but that's just my opinion. hello and welcome to prime interest i'm parry i'm boring and i'm bothering good and here's the story that we're tracking today. on the team that's what the headlines in the media suggest the security and games commission is alleging however the f.c.c. is simply investigating whether the new crypto currencies are being used as a tool to war investors and to an illegal investment schemes you know whether or not this is true the smear campaign against alternative currencies continues in a press release the f.c.c. stated quote investors should understand that regardless of the type of investment the promise of high returns with little or no risk is a classic warning side of fraud well don't tell that to freddie at least trying to got out. and there was a natural gas explosion on an unmanned raid off the coast of louisiana on tuesday

the blaze has been described as out of control no injuries were reported on the nearby jack up the rig but a natural gas cloud any very large a light sheen was reported the operator of the well stated no oil spilled but again it's a natural gas curiously in the well that exploded was a side track which is usually used to overcome an engineering problem with the original well we'll stay on top of this story as it develops and we have a bloomberg update that would be the scandal were bloomberg reporters were allegedly spying on bloomberg terminal users including such power users as ben bernanke he and tim geitner well the current attorney general of new york eric schneiderman who was funded by george soros by the way is no investigating the matter the a.g. position is one that eliot spitzer held before becoming governor spitzer is now once again so you know elected office as new york city comptroller to oversee the city's one hundred forty billion. pension fund oh and mayor bloomberg himself is

suing the current contra war break out the popcorn because we smell like gangs of new york style fight brewing here well prague dysfunctional politics with a little rockwell in just a bad and i'll prob file the dysfunctional city of detroit as well and here's what they knew our prime minister and. i. the first hearing on detroit's bankruptcy began today the city has faced multiple lawsuits from retirees and city pension fund lawyers they're challenging the constitutionality of the chapter nine bankruptcy filing itself in court union

lawyers argue the bankruptcy petition is unlawful because it overrides its a constitution which protects pension benefits today the judge froze several of the lawsuits against detroit and allowed the bankruptcy case to proceed in federal court this municipal bankruptcy case the largest in u.s. history has raised questions about the future of public worker pensions in financially troubled cities and sales earlier i spoke with lou rockwell the executive chairman of the louis van missis institute and i asked him about the challenges detroit faces and possible municipal bankruptcy is to follow. detroit just represents what's going to happen and many cities are in chicago is at risk baltimore many other cities that have these kinds of pension problems and when we're examining the. one thing we ought to keep in mind is that government employees make more than taxpayers that's why they go into the government they work less they make more they also have pensions that were unheard of in the private sector. so what they want to you know what they want to do as long as these cities

can keep going if they want to. take it out of the hide of the taxpayers who again are funding these vast pensions and vast salaries for the government employees and keep sticking it to them get all their money so that these people can continue to live in the style to which they've become accustomed so it seems to me at the very least before cities reach if they're worried about going bankrupt what they ought to do before they reach this kind of a situation is cut the government salaries cut the pensions and you know live in reality why should any government employee why should the median government employee in detroit make so much more money than the median taxpayer why is that it seems to me is it's obviously immoral and also unsustainable so this is of course true of the federal government to detroit is just a microcosm of what's going to be happening thanks to the federal reserve and the congress and all the rest of those wonderful guys in washington are going to be

happening to the whole of america western europe. we've got. some bad times ahead it's just not detroit well regardless of whether it's sustainable or even moral how realistic is it to think that there are going to be voluntary haircuts before a forced event that a lot of us would consider inevitable i mean how realistic is that scenario and how what do you see as being the trigger for the next crisis if you believe that in fact there will be one. well i think you know you of course you're right i mean it's very unlikely that these people are going to do this even though i would argue it's actually in their long term interests to have a voluntary here and do something in the public interest for a change instead of just their own greedy personal interest at the expense of other people and let's also never forget when we're talking about government you know this is an institution that operate. the guy's got a gun in one hand and

a hangman's noose in the other hand and he's telling you what to do. so that's you know that that's a government so should there be should they you know take a voluntary haircut sure i'd like to see them bald by the way just like me rather than get a haircut but no they're not the you know i agree the unlikely to happen though but what should happen. so there's going to be prices after crisis and the federal reserve is just going to be because of their not going to tax people openly for the well let you know that if there are they allowed to go to print the money let's get into the federal reserve aspect you the question is where is the money going to come from the treasury can only issue so much debt at a certain percentage but theoretically the fed could just print these meanies out of their problem of course we'd have more problems but do you think that's a possibility and what would be the fallout from that yeah i think it is a possibility think it's a special one when it comes to chicago i think they're going to bail out of chicago

