good afternoon and welcome to capital account and happy friday i'm lauren lyster here in washington d.c. and sanctions on iran central banks allies doing a six hundred sixty billion dollar defense spending bill that's headed to the president's desk now the sanctions could cause oil prices to rise hitting consumers while possibly benefit in iran so the question are you willing to eat a higher oil prices for the promises of some politicians maybe not but what choice do americans have to the leaders we elect to the white house or congress make any difference also the security and exchange commission is suing the former heads of

fannie mae and freddie mac. for misleading investors about risky mortgages so what about the members of congress and previous administrations who pressured these d.s.e. into buying riskier loans will discuss of the s. these these should be going after them too and shut down averted looks like congress negotiated a trillion dollar spending agreement a little more than twenty four hours before a shutdown now we've seen this threat of a shutdown several times already you know what just do it already let's get to today's capital account. congress passed a six hundred sixty two billion dollar defense authorization bill for two thousand

and twelve now it's headed for the president's desk in it is a provision that imposes sanctions on iran central bank it bans it from the u.s. financial system and bans anyone who does business with it now these are the harshest measures reportedly to date on iran over its nuclear program the thing is it's believed this could cause us bike and oil prices one that would benefit iran financially obama administration officials were out warning of this the white house was pressuring congress to tone these sanctions down for that reason and analysts were telling us a wrong would not be lacking for a customer iran has a very ready customer for their oriel fungible that it doesn't matter word comes from i mean the chinese are not going to boycott a ram i can assure you of that china wants what's right for china and if we boycott iran then your board cuts a ram i mean china will take all the oil they can get from iran. but

a spike in oil prices you can guess who it hit consumers of oil in the united states where we're sitting now one lawmaker quoted by the wall street journal said the risk of a crude price spike is worth it to punish tehran but what if you don't believe that what choice is there do the leaders americans elect to the white house or to congress really make any difference and you know not just politicians let's talk about americans do americans share in the blame for that too well we want to talk about this let's bring in lou rockwell he's chairman of the ludwig von mises institute and author of the left the right and the state there you see it right there there's his book and he joins us now to talk about all of this mr rockwell as always it's such a pleasure to have you on the show my question to you with with these sanctions for the central bank that congress has passed what if you're one of millions of americans who are struggling with the cost of living already many who are unemployed or what if you're say a business owner who doesn't want to see their bottom line affected by higher

freight costs if this drives oil prices up what choice do people have if they don't want their oil prices to rise for these geopolitical issues and they do well it's it's a very difficult situation because of course we have actually no control over the u.s. government u.s. government has control over us you can do these horrible things these monstrous additional sanctions that we're talking about but of course there is one person running for office who has a different view typically we have a number for it can presidential election bomb a versus bomb b. but this time we've got to go to ron paul who actually is for a policy of peace tolerance and a golden rule towards iran and towards every other country the policy in fact that george washington laid out you know the first american president when he talked about the reach of peace commerce and friendship with all nations this whole idea of these acts of war which was what these sanctions or to try to punish iran for

naught. kissing the boot of the hedge i'm on you know it. does actually yes absolutely perhaps higher oil prices perhaps much higher oil prices because we know their main the stock of shutting down the straits of hormuz if the u.s. and israel bomb iran we have no we have no. actually we have no business whatsoever committing acts of war ever after act of war against iran we send a drone over they take it down and we're supposed to feel that's an offense against the u.s. right what was the how would we feel about iran sending a drone over the us somehow it would think would consider that an act of war and it is an act of war somehow i don't think you're right and you mentioned ron paul but i want to bring up you know i was watching that same g.o.p. debate last night when he was talking about this i was also watching the commentary after that and his position on iran is dismissed by the right as fringe so my question to you is there any realistic choice for americans who don't want higher

iowa same question higher oil prices for these kind of reasons because both parties sign on to these policies you know just to give an example the senate passed through this amendment unanimously in both parties you know of course it's it's a neo con party a neo con party b. but i think the american people are in revolt against this i think that the polls show it i think the ron paul movement shows it i think just the movements and the opinions and the changes of hearts and minds among american young people show it that people have had it with this warmongering government that this government that thinks it can tell you not to use your cell phone or anything else about your life can tell you what kind of light bulb to have in your house what kind of paint to have on your cellar walls and every aspect of what kind of toilet to have or they they think nothing about telling you everything people are sick of this and it's about time they got sick of it because it was the government's in the. it's bankrupting the country so we need a radical change and say thank goodness ron paul is discussing these kinds of ideas

