it's income tax it was a one percent tax that applied to one percent i know that yeah when jennings bryan when i was out on a tax on the rich yes it was and it was an attempt to convert this place the tariff at the time and that's why a lot of people favorite favorite is first in the south in the west because as opposed to replace the tariff and the taxes northern industrial guys and we get that washington off our back but eventually look what i mean it's you know it's losing us every day not just to the income tax or the payroll tax which for a lot of people is a much larger portion of the tax burden than the income tax itself so in your opposed to the income tax the entire life you know and there's a philosophical reason because there's a presumption behind the income tax that the government owns your income they can take whatever it wants and whatever they leave you is just sort of a favor they give you with this is runs contrary to everything that classical liberalism ever taught i mean thomas jefferson in his inaugural address in one thousand nine hundred when when he became to no one to be president so that the workers deserve the fruit of his labor and should never be touched by government and i hear you but then how do you pay for basic services that we can all agree

should be around for people i mean we do have a social contract we don't live in the jungle i don't believe that there shouldn't be basic basics of safety net of some kind how do we pay for that without an income tax well the presumption in the nineteenth century was that the tariff is going to cover us you know and if you drive the to and drive people crazy so if you have high tariffs then there's political pressure to lower them and we can keep them as low as possible frankly governments just going to cut back so you think just get rid of the income tax and cut back ever and you know you have to just get rid of the whole thing and look at what a wonderful thing it would be if you make money you keep the money that's the kind of system we need to have well i hear you but at the same time you know i want to make my money and keep my money but if i suddenly got unemployed and there was literally nowhere for me to turn and i was cast out and i had nothing to do i would want some kind of unemployment insurance benefits that you know everybody agreed were a good thing well for talking about insurance you know insurance is a private industry that could probably provide a privately is probably plenty of programs that would emerge lotions government.

does things and the displaced the private sector if the government stop doing it to the private sector russia and take care of whatever whatever we need what proof is there of that give me some evidence all of human history. really i mean if once you start looking i mean the really great depression that people you know that you're on about these these these were programmed people died and starved well the great line out of our bread in the first place great depression was caused by the government and prolonged by the government so the taxes the all that nonsense all the crazy unemployment programs over that made everything worse and they're doing the same thing to look at those unemployment numbers among these this is catastrophic you know i mean you know it is well wait let's talk about why because some of the biggest things to come out of that report today people are glowing about it but that lot that youth unemployment sixteen to nineteen year olds twenty three percent are stuck there we're almost out of time why is that so significant well it's significant because we're in a whole generation and they're not learning to work they're not learning how to enter the marketplace and into the commercial world and this is this is terrible for the habits of mind for their training and everything else and it's caused

directly in this case by a series of government regulations really i think the child labor laws are over posterous they are now listening to talk about children talking about young teenagers can't get jobs you know we've got your people thirteen fourteen fifteen who want to work and they can't move because of this ridiculous regulations and look at the minimum wage has been increasing more dramatically over the last decade and appeared in the previous fifteen years and this is this is a limb it's a violation of human rights and says it will not about were more than one of us get rid of child labor laws and what you have five year olds being for in the morning we have we have thirteen rules we're going to grocery stores that's a great start ok well you know that's a whole other conversation we'll have to leave it at that we didn't get to hear your song but as long as good your song is good lucky for us we are going to see your debate tonight we do baker and we will film your song and it gives everybody something to look forward to cause you will hear us jeffrey tucker about the the fed.

all right it's friday and it's been a while since i've been able to respond to you though i do on twitter quite regularly but i want to do a more formal response we received one long scathing e-mail of criticism i can't read the whole e-mail but i did want to respond to a few pieces and emailed and said alona has repeatedly had anthony randolph go on her show as an economic expert it drives me nuts he views things the same as warren lister through the same lens as a wall street broker it makes me crazy because every time i see him i hear him complain about the government keeping the interest low lauren lyster has made this same argument now i can't speak for anthony randolph but maybe you know we'll get a chance to hear from him but as for me first if this person thinks i see things

through the same lens as a wall street broker then i don't know how much she's seen of the show because i don't think you hear wall street complaining too much about low interest rates you see them benefiting from them and all we do on this show is analyze what's wrong with wall street so to go on let's get more specific as lister has done they lament the fact that they are not making money from interest being low for god's sake we're in the middle of a housing crisis there are probably millions of us who are making our mortgage payments on time who will foreclose when rates go up if we are not able to stabilize these loans when interest rates are kept artificially low okies need to sustain these laws so our argument this is something we talk about all the time ok this savers when interest rates are kept artificially low it directly punishes savers borrowers on the other hand and less there are large financial institutions do not necessarily benefit from. in these low rates we haven't really seen that banks still have to be willing to lend you money and what we've seen is that banks

