furthermore from now on every continent in the euro zone should not give in have three percent reduction have a constitutional amendment but it should be even much lower than god given a one percent except in some difficult times this is not what i would call the fiscal union this is just not possible for every member of the eurozone group to create surpluses so that it is possible to vend the euro the euro zone should be in an even keel based on the definition of the odds. of america believes and president sarkozy but major pain same with you when you were asking if i could stay with you in new york a very but when countries joined the european union i'm sorry the eurozone they didn't sign up to this kind of economic policy at all did they i mean this is turning into a straitjacket i mean people didn't vote for this they voted to have a common currency the end these were talking about earlier you're right it was a correct because they do euro they go as

a euro project is an incomplete project you cannot have a monetary union without a fiscal union and along the same lies in the united states and you can have a political union where you know as the powers that be was created the euro zone was germany germany and france in the names of francois mitterrand and also john chancellor kohl knew that the project was incomplete and they expected that those who would follow them will complete the project but what do instead we saw is the development of tremendous imbalances between the into euro zone countries it is not possible to expect the german who will always have a surplus unless other countries such as greece and portugal have that it's ok and therefore this is how we created the let me growth pattern legion me being given here i mean people i mean it. we just heard that other countries would follow the

it would follow the political union thing that people didn't vote for that i find that inherently undemocratic and that giving people a choice ok i mean what happens when you win the next three comes in in greece they're going to vote against it to you this austerity package arrives there. of course they are and not only in greece we already hear echoes of this and perhaps this is where francois hollande the leading member of the opposition looks likely to win the next presidential race and france is already saying why do we have to have this us therapy and i think this is the key you can see the leaders signing up for it because the exchange is clear in germany you give me the cash to survive given my debt problem i'll give you my sovereignty but will the public actually comply will they agree to accept the pain of the susteren and will they agree it is to admit the most important sovereign aspect which is your this call your budget

to technocrats in brussels that are not answerable to your population through a ballot box so i think that although there are many europeans who would like to see a united states of europe there are many who would not and this question is what did we all sign up for the issue today is that the debt burden is so severe that people will sell their sovereignty for cash right now but will they actually deliver what germany is expecting and i fear that we're going to have a meltdown have a breakdown because even though they promised they're not going to deliver. i mean i've used it where is the political will right here because it seems to me if it was absolutely right you know merkel just wants to win the next election that a cozy is praying he's going to get in and then we'll worry about it then i mean it's kicking the can down the road just keep taking it down because the politicians have no political will they have no. fortitude to really deal with this issue because again the at the end of the day it is bailing out banks the bankers get

paid everybody else gets screwed. well the issue goes back to what we started our discussion on which is the political will and it's interesting the latest couple of comments because we need to bear in mind that currently greece and spain and italy story they they have governments that are not necessarily the most graphically let their technocratic prime minister they both have prime ministers who were technically imposed by germany and france and i'm not sure that if we were having an election tomorrow there the result will be that you know the greeks would like mr potter the most as a prime minister and the values would like a mario monti as a prime minister you might have a very different result there and it looks like there is a trend developing in some other southern european countries like spain and portugal we've seen the results of the elections in spain that's completely changed what was happening in the prime minister role so i think having him having

a union means that you need to think about all your members and you need to be inclusive and at the moment the problem with european union is that although initial stages in its inception was going to be an inclusive union giving to the less developed member states opportunities to develop some structural funds through their financing that the commission of the law established back in the eighty's and we now move to a union which is basically dominated by two if not one country doing whatever they want keeping the common currency low because we need to put that into the equation germany right now has significant exports because their currency the euro is a is a is a low current the device i don't know that's going to go towards market i think the people here it's a lot currency it's a long car and see actually four of the four of the four germany obviously very

high carries evil by. if you go in greece and ireland ok to go there's a difference that was a sort of activity difference and i want to say here just to be really provocative here and i don't want to be mean spirited at all but it looks like the germans won the second world war in europe for what do you think about that well look i think i think that there are a lot of people who are going to look at this that way i think the fundamental issue here is that this is the end of the social welfare state in europe outside of germany not because people are choosing to end it but because they have run out of money to pay for it and i think the critical social question that confronts each of these countries individually is what will be the new deal between the citizens and their state about what is the state going to deliver because the state is not going to be able to deliver retirement at the old age it is not going to be able to deliver the pension benefits that everybody had expected and it's not

