Freedom Watch: 6/17

" Joining me now here in the studio is Peter Schiff president of Euro Pacific capital well known to most viewers a regular. On freedom watch and doctor Yaron brook the president of the and ran institute how appropriate. That you two defenders of the free market should be here today -- this -- stress. And the monstrosity of which -- speak about either got a chance to look at this is just 85 page wish list. This is the -- summary from the White House working group of what it wants to become law in order for this to become law this Dutch it would probably be --"

" At that thing probably about a thousand pages which nobody in the congress will read we're probably all Democrats and -- many. Republicans will vote for yet I mean -- the whole thing is a disaster me first of all the financial service industry is already over regulated. Mean on the member Robert you know I'm on -- hiring freeze right now. I inadvertently violated rule I hired too many people and so now I've been ordered not to hire anymore who exhibited that -- And they might that is spent -- the regulatory -- exist and they're making war to regulate me. But apparently I hired too many people and now I haven't been able hire people I'm probably -- fine maybe a 100000 dollar fine because I hired too many people. But mean that the whole thing is the industry is all regular and all this is gonna do is further impede the effectiveness the efficiency and our industry. It's -- it's gonna drive down the quality of financial services and financial life and drive up the cost and pick the crazy part about this is making it fit the systemic regulator. It's the Fed and the government that create the suspects are mostly the Fed created a risk by keeping interest rates too low and now look where they are there zero. And we now we want to regulate all the companies that are too big to fail because the systemic risk. But there's only a systemic risk because the government made them too big to fail -- the government says it would fail there would be no."

" Written for a get -- doctor -- I have to follow up with this. I did not realize that you were subject to imposition of fine of this magnitude one of the unique things about you days. Sort of being a nice guy and a courageous person you know I don't understand economy you understand the constitution. Would you -- lawyers to challenge the ability of the government. Under our constitution to micromanage happens this and impose a."

" at this -- that would cost me about my past Singapore. State. I mean you don't have -- this has been -- past a week ago about tobacco. I mean when the government percent of the tobacco industry can advertise on radio and television at least they can say well these are federal Airways federal licenses. Now the government is saying. They're going to regulate a billboard. And and when the tobacco industry wants to challenge the constitutionality. They say well it's free speech well what about the fact that -- it doesn't get the governor the authority to regulate it basically in this country said that the federal government is all powerful they can do anything they want. Whatever they want there is no limitation."

" What they can spend what they can tax what they can -- there any freedom left in -- instance America wanted it compares to -- East Germany -- or -- or even to Great Britain today. But to what we grew up expecting what the founders bequeathed to us what you -- and Peter and that the people watching us now. Have come to believe was the freest place on the point well -- he moved here from Israel Simon immigrants in this country. And it's a huge disappointment because I. You know I had this image of what freedom in this country would really be an ever since I got -- came in 87 freedoms slowly. -- loading this is a process -- begin with -- begin -- It -- a hundred years ago even before that it is slow motion of real freedom of what it needs to be an individual what it means that. -- in this country that old -- Of individualism is disappearing. Is disappearing fast and this is you know this financial regulation is just a manifestation of that it's a manifestation of of we've lost what the spirit of it."

" it does -- say something about our society that. That people in the government think this is normal rather than irregular. And that the people to whom the president addressing comments earlier today probably would say well yeah government sticking -- for -- doing something -- and we felt lost sight. Of common sense and reason that we would buy this month."

" That's the whole idea but look at look at what happened from September 11 you -- you know. Things that come up you know they ought to mean and in my security firm -- you know I'm -- complying with the the and I am -- laundering -- the Mike compliant with. Of the Patriot Act correctly. There's been so much additional regulation pile on the financial services industry. As a result. Of September 11 and and and the absurdity of the situation where you can have major brokerage firms laying off people. By that thousands. Getting rewarded with billions of the -- of government money. And I have a small firm like me trying to hire some of the people there firing and then being fine from growing too."

" That. That's that's America that's America it's -- when you Simon and no way accidentally. -- to -- gotten a little trouble with one -- parents when they saw on -- nightstand I was about 1213 years old. Book called virtue of selfishness and you -- The president of the year -- that's I'm not pre Vatican two old fashioned. Traditional Catholic but I love. This book what did she mean. What do you -- when you say selfishness is a virtue and this is this is really key connecting that that the misunderstanding -- selfishness it is what self interest is is. Is what's behind all these regulations and all these -- But I name -- is that -- highest small obligation. Is to you -- life is that me you'll late yes late that it could be. So to think rationally about one of the values that I needed suit in order to be happy and successful in Canada lost but won it you know and -- That that that's so bad that rational thought that -- that -- well instead of eight convention well -- cents. Think by the first minorities that -- think of itself -- self less right batted fifth at some wild selflessness. I rejects that she says now. -- obvious taking care is so puts the responsibility we all like and happiness making a malt. Item you'll time yeah."

