g.d.p. numbers all factor in when you look at real g.d.p. there is growth in there as well as if you really want to look at the purchasing power of the money why don't you look at the amount of labor hours because that's what we sell right we sell our labor to earn the dollars to purchase a car or a house or a movie theater ticket all of which have gone up and they always go up in a nominal you know nominally they go up but in terms of the amount of labor required to purchase that good or service it's actually gone down so the purchasing power has not been reduced it is actually gone up that has not done any studies that show this so you completely wrong on that call i'm sorry ok mike let me let congressman i want to that's part of congo and responded i'm like that's a part you think there is not declined well yeah because. the productivity of the american worker goes up we started with picks and shovels and our ants and then we went to animals and then steam and then mechanized farms and automobiles and trucks and everything else is coal pro

g.d.p. numbers from the u.k. if you put stock in them they show the countries rebounding from recession growing by one percent is this growth a reflection of better days to come or is it just the result of one off the lympics summer spending we'll talk let's get to today's capital account. we all know the drill the us has been running trillion dollar budget deficits amounting to more than sixteen trillion dollars in national debt with no plan that the markets have deemed credible to significantly rein in spending let alone balance the budget now c.e.o.'s are trying to act like they want to do something about it they wrote congress asking for a simpson bowles type solution of spending cuts paired with the tax code overhaul eighty of them signed on and there's an argument this over spending cannot go on for ever and that the day of reckoning could be near but then you look at a country like japan one last decade turned into two was the country's government proceeded to rack up debt levels over two hundred percent of g.d.p

g.d.p. tax that's something though that you and i were talking about before the show so what is what you are calling a tax on g.d.p. . well it's rather simple really if you have ten thousand units of production in an economy in ten thousand units of creditor currency and the government comes along and says ok we're going to deficit spend so we're going to put another thousand units into there then the value of all of the units of credit in currency that currently exists go down by that amount so this is exactly identical from a functional standpoint as if the i.r.s. man showed up on down your door. and so give me ten percent of everything you have . unfortunately that would be very unpopular if you were to turn around and tell the american public oh guess what your taxes are not going up ten percent of what you currently pay they're going up by ten percent of your income and the tax on everything that you produce as a company is going up by ten percent of your production and yet that is essentially what's been going on now for the last four years and so when we look at why we haven't seen jo

bucks on your mortgage you can pay three hundred dollars on food or energy that you lose one hundred bucks that's why g.d.p. is stagnant. because you know it's to go nowhere you're on here and you're in the water and you're paddling in you're going nowhere i think the inflation point would have been made more strongly last year when we had higher inflation and inflation rates in britain anyway have come down in the last year so i don't think that you in terms of the cost of living i don't think your case is a strong as it was would have been a year ago but i get the general point to. in a difficult situation there's no doubt about that i think people are exposed to too much debt and as i say i wish that people you know had savings but you know it's a political number. majority of people in britain. ok first of all thanks for coming on the show realize that you know it's not the maybe the friendliest environment it's cool cause of course thanks for being on the kaiser who are very much all right that's going to do it for this edition of the kaiser report me max kaiser and stacy herbert i want to thank my gu

tensions and we're going to strasburg sorry there's the biggest crowd i ever heard sorry you talk about one percent of g.d.p. . per cent i'm very sorry and that's nothing so i represent the only directly elected chamber in europe that's the european parliament i am in favor of it's not a real model you know there's nothing it's not a real parliament i know this isn't form of government it doesn't only legislation that comes from the commission which is on the sort of sorry we do elect to shop we we do stop the commission if they do mistakes but let me tell you that. because you said we have to be honest the time has come where we have to separate the ones who want a closed cooperating european union and the ones who want to stay out and the united kingdom u.k. definitely made some decisions historical decisions the last three summits where it says we want to stay out please forgive me but the rest of the eurozone will continue even the greeks. i have double citizenship i sit in front of you as a german m.e.p. but also as a greek citizen because i'm also greek and i can tell you the historical decision of th

governor romney's plan to gradually increase defense spending to 4% of gross domestic product, g.d.p. if you do that over a four-year presidential term, that will cost $2 trillion more than what the president has proposed sending on the department of defense. so that part is true. >> warner: but he said the president's own defense spending record is more complicated to assess. >> now, the president also said that he has increased his defense budget every year since he's been in office. that's not exactly right. the president has proposed increases in defense spending each year. but in 2011 and in 2012 congress cut what the president proposed. each year they cut more than $20 billion out of the defense budget request. so as a result when you adjust for inflation, defense spending has actually goneee down in the past two years. >> warner: as part of that argument, the candidates also clashed over the navy. in one of the debates more talked about exchanges. >> our navy is smaller now than any time since 1917. the navy said they needed 313 ships to carry out their mission. we're down to 285. tha

sixty seventy years and you aggregate republican administrations and democratic administrations you had g.d.p. growth far more substantial in democratic administrations than republican administrations popular is that simple fact of the matter you also have chief economist grow government has to grow in proportion and it's going to do its job but so there has to this i want to go there because i know that the growth of a lot of critics are going to be those as laid bare right here they are for the growth in government as well and there really is a little side to this debate there is the individual versus the collective and so you see right now what a joke it is this debate that we're having in this country right now because no matter who wins are you are you are you asserting that there is no such thing as society this is site is merely a collection of that's correct because the process is that is such a system so certainly they confuse the distinction between government society is like saying there's no such thing as a series just things like just as i don't want government education doesn't