going to be able to deliver the same size of the civil service that's going to shrink and so these are massive domestic political social questions and personally being american and free market i think this is in one way a very very important episode in history the end of the social welfare state in southern europe is going to give a blast of oxygen to the entrepreneurial class which i welcome but it's a massive social dislocation and therefore we have to understand this can be very known but you know if you go through but you have no choice if you have no money ok dimitry jump in there it's a very interesting thesis we just heard but you know but do you know that it is not the end of the world for stadium germany or even france it is on the end of the letter where it will pause in greece and portugal and ireland if god is not about what a euro zone or european union supposed to be united states of the in the united states of america new york sends a lot more tax dollars to the federal treasury that in the receives in terms of

government expenditures on life. delaware but hit by these in the in the opposite direction he does receives a lot more than you'd sense to the federal treasury so you cannot have a euro zone with with only one power to dictate the terms of the game so clearly ones one's governments begin to understand this and if you say there is an intellectual any ideological shift if you look at the last polls in greece you will see that the left has been gaining as well as the altar right now this is not a healthy situation and i am sure that you will see the same thing in portugal and you will see alternately the same thing in as you are seen in france for the socialist actually present educated to gain support against the society was he who did it has no idea what a european leader was spectacular leadership is supposed to be ok so clearly you

will see a conflict transformation but i would be taking place interesting frank is close and in london again do what you need to have to say falling on paper is fascinating because what we have is the center the middle dropping out everywhere and we have going to extremes i mean this whole currency crisis and that is creating a really intense political crisis as well because people are looking for written answers that have not been usually considered in the center. roldan people are you looking for answers that probably means that thing in greece for example people are looking to you to demonstrate their way that they did things like the government the current government so effectively you don't seem forward thing happening because the left or the arrive wing parties have a solution to offer it's basically a volt so i guess that's the current government and against the current situation so the problem with with all these southern european countries any goes back to you

know smarties are started see as what what is that politicians try to do and he's all right what is the alternative and we've we've talked about a common fiscal policy in european union the key question for me there is who's going to be responsible for that are we going to establish a treasury in brussels are we going to give more power to brussels are we going to increase the democracy deficit that we already have i mean in your eyes anyway to many more questions we have time to answer what i mean all yes all it's going to take all of my guests it today in london in new york and thanks to our viewers for watching us to see you next time and remember the cost of. the.

wealthy british style. market. to find out what's really happening to the global economy with my next concert. no holds barred look. at lines. on march. the so.

how can they allow to show that the real headlines with none of the mersey are to live out of washington d.c. now it's not going to host a monday panel talking about obama's budget c.p.i. and the g.o.p. race not wealth and your crew are going to be joining us then a grief was burning this week at protests and riots broke out after the parliament approved a strict austerity package so at the end of this we have to wonder if it's even help and admiral william mcraven is now asking for more off already to move special ops forces faster and outside of the normal pentagon channels so is that what we

need or will it only allow for less accountability we have all that and more fear not including a dozen happy hour but first take a look at the mainstream media has decided to miss. all right so today the obama administration released a budget for fiscal year two thousand and thirteen hours a lot to discuss within this breakdown and we'll get to that during our panel after the break but the mainstream media are also talking about this today and looking at some of the details. president obama delivered his twenty thirteen budget plan to capitol hill and it's sure to fan well more ugly debate over your tax money and how the government wants to spend it the plane calls for spending three point eight trillion in twenty thirteen projects this year's deficit at one point three trillion congressional republicans are already seething on that number reminding voters the president promised to do doesn't know how to cut the deficit in half by

