news and eye catching videos for you twenty four seven at r.t. dot com that's our website here's what's waiting for you online right now hungry for power the muslim brotherhood demand egypt's military rulers sack the appointed prime minister and replace him with their own candidate. and c.i. a spy jailed a former engineer from the the military cosmodrome gets thirteen years behind bars for selling secret data on russian intercontinental ballistic missiles to the united states more on that story at r.t. dot com. afghan president hamid karzai has ordered an investigation into a nato air strike that killed eight children on wednesday this comes a week after the united states announced it could hold combat operations in afghanistan earlier than expected but this strike could worsen already tense relations between cars and washington amid a mounting civilian death toll journalist kind of porter thinks that foreign actions are to blame for the growing number of casualties. this is the price that

afghanistan pays for having foreign troops on its soil troops which carry out operations that are based on at best imperfect intelligence and worse simply lack of fundamental knowledge of local situations and mistakes that are made which will result in innocent people being killed completely unnecessarily the numbers are growing clearly because the telephone has continued to expand its operations in response to the growth of u.s. nato troops part of the taliban response and i would say the single biggest part of the response has been to lay more and more i d's this is the primary way that the taliban has been able to find to kill u.s. nato troops and even more so to wound seriously u.s. and nato troops. down pretty from around the world this hour in world update and

first to pakistan where eleven militants have been killed and over a dozen wounded after local security forces fired artillery shells at their suspected hideouts the crackdown took place in the tribal region where dozens of died in fighting between soldiers and insurgents over the last few weeks pakistan's military has been conducting anti terror operations in crime since the beginning of the year. a planned strike by police and low pay could jeopardize next week's notorious annual carnival despite an agreed pay rise of thirty nine percent over the next two years law enforcers are demanding double similar industrial action in the city of solved also the murder rate double one hundred twenty killed during a nine police strike thousands of soldiers may be deployed in brazil's capital to provide security. germany has delayed signing an international internet copyright law after the justice ministry voiced concerns the anti piracy called known as actor stirred up mass protests across the world that fall. several

countries to perspire on its ratification the legislation is to slash the amount of pirated online content while critics say it would harm freedom of speech. hungry central bank is literally burning money to help keep people warm in europe's deadly cold snap the bank has been pumping what's of disused notes in the bundles it can be burnt by those in need of heat banknotes are being provided as a free source of fuel for the past four years and it is particularly great now with hundreds perishing in the conditions across europe over the past few weeks. marrying the person you love and living freely with maybe a basic right in most democratic countries but apparently it's not always the case in israel israeli palestinian families say they face daily discrimination and risk being separated altogether and the country's insistence that it's only protecting national security has few people convinced. this is the document that's ruining line is life it makes no mention of a university degree

a husband or two children it's simply states she's palestinian and therefore illegal and wanted in israel. have any rights just to breathe. and drink and for me it's not the law. but lana chooses nonlife because it's where her husband and children live by law very israeli whereas the rest of her family live across the border in janine palestine. during. what does this remind us i have to walk. until now known as move between the two worlds with temporary visas issued by television but she's afraid they could stop as the government tightens its grip on

a law denying permanent citizenship to palestinians married to israelis it's trying to limit the graphic in growth of the arab citizens encourage. citizens who marry palestinians from the west bank and gaza or from jordan to actually immigrate to actually leave israel israel says the law is for security purposes and it's trying to prevent palestinians from taking advantage of being able to get an israeli id through marriage and then carry out attacks on israeli citizens but human rights groups don't buy that they petitioned the law arguing that in the last fourteen years more than one hundred fifty thousand palestinians entered israel because of family ties with israelis only fifty four of them were ever found to be a security risk. in upholding the so-called citizenship law the israeli supreme court president said it was one of the most difficult questions in the state's history the battle against terror while at the same time maintaining the nation's democratic nature we are talking about thousands of family that as

a result of the decision of the supreme court that validated upheld the law they are now living under the counter bowl threat of being forcibly separated from their spouses from their children from their parents so we are indeed talking about a huge issue with a huge effect on thousands of people this law is thinking about it. i mean one. of. these before having your very clear you are jewish. but in the meantime it threatens to tear families apart as lawn interests you now face a very real danger that they might not be able to continue living together policy r t israel. come up to twenty five minutes past the hour i'll be back with the some of our main news stories in about five minutes from now in the meantime business next with katie.

