Debt is the Problem

FED continues to create a destructive environment for small banks

Dr. Bob Swarup from Camdor Global and author of the book Money Mania: Booms, Panics, and Busts from Ancient Rome to the Great Meltdown joins Bubba for the day to discuss everything from the FED to the banking crisis and all of the bs in between. Bubba and Bob start out talking about Deutsche Bank and the likelihood that Germany may have hoodwinked the US Justice system by forcing them to lower the fines.

Bubba asks Bob about the never-ending too-big-to-fail. Bob explains that debt is the problem and until the debt is forgiven, it will continue to weigh heavy on the overall economy. Bubba is worried about the lack of competition and asks Bob why the FED continues to create a destructive environment for small banks. Bob feels that this is part of the master plan of the big banks, making the entry level almost impossible.

Dr. Bob and Bubba take on the lousy jobs situation, not just in the US, but globally jobs remain dismal. Bubba asks Bob why the powers that be believe that a higher minimum wage will improve the economy when it has been proven that the forced minimum wage will actually cost jobs and create more unemployed. Bob agrees and brings to light the fact that economists are more worried about their status than the actual state of the economy.

As the show concludes, Bubba has two final questions for Bob; with the weakness of the FED, can the bond markets now over power the FED and what is the best economic system Keynesian or Western? Bob explains that there are flaws and positives to both. Bob believes there should be a blend of the different systems, but the major economists do not want that to happen.