good afternoon and welcome to prime interests imperium during the broadcasting live in washington d.c. and let's get to our prime headlines today. citi group is heading to iraq after ten years of war and one point seven it really in dollars spent by the u.s. that's too big to fail bank is going to take advantage of an estimated one trillion dollars and infrastructure spending this will be a first adventure into a new country and six year and according to a city executive with business in iraq will come from rebuilding roads telecommunication networks electricity and water infrastructure but violence continues to escalate over one thousand civilians and security forces killed last month alone it should be a good year for you grokked g.d.p.

broken window fallacy notwithstanding. and one of the front runner or bernanke used replacement of the film of the fad janet yellen is being called into question by a bloomberg news organization notes that a fed of vice chairman which is the title go and hold has a never become the actual chairman never mind that there has never been a woman other front runners include timothy geitner who would have publicly downplayed the possibility as well as dare we say larry summers and don't count current head of the bank of israel stanley fischer who is leaving the post in just a few days finally speaking of the fed either bernanke in koza job owning and the f o m c the last statement interest rates are up and i mean the cost of a mortgage car loan and general collateral repo or anyone sitting on a fixed income does it go way too. but bernanke utah interest rates would not go up

until twenty five pm so no need to worry here. and here is what the near prime interest. the loan debt is the second largest source of household debt sending out a total of one point two trillion dollars to make matters worse subsidize the federal student loan rates are set to double on july first prime interest producer adjusting underhill went to capitol hill and had an update on congress's attempt to address this growing issue. rachel make of ourn

a political science major at the university of florida will graduate next year tens of thousands of dollars in debt she's alarmingly close to her borrowing limit i knew that i would have to take loans out that is part of the reason why did i never going to a state school as opposed to a private school where my loans would be even higher but i did and i didn't quite realize the extent to which i would be borrowing a but definitely having those loans is always in the back of my mind and i know that i have to pay them off as bad as your situation is it could get a lot worse next week if congress doesn't act by july first rachel and over seven million other college students will see their subsidized student loan rates double from three point four to six point eight percent last month house republicans passed a bill that would let the rates on the federal loans fluctuate with the yield on the ten year treasury under this measure students would not be able to plan or predict for the amount of debt they would end up with so the house bill isn't smart and it's not fair. i'm glad the house is paying attention to it but they didn't do

it the right way at the other end of the spectrum is a bill introduced by senator elizabeth warren to cut interest rates on student loans to near zero i really like elizabeth warren's idea of. interest rates at the same rate for the banks let's face it the banks get a great deal when they borrow money from the fed in effect the american taxpayer is investing in those banks we should make the same kind of investment in our young people who are trying to get in then entered into or trying to get a magic ation astonishingly even the commercial lenders that are reaping substantial profits from making private student loans are getting their money from the government at these near zero rates private banks and the government make the kind of money they do it very low borrowing at very low interest rates and make billions of dollars is fundamentally what we have to address one private lender sallie mae has an eight point five billion dollars credit line from the taxpayer

funded federal home loan banks that the federal home loan banks some of them are lending to sallie mae at a fraction of one percent and sallie mae's using that to do private loans at a full market rate and producing enormous profits if we can lend those funds to selly maybe for those loans at a fraction percent why can't we when those funds directly to a student and enable them to take advantage of those enormous savings this approach would certainly help to reverse the trend of rising student loan debt student loan debt has nearly quadrupled since two thousand and three outpacing both credit card debt and auto loans payments on the loan start after graduation but with record levels of unemployment and underemployment for young college graduates making these payments is a struggle to neha delaney graduated from the university of virginia two years ago now she is underemployed working part time in a coffee shop to pay off her student loans i think it will take years to pay off

probably. i'll be in my forty's before finish paying them off and once i get a high paying job really soon then it wouldn't be an issue of saving money is not an option for her i mean i live at home which is very nice of forseeable future it doesn't seem like you know paying rent on an apartment is really an option for me a long lasting burden of loan payments means that young adults can't buy a car or purchase a house this doesn't just hold back use it towards the entire middle class and the drivers of economic growth and new jobs in washington just seen under him are two. things just in the senate has not scheduled a vote on student loans before the july first deadline this means raids on new loans will double on monday today democrats announced that a vote on a one year extension of current rates will take place on july tenth and they could rush or actively lower rates after the hike next year.