are more concerned about padding their balance sheets then they are in extending credit to mom and pop in other words the fed can lower the federal funds rate all it wants it can keep it is zero as it's done and will do but this does not mean that you're going to get an affordable rate on your mortgage in fact as we've seen mortgage rates are still out of reach for many people despite the easy money policies of the fed to go on she says a number of people have been talking publicly about reducing principal and canceling debt it really does make sense of course the banks are not going to want to do it but we should be as bold as a country and force them into a new paradigm we agree this is something we talk about all the time debt forgiveness or default there is a point at which debt levels become so large that they begin to economic growth as opposed to promoting it this is where we are today so we hear you on that now she also said a few things about how i make

a lot of money and probably have no problem paying my mortgage which if you know anything about journalism is kind of laughable i don't have a mortgage don't know when i will but i know plenty of people personally who are struggling very much during these times so i don't want you to take my position as unsympathetic towards yours i believe. but i did want to address your e-mail on the criticism because we'll continue to talk about this issue of savers and interest rates sticking to interest rates let's go to twitter because i got into a bit of a back and forth that i really didn't have time to respond to is during davos things are busy chasing people marked out tweeted that the data tells us an ambiguous lee the fed is debasing the dollar assertion is wrong to which i replied well it sure did basing my savings account he tweeted back and said how do you measure if we can advance that how do you measure the extent to which government is debasing your savings. i didn't get a chance to respond i measure it by the fact the market interest rates are lower than the cost of living so i'm losing money if it's sitting in savings financial

repression now this spark more responses on twitter the conversation me and mark had from other people mark said it's hard to argue about debasement if the u.s. dollar is slightly stronger since printing started hedge fund invest said that's more a testament to other currencies just doing worse as a reflection of the economies and what he's getting at is that the dollar's traded relative to other currencies here's mohamed el area and c.e.o. of pimco explaining to me the dollar's relative strength. extreme's rates. very different because they are relative price so it's the dollar versus the euro dollar versus the year. when you look at exchange rates you have to ask a relative question what does it look like on a standalone basis but what does it look like well if two on the exchange rate. cleanest dirty shirt to use their analogy what matters is not how many zimbabwe dollars i can buy with my u.s. dollars what matters is how much of this stuff i need to sustain my living

standards that's how you measure debasement moving on i want to thank everyone for the positive responses to my davos coverage which i have which i responded to on twitter and i just want to reassess reassert that also earlier this week we got into a debate over savers versus speculators and one of our guests brought up a recent bank earnings as a sign that fed policy zero interest rates don't benefit banks whenever you choose euro said this news flash the bankers might not be living the high life like ten years ago but none of them are getting foreclosed on they still make millions and billions and we're going to say hey it's ok at least they are hurting too well it's funny how life long investors like jim rogers and mark father don't buy into this and make money honestly investing i just want to make sure that you got a chance to catch my jim rogers interview where i asked him about this earlier this week you can catch it on line because that is all we have time for thank you so much for watching the show don't forget to follow me on twitter at lauren lyster to give us feedback at youtube dot com slash capital account have

a great weekend and from everyone here at capital account have a good night. can be used. in global supremacy does it it change. in two thousand and five and two thousand and nine the u.s. has spent fifteen billion dollars in the price to pay for the entire program that we are dealing with right now here in two thousand and eleven is another hundred and fifty billion dollars that's larger than many country's entire military budgets twenty on things becomes the best for the defense.

you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

first either very much the only two are it now or not. thank your personal conversations are being held in private think again thanks to the hacktivist group anonymous not even the f.b.i. is protected we'll tell you about their latest attack. on a work rate has dropped to eight point three percent this was a big usually positive and the mainstream media sure knows how to color a flowery picture but no matter how you paint these roses the economy is still in the red we look at the real economic woes of the united states faces the economy is

kind of you know given them some tough times and they still want someone to work them into shape and when your finances take a beating sometimes you have to hit back or in this case with others to make ends meet will show you one underground business that's booming. it is friday february third five pm in washington d.c. i'm christine you're watching our team. once again with the latest from the hacktivist group anonymous it is friday after all which means the group is out with a new chapter in their program a name of which i can't say all of on air other than to call it f. f.b.i. friday well you might remember two fridays ago we told you about the groups that waged attacks on web sites for the department of justice the f.b.i. universal music group motion picture association of america and more that was in

