my. welcome to the alone a show well you get the real headlines but none of the mersey we're going live out of washington d.c. alone has the night off i'm christine for is out now and i will have our financial checkup with lauren lyster host of the capital account here on r.t. and the facebook facebook went public today we'll look at all the hoopla and then will the economy implode if obama wins a second term that's what our guests tonight joe weisenthal deputy editor of business insider argues and corporations have taken over our politics have they also taken over our universities well look at how corporations are pouring millions into funding university research but on their terms we'll have all that and more

for you tonight including a dose of happy hour but first let's take a look at what the mainstream media decided to miss. syracuse university just released a pretty damning report that essentially calls into question one of the central promises president obama made regarding immigration syracuse has a program called track the transactional records access clearinghouse and basically they file freedom of information act requests to find out on important topics topics like immigration and the numbers they found are pretty shocking do you know what they are when you hear about them and no you didn't instead you probably saw a whole lot of this. the most hyped i.p.o. of the year is finally here facebook going public the founder mark zuckerberg kicking off the social networking giant's market debut bringing the nasdaq opening

bell this morning from facebook headquarters president obama kicks off back to back summits with foreign leaders today first up a gathering of the g. eight leaders of the eight of the world's richest economies at camp david brand new developments in the highly controversial trayvon martin case we have a clear image of the moments just before and just after the killing of trayvon martin posed an ad campaign linking president obama to reverend jeremiah wright strong denials this morning parts of chicago being shut down this morning and security will be very tight when president obama and fifty heads of state arrive in the windy city send a for a nato summit world leaders arrive at camp david this morning for the start of the g. eight summit the facebook i.p.o. you mother of all ideals but it's from mitt romney defending his business record the jury in the john edwards trial started deliberating the last known images of trayvon martin then on saturday night it's on to chicago for the nato summit are you ready to friend facebook. all right so nothing about this new report out

nothing about immigration even though since president obama entered the white house the average number of deportations per year has been about four hundred thousand according to the part of the department of homeland security that is twice the amount during president george w. bush's first term and thirty percent higher than when bush left office the last summer the obama administration did a promise to focus those deportations on those people with criminal records as opposed to those who came here is children or those who have been good citizens working hard and well being an asset to the economy the obama administration announced a major change in policy for thousands of illegal immigrants going through deportation proceedings some call it a realistic way of handling illegal immigration others call it amnesty under the new. policy immigrants classified as low priority cases could be granted a stay at a chance to apply for a work permit the back door to amnesty and i don't believe the american people

support that the department of homeland security will suspend deportation proceedings on young undocumented immigrants who pose no threat to public safety or national security the obama administration has announced a plan to deport illegal immigrants on a priority basis we're a country of laws where we believe in the rule of law. and the bottom line is that they are you legal aliens entering our country this sends a green light to everybody on this planet that if they can get the united states and not be convicted of a crime they get to stay seventy nine percent of these people who would be affected by this new policy have done nothing wrong no criminal record will threat to public safety so why not set them aside and deal first with the people who do pose a threat convicted felons for example would be among the first important. all right so just before that announcement that new policy about sixty two thousand people were deported and ninety four hundred of those or about fifteen percent were involved in alleged criminal activity since that time far fewer undocumented

immigrants were deported overall but the percentage has actually dropped to about fourteen percent with criminal activity in each of the three month period following so what's the deal this was a government agency immigration and customs enforcement directed by the executive branch to do something to filter out non priority deportation cases cases involving veterans parents of u.s. citizen children students the elderly and focus on those with criminal records there are so many layers here that various journalists and media outlets should have been keeping up with themselves instead syria syracuse university does the digging comes up with a really interesting report and still well that's just another thing the mainstream media decided to miss. ok it's time for our weekly financial checkup and there's lots to talk about today

