that afternoon welcome to prime interests i'm perry i'm boring and i'm bob english let's get to our headline it's bad day and true to form chairman bernanke evil every day baffling or is that waffling message that pretty much gives him authority to do whatever the fed once on the fly all the while pretending to hear into some sort of plan that even the plan or otherwise tapering might be tabled or not i get is zero hedge points out the fannie and freddie also have a hand in our beds now because the government mortgage giants who are supposedly being wound down pay the treasury sixty six billion dollars in profit so the billions uncle sam doesn't need to borrow as much next quarter which means of fed's eighty five billion dollars per month bond buying plan will monetize nearly seventy

percent of all u.s. issued in the near future so just to reiterate because our heads are swimming to seven out of every ten dollars borrowed by uncle will be bought by the clause our government enterprise known as the federal reserve and based on recent trends over two thirds of that money printing will end up in poor and brain so couldn't corrode encroach away from burning no wonder you're looking for a new gig. and speaking of new gigs the former harvard president who was scorned for a massage and a sick remarks about would be very summers is increasingly being touted as the front runner replacement next year just today obama and harry reid like summer's facebook style in the press anyway and battle eager slashed of us a journalist telling hill some rats said summers it is totally not against me so just call a skeptical we'll talk to the future with dems although we're a leader in the show and harry and will break down our ministry. economics revised

g.d.p. statistics in just a bit oh and apple is a get in the news but not because of tim cook's desperately needed innovation apple employees are suing the tech giant because of the time uncle apple's spend searching their bags going in and out of the office would that we could launch a similar suit against the t.s.a. so we will do a break in the sets abby martin on this later. and here is what saying you are prime interest. i. now the big question on everyone's mind is what happens when the u.s. dollar is no longer the world's reserve currency you know that's inevitable there

is a concept called free gold and no it's not about giving away gold for free unfortunately it's a system in which the payment system continues to be base but savings are made in gold so i discussed this with investment professional eduardo moyer earlier and i first asked him about the role of the euro in the new monetary paradigm how it relates to the concept of free gold and how this potentially revolutionary monetary transition could actually occur. if the euro is truly the future if this transition is going to happen how is it going to to occur or does it require hyperinflation of the u.s. dollar what are the dynamics involved in the us it doesn't require hyperinflation it's just a very lightly out of the probable out of the dollar it's had a couple of near death experiences already you have the collapse of. you have the shock occurred. in the trim of that occurred in the wake of what is that and i.

what happened in the late one nine hundred ninety s. with the gold market. basically i mean i think the hyperinflation of the dollar is highly likely and really gold doesn't have to the liberation of that were gold from paper to rivet is does not have to happen with the hyperinflation it's just of a much more likely outcome well let's all or i'm sorry go ahead. yet the dollar has basically had no political support since the fall of the bretton woods if this had waning structural support which is. countries and to buying a u.s. government debt all the support for the the u.s. government debt has been waning years now hugh we like you need says they. might call them are a result of that weightings or we now have to have the federal or and it's.

its member banks its primary dealers essentially working in tandem to buy up its debt and support the u.s. government's lifestyle so this process is underway we've already had the inflation of the developments and that we've created a massive amount of credit the issue is where does that loss of confidence it's a slow process and i think it's underway yeah and i think it is really it's a crisis of confidence so i'd like to get into the actual mechanics of hyperinflation because i know the freeholders have a pretty interesting perspective on this it's not that there is necessarily a demand for cash on the part of the government but it's it's actually on the part of the public is that correct. i think what's the best way to look at it is to think of the u.s. government and its and it's in its. they should will and it is not going to crash

it's own life until it has no choice it is not going to willingly reign itself in. and so as the waning support windles you will see an increase in the kind of operations that we've come to see is. that ok let's let's talk about quantitative easing we're almost up to two trillion dollars in excess reserves i mean in the federal reserve has bought so much treasury debt that the banks are parking and these are actually mainly foreign banks are parking two trillion dollars or close to it at the federal reserve itself just to earn zero point two five percent inflation and i think what's lost is that this can be created this can be demanded to be created converted to cash at any time so how does this fit into your hyperinflation scenario. well i think it fits in because the government will end up heating against other entities for real goods