the end of his first term he promises to reduce the deficit by four trillion dollars over the next ten years even before the budget was made public and republicans said hey it looks like a stimulus plan three point eight trillion dollars spending plan that envisions about a nine hundred billion dollars deficit for fiscal two thousand and thirteen four hundred seventy six billion dollars for infrastructure upgrades over the over a six year period three hundred fifty billion dollars for job creation thirty billion dollars to hire teachers and police officers and firefighters his plan stross a very sharp distinctions between him and the republicans he calls her raising taxes on the rich and billions of dollars for roads energy and manufacturing paid for by savings from two wars. now i want to focus on here is that last little bit clips the money that will be saved from drawing down our two wars that we've heard this before by paul ryan last september the president's jobs plan and yet again in this new budget or by all accounts u.s.

troops are no longer in iraq although we know that there's still a massive state department presence and a credit line is in fact still asking for about three billion dollars more next year in iraq why is a very important question that i want i still haven't seen anybody in the mainstream media ask by the way that in afghanistan it does look like will least be a troop drawdown in the middle of two thousand and thirteen but how many troops exactly we don't know yet there's also continued spending and plans for permanent basing they're also deserving of harsh questioning and so let us use this time right now to talk about an incredibly important report that's out there that's something that we should all reason. we should all examine before talking about any kind of numbers that we can properly critique that as our daily viewers out there should know last week we have the tenet colonel daniel davis on the program he's an active army officer who just submitted a classified report to congress it's a pretty damning assessment of the dishonesty of our military leadership now just two days after daddy appeared here on the show and we see report claim that a pentagon investigation had been launched into his report but there was also an

eighty six page i'm classified report which and colonel davis had written to be released for public consumption and in something of the pentagon had it cleared for release which let's face it isn't surprising but on friday evening rolling stone contributing editor michael hastings posted that unclassified report on the internet for all to see how this version is eighty four pages long and all i can say that is well worth taking the time to read they discharges our military leadership with intentionally being dishonest with congress and the public about what they claim to be signs of success or progress or momentum in the war in afghanistan he shows up throughout the command of a number of different generals and even after the troop surge and i'm still show that violence casualties both military and civilian alene creased so we say we have momentum or progress of even with more resources the violence is only going up every document through various interviews with those on the ground the reality of

training afghan security forces and how they're failing also the opposite of what the official say to congress and to the press he takes a look at how it is that a surge in afghanistan was sold is a good idea because the surge in iraq under the command of general petraeus was on a broad level seen as a smashing success but they were shows that with a real turning point iraq was sunni population the insurgency would have been fighting against our troops with al qaeda deciding that al qaeda attacks on the local population had become so inhumane of the sunni insurgency decided that they were the greater better to work with the international coalition forces to get. amount to save their own country first but the feeling that we were an occupying force that never left sending troops to live closer amongst the population was never an ideal we didn't win them over they just chose to work with us so if people properly looked at the iraq surge they could have made a better assessment as to whether or not the surge was really the magic fix to afghanistan i think it's also documents the insane amount of lying and manipulation

that takes place to get congress to keep finding new weapons systems and projects despite failed tests which they don't tell congress about despite reports from the government accountability office year in year out which show continual failures i have the military leadership in those in charge of these projects just claim that the g.a.o. doesn't know what they're talking about and finally davis really calls in our leadership to be honest honest with congress honest with the american people because that's their duty we don't want to think that thousands of american men and women have lost their lives lost their lives for nothing but we have to properly assess what's happened in these wars we have to have congressional hearings where the military leadership is called out on their public statements that just don't seem to add up with the numbers that are coming in from the field becomes a massive issue of credibility not only to our own country and our people but to our allies who begin to question if our military actually does doesn't have a grasp on international politics that they believe what they're saying now some

may dispute elements of davis' report some might claim that it has nothing new to offer but the point is it is a really interesting and powerful assessment and it deserves to be discussed debated at least brought up and that's response ability of our media and media that will continue just pissed off numbers as providing government budgets but actually asking where that money is going and why and so that's something that davis also has in his report has been said many times of for that our press is too attached to power because they're too dependent on the access and so they rarely do the real reporting that just might jeopardize that access. so do it for yourself and go read this report because i can tell you the mainstream media didn't even blink an eye when it came out because they have they do and they will continue to choose to miss it. all right so they were trying something new on the show monday there's

