if you're. going to take three. or three. three. three. two or three. old freeboard video for your media project c.e.o. don carty dot com. good afternoon and welcome to prime interests i'm perry and boring it in washington d.c. let's get to the prime headlines of today. what the frak mcgraw hill of the owner of standard and poor's is embroiled and another scandal but this one deals with a price fixing in the energy markets a decade after

a similar tarp charges were leveled at the firm the european union it just wants another and best against it companies may have submitted false trading data to the energy division up liberal hill which is called in order to manipulate prices i'll talk to tyson slocum of public citizen energy program and just a bit about the energy market manipulation. and housing prices are up according to the s. and p. key siller index which gained one point seven percent coming out of far above expectation just keep in mind of the foreclosure pipeline has effectively been stalled by the big banks because they're scared of new regulations that are coming down the pipe that means housing inventory is being kept artificially low which we can thank for higher home prices along with the fed's eighty five billion dollar a month subsidies to the financial industry and speaking of housing and fannie and freddie are on the chopping block of a partisan and group of senators want to wind down the mortgage giants and replace

them away as well another mortgage giant is new and busy will be called the federal mortgage insurance corporation and the newly revised proposal would reduce the potential for lenders losses in the event of another financial crisis well if it smells like a fanny and it walks like a friday you can fool we're going i always history rhymes to preserve the illusion that this time it's different and here is what's in your prime interest.

today we are going to focus on the financial aspects of for a king and look into energy market manipulation but first here ian is going to give us some background on just exactly what is. when it rains the poor. is under delusion of federal regulations the obama administration is considered to be an a class of its own when it comes to publishing economically significant rules in the federal register but interestingly enough there is very little federal regulation around of fracking but before we get into that issue let's break it down ideology fracking is the procedure of creating fractures and rocks in rock formation by injecting fluid into cracks to force them

to further open the larger fissures are allow more oil and gas to flow out of the formation and into the well bore from where it can be extracted or simply known as fracking this new technology is used to extract hydrocarbons that is petroleum and natural gas from shale rock two thousand to ten thousand feet below the earth's surface first deep wells are drilled straight down past the aqua for into the shale and then horizontally then millions of gallons of fracking fluid are injected into the earth at high pressures to crack the layers of shell bronx this freeze traps hydrocarbons that are then extracted so let's talk more about this fracking fluid it takes one to eight million gallons of water to complete just one fracking job mixed in with that is another forty thousand gallons of chemicals including carcinogens and talks and such as radium that's in all particular gas that in formaldehyde during the fracking process these talks and toxic chemicals leak out

of the shale rock and they contaminate groundwater and drinking water. now one very interesting fact is that fracking is exempt from the federal safe drinking act which is a significant regulation this bill was passed in two thousand and five when dick cheney was the vice president of the united states prior to that he was the chairman and c.e.o. of halliburton and who are the biggest beneficiaries of fracking well how burden is one of them not to draw any conclusions here these are just the inconvenient truth there's also no federal requirement that mandates companies to disclose exactly what is in their fracking fluids senator bob casey from pennsylvania introduced the frak act to bring more transparency and federal regulation to fracking. fracturing bill which is basically two one is disclosure and one is regulation and disclosure

i think we're going to make progress in terms of either an act of legislation or other changes but we also have a lot of cooperation we're seeing companies that are saying we know we have to disclose. the list of chemicals and provide a lot of public disclosure the tougher issue and more conflict will be on regulation i think we should have a national standard and have regulation but other members support the business senator rob portman would like to see natural gas fracking expanded to create jobs and increase you as dependence on foreign oil. people are really excited about this it's bringing back jobs good paying jobs allowing people to stay in these communities and be able to raise their families with not just a living wage but real hope for the future and it also will have an effect on our gas prices we have an opportunity here before things get worse to come up with a different solution a sensible national energy policy that stops our dangerous dependence on foreign oil and leads to more domestic production and therefore prices we can afford at the

pump there are five hundred thousand active gas wells and the u.s. fracking produces about three hundred thousand barrels of natural gas a day but is that worth the environmental hazards that come along with fracking over one thousand cases of contaminated water has been documented in areas near fracking sides and only thirty to fifty percent of fracking fluid as recovered during the fracking process leaving the remainder to be evaporated which can produce acid rain hopefully this rain that doesn't pour on you bob back to you.

