life in d.c. greg house internet activist also c.e.o. of the local f.b.o. company thanks so much. and that will do it for now but for more on the stories we covered go to youtube dot com slash r g america or are you dot com slash usa thanks for watching. it's. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. it is your headlines for a full eleventh two thousand and twelve here we go again with debt troubles brewing

in spain a european central banker is triggering talk of an e.c.v. intervention so now people are speculating about another bond 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 that note 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 agree conversation we'll 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 bank of america doing itself is it how big are too big to fail banks have gone that this is what we're seeing we'll talk about his latest apparent absurdity of the foreclosure mess as a continued let's get to today's capital account.

central banks in the spotlight of 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 walker said spanish market conditions are not justified and talked about the tools the e.c.v. still has place in its arsenal to buy euro zone debt ok to securities market

program the s. and p. is what he referred to today and in the u.s. eyes are on the federal reserve as the fed beige book came out today and reports that people were looking at that for any signs of weakness you could point to calls for q e three a pound 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 beds 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 various durance hedge funds collapsed in the fed dropped 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 tell it came in hey look the market still falling there then the lehman brothers bankruptcy

september of two thousand and eight the interest rates to zero and we've seen them stay there as we all go 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 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 market starts to go up it keeps going up as q e two in fact is announced and does in fact happen and it continues to go what 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 so this could make out the fed with bernanke you at the helm is trying to prop up the stock market ok is that the goal it makes you wonder who the bad is really serving and while we're on the intentions of government officials president obama continued on his buffett

rule blitzkrieg today take a look you've heard the. from warren buffett there's a lower tax rate than a secretary because he's the one who's been pointing that out and saying we should search the executives who are with me here very 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 what do you bring them back with fifteen grand a plate fundraiser last night is this the perk they got a 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 he's chairman of the ludwig bonnie'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 just to get started you know we've

actually backed off the fed her a little bit just because we've been focusing on some other frauds going on in the financial system more broadly but you come back and it's still the same thing going on where the fed 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 as it not and planning and investing and betting on what the fed will or want to do and one of will happen so does this just go to show mr rockwell they're worried kind about post-capitalist days where policymakers are calling all the shots these days well sure i mean this is this is not a fruit column is it certain people a nineteenth century most of the twentieth century economists and others would not talk about this present american economy as a pretty comment and the fed is the manipulator is he going to something that they call 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 in the real mandates not the phony mandates of the central bank to keep the stock market up and will there be a q.e. another q.e. there will be if they feel the need they need to keep the stock market or for that matter the european stock markets because we know the fed has already poor a huge amount of money to. bailout the big banks in europe and to bail out 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 a pretty we know it doesn't end happily in the meantime just all kinds of lies coming out of the fed really we can't believe anything the beige book says ok i do want to hold you right there it's because i want to bring it in others what you think the page numbers we're going to leave the page and i look at the face numbers

that can only take away from the base book it's an interesting point you make that we shouldn't be listening to defense official mandate about inflation or unemployment or whatever they're saying there let's just look at what the stock market's doing maybe that's going to be the cue 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 you see the do that pumping more that i trillion dollars of liquidity into europe and low 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 the european central bank officials saying hey you know we still have tools in our arsenal we could still borrow more still buy more eurozone debt so this continues it seems like it's going to continue endlessly he says and it isn't pretty i want to know what is the end game even look like well first of all none of this is being done for the average jose right i'm in spain 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 both the 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 it's probably 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 they're only weimar germany did where you have the central banks directly monetizing the government debt government prints up the debt central bank buys the quote unquote and does it with newly printed money and that that's really the road to perdition from an economic standpoint so you think that's all and then hyperinflation well either on hyperinflation or disguised you know suppressed inflation but by a price controls for a carry in states always put on price controls when political troubles are being

