football team or something like that you know once you get all those pads on you get on the field you're not thinking about the other team or if they're right or wrong whatever it's just sort of a. it's just a response it's just what you do you're in the game and you want to win and so i think that the responsibility falls on those people that put the police into those situations you know it's not so much the into the individual actions of the police and being there protesting as the cottage park what did you find in common with the occupiers. i found a lot in common i feel that. it's most people don't understand what the real protesters like i mean there's the ones that make the news the ones that are newsworthy that have been sort of slapped a little you know on the covers and on the news stories but that's not the real protest the real protester is just like me getting down there when they can after work or after school when they can for a few hours making a sign walking around doing what they can. it's a lot of hardworking people that

a lot of very informed people i've met a lot of professors teachers some of the smartest people i know down there that have a incredible grasp of the economy and the political situation today and ultimately as a protest now a knocking on at occupy wall street what do you hope to achieve and what do you hope that the movement ultimately achieve. well i think that the movement is is achieving great things in that it's letting everyone know that they are not alone and that. we had always had this idea that you just accept certain things that you know not everyone really fully gets participate in democracy and that's just the way it is and now with this movement everyone sort of realize that around the country around the world around the city there in everywhere around him there are people feeling just like them like they're being left out that they're not getting to participate that their vote isn't being

translated into an equivalent amount of democratic or spatial and people are going to take it anymore their thank you so much for sharing your story with us that was iraq war that occupy wall street protester and author of the buck when i wished i was here this batch is from fallujah. and we are going to take a sharp break but stick around to the british government at the national security matter to the people being stopped and searched that's great says up coming up well take a look at these two very different viewpoints. let's

not forget that we had an apartheid regime right now that. i think. either one well. we never got that says they're going to keep you safe get ready because you give them their freedom. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else hears you some other part of it and realize that everything you just don't. think.

well you're up ruled it illegal but police and bar and continue to stop and search people whenever and wherever they light with little grounds for suspicion the area of society which finds itself most often targeted believes there is only one reason for it the police are institutionally racist artie's ybarra bennett has more from

london. and that package is going to come up and a moment now but right now we're going to give you a preview of what's to come later on and today we are going to talk about the national defense authorization act and president obama now is implementing that law for the first time. in our history it's a very controversial law and we also have more on the threats the threats a u.s. house and senate committee is going to investigate a lot of threats that are perceived right now that is coming up at the five o'clock show right now we're going to take a short break. let's

not forget that we had an apartheid regime right now. i think. he'd want to well. whenever the government says they're going to keep you safe get ready because you get their freedom. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you sure see some other part of it and realize that everything you saw if you

don't i'm sorry. we apologize for those technical difficulties a little earlier and we will bring that story it's you in the upcoming show right now that we are going to give you a preview of what is to come on the capital account that is up next on our t.v. but check in with lauren let's start to see what is on the agenda hi there laura a

that i don't we look forward to you can look forward to let me just tell us so the eurozone leaders will eat you they they came to agreement on a fiscal treaty and meanwhile there's reports that banks will borrow more from the european central bank this time around so really the bigger question is is this all symptomatic of a system that still has not really been changed has not really been reined in has not really been looked at since the financial crisis and we're still seeing the effects of this as we are dealing with the eurozone crisis as we're dealing with the problems in the united states and as we're on the day of the florida primaries we want to ask what would it really take to hold politicians accountable for the promises they make about reining in. deficits about reining in spending about keeping their promises to tackle the country's fifteen trillion dollar debt because it's not enough to make promises they are basically allies there's no punishment we

want to ask maybe if there is you know a different look at things maybe you can't run for reelection if you break your promises well that is a lot of interesting questions you raise there laura that is all coming up next on the capital account that's going to do it do it for the news we will see you right back here and a half hour stay tuned. for the. people calling like you said for free and fair elections. and we're still reporting from the. as you can hear behind me loud explosions. oh a. technology

innovations all the developments around russia. the future. a soulless substance. in a touch like a well trained army. villages in ruins. for thailand where time stands still. all becomes a scene of nothingness. the mysterious sons of russia.