. and i think he appeals deeply to the american people there were some pew poll recently that showed the reason that young people love ron paul so much and he has a huge percentage of the young demographic is not as his opponents say because they want to smoke pot but because they're sick of the warfares and they're sick of the police state which of course is now being targeted against young people on college campuses and elsewhere who dare to dissent from what the government wants and i think i think there's good stuff happening and i want to play a little bit of what ron paul said last night as we did a sound bite of him responding to kind of the the expected rhetoric you would expect at these g.o.p. debates where there is fear mongering over iran you hear politicians out there beating the drums of war and here it was ron paul's response to iran is a threat to national security i want to play that for our viewers if she thinks we live in a dangerous world should think back when i was drafted in one nine hundred sixty two with a nuclear missiles in cuba and can of the call screw ship and talks to him and

talks of out of this if we don't have a nuclear exchange and you're trying to dramatize this that we have to go and they treat iran like we've treated iraq they kill a million iraqis. so we have if we assume this is another prelude to another iraq even if ron paul let's just you know imagine that he is chief executive you know one of the big increase as it has been that it doesn't really matter who's in the white house you have congress you have all of these other forces you have the washington consensus that it's so much bigger than just one person do you really think that the system could change well of course that's exactly true and if a good guy were like parachuted into the white house with nothing else changing i would agree it might. much of a difference but if ron paul is elected that means there's a groundswell of popular support for him then yes changes can be made because these politicians in washington have no principles of course all they're concerned with is being reelected in their power and the money they're going to make as a lobbyist and so forth so if they come to the conclusion that it's good for them

to be for a policy of prosperity at home and peace abroad then they will change so if ron paul in the wonderful event of ron paul were to be elected i think we would see real change now it's not doesn't mean that we're living in a utopia but the president as commander in chief can certainly bring the troops home he can veto military spending bill he can veto you can he can put in the new person as head of the federal reserve many different things the president can do constitutionally and of course ron paul is concerned about not being a dictator like obama is he wants to be the sort of civil magistrate that was as a rule the founding fathers in the constitution and vision but i think by moral leadership and by channeling and articulating the hopes of the american people for actual hope and change and for an end to this increasing poverty in this country increasing belligerence abroad the tasering of america then you know ron paul is

going to make a huge difference unlike say you know mccain is versus obama that was just one sort of wall street on military industrial complex own guy. versus another but the wrong road is different and of course quickly i want to because of course newt gingrich has kind of become the front one runner does this show that a lot of americans are kind of asleep and you know that they will perpetuate a government that can just so easily pass you know sanctions against a central bank of iran without people even noticing well usually there are guys that gingrich was a monster. they're all monsters if you look at those people on that stage with the exception of ron paul gingrich is a guy who loves killing people in the lows you know big government he loves you know he loves just the sort of actions of government that he's of course profited so much but so i think you know a lot of people are asleep some people are evil especially in the republican primary voters there are a lot of them who are for killing everybody i mean they think that's christian

people and i will tell you that's the christian way to just launch wars and kill a million people in iraq as has ron paul pointed out across thousands and thousands of american troops to and it remains to be seen if there is under any other choice but some of the things we're talking about here some of the political decisions we're seeing as well as concerns about safety of people's money in the stock market the safety of investments this low interest rate environment that that the fed has created it's driven some people to purchase farmland and as a result we've seen farmland do quite well i want to bring up to a chart to show how prices for farmland have risen in iowa if we can bring that up for our viewers there and they're seeing it right now it's driving some people to say that farmland is now a bubble so i'm curious if you think that there's any connection between this rise we've seen in farmland in the fed's near zero interest rate policy well sure as i'm in the there is that also everybody realizes that the stock market is a bubble and they want to be in real assets as versus paper assets and some people have done very well in farmland and i know jim rogers as always said the in the

future it's not going to be the stock brokers driving the moser roadies it's going to be the farmers and you know so the farm sector is going to do better and thank goodness because of course we we all need food. so i think it's a wonderful thing is it possibly a bubble is very difficult to tell when we have the federal reserve flooding the world with newly created money trillions and trillions and trillions of dollars of newly created money to bail out the banks in europe and the banks in the states when that is happening it's very difficult to make economic decisions but i would say if you own iowa farmland pat yourself on the back all right all of i'm sure some of our viewers are patting themselves on the back but i just really quickly we only have a moment but you know we've been talking about national security and you talk about kind of a police state mark father a very well known investor has said by farmland because hey at least you know that the government isn't going to bomb your roof but now we see in north dakota they sent out drones to you know patrol to see about some stolen cows so now really is there nowhere to be safe even if you buy

