whether he was a worse manager then greenspan or if you fired greenspan and put another person in who has a philosophy that blends in with keynesian theory, it won't make a difference. you have to analyze the whole philosophy of the monetary system. you have to reject the system that is literally, the fit and artificial. it is inflationary. this is the problem rather than ben bernanke himself. >> 30 seconds or a question? -- 30 seconds for a question? >> i am ok. >> i let me turn to robin harding. i thought an article that said is notl's you of the fed consistent with of congress. what is your view of his chairmanship of this subcommittee? >> barney frank is right that congressman paul's the use do not think with the rest of congress. the fed has not been criticized much over its recent history. it has been seen as an untouchable force. ron paul has been around for a long time. he is using his decade of seniority. he gets a chance to become a thorn in the side of the fed. that is important given the current situation going on. any real changes in the fed are what we will be watching.

i was critical about greenspan the same way. they adhere to a philosophy i consider incorrect. he was a worst manager than greenspan and put another person that has the philosophy that blends in with fiat money, you have to evaluate the philosophy of the whole system and reject the counterfeit system. and artificial and inflationary. >> we have 30 seconds for a final question? >> if not. we will let that go as a final. dr. paul. thank you very much for being with us in this busy week in washington, d.c. >> let me turn just to learn a little more with the politics with this. i found an interview saying ron paul's view doesn't represent most americans. what's the intent of leadership in exceeding to his chairmanship of this subcommittee? >> he does not think with most other lawmakers and americans. he's building a movement to end the fed. they haven't been criticized much. but kind of been seen as an untouchable force. ron paul has been around for a long time and using his decades of seniority and a thorn in the sides of the fed. that's an important give what's going on. whether

. >>> award documentary film maker bud greenspan has died. he focused on both the summer and winter olympic games and won seven emmy awards for his work. the film maker got his start behind the camera with the london games in 1978 telling the world of these caught up in the world of international competition. greenspan made no apology for concentrating on the positive aspects of the games, calling the events two weeks of love. bud greenspan was 84. >>> coming up, dramatic video out of india. how a plan to force a leopard out of a village backfired and what happened to one man. >> the right place, right time. how a sheriff's deputy saved the lives of a california family on christmas day. >>> we will have a break in the rain for tomorrow. but i am tracking another weather system offshore. coming up when the heaviest rain moves back into the bay area. the heaviest downpours and the one big change that moves in behind the storm. . >>> a tourist bus accident in egypt today killed eight american tourists. at least four others were critically injure

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alan greenspan has joined our movement. alan greenspan gave a speech saying, hey there's fraud if he top rngs they can get away it with it is terrible, destroying capitalism. well, duh. that is what exactly alan greenspan's policy did there is a consensus, we need a real attorney general. >> to look at the fundamental -- my fundamental belief the politicians are neither good or bad people, they are responding to what they perceive to be in their best self-interest to keep their jobs so they don't alienate the political donors and whatever the framing that is -- surrounds them to keep their jobs is there a political tipping point in this country, you see the polling, 70% of americans don't think the bonuses should be getting paid on wall street that number could go 80%, 90%, people talk about tax policy in this country. there is not really a look of consensus about these i shall because appears to be a lack of political pressure against actual leaders in this country. >>> it is the same theme under all the things we have bee

alan greenspan there were laws on the books that allowed and that would have allowed alan greenspan and the fed to intervene in the mortgage market and go a long way toward reining in many of the bad practices but they did enforce the law so now we're in a battle we passed this financial reform legislation earlier this year now we're going to have just as big a battle just as better just just as much lobbying just as much back room arm twisting on the implementation of the law on the rule making and on the enforcement ok so they don't they don't comply with the law until such time as they get caught blatantly breaking the law then they try to change the law so they just have no respect for the rule of law it's not going to have a country when you're the biggest component of the economy which is the banking and banking services component is just just flagrantly violates the law as of as as a business model of what kind of country is that you know we have a problem with accountability right now we don't have a system where our political players big financial players are being held account

alan greenspan. the architect of deregulation, citing the fact that in 1911, we broke up standard oil. so here you have greenspan, who helped cause this crisis, at least having the courage to understand that now is the time to begin breaking up these big financial institutions. heavy enormous power over our economy. they have enormous power over our political power. their lobbyists are all over this place. you can't walk down the hall without bumping into some of their lobbyists. we've got to start breaking them up and the american people have got to be prepared for a major fight to take on these huge financial institutions. mr. president, former fed chairman paul volcker, who has advised the obama administration, supports breaking up big banks so that they no longer pose systemic risk to the entire economy. according to a recent article in "the new york times," volcker said -- and i quote -- "people say i'm old-fashioned and banks can no longer be separated from non-bank activity. that argument brou