and it's one reason we're seeing so many traditional relationships break down whether it's you know g.d.p. growth versus yields whether it's stock markets versus yields all these things because they're being so manipulated by the central banks means rational investors real people c.e.o.'s of companies don't look at them and take the same conclusions so it's very hard to create policy that creates jobs when no one believes the underlying data anymore ok jeffrey i think i think it's. very interesting is you know i'm living in the country that used to be the soviet union you mention the soviet union and it seems to me a lot of western economies are either their ideologically driven you know i mean they have this idea about an operation an economic operation they don't care if the patient survives they just have to keep to the procedures oh absolutely i mean they have this dogmatic adherence to a particular ideology and the facts will be selected to fit the support of that theory so it's a travesty i mean we don't have a free market of ideas and especially in economics unfortunately i mean th

are better off than the story that you hear at least with. official g.d.p. statistics and things like that ok and you attribute that to the fact that they've still had a normal economic relationship which many of their neighbors actually telling me here in china especially in those two special yeah it's interesting things to know we will have much more after the break we're switch gears come back to the us talk about some interesting insights here will have chris mayer author and managing editor for capital in crisis in just a minute still ahead bernie he defends his policies at the latest i.m.f. forum in tokyo we'll tell you why developing economies may not approve of the fed chairman's recent action in tonight's loose change but first your closing market numbers. the for. the commission free accreditation free in-store charge is free to make amends free. free studio time free. dumb old free blogs just plug in video for your media projects and free media and dog the r t v dot com. world. science technology innovation all the list of elements from around russ

so i would say at least on the surface they they're better off than the story that you hear at least with. official g.d.p. statistics and things like that ok and you attribute that to the fact that they've still had a normal economic relationship with many of their neighbor actually thailand here in china especially in those two special yeah it's interesting things to know we will have much more after the break we're switch gears come back to the us talk about some interesting insights here will have chris mayer author and managing editor for capital in crisis in just a minute still ahead bernanke he defends his policies at the latest i.m.f. forum in tokyo we'll tell you why developing economies may not approve of the fed chairman's recent action in tonight's loose change but first your closing market numbers. well. it's technology innovations all the developments around russia we've gone. the future covered. i mean so can only a city in europe and the hosts of the twenty fourteen which are the pick a. song see. a. song. a. dog days of. days it. takes a common. theme song it's so true. wealthy british st

are better off than the story that you hear at least with. official g.d.p. statistics and things like that ok and you attribute that to the fact that they've still had a normal economic relationship which many of their neighbor actually telling us about how in those two special it's interesting things to know we will have much more after the break we're switch gears come back to the us talk about some interesting insights here we'll have more chris mayer author and managing editor for capital in crisis in just a minute still ahead bernanke he defends his policies at the latest i.m.f. forum in tokyo we'll tell you why developing economies may not approve of the fed chairman's recent actions in tonight's loose change but first your closing market numbers. here is mitt romney trying to figure out the name of that thing that we americans call a dollar. i'm sorry i'm just a guy who cares an awful lot about you sorrow are a fool you know what kind of mind their terrorist cells in your neighborhood all want to give us a defeat terrorism on limbaugh and the christian

you make of this news we will have an earnings contraction? after two years of quarter after quarter, year-over-year growth, it stops. >>guest: g.d.p. w ing. fortunately we have the housing market coming back, that is what you need --. >>neil: you have no doubt? >>guest: no doubts the housing market, with 401(k)s at four year low and housing starts at a four year high and the consumer confidence is the highest in four years so we will see a rebound but it will not be as fast as we desire. with companies, organic growth is tough so we will see acquisition orientation taking place. >>neil: but to hire more people, to expand plant and equipment the kind of thing you expect and want to see companies to do, at this stage, they are not doing it. why not? >>guest: it is a demand and supply issue. demand is still slower than we want but consumer confidence, still 70 percent of g.d.p. is consumer driven. >>neil: you are not a surrogate and you back the president. do you blame him for any of this? >>guest: no, the trajection is going the right way with unemployment at four-year low. >>neil: but it is not dramatic. >>guest: not dramatic. >>neil

g.d.p. has really contracted. last number was 7%. that number is very suspect. youpolitical uncertainty and congress and white house making no decisions at all. global g.d.p. really contracting. choosing to hold on to cash. if we can get past the fiscal crisis, december 31 deadline, get the white house and congress to come up with a compromise, do i see clearer sailing ahead. for the time being, a lot of unknowns. >> jamie: let me clarify what you are saying. current policies are not working because you say mostly due to federal hiring and federal spending, not jobs for regular folks on main street. no matter who wins, can it can be fixed in four years? >> it definitely can be fixed. first of all clarity, businesses having clarity what the tax brackets, medical insurance for employees. they have trillions, between corporate american and consumer there are trillions of dollars sitting on the sidelines that could come cascading into the economy. energy going forward to really be a game changer. we talked about that in past. really cut costs to manufacturing and last o