the committee workers of the world rise up on may day now from the us to the other side of the globe people are protesting against austerity growing wealth inequality and other failures and the government policy now will dive into today's events and take a look at labor history. and ten years ago today president george w. bush gave his famous famous mission accomplished speech now he was declaring victory in iraq and it turns out well that was a little premature we're going to take a look at what happened inside iraq a decade later. and more on the arrest in the boston marathon bombing now police have reported that they have three new suspects that they've apprehended and we'll tell you what police are saying about the suspects just ahead.

well it's wednesday may first four pm in washington d.c. it's a murder hell you're watching r t and starting off this hour may day international workers' rights day or may day as it's known as underway today and everywhere from greece to turkey to europe and beyond people from all walks of life are making their way onto the streets protesting current economic inequality is as well as workers' rights and historically associated with the labor movement this day has come to encompass many other causes in the u.s. under the umbrella of the occupy movement issues like wall street reform and immigration have taken center stage. now for more on this may day past and present joining me now is art's his own same facts here in the d.c. studio and honest as the a church in the york sam let's start with you why is this day so important for the labor community well i mean the day goes back pretty long ways i mean this goes back to the dark days of the gilded age nine hundred eighty six when workers were

trying to organize for an eight hour work day when workers were fighting against automation and we saw automation already taking over the workplace as far back as the late nineteenth century so this was the beginning of the labor movement it all came to a head in eight hundred eighty six on may fourth in haymarket square there was a peaceful rally going on some striking workers that turned violent a bomb was thrown into the crowd the police opened fire lots of people were killed it was actually used by police and by the government to crack down on a lot of extremist organizations you know what they refer to as an artist or far left socialists. but also the what it how did the effect of that is it strengthen the labor community as well in response to the kind of this this aggression from the police and out of that a few years later you soul around the world these kind of movements rising up around may commemorating what happened in haymarket square and also just taking this this global struggle struggle for workers during the age of the industrial

revolution when conditions for workers weren't very good building and building and building a certain lot of certainly a lot of history there sam so on a stasia i understand that you were actually on the ground today where the protesters were earlier can you give us some experience or knowledge of what was happening well margaret several actions taking place in new york city today as well as another big cities throughout the united states and what we saw earlier today and are going to continue witnessing throughout the day are protests involving unions where groups are gathering to conduct several auctions throughout the city ah the numbers are only beginning to kind of increase right now the. day is only getting started this afternoon really we did see people marching throughout the city for many blocks and people were really you know chanting and were there out on the streets to voice their discontent with economic inequality with union busting with. you know wages with workers' rights we talked to some people on the ground

and they were certainly very vocal about why they're out on the streets today take a listen all the people in high places not in high places i don't have things that other people have that's why i am standing here that's why i'm marching for equality equality fairness for everybody fairness one have one one have one is not supposed to be one have two and you'll have you quality for everybody that's why much and right here i'm here today. unfortunately the companies do their advertisers job at the below minimum wage and i think that's a big problem. you know is this may day protests is this just a single day or could we see this prolonged activity from these groups is that to me margaret yes yes are we going to see. you know that's a that's a curious question because certainly it's important to keep in mind that comparing the numbers of people who are out on the streets to for example last year when we saw thousands and thousands of people kind of heated up by the moment of the

popularity of the occupy wall street movement come out in a day certainly the numbers that we have been seeing today are a lot less we're talking about you know hundreds of people at most we're going to see if those numbers grow so really it's going to depend a lot on whether or not the labor movement and then unions are going to be able to accumulate these numbers again and that is going to tell us whether or not we can expect more from the groups out on the streets after may day today certainly will sam is maybe taken more seriously in other parts of the world than it than it is here in the united states you think. well what's international workers day is it's referred to i mean this is really only celebrate this is not really celebrate in the united states i mean you see these actions organizations have taken it upon themselves to claim to stay within the united states but we traditionally have celebrated you know workers on labor day which is a different day of the year. that came out of political sensitivities of the time i think it was president cleveland was a little bit uncomfortable with commemorating made this this massacre that happened

in his market square as a day moving forward for workers so he instead turned it to labor day but this is really important. in the developing world especially in places like indonesia and in turkey and in bangladesh we're seeing massive protests in these kind of low wage nations that are kind of going through those same conditions that workers in the united states were going through when they were fighting for their rights in the late nineteenth century you know we just had the factory collapse in bangladesh killing more than three hundred people so we have workers out there rallying for workplace safety now a lot of those same issues animated the the first strike in action that created made a are still kind of animating today throughout the world it sounds like it will it also sounds like we may have intentionally changed the date here a bit honest of the i want to take it back to you so what's the u.s. reluctance to officially join the rest of the world in these celebrations well