response to the file sharing site mega upload being taken down by federal agents well now the group is that it again for a short time today the web site for the department of homeland security was down another target earlier today the web site for puckett and for raj the attorneys that represented sergeant frank wuterich in his recent trial were direct you may remember admitted to leading marines into two civilian homes in had that iraq back in two thousand and five which resulted in the deaths of twenty four civilians including women and children and here's a glimpse at what it looked like it was a black page today on the attorney's website in which they wrote why they targeted the page they said they want to bring attention to this case adding can you believe this scumbag had his charges reduced to involuntary manslaughter and got away with only a pay cut it goes on to compare that with what's happening with alleged wiki leaks or bradley manning who faces life imprisonment for sharing classified documents now another really interesting thing happened as well turns out it's not just web sites

apparently anonymous has also been able to tap into and record some pretty high foot profile telephone conversations including one between the f.b.i. and scotland yard about the investigation into them anonymous. prosecution counsel make it out of africa. but as far as a without defense knowledge. seeker like to try to some time a suspicious ok how much time do you think it's reasonable that they'll be on the. ghats. which is. what we're going to propose as. well the f.b.i. has confirmed the call saying it was illegally obtained and meant for the ears of law enforcement only but as we know anonymous doesn't care who such matters are

intended for so let's go now to the founder of project pm barrett brown he has some knowledge of anonymous and is our source to help shed some light on what this means i spoke to him a little earlier and here's part of that conversation. looking. at the most recent. mention. the knowledge. point. for something that is. a. they discuss a lot about the back more goes on the background in terms of how they proceed. and that's going to be very useful for a number of parties. let's talk about what we just found out about a few minutes ago before we came on air the department of homeland security website

is down talk a little bit about this why you think this might be the latest target for the group anonymous. well to be. born in a log for a while i have them know they're looking into me for some reason about a month ago based on. the there is obviously they're obviously have been one of the targets on our own for a while now there's nothing recent that i know of that one of them. saw and they're not off the a little while ago that a couple of people have been very intent on bringing you down and it's just sort of the icing on the cake on this front it looks like i've just gotten word that that website is sort of back up and down intermittent but i was down there for a few minutes at least i want to talk about the other latest hack the attorneys who represented marine sergeant frank wuterich why do you think they chose this case in particular certainly there are a lot of things that people find fault and especially with his sentence not even

getting any time behind bars but why do you think anonymous would focus on this case stacey and just as the and not the many others. this is that they're going to a lot of them there are a number of reasons why i know anonymous basically any american who cares about justice would be mr person involved who prompted this massacre of twenty four people got off extraordinary lightly at the same time bradley manning is still facing god knows what after having been psychologically tortured for months contrary to american ideals so you know the just a month ago i guess the sentence handed down and in the meantime this this law firm has a history that i won't go into right now but they have a history of. behavior and said couple the e-mails that he people responsible somebody say we've gone through all the. points and. from what i

understand. the part of the firm joking about the marines who are here and eating on and on that afghan soldiers that's just a slice a small slice of the e-mails which in this base. consist of about two and a half years of chains so since as usual surgeons will soon be put off so that anyone can search and he would that once and come up with an email that you were there's going to be a lot of trouble for the sperm in the next few weeks and it's really interesting to you from what i understand i mean that the amount of e-mails as you say two and a half years worth of e-mails that anonymous now has their hands on not only talks about some you know things that many people would see as inappropriate at these attorneys have been discussing it also shows a lot about who's been giving money to who and certainly when you follow that money that can lead you in some interesting places i guess it to me hey i've got interest is not going to this law firm to get sued on this they're going to be

a lot of other parties by the end of this are going to be tarnished possibly more who will know more about that. again and again you know this is sort of becoming the norm i mean we've had you want to share it. you know every other week here. it seems to me that anonymous does what anonymous wants and but it stands to reason that as more of these attacks take place the more resources you know the f.b.i. and the government will sort of devote to try to take down anonymous and what do you think i mean what's going to be able to stop them more or is there anything that could happen that would make anonymous stop on their own. this well i'm not going to miss any of them all these are processes that will the system and a process of balls very quickly a system there's no system is situated a system is broken more. ball change on a whim they can't so they're always sort of steps behind you know if they make some arrests which they often do and of course you do as you go we have people who are

