you know our country has never managed to collect world about twenty percent of g.d.p. in taxes so there's a mantra lose to what you can turn to when you want to spend more than that it shows up in the offices and karl you know i know you've suggested a balanced budget amendment but i have a hard time believing that politicians wouldn't just find some way to get around that when it became too difficult or when it was you know some kind of tough times in the economy that we needed to spend more you know in their words what about doing something more what about making politicians personally liable for their promises to rein in spending or balance the budget or whatever by tying that to i mean i would say compensation but we know that politicians compensation is that really you know what they're as hooked to as realize what if we say hey you know you can't run for reelection if you don't do what you are what you say you're going to do. i would love to see a change like that i don't know how you'd ever get it into the law i mean it would have to be passed by the very people who lose their job it's the same problem we had with the seventeenth amendment which gave us direct election of senators

instead of them being controlled by the states i believe it when we wrote the final history books on america that's going to prove to be the fatal flaw that we enacted but you'll never manage to repeal it because the senate would have to repeal sensually their own jobs which isn't going to happen so there are certain things that are one way roads in all political systems and i think this is one of them well that is a real bummer karl on how what we're going to do then but let's talk about real quickly bankers because. i know we talk about money and politics and you talk about how the bankers are the very people that have bankrolled these politicians and give to their campaigns on both sides of the political aisle but in the u.k. i mean come on we have the c.e.o. of r.b.s. which is you know bailed out by the taxpayers who had to give up his one billion pound bonus and now the past leader of r.b.s. there stripped him of his knighthood if you ask me that's how you do it you get bailed out you collapse the economy we're going to take your money and we're going

to take your manhood like you we did i think that you know i think that would be a good idea you know it wasn't all that long ago that if you were a banker and you went out of business you were held personally responsible you couldn't hide behind a corporate shield in everything that you had went away and you might even go to prison there's plenty of opportunity to put that kind of a war into effect the problem of course again is that the bankers are the ones that are bankrolling the campaigns and so you would essentially have to alienate them in order to make that happen i just feel like there has to be some way around it i just don't know what it is and in europe if we can continue the conversation on that how do you punish politicians there when you don't have even elected officials that are running some of these budget reforms and governments at this point you have technocrats that have been installed and italy and greece how do you how do the people and the benaud's democracies have any say. well you throw people out of

office that's the way that traditionally you hold all politicians to account question is whether or not the people will actually listen to an adult conversation about the fact that these promises have been made cannot be paid for and you cannot have government services that you know willing to pay for with taxes and does that is at the root of all of the problems both here and in europe i don't know if the people are willing to accept that conversation in the consequences or whether or not we're going to end up with a disorderly collapse as it is a result of them not being willing to do so we keep seeing them perpetuate this and kind of keep everything on life support where we just have been minute but at what point do you see this reaching the end of a throw. well i think disagree situation may approve the trigger but if not there was a report cozy apparently is about to lose in his reelection bid later this spring and if that was to happen and the people that came into power behind him were to repudiate any idea of balancing a budget that would almost certainly set it off because france is such

a huge economy and has such a huge banking system yet it's funny i was talking to the chairman of society generality said that he thinks bank and france are just doing fine now that they have this liquidity from the l.t.r. a program that's for another day though i appreciate you being on the show great insight that was karl denninger he has the market ticker and he's the author to. before we go it's been a little while since you've gotten to see me and dimitri and shannon go at it so let's do it today here's dimitri kovtun as our producer and shannon donahoe in the control room to talk about this angle on the eurozone crisis we've been talking

about it today the fate of the euro and the eurozone nations well and i'm unemployed irish artist decided to build a house out of shredded euro's one point two billion dollars worth wonder where it got him you know the saying the euro is considered the house of cards by some now we have a house of euro's air go what happens now. bye bye house the euro. if you get. the big bad wolf is going to blow down the house of euro and this guy is going to be prophetic this irish unemployed artist you know i think my first reaction when i saw it was. funny but i think it's actually you wouldn't have seen something like this how many years ago where they would make a house out of the national currency there was more respect for the national currency i think it's telling of where we are today where people have such

obviously they were torn up and they were worthless but still symbolically it's interesting that people don't respect the law and i don't know if i agree with you because i was talking to a brit who actually he's not a brit he's french but he works in the in the u.k. for morgan stanley and he was saying that in london and in the u.k. everybody views the euro as a house of cards don't you think that the u.k. has a totally different perspective on the euro that maybe someone in france or germany or they're going to be careful they wish for because the pound is worse than the euro because they are in the straits now where they can't print currency and there's a concern about an actual break up of their monetary union doesn't mean that they don't have bigger fiscal problems than europe so i think that's funny who you care to share with this guy i don't know i don't know who stores everywhere but that's an unnamed source you can take it up with him after the show shannon do you found anything to add to this pig little pig euro house debate. at least she's recycling government waste that's that's more of a really good point it's a really good point this is putting it to really good use making

