before before it turns around before the contrary inflated jump back in is but do you think that when we do bottom out in this cycle that the rules will be sufficiently altered where you'll be able to actually make investments or will the political climate be so different i mean will people have we willing to sacrifice so much of their freedom for security given what the environment will be like that you know i think it's a great question and one of the guys that i've been working with in the new film is one in week as who was his venture capitalist to help put together the financing for the human genome project and he talks about the amazing things that are going on in the lab right now he's invested in a number of different businesses and they're innovating at a rate that they've never been able to innovate before because of the advent of advanced communications and quantum computing they're able to do a quantity of. experiments that they had never even imagined before but his greatest fear from an economics perspective and from

a political perspective is that we will never get to take advantage of all those advancements because the rules will change to suffer such a significant degree because of the collapse of the credit bubble that entrepreneurs will never deploy their capital to get those things off the ground and that's the tension that we're facing right now when is that going to happen when is that moment going to take place when people shift from profound pessimism that we're seeing in the in the headlines today to profound optimism again the belief that the american economy is dynamic and and can grow our way out of the daily reckoning is free it's a free website we give our analysis of the situation and away for free so if you visit. daily reckoning dot com you can actually just enter your e-mail address and sign up and get our daily analysis on a regular basis through the daily reckoning we make a number of our paid for private subscriptions available so you'll. be contacted

from time to time with special offers but we've also set up a special page on the acorah financial website w w w a financial dot com slash r t four listeners today who have who are interested in the solutions that we're trying to provide for this macro environment that we see ourselves in. and that was that is we're going executive publisher of core financial. i. i i. i. time now for word of the day when we break down a financial term or concept for a very smart the or but maybe not the financial expert and today the word is quite fittingly given that the world economic forum is upon us it's known simply as davos because that is the name of the swiss mountain hamlet it's held in every year how

does the man fit in well here's one headline man ways future of capitalism. so what exactly does that refer to well we have a definition davos man is an expression which refers to the global elite of wealthy men whose members view themselves as completely international where to come from samuel huntington the late harvard professor an influential american political scientist is credited with inventing that term he said the davos men have quote little need for national loyalty the you naturally boundaries as obstacles that thankfully are vanishing and see national governments as a residues from the past whose useful function is to facilitate the elites global operations. so who helped get to define this concept of modern global elite men and women the guy who dos out the invites to davos the flagship event which is

invitation only once a year here is its swab founder of the world economic forum german born harvard educated in one thousand nine hundred one he launched what later became known as the world economic forum bring together elites in every arena c.e.o.'s royalty heads of state cabinet members central bankers celebrities authors the forums agenda is meant to talk about some of the world's big problems and solutions to them but it's become better known as one giant networking opportunity for davos men and women how valuable is that well check out what corporate sponsors shell out every year according to david rothkopf book superclass a handful of lead sponsors pay three hundred thousand bucks a year thirty sponsors do one hundred sponsors pay roughly one hundred fifty thousand dollars a year and two thousand sponsors pay thirty thousand

a year so all pay this to attend and schmooze with a gathering of what you to use lead singer and global afficionado bonnell calls fact cats in the snow. that was upon us it's the world economic forum's annual flagship event a couple thousand of the world's richest and most powerful people are packing into this tiny hamlet town in the swiss alps to schmooze and talk about what the world's problems are by invitation only who gets invited well the ellis is pretty long angle merkel opens up a form david cameron will speak famous economists like joseph stiglitz and nouriel roubini are regular attendees timothy geithner will be there of course i.m.f.

head christine legarde billionaire fund manager george soros google's eric schmidt and of course head of the c b mario draghi will be in attendance so now what about everyone else the concern is the citizens are being made that could affect their lives maybe in a bad way but definitely without their say and lauren is there to see what's really going on. all right i'm here i've made it to davos i'm at the world economic forum my first time i'm not alone though turns out morgan stanley's c.e.o. says first time which shows the caliber of the people that are here ok these are much of the corporate elite much of the global elite when it comes to wealth power all of that so they're all gathered here the question is what is davos man got on his agenda this year now of course the unofficial business is what davos has really become known for in many respects that's what you hear about that makes it worth

