point well let's refer back to joe wiesenthal because he interviewed paul krugman about bitcoin only days before congress wrote this big queen is evil thing and let's turn to what he said then about what why between is a problem in principle you can have assets which are considered valuable even though there is nothing backing them because self-fulfilling expectations now we don't actually think that money is like that because that's backed ultimately by the fact that you pay taxes with the right people always say that but it is a right if you have money if you like is backed by men with guns very good point is not so why should this thing have any value so backed by men with guns that tells you everything you need to know well in fact guess on the show catherine austin fits dr michael hudson and others who point to the fact that the dollar as world reserve currency is backed by guns because people say there's nothing intrinsically valuable about bitcoin and then the other side will say there's nothing intrinsically valuable about the dollar because the federal reserve is technically

by some structural bank so they're all the countries of the world have now adopted this psycho paul krugman as print money to die debt is great wages are terrible and wouldn't make sense. it is it how do you get around the blunt force trauma of a pro statist argument that in fact. minimum wage and wages need to go up well i mean it was going to come on defense he was saying it wants wages to rosin america as well and i think what we capitalism of the fifty's and sixty's was for just capitalism with what actually bumped up the wages he paid to his work was so that they could afford to buy the cars they're producing on the production line and he had this belief that both profits and wages had to have it's gone and that's healthy capitalism but we're going to crush this predatory capitalism with firms try to relocate their production to cheap wages and they try to sell back to high wage countries does not work it works the individual firm but it brings down the wife's levels over this. very simple graphic here we got a couple minutes left here is the central bank and the money is being printed

even the index and is now causing kids under ten years old to get cancer so that's you know paul paul krugman is responsible for that cancer that child in china because he's the propagandist who's trying to use the new york times to convince people that there's no inflation due to this money printing but the other thing is you know george osborne the chess with a checker here was recently in china and he from china berated the brits for not being more like the chinese but here is the truth. cost of our production model of outsourcing our pollution of outsourcing our production and wealth creation over there is that you know all these. stupid environmentalist as they are called on fox news in america introduces environmental regulations and because of them we don't have jobs in america well this is the trade off you have either dropped dead on the street at thirty five years old due to the pollution or you figure out a smarter way of doing things you figure smart a way of controlling the strait of hormuz rather than spending eight trillion dollars a year there are spending a trillion dollars o

think you're a genius so this financialization of the global economy is something that guys like paul krugman of the new york times think is great because there's no such thing as debt that doesn't matter any president is there percent and there's no consequence is ever in your thoughts that's the deadly thing i mean that particular pipe where he went across for the secular stagnation argument from. from the irish summit as he actually said someone is you don't build up bad consequences for the future now the reality is when you take a look at what draws us that process on it's rausing levels of debt and you've got to pay the debt back back to banks not towards other individuals and that also means the bubble has to has to fall i guess you know other possible fall off the low interest rates we have an amazing degree of larceny embezzlement malfeasance here in the u.k. this past few weeks has been the star turn of royal bank of scotland they've recently been caught targeting individuals and companies for debt. eugenics i mean areas here they're almost they've got almost the whole program in pl

by some structural bank so they're all the countries of the world have now adopted this psycho paul krugman as print money to die debt is great wages are terrible and wouldn't make sense. it is it how do you get around the blunt force trauma of a pro statist argument that in fact. minimum wage and wages need to go up well i mean it was going to come out in defense he was saying it once wages to rise in america as well and i think what we capitalised of the fifty's and sixty's was for us capitalism with what actually bumped up the wages he paid to his work was so that they could afford to buy the cars they're producing on the production line and you had this belief that both profits and why you just had to have it's on and that's healthy capitalism we're going to crush this predatory capitalism move firms try to relocate the production of cheap wages and they try to sell back to high wage countries does not work it works the individual firm but it brings down the wife's levels over this. very simple graphic here we got a couple minutes left here is the central bank and the money is being pri

while we see no sign of inflation, paul krugman has been right on that. i think there will always be some more ability than when there is a release of animal spirits, there will be a lot of cash to bid up a lot of assets. >> how confident is the fed in this economy? >> we might see the possibility where the fed is signaling its confidence in the economy and that confidence in the economy is helping to boost financial confidence and therefore financial assets. so far it has been the failures of the confidence in the fed and economy and therefore they needed the distortions to hold of asset prices. today we see a reverse of that. it is too early to say that is the trend for 2014 but that is certainly a major change in how we see the relationship between the fed's actions and financial market performance. >> looking forward to next year, what should investors inspect -- expect? >> there was a lot of fiscal consolidation in 2013. the government probably subtracted 175 basis points from growth. next year, the number will be much smaller, perhaps 30 basis point

