but you do see more months like that is a bit better than expected news well of course but let me put some else out there this is just another illustration of these layoffs themself we wanted to take a look at permanent versus temporary if you take a look at this chart blue line these are people who have been permanently laid off forty nine percent compared with those temporary layoffs down there for the past year at just nine percent so just kind of some important things to show there that these are other factors structural problems in our economy another important fact that factor to mention is unemployment among sixteen to nineteen year olds these are you know the youth unemployment these are kids who you know maybe they want to save to buy a car or some clothes they've been working and lower wage jobs anyways that number is stuck at twenty three percent joe talk about this what you've been researching in terms of this factor and why it doesn't seem to be changing the i mean that's

one of the interesting things that also makes in this recovery sort of unique is that we're seeing some changes in labor force participation one issue is that people aren't retiring as they used to because their retirement the account have been decimated and so on and so the older generation is that actually holding on to their jobs longer and you know sort of crew has a ripple effect and that means job openings that would come to other people are no longer happening so this kind of you know what happens in one demographic affects another but clearly we're seeing some pretty big changes and then there's just an overall effect that hurts as a patient rate is shrinking more the wall more people as a percentage of the total population are working so we're seeing a lot of changes in the complex mill. and i know you have been writing about these jobs numbers all day and one of the things you wrote about was how these jobs numbers might affect president obama's reelection chances. talk

a little bit about how you say that his record of the way better than you know the month before he took office going to a little bit of detail about that well yeah i mean again sure with all of the coming to be better and create more jobs but one of the i would say there are two things one is that if we keep having one like he's going through november then it's going to make it very hard for anyone to claim that he hasn't done a good job even if unemployment is still an element which it probably will be but the temple action is long and people feel the direction is right why are people going to want to. change why are people going to want to change but i mean the question joe is that yes these numbers are going in a positive direction but the fact is nothing seems to have changed in terms of the structure of this system in terms of some of the problems that got us into the deep recession in the first place that is not changing so i mean it's hard to say that don't you think it's just as possible for the next month to see

a fluctuation in the other direction. it is possible and that's the thing about you know if you go back and look at recessions they do have a tendency to come out of nowhere things will be fine and then you get a couple of weeks of bad data for whatever reason and then things turned down but it's also important to remember that for the most part on a couple things for the most part. growth is the norm in the economy recessions tend to be rare and then there's the only thing i think about two thousand and eleven think about all the different countries us so there was the european crisis it was earlier in the year the nuclear crisis it was a time flood later in the year that was the oil spike due to the arab spring and the economy came out of it pretty impressively so think about what two thousand live in money to look like without all these sort of bizarre interruptions if say two thousand and twelve you know is looking a lot quieter in europe you know you don't want to knock on wood and you never really know what the future's going to hold but in a way it's actually

a testament to the resilience of the u.s. economy right now and with all of the shots against it own i didn't even mention the debt ceiling and the confidence shock that that happened in the summer when you think about the shock the u.s. economy has taken in the last twelve months i actually think this is something pretty impressive well i mean i suppose those are important points to make but and it is that the year has started off much quieter but the european crisis it is not over there are still some things sort of teetering on the brink that we don't know talk about that i mean. what could happen in europe that could just change everything around here. that's right i mean you should be sort of flooded europe with liquidity and it's really calmed things down about the banks failing banks are buying government debt more gas of a moment things are quiet but is absolutely right there are these really big fundamental issues in europe especially greece and portugal greece is right now trying to work a deal to restructure their debt of creditors and there's no guarantee that it will

work. every day is kind of becoming just a running joke that i'll really close for one day away from you or something and that's been going on for the last two weeks now so let's say that it was really badly that triggered you know then you good maybe see a domino effect nothing sold at all we're going to don't then we're going to don't any debt again in your back and prices so you can't be sure of is going to stay quiet for a while there certainly are reasonable paths. to discern a reasonable path back to crisis but on the other hand you could get crazy. from all corners of the world at any time and i would say people can't permanently live in fear that the other guys are going to come up he has more crises will come up and most likely it's the one we're not even thinking right joe weisenthal deputy editor at business insider thank you well for so many people this has been a tough economy and you often hear stories about people getting creative to try to

