that disease that is afflicting us is going to kill us. percent interest rates prevents the only thing that might cure us we need higher interest rates we need to allow the economy to restructure and rebalance we need more savings we need lower real estate prices we need to have a solvent financial system we need to balance the books we need less government spending we need to get rid of these trade deficits we need some surpluses we need some production none of this is going to happen with zero percent interest rates all we're going to get is more speculation more debt more consumption more air in the bubble which means a lot more air comes out with it bursts you know if you think that europe is going through a problem right now you ain't seen nothing yet i mean europe is the warm up america is the main event we are we are the real sovereign debt crisis currency crisis is going to develop and it is going to be enormous because of what the government has been doing it was going to happen anyway because of the mistakes that the government made in the past but because they continue to compound those mistakes of

the president is going to be that much worse when it happens all right so i agree with you regarding interest rates this has to happen eventually there's no way you can run an economy off of and for and credit forever but every time that was part of the great moderation right every time we had a recession the fed would meet it with easing and that was the idea the idea is you could smooth out the business cycle and that's created a mountain of debt over a prolonged period of time and the amount of that has also contributed in real terms to structural changes in the economy and those changes manufacturing jobs are going else can't just come back overnight so what kind of depression are we really looking at here and at the end the day if the fed eventually whether it takes hands off or not eventually there's going to have to be readjustment but are we so far down that road that the government is eventually going to step in in a much more forceful way and we're not going to turn to a free market economy i mean is that pretty much gone interview we haven't had a free market economy in a long time and we keep getting less and less free. the government continues to up

the ante on its intervention and the problem is the more the government gets involved in the economy the more they screw it up and the more they screw it up the more they get involved to try to solve the problems that they blame on the free market but are actually a consequence of a lack of a free market a direct by product of government policy and government intervention but and asked your question we're going to have an inflationary depression i think that's the worst call it is going to be worse than what we had during the nineteenth thirties and every day the government only ensures that that depression is going to be that much deeper and last that much longer and unfortunately everything that the government is likely to do as a depression unfolds is going to exacerbate it and lengthen it i mean so we're not even close to having an understanding in washington of what's causing the problem and until we understand that we're never going to solve it we have to understand that the cure or the stimulus that the politicians always riess for is the reason we're so sick and the more they stimulate the economy the sicker is going to get so

going back to my point though so we're really sick right and we were really sick during the great depression and one of the outcomes was that was more government and eventually there was world war two is there any way that we're going to be able to avoid some sort of this going from an economic crisis to a political crisis why hope so i mean first of all we're a lot sicker than we were in the one nine hundred thirty s. and unfortunately the cure is is this is is no are in sight as far as being able to adopt that we know what the cure is it's just that we can't get the politicians to allow the economy to swallow it but as far as the politics i mean we're going to go through something very traumatic as a nation and it is a you know a climate where real tyranny can can flourish i mean look what happened in in germany in why our republic in the aftermath of that hyperinflation we ended up with the nazi party coming to power i mean so when you have the type of environment that we're going to have i think you're going to. have civil unrest i think people

are going to be rioting because things are going to get bad and this country and the more the government gets involved with stimulus and i think ultimately we could have price controls because the government is now denying that there's any inflation even as they go on creating it creating it but eventually gas prices will be so high food prices of lee so high that there will be a lot of calls to do something about it and rather than turning off the printing presses and raising interest rates i think they're going to look to control prices and ash is going to create shortages and compound these problems and it will be a very very dangerous environment for several liberties and who knows you know the government's going to get bigger and bigger and looking to consolidate its power maybe silence the voices of people who are pointing out the problems and i'm already got it all set up now with the with terrorists you know they've got a lot of power now because of the war on terror well they can describe or classify anyone they want as a terrorist and al thrown in jail lock away the key. people who are trying to point

