with my instructor for a no holds barred look at the global financial headlines tune into khan's report. good afternoon welcome to prime interest i'm harry i'm boring and i'm bob english it's your headline. it's official as they see capital is toast that would be stevie cohen's hedge fund which posted annual profits of over twenty percent and once had fifteen billion dollars under management a grand jury indicted the firm alleging securities and to wire fraud and the head to find it may have to discard hundreds of millions even billions in profit mr cohen is not himself indicted in fact the indictment doesn't even contain his name simply referred to as the as a see owner so it looks like you pulled records are in for no but he made three civil suits from the investors that may not get their money back by the way the soon to be defunct hedge fund accounts by some estimates to be ten percent of daily

stock market value at the new york stock exchange don't worry though high frequency traders have promised to pick up the very end breakstone insider trading later in the show and i'll do so on the very same topic but it won't be boring and with all the talk of tapering quantitative easing someone has decided to quantify just how much of ben's money bing had to do is corporate profits according to the director of market strategy and the brokerage firm a new edge that's about forty seven percent of the earnings of the top five hundred companies since two thousand he said q.e. as like an athlete on that steroids they have lance armstrong and get his tour de france titles and for doping maybe we could apply the same strategies to his chairmanship finally the super rich are heading for the exit in switzerland after getting burned by swiss bankers who sold them out for authorities for tax evasion hundreds of billions of police which would. not only are they withdrawing cash but

they're emptying safe deposit boxes the most important in the story though is what they're doing with their cash according to the spiegel story they're investing in fine art fine wine and classic cars so gold isn't the only safe haven always follow the capital and right now it's an exit from cash we'll talk about the eurozone debt crisis with author and professor younis about a fight this in just a minute. and here is one thing you are an interest. euro zone sovereign debt reached an all time high in the first quarter of this year

this is despite major government spending outback's now today the i.m.f. said that the first further central bank interest rate cuts might be necessary so what needs to be done to spark growth in europe earlier i spoke with jani but if i guess a professor of university of athens and author of the global minute or now i first asked him about the most recent version of his article a modest proposal for resolving the eurozone crisis here's what he said. it isn't like you know. this state of disintegration that it finds itself in is because we have four cracks of them that i indignantly connect one another where the banking practices as a result of the fact that we have a common guarantee but a completely separate banking systems imagine living in the united states in two thousand and eight with the state of nevada had to salvage their banks about them and the banks and that along with it and that would have caused a domino effect destroying the whole of the dollars of the united states of america so we have to do that. the second price we have is it creates

a problem that we have a common currency but we have what i call the button support or perfectly set that up all bets so every euro debt to the euro zone belongs to a single company unlike the united states where you have a common currency and you have a common dept in the form of the federal governments that in you have those no that whatsoever which is which sounds like you know from and what at least the point of huge sums by each of her debts but when you have a situation where you've got different states that belong to the eurozone and they don't have a federal. government or for that matter but if they vote serve a central bank to back the map at some point when they can't for some reason and of course that is was that would have them a major crisis when it comes to finance their depth their complete a bit isn't the only thing they can do just go bankrupt default but that would set

off a chain reaction of the poles that will bring down of think so we need a common only one of the models because it suggests a very simple way of the central bank of europe the e.c.b. two could. do act as a go between member states and financial markets. getting loans on the behalf of most of us that got us there and having them service them. thirdly we have an investment because i see what always happens happen it's happens everywhere when you have a financial sector implosion like the one in two thousand and eight which then gives rise to a really commonly crisis when the crisis goes from wall soup of main street the first casualty of course is investment best days up and when you've got these banking graces and a segment that go dead. europe there are places like greece portugal ireland that need the most investment not to be you could be. able to produce

incomes that will help them pay their debts and look after their banks since them are the ones that get the least so what we need in europe is something like the new deal in the ninety's that we see we need to an investment led to recovery program and i would suggest in the modest proposal is that they get a fan investment back and that's in essence bank is a wonderful institution sometimes the size of the world bank and all that we need to do is simply go allow it to the job i'd bring about that govern you don't we're not doing politically action and not a much these let me let me read a quote to you that you said the euro zone feature is a central bank with no government and no national governments with no support of central bank arrayed against a global network of mega banks that they cannot possibly supervise are you advocating a fiscal union here and ivette even feasible in the current environment when there's so much hostility among some of these member states especially between

