inflation. trillion dollar spending programs. spending money that the government doesn t have. that s called deficit spending. the way that they manufacture, the way they make the balances, the books balance is by getting the fed to buy up all the debt that s being issued by the treasury department in order to buy up the debt the fed prints money. that s why the nation is awash in cash. the more cash you have, that means each individual dollar you have is worth less. we are thinking of spending a trillion dollars more in terms of the build back better plan. the president says that s going to lower inflation. most people say that s nuts. gillian: the other thing that the white house blames the problem on is supply chain crunch. the council of economic advisors said a couple hours ago that that was the core of the issue. take a listen to what else he said. one of the things we like to point out in that regard, if you look at people s incomes, they
haven t printing dollars to pay for it leads to inflation, you don t want this spending plan. the cbo, congressional budget office which adds up numbers and all these proposals that congress comes up with, they came out with numbers. if the money that s being spent on build back better is permanent. it s a 10-year program. there s a trick democrats are using to make it seem like it s going to cost less which is only putting in the first three years of spending, if, in fact, it s spending throughout the entire ten years, it s actually going to cost $4.9 trillion and that would lead to a $3 trillion extra debt. it s not paid for. the president said it s 100% paid for. the cbo, nonpartisan. democrat and republican, they say it s not paid for. if you go the full ten years of spending on build back better, it s going to add $3 trillion to the debt. that ends up as more inflation.
why should you buy stocks? couple of reasons, fed stimulus. qe-3, the fed prints money, throws it into the economy, the net result is that interest rates are so low there is nothing else to do with your money except buy a house for a low mortgage or put it in the stock market. number two, there is no alternative. connected to number one. what else are you going to do that is going to get you these kinds of returns. prices are at a fair value. a price to earnings ratio, how much is the price of the stock versus what are the earnings. they are lower today than they were five years ago when we hit those records in october of 2007. those are the reasons in favor of investing. you don t know when it is going end to, right? here are the cases against buying stocks right now. you got this issue with europe s recession. the u.s. is going up, the economy is going up, europe is going down. u.s. consumers are strapped. we don t know how much oxygen
was a joke. the idea being we are never going to be up against the brink if we have a magic coin that the fed has ready. this is almost like lucky charm, the magical leprachan creating stuff from thin air. guest: but we are not too far from that. that is why i love the story, we are close to this as a reality. the fed prints money. they give it to treasury. treasury pays interest. the fed takes a profit from the interest and gives it back to the treasury and this keeps going on and on and on and it is bigger and bigger and maybe it will be one giant coin that collapses on all of us. neil: thank you, charles. folks, we are going to get downgraded. this is the kind of stuff that happens right best downgrade.
in american history is almost treason in my opinion. because he never served. perry told a military gathering, quote, i want to make sure that every young man and woman who puts on the uniform of the united states respects highly the president of the united states. in fact, perry even seems to question obama s patriotism. listen to this. you need to ask him. [ inaudible question ] i m saying a good reporter. go ask hm. cnn s shannon travis is in iowa. governor perry had a gem for you, i understand, in your cameras? that s right. reporter: he did have a gem for me. it s important to question whether the newly republican presidential candidate if this is his texas swaggering bravado. he is just getting into this race and has more established contenders who have been in the race longer. as you yu just mentioned he did say a little bit of things and say he sealed it with a kiss. romney took a swipe at you today saying he has private sector experience and that makes hi