ecuador preemptively we now know a trade pack up for discussion in congress with his representatives saying it was a new and shipment of blackmail the economic impacts could be served at nearly half a backward or export market depend on the u.s. but the pact already face in our pair of whole battle for renewal according to usa today noted as purported to be any moscow airport after flying from hong kong on sunday no need to shrug this off as a one off whistle blower as they are we have an interview with the producer of the atlas shrugged movie john as leo lauro to share in just a bit. ok back to the way a show of the european sovereign debt trade one that john corazon detained at the brokerage firm m.f. global just under two years ago and the futures and history regulator the see at the finally decided to bring charges civil though they may be but in a damning complaint filed and federal court yesterday

a former new jersey senator and governor is alleged to have had a hand and the one point six billion dollars loss of customer funds and these are civil charges not criminal and the trustee of the bankruptcy who was who used to be an f.b.i. director and recently requested to be removed from the kate so is this past being set for a course and a prison sentence to see we talking with mark jordan of the misses institute about this and other matters and just about. and here is what's in your.

russian born and moved to the united states in one thousand twenty six and became an iconic author and philosopher her magnum opus was atlas shrugged which convinced us that self interest is in everyone's prime interest in the novel has been made into a three part movie part two was released last year and part three is currently under production earlier i spoke with john aglio lauro the chairman of un holdings and the producer of the hour shrugged movies the title of part three is a of a which is plato's law of identity i first asked him about iran's philosophy objectivism and how it fits into atlas shrugged. let's try to do objectivism and one more. individual. and the other side of that would be government or collective it's so in the individual islam. versus collectivism objectivism versus government and collectivism is. it's

a problem because it stifles innovation freedom individual. so it's just the role of people interacting with people without the government. giving in between oh well there's a role for government i mean they should be there to protect the individual. they should be there to defend the individual against foreigners but attack them and so forth you need courts you need regulation in that sense but separation of church and state has been a good thing for the world and separation of the economy and government that's really the goal now. and there's a fine line there. but you got to get through it now another book that i ran wrote is the virtue of selfishness which she talks about and shrugged as well and obama has openly criticized this let's take a look at that all right. the

socialistic. one. i want to make a virtue out of selfishness. is this theme of the virtue of selfishness adequately protected in the movie. it's sad it will be portrayed in the movie but it's not adequately for trade and general society i think i think i had a bad hair day when she said selfishness and she was tired of having to defend but of course what she meant was ethical self-interest rational reason self-interest self-interest in the sense that you can benefit society when you benefit yourself first if everybody seriously. dug deep and got the best out of themselves and for the most part realize what those aspirations in one's life

were. they'd all be productive they'd all be employers or being actively involved in a profession and they would be helping society in general but what always comes to my mind i think if that's when you're on the airplane and they always tell you something happens put the mask on yourself first before you help somebody else and that just makes a very you know your first then you can help your child and so when you ethically honestly integrity and work toward your aspirations what gives you passion. we say a great artist a violinist pianist when you're passionately involved my god that guy has no time for anybody else every time you look at him practicing practicing he's totally absorbed in his profession he's not an easy he's not of an evil guy he's involved in brash and self-interest to be the best pianist he could become so and that's that's the sense that many. it was

a good thing that she developed the free self interest and selfishness unfortunately the negative connotations were taken from that and. all too easily attack i know and also said that the government is the most dangerous threat to man's rights and recently with what's going on with snowden and with say what's come forward to the public now how does the spend to the relevance of what she wrote about in the fifty's she expected government to be. as i said something that protects the individual not gives the individual problems and unfortunately there's good intention here but between the f a n one a national thing after another we're trying we constantly trying to monitor any navigate after yeah we're trying to navigate people's lives and people need to navigate their own lives you need to be honest one thing clearly you should not

