perhaps you just b.c. is just getting ahead of the next proverbial dropping shoe so we will be connecting the dots of the story in the days to come and obama likes apple the i phone and i have had many factures i had been barred from importing some of these berry devices after a dispute with samsung before the first time since one thousand nine hundred eighty seven the president overrode in u.s. international trade commission and vetoed the import and when one considers the lovely money involved though the surprise decision might be so surprising up for all we're going to be very did two thousand and twelve albums combine political contributions and lobbying they totaled nineteen point two million dollars with contributions to democrats surging in two thousand and twelve in stark contrast from one thousand nine hundred two to two thousand and twelve samson was of new york three point eight million dollars and the trend is down in contributions so lesson learned samsung. bob will interview kyle harrington and discuss the markets later in the show and i take to the streets to meet online sales taxes with the

masses and here's what's in your prime interest. amazon a recently made national headlines announcing it will be adding five thousand new jobs across america the world's largest online retailer however also recorded seven million dollars in losses in the second quarter of this year so how is it that amazon can afford to ramp up business during a time of wise. well the online company is also a supporter of the online sales tax bill also known as the marketplace fairness act

if passed the bill would require american online retailers cardless of their location to collect sales taxes for all the states they do business and opponents of the online sales tax bill say small businesses would be disproportionately affected by the additional compliance costs and it would discourage online shopping earlier i spoke to several people visiting washington d.c. many of them from different parts of the country i asked them what they thought about the proposed online tax here are some of their responses. there's a lot of stuff america shouldn't be doing but they do it anyway i mean it's just another way for them to take money out of america's people's pockets and put it in there the for the economist the gloomy womb about that's not right. i have to pay a tax just to make a purchase. i might as well go to the store i mean. that's crazy i think one of the things that will happen is that people as long as they don't collect sales tax

people will purchase online more often so i would appreciate the fact that they would keep the sales tax off of online purchases that would be my choice i'm a educator from the state of washington and as a teacher i think that. you know that's important to consider but i also like the idea of not having a sales tax i mean do you think that we should have to pay online sales tax for these items no no i think you know. less taxes that are ok i think it could hinder jobs yeah that's always been the nice part about online shopping is you don't always have to pay all those taxes all over the place. now on the other side of the argument states are claiming online retailers are taking away from tax revenues and putting brick and mortar stores out of business california for example claims to have lost up to a billion dollars last year due to online shopping several states in response have passed affiliate laws which require online retailers with any kind of physical

presence and their state to collect taxes this would include companies who have to film and sitter centers affiliates or even just a sales rep in the state california however has put off doing this and two thousand and eleven amazon struck a deal with the state of california when governor jerry brown signed legislation that proposed new sales rose postponed new sales tax rules that would have affected online purchases in california those are the affiliate laws now granting more time for traditional and online retailers to lobby congress for a national standard on the high stakes issue watch online retailers like amazon already have some type of presence and multiple states so the federal online sales tax bill would not affect them small businesses however might not be able to keep up with the increased regulations opponents of the bill are taking sides with the states and physical retailers. if you're buying from an online retailer that's not

located in the state that you're in should you have to pay your state taxes to your city i'd rather not but i think that you should think it's only fair to bricks and mortar stores that there's an equal playing field i think that is going to give a lot of keepers and accountants new jobs that i think it's going to get really messy and it is a little bit of an overreach but if that helps the place of the states where people are purchasing goods i can kind of see where they're coming from. privacy concerns have also been raised with this bill if a state can require companies and other states to collect taxes on their behalf there would have to be data centers collecting information on. where customers live with what they're purchasing and how much they're spending online some consider this proposal to be an overreach. yeah that's i think that's like unconstitutional . care like yeah you can like impose that burden on. those other

businesses. the marketplace fairness act passed the senate earlier this year and currently sitting in the house judiciary committee with support from the biggest online retailers to does amazon barnes and noble and buy dot com to name a few along with the white house it's a feasible the online sales tax could be our next tax to continue this conversation about where you stand on the online sales tax bill follow me on twitter at perry and. i. i . i i. apple's latest win in the sam sloan patent battle well this was no small feat obama's veto on the banned import of the i phone four is the first time in twenty

years that it in ministration has overturned an international trade commission ruling no surprise apple stock reached a four month high today so we're joined on this by kyle harrington founder and manager of harrington capital management thank you how are you doing very well so apple is in the news again this week but let's talk about the broader picture of where do you see the tech industry going in the future in terms of the markets i'm a big proponent of technology in the industry in general i think that any outsized alpha creation in the stock market in the equity markets i think starts with technology in the united states i think that that's where the innovation the entrepreneurial spirit remains and will continue i think we have made amazing strides just from being in college to now where there was no cell phones now they're cell phones and they have i pads are and i think it i think it continues so you know part of our focus at harrington capital management is investing in the

