r.s.s. feeds now with the palm of your. questions. com . our truce has been to rebuild the future on a stronger foundation the we have before. the meantime many are asking where is my job and his new jobs numbers come out showing at minimal and stagnant economy is the white house in denial of reality and could maybe be time to change the rules of how the economic world works. they say sharing is caring and that's just what the us is doing spreading economic good will at a time when needed most so is this hypocritical chevron in quantities of rice don't

seem to think so we'll have more. and it's not just the economy president obama should worry about seems his goal is to reset relations with russia navy harder than he thought so is this an opportunity that will cost him the two thousand and twelve election. but actually it's friday june third four pm here in washington d.c. i'm laurin the store and you're watching our t.v. now it is been a bad week for the u.s. economy new jobs numbers revealed today show that we have the worst private sector job growth in eight months in the u.s. it knocked the unemployment rate up from nine percent to nine point one percent earlier this week a distressing housing report has economists saying the residential real estate market has double dipped the u.s. debt ceiling has not been raised and moody's issued

a warning on the country's credit rating as a result and president obama today in the face of a dead dismal jobs report gave a speech at a chrysler plant to celebrate the resurgence of the auto industry saying you know in the economy there are bumps to the road to recovery but is it time for a major rethinking of the u.s. economy in the wake of all of this bad news. joining me is peter schiff president of euro pacific capital to talk about this peter excuse me thanks so much for being with us first of all i want to take a look you know we always hear these jobs numbers reports they're better this month they're worse this month but i want to look at this chart and i hope that they printed it out for you if we could put it up the unemployment chart so there are a lot of numbers in this chart but really the biggest takeaway is that that red line is the unemployment rate the unemployment in the recession the worry and i compared to all the other recessions in this country's history and it is way worse when it comes to joblessness so my question for you is if you know is this a blip on the radar or is this you know

a really dire situation that something really major has to be done about. it's dire the reason that the chart looks as bad as it is is because we're not in a recession this time we're in a depression you know unfortunately we didn't lose enough jobs last because president obama still has his and you know he thinks we're on the road to recovery now he's put us on the road to ruin you know he's there bragging about how the government saved the auto industry they put the final nails in the coffin of the auto industry we would have a much better auto industry if we had allowed them to go through a legitimate restructuring through bankruptcy instead always did it is turn to turn the keys over to the auto industry to the to the u.a.w. and now we're going to have a a less competitive auto industry that would have been a case had we allowed the market to do it but you know that the data that we've been getting for the last several weeks and of course to date data merely solidifies that with a weak jobs numbers is that the effects of trillions in government stimulus are

wearing off and the biggest or the mother of all tangled years is now setting it and the fed is it a very difficult dilemma here because the economy is already relaxing in a recession and they haven't even started tightening it now my question then is because the obama administration seems to think that you know this is a blip but we're going down the path to recovery but is it time for a major rethinking what about for example letting china and that china want to invest when for example saw first quarter growth of six point four percent this year and some other big companies all those now in the hands of the chinese reports a chinese company came to the rescue of saab was letting china invest in the u.s. help. well they're already investing heavily in the chinese they're investing in the wrong areas they're buying u.s. government bonds which is not helping us or the chinese because it's helping to grow our government i think that you know we do need to allow capital flows freely

but what we have to do is stop borrowing all this money you mentioned earlier that one of the problems is that we haven't raised the debt ceiling that's one of the only good things out there that debt ceiling is still there unfortunately they're going to raise it we're going to go deeper into debt which means bigger problems and this is not the economists are describing this is a soft patch it's not it's quicksand and the economists think this is a soft patch these are the same people who in two thousand and seven said the u.s. economy had never been in better shape they didn't see this crisis coming right never understood the problems of the u.s. economy and they still don't understand them they think that government stimulus made the problems that are it did it allow the problems to get worse well i want to ask you you know you said china is investing in the wrong place they're investing in dollars china wants to use of dollars to buy u.s. companies i want to play you a little something from if we have that sound bite from michael has been he's an economist what he had to say about why they're not able to invest in u.s. companies they wanted to reciprocate by u.s. companies the u.s.

