middle class families should pay a higher taxes for millionaires and billionaires well mr president that may be easier said than done considering the u.s. has one of the largest income inequality gaps for developed nations so as the president unveils his debt reduction plan the budget battle rages on with some politicians now declaring class warfare. and it's not just politicians sounding the drums of war the american people are fed up to take it to the big apple where main street is trying to occupy wall street and social media or not looks like the financial district is far from becoming career square. and it's a sacred weapon defense spending that is and somehow the u.s.

managed to find two point five trillion dollars to spend on wars abroad this all americans fight at home against poverty and unemployment so why is the pentagon budget defended at all costs. hey there it is monday september nineteenth four pm in washington d.c. and christine for is out there watching are today. well let's start off with a closer look at the economy president obama laid out a plan today that if passed could save the country more than three trillion dollars over the next decade this is on top of the one trillion dollars in spending cuts that the president signed into law last month post debt ceiling debate i'm sure you remember that well among the ideas some cuts to medicare and medicaid changes to the tax code and the letting the bush era tax cuts expire president obama today

making the case that what he's proposing represents two dollars in spending cuts for every one dollar in revenue raised these would be among the biggest cuts in spending in our history but they've got a big part of a larger plan that's balance a plan that asks the most fortunate among us to pay their fair share just like everybody else and that's why this plan a living taxable falls the primarily go to the wealthiest players and biggest corporations was expected there has been a strong reaction from lawmakers on the right coming out to defend the millionaires also known as the job creators and to criticize the president's plan across the board and what it does is it adds further instability to our system more uncertainty and it punishes job creation in those people who create jobs class warfare chris may make for really good politics but it makes for rotten economics

well president obama responded to that by saying it's not class warfare it's math so of course as we see the war of the words and numbers has already started and while the spin is spun we want to take a different look at this and also talk about what happened this weekend in new york city where crowds gathered in the financial district to protest against wall street greed and lack of accountability here's a question could this be the beginning of america's own arab spring our season associate churkin without the rally to find out. yes. america's attempt to follow the example of the arab spring bank screws rock continues now with bonuses obscene. how wall street and on the social media have been abuzz about this planned

occupation of wall street for months i. was. up to twenty thousand people were supposed to spill out onto the streets of the big apple's financial district. but not more than a thousand of the most fed up americans showed up i've got my sleeping bag and i'm told not to bring a. bed flew in from out of state to camp out here day and night he has a simple message for the u.s. president he's just backed out of everything you can't promised him a campaign so it's like he's asking to lose the next fight when. i. read in corruption and the lack of accountability that followed brought these americans to the brink this is just the beginning of occupying wall street this crowd say they're going to be here until their demands are heard inside the offices of the wall street skyscrapers over forty six million people are living in poverty

in the u.s. with fourteen million unemployed much of this triggered by the she was gambling of wall street c.e.o.'s this very spot wall street is the site of the heinous crime has been perpetrated by wall street bankers. who instead of guarding people's money speculating with reckless abandon and incompetence. and. the wings of the american dream to get these corporations out to pay no tax i pay more tax and benjy. i spent a lot of years a lot of money working very hard to get a great degree is worthless now and right now ultimately. the your birthday we're being we are praising god or me of caesar's. and caesar most polling. mayor bloomberg has the morning new yorkers that has youth unemployment skyrockets riots could be around the corner but these people to every day people want to be

involved in politics that we deserve to be involved in politics and i don't think you should have to be a billionaire like michael bloomberg to be involved in politics you know michael bloomberg is a beautiful example of what's wrong with this country but for demonstrations like this one to become a real force and not just a fringe group more americans will need to join these crowds i suspect a volume will get a little you know start off small so your question is why there's so few people it's like again the information that gets out is controlled by the mainstream media the corporate media so who the political and financial elite push americans into launching their own arab spring. before the crowd swell out of control yes yes yes is this a trick or two. i want to take a different look at this and put it in some perspective i want to talk to david de graw in long island new york david is also the author of the road through two

thousand and twelve revolution or world war three. hey there so let's start with this rally in new york over the weekend it was actually smaller than the same rally last year there was a lot of buzz on twitter people talking about what a great idea it was i mean as we know in egypt when they came out to protest they used twitter primarily to sort of rally the troops and here in the u.s. it was a little bit of a different story you have a lot of people talking about it and retreating things but only about five hundred people showed up for me think about. well first of all i would. down there and i was pretty impressed by the turnout and the passion people had down here i think what we have to understand fears in the united states the u.s. mainstream media is probably the most mission weapon overpressured net has ever been before our eyes so you know when it's cheap party has a protest that is you know half the size of us on fox news or you know c.n.n. and all the major media companies have to have people there and there are sensually

