good afternoon happy monday and welcome to capital account i'm lauren lyster here in washington d.c. and technocrats have been installed to lead role in and out then spoke what markets think well italian bond yields are on the rise again spanish bond yields are on the rise so as far as who really rules well as billionaire investor warren buffett says markets are stronger than ever that we do we've seen the charm after tried abol also here from economist nouriel roubini on that meanwhile the u.s. changes its focus from across the atlantic to across the pacific u.s. president barack obama pushes for a trade deal with nine asia pacific nations at the apec summit in honolulu but hold

on wasn't just a month ago the u.s. and china were on the brink of a trade war we asked with the global economy or at least western economies possibly headed toward a lost decade are we going to see not more trade deals the trade wars and outside apec don't forget that activists protested free trade policies as designed to promote corporate interests while one protester was actually invited inside to play for world leaders and he serenaded them with protest. he. complains. if you just said you were a key summit. you sure did meanwhile on mainland police clear off oakland's camp so where is this movement headed well we'll speak to gerald celente who predicted these protests more than a decade ago let's get the capital account. so

u.s. president barack obama is pushing a trade agreement with nine other age of pacific countries he wants to sign up by the end of next year now this is what came out of the asia pacific economic cooperation forum in hawaii over the weekend now at the same time he took public jabs at china seemingly over its currency swiping at china is gaining this system which is a good reminder for this just last month the u.s. senate was voting to open a debate on a bill aimed at imposing tariffs on countries with undervalued currency that is code word for terrorists against china and the chinese in response were warning this could lead to a trade war which is something that outside financial experts also said people like

jim rogers who i interviewed at the time about this so we ask with much of the global economy suffering developed economies struggling is it more likely we will see a trade war rather than trade deals girls alliance a founder of founder and director of trans research institute and publisher of the trends journal is here to answer that for us because he's been writing about this kind of stuff and he is just the man to ask the question thanks for being on the show doubt it's nice to see you thank you yes so as i was talking about with this push for a trade agreement that obama is out talking about but at the same time you were just writing and your last friends journal about the u.s. senate opening debate on this china currency and tariff bill and we saw the reaction to that so is it more likely that we actually see a trade war as we saw after the great depression rather than more trade deals and

trade agreements. the a combination of the two what you're looking at as the u.s. economic policy continues to fail in broad daylight you hear people like president obama treasury secretary geithner. fed chairman bernanke you are all now taking shots at china and you listen to the language it's hysterical if it wasn't so sad right coming from ben bernanke say that china is cheap money policy is slowing down the recover or there's no recovery so what they're doing and this is again a replay of history is they're blaming others for their failures if you want to talk about any body devalued when the currency all you have to do is look in the mirror abandon i mean they've been doing it why do you think warren the gold prices

as we speak are it seventeen hundred eighty dollars an ounce because they keep the valuing the u.s. dollar by having interest rates adds zero i mean this is all for public consumption just like they get for example or hey let's say to ron oh i got it let's talk about their nuclear bomb that'll get the people or or their alleged nuclear bomb i should say that they claim they're not building back it's the people's minds off the problem now they're doing the same thing with china it's easy to say that shi'ite eads i mean you go into any department store you know it's made in china so then tell a couple of us there's a couple points on that i want to get into first as an issue of currency wars because you see this rhetoric from the united states about china under valuing their currency this weekend at apac was no exception obama is taking shots at china

for doing just that same. economists agree that the renminbi is undervalued but you're bringing up a good point which is who is undervalued their currency if you look at the us dollar it's down sixteen percent since two thousand and five if you look at the yuan it's strengthened almost thirty eight percent in the same time these are based on numbers from the bank of international settlements so do we see some kind of currency war here and if so who is really doing the devaluing. again you're right it's a currency war will follow the follow the path the crash of one thousand nine hundred twenty nine the great oppression currency wars and then trade wars and then world war the panic of oh wait the great recession clare's to slash depression you're living a greece of you living in spain you living in italy you living in a lot of places is depression currency wars you hear mine taken from brazil you see all these countries trying to salvage their car in cities like the swiss by going off you know there's the going on and pegging it to the euro so now you have

