you're watching r t live from moscow to have binds egypt's ousted president hosni mubarak they're starting a life sentence for his part in the killing of hundreds of protesters last year but there's been a mixed anger reaction to the sentence outside corner. president putin calls for more time to that kofi annan peace plan take effect in syria resisting blaming one side in the conflict concerns over nato its missile shield in money matters also came into focus as russia's leader visited berlin and paris. and speaking your mind on r t could cost you your job in mafia and stonie several people and

companies have landed on the blacklist after calling for equal rights for ethnic russians including r t and the foreign minister sergei lavrov. takes a crook it takes on i should say crooked elections crooked markets and crooked numbers in capital account. welcome to capital account i'm lauren lyster here in washington d.c. here are your headlines for friday june first two thousand and twelve u.s. jobs numbers out today for may miss expectations by zero why so we received yet again a piece of data showing the economy is weaker than expected naturally this along

with other bad news including over a vision of the u.s. g.d.p. downward which we got yesterday as policymakers and some in the media yet again talking about doing more monetary stimulus more q we yet central bankers have been banging around of bumper cars with their stimulus attempts it's not getting out we'll talk about why then the push is to keep trying and europe irish voters reportedly strongly backed the e.u. is fiscal treaty and german to your von yields turned negative for the first time investors are literally paying germany to hold their money now these are risk averse moves but in this era where the conversation about the economy and markets so quickly shifts to policy and those who make it let alone the implications of it are we looking at an era where you have to take into account political risk on risk off little like this. march right around

works. works. risk on risk off political implications we'll talk to lou rockwell about it and look who is going after the bankers yet again you see him behind me there they are capital account zone dimitri cobain as our t.v. host max kaiser and new ideas trends forecaster gerald solenn day we'll show you how it ends let's get to today's capital again. welcome to june it's june first dan what did we see already the dow has wiped out

its gains for the year european stock markets meanwhile have been on a steady decline since mid march of this year let's take a look at them markets in greece look at that where we have the threat of a grex it and spain where of course we talked about yesterday the possibility of a spat is it and italy which hey there maybe not be a little lex it yet but it is definitely still an issue so all of those markets already having broken through their two thousand and nine lows and french markets are very close to breaking new ground as well so meanwhile the latest slew of data not just in the u.s. but around the world is pointing to this in the words of mohamed el area and of pimco. we seem to be in a synchronized slowdown the message that should go out to politicians around the world is get your act together because you're losing control of the situation. now let's step back and this is particularly alarming because the global economy has

been on life support with central banks the world over the ring everything plus the kitchen sink at financial markets with negative real interest rates with quantitative easing with fiscal stimulus what exactly is left for them to do buy stocks i mean c'mon now contrary to popular belief we believe the bailouts of two thousand and eight were less about the money spent by governments and more about their confidence inspired by the notion that governments and central banks could through their open market operations and helicopter money drops prevent or even reverse the economic contraction that was then well underway now that confidence seems to be eroding at an alarming rate the markets have already left the equities party hey no party there today look they're looking for safety in german bunds and u.s. treasuries and gold while borrowing costs for countries like italy and spain have already pushed their respective governments to the point of effective insolvency

forcing the e.c.b. these monetization engines to work over time in the past through the securities markets program for example but this hasn't perturbed our global policy elite with their collective atlas complex from going back to the monetary wishing well for more of the same medicine that has been poisoning the patient since the onset of the crisis and while before that to now when will they learn though that no amount of talk or action on the part of a narrow group of bankers and politicians can solve the problems of too much debt and malinvestment well it is a great question to pose to our next guest is here he is chairman of the ludwig von mises institute also author of the left the right and escape and lou it's always such a pleasure to welcome you to the show thanks for being on capital account today thank you are absolutely so let's start with the jobs numbers because they are. huge disappointment but this seems to be the pattern where we have as tim it's made by

economists and analysts for what these numbers will be and then even though there are massage a little begin with they still don't meet estimates but it's not a surprise to us the jobs situation has really been a disaster since the financial crisis and even before that they were inflated the jobs market by the fed during the credit boom so stepping back though this is a political election year and we see romney using this to hammer obama but at the same time what plan does romney have or obama have that is going to put a net of this disaster. well there we can think of them as ron bamma i mean they really are pretty much the same they're both connected to the big banks that both represent the big banks maybe like every western government and a lot of asian governments as well and he really doesn't have a solution any more than obama's got a solution and certainly they do the idea that they're going to put print more money you know that work zimbabwe would be a very prosperous place that it's going to make us all much for it's increasing the