a symbolic statement with waste with. the word agree on currency level areas ok let's move on to something that might not be totally worthless but kind of close if you're in the market for a new car this is one that you could own it is u.s. president obama's old car junker. an illinois resident is selling it it's his old two thousand and five chrysler they're selling it on e bay the car is worth about fifteen thousand bucks if i remember correctly they're trying to get a million dollars ok now the president traded it in with nine hundred thousand miles on it no bids yet auction ends on february first these are actually the pictures from e-bay i think that this is a little bit of a sign of hope that no one has put in a bid for a million dollars for this crappy car wow it was obama can you zoom in on that again because i just saw that right there is that a metaphor what those three will like is it's upside and a metaphor for what you mean obama is driving the car. you know you know i don't

know why is that upside down i like it that's very l. and so maybe maybe it's a permanent it's a kind of a he sees the world upside down there you go maybe that is jones everything maybe that's why no one's put in a bid for the one million dollar car i mean come on that's absurd shannon can you imagine someone actually coughing up that amount of money for obama's old car i mean i think the guy is just selling it at the complete wrong time i mean if he was selling it when we had that hope and change we could believe that maybe he'd get something for but now it is all good fortune all laid out over there serve the new republic all right i came back from davos and shannon is has this new philosophical outlook and you're working with only you for a week to see what happens in the world of money you get to see how to develop. ok . meanwhile. let's talk about commodities because a combination of severe drought and historically high grain prices continues to drive hate prices higher leaving no way for horses and animal rescuers are actually

being flooded with horses because owners can't afford to feed them it's not a happy situation you can't penalize the good people out there with horses that are doing the right thing it's the economy and it's the price of hay what is the price of hay right now it's about twenty dollars bail. and last year about this time it was about nine that's a big change nine dollars to twenty dollars is this and that global rattling the commodities market is this one more fallout over the shame because obviously we already have a transportation crisis in this country with fuel energy that we're. going to see here the arts and we you know the one talk of the just one just when i thought there was another solution that goes back to a more sustainable economy with horses and i heard doubles in price so well you know it is because they're there in rescue farm so now we could take foreclosed homes give them to renters and give them a horse in order to get to work and that's our solution that will end on for our show thanks so much for tuning in and please follow me on twitter at lauren lester

and give us feedback on the show at youtube dot com slash capital account i'm lauren lester and from everyone here at capital count thanks so much for watching and have a great night. wealthy british style. time to. go. to. market why not. find out what's really happening to the global economy with mike stronger on no holds barred look at the global financial headlines tune in to conjure reports on our.

time like a well trained. religious. ruins. thailand where time stands still. all becomes a sea of nothingness. the mysterious sounds of russia on our t.v. . news today violence is once again flared up. and these are the images the world has been

seeing from the streets of canada. china operation to rule the day. the situation in syria takes a turn for the worse but as anti-government protesters resist president assad's regime artsy questions of who is really behind the bloodshed and who stands to gain from a country and crisis britain needs to lead the way they should be deployed to the sanctions the travel bans the asset freezes in syria. and while the drama plays out in syria back at the u.n. leaders are discussing ways to intervene but not everyone is on board our teams own on the stasi a turk and i will tell us why russia is saying that regime change is not the un's

job. and out of the u.n. be so discussed syria the u.s. is meeting to discuss its own national security and rewriting its list of enemies will tell you who tops that list. it is tuesday january thirty first five pm in washington d.c. i'm liz wahl and you're watching r.t. . well the west now calling on syria syrian president bashar al assad to step down a draft resolution formed by the arab league and backed by the u.s. and european union calls for assad to hand power over to his deputy the west says the move is aimed at bringing peace and stability to syria where violence between government forces and rebel fighters rages on now the u.s. and e.u.