to show up if you're in san diego and they've all. not guilty in that situation and so. ya know i did not realize that when even the rings we had lots of cuomo mortars . they were expecting to be able to. turn these guys to scare them didn't realize the two days of the original raids in january two thousand and ten we would have some of the top borders in the nation there and started buying them so it's things like that that ensure that no matter what happens. we're going to be burning out any time any time soon all right certainly something very interesting that we here at are to keep our eyes on all day long you should see our web department they all kind of are into this making sure they don't miss anything and they were the ones who notified us about the department of homeland security and who knows within the next few hours we might have more news we do appreciate your insight founder of project pm there at ground zero. well in one week many egyptians

will celebrate the one year anniversary of the day their longtime leader president president hosni mubarak stepped down after quite a bit of pressure and weeks of protests in the streets but despite this event that so many called a victory for democracy clashes continue and tensions remain high. violence as you can see there continues on the streets of cairo and at least three people have been killed and four hundred injured and this comes after wednesday's very deadly post football match clashes in which seventy four people were killed after the game in a stampede many of those protesters there blame police for not stepping in sooner not how many people in egypt are continually frustrated by the fact that egyptians still live under emergency laws these include bans on public assembly indefinite detention without charge and prosecution with no appeal argy correspondent maria if an ocean of brings us a snapshot of what things have been like in egypt during the past year. around

a thousand killed at least six thousand injured and even more still missing egypt's people have played a high price to leave in you country but despite all the sacrifices the shadow of the old regime still lose large during mubarak thirty years of mubarak's rule to meet a number of people try them under military tribunals where one to two thousand now you know within about ten months or eleven months we have twelve thousand which is of course a humongous number for a country ruled by the military the supreme council of the armed forces or scaf that's no surprise but surprisingly enough those discomforted over from who'd previously run the country are not themselves before military tribunals you cannot have four. suspected killers.

to be tried in civil court system. you know the ordinary people i mean in military courts this is a better way and this is illegal hasty with no proper investigation usually with no lawyer and behind closed doors and with no right of appeal for human rights activists complain military trials provide no justice and violate human rights you know you have a nineteen year old getting a twenty five year old son to your centers because he walks i'm out of cocktails and people who are found guilty of killing somebody by brutally beating him up and torturing him until he died these are getting seven years in jail so i mean it there obviously there's something wrong with this picture a lot of these people are trying for absolutely no reason i mean someone just just being in the wrong place at the wrong time is enough to get you in trouble that's exactly what matters is his case september the time these really embassy in cairo

the. place. young screenplay writer was present at clashes between the army and demonstrators and began helping the injured arrested he was brought to military barracks after summary trial which lasted just twenty minutes he was taken straight to prison to serve almost four months for terrorists and he says the military dishes out a very rough justice. in the emerge in a seventy year old who's been in the army for at least thirty years it must be hard for him to take off his uniform and this large staff and this was the only way they know how to deal with problems. for several days what did know her son's whereabouts who were the mongooses when his sister came to me and said i have to talk to you i knew it was about him hoping for the best i prepared myself for the worst. a month after ahmed was released he now faces yet another trial from the

same incident at the age rarely embassy. they go is to intimidate people the message is clear if you go to torah you'll be arrested and it makes us even stronger how is it they don't understand that the matter is now working on a book he wants to title you must shut up he explains if people didn't give up after bin britain and humiliated they'll never give up until their voices ahead of . the citadel in cairo egypt a medieval symbol of power and strength it was fortified centuries ago to protect the region from his enemies at that time crusades and persuaders today egypt's rulers are doing the same striving to defend themselves and to keep power with thousands in jails and dozens killed the concern here is that they may have been working too hard. refinished.

so i had on our team things are looking out for the u.s. economy or so the latest jobs report would have you think but as president obama and the media celebrate it's a little too soon to be popping the champagne cork that story that. we just put a picture of me when i was like nine years old when she told the truth. i have a confession i am going to get a friend that i was driving. and for. that he was kind of yesterday. i'm very overwhelmed with its place.

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. 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 imbue it with the global machinery see where we had a state controlled capitalism it's called session when nobody dares to ask we do our tea question morning. well

there's a celebration of sorts that's been happening today and reaction to the latest jobs numbers. the unemployment rate has dropped to eight point three percent this was an a big usually positive it shows that the job market is definitively gaining traction for but the civets difficult part of the jobs report this morning not just the headline number when you dig down into the details every part of it is strong all right so we should tell you every category did exceed expectations so here's a look how it all breaks down the unemployment rate now down eight to eight point three percent down from eight point five percent the month before this is the fifth straight month the rate has been in the decline and you one hundred forty three thousand new or nonfarm payroll jobs were created in january fifty thousand of those in manufacturing still there is much more of a story and since everyone else is throwing a party we wanted to make sure that the other side of the story was still out there that this.