out what the government is doing wrong out of monetary basis or the physical basis i mean who knows they could be kept characterized as terrorist people who are using the black markets people who are buying food or energy illegally might be considered terrorist who knows but there is a lot of risk out there i hope it doesn't play out that way i hope that we can learn a lesson from this and and understand that it is the government that is cause these problems i mean look look at all the support that ron paul enjoys among younger americans they're hearing the message they understand that it's the government debt it's the federal reserve and so if we can spread that message that understanding and we can have another renaissance a revolution of freedom and liberty that maybe we can use the crisis to our advantage to roll back government and to reinvigorate our roots so there is also doppler to me that we can that we can make a positive situation come from this but we don't know yet i mean history is inclosed always thought the way and see how it plays out. i guess some of that

hopeful but. speaking of government and government's role we had the state of the union last night and i heard a lot of the same sort of things we've heard before obama talked about mortgage refinancing you talk about student loans one of the things i find really interesting is every time we have our standard of living has deteriorated over the course of many years and one of the reasons for that is that prices have gone out of whack with people's incomes and wages and every time we have price increases it seems that the financial sector in conjunction the government want to come in and provide cheaper loans in order to enable people to buy and spend things that are out of out of reach and instead of letting price adjustment just it creates that accumulation now one of obama's latest plans is this this mortgage refinancing what is your take on that because it looks to me like all they're really doing is giving you know lower rates to people that already can't afford their mortgage not allowing price to rip to adjust and at the same time taking the liability and moving out of the government balance sheet away from private institutions this is

more of a bailout we're taking underwater mortgages out of the private sector and dumping these risky loans on the public sector meanwhile we're allowing individuals to refinance them at a lower rate of interest so those who pay are going to pay less and that means when the people who default the fault the taxpayer the losses to the taxpayers are that much greater because of the fact that the performing mortgages are paying less so this is the wrong thing to do this is more of the very policies that obama says we shouldn't go back to he's expanding them and you know the irony of you know when you talk about the student loans the president was for more student loans more aid in the subsidies for education and then he chastised universities for charging too much for college tuition why does you think they can do that they do that because of all the government aid if obama wants colleges to lower their tuitions stop subsidizing the students stop giving students. money to pay the inflated prices as

lot of those were subsidized in college and guaranteeing loans obama could scream all he was but the colleges are going to keep on raising prices if you stop subsidizing the students he won't have to beg colleges to raise to cut their tuitions don't have no choice don't have to do it right i have another question for you this sort of ties into things because a president is not expected to understand economics but there seems to be this popular impression that mainline economists these professional p.h.d. economists know what's best for the economy and when they say jump the politicians say how high paul krugman was out with an article recently and he talked about a report that came out citing how the us is not in such bad shape because it's the crease it's that relative has to do is g.d.p. which is an argument one of many that you hear at a lot and the what the thing the thing i want to point out though is that i think the whole thing about g.d.p. is misleading because g.d.p. is its gross domestic product its activity in the economy it just shows that more stuff is happening but it doesn't necessarily mean that more good stuff is

happening we had g.d.p. growth during the housing boom because people were building houses and they were taking out debt and that was and the debt was growing and g.d.p. was growing and people were saying great we're in a recovery but all of that all of what was built ended up being a liability and not an asset so how does that how does that make sense to you the whole thing about debt to g.d.p. and that being what's important well well first of all i don't know what numbers paul krugman is looking at because even though the g.d.p. is growing the debt is growing faster as a percentage that was c.e.o. and chief global strategist of euro pacific capital peter schiff unfortunately we have to end it there but there's a lot more from my interview with peter including his outlook for gold that will be posting on to our capital account you tube channel tomorrow so be on the lookout for that. and that's our show thanks for coming in feel free to call me at covering delta and as always the lovely laura lister who is in davos out lauren lyster and give us feedback add to our show our channel and you have a workout i'm going to get this from everyone here in capital account of a good night.

wealthy british style. time to. market why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines in two counties a report. the world of the.

