it's technology innovation called the least of moments around russia we've got the future covered. run smarty tonight with the words and actions go. as mr obama's dismissal of good enough for strikes. expose. militants as nato comes under fire of the un for refusing to investigate civilian deaths during its air raids against gadhafi. and nuclear talks on iran a due to restart offer a year in. will be futile unless world powers still call even more sanctions are

coming. up next laura listeners capital a cow this time why republican voters in the u.s. ignore the only candidate with a handle on the economy at a time when it's very out of control it's just that. good afternoon and welcome to capital account on more in the store here in washington d.c. and 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 letdown 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 we'll 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 taking stock in case of a euro zone collapse will answer that question and financial judgment day upon us. a day of only to face a 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 portrayed are our passion 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 the 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. i'm

a little ron polish their. political slant eyed i think both parties basically have done the same thing and they would complain relative to each other but both parties basically you know have followed a policy that the good has and promoted long term investment in the united states and i think ultimately we need to produce 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 you 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 it pales in comparison and when it came to super tuesday it appears he had no first place win so what really explains this maybe maybe it's not the politicians or. maybe something else sucks or a. couple of shots on one idea

and the mainstream media can't exactly how as an example look at m.s.m. these super tuesday show open and see if you notice anything. if you look at the republican party trying to fix presidential nominee so for the issue we're going to you tonight. missing there to talk about where our economy and country appear headed now let's bring in paul craig roberts he'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 and everybody 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 you haven't gotten more support in these primaries from the public. but there are several reasons one of course is that the public doesn't really understand that medicare is just i've been writing columns about economics sense the mid seventies and i found most readers are usually at a loss when you start talking about economics it's 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 dream yet what they're all cemented calls pressed to use and there's been so little bad mouthing out ron paul even demonizing him. so the public

gets influenced by me and tyler and paul propaganda from the media and 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 you know social security medicare so many tens of millions of people are now 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 thought that my opinion is that he defends the constitution he stands up for the constitution of course the last ten years constitution has been murder bush and cheney and now by obama and so in your sense they lose in the constitution which means that we're losing that country and that's really the most important is sure and that's the reason that people should be flocking to ron paul because that's more important than the economy are already

paying us if you lose a constitution which we've done. you're finished and so this doesn't seem to be appreciated by the general public i seem to be completely in the dark and out there robert you believe that the public in the dark and let's stick to the economy just because they are. right now and very important on this show you what you call early 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 shows 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 it the public come on we're going to get it together as americans at some point well. you know look maybe people in the public . they've got to commute to work their stress travel.

they should get a cup of coffee listen to a few soundbites. they might hear a few soundcards or would they come home. grown here cable t.v. . you're really never dream they lost interest and they don't have time to be informed you know use internet so to watch the order to. this takes. a certain amount of commitment and awareness and 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 and 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 out here 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 advance an agenda

that includes looking at monetary policy the federal reserve fund to easing sound money the fact that those have been pushed more towards the name stream dialogue is that a win in itself. well the best improvement yes so that is an important contribution that is made. like you. because you see all of the interest rates right now. and the trade reserve is really going to. be for the business. and the banks so you keep the banks to pay the cost of your mistakes they're grabbing all the retired population that are really income. to the retired people are having to spend on their capital. and if you spend then you're tanking so you're. going to get a living and you certainly don't have any inheritance for your children to be. on

the same reserve. cameras but merchants savers savers can't save people living on 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 too am perplexed as to why that hasn't connected more with more of the american public but let's talk about the sense we're out of monetary policy another thing that ron paul has called for is an audit of the united states' gold reserves is called 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. collapses upon the grose oh and it could stand to lose the bundesbank one report said about a half trillion barrels which is a lot of money in this scenario germany could need gold reserves to support its

currency sixty eight percent is reportedly story outside of germany a lot of that or some of that in the new york fed 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 can record surprise in his book currency wars a country like germany worry that the u.s. could confiscate its hold. yes they should in fact this should be referred to the us has already sold to. keep trying to scare. you know no one knows where there is any gold for. the fact that they don't do an audit basics of how to suspicions they're going to do the easiest thing in the world they're smart to do it and say yes the gold is there. if they don't want to 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 not demand for one you know it's such an easy thing to do i don't know why they wouldn't do it just to show it to critics here just to create confidence or there's no reason not to do that unless they go there or less some parts of it are missing. 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 since we're all 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 m d c saying that the you glasses in danger of becoming europe blaming obama's european policies is what he called them and listen to what he said we are becoming a carbon copy of the of the said 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 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 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 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 it will never be finances orders lonesome so i mean she really was willing to share more. look.