now everyone's doing it we're going to spend too much time on it but we can't ignore the fact that facebook went public today the initial public offering was thirty eight dollars a share and at the close of the market today shares were thirty eight dollars a share the wall street journal created a wealth of meter and it was a big party all around or was it let's get started on your financial check up. well joining me is lauren lyster host of capital accountant lauren we've got to talk about facebook what's your analysis of this facebook fanfare well i think that you can look at any t.v. to see the analysis to. the trading today and the underwhelming response to investors to the i.p.o. we've been talking about on our show all the hype behind facebook and that it's not warranted because our analysts say this is a story stock and you know way overvalued those kinds of issues so what i think is

more interesting to talk about is something that i was interviewing francine mckenna who writes about auditors and she is a columnist for forbes an american banker and has her own blog and she was pointing out something really interesting which is that for a lot of these hot i.p.o. that we've seen recently that have been you know i say hot quotes like everybody is excited about them whether it's obviously facebook but others like groupon in these other tech companies these these websites that are these new business models or so they would have people think what she was saying is that it's given them a lot of creativity with their accounting measures which means that in her view you do have to question the integrity of what they're reporting in terms of their profits because just to give an example she said a lot of these companies start off with a lot of losses and so they use an accounting method. method to explain away these losses and they basically get to decide the management team gets to decide how to

look at things and that's how these are sort of the manager these are new kind of companies they're tech companies they're not your traditional you know banks and other things that we're used to seeing traded basically get to make their own rules i mean to an extent yeah i mean to an extent like they still do report their accounting methods in the traditional way but there is no accounting method that is that is not the industry standard that everybody looks at that they were explain away things with that there's more creativity with because they are these new business models they would have you think these kind of social gaming and social media and that kind of even though she was saying they're not very different than the business models of. and other. kind of internet platforms that were based in the past also but to your point there is she was saying creativity in terms of the rules that they're coming up with and that sort of thing guiding these companies the way they're part so it's definitely just something to just look at

with a lot of skepticism i think is the takeaway there's also another interesting aspect of this facebook story that i want to talk about if you saw the movie there was actually a sympathetic character in the movie eduardo saverin co-founder of. i'm not on facebook. for those people who did the co-founder eduardo saverin he recently gave up his u.s. citizenship from what i understand he's living the life in singapore right now partying it up or something anyway he denounces u.s. citizenship and a lot of people are saying he did this so that he wouldn't have to pay taxes on his facebook earnings just as we two senators senators bob casey and chuck schumer they proposed. putting up a tax for people who do this for people who leave the country a thirty percent tax penalty on those who leave to avoid paying their taxes what is the what's going to go on with this well i hope nothing because this is absurd denouncing your citizenship saying it you do pay taxes if you're very wealthy there

is an exit tax you pay taxes on everything you've earned and all of your wealth before you're able to sever ties so someone like jim rogers who's been outspoken in the wake of this new saying hey everyone's getting this wrong you know not to make a judgment on renouncing u.s. citizenship but in his view but you do pay a lot of taxes and you do have to settle up all your accounts before you were announced citizenship not to mention this facebook guy aside this is a trend christine we saw a record number of americans that live abroad renouncing their u.s. citizenship eight thousand five hundred in last year which was a record since they started recording these and for a lot of these people it's tax reasons that have to do with kind of the. overburden some regulations of the i.r.s. we're one of the only countries the us taxes income that you earn abroad and so there is that issue there is all of these regulatory issues you have to keep up with the i.r.s. is policies because they can penalize you even if you don't owe income tax and you

don't file properly so for a lot of people living abroad it's a headache and that's why they want to save themselves the headache and so i think that this issue's been politicized in a way that doesn't seem altogether fair well it's not fair and another part of the conversation that doesn't seem to be having being had very much is the fact that they can't seem to pass a similar type of tax for large corporations or for wealthy americans people like mitt romney who find plenty of ways to avoid paying taxes but they get to enjoy the benefits of their u.s. the u.s. senate citizenship that's a good point i mean there is a debate over the kind of income that people get in turn out of investment community and private equity and hedge funds that isn't taxed as salaries would be taxed at a lower rate because their capital gains or their carried interest so exactly it's another debate that would probably affect a lot more people that are american citizens than the ones that are maybe for very