margaret you know i think that depends on the situation surrounding kind of social movements that occur at a specific current time in a specific year we just heard you know sam explained that definitely the shift towards a workers' rights is definitely more has been moved to labor day and certainly that is kind of the day when workers' rights are marked in a sense but it's important to keep in mind that it really kind of may day is a great opportunity for people concerned with these issues whether that wealth inequality with workers' rights whether you know today we saw students coming out on the streets. concerned with huge student debt in the united states all of these issues really made as a great opportunity to come out and voice your concern about them again so it really depends you know on from last year for example the huge numbers they were motivated by the occupy wall street movement this year seems to have dwindled certainly and the question is why if that is the case and you know we don't know do the people need somebody to kind of rally them around or i mean because certainly

these these issues have not died in the united states if i can add on to that. i think on a saucer is right we saw that kind of uptick in support last year as a result of the occupy movement but we've also seen these labor these kind of sporadic labor action since occupy we had the wal-mart strike we've had the longshoreman wal-mart strike strike about safer working conditions in better pay we have the longshoremen going on strike to go against outsourcing we just had the fast food workers go on strike demanding better wages so we've seen kind of a rebirth of of lower action going back to the occupy movement that could be you know fueling this for the future so same you've given us some some examples of how the labor struggle in the u.s. has changed can you give me some examples of how it may not have changed that it still remaining the same since the first mayday yeah well you know the first motive they were fighting automation they were fighting the fact that you know they didn't need blacksmiths anymore because they had these mechanized hammers they were

molding tools and everything we were dealing with automation today if you look over the last forty years in the workplace productivity has skyrocketed as a result of machines and automation where as worker wages have stayed have stayed plot they have an increase with their increased productivity you also have as a result you have c.e.o.'s making a thousand times the ratio from c.e.o. pay to worker pays a thousand times greater today than it was in the nineteen fifties we need to take a back to honest aasia we're running out of time here but honest as it can you tell me so what's happening in today's political. economic climate that's inspiring this may day do you think well margaret definitely a lot of issues and again many of the issues that were brought up by occupy wall street when that movement was kind of on it at its peak are certainly people are still talking about the corporate greed the low wages the wealth inequality the one percent versus the ninety nine percent all of these messages we've heard before we talk to them again today about what they think is the major disconnect between the

political and economic realities and the concerns of the people on the street this is what they told us candy years ago sixty percent of the people in this country are in unions today it's down to thirty percent if we don't get out there or voice our opinion it will just keep going further and further down it's not about what we want today we want tomorrow when the next to get for my children it's actually about a long term decline in the power of workers against the corporate really it's a corporate state right the states completely controlled by private capital. so certainly margaret and sam people are out there you know all of these issues remain they've been around for years there's still a you know being addressed by the people coming out onto the streets whether or not it's going to take kind of more of a mass movement throughout the day we're going to have to see what the down rubbles see we're going to have to leave it there guys a lot of information that was r.t. correspondent sam saxon honest. well ten years ago today president george w. bush boarded the u.s.s. abraham lincoln and declared operation iraqi freedom

a mission accomplished now ten years later however history has shown that the statement to be problematic at best so what did the u.s. accomplish in iraq exactly well arty's meghan lopez she brings us more. captain color. officers and sailors of the u.s.s. abraham lincoln. my fellow americans. major combat operations in iraq have ended in the battle of iraq the united states and our allies have prevailed it was a victory speech before the battle was won on may first two thousand and three exactly ten years ago today a triumphant president bush landed on the u.s.s. lincoln and declared victory over saddam hussein and his allies the speech happened just two months after american troops stormed into the country a massive mission accomplished banner actually hung in the back but on the anniversary of this infamous speech let's take a look back at what the u.s.