technology arena you can do that through individual stocks like apple which we own let me look let me ask you a question because you brought up an interesting word which is there's also another word beta could you break that down for viewers no problem altho basically what i'm what i'm highlighting there when i say outsized alpha is rates of return so if this year the stock market has returned so far twenty percent. if you're up twenty three percent then you've created three more percent of alpha because the indices are at a certain rate of return and you've you've created more and i think in order to create more rate of return in your portfolio where you're going to need to concentrate our areas like technology and like biotechnology will go out for example i'm sorry so let's talk about portfolio balance we have stocks we have bonds cash even commodities word is your firm stand on where we are in the markets

right now what's a good balance yeah i think that fixing them fixed income market place bonds we don't see a lot of opportunity in terms of rate of return there we see interest rates at extremely low levels and i think that with that there's really nowhere for rates to go but upward i think right now they're on pause until this job market gets better and as these rates go up word bond prices go down they move in opposite directions and so why would you put money in the bond market right now get abysmal rates of return and simultaneously as this market gets healthier your bond prices are worth less i don't think that's a good area to focus and we're focused more on looking at dividend paying securities so equities for example and intel of the world a company that we think the company itself is buying back stock they have

a tremendous amount of cash on the balance sheet and for owning that stock you can get an equal rate of return in a dividend and you're exposed to the equity markets versus the bond market so we don't see a lot of return in the fixed income markets we like the equity markets seen ited states having said that i think you still need to be cautious we are in the summer time you know let's talk about how to be cautious and we were a little bit less volatility and we're bernanke you started his job. you threaten to pull the proverbial punch bowl and that would be tapering which we talked about so wrists markets basically plummeted in volatile it is shot up and there's a key indicator volatility and that is market fear and it's called the vix so basically you know it's right down back to where it was before may what does this mean and how do you how do you see this development it's a very good point and volatility in this market in my opinion i've said this throughout the year i think will remain throughout the remainder of the year i think you've seen it die down a bit because we are in the summertime for example today if you look at the stock

market you'll see that the volume the amount of shares traded today is less then you know outside the summer months in a lot of people on vacation a lot of people not paying direct attention to their portfolios because they are on vacation and so i think volatility after labor day continues especially as you know we're going into the fall where there's going to be very detailed budget talks for the united states government we're going to look at the debt ceiling we're going to look at expenses associated with coming out of d.c. and so those are going to be some volatile times and like you highlighted which is most important here ben bernanke is all eyes are on ben and so as he you know decides maybe to take that punch bowl from the party you can see huge volatility in the dow jones and s. and p. and averages certainly and we're going to talk more about that punchbowl you know coming up and i'm going to continue my conversation with kyle harrington but then

after that i'm going to get back into it with tom hartman to the big picture now the last time we duelled we ran out of time and we're talking about glass steagall in the fed so we will simply pick up where we left off. the main competitor girl on the market is mother nature. make us to murders struggle with goods. fight for each drop from an old dirty supply. let people think i are prices pure or want to. live on our teeth. they use it up there and wash their hands. and flush their toilets when the same water. nestle's is selling and spraying water.

we speak your language will not advance the. program since documentaries and spanish matters to you. a little turn to angles the story. the spanish find out more visit. with economic up and downs in the final. night and the rest because i think it will be a great week. guess

what we're back with more from kyle harrington is a founder managing partner of harrington capital management so we were just talking about the chairman bernanke and the stock markets and we see stocks at record highs u.s. and p. five hundred having some surpassed seven hundred last week so what will happen when the fed eventually tapers and how do you protect yourself from that event that's

a great question i think the. it is the question you know you are you come off the summer where liquidity is light in the markets you go after labor day and then you have discussions of ben bernanke potentially changing minds and pulling. the punchbowl from the party here and i think what you do is you do the following you have to stay diversified in your portfolio you have to understand your risk tolerance everybody has their own individual risk tolerance and i think you have to identify that and then put to work a plan that mimics what your risk tolerance is i think stay diversified meaning have some money allocated to the international marketplace have some money in allocated to the domestic marketplace me in the united states and then look at the different sectors have sector exposure so technology biotechnology what do till the year what about commodities themselves and where do you find that as part of a balanced portfolio now i think you definitely have to have

a portion of your portfolio exposed to the gold and silvers of the world as a hedge against the u.s. dollar i think that as the debts if the debt ceiling is revisited here as we look at our on our way to a seventeen trillion dollar deficit number the dollar you know in the credit rating of the u.s. can be under siege and i think that when that's the case having exposure to some commodities like gold and silver makes a lot of sense as a hedge against that possible downtick is a possible that we'll see a new form of capital controls do you think if we do get into a somewhat armageddon situation like a bomb like the no i think that that's you know we potentially could see that especially if we get into an armageddon mindset or again and we have to we have to take this into consideration you know that the threat of terrorism is is still there as we've seen currently with embassies being closed across the world and so when you have that sort of threat you can add to that volatility. in the