all of the money that some of these corporations shell out to be here it's the networking and the deals that are done in private parties you know off the record in hallways and lobbies so this is where a lot of the global one percent or some of them at least presumably are doing business according to past reports ironically on the actual official agenda this year is that the topic of capitalism and if it is or ambling what its future is and what the solutions to its problems are so schwab the founder of the world economic forum has said that we can't think of this is business as usual anymore that capitalism in its current form has no place in the world around us talking about much of the of the discontent we've seen over in quality that we've seen with the occupy wall street movement which is on the agenda when some of these sessions are talking about remodelling capitalism occupy is one of the things that they're talking about interesting lee though none of those activists are invited to the forum to have that discussion but they are here really highlighting the difference

separating everybody else from the elites that are meeting here they have the igloo and can't mint which many people are talking about but they're very much here now as far as what exactly is going to go on i'll do my best to show you that the more of looking at these reports of what the press is going to be able to do it looks like i'm not going to be able to see a film or go a lot of the places that i would want to go except for maybe in thirty minute increments what's a day hopefully as supported by someone from the world. economic forum for me to lock down from some of these big business leaders and heads of state and central bankers exactly what they're talking about me sessions that i may not be privy to but that is what i'm going to try and do i'm going to do my best to bring you all of that the forum starts tomorrow and i will be here be your intrepid reporter until then talk to you tomorrow back to you guys that was the host of capital account the lovely lower lister in davos switzerland. and that's our show thanks for tuning in feel free to follow me on twitter at cover and delta and as always

follow lauren lauren lyster and give us feedback on our show at youtube dot com slash capital account of the music of phoenix and from everyone here a couple of pounds good night. to. find me you'll be in the midst of. people calling like you said for free and fair elections. and we're still reporting from the clinton as you can hear behind me loud explosions that lead. me to this she.

really i mean. they gave. there are those who desperately need it to survive. misspoken who has a ton of money to one look. for gold in the fish. on the suppresses the prize the rights of the food for. new clothes and. those who don't get their share of the cage. good by downloading got forty days and you know and don't

last but not the one not us that people need to know about it i mean not look any from the company from. those who suck it out to prosper. inside the seas and say. from you not from. licensing. no one can live without it's in one of the largest blood banks in the world. blood of nigeria. on r t. o five. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something

else you hear or see some other part of it and realize everything you thought you knew you don't know i'm charming welcome to the big picture. getting testy with the wrong that year was drilling a hole in relations with iran this time by banning new oil imports from the country with yet another round of sanctions but could shove match could push comes to shove match higher gas prices around the globe will dig into the issues. plus one country's discarded relations is another's treasure india is ready to shell out some serious nuggets for rom's a black gold bull explains. a

country cheers on as egypt's new parliament takes control the us holds its breath and the world watches heavily as long a parliament leaves for relations between washington and cairo and what about the ongoing civil unrest in libya will take a look at what's to come for the people of the middle east. and dude where's our jobs american workers stand on employment and unemployment lines while millions of foreign workers stand in assembly lines i know why america's number one export these days might just be its jobs. it is tuesday january twenty fourth five pm in washington d.c. i'm liz wahl and you're watching our tea before we begin you may know it is a different look today already america is now high definition some of you may still

be getting the standard definition for some of our programs but not to worry that will change in the months ahead. well the european union now with jumping on the bandwagon and placing sanctions on iran it's the west attempt to stop iran from furthering their nuclear enrichment program their convince the program is being used to create a nuclear weapon iran insists the program is only for peaceful purposes but it's not stopping the same gins against the country from coming but how much of an effect will distinctions really have on iran well if you take a look at their exports maybe not that much as you see year about the largest amount of oil actually goes to china about five hundred forty three thousand barrels each day with the largest amount going to be turkey india e.u. japan and south korea also acts for hundreds of thousands of barrels of oil from iran each day china and most of these countries though are refusing to join the oil

embargo so it's pretty much just the u.s. and the european union. and as you can see here the europeans make up just twenty percent of the iranian exports so what purpose what these sanctions really serve well for some insight i'm joined by dr sara shorey and author independent consultant welcome to the show sara so as we just saw there these sanctions are meant to cripple iran by by stopping about by penalizing their exports but the european union only makes for twenty percent so what kind of a in effect what would this really have as you said european union is purchasing twenty percent of iran's oil wouldn't sixty percent of iran actually going to asian markets and for country of india china. japan and south korea totally by ninety