it's a big one whether they will bail out detroit or not you know they're not that so far they're not doing it and they're not talking about it they may bail out let's say if you're a businessman you've sold things to the city of detroit you're not getting bailed out i think we can be one hundred percent sure of that will the unions be bailed out you know possibly with the chicago unions and the chicago city government bailed out i'm afraid you know rahm emanuel and sort of say it's probably going to go away and then again the fiesta fed is just going to create the money out of thin air. so when this all comes to an end i wish i knew i'd be rich right if if i knew that but i don't think there was any question that is coming to an end the fed and all its subsidiaries central banks have set up the world in a situation that's never existed in the history of humankind the amount of money creation that they've undertaken so when when the n.b.a. you know becomes a ny is going to happen in china something else going to. happened in europe are

going to be rising interest rates in the u.s. side by i don't know my guess is it's going to be something nobody's expecting just like it's going to come out of you know of nowhere as far as the president's pledge protection team in the rest of these people in washington. and it's going to knock them off their feet and there's going to be a huge financial crisis and i don't know what's going to happen exactly it's not going to be pretty and that this is the deliberate creation of the federal reserve to bail out all the big banks and that's what's being driven here we live in a bank ocracy so in a city like detroit with the banks you know the banks will be bailed out or in chicago the banks will be bailed out even before the unions. so the banks always or are first in line and and he who gets the money when there is gets to spend it. well the banks you know again this is the but the banks pretty much run things in cahoots with the with the federal government. you know what america has become

a soft fascist society it's a fascist economy mousseline you define fascism as the combination of corporate power and state power and you know that's that's what we have so there are certain big corporations that in cahoots with the federal government are running running the rest of us. can't last however it is going to come down. again when that happens you know i don't know but we ought to remember who's to blame it's the banks the fractional reserve banks it's the federal reserve it's the congress it's the entire government we certainly see a lot of parasites on the rest of us we certainly see a lot of revolving door especially in the financial sector but even at the e.p.a. apple just hired somebody who used to be the head of the e.p.a. so it looks like everybody has to make their payola in order to protect themselves from the fed but getting back to the federal reserve itself it looks like bernanke he's leaving town. is it possible that the fed itself is set up for some kind of

reorganization hyperinflation is just very. very bad for the government is it possible they plan for another solution maybe the fed being nationalized under control of congress of all the i don't think they're going to certainly it's not going to be in it's not in their interest it's on the government's interest to have hyperinflation it's very destabilizing certainly not in our interest the rest of the people of america not in our interest to have the dollar go through weimar like zimbabwe like experience i don't believe they will let it happen and i don't think we face that on the other hand we face you know currency controls and price and wage controls and capital controls them and all that sort of thing you know a bet that that may happen well we have a just a couple of minutes left here and we've done a lot of doom and gloom talk let's talk about something positive that means this institute can you tell me a little bit about your organization and what your mission is. or mission is to

teach austrian economics. both within the academic world and to the public at large muses livan resist the great austrian economists held the economics is far too important be left to the economists and that everybody needs to know some economics at least some basic economics so you can understand what's happening so you can understand the way the world works you can also understand what's happening in washington so we have a wonderful website beezus dot org we have many different publications teaching programs right now we have the university going on here in auburn alabama at the on the institute campus we have kids from thirty five states and twenty three foreign countries here to study austrian economics that come to alabama in the summer time to study to study real economics that's a commitment it's pretty high here. it is hot and you know the polish own the. young. or interested in the truth they're sick and tired of what's happening what

the government is doing to them they know that their own future has been blighted by what the government is doing so all over this country all over this world there's a vast increase of interest in austrian economics understanding the business cycle of the federal reserve creates recessions and depressions and her other horrendous things to us for the benefit of the banks and the government. that was lew rockwell the executive chairman of the loop institute coming up area profiles detroit and compares it to brand stars built the motor town in atlas shrugged that declines as a result of socialism then i do a break in the set producer many raffaello over a cold actuarial calculations in fight club packs of cards and the latest venue for japanese advertisement it involves women's legs.

nobody chooses to be homeless nobody chooses to me and. it did was. get in the six pm get out six feet six. they were in. school they. had to be the class people in the. days that were against the war. it's hard to think about all of them. to know that many may not and we've been lost. never. the dross to do different never should have.

speak your language was i think about the war not a damn. program says documentaries in spanish. a little turn it into english story. the spanish to find out more visit to on the.