for more on fracking and us natural gas reserves we turn to tyson slocum director of public citizen's energy program tyson thank you for joining me today great to be here we have an interesting speech by obama today and how does this fit into your organization's view on the energy markets oh well first there's no question that obama made a huge landmark speech about climate change in two thousand and seven the supreme court ruled it was a conservative supreme court ruled that the environmental protection agency must regulate greenhouse gas emissions under its existing clue. interact authority yes obama should've went ahead with that right when he was elected in two thousand i must harder than absolutely i think it's a little too little too late because it's going to take several years for these rules to come into effect and then there's going to be litigation challenges to those rules so this just kyoto redux i mean are we going to see this tabled forever no while i think it's going to be years before we see a final rule and that final rule is going to be challenged for another couple of

years and so you know public citizen worked with members of the senate on the climate protection act of two thousand and thirteen that we would have liked to have seen the president endorsed today because a legislative solution we could enact within months and it can be effective within months and what about fracking what is your own organization's view on fracking in general well we fought the dick cheney led exemption effort in two thousand and five now he's famous for saying that the american way of life is non-negotiable so should it be negotiable internal energy independence it should definitely be negotiable about whether or not our communities have a right to clean air and clean water duke university just came out with a big landmark study on the health impacts of fracking and found significant cases of water contamination from the fracking process the fact is the states are not up to the task to protect water resources we have to have the federal government step in so far the lobbying of the oil and gas industry has trumped the interests of

public health and the problem with president obama's discussion today on energy policy is that he talked about rapidly expanding export capacity of natural gas in the united states and all of that is going to come from fracking and so while obama didn't talk about the need to regulate fracking under federal clean water laws he essentially has put the pedal to the metal in terms of accelerating domestic fracking in the united states because of his desired goal to see a significant imports in liquefied natural gas which is the way to us in order liquefied natural gas that does burn cleaner. and crude but certainly coal is that in your opinion would that be at least a little bit more viable solution to our oil dependence well yeah i mean there's no question that we've seen a mission reductions in the united states as our electric power fleet has relied more on natural gas than coal because of as you know the emission benefits of gas relative to to oil and coal the problem here is that there is no such thing as

benign fossil fuel extraction anytime you are hydraulic fracturing tens of thousands of wells injecting chemical fluids into the ground you're going to increase the risk of water contamination and localized air pollution and methane emissions which is a major greenhouse gas emission so when our desire to become a natural gas export and stay i don't want to see us have to start importing clean drinking water well that makes a good point but alternative energies themselves also have caused their environmental impacts of the manufacturing of solar cells even when turned by turbines killing animals and birds for instance and having a blight effect on local populations where there is there anything thing as a perfect alternative energy well i think the key is what is the fuel source for natural gas if you have an automobile or a power plant that's powered by natural gas you have to constantly refuel that power plant or that vehicle in order to make it operate with wind solar geothermal

your fuel source is unlimited and it is perfectly clean and so while there are of course so you'll need to capture a better absolutely and so i think that there's no question in the entire lifecycle of say a solar panel versus say a natural gas power plant you're going to have far better. environmental benefits from a solar panel than you will from natural gas so i just want to touch on something you said this event that we need federal regulation in these kids we've seen the e.p.a. have a number of problems because they have a revolving door where you. have people for months on tow and other corporations that are they don't have the best reputation reputations and then they go into these government agencies and they had them do you see a problem there well yeah i mean that's why public citizen sports a very strong revolving door limit so you have to wait at least two to five years after you serve government service before you can go to an industry that is

directly regulated by the agency that you used to serve and i think that is what the public needs to make sure that former tyrant king officials aren't getting preferential access and treatment on behalf of their new industry clients excellent and if we could just get into carbon trading real memories we would have like twenty seconds what is carbon trading going to be in store for the u.s. right now it's not a big place you know i don't see it really playing a role where it doesn't need to be a part of the proposed regulations that obama announced today and based upon the collapse of the carbon trading market in europe i think that we're going to see a move towards more government set prices rather than the market setting the price on a daily basis ok we're going to cut out right here but we're going to be back so stay tuned because we continue our conversation with tyson slocum and get into even more energy market and price fixing shenanigans it seems there is no country for old oil speculators then perry in an idle over some very angry birds and the next killer

mobile left. i would rather as questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question more. thank

. you no. thank. you.

