time for us and we do appreciate it work correspondent comments no thanks so much well that's going to do it for now on for more on the stories we covered go to our web site r.t. dot com slash usa or youtube dot com slash r t america will be back here and a half hour. you know sometimes you see a story and it seems so for like sleep you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations rule the day. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and here are your headlines for march ninth two thousand and twelve u.s. unemployment remained at eight point three percent it's being touted as sturdy because it was unchanged that's by mainstream media headlines of course but with more than half of those jobs added low paying work by analysts and more than half of the professional services jobs added been temporary ones is this so-called recovery builds on mix donalds jobs and piecemeal work i'll talk about it meanwhile the u.s. deficit is expected to hit a record all time high in february we'll break take

a break from the eurozone crisis to talk about the u.s. for a minute but not a break entirely because greece got more than eighty five percent of private sector bondholders voluntarily on board for the largest debt restructuring in history the greek government will use collective action clauses to push that number up to ninety five percent which if you're wondering works a little like this. should. a little money. which means private bond holders won't be able to refuse the deal they'll be forced just walk their bonds so will c.d.'s b. trader who is making this decision exactly and what precedent does this deal set for the rest of europe and after going bankrupt and thus far it looks like taking more than a billion dollars in customer money that remains missing when i went down and lowball executives could still get several hundred thousand dollar bonuses look

how is that even possible we're going to talk about it let's get to today's capital account. so in february the u.s. unemployment rate did not change it still it eight point three percent according to government figures that came out today this is solid news for the mainstream media and for president obama and his photo op earlier but here's the good news. we just found out that last month in february. two hundred thirty three thousand private sector jobs. however as analyst david ater of c.r.t.'s quoted by zero hedge notes about one hundred sixty thousand of those private jobs which is more than

half are low paying work and for b.l.s. of the eighty two thousand professional and business services jobs added more than half of those forty five thousand were temporary the number of part time workers they didn't change and remember these are part time workers because they want to be part time workers it's because they can't find more work that stuff about eight million people so that is for people who are looking for a better job office then i guess mickey d's types jobs or full time work it seems good news though for one industry to look. yeah. i'm talking about guns gun makers smith and wesson stock was at twenty three percent this morning near three year highs this is after the gun maker reportedly hyped its full year sales forecast. higher on

a higher order backlog strong demand for guns and rifles temp workers i don't know getting prepared for the worst for the zombie a populous we've been talking about lately and speaking of zombie apocalypse all of this amounts to less tax money for the u.s. government to take in while it's still spend spend spend and in fact the amount of this spending and lack of money coming in as an answer to the largest monthly deficit or in history for february that's according to c.b.s. projections there is more we're going to get to have a look at karl denninger and here he is trader and author of this book the leverage how cheap money will destroy the world and karl i know you're going to have strong opinions on this so thanks for being on the show this friday let's get straight to this c.d.o. report that says february was the worst month ever for the u.s. deficit the highest or i guess lowest however you want to look at it. before this streak which has been forty one months deficit's the longest streak ever was eleven

months so another record there it looks like how can people talk about an economic recovery as we're hearing on the mainstream media and from some policymakers when you have this kind of a budget deficit issue. which you have to do is to g.d.p. eat your body into twelve because they were told once and look at the deficit that is were only given months is a slice of g.d.p. and when you do that which you really will you know it used to mean that the government is generating borrowing money and spending it is just like you go into the store study more you don't have in your credit cards cheaper. early it makes the guy who builds t.v.'s or cars or whatever. but in the long run it leads to playoffs unemployment destruction of the current purchasing power and we put it this knows as you've noted who are the better for years we're still doing it we started out in trouble and wish to really trying to progress in having some success

in the stock market really the world's began asset bubbles and credit card purchases let's talk about u.s. household credit card purchases because another number that came out from the federal reserve shows their u.s. households increased their debt for the first time since before lehman brothers collapsed since things were really really bad now it's at point two five percent which i guess doesn't sound like a lot that was for the fourth quarter annualized but i don't know if that's a good thing that people are charging up the credit cards again or is this just perpetuating the same problem. well they're not charging a credit card but i do a series on their third report every month when it comes. to genie chain release and the place that the debt has been showing up it has been skyrocketing student loans and when it comes to credit cards it's been essentially flat the way asked your there abouts ok this last month was actually down very slightly the problem with charging of student loans is that they seem to be the last sucker that's left