has actually accomplished in iraq and where the country stands today by the time president bush made this speech in this battle we have fought for the cause of liberty and for the peace of the world. our nation our coalition are proud of this accomplishment. the u.s. had conducted a massive bombing campaign and engaged in scritches with iraqi troops the stated goals for entering this war were to topple saddam hussein and free the iraqi people with saddam hussein on the run in baghdad overrun by coalition forces president bush moved on to his next goal finding obtain weapons of mass destruction. we have difficult work to do in iraq. we are bringing order to parts of that country that remain dangerous. we're pursuing and finding leaders of the old regime who will be held to account for their crimes. we've begun the search for hidden chemical and

biological weapons and already know of hundreds of sites that will be investigated and the only problem is that there weren't any eight months after president bush made that speech u.s. weapons inspectors reported that w m d's that didn't exist so in a sense mission accomplished but even since this infamous speech and later admissions of the lack of them days the u.s. stayed in iraq sacrificing money and resources and even human lives on a mission that was already declared a victory now in september of two thousand and two white house advisers had estimated that the conflict would cost somewhere between one hundred and two hundred billion dollars but by two thousand and six the u.s. had tallied over a trillion dollars in expenses and counting in two thousand and seven president bush again approached congress to ask for more money forty six billion dollars this time for overseas military operations today here's a look at the total amount of money spent in iraq i should mention that these

numbers are on the conservative end this is because it now account for the hundreds of billions of dollars the u.s. will spend on future veteran care or interest on our debt also important to note according to the iraq rebuilding inspector general of the sixty point five billion dollar effort to rebuild the country at least nine billion dollars was are subject to fraud that's fourteen percent of the total now more important than the money is the human toll of this war since that day on the u.s.s. lincoln three thousand four hundred twenty four american troops died in combat numbers for iraq is are harder to come by but estimates say that anywhere from one hundred twelve to one hundred twenty two thousand civilians died and as for the promise to liberate the iraqi people. when iraqi civilians looked into the faces over servicemen and women. they saw strength. and kindness and goodwill less than a year later images like these that shocked the world the abuse of detainees and

put an ugly face on this war even before these pictures came out amnesty international accused the u.s. of using cruel inhumane and degrading conditions on captured enemy combatants and as for the civilian population an estimated one point six to two million people actually fled the country and many more were displaced internally that is a trend that continues even today just over twenty percent of the fifty eight thousand refugees admitted into the u.s. in two thousand and twelve were from iraq and what about the idea of creating a country that is of buy in for the iraqi people well this week ten news stations had their licenses revoked from the country the worst silencing of the press since the days of saddam hussein and when it comes to freedom to walk the streets safely fifteen people were killed today in multiple blasts an occurrence that still happens nearly near daily so today ten years to the day of this infamous speech

it's important for us to put this as walls the entire war into context as the u.s. shifts this focus away from the country so is it mission accomplished you be the judge in washington r.t. . still ahead here on our team new information is coming out about the boston concerning those marathon bombings and boston police now also that they've arrested three suspects were these developments after the break. the same story doesn't make good news though some. cases. make.

it possible to navigate the economy with all the details such as addiction misinformation and media hype will keep you up to date by decoding the mainstream like. it's been your right. so.

here's mitt romney trying to figure out the name of that thing that americans call a dollar. i'm sorry i missed the guy who cares an awful lot. you know what kind of terrorist cells in your neighborhood wish to defeat terrorism a liberal democrats. simply out of people. who support you to distract us from what you and i should care. about because they're a profit driven industry that sells and facials the garbage you call that breaking news i'm having martin and we're going to break the set. of. my. own. will breaking news today new information is streaming out about those boston bombings that rocked the nation nearly three weeks ago now three more suspects have

been taken into custody on accusations that they interfered with the investigation into the attacks during the boston marathon the boston police department released the news in a tweet providing assurance that there's no new threat to public safety now these suspects were classmates of joe hart's the knives the younger brother who is suspected of carrying out the april fifteenth bombings azmat to yacov and diaz cutter buyout are ritually from kazakhstan and they were taken into custody for violating the terms of their visas earlier this week now the third suspect is rebel phillipos and he is a u.s. citizen now for more r.t. correspondent reporting she brings us the latest. the three college students that have been arrested have been identified as friends of dzhokhar sanaa if the nineteen year old charged with carrying out the boston bombings along with his brother tamar lawn according to reports two of the students that are from kazakhstan and the other is a u.s. citizen all allegedly attended the university of massachusetts dartmouth at one point and that is where dzhokhar as are not have was studying now according to

investigators the three college students were arrested in connections to actions taken after the boston bombings not in connection to planning the bombings investigators say that the men that were arrested disposed of material at a boston area landfill at the request of joe horace and i have according to reports they may have also removed items from joe hers dorm room including a laptop those three students are expected to be charged with conspiracy to obstruct justice and making false statements to federal authorities the three arrested college students are expected to appear in federal court on wednesday afternoon and that is where all of their faces will be clear to the public and to all the media cameras that are already packed outside of the courtroom but there is in the meantime a picture that is circulating of joe hart and two of the cosmic students who was in