i'm no fair. i'm certain in the center. but. it is. fifteen years of jobs for sure and ten years and fifteen years deregulation and obama next to nothing to do the. all of this against. financial deregulation oh sure exploded bush cheney and he really deregulation the financial system is almost irresponsible thing i've witnessed in my entire life. and be sure of jobs this is amazing we've lost. and a half million manufacturing jobs in the last decade there today there were ten million fewer people employed than a decade ago despite

a decade of population growth if obama had nothing to do with this i agree his policies aren't fixing it but you see they can't fix it because the corporations are too powerful military security complex is too powerful wall street is too comical the country and all its policies are run from these groups and that's why nothing can be fixed at these groups are milking the country dry with a extraction is capitalism is what. 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 but what you're saying about deregulation we 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 under right now. and still ahead apple introduced its latest i've had today complete with a sharper display and 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. series technology innovation all the moves developments around russia we've. covered.

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 dubbed 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 great 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 them 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. that china is increasing its strategic petroleum reserves and already did a first round of getting building up its reserves for an emergency and now it's on to the second line this is at the same time that we see the united states this debate going on about using this or teacher petroleum 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 good just like the c.e.o. they're in office for four or five years and so they're trying to maximize their income so the whole focus is on short run profits for corporations and you know the

that honeywell thing. once the united states government let goldman sachs i have the position limits and speculation removed that out 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 this stupid policy of deregulation and it was all for you know like short term effects that the politicians to get campaign contributions for the next election and the c.e.o. gets his bonus for 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 are great i've called them sacks of speculation and regulation and i want

to play another sound bite of george carlin the comedian and we heard from earlier on maybe i bet it's not politicians that are down but the public and there's a but we couldn't resist playing what he said about bankers let's take a lesson. 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 price i mean come on we think 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 they're no didn't care spankers got their plants through this expect. you know they wall street has so much money power now that the spring court ruled last year that corporations

are limited. they simply early garcon to control the country it's how you're going to rein them in and what politician is going to move against the lose all the campaign financing and only that if they lose their jobs if they get beat. wall street picked up and made a vice chairman somewhere if you're going to billion dollars so that the great point is the revolving door and as you said so many of these this is these days all seem to come back to citizens united or got 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 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 the one 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 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 growth down one point six percent goal down one point seven percent a little odd what our cash and say let's bring up

a step 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 done good. i should have 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 fire. judgement day. a day after only to face new nightmare a war against the machines. 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 then 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. i don't want you to take away take away and that's right and all

of us who 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 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. bubble in this technology or people because they're overly they have too much confidence in these algorithms these trading algorithms where the machines begin to you leverage so you slowly go. and casual talking about it much of the twenty or thirty percent drop in the us and people start freaking out all the sudden what happens congress if this 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 doesn't pay what we saw this morning with with nuclear shows as a joke machine is we should be worried about our own rate so you finished i guess my question for shannon shannon come on you be the arbiter here who is more

experiment jamie dimon is the head j.p. morgan or block thing computer in his place making decisions we think that's the most terrifying yes you can see. what you have to have both you have to have one of the you can have both it's the merger of of barrenness and machine of diamond and the terminator it's the diamond the major diamond you're going to marry. her so these guys do have the right 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 burger about it it's big news that apple unveiled its new i pad today that will be available starting march sixteenth but. global equities research is saying consumers won't sign up for the new tablet if gas prices remain high. we believe this is such. a volatile 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 that they think that they need totally i mean we talk about the power of the banking sector the power of credit but it's powerful that is it's not as powerful powerful as the power of propaganda and consumerism and people are just. only where they're going to have mating rights and status you know eating rights that are taking guys need an i pad to get laid absolutely horse this is it's about was that's a connection are you kidding were you think to most people buy air jordans what you think makes them want to buy a home or if that is the peacock feathers are you hey i'm worth mating with a mate with me right that's what they're like women in line to those so shannon what do you think we're going to like you to line up for these things what's in it for women are they just trying to get laid you. i mean to be true personality i'm not sure talk you. guys whose personality when you can have an i pad.

you can have a. 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 out lauren lyster and give us feedback at youtube dot com slash capital of capital and countless times our show and very very one year thanks so much for watching and have a great. them .