pay some payroll taxes that social security stuff like that but even that is very is very progressive so i mean i know i and i make a decent salary and i get taxed close to fifty percent of what i make when you

factor in state taxes we have state the state of new york as a tax which you don't see that second level of taxation you don't see in other countries and then we have local taxes as well and sales taxes so that we get taxed everywhere and i know you make taxes too much higher you know the incentive to work diminishes and the more productive elements of society stop working and they say why bother i mean it's very easy for the chairman of ferrari and warren buffett is a i've got enough money but. but those are the very the top one percent don't you know that is the real issue is the the top ten percent and a lot of those people work very hard i can guarantee you there's we do look at that just top one percent of the super rich isn't there a case to be made that they can contribute more. well i don't know i mean they still pay a lot of taxes they pay a lot of taxes was it was in twenty or thirty forty percent is enough i'm not sure but you got mercy of those problems percent those are the job creators i mean it sounds cliche but those are the people in the companies those the people that are the innovators and those are the people that create jobs the government doesn't

create jobs privates the private sector creates jobs and you want to make it as easy as those people as easy for those people to continue their job creating upwards as possible they're also the people outsourcing jobs though i did put answer on that question you can catch the whole interview on our web site that was andrew schiff of europe is it a capital today is the seventy fifth anniversary of the hoover dam starting to work now this is an example of a large federal government project that put people out of work and it created energy it's the kind of public works projects that some call for today as a solution to the country's economic problems which have persisted so where have the big ideas gone and what they even be possible today as we gear up to hear president obama's jobs plan this week one is expected to call for some public works they are important questions to be asking and host of freedom and radio fun molyneux is here to hopefully answer some of them thank you for being our site the

c.e.o. so you as you hear called in to us as we've heard for big projects such as the hoover dam that we saw earlier in the one thousand nine hundred my question is was this kind of a project even be possible today when you have to factor in all of the bureaucracy in the u.s. that now if this. i think these kinds of stimulus packages does not solve the problem of the great depression when you had massive amounts of government spending around the 1930's increased regulation and control of business which resulted in pretty much a good ten year long depression that was only ended by the second gulf war the breaking up of the monopolies after the second world war actually intended we had almost no stimulus package and were already out of the recession so i think what we're seeing here is two fold answer the first is that governments have no money to do these kinds of stimulus packages and that's they're going to print their way into hyperinflation but the first and the second thing is the idea that government

will spend in times of recession and then save in time of economic growth is no longer feasible nobody really believes that governments just spend and spend and there's no money left for these kinds of projects and so i think we're really going to see the end of this kind of paradigm i think you'll see a lot of talk but not much action but this kind of stuff ok i want to get to that but but you didn't exactly answer my question because aside from the argument argument that you're making about whether these kind of big projects actually solve economic problems if for example the u.s. tried to build the hoover dam today would it even be possible for that to happen and any kind of a timely manner that addresses the need now for jobs the need now for stimulus when you factor in the department of energy the environmental protection agency osha i mean the list goes on every good story agencies that it's got to go through now. well there's no question it would take years to get through all of the various hurdles and scotches that these kinds of mega projects need to go through you could

do things like you could put monorail then you could expand the existing rail system you can always build and repair roads but i think in america what is needed more than new projects is simply the repair of the existing infrastructure a lot of it was thrown out after the second world war with the baby boomers when their kids went to school and it's really facing a lot of a crumbling infrastructure in the u.s. and i think that the kind of money that needs to be spent but again i just don't see whether government becoming the government got a huge amount of retirees heading into retirement for those who are going to be drawing on the public sector pensions and social security problems medicare medicaid wars overseas unless there's going to be some savage cuts elsewhere i don't see where they're going to get the money for this kind of stuff well aside from where the money is going to come from you're talking about repairing infrastructure and that is something that president obama is expected to announce as part of his jobs plan which is coming out with on thursday night so it's just something that could help but the united states has unemployment problems. there's no question that when government fires

