mr. friedman, how can you smile with all this? he would say because i'm right. melissa: he was always right. >> monetary policy matters and it matters more than just the superficial where stocks are going. this monetary, look, credit formation is beginning again. households are borrowing a little bit for mortgages. businesses are expanding, because they have got to. they're putting cash to work. that will create jobs. this is not a beautiful world. melissa: milton freed man fan you can't possibly like what ben bernanke is doing. he has perverted monetary policy. >> bernanke, i don't call it a perversion. bernanke said at that, 90th birthday party, we saw what you got wrong in 193. we're not going to get it wrong again. melissa: he is monetary policy on steroids. he has broken all kinds of new rounds of monetary crisis. milton friedman is rolling in his grave. matthew, what about you, i don't think he likes this at all. >> he shouldn't like this. i think ben bernanke is creating a whole bunch of problems. melissa: a bubble. >> definitely creating a bubble. we're

mr. friedman.minute rounds of questions, and then we will have a second panel after that. i will start with the questions. general alston, you and dr. augustine in reserve seem to have read the many reports and independent reviews of the doe security that have been convicted previously. secretary chu calls it, quote, the considerable body of work that has been done on the subject of the past decade come end of quote. in particular, you mentioned the review done by admiral meese in 2005. you heard me in my opening statement mention a few others, but there are many more. how do your findings and recommendations compared to those findings and all of the previous reports? >> thank you very much. stat your microphone needs to be turned on, please. >> i need coaching. mr. chairman, thank you for the question. i would say that probably the most disturbing thing mr. augustine and i found was the recuring evidence of problems that have existed before, and when you take a close look at admiral meese's work t

mr. friedman, just a follow-up on this in the questions, you do the inspection , you prepare a report, yousend it to the powers to be and they are the ones that have to make things accountable, am i correct? you hold them accountable or do they hold your rank-and-file accountable? >> ultimately it is the secretary's responsibility to hold the board responsible. >> a couple of group commanders were helpful. following the installation of the new secretary and chief of staff, another was a further detailed review and i'm not privy to exactly what the actions were. from a distance, i understand that general schwartz evaluates how to do accountability in these circumstances taking into stock not just the unauthorized movement of nuclear weapons, but also involving components that personally dealt with the general officers in ways that i'm not personally privy to. >> you know, and experience, somebody has to be accountable. typically when you discipline the lower ranks, there are other folks. all three of you have mentioned that it's a culture of failed leadership within the nsa and doe that rel

mr. friedman, i am an alumnus and i appreciate your service so much. in fact, it is so important that you refer to a hands-off approach. can you explain why this is a concern, why did this contribute, and where did this approach come from and what has been done. what has been done to fix this beginning with the general? >> yes, sir, i song, hands off. it was interpreted in the security community to mean that federal personnel were not really to interact with security duties they were only able to watch them execute duties and not even always allowed to interact with the contractor as they accomplish those duties. what that evolved to was basically a completely federal hands-off policy. saying that i can't tell the contractor what to do. i can give general direction, but the federal personnel failed to give additional directions that said anything about how this would be. nuclear security is critical. it is inherently a federal responsibility. that means that they have a responsibility and a duty to be a little bit more specific. and in fact, tell conta

i had a debate with milton friedman, mr. free market about for you competitive money and he was arguing the government should control the money supply. iud from american history in the 1830s to 1850s at competitive money will give you a sounder, more reliable economy with fewer panic. >> host: religion, what the founders say? >> guest: founders were unanimous that the government should not establish a religion, nor should it prevent the worship of any sort. virtually every state constitution had the words god and half of them have the words jesus christ and. many of them up and tell the 1820s by jesus christ in the constitution. so virtually all of the founders were of a mind to you needed to make sure the government did not force people to practice a particular religion. too, that much different than saying you couldn't have a nativity scene on public property because at the time almost all of them were engaged in some sort of government support and churches being pastors, for example, having prayer services in the u.s. cap

prize winners and i wasn't one of them and it was milton friedman, and headed debate with milton friedman, mr. freemarket about free and competitive money and he was arguing the government should control the money supply. competitive money, reliable economy with fewer panic. >> religion, what would the founders say? >> the founders were unanimous the government should not establish a religion nor should it prevent the worship of any sport. every state constitution has the words god and half of them have a word jesus christ in them. and they had jesus christ in their constitution. virtually all of the founders were of a mind that you needed to make sure government did not force people to practice a particular religion. to them that was different from saying you couldn't have a nativity scene on public property because the time almost all of them were engaged in some sort of government support of churches, paint pastors for example, have national days of prayer, prayer services in the capital, things like that. jefferson's famous letter which was a private letter and not a policy theme in which