these huge debt outliers. well i think i think what's happening in the treasury market is something that may not be directly related to two maladaptation it's rather a response by investors to to changes in the marketplace so as your guest jim graham brought up last week there is a bubble in safe haven assets and i endorse that point of view so you have negative yields on five year swiss bonds negative yields on danish that and invisible yields on german u.s. and so on so that's a response by investors to a very real. disease that's caught in the global financial markets in which there is so much manipulation so much so much. fraud so much uncertainty even as to as to whether your brokerage account is going to be there tomorrow yeah that a lot of investors are making what i consider

a rational choice in in putting their money somewhere where they at least will get it back right the worry about return of capital not return on capital how does price fixing eric and the rigging of markets by the fed and other monetary authorities in the west fit in here with the maladaptation and the album is becoming too big. well it's it's a late stage phenomenon it feels to me in the western world where if we look at europe and the us exclusively. these are these were the powers that emerged in the second world war and there they emerged and strengthened throughout the ensuing decades because they were relatively free market societies and the us has been a free market society for a long time. so as those economies have progressed they have become. alas

a free market oriented to the extent that the zero eight crisis opens the door to government manipulation on a monumental scale so instead of doing what a healthy organism would do which is to say ok i got up i took a trauma blower i got sick i'm going to just heal instead of keeping dosing ourselves the governments have been involved in in sending bailouts to every possible place they could send a bail out running up that's the process they have been manipulating almost every single credit market whether it's sovereign debt whether it's the debt financial institutions whether it is. mortgage debt now student loan debt and the list goes on and on and on let is the best actually yeah in my real world investors is in k. go ahead is incapable of determining ok what's a real price what's

a real value what's a real anything and not knowing they they choose not participate right and i want to bring up we have an endangered species list of the endangered species of free market prices so eric i guess my question for you is what's not on what is priced accurately anything. well as i wrote about a week ago when you want to comes to live war which is the basis of trillions of dollars of loans and securities some have even estimated as high as five hundred trillion which is a number that's so high it's hard to even believe once you start messing around with live war. it is a kin to two moving magnetic north or moving a g.p.s. system you literally don't know where you're going to land or what direction you're

heading. so. it's something not rigged ok you could say you could say home prices it isn't rigged maybe but then but then the investment value of a home relates directly back to interest rates and interest rates relate directly back to the fed funds which is manipulating by the federal reserve and to live well which is that a reserve perhaps and by traders for certain so all asset values somehow fluctuate around these interest rates of of of dubious value right and so you're saying people are saying ok well i want to take my hands off the steering wheel i don't want to drive this car this is too scary i don't know where i'm going there are no free market price set goals so in this environment i know i read you said fear isn't meaningful insight i guess i want to know if you think there's a proper response. well i think piers meaningful insight with respect to the financial

markets broadly. so. i mean that you know again jim brown was on your show talking about growing walnuts. it almost gets the point where you have to go you have to go so low tech and so extreme in some ways in order to find markets that are relatively untouched so. a walnut tree would be an example but beyond that there are agricultural markets that are still relatively untouched there are a number of real estate markets that are on touched there are private partnerships that that devote themselves to facets of the of the credit markets that are relatively untouched. and by those pasts i mean there are there are mortgage backed securities that are offering high yields those had been manipulated and had been. influenced by the by both traders and by central banks but at the moment less so so there are little pockets of opportunity where investors can.

can look for a non manipulated financial asset and hope for something better than one point three percent from a ten year treasury bond better than nothing and along with the congress hears all about by the way then what it is is that is the question and i think it is what the quest for what. now i'm saying that's what this congress is about is about trying to find of the sort of alternative. that's the fair sets that have a chance of providing a return. away from the middle ation of western governments and agencies isn't that crazy that that's that that's what it's come to trying to figure out where these pockets are that are manipulated that actually are fair and are subject to the free market and we're looking at walnut trees and farms and other things like that before we go i want to talk about in this atmosphere of fear there are

some responses that kick in when you're afraid there's a fight and there's light and in europe i thought it was interesting because you've been talking about the difference between both of these spectrums in regards to one country and one investment you have german bund yields which are at record lows but yet you showed that it's more expensive or was it a point to insure against german defaults it was more expensive to do that than to insure against a fault of instruments that were rated much lower you compared it to viacom so these are two really different stories but they're both revolving around the same country the same bond market so how are you supposed to know what to do there or what does this tell us even that there's these different fight well light scenarios yeah that's. right without without being too arcane german bond yields are very very low just like treasuries but the price of insuring german is very very high higher than the debt of lowly rated u.s. corporates so that's a that's that anomaly

a conundrum and does it mean something yeah it means the financial markets are crazy it means it's very difficult to to figure out how to how to position yourself it in a safe way. so. you know i don't want to say there's nothing to do here there are things to do but there at the margin and at the core of things that used to be safe i think you have great respect that are perceived to be written safe are actually in fact risky and the solution is relatively simple the solution is to is to allow free markets to operate freely but at the moment the powers that be in europe and the us have zero desire to do right they all right are to step in and ted and yet be a late absolutely that's the case eric fry i'm so sorry i have to interrupt and cut you off but i really appreciate you being on the show i guess big and learns what

you have heard about him are true thanks so much eric cry at a tour of the daily reckoning. and still ahead a record high yield on spanish bonds the i.m.f. may be wanting to dump the euro following a ban on short selling in spain and italy and those are just the headlines you've probably seen widely reported coming out of europe coming up after the break mike shut lockable tell us the alarming news you haven't heard but first your closing market numbers.