currency wars now they're talking about trade wars and then next thing is real wards and we've seen this movie being laid over before so briefly then you say that we're going to see a combination of trade wars and freer trade but which way do you think this scale step as you are the trends journal forecaster had to pick mine it's right now we tip stored freer trade so that the multinationals could pull off. and then what happens is when things start collapsing more and more then it goes into trade wars so right now you're going to see more deals being done so the multinationals can find more places to get things made more cheaply and then ship back to their home base ok you mentioned goes into and you mentioned corporate interests i want to bring that up because there's a question of who do free trade agreements then if it and of course this is something that obama brought up over the weekend with a tax i want to play you purchased what he said about him the silver is challenge

for the united states right now and my highest priority as president is creating jobs and putting americans back to work and one of the best ways to do that is to increase our trade and exports with other nations. jerrold is that true is the best way to increase u.s. jobs to increase exports and trade that you do through these kind of free trade agreements only an imbecile would believe that lion or a wimp or obama apologist or or a of multinational let's just look at the facts with nafta going back with clinton remember he promised the same thing we heard from ross perot the great sucking sound of jobs leaving the nation look where the quality of life is gone look at the real income levels since one thousand nine hundred ninety four to two thousand and eleven it's been a steady downward slide it's

a big lie all you look at the numbers the politicians law either numbers don't it doesn't create jobs it loses jobs the only jobs it's created or you want to be a clerk at a retail store or a care is sheer then there's a job for you all right so listen for the sucking sound if this free trade agreement does get signed is the take away from that speaking of politicians i'm really curious your your insight into this because the keystone pipeline which would bring tar sands oil from canada down it through the united states obama has stalled that and it's something that is touted as a win for environmentalist who are scared about oil spills among other things i'm curious why for example the keystone pipeline has been stalled but you have fracking hydraulic fracturing which is way of extracting shale gas which has been

able to since two thousand and five through a law not be under the safe drinking water act it's exempt from those federal regulations any ideas. oh yes we actually heard. prime minister putin week coming out against fracking because of the environmental disaster it's creating we just read a report coming out of the u.k. that it's causing earthquakes and he also said the same thing down in arkansas why is president obama temporarily stalling the keystone agreement it's called the election let's look at the facts what are they talking about rerouting if they're not talking about stopping it what does everybody have attention deficit disorder remember the day before the labor day holiday obama came out repeal the new anti smaug legislation that should have made the environmentalists happy eight how about this one lauren didn't obama just sign off to open up new exploration in the arctic

and down in the gulf and so no this is just a stalling tactic and the reason why fracking is being given a free ride and i love these commercials that they throw on t.v. you know the slightly well you know how wonderful all that stuff is we have it going on right over here up in the catskills in the hudson valley and people of course protesting against it for what a governor cuomo do that great democrat he just signed off on them to do it and they're a hundred thousand is a reservoir and joe just to compare the fracking obvious that seven hundred forty seven million dollars twenty thousand lights in two thousand and eleven i was looking at trans canada which has that keystone pipeline they spent one point three million dollars in two thousand and eleven less than that before it so i don't know if they just didn't pay the right price high enough price i don't have time to ask but i will get back with that with you after the break just a short break out if you could hang tight we'll have more with terence alexy.

all right it's time now for the word of the day where we break it down a financial term or concept for our very smart viewers but perhaps not the financial expert in the crowd so today it is free trade area which is very fitting because i was just talking about this with gerald's with the asia pacific free trade agreement that obama is pushing for the free trade area that it would create and i want to explain to you some of the things that we were just talking about but here is why you need to know about it so obama said that nine asia pacific nations aim to reach a transpacific partnership accord within a year and what will be the biggest u.s. pact since the nine hundred ninety four dorothy america free trade agreement and it creates a free trade area so what exactly is that let's look at a definition it's

a group of countries that invoke little or no price control and the form of tariffs or quotas between each other free trade areas allow the agreeing nations to focus on their competitive advantage and to freely trade for the goods they lack experience at making does increasing the efficiency and profitability of each country ok if it sounds too good to be true you know that old saying there's no such thing as a free lunch so what is the catch here what are the costs well let's look at nafta because this would be the largest free trade area after that the u.s. and mexico in that situation were two very different economies with different levels of development and all the nafta may have had positive implications for say bringing down costs for corporations earnings consumer prices it also had negative social implications in two thousand for example the u.s. government subsidies to the corn sector totaled. point one billion dollars these subsidies lead to charges of dumping which jeopardizes mexican farms that's

basically when a company goes in undercuts the competition and then raises prices and you can also look at jobs people go to work cheap labor is and for ninety four to two thousand and seven manufacturing jobs in the u.s. declined by over three and a half million so you can see what people are out there protesting about the costs of free trade areas and now you know what they are. now still ahead right now don't go away as you may remember an upload will declare bankruptcy because of bad bets on european sovereign debt well gerald celente they got him personally where did his money go we're going to find out after the break but first the closing stock numbers. above.