wanted by china the u.s. says we will not let you know by filling stations here or refineries you can't buy in america we can buy and you you can't buy in america for and take a result the time of the u.s. companies with their european takeovers or their takeover is by friendly so obviously american china as a potential enemy and that's why the united states doesn't let china invest in our are they doing it you know cutting off their nose to spite their face. well i think so but it was really going on is the u.s. government wants china buying treasuries they don't want to buy real assets instead do you think that's why. the the in that's why don't i if they think you think that's why the united states doesn't let china buy u.s. companies because they need them to buy u.s. dollars absolutely plus they know as long as they're buying our debt we can always

default we can always print money and wipe it out with inflation we don't want the chinese to get their hands on our real assets but the minute the chinese figure out that this isn't just big a ponzi scheme that they're participating in it they can never actually use those dollars for the things that they want all they have to do is endlessly loan them back to us at ridiculously low rates of interest they're not going to want to play this game anymore and they're going to walk away and so will the rest of the world and then we're going to be stuck with a pile of our own worthless currency and nothing to buy i was thinking of currency corporations have a lot of it where are they putting it because you mentioned the fed's policy of quantitative easing all of the liquidity in the system but interest rates in the united states have never been lower and there is no essential a return on investment in the u.s. if you're going to put that money to work care so is that all going overseas. the smart money is some people are still chasing yield by going longer on the curve of

buying a ten year twenty years i think they're going to get destroyed as interest rates alternately catapults higher but the smart money is going into gold look at the dow gold ratio is the lowest instead i think of the entire cycle it's around eight to one right now so money is moving in the polls it's moving into commodities despite this correction stocks oil is still over a hundred dollars a barrel today on the close here in new york smart money is going offshore is going into foreign stocks foreign currencies look at the swiss franc the dollar closed today at an all time record low against the swiss franc that's the safe haven currency not the u.s. dollar so then how does the united states government get corporations to invest any of that money here at home in the united states i they're certainly not getting it from corporate taxes i want to bring up a chart showing what some of the largest companies in the u.s. have paid in corporate taxes and they've paid zero or had a negative tax rate i mean that doesn't seem fair needless to say but that money

isn't isn't coming into the u.s. government despite the fact that these companies are making such huge profits there's a lot of talk about closing loopholes and tax policy even lowering the corporate tax rate what i mean to help. well it would help to abolish the corporate income tax entirely because then corporations wouldn't waste so much of their resources figure out how to avoid taxes instead they would use their resources to generate more profits for economic growth and more jobs or gracious don't really pay taxes their shareholders do we're already axing them when they get there davis the employees of corporations pay taxes when they get their paycheck so let's tax the employees and the shareholders don't tax the corporate level it's just a political a smokescreen but if we want or rationed for businesses to work harder and thus more we need to remove the barriers such as high taxes all these regulations all these mandates all the legal liabilities the u.s. government isn't very expensive and very dangerous for companies to hire people so

why should that peter at the same time companies are getting out of paying these taxes and there has been a lot of money flush into the system that was supposed to get companies to loan money to people on money to businesses hire people and not hasn't happened they're hoarding cash corporations are sitting on cash the so what is going to address why what makes you think that more deregulation or lower taxes is going to stop that well because in order to lend money they have to be able to pay it back so there has to be a climate where businesses can succeed and large and they can't with all the taxes and all the regulation they're not going to do it and when you want businesses to lend more money to consumers consumers are broke but they can't pay back what they've already borrowed americans are drowning in mortgage debt and credit card debt flooding almost that money the boxes can't get money and small businesses can't get money not supposed to be one of the bedrock you know united the united

states' economy a little. sorry u.s. government is borrowing want to have trillion dollars a year there's nothing left for business and not only the u.s. government is what it's directly borrowing the u.s. government is guaranteed all the mortgages all those student loans there's no money left businesses are starving for capital because it's all going to washington but at the same time i mean the government bailed out a lot of those mortgage backed securities because that's what investors all over the world had how they were essentially reinforcing the major investment that countries like china and russia had me right but where did the money come from to bail out those investors who should've lost money it was taken out of our pool of capital so that money is not there for businesses and even if it was there would they really want to take the risk of borrowing it and have to pay it back when the climate is so hostile taxes are high and going higher regulations are numerous and