and we are back out with tyson slocum director of public citizen's energy program tyson let me ask you about this oil rigging scandal that seems to be emerging here it's kind of reminiscent reminiscent of something that happened ten years ago what's this all about yes the last month the e.u. announced that they were investigating three major oil companies shell b.p. and stadol oil for price fixing key european oil benchmarks that end up affecting oil prices and chemical prices and hundreds of other products on u.s. markets as well course and what they say is that these oil companies who voluntarily report their trades to a for profit news publication called mcgraw hill and they have an energy division

called plaid shirt so they were conspiring with each other to mislead plats to set prices that were financially beneficial for the oil companies but financially disastrous for consumers now as you said this sounds a lot like what happened a decade ago in the united states right around the time of the enron scandal in california federal regulators in the u.s. discovered that natural gas companies were colluding with one another to falsely report data to platts and what happened with enron just refreshment with iran ended up going bankrupt but not before of a stall billions of dollars from consumers through deregulated natural gas electric power markets but the key here is that this for profit media company oversees this benchmarks that affect. the price is that millions of consumers pay and it's clear

that the same scandal that if that affected them in natural gas markets a decade ago is now going on an oil markets so there's a problem not only with the oil companies and possibly the financial companies that are conspiring to make a profit but with the media company mcgraw hill and plots because they've got bad internal controls if they're allowing this to occur again and certainly internal controls have been a constant theme throughout our financial crisis and i would mention that as in p. which we have all these problems with this rating agencies also division of mcgraw hill and this reminds us of libre i mean we have a similar situation in london where we have a group of people who are conspiring to not necessarily conspiring but they fix prices and apparently they did that for financial benefit so what are the parallels here it seems like in the energy markets in financial as well there are a lot of broad parallels going on here oh there are almost exactly the same when when a select few powerful entities have enormous discretion without regulators

looking over their shoulder to set the prices whether their interest rates or whether they're benchmark oil or natural gas prices that we all as consumers pay the fact is that it's clear that these entities are too big that we have inadequate regulatory oversight over them so one of the public citizen reforms is that these voluntary benchmarks that are overseen by plots need to be removed and be fully regulated by u.s. authorities i have to say i'm somewhat skeptical of regulators being able to rein in these problems i think one of the proximate causes here is the federal reserve in the fact that they've been basically giving away so much money there's so much money to be made in the oil markets in the commodity markets and in the financial markets is it really possible for a bureaucracy to reign in this kind of corruption well i mean definitely technology the technology advantage at the traders have puts u.s. regulators at disadvantage a. and so many of the algorithms and data day trading is done by super fast

computers are exactly and regulators are always ten steps behind there's no question that the fed's policy of easy money results in lower interest rates which means a lot of entities are chasing opportunities to make more money and what we've seen is a huge commodification of of these energy markets we're seeing entities moving into them not to hedge their exposure to risk but in order to make a profit and that is what is of concern to consumers ten years ago eighty five percent of the trading activity in these markets were end users they were companies pulling the stuff out of the ground or they were airlines or other large users today eighty five percent of the presence in these energy markets are financial speculators the big banks and so it's clear that the speculators have have are dominating the trading volume and that is a is a huge headache for consumers well it's certainly the case that the paper markets

are much bigger than the after actual markets both in oil gold whatever you look at and we touched on briefly before and we have about thirty seconds carbon trading ok the exchanges are probably not going to work they're failing in europe not big here what's the alternative well the alternative is the public citizen plan the climate protection act of two thousand and thirteen where the government sets a carbon tax or fee in the case of our bill it starts off at twenty dollars per tonne of greenhouse gas emissions slowly goes up to about thirty four dollars a tonne and that way you have a price certain so that the market and all the players in the market have predictability and the government collects that revenue can return it to consumers in the form of tax breaks and make investments in sustainable energy infrastructure tyson that's all the time we have thank you so much for joining us here my pleasure .