pushing for those protests but in a situation like this where media companies u.s. media companies are primarily you know major shareholders ok you know wall street banks and media shareholders of the mainstream media they don't support the protests so you don't really hear about it on u.s. television and unfortunately the old ones are really of the american public that's where they get their news and information so i suppose another reason for that could be because i've covered some of these tea party protests as a lot of the people that attend dress in crazy costume then they outlandish things and hold crazy fines on hey tell me a little bit about nori more about your experience there over the weekend i mean i think to me it was just regular people sort of outraged at what's going on for three right and the organization has been has been very essentially lives you know there was a general assembly of people who held meetings were for it and it was all very democratic process you know people have political views across the political

spectrum there are sensually it's people who are fighting back against their own personal financial repression so that kind of takes on many different ways and i certain know a lot of americans are propagandized the no unaware of the political realities people understand that the global banks and probably country they don't have a more in-depth understanding of and you know certainly the united states is not the only country with our issues people having issues with their bank that you know we've been keeping a close eye of course on greece whether or not it will default there's a lot of people. angry in the street certainly much more there than we've seen here but across europe there are several countries dealing with financial hardship a lot of people angry but the banks i'm wondering david if you see you know any country that the u.s. should try harder to emulate in terms of what they're doing what maybe we can learn from. oh you mean protested i was a wreck and i don't know add economic policy wise in dealing with banks.

unfortunately you know we live in a global economy that will economy is dominated by big banks or wall street federal reserve the notional monster on the bank of international so mints so you know they're run the global economy so it's talk to emulate other countries unless there's countries that are stepping outside of you know all central bank in here so you know any step away from it that you big banks and their reserves are more essential as the economic system is what we should be emulating. you know i want to take a look at you know again from a global perspective i want to talk about inequality in this country and pull up another chart that we got our hands on to demonstrate the inequality that exists here and kind of compare it to other countries this is called the gini coefficient it measures income and wealth inequality and basically you can see the top of this

chart is denmark sweden and luxembourg these are the three countries that have i guess you could say the smallest gap between the rich and the poor now if you go all the way down the charts you can see other countries including the u.s. the u.s. is about twenty seven from this one but this is with poland portugal turkey and mexico. you know i lived right across the border from mexico i grew up in california and that was a place to me that you know there were tiny pockets of extremely extremely wealthy people and the rest of that country seemed to be you know living on the streets you know the kids come up to you and sell. you know at the end of the night talk i mean how is it possible that we are ranked as a country this close to mexico in an income inequality chart we're all basically we have a system there was a lot where one tenth or one percent of our population to run a. the world over the past generation so now we currently have the highest selling

probably wealth in american history and you know look at new york city where these protests are happening in new york city has an inequality over well it's equal to places like honduras and in the middle you know most desperate third world countries you know you have wall street alone so and so right north you have the props senate shorts all right so there is a brooklynite are devastated and harbors you know we have over fifty million people living in poverty in this country now we were talking a little bit earlier about president obama coming out today and laying out his plan and certainly there's a lot of it that's gotten mixed up in politics but. you know with people are starting to look at things like military spending like the tax code like structural changes to medicare and medicaid that could save money based on your research steve and you know from the from the people that he was there say it with the research that you've done and that you've done have you heard any plan that you've sort of

feel is a good one. well you know there are some good players but all these players are essentially putting a band-aid on what is it absolutely horrible situation that we need structural changed if you're serious about changing the situation you know the purpose one on the system or political bribery which is campaign finance a lobbying and a revolving door between washington and the floor because floor will corporations until you have to break up the too big to fail banks in any change needs to be centered around those things moving forward so and plans you know we explain changes are not going to work because repairs what about changes you know designed to bring in money from the wealthiest in this country sort of a a stablished tax rate for millionaires i know that's one of the things that buffett code that president obama talked about i mean is that just if he just trying to throw out fancy language so if they want to get more fair once again let's you know campaign obama coming back promise

a lot is wonderful things through you know people who are not the richest one percent but you know the bottom line as i said it obama was serious well per year in change he would be working on campaign finance because these are all temporary states's until you fix the your core structural problems which is too much money in politics and it's too big to fail when it's only way too much power dominate the market to sensually rig the market and destroy the free market until those changes are made you know all this stuff is you know switch and shares only earth i mean i think that that's. a great idea but the bottom line david is that we have a few different branches of government one of which the supreme court voted in favor of citizens united not sure when it comes to campaign finance how much the white how much power the white house has even how much power congress has to overturn that decision and make rules that would change it i mean campaign finance