there's more of them in the pipeline that the legal exposure is increasing you know who's going to want to invest in an economy that the government is of deliberately destroying a fair amount of gas so peter corporations have had record profits at the at the same time that millions of americans have lost their jobs and become more productive so i don't understand how how can you balance what you're saying which is that this is a hostile environment for corporations in which they can't profit with the fact that corporations have seen record profits and c.e.o.'s have gone through the roof . well i will agree that pay is going up but that's not a good thing and when you look at record corporate profits it's being skewed by major companies that are making money speculating because of low interest rates these companies are making money from borrowing and lending it and all the stimulus but the knees the surface if you look at a lot of the smaller companies they're struggling they don't have record profits they have losses they're barely getting by this is

a phony economic recovery that it's it's it's basically a john hallucination caused by the government stimulus which is like a loose addiction and we think the economy is getting better all we're doing is borrowing and spending money we're borrowing money that we should be saving we're spending money that we should be investing and we're keep we're counting is it is a real recovery that's why you're seeing the economic data imploding the way it is because it wasn't real speaking of spending we have a debt ceiling that has not been raised and that's what the u.s. government is going to need to do if they want to continue spending the money that they've committed we've seen louise issue a credit warning this week over the u.s. debt ceiling disagreements as someone who ran for congress do you think that there will be an agreement on debt reduction with lawmakers that they're trying to negotiate do you think that this moody's warning will light a fire under their you know but to raise the debt ceiling quicker earth sooner than later and to reassure international investors that you know they'll do what they

need to in order to spend the money they've committed. unfortunately it's it's our money they're spending it on or a lot of it is being printed by the fed but unfortunately they will raise the debt ceiling and they do not have the political courage to do the right thing and not raise the debt ceiling and force congress to cut spending we cannot keep all the promises that have been made out we need the congress needs to level with the american public about that and start making a cause but you know given the renewed weakness in the economy given the down move in the stock market i'm sure that the politicians are going to come together and decide that we need to continue the artificial stimulus that we can't cut back on government spending they are going to do the wrong thing what's dangerous is not failing to raise the debt ceiling but raising it and continuing down the path that we're on the only solution is to slam on the brakes you know reading off the edge of a cliff and congress if they take off the debt ceiling or raise the debt ceiling that's

equal to stepping on the gas we don't have that slam on the brakes just yes or no question had ratified that planning on the brakes when that means the railing entire global financial system. but the real you is going over the edge of a cliff we've got to be real and we can never we can't build a real economy it till we allow those twenty one women vote you know the thing is at least we can drive you commune with dish which is better than letting you go off a cliff and then we can start repairing it or allowing the free market to repair it just right now we're headed for a huge disaster all right so you think the obama administration said break some more promises to the global financial system they certainly seem to have broken some for the american people when it comes to the economy as bad numbers that we're just not going to would promise you're referring to but he's certainly broken any promises he made to get the economy going to get the government out of the way all right there was a time i thank so much for being on the show today he is president of euro pacific capital now meanwhile unusual pairing today former secretary of state condi lisa

rice chevron and a think tank they teamed up to launch a new project to look at how to promote quote economic development livelihoods and reduce poverty worldwide this from an oil company that refused to pay an eight point six billion dollars court ordered payout for poisoning the ecuadorian emmas on rain forest which killed fourteen hundred people consequently and this call for foreign investment on a day where as you just heard to give an example of the difficulties facing the u.s. economy jobs number showed the unemployment rate has increased to nine point one percent and employers added the fewest amount of jobs in eight months so what is this really all about oil going to try to answer that is investigative journalist greg the last i want to thank you so much for being here with us what is in it for chevron and this kind of goodwill seeking public private partnership. i don't see any good will in the deal between condor lisa rice who's the u.s.

