this is a moment for keynesian stimulus. so welcome to the wide worlds of keynesian economics, governor. it is nice to have you aboard. >>> coming up, the powerful ceremony bringing home the bodies of the four americans who were killed in libya speaks for itself. and we will let it. stick around. >>> still to come president obama and secretary of state hillary clinton paid tribute today to the four americans killed in libya. we'll have highlights of their remarks. >>> an update from wisconsin. late this afternoon dane county circuit judge ruled wisconsin governor scott walker's law that effectively ended collective bargaining rights, promotes public workers was unconstitutional. judge juan colas ruled friday the law violates the state and u.s. constitution and is null and void. walker, champion, has been in e effect over a year. a short time ago walker tweeted a response to the court's decision. he said the people of wisconsin clearly spoke on june 5th. now they're ready to move on. sadly a liberal activist judge in dane cou

this is a moment for keynesian stimulus.e worlds of keynesian economics, governor. it is nice to have you aboard. >>> coming up, the powerful ceremony bringing home the bodies of the four americans who were killed in libya speaks for itself. and we will let it. stick around. [ male announcer ] what if you had thermal night-vision goggles, like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. >>> still to come president obama and secretary of state hillary clinton paid tribute today to the four americans killed in libya. we'll have highlights of their remarks. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet.

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one problem that's how america got out of the depression last time our banking reforms it wasn't a keynesian policy it wasn't a devaluation of the dollar it wasn't world war two it was a book or a commission and reform that's what got america out of the depression was going to get the globe out of the depression now reform its upholstery makers don't enact the reforms that it's up to the people to revolt join low seventy ninety revolt now or be a slave forever so the high frequency trading caused that flash crash which helped the f.c.c. find information that the new york stock exchange was feeding data to these protect proprietary customers first now this is from this past week disturbing a liquidity chart. so now max which produced this chart said on september thirteenth two thousand and twelve at twelve twenty five and twenty seven seconds to december two thousand and twelve in many contract experience and evaporation of liquidity at such an alarming rate that it produced one of the most disturbing charts on market stability we have ever seen as you can see from that chart i would like to

with the republican party and in terms of their desire to reprice the military keynesianism of the reagan administration so all they did cried the debts that have been incurred under the obama administration i think their actual plan is to actually juice up government spending in order to make the con of me recover and they think that perhaps they can present russia is the enemy again so it's a very dangerous situation i think it a very good one now when it comes to when it comes to luring in the voters a fool for the final ramp up to this election what does obama need to focus on what does romney do focus on would it be a. defense industry foreign policy or water well in terms of actually winning the election i think the republican strategy has been to kind of juice up again this frustration and anger that resides with the american people and i don't think romney is saying which success i don't think that's resonating enough to actually win the election in fact the american press today they just released a video clip in which he said that forty seven percent of the electorate he's not ev

one of the things we know and the analysis points in the keynesian analysises or keynesian policies ofbamanomics are failing. succeedening what they're suppose today do stimulate the state and local government, stimulus is about and what keynesian economics does, but horrible for bringing the economy back around and ultimately what we're going to have do do, they e better off f years ago or a realistic comparison to where we would have been for the baseline of the economy? of course not. the economy right now as of the month of september and the month of august. and seems to me, we're on a weakening trend again. manufacturing weakening. construction weakening. employment picture is still very weak. at this point can the president realistically say we're going in the right direction, just at this point in time? >> well, no, i don't think he can say it with a straight face. there's no compelling evidence to suggest the economy is moving in the right direction. we get tossed around because of day-to-day macroeconomic news and we are in the middle of a dow rally. and we can say, see, thing

as a good keynesian, how can you possibly support that?keynesian or good citizen concerned about the economy, i would say the best thing to do is not have any budget cuts at all until we reach some sort of consensus about a trigger mechanism. maybe 6% unemployment and 3% economic growth and i might go along with postponing tax increases until we reach that trigger mechanism as well. certainly no tax increases on the middle class. we can debate whether there ought to be tax increases on people who cannot only afford the tax increases but whose spending is not affected by a tax increase. nevertheless, let's at least agree this has to be done in phases. first, don't do anything until you have growth back. >> this is my quarrell. i think this process should go on for several more weeks. the election is not for several more months. two months away. i don't know why the house members and the senate members, mr. coburn, can't carve out several more weeks to do the people's fiscal business and to do the economy a favor. you know squlrve, sir, this