earn some extra money on the side well it turns out more and more people are turning to whips and chains that's right can anyone say dominate tricks whether it's a full time job or just a little spanking on the side in some cases people are making three hundred dollars an hour artie's honest osseous are going to take a look harder look at how some women are whipping their way to wealth. when using devices most wouldn't go out anywhere near their naked parts you can smell the ocean you see to whipping conversion to islam or you can. to humiliation on vacuum beds. welcome. to b.d.s. i get really turned on to be somebody a practice enjoyed by some of the rich and powerful looking to be punished for their bad deeds in a six year way despite what some may think the d.s.m.

is not just a set of kinky games professionals have recently been discovering that economic and social realities taking place in the us get reflected in what clients ask for behind closed doors the economy is kind of you know giving them some tough times and they still want someone there with them into shape but maybe with the more of a softer hand every time there is another. book or guantanamo outbreak we get calls for people who want to be interrogated now we're getting requests for corporal punishment kane's rods punishment is called for and they're all the same people are now coming in asking to be caned wall street bankers you know no actual sex is performed we are legally constrained from doing anything sexual and we always tell people if you don't like that write your congressman or. dungeon such as this one how long our hands can be cuffed by the side of the head

people come in here with a great deal facial piercing we can tie them up but their face practice is not talked about in public i don't know in my lifetime of b.d.s. on is ever going to become so accepted that a corporate banker can go into his office and be like well schedule my session with my dominatrix today at three seventy and have it be ok this means getting new clients can be tricky most men don't like to let their friends know that they're seeing someone who's spanking them. so shins at several hundred dollars a pop have taken a nosedive in the tough economy b.d.'s on particularly tends to be something that someone treats themselves to like a fine meal like a show a piece of art something that's very important to the life that is a luxury and so when new money becomes tight luxuries are the first thing to go making it tough for some professionals to keep making good money it's usually not consistent work one week you might do really well the next week could be dead be

a sim pros see their business is better for the long haul unlike adult films or stripping tricks for twenty years you can't you know it's very difficult to be a prince or for twenty years and in a ruler coaster economy what more than a long lasting career can one ask for and those who churkin are or to new york very interesting stuff there is nothing a lot of people won't look to for in this tough economy well coming up next thinking of the economy the capital account let's check in with laura lister to see what is on the agenda lauren you got any dominator access on the show dominator it says no but i have a singer he's got a song about the fed if we're lucky enough they'll sing it to us before he goes on to debate economist dean baker later tonight we had him first to talk about yes jobs ok we got that number out today people are excited there's a few things i want to add but i want to get to kind of the big solutions we hear a lot of small solutions to economic problems we're going to talk about how to end

the fed well right now that would look like right sounds good lauren that's going to do it for us but for more on the stories we covered go to our t.v. dot com slash usa we will be back in a half hour. oh sure is that so much i know i am going to hold right on a long time so here's any of my sweet was a presidential campaign become a horse race pitting incumbent caracal bamma against republican mitt romney if this is really the case i would.

leave it. to the. that's.

good afternoon and welcome to capital account happy friday i'm lauren lyster here in washington d.c. duis unemployment rate dropped to eight point three percent for january naturally it was cheered at a good photo op for the u.s. president barack obama to say the economy is improving but. these numbers will go up and down in the coming months. there are still four too many emerged and. the job that pays better than the woman whom. we couldn't agree more in fact a large chunk of those people who finally found work last month landed low wage jobs and yes numbers will go up and down but those that haven't been able to find