hello there welcome to the program the business program at this hour gold is losing value on stronger dollar lifted by fresh worries about the european debt crisis however the sentiment has been generally bullish for the but i am with the price up around ten percent this year while edwards from renascence capital says no reason to think of gold bubble is developing and other prospects for the metal are still good. gold is twelve percent off its lows we should just record it in december it's only ten percent off its highs it's been very volatile but if you look at the long term chart for gold going over the past decade were reported to be fifty and it's just shy of two thousand dollars an ounce now that's been a very consistent bull run and in many periods over that period of time and it's been going up in our currency which is the true definition of open market it was living in an age of volatility gold is still going to be relevant we don't see it

breaking below fifteen hundred dollars an ounce and that at the end of the day is still a commodity there's a cost of production there's a cost of supply and still very very hard charging people think. let's have a look at the markets now that it's our european stock markets closed in the rads after police said it couldn't back the one hundred thirty billion euro a bad deal the country needs to avoid bankruptcy will continue throughout the weekend european finance ministers are now holding back the rescue package demanding the commitments from. moscow the markets closed. just plunge two percent on the minds exhausted more than one percent beautifies on my i think stock exchange could hold an i.p.o. in the fourth quarter of this if market conditions for most of the individual on the my sex phone finished a thought of a percent in the as the company's gas exports rose some to some shut my mouth also

which resists the company's net profit we used thirty three million dollars dollars jag seventy four million dollars last year before. following reports about its fellow tie up with polymaths. russia ranks third in the wall for the number of billion as a country where they can comfortably sit back and count on rubles but it seems they might soon have to give a big chunk of their fortunes back with the new robin hood times proposed by the prime minister and presidential candidate. business editor nick poet spies. the promise rose like it was idea for a luxury tax which was actually on things like super cause. point tricky to get money back from people you you have to do it legitimately you can't just go and empty their bank accounts and this is sort of raise a number of problems this is not going to be a tax on the middle class it's just for this very small minority of stuper wealthy people now it's difficult to generalize about. any population feels but i think

it's a safe bet say that they don't really like the tycoons it's called the oligarchs and taxing them not likely to be a vote loser let's put it that way. saw the business news and now do stay with us here in the headlines at night.

party life here in moscow top stories this hour a split within the ranks of syria's opposition fighters at first they claimed they were behind twin blasts in the country's largest city of aleppo which killed at least twenty eight people but another spokesman denied responsibility just an hour later. thousands of greeks lash out against more planned cuts people are angry because budget sacrifices off the eurozone leaders put more bailout cash on hold. and russia's public figures come together to ensure a fair and free presidential vote by forming the voters' lead to monitor elections

another update in half an hour from now in the meantime capital account with. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. here are your headlines for thursday february night italian prime minister technocrats mario monti has been in washington meeting with barack obama today meanwhile greek leaders scraped together a deal on austerity but they may face the same problem arguing about this again three months from now fractures in the e.u. continue to appear as leaders try to keep it together but does any of this matter or does the likelihood of a european disintegration have to do with something else entirely will explain and is the same thing that moves markets what moves women's hemlines is the same thing driving the dow what drives hollywood producers to make movies like this. dream.

and forget jobs or the eurozone crisis is the dow really the best indicator of who will be you as president we'll hear from robert proctor he's founder of elliott wave international and states and federal officials have finally reached out foreclosure deal a twenty five billion dollars settlement with the five biggest banks guilty of abuses of abusive practices like robo signing signed on now it's billed as helping homeowners but no mean prince says this is yet another example of only good for the banks you'll hear why let's get to today's capital account.

so as we watch the eurozone debt crisis and look to what politicians or technocrats are doing to keep europe together or as we watch the two thousand and twelve u.s. presidential election campaign and look at what candidates are saying or as we try to analyze what the economy and economic news means about where the stock market is had the market is headed what is the outcome of events like this has to do with something else entirely the same thing that dictates hemlines you're right and seen rising here in the early sixty's. so you can see a little shen but skirts got higher as a decade went on as you can see there what is the deeper thing moving all of these

trends skirts markets events is social mood measured best by the stock market that is just the theory behind the work of robert proctor he's founder of elliot wave international and author of this book conquer the crash you can survive and prosper in a deflationary depression i spoke to him earlier for viewers who may not be familiar with elliott wave theory i asked him first to break down why he believes social mood is the driver of all of these things. well that's not an intuitive way to look at things most people sort of default to a mechanical way of believing that causality works in society it's the primitive way that we learn how to cope with things if so ball is rolling down a hill or stone is rolling down a hill it could crush you you know that it isn't going to change direction on its own volition so you can jump out of the way most people feel society changes in the same way it's going to go in one direction unless something impacts what i was