a farm now of course it's true that the we're going to see more and more use of drones domestically which is what they're really interested in rather than foreign news by the way because they always want to control the american people they're afraid of the american people they want to control us and have our money and run every aspect of our lives so we are going to see many many more drones used so this is again a reason for some for two principal educate yourself about freedom and about economics austrian economics and to work for the kinds of changes that will abolish the drone they have no business using drones against us it's just you know it's. going to stop a kind of technique and it's getting worse and all i can say is we better wake up because we do have a chance to change things but if we don't change things we're in for a very very tough i don't think i disagree with you there and that's all we have time for thanks so much for being on the show really appreciate your insight and speaking to you as always that was lou rockwell he's founder the lead the bunny says institute. and still ahead here on capital i count you had comments and ask

questions we will respond to some of your feedback up next the first your closing market numbers. above. it we just put a picture of me when i was like nine years old i wanted you to look through. i'm a confession i am a total get over friends that i love driving hip hop music and for. that he was kind of the jester day. i'm very proud of the will without you she has played. oh oh oh

my. oh. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear sees some other part of it and realize that everything you thought you knew you don't know i'm charged welcome is a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is human view with a global missionary zeal where we had a state controlled capitalism is called sasha's when nobody dares to ask we do our t.v.

question more. welcome back so we have now seen that the f.c.c. is going after former executives at fannie mae and freddie backed the g.s.t. that u.s. taxpayers have bailed out so it's going after six executives former executives suing them this includes the former c.e.o.'s of both now this is over misleading investors over the risk that these seas have taken on in the subprime mortgage crisis now i want to bring in tad to haven he's budget analyst for the cato institute to talk about congress and former administrations role in this risk and perhaps if they should be getting off the hook so easy because of what they were encouraging so thank you for being on the show it's nice to see you as always so we

know now the f.c.c. is suing these former fannie and freddie execs and i'm not weighing in on whether or not they were misleading investors or are weighing in on whether they're corrupt or not but what i want to talk about is maybe why they made some of these risky investments and if congress and former administrations were responsible for some of these risk they were taking. oh how about misleading the taxpayers because that's exactly what members of congress an administration is going back to the clinton ministration did they told us that. you know if the g.s.a. he's helped foster home ownership that the country be better off that there is no risk to tax taxpayers in three years now groups like the cato institute said that that's just absolutely was not true and that your barney franks your henry cisneros again this is a bipartisan report of people have made millions of dollars like henry cisneros and

so it's nearly three years later the s.e.c. one after the former executives and one and it took them three years but to now all of the focus is going to be on the executives and once again we're missing the bigger story and that is that government involvement they think these folks the congressmen insertion they pushed and prodded fannie and freddie to increase homeownership and to basically go out and hit these under-served quote unquote under-served markets which means taking on riskier loans which ultimately backfired there's probably a reason why we're in the mess we're in today well and i want to talk about that because in the ninety's that was the first time to my understanding that these g.s. these had goals and pressure for affordable housing to expand loans for low to middle income borrowers under george h.w. bush admin it administration as well as the clinton administration so what role did that have in the g.s. he's taking on this arrest and the sub problem prime mortgage loans right that's

exactly where they had to meet certain homeownership goals and so both the clinton administration and the bush administration would give the g.s. these credit toward meeting these portable housing lending goals by picking up the mortgages but. basically. crime are lower quality higher risk mortgages and so it helped fuel the bubble and now interestingly one hundred sixty billion dollars later that's what taxpayers are already on the hook for and what we're kind of missing here is that if you look at fannie and freddie and then you bald federal housing administration more almost like nine in ten mortgages now being originated all have some sort of government i.e. taxpayer backing and so have we really learned our lesson i'm not sure it doesn't appear that congress has learned its lesson administration still doesn't want to do anything about fannie and freddie because like everything else in washington they want to wait until after november two thousand and twelve the deal issue my

question to you though is do you think that the risks that fannie and freddie took on as well as the. senate that city for them to be bailed out to the extent they were would have occurred had administration not increasingly put pressure on them to increase homeownership especially for low and middle income families. this is this whole system where you have basically the profits going to a. private company but the losses ultimately going to taxpayers was doomed to fail one way or another and this whole idea that the government should be doing anything to put people in homes is absolutely absurd and again they still haven't learned the lesson there are still people being put into homes and lift government backing who have very little skin in the game and it's all being driven by various special interests whether it's these community groups or the national association of the association of realtors the national home builders association and that's the american people understand for years and years and years things were good low

interest rates that's going to home with no money to put down so what the government's going to help us get in there on the economy tanks and they can't afford making these payments and then they're underwater and so what has the government done it's come out with a thousand dollar homebuyer tax credits had the f.h.a. step up an inch back more mortgages. and we're just having down the same path that the took us off the cliff the first time so then my question for you is argue saying that the reason why the jaycees haven't been wound down and the reason why we're perpetuating this propping up of housing that the government you and your view can't afford is because a special interest and the lobbying in washington because of members of congress care more about what the national association of realtors the national association of home builders say it than they do about the interests of taxpayers and country and it's not just that special interest it's just every other special interest out there as well taxpayers take a seat on air everything in washington and that's republicans and democrats alike