in times square last year so there are some images of the two cars that students are already circulating in the media now on tuesday u.s. president barack obama underscoring that russia has been cooperating in in the u.s. is ongoing investigation into the boston terror attacks in two thousand and eleven as we've reported warned washington about ten monster knives possible link to extremist groups in recent days federal law enforcement official says that they are focused on several persons of interest in the united states and in russia in the meantime the boston police department has released a statement saying that there is no new threat to public safety in the aftermath of these three college students being arrested. well that was our tease marina portnoy a. well you tall woman was initially facing charges for violating the state's so-called ag gag laws and she's got her case dismissed now was it because of new evidence or growing press attention now amy meyer was horrified at seeing the dale

smith meat packing company in draper city utah now she began filming that facility and the cows now this is a crime in utah as it is in other states with similar laws to make they make it illegal to photograph or film businesses with the intent of making them look bad. so the slaughterhouse manager told meyer to stop and ultimately police arrived on the scene she was found out that she was being prosecuted under utah as ag laws which is a class b. misdemeanor for interfering with agricultural operations but less than twenty four hours after independent journalists will potter brought to light the charges were dropped coincidence the prosecutor says that he dropped the case because the defense introduced new evidence which showed meyer had been standing on public property while filming now it's worth noting that the ag gag laws are designed to silence debate about business practices and this is certainly getting people talking about the meat packing company in utah and about those ag laws in general.

will school safety is an issue concerning parents and lawmakers the like all across the country now students may be heading off to math class with some added safety precaution the colorado based company elite sterling security known for designing bullet bulletproof products including clothing well they've come up with a new piece of merchandise that has some parents running the stores the mc kids ballistic backpack approximately three pounds in weight can stop up to a nine millimeter bullet so what's next well the residence for the harshness she brings with her take.

americans it's time to it that we are regressing porter pioneer days the wild wild west when everyone and their sister had a gun our poor excuse of a congress and the immoral propagandist machine of the n.r.a. are definitely driving the regression train but there are plenty of greedy bums hopping on along the way happy to profit on the express train to barbarism case in point the generically named company elite sterling security they are distributing bulletproof backpacks for kids that's right we can all just accept that guns in schools are a given now so why not buy your kid a backpack second double as a shield from that inevitable hail of bullets the backpacks are the latest in ballistic protection for kids cost three hundred dollars and are only available within the us which is fine because the us might be the only country in the world

that needs a three hundred dollar bulletproof backpacks for kids other kids with bullet problems just hide behind rocks or something sensible but in the us kids have three hundred dollar bags with a ballistic protection level of national institute of justice level two that means it's a great balance between blunt trauma protection comfort and conceal ability making any of this up. the backpack won't stop to twenty three caliber rifle bullets which were the kind of bullets that the kids in newtown were killed with but you know they call three hundred bucks and as long as you throw money at a problem you're helping out right americans. at least sterling has sold over three hundred of the packs in two months and has thousands of inquiries backing up according to a jays the body the league's president the backpacks can be seen as routine precaution rather than something that should alarm kids it's like you find life jackets on ships or planes in case they go down it's no different to having to see

bills in the car he says right just like that except seat belts and life jackets protect you from accidents while bulletproof backpacks protect you from the intentional reign of terror of homicidal maniacs while a lead is the distributor of the backpack like will cut the euro is the manufacture he is based in colombia and he made his fortune selling bulletproof fashion jackets to customers in fancy department stores in gun ravaged colombia which is what we are now america gone ravaged just like colombia and just like our pioneering days whether you like it or not americans the wild wild west is winning tonight let's talk about that by following me on twitter at the residence.

well who says there is no such thing as a free ride over the weekend a mother down in mexico city gave birth to a baby boy while on a train headed to the subway now subway employees and police alike and paramedics helped her give birth in the entryway to the platform after hearing the news the mayor of mexico city says of the little guy born to a twenty or twenty two year old mother will rise for free for life now subway tickets in mexico typically cost three pesos or twenty five cents here u.s. but as with anything that can really add up now the mother has not named the bay. or released a picture to the media no word yet if this will start a trend but we're looking forward to seeing those pictures soon well that's going to do it for now for more on the stories we've covered go to you tube dot com slash our team america check out our website at our team usa you can also follow me on twitter at m underscore j underscore how will and stay tuned next for prime

interest. admission free couldn't take should be free. for charges free. range means free risk free. to tide free. download free broadcast quality video for your media projects and free media and don to r.t. dot com you. wealthy british style. is not tied to the title. markets finance scandal. find out what's really happening to the global economy

with max cause or for a no holds barred look at the global financial headlines tune into kinds a report on r g. h.

