possible because of an anti-doping change and deferred tax asset good luck mr paulson. and the bloomberg data standalone ten ten years as financial heavyweights engage in dialogue with the embroiled market data provider clients including the china central bank the federal reserve and the f.d.a. if you have inquired about data confidentiality issues in j.p. morgan short of problems itself as having serious dialogues with bloomberg and is considering its options the sheep executive of bloomberg lp have personally reached out to three hundred clients and apologized and lastly age as europe's a large as banged has 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 in there they recently reported they will eliminate as many as fourteen thousand more jobs as they seek to cut an additional three billion dollars

of cost 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 would be established by wells fargo and the financial pain just sand gears was in your prime and. now the gang of eight has entered a bill that would reform our country's immigration. as the bill paves the path to

citizenship for nearly a million immigrants the bill includes a four point five billion dollars plan to gain effective control of the mexican border states implementation of the system increases the highly skilled worker visas and implements a new w.b. 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 mcbride the chief economist of the tax foundation and mike coleman washington bureau chief of the albuquerque journal new mexico's largest newspaper thanks for joining us thank you it's rivers. so. the gang of eight has supposedly entered a bipartisan bill. mike can you please tell us who are the biggest opponents per poets 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. 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 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 i.r.s. will have

a lot of resources to devote to this and that it's unworkable is 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. is already under tremendous pressure to to particularly care for many of the provisions going effect this year we've turned our tax agency into a health care and so you know. 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. two. and for all you folks out there who wonder who's going to get audited there's two two million populations 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 have to pick and choose their battles basically and there they're spread very thin so they're just they simply won't be going after illegal 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 physical impact of unlawful immigrants and amnesty to the u.s. taxpayer and what came of this was that they mean the illegal immigrants if 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 all get better jobs they're 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. 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 because it's been in the name as it was very controversial but also the c.b. oh is supposedly going to score this bill do either of you have any number and

think it'll 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 and that going to increase g.d.p.

or economic output. well what it will do is you're right there 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. likely 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 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 all this also

brings into question the amount of money that we spend on detention facilities and either of you have any insight into private prisons and what they have to gain and lose in the immigration debate and are they while being 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 illegal immigrants so they would stand to lose they might be lobbying against any sort of rip. the current system 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 though they'll be very active as this thing moves forward ok and just last question i want to talk about the highly skilled workers and 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 and high tech companies mark zuckerberg because apple computer and everything are 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 and the number in this bill was one hundred ten thousand ok that would have to check my math on that i was thinking three but in any case the idea being that

some of these highly skilled highly educated people would be creating jobs and entrepreneurship and things like that ok 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 coin. sigrid laboratory. was able to build.

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joining me james brown to me spend their lives underground and look in one of the world's most dangerous professions. coal on altie. four times a year gerald's to lend a founder of the trends in research institute publishes the trends journal the most recent journal featured a wide range of topics including the arab spring cyprus bail ins as well as the

influence of the goldman during her lawyer i spoke to gerald's one day 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 ills bill they'll call 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 where 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 one nine hundred fifty s. 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 everything 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 so you ok i want to move on

to to 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 breaking stops there. well people believe in it because of course they have f.d.i.c in their 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 your men because those the 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 an ounce you had to sell it to the government dad and if you didn't you went to jail or were fined they had laws in place after all the gold was in day repay the price of gold to thirty five dollars an hour roots 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 don't won't be worth very much countries around the world are. are easing and printing money you know in japan we haven't nomics you've read about you know the swiss they they've been printing frames and the of the e.c.b. as printing euro is all the keep up with the united states i mean you called this world and face and by can we is this would you consider this a currency war to i absolutely not only i consider a currency war listen to the brazilian finance minister montenegro he call it a for the war currency war listen to alexander is now head of u.b.s. was former head of the bag he calls it a cards you work mervyn king the outgoing head of the bank of england he calls it

a cards or 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 1930's they're lowering the value of their currencies so they can export more of their problems and they did the japanese did this from a one 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 use the exit strategy health and wrath of last week or last week and wrote and the journal kind of hinting about and 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. i mean 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 it hasn't worked it interest rates have to go up at some point and when they do that most people look forecasting the bond market's going to crash with it and so too will the economy because the only thing that's kept this a commie alive is the printing of cheap money and record low interest rates i just took out a loan to buy a historic building at two point eight seven five percent a mortgage at some of the heard of that's which pockets 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 it has the full interview turn to our you tube channel at youtube dot com slash the prime interest. in joining me now is bob inglis prime interest producer yes it's great to be here again and we might have a duel today i'm sorry ok well we announced yesterday that we're going to attend the conference this weekend in san jose california so if anyone has anything us to

report on while we're there to submit your comments on you tube and facebook and we'll get to him but i do have some troubling news for fans of the government has seized cash assets from the largest bitcoin exchange mt kopp god's homeland security claims to have probable cause because they were transmitting money without . a life now we have here a copy of the actual caesar warrants probably there were details what did you find that was of interest to you know well unfortunately the kill the seal a bit coins is that most people need to transfer money to be able to get them you have u.s. dollars you won't be a coin you 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 security services who filed an affidavit and said that he wants

to investigate them and seize the money the point is part of this he interestedly defines currency 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 money that's not what i reported as i think one of our first episodes i did a break down yesterday and it's just 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 to do 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 change the definition of inflation as well used to be my. money supply and now it's exchanging and. anyway. moving on.

interestingly enough just a few days ago there was a war on professors they made some really negative comments about bitcoins they said quote they're swimming in unchartered waters when it comes to its legal and regulatory situation and that the most obvious question is whether bitcoins are even legal. and as we know c o two c. commission report children came out a few days ago he said he wants to regulate big call ins and the commissioner of the to be a d.c. 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 recruiters 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 is as always they're saying all this stuff comes together exactly that's all we have time for us are a bit going fans. now

it's been a day of trends and reversals on prime interest we looked at subprime as number one hedge fund shorter john paulson he's now flipped and is betting out on the bailed out jesse's will emerge from conservatorship the list of concerns clients is growing longer with china the fed and j.p. morgan joining the fray we talk with gerald solent today about the number of trends he's tracking from u.s. dollar troubles to global monetary policy to our fed chairman exit strategy and we talked about the cost of emigration with well mcbride and michael coleman and finally we had 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 the everyone at prime interest and carry on boring and a great. real damage and complexity of this oil spill was not something you can grasp just by looking at dirty birds we have between four to five million people in this directly affected area of the coast and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're open for business if b.p. is the single largest oil contributor to the pentagon the us war machine is heavily

reliant upon b.p. and their oil this is a huge step backwards for the marker sea it's a step forward for oligarchy carex it is toxic is a look a lot like spraying in vietnam it was and it was not a picture that either the government or b.p. really wanted to have out there i don't want dispersants to be the agent on. this. dangerous experiments on prisoners they want to make money and they have to use healthy guinea pigs in the regular society they're not able to use prisoners i mean more they wish they could. drug tests on human guinea pigs. paid to call deadly pills he didn't pass away he was killed.

he didn't pass away they let him keep. his pharmacy really about helping people. and. play. it. and. play. and.

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the guantanamo bay hunger strike enters its one hundredth day the number of inmates refusing food is increasing and the use of force feeding has been condemned here doxie we have extensive coverage of a situation ongoing at the camp. a million dollars a year plus bonuses russia's security service releases phone conversations the alleged cia agent arrested in moscow was offering his potential recruit. recession for a second time since two thousand and eight but some economists and the eurozone ticking time bomb it's the latest blow to president after a tough first year in office.