good afternoon and welcome to capital account i'm laurin lister here in washington d.c. here are your headlines for march seventh two thousand and twelve well super tuesday came and went and if anything it seems more like a super let down as the economy dominates the agenda this election year voters have failed to flock to the one candidate who actually has a long term view and addresses the concerns of sound money and monetary policy and represents an actual shift from the status quo so why is that let's take a look at what gives meanwhile germany does seem to be taking a cue from republican presidential hopeful ron paul who was long called for an

audit of the u.s. is gold reserves well the fund his bank is reportedly reviewing its gold reserves are they taken stock in case of a eurozone collapse the answer that question and is the national judgment day upon us. a day after only to face new nightmare the war against the machine. who yesterday we told you about the computer jeopardy champion watson going to work on wall street now u.b.s. had floor trader art cashin is talking about artificial intelligence saying machines may explain some unusual financial market behavior that's been going on we'll debate where this is all headed let's get to today's capital account.

so super tuesday came and land and it didn't seem all that super ten states voted in super tuesday caucuses or primaries for the republican presidential nomination now this election year is supposed to be all about the economy and this topic is what we focus a lot on and we talk a lot about the problems with the u.s. debt the deficit. it's monetary policy. we talked to a lot of guests who are most concerned and focused on these issues and there is really only one candidate who is really focused on them to someone who bill gross co-founder of pimco the largest bond fund in the world has gravitated towards for example and here he is explaining a good reason why. i'm a little wrong polish their. political slant eyed i think both parties basically you know have done the same thing and they would complain relative to each other but most basically have followed

a policy that hasn't promoted long term investment in the united states and i think ultimately we need to produce things and suppose the paper. we couldn't agree more now ron paul has certainly seen his popularity and the popularity of his ideas grow and he draws huge crowds of supporters but take a look at the delegates that have been racked up by the candidates and you can see that he way way way way pales in comparison and when it came to super tuesday it appears he had no first place when so what really explains this. maybe it's not the politicians. maybe something else sucks or. like. the public shock. is one idea and the mainstream media can't exactly how as an example look at m.s.m. b.c. super tuesday so open and see if you notice anything.

if you like the republican party trying to keep its presidential nominee so bold the issue you're going to love tonight is just anybody missing their time to go where are conning me and country appear headed now let's bring in paul craig roberts who's economist and former assistant secretary of the u.s. treasury under ronald reagan and he is here to tell us what he thinks as always it's a pleasure to see you dr roberts thanks for being on the show here to be absolutely so. i talked to a lot of really smart people on this show guests you included who sing the praises of ron paul and his economic policies and he focuses on a lot of the things that we focus on on this show too and i've also seen what seems like rising support for him so correct my perception or maybe tell me what you think is really going on that he who sounds like he has some of the most sane

approaches to these issues that face the country why do you think he hasn't gotten more support in these primaries from the public. i think there are several reasons one of course is that the public doesn't really understand the economic you're just i've been writing columns about economic sense in the mid seventy's and i found that most readers are usually at a loss when you start talking about it and i missed it so if they can't judge it for themselves they can't see a candidate who has a good solution so that's part of the problem another part of the problem is the american media what terrell cemented calls pressed to us and there's been so little bad mouthing there ron paul you can demonize him and so the public gets influenced by the aid and terror and part propaganda from the media. and then i think ron paul himself has not. been as clever as it should have been

because he has allowed himself to be positioned to somebody who will threaten the social safety net your social security medicare so many tens of millions of people now are dependent the car and so when you add all those three together you can see why are. in fact i had a fourth most important thing about ron paul in my opinion is that he defends the constitution he stands up for the constitution of course for the last ten years constitution has been murdered bush and cheney and now and are bought and so we're sensitive losing the constitution which means that we're losing that country and that's really the most important is sure and that's the reason the people should be flocking to ron paul because that's more important than the economy are already paying else if you lose the constitution which we've done now. you're finished and so this doesn't seem to be appreciated by the general public seem to be completely

in the dark and out there robert so you believe that the public in the dark and let's stick to the economy just because it's not part. right now and very important on this show you what you call her you call prostitutes you say they don't do a good job of covering ron paul or they don't harbor or they demonize them but this day and age come on there are so many sources on the internet there are cells like ours that don't do that there are lots of sources so do you really think that it is the press to blame or at this point is the public come on we've got to get together as americans at some point well. you know look maybe people in the public and they get to go to work their stress travel all the turtle who. should go over a cup of coffee and listen to a few sound bites at the t.v. . we might hear a few sound bites or when they come home. grown you're going to.