as the support for the dollar waning and you have increasing cheik. of the jet u.s. jets or the government. we're going to see. the government bidding against. these outside the u.s. goods. to keep things going which will drive up prices i mean basically prices as you probably know discover the margin. at the dollar now that the government deficit has ceded the trade deficit. of iran a kind of one way path that's going to involve the government having to. bid for goods that will drive up the price of all kinds of things and americans will have to will will need cash as confidence gets lost in that

it's the time value of money. as people sense that the ability of the currency to store of value for even short periods of time is diminishing that's when you get a centrally the real crisis of confidence ok and let's let's talk about the time value of money why is it important to save in gold as opposed to a few currency or maybe anything else for that matter. why is it important say go yeah it's a. well i think that the reason it's important stated goal the goal this goal should be the asset that balances the system that we capitalize on. and gold is actually it's a commodity but it's actually has limited industrial use so my understanding of gold is that the very fact that it doesn't have so much of an industrial demand is

the reason why it should be saved and is that your understanding and can you elaborate on i think the unique properties of gold are pretty well. as you say going to now. and yes it is not it isn't really a commodity that it's a thing. key issue and so it can do you as it won't affect economic activity unlike pretty much any other. commodity and you could name we can't. or oil or wheat or on shoes or pork bellies or silver these are items to be used in day to day life but if we do this with a goal we don't disrupt economic activity in the slightest. that was investment professional edward boyer.

and the g.d.p. numbers are and the economy grew at one point seven percent from the first three months of the year headlines this morning suggest the u.s. economy is growing faster than expected but is this good is this bad what does this mean don't worry i've been through the fine print of the numbers and here's a graph of g.d.p. growth per quarter over the past year g.d.p. is up from the first quarter of the year and recovering from almost a standstill point one percent and the fourth quarter of last year. private consumption plus growth and investment plus government spending plus not exports that's plus. minus am and to break that up the total g.d.p. came in at about sixteen point six trillion dollars which is about twenty five percent of the entire world's g.d.p. consumption or public spending makes the bold at eleven point four trillion dollars

which is down point four percent from last quarter now the next category is investment which grew four point seven percent from q one investment is broken down into residential and nonresidential residential increase in a standing twelve point five percent accounting for a large driver of this so-called recovery however this growth would be difficult to achieve without the federal reserve keeping interest rates artificially low and purchasing forty billion dollars a month in mortgage backed securities nevertheless mortgage rates have increased by over a full percentage point since bernanke he threatened to slow down bond buying the growth and nonresidential investment is best understood. as a hollywood make over for government statistics the government is literally rewriting history by quote and proving and modernizing in g.d.p. calculations to keep pace with the ever changing us economy they're changing statistics all the way back to one nine hundred twenty nine and according to the

department of commerce business investment now includes research and development this makes the united states the only country in the world that includes r. and d. in g.d.p. some say r. and d. should not be counted as an investment but as an expense because not all projects go on to become successful for example the developing cost for a new television show is now counted as an investment because it could have long term revenue and this is where the card actually has come in reality t.v. is not included because it is not meet the three qualities ownership rights long life and repeated use however a show like seinfeld is because even after its initial viewing it could have additional streaming online sales and d.v.d. sales even writing a book or a greeting card could be included in r. and d. because it's considered creating content that can have an investment in the future now the next category of g.d.p.

is government spending which makes up about nineteen percent of our economy government spending is down as the sequester kicked in last quarter but state and local government spending is up. and the last component is that exports or exports minus imports exports and creased but growth was offset by increased imports and one more important calculation to note is the implicit price deflator the government subtracts price inflation from g.d.p. to count for rising prices over time which is a federal reserve mandate by law however as heritage scholar james he believes the price to flater is vastly undervalued additionally the recent updates to the way government calculates the makes the deflator even smaller now the recent changes to the way g.d.p. is calculated and the flavor of g.d.p. by five hundred fifty billion dollars for the last reported quarter is also decreases our debt to cheap our debt to g.d.p.

ratio possibly making the us like more sustainable to its creditors now the government can move the money around all at once we all still were able to read what's in the fine print and coming up next bob talk shop with gonzalo lira and because this is prime and just you know it's all about the fed and then bob jules was breaking the sets abby martin about the new apple lawsuit and our own duel with the star in chocolate being factual. i would rather as questions for people busy. instead of speak done their bit and that's right in front of my bill larry king now right here on our t.v.