and then just quickly mr haven because you are the budget analyst and expert we keep hearing about these government shutdowns and the threat of them that congress you know barely averting them each time my question to you is you know what comes to my mind is maybe it would shake things up more if the government does shut down once and wake up americans what would happen in that case because i don't want to sound like a crazy person here well again talking about special interests you'd hear a lot of gnashing and wailing teeth from the very special interest that depend on the government that being said a lot of people wouldn't miss it and i think it would be a good lesson or a good test to start to reduce that dependency because look we've been having these battles back and forth of the debt ceiling the budget they're going to carry into next year they both sons are looking at november two thousand but that's what matters here when you have a government that big that takes up twenty five percent of the economy there's a lot of power money involved neither sorry you know november two thousand and

twelve is the super bowl both teams are playing to win and at the end of the day that's what drives that's what motivates an american people need to ask themselves should we have given human beings follow up with people who make mistakes and that their own self-interest that we should we have given them so much power of control over our lives to the point that they regulate our toilet blood. well kind of what . we use on and on and on it goes and housing is just another example one of their plan too when we do see examples time and time again of how taxpayers lose i appreciate you being on the show that was tad dave and he is budget analyst for the cato institute.

all right it's time now for viewer feedback it's a chance for me to respond to your comments and questions and we have been talking a lot about john this week he was on the hill twice and we were covering of course as a result that the bankruptcy and the global and the missing customer money and arena acts responded to us on you tube and said with the light on wall street isn't the iron hot enough to go after course zein is he above the law the kids he has most politicians in debt to him perhaps of holder doesn't act now who will know who to vote for in two thousand and twelve well it remains to be seen what exactly will happen as far as criminal charges but i want to remind our viewers that as our guest william pay black a former top u.s. regulator was telling us last week the justice department has really been the dog that has refused to bark as far as criminal charges with these financial executives go back and watch that interview was from last week i would encourage you to do so it was great but i also want to point out that the wall street journal recently

reported that according to a u.s. official the justice department had taken a position that pursuing these cases against financial executives was just too tough that the burden of proof was too high well so it remains to be seen if the criminal charges will will be brought before john or as i but he has been hit with civil suits and here is just one example where he was served with papers reportedly from a client. so that sort of stuff. in the middle of the search for years and i don't know if you're going to be very here but you have to serve. as a great videos from bloomberg it happened just this week now i believe now one of our viewers who is a very great active your challenge me to a debate recently actually sent us a video with some of his questions so let's listen to one of them mr would you agree that distributing will directly from the rich to the poor only adds to the

problem in speeds up the death of the middle class wouldn't it be more logical for a government program that allows the rich to help struggling business owners and if that sound business models and ideas for generations so let me just to respond to that we don't think that the problem is that we're redistributing wealth from the rich to the poor we think we've been redistributing wealth to the wealthy and the well connected on a wall street wall street firms as well as military contractors and the military industrial complex that said it sounds like you still want to redistribute wealth you just want to distribute it to struggling business owners so how are you going to decide who is a worthy struggling business owner or not it sounds to me like we're picking winners and losers again but thank you for your question and we're so glad we got the opportunity to respond to it now one you two viewer responded with his theory on m.f. global and golden said man i keep hearing the same problems and the same analysis but what is the endgame here why would these firms collapse like this why no

regulation i say follow the money they want to destroy the national currencies and create a gold backed dollar why can't anyone see this it's so obvious course sign is not adult i'm going to follow the yellow brick road because we all know there is a little weasel banker hiding in the emerald palace dorthy keep stacking gold and silver bowl ya know we really appreciate that colorful assessment and theory now this remember was an allegory for gold. no no no. i mean i mean i'm here. and for our view to viewer if your theory pays off you may have the money to purchase a pair of ruby slippers from the wizard of oz because they are reportedly expecting to sell today for over two million bucks now the slippers remember when allegory for silver silver was what they were in the book they were of course made ruby for the movie and before we go news radiohead wrote us oh lauren please promise me that even if this whole thing falls apart and were reduced to

a barter economy you and the rest of the team will still do capital account every afternoon i can pay you and beans and tomatoes that are grown my self how does that sound do we have a deal well you can keep your beans and tomatoes we have a deal and with that that's all we have time for i have a great night thank you so much for tuning in. you know sometimes you see a story and it seems so 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 tom parker is a big. publishers the same i understand my family and it's not always rumors on the back of the new

look in the markers hero or traitor these are among the labels describe bradley manning and he's a legend evolvement in the week a mixed release of hundreds of thousands of caution.