tribe members went on a two month long march in protest but now other communities are asking president adam carolla is to continue the project saying it would bring much needed k'naan development to the region. militia leader has been killed after a suicide bomber targeted his home in northwestern pakistan rival militants have claimed responsibility for the attack which follows previous clashes between the two groups in which hundreds of people have died three other people including the man's son in law are were also killed in the blast and eight more were injured. britain is preparing for the greatest show on earth and taking the possibility of a terrorist attack in the summer olympic preparations are calling on all corners of the nation's defenses but as bennett reports such measures may not only turn the capital into a siege city but simply proved to be ineffective. spectators may know who they're watching at the olympic but they won't know who's watching them surveillance drones

like this could be circling the skies of london this summer police may use the spy cam lympics anti terror tactics it'll leave no hiding place the drones can make out a car's number plate from heights of up to one kilometer privacy campaigners fear is the start of a slippery slope i think it be our salute tragedy for britain the largest part of the olympic legacy was i. see where we install this equipment in the name of national security and then when the other bits are over we keep used very very serious risk to the privacy that might not be adequately protected a spy in the sky has been piloted before in britain police forces never took off after one crashed into a river and the u.k. aviation authority failed to grant the necessary license that's the only legal requirement before this sort of surveillance becomes a reality at the olympics

a minor hurdle for what's already britain's biggest peacetime secure nation total cost over one point six billion dollars it is worrying that the security bill has increased so drastically from initial estimates one of the reasons being given for this heightened risk which seems incredible as. well i'm when the original estimates were made around the time of the london bombings when london was considered to be a very high risk so it seems incredible they got the estimates so badly wrong in the first place commandos speeding up the thames is one answer to a myriad of perceived terror threats this time a hijacked passenger boat they'll also be warships and get on the thames attack helicopters on standby even ground to air missiles ready to launch or vance before you even get to the security on the ground to give you an idea of the numbers take the olympic stadium capacity eighty thousand ground security at the games is enough

to fill sixty percent of that inside the venue will be over twenty three thousand security guards along with seven and a half thousand military personnel and then outside a further six thousand troops along with twelve thousand police total just sawyer fifty thousand the budgets ballooned by a hundred percent because initial estimates were woefully inadequate but that still couldn't stop two fake bombs being sneaked in under the radar at the stadiums dummy runs not exactly great value for money london organizers have tried to play down fees the olympic village will be a siege city but with such a massive security operation the plan the limb pick legacy of international friendship may not be the one that's actually left. after bennett r.t. london. the latest e.u. effort to save the euro underway in brussels is off to a characteristic start with leaders of france and britain arguing over which of

them has more industry exchange came as the two often at loggerheads looked to downplay disagreement and mutual distrust instant however was an isolated poland set to join a euro zone demanded greater say in. a speech argued against access. and pressed the greeks to complete debt talks with its creditors there was one result however with twenty five of the twenty seven e.u. nations agreeing to a german fiscal rule that would limit deficits and a new bailout fund appalling member of the european parliament says democracy could suffer as a result of this will go into primary e.u. law through secondary legislation which means that the people can be bypassed there will be referendums across the continent particularly in iowa where there should be a referendum on this and what will happen is they will bypass the people and it will go straight into review and they will get exactly what they want and it is a complete affront democracy the scary thing here that you have is once you start tinkering with democracy and trying to change things i think you know the very

slippery slope could indeed they're trying to put a lot of pressure on greece but the germans have but you can almost a budget commissioner martin's to oversee their budgets surtaxes is quite frankly an affront to democracy the oldest democracy in the world and if i was in athens at the moment i'd be out on the streets demonstrating and axed our in our interview from the e.u. summit we hear from martin callanan and. he believes staying out of the touring for britain well here's a. we can give our opinions but you know we did not join the euro we advised against the euro being created. we've pointed out to many pitfalls that there would be along the way that looks like they're finding out the hard way you know you can compress seventeen countries economic one currency zone operating seventeen different economic policies i.

