good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are your headlines for april eleventh two thousand and twelve so here we go again with debt troubles brewing in spain a european central banker is triggering talk of an easy b. intervention so now people are speculating about another bomb purchase program to lower spain's borrowing costs come on how much more money will be conjured out of thin air pumped into europe that's cool to make things look stable we'll talk about the cost on not know the fed's beige book came out today and people are looking at the data for any signs of weakness it could trigger

a renewed hue we recon bird station will talk about the perpetual nonstop debate where everything economic seems to rest on whether there will or will not be more money printing how long can this nightmare continue and is the bank of america doing itself is this how big are too big to fail banks have gone that this is what we're seeing we'll talk about this latest apparent absurdity of the foreclosure mess out there continues let's get to today's cowboy down. central banks in the spotlight as the yield for spain's ten year bonds have recently been back on the rise reaching the terrain that pushed ireland portugal and greece to seek bailouts ok how shocking the debt crisis is

a problem again and you can throw money at a problem but it just goes to show that doesn't make it go away but that does not stop central bankers from trying and comments made by one have people speculating about the e.c.b. getting involved and purchasing bonds so the european central bank executive board member ben la said spanish market conditions are not justified and talked about the tools the e.c.b. still has a place in its arsenal to buy euro zone debt ok the securities market programme the s. and p. is what he referred to today adding new u.s. eyes are on the federal reserve as the fed beige book came out today and reports of people who are looking at that for any signs of weakness you could point to calls for q e three it down the u.s. economy did keep growing moderately late winter but rising energy prices are worrying consumers we also heard the atlanta fed president today say the bar is still very high for more easing but i want to point out some interesting trends when it comes to the fed's intervention that may help us figure out when the fed

acts ok let's take a look at this chart so this starts out before the whole crisis really began back in two thousand and seven and you can see we have the s. and p. five hundred is that blue line the ten year treasury yield is the green the fed funds rate is the red so you see bear stearns hedge funds collapse in the drop interest rates but look the market was still falling and so then you saw the collapse of bear stearns and you saw liquidity programs such as telus came in look the market still falling there then believe in brothers bankruptcy september of two thousand and eight the thing that drives interest rates to zero and we've seen them stay there as we all know so well but look the market still going down so look what happens when it is easing that is finally what gives the market a boost and look the stock market just goes up until it gets worried that q.e. is running. starts to fall it falls until look ben bernanke he makes a speech in jackson hole hinting at q e two that everybody knows that that is coming or bracing for it at least markets starts to go keeps going up as q e two in

fact is announced and does in fact happen and it continues to go a lot until that and then it drops again but lo and behold the fed announces operation twist another effort and very have it the market continues to rise this could make out of bed with the helm it's trying to prop up the stock market ok is that the goal it makes you wonder who the bad is really serving and blogger on the intentions of government officials president obama continued on his buffett rule blitzkrieg today take a look you've heard that from warren buffett pays a lower tax rate than a circle. because he's the one who's been pointing that out and saying we should fix the executives who are with me here and they just behind me but in the audience agree with. catch that in there his friend is buddy warren buffett we've talked about the crony capitalism before and those executives let me bring him back with

fifteen grand a plate fundraiser last night is this the perk they got for their donation the buffett rule would really reduce the deficit that's the question but people are finding that it's not so then what is it really all about bluebottle is here to talk about all of this with us the chairman of the ludwig bunny's this institute author of the left the right and something we cannot ever leave out these days the state lou thank you so much for being on the show mr walker it's always nice to see you lauren so to get started you know we've actually backed off the fed for a little bit just because we've been focusing on some other frauds going on in the financial system more broadly but you've come back and it's still the same thing going on where the that appears to be planning and deciding what's going on in the economy even when it is an m. by that i mean here even today you see everybody going ok what's the fed going to do is q e three coming is it not and planning and investing and betting on what the fed will or will not do and when it will happen so does this just go to show mr

rockwell that we're in kind of a post-capitalist phase where policymakers are calling all the shots these days well sure i mean this is this is not a fruit column is it so many people the nineteenth century or most of the twentieth century economists and others would not talk about this present american economy as a for your comment and the fed is the this is the manipulator there's even something that they're called the plunge protection team composed of people from the fed and the treasury and other government agencies so you can prevent the stock market from ever going down and that as you point out is one of the key mandates the real mandates not the phony mandates of the of the central bank to keep the stock market up and what will be a q.e. another q.e. there will be if they feel the need they needed to keep the stock market up or for that matter the european stock markets because we know the fed has already poor a huge amount of money too. below the big banks in europe and the bailout the e.u. and the and the euro so is this going to happen probably there's going to be much