a big water candidate money at unemployed people they get picked up and thrown into jobs but the problem is is seeing the unseen cost of this kind of action so you might get millions of people who get government jobs and this kind of spending but that money is going to come from somewhere it's going to come from the private sector it's going to come out of other people who might be otherwise creating jobs what america needs to do in my very strong opinion is cut regulations because oversight of small businesses the cut taxes so that there can be a kind of economic growth but at the moment you know they'll be a lot of people who'd be very happy and will vote for obama if he's going to promise them jobs but the unseen costs of this kind of stimulus spending can go on for years obviously seen this in japan twenty years of stimulus and they're still in a recession but my question to you is what do these kind of shovel ready construction jobs for you know what obama's plan it's going to get will be repairing roads helping to build schools that sort of thing one of those jobs for for example laid off here a crass or laid off financial professionals or people who work in i.t. that can't find work or college grads who can't find work or well with the last two

i would think you've been through some useful benefits or rather that means you're stressed out they're building schools and shuffling paper work better at least there's something tangible to show together if you can look at them look a little better perhaps i don't know if it's out pencil though we actually asked our producer out to talk to some construction workers next door there's a church that's under repair we asked them how easy it would be for a stockbroker to do his job here's what that worker said. yeah. i have seven years of what i do. you know sort of a lot of work your way up anything else. and then go on from there to yeah it would be a smooth transition it would. like you just you know block out of corporate america and are qualified to go build a school i mean you just heard from a construction worker who said that he trained for seven years or something so it's

not that easy to put just everyone to work doing these kind of jobs well but remember in the u.s. of course there's massive amounts of people who were involved in the housing boom who have fantastic trade skills who are currently lying idle so i think there's enough unemployment in that sector that you could for the foreseeable future no matter how much you spend will be a drain off unemployment numbers from those people before you've got to the sort of white fingered white collar the office workers who may not be that much either but what about all those folks well i mean i was in the i.c. industry for many years there are booms and they're a bust and you just kind of have to write them out you know you could be like the government is supposed to be you save your money when things are going well and you use your savings when things are going badly if those people do all their money then you know you have to learn your lesson but i don't think there's any magic but those people back to work the barn for the new real if the government can get out of the way of allowing people to start new businesses so what a lot of those industries are mentioning i.t. another would be the financial industry and people say that the united states was

overbanked to begin with and that it was due for a correction so some of these industries are coming back on. you know i agree and that's the natural cycle i mean there are a lot of people working in the horse and buggy industry when cars came along you just have to move you have to retrain you have to be nimble and not expect that you're going to get that great of the great security that was around in the fifty's and so with all of those unemployed construction workers from the housing boom and it's about thirteen point five percent of that industry according to the bureau of labor statistics if they go to do these construction jobs and don't retrain for other industries what happens when the road that they're building that the government subsidized is done. well yes that's the problem with stimulus is you know that the idea behind a recession is that you've had a mal investment the money has gone to the wrong place it's going to build too many houses which now nobody wants and if you give stimulus to allow construction

workers i think you're quite right to stay in that industry but all that happens is you're prolonging the amount of the amount of time that they're in there and you're preventing them in a sense from growing and developing other skills in other more necessary areas so this is the problem stimulus spending simply continues the malinvestment recession racking onwards and it's up on i really appreciate your insight because there are just a lot of questions they come up it's not as simple as you know building a road and solving unemployment it doesn't seem in just a little context for our viewers this this bill is expected to be the plan obama's plan is expected to be three hundred billion dollars just for perspective that's just twenty two percent of defense spending across two years for the u.s. and it's more than the four hundred fifteen billion dollars that the u.s. paid on the interest on its national debt and two thousand and ten so maybe those are some places where the u.s. could get the money we're going to leave the conversation there though for today i appreciate you being here that was host of freedom and radio stuff on all and you.

stick around because still ahead here on our punctuating a life sentence u.s. prosecutors are demanding thirty years for a russian pilot convicted of drug smuggling but the u.s. is accused of violating international law with his arrest to begin with it's a story you will not hear on mainstream networks who will fill you in on all the blanks and constant in your shank those sentencing that's next. laurie a. girl. or. boy.

if you just put a picture of the need for years old to tell the truth. i'm going to get a sense that. i'm very. hard she is the state run english speaking russian channel it's kind of like.