you just put a picture of me when i was like nine years old i just tell the truth. i'm a confession i am a total ghetto i love rap and hip hop music and pretty much. it was kind of the the yesterday. i'm very proud of the world without you it's a place. oh. you know sometimes you see a story and it seems so please if you understand it and then you glimpse something else and here's some other part of it and realize that everything is ok if you don't know i'm trying hard luck it was a big issue. what

drives the world the fear mongering you have by politicians who makes decisions. made who can you trust no one who is you know maybe you would have noble mission or easy where we had a state controlled capitalism. it's called sasha's when nobody dares to ask we do r t question more. welcome back technocrats they're in place now they have been installed in rome and in athens and this was supposed to call markets but today we saw italian yields rise we saw spanish yields rise we saw french spanish and belgian credit default

swaps hit new records so doesn't sound like calming markets so who is in charge here is really the question markets or technocrats and where is the euro zone headed is it still headed down well gerald celente is back is we want to ask him all those questions again he's founder and director at trans research institute and publisher of the trends journal and he's actually been hit in the crossfire is this you could say so gerald. let's get straight to that you know i have to ask about this m.f. global thing because of course for our audience and that's global of the firm it declared bankruptcy filing for bankruptcy it made bad bets on european sovereign debt but i understand you have been caught in the crossfire actually so what happens now i really got burned i got a call last monday i have an account with linda wall dark and i've been trading gold since one thousand nine hundred seventy eight and have a very simple strategy as you well know i've been very bullish on gold for many years so what i do is i buy a future

a buying futures and so i have enough money to take delivery of the contract so i was building up my account to take delivery on a contract and i got a call on monday and they said i needed to have a margin call is what are you talking about. oh no you don't that money's with the trustee now. as you made up this decision though the c.m.a. group and somebody knows i said oh yeah the capones in the landscape they took my money they took out of my account it was me traded by the way this is like having money in a bank account they took my money out of my account six figures and they have it they closed out two of my positions and i can't get any answers and i can't get my money and you watch this guy cores on you no longer in the word justice it's they spell it wrong it's j u s t u s just

cos this clown walks he has therefore you have my money's gone in about one hundred fifty thousand other people or we can't get any answers from them oh you know he's raising why he's having dinners for obama i thirty five thousand dollars a pop this guy's sitting at the because see no making bets thirty six to one you go down one dollar but you bet thirty six and he's clean down ruined a lot of people so maybe the name and i'm thinking the first word of it is none other and we could put the other word in there if you use your imagination that's what they're doing to everybody here you're going and you're just our viewers that may not know and of course this former goldman sachs guy and a bad regulator a former fed regulator who wrote an op ed said that the joke as to how he got that . primary dealer status which is very coveted by the fed were two words john course

i am because of his political connections and his wall street connections but gerald just you know to kind of stick to you for one minute you know you've been a big proponent of physical gold for a long time and that physical gold so that you didn't have to deal with the liabilities of the futures contracts or. other precious metal derivatives so what happened here what happened what i do both i bought i for possession but i trade for possession so in other words what i do is i'd buy a contract for the future knowing that i'm going to take possession of it so it's a form of gambling but you know i've been doing it since one thousand nine hundred ninety eight i also quite caught bullion i buy gold coins but this is another way of investing but always with the intention of possession so for example i had this contracts i was going to take possession of my gold this

december less than a month away and as i said they call me on monday you're not getting any because i don't have any they have my money jerald that's all it's not you're not it's just and i want to doing i'm really sorry quickly just all of this stems back to figure i was done of course because medical made bad bets on it i want to play you were very nice as a courthouse and i just want your real quick response. you know it's been the site was that the for that reason you know if it's fallen short if it was it's. more than b.b. it was the lottery it was probably that's one more of a. rights of the eurozone if enough of the rights of the eurozone like the law is a breakup of the eurozone basically he's saying there could be a breakup of the euro zone yes or no do you agree or you even say this when the eurozone was first created that was created during good times and in the heyday of

globalization and now when things turned bad it would break up another word very to be careful to look at it they're using as you mentioned earlier the word checking a crack oh well let's check the credits are coming in they're going to save the day these are the backroom deal or that made the these all of these look where they came from was his name monte. cord and gerald i'm going to have to get into that tomorrow with microsoft explain to them what a technocrat is and you bring up a great point based on much for being on the show and telling us all of your insights and we're so sorry about your money but thanks for telling us your story that was gerald celente founder and director at trans research institute also publisher of the trends journal.