depths of this entire global recession maybe they're going to put us into the first global depression since the one nine hundred thirty s. the jobs numbers are phony every government statistic is phony i mean they you know during the clinton administration they defined out of existence so-called discouraged workers workers who aren't because they haven't been able to find a job or not actively looking for a job anymore so they say they're not unemployable of course they're still unemployed the actual employment figures john williams of shadowstats shows is of well over twenty percent which again harks back to the one nine hundred thirty s. so this is a very serious situation a lot of these jobs are by the way sort of parasitic jobs they're anti jobs they're government jobs or they're created with government stimulus projects so they actually subtract from the economy they don't add to the economy so the g.d.p. figures are phony too because when the government gets bigger the g.d.p. grows well not only is that not economically healthy it's

a tremendous detriment economically all we can ever look at is the is the these if we're going to use these figures at all and none of them have are entirely satisfactory but if we're going to use these kinds of figures we have to subtract the government from the size of the economy then we see what's happening the economy is shrinking this is happening in europe it's happening all over the world it's because of this bank caucus the central banking stranglehold that these people have got over europe over the united states over japan over many other countries and it's just horrific and they're making us poorer and as you point out they're scaring everybody into a. more of the soon it's a great point i want to get into a few of the things that you mentioned for one let's talk about the u.s. for a second i want to give you a hypothetical lou rockwell if you were advising mitt romney which i know you wouldn't be but if you were what would you be telling him to do to fix the economy because we know that he's the one that champions himself as mr fix-it mr private sector free market. well if i were talking to him i would say it's you know it's

very simple you need to diminish the saws and reach of the federal government government all saw at all levels as extremely haroun the us but the federal government especially with what the fed is doing the treasury is doing the regulations that are going on so you just need less spending less money printing less regulation wasn't you know romney could go spend six months in the bahamas that would help get them all out of washington the problem is the government so you got to shrink the government romney of course wants to increase the size of the government do things u.s. military spending is too small we need more aggressive ships more aggressive planes more wars all over the world which of course are economic disasters war except for those of course the military industrial complex those of our world but society as a whole is dramatically hurt by war and of course there are all the corpses as well so romney has got exactly the wrong approach he's

a big government guy he's just like obama so they have some of their special interests are a little bit different but otherwise they really are just guys with different colored suits it's a great point and to your point about cutting government spending that would cause g.d.p. to go down but as you point out all growth is not good growth completely contrary to that let's move on to europe because that's where a lot of the big headlines have been coming out today and every day it seems as i mentioned in my introduction equity markets there have been pummeled borrowing costs for peripheral countries are indebted countries that spain included have really been rising at the same time we still see the same question that comes as a result of this data what can policymakers do what should policymakers do what should central bankers do lou rockwell when their actions have a seems to do much that has been positive to affect the situation why is this the same question that people still arrive to. because they're doing the exact opposite

of what they ought to be doing and same sense things as they now did state by the way a good thing the borrowing costs are rising there's too much government debt too much private debt too but i mean it's vastly. just the mountain isn't quite the word for the amount of government debt in a country like spain so it's a very good thing that the borrowing costs are going up diminish the borrowing i'd actually like to see them reputed the government i think that this this debt i don't think it ever be repaid except of course putting the boot on the throat of every single taxpayer and crushing them into the ground not to go there morally economically and then the other way the governments of europe and for that matter the united states should repudiate the debt that is the only way that they can be a fresh start just don't pay the debt means of course they can't borrow for a long time that's also a very good thing so get rid of the debt i mean that's the only solution for europe otherwise and for them for that matter the united states japan and so forth

otherwise the as we've seen in japan and other countries just a continual gradual sinking into the ground of all economic growth economic prosperity everybody getting poorer sets of course the people connected to the government the big you know goldman sachs is doing great j.p. morgan chase you know and so forth they're all they're all happy but the rest of us are getting are going to hurt so everything needs to be turned on its head they need to be doing the exact opposite of what they're doing here and in europe and everywhere course this is this is not going to happen until they're actually forced into it because they can actually continue this because then you get the hyper inflation or you get price and wage controls both of which are you know on top of the hyper inflation which is you know the way to end civilization so they're actually going to be forced into stopping this but the cost of their going to continue it as long as they can some people are getting very rich off of it other people getting more powerful but again they have to do the exact opposite of loads

