and before we get to that new great depression which is obviously a dire scenario that we would hope to avoid is there any particular event that you can point to and say aha this is when capital has them stood no chance beyond this point and this was welcome credit to them with no turning back was it the end of bretton woods was it even further back the creation of the federal reserve or even before that and around the civil war era when the national banking system was established towards that end of civil war. all good points but i would say the beginning of the end was world war one because in world war one nine hundred fourteen all the european countries went off the gold standard because they didn't have enough gold to fight the war and they started issuing a lot of paper money and government to fight the war and all of the debt and paper money led to a worldwide credit bubble that we call the roaring twenty's but in one nine hundred thirty the credit couldn't be repaid in the depression started but also all those governments spent so much money during the war that it was governm

the great depression was photo. the farm security division which turned good photographers into great ones. berkeley photographer dorothy alang. these give you an idea of just how apalling bad the great reh depression was. the best we have, as well as movies, it's difficult to million how it was. we tend to look back through the safety net, which was created by the new deal. it was very difficult for young people to understand a time when there was no social safety net. when you lost your job, within a short period of time, you lost your home, food, everything. you were out on the street and your family broke up. it was an apalling time. one tow which some people would like us to return. here's a guy himself, that's actually a light bounce off of fdr roosevelt. this was his chakra. this was march 4th, 1933. he made the statement and he made it, i didn't understand a long time. the point i was making, people were terrified. because it seemed like the economy had no bottom and the banks were going down and there was n

you know that's sixty percent plus in the great depression and the great depression was to boost it by deflation we haven't experienced on that skiles so the great depression of fifteen years to pay the debt down from the pit reached down to the low levels off of the end of the second world war if we continue doing it the right we're doing now it will take us one of the half decades to get back to the situation we were in knowledge in sixty so what do we need mass bankruptcy if we need to we have to find out what i believe the debt jubilate of being one of the for the private sector yeah you know we have to have got to call a profit but you can actually call quantitative easing for the public now that he's given that names to prove quantitative easing you give the money to the public rather than to the banks but you say you must pay your debt down first if you have that you pay it down if you don't you get a cash injection which benefits. but it reduces the income flow of the banks reduces the power and gets the dick good and otherwise we're on the wrong side of that event horizon we h

in categories, not this bad since the great depression. the top line, i am looking at what these numbers will reveal. poverty is becoming the new american norm. i suspect mr. romney will take those numbers and club or the president with those numbers about poverty. whether not he can do a better job remains to be seen but when these numbers come out, what kind of debate to expect about what these numbers mean for how much poverty has worsened in this country? >> i think you put your finger on one of the key debate points. the aba, people will say this is the new norm. we're doing the best you can but it is not our fault. this is our -- the bigger problem. mitt romney has to get through what president obama -- president kennedy said. the tides lift all boats. that is what lifts people back into opportunity. one of the great challenges for many people, in the african- american community and parts of the democratic party that most care about the poor is if something is clearly not working, at what point do we have the courage to try something

morgan failed and pushed the world into great depression acts richard financially it's the ultimate ultimate moral hazard isn't into k. too big to fail and when wall street loves that ok they really do. no i mean moral hazard is an enormous problem and i think the regulations part of that so obviously if people think banks are regulated and they're perfectly safe then they won't choose to deposit their money or trade with banks and it looking at history like barclays actually founded by quakers and part of the attraction of the bank was that it was highly trustworthy because of the religious affiliation of. owners but going back to william i mean the year zero which is what i was advocating at all this if there was one currency that was a highly politicized centralized construct it's the euro what i'm actually talking he's getting government completely out of banking completely out of currencies and moving to a completely voluntary private system so richard do you believe banks can regulate themselves. yes i do i mean i'm i mean like you think they can do that we have collusion. but i'm talk

failure in that era insider fraud at the most senior level of the banks and led to periodic great depressions with much more frequency the one we see in the modern era so the idea that this is some kind of golden age back during imperialism and colonialism is again bad history you know we've had economic should if there's so much regulation why was why didn't the regulators pick up on this the manipulation of i mean i didn't take up on it if there's overregulation well apparently they mean there were rumors for several years and apparently the regulates is where informed that something dodgy was going on so i mean that's really a question for them but i i think actually makes the point that the idea that regulators and politicians should be entrusted with these issues is a fallacy because they're flawed as well they're equally prone to corruption they simply can't regulates pretty well scared to happen within the financial sector and creates instructions for every single circumstance i think we're really sticking with the basic law and i think probably basically well for example through the c

