i want to thank robbert van batenburg and lincoln ellis. the u.s. senate has passed a budget and we will tell you what it means next. ♪ >> the u.s. senate has passed the most recent budget bill which will ease about $63 billion worth of automatic spending cuts. it is on its way to the desk of president obama. i'm joined by phil mattingly, our white house correspondent, and also maya macguineas, the president of the nonpartisan committee for a responsible federal budget. it is also cochaired by michael bloomberg. he is the founder and majority owner and majority holder of bloomberg lp. what happens next? >> the significance is the fact that nine republicans voted with senate democrats to clear this. this was a bipartisan budget deal, about 63 billion dollars in relief for the sequester cuts. they are able to come to a bipartisan consensus. house republicans pass with a large majority last week. this matters. anyway you look at it, anytime you can get bipartisanship in in a very partisan town right now, this is considered a positive thing and it takes

yes, the stocks continued to perform well throughout that stage. >> robbert van batenburg, do you agree>> the problem that i have with the monetary policy is that very few people have articulated that there is enormous unattended costs involved. >> that says what? >> two things. why is there such low inflation right now? the reason why there was low inflation is because the fed has been going on asset prices to the point they have not settled back to their proper balance between supply and demand. the average american is getting squeezed because of high asset prices. properties or commodities. started, ben bernanke was at $35 a barrel. ever since he embarked on qe1, 2, 3, it has been around $100. that is a half $1 trillion tax on the american public per year. >> there are two things. there is inflation and an increase in the price of assets. >> that is why we are actually having deflation. the other unattended consequence is that it is the biggest one of them all which blows of the unfunded liability of the entitlement programs in the u.s.. $4y hold collectively trillion in treasuries a