the marketers moved in to the united states and then when you look at what's going on in detroit now in keeping the metaphor for the united states it's a new form of voice stary t. measures here's how it goes we go bankrupt we don't have money to pay the pension is and the people that earn their money but i'll tell you what we have money for we're going to pay back those bags seventy five cents on the dollar how's that so when you look at woods going on in detroit and see what's going to be going on around the rest of the nation we're going to have these same problems this is what you could look forward to add one more word president obama say that detroit wasn't going to go bankrupt. well he might have said that and i would add the japanese they do produce some good cars but we have a key manufacturing statistic that came out today it's the manufacture report and it was fifty five point four it beat consensus so what are the relevance of these

economics is i mean statistics to our economy right now. well that was a look at the one that came out of ad of china and that came out in fifty point three and it's just up from fifty point one if they're still weak and i believe the ones from china as many people do in the business they're being redeemed and it's very important because if the united states doesn't buy and japan and europe doesn't buy china doesn't make and if china doesn't make that noise trail you're brazil canada olivia chile all these natural resource exporting countries they don't sell their products we're looking at a global slowdown everyone knows that when these q e two stop q e three and when interest rates go up and they're going to have to go up listening to your report about construction spending when mortgages when interest

rates go up the economies go down and the bubble in china it was built the same way as this q.e. bubble has been builds well china has certainly had some short term funding problems or money markets have seized up and it's very similar to what happened in the united states just prior to lehman so what is their exit strategy from all this what is your prediction of this. they don't have one the same like here how they are going to get out of the tapering once they start dumping eighty five billion dollars in buying a bonds or government backed securities where they're going to do for an encore how are they going to keep interest rates low and you pointed out that that the thirty year rate went up one hundred basis points and actually the quick is rising twenty six years so when the end is sit in china more than just a credit problem they have a huge debt problem and they have a huge balloon of

a real estate bubble in other bubbles so and by the way you don't show. his greatest fear is what people they're people when you look at you know with the with the with the gross product is for the average person in china it ranks like around baghdad with a dash in iraq so what you're going to see are built hundreds of millions of angry people and they're not going to be able to control them this is a huge issue that doesn't make the media ok let's switch over to the u.s. and the federal reserve monetary policy we have bernanke it looks like he's going for the exit doors is it going to be summers or is it going to be yellen or some other third party. well of course there are the people in the real democratic party that want yellen and they want to put a woman in peru particularly pelosi and others and then on the white house side they want larry summers let's take a look at larry summers let's you cannot mention larry summers name without adding

the word brilliant either before in the middle or after every time this guy showed up when he was heading the obama economic team it was always the brilliant larry summers what has the brilliant larry summers ever done that has turned the corner of the economy absolutely nothing one failure on top of another and one other thing about the brilliant larry summers this is the same guy at the last end of of the clinton administration who pushed through the glass steagall act that deregulated the banks that allowed them become to become because c. knows they gamble that brought about the panic of oh wait that's larry summers and then you look at yellen and go back to the fed minutes that were released five years later after as they always do they hold them back and she along with the rest of them every one of them called the panic of a way wrong as it was evolving so it's more of the same and worse well yeah that's

actually something we pointed out on yesterday's show was that if you look at yellen she was she was simply cheerleading on this expansion of monetary policy during a real estate bubble and then if you look at summers another thing we've highlighted is that she pretty much tanked the harvard indictment fund so could it be that there is going to be a third person that comes in here is this just like a p.r. campaign for the media to float various options here whoever it is it's going to be a member of the club and it's going to be much different than what exists it's the same crew. so the so let me ask you what is the expectation we have expectations of tapering at the end of the year now maybe maybe not it seems like there is a new policy every day unknowns what is your prediction of the length of q we are going into two thousand and thirteen and two thousand and fourteen even. our it's