alan greenspan. the architect of deregulation, citing the fact that in 1911, we broke up standard oil. so here you have greenspan, who helped cause this crisis, at least having the courage to understand that now is the time to begin breaking up these big financial institutions. heavy enormous power over our economy. they have enormous power over our political power. their lobbyists are all over this place. you can't walk down the hall without bumping into some of their lobbyists. we've got to start breaking them up and the american people have got to be prepared for a major fight to take on these huge financial institutions. mr. president, former fed chairman paul volcker, who has advised the obama administration, supports breaking up big banks so that they no longer pose systemic risk to the entire economy. according to a recent article in "the new york times," volcker said -- and i quote -- "people say i'm old-fashioned and banks can no longer be separated from non-bank activity. that argument brou

>> this is the famous greenspan lieberman trophy which is annually given to the most boring person. and i think we've got to give it this year to harry reid. he ought to get some award. he has to be one of the most boring politicians i've ever heard. >> and the winner? >> eleanor? >> and he won. >> and his opposite number, in the senate, mitch mcconnell, who when he said his number one priority was to defeat president obama, it is not inspirational to a country where we have significant unemployment and they're looking to the senate to do some other things besides just politicking. and he is so one-dimensional in his speech. >> it was raw plate meat for the heritage foundation. >> most boring? i will give it to president obama who was the most electrifying presence on the scene for years starting with the 2004 speech he gave at the democratic convention to the campaign to being the most boring drone in washington. >> i think rand paul is just as boring for me. the son of ron paul. incoming senator. and a guy who as far as i thought would sound like exciting ideas until i realized th

happen of course first of all we had crazed consumerism stimulated by the federal reserve under alan greenspan and by the constituent central banks of the us empire whether it's the bank of england or or the european central bank over stimulated consumption massively so we have too many houses too many cars too much spending when prosperity is based on saving and investment so yes we're taking a turn back towards not consuming not spending saving and investment that's what we have to do of course we have as enemies against us the governments of the west the central banks of the west which are holding interest rates so low we need dramatically higher interest rates stimulate saving and investment to reward the savers and investors and we need to get away from what mr bernanke and all the rest are doing to us david what do you think about all this is i mean again is this a choice or is it just something that we have to accept we have to accept living smaller we have to accept living more modestly because we still have the demonstration effect out there we do remember the top one percent top thre

i think also a failure by alan greenspan, larry summers, and bob rubin, to heed brooksley born's concerns at the commodity futures trading commission about derivatives of their failure to basically agree, see the dangers that she saw in derivatives getting out of control. that also contribute to the problem. virtual regulation of wall street is i think a part of the very damaging legacy that we lived with better after. >> deregulation and a lot of times is from 1980 onwards, is widely credited with unleashing much great entrepreneur energy into the u.s. economy. is that not right speak with some of it is right, undoubtedly. one of the great strengths of the u.s. economy is not only entrepreneurialism, but also a venture capital community that supported those entrepreneurs. but by the time you get to the late '90s, most of the entrepreneurialism was occurring on wall street. it was not in terms of new gadget. it was entrepreneurs in terms of new financial gadgets. and that was a zero-sum game as it was taking money from one pocket and putting money in another. it was creating a casino capi

alan greenspan, remember, could lower interest rates. but right now it's an entirely different economy. this is not analogous to bill clinton's economy. we have had a great recession that came not out of the fed raising interest rates too high, but really out of a huge asset bubble. a housing bubble exploding. and that means that it's going to take years until consumers are out from under that deficit, consumers are able to borrow again. consumers are ready to buy as much as they were buying before. the analogy doesn't hold. potentially, this deal, this tax deal that obama is entering in with republicans is going to explode the deficit without any real gain for the economy at all. >> moody's pointed out that in the -- with the 2012 presidential elections coming up that might make it possible to prevent the republicans making the bush tax cuts permanent, again. does this president or do congressional democrats have plausible way out of that scenario? >> the only plausible way out, i think, keith, is to tell a very different story about ho

