good afternoon and happy friday welcome to capital account i am lauren lyster here and washington d.c. and new numbers are out today but do not be fooled by the drop in unemployment to eight point six percent more than half of that is coming from people leaving the labor force entirely people who have given up looking for work now even still this is the longest the jobless rate has been this high since monthly unemployment records began in nineteen forty eight we will show you what this means for this holiday season meanwhile the m.f. global plot thickens now that the firm has collapsed regulators are considering new

rules restricting the use of customer money for brokerage is now the regulator this is the f.t.c. pay they wanted to finish the new rules earlier this year but they don't lay the changes can you guess why turns out heavy lobbying from none other than m.f. global chief executive john poor design this just as he was suspected to be betting with client cash and is the solution to the u.s. economic problems not new regulations not a new jobs policy but to ditch cash entirely and install a new social system new economic system the whole kit and caboodle we will talk to peter joseph of this guy's movement about how exactly and why exactly he thinks this would work let's get to today's capital account.

tis the season it is december last night was the national christmas tree lighting right here in washington there it is behind me beautiful event and this morning we woke up to new jobs numbers for last month and u.s. president barack obama highlighted this part of the news this morning we learned the. mother of one hundred forty thousand private sector jobs in november be unemployment rate went down. and despite some strong headwinds this year the american economy has now created in the private sector jobs for the past twenty one months in a world all right that was selective ok first never mind that unemployment has been higher than eight percent since february of two thousand and nine this is the longest stretch since monthly records began in one thousand nine hundred forty

eight and never mind that the u.s. needs to generate more than two hundred and sixty thousand jobs according to zero hedge to return to pre-recession employment by the end of november two thousand and sixteen that's the end of a possible obama second term or another president's term or some people put the unemployment rate much higher ok economist john williams of shadow government statistics put it twenty three percent for october which made that nine percent number look like peanuts now we want to look at right now why did unemployment rate fall to eight point six percent in november fell by point four percent it went down in large part because this is a billion labor force actually declined by three hundred fifteen thousand people these people weren't counted in the workforce they're considered no longer looking for work no longer an employed because they have given up looking for jobs according to the b.l.s. so this is

a billion population has actually grown one point seven million in the last year but look at what's happened to the labor force let's take a look it has fallen right down this is since two thousand and eight and you can see that it's had this steady decline record lows now it looks like while of course what's happened is people not in the labor force the number has gone up a steady rise since two thousand and eight yet at the same time does this mean fewer people want jobs actually quite the contrary the number of people who want a job now has been rising and in fact it rose to a record six point five nine million people so the magic of how. all of these statistics are calculated is really what's helping out the unemployment picture making it far rosier than it really is and let's look at two i have to point out where did last month's jobs come from ok according to the b.l.s. employment continue to trend up in retail trade leisure and hospitality ok you don't have to be a genius to know that it sounds

a lot like this the increases that are expected in holiday seasonal workers american retailers are expected to add four hundred eighty thousand to five hundred thousand of them of course some of those are coming from hospitality with a ten percent rise twenty nine percent for retail so businesses are expected to recruit extra help this might be what we're seeing these jobs may not be the real deal so therefore for many more people thirteen point three million who are unemployed the holidays may not be so happy and one depressing place where that's showing up is mall santa school this school is reportedly training santa has how to scale back on expectations for christmas gifts requests for kids and how to better deal with the heartbreaking requests a lot of them that are increasingly more and more economic listen to this. but there were. certain you make more of these cancer go where you say ok and you get

to your job you are in a can you help us somewhere how ceratin you get there you're out of jail you have to be careful that you don't promise anything that you know there are. so more and more of those jobs and home type of wishes and the toll of the economy is even showing up with santa himself this one is an aerospace engineer listen to why he's a santa which about five six years ago it sure those rolls are great and i only know about a hundred thousand dollars and that you will return or we would see one source for news. who knew that the economic crisis was playing out so just markedly with mall santa so what is the solution to u.s. economic problems like this jobs crisis ok we often have guests on who talk about sound money or regulations but how about an entire new not just economic system but social system to it sounds obviously very radical but that is just what

peter joseph of the movement is arguing for and he is going to explain how and why exactly that would work peter it's so nice to have you on the show i'll just get right to it so we have guests on the show who advocate for different solutions to the criticisms of the current economic system from debt jubilees to better regulations to the private industry to a sounder money you argue for just getting rid of free market capitalism as we know it and completely overhauling the social system why do you think that's the solution. well as all well and good as those things are and thank you lauren for having me the real crux here is that the structural flaws the psychological flaws that this system creates so the unemployment crisis the debt crisis the public health crisis the poverty crisis the energy crisis that's looming and the immense social destabilization are seen are actually systemic causes of this fatal flaws of this system at the core logic no i can expand on any one of those topics that you like if you take for example what you just covered in this broadcast the

