good to have you company our top stories this saturday evening syria readies a democratic referendum on a new constitution but it did fire the coalition led by the u.s. polls even more pressure on damascus. also headlining for us thousands of cash strapped students in spain are again uniting in anger at education spending cuts similar protests earlier this week led to police being accused of heavy handedness when dispersing demonstrators. and more u.s. officers are killed in afghanistan amid a fifth day of violent protests over the burning of the american military base. just ahead laura list as capital account reveals a few more secrets for the world of finance. it's technology innovations all the latest developments from around russia we've gone to the future.

good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and here are your headlines for february twenty fourth two thousand and twelve a u.s. lawmaker is reportedly planning to introduce this sound dollar act early next month now this is legislation reportedly to move the federal reserve from a dual mandate to a single one fighting inflation and protecting the dollar's value mood what exactly would that mean then for the fed's unofficial mandate of trashing the dollar will take a look at that question and turkey the fastest growing economy after china is being penalized in the credit markets reportedly for failing to promote consumer savings that's according to bloomberg see there you have it more evidence that savings matter so does this mean the federal reserve needs to end its work process and zero percent interest rates i'll talk about it finally with central bank policies of the fed and the e.c.b. with trash to cash programs are we seeing transfers create exponential wealth

extraction turning into compound inequality and ultimately serfdom it's what we at capital account like to call the kleptocrats carry trade we'll break it all down let's get to today's capital account. so we have seen central bank and government policies responsible for wealth extraction literally siphoning off wealth with what we call the kleptocrats carry trade now in the us you have zero percent interest rates forecast for years to come one example in europe the central banks l t r o program which one economist breaks down as the trash to cast program for banks take

a look. whereby the bush two european banks give the central bank trash as collateral and in return for destroying the e.c.b. gives them real cash. and real cost of one percent for three years this is the banking equivalent of turning water into wine for water to wine that flows exponentially into the mouths of an elite class of bankers technocrats and politicians extracting wealth instead of creating it this compound interest turns into compound inequality and a form of new feudalism that manifests in the type of poverty we're seeing across the western world now the poster child of course you see right there it's greece but it's going on all over here in the u.s. here is a glimpse of a middle class that's increasingly calling homeless shelters home i'm larry i'm too used to this is my daughter michelle. we're here because it can only times

sparrows to go off on this and that kind of income and how we lost our boys where we are living and in greece a soup kitchen for a middle class at the end of its rope. you are going to survive with these you've got to do. because we survive five years almost. and we're going to survive again. that's all. the survivals spirit is not exactly the spirit of the lazy pensioners that greece is being characterized by some who should just shut up and deal with poverty while the euro crowds and bankers get rich off their backs it's not a coincidence you see this in greece where you have a history of resistance against occupation part of their cultural d.n.a. if you will during world war two occupation the greeks resisted the axis powers first beating back the italian occupation and right there you see those are italian

soldiers captured by the greeks then forcing a nazi detour in degrees delaying hitler's invasion of the soviet union until summer forcing his troops to endure a soviet winter that proved devastating for the nazis and turned the tide of world war two for the allies now knowing this history it's not surprising perhaps to see the burning of german flags and the anti nazi sentiment in greece this time around this is not to suggest that germany is the aggressor here but that greeks are simply channeling a history of occupation as a fuel for the resistance that hey maybe we'll all be forced to undertake if this financial occupation isn't stopped so if greece is leading the resistance against this financial occupation where is it headed where does that put people facing poverty and joblessness all over the western world where we've seen exploding protests that's a question we want to answer that's why we have gerald celente here because he's

the trends forecaster he's founder and director of the trends research institute publisher of the trends journal and always a pleasure to speak to you thanks so much for being on the show gerald oh thank you for having so i just set up a number of ways in which we view wealth extraction going on in a way that we believe here on this show is becoming institutionalized and systematic it's not a one off situational thing what do you think about that debate. it's as old as a scripture. you know the love of body be the root of all leavell and think about it the only time that the prince of peace jesus christ becomes violence is when he picks up a whip to drive the money changers out of the temple so the name money changes just evolved money changes from a guy growing up in the bronx used to call of the loan sharks that was another division and now they've cleaned it up a little bit and they call him bankers that's all this is it sixty or shouldn't