i. i. i. now a lot of ink and pixels have been spilled over the edward snowden and its n.s.a. whistle blowing affair speculation a bounce where is he what else has he leaked that has not yet been revealed but few have looked into the implications of what massive amounts of data collection and the resulting implications from all the public disclosure of it means for our financial system so here to discuss this with me is political commentator sam sax sam welcome all right when we have a lot of data coming out but what does this mean for our financial system are there any direct implications and what might be the indirect ones well first i mean let's sort of what we're learning as a result of these disclosures and that's that we have

a massive surveillance system that depends in large part on the private sector on company on companies that you can buy stock in and things like that so there's something like five million people have security clearance little bit over a million of those where those are words i double figures aren't those are incredible figures i don't chose if you're if you're collecting data if you're basically trying to intercept every piece of communication from your cell phones to e-mail it requires a lot of a lot of manpower to do that so here here's some numbers here about seventy percent of the intelligence community's secret budget goes to for profit companies like booz allen one hundred seventy million dollars that's how much the top five executives that's how much the top executives of the top five defense contractors made last year which is forty five percent more than the top five bank c.e.o.'s this is bigger than wall street we're talking about almost bigger than wall street and we're not into the trillions yet they were talking over one hundred thirty million dollars it spent. in lobbying by these by these industries these are

industries that are going to be directly affected by these disclosures and what sort of public debate might come out of these disclosures whether or not americans are a little bit weary of massive taxpayer taxpayer funded federal contracts going to private companies to surveillance well certainly and one of the problems that we have is that any time there is a situation where there is a security leak sometimes there is fault that it actually increases government surveillance or government involvement in our daily affairs do you see any direct consequences of that well yeah it could be it could go both ways we know that from these documents about the prism program about how the government is working with some of the biggest internet providers in the country to collect information people might reject these big companies now move right what might happen with sopa and people in all these kind of cybersecurity bills exactly people have been awakened to this issue this issue in those bills will take effect on the flip side here you're going to see a lot of these intelligence agencies trying to crack down on whistle so there's going to be a lot of pushback you have former former n.s.a.

chief michael hayden said on this network that you know he supports continuous monitoring of employees within the intelligence community to make sure that there's no one usual behavior there that requires more technology that could require more contracts that come out of this so it could actually work the opposite it could it could fuel even more private contractors jumping into the you know the surveillance game let's talk about the big picture here because the government is able to borrow right now ten years out two point five percent it's ridiculously low it's been kept at this level by the federal reserve could a scandal like this emerge and cause a crisis of confidence in the u.s. dollar i mean what could look at happen with well look i think there's a long trend that we've been seeing with the united states economy over the last thirty or thirty years or so it's not going to happen overnight but i mean long term you know right right so we used to be the world's biggest lender of money and now we're the worst because borrower of money so countries used to depend on. a lot more than they do now and you're seeing with countries ignoring these extradition

requests from the united states you see them having less and less dependence on the united states in fact ecuador today breaking this free trade you know saying that they're not interested in renewing this free trade deal with the united states because they are they don't want the united states using it to blackmail them to hand over snowden you know these are all signs of countries starting to reject you know the united states economic power around the world so you could see. ignoring extradition requests to be the first in a long series of steps not necessarily cosily but showing a trend of people maybe down the road saying you know we don't need the u.s. dollars or currency reserve anymore sure and let's let's talk let's get away from the financial aspect here what are the other implications for the snowden leak with regard to our own security here in the u.s. i think it's going to be remain remain to be seen if you look at public approval polls for this sort of surveillance programs you don't see this sort of outrage you might expect to see you know it's a little bit frightening there yet it's a little bit frightening so whatever changes if people are going to move in to try to try to more encryption and you know buy more encryption software if people are

going to use different internet service providers that aren't part of prism or don't want to work with the u.s. government on this what is that even going to be possible i mean is there going to be an opt out provision i mean when when the when the controls go in and when the controls come down from the central government it's really hard to avoid them if there is such thing as a private internet that could survive all of this so these are all going to be based on laws and now that these what used to be secret laws are starting to come out in public which is the only debate it means people are going to know what's going on and they can pressure their lawmakers and they can say look we want to have portions of the internet that we can use that are we're not going to get surveilled on when we use we don't want to have heavy penalties on an internet service providers that refuse to hand over our personal information whether or not that's going to cause people to act and do anything remains to be seen but at least it's out there in the debate's going to be going to happen the same we only have a couple of seconds here but any last words on the snowden affair. you know i think this is

a lot of people right now are focused on where snowden is and i think that's a legitimate story but we need to stay focused on what snowden has been saying one of these leaks have said in the implication that in metal that could have significant impacts on the economy and sam thank you so much for joining us because that was a political commentator sam sachs coming up talks to some helicon about the supreme court's decision to the next the defense of marriage act as well as its decision on the voting rights then terry and i do over snowden stay tuned.