have brings us up to date here on r.t. and business news is next with natasha. hello you're watching a business on our. luxury market currencies are seeing the best start of the year since the turn of the century that's according to the financial times as global appetite for risk increases the russian ruble along with the mexican peso and the brazilian ryall have albert form the currencies of the industrialized nations most of them good more than five percent against the u.s. dollar for first thing sharp losses of the recent months by contrast the euro and the pound gain loss them one and a half percent against the greenback but analysts want emerging market currencies remain pretty risky local regulators are likely to intervene and hold currency appreciation to help exports. european leaders on monday have managed to marry

growth and austerity at their first summit this year twenty five out of twenty seven e.u. nations agreed to a stricter budget discipline but britain and the czech fuse just signed the document that imposes sanctions on members breaching budget rules some analysts hope the move brings europe a step closer to a fiscal union but also from the to be calderon's says the new rules will be pretty hard to follow i think has to implications naturally not all countries will be able to adapt and be within. and inevitably will leave or start paying penalties and would prefer to to get out of the euro so there's. not be as many countries using this current solution which is not particularly great for intro europe trade and the second thing is they will gradually see more rifts between the european nations and may be able to give the euro will all become

a currency for only the strongest will survive. and the sign now to check out the first states gaining value. is more than one hundred and eleven dollars and i want to equities asian stocks opened lower but they've managed to rebound they're trading higher this hour exploiters are still under pressure in tokyo and stronger again but industrial companies are pushing tokyo out of the red and hong kong the hang seng is gaining thanks to energy stocks including petro china and china petroleum chemical corporation. and here in moscow the markets are on a positive note tracking the upbeat sentiment in asia the r.t.s. is up more than one and

a half percent in the second hour of trade while the my six is gaining around one of the four percent. and now the biggest movers on the y. sexes burbank has higher on ease concerns about the euro debt prices and as you majors are also higher with ross daft more than half percent of the block and russia's biggest drugstore chain thirty six point six is among top gainers that's on the news that a plan still going at drug discount chain to boost sales. stronger oil is pushing the russian currency higher against the dollar however the ruble is still a lower to the euro the dollar's also lower against the european currency as some progress has been made in talks with the greek bond holders as i mentioned already . samsung will open more than one thousand branded corners and russia's top mobile phone retailer euro set the south korean giant hopes the move will help boost its market share the company will spend between two and fifteen thousand

dollars on setting up each quarter euro sets the number of such branded outlets within its chain could grow to three thousand within the near future last year some song managed to grow its share to thirty six percent and that's compared to around forty percent held by its rival nokia. and that's the latest from the business while back about fifteen minutes faulting it on. the.

wealthy british soil the sun. is not on by the time. markets 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 tune in to kaiser report on our. morning news today violence is once again flared up. and these are the images the

world has been seeing from the streets of canada. giant corporations are on the day . welcome back here with our to reminder of the top stories syria still reeling from escalating outbreaks of violence as its blight spreads to new york where u.n. security council members seem unlikely to reach consensus on the younger us. occupy d.c. protesters dig their heels in as they wait for a police crackdown after the deadline to leave their camps said by city authorities passes. plus a bittersweet victory for the euro twenty five e.u. nations signed up for stricter death rules while the czech republic joins the u.k. in rejecting the much hyped proposal. up next we have the latest kaiser report and

today our teams financial pundits next guys are reveals his uncompromising take on the pillars of the global economy. this is the time as a report. in the new. mags that's right from barry ritholtz in the word of the day the debt or a zombie debtor is a noun and indebted consumer who is only able to pay the debt interest each month. the debts never go away they only pay the interest they're always in debt and this applies throughout the entire economy not just on credit card debts but mortgage debts and i think a touch of the consumer now if you look at the bankers of course they're involved

in a very interesting situation in that they never pay interest on phantom debts. they loan into existence phantom debts that are on collateralized that they themselves only understand the configuration thereof but they never have to pay interest i were to get awarded norma's fees so here you have the two pillars of society zombie debtors who never escape and clown bankers who never have to pay debt so the zombies and clones yep wherever there is a zombie debt or you can be sure there's a zombie creditor and as zombie central banker feeding the mom the fed is starving economy of interest income so worn most lawyer a former broker manufacturer and co-founder and distinguished research associate of the center for full employment and price stability says the fed is part of the

problem rather than part of the answer this is why we have so many zombie debtors he said it would serve public purpose if the fed made it clear that in today's rate environment what's called quantitative easing in fact removes interest income from the private sector thereby functioning much like a tax and a source of what's called fiscal drag as it takes net dollars out of the economy as it reduces the federal deficit well you're right if there were not this design be dead or effect you would have a creation of interest income which would form the basis of the capitalism something called happy tall. without the capital all there is no capital losses i'm . getting them the hood disease of the the capital you should have taken that conversation to max the whole world would be devoid of the zombie bankers i