percent of iranian oil. so actually deducting this. is not easy for iran to find a replacement for customers but iran can always offer a lower premium and better prices in compared to the same quality of crude oil and can find substitute customers china disappoint finish the first phase of building a strategy petroleum reserves and the capacity of that is between ninety two hundred and ten million barrels of oil and if you run so four hundred fifty two for a five hundred thousand of crude oil which is almost the same amount that goes to europe from iran iran can still about one hundred sixty two hundred to two hundred ten days of oil in additional to what already sent to china to feel its strategy petroleum reserve so basically iran can say hey we're going to go elsewhere we can we can take our markets elsewhere it's not so easy of course especially with the

central bank sanctions against iran iran has to find new ways but it. and iran has. many economy in trade relation with many countries including china turkey iran just increase its economy exchange and trade with turkey from fifteen billion dollars to thirty billion dollars so iran can use barter trade in such. circumstances ok and you know some countries and european countries are concerned that this oil embargo well will hurt them and a lot of countries in the e.u. say that they can't afford to have this so i mean it's almost this could be a double edged sword i mean that they're trying to impose sanctions on iran but this could kind of backfire and that's actually true i mean tree country three major european countries that tree major consumer of iranian european unions are italy spain and greece which already are facing

a huge economy crisis. spanish off the shoals they mentioned they have talked to the refineries which is the main refinery of iranian crude oil in spain and they have agreed to support the sanctions but they mentioned you're going to accept to. stop buying iranian crude oil in case they have a substitute oil and it's it's not so easy to change the flow of crude oil from one supplier to consumers to another supplier because simply do refinery operation and also the trade of refined productions needs time to adjust itself also if you look at. if you look at the substitute and options for i'll turn to alternatives to alternative iranian crude oil for this market. saudi arabia in libya deledio crude oil is light and sweet and. iranian crude oil which refines in these

refineries is sour and heavy so really in saudi arabia to cover iranian crude oil in these markets if. going to cover iranian oil or not that's an other issue and saudi arabia would always love to keep certain amount of spare capacity in case of an emergency in future now iran is threatening as a result of these sanctions if these sanctions you happen they are threatening to shut down the strait of hormuz this critical waterway where huge portion of the world's oil supply passes through last night in the presidential debate i don't know if you tuned it tuned in but republic republican presidential candidate ron paul argued that that iran really doesn't want to shut down this waterway because they need it to it's not it's not in their best interest to do so. that's true actually i think this threat is it's it's real but not likely to happen sometime

soon if we exactly look into what iranian officials said they saw the closure of her mr a is the last card that iran is going to play and that's not going to be due to it is not going to be when the european union is going to implement their sanctions because as i mentioned earlier sixty percent of iran's ongoing goes to asian markets and iran can substitute its customers but in the case my understanding from this is statement is that iranian were trying to set their red lines to the whole word and saying that in any under any circumstances that you are wrong cannot sell any drop of oil to the whole world let's imagine there is a universal embargo against iran or there is a limitation for any single drop of iranian oil to be exported from that country you're going to close to strait of hormuz because they're not going to lose anything and at that point there they cannot sell anything through this passage so

you're saying it's not simply just the same chance that are going to compel the abroad to shut down this waterway it would take a lot more than that. yes that i believe that. is sanction imposed by one country or a group of countries not going to cause a closure of hormuz a strait by iranian but could happen if. the whole ward. i mean there is a universal sanction against iran and iran cannot sell and a drop of oil so i just want to ask you now that the european union has come onboard and is joining the u.s. in imposing these sanctions or what effect it what does that really achieve that that's really good question because we should see that the coalition against iranian oil for whole morning is going to last and for how far it is going to go. japan and south korea for their security. dependency and united states

and they are challenging to make a balance between stopping by and buying their oil from iran or satisfying us and. securing their. security i suspect. coalition especially among iranians customers and. last for long or it could be very much successful well certainly the world is watching as tension continues to escalate in the region sara thanks for coming on the show that was author and independent consultant dr sarah shorey. and as we just discussed not every country wants to play by the same shins on iranian oil india has reportedly agreed to pay to iran in gold for the oil and buy in a movie and are protecting delhi from usa actions targeting countries who trade with iran and china another buyer of iranian oil may follow india's lead artie's preassure either has more from india. india actually has already bought iranian oil