as economists paul krugman brilliantly points out his blog for the new york times real government spending has been in a freefall since two thousand and ten all thanks to republican driven austerity measures as crude minorites you can see that there was a brief model spurred in spend and associate with the obama stimulus but it has long since been out weighed and swapped by a collapse in spending without precedent in the last half century. much of the recent drop in real government spending is associated with a devastating sequester which republicans know is the most brutal and terrible form of austerity and the form of austerity that is most likely to destroy the economy and wreck the obama presidency and legacy. that's why conservative groups are committed to having the sequester hit americans full force and why they're now attacking fellow conservatives in washington like paul ryan who are willing to just slightly release the brake on a sturdy these conservative groups and their affiliated members in congress aren't just partisan politicians or conservative ideals it's their radicals he

still ahead, economist paul krugman, oprah, billy crystal and "breaking bad," dean norris.ou're watching "morning joe." we'll be right back. >> this is what you said in 2005 medicare and medicaid will sharply increase the deficit. the deficit may exceed 8% of the gdp in the next decade. that will make argentina a model of responsibility. >> definitely. why don't we try to argue the substance instead of playing god. the stauns. >> i'm looking at your words. >> substance. congressional budget office -- >>> wow. joe, you know i actually didn't think it was a good idea at the time but it turned out okay when you challenged a nobel prize winning economist to debate on the u.s. economy. >> those were good times. i think it was probably a safer bet than say challenging a nobel prize winning physicist. >> you did okay. you got that bright idea after -- >> in my defense because a lot of you say it's not the smartest thing to challenge a nobel prize winning economist. when i went to the university of alabama, i made it through three weeks of economics 101. >> three weeks? >> then i d

quote, this is paul krugman of the times.answer to the problem of long-term unemployment is to increase the pain of long-term unemployed. cut off benefits and they'll find jobs. how will they find jobs when there are three times as many job seekers as job vacancies? details, details. the unemployment do not -- extended unemployment insurance benefits in the most recent recession prompted some people who otherwise would have dropped out of the workforce to stay a little longer. here we go. ron, this is a basic republican argument. i'm getting back to the politics. why do they say that? why is rand paul -- i know he's an ayn rand conservative. i got to tell you, howard rourke, john gall. they wouldn't collect unemployment i guess. they're dynamos. they're titans of industry. is that where the values are coming from? >> or they're sociopaths. >> that's your reading. you're tough. anyway, what do you think is driving a guy who wants to be president to say something that's obviously going to stagger a lot of people in the middle?

paul krugman writes, this is a really huge important part of where the country is at. bottom 90% imimpoverishment reflects both a shrinking economic pie and declining share of that. inequality rising so fast, over the past six years as big a drag on american incomes as america's poor economic performance even though the years include the worst economic slump since the 1930s. what's amazing, out of the recession washington talk dominateed with deficit cutting and cutting spending and not actually addressing this thing, which is as big a drag on the economy as anything else. >> the deficit is going down at a pretty respect i believe clip. that's taking air out of that balloon. i think it has changed the conversation and helped make the opening for this kind of talk. what i would add here, though, katrina, fairness is good. i'm for fairness. we're for fairness. whether the american people at large feel extremely strongly about fairness i'm not sold on that idea. growth, though, everybody is for growth. if you can make the case, as i think obama has been making, if you can

first of all as paul krugman points out, there are three times as many job seekers as job vacancies here. in 1970 there were less than 10 average weeks of unemployment. in 2013, 36.9 weeks, that's how long the average worker is unemployed. >> i think benjamin made a great point. >> back to the founding father. >> i think what rand paul misses is that people don't stay unemployed because they are lazy, on unemployment insurance for 99 weeks, they are unemployed in part because the economy sucks and continues to suck, also because there's discrimination among employers against long-term unemployed. it's been documented. people tend to not want to hire people who have been out of work longer. it's a self-perpetuating cycle. the question becomes how do you get out of that cycle. what policies can you do to eliminate that cycle. i don't think this is a process that reverses everything but it certainly stops it from getting worse. >> it has stimulus benefits, too. >> the question is how do you pay for it, right? everything has to be paid for now. not in the past didn't always pay for unemploym

paul krugman tried to drive home this lesson in his column, saying, unemployment in today's american economy is limited by demand, not supply. businesses aren't failing to hire because they can't find willing workers. they're failing to hire because they can't find enough customers and slashing unemployment benefits, which would have the side effect of reducing incomes, and hence, consumer spending would just make the situation worse. and richard wolffe, i have not heard a conservative or a libertarian in congress address that economic principle. >> you know, this is a classic demand problem in this economy right now. it is getting better. we saw the unemployment numbers tick down and the monthly payroll numbers tick up. but, you know, it's astonishing when you look at the people who are responsible for this financial collapse, who have profited enormously from the rebound in the economy. the republican argument is that they need more money in their pockets. they don't go out and spend that money. they go out and put it into tax shelters and they go out and invest it, which is great.