stand behind the resolution but russia does not moscow says it will block the u.n. resolution over fears the move will allow the west to militarily intervene in the country and russia is one of the five council members with the power to veto the resolution artie's honest. joins us live from our studio in new york. what is the latest over there out of the u.n. security council meeting. well liz as we speak the u.n. security council meeting is underway where our top top notch diplomat spearheaded by u.s. secretary of state hillary clinton and her british and french counterparts are trying to push through this very tough resolution on syria at the security council they're talking right now these negotiations are expected to continue today tonight as well as tomorrow with a possible expected results are vote on thursday and now it's important like you mentioned that a battle

a very serious one looks likely to be under way because as you said russia and china the veto holding members of the security council do not back this resolution now specifically what they stand against is the rigi regime change that this resolution initiated by the arab league and backed by the u.s. in the west is calling for and it basically says that the syrian probe the president needs to step down if this does not happen the international community if this does not happen within fifteen days the international community would have the right for quote further measures and this is something that's really ringing a bell to russia particularly it's a little too reminiscent of the libyan scenario for more on the really position that russia has been expressing let's take a listen to what the russian foreign minister had to say about this earlier it's not a part of russia's foreign policy to ask leaders to step down regime change is not our job the decision must be solely syria only syrians groups of syrians must gather up the groups using table and hammer on to deal with the good if the demand

is for him to go and he doesn't know what's next we've called in the air force bombing we've seen that already and the security council will never approve i guarantee it. well what's next lou is a very serious question is because one of the mean points for russia is avoiding this libyan scenario that we've seen to unravel earlier where the u.n. security council passed a no fly zone but what took place was actually a full blown military intervention so this is something that russia looks likely to keep fighting against at the security council and the on the international arena in the days to come now i know that the secretary of state hillary clinton is trying to make her case as to why everybody should come on board with this resolution do you think washington will be able to convince russia to back it. you know right now this looks pretty unlikely we've heard from russia's foreign ministry and russian officials who say they will not back this sort of resolution earlier in the last

year to be precise russia and china already vetoed a resolution against syria that was calling for sanctions against the syrian government and in this shape or form shape and form of the current resolution being proposed and pushed attempting to push through by the u.s. russia will not back this resolution so it's going to have to take some very intricate diplomatic work for the u.s. to try to get something approved by the rest of the security council namely russia and china in these days to come and russia is one of the countries that does have the power to veto it if they refuse the what are the implications of this. well if they refuse you know a resolution just simply can't be passed at the security council if russia vetoes it or china so this is just not going to be a document that can be implemented of course another scenario that russia certainly would not like to see happen is countries beginning to intervene in

a one sided manner where they could still go on go ahead and act on on the on the by themselves but this is certainly something that nobody likes to see including the united states even though it's spearheading this the last thing it needs right now is to intervene in any sort of aggressive manner in syria because you know how many wars can it participate in and lastly on assad. to what extent can this situation in syria be compared to libya. well you know we heard just minutes ago secretary of state hillary clinton say that comparing this to libya is false but this is certainly not how russia china and many international experts are seeing this there's certainly a lot of comparisons to both the handling of the situation in libya and now the syrian scenario this is exactly why russia is not backing this document is because they don't want to see a full blown military intervention in

a country that if there is still a chance that this could be solved within syria what russia's been calling for is negotiations between the government and syria on the opposition and it's offered moscow as a stage for those talks so while there are still other options any sort of aggression and regime change is certainly something that countries such as russia do not want to see happen right now will be interesting to see how these events unfold over there at the u.n. security council thank you for keeping us updated that was our correspondent on the . so what is behind the bloodshed in syria r.t. sarah ferguson is on the ground with the latest. with the sounds of. the face first from the streets and the increasingly loud and numerous international opinions britain needs to lead the way in making sure we tighten the sanctions the travel bans the asset freezes on syria.

the syrian case has developed and every side wants to push away the responsibility to a modern are tossing the ball back and forth. in the last few days the situation has become so unstable the fighting people willing to talk right now was present just a close. we've had tanks entering in firing and just enjoy what we've had six people who've died we travel to the suburbs where some of the clashes have breaking out to try to get a clearer picture of what had been happening here in the last few days in one of the damascus at the moment now we were traveling to. visit but we just received a phone call telling us that it's not safe to travel. with the situation. to show you really. don't know what's going on in these areas even the people who are living in these areas don't really have the situation at the moment we make it into

the southern using that the opposition that just last week had control of some of these areas have now gone underground. there was a funeral for a resident of died in the fire during his funeral people and his relatives were voicing slogans and called for freedom so someone was shot during the funeral and we had to go and hide from the security forces. were taken to the f.s.a. . join as well and there's talk turns to people they know who have just been arrested in the changes and the atmosphere starts to feel hostile so with such uncertainty right now it seems mistrust is roy. it seems not to have convinced the free syrian army that coming closer to the capital would be simpler now this is harmful to the cause of bringing peace to syria. everyone it seems is no waiting to