from the money changers and it's been all deluded to make it seem as though you know whose fault it is i'll tell you who it's them people out there that don't want to work you know over once you get to getting though all those social benefits could have anything to do with all of those exotic financial instruments coated oh not derivatives none of those credit default swaps not to those phony leveraged buyouts none of this cheap madi that they've been pumping into the system and since nine eleven it was all set up we said it was going to happen but now rather than then taking the blame the money changers they're blaming the people well and you mention the cheap money so let's stay on that for a second because i just saw a report that a u.s. lawmaker a member of congress from texas is planning to put out

a bill to change the fed's mandate from the dual mandate of price stability and low unemployment to just a single mandate you know keeping inflation under wraps and preserving the value of the dollar whatever that means but when you look at what the fed's done the fed is really only been good at one thing and our view in the view of a lot of people we talked to which is keeping the big banks propped up and preserving an elite class of kleptocrats or whatever you want to call them so what is. is the fed's mandate really doesn't matter if you change the official one no it doesn't matter oh look at what since the fed is was was created one thousand nine hundred thirteen what is the value of the dollar lost ninety five percent of its value and i believe it in the first hundred years before that it only lost about what five eight or ten percent so they've the only mandate of the federal reserve is to keep the bankers in power in the people underneath them that's all it is and

again let's look at the facts go back ten years ago if you want to see the brilliant job of the fed and this whole money pumping scheme as we speak today what surprise of oil brant crude a hundred twenty four dollars a barrel now what was it ten years ago she about twenty dollars a barrel and what happens of commodity prices such as corn wheat soy beans in the last year where they go up about fifty percent oh and how about the price of gold war and go back to ten years ago oh about two hundred eighty dollars an ounce today about seventeen hundred and eighty dollars an ounce there devaluing the dollar and enslaving the people particularly with these low interest rates because you can't put your money with the money changers you're not getting any interest so they're forcing you also to speculate in there because she knows which are

basically regain let's say on this because i thought it was interesting too there was a report that came out from bloomberg that turkey is being penalized in the credit markets because they are failing to incentivize consumer savings according to this report turkey is the second fastest growing economy after china so this is a real example of why savings matters are how savings is seen as mattering for a country so what is this argument in the us that savings doesn't matter that seems to be gaining traction with contin. since in the mainstream and there's just this belief that you know everything will work out if you just have central banks tweak things a little a little bit here and there and lobby fine. it's apocrypha is what it is again you know let's also this this whole fallacy i just heard mary druggy the the head of the european central bank you know the former goldman sachs guy what was he the the head of goldman sachs in europe the european division and also you know the goldman

sachs gang that helped greeks cook their books so that you get into the european monetary union you know that mary druggy and he's blaming the whole issue on socialism and the social safety nets and the whole mince is they're pushing it all back on the people and this fallacy is that is to people just take less earning less and pay more taxes that somehow that's going to create jobs and the big is that the system collapsed not the cause of the workers but the cause of the banks the hedge funds the private equity groups and all the dirty dealing and i think you bring up an interesting distinction too because there isn't it a distinction between whiles extraction and wealth creation even during the robber

baron period where you had inequality you still had robber barrons that were creating something whereas now you just have that class of people that are extracting wealth but i want to hit on something where you're talking about how people cannot save and what that world is because a world without savings isn't that feudalism if you have people that cannot have their own capital and increase their wealth and they're getting credit from a class of the leads is that feudalism here are we headed towards that what do you how do you see it. well it is a rarity you know it's usury and what they're doing look look at christmas sales in the states why did they go up they couldn't be because people increase their credit card debt november and december by about twenty billion each month the savings is being depleted and they keep having them consume and you started talking in the earlier part about all these uprisings that are going on and what all this is going

to mean here is what it's going to mean. in a business that aren't great lar it is and we wrote this last year it was our spring edition the first great war of the twenty first century has begun it's not a pro-democracy movement over in tunisia or egypt or bahrain or in yemen it's not hooligans that we're taking to the street in britain it's not add or kissed zain grease these when the money stops flowing down to the man on the street the blood starts flowing in the streets yes it's neo feudalism but there's one difference this time warren is that the serfs in the peasants are educated and they know what's going on tell you a big biz this is the years come a great entrepreneurial opportunity is going to be guillotines because people have

had it they're not stupid yeah they see what's going on at the game is rigged well then you know gerald we have to go to break quickly but when we get back i want to talk about what it will take for people like you and me who maybe aren't destitute and out on the street but who are aware that we're being wrong what is going to take for a class of people like us to be out there on the streets and to see some action there so we will have more after the break with gerald cilento he and his trans forecaster with trans research. institute. and still ahead don't go away it's friday which means i'm going to respond to your feedback and you're not going to want to miss what i have to say about everything your saying but first they're closing market numbers.