unemployment crisis can't be unemployment crisis is really driven by technology that's very important people to understand because unfortunately many aren't talking about this we have an exponential increase in information technology coupled with invention material invention and manufacturing and all the other sectors the service sectors design revolutions that are happening with artificial intelligence eliminating the necessity for human occupations and it's exponentially increasing and increasing more rapidly as this decline occurs as well because it's more affordable for corporations to automate it want to pay insurance and vacations if you look closely this is the systemic element does that mean technology is bad no it means that human evolution is moving in a certain path that is literally making obsolete the current social system in that attribute it just mention but also because they're in what you continue thank you and we'll get more into this to stick to what you brought up which is jobs are talking about certainly you can talk about the technological component of job loss but let me get to another one what about just for example the industry of construction in this country which we saw kind of get totally decimated with the

housing bubble which popped and this gets to the issue of debt which i know is an issue that you talk about can you talk about the role of debt and the limitations of it in our monetary system. well sure you kind of have this bubble of quality with you notice many people talk about dead to believe that forgiveness now in fact i heard want to comment to say that we should just forgive debt every fifty years and that doesn't really address the fundamental problem does it basically we have our money produced out of debt moneys made out of debt whether it comes from the central banks or comes from the private banks the private banks manipulate money to loan it at interest to people and there is the interest component which doesn't exist in the money supply so you have an infinite amount of debt increasing constantly throughout the entire world and that is why we are in the staggering state that we're in suffocating us and some in different levels just look at medical debts look at student loan debts look at all of the deprivation that's being caused of that that's one side of it which is to my view

a completely sick social experiment it's a it's a horrible thing to do to human society even impose this fictional element on them to impose them which brings me to my other point which is that debt serves as a form of for lack of a better expression slavery is an imposition of scarcity which forces people into positions that they typically wouldn't take for their purposes of integrity or education but they have to and usually at less expense to the corporation so in a way it's great for the corporate system on a certain level to a certain threshold to have many inhibited people that have no freedom to be and in fact the running joke in my community is that when you get out of college most likely you have eighty thousand dollars worth of debt your right to be enslaved into a corporate system that doesn't have to give in to your interests or take care of you so you argue debt is slavery you have some other criticisms of it as well of course we've seen the cost of it right now and so many of the issues that we cover every day on this show in the euro zone crisis with public debt that's obviously just one side of it my question then is this why you want to ditch the monetary

system and if so also how do you reward work and sacrifice that people make. well the the removal the monetary system i believe it will occur regardless of my intense it's a natural evolution of human society all the mechanisms that kept the system in place are phasing itself out by default and the social disabled destabilization that's on the horizon i don't have to do anything i'm just trying to help is going to cause some type of change and i hope and the people i work with we hope it will move into a sane direction and not something equally as sinister as what we've been seen for the past basically twenty generations well you shouldn't say that this is a common supporting argument common supporting argument with respect to how people defend the free market system they say well if people have a direct material incentive to work hence reward that carrot stick if you will then they won't have any initiative to do so the first thing i would say is that scientifically a lot of research has been done to show that when it comes to creative interest people are not motivated by money in fact money seems to be inhibited. inhibiting

people's creative affects it's only mechanical operations like working a factory line or waiting tables things that could easily be automated by the way if we applied our technology that people need that reward because it's so monday in the true ability to choose the best resource on the planet as the human mind into free that mind to enable it to be creative and that's the beauty of our technological evolution at this point on a second level noting that scientific validity that incentive is not always the case for people to be operational we have other incentives in society that are not directly material that are very very rewarding that if people broaden their horizon they would see for example the incentive to be to walk out your home and not be worried about someone robbing you because they live in a deprived environment pointed a gun and taking the resources put all those locks on our doors most of the crime we see in the world is related to money one way or another and deprivation through the monetary system another incentive is the removal of war the removal of poverty imagine having the satisfaction of knowing there are one billion people starving on this planet there is a deeply social element in us that is coming to fruition and has to for our

survival i believe that our personal interest must become social interest it has to it really is already there but we just don't know it yet we don't think about it that way until that happens we have a lot of big things on the horizon one final point i'll say about incentive how about this is a classic example we have all sorts of military revolutions happening right now they're going to make the atomic bomb look like a catapult a roman catapult what's going to happen when we have these advanced technologies in the image sure society we do now based on this for forests social darwinism this tribal mentality this sovereign war mentality everyone fighting amongst themselves the assumption we can't get along what's going to happen when we have the advanced technologies that can be pulled off the shelf to say molecular engineering that can wipe out whole continents that when this is a very real thing in the words of albert einstein our technology has exceeded our humanity so it's very important that our values come in line and that's explicit to our new socially conscious revolution that has to come from the basis of the economic system peter there is so much more i want to get to because you have to. many interesting points of view that i want to get more into and also since we last