more money going there the e.c.b. is going to be printing like mad they've already we're in a never seen in the history of the human race this kind of monetary expansion how it ends i'm afraid we know it doesn't and happily in the meantime just all kinds of lies coming out of the fed really we can't believe anything the beige book says both are ok i do want to hold you right there can because i want to break here's what you said the page numbers we're going to leave the page not ok to save numbers that the only takeaway from the beige book it's an interesting point you make that we shouldn't be listening to the fed official mandate about inflation or unemployment or whatever they're saying there but just look at what the stock market's doing maybe that's going to be ticking but i want to get to what you were talking about with europe because we have seen europe really follow suit with kind of the federal reserve game plans as far as injecting liquidity into the economy and we saw that u.c.b. do that pumping more than a trillion dollars of liquidity into europe and lo and behold mr rockwell it never works we said see the debt crisis being an issue again now with spain so people are

freaking out again and you have a european central bank officials saying hey you know we still have tools in our arsenal we could still borrow more filled by more eurozone debt so this continues it seems like it's going to continue endlessly you said and it isn't pretty i want to know what is engaged even look like first of all none of this is being done for the average jose right i mean it's being done for the big banks the big investment houses goldman sachs in effect appointed the the new prime minister of italy and of greece these go through guys came out of goldman sachs with these big international banking institutions that are calling the shots and boots with the governments and you know this proposal e a very desperate situation we're going to end up with we're going to end up with much more inflation prices going up at a tremendous rate and then they're probably going to put on. price controls they don't need wage controls because nobody's wages are going up but they will put on price controls and that's like the worst of all possible worlds and then combined

with what only weimar germany did where you have the central banks directly monetizing the government debt government prints up the debt central bank buys that quote unquote and then it was newly printed money and that that's really that's the road to tradition from an economic spectrum so you think this island of hyperinflation well either on hyperinflation or disguised you know suppressed inflation but via price controls authoritarian states always put on price controls when it when political troubles are being caused by rising prices and it was they blame the business people they blame workers they blame the consumers blame anybody but themselves so i think probably i'm sort of say i think actually suppressed inflation with price controls which means just total economic disaster far more poverty declining standards of living for everybody except those at the very top of warren buffett's they'll do fine in case you're worried about warner's getting his

next pizza but the rest of us are going to be massively harmed we already have been hurt or whatever your merican working families income hasn't gone up in real terms since richard nixon close the gold went down in a very long bad period and begin to break your neck and back in the seventy's we've got wage and price controls and are there any takeaways there that we need to be looking at where they were the republicans just today an example don't hesitate to put on those kinds of patella tarion to the tele tearing controls and nixon did it just by executive order you didn't even bother to ask the congress probably the congress would have gone along but you didn't even bother you just act like a dictator just like obama and george w. bush and all the rest of these guys they just issued the edict and say let it be so just like a pharaoh or or an absolute monarch so that's the way they would do it we face possible capital controls. all kinds and all kinds of other dramatically. worse if we can imagine that regulations controls than those that exist at the present time that will impoverished americans impoverished regular people in europe regular

americans here benefit the government's benefits the big banks benefit. all of our . you mr nixon and that you compared him to a current president so is this any worse or is this just them the same thing the same way that's always been well it's worse than in civil liberties terms i would say i mean they were the average american is far less privacy for example than under nixon but nixon was you know it paving stone on this path in a very important one he did a lot of tremendous expansion of the executive branch which was always the most danger to a society more so than the legislature or the courts so nixon was it was important things were better or better under nixon in terms of civil liberties just as the government had a grab as much power as they have today so it gets you know as a friend of mine once said sooner or later every president make sure to stay out there for his predecessor interesting thought this continuing on with the fed we do see another similarity between the us and europe and not the empacher housing real

estate loans bad ones are crushing spanish banks right now we obviously saw the toll of that in the united states but lo and behold now there are reports coming back out that some banks started selling back in two thousand prime lending again j.p. morgan and b.c. being a couple that were named in a record i saw today does this show that the system is still incapable of adequately pricing risk because the fed continues to fix interest rates and manipulate the money supply so it's all just phony baloney i mean the whole housing market because of the fannie and freddie and the fed itself and g m a and all these various agencies that. are involved either peripherally or directly in the real estate market. because. because a horrendous amount of trouble market prices are not clear at all these guys used to tell us about they want to. portable housing when all it turns out affordable housing is a terrible danger but if those prices are well no we don't we need to look at the

market clear we need to let the prices fall but more and more people can buy houses than people who are getting these subprime subsidies would be able to i maybe actually buy a house or a condo. in a market condition but they fear that and they want to believe that some of prosperity comes out of the nonsensical idea that housing should go up in value every year no matter what else as hell are happening in the economy your house should be worth more well you know that only happened because of immense government intervention and i think there is we are going to see some revival in housing just because they've created a cell it was point so and manipulated boom well all this new inflation so some things are going to go up they're keeping the stock market up for the most part so they are there so you know housing in some areas is going to go up and i don't think it's a long term play because i think when things blow up housing is going to go right back down and really really that's a good thing even though all the manipulation is horrible lot of people go to her