of american power continue. things are so bad that might actually be time revolution. and a true dog in a cooler drink at starbucks says a surprising ingredient lol. all

right where do i begin with europe today there are just there's been an onslaught of headlines all bad pretty much that i've seen coming out of europe indicating that the sustainable solution or at least the pretending that there was a sustainable solution has once again run out as we knew would happen we see spanish field spiking we see the i.m.f. saying hey maybe we want out a greece is in is you europeans have your other funds all set up and ready to go and those are just a few of the headlines but what about the ones that you haven't seen widely reported might shed lock has been diving into those he's investment advisor for

sick of pacific capital and he is going to tell us all of this really good dirt that you need to know that that somehow is escaped the headlines because probably there's just so many already thanks so much mike said locke mishra being on the show today oh pleasure to be back on the show lauren are you doing really well it's nice to see you you look very happy given how much bad news is coming out of europe but maybe that's because you've largely been right about europe all along and here are some indications that are kind of on the periphery but are really interesting that you're writing about michelle i haven't heard about black monday in italy but you haven't you're talking about messages on facebook and twitter that have gone viral so what is black monday and why is this significant in your view. black monday it was really just a reference to the markets they were they were europe got hammered spain was at one point don't five percent actually recovered to be finished only down a percent or percent now or something but in italy.

for office you know. you know

we're going to kick out all these politicians and his own personal viewpoint is we need to get off. of the euro and default on it you know that's pretty big news and and you don't hear what i'm going to lauren that is pretty big news i feel like there is a sense that for whatever reason i haven't really just heard about italy it's kind of been not i guess the problem child to do your the way that maybe spain has been recently but another thing you point out about italy is ten cities major cities that are on the verge of collapse so what is really at stake here does that mean more pressure for the federal government does that mean that despite the efforts to prop up italy it's still crumbling from with then what do you what do you take from that ten cities including on the lawn of naples ten big cities ten major cities actually a whole slew of smaller ones they claim have already gone in the dust and they're

talking about defaulting on their debt meanwhile the state the federal government of italy is demanding more taxes more austerity measures more firings. so you know where does it end i think it's going to end in protests in the streets and winced when spain or the protests last week i said italy's next i think we're going to see it and that's what they were tweeting about today saying you know we're going to organize some protests here it's going to spill over into italy right now look at it greece is blowing up spain italy is blowing up all at once the nineteenth euro summit has already broke down on the twentieth break that's how the world are going to they're going to declare another summit but what can they do what's it going to do yeah i mean there doesn't seem like a lot that they can do i'm with you there but i'm curious what you think is the relevance

of protests in the streets of italy because we've. seen them all over europe and i hate to sound like a callous person but it doesn't seem like any amount of protests i've seen in the street there have translated into any kind of pressure for politicians they still pass austerity they still do what the international lenders want at the end of the day so what difference would it make will it actually made a difference in groups and you know. the radical left wing from one part of her six percent to real close to winning the election i'm waiting for the time to learn some politicians going to stand up in front of voters and say. here's your own truth. golden boy we're going to default on the euro that person someone is going to come along and say that war and that person is going to get elected. there is a prediction there i want to prediction from you on this because you mentioned the spanish yields and a key spanish or yield going above seven percent to seven point five percent but

we've seen this before we've seen spain get to this dangerous seven percent yield price i'm curious at what point is there the turning point where spain can no longer borrow from the markets and where spain does need a bailout. it's there right now it's going to happen i believe the consensus opinion right now is that that is exactly what's going to happen bear in mind that germany flirted with excuse me greece. with. seven and a half percent yeah measures they got the greece flirted with seven and a half percent for a while they came and the president of the e.c.b. john kotter say at the time you know how many victory parties celebrations do they have overgrazed before greece finally imploded and we've seen a number of these same celebrations here over in spain and

denials that were denying today you know we've had so many to die on how many of denials do you have to before the country really implodes and i think we're there i i think it's spain is on the verge of a huge breakdown here i think italy's going to follow and there's not enough money in the or the self to bail them all out so what are they going to do we're at a crisis moment here i expect they're going to announce another summit probably this week and will say what are they going to come up with is there is another rabbit left in the hat i don't think so i've said that before but i'll say it again dead at some point the hat runs out of the rabbits well it seems like it's getting close to that key rabbit moment where there are no more little bunnies left to pull out but you say there's not enough money to bail out spain and italy but is there even enough money to bail out spain because arguably isn't there not enough money. no there isn't i don't see i mean they're talking a. billion euros for what's really going to be i think it's probably going to be

closer to three hundred four hundred maybe more and if this is that we're talking about a situation we're talking about a bit of this is things not even funded it's not even passed muster in the constitutional court of germany i don't know how they're going to rule but then the ruling is coming up on september twelfth or thirteenth something like so and already they're adding to what they want to use him to do well it's not even ratified in germany because situational courts not agreed to oh thanks so much that was my head like investment advisor for thyca pacific capital and that is all we have time for that's our show today thank you so much for watching and make sure to come back tomorrow and in the meantime you can always follow me on twitter and you can give us feedback on you tube dot com slash capital account or catch any shows you missed missed on hulu at hulu dot com slash capital dash account from everyone

here thanks for watching and have a great night. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom hard workers a big picture. stop