wanted to make a protest igloo in davos that looks like fun rub noses with some of the locals or most of them go. on to a second point he said this brings up my second criticism with regards to the interest income channel lowering rates in general in the first instance merely shifts interest income from savers to borrowers but he then goes on to say that while income for savers drop by nearly the full amount of the rate cuts costs for borrowers haven't fallen that much with the difference going to net interest margin of lenders thus you're enabling and feeding and empowering the zombie bankers and you know think of those with a capital is flowing through the economy it's a pipeline of capital if you will and the lower interest rates have the effect of the shutting down the pipeline of capital and causing deflation the central bankers are saying well we need lower interest rates to increase liquidity in the system that's patently false it shows that they have absolutely no idea how this economy

works so unlike a chris whalen for example is a true banking analyst will tell you in order to get the cash flowing again you need to start to raise rates and incentivize banks to lend it to each other or those creating the basis of an inflationary scenario that would create the jobs and the growth that some people say is their objective but clearly it is not but let's talk about this point here max because you've often talked about raising rates and all the time you hear screeches horror that this cannot possibly happen because when the fed cuts rates by five percent as it has done over the past two years we get point zero five percent taken off our interest rate so we have to pay for mortgages all the rest goes to the bankers all the rest is taken from savers and shifted to bankers so there is a vocal portion of the population who screech isn't in horror and pain and their

voices get heard out over the people who are savers and who could possibly provide the capital from which capitalism can once again return to the american economy. in the currency yours asymmetric they lower rates but the benefits accrue ninety nine point nine percent to the lenders the financial establishment on wall street very little of the benefits go toward people who are in the consumer economy who are the basis of the economy toward lowering their rates so there is no no of no benefit on the consumer side on the banking side it stifles lending within banks and creates a illiquidity which is of course contributing to the deflation and then the central banks say we don't know why there is deflation because we keep shutting off the liquidity don't understand why the taps of liquidity are drying up it shows

a pattern of psychosis which i think most people now understand i think most people understand that in fact the intent is not for no money to go to the zombies because those are why would you ever want those peasant zombies to ever have any money again to pay off their debts you want them just eking eking eking out a lie a tiny tiny sort of subsistence level what you want those zombie shrieking to empower and to enable a vastly growing sector the finance sector lloyd blankfein gets more powerful jamie diamond gets more powerful the banking sector gets more powerful exactly because of this squealing desperate zombie debtors look at all these pension accounts like cal pers for example the biggest in california one of the biggest in the world there they assume seven percent return on investments which assume interest rates of four five or six percent interest rates for them because in less than one percent or close to zero their return last year was one percent and they're just being

a centrally discarded by this form of economic or financial pressure and as it's called there's a technical term for financial repression so former chief. columnist from morgan stanley asia was interviewed at davos along a similar theme as well stephen roach explains how the fed is pulling the wool over our eyes so we have a lot of squealing zombie debtors in america and the u.k. and other debt debtor nations australia canada any time the notion that rates should be raised they shrieked and it never happens well stephen roach talks to bloomberg and he talks about the fact that china is actually doing a lot better because they've introduced over a dozen marching requirement rate hikes and they've also raised rates so that real interest rates are actually in real terms positive and then he goes on to say this when he's asked whether or not this would be possible in a democracy in a democracy do those actions do there you know who truly never met paul volcker

well you know but do you suppose you know excellent question tom i mean you're told as paul but we need we need a central banker who can really deliver. the goods and we've got central bankers right now who are i think trying to pull the war as was zero interest rates in this magic called quantitative easing yes well the paul volcker example is a good example they had the inflation they came after next and closed the gold window and you had gold spiking in price and you had massive inflation stagflation and came in raise interest rates and set the stage for reagan reaganomics reagan just inherited everything that volcker position the head of that economy raising rates increases competition because it forces out the speculators who are merely parasitical in their behavior the bankers are just being parasites they want to lower rates higher rates would force those guys out and