science technology innovation all the moves developments from around russia we've got the future covered. oh. the official ante up location on the phone called touch from the. life on the. video on demand. mind will become. an r.s.s. feed now in the palm of your. machine. you know sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else you hear or see some other part of it and realize that

everything you thought you knew you don't know i'm target market is a big issue. all right. you have. the shop governments and journalists with his release of the damning video along with countless classified documents now julian assange has another surprise up his sleeve we'll tell you all about his next adventure and why it has the media all worked up. and reality through rose colored glasses with an outlook like that it is easy to forget an economy that's in the dumps and the country's countless wars i'm talking

of course about obama's state of the union address yesterday we're going to bring you the latest on why the outlook was a little bit too optimistic for some people's tastes. and also have a live report or perhaps a pre-taped report from our very own lauren lister who was on the ground exploring all of the intrigue and back scenes negotiations behind closed doors at the annual davos meeting all that and more ahead. thank you thank you thank you welcome back it's wednesday january twenty fifth five pm here in washington d.c. i'm lucy catherine of and you're watching our t.v. . now before we move on to the state of the union i want to take a moment to discuss the gloomy state of the mainstream press now it's no secret that network evening news news continues to lose influence the so-called big three networks a.b.c. n.b.c. and c.b.s. lost nearly twenty million viewers since one nine hundred eighty eight that's more

than half of the audience that they once enjoyed now the cable networks have picked up the slack but despite lofty mottos like fair and balanced partisan and divisive seems to be the name of this game and news does take a back seat to spin an opinion and you can barely hear the real issues over the shouting of the talking heads now from one thousand nine hundred eighty three in one thousand nine hundred three ninety percent of the u.s. media was owned by fifty companies last year that number shrank to six just think about that six mega corporations like g.e. and disney owning ninety percent of the media that you consume and of course print journalism is no exception struggling to stay relevant at a time when tweets blogs and online media floods through the gates which the newspapers once kept and it's not just influence but revenues and readership that newspapers are losing now it seems like there has been a transformation of sorts from watchdog journalism to laptop journalism corporate

officials war generals lobbyist senior administration officials are all taken at their word or treated with respect those who lack of standing with the establishment are marginalized ridiculed just think of occupy wall street ron paul julian assange. which of course brings me to wiki leaks of all of you to see. now the release of this video the collateral damage video showing an apache helicopter attack in baghdad ended the era when journalists were the ones to decide which leaks would see the light of day. when the video was released the establishment press balked we here at r t covered the story the day that are broken we put julian of songe on air at first the other outlets stayed away from him after all a sondre described as a terrorist but i buy our very own government but it seems that market interests took over and then everything changed before long julian assange became

a media darling gracing the screens of the cable networks n.b.c. c.b.s. n.b.c. c.n.n. fox news media publications even partnered with we can weeks to catalog and help release countless previously secret documents now it's no stretch of the imagination to say that julian a songes a somewhat controversial figure has been driven off the internet deprived of funding placed under house arrest and all this as he fights extradition attempts over sexual allegations but whether you love or hate the man it's hard to deny that his actions and wiki leaks forever changed the face of the media as we know it now two years ago we invited mr sands to speak on air and in about two months we're going to bring him back starting in munch in march julian songe is going to host a ten part series of interview programs on this network you can love it you can hate it you can watch it you can even skip it the decision is yours the show is his the topics are of his own choosing so i found it

a little bit odd to understand the headlines when i woke up this morning the kremlin's mouthpiece selling out to the russian government a kremlin pawn the cold war part two now it's funny i didn't really see those kinds of headlines in the major papers worked with wiki leaks to release information nor do i recall allegations of julian assan just some sort of general electric stooge after he appeared imus and b c i guess as the saying goes all fair in love and war and i suppose when you're bleeding dollars viewers and ratings it's easier to throw mud at others than to clean up here at home. now last night here in washington president obama gave his state of the union address speaking directly to congress and the world as artie's correspondent christine for shows us the speech contains lots of optimism only some of which were grounded in reality. for president obama america is back the renewal of american leadership can be felt across the

globe that leadership though not strong enough to win over china or even traditional allies like india south korea and japan who won't follow americans lead when it comes to cutting iranian oil out of the market and blows we've dealt our enemies. to the enduring power of our moral example america is back one question who exactly looks to america as a moral example internationally and many are actually outraged at america especially after a decision made about the us marine who led his men on a shooting rampage in her death in two thousand and five that killed twenty four civilians his punishment a lowering of his rank a cut in pay and no jail time i was expecting that the american judiciary would sentence this person to life in prison so that america could show itself is democratic and fair meanwhile bradley manning remains in custody and may for the rest of his life he's accused of leaking classified documents to the web site wiki