and the new deal substantially got us out of that great depression it reduced the unemployment rate from about twenty five percent down to about ten percent of the for the start of world war two which finished the but prior to that it had been enormously successful there is no reason why we don't do that today we could have a full employment program by directly creating jobs for basically a much the amount of money that the president spent in the stimulus package of two thousand and nine instead of jumpstarting two to three million jobs which was about what was created then we could actually create sixteen million jobs directly which in turn would create a secondary wave of about eight million jobs get us to twenty five million jobs which is what we need and the difference is that instead of providing tax breaks to large corporations which was the vault of that stimulus package instead we can directly provide jobs at the key. to be level provide national funding but put communities in charge of deciding what jobs they need to become sustainable not only economically socially and als

my point was this is the weakest recovery since the great depression. we have a chart that shows every single recovery since world war ii. you have a president whose policies are not creating jobs but they are dramatically increasing the number of people who are dependent on the government. i think that is a bad thing. i was using the term -- more whites than blacks are on food stamps. do you want a president that focuses on getting people back to work or president that focuses on people becoming dependent and that is a fundamental difference in approaches. tavis: when you were the speaker 15 years ago and bill clinton was the president, you together at least came together on this issue. the so-called welfare to work program. bill clinton was taking a page out of your playbook. "the new york times" did an in- depth study that said that peter edelman was right. i did not agree with this program because of you take away the social safety net, if the economy tanks, there is no room to fall back on. 15 years later, peter edelman was right. the program is su

used in the one nine hundred to get out of the great depression and that's going to get us out this time on fortunately republicans in congress believe austerity is the only way to grow the economy but housing let's see how that fits for size when they've been in power we've seen the we've seen the economy grow. last that when democrats are in power for the first two years of the bomb instructions i just don't think that's i don't that is completely totally that's connected to reality and that's why i said i would not use republicans why are republicans supporting the same stuff they supported when reagan was in the white house when bush was in the white house and that was increasing government spending increasing the size of government and as in hiring more government workers to get out of this because the republican party has got much more conservative than it was in those years there's been a much dumber when it comes to you cannot know that only you could say that there's a you know a different philosophy when it comes to taxes and how we grow the economy now your philosophy ever wor

the law this month since the great depression. -- the longest run since the great depression.rly one out of six americans are in poverty. the worst rate in a generation. moms and dads are strictly to make ends meet. household incomes have dropped more than $4,000 over the past four years. whatever the explanation, but ever the excuse is, this is a record of failure. [applause] president obama and too many like him in washington have refused to make difficult decisions because there are more worried about their next election than they are about the next generation. [applause] we might have been able to get away with that before but not now. we are in a different and dangerous moment. we are running out of time. moreannot afford four years of this. politicians from both parties have made and the promises which will soon become broken promises with painful consequences if we fail to act now. i represent a part of america that includes inner-city, rural areas, suburbs, and factory towns. over the years, i have seen and heard from a lot of families. from a lot of those are running

the big picture in two thousand and eight we were all told that tarp was needed to prevent a great depression instead tarp funds have made the big banks richer and given them an even greater feeling of invincibility so this happened last bill barofsky special edition. of the great also want to understand just how far right and radical the republican party has become its really official republican party platform more on that in tonight's lone liberal rumble and if you are eating something that could kill you when you want to know before you put in your mouth the g.m.o. industry does not want you know what so what secrets are they hiding explain more insights to take. joining me tonight for a special edition of conversations with a great minds as neil barofsky you know was the former special united states treasury department inspector general charged with overseeing the seven hundred billion dollars tarp bailout prior to coming to washington neil was a former united states assistant attorney for the southern district of new york here and a bachelor's degree in economics from the wharton school