a lot of news over the weekend a lot to take in that was just announced this morning is that one is returning to work so we're going to call this our monday hangover because like that today we're going to look at some of the results for the republican presidential candidates over the weekend romney won the straw poll souls' maine where a lot of people thought ron paul just might have a shot also the president rolled out his budget for fiscal year twenty thirteen this morning as the last annual budget of his term and it says a lot about the themes of his reelection campaign but they have been a little continue to be so first let's gloss over some of those details the budget looks to cut the deficit by four trillion dollars over ten years of final project a one point three trillion dollars deficit for this current fiscal year slightly higher than twenty eleven and also projects a nine hundred eleven billion dollar deficit minus a trillion for fiscal year two thousand and thirteen now that's going to be the total spending of three point eight trillion in revenues a few point night now some of the revenue raising ideas to raise one point five trillion over ten years is to end the bush era tax cuts for the wealthiest

americans and employ the buffett rule also tax and dividends as ordinary income and eliminating some corporate tax breaks for oil and gas companies and the budget reaffirms cuts in discretionary spending by a trillion dollars over ten years and it reduces that discretionary spending from eight point seven percent of g.d.p. in twenty eleven to only five percent and twenty twenty two there's also some new spending three hundred fifty billion for short term job creation programs boosting infrastructure spending modernizing schools and giving states and local governments more money to hire teachers and first responders some call a populist president frame. say is everybody playing by the same set of rules and republicans oh naturally they have attacked it so what do we say about it when we discuss it is j. crew or chief strategy officer at fish and strategy dot com and that welch of their chief of reason magazine and co-author of the declaration of independence and libertarian politics to fix what's wrong with america gentlemen thank you so much for joining me tonight thanks for having

a hangover i mean you can see all these figures i just had to write really hard to do. i mean let's start i guess if you want one word to describe this budget that the president unveiled today would be fictitious. yeah i would use dream it is a dream that will not come to fruition ok so you called a dream you call it fictitious but the republicans out there had another word for it let's take a look at it like ok. this is a dishonest budget it claims multiple reduction in deficits that aren't real and it's just the very disappointing. well it's possible to agree with jeff sessions. doesn't feel very good particularly i know i mean he he includes long term cuts. in the deficit based on obamacare that do not pass anybody's smell test i mean it's oh we're going to have a doc fix someday so let's book those cuts even though we know now there's never

going to be a doctor it should never be political will for it and these types of things and as you mentioned that top you know you were always booking those savings from iraq and afghanistan and all these types of things so we shouldn't expect the president to be truth but i think the most important thing here is that it's shouldn't expect the president to look at a statement that he has not said to be truthful i think he's probably right in that we haven't had a budget and three years or almost three hours of it almost doesn't matter at all that he's put something out except that it is talking points and i think that is that is a fact that at this point i think people on the right and left can agree towards i think it's interesting that people talk about you know throw the bums out what we really need to be talking about is through the code out there the regulations in the code out that we have right now that are governing our tax code our procurement laws and i mean that's where the spending is that does not come in the changes that we need in order to be fiscally responsible and get the stuff that we need to support the infrastructure of this country doesn't come from speeches and it doesn't come from budget proposals that are in the media we're on autopilot basically right now i mean we haven't had a budget in one thousand days and so didn't harry reid harry say to you that we

were not that i really wish there was a budget it's a dream to have anything that we're going about and the further we get away from actual budgeting the further the president's proposed numbers depart from reality i mean his projected deficit from last year and the actual deficit were pretty different and that's just going to keep going like that going forward we need i mean his first budget that he's proposed back in two thousand and nine was titled a new era of fiscal responsibility it almost makes you cringe with laughter at this point we actually need responsible governors people in the senate budget committee to produce a budget so that we can talk about this but we're not it's a campaign document and we're in the. sort of fantasyland ok well in that case then since it is a campaign document i'm pretty sure that most people can agree on that is at least a good one you know you say that people trying to pay all that much attention to some of the numbers that are out there but if you do look at polling i mean republicans are not budging at all on this issue of taxation but a lot of polls show that americans are totally cool with raising taxes on the