leaks illustrating abuses to the world in this showdown between murder and truth it appears this land of high morals lays down a heavy hand on truth world outrage also over the u.s. his failure to close guantanamo bay prison for one hundred seventy one prisoners still languish ten years on when one of the most powerful liberal democracies is behaving with apocryphally and promoting you know illegal practices and abusing human rights that undermines the cause of human rights everywhere on the planet we bet on american workers we bet on american ingenuity much of the state of the union focused on how to quote win the future to create more jobs. we have a huge opportunity at this moment. to bring manufacturing back it's a great goal though on his watch several manufacturing plants have shut down this whirlpool plant in benton harbor michigan has scaled back with more than five thousand people losing their jobs

a small fraction of what this country has seen as a whole well. doesn't understand that the reason the jobs are leaving is because politicians like him have pursued policies that have chased them out so this is a comparison between the u.s. and china this is purchasing power parity and the g.d.p. and it shows that the chinese economy will expand from eleven point two trillion in two thousand and eleven to nineteen trillion in two thousand and sixteen meanwhile the size of the u.s. economy will rise from fifteen point two trillion to eighteen point eight trillion i would take america's share of the world output down to under eighteen percent the lowest in modern times china's would reach eighteen percent and will most likely continue to grow optimism and strength must be at the forefront for the president for any president really it is after all an election year anyone who tells you that america is in decline or that our influence has waned doesn't know what they're talking about. christine for zero eight.

now there is no sign of candidate obama in the president's speech yesterday evening the one who campaigned against america's wars and acknowledge that conflict or what conflict torture secrecy the disregard for the rule of law did to this country's reputation abroad instead we heard this this generation of heroes has made the united states safer and more respected around the world for the first time in nine years there are no american spiting in iraq during the first time in two decades. but. the threat to this country. most of all count as top lieutenants have been defeated the taliban's momentum has been broken and some crunch and afghanistan have begun to come home of course he

didn't mention the fact that some fifteen thousand u.s. diplomats federal employees and contractors still remain in iraq and it took the new york times to fact checked obama's incorrect claims a victory against the taliban and of course there was no mention of the drone strikes that continuous part of the never ending war on terror where the slow but steady erosion of freedoms and civil liberties right here at home now on the domestic front the rhetoric was dripping with optimism president obama's third state of the union address laid out a vision of america in which everybody gets a fair shot at economic success and everybody including the wealthy plays by the same rules as the average citizen obama lashed out at banks wall street and the corrupting influence of money and politics it was almost as if the president was speaking down in zuccotti park so did obama's words resonate with the occupy wall street movement well for the answer let's turn to activist and daily coast writer jesse le greca who's with us in our new york studio jesse would you make of the

president's speech. i think there were good things in there were things that were not so good i think is the rhetoric matches the tone of the country because working class people need an answer and the president certainly can't go out and tell us that things are going terrible and that there's no recovery in sight so he tries to trump up what the wonderful recovery we're undergoing and how america is coming back but the reality is that that hasn't reached the average person on the street people in their neighborhoods don't see that taking effect and what we need is more not just nice words in the speech well it's interesting you bring up the issue of more more presume sort of action by the government and you know one of the themes of this speech was fairness the of the idea that everyone has a fair shot i want to play you a quick sound bite that i think we have from president obama yesterday millions of americans who work hard and play by the reins every day this is a government and a financial system to do the same it's time to apply the same rules from top to bottom no bailouts no handouts and no cop outs on america built to last insists