thanks. welcome back before the break we were talking neo feudalism and how and why gerald selected things were headed for the first great war well let's talk about

how exactly he sees us getting there fighting it what this is going to look like let's bring back gerald celente he's founder and director of friends research institute and publisher of the trends journal he was predicting a lot of what we're seeing back in last spring and that's just about what we're specifically talking about that's not even counting all of those myriad other predictions that have turned out right so jerrold let me bring you back in here because before the break you were talking about this unrest i want to talk about greece because what we're seeing in greece i mean just to talk about the bailout machine this is where we've really seen it stalled and they're tearing the city apart we've seen it catch fire them lighted on fire greek poles this is interesting show more support for radical and non-establishment parties today we heard the creation of a brand new party which is called the independent greeks and is actually getting getting its political capital by being against the memorandums and they're getting support from right and left so is this where we're seeing the financial occupation the resistance to it really being fought and how do you think we're going to see it

turn out. others just the beginning and yes this is the model forward and look again look what's going on we go to romania where they just overthrew that guy the former addict prime minister excuse me after austerity bright and relentless on the people. and it's the same thing it's these so-called austerity measures isn't that a lovely term here's some was staring measures you have no job i got it we're going to raise your taxes we're going to cut services and you're going to pay more for the services that you do get are we going to cut your benefits and your pensions to mostly nothing and then we're going to increase your retirement day till after you die so now what's happening is the people have no choice you know you've heard my say before and when people lose everything and have nothing left to lose they lose and they're losing it and this is what's going to continue to spread around the

world go back to two thousand and eight when the whole thing begins to collapse and we said it from the beginning this is no recovery it was a cover up and that after all else fails they take you to a war hey lorad ready for iran how does that sound what does the united states have they have troops in for african countries right now no the war is beginning could see what's going on in the streets it's not going to stop because all of the measures again all of the measures being taken by the united states by europe are only to bail out the bankers yeah and the reality is the bankers made bad bets and we have to cover their losses and we've seen people in the united states we've seen that discontent and the protests bubble up and all over the country and what's been you know how the umbrella of the occupy wall

street. movement but i want to talk about how it's going to go from that to people like you and me out in the streets you know there is a quote to stay on greece a little bit from an ancient greek historian that i want to bring up and it essentially says oh unfortunately we don't have it but it says that basically when it gets so bad for the the people that are oppressed or poor all of those things it's when everybody else realizes that and they take on those that realisation that then you start to see some change because those people are driven to the streets and those people get angry and those are the people that aren't maybe necessarily affected directly by. poverty and homelessness and these policies but they're the people that are are awake to weigh you know when are we going to see that in the u.s. you think i think the first the first part of. it is very true because it becomes a moral issue and morality has no has no boundaries or religious you know sex it's it's about what you see going on that's it just i believe it's you know

the young people they call them generations zero having these university degrees in worthlessness can't get jobs or deep in debt i don't call of generations zero i call the generation. that's going to be the ones that are going to lead it they already you are i was down in occupy wall street and these were young guys and women these are people that see they have no future when you have nothing and you don't see anything ahead of you and again this is it the neo feudalism is different because the people are educated and they know what it's going to take to have the change so i believe that the first wave just like it was when i was a young guy during the vietnam war the reason why the people were on the streets it wasn't because of the immorality of the war it was because they were getting

drafted. now it's the same thing the young people are getting out to the streets because they can't get jobs yeah they're talking to living at home and their target getting screwed and they're going to be the forefront when that kid continues to gain momentum over the summer then more people will be following i believe that's really interesting so you think it says there's a group of young college graduates who also have a lot of student loan debt along with that high unemployment gerald now really quickly before we go there is this video i don't know you if you've seen it but it's in the u.k. house of lords where lord james of blackheath is asking for an investigation of these different all these different pieces of evidence that he says he is called together on this fifteen trillion dollar fraud as a couple ideas of you know what went on there some implicate the u.s. central bank we don't know obviously if any of that is warranted but it's a viral video it's got tens of thousands of hits i'm wondering if you think that things like this garner attention because of

