good afternoon and welcome to prime interest i'm terry and boring here and watch t.v. and here's the story that i'm tracking today. remember john paul's know it not hank paulson bush's treasury secretary who pushed hard i'm talking about john paulson who shorted subprime and made of millions or as a hedge fund now he has long fannie and freddie along with some other hedge funds who bought preferred shares to match uncle sam's investment senator bob corker characterized the stock as a lottery ticket but that hasn't stopped a run up in price of over one hundred seventy percent in the last few months just last week at fannie mae and now they will repay the treasury fifty nine billion dollars for bailout money it took during the crisis but this is a one off event that's only possible because of an anti-doping change and deferred

tax asset good luck mr paulson. and the bloomberg a to stand ten ten years as financial heavyweights engage in dialogue with the embroiled market data provider clients including of china's central bank the federal reserve and the f.d.a. have inquired about data confidentiality issues and j.p. morgan short of problems itself is having serious dialogues with bloomberg and is considering its options and sheep executive of bloomberg lp has personally reached out to three hundred clients and apologized and lastly age as europe's a large as banged house so far gotten off with the risk for money laundering suits and the u.s. and europe but it now faces a new money during charges and argentina is a country that hordes one in fifteen u.s. bills according to bloomberg h.s.b.c. is trouble don't they recently reported they will eliminate as many as fourteen

thousand more jobs as they seek to cut an additional three billion dollars of costs . now we remember the last time a major bank got caught neck deep and a money laundering scandal it was well cobia to the tune of three hundred billion dollars and only months later it will be established by wells fargo and the financial just and here's what's in your prime interest. now the gang of eight has introduced a bill that would reform our country's immigration laws the bill paves the path to

citizenship for nearly an option that million immigrants the bill includes a four point five billion dollars plan to gain effective control of the mexican border states implementation of the eve of five system increases a highly skilled worker visa and implements a new w. visa for low skilled workers but how economically feasible and reasonable is this bill and as a film of loopholes for the special interest groups well today i have with me well mcbride the chief economist of the tax foundation and my coleman washington bureau chief of the albuquerque journal new mexico's largest newspaper thanks for joining i thank you it's really so. the gang of eight has supposedly introduced a bipartisan bill. mike can you please tell us who are the biggest opponents per poena and is this truly a bipartisan proposal it truly is a by part of some proposal the gang of eight is comprised of four republicans four

democrats some republicans including senator john mccain senator marco rubio from florida on the democratic side you've got the majority whip dick durbin and you've got senator menendez from from new jersey and while that effort is bipartisan there is certainly a large contingent relatively large contingent of conservatives more hardcore conservatives who oppose it for what they call amnesty or the so-called path to citizenship for some eleven million illegal people who are already living here in the united states so it's bipartisan but it faces a long hot summer ahead i think on the hill and it's going to play well one of the tradeoffs with amnesty is. a tax provision that would require immigrants to pay back taxes to gain legal status now while you were quoted in the wall street journal on may tenth about this provision in an article titled taxing problems and immigration plan and you said if this does come to pass it's unlikely

the ira and that it's unworkable likely not to have any real ability to do that can you please elaborate on this tax provision and the comments you made in the journal and. the us is already under tremendous pressure to to particularly obamacare many of the provisions going affect this year we've turned our tax agency into a health care you can see now and as well as many other things they're doing for years they've been doing various welfare programs particularly the earned income tax credit. so. just to give you an idea of how stretched they are they're able to. and for all you folks out there who wonder who's going to get audited there's two two million population it's. it's the very wealthy and it's those taking that earned income tax credit that's because there's about a twenty five percent fraud rate in the earned income tax credit and with the

wealthy that's where the money is so they they they have to pick and choose their battles basically and they're they're spread very thin so they're just they simply won't be going after legal immigrants and they're back taxes on what are likely very low wages well now there is also a very controversial study by the heritage foundation that was put out it was titled the fiscal impact of unlawful immigrants and amnesty to the u.s. taxpayer and what came of this was that they mean the illegal immigrants and they receive amnesty they would generate a lifetime fiscal deficit of six point three trillion dollars over their lifetime ken can we talk about the difference between dynamic scoring and static scoring and did this study even take into account you know factors considering that once one becomes illegal they start going to school they'll get better jobs are going to pay taxes you can you address this yes and the answer is no and they didn't take that stuff into account so it's not it's not really dynamic in that sense it's it is. it