all right time now for us to finally respond to some of our viewer feedback which we're going to start doing once a week and today let's start with something that we got from you two who writes this this is from ten meg to eighty nine he says capital account is too short please create a longer show especially where you can have a complete conversation with your ex. yes i love the show and it's hard to get relatively good financial content around the world signing off from india well we certainly appreciate that and right now it's a half hour so obviously we can accommodate you there but we're glad you like the longer interviews and one thing that you could always do is send us your questions or the things you would like to have us see with a guest which someone actually did a viewer james sent us an email and what did he say to us he let us know because of our interview with peter schiff who we interviewed at the beginning of november we

talked to him about occupy wall street which peter believes the solutions to our capitalism and free market so here's what james asked us he said lauren i picked up a discussion with peter schiff off of his blog page i think his argument falls down as it pertains to executive wages versus flat employee wages over time my point being that if executive wages have skyrocketed the way they have the companies still have net higher profits or they wouldn't pay him out and essence they see more production from exacts then employees overall they have more to spend on employees though right i think you fell short on pushing your guest there i would enjoy hearing shifts answer first to show you what he's talking about let me show you that chart he was referring to and it shows executive pay exploding if we could bring that up so you can see executive pay has guy rocketed while at the same time employer employee pay workers their wages have stagnated over the decades so that's what he was referring to when i actually did need to bring that up with

peter during my interview but i ended up running out of time which sometimes happens when you have to make tough choices because of the clock but i do think this is a really good point to bring up and i actually have brought this up with peter before in our news program when i interviewed him so i want to play you my question there james. corporations have had record profits 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. pay everyone through the roof. well i will agree that pay is going up but that's not a good they get when you look at record corporate profits and if you buy major companies that are making money speculating because of low interest rates these companies are making money you know from borrowing and lending you know all the stimulus but

beneath the surface if you look at a lot of the smaller companies they're struggling they don't have record profits they have waltzes they're barely getting by. so there's his answer next time i'll push him harder that now ray and maryland e-mailed us this he said i watched your capital account for eleven seven thanks for explaining bond yields i wish other financial commentators took the time to explain these things which are so necessary to know if our country is going to get a grip the financial elite would rather we did not know much about these things that's ray from maryland i don't know about the financial elite right and what they do or do not want you to know but we think that people should know all of these important words that are thrown around to help you understand the economy and if you're not an expert how are you supposed to but the economy is important it's not going to be less so so if we're going to be the biggest story so that's our word of the day we'll continue to do it you can always let us know if there's anything that you'd like us to explain to you now on you tube two thousand and one wrote to us he said how does capital account start the day the team and how do they prepare for the show basically what makes the show tick and. basically there is no start finish

for us a capital a calendar and especially our producers jimmy trick athena's and shannon donna who are working around the clock following the news reading everything talking to people interviewing people getting gas all of those sorts of things but here's a real quick snippet of some of the behind the scenes stuff. i think coming up on the left is a controller where the show gets put together by all of the director of the earth and line producer and all the various other tasks that go into making a show like actually work out of the elements and get some footage. so the character can store and see what's going on here shannon donahoe our line producer is getting ready to go live and let you work with what's going on here we're getting ready to set the run down to life so that station can be out there doing the magic you can working all the other magic back here. so there's

a little snippet of our behind the scenes look we'll put more of that on our website so you can check it out youtube dot com slash capital account and please send us all of your feedback so that his videos if you want will run the best of them you can email them to me or go to our website have a good. touches the same ocean different and there's a huge musician the person on the market is it all over again united nations make you a watchdog behind the claims in a new report that iran is moving ever closer. to the. science technology innovation hall the list of elements around russia we've got the future covered. limitations free.

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