legitimate reasons saying this is a headache that i don't want any more i want to make a judgment on what it means to renounce your citizenship i'm just beaking you know very objectively on some of these issues that i hear reported people you're right and it seems so so true that so many outlets are getting this wrong they're just sort of giving the the two second. kind of summary of what i mean here they're not getting all the facts i want to switch gears for a second and talk about greece and you talk about this a lot on your show just kind of what's been going on it just seems really sad to me what's going on there is everyone taking their money out of the banks they don't trust the banks anymore i know i read earlier this week just on monday nine hundred million euros taken out of the banks and nine hundred million dollars i think it was a dollar it was going to billion euros monday tuesday yes. yeah what was this going to mean what it means is that i think what we're seeing is that you've seen technocrats you've seen politicians elected leaders in europe have this grand plan that try to alter reality manipulate reality which is what they always try to do

they try to manipulate this huge debt crisis by putting debt on top of it in the form of bailout so-called bailouts so that's kind of been the attempt to manipulate reality and what you're seeing is that unravel under the weight of reality and i think that that's what some of these things when you've seen as you said deposit flight from greece that's i mean nine hundred million dollars in one day greece is a small country that's alarming also then right after that you saw spain having to say hey we're not having a bank run we're not having deposits like because there were rumors that a billion euro was taken out of its second largest lender so that it rushed to deny those rumors and now obviously brings up fears that there is a bank run and that people don't have confidence in the banking system and you know things are pretty pretty tricky in europe so maybe there is reason for them to be concerned in addition you have democracy all gee how that little do you work gets

in the way you know for all the right reasons because elections in greece were held and they were unable to form a government because support is very fractured and now you have this new party that's not a new party but it's newly gained a lot of steam it came in second place in the elections according to polls now if elections were held today they would gain even more popularity and you have the leader out saying hey if europe doesn't want to give us our bailout fine i will stop paying our debt you know so you have people changing the game it's all under kind of this situation that is a crisis where reality is tried to be manipulated and you know you can only do that for so it's so interesting that so many steps were taken to avoid this moment to avoid defaulting on their debt to avoid a greek greece leaving. euro zone and yes it's true when another party comes into power the rules change and things change and it is something really interesting to watch really sad to me though it just seems like all of her as people in greece can can't catch a break i guess you could say well again i mean these bailout plans have been

bailouts that have benefited creditors benefited the banks that had those debts prioritized wall starving the people in the sense of your promises that you that you made to them out of what you were going to spend on your country all right. lauren lesser host of the capital account as always thanks for weighing in on this thank you great job posting thanks. all right still to come the city of chicago is in a lockdown mode as the start of the nato summit nears a look at the over the top police presence in the city next and are we headed for another round of debt ceiling drama here in the u.s. and iran the is elected president would republicans have a change of heart on spending or you get into all of that with joe weisenthal that be the editor of the business insider in just a moment. today

. these are the images the world has been seeing from the streets of canada. showing corporation to rule the day. you know some bushes see a story and it seems so you think you understand it and then you glimpse something else here's some other part of it and realize that everything you thought you knew . was a big. all

right all eyes are going to be on the windy city this weekend for this year's nato summit this saturday and sunday world leaders will come together at chicago's mccormick place to talk major policy changes with afghanistan being front and center on the agenda but while those talks are happening inside without cameras or microphones there will be

a totally different atmosphere outside as expected protesters are planning rallies outside of the summit and they're taking on issues like income inequality and u.s. wars abroad to name a few but they are waiting for the official summit to start they've already hit the streets and early demonstrations came shortly after news spread about police raiding a bridgeport apartment where some protesters were staying. they started to protest however immediately when they arrived when they learned of the arrest of nine of their fellow protesters in bridgeport late last night now they say they were arrested searched illegally without a warrant however a police source tonight tells me that officers were covered several molokai cocktails from inside the apartment where those protesters were. the sounds of place of claim they would be doing everything they could to accommodate the protests so we're seeing two different narratives unfolding for the nato summit one from protesters who have been arriving by the bus load and another from police who