regulations as we know. oh it are certainly almost dead oh well you're absolutely right well you know we have to push politicians he will lose changes and we have to like we're seeing here on wall street and we'll see in a couple weeks in d.c. we have to get in there's three pts and so politicians like you know this this is what we're working on here and this is what you have to work towards otherwise you're going to be voted out of office and you know unfortunately time historical sense but you know we have to now we have to get the stories we have to pressure politicians we have to pressure the four hundred billionaires who are united states to get behind us changes you know it's not a constant round up and it's going to be difficult but this is what we have while perhaps we thought this weekend in new york city will just be a preview for what's to come with many more people getting outraged showing our age in the streets good to hear your perspective glad to know you are there david de gras journalist and author of the road through two thousand and twelve revolution

or world war three and we will stay on this topic of course as we come back and our shall not be we'll take a short break right now. because we did put a picture of me when i was like nine years old on to tell the truth. i confess and i am a total get a friend that i love rap and hip hop music and. he was kind of the jester. i'm very proud of the role that all she has played.

get up some leisure see a story and it seems so for like sleep you think you understand it and then you

glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm sorry welcome to the big picture . a new website with twenty four seven wives streaming what to do about it ongoing financial hardship unlimited free high quality videos for download. and stories you never find the names three new. cell mate political. posts in more than archie does such

a. let's not forget that we are currently right. i think rather. funny well. whenever the government says they're going to keep you safe get ready because of the freedom. we'll continue our conversation on the nation's economy as we discussed earlier president obama is calling for a one point five trillion dollars in new tax revenue as part of

a larger proposal to try to combat the nation's rocketing federal debt this is not a welcome plan with republicans so what are the right answers my next guest seems to have a few and for more i spoke earlier with lew rockwell from auburn alabama here's his thoughts on whether this is a good plan. those are small bomb aloni i mean first of all these so-called so-called cuts for the one signed last month are the ones he's proposing are not cuts at all they're rather there are alleged cuts in the rate of increase which is the way they when they in washington when they talk about a cut that's what they mean but even that is not in his control he's talking about over the next ten years will who's going to be president ten years from now it's not going to be obama unless there's a coup so and then of course the however the tax increase is a real biting hard and immediately would come into effect and by the way the state is talking about the buffett rule in this sort of thing these things are not going to buffet or soros or blankfein or jamie diamond or any of the other billionaires

and all the guards in the u.s. they're aimed at you mention at a young entrepreneur is a minute at the business people starting out and the oligarchy like the government don't like these people they don't like new people coming up and moving up forth in the social hierarchy as well as in the economy they like to crush them so they're going to have more taxes on the other job creators the wealth creators in fact taxes are wealth destruction so anybody proposes more taxes seeks to make us poor as a group however the elites will make a lot more money out of this the government's going to do fine while the government the job holders that obama's been running us to weep over or make twice as much by the way as the average american taxpayer cops firemen teachers and so forth government construction workers make twice or more than twice what the average guy makes so how about talking about that kind of class where warfare actually wants to help the ruling class and stick it to the productive crowd well certainly lou there

are some teachers and construction workers that make six figures salaries but i would argue that the majority of them you know are right there in you know the fifty's and sixty's in fact a family of four for a lot of people that's barely scraping by but i but this isn't necessarily you know about dividing these people. it's the fact that a president obama has said that there needs to be some sort of establishment so that people who do make fifty million dollars are getting are not getting away any longer with paying zero dollars in taxes i mean wouldn't you agree that it's because of a lot of the things that in this system in this country that those people are able to make the kind of wealth that they're making. well you know i don't want to shock anybody but the rich run the system and the notion that somehow you know a bomb is out for the poor remember who were his big donors the last time he ran for president goldman sachs j.p. morgan bank of america citi bank he's got it in there to be on president in this

country you're going to need big donors you know it doesn't matter where they come from you're going to need big donors and they're going to most likely the from large corporations and so is he working it against those people or is it working against the interests of those of the people those people don't like i would argue the latter and he wants to curb make the system rigid make social mobility even more difficult and he wants to enhance the government and hence the government's friends in this corporate state this government big government big corporation rule that's he wants to increase the at the expense of the rest of us and it's a very vicious program he's proposing but how is he doing that by saying that the that the wealthiest in this country need to take a more taxes not less and that the people who make under two hundred fifty thousand shouldn't have to pay more in taxes i mean you know we actually saying that the u.s. government the biggest richest most powerful government in the history of the world the average government employee you can make in twice what the average citizen makes we're supposed to think they don't have enough money they got too much money