initiate force against someone else you should not harm someone else it gets back to. don't hit the other kids don't touch their stuff and they go and roll. you're now in part three john galt is finally identified and you're wearing the tie who is john paul in this phrase is constantly thrown out during part one and two of the nobody actually knows who he is so what does this phrase represent. it's giving up it's who is john galt who know. it's going to happen anyway we have no control over ourselves we have no control over what the government's going to do what is going to hand us so why fight it who was john. and who is going to play john bolton part three would you like me to tell you if you know. i'll tell you off camera ok well tell me this much are you looking for somebody who accurately portrays who he is in the book are you looking for a true john. to disappoint the world we need to have professional actors first it

would be wonderful if the major actors read the book we're certainly going to encourage them in doing the studies that they would do for character portrayal any way to read it but it would be lovely if they came in and even had a negative opinion but an opinion learned opinion and judgment about it but we're going to start casting probably it will be an on. who will play the world john ok well you know there's not a lot of objectivists in hollywood at all and you know another thing that iran talks about is honor and guilt and hollywood actors are paid very well and you know in the end society teaches us that money is bad do you think that this has anything to do with the fact that hollywood has so many collectivist well you know there's an old saying it's. it's. it's it's in the water

it's in the genes in this case i think collectivism iran talked about it way back when she was in russia and when she was a young teenager and was thinking and writing about things she said that people like that. are. trapped and they just can't get away from. the what's in their genes intellectuals are artists there's something in the water there's something in the genes there where they have a collectivist mentality you'll see it in every election in most countries i can't give you an explanation however you look at the artists the intellectuals as a class they tend to politically go left well not only are do we just have collective us in hollywood but they take a step further and they want to tax on capital as an hollywood. for example

fracking it we just had this movie by matt damon that came out that promised land your anti fracking movie and he said and openly weber oh why do you think it is that you know we have these attacks on hollywood if you think good old could play any role in this well. again it's comes out from one's philosophic thinking at a very young age and some people simply feel believe deeply that the government is the answer to running a society and others say wait a minute government should protect the individual but people need to run their own society individuals need to be the entrepreneur of their own lives and that is a philosophical divide that we're going to work through for a long long time. so when it when can we expect the movie to be out. at this point we're still looking at happens to be a friday july fourth two thousand and fourteen friday that's what we're shooting

for independence day you know any any reason why you put it on independence day well we wanted one of the give ourselves more time in part one i had restrictions. because we had the expiration of the rights for coming up with part two. i did except a few financings from other people and i did say to them we would try to get the movie out before the election so it came out in october two thousand and twelve part three there are no restrictions we've got budget we've got a good script in the making we're going to take our time and have it because philosophically. directed as if iran were sitting there in the director's chair so we're absolutely looking forward to it thank you so much. you. stay tuned because the fed policy notably an ecuadorian trade. policy it was senior

fellow at the misses in society mark henri that's how many billions in life in the fed hospitality they are and then bob and i go over a keg or add to that. old . technology innovation called the list of elements from around russia we've gone through huge you're covered. mission free accreditation free in-store charge is free. range means free

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streets of canada. today. to get. i. i. i. it's a been a fiery week full of pressing so i would say deep pressing economic issues with the fed talk of tapering scaring down the markets then strategic press releases talking the markets back up again we have the saga of edward snowden and that as good us to our seats as we try to figure out just how much uncle sam has the goods on all of

us and just when you thought m.f. global was no longer a household word the goldman sachs lead c f t c finally and i emphasize finally goes after the very man who threw the entire futures industry into disarray this would be john to talk about all of this and more is senior fellow at the lou big bunmi says academy mark thorton mark thank you for joining us good afternoon bob it's great to be with you well let's jump into this snowden affair we have a critical trade agreement right now that ecuador has renounced and what implications does this have for the financial markets if any. well the implications for financial markets in the general economy are all negative of course the fact that n.s.a. is in invaded our rights and invaded our privacy and the fact that congress who seen the n.s.a. testimony says that we've only seen the tip of the iceberg means that this is a triple negative for the economy look at they strong arm tech companies and to

releasing their customer data. you know and that's going to upset them it's going to make them lose confidence and it's going to make them reconsider placing jobs in facilities here in the u.s. when they can go to other countries where privacy and information are respected. by the governments and so it's going to lose jobs for the economy in that these are the good high pain jobs in the economy and of course with all this data running loose and where a small person in the private company like edward snowden can access your e-mail can read your e-mail can look at your phone records and listen in on your phone calls this opens up things like the possibility of insider trading on a massive scale and then of course in terms of foreign relations you have major implications here regarding trade regulations and interactions between countries we were already involving the united states china hong kong russia cuba