has a lot of interesting facts and figures in there but their basic approach is very static it does not look at what happens to the next generation what does happen with immigrants typically is the second or third generation is basically indistinguishable from the native population and all sorts of measures including education in so what they've done is they've taken the current. assume that the current the first generation of immigrants remains in the in the same education status which is very low low education. outcomes for the most part and low income that goes along with that and so that's that's not very accurate ok i thought we could really talk about this immigration. debate without mentioning the heritage foundation study has it's been in the name is it was very controversial but also the c.b. oh is supposedly going to score this bill do either of you have any numbers what

you think it will look like i don't know that they're supposed to use dynamic scoring so i'm sure that the net negative economic impact would it wouldn't be as great as the heritage report but that's still to come nobody really knows what that study is going to say one. on that same note the cato institute which is a right leaning think tank here in town also did a similar study and they did use dynamic scoring and they found that the reform bill would add one point five trillion to the economy and that by forcing the eleven million undocumented workers out of the country that there would actually be a two point six trillion dollar loss over ten years to the g.d.p. adding it adding people to citizenship or painting paving the pathway to citizenship for eleven million people that doesn't increase prosperity it doesn't increase production i mean we have a jobs problem here it's not that we don't have enough people working is that we don't have enough exports we don't have enough products being made is that just simply making somebody legal status is that going to increase our economic output.

well what it will do is you're right they're already here there are already working and the question is how do we get them on the books basically how do we get them to pay taxes what it will do is boost tax revenue these people come out of the woodwork to. obtain proper paperwork i.d.'s. like we tax revenue will go away as a result so it is it isn't going to change production or demand that much you're right going forward it may attract more immigrants but economists agree on a few things one is that more immigration is on balance very good for the economy of the domestic economy. of course it's very good for the workers they're coming in they're doing it they're risking their lives to get here so we know it's good for them. but it's also good for the domestic economy on balance and

a lot of the costs in the bill are going to pay for increased border security and clearing new surveillance technology the border agents a new phase. can anybody talk about if this is the economic or are there more cost effective ways to protect our border economical you mean cheap it's certainly not because we've spent ten billion dollars in the last ten years ninety billion dollars in the last ten years on border enforcement mechanism it's been kind of a mixed bag i mean it has. illegal crossings are down. but at the same time you know some of that may be attributed to be able to a better economy in mexico less opportunity here in the united states because our own economy has been suffering it has worked is very expensive but you know some of the things that my congress people in new mexico tell me is the least expensive just doing vehicle barriers and things and being very strategic about where you place these types of barriers so there are things you can do to be very expensive and the jury's i think still out on how effective it actually is well this also

brings into question the amount of money that we spend on detention facilities. either of you have any insight into private prisons and what they have to gain and lose in the immigration debate and are they lobby in congress on this information. i don't i don't have any particular knowledge of the industry except to say that there is a clearly a conflict of interest in that. to the extent that those are those are profit profitable operations they serve to their business is keeping people in jail right and so a lot of these folks are the illegal immigrants so they would stand to lose and they might be lobbying against any sort of reform of the current system they have they have a lot to lose and corrections corporations of america corporation of america has one of the largest. private prison operators in the country spent almost a million dollars last year campaign contributions to members of the gang of eight and others who have jurisdiction over this type of. what they call the deportation

detention facilities which would you know we're keeping people before we deport them and so i think that they've got a big dog in the fight and they'll they'll be very active as this thing moves forward ok and just last question i want to talk about the highly skilled workers what impact will this have on the economy that's a big part of this bill is the increase in h one b. visas right now we give about sixty five thousand of these a year companies mark zuckerberg is an apple computer and everything they're saying you know we don't producing unfortunately enough highly skilled workers to fill some of these jobs at the need to fill so they're looking to india and pakistan and the thing is we bring a lot of these kids over here and we give them the best education that they could possibly get but you know we send them away so a lot of members in congress would like to increase that number up to over three hundred thousand a year number and this was one hundred ten thousand ok that was i have to check my math on that i think three but in any case the idea being that some of these highly

skilled highly educated people would be creating jobs and. that's all we have time for i think well this is. the chief economist at the tax foundation and michael coleman washington at the albuquerque journal next we have an exclusive interview with the publisher of the transistor then prime interest producer bob inglis and i will talk about. really.

