currency's 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 greg but a natural gas cloud any very large and light sheen was reported the operator of the well stated no oil was killed but again it's the natural gas curiously in the well that exploded was a sidetrack well 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 tim geithner well the current attorney general of new york eric schneiderman who was funded by george soros by the way is now 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 dollars pension fund oh and mayor bloomberg himself is suing the current comptroller of the problem because we smell the gangs of new york style fight brewing here well cognise functional politics with a little rockwell in just a bed and i'll profile the dysfunctional city of detroit as well and here's what they knew our prime interests.

the first hearing on detroit's bankruptcy began today the city is facing 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. troy just represents what's going to happen and many cities are think chicago is at risk

in baltimore many other cities that have these kind 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 give you know what they want to do as long as these cities can keep going is they want to. take it out of the hide of the taxpayers who again are. funding these vast pensions and 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 makes 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 all the rest of those wonderful guys in washington are going to be happening to the whole of america western europe. we've got i'm afraid 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 operates with the guy's got a gun in one hand and 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 going to you know i agree the unlikely to happen although it should happen. so there's going to be prices after crisis and the federal reserve is just going to be because the 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 we're going to bail out of chicago that's a big one whether they will bail out of 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 is probably going to get in the way and the you know again the fiesta the 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 the knives are going to happen in china something else going to happen in europe is 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 and the rest of these people in washington concerned 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 where the banks. you know the banks will be bailed out of

course 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 we're a grill you america has become a soft fascist society it's a fascist economy mousseline to define fascism as the combination of corporate power and state power and you know 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 the last however it is going to come back. 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 although i don't think they're going to certainly it's not going to be in it's not in their interest it's not the government's interest to have hyperinflation it's very destabilizing certainly not in our interest that 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 career. he controls the price and

wage controls and capital controls them and all that sort of thing you know 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 misses living von mises the great austrian economists held the economics is far too important to 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 and 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 where. it is hot and you know the polish own the. young people are 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 lou rockwell the executive chairman of the lew big bunmi says institute coming up areas profiles detroit and compares it to read stars bill the motor town in atlas shrugged that the. lions as a result of socialism than i do will break in

a set producer many raffaello over a cold actuarial calculations and fight club tax on cars and the latest venue for japanese advertise that it involves women's legs. wealthy british style. sometimes it's priceless money. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into kinds a report on.

the eve. of the. same. mission free accreditation free zones for charges free arrangements for free risk free studio time free. old free broadcast quality video for your media projects a free media dog our teeth on tom.

the largest 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 lawsuits 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 factors 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 the tree 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 the average per capita income is just over fifteen thousand dollars a year with a population declining and extremely low wages the city is not bringing in sufficient taxes just on basic services such as police and fire crime is rampant and fewer than ten percent of crimes are even stalled the average response time for an emergency is fifty eight minutes about forty percent of the city's street lights aren't lit 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 starring ville the motor town an atlas shrugged 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 the whole egg 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 fun retirement benefits and pension obligation vaughn's murderers 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 then me said law called philadelphia effectively bankrupt is the fifth largest city and the us they have about 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 at 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 some have already called for a federal bailout technically we can bail out these cities on a nominal basis but at what long term cost meaning the threat of price inflation and 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 i stared itself is somewhat mis understood term but in the end markets always clear and just a matter of how long intervention only prolongs the inevitable. now let's get to today's legal.

joining me breaking this producer will put up a law. 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 so 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 sort of a new record and this time it's not record earnings g.m. recently issued one of india's largest call recalls car recalls according to indian newspaper lived and carmakers are attempting to become 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 with these cars it's actually about private 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 do 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's 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. 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 rates 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 had issued a recall take the number of vehicles in the field multiply by the probable rate of failure be multiplied by the average out of court settlement see a times be time see equals x. if x. is less than the cost of a recall we don't do one sounds pretty cold doesn't it profit vs the moral obligation to actually yet sounds a little bit ok i'm going to let it keep in mind like the following scene the airplane blows up and they both get sucked out of the window in that movie you. know when you talk about the profit motive these auto manufacturers were bailed out in two thousand and especially g.m. and chrysler and the government actually became a major shareholder so it does. government have ultimate responsibility or at least

somewhat culpability in not really enforcing 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 there they're doing nothing more than hurting the industry or just i just want to make one more point is sometimes the government puts these arbitrary limitations and getting back to the b.p. deepwater oil spill there was 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 proud you know 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 tattoos i don't know i think they're temporary temporary tattoos i dig it 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 it. everybody has to cover it up in d.c. to see it it's a pretty conservative there 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 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 i'm going to get a real deal out of global 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 now 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 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 is 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 see 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 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 in 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 that it's attracting 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 and i'm just getting everybody owns a cell phone or a flop or lying on technology rely on technology for all these mobile payment. and

all these are the things that you're doing on your phone because you know it's not just your sim card yes your sim card as we were told you or your book life or in the what i go a little bit anyone away don't want to say overly sure to like us on facebook at facebook dot com slash prime interest you can then you can follow me any here on twitter at motherwell and score rob below and you can follow me english to go many thank you so much for joining me. and it was a pensive day here at prime interest we contemplated the non physicality a bit coins which the s.e.c. says are a ponzi enabler oh so they do exist and least in the psyche of devil voice in plympton where is khuzami when you need him oh right the former deutsche bank just

revolve right into kirkland and ellis and the battle of the billionaire it could be soros versus bloomberg to be schneiderman and then third. for that one should be good and then we got lost in thought and how detroit dug itself into such a deep pit of 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 harry and ambitions of a failing empire sim card hacking calculations by auto manufacturers so that the health thing really but we finally thought happy thought so when we considered the innovation of japanese market herds by katie thanks for watching make sure you come back tomorrow from everyone at prime interest and harry and boring have a very. and

you try to transmission makes for a smoother ride bushin scientists crystal's the e.u. says he's laser sight some to ponder on one of the take giants comes to. the update on. the central. plains.

hold it. hold it. took. the speed. you. wish. me good. luck.

trying to make a little. you know sometimes you see a story and it seems so you think you understand it and then something else you hear sees some other part of it and realize that everything is all. i'm tom harpur welcome to the big picture. wealthy british. markets. find out what's really happening to the global economy.

for a no holds barred the global financial headlines in two counties a report. spying and. us congressman america's national security agency to continue its worldwide surveillance. visible. blaming washington. to. clash with police in. the nation of a prominent opposition leader the second such case this year. our brave young men and women to fight against al qaeda. and al qaeda in other countries.