here is mitt romney trying to figure out the name of that thing that we americans call a dollar. i'm sorry i'm just a guy who cares an awful lot but you sir are a fool you know what that is my self. no one wishes to feature a me on liberal democrats. can securely to the. you know the corporate media distracts us from what you and i should care about because they're profit driven industry that sells a sensationalistic garbage he calls it breaking news i'm having martin and we're going to break that. download the official publication so choose your language stream quality and

enjoy your favorite. if you're away from your television in the car with just doesn't do so now with your mobile devices you can watch your auntie anytime anywhere. yesterday will be marked as storage today for gay rights activist the defense of marriage act which denied a federal benefits to same sex married couples was deemed a net constitutional by the. court for this case united states was actually a tax case you know the ones our challenge the constitutionality of doma after

having to pay over three hundred thousand dollars and federal estate taxes that what i have been exempt of the government recognizes the couple's same sex marriage here to talk about the tax and financial implications of this supreme court ruling and. he is a member of the board of directors of the american conservative union and a former senior bush official thanks for joining us thanks for having me so you're a conservative and you support striking down doma why is that why i believe in giving the states option the right to make their own laws including to marriage so in that regard to the supreme court made the right decision yesterday and holding up the state's ability to determine who they want to recognize as a married couple and the supreme court ruled that congress has no right to undermine a state's decision somewhere as to how you feel. i have a saw it here i've even when they're speaking on yesterday it's a court decision. children born today will grow up in

a world with. and those same children who happen to be gay will be free to love and get married. with the same federal benefits protection and everyone else. because this case involves federal tax implications and federal programs benefits of federal programs is it really fair to say that congress should have no saying and how the states determine marriage well it's complicated the existing law is that we allow states to determine who can get married and that's why the states vary sometimes you can marry at age sixteen or seventeen eighteen sometimes there's parent or consent required for minors etc but we vary state to state so it's complicated because you have state licenses that are being issued to married couples but then you have federal benefits and obligations that are. from those state issue marriage licenses so what's going to happen now after yesterday's supreme court decision is not only are folks like the plaintiffs in this case going

to be able to inherit their spouse's property without tax implications but they're also going to have to now file jointly as a married couple and incur the marriage penalty and actually pay more in taxes because now they won't be filing as individuals but rather as a married couple that will put them up into a higher tax bracket so there's both benefits and detriments to yesterday's decision for married couples. can you break down how the tax bracket works and how it's progressive on the married couple sure basically right now same sex couples will now have to file jointly either jointly married or jointly as a married couple or separately but still as a married couple way before before the law they used to file separately and their income would be representative only of them as an individual now they'll file as a married couple and then if you're over one hundred fifty thousand dollars a year together which a lot of couples are that's going to put them into

a higher tax bracket and those higher tax brackets are very shallow and will put them into what is called the marriage penalty will have to pay a higher tax rate so it's a win morally for same sex couples that they now have legal status in the federal doma law cannot discriminate against them but they're going to it's going to hit him in the pocketbook well there also is another advantage to this because they'll be less complicated in states like new york you could file jointly in the state tax but same goal for iraq it does kind of streamline that process and people are happy to you know have a little more complications that can save more money and that will be a possibility anymore what about social security are there any financial benefits to that well that's the next issue there now for couples that have their marital status as married by the states so security implications will now be there. that they have to honor those couples including same sex couples as married couples will be spousal benefits survivor benefits of the crew from those marriages so if

a married and same sex married couple if one collect social security the other one is to see if they will now be able to collect the survivor's benefits that was a benefit that's right and this case started as a dispute over the the state of the estate tax so-called death tax and now seems that same sex married couples will be able to inherit spousal states without the marriage the death tax penalty could there be any complications there can be and there always will be of course there will be problems related to other survivors you know children of the deceased and other family members who may or may not recognize the marriage and then you always have the complication of couples who are married in states where there is same sex laws and then states where there are not and so let's say the new york couple was married in new york where it is legal moves to florida where it isn't recognized and then again others who are making claims that

a state may make challenges and now not the entire law of doma was repealed what what's left what's left is still there are the portions are left are actually largely to the tax code so the doma law still keeps in place for example the other tax laws that relate to taxing of couples and so that's why again these same sex couples will be subject to the marriage penalty if they hit that one hundred fifty thousand dollars per per year income level which many will and we have just about thirty seconds left but we have to talk on prop eight which the supreme court said they were not going to rule on because what it is it's a win is a lose where are we with it's complicated the prop eight the supreme court decision was that they were not going to review the challenge to prop eight prop eight was passed by california voters to ban same sex marriages the deep. the folks in california challenge that they won in the california supreme court striking down prop eight that was upheld by the federal court in california the ninth circuit and