little. the worse for the little thing only one of the. radio. i want. to give you never seen anything like i'm still. looking for somebody like in the field that you won't find it here if you're looking for relevant stories unique perspectives on top of my scans in antarctica.

or times in your jail cell one day founder of the trends in research institute publishes the trends journal the most recent journals featured a wide range of topics including the arab spring cyprus bail ins as well as the influence of the goldman getting earlier i spoke to gerald sunday about his views on global currency wars and i asked for his take on partisan u.s. politics. you look at most people they either call themselves republicans or democrats left right center whatever they're locked into a belief system and in that belief system they keep repeating the same shallow

message the same silly talking points and they live in by and die by those you cannot give them facts to change their minds facts do not count in a belief system and that's what we have going on right now look at the media they call themselves by their own by their own definitions they'll say that they'll call themselves centrist bills they'll they'll call the left wingers whatever they're locked in a belief system and that's the only thing that they listen to are their beliefs as a political atheist do you put allegiance to the flag. no i certainly don't pledge allegiance to a flag and i certainly do not believe in my president right or wrong i pledge allegiance to the constitution and the declaration of independence pledge allegiance to the flag is a new thing they made up in the nineteenth fifties and then and what do i pledge to

anymore they've abrogated the constitution they've destroyed the declaration of independence they've abrogated our of fifth sixth and fourth amendment rights so what do you know every day i love these politicians by the way we talk about our founding fathers the founding fathers would be real rolling in their graves how about not becoming involved in foreign entanglements well why don't we all know i don't know why we move on to egypt's ok i want to move on to two more banking issues and i wanted to get your you know i wanted you to speak on the importance of deposit or confidence within our banking system and why is that essential to keep banks solved and can you just talk about you know confidence in this psychological effects that go into our banking stocks or. well people believe in it because of course they have f.d.i.c and they're covered walk for two hundred fifty thousand

dollars in their account and what we saw in cyprus by the way recently to me that was a canary in the mind shift this is what happens when banks go bust will it happen in the united states i don't believe so they'll call a bank holiday they've done it before if there's a crisis remember they closed wall street for a week when nine eleven happened and if you had certificates of deposit by the way you couldn't get a mount you couldn't cash or men because those of financial instruments traded on wall street sees c.d.'s were locked up and when so when i believe what will happen if there's a banking crisis and there's no reason to believe there won't be one because everything they're doing is not solving this problem all they're doing is to basing the currencies by printing more money i believe they'll do what they did back in one nine hundred thirty three but just different and that is they devalue the

currency and people don't realize that in thirty three you were forced by the federal emergency banking act to turn in all your goal and gold in those days the dollar was pegged to gold i believe it was twenty dollars and sixty two cents announced you had to sell it to the government ad and if you didn't you went to jail or fine they had laws in place after all the gold was in day repay the price of gold to thirty five dollars and afterwards which means that you just lost seventy percent of your purchasing power and i believe that's what's going to happen where there are more bank holidays in europe bank holidays in the united states in argentina or anywhere they will devalue the currency you'll get your money don't worry about it it just won't be worth very much countries around the world are. are using and printing money you know in japan. you wrote about the

swiss they they've been printing frames and the. printing euro is all to keep up with the united states i mean you called this world inflation. is this would you consider this a currency war to. absolutely not only i consider a currency war lou since the brazilian finance minister manteca he call it affirms the war currency war listens to alledged very good is now head of u.b.s. was former head of the bag he calls it a currency war mervyn king the outgoing head of the bank of england he calls it a cards war even. called it a currency war and even add to the g. seven meeting they called it a currency war but then they said we can't call it a currency you war and we're not going to call it a currency war that's all this is and by the way since our base come into office

the yen is lost fifteen percent of its value against the dollar and just a little bit of history because it's repeating itself this is the same thing that happened in the one nine hundred thirty s. they're lowering the value of their currencies so they can export more of their problems and they did the japanese did this when they went off the gold standard in the 1930's they they lowered their currency so much that it fell sixty percent against the u.s. dollar in forty percent against the pound sterling so all this is about the lowering of the value of the currency is to export more products and i have this is a minute left but i wanted to ask you about bernanke you the ags that strategy health and wrath of last week or last week and wrote and the journal kind of hinting about have winding down the five billion dollar a minute printing easing that the fed is currently doing do you think that the fed actually has an exit strategy do you think interest rates are going to rise and what is going to be the result of. you know i don't know what they have but i know