work for more than twenty seven weeks that's six months well that number isn't really moving it's stuck at five point five million youth unemployment is stuck at twenty three percent and there's more don't worry we'll break it all down speaking of work say happy birthday to the u.s. income down acts as we hear rallying cries this presidential election season for raising taxes in the u.s. we have a different message for washington stop stealing from us before you even think about asking for more of our hard earned cash how about start by getting this stock act done to try to curb insider trading in the halls of congress we'll have a little more advice to share but also we've heard time and time again we've heard it from us republican presidential candidate ron paul. it's time we not only all of the federal reserve but all in due time get rid of the federal reserve. and the fed we've seen a growing number of people get on board with his calls we've heard people say hey

that's just crazy talk luckily author jeffrey tucker is here to break down how exactly the economy would work without a central bank very exciting let's get to today's capital account. so people are pretty optimistic about these new u.s. jobs numbers that came out showing unemployment tick down point two percentage points to eight point three percent lowest in three years but is even u.s. president barack obama said these numbers will go up and down so i want to take a look at the bigger picture and some of the downside of this report lucky for you i've got some numbers to throw up so the long term unemployed that's longer than

six months was very little changed at five point five million this stunner for me that accounts for forty two point nine percent of the unemployed that's a big number now the number of people employed part time for economic reasons that was little change that's eight point two million now these are people who were working part time not because they want to take some time off but because their hours have been cut back or because they're unable to find a full time job youth unemployment among sixteen to nineteen year olds that's twenty three percent that's stuck there and per bloomberg about one hundred thirteen thousand of the two hundred forty three thousand jobs added are low wage jobs that's according to a strategist at c.r.t. capital group so given all of this there are some proposals some solutions to tackling the u.s. economic problems some seem like they're really just aimed at the symptoms though of a sick economy throwing money at the problem you could say no pun intended then there

are some who want to perform surgery we've heard republican for republican presidential candidate ron paul for one called end the fed. you can't paper the money in secrecy bob the federal reserve it for can this is a creation of well we have gotten the attention the american people dealing with our monetary system and the federal reserve and it's time we not only audit the federal reserve but also in due time get rid of the federal reserve. and then there are some people that say come on that's insanity you can't really end the fed so let's talk about that let's talk about how this would actually work we criticize the fed a lot but i want to know how we could really know why it's been around for a while now so jeffrey tucker is here lucky for us in studio he's executive editor of la is a fair books contributor to the daily reckoning also author of this book it's a jetsons world private miracles and public crimes which i luckily have a copy of right here and cannot wait to read but first i want to welcome you to the

studio thank you so much for being here pleasure to be here so i want to get to the jobs numbers there as yes those are big news today but as i said there are some solutions in light of these economic problems that seem like band-aids and then there are some that seem like open heart surgery that you don't know where it's going to go and one would be this argument to end the fed we've heard from ron paul we've seen protests occupy the fed protests in the u.s. we've seen him in europe at the e.c.b. first before we get to how to get rid of it what's your case against the fed well i think it's very interesting we live in a country where we've returned that we love capitalism we love free market we love for him to pause and then we have the central planning apparatus that's running our money and banking system we've only had it for one hundred years all throughout the nineteenth century there are debates we have a national national bank going on and typically was the mercantile as the state is the national is the people that want to grow government and have a kind of a nineteenth century version of big government programs who always love the central

bank but we do have one bank it was getting ever more centralized and every time they made a bigger more problems and finally in one thousand thirteen they create this. interbank and look what's happened over since you know the dollar is now worth less than a nickel of what it was at the beginning of the business cycles have gotten worse we're more in debt the moral hazard associated with the financial system is just growing worse and worse we're making our problems even worse now all bernanke so called those solutions are actually just first of all in their worst problems down the line and that's why i think if we in the fed right now ron paul is exactly right the only thing i would take i was a qualifier says in due time will do this or that you say do it today look as long as this thing is a row i'm going to you it's like if you go to doctors poison in the patient you go to for the guy ok and that's what i think we're doing slowly when a patient about to cut it off you've got to because they're going to keep pursuing the wrong solution everybody more or less agrees that the problems of the housing bubble that we just went through were created by the low interest rate policy