" On -- does this does this philosophy subsist anywhere and economic circles today. Other than among their friends and -- at the bon Macy's institute and our friends that."

" And land on that was -- unfortunately -- and it's the basis of of free market capital of the whole the whole invisible hand is based on that. Fact that when people pursue their own self interest there led by an invisible hand. To help everybody else and the people who have done the most good in his world for others are the people who. You started businesses and invented things because they wanted to get rich and they -- everybody else in the profit."

" This is this is the difference that that I knew and it will -- is different enhancement -- the conservative side it says. He should consider -- self interest because that is what morality is about. Now for the greater good now because society bitter truth society economy is good -- of cancer a massive thing right now it's. Hillary result this is a society that but absences. Assuming all self -- and I think that it has been number one thing that advocates Kaplan and a couple of we need to defend the right which are funny fathers understood it with politically. Ethnically. -- You know this is again I say it's -- you you you have a moral obligation to do what's really -- Not just eliminating fuel particulates are really want to hear what I hear that look at that look at the financial industry problem is that what we've done is we've mistake. Madoff -- self interest they just not self interest that million helpless so destructive. He this -- is don't like destroyed everything he touched. He is the exact. Opposite a truly -- of the poignancy and and that's why when we you all suffering. When we view capitalism is good he made up which the culture does unfortunately. Then that perception is no need government and the drop. And protect our strong from the press president."

" The speech he gave a few minutes ago when -- was giving his version has spent on this nonsense. Attacked executives financial executives should be angry. And that type of an attack resonates with the American public what's the answer."

" I mean but everybody's reading all the every American nobody nobody goes to work and -- to their -- I'd like a pay cut. You know I don't want all I don't want to earn as much money and rather had to give it to somebody else everybody tries to succeed everybody tries to -- As much money as they can given their abilities and talents and it. You know that that that does say some of these evil because they're reading the problem is. The reason Wall Street greed became so destructive is because of government intervention government policy. Which circumvented the free market forces and the disciplines that would have been imposed by fear. Everybody is greedy but everybody is fearful the government. Let everybody broke off into the -- governments -- the -- don't worry because we've got your back we're gonna value out we guarantee this that and we've and we are making speculation Sochi. When he's low interest rates that in the -- not to borrow money."

" I think we can finish to be -- you rational you know true -- true self interest is about long soon about rationale. But the government's books that it makes it possible to look -- them. All creates exceptional belong to and it doesn't really that's -- problem because that's all they can think it is the next election's over an hour or so shortsighted. They just estimate -- I'll leave that one of our fox producers. Show. And apparently while this -- this one liners and I said. The government knows best. The constitution be -- And there forget about rational thinking how. -- a generation of Americans. Come to this point that we believe or want to believe that the government knows best. That machine that corporate liberty which was written to restrain the government began and that rational thinking can be kicked out this isn't one -- witnesses and one theory this is a slow -- the country's moving toward. Since the progressive since taking vote on of the century. We have been moving to this point. FBI had a massive book of regulations that would suffering -- today. Cause death and -- crisis -- that was responsible for the crisis we're facing today regulations written seven years ago. As a responsible what's happening today so this isn't new this is definitely yeah it was -- glowing. And nobody challenging and I think because nobody will challenge -- what happened on an. It's called a which challenge -- populations does that tell --"

" Hired to be bought -- wanted to get them drop -- We thank -- all excited -- is that an American corn when there's a lot more justices don't expect from the law and the problem is we passed. Huge regulations the regulations create problems and and the solution is never too little real regulation but we -- even more. Mean Bernie Madoff happen right under the the SEC had been auditing certificates meanwhile look at all the lousy investment advice -- all the people lost. Tons of money in the dot com some people were steered into auction rate preferred that sub prime mortgages. All of this -- highly regulated industry more regulation is not the answer it's less because we need individuals. A to regulate the market obviously they need more people looking out for themselves is that an apt negating that -- the government."