wealthy or with applying the buffett rule so you know if you want to lie is not a good point to make it's a popular budget i will say that yes on a strictly strategic level this budget makes sense and if i were the president i do roughly the same thing probably exactly this yeah i mean it seems very smart does it have any real impact in terms of our actual spending and actual programs that are going to benefit real americans very little and i think what will continue to happen is frustrating for me is you kind of asked the question when did world war two and we still have fifty two thousand troops in germany thirty eight thousand in japan we look at the wars in the spending coming down from those but it is appalling period as i think that said well and now i guess in those troops there they might be leaving europe but that right there can be helping you know to the persian gulf and to other areas around there but three billion dollars to the pentagon also had a budget those released three billion dollars more for iraq even though the state department is going to have a massive presence there are they have sixteen thousand people right now i believe

three billion more dollars in iraq if the war there is over we have i have a friend who works for the state department as described walking around in iraq and you like just trip every ten feet on another ten million dollars of u.s. spending that it's it's almost it's physically repulsive to watch and regardless of your politics going into it there has been a good as to what it how you talk to show there has been no institutional break on military spending in this country for at least fifteen years or you believe for fifty going on how you want to measure things but certainly in the last fifteen no one has made a point of checking the stuff you could always say we need to support our troops we need to support our veterans. to win the war against the evil guys and that has led to some of the most idiotic conversations possible and we're only trying to begin to have a conversation about this stuff but what happens what kind of pathologies do you breed in there if there's nobody who's having the intelligent conversation against this of course what happens is that people in invariably start writing their own blank checks and that's where we're at right now we had michael o'brien who's an

author was on our show last week we were talking about this piece about the state department budget what they actually do in iraq and he was you know there's this new york times reporter originally said that oh no the salad bar at seven days was running low when they had to crash into each other six rings of teeth in the splenda they had a shortage over it he basically told us that he got really fat when he was a rock because he was just fed so well because his legs also but let's also remember that personnel are expensive and they should be if there's one thing that we should be paying money for it's benefits people who serve in the war like some people here not me you know there should we should be taking care of our own we can withdraw everybody back home we still got a pig in a python paying for each man you have a baby there most expensive when they go to college when you have the baby right and the us has been in war after war for the last hundred years and the only thing we've been able to talk about even remotely intelligently is slowing in the rate of

growth of spending it's not actually cuts we're talking about cutting is the pace at which we increase it's not actually going down and that cuts this this time around i've got a six hundred thirteen trillion billion dollars i'm from let's talk about the idea of cuts overall so i want to show you something that the trackless said yesterday. i think there's pretty broad agreement that the time for stereo is not today we need to be on a path where over the next several years we bring our deficit under control right now we have a recovery that's taking root and if we were to put in a staring measures right now it would take the economy in the wrong way. i feel you disagree but i think you know coming up next on the show we're going to talk about greece look what's happening in greece look what's happened in the u.k. is austerity what we need right now it's not working out so well there look you know strains addiction the put it isn't going to start tomorrow you know we've been hearing this since the financial crisis and we're going to hear this for as long as we keep you lecturing responsible people if you think of it that in the deficit or

importance if you think that we're risking. flirting with catastrophe and this is not a responsible budget we have to cut spending spending has increased when obama took office two point nine trillion it's three point eight trillion the new budget proposal it keeps it at three point eight trillion in this fictitious world of a budget but we have to cut government period and you have to do it from military spending you have to do it from medicare you have to do it from social security have to do it from the department of commerce which got the biggest boost of any department in this fake budget being smart is kind of where we have to go right now and being smart almost certainly means we have to spend less money we can't we can't be for a better tomorrow tomorrow as i think a typical bears his name because i have to be a putter tomorrow today and it's folks that are are being born now and folks just a little younger than us that are being that are going to be screwed by this budget running at a time when there is nothing more things they want to add really quick i just want to get your idea this is good.