secretary of state under george bush which threatened most of the developing world and chevron oil corporation but which connally's rice was a member of the board. in fact there was the case her name the congolese. by chevron g. major the only secretary of state who've ever carried thirty five million gallons of oil in addition but the real kicker is that she's going to be co-chairing this committee with. general james jones who is head of the u.s. joint chiefs of staff our military our rifles what do you think this is really about here this is nothing to it probably reduction except that what it has to do with is chevron's projecting its political military might now i was down in ecuador meeting with the president of ecuador and then going to the jungle. to see the damage for myself i also spoke with chevron. and what happened there is that

you see you see toys kids poison people in hospitals all over their arms. literally. i saw scores of people were just dying of well toxins it's dumped all over the place was there texaco corp which is bought by chevron a seventeen year trial took place. chevron wanted that trial in ecuador because he said it's an honest court system and now they're saying it's corrupt because the ruling went against them well i used to be a fraud investigator for united states government and i can tell you in my years of experience investigating well and howard that the evidence is overwhelming that being poisoned where they dumped their toxins all over the amazon got into the water supply and didn't want. and the needs of the dangers of this stuff and and i met with one she from some three year old son just went to the swimming in

a swimming hole and the amazon area came up book oyston and so died and general take no responsibility and what they're doing is they're saying we're not going to play and by the way we want to make sure that no other nation dares take the actions of the ecuadorans in attempts to require us to clean up the mess we have me in compensate people we have injured and killed and we're going to show you how we powerful we are because we have just bought ourselves but she for the united states military the head of the united states state department and so get my ways but you'll see the consequences i don't know i never heard of using the army is a poverty reduction tool or the state department was totally surprised to know about the poverty reduction poverty creation made but i don't see a lot of that what they did and how is that on able to get their support and order

to you know to launch this program that you say has no nope and well about it you know how it is sad ron we all know all this power i hear and that's. you know it's cash it's cash under a lot card resources paid a fortune by chevron as a board member and it's very interesting that she goes from secretary of state from shehroz board to secretary of state and then back into chevrons payroll the question is that she ever leaves chevrons payroll in effect because george bush put the heat and her state department with tremendous heat on equity tremendous you don't equate or over these over these cases and tremendous heat on ecuador for trying to put the. good the would get some justice from the oil companies may want to make an example of this so what they're saying is archived at the. party reductionist is to bring in a military chain to bring in a the secretary of state have brought us the war in iraq and in addition you have

to understand the floor is very unusual it's not like the u.n. development. operations it's not any known poverty reduction organization it's not oxfam they're using it c.s.i. it which is the most powerful thinking in washington which is basically a kind of privatized cia operation fact the chief of the cia's all unit body bill is there any kissinger. tremendous national security outfit it's basically a military intelligence. doubly op and that's what they're using for so-called poverty reduction right but no one is full except the american press and well that was my question to you yes chevron has these commercials on t.v. that you know tout the achievements that they're making any country that they're good well and this is touted as poverty reduction and good well so do you think

that they're able to get away with this because they are really questioned by the wrath oh at the now not question right across the press has given them and is being bought by them absolutely you see these double page and from your time in double feature no there's no question of the new york times has done no real work on these issues wall street journal spent its time attacking the lawyers who brought in case there was one the steve danziger who's an tourney who graduated went to the law school at harvard with barack obama's had a coming out and making millions of dollars he literally spent his life. working for the natives basically without pay for two decades bringing this case and now chevron as suit him for right so you know they're attacking the people who are trying to end the poverty in the third world and yet the understand if children

want to do something about poverty oh let's start with the gulf of mexico people talk about the oil don't buy between the biggest offshore drilling deepwater drillers chevron and the when they cause more destruction i've been down here and there is more destruction caused by chevron and its operations than by b.p. and its operations look erratic blowout was well covered but struction is gone completely without notice in the us press and that is going to be our next discussion in investigative journalist great class thanks so much for being on the show today now we were just speaking a little bit about president barack obama when it comes to president barack obama's reelection campaign and foreign policy achievements he's likely to tout the reset of u.s. russia relations as one of the big wins but his two thousand and twelve approaches and we see disagreements over missile defense as just one of the roadblocks in relations will this kind of transformation even be possible my next guest is here to help us out steven cohen is author and professor of russian studies at new york