troubled by with this explanation is the idea that these impacts seem to come from nowhere under that idea now the words what causes the actions in the first place and when i started studying the stock market and and different social action such as the growth or contraction in the economy or the kind of music that people listen to those sorts of cultural things i found that they tended to ebb and flow together so i began to realize that there's something else going on and i think what's happening is that there are in dodge's lee regulated ways of social mood that arise naturally among human beings when they're in a social setting and that rather than the events of of society determining the general mood of the population i think it's the general mood that actually dictates the character of the actions that people take in a social setting so it's a completely different way of looking at things and as you said at the outset it extends the stock market the way the macro economy is going

a lot of political trends and the more frivolous things such as popular music trends and movies and so on and it's completely fascinating how do you measure right now using elliot way. well unfortunately we cannot put electrodes in everyone's brains it would be very nice we can pay for directly what i've noticed is the most sensitive measure of social mood at least that i can find and also the one where we have excellent back data in fact going back two hundred years in this country and another hundred years in britain is the stock market and i think there's another reason the stock market is so good at reflecting social mood and that is that people can react very very quickly to changes in their mood they can buy and sell stocks now these days with a push of a button certainly with no more than a few hours contemplation or maybe calling a broker whereas some of the other things that may result from a change in social mood such as the change in business conditions take time to effect so if someone decides it's time to expand my business you may go i have to go borrow money or rent more space hire new people and that takes

a few months and guess what that's why recessions follow downturns in the stock market recovers follow up turns in the stock market they do not lead them i think it's because of this delay in expressing social mood and it's so interesting that with social mood putting pressure on all of these different things some that you named that the barometer for that is the markets i want to go into some of these examples though of putting markets aside let's look at some of the cultural examples that i have everyone may remember goldie hawn in lathan in the sixty's i want to play a clip of that for the audience sure. if. i mean mary jane. that was. so this was the late sixty's she's wearing a little short skirt i say this is driven between a combination of nice legs and maybe women's liberation movements that were gaining steam you say this is the bull market explain why. well i was the first one to come

up with that idea that's been around since the twenty's but i think social nomic theory explains why there's truth to the idea when the mood has been swinging positively for a number of decades people reach a. feeling of euphoria in essence and they express it in many different ways over valuing stocks is one way that people do it and people dressed with more color a lot more colorful things such as in the mid sixty's they also dress a lot. of women dress with less less clothing let's see in the mid sixty's you had . bikini's where the big thing i mean they were making headlines that was so daring you know and as you say short skirts in the late sixty's they certainly returned in the late ninety's and watch any of the m.t.v. videos by women you know they were barely dressed for most of those and when times are different difficult and i don't just mean the economy with but when mood is depressed you find i'm actually skirts for example in the seventy's coming along

also we've we've looked into colors we find that grains browns and blacks are more popular during a bear market periods or depressed periods so there are so many different things we've looked at we looked at car colors we looked at the popularity of james bond movies all all these things seems to have been flow with the very same thing which is the stock market but i'll add one more thing yes the new studies by others are beginning to confirm this this observation you probably heard about the twitter studies the boleyn unmounted i think found that liat you know they're terrific because they found that the change in mood that day detected in the twitter messages actually preceded change in the stock market by a couple of days and that's exactly what's ocean on mccleary says they should fund it's totally fascinating and just what you said about mac maker that's interesting because those actually come back in style in the last few years and we know what the economy and stock market has been doing and behind me i just have a life magazine that showed the headlines rising from nine hundred seventy so

interesting. stuff there but let's get back to the markets because there is this concept that we really see in the mainstream news that that news drives markets and i want to just give a couple examples our audiences for mail your but just let's bring up some headlines of that they can say so this one says u.s. stocks advance as greek leaders agree and then you know one from a couple weeks ago says stocks drop with euro on greece concern dmitri wants to jump in here for a question there robert yes so this is something that we often poke fun at a lot on the show which is that in the morning the u.s. will be saying that the markets are rising due to x.y.z. and then the same thing will be attributed to a fall in the market a few hours later in your experience looking at this over decades what is the connection that you see between stock market movements and the news cycle what you just pointed out we've seen many times you can actually times the news is precisely the same and they just attribute does his reaction to the different direction well part of social mix theory is that people are not reasoning so much when they're