on responsibility from everybody and just say you don't see anything potentially i don't know hypocritical about what he just said i mean it sounds great but any indication that there's actual action to back up that kind of rhetoric. well that's the tough part you know they mentioned yesterday the president during his speech that he was going to launch an investigative panel looking into wall street crimes and a lot of people like me say that's three years too late i mean just look at what m.f. global did under john kors on they was truly billions of dollars and when you ask him where the money went they said i don't know. people like me on the street it comes off a little hypocritical and it's very hard to take a president who is so closely aligned with goldman sachs bankers in his cabinet serious when it comes to holding wall street accountable i think is best covers the fact that the other party in america is even worse than the democrats are i mean mitt romney raise more money between the top five banks than every other

presidential candidate combined in two thousand and eleven and that includes president obama so what are our choices when i say i want more i mean more action we're defending consumers from predatory lenders more protecting worker protecting workers be giving them the right to earn a decent wage by fighting these ludicrous right to work laws the average person needs to see that happening faster if this president's going to get reelected jesse whether we're talking about you know the president the democrats or the republicans do you think the problem is that there aren't the right laws or the right best to get of panels in place or do you think that we're missing the willpower and i on the part of the politicians. i don't think it's a matter willpower nor is it a matter of the right panels we can have a million panels we don't have the right people in charge of them and you know there's a perfect example of corporate capture of these regulatory agencies the f.c.c. is a great example that they don't do their basic job it's malfeasance so to someone like

myself who cares a great deal about accountability i would like to see the people in power who are put there in order to change the system not get along and go along with everything you want to press me that you're going after wall street fire tim geithner get some real regulators and as you say you are going to force those was instead of slapping financial institutions on the west with an easily affordable fine i think the rhetoric needs to match the action and the rhetoric sounds great right now i'm waiting for the actually kick in well i wouldn't hold your breath if the past few years have been any indication and my question i guess as someone like you what do you do i mean do you stop voting and completely remove yourself from the political system do you go for the lesser of two evils when it comes to whether it's the president or are local candidates i mean what do you do when the system is as it is and you want change and you don't want to completely tune out. well to me i think the worst thing individuals can do is not vote i think by not voting we empower the special interests that want to dominate our democracy and at the same time i tell

people local politics matters a lot and those elections are often decided by you know maybe a hundred votes or so so if you really want to change your neighborhood i'd say get involved in your local politics you know be a voter maybe even be a candidate if you think that the candidates in the field aren't suitable but in the long haul one of the nice things about this president has a positive message as compared to the other guys i mean if you look at john mccain's face last night looked like there were a bunch of teenagers you threw their friends be on as well along yesterday it's a positive message and that's all well and good but we need action behind it and i tell people you know you need to be that action don't like these politicians and hope that they're going to do the right things because they do it out of the kindness of their hearts make them do it you know politics is a game of sticks and carrots i think we need lots of sticks nowadays and very briefly just i mean you said it was a positive message but what about truth telling i mean isn't it do we need a positive message to make us feel good or do we need someone that levels of the american people and spelled out that konami situation as it actually is. i think we

need a little bit of both because what happens is when we're very depressive it turns people off and that generates the same load of road or low voter turnout that benefits the special interests want to game the system so i think it takes a little bit of both you need to be honest and you need to come from the heart speak frankly of people but at the same time you need to give them a reason to aspire to more not just vote against the lesser of two evils well i guess if the politicians don't step up to the platform at least citizens are in the form of occupy wall street just like that thank you so much. activist and writer for daily lives. still have the one percent and some world leaders have arrived in davos for the world economic forum who makes decisions to break through get through the period made who can you trust no one who is you with a global reach where we had a state controlled capital it's called sasha when nobody dares to

ask we do our tea question more. well you see there is an official agenda at davos and then there is an unofficial agenda at davos which is one that you also hear about and also that you see when you're on the sidelines and not in all of these sessions that are kind of the official program as far as the official program yes it did open up today with a debate over capitalism but as you mentioned this is a gathering of capital as this is a place where business leaders come to advance or corporate interests it's become known as kind of a premier opportunity for networking for c.e.o.'s of some of the biggest multinational corporations wall street banks to network amongst each other also with political leaders central bankers and all of these big wigs so back to debating capitalism yes we heard on the stage some concerns about capitalism some criticism about capitalism also we heard some defenses because of course that davos the.