russia today has an extremely confrontational stance when it comes to us. you know there is so much going on in the world as i'm sure you know. but what are the big stories that you're not likely to see on u.s. mainstream media t.v. what about the four hundred thirty thousand israelis across the country who took to the streets of israel over the weekend in the biggest protest in the country's

history behind me they're demanding social justice a lower cost of living and government solutions for a struggling middle class may sound familiar of course in america and what about this guy troy davis but about his execution today a date was set for that execution later this month that's after a u.s. supreme court decided or a decision from the court cleared the way for that execution who's davis well he's a high profile death row inmate claims it is accusing the man you just saw savannah police officer now there's no physical evidence linking davis to the crime seven of the ten witnesses in his trial later recanted or changed their testimonies now those are just a few reasons he's become a focal point for anti death penalty activists and critics of the u.s. criminal justice system around the world and of course and of course constantine you're ashamed he is the russian pilot accused of conspiring to smuggle drugs he was just sentenced in a court today a u.s.

court in new york to twenty years in prison he was arrested in liberia secretly taken to the u.s. where he was reportedly put and solitary confinement russia had protested the way he was treated from the get go the u.s. failed to inform russia of his capture that's just one example and a story the u.s. gave was that they faxed the information to the wrong country now to find out more about this case to talk about the latest just before he was sentenced earlier i spoke with artie's own anastasio charkha who has been following this case since his arrest and i asked her to talk about the bizarre kind of problems and issues with this case from the very beginning here's what she said. absolutely lauren this really is the curious case of constantine your son called the russian pilot in his forty's was snatched up in. a secret agent operation in liberia by u.s. officials pretending to be international drug dealers they snatch him up last year

brought him on to u.s. soil for got to really inform russia that they had basically kidnapped a russian citizen and brought him on to u.s. soil for trial and russia was of course very disappointed they said we have at this really is a breach of international law when you snatch up a citizen of another country from a third country and bring them to the united states or anywhere else the country of their citizenship house to be informed that was not the case and as you mentioned the united states said oh we're sorry we actually pressed the wrong fax number so the notice of this man's being brought to us so i was actually sent to romania and even more shockingly russia didn't know for quite a while where this man was including his family that effectively thought he was missing take a listen to what constantine wife told us a little while ago in my bierria he was surrounded by friday agents the second he stepped off the plane he was accompanied by cords he spent day and night in his

room only during the trial did he find out that all he had around him were agents he introduced him to some man who transported drugs that's it nothing else happened they wanted to jail him and they did so there you go lauren this man snatched up last year are now facing up to thirty years behind bars here in the united states and we're going to wait and see exactly what his face is fav is is going to be in a little while and you mentioned he was possibly kidnapped that this could have been a breach of international law so for someone in that circumstance what kind of prison time are we talking about here. well lauren it really is interesting because we have the prosecution that says they want this man behind bars for as much as thirty years and we have his lawyers who are saying wait this man has never had a criminal background he's never stood any kind of criminal charges in the united states in russia nor anywhere else in the world plus this man has never actually

stepped foot on american territory and now he's here facing this much potential prison time and basically this is what we're going to find out really the result today we know that in april a jury of twelve unanimously found this man guilty but curiously you're schenkel was arrested with three other men from africa one of them was the mastermind found to be the mastermind of this so-called conspiracy he has already been found guilty for thirty years but the other two men who recently admitted to being international drug dealers but said they didn't really have any intention to bring drugs to the united states were found not guilty so this is a man you're shanker facing a potential thirty year prison term for a crime that you mentioned he hadn't physically committed how is the u.s. making sense of this the prosecution. well lauren you know this really is seen as part of the bigger scheme of the so-called war on terror and war and international drug smuggling the prosecution has really been showing that they're proud to having conducted this operation of having sent special agents to liberia lure this man and

with conversation you know we have to keep in mind that you never even gave the green light the final yes to potentially bringing drugs to the united states so the fact that the u.s. was able to conduct this operation jointly with liberian forces is really a source of pride for the prosecution whether or not this is a source of pride for the u.s. in the eyes of the international community with the way this kind of justice sometimes gets handled is really a big question a big question and one i hope you have a really quick answer for you from you here but regardless of the sentence what is the significance of this case for u.s. russia relations and i thought i just need a quick answer there. lauren this is if this man is sentenced in the united states this is going to set a precedent this is going to be the first time for the russian federation when a man of russian men is charged and sentenced for an intent of a crime that was fabricated and lured in by special agents as a preventive measure and on the lease in an operation.