bring in entrepreneurs who are doing something other than just financial speculation it would be the best possible thing you could do for the u.s. and global economies to start. raising interest rates forcing out the speculator parasites giving people what savings the return of their investments the pensions and also the effect of raising real wages so let's go on to more of this magical thinking economist versus americans a new survey finds that just twenty three percent of americans say they trust u.s. financial system that is that as low as the earliest months of the economic crisis and sixty two percent describe themselves as angry or very angry about the nation's economic situation the highest level since march of two thousand and nine now this is a study done by the university of chicago and northwestern university they also have a specific question they asked those they surveyed and they said predicting the stock market very few investors if any can consistently make accurate predictions about whether the price of an individual stock will rise or fall on

a given day economist sixty four percent strongly agreed that you can't predict markets where americans overall fifty four percent agreed that you can't predict markets that means forty six percent of americans believe that you can magically predict where markets will go and so max does that explain to you why they might be losing money to brokers them and bankers well there's two points there the first point is one of the financial illiteracy now the fact is that rising interest rates would benefit consumers benefit the economy benefit wage earners benefit retirees benefit competition look at the comments underneath this video as it's playing on the internet right now read the comments below this video that you're watching right now look at all the comments from the financial illiterates who don't understand this basic financial concept and that is the part of the big problem the second problem is in terms of predicting stock market results and prices only broken markets are predictable markets that are functioning are unpredictable

that's what makes markets the supplier of cheap capital are all the losers who can't predict out. coms provide cheap capital for their winners if it were predictable you'd have price fixing and then you'd have more of a state can purely black heavy hand of the state controlling the entire market that's not that's not the what the market's all about the sole moniker of prediction markets is completely false that there is no such thing markets cannot predict but let's talk about beyond prediction markets the actual financial markets that we exist in live in today in our economy because this is bizarre that that's what thirty six percent of a condom is believe you can predict outcomes and it is the maestro alan greenspan i think that helped brainwash the economy into believing that you can create outcomes with this magical wand and magical thinking but that's exactly what stephen king

says indeed bunking economics is that the number one chief. it ill conceived notion of economists is that you can predict economic outcomes or market outcomes and it's hard coded into the basic textbooks of economics that somehow economics is a science like chemistry where the outcome can be predicted that's false economics is like a social science where the outcome is completely unpredictable and the second you understand that the second you understand why ben bernanke and his crew are complete charlatans by putting forward some other theory it's simply not true look at the track record over the past ten fifteen fifty one hundred years based on the central banking theory it's been a catastrophe so as ever thanks so much for being on the kaiser report thank you matt. and won't be why our shirts match. it's a magical the go i am much more coming away stay right there.

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 that everything you saw. was a big. welcome

back to the kaiser report time out of london this big of that man the leyland asset management that welcome back to the kaiser report thank you max them wearing a special fill with oh i just you know actually now that silver is well over twenty percent of the twenty twelve and it's in backwardation so first tell us what is backwardation backwardation is the opposite of can tango normally in the precious metals market you'll find it will show you effectively the trading halt rather than lower and backwardation effectively shows that the extreme tightness in the silver market at the moment with. the spot contract for a day really just a smidgen high. in the front munch month which is march in and this is very very bullish and particularly in precious metals one wouldn't expect to see that and it does appear to be being created by the problems with m.f.

global bear in mind precious metals in the most sensitive investors overall counterparty risk and of course what happened with m.f. global was an extreme counterparty event and that leads many people to leave the futures market in the pressure is going to the spot market which is very bullish for twenty twelve and i see this is being a major change ok last year the powers that be the central planners of the central bankers who don't like precious metals because it makes them look stupid when they prices go up they were raising margin acquirements and trying to get people out of this market but at the same time m.f. global and j.p. morgan stole people's i tell it money right out of their account so all of that work for nothing because now people are dumping their rig market j.p. morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is

clear indication of the silver ball market is well in place and going much higher i would imagine then yeah absolutely and bear in mind as well we have the the second element of this which is the fact there are exploited back in the market for three hundred million dollars where the physical of course when he announced his first purchase of physical in think it was oktober of twenty ten. i says around the sort of eighteen dollar twenty dollar level and when you consider anything about a market it's got extreme physical tightness like silva does and someone comes in and demands delivery of physical in size it was no surprise to see that as a major catalyst to the run up to fifty dollars that took place over a period of about six months i think it's very interesting that we've got backwardation and sprott back buying in size and bear in mind that this three hundred million is only one fifth of the over.