a paranoia where people are looking for alternative explanations because the official narrative just does not jive with their reality where you don't even have to go that far go back to two thousand and eight when secretary of the treasury henry paulson goes to meet a bunch of hedge fund guys his buddy who was of course of the former c.e.o. of goldman sachs also on some of the gun and he tells of basically what's coming down with fannie mae and freddie mac. before it comes down and they're allowed to do that it's one after another whether it shouldn't greeks telling them about privatization before it's going to happen so the people who place the bets just like all those hedge funds are running over to greece now trying to get their piece of the action and by the way this isn't privatization and put it back in its proper context the i.m.f. it's the international mafia federation troika those of mafia family this is the privatization i want my. monody i want your ports i want your electric

supply i want your water supply i want you to land and you're going to sell it to my friends you could've called it privatization yes or well it is yeah that's a great point and a good point to end on on the the mof of the leadership that looks more like a mob or like a mafia gerald celente it's really always a pleasure to speak with you thanks so much for being on the show that was gerald celente he's founder and director of the trends research institute. all right it's friday which means it's time for viewer feedback and earlier this week we did a segment with members of occupy the f.c.c. that we thought was really important ok they broke down the entire volcker rule

with all of the loopholes in it that banks can get around to get around the spirit of the rule and we had a really positive response one of our favorite blogs an excellent blog naked capitalism posted our interview and eve smith posted it she said it's always a pleasant surprise to see a t.v. program have a long form discussion on a fairly technical topic readers should enjoy the arty interview of the women that we interview there on the volcker rule and i just this longer form way that we want to evaluate things and go into topics is something that we're banking on is something that's really missing so it's really nice to see a positive feedback there and for nomi prins who is obviously a guest of this show someone that we really look to for her authorities said occupy the s.c.c.s. caitlin cline in alexis goldstein are my new heroes told us they were great guests that night and there are heroes too we can't say enough how much we're very impressed with the work that they're doing and we're glad that our guests in our audience agree as syntax said on you tube if it weren't for this show i wouldn't

even know about the volcker issue it would be all discussed by some three hundred people who may or may not be in the pockets of corporations which you can assure we are not and we're trying to get you the objective real story as we see it on this show now duck vision one nine hundred seventy four brought up greece because we've been talking this week about why a default would mean an exit from the euro zone and how greece could default without sitting we brought also. down the leaked document that shows how rosy the assumptions are about greece and duck vision said this is about two roads you have a credit default and a trigger of the c.d.s. market or killed the bond market because of subordination of the euro bonds of course this deal would never work for greece but that is not the point greece can't be let out of the e.u. simply because it will be considered a default on the bonds and triggering c.d.'s there is seven hundred seventy trillion dollars of derivatives and c.d.'s in the market and ninety five percent is

by the five largest u.s. banks if the c.d.s. is triggered it will cause a global meltdown and you know about this we think that everything that has been done since the first greek bailout in may two thousand and ten has been to quarantine greece so that a greek default and a euro zone exit could be managed by the troika and the banking clients buying time essentially now moving on runic angel one on you tube said everything is allusion when it comes to the i.m.f. and everything is presented in a fashion that it is perceived to be eventful and substantial but is only a means to an end for an agenda with defined goals and i just wanted to say that this is something we talked about yesterday with reggie middleton and if we could bring this up he talked about how the i.m.f. has a history since the crisis since the debt crisis being too rosy with their assumptions and he there's one example where you can see how they were much rosier than reality and this is something that has been going on and he has a bunch of great charts and analysis that boom bust blog if you want to see more about that of course our interview yesterday we talked about that too and on the

note of greece i would like to say yesterday in my headlines i said that greece is the gum on the bottom of every one shoe and what i've should have said is according to a brilliant trader an economist who is very astute and very creative greece is the guy on everybody's shoe because it's really an idea i got from steven guilfoyle known as sarge who is a viewer and also a trader an economist and he was using that metaphor in his morning note and i loved it and i should have given proper. for what was a really creative and thoughtful way to look at things so i'm doing it now that's all i have time for though thank you so much for tuning into the show feel free to follow me on twitter at lauren lyster you can always give us feedback a you tube dot com slash out little account you can see i respond to it and from everyone here at capital account thank you so much for watching have a great weekend have a great. top

stories smarty attempt here moscow time syria ready is a democratic referendum on a new constitution but i do find coalition led by the us piles even more pressure on the.