during the two thousand and that they created this problem and this contributed substantially to so what do we do now we got bernanke you reduce interest rates to zero yeah we like contra natural laws and say they mean we've had positive interest rates since the beginning of human history and now this guy shows up a little bit on meet interest rates is get rid of it and it's funny when you look at the federal funds rate after every recession since one thousand eight a lower and lower and lower till there's literally nowhere to go but jeffrey tucker let's really break this down because yes there is a case against the bad guy here and you say it's only been around for one hundred years but it's been around for one hundred years and this economy we've seen financial services grow is a huge chunk of a this how do you realistically unwind that at this point and what's the impact of the first thing the first thing we have to do is get we've got to have the hands off the yield curve and you know everybody these days thinks that the fed controls interest rates well look interest rates are part of a free market economy it's a kind of a price of time it's something it's like a price of shoes of price of potatoes or anything else there's a price attached to the food let it freed up which has happened on some of us

interest rates would rise that would be very good in many ways but that's what i want to ask you if we just ended the fed right now what into. straits just i mean even when we mentioned ending the fed when they just shoot up to what twelve percent and we'd have massive defaults massive foreclosures massive unemployment and a depression i don't know about the unemployment of the pression part but the thing is that interest has to be good for savers right now as it was needed break there being looted every day and i couldn't agree more but what would be the damage let's be honest what would the damage be if all of a sudden change or a straight shot up to twelve percent wouldn't we have massive foreclosures massive people cast out on the streets i mean i just don't know how you know a little markets are attending if we can loosen up so labor's directions like minimum wages and a new regulation stuff like this labor markets to the resources we go to most valued labor resources nobody wants to work in a job and a booming economy we're going to get fired eventually anyway because the stuff that sustainable so i don't believe in sustaining unsustainable booms so if we let the

market take care of it then we see some reality we're living in a very distorted world right now we don't really even know what these numbers mean we don't know if the banks to really solve the holding all these assets of the surprised yeah everything's kind of chaotic and we were flying blind right now when you're going through the unemployment unemployment numbers we don't really even know it was let's say on the amount you know it's going to play distortions introduced by the federal reserve and it's a massively distorted bank and so the basis is broken right now i mean the banks that no longer doing what they once did i mean they think hank can't make money i mean you don't even know when you say now what is a bank do you don't even know you don't answer to that but jeffrey i want to we interviewed here at dimitri did the by former vice chairman of the federal reserve alan blinder and he asked them about this issue of setting interest rates i first want to play you what he said about the fed's ability to properly forecast the economy and know where interest rates are let's take a listen to that. it would be a better world if the people at the federal reserve had perfect foresight and

had a perfect model of how the economy works so they knew exactly what to do at exactly what moment that's a fantasy now what it means ok so he kind of admitted that the fed doesn't really exactly know where interest rates are supposed to be if the fed doesn't know how do we know that the market would know and how does the market sets whether markets every does everything through a decentralized way it gathers information from every individual actor according to the buying and selling decisions of individuals and. explain the process this generates a greater knowledge than any individual has right now we have this i don't know if you've read those transcripts from the f a mostly that came out recently from two thousand and six but you know the fed is a dysfunctional corporation i mean it is just crazy i mean it's like a comic routine reading these guys ok well that's what i want to ask so even a more nefarious way i guess part of the reason the fed was created was because of public opinion it was against a private banking cartel has the fed sell that or do you can now have a public private cartel yeah that's really what happened i mean eventually the