spoke occupy wall street has happened which we where we see people protesting the economic system on the streets of the u.s. i want to talk about more these things we're going to go to a quick break but we will be back with director and filmmaker peter joseph. and still ahead right here on capital account you've given us plenty of feedback and it's time to give you some answers we will respond to your questions just ahead but first your closing stock numbers. into the only military mechanisms to do the work to bring justice for accountability. i have every right to know what my government would want to know why i pay taxes. i would characterize obama

as a charismatic. american exceptionalism. all right with occupy wall street all over the nation we have seen people come out onto

the streets to protest the economic system itself and director and filmmaker peter joseph is one who advocates for a total overhaul so we're going to get more into what he thinks of this movement and also what he thinks of changes to the economic system so peter let's get back into this because as i said occupy wall street is on the streets protesting the economic system it's also a leaderless movement i'm curious how you see it if you see them as being having their intentions in the right place. intentions absolutely but until answers are proposed until people get together and think about a solution not much is going to be accomplished unfortunately it's an awareness protest movements really important what they're doing i think it's really another systemic outgrowth of destabilization i've been expecting this type of thing to happen for a long time. occupy wall street and the global occupy movement which is really the most important attribute because this isn't this isn't just about wall street this isn't just about the united states it is really about the total global financial

system of the inherent flaws of the market system even though many people in the movement don't even discuss those issues they just are they are expressing their anger and rightly so what i would like to state though is that the one percent are not something to be demonized for say the one percent are simply the best game players in this game strategy that's been generated the ninety nine percent have let the one percent come to their place as easily as anything because the ninety nine percent basically have been supporting all the mechanisms that enable the one percent this system is based on a structural classism it's always in favor of the wealthy i don't mean that just from lobbying and government intervention the very basis of the structure from the banking and the loans in the interest system really supports that so if the if you occupy movement really wants to get down to brass tacks they're really going to have to start addressing these root issues that i talk about that my movement talks about many other talk about as well and then think about what the solution is i really believe in the buckminster fuller notion that it's not about fighting in

some system anymore it's about building a new design that makes the other one obsolete and getting the public to understand it and then the game is basically over and it's kind of evolution that you talk about but i'm just really curious kind of how you do that how long you see that need to take because i don't know if you thought the black friday videos of people attacking each other for two dollars waffle makers i'm going to play a tiny montage for our audience i'm sure you can imagine from the noise is what's going on in them. i was. i. was i was you who was it was peter it sounds like riots that looks a little like riot unfortunate people clamoring for video games i would want to get between them in their video games how do you get between them in their video games

and how long is that going to take. that good question i like to point out that before world war two consumption in america was half of what it is now and the ravenous consumption mentality has really been imposed on culture by advertising and it's very important people see that so when you see that behavior such it's really it's a cultural anomaly we've we need that in the market system to enable consumption to be is rampant as possible to keep this at infinite growth paradigm going unfortunately so how do you how do you change that issue is that your question how do you see the light well you know in the video games. as though those are life supportive elements anyway but nevertheless you have to there's a massive educational paradigm that i can't i can't talk about enough the the social breakdown of society is going to open minds this is the bio social pressure that is basically caused every major shift in human society the problems that are

on the horizon are going to slowly get everyone to step back and say what do we do now and that's where i think the importance of of you and everyone that's aware of this we have to get together and show people what a solution can be and get them on board and get a mass movement if you will to enable it to come forward that sounds very simplistic and it's an overgeneralization but it's not going to happen through government policy governments are far to interlock today into corporate the corporate institution governments are corporations all u.s. government is the parent corporation of all these subsidies known as the basically the industry central that's really all the u.s. government does it's funded supported and regulated by corporations it always was by the way this isn't some anomaly that occurred it's just the nature of the game we shouldn't expect anything less peter i think it's a mass grassroots movement not a grassroots movement sound like there is going to be a lot of movement needed in order to get to where you're saying we need to be thoroughly credit you for you know trying and for coming on our show and talking all about that that peter josep filmmaker and director with is that geithner event