" One thing the government needs to do is protect individual rights that's the one responsible that don't have legitimate part already the going to function FCC should have effective organization should even exist. Is to find the building me up and put them in jail. Instead of that is so busy with fifteen -- in fifteen absent. And going have come off cool but it won't supposedly exciting treating all that nonsense that they can't see a book. Who. You know they got a whole memo from a hedge fund guy telling them in the exit. Italy and what's this guy -- running at them it's gonna put your mind that what -- Basra. Is this hopeless. No it's not hopeless and and that's a positive signs that facility and more people speaking up ever hopeful is -- more people understand what's going on and give. And you know. I and I -- student atlas shrugged it's selling like hotcakes right now man it is -- with the best you ever felt from which -- about it that -- you'll book. So without -- yeah as long as an added to applause so 200000 copies that left in this area. 2000 after this yet it's -- at a rate of 600000. That is its triple last gives -- if we can -- 600000 copies of anguish to a in the books those not. Copies I'm handing out of anything that looks though right this hope -- look at this. Because of the problems we put together we have a million kids a million kids in the year high school -- nine man as part of me is English. Curricula to I think if you rejecting -- out fifteen point he has now it's real hope thoughts on -- of the best."

" Do you see any hope -- policies not Ron Paul sees this thing. Passing through the house with our debate and each side that the most fundamental change in the economy and seventy years at a probably happened in the Senate with a little bit more debate but they'll figure -- ahead of time what that animal for. Do you see any hope amongst -- with whom you associate. The free market corners of the earth."

" Well I mean there's always hope the question is you know how -- lot what are the odds here you know how rational is it. Unfortunately. It's a slim chance I mean it's not -- zero chance that we can you don't get the government. To turn on a -- to do 180 and and change these destructive policies. But unfortunately the situation have right now is the more damage the government does to the economy. The more power they're -- are you sir. The more regulations they passed the more damage they do. And and they're going to drive this economy into the ground and we're gonna suffer an inflationary depression and that is going to make anything that we've experience in this country before a look."

" if you could change anything with the stroke of -- what would it be. To make us more free. -- too much."

" A lot of throughout. Like the and I like to abolish the income -- and the -- the payroll taxes. Aren't taxes. You know maybe maybe try to abolish that the commerce clause in the constitution and has been so distorted or at least at -- I mean."

" Now those things and you review written in the constitution separate I think ultimately it's separation of state -- economics. But at its public spending I think the essence suspending her taxes and -- evidently she cut government I would slash all government spending. But by 10% well yet and that we would get under the commerce clause and potentially get rid of all because that's -- justify all the time."

" CE commerce -- has a clause in the constitution which grants to congress. Explicit authority. To regulate interstate commerce and -- of course that was written regulate meant to keep regular that is to make sure that the states to impose tariffs of money truck so if you want to go from New York to New Jersey with some fruit in the back of your -- have to pay tax for the privilege of entering into -- Congress has taken the -- regularly -- mean. Control in any way possible and of course control the way it's been manufactured patrol what the prices control the wages of the people produce it. And -- court to let them."

" And -- Paxson and and and do whatever they want and also the same thing within into the general welfare clause -- it now means that the government can do whatever it wants. So -- there's -- constitution of the -- we become a democracy very sorry to say sorry to say that I agree with the and we -- democracy 51% of people want to turn my house into basketball court Vick. The fact is that almost no individual -- and effective. That there -- politics that he defending individual it's that people about statements this right. That essence is individual rights and we use but -- any individual right. That's what makes this currency that's what makes this country -- and other countries will at bat. -- lemon at the stuff -- alcohol. Well I did not involve only a couple of dozen folks like him all we need to isolated power movement to borrow money. In addition the -- duck congress to borrow money -- borrow money but we're talking about taking with our Defense Department I could not agree more. And that and that congress want to get the power to regulate mine. I might not treasury where everybody -- were big country -- the government want the papers something. Raise taxes it is competent solid point -- to be funded and I don't like this idea they'll always -- to -- war making investments in the future and therefore we -- well why can't we make -- market that something is so important. Why can't we give it -- our children free of that why -- have to borrow so much money and then and now -- paid for over and over and over again. Out with the interest Iran and give us were well I mean it's only the word hope. I mean I think as long tunnel might think that really is a movement. In this country Fed up Fed up with both Democrats and Republicans Fed up. With a -- the government Fed up with the intrusion of government every aspect of life and -- Who -- definitively that he techniques they get going with it that we hopeful in the eighties -- all out to come up with a plan. How -- phased out the Federal Reserve System how to weed these out to security it doesn't need more monitoring that I don't want -- monitoring the fat but -- it needs is to be abolished and find -- but without replacing -- something -- now and leaving the private banking leaving -- to what we have before making the team we get it -- A phenomenal financially it's the funny and it will. -- 1913 only problem that has yet state regulations -- you go with what it that we need us thought we you have a program. Phasing out all these government controls. Instead of exact opposite which you haven't but you're you're on -- the president of the and Rand institute my good -- leadership president Europe's in the capital thanks very much thanks very cute very lively and for that conversation."