question more. the guantanamo bay detention facility was. eleven years old the broken presidential promises the congressional sabotage the never ending war on terror all forces and conspired together to keep this prison open but now a hunger strike brings the tear it all down as this hunger strike near six months r.t. takes a closer look at the prison just can't be closed. pretty much in the field that find it here if you're looking for relevant stories unique perspectives on top of my scans.

there has been much speculation over who will take over as a federal reserve chairman or chairwoman next year it could be former treasury secretary larry summers or current fed vice chairman janet yellen so earlier i spoke with gonzalo lira economic blogger and founder of the strategic planning group about who he expects will take the reins out of the fed in the next year. you know on as of attention being very concerned about the well i am mapping fence dual mandate which is price stability and full employment janet yellen historically throughout her career since way back in ninety five she's been very concerned about

employment and she is considered one of the dumps and so far us on the music that is she has a reputation for being in favor of continuing cutie. but at this point in time not the federal reserve board is very much divided on the quantitative easing now it is not that larry summers is and type q.b. . you know that he's against you read he has a proposition. also larry summers is not personally popular with either obama or many people is a mystery and there are a lot of it will point directly into the. numbers is a terrible match made catastrophic bets when he was president or are are going down in the last several billions of dollars because it is decisions his word decisions decisions which at the time were obviously going wrong headed and which proved even worse after the fact that after two thousand crisis so

a lot of people are saying that larry summers is the last person you want on earth to be chairman of the federal reserve and the fact that he lost out on the world on the presidency of the world bank that he lowered. chairman points at this point of these to me that barack obama will probably not go with larry summers no matter how much lobbying larry summers and coterie. you can deploy and so far she says i think that janet yellen is going to be the next fed chairman but larry summers is an extraordinarily capable of. he knows how to swim the washington. so unlikely i would think that he could very well wind up in spectrum and i think that if he doesn't beat us off. because he's terrible but you know you never know you never know but let me go back to something you said before you were talking about money printing and critic and i know you're also talking about hyperinflation on your blog critics say that we haven't seen the price inflation yet you know and

we have these almost now two trillion dollars in excess reserves do they really matter. what i think they do the thing is prices have risen so far. specifically oil and gold have risen since two thousand and eight but they've doubled since then since their two thousand a levels right and so i wouldn't go so far there hasn't been even i say it's obviously not a deflationary pleasure pressures have been far greater than the inflationary pressures up to this point. and so as a as an about hyperinflation east absolutely have to i have to say that there hasn't been the price rises that would be expected at this point. will they not happen in the future i believe that they are that they are going to have to future because i don't see any other solution to the amount of. cruelty to be injected into the markets. at this point it's obviously not happening will it happen to future i do believe so and i have very good reasons to believe so. going back to

the issue of. bond markets quantitative easing has been supporting the fed the treasury bond market and that's one of the things i was thinking back at once there was a loss of faith in the treasury bond markets that commodities would rise much further than the have a lot to wait and see oh we will have to wait and see we were seeing a bond yields rise as we wait here and i would ask you one further question about this what do you think is going to be the trigger event that would spike bond yields that would spike this hyper inflation that you're waiting for. it could be anything and i would suspect something stupid because he is a lot of times when you're standing on the very edge of a cliff and it's not like a big close it's an zero it's just a little slip out. of the trivial event if you recall in one thousand each. i think that's part and he said it was

a little trivial incident that happened in between ukrainian gunships and a u.s. destroyer it wasn't even a confrontation or say it was just a little. shot across the aisle and that's what triggered the eighty seven. in my case of what would have been. lost in the dollar because to me i don't think that it's something to be trivial something market so certainly we could see there is this analogy it's called fingers of instability it's grains of sand coming down and you never know where this little avalanche is going to occur and unfortunately we're out of time here so thank you so much for joining me this is going as a layer of economic blogger and founder of lira strategic planning group. joining

me is breaking this host abby martin thank you for coming back here on man how are you oh i'm doing great let's talk. let's talk apple because it looks like there's a new lawsuit and no it's not for transferring corporate profits to ireland and other offshore tax havens this time apple is under the microscope for subjecting employees to mandatory bag screenings these are searches that are intended to prevent theft supposedly in the suit to former employees are demanding overtime compensation for the bag searches that took place after their shifts were over the so what is what is your take on this all it's better than having suicide nets around fox com which is a manufacturing plant in china that they were now barely allowing workers i mean i had to sign a promissory note i won't commit suicide so i guess it's a step above that but still i mean mandatory searches i think it's your overall even from even. for a private company that they just want to protect themselves sort of among those