thanks so much peter. all right we have a quick reality check for you this friday because the u.s. senate passed harsh economic sanctions against iran yesterday unanimously it was an amendment and this would hit the iranian central bank now according to reports if enacted it could be much harder for foreign companies to pay for oil imports from iran the world's third largest crude exporter now this passed unanimously as i said reportedly because the senate fears of tehran developing a nuclear weapon outweighed concerns about oil prices rising driving them up and this is also despite opposition from the obama administration now officials say

this could do more harm than good let's look at one statement wendy sherman the state department's undersecretary of political affairs told congress there is absolutely a risk that in fact the price of oil would go up which would mean that iran would in fact have more money to fuel its nuclear ambitions not less so let's get this straight obama cannot get his jobs bill through a senate controlled by his own party but sanctions against iran that could actually hurt u.s. consumers and make iranian oil exports more profitable just to lie right through so we asked what is this really about whose interests does this really serve well we will get into this next week with a gas but for now it is our reality check. all

right time now for me to respond to some of your comments and questions that you've sent to us at the show so let's get right to it this one came from you tube it is a question from restore eighty five he asks how can the fed be bankrupt if it can print as much money as it likes now restore eighty five was responding i believe to this statement that was made earlier this week by one of our guests jim rickards he is author of currency wars you can listen to it but the fed is in a very risky position probably technically insolvent at this point and the fed is insolvent sure how can the fed be insolvent because it was sixty million of those no records went on to explain a little bit more because obviously you can see that my question was very similar to yours rest star so take a listen to what mr record said they have sixty million of campus or sixty billion

of capital and about three trillion of that says are legacy assets if you took the intermediate sector and just mark them to market and the mortgages that got bear stearns out says if you mark this stuff to market you know we don't know for sure if they're nontransparent for there's a good chance that the losses would be greater than sixty billion dollars which would wipe out their capital. so let me break this down a little bit more for you because you are correct restorer eighty five that the fed can print as much money as it likes as we know but is jim rickards points out the fed can only expand its balance sheet by so much before it loses control of monetary policy and its ability to keep a lid on inflation now as of december first the fed's balance sheet was it two point eight trillion dollars now when record says that it is insolvent he's basically applying the type of metrics that you would when assessing the health of a private bank by saying that if the fed was forced to write down the value of its

assets according to what they're actually worth that the losses on those holdings would more than wipe out the roughly sixty billion dollars in capital that the fed has now at that point the fed would be forced to print dollars to cover any additional losses one would assume and again it goes to our point that there's really only so much the fed can print without losing control of monetary policy without monetary policy i don't have to tell you twice the fed becomes irrelevant that is the point so that's all we have to say for that hopefully it cleared up your question now moving on last friday was black friday and i did a rather long seven minute monologue almost entirely focused on the toll and the tradeoffs of this kind of consumerism that we see on black friday no one you were really didn't like it which is fine but i want to clear up some of his criticism so from you tube original prisoner x. says let me break this down piece by piece you say that the holiday creates four

hundred thousand jobs so it's good this is part of his criticism actually i said this. even though these are not permanent jobs i'm not saying these are great jobs they are jobs at a time when people desperately need them so clearly there are. so as you heard me say i am not suggesting these are great jobs but people need to eat and pay rent so just practically speaking there is some benefit there now prisoner x. went on he said all that time and energy spent selling foreign made goods with temporary jobs may create the equivalent of the numbers of people filing for unemployment every week but it creates millions of jobs for chinese workers and makes the chinese oligarchy very rich how is this good for the u.s. now of course that is his perspective and point of view i can't speak to chinese wealth created but i focused this is what i do want to point out i focused almost my entire monologue on exploring the last question that this viewer raises here is an example where i went on to talk to shoppers. so you want your cheap you

know video games you want your cheap goods but you also want more jobs in the u.s. so how we're going to do this guys. so i was questioning people about these very issues about the trade offs of jobs sent overseas so that we can have cheap video games here so prisoner x. went on he said the fact is that it isn't good at all the shoppers that consumerism and evidently you admire the throngs of mindless zombie shoppers ruining our country and that's stupid now actually i spent six of the seven minutes talking about the tolls of shopping and consumerism i brought up john perkins talking about how you know we say that we don't want corporations to exploit workers or exploit sources but then we at the same token say that we want our cheap sweatshirts and we'll look the other way if they're made in a sweatshop in china so i really that was the focus of my my monologue and i am all for criticism but i'm also a huge proponent of accuracy so i just wanted to clear those things up send

anything back you want me to address because for now that's all i have time for that's it for our show thank you so much for tuning in feel free to give us feedback at youtube dot com slash capital account you can also see all of our shows there i am more or less there for everyone here have a great night. for sure is that so much to me there's a huge music history on the market going from very hard to even worse than this is the state of u.s. pakistan relations after a cross border towns are left up to twenty pakistan.

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