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head to washington for some economic insight from nora lister capital accounts is next. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and these are your headlines for march nineteenth two thousand and twelve out bull announced today it will pay a dividend and buy back stock answer not often asked question of what is going to do with its huge one hundred billion dollars stock pile of cash now it also had to the new i pad set another record out the really has become a symbol of successful american innovation but with products made in china it's also a symbol of where america no longer competes we'll look at what that means for the u.s. economy and can the federal reserve keep interest rates near zero for at least two more years added his dated survey says. no way

a look behind me a market survey also shows more than fifty percent say fed policy is just too easy so what exactly will it take to stop the central banks trajectory and where is this already leading to fund manager damon vickers author of the day after the dollar crashes and the u.s. senate is set to take up the jumpstart our business startups bill that so far has been touted a bipartisan compromise the so-called jobs act. good jobs are all good small businesses and entrepreneurs entrepreneurs who are going to be doing by removing call silly regulations and making it easier for them to access capital great so then why would it also allow very large corporations to get around important oversight and disclosure even years after they go public will have passed to be our break it down let's get to today's complex.

now with apple announcing it will pay out a dividend and buy a backstop with a good chunk of that one hundred billion dollars cash reserves war chest many headlines are going captured by the tech giant oh that oh yeah maybe broke new records with its latest i pad release friday that's what the c.e.o. was hinting at too now you take a company like apple and it stands out from corporations like ones we spent a lot of time talking about the too big to fail banks and defense contractors that seem to have climbed to the top of the heap and stayed there because they're like big parasites feasting off government stimulus programs welfare or the fed extracting capital from the economy now apple perhaps stands out as a symbol you could argue of the opposite

a company that is actually innovating and creating and at the same time doing really well amassing lots of cash and time they've had more on hand than the u.s. treasury but turn over your i phone if you're one of the i phone suckers and i'm just getting into and this same trend persists as with so many other perpetrations look at this the products are no longer made in the usa there is an apple i phone designed by apple in california assembled in china so what is this bigger picture trend mean for the u.s. economy and couple that with other factors like the easy money policies and where is this headed damon vicars is here to help us figure that out he's chief investment officer of damon vickers and company and author of this book the day after the dollar crash is a survival guide for the rise of the new world order so he's going help us sort it out so first welcome to the show mr vickers it's nice to have you on. it's nice to be with you lord nice nice opening thank you well along the lines of that open i

want to talk to that trend that i spoke to that apple is a part of which is that everything's manufactured in china or bangladesh or wherever it seems these days when it comes to u.s. corporations so my question there is what controlled you americans have over their economic future when they don't make a whole lot anymore. well it's not just the united states i mean i imagine it's much of western europe we have a disconnect between the cost of production in the united states in western europe and the developing world the united states the western world. has a lot of costs associated with production and manufacturing and the type of regulations and restrictions for output they do not exist in the philippines bangladesh vietnam china. kuala lumpur or whatever and it's a very hard. disparity to overcome because you've got the cost of production that

is much lower in the third world and our costs you know simply the only way out of it is to continue to innovate and yet here we have the something like the i phone that is really revolutionary as are many of the apple products and you're you're absolutely right they're not being manufactured in the united states they're being manufactured overseas i think what's different about that is that in the past when we had new technology new innovation this is something we talk about in the book they have the glow of pressures that we would have kind of a head start and we'd have that technology here in the united states giving jobs given prosperity for at least a period of time on till which the rest of the world caught up with us but it's really a game changer now you know things are really different well and that's a question i have because it doesn't seem like those jobs are going to come back no matter how much innovation there is in the united states i'm sure that can be argued but the reality is there has been

a lot of reporting down as to why manufacturing and the r. and d. and a lot of the other support channels have gone with it so what told does that have on the u.s. economy when you when you look at it a picture. well like i guess it hurts but you could also say that a that a vibrant economy constantly has creation and destruction you know industries are created industries are destroyed they're replaced new technologies we don't have the the the horse and buggy anymore. you know we're not we're not clamoring to hold on to you know i don't know i mean that radios have to be made here so you know things change times change markets change we should probably accept the fact that they do change yet we had leeway in the past and we don't anymore you need to be fluid adaptive and be flexible and increasingly the economies of the world are interlinked and global and globally interlinked and i want to speak a little bit more about the global interlinking of economies i want to talk about currency because you made quite a splash in back in two thousand and nine with the financial and alternative media