in the economic realm, more of the same would be another 800 billion dollar stimulus because the keynesian stimulus is the only economic idea they have under these circumstances. >> paul: hire more teachers. >> hire more teachers, spend more money. that would be very difficult to get through congress and i think on the other side of what he will not talk about is the second term of what will be an unprecedented exercise of executive authority in power. 's going to use the agencies to get, finish his agenda. 's going to use the environmental protection agency, the independence review board on medical care and the consumer protection agency to regulate financial industry. i think this president's done with congress. >> jason? >> and he's going to your point about the stimulus, the stimulus that he wants. he's going to need more to pay for that, a massive bush tax hike. a massive bush, he wants a new normal for government spending in the country and he wants, obviously, the complete enactment of obamacare and maybe require more government spending and going forward at a higher level. >> and h

if the keynesian spending, government dependency and federal reserve pump priming. if that was going to work, dean baker, it already would have worked. >> out did work almost exactly by the textbook. >> it ain't -- if it was gonna work it would have worked. it ain't working and it's time to change it. >> if you look at what they said the stimulus would do they said it would create 3 to 4 million jobs. the problem is we needed 10 million to 12 million. read what they wrote. 3 million to 4 million. they got somewhat less. number of estimates from the congressional budget office. they say 2 to # 3 million jobs. worked like a charm. problem was we needed two or three of the stimuluses. >> i read the report. they predicted by now the unemployment rate would be 5.6%. >> they underestimated the severity of the downturn. >> here's the other problem. are you saying we have to keep borrowing a trillion, trillion, trillion every year? you're going to bankrupt the country. >> our interest as a share of gdp is near a post war low. out's about 1.5%, lower than it was at any point

i've never thought of it in terms of keynesianism versus nonkeynesianism. trichet calls them nonstandard measures. in the world of central banking, when you don't have -- when you have a fiat currency, this is considered to be class ib centrclass being central banking. it is the core discussion of our time in terms of the economic staft the world. >> the people that hate keynesian inch haism hate this,e might be something to it. the austrian school, those guys are -- the ones that are alive are rolling the eyes and the ones dead are rolling in their grave, i think. >> i would say this, that most of the people who hate keynesianism would also like to see tax cuts and ultimately those two things are about -- are similar in that they're just trying to inject more money into the economy. does the government spend the money or do you cut taxes and give it more to people for them to spend the money. >> if you do the enemy of my enemy, you can be friends and enemies with everybody. you don't know where you're -- i don't know. just thinking. all right. thank you. >

who's over there in the new york times talking paul krugman the keynesian who's justifying more central bank oppression it's disgusting well so here we have presented this story here that savers have lost their telling you the interest rate setters david miles at the bank of england that well it could get worse we might throw money on to the economy we might actually do a legitimate true genuine helicopter drop so they're basically taunting people to stay quiet you know it could get worse for you then we've got a one hundred worst if they did the actual look back going back to the us in two thousand and eight if barack obama simply pay ninety percent of every outstanding mortgage and have to credit card debt that would have cost los then the up to twenty trillion dollars he's given one. who in turn did not make the loans that they say there is no multiplicity of money or barrick your economics didn't work did it but of course you're going to suggest doing more of the same digging barracked digging up a. well you're going to find the solution though there's no more. so you know a lot of

maybe not what the popular notion would suggest keynesianism today is synonymous with money printing or spending i would argue mark father recently argued in a king world news interview which by the way is a great radio program he made an interesting point about how modern economists have misrepresented and abused the work and intentions of people like keynes and friedman people like paul krugman for example or ben bernanke who have strongly associated themselves with these famous economists now earlier i spoke with gloom doom and gloom reports mark probert himself all about it take a listen. to people like paul krugman for example or ben bernanke have strongly associated themselves with these famous economist but if keynes or friedman were alive today do you think this they would endorse these modern thinkers policies. actually i could tell you keynes was a very intelligent man and actually he also had the flexibility to change some of his view if the arguments presented to him were convincing conditions change and it changed some of israel's and he actually there was a huge debate