see what if any outcome they'll be and the un's briefings by the arab league's will having to halt. the whole reconciliation talks it's not want to be simply dismissed as many have already done they have do political they have two political reasons for. for for feeding the complicated in syria i think they don't want they're not interested in the form nor are they interested in democracy or freedom was the government accepted the invitation received mixed reactions from the opposition they size of being they call in the past in calling for a syrian solution to a syrian problem that it's repeatedly failed to communicate no opportunities for dialogue are running out fast. and with such desperate pleas from many people here the opposing sides continue to make it clear they don't want to listen to the calls the international lection just going to keep getting louder so. you

know this. well today the senate held a hearing to address what the u.s. views as a worldwide threat from the rising power of china to cyber war concerns to iran's nuclear program the u.s. is finding much to fear these days that was once al qaeda considered to be america's top threat but today it seems iran is what scares the u.s. the most there is despite iran and even top u.s. military leaders coming out and saying the country is not built. thing a nuclear bomb so what is behind all this fear mongering going on today while ray mcgovern former cia analyst joins me now welcome to the show right so the number one fear in the u.s. today seems to be iran and you know from our government leaders to the g.o.p. presidential candidates we're seeing these debates it's almost like a competition of who can be tougher against iran so i mean and do you think that

these fears are justified they're not it's a synthetic stoking of fear. you use the words word synthetic you know. maybe you know elaborate is manufactured if you look at the polls seventy percent of the american people believe that iran already has a nuclear weapon that's exactly the same percentage of people in two thousand and two who were persuaded by what i call the phone in corporate media to believe that saddam hussein was working on nuclear weapons it's bizarre what do the defense ministers of america and israel say they say as panetta asked him self on face the nation. the readings working on nuclear weapon no. what does a who peroxide in israel his counter code apart he says you know if the marines were working on a nuclear weapon they would have to kick out he would inspectors we would know that

and they don't want that at all they are not working on nuclear weapon they have not yet decided to do so so the facts are the offense ministers both intelligence agents and say the way they say it is they have not yet decided to do no nuclear weapons well that means that the i mean simple english means they're not working on a nuclear weapon now. clapper. channel or former general clapper who's the head of national intelligence and patrol yes they almost wore out the subjective mood you know it was always if the iranians decide to go for a nuclear weapon if they choose to do so you know it's like going to war in the subjective mood and that's precisely what i was criticized for for saying we did ten years it's exactly ten years ago before you rock going to war and if on a contrived synthetic if i've never seen the like of it now that you said earlier

seventy percent of americans believe iran currently has already has made it what you're about i mean what could be behind that misconception i mean i don't think that is totally not factual really good question you have to take five steps back and say what is this whole about is this about a nuclear capability right now it was about is about regime change we haven't changed the regime in tehran in fifty nine years don't you think it's about time that we change the regime in tehran the israelis lost big time when we went into iraq because the big beneficiary of our expected extirpated in iraq was iran now they've lost the trip to the south of list turkey to the north they want regime change in tehran unfortunately the. influence among u.s. policymakers are so strong that they constructed this imaginary threat about this nuclear weapon so that they can do sanctions that they could do four hundred

millions dollars worth of of covert action in iran to perhaps elicit a reaction from iran where they can stop them with the military means that's what the name of the game is and people should realize that because you know it's very very close to the kind of situation that happened exactly ten years ago it's almost bizarre deja vu all over again this time it's not iraq this time it's iran and israel is a big decision maker here now what was really interesting is they in feinstein who's a very pro israel person admitted that she had been meeting this over the weekend with the head of mossad the israeli cia so that betray us all what they talking about the iranian threat well you know why don't they talk to the radiance about him he threatened you mean so willy you know it's really really really unconscionable the way the americans are being rallied around a new war with iran i discussed i want to ask you after the motivation is regime

change or who stands to benefit from such a change israel does you know. iran is the sole remaining. superpower we're the sole remaining superpower there are regional power in the middle east they have a good sized army navy and so forth now israel doesn't want to have to compete with that and so they resort to all kinds of hyperbole here here's a caress the relatively progressive israel newspaper saying the president seeks shimon peres said today that iran is not only seeking regional but quote even global hegemony iran wants to be king of the world you know that's hyperbole on steroids we ought to recognize it as that we have to put it in perspective if the israelis want to the iranians to get rid of the regime to empower the american

people should know that before they send their sons and daughters into war with iran absolutely american should be has formed informed as possible before making such a big decision as going to war you know we have heard from high level military leaders even here in the u.s. that iran does does not have a nuclear weapon so why don't we hear more talk about this well i think it has to do with who controls the media the media is controlled by what president eisenhower called the. complex the military industrial complex and they make big money out of wars it's also dominated by pro israeli people i mean look at who does who does all these shows look at the new york times they wouldn't even the new york times the washington post wouldn't even report some of the things that panetta and the who broke said so there are great to forces in this .