with this interview i want to play a little clip and ask about it it may resolve itself in some sipe of a of a global currency crisis and then if the global currency crisis unfolds then inevitably you get. i guess an alignment under a global world government. new global currency and a new world order. so i guess the question now is of course about the dollar and it's a horrible trajectory it could go down back in two thousand and nine i'm curious if now if even you're surprised at the relative strength the dollar is seen more recently. right well you know i we were we were in a very very difficult situation as your member of two thousand and eight the beginning of two thousand and nine it didn't get much better. and i made those comments on c. and b. c. asia at the time and the dollar would need effectively to take out a new low and so the dollar really hasn't done as much it's gone higher

a little bit but it's higher than where it was in two thousand and eight it's higher than where it is in two thousand and nine and two thousand and ten and eleven and so that's really big europe you know the cories all that and that's kind of put some strength into the dollar we can't really get short the dollar until the dollar effectively breaks a new low we are trend followers we want what the market wants and so the dollar kind of hugging that line two thousand and eight low and it would essentially need to break support if it breaks support we will as our firm has a desire to which is to follow the direction of the market we will essentially do our part to protect our investors and get on side of the dollar and the direction of the dollar in the middle of the dollar which may be substantial from that price break but it hasn't gotten as of yet so therefore we can have no trade on we are essentially long u.s. market we are long u.s. stocks with investments in companies like little lemon tree called the mexican

grill pinera bread w. or berkeley. coal bunch of companies and just grow there are a number of good companies and good businesses in american actually are doing very good and we're proud of them and what will that's interesting that you going back to what you were saying about the things that have impact on the dollar and you've mentioned your app and some of these other global crises that we've seen what about the dollar holding up do you think that's why it's held up so well and it's all of the quantitative easing that we've seen. well quantitative easing you might think would be the loot of the dollar has held up because of the instability in the world you know if you are in france if you're in germany if you i mean investors need to put their money somewhere they were getting not too excited about what was going on in the euro. you know so where do they put their money they've put their money into the dollars so i think that's really what's helped the dollar is the instability globally and it's. it's the start of something that pimco c.e.o.

mohamed el area and his that is the cleanest dirty shirt phenomenon nobody likes the dollar but it's the best you've got of the top currencies when does it and why does it still mind wind as you once predicted well well let's talk about that like a lot of alarm and he said we need to watch bill gross to apply. you know you're asking me to predict are you asking me to predict lower and it sounds like you're asking me to pretty you know us going to print you know what i predict ok i am not asking you to call on the crystal ball and let me. do you like i know your bear you're out sounds like you're bullish on the dollar right now but do you still see there being major problems because you're the guy that at one time was saying this is going to lead to a new world order. yeah well we've made a move towards a new world order and i think the trends would likely legacy but my version of a new world order is that it is a benign new world order that's based on the law of respect commonality and peace on earth it's not which is kind of a different direction you might have now the new world order that you're seeing all

is the repressiveness of the state the overarching control of regulations and a government that is growing on a global basis that the governments are growing like a tumor on their population a slight pulling all the time of hope of liberty freedom in the pursuit of happiness on a global basis now that type of a new world order i don't want to see but the type of a new world order we're millions of people can gather and do the type of thing that they have done over the internet or whether it's the viral illness of a recent facebook video that went all over the place about a guy in the congo i think that people coming together commonality with love and respect for one another that this is something that's been shared a thousand years ago and concerta thousand years into the future but i think people the strength of people may surpass the utility of government basically and i think people inevitably can transcend the power that governments may think they have over a global population and that's my idea of

a new world order in terms of the dollar and betting against the dollar this cannot happen until a new price low has broken we short weakness at our shop and we buy straight that's why we're along the us markets i can't get short the us dollar till it takes out a new low and if it takes out a new low will take steps until then all you can say is that the dollar is basically trend was there is no trend in the u.s. dollar no trying in the u.s. dollar kind of like you know trying to interest rates except for flat lining i want to get more into federal reserve when we get back to ask you about that we're going to go to break quickly and when we come back i will have much more with gaming decorous authoring chief investment officer david baker and company. and still ahead more on the emerging market for whistleblowers this time in florida i'll give you our three cents on one woman with eighteen million dollars richer for taking on mortgage fraud the first your closing market numbers.

well. it's technology innovation all the developments around russia we've got the future covered. welcome back the u.s.

