this is thing with her to come straight to the t.v. to thank you so much that was georgetown university journalism professor chris chambers well be back in a half hour but in the meanwhile don't forget to follow me on twitter that addresses out you see catherine of. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else or see some other part of it and realize that everything you thought you knew you don't. charge is a big issue. good afternoon and welcome to capital account i'm more in the store here in washington

d.c. to hear your headlines for march seventh two thousand and twelve well super tuesday came and went and if anything it seems more like a super letdown as the economy dominates the agenda this election year voters have failed to flock to 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 we'll take a look at what kids 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 bundesbank is reportedly reviewing its gold reserves are they taking stock in case of a bureau's own collapse one answer that question and is financial judgment day upon us. eighty of the only to face a new nightmare the war against the machine. yesterday we told you about the computer jeopardy champion watson going to work on wall street now u.b.s.

had four 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 talked a lot about the problems with the u.s. debt the deficit the bad it's monetary policy currency 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 here he is explaining a good reason why can't i want to run polish. political slant eyed i think both parties basically you know have done the same thing and they would complain relative to each other but they're both parties basically you know have followed a policy that that hasn't promoted a long term investment in the united states and i think ultimately we need to produce things and supposed to paper and. 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 maybe it's not the politicians and so maybe something will shock you. write a blog. called woodshop. one idea and the mainstream media can't exactly how as an example look at m.s.m. these super tuesday so open and see if you notice anything. if you like the republican party trying to destroy the tension only so far this year you're going to love tonight one thing there to talk about where our economy and country appear headed now let's bring in paul craig roberts who's the 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. absolutely so. i talked 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 you haven'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 since i've been writing columns about economics sense the mid seventies and i found that most readers are usually at a loss when you start talking about it and i'm at it so if they can't judge it for

themselves they can't it's a candidate who has a good solution so that's part of the problem another part of the problem is the american media what they're also meant to cause pressed to. there's been so little bad mouthing you know ron paul even demonizing him and so on the public gets influenced by or they hate anti ron paul propaganda from media and and then i think ron paul himself has not. been as clever as he should have been and the coast he has allowed himself to be positioned as somebody who will threaten the social safety net you know social security medicare so many tens of millions of people now are dependent upon and so when you add all those three together you can see that 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 the last ten years constitution has been murdered bush and cheney and now by obama yeah and so in a sense they lose in the constitution which means that we're losing the country and that's really the most important is sure and that's the reason why people should be flocking to ron paul because that's more important than the economy or anything else if you lose a constitution which we've done now. you're finished and so this doesn't seem to be appreciated by the general public may seem to be completely in the dark about the roberts you believe that the public's in the garden and let's stick to the economy just because there is some point. 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 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 they get up they've got to commute to work they're stressed travel it's going to be awful to turn their children over a cup of coffee listen to a few sound bites. they might hear a few sound bites or would they come home. if you're going to. hear if you really know we've. lost interest and they don't have time to be informed you know use internet. to watch the o.t. programs this take. 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 than he didn't two thousand and eight and advance an agenda that includes looking at monetary policy the federal reserve climate easing sound money back at those how can push more towards the mainstream dialogue is that a win in itself. well that's an improvement yes so that is an important contribution that it's made. like you are going to the floor. because you see all the interest rates right near negative. and the reserves are having none to. the benefit all right. so cheap to. pay the cost of your

mistakes big crabby all the retired population of any income. the retired people are having to spend on their capital. and if you spend then you can't hear the young again living on your certainly don't have any inheritance for your children to the. average. americans savers 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 talks a lot about and i to him for flex as to why that hasn't connected more with more of the american public but let's talk about that's where our monetary policy another thing that ron paul has called for is an audit of the united states called reserves he's called for that for a long time and interestingly german newspaper is reporting that jonathan lawmakers are doing that so u.s. lawmakers are not many as 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. collapses upon the euro zone it could stand to lose the one report said about a half trillion euros which is a lot of money in this scenario germany could need gold reserves to support its currency sixty percent is reportedly story outside of germany a lot of that or some of that in the new york bed lot of countries keep their gold there i don't know how many. well 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 worried that the u.s. could complicate its whole. yes they should back there should be referred to the u.s. has already signaled to. keep trying to stoke. it

you know no one knows there's any go in for us or not and the fact that they don't do a lot of it makes it highly suspicious you take it easy saying the world isn't going to go ahead and say you're just going to there but if they don't we do that and it kind of is it might not be there so are you saying you think that that's why there hasn't been an audit of u.s. gold reserves or do you think there haven't been a large enough demand for one you know it's such an easy thing to do i don't mean. just to shatter the critics here just to create confidence or there's no reason not to do it unless the goal and there were less some parts of it are. so i don't know i don't really understand it. yeah it's a very basic question that remains unanswered it's not something that other candidates are asking about but let's talk about since we're 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 you glasses in danger of becoming europe blaming obama's european policies is what he called them and let's listen to what he said we are becoming a carbon copy of the of the the sad european nations that have been struggling with poor top economic conditions that if that's that's a result of what's happened. so you're saying that obama is to blame 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 the laundry list dr roberts are subsidies for amtrak funding for planned parenthood and asked the national endowment for the arts funding now ali 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 a guy who's out there 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 there will never be able to get the finances in order. so i mentioned a new warning and willing to stare more. look. i'm no fair. center . but trying. is. fifteen years of job for sure. fifteen years and actually deregulation and obama head next to nothing to do the any impact. all of this again. financial deregulation oh sure it exploded bush cheney. the reagan deregulation financial system is the most irresponsible thing i've just in