why else would a female black child, born during the really great depression of the 1930's in the deep south envision and dream a life so far from her reality? it is that promise of liberty and justice that continues to fuel impossible dreams around the world today, and it is this promise that's kept so many of you working long past the hours for which you are being compensated for. because you are willing to sacrifice for those of us whose dreams depend upon your skills. my family migrated to california because of my uncle ezra. a man with no formal education, but one brave enough to file a lawsuit during the frightening days of the depression. he filed a lawsuit against his employer, a major manufacturer after he was injured on the job. it took years for me to understand his bravery. i'm here because a young white lawyer filed that suit on his behalf. and a mysterious louisiana judge ruled in his favor. all seemingly impossible things for the era. but one day a check for $2,000 did arrive. and i went with my uncle and aunt to berkeley to pay for their house on ashby avenue. i saw the

they struggled through poverty and the great depression, and yet he rose to be admired businessman and public servants. and in november, his son mitt romney, will be elected president of these united states. [applause] in america -- in america, we're all just a generation otwo removed from somebody who made our future the purpose of their lives. america is the story of everyday people who did extraordinary things, a story of woven deep into the fabric of our society. their stories may never be famous, but in the lives they lived, you will find the essence of america's greatness. and to make sure that america is still a place where tomorrow is always better than yesterday, that is what our politics should be about. and that is what we are deciding this election. we decided -- do we want our children to inherit our hopes and dreams? where do we what do you do we want them to inherit our problems? because mitt romney believes if we succeed in changing the direction of our country, howard golden and grandchildren will be the most prosperous generation ever and their achievements will aston

they struggled through poverty and the great depression and yet he rose to be an admired businessman and public servant. and in november, his son, mitt romney, will be elected president of these united states. [ applause ]3 f1 in america, we are all just a generation or two removed from someone who made our future the purpose of their lives. america is the story of everyday people who did extraordinary things, a story woven deep into the fabric of our society. their stories may never be famous, but in the lives they live, you will find the essence of america's greatness. and to make sure that america is still a place where tomorrow is always better than yesterday, that is what our politics should be about. and that is what we are deciding this election. [ applause ] we decide, do we want our children to inherit our hopes and dreams, or do we want them to inherit our problems? because mitt romney believes that if we succeed in changing the direction of our country, our children and grandchildren will be the most prosperous generation ever and their achievements will astonish the world

they struggled through poverty and the great depression.nd yet he rose to be an admired businessman and public servant. and in november, his son, mitt romney, will be elected president of these united states. in america -- in america, we are all just a generation or two removed from someone who made our future the purpose of their lives. america is the story of everyday people who did extraordinary things. a story woven deep into the fabric of our society. their stories may never be famous, but in the lives they live, you will find the essence of america's greatness. and to make sure that america is still a place where tomorrow is always better than yesterday, that is what our politics should be about. and that is what we are deciding this election. we decide do we want our children to inherit our hopes and dreams, or do we want them to inherit our problems? because mitt romney believes that if we succeed in changing the direction of our country, our children and grandchildren will be the most prosperous generation ever, and their achieveme

in this aggregate of the currency supply this is never happened except for the onset of the great depression this is is this is huge alarming news. this is true monetary deflation that we're seeing here ben bernanke he is fighting it but he can't control where all the dollar. he creates where they go and they generally go into some like you said unintended consequences they're going into an unintended place and they'll create a bubble here or a bubble there but they're not going to have the effect that he desires and the only thing that will work is just to allow the free markets to work and to stop having the audacity and arrogance to try and. to think that he knows more than the free market the free market is the sum total of all the transactions going on in the economy he thinks he knows more as and he thinks he can decide what the quantity of currency should be and what the price of currency should be the interest rates that's a lot of arrogance and it just won't work it is a lot of arrogance and i when we get back from a break we'll take a quick one i want to talk to you about when the

under the bush tax cut structure is where we got into the deepest recession in america gets a great depression and on top of that mitt romney has not articulated a clear plan on what he plans how we plan to cut the taxes that we're going to cut taxes i'm going to open up the economy that's all he said no clear plan and then when you ask. which i don't think that's connected to reality and that's why i said it would. they supported when reagan was in the white house when bush was in the white house and that was increasing government spending increasing the size of government as in hiring more government workers to get out of this trip because the republican party has gotten much more conservative than it was in those years there's been a much dumber when it comes to you cannot hope that you could say that there's a you know a different philosophy when it comes to taxes and how we grow the economy now your philosophy ever worked yes i believe it has worked in play places like let's say you go away what is it worth to him as a relation to him place with pinochet when he had a sick day or murderin