bud greenspan was 84 years old. >>> get the latest on this blizzard.tor >>> this weather report, sponsored by subway restaurants. start the new year right with the egg white muffin melt. >>> now here's russ. >> sara, thank you very much. >>> up next, are you wondering how to make 2011 as 2010 was? you're watching "the early show" on cbs. re "the early show" cbs. [ "1812 overture" playing ] [ "1812 overture" playing ] [ male announcer ] this year, eat smart. with the low fat subway turkey melt, part of a subway fresh fit meal. or the turkey blt with crispy bacon. both, surprisingly, 7 grams of fat. subway. eat fresh. [ "1812 overture" playing ] how can expedia now save me even more on my hotel? well, hotels know they can't fill every room every day. like this one. and this one. and oops, my bad. so, they give expedia ginormous discounts with these: unpublished rates. which means i get an even more rockin' hotel, for less. my brain didn't even break a sweat. where you book matters. expedia. let's raise a glass to cookies just out of the oven. to the morn

i think that also a failure by alan greenspan -- larry summers and bob rubin to heed berkeley born conference at the commodity future trading commission about derivatives, their failure to basically agree with her, see her, the dangers that she thought into it is getting out of control. but also contributed to the problem. >> the complete redelegation is i think part of the very damaging legacy would live with thereafter. >> deregulation and lower taxes from 1980 onward is widely credited with unleashing much greater entrepreneurs of energies into the u.s. economy. >> certainly a threat, undoubtedly. i mean, one of the great strengths of the u.s. economy is not only entrepreneurial son, but also a venture capital community that supported this entrepreneurs. but by the time you get to the late 90s, most of the ashburn orioles and was occurring on wall street. it was not entrepreneurialism in terms of new gadgets. this entrepreneurialism in terms of new financial devices. and that was a zero-sum game. it took money from one pocket and put it into another. it was creating a casino capitalism but

you could say that under alan greenspan the fed was on pot, under bernanke it is on crack.t's very hard to undo this. how do you undo it? basically, q.e. 2 is going to lead to q.e. 3, and unless that very hopeful scenario that you talked about, which is robust economic growth for many years -- and i'm kind of with jim and i believe the economy is getting better -- >> charlie: right. >> but sustainable, five years of, say, 3 or 4% growth it's very hard to see how we're going to get away from thisspendency on paper printing. >> charlie: you think the global economy is getting better? >> it got so bad, it's rebounding and slowly but surely the private sector is creating jobs. >> charlie: why don't they create more? why are they sitting on all that money? >> i defer to other economists on that, but basic basically there are leadership issues in washington, rules that aren't known, tax policy -- some of these things will get resolved in time but basically as peter was saying, once you have been through this scare that we had in 2008, you don't bounce back right away. people have

we felt -- there was a time magazine cover of larry summers, bob ruben and allen greenspan as the committee to save the world. and it did feel like that at the time. i learned they did actually think pretty hard at the economics of things as well as the politics. but i have to say, and i think larry summers admitted this, it is a lot easier to lecture other countries about taking very dramatic moves, nationalizing their banks than it is to do it themselves. >> how did you come to work for him and what was his job at the time? >> well, he was the undersecretary for international affairs. i think the current document of that job had been gail braynard. i was wriding articles for the london times. i think in my conversations with the international types at the treasury in washington it came up that i was an american citizen and they knew they got through a lot of speech writers. quite a challenging guy to write speeches for. so they asked me to come on board. i thought it was a great opportunity intellecually, but also as a journalist to see things from the inside. to see what's at the heart o

here, the best and most practical way to increase the social security benefits is something the greenspancommission could have done only they put a patch on it for 30 years instead of permanently fixing at would be to have increased from 65 to 70 retirement age at full benefits at the same rate the increase from 65 to 67. somebody said to him thousand 37 we are going to have to go to 75% of the benefits. i believe it was you, mr. goss? will we wouldn't have to do that if that money were deferred for those three years. we would be good on till 2075 and full benefits it just that little change, and that doesn't cost the average american who is going to receive social security anything but waiting or if they wanted to get 65, 66, 67, they can with a lesser benefit, but i'm telling you most people are trying to stay in the workforce at least past 70 that i know. now i don't know what percentage of you have of those that are at age 65 to 70 that are continuing into the workforce. if they are able to do it. do you have information on that? >> in my organization, 18% of our employees are 62 and

i think also a failure by alan greenspan and i'll also name names, larry summers and bob ruben to heed brooksly borns about derivatives and their failure to agree with her and the danger she saw in derivatives getting out of control and that also contributed to the problem. the complete deregulation or virtual deregulation of wall street is, i think, part of the very damaging legacy we lived with thereafter. >> deregulation and lower taxes from 1980 onwards is widely credited with unleashing much greater entrepreneurial energy into the u.s. economy. is that not right? >> some of it is right, undoubtedly. i mean, one of the great strengths of the u.s. economy is not only entrepreneurialism but also a venture capital community that supported those obtain newers but by the time you get to the late '90s most of the entrepreneurial was occurring on wall street. it was not entrepreneurialism in terms of new gadgets but it's in terms of new financial devices and that was a zero-sum game. it was taking money into one pocket putting into another. it was taking a casino capitalism that ultimatel

