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 at risk becoming too big. well it's it's a late stage phenomenon and 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 i took a trauma blow or i got sick i'm going to just heal instead of keeping dosing ourselves the governments have been involved in it 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 like is the question actually yeah 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 and 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 manipulating the 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 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 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 is that is the question i think 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 new coalition 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 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 flight 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 show 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 that is very very high higher than the debt of lowly rated u.s. corporates so that's a that's sort of normally 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 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 risk things 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 try to be all right are to step in and ted and yet be allayed absolutely that's the case eric cry i'm so sorry i have to interrupt and cut you off but i really appreciate you being on the show i guess that big and learns what you've heard about aren't true oh thanks so much

eric cry at it are 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 falling 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 lot will tell us the alarming news you haven't heard the first your closing market numbers. those stores are here. for going global that's no. longer you.

choose your please take your stuff. the stuff that. makes your statement. the more. you point the street. if you. stop and look at the current of it unemployment the national debt. ceiling governments ask yourself does it really matter who wins with billions created you can gamble with your money or turn it into solid gold.

request the gold and silver investors a guy. call today eight hundred two five seven gold. 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. 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 of greece's sin 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 escape 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 how are you doing really well it's nice to see you you look very happy given how much bad news is coming out of your ass 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 today spain was a at one point down five percent actually recovered to be finished only down a percent or percent after something but in italy we're going to have good contacts

all over europe and they send me these links and they might be in german or they might be an italian or they might be and spanish i get links from a guy name brand almost every day from spain but today i go one from italy and it was from a website there was an italian website there was talking about messages going viral felt there on twitter and on facebook and it's panic and one person said on twitter anough of this agony this please give us back the euro so the that's what social media is saying in europe it's actually not very pretty if you follow that through that's interesting how do you weigh the anecdotal evidence on social media i guess the twitter indicator if you will against their bits of news and information that you have coming in. well actually you will just look at

you i mean there were absolutely soaring across the board today almost one hundred basis points that's one full percentage point from five and a half percent to six and a half percent in spain today on the to your treasury the ten year treasury had seven and a half percent uncharted territory what was it learned three weeks ago rejoice the prime minister of spain was saying crisis all of that lasted what three weeks now we're seeing it in italy and the mood is really gotten you know pretty extreme there they're blaming president obama they're going i a mouse they're blaming the builder burger they're blaming everyone and we're seeing the rise of the five star movement and i'm really stunned about this one because i don't understand why this is not made front page news in the wall street journal yet but i think it will best be groucho who is a politician there and anti politician almost running for office in

italy and he's running on a platform there that says 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 in and you don't hear a lot about it laura that is pretty big news i feel like there is a sense that for whatever reason i haven't really just heard about italy much it's kind of been not i guess the problem child to does 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 naples ten big cities ten major so. it is actually a whole slew of small ruins they claim have already gone bit 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 is blowing up italy's blowing up all at once and the nineteenth euro summit has already broke down on the twenty eighth break in the world are going to they're going to declare another summit but what can they do what's 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. well i actually made a difference in groups and you know. the radical left wing from one party or six percent to real close to winning the election i'm waiting for the time to learn some politicians are 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 somehow is going to come along and say that warren 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 a major mistake that greece flirted with that 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 your civil denials do you have to add 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 to bail them all out so one of they're 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 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 hundred 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 we're talking about a situation we're talking about a video of this thing is not even funded it's not even passed muster in the constitutional court of germany i don't know how they're going to roll up their rulings coming up september twelfth or thirteenth something like birth so and already they're adding to what they want to use him to do well it's not even get rid of fide in germany because the juvenile courts not agreed to it thanks so much that was mike said 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. dreaming of a luxury used to see roundtrip with the open air entertainment. a little bit of that just signs to get in better shape. and. with only healthy ingredients. in this case something to remind our summer sales on our cheap. if.

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the led mission and free accreditation free transport charges free arrangements free. free studio time free. download free broadcast quality video for your media projects a free media dog r.t. dot com. playing football in the scorching july sun of the iberian peninsula is senseless torture for some of these men others see it as a simple warm up before more difficult contest on dry land they see their rivals face to face but i see. nothing more than a blip on a radar screen a. wind and waves are the only tangible evidence of their

determination to win. the crew of the russian three must sailing ship mir has little time to prepare ahead of the second phase of the two thousand and twelve toll ships race nevertheless they find five minutes for a brief meeting ceremony. i would like to congratulate you today as we begin our voyage out to sea i hope we'll have a good start this time too i urge you all to do your best like it was. the crew success is a matter of honor for the captain and instructor of mir he will soon be celebrating his seventy fifth birthday and has devoted a third of his life to the world's fastest sailing boat victory would be the perfect gift that the crew will need to give it their all the first phase of the

two thousand and twelve tall ships race ended with a discouraging result from ear. of the killer actually we were the first to come in after the first lap but after time update we turned out to be third in our class of ships jersey and frederic chopin polish sailboats where head of us our sister ship from poland will be our main rival both ships have similar designs and sails according to the time correction will last about thirty minutes during the first phase i think a gain of thirty to ninety minutes will be enough for us to win can you give a long blast kept. it. long one by. by noon more than thirty sailboats have left the port of lisbon the second part of the race is short little more than two hundred nautical miles made. will need to make up for the time she lost in the first place before she reaches the spanish

port of kids is the crew unfurls mia sails all three thousand square metres all. over all of the boats in this prestigious class of ships mere has the greatest claim to victory her rivals pale in comparison to the number of wins she has racked up over the years she also boasts a skilful crew. strictly speaking these races are a side project for me the russian ship is primarily for training purposes cadets of them a car of academy a would be captains of the russian merchant fleet and they learn how to set sail climb the rigging in time the me nots golden age of nuclear vessels such skills seem as useful as speaking latin. your best out there and where you. will get your any seaman must have practiced as well as theory besides they need to

have certain character traits epaulets as well as sailors are sent to other sail boats because these people need to make the right decision in the nick of time the sail boat offers the best schooling and character training. day pharrell of canada knows what the person of his mainsail wants him to do their commands and not translated into english after spending several months on may he's used to the routine and what's expected of him indeed sometimes he copes with his assignments better than his russian comrades this is not my first time on this type of vessel and still aboard a vessel called to take the castle on the around the world voyage and doing this made me realize i want to stay on top of for a living and so i went to school to be a navigator and this was in our one of the opportunities where i worked or was to come on the shuttle. there are about twenty trainees like dave on the ship like the

sailors they keep watch and they also share courses with the crew there's only one thing that sets them apart they have to pay for the privilege is a floating democracy even the old superstition about women on board being a bad omen is ignored right you know twenty young female cadets some trainees are taking part in the race. my name's lee and i from hamburg germany and yeah this is my second time on the air i would say the big guys help us but we try to do our best like calling the ropes and so on it's not difficult but it hard they like it that we are right now in fighting the position in the atlantic ocean on route events and that's applauded every half an hour i feel great about it we all work together as a team and we help each other through it also makes it ok. the

portuguese pilot steering mir leaves the bay at two pm there is less than an hour to go before the race starts to motorbikes form a starting line none of the participants in the race is allowed to cross it until a certain moment the most difficult task is to make a careful assessment of the ship's speed and direction so that she enters the start corrido exactly on time it takes some complicated arithmetic to add up speeds and subtract minutes. so you know what are they doing with you know still lingering on the top gallant sails your. little body. when she came in we need twelve knots ok that's what we've got right no sail setting aborted three minutes to go what's the distance. finally they need to shut off the engines to help the ship navigate out of port.