new war or just municipal bankruptcy ever in the united states this case is being closely monitored because of the precedent it could set for other towns around the country michigan's constitution holds a clause that specifically bans cost of retiree pension and benefit payments today a federal judge move the case forward by freezing wasis against the city and extending an automatic stay to members of the restructuring team but how did detroit get in such a financial distress first population decline has been one of the biggest factor is the population peaked in one nine hundred fifty during the car manufacturers glory days but since two thousand residents have been a full leaving from the motor city enjoyed rose detroit is only a quarter of the size it was just thirteen years ago and troy also suffers from high unemployment which is at eighteen point six percent well above the national average of seven point six. for the residents that have jobs don't have great wages

the city's average per capita income is just over fifteen thousand dollars a year with the population declining and extra really low wages the city is not bringing in sufficient taxes to fund basic services such as police and fire crime is rampant and fewer than ten percent of crimes are even sought the average response time for an emergency is fifty eight minutes about forty percent of the city's street lights aren't listed and two thirds of ambulances can't be driven the declining conditions are driving more and more people out of the city and this vicious cycle has left detroit decimated tens of thousands of buildings are abandoned the majority of fires take place in abandoned buildings but the city can't afford to demolish them all some have even compared detroit to iran star in ville the motor town an island shrug that declines as the result of the result of socialism others have claimed that detroit has been plagued by decades of poor

governance and leadership kevyn orr the city's emergency manager wrote the city's operations have become dysfunctional and wasteful after years of budgetary restrictions mismanagement crippling operational practices and in some cases and difference and corruption on top of all of this destroyed is whole eggs with the billions of dollars in debt they have underfunded pensions and benefits they owe payments to banks and other general obligations given the city's worsening conditions it is in no position to pay all of this back was even more concerning as detroit is not an isolated incidents city of all across the country are facing similar challenges the wall street journal pointed out oakland which has the highest crime rate in california recently laid off more than one hundred police the fund retirement benefits and pension obligation by. and murders and robberies shot

up in the city borrowed an additional two hundred ten million dollars we also have chicago which was downgraded by moody's last week this city is having to make tough decisions between funding pensions and their schools they're making balloon payments just to keep retirement funds from going under and laying off teachers to meet payroll and then we shut law called philadelphia effectively bankrupt is the fifth largest city in the us they have about a nine billion dollars in outstanding debt and their pension system is only forty five percent funded in addition cities all across the country are facing sharp population decline the top ten are detroit chicago philadelphia st louis missouri we have cleveland ohio pittsburgh baltimore buffalo new york to morrow and cincinnati and these cities can't manage the leading population they can face and when doing tax base leading to financial chaos as well so is detroit too big to fail so i have already called for

a federal bailout technically we can bail out these cities on a nominal basis but at what long term caused meaning the threat of price inflation a dangerous precedent was set in one thousand are in two thousand and eight when the federal reserve and congress bailed out the entire financial system which ensued it was a zombie bank economy that steadily siphoned off well at the expense of true capital and wealth creation a stereo self a somewhat misunderstood term but in the end of markets always clear and just a matter of how long intervention only prolongs the inevitable. now let's get to today's.

joining me breaking this producer. to go and it's going well like you have the upper hand in these duels because my feet don't actually touch the ground. that doesn't leave a selling point of these chairs it's done on purpose just to intimidate you let's get to our first story general motors just set a new record and this time it's not record earnings recently issued one of india's largest call recalls car recalls according to indian newspaper live bit car makers are attempting to be more proactive about recalls even as many auto companies are under pressure to revive profits so what is this all about well it's very interesting because i don't understand i don't i'm not sure if this story is actually about safety concerns but these cars it's actually about emission standards and that raises another question is whether or not you know the the should be more proactive about this or whether or not they should be actually working with governments to make sure that the standards for their cars are meeting emission standards before they put up with the government like the e.p.a.

what we see these revolving doors that the government is going to make the right policy to regulate these auto manufacturers can we rely on them to make those decisions well that's that's the ultimate question isn't it i mean you have these standards put in place by the government so that you know car manufacturers meet the safety standards emission standards because i mean i think it's a little bit naive to think that if you just leave it up to the car companies they're going to make sure that you know everything is going to be ok they're not going to have you know a slight defect in the car which whenever you you know for a little bit too much gas in there it's going to blow up i don't want to trust the companies to step to set the standards for themselves i'd rather leave it up to the government ok well we have an interesting this reminds me of fight club and we have an interesting quote here and this is from norton as in their race on the plane a new car built by my company leave somewhere traveling at sixty miles per hour the rear differential locks up the car crashes and burns with everyone trapped inside now should we have issued a recall take the number of the. in the field

a multiplied by the probable rate of failure be multiplied by the average out of court settlement see a time speed time see equals x. if x. is less than the cost of a recall we don't do one so it's pretty cold doesn't it profit vs the moral obligation to actually yet sounds a little bit a lot to keep in mind like the following scene the airplane blows up and they both get sucked out of the window in that movie. but when you talk about the profit motive these auto manufacturers were bailed out in two thousand and eight especially g.m. and chrysler and the government actually became a major shareholder so does the government have ultimate responsibility or at least somewhat culpability in not really enforcing these these recalls correctly absolutely i think that if the government isn't helping the car manufacturers make sure that they meet these standards and they're doing nothing more than hurting the industry i just i just want to make one more point is sometimes the government puts these arbitrary limitations in and getting back to the b.p.