for too much money so the idea that anybody's taxes should be increased and let's remember what taxes are the government puts a gun to your head and says hand over your wallet or suddenly you're to jail i don't think that's a good sort of conduct in society i think we don't need more of it well if the government didn't do that it is hard to imagine anyone that would willingly give you know the spare money that they had most people would go and buy their second and third young let's talk about inequality in this country second and third hamburger yes for that let's talk about any quality in this country and some figures that sort of map out part of the point that i think the president was trying to make today i diagrammed that illustrates sort of in your face inequality in america. so that takes data from the last thirty years and demonstrates that those actually growing their wealth are the top one hundred of one percent to make an average of twenty seven million dollars per household the average income at the bottom there and that ninety percent of us that average salary is thirty one

thousand two hundred forty four dollars i want to get your take lou is this a result of this enormous gap between the wealthiest and the rest of everyone else is this a result of the tax code is it political policy i mean who is to blame for this growing gap and how do we change course you know i would argue the the main culprit is federal reserve indeed ever since the nixon close the goal window back and the early one nine hundred seventy s. that has cut out the final tie for between a dollar in the goods and gold from the fed could print whatever it wanted the average american working families income in real terms after taxes after inflation has stagnated has not gone up and indeed the latest census figures show that the median american families income in this last ten years is down seven point two percent we're getting poorer and it's absolutely true the government connected rich are getting richer so what do we do about that do we punish businessmen who are creating jobs and creating wealth and making things better or do we take some of

the stolen goods away from the people in washington away from the oligarchy or away from the ruling class i think that's what we have to concentrate on not let the guys at the top which you know but who are bombers working for against soros and profit in these kinds of guys not let them try to focus our attention on hating the guts of a guy who owns a bunch of the subway sandwich shops he's not the problem the solution it's the bankers and all the people who got rich wall street a military industrial complex big pharma it's these kinds of arms of the corporate state that are getting rich far too rich and you know they need to be cut back cutting back cut back government that's what we need to do and the idea that in the depression which is what we're. not a recession we're in the second great depression of america the idea that we should take more money out of the private productive sector and give it to those monsters and creeps in problems in washington to do waste and damage with a building or marble palaces themselves what an outrage well is that the system though that we have in this country and the president lives and works in washington

and i think that you'd probably agree that regardless of what party whether it's president obama george w. bush or is or you know a future president whether it's rick perry or michele bachmann or whatever and i think they would all be working for the same sort of powers that you're talking about well let me ask you this and let's look at this from a global perspective i mean there are quite a few countries and having finished financial hardships especially across europe and when in your mind that's doing it right that the u.s. should learn from. well lebanon do levanon during the boom and fight for that matter canada did it much more right than the u.s. they didn't go crazy during the boom as the europe and the united states said however this is entirely a bank problem this is what they're talking about in europe that's what they talk about your bailing out the banks that's why the people who are greece are being squeezed deeper western europe are being squeezed in rome and so forth for bail out their banks that's something sick and wrong about the system where the big banks are able to stick it to everybody else in society we need to let the banks go

bankrupt that's what it should have happened here at the beginning of the financial crisis then you can rebuild but assets go to those who can make better use of them and you don't keep putting hard people's money into these losing enterprises in fact these disastrous and anti economic enterprises these big fractional reserve banks that are partners of the government so we need to run go bankrupt no more no more tax in the germans for the for the all the banks that hold the greek debt and that sort of writing less than that is that ends in disaster in fact we're headed for the global inclusion of the sort of the john maynard keynes dreamed of the 1930's and that just to her renders them if you mean. we're all going to add vastly increasing prices like in the nineteenth seventy's or worse on top of the other pressure as more iraq would point to the one great thing about the great depression before was prices were falling so your money bought more and more were going to turn that around we was in

a depression people losing their jobs people losing their savings and every prized zooming up thanks big banks banks big government but we desperately need a change i might have been talking about the candidates running all those talks a different tone than those other people all right certainly an interesting perspective i think a lot of people might agree with you that looking back perhaps the bank should have been allowed to go bankrupt lots of talk about saudi were out of time lou rockwell chairman of the looted think funny says institute thanks so much thank you and as always lots of interesting perspectives on the economy here on our team we will be sure to bring you more but for now we are out of time but for more on the stories we covered go to our t.v. dot com slash usa we also post all of our interviews in our stories on you tube you can find that youtube dot com slash r t america i also like to tweet all the time and if you like follow me on twitter in finance at franzi i want to thank you so much for watching we will be back here and a half hour.