then the supreme court refused to hear it so that effectively struck down prop eight but it was a weird decision because they didn't say anything to the merits they said on procedural standing issues they were there because the california state refused to defend prop eight they said there's no standing for those who brought the challenge and the appeal to the supreme court so it wasn't a clear victory for those who support marriage equality but it was close enough well thank you for joining me this is how kind he's a member of the board of directors at the an american conservative union thank you . and it's time for the daily deal with bob john i just have those two words i wish i

knew his middle name because it be a little bit more dramatic live a really bad germanic oh it is because you know what almost two years into the m.f. global debacle you know this is something that is passionate to me personally coming from the futures industry john corazon is finally being prosecuted by the c. of d.c. you know these are not criminal charges these are civil charges but still the sea of d.c. is demanding a jury trial see him b.c. is reporting on this and they actually interviewed children who is the commissioner and it looks like we might actually get some justice on this unfortunately see n.b.c. reported the amount of customer funds missing as one hundred billion it was one point six billion but what's a factor of one hundred. that i come of that is i mean two year is maybe it's too little too late i don't know what it's never too late because this could actually send a message and as we've talked with a mentor the other day. necessarily a deterrent because no criminal who can pick who commits these kinds of crimes thinks that they're going to get caught but there is justice and justice needs to

be served well i sure hope so. well now the question that i'm going to pose today is is snowden being protected by the cia some have alleged that the department of justice purposely sent documents with the wrong information for snowden which is the way the process was that his middle name well they said that his middle name was james o'keefe on his passport it said joseph and then further when they sent the. numbers over to hong kong they didn't include the passport or so then hong kong asked for clarification they never received it and this is why hong kong said that they had no legal basis to block his departure i mean there is kind of there is an age old battle between the cia and the n.s.a. for phones and maybe the cia wanted this guy to come out and kind of blow the whistle on what the n.s.a. was doing who knows. i mean you know i mean i don't know i i mean it hong kong also

said that any suggestions that deliberately what snowden leave the country was totally untrue so i find it suspicious that in hong kong statement about snowden they talked about u.s. activities that were snooping on hong kong so there might be a little bit of director of retribution there but this is a financial show let's get to the financial aspects of all this so what are what is it and i think there's definitely a lot of money in stake here a lot of government contractors involved in money and so who knows i just want to pose the question people thinking exactly that's what we do question more right. but i want you also to look out for a flying a sports car that's coming your way honda is looking to enter the business jet market and they're calling them they're flying sports car i don't know if they can rival the markets here in the. u.s. the u.s. has the largest demand for business jets what do you think u.s. does have a big demand for business jets and there's even

a leasing market that has been on the rise which was decimated during the financial crisis so i think there is business out there for and good for honda let's come into this well i think it's also important to realize that honda's new jet has interesting features too where the ground with the jets on top of the wings ok so they'll be less turbulent turbulence let's be ten percent faster than the average jets but also being going. because i mean you could go into a space maybe but i think we have we actually have a graphic bernanke and of a little delorean you know you really do yeah i did because i just wanted to show you can go back and play for the money and save us from the financial crisis so late so in my view no hyperinflationary scenario right now if that would have happened or he won't let us run out of money that's for sure never so that's for joining me on this bob if you guys want to follow us on facebook facebook dot com slash prime interest in follow bob on twitter at english p i follow me at perry and

r t thanks for joining us i do. and it was a dangerous day here at prime interest first we learned that city as heading to war torn iraq to take part in operation broken window and fed vice chair and janet yellen is facing some headwinds as she looks to take over bernanke he burning legacy and his rates are rising including on student loans and still then might just be another finger of instability on our path towards higher borrowing costs for uncle sam. sam sam. had some words about the death tax finally bob and i

barely got away with our sanity after looking into the snowden affair thanks for tuning in make sure you come back tomorrow looks like. might not get away with this customer run murder. vaporization after all keeping it in your prime interest i'm parry and boring have a great night. well . science technology innovation all the list of elements from around russia we've got the future covered.

try to green with the united states in the hardline response to washington's warning against granting asylum to edward snowden remains stranded in a moscow airport. and on the heels of snowden's revelations about britain's massive snooping operations it turns out that u.k. police are secretly monitoring social networks on a daily basis. destruction is food in egypt as the country braces itself for mass war. and anti-government protesters divisions between your position and the ruling elite.