flared up. these are the images we're seeing from the streets of kandahar. operation today. tonight's top stories the first u.s. marines reach the strayer as america's military moves in on the asia pacific region to challenge china's growing influence. russia was against arming the syrian rebels with peace efforts underway saying they can topple president assad little only to lead to carnage. and deadly deathbird pension to shoot self in front of parliament in athens the biggest soaring suicide rate and growing financial desperation across you. now laura lister in washington with tonight's capital account.

good afternoon and welcome to capital account i'm lauren mr here in washington d.c. easier headlines for april third two thousand and twelve u.s. president barack obama gave a speech accusing republicans of social darwinism with the budget in its cars that they passed in the u.s. house of representatives lot. of political tour turned history as a land of opportunity and upward mobility for everybody was going to work for but how much opportunity is there really left exactly in the u.s. we speak to dr marc father a publisher of the gloom boom and doom report who says well destruction and social unrest may be on the way for western economies and yesterday wall street had a strong start to the second quarter with the s. and p. five hundred marking its highest close and mid may of two thousand and eight and then today we saw that come down as apple m c minutes came out and revealed that the federal reserve is holding off on more monetary easing unless u.s.

economic growth falters or inflation goes below two percent so is this risk gone risk on and what does that mean for the economy that this is the way we're always looking at things and we've heard talk of the possible student loan bubble more than one trillion dollar debt problem well it appears sun senior citizens are on the hook court along with kindergartners we'll explain let's get to today's capital account. now as we've seen stocks rise to their highest levels since two thousand and eight and then fall a day later as f o n c minutes indicate hey maybe the fed isn't looking at more quantitative easing at this point it brings us back to one of the poor debates

we've had on the show before the inflation deflation debate so you have traders basing decisions on whether they think central banks are going to be successful in inflating asset prices or risk on but were unsuccessful and we see deflation of asset prices risk off now you could also say that this is a battle between the market economy and the economy desired by policymakers and their models now earlier i had the pleasure of speaking with dr mark barber he's founder of mark limited publisher of the gloom and doom report also author of many books including our producer dimitris favorite one this one tomorrow's gold asia's age of discovery now dr farber told me the issue of inflation and deflation isn't that simple exactly because inflation is the increase in the quantity of money and credit and there are symptoms of it they can show up it's higher wages or food prices cetera but the problem of printing money is that no one knows exactly where

it will flow so in the ninety's you saw it flowing to the nasdaq and then there was a collapse and then it went into real estate and when that collapsed later it went to emerging economies so where does he think the money has flown now listen. big piece. last year. are. you sure. they are all at the same time with the same intensity and bubbles up build and they deflate the issue of inflation inflation should be essentially the question which asset prices are going to be inflated and then will collapse what do you

think we are right now what do you think has been inflated and what do you think is going to collapse will be equal mr bernanke he has been badly inflating. but. by and by the way also mr obama by the side of that i would say government it is badly inflated and also if you look at the income and wealth distribution in the world we have or are tremendous inflation among the so-called one percent and not even one percent of the population maybe a quarter of a percent of the population. people without a million or more and these people become remains the rich we are eroding billionaires even when i started working nineteen seventeen in the seventy's it was one. and the ninety eight because of.

creation we had eight billion dollars now officially quote billionaires are actually there are a lot of are not known by fours by years they are at least fifty billion or so in the world and you know my question since you did mention a seventy s. i want to kind of compare to when you were coming up as an investor in that time and terms of how much people were guessing and questioning what impact government policy and central bank policy would be in the way that we see it today with you know every time you turn on the t.v. it's this discussion of restaurant rest stop people getting in bed in a government policy and its impact how similar different is this from when you were coming up as an investor for example during the stagflation of the seventies when you're asking a very important question because. central bankers the financial

people. were necessary. because. if you look at the origin of the crisis in the cold they were actually. govern. by central banks by keeping him from. creating bubbles in the first place and don't forget one of the big policy mistakes was. a policy. including. to for all the. so-called government. both of them when the. bankrupt like no other company before it was expect whatever the government does. is much

worse than the private sector it's about like you are saying that it's gotten worse my question is we live under the assumption that the us is a free market economy where do you think we are do you think it's fair to say that we live in a market economy anymore or is it mostly market driven or is it worse than that where are we what i think is a question we have democracies in the west in the world people are free when i travel through the u.s. and through immigration. airports i don't feel like a free individual i don't. think. by governance in cooper marketplace i have actually destroyed that market and if you think about it we have zero interest free rent we have cost of living increases of say five percent ten percent or so people who are being saved for your million