are teaching. the fire. 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 everything you thought you knew you don't know i'm tom harvey welcome to the big picture. mission and free accreditation free cruise for judges free. range month free risk free studio type of free.

download free broadcast quality video for your media projects and a free medio dog r t v dot com you. good afternoon and welcome to capital account and more in the store here in washington d.c. and remember this. particular word all day a lot of our customers are freaked out waiting to see how loved ones are down we'll go. well it's been more than three years as a financial crisis and we never cleaned up the mess now we're seeing the consequences so just how close are we from having this happen again and why haven't we been willing to pay the price of change and the e.u. has a treaty deal meanwhile banks are set to double crisis loans from the e.c.b. oh yeah everything is just fine in europe banks are just fine in europe they just mean perpetual bailouts as all and from bailouts to ballots florida residents cast

their votes in the republican presidential primaries consider this we've heard presidents before talk about how bad adding brilliance to the debt is ok responsible. and then they do a complete about face once they're in office they lie to get elected it shouldn't pay to lie why don't we make presidents members of congress elected officials personally liable for their promises they can't run for reelection if they break them you don't rate in the deficit you don't get to run we'll talk about it let's get today's capital account.

you know we just don't know how this euro zone crisis is going to play out we do know this though the greek government and a lot of other countries in europe cata forward to pay the totality of their debts you can add the u.s. to that list too but let's stick to europe for now because the same goes for banks check out this headline bank set to double crisis loans from e.c.b. all right there you go and anyone who wants to dispute that should go back to two thousand and eight and take a long hard look at this speech is being made back then by george w. bush by people like hank paulson at the height of the financial crisis take a look at this this was when the house first rejected the seven hundred billion dollars bailout bill and the dow plunged seven hundred seventy eight points the largest one day drop in history. we've experienced significant turmoil in or from the markets in the last few days including the collapse of washington mutual in law school year and the failure of two major financial institutions in

europe. that prices show the emperor has no clothes and still the us has too big to fail banks zombie banks propped up by the federal reserve we still just see u.s. public debt getting racked up by the trillions as unemployment is still depressed while our addiction to debt has been fed by the public purse the government stepped in to borrow and spend when the private sector collapsed and there's just so much we didn't learn and didn't change in the u.s. after the financial crisis despite all the promises of house leaders made on the floor during the debates you can go back and look at nancy pelosi john boehner they were all saying that for example we didn't pass regulation there really change the way banks operate ok we have basil capital requirements but how long are they going to take to implement and the volcker rule in the u.s. yeah sure they're looking at it but you have all of these contingencies fighting against it and no one in power seems all that concerned not really least that's how

i felt at davos listening to these guys and that's not even taking into account just how fragile our economic model is we were looking back at videos from two thousand acres that's what we like to do in our spare time during the financial crisis let's just move wind a second for you watch this. the concerns continue to be the leveraging that we are seeing around the edges for the other investors the recessionary fears that were brought to the board today by the fact that the economy right to for the first time sixty years. listen did you listen to just how vulnerable our entire economic model is vulnerable to the realities of life in real life prices don't rise forever and economies don't grow every quarter year over year over year forever but that's what we expect that's what we're obsessed with growth propping up the system to

keep it going at davos speakers were harping about growth no differentiating between good growth and bad growth just come on we've got to grow and we've seen how it ends so what we have to look forward to let's talk about it is here he's blogger and radio host of the market taker is also author of this book leverage how cheap money will destroy the world so he's got plenty to say on all of this carlos nice to see you thanks for being on the show thank you for having me absolutely so the video i don't know if you could see it that we played from two thousand and eight the the cut lines were wall street expects collapse and nasdaq drop below october tenth low but what was really interesting to us was not that but the ingrain expectation that price is always had to rise and economies always had to grow and the moment that wasn't true all hell broke loose it really seems like our very models aren't equipped to deal with reality do you agree. you know there's there is a fundamental disconnect between the fact that any time you have