germany and the periphery. in short not ok and hey this is clean but this is not part of the modest was and what makes it modest is that we are not advocating if it's the union what we're saying is that we can deal with these problems without moving in if i don't know that action so that you know you'll be inside the bag if you recall the point i made earlier i would not be financing numbers thing you wouldn't have germany financing or buying the debt the reason what you would have is that you have been sent bank. utilizing a good name in international international markets to borrow effectively on behalf of member states but then have them repay those loans just like you know parents good parents high credit worthiness. securing a mortgage and we have a youngster schools who's gotten worse since very low and therefore the interstate to pay for their mortgages. and then have the youngsters. so the beta looms it's

the only way we can salvage the news and without a fiscal union well at the end of the day are we just increasing or we're shifting the burden of of borrowing from one entity to another maybe you can explain for our viewers how this is your modest proposal is a little bit different than what's going on currently in the in the euro zone. what we're doing now to increasing debt massively because in its wisdom the european union has decided to be consultants insolvencies of banks and insolvencies of states by lending money to the insolvent states and you know there is a suicide on policy. because the condition for lending that. we do something comes from which the old and the new debts will have to be debate so. adding debt on deb's in an unsustainable fashion is precisely what's happening today and what we're suggesting in a modest proposal is that we do the opposite that we'd find

a smarter way of reducing the top of that burden of the eurozone over the next twenty years by having the you know bank. play this role that's mediated between member states. and money markets for the purposes of actually shrinking the amount of interest that would be able by the member states of the unit and also if you take into account the other policies that work with you would you or would be the investment led to the government program all that the purpose of that is to shift idle savings and we have massive i've been saving saving there's a lot of that amounts of money in your. too scared to be invested in quebec. by having to your opinion vest and banks that mountain of i've been saving see the best ones you journey on which the debt will be of use and i would add that

a lot of the hosts. things are actually at the federal reserve we learn that these foreign branches of these banks in europe have over a trillion dollars just laying follow at the federal reserve but i want to get to some of these alphabet names a lot of people in the u.s. are going to be familiar with some of these programs we have the e.c.b. the b. the. the how do these fit into your particular program in which is the most important. not only. these are the institutions will have and will have to use them we have to deploy them ration and the problem so fired is that we have used the infusion that we have. and other silly manner. and we've created huge divisions. which was founded on sound and therefore they're incapable of being strong enough to withstand the giving them so the whole point about them all this proposal is how to deploy that means that we have in

a manner that allows them to do their job and ideas to defeat those before crisis face and see things the. some of conflict in europe we have a sense of bank like the united states as the federal reserve. we have. an agency the european investment bank which can be thought off as easy if you want. potentially a new deal agency for effecting public investments it's been doing it for twenty five thirty years very successfully you know you talk about the infrastructure of the new deal like the tennessee valley authority i mean are you talking about this is what europe needs to be doing in order to invest in itself. so that if you look at the map of europe for instance you find the eastern part. which is part of the unit green. has infrastructure but they still the nineteen fifties and sixties. no

fast lane connecting. austrian german and if such a train were to be built that's a super fast train guess who would benefit the most would be greece and. it will be germany because it's interesting because doing it and that kind of investment be mutually advantageous for the whole of europe all we need to do is simply allow the you're going investment bank to go ahead and make that investment you know investment banks can make their best and wants to make the best me but we still have you know we have a silly rule in europe where every investment has to be called financed by the national government we only have about thirty seconds left but who's era do you have with this modest proposal are you making any tread treadway whatsoever right now. it's a very interesting story on the one hand hind closed doors there is a great you know interest you the most imposing when the cameras are on and the

microcosm switched on and you know press conference. it's dead silence because. that was my interview with you on his vow to fight this professor at the university of athens and author of the global minatory now you can read his modest proposal on his website but if i could you coming up area and breaks down insider trading and not just the hedge fund kind there's more of the to it than you might think some even argue it should not be a crime at all after all those in congress seem to get away with it legally and with impunity then i do will sam sites about the very same subject as well as of will do all of the year big beer versus the big banks so like them if you got them and stated.