good afternoon oh welcome the prime interest i'm perry and boring here and washington d.c. here's the issues that we're tracking today. maybe we buy more maybe i'm talking about bonds ben bernanke and the f.o. and c. announced today that the pace of its q.e. purchases would depend on labor market and price inflation developments the vague new wing would give the fed up with central exit later in the year something that it's been hinting at but an employment report this morning missed expectations so it looks like the fed maintains considerable wiggle room to keep the printing presses rolling for now we'll talk about our previous monetary regime under void with other ben studio and a bit. in new york minutes has been shaved down to a chicago millisecond and that's just about all the time it takes for high frequency trading algos to front run trades at the chicago mercantile exchange

futures markets from gold to crude oil to soybeans have been game to this way for years gold knight gary gensler was already pushing the c.f. to see the employment new oversight of high speed traders this was after last week's a.p. twitter hacked benefit market plummeting in just a minute but it's got this in more on today's daily dool and. that is the head of fannie and freddie mel watt is the president's nominee to leave the federal housing finance agency the representative from north carolina would replace ed demarco who has been criticized by democrats for resisting measures to help homebuyers at the expense of taxpayers watch will likely feed were the market didn't know much as the mortgage giants are being wound down now and get to what the new your prime minister.

in two thousand and eight during the worst financial crisis since the great depression then french president and u.k. prime minister called for a new bretton woods an overhaul of the global financial system they evoke to the memory of the one nine hundred forty four conference here representatives from forty four nations treks to new hampshire to design a new monetary system for the post war two era. for the label a break from the world. all agreements must be ratified by the governing bodies of the nation from the bar before becoming a back. why was it so important to establish stabilization of the world's

currency as well for one the memories of world war one still lingered specifically the unintended consequences of the peace treaty that the treaty contributed to germany's bankruptcy hyperinflation and economic collapse which is why when designing the post world war two economic structure the focus was on reconstruction rather than reparations the key goal of britain woods was to ensure a stable global currency regime that would help all sides rebuild their economic structure earlier we talked to ben steel the author of the new book the battle of britain woods i asked him at today's currency war is there any resemblance to the currency wars of the one nine hundred thirty you know sort of the issue that might have been last year seems to have broken down as you know there was a lot of buzz surrounding the i.m.f. spring meetings last week over whether japan might kick start a new international currency war but here's the fundamental problem over the past few months you've heard a perfectly rational sober economic commentator. is arguing that the dollar is overvalued that the euro is overvalued that the yen is overvalued that the pound

sterling is overvalued these four currencies alone represent over half the global economy they can't all be overvalued yet if policymakers in each country pursues higher net exports through currency depreciation some of them at least are going to be disappointed and that's when you run the risk of overt protectionist measures no this is precisely what f.d.r. as treasury department was trying to stop permanently in the one nine hundred forty s. words but we have a graph here a central bank asset of the percent of g.d.p. europe and the u.s. share of central bank assets are steadily increasing over the past six years and japan's are projected to reach sixty percent or higher makes a quantitative easing itself as a relatively recent phenomenon officially chasing back to japan and she thousand and one is it possible that balance sheet targeting or q.e. itself is a manifestation of new monetary regime and not unlike britain we're in uncharted

territory of quantitative easing is a reaction to the fact that official policy rates have zero in all these key economic areas so if policymakers want to provide more stimulus they have to use unusual means the interesting thing is that under the treasury department's philosophy back at bretton woods in the one nine hundred forty s. this would have been impossible because they were determined to institute a fixed exchange rate system where it would be really impossible for central banks to operate in such an uncoordinated manner all during bretton woods the u.s. heavily advocated for fixed exchange rates but now we see politicians calling for floating exchange rates why there were criticising switzerland for pegging to be hero or china for paying to the us dollar why have we seen such a drastic shift in attitude well actually the other two have been very consistent. what we saw in the one nine hundred forty s.