a system where capital can be went out of interest you are inevitably going to get recessions and in a recession the people who are the most imprudent both in wondering and borrowing go bankrupt that's basically what a recession is that you have too much stuff being produced for the economic demand the problem is that when we have governments borrowing that is their make political promises to spend money they don't have then the government can fail and that's much more serious than joe's car dealership down the street going on dirt with shoes shortly going to be replaced by another car dealership because somebody will step in to provide that service or that good when the government goes under of course it's much more serious and this is what everybody fears right as we see sovereign debt crises going on right now which i know you've been talking about i want to get to that but really this conversation we're having about the very system is that at the core of the problem still today we're just running around dealing with symptoms without really dealing with the disease that we've built an economy

and a financial system on a faulty set of assumptions. we never took care of the problems in two thousand and eight and the biggest issue we have in the united states right now is that we still have financial institutions that are holding various debts on their books and on realistic prices and this is one of the reasons that dollars in market will clear because we have banks that are holding houses and loans values that have no representation to reality but if they were to mark those things it reality that you show big losses or possibly be rendered insolvent and until that problem goes away and we stop propping these institutions up we can't have an actual economic recovery we've got the same problem with a sovereign level but it all boils down to the fact that we have these people who have gotten so powerful politically of the largest contributors to both republican and democrat candidates both sides of the aisle are these very same banks that caused this problem and are holding these loans and properties that are unrealistic

valuations and i want to talk a little later about the politics but let's stick to the mortgage crisis let's go back in time to two thousand and eight i want to play you a little snippet have a report from the mortgage crisis meltdown during two thousand and eight all right now the banking system is so clogged with mortgages there's no credit available and so ok so now fast forward let's bring dimitri and dimitri get in your ask your question echo what we thought was really interesting about that was that that sam b c anchor was talking about how the system was clogged in other words it wasn't clearing the mortgages mark learning through the pipes but all that happened was the private sector debt was transferred onto the public balance sheet and now three years later it looks like sovereign debt the backstop of the fee up money system is now clogging the pipes and there is nothing else to roll that debt into so where do you see this going from here where it's the sovereign debt that's the issue. recognition of the problem is going to come whether we like it or not and so you're seeing this over europe but it's also true here in the united states we just got

done with another year with more than a trillion dollars being put on the public balance sheet eusebio was out this morning saying that there was going to be another trillion for the next fiscal year but this cannot continue forever. as long as we continue to allow these institutions to pretend we're going to continue to have this system where in the united states for example we are representing in g.d.p. in our economy approximately ten percent more activity than there is actually private demand to fund that cannot keep going on and that's what led to the crisis over in europe and it's what's leading to the crisis here in the united states and yet governments are still trying to make up for the collapse in private debt by substituting it with public spending and just to give an example of what this looks like i was speaking to a governor of a state and davos and he was talking about how his medicaid costs have soared in the last couple of years because of he said in one part it was inflation it was prices going up and he said the other part of that was just

a lot more people on medicaid and he said his staff literally does not have a solution for him for how much these costs have exploded for their state so does this really get to the problem of the unsustainable system that we can't deal with ever rising prices yet the attent is to keep propping prices up. there's the medical problem is all from cost shifting and attempts to sustain a system that has been designed on the back of the unsustainable we all want the perfect heart bypass and all of these advanced technology and treatments and yet the fact is that medical costs at the federal government level have gone up over nine percent a year for the last thirty years last year the federal government spent about eight hundred twenty billion dollars that means that in about eight more years we will spend one point six trillion dollars in fifteen sixteen more years we'll spend about three trillion dollars well three trillion dollars is awfully close to the