i would rather i asked questions to people and positions of power instead of speak on their behalf and that's why you can find my show larry king now right here on r.t. question more. by

exposing your breast obviously this doesn't shock me i mean i have my own set of dress i can see it in the mirror every day but ultimately i don't feel the need of exposing it because i i see many other ways of changing society rather than flashing it around you know i feel do i feel the need of exposing it as a political message when for example before coming to this studio i know that for example one girl in egypt today she just shot at herself because her her family obliged her to hide herself was his job and this way i feel i feel the need of exposing my right is a political message i feel it's i feel the need of disposing my body as a political message when i mean not from an activist who showed her who who posted her picture bare breasts with slogan on her body no rigid two months in tunisia in

jail been looked muslim she's obliged to follow ramadan and this is this this are the reason that i feel that this is a big need for the world today to expose my body as a political one not as anyone else and not look to hide it well i'm not asking you to hide it but the coming back to the question of a man of the famine actually is that you mentioned earlier she's been in jail for a couple of months and already and if she's convicted of all charges that she faces she may span i have to nine years in prison and she was just eighteen years old when she joined the famine movement so when you think about it on a personal human level she put her life on the line at salman's beating but ultimately she hasn't achieved all that much truth as she published those provocative pictures but again that comes back to the question of tactics whether the tactics that he use sure are there tracked a lot of attention but do they actually facilitate social change and i want to ask

this question directly can you cite any specific example how women's condition how their rights have been improved. by your own movement you know now i mean i was in jail and there was a huge tunisian don't usually. i would say kind of a riot off women who are who are just quiet just had the possibility to start to talk about their conditions what i call the you purse. here's mitt romney trying to figure out the name of that thing that the americans call. a dog. i'm sorry i mean the guy here is not what you saw. you know what that is my theory you want to defeat terrorism the only liberal democrats. who believe that 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 happy martin and we're going to break this that. stand at the top security is a lobbying firm but when a wall street hires someone's for their connections and relationships we call their province illegitimate the revolving door is present in all sectors of government included but it seems as the latter who excuse the tension and punishment and that's the breakdown of insider trading now let's get to today's daily dose.

joining me is political commentator sam sax comfortable there i'm feeling comfortable in here a few times just out of your jacket off of my parents loosen ties to all but all right her story big banks meet big beer large beer companies including miller coors are putting pressure on the federal reserve to crack down on wall street miller coors a major aluminum buyer asked the fed to toughen oversight of banks like goldman sachs and j.p. morgan both banks are accused of manipulating aluminum prices by controlling large metal warehouses part of the london metal exchange network your thoughts so basically we have banks running a racket that's screwing over companies like these big companies and other companies that use aluminum the bigger picture here is this wall street the wall street economy the fire economy finance insurance real estate used to be about ten

percent of our economy now it's twenty five to thirty percent of our economy is starting to dominate our economy and it's doing that because it's preying on all the other industries in our economy through these rockets through price manipulation through all this stuff do we want an economy that functions based on manipulated fake money or do we want a condom either functions on actually building stuff and actually selling and buying stuff now if you will by that kind of on your side here but i'm just going to play devil's advocate it only adds a tenth of a penny to each aluminum can so it's not really coming through the case rumors anyway do came up to like three billion dollars budget to the penny adds up it's like the office space where they're just doing fractions of president superman what it is a lot of corrections that stuff adds up for superman ok it is because wall street has been deregulated for decades now which is giving it the tools to be able to engage in this sort of manipulation in this predation on other sectors of the ok i'm going to add to your argument here goldman sachs and i was talking about this on news the other day goldman sachs has been in the commodities industry for

decades they became a bank holding company in two thousand and eight that gave them access to fed money so yes they were already big and commodities and now they're even bigger. because they have and we don't have these walls that separate them from the gambling side from the depositor side j.p. morgan got into this in a big way they were involved in crude oil when crude went from one hundred forty five dollars down to thirty dollars they just bought cargo ships are rented and put them out to sea and waited for the price to rise and so there's an entire vertical industry now in the commodities market that's based on free money from the fed so that is i agree the free money from the fed is making it worse for the banks and just a fact that the banks are even allowed to compete in these commodities markets is a big problem all right so we're in a little bit of agreement here and maybe allowed sort of we're just going to move on to the next subject as we talked about earlier stephen cohen and sac capital are back in the lot of light the hedge fund was charged with wire fraud and securities fraud according to the new york times the charges were filed under the theory of corporate criminal liability now this allows the government to attribute employee