at bretton woods was a more competitive dollar which is exactly what we're looking for today in the one nine hundred forty s. all the market pressure on the u.s. dollar was upward so by obliging other currents currencies to fix to the u.s. dollar we were actually helping to keep the u.s. dollar down over the past ten years of course we've seen downward market pressure on the u.s. dollar baeza be some key emerging market currencies particular in particular china's currency so when countries like china peg to the u.s. dollar they're actually keeping the u.s. dollar higher which is why we support floating exchange rates now as opposed to the fixed exchange rates we supported in the one nine hundred forty s. what do you think of the outcome of all this quantitative easing well i think we see the risk of a sort of uncoordinated on the ground wing of the international monetary system you you had after the financial crisis world leaders like britain's gordon brown and

france's president sarkozy calling for a new bretton woods but we're seeing less and less coordination over time and that could kick start a currency war as countries try to increase net exports through depreciation but again if they're unable to do that then they may pursue more overt protectionist trade barriers i like to talk a little bit more about the history of britain why it's and from the description and your book that there seem to be quite the political and are taking even the choice of location and i why is it that this global economic conference took place inside i know in town in new hampshire. president roosevelt was determined not to make the mistakes that president wilson made after world war one in particular not securing republican support for the league of nations so no. hampshire had a republican senator charles tobey who was going to be in

a difficult primary battle and president roosevelt thought well if i can help this isolationist charles toby when his primary campaign he might become a convert to the cause as it were support the new international monetary greenman and convert some of his republican colleagues and you know that's exactly what happened. but this happened in one nine hundred forty four and by a war today and telling one thousand and forty five so why did this gathering take place for a post war two economy before the war even ended well president roosevelt in particular was not interested in international monetary fairs was very interested in sending a political message to the enemy axis powers that it was the united states and the allies who had the compelling post-war vision he actually believed that this would help bring the war to a successful earlier conclusion. there are also some major political figures that

participated in the conference one of them was john maynard keynes who represented the british interest and then harry white representing the interests of the americans both seemed like i'm likely diplomats how did their personalities play out in the congress and they couldn't of contrast to more hairy hairy dexter why it was the son of lithuanian jewish immigrants his father where the hardware peddler john maynard keynes was born of upper middle class cambridge academics and when they came together it was quite explosive and they actually had to go she for two years in the run up to britain awards and they fought fiercely about whose plans would win the cain's plan for the white planet one point in one thousand nine hundred eighty three keynes gets fed up with one who is jewish and yells at him this is intolerable throws this plan on the on the floor and yells this is yet another tell me to which harry dexter white responds we will try to produce something which your highness can understand. well i've got a surprise. i think that the us solved britain as such

a threat during the great and white conference and had suffered major blowback staring the war and just a few months earlier of a near bankruptcy in the us supplied them with billions of dollars and bailouts lend lease act why why i have brought in such a threat to do that remarkable what harry dexter white from the time that he arrives at the us treasury in one nine hundred thirty four is convinced that britain is the natural geo political rival of the united states actually fundamental in his ark from one thousand thirty six eight years before bretton woods in which he writes the more sterling countries there are in the world the more powerful position england will be around the conference table when a conference of benchley takes place so he was determined to pass the british woods and bretton woods was really part of a larger geo political agenda that f.d.r.'s treasury had which was to eliminate britain as an economic and political rival in the post-war world and did that happen yes in fact the british agreed to

a sort of faustine bargain with the united states the united states provided limited financial assistance to britain in the form of lend lease in a post-war transitional loan in return for which the british agreed to three things to eliminate imperial trade preference this is the arrangement by which britain gave itself privileged access to the markets of its colonies and dominions it agreed to make the pound sterling fully convertible into u.s. dollars again at a fixed exchange rate which was a mortal threat to british solvency because they had so few dollars and so little gold and finally they would have to accept the u.s. dollar as the global unit of account after the war but as british delegate lionel robbins put it at woods we needed the cash while it sends the u.s. close the gold window and one nine hundred seventy one we have seen geomagnetic progression and the dollar debt white kept us dollar as the reserve currency there really wasn't any all turn. in fact harry dexter wyatt had said before congress in

one thousand nine hundred five when he was trying to convince congress to ratify bretton woods that it was inconceivable that there could ever be a time in which the dollar would not be backed by gold keep the believe that if such a thing work to happen the dollar would no longer maintain its privileged place in the international monetary system but because there was no alternative the world as it were gave the u.s. dollar a second chance and i think it was paul volcker who in the one nine hundred eighty s. sort of restored international confidence in the dollar and kept the international system from under rubble and. paul volcker a combo's accomplish this by raising short term interest rates to over nineteen percent in one nine hundred eighty one which eventually qual the turmoil and volatility in the bond markets and created a name for him as a price inflation fighter a legacy that still are in some praise today that was ben steel author of the book the battle of britain voids. stay tuned as we faithfully break down fee up money

and no that doesn't involve italian motor cars there might be more that backs and you would think then producer bob english and i will discuss the fed's announcement today and this is exactly when ben might strap on his tightening tool belt we should be on for quite the ride when interest rates and evidently rise also reveal who wants to put a good housekeeping seal of approval on every age fifty algo not really finally it will take a look at the just released facebook earnings statement. the world. at least. there's really.