government basically nationalized the base system in cooperation with the banks and you know there are now two sides of the bait the republicans more or less want the fed to be controlled by the big banks and big corporations and the democrats want to turn it over to congress and i'm saying there's a third option this is you know we don't we don't need to nationalize banking system you know this is go back to free market going further and so we're not just need free banking but we should consider private production of money it was i've heard is very argument in the years of the industrial revolution people made their own money and it worked beautifully and it could happen again today especially in the digital world where it went online and yet there's no money and you know it's more common you see these attempts and since the internet opened its opened its doors we've seen more and more attempts to try to create digital currencies we should give it a try and in fact this is the whole suggestion that you and i did that's no idea. let me ask you this though you said the fed's only been around for one hundred years there were times where it was done just fine without one but i want to go back to this interview with alan blinder because one of the things dimitri asked

him was if the period between the second bank of the us and the civil war was an example of the market being able to set interest rates and it was called the wildcat banking here's what alan blinder said. i mean the best way to answer this is that we didn't call it the wildcat banking era for nothing wild cats or wild cats and they sometimes produced very dysfunctional results and they did. so mr jeffrey tucker mr whiskey and gunpowder are wild cats still as y.o.l.o. they once were you're not wild they're the indefensible making at least they're producing local problems that were solved locally and now we have national and international problems that are solved on the internet of the never solved so long and agree. to be far preferred and we have to look at what caused those banking things were at least they went bankrupt you know i mean this is part of the free market is that you not only make profits make losses too so we need a system of banks do can and do go belly up bankruptcy can be a sign of

a healthy functioning progress in the economy but those wall down there are a lot of consequences where hurts but at least everyone think he'll when you're really sick sometimes you have to carry but at least if you have competition you have conned of working towards excellence in service of the customer you know over time the markets are never straight move forward all the time but you know the wall welcome back who's also very much influenced at the time by all these kind of railroad records that were going on and these little mini explosions of booms the bankers even back then were working with the politicians you know child yeah that's true that's true we went on and what led to the creation of the fed is that the banking system ever more wanted to kind of have a puffy life where everything was perfect we're protected from market forces all that still happens but right after jeffrey tucker before we go to break really quickly we know it's a confidence game these days that is i mean i think part of it all how do we know that everything the financial system wouldn't just collapse once everybody knew that we were ending the fed i don't believe this i don't believe you know everyone

about this two thousand and eight that we've got to have this gigantic trillions of dollars in bailouts or that it's all propaganda you know we would go through a little bit of a tough time would be tricky but the market does amazing things every day for us you know from giving this group. trees and digital media and i phones and everything you can make from the bottom of the. i think the market can handle money and buy things just fine we just have to let it have a chance and all right well we have to go to break quickly when we come back i want to hear your song if you can give us a preview that a fed song will have more with jeffrey tucker so stick around. and still i head to say happy birthday to the income tax and write your wish list for what you'd like government to give up before they talk about raising it we will after the break the first your closing market numbers.

you just put a picture of me when i was like nine years old until she told the truth. i confess and i am a total get over friends that i love driving hip hop music and. he was kind of the jester day. i'm very proud of the will without you she has played. oh oh oh. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear see some other part of it and realize everything you thought you knew you don't know i'm charged welcomes

a big picture. of . 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 human view with a global missionary see where we had a state controlled capitalism is called sessions when nobody dares. to ask we do our tea question more. welcome back to capital account let's get straight to it because geoffrey tucker is in studio it is the birthday of the income tax and i think he has

a birthday wish for it he's author of that book you see there jetsons world private miracles and public crimes so jeffrey tucker it's the birthday of the income tax started ratified in one nine hundred thirteen now we hear this discussion around this presidential election about raising taxes we have an idea that capital account before you even talk about raising taxes for any of us you've got to sacrifice there are washington you hear that you need to cut the waste fraud and abuse you need to eliminate all of this stealing one good start would be this act that supposed to curb insider trading can we bring up that comic really quickly ok so this we love dad i'm considering a career in organized crime the dad says government or private sector i mean that kind of sums up what we're saying what do you think it's not fair for you to sack and for you to ask us to sacrifice more washington until you can you know get it together well that's been true for a long time a couple hundred years actually. another bows and we've been talking about the fed but in one thousand thirteen yeah they're true.