making their investment decisions which is the you know opposite of the efficient market hypothesis what they're actually doing is rational and it's very easy at the end of the stock market day when you already know which direction the market is going to attribute it to this news event or the news of it but if someone only had the news in the paper nothing about that particular market they were after but they knew exactly where commodity prices were going exactly exactly what would happen in greece and so on they would not be able to predict what the stock market so they're shooting a news to the market and anyone can do that it's rationalizing and i'd like to know one more thing your show is unique because instead of generating those with those very headlines you're you're analyzing i think that's terrific on think yeah i really appreciate that let's talk about who gets to talking about the markets let's talk about the dow and what it's done recently because we've seen it hit its highest point since two thousand and eight i guess on the surface things are better since two thousand and eight but there are still

a lot of problems i mean we have long term structural unemployment we have more officials coming out today saying europe's and recession there are a lot of reasons to be pessimistic so what explains the dow right now. well first of all under the the model that i use to try to predict the stock market at least in a probabilistic way the only way the model we completed form five waves down in march of two thousand and nine and i turned very bullish at the time when on television i said this is the kind of bottom that should lead to a substantial rally where there were only two percent bulls among futures traders in the s. and p. as reported by train futures dot com and those are the kind of things he wants and what i want to be on one side he says going to be a big rally and by the time it's over the economy will be in recovery because again as we said earlier the economy lags is the more that people will be optimistic again because that's what's driving the move a change toward more optimism we'll also see the fed taking credit for saving the

financial world and they've done that so all the things we expected see were saying but at this moment we're also seeing extremes in mood and positive mood and this is the third time in the last dozen years we've seen the first time was two thousand and two thousand and seven and two thousand and seven and again basically now things can stretch further but we're definitely seeing readings among individual investors economists. money managers and all subgroups including futures traders and options traders all of them are on the extreme side of optimism and that doesn't mean the market is the peak you know next week but it means it's much closer to a high than a low so we're expecting that the things that reflect social mood have since follow the rally that's normal if the market turns down again they'll follow the market on the way down as well interesting and just more broadly i want to play a commercial because you're talking about some more optimism i want let's look at a broader in society let's play that the approval commercial that people have been

obsessing over this country can't be knocked out when we get right back up again and when we do that we're going to hear the roar of our engines. halftime america ashok i have to back up again. so emotional clint eastwood in that car commercial what does that signify about where society is and. well i'm not sure it signifies per se you know you can overdo this and i don't want to sort of come on like a sociologist where they can find meaning in every little event. we should we want to look at things that we can quantify so so well that's a lot of fun and i love clint eastwood and so on you know you can tell that it's not one thousand nine hundred ninety because in one thousand nine hundred nine everything was great. the central bankers were on the cover of time magazine everything's under control they told us it was a new economy the fed said we've controlled interest rates in the money supply so

perfectly that we have a goldilocks situation too hot not too cold everybody thinks thought things were great so be no need for that kind of of them or times but now that things have been shifting for the last twelve years and people can feel it especially on main street i think you're now getting people you know saying hey let's let's pay attention let's try to recover from this but again those things are in terms of yes we can pull ourselves up you really can't change the ways of social you can only observe them and as an individual you can either get on board if that's on the up side or get out of the way if it's on the downside. and as they say in psychology sometimes as a gar is just a cigar which could explain that commercial in the view of robert proctor author and founder of elliot wave international. and still ahead find out if the stock market will predict the two thousand and twelve presidential election we'll tell you what history says but first your closing market numbers.

are sure is that so much seven and there's a huge decision on the mark when the fate and the battle for syria the international community is as divided as the syrians themselves when it comes to resolving the situation. well. it's technology innovations all the latest developments around russia we've got the future covered.

welcome back sticking on this really interesting subject in the u.s. in the seventy's we saw horrific stagflation ery depression now we also saw a large scale horror in a different way. this is the movie. ghost of. texas chainsaw massacre recession not unrelated factors according to robert proctor founder of elliot wave international author of this book conquered the crash you can survive and prosper in a deflationary depression so we continued speaking we looked at what proctor believes wave theory means for movies and markets post two thousand and eight financial crisis today there's a movie that came out in two thousand and nine after the bottom shortly after the bottom of the market i want to play a trailer.