and million pounds on presents this people can never speculate. at least of interest. because it's now to get the. cost of across the living increase of five percent of their purchasing power is diminishing by five percent other words they are faced with an extra creation government it doesn't sound. obvious to everybody party. creation but it's like if you would rather be positive in a. hundred thousand dollars and begin. the year end of the year you only get ninety five thousand are there was zero inspiration out of state having say five percent inflation and zero interest rates purchasing power loses by five percent

and it's basically killing decent people it's forcing actually people to speculate exams are forcing people to just these tiny actually progress if you're a saver in the u.s. and you don't want to take that risk and you've been very clear as far as what you think the fed is going to do that it's kind of playing money as far as the eye can see and that central race and general will continue to fray so given the fact that we've already seen a massive amount of money printing any u.s. it's really only been affected to paper over a lot of problems in the economy my question is given the monetary system in the way that it works is it even possible for central banks to achieve what they're trying to kill no matter how much money they pump out. doctors are very good question is money printing word. anymore and the difficulty is to know on which. one to work anymore basically ever believes that central banks can control economic activity like

a mother would drive a car from the accelerator and then on the brakes that does not pay for central banks nor for any economy and we know now after the. experiment companies and the company what a complete disaster of government intervention into the market. this is precisely what the federal reserve and the treasury are trying to do for sure a blue fail over time but it may work in the same sector stock market goes up for a while to. go up. high inflation. or argentina makes. a call for charity and during the money printing stocks sometimes. run it or a thousand times within one or two years. the whole system cracked the whole

system and they will happen and will what do you think it will translate to politically when you say that because i know you said eventually wealthy social unrest politicians will take us to war so. that had to be fighting. i wish to play all of. us the us has been very good at finding enemies anywhere in the world when they wanted to find someone. but i would say my table is like this. if you look at the last two years. money printing had essentially benefited very narrow group of people the so-called one for. one percent a quarter percent of the population and with a large part of the population the fifty percent lower income groups would the middle class or lower middle class and the working class their standards of living

haven't increased in the years. more than twenty years ago the us is morning big and the go are you just have to look at this. loads of power compilers. tell you they will be every day. anyway so. they will continue to print money not right away with the forty nine hundred eighty s. and p. drops on the two hundred points for sure there will be money for sure that will be q e three. and the drop of a thousand the q e four five big whatever. help me really want to help boost the standard of living of a middle class and below a cloud it will help people sheriff and gold and maybe some real estate in areas. come came among the population will grow.

how do you. target the minority groups say we see now it's. a goldman i think on justified because what's goldman sachs they all the others have told about no exception and if that doesn't happen go to war and find that energy and. that we have to kind of old air and fight the enemy and force that eventually the whole financial bubble will be breaking the whole derivatives market. i don't know how. the bajan trillion is it's a thousand. and there's all bubble will be deflated was there that day that there

will be massive wells destruction. still ahead at one time about a decade ago dr mark father's advice for young people involved moving to asia and aren't you blind well you will not believe what he says now as part of good bye how times have changed don't hear it after the break but first your closing market numbers. low. technology innovation all the developments from around the world we've got the future covered.

welcome back our guest is dr mark bobber fund manager also publisher of the gloom and doom report now before the break he was talking with me about the political consequences of the well destruction that he predicts is coming and these include growing discontent and attempts at times to distract the discontented in his view and also the prospect of war so i called up. the bolshevik revolution happened

during world war one is there a threat there could be some kind of major revolt seller that in countries like greece or spain for example where the public debt will jump to its highest level since one thousand nine hundred a year as their economy sinks into recession and the country is under intense pressure to cut a deficit and repay its debt without outside help or even the us you know could we see social unrest become an even bigger force for change than what years countries like scream greece when the population. was. our transit was. all that money go. to several government officials and a few rich people. and then it leads to lead to social unrest years and you know you suggested that rural real estate might be

a good buy because hey at least people are on your route so is this what you've recently been suggesting buying real estate in southern us areas like florida and georgia outside of major cities of course yes i think if i look at the future i think we're the last five thousand years this or security because sickly walls essentially are fortresses. so the people who. were actually better prepared for countries in this. roaming herds of adversities or spies or to pass through. but. very dangerous because if they were to or in washington d.c. . your. mobile phones you have

a major problem which you wouldn't have if you're living. in your. so is that why you've been suggesting some of these real estate opportunities in the southern u.s. yes. if you if you are you have to combine the cost of the. cars you find their earnings were they know that's not the only chinese congested it not only time you've suggested that in tomorrow gold you had an interesting recommendation for young people that involved moving to asia starting a business in asia i think it involves i'm calling you guys perhaps some other color forming so what recommendations would you give to young people now in their twenty's and thirty's well i mean for parents very common. the rest of the world. generation i do long to that which i boast only ninety

forty takes. maybe even early eighties everything got better for us you know salaries went up when i was going to burst i could choose many different jobs not not a problem to find a job but with the breakdown of the companies and socialist ideology the three billion people that joined the global economy. because of the. people can be educated quickly. they can learn. without having to buy a book to save your born in a small village in. the us dollar you just call the quality. read everything on the computer. you have among young people much more competition. and i think. the. world.