little the worst year for the little things. like outlook for the. radio guy and for a minute. what we're about to give you never seen anything like this i'm still. looking for every dollar of the feel good luck finding. here if you're looking for relevant stories unique perspectives and tough questions dark.

you might have seen one of these cruising the streets is the feel five hundred the first models introduced in italy and one nine hundred fifty seven could go from zero to sixty mph in a whopping twelve seconds a few years ago the u.s. treasury thanks to tarp intervention guided chrysler into a merger with now the new and improved five hundred excel arrays along you have a much quicker six point seven seconds but there is another in the monetary world with more torque and acceleration potential than a whole car could ever generate so let's break down money or currency

investopedia says a government declares a currency to be legal tender despite the fact that it has no intrinsic value and is not backed by reserves historically most currencies were based on physical commodities such as gold or silver but. money is based solely on faith so why would anyone value this paper money well for one thing governments make them legal tender meaning all debts but most important taxes must be settled in them big coins the open source internet currency are another example particularly because they have no such official backing talk about. after world war two when the us dollar became the official world's reserve currency the bretton woods agreement fix the price of gold at thirty five dollars an ounce and other countries were pegged to the dollar in specific ratios this was not technically a monetary system since governments but not ordinary citizens could regime dollars

for gold but at the current as the cost of the vietnam war escalated there was a run on us gold and other countries realize that president nixon was spending far too many dollars in what could be redeemed in gold so what the nixon do well and nine hundred seventy one he permanently severed of a link between the dollar and gold when he closed the gold window. i have the rest of the secretary of the treasury to take the action necessary to defend the dollar against the speculators i have directed secretary connally to suspend temporarily the convert ability of the dollar. or other was. and late one nine hundred seventy two and i.m.f. committee on finance ministers and central bankers met to discuss monetary reform and according to an a.p. report the committee of twenty eight will be working to build a more flexible system and then the dollars one special status as the chief reserve currency but this didn't happen because the most important commodity in the world

which is crude oil would be rising all only and u.s. dollars whether this was by design or accident of this would allow the u.s. . price inflation to be contained in an essence and exported inflation to its trade partners so what has been the net effect of dylan king the dollar from gold wells and one hundred seventy one the us dollar has lost more than eighty percent of its value and the supply of money has inflated upwards of nine hundred percent we'll have to wait to find out but one wonders if the slope on this chart can accelerate forever and that's how we break down the money.

it's time now for our daily joining me is prime interest producer great to be here again with you perry and thanks so much for joining me so exciting things happening today the kind of yeah well the federal open market committee released their announcement they said the labor markets have shown improvement some improvement there preparing to encrease or reduce purchase to his so what does that mean they're going both ways you know they like to do that they don't like to scare the markets too much so what they've done here ben bernanke and some of the other governors and epilepsy voting members have hinted that they're going to finally raise interest rates we're going to year five of near zero interest rate policy but they might do it by the end of the year so this little sentence here is been inserted into their announcement which comes out about every six weeks and so we might see interest rates rising later in the year and that has tremendous consequences for the markets and that's one of the things that we're going to be covering here of course while i have great news for you ok i know how much you love

the fed ok you can now live at the fed and where is this antenna thing the downtown fed building a private retail or a private real estate company has an old fed building and they're renovating it and it's going to be called the last of the reserve and it costs about twelve to eighteen hundred dollars to stay there and are they keeping any of the old remnants from the old federal reserve there are there yeah there remodelling in a way to preserve a lot of the store called purposes and parts of the building i wonder if it's going to be haunted by the ghosts of the currency some day i guess we'll have to see i'm wondering. you can call the fed in washington have them just print you the money to pay for rent well that would be one way of going about it you'd be securitized somehow and sold off rated by moody's and sold off to investors in china or somewhere. well also in chicago changers on the chicago mercantile exchange are gaining information before the markets by renting server

space directly from the exchange in the data center it's so they're getting a lot of heat for this where you. i think it's important for people to realize that high frequency trading of what is this exactly. a lot of these programs reside on the actual floor of the data centers so we have the new york stock exchange we know that h a t is a big presence in stocks but it's also in the futures industry and in chicago this is this has to do with the chicago mercantile exchange we have these goes which apparently have been front running trades for years coincidentally or not coincidentally enough actually yesterday gary gensler who's the head of the c f.t.c. was pushing for a resolution or something you have to see that would monitor those and try to rein them in and this is after last week's and you will get a stamp on each one that's well this is this and he said this a couple years ago he said he wants to put a good housekeeping stamp of approval on every although i just literally impossible