i think that as alan greenspan's old phrase. let's face it, if alan greenspan, and i am not defending him, but if he had radically raised interest rates at the time of the bubble, there would have been a torrent of criticism of him for prematurely denying people the benefits of this great economic bowl. the lesson we should learn is that is often what we pay these guys to do and they should be willing to take risks. host: springfield, missouri. caller: mr. stokes, i would like to talk to you about the panama canal. whenever that is finally widened, you will find that this will really affect our economy, with the interstate freight that goes across the continent now. we will bypass through the panama canal and will affect us did something for you to look into. guest: to be honest, i never thought of that. it is my own ignorance here, and i will look into that. very interesting observation. host: tennessee. good morning, dave. caller: i just had a comment and question. i agree, as far as trade is concerned, it has got to be cyclic

i think that as alan greenspan's old phrase. let's face it, if alan greenspan, and i am not defending him, but if he had radically raised interest rates at the time of the bubble, there would have been a torrent of criticism of him for prematurely denying people the benefits of this great economic bowl. the lesson we should learn is that is often what we pay these guys to do and they should be willing to take risks. host: springfield, missouri. caller: mr. stokes, i would like to talk to you about the panama canal. whenever that is finally widened, you will find that this will really affect our economy, with the interstate freight that goes across the continent now. we will bypass through the panama canal and will affect us did something for you to look into. guest: to be honest, i never thought of that. it is my own ignorance here, and i will look into that. very interesting observation. host: tennessee. good morning, dave. caller: i just had a comment and question. i agree, as far as trade is concerned, it has got to be cyclic

i was the lone vote because i thought he would continue the greenspan monetary and regulatory policies. well, he did. he kept it up, the flawed monetary policy, and was slow to regulate. and then in 2008, he took the federal reserve into fiscal policy by bailing out bear stearns and later a.i.g. and just about every other major financial institution in the country. and as we saw even last week around the world, chairman bernanke compromised the independence of the fed and turned it into an arm of the u.s. treasury. things have not gotten better since then either. chairman bernanke is continuing with the easy monetary -- easy money monetary policy and just a month ago started the printing presses again to buy up more treasury debt. while the fed may be propping up the banks with plenty of cheap money, he is undermining our currency. other central banks are moving away from the dollar and gold is continuing to climb. just like the soaring national debt and entitlement cost, the destruction of the dollar is not sustainable. congress must act to rein in the chairman of the federal reserve

i was the lone vote because i n eenspa thought hemo would continue to greenspan monitory and regulatory policy. well, he did. he kept it up, up five monetary. policy and was slow to regulate. and then in 2008, he took the federal reserve is fiscal policy by bailing out there stirrings in later aag.tion in and just about every other financial institution in the country. as we thought even last week around the world, chairman bernanke compromised the fed and turned it into an arm of the u.s. treasury.ot gotte things have not gone better since then either. chairman bernanke is continuing with the easy monetary policy.ic and just ay a month ago startede printing presses again to buy up more treasury debt. while the fed may be propping up the banks with plenty of cheap money, he is undermining our cen current fee. other central banks are moving continuingntinui to climb. just like the soaring national , debt and entitlement costs, the destruction of the dollar is not sustainable.he congress must act to rein in the chairman of the federal reserve and the fed do for they destroyo our currency

i was the lone vote because i thought he would continue the greenspan monetary and regulatory policies. well, he did. he kept it up, the flawed monetary policy, and was slow to regulate. and then in 2008, he took the federal reserve into fiscal policy by bailing out bear stearns and later a.i.g. and just about every other major financial institution in the country. and as we saw even last week around the world, chairman bernanke compromised the independence of the fed and turned it into an arm of the u.s. treasury. things have not gotten better since then either. chairman bernanke is continuing with the easy monetary -- easy money monetary policy and just a month ago started the printing presses again to buy up more treasury debt. while the fed may be propping up the banks with plenty of cheap money, he is undermining our currency. other central banks are moving away from the dollar and gold is continuing to climb. just like the soaring national debt and entitlement cost, the destruction of the dollar is not sustainable. congress must act to rein in the chairman of the federal reserve