difficult to say but what we do know is that interest rates are going to have to go up yes and there's a global ponzi scheme of printing digital money not worth the paper it's not printed on is going to happen and when interest rates go up the economy goes down period paragraph it's in every country it's the same thing again the all the reo look at retail sales what's driving retail sales the most one of the big items automobiles tell you what so you don't need any references any any references at all will going to give you a loans zero per se doesn't that sound familiar what they did with the real estate market they're doing the same thing with the auto market and that's a huge sector is society so as the interest rates go up the economy goes down when will the interest rates go up on their own and the fed won't be able to jack him down because after all they say they're going to keep it at zero i don't know it

seems to be a paradox because they say they're going to taper in other words they're just going to take their monetary foot off the pedal but at the same time they're going to take their own interest rates or keep them low into two thousand and fourteen two thousand and fifteen maybe what is eventually going to drive interest rates higher . i think you're going to see a deep basement of the currency and that's why so many people still believe in gold and roy one of them and so you're going to be able to debase the currency is only so much and then they're going to have to do something to strengthen them when that happens then you're going to see interest rates go up well when you talk about debasement of the currency what is what is the alternative to that are we going to receive are we going to return to a gold standard or acquires a gold standard i believe that zoellick the former head of the. world where you have world bank thank you i think he came up with the best solution and yes gold part of a basket of currencies it was the you won the dollar that your o.

and gold or some other precious metal maybe possibly silver but i see i see it in a new world reserve currency in the future ok let me ask you about this new world can you do you have any are there predictions from your trends in newsletters that you can share with us here and we have just about a minute left. our greatest concern is war and the war in the middle east if there's a civil war going on now in egypt they're not calling it that i mean after all in the united states they still don't call it a military coup i mean how could anybody buy that b.s. line and so it's not going to end it's not going to be a happy ending and you also have a civil war in syria you have one in libya you have one in yemen in bahrain they're not calling them that that's what they are as long as the united states israel iran lebannon russia china would ever become involved in these conflicts you're going to see these civil wars go to regional wars that's our greatest fear so let me ask you

can you expand upon a regional war how would that play out again we only have about thirty seconds but what would a regional war look like in the us if the u.s. were involved well it was the u.s. supplying of course now the syrian rebels and we think the trigger points going to be israel israel already has bomb syria twice and they'll have another reason to do it because now they're saying that they didn't get all they had missiles the last time so that's what we think is going to be the flashpoint and when that flash point happens then you're going to see other countries in the middle east probably unite against israel that's that's that's a very provocative statement and unfortunately we're out of time thank you for joining me this is gerald selecting the director of the trends research institute and coming up period breaks down the durbin amendment we promise it's not too long retailers have been saving millions at the expense of big banks but they're still crying foul yesterday a federal judge handed down

a ruling that could mean lower costs for retailers and customers alike then later i do a political commentator sound on fast foods and the ratings agencies so it turns out that they're turning more tricks. the conviction of bradley manning and the continued countries that snow could be no doubt whistleblowers will be intimidated and imprisoned by the powers that be at the same time american and western publics are not told to be enemy is that stop secret costing lives in precious treasure don't we have a right to know who we're fighting. choose your language. of holy week over the internet still some of. the pews the concerns here can. choose to opinions that invigorating. choose to stories that impact the life

choose me access to often. you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harpur welcome to the big picture. there's a media leave us so we leave the media privacy potions to cure. all your party there's a goal. for shoes that no one is asking with the guests that you deserve answers from. politicking only on r t.

if. live. live. live live

live . from one reverberates through the centuries when vengeance called for blood. i have imagined hanging on this member three years to throw. it out wave law and face in the caucasus. vendettas were handed down from generation to generation that killed my son with impunity to killed them with impunity it was a question of can once mortal enemies be reconciled today.

