This transcript is automatically generated
More of but that does not mean there's not going to be more spending of that country to was sort of forces that we hope and the president said today.
We will Foster and be loyal to us Thomas all the best selling author columnist commentator with us now.
Is that a mistake what do you think provides.
I don't know live via the idea of writing blank checks from new government does not have a lot of -- very.
A one of the great fallacies of the twentieth century repeated again and again is if you have a bad government and they get -- were -- that means you'll get a better government.
When there should laws were overthrown the Communist succeeded them.
The Communist kill more people in one day than that laws that killed and fifty years.
When the -- the government -- -- with relative two a bad government.
But taste it looked like a sweetheart compared to what has happened on the Castro.
You don't go around the world are you it could be worse.
All of the -- I -- still remember though there although the campaigns against the Shaw of Iran was Charlotte Turbo fellow He was.
Well the Shah of Iran wasn't trying to get nuclear weapons and wipe out Israel for God's sakes and -- I mean He look like the Pope in retrospect.
All -- just -- was here not too long ago -- are saying.
You know the I wouldn't give another advantage of that region to trends -- in the Middle East the troops all around the world that we have 50000 strong in South Korea.
About that in Germany why are they there what are we proving with them there.
What say you.
I say the same thing that when you lit take away people's responsibility to defend themselves.
There than they didn't they not only can not -- cut their defense budgets they can also come to believe that there are no great dangerous because you're -- that -- ward off the dangerous for them they don't raise.
Are the Euro -- always been the domino -- right I mean even though.
Proven Paulson and risky in the past that is if if we let bad guys throw -- they'll just keep getting through.
If Germany and France with all the money they have cannot be bought that the put it -- -- between themselves -- the Russians.
Then -- that's that's.
Of that of that that's their problem.
-- We're looking at another recession this fall according to one very influential economic group.
It might be just a matter semantics a lot of folks who argue we never got to last month.
But that hearkens back to basic question whether this country as we know it.
Is is in deep trouble and and may be past its prime but He said.
I don't in the country's best is prime.
I think we have people and an administration in Washington that simply cannot leave the economy alone.
All I saw Wall Street Journal.
Headlines just this week how there's a new plan on mortgages.
I don't know hard you think you're encouraging people to lend money if you're constantly coming up with -- reasons why people shouldn't have to pay the back.
What but know what what will the new wrinkle in some of these new plans that -- promises that they would not.
These shrinking or forcing the banks to shrink the principal does take it available advantage of market rates so that.
Even if you're under water you can at least take advantage of those.
Low rates without having your principal.
Cut and -- which has been a long time and enough for the -- Well -- if if if the government to come in and change the terms of private contracts.
That's a reason why people will be reluctant to make private contracts.
And why they may send their money to countries where the government is not so go unnoticed up in.
And stop you from being back what they -- Wary and that.
We're we're into -- We go too much fourteen trillion dollars in debt we're talking about whatever it.
Plan to curb it is just going to shrink how much it's going to grow it's still gonna grow another nine trillion over that ten years even with the most audacious plan.
We're in so deep we would we would need like a a tractor trailer to get out and we don't have.
Well I I think that.
Not about that we've been in some pretty bids by us before -- the Great Depression of the nineteen there is no picnic.
Volatile organic -- -- -- -- -- already are really quite right you know -- goddess I don't know.
Excuse -- a war got to -- well that that that's a lot law along stories yeah but.
If you if you need more revenue.
One of the ways of getting it is to cut tax rates with a tax rates were cut the twenties the government got more revenue.
That's why the secretary of the treasury was for it.
Solid and that -- that was the only time where that's happened the Internet -- -- ratings.
FDR raise taxes on the on the on the very rich Bill Clinton raise -- on the -- and and they could argue.
-- that it helps.
-- All a bit of a study has been done of the Great Depression published in the 2004.
And the conclusion was that -- government policies prolong the Great Depression by several years.
We will we be seeing another Great Depression I mean Harvey dent all these -- -- envisions such a scenario -- -- I would say not but -- what I think that if Obama gets reelected and that's what -- twelve and has.
The -- a majority in congress that He had before.
I've been willing to say we're we're.
Very likely to have a and other Great Depression.
Because there they're going to follow the same kinds of policy they've always followed.
That they really have no option to change those policies to turn around and say we're gonna stop doing all these things is a say these things were -- Well I don't think Noual I got a hold political career at a -- space erratic column years recent grants are don't have where you where it was but.
You said about this dependency what -- breed these they -- it's usually translates into votes.
For whoever is handing out the benefits of an economic does that -- can be a political bonanza.
As it was for Franklin Roosevelt so don't count Obama now.
In 2012 what -- scary professors that has been my argument.
That that that the president can benefit from an entrenched -- of of of of voters who benefited from him.
Oh absolutely -- Franklin D.
Roosevelt prove that if you the unemployment and there were on the Roosevelt.
In his first two terms in office never got as low as it is now much of social -- He succeeded to get reelected and reelected.
All with a you know worst.
Economic -- to them Barack Obama.
I don't think that the -- and its French grew -- president nearly have to pay no we've got Texas country but that's a base that's going to be fairly loyal.
-- this president so there's there's very few others yes to pick off.
Well the ones who are even more loyal of those who who have been ruined and who have who are now dependent on the government to rescue them.
It doesn't matter that the government's policy where with a was a big -- of -- being ruined because that requires a lot more thought.
Than the fact that you were given a government job where you were -- a government contract and so forth which is much more direct and much more easy to understand.
Do you think the president will be reelected.
I feared He might.