. and on their heads they have to do the exact opposite of what they're doing in every way physically economically in terms of their public policy and you have to wonder at what point there's ever going to be the question raised by any kind of policy elites about when debt becomes odious debt because death for goodness isn't even part of the discussion which is just beyond me now one question for you do you think recent prize that irish voters voted to approve the use fiscal treaty and to essentially have more control over their national budgets and deficits and debts given all of the problems with central planning yes or no first of all i'm going to assume that this was an honest election and i don't want to shock anybody listening but some elections are crooked so but i'll soon for a moment this was an honest election as you pointed out they were scared into it there was this you know truth campaign of fear and people felt. they didn't know any better they felt that this was a less bad solution than getting out of the you and letting the big banks go down

it's not it's not the west best solution when the government always uses feared try to induce you to do things except more curtailments of civil liberties all the stuff in the airports we create a police state created to tell a tear in government which they're moving to in the united states people accept it because they're scared of you know legit terrorists in yemen so people do stupid things when they're when they're scared. the ancient greeks talked about this this is hardly a new a new policy so the people of our own and if the election was honest we're scared into this more more shame on the government in the financial elites and the media all the people who treat these people and iraq only when we get back i want to talk more about what you said about the less bad option and what that is causing people to do in europe also what some of these options that leaders think in the u.s. are going to help the jobs market have in fact done that. when we get back we'll

have more with lou rockwell author and chairman of the ludwig von mises institute still ahead you responded now i'll answer and you can check out of your comment caught my eye in this week's viewer feedback you'll also see a little cameo from some of your favorite alternative financial guys but first your closing market numbers. technology innovation all the developments around. the future are hard.

welcome back let's talk about risk on risk off because what we think is interesting is financial markets since two thousand and eight have been trading on this basis of risk on risk off now it seems a europe that there is a political risk on risk off the dynamic where perhaps voters are casting their ballots based on how much political risk they're willing to stomach because in greece for example a eurozone exit also has foreign policy ramifications of these of the turkey so we have to remember this isn't just an economic situation these countries are in so let's bring back lou rockwell to the conversation and see what he thinks about our political risk on risk off analysis lou rubble do you think that it's possible that political fears have driven some of the decisions of voters in the euro zone and perhaps been the catalyst that has allowed closer european integration. sure and so it's all deliberate of course that this feared. process is exactly deliberate it's

what they've been working on for for decades and they want to this is the way they're backing into a united states of europe this is the open plan for the open conspiracy i guess i should say the elites of europe to use the financial integration i don't think they intended it to go quite as badly as it has but governments are always able to use the disasters that generate as a reason for more power so because the current. situation has resulted in all these troubles then they argue well we've got to have a closer more you've got to have brussels having even more power over all the peoples of europe and every every business and every family and every home so this is the way they're successful in doing this we'll have to look at what happened in the u.s. after nine eleven zero one the disastrous failure of the u.s. military they use that as a reason to have a bigger military that's against the government the only institution where this

ever works private institutions fail nobody is able to argue give them more money and more power as a way to prevent trouble in the future and so do you think just to follow up quickly when we see some voters in the periphery giving support to brussels over their own politicians do you think perhaps it's because they're competent a rock and a hard place and maybe the devil you don't know when brussels is better than the devil you do you know in your own country domestically where you feel like your politicians are crap. well they've been terrified and they're all been led to believe that you know if they are going to step off the precipice the rather than the end of the you know the end of the year of being a very good thing it's going to bring on darkness an old night and the destruction of their families and their and their children's futures so that's you know fear works terrible thing it's very unfortunate it doesn't work for politicians really quickly really quickly before we go speaking of politicians what ones in the united states have done to spur job growth one of those programs that i thought was interesting that the wall street journal reporting on was obama's up funding or the

obama administration's plans to have a electric car battery industry and they funneled more than a billion dollars into it and what do you know as a little bit later these factories are not up to capacity they haven't produced the jobs what was the problem well they were given grants based on their production timetables and not market demands do you think that this is representative of what happens when the government picks one or then later also sure it's highly corrupt to there was you know there's hundreds of millions of dollars that went to very shady operators in the process of this and so it's you know it's the normal crooked thing from the government but again what do politicians know what to bureaucrats know about can't you know they can't tie their shoes i mean look at anything the government runs it was the post office or a military base or you know any government operation it's laughably an official it's just a joke the idea that these people who operate by the gun at the head by the way this is their one tool put

a gun to people's head and say do this why don't we have the mafia be making these choices affect the mafia would do a much better job. of a lake assessment i appreciate you being on the show so much thanks lou rockwell for all of your insight your he's author and chairman of the ludwig von mises institute. all right it's friday time for of your feedback and this is some exciting news a few weeks ago our viewer told us he thought one of our guests trends forecaster gerald celente reminded him of john walsh of america's most wanted but going after criminal bankers instead of just criminals so we made the following suggestion take a look. maybe we will see a gerald celente john as john walsh going after the bankers we like the idea