hear if you actually know. they've lost interest and they don't have time to be informed you know use internet to watch the our t.v. programs this takes. a certain amount of commitment and awareness. it's really a lot yeah it's really a lot easier to listen to a sound bite that is to figure out how exactly monetary policy works or the impact of zero percent interest rates especially with the fed being as lacking in transparency as it is which brings me to this question you know a lot of people thought hey ron paul was never going to win the nomination maybe never expected to win any of these states the fact that he has increased in popularity and gotten more votes and he didn't two thousand and eight and advanced an agenda that includes looking at monetary policy the federal reserve quantitative easing sound money the fact that those have been pushed more towards the mainstream dialogue is that a win in itself. well that's an improvement yes so that is an important

contribution that he's made. like you know i would have thought that he would much more because you see all of the interest rates right now are negative. and the trade reserve is really going to. be for the benefit oh and banks so you keep the banks from marrying to pay the cost of your mistakes grabbing all the retired relation that any income on fear seems. retired people are having to spend on their capital. and if you spend then you can't people so you're a you're going to live and you certainly don't have any and burchett's for your children to be. able to fill reserve is average. americans favor savers can't save people living state income can't save and this is something that's directly connected to the fed's policies of zero percent interest

rates which someone like ron paul talked a lot about and i too am perplexed as to why that hasn't connected more with more of the american public but let's talk about that's where out of monetary policy another thing that ron paul has called for is an audit of the united states gold reserve as he's called for that for a long time and interestingly german newspaper is reporting that german lawmakers are doing that so u.s. lawmakers are not but germany is evidently worried about how their gold has been managed and how the inventory has been capped there is some concern about the balance sheet of the central bank if the euro zone collapses upon the euro zone it could stand to lose the bundesbank one report said about a half trillion barrow's which is a lot of money in this scenario germany could need gold reserves to support its currency sixty percent as reported the story outside of germany a lot of that or some of that in the new york bad lot of countries keep their gold there i don't know how many. people know that so what about in

a scenario where there is just a dire monetary crisis something horrible happens in a nuclear option and this is something that jim rickards describes in his book currency wars a country like germany worry that the u.s. could confiscate its goal. yes they should in fact this should be referred to the u.s. necessarily so. to. keep trying to start. you know no one knows where there's any gold in fort knox they're not in the fact that they don't want to make some highly suspicious you're going to be d.c. setting the world there somebody go ahead and say yes the bill is there. if they don't want to do that and it kind of implies it might not be there so are you saying you think that that's why there hasn't been an audit of us pulled reserves or think there hasn't been a large enough demand for one you know it's such an easy thing to do i don't need.

just to shut the critics or just to create confidence or there's no reason not to do it unless they go in there or unless some parts of it are. so i don't know i don't really understand it. yeah it's a very it's a question that remains unanswered it's not something that other candidates are asking about but let's talk about them for our europe and the economy what some of the republican presidential hopefuls are talking about i want to bring up something that mitt romney talked about this morning he was on c n b c saying that the u.s. is in danger of becoming europe blaming obama's european policies as what he called them and listen to what he said we are becoming a carbon copy of the of the sad european nations that have been struggling with poor account economic conditions that if that's that's a result of what's happened. so he's saying that obama supplant the u.s. is becoming europe he says the solution is

a lot of the cuts that he is proposing some of the them on a laundry list dr roberts are subsidies for amtrak funding for planned parenthood and asked the national endowment for the arts funding now i'm not an expert but i would wager to guess that war is more expensive than all of those things combined and romney is the guy who's out there rate rattling the sabers against iran so is this concept of the us constantly saying that it can go to war with everyone and spend more than half of its discretionary spending on defense is that what really needs to be tackled or yes of course they will never be able to get its advances and orders limits so i mention many wars and willing to share more. look. i'm no fair. i'm certain the center. but the economy is. fifteen years in terms of sure.