leave it up to him to figure out why no there we have the capacity to do. certainly doesn't at least goes crying to the senate budget committee again for funding this year well i think you know what's really important to understand is that these companies who are engaging in this are trading and milliseconds and macro seconds so we're talking about thousands of a second millions of a second and ever firm is in this in this market space and they have the ability to take advantage of the lane see issue at the c.m.e. all they have to do with their servers to be a part of it it's an arms race and you have to figure that the. who are making the most money are the firms and all the big banks like goldman sachs have their have their tentacles into this and goldman sachs is one of the largest traders historically they have been and what what's on the opposite side of the exchange is they have to make sure they're required by law to make sure that there's a fair market for the people like you would do you might want to buy futures

contracts or stocks but they're only getting a limited investment revenue stream from the space that they're lending out so it doesn't seem like it's that balance because the money is in a they're lending the space that millions of other gaming billions on the order of probably an order of magnitude of difference to me i want to say is that they're you know they're lending the space and which may or may not give them information beforehand we're showing the evidence of it but we heard from someone at the c.m.e. saying that this isn't all the time and it's not to malign all each of these strategies they're not all they're not all causing market disruptions but one of the arguments against them that they tout is they say they provide liquidity and when we saw it i think we have a graph of this if we can go to a graph of last week's twitter a.p. fiasco the dow jones this is actually a five hundred crashed about one percent within a couple of minutes and then it recovered over the next few minutes and this is something that was affected the futures markets and also the stock market and it

was all based on somebody who hacked a twitter account which is kind of ludicrous for the whole reason why their rate they're releasing server space so they can have direct access to the c.m.e. and so now we're hardening on them for using that information that they're paying for well that's true but the exchanges are the regulators doing doing their job by allowing this to happen in the way that it's happening and that's the order well i think what's more important is the infrastructure of these exchanges who's sitting on the board of these exchanges all the c.m.e. has one of the largest boards in existence you should see it's not only that this is an issue that goes way before. high frequency trading was ever in existence and i believe the infrastructure of the of these companies to begin with can be questionable well if you look at the new york stock exchange it's a it's a public company now but it was operated a lot differently what it was just it was just a member exchange ever since it came became public that's when it started having to please the shareholders that's when it started having to generate revenue and

that's when it started renting out leasing server space next to each of the firms right next to a status enters all right let's move on to facebook just release their quarterly earnings today and they parts were good parts are about to happen. ok it looks like there is a bit of mis one hundred one point four six billion in revenue from thirty eight percent from q one two thousand and twelve ok so this was a beat and analysts were looking at earnings per share of thirteen cents they only got twelve cents you know big i think you know the problem with facebook is when you have an i.p.o. the stock is supposed to go up and there are so many problems that the stock is down right now and that's why investors are suing facebook they're saying that more exotic bird and company didn't provide adequate disclosures but it's all because they're losing money not the point that goes back to when they issued their i.p.o. there were a lot of traders who had no information for days because well the system wasn't.

there a lot of trading problems the day of the the day of the i.p.o. so there was that and i think the underwriters being sued separately for that you know we're going to see what happens with facebook all right thanks. to that oh. it was a ho hum day at the fed but that. stop us from deconstructing the fed nine speak chairman does like to have in bonds and hold them do you can't. we also discuss the flamboyant keynes and his us rival harry white as they duke it out in the woods of bread and for the future of currency we broke down the money enclosed by only looking at the frequency which which change can be made when you're sitting next to

the exchange data server and it's pretty high which margin might be after a b n m and stone is facebook earning and speaking of which be sure to follow us on facebook at facebook dot com prime interest thanks for watching and make sure to come back tomorrow and all of us here at prime enjoy as have a great night. let

me let me we're going to let me ask you a question. on this network it's really been the thing we have our night show. me the proof that something a little surprising there's again during the break we're talking about the i mean let me.

the news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. showing up for a show to rule the day. coming up on our t.v. workers of the world rise up on may day now from the u.s. to the other side of the globe people are protesting against austerity and growing

wealth inequality and other failures in government policy so we'll dive into today's events and take a look at labor history and ten years ago today president george w. bush gave his famous mission accomplished accomplished beach know he was declaring victory in iraq and it turns out that was a little premature we'll take a look at what's happened inside iraq a decade later and more on the arrest in the boston marathon bombings now police have reported that they have three new suspects in custody that they've apprehended and also tell you a police are saying about these suspects just ahead.