using gold instead of u.s. dollars and this is extremely significant because every year india actually spends twelve billion u.s. dollars on iranian oil and now actually beijing is also saying that it might want to jump on board with the new delhi and also look into some sort of agreement with iran to continue to get oil new delhi and beijing actually account for forty per cent of the imports of iranian oil the e.u. only counts for twenty percent obviously we've been talking about all week about this oil embargo that the e.u. announced on monday that they're hoping to roll out and put into place by chill life first and obviously if new delhi and beijing find a way to continue trading with iran using gold instead of u.s. dollars this would severely hurt what the. european union in washington is trying to do russia has also said that it wants to continue trading with iran using

domestic currencies instead of u.s. dollars obviously the point of the e.u. oil embargo would be to bring iran back to the negotiation table over its nuclear program obviously iran has consistently maintained that this is the peaceful nuclear program the west believes that they are potentially developing nuclear weapons so in response to the e.u. is announcement on monday that it will place in oil embargo on iran and iran has said that it's going to shut the strait of hormuz which is actually where twenty to thirty percent of the world's oil supply shuttles through in the united states is that it will absolutely not allow that to happen even sort of alluding to the fact that it could potentially use military force to make sure that that's three days open moscow has also said that sanctions are an obsolete form of sort of punishing a country and that it's actually going to be counterproductive and another interesting thing to note here is that if beijing and new delhi continue to trade with iran with gold it's actually going to increase the value of gold and decrease

the value of the u.s. dollar as the global reserve currency. well that was our own preassure either. well topple dictators and new governments despite big changes in the middle east the bloodshed is far from over and libya fighters loyal to the late moammar gadhafi now clashing with the revolutionary forces now the head of libya's national transitional council warns that the country is on the brink of a civil war to help shed some light on all this and more in the region as policy director for just a foreign policy robert naiman robert nice to see you so the dictator he is dead is something the west has celebrated was looking forward to but now there's new problems in libya a civil war is a very way. well this is non anticipated those of us that were critical of the western military intervention wanted war that the.

there was a significant danger pushing the country in a civil war and unfortunately now the western media has a largely walked away now that the objective of regime change or james talking not even clear regime change it's not clear that there's a new regime now but regime toppling and it's been achieved the media western media is has looked away but the. but the result isn't particularly pretty and i think it's particularly we're looking at now as there is a debate over. how to handle or what to do with respect to the situation in syria with again these frantic calls for some kind of western military intervention and other ways to say you know that. and try to make some kind of diplomatic political process we're even know you know that's

obviously that's not perfect either it's not immediately going to solve the problem but we've now got several different examples in the region to look at we give the example of yemen where there was a diplomatic process which was not pretty or did not solve the problem right away but at the end of the day there was a deal there and there isn't a civil war in yemen today so this is something that ought to be probably when we see these good call who are western or international military intervention now amid all this of robert i mean would you say libya is better off today than it was before. anytime you have a big complicated change involving a lot of people you got better offer clearly some libyans are probably very happy with the result other they've been looting people who get off easy even in western propaganda you see people and then guys you saying you know we wanted to go and

no we're going to leave libya because this is a disaster we have no hope for the future so i think a lot of people that you know in the western press reports a lot of people that were focused on talking could not see or not i'm not so happy with the result not to mention the people at support of the libyan government clearly they're not happy so you have a lot of one happy people and. presumably those people would not say that they're better off. but you know i also want to turn to eat jets which has seen its own kind of revolution after the first free election the muslim brotherhood is now in power so the country is officially run by islamic month of western vision the democratic future for the country i mean is a is this what they had in mind. first of all the muslim brotherhood is not in

power the muslim brotherhood was the top vote getter won a plurality of those parliamentary elections and just that is candidate elected as overwhelming actually as bigger of parliament but the military is in power in egypt as it was before and there's a long struggle. between the democratically elected parliament and the under collected military government and you say is this what the west and i would think a lot of people understood that the. dictatorship in egypt wasn't popular that the muslim brotherhood was the political force in the country most likely to benefit from a transition to democracy and this is of course speaks to a longstanding contradiction in. western rhetoric and policy saying that we are for democracy.