alan greenspan was warning us we had too much of a surplus and it might not be wise to pay down the debt. we were on course to pay down the national debt. and then the bush administration pushed through some tax cuts. pushed through tax cuts. they said we're going to do it temporarily, just until 2010. and we'll keep them in until 2010 and then we'll have to revisit it or we'll go back to what we had before in 2001. they made that deal. i didn't vote for it. i didn't think we should cut taxes at that time. i thought we should pay off the national debt. tha*fs that would have strepb -- that would have strengthened our economy more than anything. but, no, the bush administration, republicans who controlled the house and the senate said they wanted to cut the taxes. most of the taxes tha*rp were cut, as -- most of the taxes that were cut were for the very wealthy. did we have a lot of job growth? not a bit. not only did we not have job growth the deficit skyrocketed. i don't want to hear any comportations from that -- exhortations from that side of the aisle about how raising taxes never re

alan greenspan told george bush if he didn't stop running up the deficit he'd go blind.he next guy go blind. is in a trick question? check out the blog at the cafferty file. >> thanks very much. good stuff. chances are you may have seen it on youtube. take a rainbow and a very happy guy with a camera and you might just have a viral video. we've saved people a lot of money on car insurance. feels nice going into the holidays. ohhhh.... will you marry me? oooh, helzberg diamonds. yeah, well he must have saved some money with geico. reminds me of the gecko mating call. really? how does that go? shoo be doo be doo. geico. 15 minutes could save you 15% or more on car insurance. we asked people all over america where the best potatoes come the best potatoes? idaho. idaho! idaho. and how do you know you're getting idaho potatoes? well...uh... uhm... heh.. (sighs) not all potatoes come from idaho. so if you want the best, you have to do one important thing. always look for the grown in idaho seal. i knew that. i knew that. look for the grown in idaho seal. >> some things just ma

speeding up the way we collect payroll taxes so that we reach the revenue goal, a goal that alan greenspanecommended in 1983, far earlier than 2050. i will use the additional revenue to eliminate benefits cuts that the proposal would create. on health care, there are many ideas here. the fact that we still basically stand by the affordable health care at, the health-care reform act, is a fundamental of my support to this report. there is one proposal that troubles me greatly. i think it is unfair to treat federal employees as guinea pigs

it is about the military, cheap labor interest wall street, alan greenspan, who said immigration is needed to drive down wages because amerin workers were getting paid too much. this is people who -- people wonder why this would be considered in the lame-duck legislation. just look at the players. -- we happy to see people of hundreds of thousands of activists around the country -- have hundreds of thousands of activists frothe country pummelling the switchboard of congress, rising against the dream at. we have major opposition in the senate to stop this. as long as people did not let up the pressure, we can defeat this in this congress. host: cheryl in south carolina talking immigration. ller: excuse me, i am nervous. the congressional budget office announced the dream act would increase revenue by $2.3 billion. have they announced what the cost will be to the american taxpayer? i heard an estimate of $20 billion. guest: the cbo came up with the estimate but said because we were putting the beneficiaries in non-immigrant visa status, kind of like tourist visas, they came up with a series

alan greenspan has been blamed at the time for keeping interest rates low at the beginning of the 2000's. he was afraid of deflationary and he was afraid that unemployment was too high. now, he is being criticized for that and ben bernanke is being praised for doing exactly the same thing right now. we will not know until well into the future whether this has been a sensible policy. host: one of the key oversight players will be congressman ron paul will oversee the committee that oversees the treasury. guest: he will be more skeptical about the fed. the fed is a remarkable institution. there is a substantial argument, a good argument, i think -- and in fact boatpeople left in the right make this argument -- they say in their rear leg room -- regulatory responsibilities, in a major way caused a financial crisis but when congress can around to voting for what to do about the financial system and what kind of powers to hand out to the regulators in town, the fed got almost all of them and3 . it is remarkable the fed survives these things time after time. host: our line for independence,

greenspan, robert rubin -- the host: james, i'm going to move on here. this is from the "new york times" today. back to your telephone calls. the greenville, ohio, mike, good morning to you. caller: just gone to talk a little bit about the money that our government seems to be able to throw around for these problems. i'm sure it was needed for the banks and so forth, but i'm also concerned about the unemployment situation. the heil has one of the strictest limits as far as -- ohio has one of the strictest limits as far as how long you are able to collect. i believe it is 96 weeks that someone is allowed to receive benefits for the duration of unemployment. i wonder if congress will extend that. what about the people who simply have not been able to find work at all, and they are not even included if the benefits are extended? host: thanks for your call. the front page of the "washington post" suggest that the gop and obama are in continued discussions about the tax cuts. some of the reporting suggests that the president is trying to use the extension of