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Forbes Media Chairman Steve Forbes discusses whether the Fed’s continued money printing will help the economy.
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Joining us now is Steve false.
We're not expecting a particularly good number on GDP tomorrow we're looking fell less than one and a half percent to -- I think that's gonna be accurate and what it shows as the economy is like that car on the super highway were gone about 2530 miles an hour.
Who should be going seventy miles an hour and almost -- and we can go hundred miles an hour.
So this is sub par economy -- that's a good analogy unit.
I keep thinking that if America took the right policy moves -- -- -- could lead everybody else out of a grim economic situation.
We could -- we cut and we saw that in the eighty's and ninety's when we are sluggish and then we -- the world and world follow our example when Reagan cut taxes in the early eighties.
Within years fifty countries around the world -- substantial tax cuts so we get it right the rest the world has a chance to get right but where in the tank.
-- the world's in trouble too now Ben Bernanke we he yeah.
May stimulate.
Fed stimulation -- keep interest rates weigh down on pump out some more cheap money you think that helps.
Well prescriptions don't work the patient still stay sick and Ben Bernanke still applies provides the same Madison.
Medicine get sued for malpractice and Washington they have he's a genius from Wall Street thinks you're great.
It's not gonna work he's distorted the -- attacks I mean the credit structure in this country subsidizing government debt.
Making less credit available for small and medium sized businesses that's rather perverse but why doesn't it look classic theory issue you may have monopoly classic fifty good look at the classic point of view is yup pump out a lot of money stick it into the banks.
They'll lend -- -- and up goes the economy.
Why hasn't it happened.
Well when you have a massive regulations when you Havoc perverted tax code the prospect of new taxes come in and and what does the spending money come from Stewart the spending money comes from the -- either through taxing borrowing or printing money which is another form of taxation.
So were the money stays on whatever ever it is stays on the sideline.
And you make -- -- today.
You've got Europe gone in the tank but you make alone in this country today at a bank you still have to papered over six times over the regulators are gonna put you through the third degree on it.
So yes loans of increase but not at the pace they should.
And in Europe with a bloated banking sector huge -- bigger than ours proportionately.
In the tank I mean.
Why even invest in environment like that well hold on a second can we show the Dow Jones Industrial Average as of right now please -- invest the -- and us rose 235.
Points higher.
-- I believe is largely because.
I'm not a broadly and the Central Bank -- drown in Europe and says within -- defending Europe.
That may need printing -- ton of money so Wall Street approves a printing money over that might well.
Look at look at not over though -- one -- slowing and Wall Street look at the trend line.
The -- Stocks today equities today are lower today in real terms than they were fifteen years ago even though the economy still substantially larger and got a whole bunch of new technology.
And what you see in Europe Europe is doing what they did in the seventies even more in the early 1930s.
And that is they are.
Piling on taxes on the private sector not making structural changes -- those economies can grow.
Greece for example spent more on the first five months of this year the government than it did last year.
So much for all this talk crunch that is actually right they spent more money.
All this talk of austerity Spain raised their top income tax rate to 52%.
They're raising their.
Value added tax Italians are doing the same thing.
Greece piling on new taxes by -- should look at Greece.
Neighboring Albania and Bulgaria they put in 10% flat tax is a couple of years few years ago those economies are growing well Greece is tanking.
What don't these guys -- can you deal with this in thirty seconds.
The polls show President Obama.
In the lead against Mitt Romney just might -- lousy economy to split that the key is is he below 50% we don't know Romney most voters don't know Romney they do know President Obama he stuck a 4445%.
That at this stage is a disaster especially -- a -- a hundred million dollars trashing Romney.
Obama still can't get near 50% that's bad news for the White House whatever spin they want -- -- not bad at all always good to see used to to see you say.