size of the entire federal budget so that's obviously not going to happen and yet without addressing this issue head on and saying ok we cannot have a system that has a nine percent growth in expense when our economy is growing at two percent or we will all go bankrupt is at the root of what's going on and it's not just in the medical area it's also in other parts of the budget but the medical is the most acute and the first one that will fail and you know with what we're talking about with an economy if we want to use an analogy you know you can train athletes and you can give them steroids but at some point both the natural you know training and coaching and the artificial stimulant is going to reach the end of its rope it's going to reach its limits and the athlete is going to stop winning and will probably have bad side effects too from the steroids maybe you know baird if you're a woman or some breath if you're a man but is that where we are as western economies where does this go if we don't bring in a new athlete and keep trying to push the old one instead. if we don't stop what

we're doing we will end up with either a sovereign collapse or an economic collapse we're both in and we're running out of time to deal with this in the united states in globally the simple fact of the matter is is that governments cannot promise to their citizens more services than they are able to tax in the present day in this is something that just showed up in a recognition over in europe they've now got this new deal that supposedly is going to go in effect where they can't run deficits of more than one half of a percent but over in the united states we are currently running deficits of about nine percent so you know they may be kind of figuring it out over there in europe but we better get on the stick over here in the u.s. as well what about people who are all that would say you know the stock market looks pretty good january was just poised to have its best month in a decade until it kind of took a dive today the u.s. dollar is looking pretty good relatively speaking to other currencies i don't know what you're talking about are you crazy well that's what everybody said after bear

stearns went down in two thousand and eight the stock market took a little dive and then it recovered and everyone said happy days are here again in ben bernanke he told us that subprime was contained and it was all going to be ok and six months later everything went right down the toilet yeah and yeah when i was a loser is then at the end of the day is not everybody is going to be a winner who is going to be the major loser here just real quickly i think at the end of the day what you're going to see is those people who have become dependent upon the government cheese are going to end up being the biggest losers and it's not going to be by choice it's going to be by force which is an unfortunate result and i want to talk about some political solutions when we get back we're going to go to break real quickly but we will be back with more with karl denninger. the family and still ahead drivers start your engines because bidding is now open for obama is old chrysler on e bay the price may have had to break so we'll give you our three cents on that the first your closing market numbers.

you just put a picture of me when i was like nine years old and just you know look true. i have a confession i am a total get of friends that i love driving hip hop music and. he was kind of the guest today. i'm very proud of the role without you she has played. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something

else hears you some other part of it and realize that everything is ok you don't know i'm charged welcomes a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is you know maybe you know with a global missionary see where we had a state controlled capitalism is called sasha's when nobody dares to ask we do our t.v. question more.

welcome back so it is the republican presidential primary in florida so let's talk now about attempts of elected officials to rein in the debt and the spending let's look at how it's gone here's then u.s. senator barack obama back in two thousand and eight tocking about president george w. bush adding four trillion dollars to the debt we've known are over moen trillion dollars over. there but we are going to pay burke. dollars for every man woman and child ok responsible. patriotic yeah it sure is only the problem is that obama has added five trillion dollars to it that's in only three years into his term annualized that's almost three times what bush spent we have fifteen trillion dollars in debt national debt what punishment those illegals have if they don't do what they say at the end of the day the political system rewards complacency so to

talk solutions let's bring back in karl denninger blogger and radio host of the market ticker and author of the book leverage how cheap money will destroy the world and karl i'm really curious what incentives at all do politicians have to not lie about things like you know deficit spending in order to get elected and what incentive do they have to do anything about us to school problems. absolutely none and what you've seen from barack obama appears to be an acceleration of what george bush did but in fact he's just following the geometric series that we've done over the last thirty years so we didn't change anything and that's the problem at the end of the day is that this is the nature of geometric functions everybody learns about them in about the eighth grade the united states and yet we all forget about them as soon as we go into public office because you can't buy votes if you don't promise to spend what he's told have it nobody likes higher taxes and at the end of the day the government.