ecuador and other countries are involved in all this and of course were spying on our enemies which can be expected but we're also spying on our friends that's been released by snowden so this is going to hurt foreign relations and trade relations . and it could lead to increased tensions with the currency war that's going on right now where the u.s. the european union china and other countries especially japan are massively inflating their money supply in an attempt to drive down the value of their currency in order to increase trade so these are all tied together it's all negative it's going to have a negative impact on the economy as well as foreign relations and trade relations well let's talk about this currency war japan in particular is aiming to double their monetary base within two years and initially it had a devastating effect on the yen it was going down but that's actually what they wanted i mean is that what central bank policy should be doing is to devalue the

currency and why why would they aim to do that in the first place well no it shouldn't be done that way at all it's called beggar thy neighbor policy where you try to make your neighbor worse off by. inflating your money so. driving down the value of your dollar so it makes your exports look better and initially there is a positive response in japan has received this positive response to the falling yen in their stock market initially went up tremendously almost doubling now it's fallen significantly but they're getting small increases in industrial production in japan and small increases in g.d.p. but look you know they also have to import goods as a matter of fact japan has to import virtually everything all the raw materials that they use to produce those exports and so in the long run it doesn't do any good in terms of exports to g.d.p.

and things of that nature it just creates tensions in financial markets uncertainty in financial markets bad relationships between trading partners it could lead to real protectionism where tariffs quotas are imposed that could lead to actually military conflicts i mean. protectionism whether it's through your currency or through tariffs is a prelude to war told us that if goods don't cross borders armies will you know and the that's were those were important factors in the american revolution the war of eight hundred twelve you merican civil war and other wars around the world so these look like small issues and small problems right now but they have a way of getting out of control where the policymakers lose control of what's going on and things devolving into chaos well it certainly did have a lot to teach us and let's talk about what might be a cataclysmic moment not only for the united states but also for the world which is

when short term interest rates long term interest rates the fed is keeping them down what happens when they rise well the fed is engaged in reckless policy you know the mainstream media would have it that the fed is trying to fix our problems but they caused the housing bubble they have reckless monetary policy. it's hurting our ability to recover from that crisis it's hurting retirees and it's allowing congress because it because the fed is buying all these long term government bonds from the treasury it's allowing congress to spend recklessly and without any checks on their on their spending and so they're allowing that to take place and so they're they've hurt us in the past they're hurting us in the present and they're going to hurt us in the future and look they're also hurting themselves because they're buying up all this long term debt all these long term bonds which traditionally they never did they usually bought short term government securities and with short term government securities the interest rate doesn't really get out of whack because the securities last only ninety days and so they're turned over

very quickly so changes in interest rates doesn't hurt the position of the fed balance sheet but with long term bonds and assets that the fed has loaded up on what they have is a scenario where if the long term interest rates were to rise which they are now currently doing and they were to reach a significant level the value of all those long term bonds and assets would fall and so the fed would be in a position where it would be technically bankrupt where the the assets doesn't value i want to abilities i want to get to this is it possible for the the fed to go bankrupt and we only have about thirty seconds left there they've changed the rules so that they don't have to operate according to market prices they can operate at the prices that they bought those things so technically they've changed the rules the rules that you and i have to obey so that in their favor so that technically they can't go bankrupt they would just be borrowing more money from the treasury essentially adding to the national debt which i'm afraid that's going to

likely to happen mark thank you so much for joining us this is mark thornton senior fellow at the luby von mises institute thank you for your time again. and it's time for the daily deal with poppy thank god it's friday is a time for a drink so let's ask booz allen ok well according to the wall street journal more companies are offering alcoholic beverages to employees after hours to keep them around apparently this helps retain talent i guess divisions that what normally talk to each other to defraud nies and complete and. certainly being a social lubricant but what does this have implications for in the general work

