like adults because our main responsibility as adults is to make sure our kids have a good future so we have to reduce the growth rate of the benefits to the elderly. and that requires. cutting the growth you know being much more careful about how much we spend on health care because it's the health care benefits have been growing at twice the growth rate of per capita g.d.p. for forty years these are the government health care benefits for the elderly so it can't continue because it's going to kill the country so we have a huge problem it's being hidden it's not being described and discussed disclosed and we're in very bad shape you just mentioned that you need to take care of the future generations clash of generations is a term used to describe what future awaits for american children paying up the deaths of their fathers but the united states when you look at it really has lived on death ever since world war two and increasingly so in the past thirty years and

they have somehow managed stop to collapse you know and. they have no problem getting new debt why do you think that the new generation won't be able to manage it well over time the official debt will become bigger and bigger as this year of g.d.p. and at some point the chinese and other people will stop. lending us money and our interest rates will go up dramatically we'll have a bond market collapse and at that point. the deficit will get even bigger the debt the official debt will came in late even more rapidly and our government is also printing a lot of money to pay for these bills so inflation can also take off very quickly so i see the problems and they may not be in thirty years they may be in five years or two years that the chinese and other people start to understand how bad the

situation is and then we'll be in a situation in greece where people won't lend us money. and then we will have to make big cuts and everybody will be injured. so you mention china and i know that china and japan are they top the list of america's lenders in ways or one trillion should they just get used to the idea they're not getting their money back i mean they can't just come out and say hey i want part of the american g.d.p. . if i were anybody whether i was chinese or japanese or russian i would not be buying thirty year us government treasury bonds that are yielding three and a half percent or something right now because the prospects for us to print we have printed so much money since two thousand and seven it's really unbelievable we have the federal reserve has tripled what's called the base money the money that basic money supply it's called the monetary base it's actually gone from about eight

hundred billion dollars to about three trillion dollars now and so almost more than tripled so we have a basis in place for a more than tripling of the price level right now we have created the the foundation for hyperinflation already and the baby boomers have yet to retire. so right now twelve percent of all the federal spending is based is being financed paid for by just printing new dollars. that's what's going on so we're acting very much like a developing country in terms of our actual finances and i've been. concerned about this and writing about it and speaking about it for since the late eighty's but another economists have as well and paul and also some politicians but it's

getting worse it's not like anybody is actually. looking carefully at these numbers the politicians are looking at the official dead numbers and not really discussing the magnitude of what's coming a lot of people who think like you who are critical of the current american financial system have come out in the street and they occupy wall street movement and they voiced their concerns and their protests do you think a movement like this is actually capable or able to solve real issues there is it just a red herring well occupy wall street was concerned about inequality and they were concerned about what wall street was actually doing and i think we need to gradually change our financial system because we have two big problems and this is true in every country including russia. the traditional banking system the model is one of very high leverage banks more a lot of money promise to repay and then there's opacity they may take the money

and they do something with it but they don't tell you what they're doing with it so people get very concerned at some points about whether the banks actually can repay and then you can have runs on the bank just overnight so it's a very unstable situation when you promise people things and then you don't show what you're doing with their money and then and that's what happened in. lehman brothers and bear stearns and. merrill lynch and all these companies that won one under one after the other everybody started worrying because they couldn't see the assets so what we need to do is. get rid of this faith based banking we need to have. no leverage and we have to have transparency the government has to disclose what the assets are the government has to do verification and disclosure we should have a government agency verify that somebody has mortgage is actually. a reasonable

mortgage that that person has a job that person has an income that person's house which is collateral to the mortgage actually has this value so we should not have any liar loans and then we should also have all the. the banks be become what are called mutual funds which gesture sell shares. to these funds so that they've taken all the money on an equity basis they don't borrow money they just sell shares of stock the money comes in and then they buy these disclosed assets the mortgages for example and then if you have equity based finance and if the mortgages don't work out somebody doesn't repay the shareholders take a loss but the financial intermediary which is a mutual fund never fails and never goes bankrupt so you have a banking system that can never fail if it's made out of equity finance mutual

funds who are buying transparent fully disclosed assets that's what we need. and that's what they know the protesters a wall street didn't know what they wanted but this is really what they need what they wanted now what we need is also protesters among the young about their fiscal treatment that's a different thing that's the thing that fiscal gaffe the fiscal cliff sorry cliff and the possibility of an. erica defaulting that we hear a lot around it's symptomatic agony or is it maybe artificial political crisis in young people don't fully understand how bad they're being treated in the in the debates in the entire campaign not a single not one of these two candidates talked about the magnitude of the problem president obama said that our search and security system our basic government pension system has a small problem that needs to be tweaked is what he said well if you actually look at the system at the trustees report the thing is thirty one percent under financed

so it's not a small problem according even to the actuaries it's a huge problem. so you know he's on a different planet from the reality. romney. felt that we could just lower taxes and get more revenue so he was equally. you know crazy on this. and unfortunately we have children whose futures are at stake here and they're also under a lot of pressure on in other ways because they're competing with a lot of people all over the world and they're also competing with these new start smart machines that are taking people's jobs away so in our country when you go to a grocery store or a drug store the checkout person is a machine there's nobody working there it's just

a machine these days there's actually maybe one person to help you use the machine . and so that's replaced lots of jobs so we have young people. who are are having trouble finding jobs even college graduates are having trouble laurence kotlikoff thank you very much for a very interesting insight you gave us on the ongoing financial crisis and it's great to be with us again my pleasure thank you. very. much juggling just. doing hack work and

you get caught lobbyist money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the documents. keep up a smart look. there is also. another world behind which is how to influence the institutions steer clear of provocations don't answer any question. came into the office and found banners hung around the office and lots of strange faces around someone and said what was happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they want to do a confrontation possibly they wanted me to ring up the police have the police come

in through the mouth. didn't seem to be a good idea to learn the european way with brussels business. kristie it's one person one fault in brussels baseness it's one euro one fault. if. he has. to. see good laboratory to mccurry was able to build a most sophisticated robot which will unfortunately doesn't give a dollar amount anything mission to teach music creation why it should care about

humans and world this is why you should care only. speak your language. or music programs and documentaries and spanish what matters to you breaking news a little tonnage of angola's kid stories. you hear see. all te spanish find out more visit. hold it hold it. hold it hold it hold it hold it hold it hold it hold her mother.

that speak to. her. wish. lists.