Lou Dobbs, Fox Business

While we're joined now by Lou Dobbs from the Fox Business Network -- good morning and welcome to the show Daria Dolan. -- -- thank you. Hey I understand I read the Wall Street Journal your number one in your time slot now hunt or bird or their girl back congratulations that's it's nice work I'll be all we -- watching you tonight as I always do. I. Wanted to ask you eight questions regarding the fiscal cliff it's not getting I I don't think it's getting -- much attention right now but. If we go over the fiscal -- as president Barack Obama seems determined to do as many of the other Democrats. And are determined to what's gonna be the impact on gross domestic product and an unemployment next year. All the projections. Barrier or somewhere around you're anywhere from. I have to 2%. Impact on GDP which obviously would be enough that the -- able broader range. But diplomacy and through contraction or recession. Well what is unclear. Is what. -- this president is going to do the right now the Republicans have an extraordinary. Campaign advantage if they think -- or exported because this president has basically said. He will push ahead with trillions of dollars and tax hikes and budget cuts -- of period if the Republicans do not exceeded his wishes to raise taxes. I think he's he's assured his defeat. If he persists. With this strong because as you know the Republican Party pass legislation he ought to carry us through for the next year. Great -- Republicans wanna do one year freeze and ended and basically. Do a whole new tax make over her in 2013. Is that correct. Yes and I am I don't know what you're very good to me that seems to be the most responsible when we could possibly do right now. Yeah -- we need more time and we need new congress. We need new leadership they can in order to get it done brother would do little wire stocks not selling off in anticipation of the -- this is a major. Market moving event yet stocks haven't sold off as a result. I believe there are several reasons that work in the market of one of them is that we are seeing. Some dissatisfaction with what the bond market is offering. -- investors for the first time this has been the most surprisingly sustain a rally in the bond market. The second place start port can be very attractive here. -- -- historical basis. And everywhere you turn worst money going to go -- there's this theory is a growing realization. The duke offers no safe haven -- Credit markets are equity markets. On the United States I mean our bond market is saturated -- And we're starting to see some farming and expressed some considerable funding in the housing market. -- up top and I think that is bolstering. At least at the barge of some confidence on equities. And and comfort to this newspaper. And some companies are are reporting. There's not disappointing but surprisingly positive result. And most of the -- and gurus who says you know we're going to -- just terribly disappointing Eric. The market is reflecting a stronger -- real economy. Again in May vehicle margin and insufficient but it is they've -- stronger real conflicts. We'll help us understand what happens after the election elections November 6 we're you gonna have a lame duck a brief lame duck session after the election. There's going to be a lot of disaffected. Politicians right you have all the people they lost their -- their seats and I you know have. Anger on one side or the other it it's hard for me to imagine as I sit here Luke. Is it that anything positive is gonna come out of the lame duck session. Yeah I -- I even. I'm afraid I'm an agreement agreement with you or who's rooting are there court your article -- -- Tennessee authorities -- smarter thinkers on economic policy. In the country and he struck out impossibility of status quo election matters in which the Republicans retain control of the house where Democrats. Percent of them and the White House. Which is a recipe for disaster because in the space of that question. President Obama -- point blank. -- will work around content. Is this would be ready. I would say all bets are off -- future of the equities markets earlier in particular -- -- That's what I'm that's all I'm concerned about it. -- what do you think -- Romney does as early to Bernanke the assuming he wins right he's he's up in the poll slightly which is not unusual given the fact that you got the convention this week. It's a matter whether he can sustain -- built the lead and sustain it but eight -- think he actually gets rid of Ben Bernanke that's that's a bold move. It is a bold move it is on the however that -- governor Romney says he won't make you. That the issue of course is timing. I believe though that he's now -- to grope five days and -- a successor to Bernanke. And if not immediately certainly are within the very short term. Who what do you think of the the the statements coming out not on Romney. They do -- hit -- comets coming out of the Republican Party about a return to the gold standard for. An audit of this that I love the idea of auditing the Fed the return to the gold standard -- I I really don't understand -- What the gold standard and would do a couple of things immediately want is it would. It. It would do or take a soft floating exchange -- to -- of greater clarity about the value of the dollar -- now the question is. You know and we all spam the truth. And that is what does it mean to have -- right. What does it mean to actually show honestly strip forward of the value of the dollar I'm not sure any of us would like to introduce that. It's gonna have to be I'm very carefully considered. Debate. But I think this is all about creating the debate -- -- -- that degree to which we've got a disastrous fiscal policy of this country for thirty years. And it's an important discussion to have. Changing. If there it's catching the gold standard so that you and -- People expecting it to be a conversion to a you know I think there's probably -- too -- an expectation. Not crazy I'm not sure I understand the gold standard but I love the idea of auditing the Fed to me that that's. That to me it's mind boggling that we don't audit the Fed right now and haven't been the last fifty years. Well the -- out of the best quality it could put other people are surprised or that we actually have enough power to audit the Fed right now. The fact that we don't. To the degree that we should I victims. There's an absurdity but it goes to the issue of independence of the threat we know right now that we want the Fed extend or expand its balance treatment two point eight trillion dollars to respond. But I do believe that to the economic. Crisis disaster through all to dominate. In and we've got so many people are demanding QE3. I'm expecting a further expansion -- You know that is the real issue for me. Is the money supply this size of that balance sheet and to what degree we want to continue to effectively debase the currency. And purchasing part we've got to begin to worry about older. Americans who were dependent upon the -- Who are dependent on Social Security. And what we're -- to their purchasing power. -- -- boot it would. Zero to negative view. -- zero -- negative yields and but no inflationary Lou let me tell you secret what the government anyway there's no inflation problem. Well there's no inflation question you know you repeat are -- food or your drive -- -- right other of them have everything is terrific but this is elevated on the other side of that. -- we have our great opportunity here in and housing and real estate. I think sort of start to see. The signs of inflation build up if this bad. Pushes ahead with QE3 operate simple it's clear yeah -- -- -- that would have and in fact I think that maybe you're conscious strategy of the Fed. And most of the financial establishment of the country. All right well we appreciate your time Lou thank you very much for joining us thank -- spirit of -- that's Lou Dobbs from the Fox Business Network joining us. Here on the financial exchange and.