this i mean what would happen if this kind of became more pervasive. i think it's pretty regular i mean i used to work on capitol hill i worked i remember of the house of representatives we had a bar in our office and most offices had our hall there it wasn't always. you are always drinking alcohol there but somebody came in and ever wanted to have a beverage you know i think it's i think it's fine i think it's normal and in congress they even have sleeping pods and some people sleep in their offices maybe maybe these congress people are working so hard around the clock for people like you and me that they should just do everything at their offices and there's the gym there too they have members that workout and they use the gym the showers there is a little there are other famous pictures from somebody i think that with the big winner and evidently shared a little bit too much about what was going on too much information there and now he's running for mayor in new york leading in the polls which is somewhat amazing i

don't think people like bloomberg too bad for him and so what do you think. has been going on there i would think so i would think so sitting on the leaks coming up exactly. where we go that's very well moving on to something that i know that you're keeping a really close eye on. as was going on with m.f. global global we learned yesterday that the f.t.c. is suing john corazon on civil charges but today representative michael graham asked the attorney general to bring criminal charges against core of the nine what do you think is going to happen i tell you what a year ago i would say almost no possibility i'm a little bit hopeful no i don't even think we'd see civil charges from the sea up to see you know i think eventually i mean this is a pretty big deal i even think the government is going to do anything you know i don't think the d.o.j. was going to do any but look they put in louis freeh ok and this guy was head of the f.b.i. before he scared people he like he kept people away from this issue at the department of justice and i actually had the opportunity to speak with somebody who

had called the department of justice and who supervised this guy but what about the fact that john corbett i mean nobody well if you don't course i was also he works for goldman and so i mean maybe that had something to do with it too we do know that the administration has been very friendly with goldman he had those ties here's another thing ok gary gensler who used to himself gary gensler is head of the c. of d c recused himself from the case of m.f. global and then in an office of inspector general report came out recently that you know you didn't have to do that so maybe gensler is just trying to cover his rear right here i don't know about that i mean we heard that. of course i'm possibly going to come under perjury charges so i went to you know it's possible i think that's possible and that's probably where the criminal charges are going to come from i think so i mean that's how you look at home martha stewart went to jail if the department of justice wanted to get martha stewart and they got her on obstructing obstruction of justice charges and nothing to do with securities fraud

they could do the same thing with corazon tomorrow if they wanted to but think that's possible but i mean it has been two years come on and this attorney general does not listen to anything republicans have in mind when somehow we're going to go to him and contend you know he's not going to listen to whatever michael graham says i mean i just really don't think that's realistic. fair enough i keeping my fingers crossed all right well of course mine has a scheme to the laws so far because he has a good guide so we look for a spirit animal that might fit the former new jersey senator and here's what we found. it is here's our cat with money as a customer fun money but mostly that is john corazon spirit animal hope you. so looks like we're out of time here so let's wrap this show up yeah sorry i know you want to get out of a hot city. thanks everybody for watching you can follow us on facebook at facebook dot com slash prime interest in follow bob on twitter english p.r.i. and you follow me at perry on r.t.

thanks for joining bothered you as always. it was an ethical day here on prime interest it was hard for us to wrap our heads around why it took nearly two years for john corey going to face charges out of blowing up the futures and history maybe at the justice department will finally demonstrate he's not too medium size to jail and we're trying to figure out when snowden will leave terminal three and why did outlets well we've been holding out for the new be part of three of which is coming up to the silver screen and two thousand and fourteen and tangibility is an issue when it comes to bad policy thank you so much for joining us i'm perry and boring and this is prime minister as i

have a great weekend. i've . a little worse you're going to lose the only white house of a. radio guy. i want. to give you never seen anything like this until.

the war. in iraq. my. leg. length.

egypt descends into deadly political strife with street battles between pride and anti regime obsolete. three people are dead including a u.s. national. as washington's hunt for whistleblower edward snowden goes on a four star u.s. general is under investigation for allegedly disclosing a cyber attack against iran's nuclear program plus. harrowing new footage surfaces on the web believed to show syrian rebels decapitating supporters of president bush just days after the u.s. reportedly started arming the insurgency.