• With: Charles Payne, Ben Stein, Dagen McDowell, Charlie Gasparino, Adam Lashinsky

    DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.

    MORE COMPANIES FEELING THE PINCH FROM HIGHER PRICES?

    CHARLES PAYNE: I don't think the government doesn't believe there is not inflation. The bottom line with the government is you have two things. There fiscal monetary policy. President Obama has already said listen prices necessarily have to higher with energy. Ben Bernaki's goal is to inflate, inflate, and inflate. At some point the cycle. They know they hide it but they have an agenda and both sides of the equation that control all of this are determined to push their agenda.

    BEN STEIN: Well the government has a different way of counting inflation than you and me. If we go to the store and see higher prices we say higher inflation. If we go get a house or apartment for our son we say higher inflation. The government has all sorts of ways of saying no it's not inflation. I've seen this in action for myself over many many many years but of course there is inflation and what we really have is stag flation and its going to get a lot worse because there is a huge bump in the money supply caused in the last few years by mr. bernaki when that starts getting spread around like velocity increases when the whole economy revives we could see a serious serious bout of inflation.

    DAGEN MCDOWELL: That's what Ben Bernacki is worried about. He has to go out there and cover his eyes and say he doesn't see any inflation cause he's trying to tamp down those expectations. What Ben was saying if companies and consumers think inflation is coming down the road they will change their behavior today that actually creates more inflation like raising prices in the pipeline to ensure that their margins don't get squeezed because prices go up in the future. So we could be in the beginning of a very dangerous cycle.

    CHARLIE GASPARINO: Think about why he's doing what he is doing, Ben Bernaki. All this comes back to zero percent interest rates. He's worrying about the bankers sector still and worrying about the economy still. He would rather a wealth effect of people buying stocks and the economy getting better and risk inflation there is no doubt about that. It all comes down to zero percent interest rates and you know what that's why people are buying commodities. That's why food prices are going up that's why gas prices are going up. I don't think zero percent interest rates are going to last forever. I would rather see a little inflation than a depression.

    ADAM LASHINSKY: I think Charlie is starting to get at it. Low interest rates are part of it. The other thing is where we are not seeing inflation is in wages. Remember, we still have high unemployment. Employers are not having to raise wages for their employees right now and by the way this is not remotely a political issue or an ideological conspiracy here. Bernaki is not trying to work any schemes; government isn't trying to hide anything from us.

    NEW WEB VIDEO SLAMMING REP RYAN'S 2013 BUDGET PLAN

    CHARLES PAYNE: The same arguments the same sort of stuff, to your point it was already made before the plan even came out. The plan was given no consideration. We are over one thousand days without a federal budget. You know at some point, someone mentioned the only adult in the room in the other segment at some point someone is going to have to step up on Capitol Hill.

    BEN STEIN: That is exactly right. Look we are staring default in the face. This country cannot keep up the same fiscal policy that we are keeping up with now. We are going to default eventually and it will be very very hard times. What's happening in Greece with the real hardship there is going to happen here. We have got to have a brave man who steps up and has a plan to avoid default. I think Representative Ryan deserves kudos in a huge way.

    ADAM LASHINSKY: Well, I just want to say I am shocked and appalled that somebody made a hard-hitting political ad that was not nice to some of the people in the political arena. Come on, everybody this happens all the time the democrats have been bad at it for years trying to play catch up with the republicans so we should pat them on the back for coming back. I would amend something that you said that nothing gets done in Washington; nothing gets done in Washington in an election year. I also applaud congressman Ryan for putting his plan out there to be brutally shot down so we can discuss it in the campaign and something will happen on this next year, I promise you.

    DAGEN MCDOWELL: It's up to the American people whether they want to read this Ryan plan and hear the cold hard facts and then decide they are going to get behind somebody who will do something about it and beyond that it opens the debate about what is role of government what is the social contract in this country. Ultimately as a nation we've got to decide that.

    CHARLIE GASPARINO: I will say this. As an ad I don't think it was particularly effective. I was kind of distracted by the Weekend at Bernie's and the guy's faces all this stupid stuff. Paul Ryan is a very effective guy. You have to ask why did Romney step up to the plate and endorse this plan. Paul Ryan has got to be, if he is the nominee he is going to play some role, VP maybe, treasurer If he wins I think that is pretty interesting. The other thing that is fascinating is if you look at the Ryan plan it's not all that radical, we are not bouncing the budget tomorrow.

    ILLINOIS SELLING LOTTERY TICKETS ONLINE... CREDIT CARDS ACCEPTED

    BEN STEIN: It's shockingly irresponsible. It stokes the gambling addiction that is in so many Americans and so many people everywhere. What is next? Is the government going to have online Texas Hold'Em with the state getting a piece of the pot? Are they going to have online pornography with the state getting a piece of the pie? This is a really really obscenely bad idea of course we didn't need more money for state governments to allow people to go bankrupt to use up all the money they need for food or rent on gambling online. It's extremely irresponsible.

    DAGEN MCDOWELL: I hate it. It's a regressive tax. By the way you're probably going to end up being able to buy lottery tickets in the back of a taxi cab with a credit card because these states are desperate but again it hits the absolutely wrong people.

    CHARLIE GASPARINO: I can't get that excited about it. I mean there is a degree of personal responsibility. Banks extend credit cards to people that have credit that will pay them back theoretically. The libertarian in me says, if you/re going to go there, go there it's your business.

    CHARLES PAYNE: This is all about a gutless government. Ben said it best, these guys can not stop their desire to spend spend spend and they don't care where they get the money from.

    ADAM LASHINSKY: I think I am the only son of the land of Lincoln here. I agree with everybody except for Charlie. It's not only a regressive tax Dagen, it's a coward's tax. The leaders who do this are afraid to tax the people who they should be taxing.

    BEST FUNDS TO BUY RIGHT NOW

    CHARLES PAYNE: Power shares water fund (PIO) I think it has tremendous short and long term potential.

    ADAM LASHINSKY: I like Vanguard growth fund (VDIGX) Apple just started paying a dividend. I fundamentally believe Neil that investing should be boring. If you want excitement go to a show.

    BEN STEIN: I love them both. I would go with Taiwan. (EWT) They are on fire in terms of exports, I love it.