criminal acts to a company itself and that makes sense because corporations are people right. mitt romney that's just there i guess this is part of a sweep that it is doing here are going on inside the f.c.c. doing several government not cracking down on on insider trading and that's so convenient let's go after the banker criminals who are basically committing acts against other. missing objects who are trying to get the upper hand on other bankers but let's not go after the bankers who are trying to get the upper hand on consumers and on main street right typical here's the problem is it's very easy to detect insider trading it's kind of hard to go after for the d.o.j. to go after and prove fraud in intent but the securities and exchange commission has had these algorithms in place in a monitoring system to monitor suspicious activity before very very civilians and so it is it's all about headline grabbing and say we're doing something but they're

not going after the right to go after the people who are kicking millions of americans out of their homes on the legal documents the robo. here's let's go after not not not one but the little rubber centers i'm talking about the maine sea likely to be authorized that stuff going up let's go after those people and then we can also go after the while there and there's also the other problem of the revolving door i think one of the reasons that we're not going to as you see is not going after these big banks is i mean the current head of the i.c.c. is mary jo white she came from a white shoe law firm and was representing these guys and she revolved through those doors three separate times so the people at the chart at the head of these agencies are very conflicted they don't want to go after their for all of these had their agencies are from these industries and a whole other component are these intelligence firms that are between congress and these financial markets so they're feeding whatever laws might be coming down the pike in congress giving that information to the banks so that they can profit off and ahead of time there is movement in congress to do something about that and then

you know what i got thrown out eric cantor thank you all right and spencer baucus the chair of the house banking committee finance committee ok we're going to move on to a final subject we've got about ninety second senator warren's proposal mccain's proposal to reinstate a form of glass steagall has attracted a lot of attention critics say the separation of commercial banking from investment banking wouldn't prevent another crisis will it i'm just going to repeat what elizabeth warren said all these diversity because she's i mean because i don't think there's any counterargument to the fact that from the founding of this country every ten fifteen years we've had a major banking panic and then after glass steagall in nineteen thirty two after the whole everything fell apart we went sixty seventy years without another major banking panic co-incidence well i think it gets down to moral hazard when you have the federal reserve with a wink and a nod always willing to build somebody out and giving away free money that's the source of the problem now i do think that in the current system that we have we

should have a wall but the thing is the dollar as it's proposed is not really going to give us any better solution because it's just going to shift one side to another. it's not going to put a real wall like that was in place before there's too much money at stake here no absolutely i mean we're talking glass steagall maybe we should be talking about the older one that was put in place that was much stronger it's hard to get something like that in place nowadays for all the reasons we just talked about over the last few minutes a revolving door of money in politics in the sand we got a rub here so if you want to weigh into today's show be sure to like us on facebook at facebook dot com slash prime interest you can follow serve here at sam set and you can follow me english but thank you so much for your bout of the duel.

and it was an evasive day here at prime interest and seemed as though the essays the owner is in the clear for now even though mr cohen's firm was handed down and i went and burning he continues to walk towards the back door of his humble office on constitution avenue even as his favorite toy the s. and p. five hundred has been exposed as a cue manipulated friday and the rich move towards the exit door of cash they're collecting because i was. and vented you know breezy oh and then yawn as explained his proposal modest as it may be to help your of exit its financial crisis then we explained in just how insider trading works and you may or may not be guilty of any wrongdoing and on that note we're going to sign off thanks for watching come back tomorrow from everyone at prime interest i'm sorry i'm boring have a good evening. they'll

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a new jersey congressman is pushing a new bill to curb government surveillance if passed it would repeal the patriot act among other changes to protect american civil liberties we'll have the man himself on this show to discuss his new bill bradley manning trial inches closer to its end today the. and defense make their final arguments after the judge refused to dismiss beth charges against manning an update on this case. and it's thursday so you know it's time for the tech report with the growth of social media there's also a booming industry for data it's an industry that's working to figure out how we think and how they can market to us we'll discuss that later in today show.