maintain that they're keeping a low profile this weekend that also means no swat gear. was in a compensate who had on battle gear but around the corner and a couple blocks away we found the back ups in waiting stationed in unmarked fifteen passenger vans these officers dressed in black commando uniforms with extra padding and their personal riot gear stowed in the back ready to go. so when the police promise no excessive gear they are ready if things get violent in fact p.d. is already spent a million dollars on riot control equipment that also includes a nato staple the l. rat and there have also been sightings of drones flying in the skies over chicago now protesters will be coming from all different groups from occupy movements across the country iraq veterans against the war and then a large group of nurses came together to call on leaders to consider the robin hood tax right now and. there are dozens of them here already wearing hearing.

he'll of america wall street let's go to a live camera as you heard moments ago right now a hundred nurses are walking from the sheraton hotel you daily. now aside from the chicago police the department of homeland security will be on hand the coast guard has been on patrol in lake michigan their boats actually have a machine gun attached to the front of them and of course the secret service will be there according to the a.c.l.u. the newly passed a law h r three four seven expands the role of the secret service to help suppress areas which hold people that the security will protect and since nato summit is considered a national special security event that means the secret service is in charge of the security plan for the weekend now under the new law the secret service can keep protesters out of whatever they consider a restricted zone preventing them from engaging in disorderly conduct walking an entrance on one of the zones or engaging in any physical violence and i know you've probably guessed that the restricted zones are areas immediately surrounding the

summit but it's also to see how the also easy to see how this new law could be used to stifle dissent worth ortiz don't want it and if the g. eight is any indicator well i don't really want it anywhere so we'll be back on monday with all the latest from the nato summit because as we all know there's not as much going on inside of the summit as there is on the outside. so it's the end of the week and we learned this week that congress has decided to remain on the outcome of the debt ceiling debacle that despite the end result being cuts to both domestic and military spending house republicans at least have voted to remove military cuts and instead put the entire burden on domestic cuts money for things like schools medicare and road repair those things are nearly as important as dumping millions into building more bombs and planes that put our own american military pilots at risk oh yeah and they also make the defense contractors richer and as far as painful back and forth from the wrangling we saw last summer get

ready we're bound to have a debt ceiling deja vu so what's the answer how do we prevent all this from happening well the business insider joe weisenthal says the answer is simple elect mitt romney in november and his recent article titled it's more clear than ever that of romney loses the economy is going to implode he writes if obama wins there's a good chance that will fly off the fiscal cliff as the political gridlock will see spending cuts kick in and perhaps even higher taxes and romney wins not only will the taxes stay low but republicans will drop their opposition to government spending and deficits that's because parties in power always support higher deficits and spending it's just what they do joining me from our studio in new york is joe weisenthal deputy editor of the business insider hey there joe i guess you're saying if the republicans in congress didn't have anyone to fight they wouldn't be fighting quite so hard is that right. it's absolutely true this is you

know this is just a very opposite to spending and deficits is purely the domain of the opposition party that's true in the united states it's true in europe it's true in japan it's just how politics seems to be like iron law of politics and it's all just you know democrats are the same way obama once when he was a senator said that raising the debt ceiling was unpatriotic and it showed a lack of leadership. george w. bush's fault of the time it's just what happens the opposition party opposes spending because spending is good for spending juices the economy spending makes people happy spending makes the president popular and the opposition party doesn't want to see that happen so the republicans never used to care about deficit spending it wasn't part of reagan's playing it wasn't part of bush's plan and it really became part of the party's believed to cut it when obama took office well i mean on one hand though conservative being conservative on spending having