could go. up. the majority. of huge competition for people hungry for bad and i had any opinion that i was kind of a living in the western world i want to achieve. the word seven days a week. four hours a day and sixty five days a year and that is a huge competition and so i. think young to have lowered expectations and i believe that mentality in the western world the second type human society where everybody says. we have free market then a capitalist system when something goes wrong. god knows what. that. so he's basically saying lower your

expectations or be hungrier and either case a little more bleak than moving to asia and getting some concubines i'll leave you on that note that was dr mark fund manager also publisher of the gloom and doom report. we. are i don't know how we can come after that but we're going to try to wrap it up with some loose change we have dimitri and shannon and mark mentioned student loans we know they're more than a trillion dollars he doesn't think they can be repaid look at this it's not just college students people in their twenty's thirty's that are owing money and need to

pay these loans to to stix just released by the federal reserve bank of new york say that americans aged sixty and older still owe thirty six billion dollars in student loans these are city senior citizens ok and it also seems that some parents are saying and growing on the debt and lining up for it just like these competitive kindergarten parents take a look. as you normally would see can't we just like would like try to you try to get deals there but the deal year is just trying to get into we could be good because going to go. so they're camping out for their kids to get it to kindergarten and you've heard how competitive parents are in new york i know particularly well now parents are getting student loans for their children as young as according to smart money which is one of the largest providers for loans for k. through twelve education they're on track to finance twenty million dollars in loans for the two thousand and twelve two thousand and thirteen school year and

just to give you context of how that compares in march the dollar amount of these loans was ten percent compared to a year ago so is this student debt bubble going to encompass the entire population from kindergartners to senior citizens and for what the jobs that are available aren't necessarily jobs that require a college education right i agree and it's not just that there is the the the student loan bubble the american education system is a joke some of the dumbest people in the world are the people who come out of this system ok you know you have some good colleges but the reality is people who don't always get education that ultimately. and getting ready and don't remember ninety five percent of college time and others who are out there are no anything being i don't know about being someone who did value education and did very much value my education and benefit from it with student debt though i should

say i think that the bigger picture here is evaluating what you're coming out of school in order to do any kind of a not analyzing it more on a cost benefit basis more of a risk analysis basis do you really look at it that way as a business because you're not going to necessarily get some high paying job to pay back these loans especially not of mark five years predictions are right now i'm saying that people actually go to school have they have no real. they're entitled to their college experience in america our ability to actually see the education they're not like i want to learn i'm hungry i want to succeed know that i want to go on for years and hang around the dorm and have going to go from dorm to dorm smoke some pot and drink some oddball must my college education of course for the sake of code anymore i got a lot of whining about it your find jobs but that should be spending more time learning in school as opposed to writing a book for a worthless education i do think you're on to something with kind of a middle class entitlement a college education that doesn't necessarily value the classroom experience every

day shannon you want to jump in here jumping off of i think the lower you go for each i feel like these are helicopter parents thinking that their children are entitled to a private education and the best primary schools and high schools and things like that where you never know if your child. has a problem it is true and they'll announce that without raising grandchildren and are going with that no they will end up saddled with the debt if you're taking out a lot of your kindergartner i hope they can or gardeners not in the book or that let's move on because the hope of revitalization is in the air their brain you can see you know the rabble is the first to open in a city in twelve years two point four billion dollars it was halted during the recession but the governor chris christie put all of his chips in offered two hundred sixty one bucks in tax credits to be used for economic redevelopment so will the house when well here's how gaming is going in atlantic city the revenue for this city is down thirty six percent and this year city is forecast to see its

second ranked rank in the country as a nation second largest gambling destination i should say to pennsylvania. so is this essentially the only hope for the u.s. economy is to bank on vice right move this is the american business model it's a person's. casino gulag state so you have lots of prisons and lots of casinos all right this is the consumer version you basically people's hopes and if they win they get a chance to be part of a reality t.v. show or are you see you know it. and it's not just vice in the us i should mention that in canada a recent court ruling made major moves to decriminalize laws of prostitution so maybe this is more widespread we're going to leave that for a nother day but you can decide for yourself and let us know on our website you can give us feedback at youtube dot com slash capital account as that's all we have time for thanks for tuning in don't forget to follow me on twitter at lauren lester and for everyone here at capital account thanks so much for watching and have

a great night. be.