caused by rising prices and it was they blame the business people that blame workers they blame the consumer is going to go to good but themselves so i think probably i'm sort of say i think actually suppressed inflation with price controls which means that just total economic disaster far more poverty declining standards of living for everybody except those at the very top of warren buffet's where they'll do fine because you're worried about where warren is getting his next pizza but the rest of us are going to be massively harmed we already have been burned or whatever to american working families income hasn't gone up in real terms since richard nixon closed the goal went in a very long bad period and begin to break your neck and back in the seventy's we thought wage and price controls and are there any takeaways there that we need to be looking at well they were the republicans just for today an example don't hesitate to put on those kinds of patella tarion telecare in controls and nixon did it just like executive order he didn't even bother to ask the congress probably the

congress would have gone along but he 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 issue the edict and say let it be so it's 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 a regulation to control those that exist at the present time the will of poverty americans impoverished regular people in europe regular americans here benefit the government's benefits the big banks benefit. dollars are like. well you missed an expense and that you compared him to the current president so is this any worse or is it just been the same thing and same way that's always been well it's worse than in civil liberties terms that would mean they were the average american is far less privacy for example than under nixon but nixon was as you know a paving stone on this path and 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 was bored but things were better or better under nixon in terms of civil liberties just the government to 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 the stealthier for his predecessor interesting thought just continuing on with the fed we do see another similarity between the us and europe and not the impact of 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 are tiptoeing back into thug prime lending again j.p. morgan and eight b.c. being a couple that were named in a report i saw today does this show that the system is still incapable of adequately pricing risk because the fed continues to stick 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 m g may 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 call us about they want to. housing when all it turns out affordable housing is a terrible danger but if those prices are well go we don't we need to let the market clear we need to let the prices fall then more and more people could buy houses then people who are getting these subprime subsidies would be able to 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 real nonsensical idea that housing should go up in value every year no matter what else as a whole 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 sell out was point so they manipulated boom and 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 housing in some areas is going to go up but i don't think it's a long term going 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 got hurt tracked traps and prove tricked by all this stuff so it's better for the economy as a whole and social justice for that matter that housing prices fall let's let the chips fall where they may let so i don't think raising a lot and actually have some natural recovery there 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 have some follow up there i will have more with new rockwell author and chairman of the ludwig bunny institute and still ahead student loan debt is hit the trillion dollar mark and instead of trading daughter to keep up with the

debts california scenes like the universe need to dive into very huge your deep pockets instead will give you our three cents on their proposal at first your closing market. if you just put a picture of me when i was like nine years old i'm going to tell the truth. i confess and i am in total get over friends that i love brad because he is a liar and hurt. that he was kind of the jester.

i'm very proud of the role with it's played. oh. you know sometimes you see a story and it seems so you think you understand it and then a glimpse something else here sees some other part of it and realize that everything is ok if you don't i'm charged was a big issue. see . what drives the world the fear mongering used by politicians who makes decisions comfortable breakthrough made who can you trust no one who is in view with a global missionary see where we had a state controlled capitalism is called satchels when nobody dares to

ask we do our t. question more. welcome back switching gears to the u.s. budget deficit president obama is out fishing the buffett rule we've seen a few days in a row now really make a case that says 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 but turns out it won't 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 bulls but what is really kind of the bigger picture here lou rockwell i want to bring him back any chairman to love the bunny says institute an author of the last write in the states and the toronto before the break you are bringing out warren buffett a couple times i want to ask her is the buffett rule over all and the fact that it won't really bring down the deficit or reduce the u.s. debt but i think it's really about just politics well first of all. we always think of the taxation as being a shorthand for wealth structure so if you want more wealth destruction in the economy 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 busses but by the busses against the people who would

be there their competitors but all of our extended heat and fear anybody rising up they want to prevent it so it's a lab and then of course there's also way the illogical role for the obama administration in saying 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 alabama's base but i believe the real reason is again it's a 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 this the safest place to keep them and he gets down there who's the one other guy in the bunker warren