just a suggestion we're not talented enough to do that ourselves so just throwing it out there what do you know look at the latest video from you tube user origin anarky who made that great video you saw there take a look at that ok so we have ben bernanke and a couple others and dimitri kofi anan is our own producer max kaiser and who is in the back seat with a shotgun gerald solenn day take a look they are calling for a crew of men they step on the gas and there goes the ups paul krugman is in the economist so that's on pirate my film dot com you should go check out the whole thing because it continues after that and we're very happy that seemingly this creative video creator did listen to our advice maybe not who knows and you know i just want to throw it out there that girls can go after criminal bankers to just say in. but that's where all leave it let's move on we talked about mortgage

fraud and add a woman on the show this week who was fired from the cvo for trying to blow the whistle on it a few years back now in response to that m. four rifle guy said ok i watch lauren to learn as i'm not very versed in economics i've heard the term robo signing a lot but i'm not sure what it really is is it a loan that was not looked over by a person and just pushed through an ok computer think so to answer the question just to clear it up so robo signing was the bank practice of approving foreclosures without verifying mortgage information and also sometimes looped into this discussion is the fabrication of other loan documents so in some cases with robo signing you had temporary workers with no understanding of the work they were doing just signing off one after another on foreclosure documents so this scandal led to thousands of foreclosures being halted in a number of states when it became known that the paperwork was illegitimate because the signers hadn't actually reviewed it and didn't even really have the

qualifications to do so and according to dr pham if you go back and listen to this interview it's very interesting she believes that out of murders this mortgage database was born the prevalence of robo signing and the false a vacation of mortgage documents because banks didn't have the paperwork for these homes they were foreclosing on so in other words fraud became necessary it's very interesting go watch it and now that you know robo signing is now yankee clip. w.t.f. she's talking about the land fam interview she's a what professor teaching graduate students out what university teaching graduate students in the graduate program the use of economics to examine policy working what term a dozen years ago come on now lauren all right. come on now yourself ok she taught at university of minnesota which is says right there on the screen on her bio during the interview she was also a consultant as you see there and the rest of her bullet points and if you really

want to know i believe she has a pricewaterhouse coopers if you're looking for more specifics but come on now yankee clip you can read we have it on the screen pay attention all right moving on earlier today we saw gold rally more than three percent close to four percent really reportedly its biggest one day rise in more than two years and earlier this week we had john butler author and veteran of global finance on talking about why gold is insurance and not a productive asset the way that warren buffett criticizes it for not being that it's not supposed to be twenty four said butler really and quite effortlessly made that all digestible for those of us like myself who are trying to gain understanding in fact that was the best counter to buffett's claim to gold i've heard from anyone great find as far as guests go so if you missed it watch it now now in that episode the kind of the issue of a return to some kind of gold standard came up as it often does now lewis one two three four six said that's just stupid gold standard will never work how can we go

to war without with gold backed currency if we could go to war that sounds great to me and then to wars that simple let's move on no i'm just kidding i assume you're being sarcastic saying that governments wouldn't go back to a gold standard because that would not afford them the kind of flexibility over the supply of money that would allow them to easily fund expensive wars which is an advantage that the us has exploited time and time again with its global reserve currency status and that's a good point it's one reason why i guess like chris whalen tell me they think sound money could not be possible in a democracy like those in the us or europe because politicians will always be pressure to produce economic growth and with that they're going to want to have the flexibility. of a debt based money system and resist hard money at every turn but there are those who disagree and have practical plans they lay out for how a gold standard could work so stay tuned because to because i'm sure we'll keep

talking about it now serban mike ended with a rallying cry he said we all know some of our government and some of our institutions are up to no good for the people we can talk about the wrong so twenty three hundred eighty and beyond that my question is what are we going to do about it talk is cheap you may have this job so you retire talking about me the wrongs will not be less but they will multiply if we the people don't do nothing anyway. well i think it's incredibly important to educate and expose the wrongs that we're talking about so if they will keep the job otherwise how will people be inspired to do anything of they don't know what's going on but it's a good point that obviously is a very important part of this equation so unlike politicians and policymakers who we often ask if maybe they should be trying to do less do nothing in the case of people getting active in opposition to injustice do as much as you can so thanks for writing us that and with that that's all we have time for thanks so much for

watching our show today and be sure to come back next week now in the meantime you can follow me on twitter at lauren lyster you can give us feedback on the show or catch any you missed at youtube dot com slash capital account plus you can catch our show now in h.d. on hulu at hulu dot com slash capital dash account and until monday we're back with a fresh set of shows thank you so much for watching and have a great night.