university he's also contributing editor at the nation magazine. but we have to back up a bit and remember how important this so-called reset is and what it means when president obama said he wanted to reset relations with russia he meant that he wanted to end the cold war like relationship with russia that prevailed when he took office in january two zero zero nine there have been some positive results there's no question about that but my view and the argument i'm making in my article in the nation is is that obama has implanted in the reset kicking time bombs they're going to destroy that reset if american policy doesn't change you mention one missile defense and you're absolutely right there is not going to be any agreement on this because the united states is determined to put missile sites very close to russia. and russia doesn't want that and the united states is

unwilling to give any entities but there's also the continuing issue of nato expansion it's on the backburner now but obama has said that georgia and ukraine the two former soviet republics we made candidates for membership and now we have this libyan situation where russia has either intruded itself or being dragged into it and this is another controversy in the making depending on what happens next in libya so what you've got here is an extremely important policy i would say even the fate of the presidencies of obama and made good if a ride on this probably to a certain extent but more importantly in my judgment the national security both of the united states and russia depend on a cooperative relationship which doesn't yet exist in the stable way and you write in your article that you believe the road to american national security still runs through moscow and that this is kind of been lost and washington john kerry and to

you blame do you blame obama for the ticking time bomb that you mentioned do you blame new content congress and we've heard during the ratification of the start treaty dead trust russia as an enemy really and we've heard that in kind of language and concerns and missile defense. you know lawrence i have to take a step back and say that i've been analyzing american russian before they actually had relations for thirty years and it's always been virtually forbid for an american to be critical of american policy toward russia but my view is that's why we have such a nice partisan struggle russia the american media the american political class doesn't want to have this conversation so in that to that extent it's a legacy of the cold war but if we're going to place blame and since i want to do analysis let's say the analysis it goes back to right after the soviet union ended the clinton administration in the ninety's took the view that the united states won

the cold war that isn't true just historically the cold war ended before the soviet union but american policy ever since the ninety's has been based on the premise that russians are weak and defeated nation and therefore we can have a unilateral or asymmetrical relation that is we can demand of moscow that we don't have to give up and that's exactly what's happened with the reset even under obama who promised to change policy what did russia get will bomb for example what they gave him some cooperation in the afghan war lots of american supplies now go to afghanistan through russia moscow is help the united states rein in iran's nuclear ambitions that those have been very important things for obama sporn policy but name once and i say this to my friends in the american political class name one thing of any meaning other than words that russia has gotten in return that abets it furthers its own national security so far as i can tell nothing and here's

the point the political class in moscow understands that and that's why there's not much support for the reset in moscow ok so then why do you think that u.s. policy makers the policies that are pushing it and gary there and why do you think . it's ok for them to still have that language of russia as the enemy i mean even just as a step paul ryan gave up on american exceptionalism and he said you know what movie want to viral that you know run by china or russia and the other two you know two of the largest investors in the united states is that really wise to do you know every nation has its mind set and it's shaped by its history russians have a mindset that we don't understand americans have a mindset russia was an understanding i grew up in kentucky the southern heartland of the united states this is the way we were raised to think that america was an exceptional nation that to the extent that we were involved in the world it was to

lead the world or save the world or guide the world it's something that still perpetuated in our textbooks but you know in some ways it's not all that important because great leadership both in moscow in washington and supersede that only twenty years ago there was a totally unexpected breakthrough by a cold war american president reagan and a russian communist gorbachev because they became new thinkers as gorbachev said big big transcended but culture in the mentality of their own countries particularly their own political classes but i don't think it's the people that are affected by this nonsense it's the political elites so the answer is the short answer is with the lacking at this moment in moscow i mean it washington and i voted for obama i'm not anti or barbara but what's lacking is leadership on the part of president obama to break with these post cold war news this week until russia what to do and we can demand from russia things we are not.