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Which nobody can -- you think that -- all laugh out is the former economic advisor to President Reagan He is with us on the phone and -- are at odds are no you where -- I want you to listen to this from your former boss was not.
Are critics charge that letting you keep more of your earnings would trigger an inflationary explosion.
Send interest rates soaring and destroy our economy.
Well we cut your tax rates anyway by nearly 25%.
And what that helped trigger was falling inflation falling interest rates and the strongest economic expansion in thirty years.
All right arts -- -- you on the phone I -- posing the question.
What gets is count all of this economic mess and I know you're gonna say exactly what Ronald Reagan said -- lower tax rates.
Increase revenue to the federal government.
The you don't expect that to happen with President Obama now do you.
No I don't and you know -- this spending is out of control here is as it -- never had been before and you know first things first we gotta get rid of obamacare Stewart.
You know is that you've got a couple of other bills that should be done but He got the Ryan bill and.
But you know we look at -- -- don't -- I'm I'm I'm looking for how we get out of this mess.
-- within the next six months -- the next nine months.
So that's not gonna happen -- the political process now and we're in the middle of a political battle of gigantic proportion of the state level and at the federal level and you know we're gonna have -- a judgment passed in November of 2012 and then.
And only then do I think you can really do a comprehensive plan but what you need to do is get low rate flat tax.
A regulatory reform and free trade well that's always is the solution.
The economic growth and I'm with -- one way on that I again I have to say that is not gonna happen any time soon so don't absence of that.
-- you -- with flat out going into recession is no way out.
Well I don't know we've ever come out of recession Stewart -- and disability most anemic Recovery.
-- ever since the Great Depression.
And I don't think we're coming out of all of the policies that are in -- -- do not -- -- economic growth.
They just drive a wedge between wages paid in wages are made and to make it very unattractive for firms the higher -- and it make it very unattractive for workers to work.
And as long -- those policies are in place.
It is just not gonna get better -- All right if it's not gonna get bad does it get a lot Lois I mean all we get us you're an economist I I want to flat out statement all -- going into a fresh recession is this economy.
Got a contract.
Get small law for two consecutive quarters.
I have no idea whether that's gonna happen or not but there is no strong growth coming whatsoever.
And in the next year and a half you will not see this economy improving substantially.
So we're going to have 9% unemployment well into next year.
I would get something along that line.
You're gonna have very slow growth in the real economy because there's no instead of out there to -- -- Now again I know that you don't give investment advice don't look at -- I understand that and I know I know you don't not trying to make you do it but I'm asking about the price of gold.
I'm gonna go through the roof is -- gonna continue off.
Well let me just say they've told us this rise in the price of gold is the biggest harbinger of horrible things to come because gold is the first -- of the caution.
Whether it be taxes inflation depression -- wore gold always does well when things are bad.
And that is exactly what's happening right now it is the worst thing that this is -- could possibly imagine happening.
Well look I'm I'm trying to I'm a trying to force you into sort of sort of -- -- front -- right now going up yes I think it probably well.
OK now -- risk and what -- school the chances the odds of a deep correction.
I don't think there's a depression come.
I really don't but I don't see any recovery coming -- Stewart.
And it's going to be just as bad -- is now -- these policies in place.
If we had done straight increases that Obama wanted some of the other one.
Yeah it it could've turned into a depression because literally during the Great Depression they raise tax rates dramatically.
-- from January 1 1932 they raise the highest tax rate from 25% to 63%.
And on January 1 1936.
They raise the highest tax rate of 63%.
On up 3%.
That is why the depression with a long and as deep as that was we have not done that.
But we've done all -- spending mistakes possible all the monetary mistakes possible.
And that's just gonna keep but in this horrible plateau.
For quite a while until an election occurred certainly did it change your don't get it -- All right art -- I'm gonna say it is always a pleasure to talk to you no matter what you've got to say it's a pleasure to have you know they'll be very electorate I pleasure for me.
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