on r.t. . wealthy british style. market why not. find out what's really happening to the global economy with max cons or a no holds barred look at the global financial headlines tune in to kaiser report on our. am a swipe fight can ten years of doing credit card companies and retailers over who should

bear the brunt of the debit card swipe fee burden on wednesday july thirty first a district judge shot down the federal reserve's rule on the durbin amendment which kept a swipe fees at twenty one to twenty six cents the court said the cap was not for conan and nuff the durbin amendment was a last minute provision added to the dodd frank financial reform law that drastically lowered fly. visa took a bite out of bank's revenue while we're discussing the case with breakdown interchange fees they're also known as a swipe fee and by definition it is a fee charged to merchants when a customer pays with a credit or debit card when a customer for example swipe their debit card at a retail store there is a hidden be assessed by the banks to process the transaction the banks negotiate between each other and the fee is charged to the merchant bank the swipe fight is contentious because it's a very lucrative industry interchange fees represent about fourteen billion dollars

per year before implementation of the durbin amendment swipe fees averaged forty four cents per transaction the fed kept those fees at twenty one to twenty six cents the court however threw that rule out yesterday and swipe fees will likely have to be lowered even further the sponsor of the measure as senator durbin said it would be good for consumers he claimed credit card companies are being unfair and setting the price too high this is how soon your durbin explained it. over dinner change for you was in the range of forty cents per transaction the actual cost the actual costs. may be even less they were charging three to four times as much over the cost of actually clearing the transaction to merchants and retailers across america. the durbin amendment mandated debit card swipe fees to be reasonable and proportional to the cost

incurred and savings were to be passed on to consumers passage of the durbin amendment was a win for retailers they have already seen eight hundred twenty five million dollars in savings according to the electronic payment coalition retailers however are not contractually obligated to pass those savings on and shoppers are actually paying on average one point five percent more the billing is that reported that retailers out of the gas stations are pocketing the money that was intended for consumers on the other side of the equation are the banks who have lost revenue by having to slash swipe fees these costs to the banks are being transferred to consumers in the form of reduce ervice says and higher fees according to bankrate dot com significantly less banks are offering free checking and more banks are charging higher fees citing the durbin amendment as the cards are yesterday's

hearing judge richard leon told the federal reserve that caps on debit swipe fees were still too high and john breaux well from the competitive enterprise institute pointed out that should the fed adopt leland's interpretation it will almost certainly result in more bank and credit union fees for consumers. but it's not all bad news so while merchants and credit card companies are arguing over who pays what and swipe fees the electronic payment system is quickly gave the market share over the antiquated banking system there is a full wad of new innovations emerging including mobile payments mobile wallets virtual currencies crowdfunding and more that's changing the way we financially interact with one another so if you're not sold by the durbin amendment don't worry it's not the end all and now let's get to today's daily.

jesu's bad if you get sam sadducees here for the daily duel and again what's with the lucent tie this is just too cool for school actual happy hour hello bob it's almost happy hour but ten minutes all right so look first story this week hundreds of fast food workers are on strike protesting labor conditions at the u.s. is the largest chains so workers at mcdonald's wendy's and burger king are demanding higher wages and the right to form unions your take should we pay workers poverty wages in america and what is that is that a great is not a great way to run an economy what are poverty wages wages in which you can't get out of poverty if you're making money but who's actually working at these companies like mcdonald's and wendy's and what would have you you know i think the average age is dropped from twenty to twenty nine so you're not talking about young people

is not an argument out of people who are raising families that are working at the traditionally or i would say traditionally minimum wage policy has been in a just one unfortunately it excludes people from the workforce because when you have businesses that only have that they have to pay a certain wage let's say it's ten dollars or twenty dollars an hour they're simply going to hire fewer people but because of the economic situ. that we're in yes people are actually working at mcdonald's to support a family that's the larger problem but no i'll give it to you that the obama economy that's been created as one of the low wage jobs now low wage service sector jobs that's the reality since we've devastator manufacturing base and since we've relied on wall street to manufacture most of the wealth in the country right now if you call it wealth ok manufacturing wealth on it i'm going to base it on her fitting well there you go but this is the reality we live in is now we have all these workers who are not young workers anymore they're older workers they're working in the service sector industry we need to be paying them enough so that