now that we can't mean to entice people to run up credit for these things we're doing use the socially hosing our young people who are they just don't have oil experience to realize what they're signing up or it's terrible thing but it is currently close to a trillion dollars yeah worth of debt that has been loaded onto the backs of our young people yeah when they get out of that school that they're taking out all this gap or not a lot of jobs for them because they know that youth unemployment is high which brings me to the other forms of unemployment that we do see a lot of temp jobs in this last job report we got created some analysts saying that the private sector jobs that were created a whole lot of those are low paying jobs so when we look at the deficit and we look at the kind of jobs that are being created doesn't seem like the numbers add up to me karl and that how we're going to get out of this math that's both for unemployment and the deficit. they don't know where the real problem resides we have a labor participation rate to barely move west wants a lot of gated all that much of or probably out this morning when the release came

out we've been a large number who came back into the workforce and the problem is that when you look at the actual rate of job increase compared to the increase in the population you find that we haven't really created any jobs at all remember that population in the country goes up if we bought this well and so you have to create enough jobs every month in order to increase in the working age population and we're not doing that and what is that number again is it still what is that to in order to jessica now for population growth and if people they're entering the workforce it's a little over two hundred thousand monthly so when we look at it to get a. cheap labor participation rate ticked up a couple of turns people looked at it and said oh one of but in fact it has been trolled since purposes for the last two years it still is it's true last year we took a little bit too so there's been no real movement of sorts and yet that makes headlines the end of the little increase in the participation number of rape that's been

something that i've seen in the mainstream because interesting because you're saying a flat let's talk about the banks though because he did mention them and another report came out from the g.a.o. yesterday which was very insightful karl let's take a look at this because i want to pull out the exact line that was the most interesting to me if we could bring that up because it said as of january thirty first two thousand and twelve three hundred forty one institutions had accidents p b c p p excuse me and this is basically the part of tarp where most of the banks got their bailout money they're about seven hundred participants now. about half of these guys made that c.p.p. repaying with funds from other federal programs and aside from that there's more the number of institutions missing scheduled dividends or interest payments had also in. chris i'm really curious about the fact that banks have been paying back this that's money that they owe with money from other federal programs which really

get to this issue of karl how can we know just how much money has been diverted from u.s. taxpayers like you and i to the financial system it's a tremendous amount and that's where the problem is if you look at where the issue began and it was of course in mortgages and you look at the decrease in mortgage credit outstanding on the fed's the one when dismissed started i said we had about three trillion dollars worth of damage to take an area in fact we're taking about a fifth a bit here and the reason the banks are still in operation is because they first took bailouts and then they banished to find ways to shift there in order to allegedly repay it but in fact they didn't really repay it they just took a twenty dollar bill out of one pocket differ on it so you know we're twenty dollars really you know richer. this is a shell game and it's been going on. for quite some time but when you look at the total picture what you see is that it's humiliation is all showing up now at the federal government and so you have to look at this is

a systemic issue that is now going back up we are now it recent faster than we're increasing g.d.p. which is how we got into this mess in the first place and we not change we're doing we have not changed what we're doing a get going back to tarp and the government bailouts and you say that all of this money is just getting saddled on to the government that we still hear the talking point that the government made money on tarkus to hear echo in the mainstream media once i want to play one of our favorite sound byte for you carl. do you know that taxpayers actually made money on the wall street bailout. the same way ninety m. they did on the wall street does it make you feel any differently than yours. if i were right in my culture. if you were right sure but if he did his research there is plenty of information that shows that that's wrong so how is that the conventional wisdom if we could just you know kind of laugh about this for a second well you cheer told people the truth about things like this don't want

your. most certainly what you're in the trade or these particular institutions because we're choice in common street media. that you know the truth what else is there to say yeah that's all you have to read i'd wish that that was blasted all over headlines and and that was brought to the occupy wall street protesters instead of be hammering them for not knowing that the government made money on tarp according to phony reports but i do want to stay on the banks for a second because switching gears just slightly we do have this news on greece that they got the private sector to commit what they needed to to the bond agreement but there are going to be able to trigger this collection collective action caused cacs whatever stand for sorry probably get out exactly right but basically it's going to be able to force about ninety five percent participation in this is expected to trigger a credit event triggering c.d.'s which the i.s.d.n. has not decided on yet my question to you on the i asked