now, president obama has labeled this the worst recession since the great depression.uring the campaign. the self-proclaimed, successful policies are not helping because the a.p. is reporting that obama's recovery is the weakest sinceue guessed it -- the great depression. joining me is sandra smith and jedediah billa. gal yup, on creating jobs, 58% disapprove, 37% approve. the economy. 60% disapprove of obam aonly 36%. deficit, 64 disapprove and 30 approve. those numbers, if the economy becomes the number-1 issue, how does obama win? >> rasmussen had a poll that 41% trust republicans more than democrats. it's over taxing and over regulation and epa gone wild. the president's done nothing in the way of energy independents, despite the numbers on drilling which are inaccurate. people are out of work, their families are out of work. they know the prices of goods and services. they don't have any money in their pockets. it is very real. they will vote based on wha is happening in their lives. >> this is why i think the sleazy, slimy smear campaign, obviously, the o-- presi

they struggled through poverty and the great depression and yet he rose to be an admired businessman and public servant. and in and in november his son mitt romney will be elected president of these united states. elected president of these united states. [ cheering and applause ] >> in america we are all just a generation or two removed from someone who made the purpose of our lives. america is the story of everyday people who did extraordinary things, a story woven deep into the fabric of our society. their stories may never be famous, but in the lives they live you will find the essence of america's greatness and to make sure that america is still a place where tomorrow is always better than yesterday, that is what our politics should be about and that is what we are deciding this election. what we are deciding this electi [ cheering and applause ] >> we decide do we want our children to inherit our hopes and dreams or do we want them to inherit our problems because mitt romney beliefs that if we succeed in changing the -- believes that if we succeed in changing the direction of o

never so low since the great depression.se kinds of numbers would indicate that this president is going to get fired. we fire presidents when they have terrible records like this. i think the only thing that gives him a glimmer of hope is very significant media and being in love with him. i think the media is the mother country they created him in the first place. they are having a hard time coming to grips that they created something with no substance. lou: we are starting to see a couple of traditionally liberal news outlets, news organizations , including "the new york times", beginning to report critically of some of the policies of this president. do you see this as an anomaly or perhaps a return to the watchdog role by the left-wing media? >> we can always debate the meaning. i think that there are people, "the new york times" and other places, that probably feel uncomfortable with how far the media went last time. a couple of them admitted that he gets coverage that is way too favorable. you might see a little more br

my i don't pretend to be a scholar of the great depression but my recollection and please correct me if i have any of these details wrong or wrong is that at the time back in the in the early thirty's when the great depression happened most people had five year balloon mortgages that there was so much speculation going on in the twenty's people were just rolling these things over there was a huge land explosion that had gone on land values started in florida back in one thousand twenty six that bubble popped in twenty eight and that one of the one of the things that f.d.r. did was he said ok that's it we're just getting the banks out of this business i mean most of it failed anyway and converting as many of these as possible to thirty year fixed rates which will drop the price so that even somebody who's underwater can still afford their home and basically saved the housing industry in the middle class. correct me if i'm if my details are wrong isn't though that or something like that what should have been pursued instead of what was. well i think that you know the issue of underwate

happening in ben bernanke he's economy there's a great depression happening in the virtual virtual economy dustbowl hit farmville yes maxwell shares were down forty percent on disappointing earnings this is something you did warn about right farmville there's a huge drought in farmville this is a game by. which is a company we've talked about on this show with guests like josh brown the reformed broker or reggie middleton who discussed openly that this was vaporware it's a vaporous company run by vacuous c.e.o. within the realm of a nonexistent business model trading virtual currencies that only had a one way to go as a public offering and that straight into receivership straight into the zero length of goose egg shell but not with a. out the insiders cashing in along the way by letting make those digression that whether exiting a facebook group on the insiders have been cashing out in this classic pump and dump scam but they were aided and abetted by c. and b. c. and barack obama remember he had zuckerberg in his office with his arm around him how about some shares of that i.p.o. now down