they can get them contribute to the economy and it look we're talking about yum brands we're talking about corporations that are making enormous amounts of money c.e.o.'s that are making enormous amounts of money in studies that have shown that if you raise the pay of workers that the price of food is would go up a negligible amount and that's something that we can all afford if we're making more money unfortunately that's a very i would say neoclassical maybe post can see an argument that we don't you know you would call it you have states exactly what i would call it that you can just arbitrarily raise wages and then the the economy magically recovered well what you need to do is increase real wealth and that that comes down to productivity we need to increase productivity we need to are you kidding me we needed to be has increased steadily since the seventy's and the only thing that has a lot when it is wages the only thing that has increased with our productivity is wages and basically all wear out all the fast food workers that are on strike and those who are advocating on their behalf are asking is that they get paid what they work for if minimum wage kept up with what it was in the one nine hundred sixty s.

they'd be making fifteen dollars and they would have dealt with this productivity that you so demand yeah would be over twenty dollars an hour they'd be well in there i mean as in the ninety's and sixty's a family of four could survive on one income one income so there's something there's a disparity there that something has gone a ride and it has to do with the purchasing power of the u.s. dollar being is gone awry in our economy needs to a down. but the bigger problem is wealth inequality in the fact that these corporations have the money they can spare but they don't want to ok we're going to move on to our next topic now. let's see here that according to a recent new york times analysis s. and p. has loosened credit rating standards in order to attract more business the report states that s. and p. has routinely given higher ratings on new mortgage bonds when compared to other ratings agencies this divergence became more apparent after s. and p. changed its bond rating criteria last september and in a related story wall street journal news j.p. morgan's recent settle them over electricity manipulation charges brings total

fines paid by the company to seven billion dollars which is actually a paltry amount compared to the profits of fifty three billion dollars and that's since two thousand and eleven so is wall street learning its lesson you know ok i mean it's this speaks to the point of psychopathy really running rampant on wall street s. and p. knows exactly what it's doing when they get sued by the government so what are they just like taking taking their medicine and the changes threaten all as we said which if you more good these these companies take into account what their crimes will cost them how much they might get sued and they make a comparison of it which they make off and it's like this side saddle airbags with general motors that will tanks with g.m. sure they are making calculations on how much they're going to pay and how much revenue they get yeah but why do they do that it's because the government allows them to do that we have these we have these veils of protection we have the e.p.a. we have you know all these regulatory agencies that give cover but don't actually provide any protection for the investors or the consumers so if we actually had a free market system in which these companies had to answer for their own actions i

would say we'd have a vastly different result or if maybe these companies c.e.o.'s were afraid that they might be thrown in jail when their committee well i were odd yeah i would have to they were they rather than just having to write a check for whatever their company earns in three days there might be there might be a letter is interesting there's an interesting parallel here because in europe there's a. but wealth management system especially in switzerland where if you're managing somebody else's money and you screw up in other words you cruel cruel you know you do fraud. basically you're you're on the hook for it i mean look these people are shortsighted they know they know exactly what's happening they think that they're going to make their money get out be somewhere in the islands or something when it all falls down and that was the calculation they made two thousand and two thousand and seven yes we know we're building up a giant bubble we know it's all going to crash but i will be a part of it when it happens i'm getting my money and getting out fortunately everybody is thinking that way that's going to set up quite a disaster i hate to tell you this but you are going to be

a part of it and unfortunately that's all the time we have today and they have other tool if you want to weigh this debate today show be sure to like us on facebook at facebook dot com slash prime interest you can follow sam here at sam's you can follow me english p.i. sam thank you so much for joining me yet again. and it was a day of status quo ante here ad from interest the bank of england said still let them on and s.m.p. was up marginally but not too far from a decade plus old trading range there was more job owning at the fed boring and a visa and mastercard are in the middle of a swipe fight with starbucks and seven eleven gerald solent a didn't hesitate to

make a few of dire predictions for our favorite reserve currency to which we were somewhat privy and our popular is to do alert mr sachs and dug into the mix devil and the slack as in peace standards no news is good news except it thanks for tuning in come back tomorrow from everyone at frye. i'm here and boring and have a great. the main competitor girl on the market is mother nature. may customers struggle with to. fight for each drop from an old turkey supply and.

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