my entire life and the all sure of jobs is basically we've lost. and a half million manufacturing jobs in the last decade there today there are ten million fewer people and lord than a decade ago despite a decade of population growth. obama had nothing to do with this i agree its policies aren't fixing it but you see they can't fix it because the corporations problem they will turn complex is to part of wall street is to show that the country and all its policies are run through these groups and that's why nothing can be fixed but these groups are milking the country dry extraction as capitalism is what's called i want to keep you here because i want to talk more about this there's a few more things i want to get to you with 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. oh and so had apple introduced its latest i pad today complete with a sharper display and a faster processor the newest addition to the apple family is available starting next friday but some analysts say we will be seeing those long lines were used to we'll give you our three cents on their reason why but first their closing market numbers. because we just put a picture of me when i was like nine years old on the show lived through. my chest and i am in total get

a high low gravity is that what i'm pretty. sure is kind of the jester but. i'm very proud of the role the judge in syria has played. oh. you know sometimes you see a story and it seems so silly you think you understand it and then a glimpse something else hears you some other part of it and realize that everything is ok you don't know i'm sorry is a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through it and it may who can you trust no one who is you know maybe you

would have local missionaries where we had a state control. capitols school sessions when nobody dares to ask we do our t.v. 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 a lot of the economic issues facing our 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 is economist and former assistant secretary of the u.s. treasury under reagan so i want to bring back up to roberts to follow up and ask him a couple more things because dr roberts bill gross the co-founder of pimco the largest

bond fund in the world i play 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 they caught my eye 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 the strategic petroleum reserve 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.'s they they're in office for 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 the the and the oil thing. once the united states government let goldman sachs i have the position limits and speculation removed that no investment banks and hedge funds can 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 the stupid policy of deregulation and it was all for you know like short term

effects 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 brain of goldman sachs and speculation deregulation i want to play another sound bite of george carlin the comedian and we heard from an earlier on baby about it's not politicians that are down but the public affairs 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 we see 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 birds well first of all there are no middle class players yeah that's the that's. the bigger fish by. you know the wall street is so much money power and now the district court ruled last year that corporations are limited. they simply are only gardley that control the country it's how you're going to rein them in i mean what politician is going to move against. all the campaign financing and only that if they lose their jobs if they get beat. wall street to pick it up and made a vice chairman somewhere if you're going to billion dollars so that it's a great point the revolving door and as you said so many of these issues 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 so it's always a pleasure to talk to you that was paul craig roberts economist and former assistant secretary of the u.s. treasury i reckon. all right we go let's talk about some of the stories that we want to talk about the ones that caught our eye on a really good follow up to one we brought you yesterday i want to bring in dimitri kovtun in athens studio to talk about these stories and look who is back shannon donahoe in the control room we miss you shannon 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 hired 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 ball down one point seven percent a little odd one of our passions he said this he said that's a remarkably tight uniformity in a group of widely different assets such a cookie cutter result suggests the very strong influence of the. i should've made that sound a little darker. computer trading so is this judgment day our machines taking over a little like this. the survivors of the nuclear fire or judgment day. a day of don't need to face new nightmare the war against the machines.

the computers we train. sky it's. well dimitri i have to say guest today i thought i won because i had a brilliant take on that story with greed not being programmed then you had the whole skynet angle now. 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 a look for in order to go 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 into the wall street i think before it was emphasizing the whole how thing but i think before the even happens i think we're at more risk of having a a renewed bubble in this technology or people because they're overly there too much confidence in these algorithms these trading algorithms where the machines begin to do you leverage so you slowly go. and casual talking about it much about twenty or

thirty percent drop in the us have people start freaking out all the sudden what happens congresspersons is the machines are too big to fail all right we've got to step in and save this thing all these machines in the machines insert the right in there and they take over so what we saw this morning with with change is a joke was seen as we should be worried about so you think i guess my question for shannon shannon come on you be the arbiter here who is more it's care of jamie dimon is the head j.p. morgan or. computer in his place making decisions do you think that's the most terrifying yet you can see. look you don't have to have both you have to have one together you have both it's the merger of of bank and machine of diamond and the terminator it's the dominator the diamond. is not all and i mean you are so these guys do. they get machines let's switch gears to one that everybody can relate to or a lot of people can relate to because there's

a burger about it it's big news that apple unveiled its new i pad today that will be available starting march sixteenth but. well bill equities of research is saying consumers won't line up for the new tablet if gas prices remain high. we believe this is but. i think people will sacrifice and miss work carpool or 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 and the think that they need totally i mean we talk about the power of that and sort of the power of credit but as powerful that is it's not as part of powerful as the power of propaganda you consumerism and people are just the only way they're going to have maybe rights and status while you're eating right spending guys need an i pad to get laid so you have got worse this it's about was that's a connection are you kidding were you think it's too close to the air jordans what you think makes them want to buy a home or it's that is that people are free to show you hey i'm worth meeting with

you know maybe with me all right that's it there's a lot of women in line to those so so shannon what do you think right why are a little like people line up for these things what's in it for women are they just trying to get laid you. i mean to be true it's all about personality i'm not sure if i pad is all guys. whose personality and you can have an i pad. you can have a cheaper ok. 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 though and don't forget to follow me on twitter at lauren listerine give us feedback at youtube dot com slash capital of the capital account as that's our show and remember one year there's so much for watching and have a great. i

asked.