walking out with the bottom on the clock and that's what a boys are saying ok they want compensation for the time they said it takes five to ten minutes on top and cutting into their lunch hours to be searched mandatorily. i mean seriously could we see the t.s.a. for all the time that they waste when we have to wait in their lines i don't. i mean i don't know i think it's different you're talking about people who are subject to t.s.a. measures in order to fly whereas people who are actually working for a company getting paid and then having their free time by having mandatory searches ok but apple is under a lot of scrutiny lady lately do you think this is just part of an overall scheme to like just stick it to him. what scrutiny or then they have all these offshore profits and in ireland like hundreds of billions of dollars and i would say further that seems like there's pushback on the tech industry it seems like the government really wants to they want to push people whatever it is they want to regulate tech industry and so they're promoting these stories in order to put these companies

under the gun could it just be a big publicity hunt well i think i think i'm going to go on the opposite side of where you i think that you're really trying to protect this giant corporation whereas i'm on the side of the employees in the workers saying you know maybe at the end of the day they can get searched once but i mean every time they leave this story i think it's a little bit stop ok it seems ok i'm on the side of the employees in that they should be compensated for their time i'm not just trying to protect any big corporation i see that tech field is one of the last bastions of true free free market capitalism so i think there is definitely a push against that and we're going to have to go into that all right so we hear about privatization of schools and prisons but what about privatization of water now the former c.e.o. and current chairman of the nestle corporation you know about a little bit about brave act recently commented that water should not be a common good but a privatized commodity so keep in mind the number one seller of water is in fact nestle right here we hear a lot about the chocolate industry when you think of nestle and this isn't even

about the slave labor and the chocolate this is about water and i think when you're thinking about water it's a resource that every living thing on the planet depends on to survive i mean it's like air. the bombings that. so i mean when we have this. and this giant corporation wanting to privatized monopolize a resource that's integral for human life i think that that's a troubling aspect ok well we actually you called them out on this recently we actually have a clip of you kind of calling and they've responded so let's play that right now. i'm stephanie from nestlé we saw the video you post on you tube criticizing nestlé overwater so here's our response. you claimed we make huge profits on both water but the figures you quoted were wrong in reality we pay move all water and other groundwater uses. override so where does the land does this come from i mean it

comes from a lot of places a lot of places that actually incur drought as well and nestle has actually over local government is apologies to say that we are going to continue extracting water during the drought the sheer profit margin is fifty three million percent not take into account the bottling of wasteful plastic around water there's actually that causes the amount of time but i had a little bit time to push back on your privatisation or you think privatisation you know when you're privatizing water that's next era oh sure if you want to win then so be sure to like us on facebook at facebook dot com slash barometers and don't forget you can follow me on twitter at abby martin you can follow me at and wish p.r.i. be thank you so much. and

it was a predictable day on prime interest the fed speak was same old same old as we say no more q e but is just a matter of time before it's tapered off in the meantime bernanke he might just end up monetizing health. do you think his replacement will be summers or yellen are going out of a lamb and saying it's neither but a there is no news and the truth great and the hit job on apple continues no one seems to consider the future of our monetary madness ellie's gonzalo lira and edward moyer are keeping their eyes on the whole estate ball and we just knew abby martin would get worked. up about some of our favorite fortune five hundred break aside girls it's not ours and thanks for watching it makes or to come back tomorrow from everyone at prime interest i'm perry and boring and have a great night. last

night was a new alert animation scripts scare me a little bit. there is breaking news tonight and we are continuing to follow the breaking news in the. alexander family cry tears of joy and great things other than. the ever red dark and a quarter of a wall around online there's a story made sort of movies playing out in real life. i

would read that as questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question more. more news today violence has once again flared up. these are the images called world has been seeing from the streets and canada. china for asians to rule the day.

coming up on our t.v. more is learned about the n.s.a. and their top secret surveillance the latest leak reveals a program that stores the internet activity of millions and that data is accessible without a warrant but we've got extensive coverage of the growing surveillance state ahead and yesterday bradley manning was convicted of violating the espionage act now the sentencing phase begins with manning possibly facing over one hundred years in prison an update on the case and the protests the guilty verdict spawns. and in montreal police have found a new way to track protesters it involves using special u.v. ink to mark and track people who took part in protests more on that ahead later in the show.