and it's the daily dose of bob inglis are you angry man. all right first we're going to address viewer questions from you tube then who is seven forty six that wants to know why are these economists what are these economists so scared of deflation do they fear of recognition of reality i don't this is something we talk about your a lot deflationary prices in terms of what consumers actually have to pay for goods and services they can go down and that's a good thing for you and me but why does that's not good for the verse and selling the idea not necessarily and in the keynesian world where consumer aggregates matter in other words we have to stimulate demand in order to have a growing economy and were g.d.p. itself is calculated to reflect this reality the central bankers know that their

game is up if they allow deflation i think it's hard to make this argument but deflation in my opinion is a great thing when you go when you go to the store and you want to buy a t.v. and it's on sale or you don't say no i don't want it that has been a great thing about the tech industry and prices certainly come down in the tech industry despite the price inflation that we have because of the monetary base and money supply expansion but that's in spite of all this the natural tendency toward all prices is to come down so and why are central bankers afraid of this well because it puts them out of their their money printing game they have they need price inflation to justify their existence it's really that simple all right so moving on our favorite mobile app which is angry birds. was made by rovio entertainment and it's probably going to see some changes in the near future because they. are largely over stalled the angry birds mobile app and took it from beginning to where it is today he'll be leaving the company to start his own

venture are so what would you like the next angry birds game to look like and like to look like something angry bankers or you know we we've seen the bankers come under a lot of fire especially j.p. morgan chief jamie diamond he's got a tech he's going to talk by shareholders he's going to tell by the government because of the london will. you have to come in i mean this is ridiculous bankers have a very well i mean c.e.o. pay they're just complaining about nothing and they're presenting the public image of discontent well of course they're going to be upset if a case is not settled in their favor when they come under scrutiny but overall bankers have a pretty good c.e.o. went up twenty two percent from last year the median banker c.e.o.'s five hundred fifty two million dollars i mean they really have nothing to be angry about who really should be a homeowner so if i have the choice to make my own angry birds game it would definitely be angry homeowners foreclosures are up and then we have the independent

foreclosure review process which really left a lot of homeowners in the dark they had they're getting five thousand dollars every goes out of their home and the entire process which was overseen by probably toward financial group other shadow regulators like prosper pricewaterhouse coopers and a lawyer there he spent two billion dollars and the review process was just canceled so that's why there was terrible news on the dollar it's not only that the states have it out for homeowners a lot of states are passing bills that. overrides legal protections for homeowners in florida york and new jersey all three of these states have passed bills that speed up the foreclosure process i mean it seems like all odds are against because people tell you to the banks well that's happening the banks are actually trying to stall the foreclosure process big. because they see these new regulations coming down the pike and there are a little bit scared right now as well they should be so this gets back to the fact that what are we going to do in this situation i don't think i mean how much are

they being stalled because there they are is speeding up at the last couple years with the housing prices picking back up just as you might over the last few months and this is actually causing a decline in increase in the foreclosed property which causes a decline in the amount of units available for sale so i think that's one of the contributing factors to why we see these housing prices and why we see the case shiller index up today and let's face it these guys are the most astute buyers of houses right now are the carlow group and others who have formed funds to buy these big properties form them into rental properties and now what are they doing with them they're going them off the rats are leaving the ship well also we could have an angry central bank ok all this basically comes back to them. i would say so i mean he hasn't met his unemployment stanley fischer or mario draghi any one of these guys could be considered as angry because guess what they're not really living up to the expectations that they have yeah i totally agree with that so what

we did was we made our version of angry. and. it seems that the program is not favorable towards gold that sound running into a pile of gold the boy on market is down five percent from last week after that conference he had well i guess he's running scared i guess that well thanks for joining us if you want to follow us on facebook we're at facebook dot com slash prime interest and you can follow bob. twitter and you can follow me at perry and. thanks for joining.

it was a great fracking day here at prime interest ok we just had to put that one in but we did learn how mcgraw hill is under the european microscope for alleged price fixing in the energy market and obama waged a war on coal it just a week away from the barbecue to build a fourth of july holiday but at least fracking is delivering natural gas to as it substitutes two out of stating the water supply according to it and focus and finally we discovered it just below the angriest bird is sorry bringing to you that you haven't met the prime and unemployment directive daybreak part of our get out of your mind thanks for tuning in from everyone at prime interest i'm terry and boring i'll be back here tomorrow.

we'll see british style. sometimes because we don't. market why not. why no one should really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars report. is it possible to navigate the economy with all the details and to stick from miss m. from. and media hype will keep you up to date by decoding the mainstream status if in your mind.

larry king now from our man said is the man behind the make up of the woman or just no or five their quality of stars is measured equally by people who dislike you and people that love you but golf icon sets the record straight i saw this take place on t.v. i go i know you're playing for this now i think i've been playing for about thirty school shootings plus one name would you give me if i were taking another salvador dali party. i love that. next on larry king now. welcome to larry king now today's guest is marilyn manson a man who needs no interest.