buffett so we're both a very significant figure in the american state in the american fascist economy and fortunately he 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 motivation is to watch competition from people are the one topic of the road and how they did that complex that well because the taxes it doesn't tax doesn't go after the warren buffett taxes which is the capital gains tax and i'm not for doing that. doesn't go after that it goes after in the income tax of people making a million dollars or the people who 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 a free market become a massive enterprise and a great benefit they want to crush if you want to crush that he wants to stop that so the people he's targeting the most the professionals and the young entrepreneurs who are he wants to prevent from becoming think 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 power some of which is legitimate but it's his political power when he calls up and you know he is one of very few people to have the president's direct phone to call the president any time day or night. i pretty much give him instructions because it doesn't start phrase 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 obama you thinks which of course help him help warren buffet in the next administration help obama get reelected by promoting envy the great evil of unfairly but it also helps warren buffett again by crushing his country because he is a potential competitors and you wouldn't think these guys these guys care about what 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 but before we go we just have and then if it did not it will get and proposing for higher taxes also on capital gains and investment income like the super rich make that change your mind about things or you don't know because i think people's i think people's capital gains i think all these taxes are far too high for tomorrow 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 i appreciate your insight there ever going to leave it there for today that was there and sharon i'm glad the funny thing to 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's a reason banks should be aware take a look. what the bank may not have known. is a warrior and fraud investigator with a specialty in forged documents she split time she's at it again thing if they come america has suit 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 in the suit to me though this just shows the absurdity of the poor closure crisis and how big banks have gone that literally they're naming themselves and sued because they have issued so many loans in so many different ways this isn't like some sort of accounting fraud again because you got to so good clever at this i've been i've been waiting for this because this happened with the lawyers or because they're going to be so many lawyers in the system they were suing each other so now i think this is potentially put my fingers crossed an opportunity because the bank has start suing itself going out. and getting its own profits and maybe this could be a way to kind of collapse the way stars collapse in the black holes yes these who collapse into themselves and we could be spared of all the the indignities that

come with this this crossing back and center well 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 and start to crumble from within this is the same kind of things maybe we could see the banks the banking empires the big bail guys start to crumble from within ok let's move on yet another hot button issue student loan debt we've talked about it a bunch here's ron paul breaking down why he doesn't think big government loans that sort of thing have worked. if the policy of student loans is a total failure i mean a trillion dollars a day i. don't think we're going to be on our 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 incomes between thirty thousand and two hundred thousand dollars those students who make more money after graduation will subsidize lower earning peers i think this is pretty innovative oh there's more financial whiz agree and it's quite frankly stupid all right part of why you would tell you because with them at least in the default you're going to lose the fault but this is this is you just said earlier bankruptcy was student loan debts 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 or here's my point my point is that this actually was the point where it's by the very nature of the abuse from being used because the fault because they're taking ownership of you all of your future income stream you're actually literally owning you through equity so this is actually the next level feudalism it's not just owning you through that it's actually only 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 sometimes to get students training that results in jobs or this is crazy what are they like old fashioned i'm going to play well for you are going to prices are too high when they take their own lives in the canal and this is the real world will not going to happen here but. the charge such high fees because of student loans yet because you have this gigantic amount of right that's giving very giving students loans the bridge for the group because we're all going to 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 these days are that are and then getting into giant debt shannon what you think i'm not too sure is 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 on that real world they're not really making as much money then the university maybe

close down that apartment what going to go around all but one is going to have a lot of money when they take your student 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 didn't have normal prices because people normal prices then we could talk about i.p.o.'s reports i.p.o. stock issuance. it's been hearing that students can pay dividends to their parents if they did well raising them and they see a benefit and here's the floor i don't argue my last day we lost our own job none of us are it's only on time for thanks for tuning in don't forget to follow me on twitter lauren lyster the back on the show it you tube dot com slash capital account and from everyone here thanks for watching and have afghans happy. 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 realize that everything you thought you knew you don't. charge was a big check.