Fit to Print?

" and -- there's a nomination for -- a state of New Hampshire New Hampshire of all places. Is guaranteeing part of a loan to a local newspaper the Claremont eagle times. His New Hampshire attorney that's a problem death by bailing out newspapers joining me on this and other economic news are Jeffrey -- and senior economics lecturer at Harvard University John Tammany. Editor of real clear markets and doctor Harry -- Weiner professor of philosophy at the inland. Institute objective is academic center gentleman. Welcome to the Glenn Beck program. Jeff first EO. Since you're the closest in proximity to New Hampshire right now. Isn't this the place whose license plate motto is live free or die. Isn't this the state we don't have to wear a seat prompting a car and get -- to wear a helmet on your motorcycle. So much do they believe in individual liberty. Are they now actually going to guarantee the loans of a private business a news paper for their good reader is."

" Apparently they are it's just unbelievably outrageous of course the government should be in the position of guaranteeing any loans to any private company for whatever reason whatever line of business. But it's just especially egregious if it's for a newspaper as part of the media because that just -- control that means the government now have a lover. To control what's reported about their actions. That's clearly the road to --"

" John what -- tell -- Happens when a government. Bails out a dying business what what happens to borrow money that goes into that business where does that come from -- How might it otherwise be used. But I think that's the essential point bailouts are all about capital which is human and physical -- government bails out a dying business what it does. It's keeps assets of heat human physical nature locked up and under failed managers rather than getting them. To -- commanders would get ideas about how to deploy them and so the question is always going to be. What sort of interest in businesses will we lose for propping up those that can no longer remain profitable private."

" Investors. You know the other fear that I have about a billion and newspaper. Doctor been flying there. Jeff -- just mentioned that is the control of the editorial process. I mean our government bailed out these banks and suddenly decided after the bailout funds were spent by the way. We want to control the salary severe executives will want to control the contracts you enter into. We want to control the investment you make how about. We want to control the politicians you will endorse in your editorial since we're now paying for the ink and paper."

" And what is the paper going to come out for when there -- a race against a politician who favors their subsidy and one who opposes it. When she accept money from the godfather you're in this debt. And I thought we learned that from the bank bailouts were in the banks were being dictated to so much that they rushed to pay back the money they were alone. Because they saw -- federal control just why."

" I want a newspaper even want the government's money wouldn't it fear that the government would do to get. What that treasury and the FDIC have been doing to the banks that took the TARP funds."

" It should fear that but I guess they just feel they have no choice because they're about to go under without these loans and may also be a paper that -- in the direction of big government -- so they don't see. All the negatives associated with feeding at the same trough that -- allegedly supposed to be critical lot of skeptical of in your professional activities."

" John just switching gears the government has used the mantra of too big to fail AIG too big to fail we have the ballot out. Goldman Sachs we have to give up money Citibank we have to get that money. This Mon -- has led to the idea among certain members suddenly house financial services committee. That big companies should be cut up into small companies. Does the federal government actually have such an ignorance of basic economics that it would think that they can do that."

" It that most definitely does and it's fascinating the idea that the banking industry was already so regulated and none of these bureaucrats had a clue about the problems within them. It's the idea that they now have a hot line in the future of such a way that they can know the proper size of banks. It's just too silly to consider. If these people have these sorts of skills. They're not be taking government paid they'd be in the private sector and be billionaire investors is these are things that investors get paid a lot of money to figure out. And we found over the past few years that even they aren't that get a."

" Doctor -- wonder if they government starts to break up banks. If the government starts to break up businesses and make big business a small. What all the natural result of that city where well investor dollars go where wolf the people who run those businesses go and where will the customers who. Were acquired the goods and services from those businesses go."

" Abroad. Don't go to their remaining islands of freedom if there are any such in the world. Because money needs to make money you can't accept a lower rate of interest. Then you could make on the free market you're just losing out so those funds that capital will go to any country that offers more economic freedom and --"

" Jeff your colleagues sent of the economics department at Harvard and you'll feel much cheer them. Banter about and talk about this what what is even the earth theory as to how this can work I don't even expect that it would work."

" I don't think they all expect that it will work I think there's a lot of skepticism amongst most academic economists that. More regulation is gonna be useful we you know congress generally are skeptical that. You can get people who do things that they don't wanna do that's what's regulation is about it sets up all sorts of unintended consequences. And issues Greg recognition that all the regulation we had in place could have stopped some of the things which happen we shouldn't have happened excessive leverage. But there wasn't the will to do it and so more regulation is not gonna change that is just rearranging the deck chairs on the Titanic."

" John the employment rate is now ten point 2% it's a very very. A bad mark. For the people in the government who say that -- stimulus stuff is working how to explain unemployment going up after they've been spending billions."

" There explanation is that they're not spending enough which is just absurd -- stimulus rewards the and the one at the expense of the productive. But I think the major thing that we need to think about here is that there are no jobs without investment. And the problem right now with the dollar collapsing with a -- haven't reached 1100 dollars an ounce is that the dollar's weakening enormously and when you weaken the dollar. You necessarily drive investment away from wage creating new industries and hard unproductive assets. So everything the government stealing from corporate bailouts to stimulus. Too weak dollar policies is that it's all anti job and so I don't think we should be surprised that the unemployment rate is presently --"

" Doctor -- Wenger let's see deep recession ten point 2% unemployment thirteen trillion in debt. And the government wants to head you were here during the earlier part of the show another sure alien. In health care unfunded health care. To this mess. W and understand economics -- want."

" Now people don't understand that the government has no money of its own to give. Away when he gives away things sink gets the wealth that it gives away either from taxation. Work from printing money in effect. Counterfeiting their own currency. The latter is what we're doing taxes have not been going up so far so they've been financing the giveaways. Cash to clunker is. Bailouts to banks everything has been financed by printing new money and that's driving up gold driving down the --"

" Sunday all of that has to be paid back Jeff Miller and John Tammy professor Harry -- thanks very much."