Also in this playlist...
This transcript is automatically generated
Tomorrow Ben Bernanke will be making what some are calling the Fed chairman's most important speech on the economy -- end of the financial crisis on our next guest says you shouldn't even pay attention because.
He says not only is the -- incapable.
Of reviving the struggling economy -- should be abolished altogether.
-- -- Freedom Foundation president Jacob -- Borger joining us now.
Isn't it you know like I can be somewhat sympathetic to your views but.
Doesn't there come a point if you have a banking system where you need to land.
-- of last resort.
Absolutely not we lived without a Federal Reserve for a hundred years so.
We've lived with this thing now for almost a hundred years.
And knowledge has done it just make things much worse.
It sources say is that probably the greatest threat or maybe the second greatest threat to the freedom and well being of the American people.
It -- nights -- booms and busts like the housing cycle we're better off to -- the market handle these things David.
Your ticket is what your biggest complaints about the Fed is like for example Alan Greenspan had said.
The Federal Reserve cannot spot cannot spot a ballooning at that bubbles but sure enough when one has floated the eight minute bursts.
They'd -- another one to fix it.
-- exactly what they're doing now -- -- they they did it with the housing market.
They wanted everybody to buy a home so they lower interest rates artificially.
This sends out false signals to investors to builders.
They think there's enough capital enough income to satisfy this this and demand and supply.
All of a sudden a few years down on the bubble bursts.
All of the -- allocations of capital become -- parent and what do they do.
They start going to start the whole thing over again that's what they're doing now flooding the the market with liquidity again start the cycle all over again and we can see that being factored in the gold market yeah.
Yeah I think economists said Miller Freeman said he just replace the Federal Reserve at the computer right did -- -- you know some people though would think.
Friedman's idea and Jacob -- -- -- may be pretty extreme but we're gonna bring -- -- Bulls and Bears -- special bulls and their.
Sentence first you get rid of -- there's a simple idea here as a country you were -- a few hundred years ago.
We have to we made up our minds not to be a mom -- -- first.
We also decided somehow we fell into it into becoming capitalist society.
Which is you live and die by -- own means things just you know if you're as good as what the public -- supply and demand.
Somewhere along the lines it's well intentioned.
A form of socialism got in there.
A form of taking care of people and believing that politics as -- with make a long story short.
We have to decide as a country if we want to be a capital society or not.
Halfway measures don't work.
The the United States government well intentioned though -- is has gotten us into the biggest mess we're trillion something like ten trillion.
In debt that will never repay about Social Security is insolvent.
But by the way.
I believe in the future of America I'm buying all kinds of things how the dollars under 101000.
It's a great time for buyers but it's unfortunate that it's so bad for the masses.
It incidentally I agreed with almost everything you said -- Ben Bernanke should be fired and politics and I impeachment over -- -- Scott -- do you think it we should get rid of the fat.
You -- you know why the reason you can't is there's too much skin in the game I mean you look at the mortgage is alone if that is playing around.
With a multi trillion dollar portion of our economy with -- the Fannie and Freddie and whatnot involvement they have now so.
I think it's a bad idea to get rid of them I don't think they've got a great job in fact that everybody out there wants to read something really hilarious and kind of sat at the same time.
Look at Bernanke's comments back in 05 what you think the other.
Guess referred feel completely oblivious towards the housing situation I think is the problem in that has -- -- is referring to is that.
Feds seem to get caught up in a market excitement just like everybody else does and that's something they shouldn't do they -- make it up personally do -- excitement thing.
At least cut back on some of the duties that it has some would say usurped over the past couple years like for example.
I'll be in charge of this too big to fail like for example providing a pipeline for anybody wants to call themselves -- bank.
It exactly David your mind reader you know when the Fed was created in 1913.
Expressly for the for the reason to prevent bank panics -- take have lender of last resort kind of like a big insurance company if you -- I think.
That you know.
Place for them is perfect what I think everyone is arguing shake -- mostly.
Is when the Fed has gotten more and more and more into a monetary policy.
Trying to deflate bubbles trying to just pick up the economy.
Be a low interest rates like it did it and then 1987.
In the past for years.
That's where it gets into trouble when they -- be Oracle's if you will and kind of micro manage where we're going as an economy.
That's the problem and they are I think in -- most people would think by -- that's probably 90% of what the Fed does these days I don't know if that's true.
But that's certainly the part I'd like to see eliminate Karen what do you think.
Well I think that before we have the Fed instituted.
In 1913 in the we -- about 30000 different types of currency we at constant runs on the bank.
And if we were to get rid of the -- it would take just one run on the banks for people to be demanding it back it plays a key role.
In maintaining stability and also right now with Fannie and Freddie.
Pumping liquidity into an otherwise bone -- market and in the mortgage crisis is actually far worse.
Then what is showing up right now banks are sitting on tens of thousands of foreclosures.
They're not kicking people out because they don't want the fees from them being empty and they don't want to show the losses.
So the -- right now is propping us up more than we know it's.
Actually true that situation is is worse than it looks now but Jacob what about the idea -- Competing currencies we did have at least the Fed does keep us on one currency is not a good thing.
Absolutely not I mean -- talked about capitalism in the free market.
And and -- you couldn't find a better example of socialistic central planning in the Federal Reserve.
He -- a small body of people.
Purported to have the knowledge the expertise to plan the monetary affairs the Rodham endless supply of money the Rodham and I demand the money.
For hundreds of millions of people what -- I'm amazed that and without anybody -- without it.
I'm so sorry without getting into an area of fear -- just want to communicate to people and straight people language and believe in America.
Social Security is insolvent.
Believe in capitalism.
Let private entities come in and start to run the government as a business.
Make some hard decisions it's gonna hurt and yes.
-- yeah I'm sorry mister -- I would have to disagree with you there.
-- putting faith and trust in amoral institutions.
Who caused this crime -- government just -- -- I don't they are flawed.
But their goal is to help the American public at least they have apple corporation.
Yeah I'd say -- there's no regrets it certainly is not only did caution for bad behavior in business you can be sue Myers none of them out there -- -- for bad behavior so all out so they -- out the Fed chair says so what so they go back to -- 100000 -- million dollar home and I got impeached in business you can be sued.
There is real skin in the game that's why if politicians were held accountable like businesspeople.
They could find their -- in jail next -- -- -- they're instead of going home to vote on the outskirts of Washington DC I was in --
Filter by section