practice craft and true trip by all this stuff so it's better for the economy as a whole and social justice without matter that housing prices fall let's let the chips fall where they may let's say well in some strange reason bob and i actually have some natural recovery there and mr rockwell i want to keep you on we just have to go to a quick break when we come back i want to talk about buffett you drop his name a couple times i asked and follow up there i will have more with you rockwell author and chairman of the ludwig money since institute and still ahead student loan debt is fifty trillion dollar mark and instead of treading water to keep up with the debts california scenes like the universe need to dive into their future deep pockets instead will give you our three cents on their proposal but first your closing market. thanks.

if you just put a picture of me when i was like nine years old i like to tell the truth. i confess and i am a total get of friends that i love rap and hip hop is second and pretty. but it was kind of the jester day. i'm very proud of the all the belgians here has played. the game. you know sometimes you see a story and it seems so silly you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything is ok if you don't i'm sorry welcome to the big picture of.

what drives the world the fear mongering used by politicians who makes decisions come to dribble. who can you trust no one. is you know deal with the global machinery see where are we heading state controlled capitalism is called sackfuls when nobody dares to ask we do our t. question more. welcome back switching gears to the u.s. budget deficit president obama is outputting the buffett rule we've seen a few days in a row now really make that case with his plan for

a thirty percent minimum tax on millionaires sounds compelling to people who are maybe worried about people paying their fair share everybody getting kind of the same level playing field that turns out it will actually reduce the deficit much just forty six point seven billion dollars in revenues it would raise over the next decade ok the u.s. runs more than a trillion dollar a year budget deficit so even when obama excuse me even though obama in his state of the union speech did business as a deficit reducing now even the white house admits it was never the plan to bring down the deficit and get the debt under control and now they're emphasizing fairness so what is this really about we've spoken before about warren buffett possible crony capitalist goals but what is really kind of the bigger picture here lou rockwell i want to bring him back any term in the love of bunnies institute and author of the left right and the states and mr rockwell before the break you were bringing up warren buffett a couple times i want to ask as far as the buffett rule overall and the fact that

it won't really bring down the deficit or reduce the u.s. debt what it's really about just politics well first of all. we always think of the taxation as being shorthand for wealth structure so they want more wealth destruction in the economy so i would say no but here's what the buffett rule is all about it benefits the all the gore people like warren buffett by crushing the rising young entrepreneurs that is the main purpose of the buffett rule it's a class rule not against the feds but by the book against people who would be there their competitors but oligarchs tend to hate and fear anybody rising up they want to prevent it so it's a lab and then of course there's also way and the illogical role for the obama administration in saying no we're fair we're going to tax those who are. people who are producing goods and services for society and benefiting the human race we're going to we're going to kick him in the teeth so there are people who like that so

that helps a certain of obama's base but i believe the real reason is again it's the pro oligarchy rule it's a terrible thing it's an evil thing but you know warren buffett was pretty much gets what he wants he's a very important guy i remember when nine eleven when george bush was flown all around the country by the air force and they put him in a secret multistory underground bunker in the brassica with is the safest place to keep them and he gets down there who's the one other guy in the bunker it's warren buffett so warren buffett a very significant figure in the american state in the american fascist economy unfortunately tends to get what he wants so i guess obama's going to keep pushing this so let me be clear you think that warren buffett noted ation is to watch competition from people yes they are the ones off of the road and how did this accomplish that well because it taxes you doesn't tax doesn't go after the warren buffet taxes which is the capital gains tax and i'm not for doing that but of

course it doesn't go after that it goes after in the income tax of people making a million dollars while the people are making a million dollars a year are either very successful professionals but for the most part they're young business people who are building their businesses starting to create something that might actually in the free market become a massive enterprise and of great benefit they want to crush and he wants to crush that he wants to stop that so the people he's targeting not so much the professionals it's the young entrepreneurs who are you want to prevent from becoming big entrepreneurs and therefore. affecting his power and it's not only it's because economic power which of course he has a lot of economic or some of which is legitimate but it's this political power where he calls up and you know he is one of very few people to have the president's direct phone call the president any time day or night. i pretty much give him instructions because he doesn't so it phrased that way but that's in effect what it is so he you know he wants that's that's what this is so way to help you thanks.