ten years or fifteen years financial deregulation and obama head next best thing to do with any of that. all of this against clinton. the financial deregulation sure exploded under bush cheney. the. deregulation the financial system is the most irresponsible thing i've witnessed in months our life. and be sure of jobs because it's amazing we lost. and a half million manufacturing jobs in the last decade there are today there are there ten million fewer people employed than a decade ago despite a decade of population growth that obama had nothing to do with yes i agree his policies aren't fixing it but you see they can't fix it because corporations are too powerful military complexes to wall street is to prop up the

country and all its policies are run from these groups and that's why nothing can be fixed but these troops are milking the country with a extraction as capitalism is what's called i want to keep you here because i want to talk more about this as there are things i want to get to like what you're saying about deregulation i got to go to break quickly though so we will be right back with more with dr paul craig roberts economist and former assistant secretary of the u.s. treasury underwriting. and so had apple introduced its latest i've had today complete with a sharper display and faster processor the newest addition to the whole family is available starting next friday but some analysts say we will be seeing those long lines were used to welcome you are three cents on their reason why but first they're closing market numbers. above.

we just put a picture of me when i was like nine years old i'm going to tell the truth. i'm a contestant i am a total ghetto princess i love rap and hip hop music and pretty much. but it was kind of yesterday. i'm very proud of the role without you it's playing. oh. oh. you know sometimes you see a story and it seems so silly you think you understand it and then he did something else here's some other part of it and realized everything is ok if you don't i'm

trying hard to the big issue. what drives the world the fear mongering used by politicians who makes decisions to be great for what they thought it made who can you trust no one who is you with a global missionary see where we had a state control. capitals school sessions when nobody dares to ask we do r t question more. welcome back before the break we were talking about and rehashing super tuesday and

i know that that's kind of an immediate issue but this is the economy election it's been done and a lot of the economic issues facing the u.s. are much longer term require a much longer term outlook and solution which is what we were talking about before the break with paul craig roberts his economist and former assistant secretary of the u.s. treasury under reagan so i want to bring back dr roberts to follow up and ask him a couple more things because dr roberts bill gross the co-founder of pimco the largest on fund in the world i'd say what he said earlier about how both political parties don't have a long term view that encourages long term investment in the united states and that's one of the issues that something you're talking about too it sounds like with talking about how outsourcing has been this long term problem that has shed all of these jobs over years now in the same graph that i was listening to him say that there's a story today. that china is increasing its strategic petroleum reserves it already did a first round of getting building up its reserves for an emergency and now it's on

to the second one this is at the same time that we see the united states this debate going on about using this or teach it to trolling and reserves to do something about gas prices because they're higher in this feels very much like a political football it's been used as a political football before during an election year where obama wants to get reelected and republicans are getting on him about the gas prices so my question to you is this an example of politics getting in the way of long term strategic thinking when it comes to the economy of the united states. look the politicians are there they never know for how long yeah it is just like the c.e.o. they're in office for what four or five years and so they try to maximize their income so the whole focus is on short run profits for the corporations and you know they're the end of the world thing. once the united states government let goldman

sachs'. the position that it's not speculation removed now investment banks and hedge funds can share and dominate commodity markets and drive the price where they want it because speculators can now control these markets so this is all comes back to this stupid policy of deregulation and it was all for you know like short term effects that the politicians get campaign contributions for the next election and the c.e.o. gets his bonus that year it's multi-millions so the whole thing works for a very few people for the short run only and while we're on that issue of the bankers the great have all been facts and speculation and deregulation and i want to play another sound bite of george carlin is a comedian and we heard from earlier on baby that it's not politicians that are dumb but the public hears it but we couldn't resist playing what he said about

bankers let's take a listen. i'm going to start executing a few of these bankers white middle class republican bankers. i'm not advocating executing any bankers obviously but does he make a good right i mean come on receive people fighting tooth and nail on wall street over the volcker rule which is already so watered down there volcker reportedly says it's embarrassing to have his name on it so i mean come on what do we need to do to rein in these banks girds well first of all they're no good. and yeah that's right well that's true. but they get it right. you know they wall street has so much money power and now the district court ruled last year that corporations are limited. then they simply order to control the country it's how you're going to rein them in and what