a voting committee are big banks like j.p. morgan goldman sachs firms like pimco i'm just curious what impact that has a bear voting. my sis of i understand that there was a report of a certain newness to decision has been made of the epic trigger that was not unexpected you really can't say no in a situation like this where forces didn't apply because if you did then what you would have done is to clear the credit default swaps or focus instruments that are worth nothing you could go in for those who are frauds or doesn't make a difference nobody would buy them the day after you made such a decision so that they're going to get triggered here is a foregone conclusion the problem becomes the now you're going to shift your speculation from greece into other places that have a great deal of pressure that's very similar such as portugal spain and while the credit default swaps are outstanding against greece's a few billion dollars if you see the same kind of attack run against one of these

other countries in europe it's going to be an entirely different situation because there you're talking about hundreds of billions of euros you have the money just simply doesn't exist to cover it and then you're in our real pickle i can't call we're going to leave it there for today that creates a kind on and talking about all of these various things all this really have technique on the friday that with karl denninger author and trader. oh and still ahead bonuses for m.f. global exacts that's a job right they get and we'll break it down with a reality check but first your closing market numbers. you just put a picture of me when i was like nine years old i like to tell the truth.

i confess and i am a total get of friends that i love driving hip hop is that the manuscript. i do is kind of the jester. i'm very proud of the role that it's played. oh. you know sometimes you see a story and it seems so easy to understand it and then you glimpse something else here sees some other part of it and realize that everything is ok. i'm charging welcome to the big picture. what drives the world the fear mongering used by politicians who makes decisions.

made who can you trust no one who is you with a global missionary see where we had a state controlled capitalism in school sessions when nobody dares to ask we do our t.v. question more. welcome back so as i was starting to get into before the break greece's bailout is reportedly moving forward after greece did get more than eighty five percent of private sector investors to agree to the debt swap now this is again to reduce greece's debt so we can take on more debt from international lenders to address the problem of too much debt but that's another moment today the greek government also approved using collection acton collection action causes cacs to force more

investors to take part in the swaps which is expected to bring that number up to ninety five percent of those bondholders now greek officials hailed the debt deal take a listen this which was from. your side because there are two for the first term solution structural for forgiveness those are unique to the global financial markets. but is it a unique case of the global financial markets because other countries in the euro zone are saddled with too much debt and coupled with austerity unemployment not enough growth could be a big problem so what precedent does this set exactly well bestselling author felipe bagus is here to help figure that out he's author of this book tragedy of the euro and he is here to tell us how the tragedy is impacting us today thanks for coming on to the show welcome back. and you are great to

have on because you are a german economist you're sitting in spain you're at the heart of where this is all really going on so before i get to what precedent this sets for greece for other countries as i just mention we do know that the e.c.b. has been doing quite a lot so that the government and banks can have more time to figure out the situation in other countries as a result we've seen its balance sheet explode and we're often very critical of the fed's balance sheet on this show but i want to bring up the e.c.b. because it's actually increased very very much and it's expanded more than the feds has in the past three to four years how large is this to you. well it's very wrong . just. wish i was leverage and. it's liabilities that is the euro is actually bent over every bit as it is by loans to install its own governments and banks yeah and just to give our viewers

a live in a little bit more context if i could bring up a chart that shows what the e.c.b. is balance equals as far as portion of g.d.p. it's quite staggering it's a third of g.d.p. compared to the federal reserve's balance sheet which is nineteen percent of u.s. g.d.p. the bank of england which is twenty one percent and the bank of japan's which is thirty percent but moving on from that i want to look at the greek deal because in a report from the think open europe in europe they said that at the start of this year thirty six percent of greece's debt was held by taxpayer backed institution it's by two thousand and fifteen after this deal has gone through that circuit increased to as much as eighty five per cent so let's go through the scenarios does this mean that this is going to amount to a lot more political and economic strife in the eurozone as we see taxpayers responsible for all of this debt and greece could have

a situation that interior it's even further is greece will need more but it won't. be losses and these losses are. mostly. this was on the five year two to move a little bit was the illusion that. the losses but there would be and this will. be number one mom or family really need this are we seeing some kind of korea in europe reemerge where the core is essentially taking control of the periphery but this time not with armies they're doing it by send it in the troika and saddling them with debt. by another well i think it's more the other way around it's hard working say with us say worse workers in the corner only especially if exploited by mentions of piri piri transfers of

