. >> mike: larry peter bought the 99-year-old petaluma creamery in 2004. it was idle, about to be torn down. a dairyman, peter owns 300 head of jersey milking cows, they roam free on his ranch in two rock, organic to nth degree. a first-generation farmer, peter cobbled together a living from the land, milk, a pumpkin patch in the fall, farmer's markets. but after nearly two decades, he needed to do something to increase revenue. >> i figured if i could cut out the middleman, grow the feed, milk the cow, make the cheese and sell the product to the customer i would be able to help pay my mortgage better. >> mike: so he bought the creamery, bringing in milk for more than 30 dairies in northern california, saving them the transportation cost to creameries three and four hours away and giving him the milk necessary to make 300,000 pounds of high-quality specialty cheese a week. 22 varieties under his spring hill jersey cheese brand name. >> it was milk and it turns into curds and whey. >> mike: larry peter is a small curd in a $27 billion plus market. until --

the advisers that he bridal and called the economic advisers to timothy geithner, larry summers and peter norris said. of the foreign policy team, robert gates up to his eyeballs most of the bad things the country has done for decades. >> but he promised he would pull troops out of iraq so he falls through on his promise. >> so they do not take it seriously enough. we think it has been a big mistake. one thing he said is that cut back on the bush secrecy and has not followed through. with the espionage act was passed three people were indicted we were critical of many things but with the treatment of bradley manning it was very problematic but in some ways with bush and cheney for the war crimes committed so if you commit war crimes you walk free? if you expose then you are sentenced to jail? his policy is problematic. and with the case like yemen and then if it backfires the times square bombers. >> we have one minute left. >> not only as factual but what form policy should we have? what would you do? >> impassioned and a love of mankind and a purpose a century of the common man because

peter, please. >> sure. she's simply wrong. this company, along with others, is going to lose the jobs, larry. we're letting it go one company at a time. that technology is also raising the issue, larry. much of this stuff is dual use. we have to pay more attention to this issue. >> i have to leave it there. thank you very much. ann lee, welcome to the show. peter novarro, welcome back. who will save the twinkies? the deadline was today for companies to get in to bid for host esz. who wants to put their money where their cream filling is? ha, ha, ha. we'll have a report on this in a moment. ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. you'll also care about our new offer. you get access to nurses who can help with your questions. and your loved one can get exelon patch free for 30 days. if the doctor fe

peter was elected overwhelmingly in 2010 and resoundingly re-elected in 2012. across the country. they have a strong voice. they have a position. the american people have embraced. the president i think, larry, is over interpreting his mandate in his second re-election. i think he feels empowered in ways that he actually has not been by the american people. he's running a very risky game. this is not where the american people want to be. and i think it's definitely up to those who talk about these things in the media and the american people to be aware of the consequences of what he is proposing. >> here's the thing. had licks there's no spending cuts in his proposal. the idea at one point with simpson bowls was $4 of spending cuts for $1 revenue increase. this one is backwards. this is $1 spending cut for $4 of revenue increases. isn't the republicans' best calling card to insist on strong spending cuts and entitlement reform? isn't that their best counter punch? >> absolutely. one of the reasons president obama's come into these negotiations from what he believes is a position of strength is because he's looking at polls that show that the majority of americans will blame a gop-held house