senate is reportedly supposed to vote on the jobs act tomorrow now that stands for not jobs in the traditional sense it stands for jumpstart our business start up at the white house has reportedly endorsed it the house overwhelmingly passed its version here is eric cantor talking about why the threat of hard taxes and increase regulations has small business men and women and entrepreneurs' frozen in their trucks small businesses and start ups simply do not have the band with to comply with washington's red tape. yes we could not agree more so we're so glad the government is making it easier to get around red tape for any company going public valued below seven hundred million dollars and earning less than a billion dollars in revenue wow that is some small business plan but it is a pretty big small business is roughly ninety percent of i.p.o.'s meet this criteria and critics say investors in these companies will be able to look forward

to the legalisation of the kind of wall street pump and dump behavior band after the enron fraud so i want to bring back damon vickers chief investment officer of game in their careers and company and author of the day after the dollar crashes a survival guide for the rise of the new world order because i want to talk about this he was just saying that he is positive about some of these american businesses but does he think about it and act like this that allows him to get around a lot of the investor protections that i don't know what he thinks about them but we're going to see before i get to that mr vickers i want to ask you one question about the fed because we were talking about the dollar and quantitative easing before the great i'm curious how is the fed going to unwind its portfolio without derailing the economy or do you think it has a plan for that. well i don't think they want to unwind it right away i think the fed is very happy to reflate the economy and they are that's really what we're looking at an economy was inflated real its first stocks heading to two thousand then the dislocation two thousand to two thousand

and three of which we were principally short and then coming into the acceleration of real estate into zero seven peaking into zero eight the dislocation of the real estate dislocating against the banks and then the collapse in two thousand and eight the stock market has been to reflate it and now we're starting to see the real estate market reflate so i would imagine they're going to kind of keep money kind of nice and nice it easy to try to shore up a little bit some of those real estate prices and real estate prices and i would imagine you may see some it's possible that you might see some light at the end of the tunnel and that light me might be something different other than a locomotive as it is piling on and you know people just to follow it briefly but if they lose control of inflation. you know it doesn't look like it you know we don't really i know that people are very concerned about inflation i know there's a whole metal industrial complex and we own gold but i really

i really don't see it really i mean they're fighting deflation not inflation and that's why. he has said that he will keep rates low through two thousand and four fourteen that's a green signal to investors and to kind of maybe get a little bit more aggressive on m.a.r. and so we're seeing that pending transactions in the real estate space have gone way up over the last four months we're going to see some numbers in the housing sector this week and we'll get more clearer indication as to what those numbers look like but everything that we're seeing in real estate has as been very very strong i'll tell you a quick story my wife and i take adventures and my family and i were going up to to the north of seattle and we noticed that the mills that have the the the trees were absolutely stacked with trees and lumber and that's a nice indicator because you get a lot of these companies are vertically integrated you don't cut down trees unless you have fires so i like that so i think we're going to see some nice some good

numbers in the real estate sector we have over the last couple weeks i think that if they could continue we'll see ok moving that's an interesting counter to them in a graphic i'm on or very concerned about what's still on banks' balance sheet and i realize losses in the bank have a mark to market a lot of their portfolio and i think you think the new construction is coming i want to ask you about both are you did you want to add something there. you know i just i don't live there i live on what i can see i don't live on dead balance sheets analyst reports you know i don't really invest based upon what we see in the markets either price momentum and or the reflection of the fact that my my wife likes little lemon and my girls do and we buy the stock that's what i go oh all right well let's talk about better let's talk about that because we have this jobs that coming which sounds like it's going to allow small businesses to raise capital more easily which sounds great to me but it also sounds like kind of stuffed in there is removing a lot of investor protections for much larger companies allowing them to get around

some audits for five years allowing companies to operate that long without an independent test of their internal controls why should this be allowed. well you know i think it's a great point laurie and mary shapiro at the f.c.c. has raised some very good points. and she's that we really that investors should be aware of this sector it's things that really changed you know how did we get here you know you may remember in two thousand and eight we had the implosion of lehman brothers and we had against lehman in two thousand and eight but lehman was an investment banking firm we lost lehman we had bear stearns we lost bear stearns and so really a lot of the distribution for i.p.o.'s has been dislocated right at the same time in recent years you've seen the arrival of companies like secondary market in the end like you have the ability to invest in facebook now for the last two years by insiders selling out their shares same thing and saying the same thing in groupon so they'll want a lot of times in these companies were finally go public there'd be no gas left in

the engine they basically full on it i think i don't think we go back meaning that you've got that the internet you've got investors that want to invest and you've got these new we ways of distribution so we've we really have got to monitor this i think it's it's a positive development liquidity is good for new industry we want new businesses we want new ideas we want new creativity we want all of those things funded so that entrepreneurs that have great ideas can bring those ideas to the market and the whole economy could be benefited the risk though i wouldn't is you know let me go ahead we just have to start in and ask really quick that the risk is is that you get you know the snake oil salesman take advantage of the general you've got to be careful i think if we have good disclosures ok that investors know what they're getting into you could you could you know we really have good disclosures in the companies that are being offered. that i think we have some hope here oh my god

