country headed without sound now slowing down money we'll hear from blogger author and radio host karl denninger of the market taker on that and while the budget plans of presidential candidates may not add up we already know the lack of government planning has the u.s. poised for this. fiscal cliff looming the fiscal cliff it's looming scorched earth partisan politics could push america over of this cliff. but daunting name and the right this what exactly does this entailed one break down the potential damage and word of the day and give you a glaring example of the wasteful costs of political uncertainty all ready documented plus we have a potpourri of manufacturing data out some points to opposite directions for the u.s. and of who learn who of it points to negative. outcomes in europe now our guest will help us make sense of these ingredients and tell us why he thinks the u.s. recession is already baked into the cake let's get to today's capital account. so income obama and. under mitt romney are getting ready to face off in their first debate wednesday in the race for an old president thank

though our guest says it's going on now and it's going to continue so joining me to discuss it is karl denninger radio host for the market ticker and author of that blog and he's also the author of the book leverage how cheap money will destroy the world karl denninger thanks so much for being back on the show. thank you lauren for having me all right so let's not delve into what could or could not happen one day when these candidates face off in a political debate let's talk about how they're dealing with the deficit debate because many analysts say that the math of these two guys doesn't add up when it comes to their plans in terms of addressing a sixteen trillion dollar debt that is mounting every day with the government borrowing thirty two cents of every dollar so as you see it either of these guys have a plan and where do they each fall short. absolutely not barack obama has no plan at all he has told us nothing about what he actually intends to do put together the deficit commission it sailed there was then supposed to be a sequester and now he is going to have told people obama the way e

how about that karl denninger and mike norman are here to talk about what should or should not be done by the technocrats or elected leaders when it comes to helping the country out of economic doldrums and goldman sachs versus goldman sachs the op ed writing goldman defector greg smith is out with his new book he and lloyd blankfein have been hitting the airwaves today we'll talk about the highlights let's get to today's capital account. so last night were the u.s. presidential debates you did not see on network t.v. it was the third party presidential debate with candidates from the green justice constitution and libertarian parties and on the stage were issues that we have not heard about in the mainstream dools between romney and obama this includes money in politics cutting defense spending dramatically monetary collapse and the government's role in the student loan debt crisis so let's bring in our guests and use some of these economic and fiscal arguments to fuel ours here to talk about all of this is mike norman chief economist of john thomas financial and author and trader car

different takes there there's one that i want to focus on with our guest let's bring back and karl denninger and mike norman gentlemen thank you for let me go to the break let's continue on on this topic and i want to go to you first carl i want to ask you one thing that stuck out to me was you had gary johnson and another candidate to talking about the impact of government spending government backing these loans governing the government issuing these student loans and the impact that that has had on driving up college tuition prices is that an issue. of course simple economic theory price and quantity are connected when you if steak was of no cost to the consumer everybody would eat it every night and that the classical definition of inflation is too much money chasing too few goods so when you make money cheaper freely available the price of a particular commodity rises because demand becomes infinite if there is no check and balance that is provided through price then the demand has no boundary and that's what we've seen happen with colleges it's what we've seen happen with medical care i

facebook and our you tube and all of this various social media outlets mike norman on one side karl denninger on the other opposing ends of the spectrum on debt deficit government spending q we dimitri you've been on top of this on facebook and the discussion has been going on let's play a sound bite and get your response. to your ad full employment and then you know that the deficit is where it should be. ok so one statement what's your reaction and what's been the reaction all because i think they're confused when they hear that and it is kind of confusing that when you hear this remember or and it was a matter the reason why my comments saying that is because he believes that what's most important is full employment and everything and he also believes the government can actually spend and get and get the economy going and what i want to make clear is that what my comment is missing is that yes if you do spend you can get full employment and you'll get everyone a job what kind of jobs are they going to be that's a plantation economy that's why it's hard core collectivism and that's essentia