another piece, paul krugman's latest.olution offered by republicans for ending long-term unemployment is to slash benefits, this will reduce consumer spending and make the situation worse. a picture of paul krugman and a quote from his story. you can read this online and in several different papers. we are taking your calls on this subject. john from watertown, new york on our line for independents. caller: good morning. i have got two comments. the first one, i have seen stories where people are getting more in unemployment benefits than they would be getting if they were in the marketplace working. with stories like that it makes me hesitant to support any extension of long-term unemployment. host: as an incentive to stay out of the workforce? caller: exactly. if i am going to sit at home and collect more money than i would if i was working, i am just going to sit home and do nothing. hear all these people complaining about how this congress is on the least productive in history. is not a bad thing to sit back and do no

and the dollar versus the yen, even though i have switched entirely to bitcoin, ben bernanke and paul krugman are still big users of the dollar and not into the digital currency. blog postposted big saying it is evil and reportedly a letter from his college roommate saying why it does not work economically. people one of the many sticking with the dollar. >> i guess there are others. >> let's look at the top three stocks that i'm keeping an i on this hour. one of them is disney, trading at a record today. analyst raised its looking at its .obust content cycle crocs as well. blackstone is buying a $200 million stake in the company. they will turn around and buy back shares with that. was supposed to be acquired by apollo tires of india. it is now canceling that acquisition, because the two parties had trouble getting financing. now they are suing each other over it. cooper was lower earlier and now it has turned higher by more than 5.5%. now onto the big story today. with six weeks to go before this sochi olympics, terrorism is casting a shadow over the winter games. at least 30 are dead after

charles, the president has been touting california as a success and so has paul krugman, california isre, it can't work anywhere. of course he's touting california. there was a piece and-- >> finley is a frequent quest. charles: they talk about ben of costa mesa, took him a couple of times to get on, one time six hours on and they have paper applications backlogged. a million people just about have lost their policies and it's not living up to the billing and here is the problem, word of mouth is what makes something like this successful ultimately and they ain't going to get it in california the way they've started. stuart: this is california. i mean, they've never seen a republican that they like since ronald reagan. charles: and never seen a tax hike they didn't like. stuart: precisely. charles: the fairness doctrine rules. stuart: i think this is an indicator. if california turns against obamacare, it can't be long before the rest of the nation really, really-- >> no doubt about it. and definitely no doubt about it. californians are the perfect test bed for this thing and it's been

we still had jerryrigged economy with way too much debt, and while we see no sign of inflation, paul krugman has been right on that, i think that there is always going to be some vulnerability that when there is a release of animal spirits, there will be a lot of cash. --there is a protection reduction for 2014 during we will continue this conversation with marshall sonnenschein -- marshall sonenshine and michael wolf. >> and that is our twitter question of the day --what's your biggest worry for 2014? i am worried about goal, but i am also worried about the employment picture. >> i am worried about what is going to happen on "kindle." -- "scandal." >> me too. >> astrazeneca targeting diabetes. astrazeneca will pay as much as $4.3 billion to take so control. myers will focus on building cancer treatment instead. onus is that citigroup will be little changed this year. bonuses at citigroup will be little changed this year. this move comes at citigroup ceo tries to reduce costs to curb shareholder pressure. and a sacred service investigating possible theft to credit card and debit eta at targe

but then you have this other economy, i think paul krugman called it the fear economy. that's true.e're whisking the safety net out from under people who are at the bottom. there's three applicants for every one job right now in this economy. it's not that people are lazy and don't look for work. they can't find work. the longer you are unemployed the harder it is to find a job. there's a lot of factors stacked against these folks. they don't have a lobby. they don't have anybody arguing for their interest. there's no cost to republicans. they can prove their cost-cutting bona fide with their people. it's a cruel way we can practice economics. >> i agree. it's really a shame. it's sad we've gotten to this point. seems like a long way away when we were talking about it a month ago. everything is going fairly well in the economy right now. there are many other indicators along with the ones you mentioned but this is it. this is it for us. jobs is going to be what's hanging us down and it's because we don't have the demand. we don't have the growth that's needed for all the thing that

maybe paul krugman and his accolades that are living in an alternative reality. maybe they think that we can bankrupt ourselves and the government can just print more money. the rest of us americans that live in the real world understand that's just not true and washington is not taking care of it. >> all of that is a subtheme to the stories that mika just read and the biggest theme involved what we just heard since 6:00 this morning, is the war within the republican party. you have a war within the republican party that is raging now -- it's a full blown war. you saw it right there in the quotes. it's basically the republican party going to become a rural regional party? that's what you get from the quotes from the conservative wing in the republican party or are they going to try to win elections? are they going to try to come not towards the middle but maintain their principles as paul ryan alluded to and win a couple of elections. >> i hate this deal. i'll be honest with you i'm not sure if i voted on this deal but no doubt paul ryan was exactly right when he