banks in a theoretical attempt to increase demand that's false that's false economics that's false keynesianism that's false monetarism that's false milton friedman ism that's just begs to cock ism and it makes no. concoct a sense except if you're in the business of reintroducing male feudal times in the twenty first century which of course is the point which is a very smart people are george of course face it says neil feudalism if you look at it closely it was all smiles you can see this fills a need oh oh oh your job or well that's a good point max is that in the united states obama was called a marxist marxist marxist when he pretended to do the fake we're going to help re modify mortgages when in fact this new federal reserve plan is buying up not the mortgage but the rehired the key to mortgage that's all fine like nobody seems to have a problem with that that's fine by wall street but that's very suspicious activity to me that's very suspicious why i want to break the supposedly and business but i really are complicated mortgages but really propagated from a banks to kaka and claim that

to crawl off this ledge that they're on all timidly we should have the fed as some kind of great keynesian master trying to micromanage the economy and manage the business cycle we need to allow the private enterprise system to heal itself as i say and then move along the path that the millions of people who participate in it each day reflected in the choices they make so it. so just to be clear you think that the market should set interest rate absolutely i mean everybody believed for one hundred years or two hundred years even when the fed was created. william of chesney martin the great chairman of the fed in the fifty's in the sixty's didn't have the presumption the arrogance to think that he was micromanaging the economy by fine tuning the interest rate every meeting and between meetings and between the lines of the smoke signals they put out with their meeting statements and so forth of course the only way that we can ever heal this system is to get free market price scene back into the capital markets that means the money the overnight rate the money market rates should be set by th

actually just how things work at the moment they don't they've all been to college they've done keynesian economics and they don't really know very much plus they call themselves and most of them a terribly overpaid going to do you figure the there before we go quickly this does beg the question of how and why and we return to a market where price is more accurately reflect reality without crashing the entire system maybe as we are in the twentieth anniversary of the week now and as black wednesday in the u.k. where speculators. crash the british pound so to speak are there any lessons. where the should be lesson should know when we crash down to the red in one thousand nine hundred ninety two. as soon as we came away from the official pay to the deutsche mark which we did was totally artificial the economy then. he had interest rates. and money supply and all the other things that go out to make an economy which was suitable for the united kingdom and if you look at the graphics and i'm sure you have from one thousand nine hundred two to the year two thousand. food it lurched forward. an

some are not so moral they involve war conquering enters the after but you know good old fashioned keynesian stimulus seems to be the thing that is the most effective way to grow an economy but for some reason people have been believing this stuff that came out of the came out of the chicago school of milton friedman and these guys back in the one nine hundred sixty s. and fifty's and seventy's fifty's through the seventy's it was tried by augusta pinochet overtly tried kinsey kinsey in economics in chile privatized social security the whole bit and it was a disaster and this is by a military dictator who is killing his people in order to force these policies some of these policies were tried in some of the post soviet union countries and you know created disasters i mean it's just it is it doesn't work our final comment of the night comes from lynn all the way from south africa or second viewer from that country here's what lynn had to say i tom or to the receiver of this it was me actually i watch the big picture and hartman show every morning just before i go to work i live in shelly beac

doing sure they'll give you an opinion but most of the stuff they you hear they're just echoing the keynesian policies of bernanke you or you know we really can't we really need to keep troops everywhere you know everything is so polarized no one wants to sit down and have a an honest talk about what's sustainable senator kohl burn actually got a a email from one of his aides you know asking me something about the state of disability fraud and i was very pleased to get an e-mail from this from a top aide to a senator on that but you know for that and he was one of the more pragmatic ones but look what happened to him he was in that was the gang of five they tossed him out they came up with this no compromise situation they kicked the can down to these tax hikes that are supposed to be automatic now in january but no one wants them yet what are we going to do yeah no it does seem like there really are no good options that are actually viable options for voters in many cases when it comes to the economy measure let's talk about where we are now because people have different forecasts you have s

>> my response to that is that at some point we're going to have to recognize that standard keynesianmics, which has been embraced by this president and this administration, simply isn't working, in point of fact hasn't worked for a long time. the keynesians are never worried about debt, we get more debt and stimulates the economy and borrow from the future, but almost always an exercise in futility. you've talked about this and thought about this a lot and talked about it on the show. it's true. so of course he's not worried about debt. racking up a little bit of debt year after year after year and we're going to have to pay it back, at least our children will. stuart: it's a shock to me, as someone who emigrated to united states many years ago, it's shocking, the bureaucracy is so thick, so huge, i'm astonished-- >> it's amazing, one of the things that's holding people back. you talk about the fact that the unemployment rah it is not markedly getting better, on the contrary it's getting worse, especially frustrated workers. those who are vulnerable, and something interesting in the