deepwater oil spill there is a seventy five million dollars cap on liability and what that meant was that the company b.p. was encouraged to take excessive risk so sometimes the government actually encourages excessive risk oh absolutely that's absolutely true but the government itself is putting itself in a risky situation by doing that because it would you know they could incur a loss and you're talking about the bailouts of the car manufacturers if all you're doing after bailing out these manufacturers is making it harder for them to actually build a profit because you set these impossible standards then i mean you're just it's a no win situation for every for everybody ok no win situation we're going to move on to the next topic here an advertising agency in tokyo has developed a sales strategy that would make even edward bernays for now you know who he was right you got to google him edward bernays advertisements which already cover buildings buses bridges have now moved to women's thighs a way to attract the attention of men in tokyo so your take on this many items you get are these tattoo. i don't know i'm saying that you look i think there are

temporary temporary tattoos i do get i. encourage piercings encourage anything that is shocking i think that it's going it's voluntary long as it's volunteer and see anything wrong with it i think that it's a novel idea i think that you know it's a really great way to get noticed especially if you're a company do you think we're going to see it here in d.c. i think we're already seeing. everybody covered up in d.c. to see it it's a pretty conservative it is it is but i think that this is something that we're seeing more and more here in the united states especially with people you know tattooing their faces with ads and we've seen that already here i think it's a great idea and again as long as it's voluntary and ok we're in complete agreement here so we're going to move on to our third that's why you need swords man that's why you know maybe a maybe abby can let me borrow her katon and we can have a real deal of all those sim card has been hacked according to german cartographer carsten he recently developed a strategy to remotely control the make copies of phone sim cards the hacker sends

a specially constructed hidden text message to the phone and then has the ability to record conversations and text messages lots of privacy issues here at stake do you own a cell phone no i don't. never have always so everybody owns a cell it's a voluntary interaction why this is news i don't understand what the sim card thing i think that the news peg here is that this has been going on for ten years and no one was the wiser but i mean this is nothing new we've known that is related to an n.s.a. tracking story i mean if apple and google are sending all this information and we know that is we can just assume that pretty much all of our information is being sent to various authorities and then the companies themselves can use it for whatever purpose they want but it's almost like there's no opt out it's like we don't have a choice and i don't think i don't necessarily think that there's anything like. i don't think that there's anything wrong with that so i don't see anything wrong with having the ability to do that as long as it's you know you know you need a warrant to be able to do all these. things but. spying in surveillance through

the internet or through your cell phones and hack and hacking it's a law enforcement tool just like any other and it is and it has there's a big potential for abuse for abuse absolutely but this whole thing with with hacking sim cards you have to understand that this is been going on for a while this isn't the most pressing thing going on in the world it is dangerous to try think of all the judge it's a tracking attention but i think that all of this what it should be doing we should all be heeding one warning from this is that we need to stop or lying on our cell phones just like i don't own a cell i'm just getting everybody owns a cell phone or is it up or lying on technology rely on technology for all these mobile payments and all these other things that you're doing on your phone because you know it's not just your sim card yes your sim card is. here your book my friend what i don't nobody want to wait i don't overly sure to like us on facebook at facebook dot com slash prime interest you can then you can follow many here on twitter at motherwell underscore bravo and you can follow me english p.r.i. many thank you so much for joining me cheers.

and it was a pensive day here at prime interest we contemplated the nine physicality a bit coins which the f.c.c. says are a ponzi enabler oh so they do exist at least in the psyche of devil voice in plympton where is khuzami when you need him oh rabbi the former deutsche bank just revolve right kirkland and ellis and the battle of the billionaire it kind of be soros versus bloomberg it needs to be schneiderman and then third. for that one should be good then we got lost in thought and how detroit dug itself into such a deep pit. a debt not to mention those pesky unfunded liability they also had to

meditate on the rock wells and deep thoughts regarding the imperial into college perry and ambitions of a failing empire then card hacking calculations by auto manufacturers but the peg thing really but we finally thought happy thought that when we consider the innovation of japanese market urged by by katie thanks for watching make sure you come back tomorrow from everyone at prime interest i'm harry i'm boring have a great day. this will go on so i know what you updates and you try to transmission makes for a smoother ride bush and scientists comes up could see it's crystal the e.u. says he's laser sight sometimes on one of the take giants comes to town.

olympos. clip.

of the speech. will. look. like something good. come out.

spied spying and will spy us congress not allow america's national security agency to continue its world wide civilians despite visible divisions in washington. the man who exposed agents his wrongdoing is still stranded in a moscow apple would have to get a lot of the paperwork to leave his transit zone while his asylum request is still being processed. also this hour for you there is no political motivation eckstein could.