wealth and form of informal payloads is simply fine. but what phillipe didn't generate benefit for a really long time from the periphery being able to build up credit and essentially subsidizing the exports of surplus country like germany well if you look at it from the do it what you really want is not to export to give away your stuff but we import now if i for example say sell my goods or run thought of exporting. by car. importing so what's more interesting for me well i would prefer only to import and that is what the delivery did just consume more than the center because this is very low confidence the little position the they have been in and they want to continue this and this can only be done by continuous transfer. from because it was

a pretty well so then how come germany is going along with that why isn't germany saying hey forget this you guys need to get out of the euro zone. well you know germans have. a complex. thing they have to make up. for the second world right. after the second world war the political class. of course was very strong in favor of this. the ideal of ever more central european organization there and there's pressure it's so there are many reasons why germany has gone along with along with of course the jumble relation were groping not if it would be asked but they are not well that's interesting because i think the last time we talked you thought that the german population was still on board for all of these solutions are you saying the sentiment has changed. you know the sentiment

is that this is changing and they are. opposing it but the problem is that never ever being asked so the oil steps but it's about this for example strongly support the euro but it's domes that have been asked in the first place if the euro should have used then they would have said no and that and they would know to the belo for example and that's interesting because that's an issue you have from germany to countries like italy and greece where technocrats have been put in to impose these measures such as austerity and a lot of people have claimed the problems that these countries are experiencing economically on austerity and this vicious cycle but at the same time is that one component of this that you need the private sector to invest again and don't they need to feel like there is a bottom and order for them to invest again and when that involves liquidating more of the debt and i just need a quick answer that please this quickly of something and then the forward would be

the best thing in fact for for greece or from our countries. well i would commitment all. governments to. all of them to just to just liquidate all the debt yes and then probably no one with them anymore. so and there you go start from ground zero to start from scratch thanks so much for being on the show and bringing us your perspective from spain that was fully there and our best selling author i should say and professor. yes. ok it's friday which usually means viewer feedback but today there was a story that caught our eye and we could not over look at something to get you

infuriated before the weekend sorry but if it is mandatory ok m.f. global is at stake here john chorus lines for him remember that went belly up becoming the eighth largest bankruptcy in the u.s. with a reported one point six billion dollars in customer money still missing amidst allegations it was stolen by the firm investigations of course are ongoing we have been reporting on it a bunch and will continue to but what do you know that deal for customers not a bad deal for exacts look at this headline and as global still set to pay bonuses three top executives of m.f. global's holdings when it collapsed could get bonuses of as much as several hundred thousand dollars each under a plan by a trustee overseeing the securities firms bankruptcy case people familiar with the matter said come on you have got to be kidding me ok who are these

people the c.e.o. the finance chief the general counsel i think we have pictures if you want to see them but they don't but you can google and they've been on the board helping the guy in charge of unwinding and of global maximize payouts for creditors hey that's what they're getting rewarded for you know creditors banks like j.p. morgan who have made out pretty well in this bankruptcy as opposed to the customers who can't get their money back but the thing is this is all too familiar we have seen this before let's look at. ai g. bonus is deemed outrageous but legal we've seen this before ag got bailed out approximately one hundred eighty billion dollars worth of taxpayer money and then they gave out a billion dollars in bonuses including four hundred fifty million bucks to employees and that very division that was largely responsible for driving the company into the ground they were the ones that wrote insurance could never be paid you could call it fake and to give an example just because someone who was in

charge of it all of that division pocketed two hundred eighty million dollars in cash and an additional thirty four million in bonuses under a retirement agreement marked confidential because on also got a reported one million dollar a month consulting fee now i g.'s subsequently cut off those payments but still walked away with more than three hundred fifteen million dollars according to media reports and government documents the fact that they had him on retainer for a million dollars a month after the collapse was probably because he knew where all the bodies were buried which is outrageous since he helped to put them there but this is what we see people when they're criminals they get paid off when you're a customer you get screwed you're a sucker so what is this going to stop we don't know but as far as i'm a global goes we're going to talk more about this with futures and options industry better and more in the lead next week he's been investigating m.f. global so be sure to stay tuned for him amongst

a lineup of other great fantastic guests but for now that's all we have time for that's it for our show thank you so much for tuning in do not forget to follow me on twitter out lauren lyster give us feedback on the show at youtube dot com slash capital account but for now from everyone here at the show happy friday thanks for watching have a great weekend and a great day.