what they've done has it worked in interest rates have to go up at some point and when they do that most people who forecasting the bond market's going to crash with it and so too will the economy. because the only thing that's kept us economy alive is the printing of cheap money and record low interest rates i just took out a loan to buy a historic building at a two point eight seven five percent a mortgage that's on the heard of that's what's keeping the markets alive and even at those numbers those ridiculous lee low rates we still have not seen a real recovery not when you look at income growth the kind of jobs that are being created or g.d.p. numbers. that was gerald solent a publisher of the trends journal and to catch the full interview turn into our you tube channel at youtube dot com slash the prime interest.

in joining me now is bob english prime interest producer yes it's great to be here again and we might have a set duel today i'm sorry. what we announced yesterday that we're going to attend the big conference this weekend in san jose california so anyone has anything us to report on while we're there to submit your comments on you tube and facebook and we'll get you up but i do have some troubling news for fans the government has seized hash assets from the largest bitcoin exchange mt cop got homeland security claims to have probable cause because they were transmitting money without a life and now we have here a copy of the actual caesar warrants probably there were in detail what did you

find that was of interest to you know well unfortunately the kill the seal a big coins is that most people need to transfer money to be able to get them you have u.s. dollars you want big going to have to go to mt gox or one of the other providers and so this is like a bottleneck and what mt gox had done is open up a bank account at wells fargo and unfortunately they check some boxes know that they probably should have checked yes and we have this michael mcfarland special agent of homeland homeland security services who filed an affidavit and said that he wants to investigate them and seize the money the point is is that part of this he interestedly defines currency as something that refers to any money that a government has declared to be legal tender and i mean does this strike you as a little bit funny definition of a. you know money that's not what i reported money as i think one of our first episodes i did a very down and just read it and it's just an unbacked currency exactly nothing to

do with legal usually in the old days currencies and this is our definition here a government declares a currency to be legal tender despite the fact that it has no intrinsic value by reserves so i'm just wondering if you've got this completely wrong if we could just throw this out the day that out the window and start fresh air well that's just the thing is we always have the government changing the definitions up i mean they may change the definition of inflation as well used to be my interest and the money supply analysis changing and i said i said. anyway. moving on. interestingly enough just a few days ago there was a war and professor is they made some really negative comments about bitcoins they said quote they're swimming and unchartered waters when it comes to its legal and regulatory situation and that the most obvious question is whether bitcoins are even legal how precious of them and as we know c o two see commissioner bernard

children came out a few days ago he said he wants to regulate big cohens and the commissioner the chairman actually gary gensler he went toward an interesting story about him somebody who was a friend of robert when we were going to meet at the conference this week and went to school with them and he said when he went to the recorders were going to him at goldman sachs goldman sachs only wanted to talk to gary gensler and that's my little story about him not surprising it is always there saying all this stuff comes together exactly that's all we have time for a sorry back line fans. now it's been a day of trends and reversals on prime interest we looked at subprime as paulson

he's now flipped and is betting out on the bailed out g f c's will emerge from conservatorship the list of concerned clients is growing longer with china the fed and j.p. morgan joining the fray we talked with gerald solent today about the number of trends he's tracking from the u.s. dollar troubles to global monetary policy to our fed chairman's ed exit strategy and we talked about the cost of emigration with will mcbride and michael coleman and finally we have to end on a sad note highlighting the continuing troubles with bitcoin servicers thanks for watching we'll be back tomorrow with more and be sure to catch our extended interview with gerald solon day on you tube at you tube dot com prime interest and from everyone at prime interest i'm terry and boring for the great.

you know how 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 realize that everything is ok you don't know i'm tom harvey welcome to the big picture. led mission and free accreditation free in-store charges free

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coming up on r t obama's second term seems to be plagued with scandal after scandal one ton of obey hunger strike of the justice department's tracking of those a.p. phone records things just aren't looking good but look deeper into those scandals concerns over the safety in nutrition of the nation's food contend used to grow no cure food movement takes its first step will a child investigates its own schools bad food decisions a look at the power of the people's food coming up. rumors of the koch brothers buying the tribune company have been met with protests by unions and legislative leader a potential buyout would include the chicago tribune and the los angeles times fueling fears of a buyout would drastically change the news coverage in favor of one political leaning.