a limited government that is those are conservative principles but you're right i was trying to think of the last president who didn't spend a lot of republican or democrat and hard to think about. you know this is what presidents do and it makes total sense because spending keeps people happy and keeps people employed people like to get benefits and everything and so on so naturally no president wants to cut spending and no opposition party wants to make that easy for the president as far as the debt ceiling debacle i mean gosh being here in washington with all this this talk these debates battles it was crazy it was it seemed to go on for months it was last summer and it you know it was hard and the idea of having it over again i mean nobody wants that but really i mean to what extent you know was it such a problem how detrimental was the debt ceiling deal to this economy. was it there

is evidence actually that consumer confidence took a hit right after it there were surveys that showed that businesses you know sort of delayed decisions. around hiring and spending right in that period and then there's no surprise the economy did show signs of weakening right after the stock market tumbled and if we get the next did ceiling situation and i think we're getting it is the ducks dead ceiling fight has the potential to be even worse because we have these sort of already things that are going to kick in to make the economy worse so we have this whole fiscal cliff issue which in cup is a lot of stuff but basically the mandatory spending cuts and the tiger tax hikes so there's already plenty of reason for the economy to be taking a hit adding to the debt ceiling fight of it all is rancorous it last time is going to be problematic and we should remind people one of the things brought about to try to deal with this the last time around was the super committee but when the super committee's plan could not get passed the mandatory cuts went into place and

those cuts were both military cuts and domestic cuts and that's just how it had to be even as recently as november john boehner said that's how it had to be we're hearing some different talk and i want to play something that he said earlier this week. there are a lot of people going to serve the defense secretary's make clear that these cuts will devastate our ability to keep our country safe the white house is admitted that these these cuts will have a devastating impact on our military so where is their plan it's as simple as that . all right so even though this was the agreed upon deal people who voted for it including a minor they're now sort of taking a step back and backtracking saying well the military does need all the money. you know it's completely ludicrous i mean. the debt ceiling every time without any conditions and then the republicans invented this idea that this time and going

forward to raise the debt ceiling by x. amount we had that same x. amount in cuts and the only way that was ever going to happen. you know the only way they ever got any democratic support is that the cuts didn't fall entirely on the mystic social spending and was also on the military that was the agreement and so now the idea of the republicans turning around and saying we need a plan to avert this crisis in the military which we caused by insisting on these cuts is frankly pretty ludicrous but is politics to be expected but the you know now they're going to have to go into another fight with the premise of the first you know there's no any good will or ability to negotiate now is going to basically be gone having torn up the first agreement and i know you were talking about kind of looking back in history talking about previous republican presidents and the fact that nobody wants to really stop spending and that much is not in

their benefit but i'm wondering if you think things will be different this time around for two reasons and number one is the tea party it's a really big reason they still are pretty influential. and we saw that in twenty ten and i expect that we'll see it possibly to some extent in twenty twelve also even you know i would argue some of ron paul's rhetoric is sort of seeping into the mainstream the rhetoric of needing a smaller government of not spending on so much do you think this changes things. no i really don't for two reasons one the tea party is mainly the ground troops of the party elite who really don't care that much about spending or the size of government they're great the party elite loves the tea party because the tea party's really active and activists and they turn out to vote but there is no there there are tools of the leave the party and the beyond that i know as the tea partiers in the minority become the majority and so on then a great number of them are likely going to you know sell out their beliefs as well

so that anyone can say with a straight face that when the republicans and when the tea party has more power if indeed that happens i mean who knows if it's going to win but assuming they sweep washington i don't think anyone can say with a straight face that they're going to stick to their ideals i think yeah i mean it is the thing that we've seen that lie exposed in every election that i can remember this there's no reason to think this is going to be a change yeah it's an interesting theory that you put forth and really when that's difficult to argue with editor for the business insider joe weisenthal thank you very much thank you. well that's the ads and i'm told time winner is supposed to be helping democrats not standing up for out of control for profit colleges more on that in just a moment and will fall like the growing chummy relationship between higher education and big business.