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we will not spend the next four years blaming others we will take responsibility we will not try to replace our founding principles we will apply our founding principles. are if the speaker is get down to business planning president obama as an unfit leader and pushing party platforms but while republicans bask in the pomp and circumstance misinformation and watered down speeches dominated last night's rally i'll tell you how we marched return to our best traditions of american leadership and support those who faced down the brutal tyranny of their oppressors . and did you hear that between the punch lines and rounds of applause for john mccain at congolese arrays are pushing for a decisive action in syria as the u.s.

one step closer to intervention well question more. and it's been over a month since julian assad was granted asylum in ecuador but he's no closer to the freedom that he craves back in the u.s. bradley manning's defense team revealed more details about his harsh treatment and update on both cases ahead. it's thursday august thirtieth five pm here in washington d.c. i'm liz wahl and you're watching r.t. but it is the final day of the republican national convention the day has come for republican presidential nominee mitt romney to tell america why he should be the next commander in chief they thing up leading up to today a series of speeches and events that have showcased a vision and controversy within the republican party one of the clearest examples tension between ron paul supporters and the establishment republicans talk more

about this with our tea white house correspondent christine for joined us earlier from the republican national convention in tampa an interesting dynamic going on yesterday we saw those ron paul supporters the delegates from maine once again walk out of the convention hall in unison taking up a whole lot of room i should mention they waited for the ron paul tribute video to play they waited for rand paul's speech and then they were gone they seem to to really be angry at the way everything has really gone down here without even letting them have their voices heard christine you know ron paul he declined a slot to speak at the republican national convention but as you as you mentioned they did play this courtesy tribute video to him at the event here's a look at it for those with getting.

some times that. we were. all right christina how are ron paul supporters reacting to that video. frankly the mixed reactions live we've heard responses range from inspiring to offensive a whole lot of people that are here in support of ron paul both convention goers as well as delegates of course happy that they had a video at all but let me put this in a little perspective you said ron paul declined a speaking slot ron paul declined a speaking sign because a he would have had a fully endorsed mitt romney which he says he doesn't be he would have had to have his speech heavily vetted both by the our instinct and the romney campaign to prove those are the conditions under which he denied a speaking slot here back to this video live less than four minutes it talked about

the fact that ron paul has never voted for a tax increase that ron paul has never voted to expand the debt ceiling the story the lives really in what wasn't said in this video ron paul has asked for an audit of the federal reserve and reserve and in fact the republican platform committee has adopted that as part of this year's platform so he was happy about that no mention whatsoever of his position on the military he has also called for an audit of the pentagon when ron paul says he wants mauler government and much much less government spending he means it across the board not just from these so-called entitlement programs he wants it from the place where the majority of the money actually is spent and that is the military so a lot of people who support ron paul by the way as we've reported time and time again a lot of support from military veterans military veterans in poll after poll have been shown to support ron paul about any other candidate who was present in this primary race leading up to the convention here this is an important issue and to

have it not mention whatsoever with pretty offensive and frankly and i'll use their words were full of some of these supporters who i spoke to another side note was it's really interesting you know as you know as our viewers know we have covered ron paul conservative. for the last four years or so it has been interesting being here as a member of archie america people coming up to me recognizing me telling me you know we watch our team because of your coverage and it's been really interesting i think a whole lot of the other networks a lot of the other mainstream media and the establishment political parties here in this country very surprised to see what has happened with these ron paul delegates and what has happened overall with his inability to come out of this convention with the support and unity behind mitt romney that a lot of people here expected and christine you know there is this hope within the libertarian movement that rand paul will carry the torch of his father ron paul but

based on last night's speech rand paul's speech afy r. and c. does it appear that he's doing that. well a live that was a really really interesting as i mentioned a lot of the delegates in support of ron paul a lot of people here expected a dynamite speech expected a speech that was sort of set the stage for ron paul run in twenty sixteen over the weekend at the rally he gave a very different speech in support of his father in last night's speech he didn't even mention his father by name he simply talked about on his immigrant grandfather who came to this country and had a son who has became a texas congressman and ran for president that line met with a whole lot of applause from the audience here but really really toned down and that's one thing i want to focus on i mean rand paul talked about obamacare how he thinks it's unconstitutional he's on to about immigrant families that he knows you know a cambodian family who owns a donut shop and his neighbor.