kristen help me help warren buffet in the next administration help obama get reelected by promoting envy the great evil the bentley but it also helps warren buffett again by crushing his concern is his a potential competitors and you wouldn't think these guys these guys care about but they do they hate and fear competition again especially coming from people rising up in new areas new industries new kinds of businesses the government is not already controlling and crushing and threatening their position just from a from a status and from an economic standpoint similar you see one state before we go we just have a minute but it never really did and proposing for higher taxes also on capital gains and investment income like the super rich make would that change your mind about things are you know because i think people's i think people's capital gains i think all these taxes are far too high on the grid for a while and we want people to invest we want people to make capital gains so no that wouldn't do it at all i would just like to see warren buffett cut loose from

the from the safety net of the state and let him go on his own and if you can make money legitimately more power to him but not not to do it at the expense of the rest of the people through the government punishing us well mr i appreciate your insight there average have to leave it there for today that was. chairman of lot of the funny things institute. all right let's wrap it up with loose change i have dimitri and shannon here and we are revisiting a story that now is relevant again we told you a while back about a whistleblower who was awarded eighteen million dollars for discovering robo

signing on foreclosures including her own and there is a reason banks should be aware take a look. what the bank may not have known. is a lawyer and fraud investigator with a specialty in forged documents she splits time she's at it again thing that bank of america has sued itself for foreclosure eleven times since late march in the march twenty ninth filing bank of america is seeking to foreclose on a condominium and named the condo owner and bank of america as defendants in this suit now there was some commentary on the blog that this was on the huffington post saying this is proper because big of america was the second mortgage issuer so they should be included on the suit to me though this just shows the absurdity of the foreclosure crisis and how big banks have gone that literally they're naming themselves and sued because they have issued some new loans in so many different

ways or some of this isn't like some sort of accounting fraud again because the boats are so good clever because i've been i've been waiting for this because this happened with the lawyers there because they're going to be so many lawyers in the system they were made of suing each other so now i think this is potentially could my fingers crossed an opportunity because the bank is sort of suing itself or going for itself and eating into its own profits and maybe this could be a way to kind of collapse the way stars collapse of the black holes yes those who collapse into themselves and we could be spared of all the the indignities that come with this disgusting backing senator will and they also say that historically empires actually crumble from within you know they're having their imperial stretch but then they don't take care of people at home it starts to crumble from within this is the same kind of things maybe we could see the banks the banking empires the too big to fail guys start to crumble from within ok let's move on and get another hot button issue student loan debt we talk about it a bunch here is ron paul breaking down why he doesn't think big government loans that sort of thing have worked. but the policy of student loans is

a total failure i mean a trillion dollars a day. x. we're going to be our carry education and costs have skyrocketed because of inflation. well students in california have a proposal to deal with this rather than taking on debt they want to sell equity in their future earnings so according to the economist public universities in california would take five percent of the student salary the first twenty years following graduation that's very and comes between thirty thousand and two hundred thousand dollars so students who make more money after graduation will subsidize lower earning peers i think this is pretty innovative but it is more fragile was agree and it's quite frankly stupid part of why you would tell you would then at least in the fall you could lose the fault but this is this is you just said there bankruptcy was did. well ok but you're supposed to be able to i mean this is like

some new thing but that's the catch with student loan debt i don't believe you can however here's my point my point is that this actually was the point where it's by the very nature of the of the issue of being used in kind of the fold because they're taking ownership of you of your future income stream they're actually literally owning you through equity so this is actually the next step of feudalism it's not just owning you through debt it's like our own you and then the. i disagree it's actually more merit based because it's based on the actual job that that school has allowed you to get and then you start getting paid on your investment in that student so i think it would incentivize school students training that results in jobs or this is crazy what happened like old fashioned i'm going to pay we'll tell you we're going to prices are too high what exactly was it wasn't become their own was in the canal and this is the real world we will not going to happen here but they will go to charge such high fees because of student loans yet because of this gigantic amount of right that's giving better giving students loans but for kids who grew they came from the real world because your family and i fear

you ideologically but we're dealing with what is reality right now and as far as the current reality we live in this idea sound a little more whose job that are and then getting into giant debt shannon what do you think i'm not too sure that universities are going to make it. on of money off of it when there are students who are in the more liberal arts majors go out and it's real world they're not really making as much money than the university maybe closed down that apartment was going to say i don't know all but almost sure if you have a lot of money with a few students public ok all right all you guys are missing that this is another revenue restraint for wall street this is a scam ok this is absurd we deserve to have normal prices because people normal prices then we can talk about i.p.o.'s reverse i.p.o. stock usually it's pretty it's pretty good then students can they didn't see their parents if they did well raising them and they see a benefit and here's this lauren i don't know i've gotten lost i lost lauren job

now i hear it's only have time for thanks for tuning in don't forget to follow me on twitter lauren lyster it will be back on the show at you tube dot com slash capital account for everyone here thanks for watching and have afghans have taken. if you. couldn't take three. charges. me three. three stooges three. gold sleeve long live video for your media project free radio gondar t.v. dot com. the truth is that so much of that isn't anyone to see these people are very nice things and so i think this is one way to describe chinese

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