politician is going to move against all the campaign financing and only that they lose the christian jobs if they get beat. wall street picked up and made a vice chairman saying we're going to billion dollars so it's a great point it's a revolving door and as you said so many of you this is these days all seem to come back to citizens united we're going to leave it there but thank you so much for being on the show it's always a pleasure to talk to you that was paul craig roberts economist and former assistant secretary of the u.s. treasury under reagan. all right before we go let's talk about some of the stories that we want to talk

about the ones that caught our eye really good follow up to when we brought you yesterday i want to bring in dimitri and studio to talk about these stories and look who is back shanon donahoe in the control room we miss you c.n.n. we're happy to have you back i know our audience missed you too. so yesterday we told you about the computer jeopardy champion watson who is going to work on wall street citi group fired him it whatever it is will now u.b.s. had floor trader art cashin is talking about artificial intelligence to say machines may explain some of the unusual synchronization in the financial markets yesterday so the dow was down one point five and five seven percent the s. and p. down one point five four percent crude down one point six percent goal down one point seven percent a little odd one of our cash and sales for half a stone he said this he said that's a markedly tight uniformity and a group of wildly different assets such a cookie cutter result suggests

a very strong influence of the. i should've made that sound a little darker. computer trading so it's judgment day our machines taking over a little like this. the survivors of the nuclear fighting the war judgment day. he lived only to face a new nightmare a war against the machine. the computer literally holding the sky. well dimitri i have to say yesterday i thought i won because i had a brilliant take on that story with greed not being programmed and you have the whole skynet angle now that i don't know maybe i have to concede to you this time as much as i am what i want you to take away take it and look for it in order to go i'm so it's kind of funny but it's kind of true and i think that people are underestimating the extent to which we're under threat by this type of thing moving

artificial intelligence into the wall street and i think before i was emphasizing the whole house thing but i think before it even happens i think we're at more risk of having. a renewed bubble in this technology or you will begin to overly there too much confidence in in in these these algorithms these trading algorithms where the machines begin to do you leverage so you saw it a little drop today and tasha was talking about it much about twenty or thirty percent drop in the us and people start freaking out all of a sudden what happens congresspersons is the machines are too big to fail all right we're going to step in and save this thing out of his machine and then the machines insert right in there and they take over so what we saw this morning with with exxon with loopers face as a joke was seen as we should be worried about our own rate so you're saying here is my question for shannon shannon come on you be the arbiter here who is more it's jamie dimon is the head j.p. morgan or walk think computer in his place making decisions and you think what's the most terrifying yet you can see. what you don't have to have both because

you have both it's the merger of of of barrenness and machine of diamond and the terminator it's the dominator i mean you're going to fix nickel and dime you for that so there's no to do around all right you're speaking of machines let's switch gears to one that everybody can relate to or a lot of people can relate to because there's a further about it it's big news that apple unveiled its new i pad today that will be available starting march sixteenth but. well equities researchers say consumers won't line up for the new tablet if gas prices remain high. we believe this is smart but i think people will sacrifice and miss work carpool to work whatever they need to do in order to get into these lines that we have seen time and time again to line up for the latest greatest apple product i think people will sacrifice a lot to get the gadgets that they think that they need probably i mean we talk

about the power of the bag and sort of the power of credit but as powerful that is it's not as powerful powerful as the power of propaganda and consumerism and people are just with this idea only where they're going to have making rights and status needing rights ventilating guys need an i pad to get laid. this is it's about was the connection you can think what you think it's the birth of the buy air jordans what he thinks i'm going to buy a home or it's this is the peacock feathers or hey i'm worth mating with want to mate with me all right that's it there's a lot of women in line to go so it's so shannon what do you think right why we're going to let people line up for these things whatever women are they just trying to get laid you. right i mean to be true it's all about personality amateurs i pad is all ok who's personality and you can have an i pad i need an application. ok all right all right all right we see some different priorities here we'll let you decide why people line up for these i pad still because that's all we have time

for that's our so thanks so much for watching no i don't forget to follow me on twitter out or in the spirit and give us feedback at youtube dot com slash capital of capital account and that's our show and very very one here thanks so much for watching and have a great night. which was the same with the media huge music history and. more to the case of the dog this is how some would characterize the current drumbeat of the war against iraq as the center of this campaign is the image. if. the evening. if t. . cutler touch

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