what a task for the for the f.c.c. and regulators to regulate what could be tens of thousands of companies go. in public under these these new these new. yeah guideline yeah and his abilities and just real real quickly before we go i just need a quick answer because it sounds like a lot of those disclosures are going to be waived so i totally agree with you about how we need entrepreneurial ism we need entrepreneurship and the ability to do that but a lot of this still sounds like it's just disguised as a jobs bill that would allow bigger companies to get away with more fraud you know you're not going to get away from the slogans in people that are offering it that's the general public have to have good disclosures you know you're going to have to look and economy business capitalism is an experimental process whereby you try things you see if they work and if they succeed or they fail that's what it's all about at the end of the day we're going to have to see whether more companies more industries more jobs are created by loosening things up or keeping them

stifled restricted and we're going to know whether or not it was a good road to follow down but i like the idea that we're actually doing something to. to help entrepreneurs raise capital but look beyond all your fight and you've got a great idea you've got a great idea yeah apple is going to find its way to you oh there you go there's an interesting prediction thank you for coming on the show it's nice to meet you and hear all of your insight that was damon decker's author and chief investment officer of game inventors and company. all right time for loose change let's get you need three and shannon here to talk about whistleblowers what else we've been talking

a lot about if this could be an emerging market on wall street well we have the face of one of the whistleblowers who has seen a pay off a florida woman who won an eighteen million dollars that when she was one of the whistleblowers and a twenty five billion dollars settlement between banks and states that mortgage settlement she got on board after discovering this it turns out she discovered robo signing a practice in which she says many lenders assigned low level employees to sign an easy to spell name on a never ending stream of foreclosure documents that paperwork simonyi access as was used to dupe the federal government into paying the banks their insurance money well i'm really glad we have people like this who are becoming obsessed with unveiling fraud she became obsessed she did this ninety hours a week and discovered robo signing because as we've learned from the west of lower from the cd you know it's discouraged there whistleblowing was there robo signing was a trend that they were like not supposed to sign on to too much they're supposed to

dispel this media hysteria i think we're seeing here is an emerging market whistleblower and it's about time because if americans are going to prosecute the legal system is going to prosecute criminality the movie and introduce a market incentive all right we've bankers are willing to commit crimes to they're going to make more money and at least give mr a shot at trying to do good by making them make it worth their while financially i think is a good try and i hope this is an emerging from i can't i mean this is the first base we've put to these whistleblowers that actually are seeing a payoff hopefully it's just the tip of the iceberg for the issues one and six you have to pay off so hopefully a tip of the iceberg you're going to put a name face to the name of the iceberg careening right into the. diamond in the in the pathway straight there let's move on because you buy has been hosting the middle east biggest boat show but the economy has done most of the boating market except for one part. when the market fell through a little bit and into medium sized yachts as we call them anywhere between forty

foot in it before to reassess investments and basically move resources to the small craft to the superyacht section that actually is thriving today so this super got section is thriving but does this mean bigger picture to me this is a super guy this is a little bit super well when you have when you when you conduct monetary policy as the fed has done destroying the yoke of the strong future returns and just siphoning off money and you create this feudal system for monetary policies for the governments and then becomes organic and then because you create a structure of feudalism in the economy so now the middle class is gone right so you have basically small yachts and with these giant superyacht so you creating an economy that takes labor and resources and allocates into the creation of goods and services for an elite class of people so if you can ever go back to a normal economy you're going to have a depression which is when the problems the beginning they say don't work the economy just because you have a depression but the more we don't want to adjust the more you have oligarchy we

have the top and all these kleptocrats sitting with super yachts sucking up all the resources so if the middle class ever emerges again there's not going to be on top of the bike and they're not me he more than a fishing boat and i don't have to drive through grenades in the water to catch fish is going to be a really this still be in the future by then they will already know how to build their own boats because they will have probably prepared for all of these dire situations they thought they might be and shannon what's your takeaway from this. that superyacht is twenty eight billion dollars that's obviously too. loud she could almost buy a super god this is the big business that's what they're all in perspective that with in perspective that's really good insight and she's trying to climb the ranks of the proletariat but she's stuck there if there's a real maybe she well some day dimitri with your dire prediction that's all we have time for thanks so much for tuning. and don't forget to follow me on twitter at lauren lyster and give us feedback on the show at youtube dot com slash capital

account and from everyone here thank you so much for watching be sure to come back tomorrow we have a great interview on tap and every night.