marketplace as well still being diversified being exposed to different markets and having hedges in place in the commodities area i think are very important ok let's get back to some of the fed's metrics for tapering because it looks like when they pull back on their buying power bond buying their magic number of seven percent that's when the tapering begins and we just had unemployment take down the seven point four percent but one of the curious things about all of this is that as people exit the labor force that metric can come down by itself i mean where do you think this fits in and do you think ben bernanke is thinking about this too though i think ben bernanke he's got his you know i went to princeton undergrad and then was a professor of economics at princeton and i mean he is a very smart guy i think that he is watching very closely at this market and that the jobs report and you know the reality is that this last jobs number while the rate went down you had a participation rate that has not been as high as the store people literally

dropped out of looking for a job right and then in addition to that and let me add this is that fifty percent of those jobs were jobs that were created for twenty dollars an hour or less so in the in the temporary restaurant arena as you know is one of their jobs i'm just saying that we want to see more of a healthy creation in the jobs market before i think ben pulls the you know the like a you said the punch bowl from the party otherwise you could see a very big down take in the markets right unfortunately those jobs are just not very high quality and most of the fed doesn't look explicitly g.d.p. as part of its overall metrics it does certainly monitor it and i believe that you've recently stated that you think it's going to remain sluggish for a while why would this be i think i think so i mean you know we have i think about a one point seven g.d.p. a one point seven percent g.d.p. growth most recently i don't see taxation i don't see the bureaucracy coming down and the entrepreneur be. motivated to

go out and create new companies and create new jobs in it and i think until we address some of those areas in the united states the entrepreneur is not going to be as motivated has as he has been historically to go out and seek financing or put his own capital to work to create new companies which in turn create more and more jobs i think we're kind of at a point where we're seeing this hundred fifty thousand one hundred sixty thousand new jobs created every month and in order for the unemployment rate to come down in a significant way without people dropping out of the workforce that number has to be more like three hundred thousand jobs a month. and unfortunately i don't think we're going to get there any time soon so i don't either but thank you so much for joining me this is carl harrington so much founder and manager partner of harrington capital management.

joining me again is tom hartman of the big picture thank you for coming back here i really do appreciate your posts are about. the first time we've talked we were talking about glass steagall so let's pick up kind of like where we left up so nine hundred thirty three stiegel legislation it was an attempted solution to some of the problems that caused the great depression and now glass steagall essentially separated the banking universe from the gambling universe and there were attempts to reinstate it with politicians using twenty twenty hindsight hopes are they doing it well let's be clear i still stood from thirty three until ninety nine or two thousand grammys boiling right and i don't know if it went into effect which in europe but you know it's and at that point suddenly the gambling banks could merge

with the banks that keep your checkbook and they could use your check. but money to gamble with the gnome that blew up in two thousand and eight and two dozen seven to go and so now there are i think it's twenty twenty hindsight i think it's a good idea to bring back but there's the problem that i see is that there is so much money involved i think graham leach wiley which was basically used to replete repeal of glass steagall was just because there was so much money involved the fed was printing too much money and there was all this money that they wanted to gamble into rivet of with in the first place and now we have a seven hundred trillion dollar derivatives market and so we still have it and the legislation that is being introduced nowadays is pretty much toothless in my opinion i agree and you have to keep in mind the genesis of this whole thing phil graham's wife when he was on the board of directors of enron yes he was ken lay of enron wanted to be able to have his own bank he had over seven hundred different corporations and he was doing the shell game of moving losses into one corporation profits in another corporation which goes on in many places today and many

observations g.'s doing that just do it but but the point is that he wanted to be able to do it with his own bank so he could hide his own you know behavior and he was also wanted to be able to gamble in energy derivatives and he couldn't do any of that stuff so there was actually two pieces of legislation in the commodity futures modernization act both of which phil graham proposed both of which ken lay wanted ken lay got enron got to play their game like crazy and of course crashed and burned doing it and then everybody else got in and started playing the enron game and the entire american economy crash and burn so really you're absolutely right but we need to we need to go back and say there's a huge loops from the end of the clinton presidency and it's time to go back to making banking boring yes i agree banking needs to be boring but i'm really interested in the the the opinion of the progressives on the federal reserve because i don't i think that you're you're somewhat against the subsidies against the banks or to the banks but i'm not sure if there is an understanding of the

incredible large aesthetic. as to the general economy so what is your opinion of the federal reserve i think that the fed should be answerable to the people directly and i don't think that it should be on by a bunch of private banks nationalized yes i believe that the fed should be part of the treasury and and should operate with greater transparency and it should be audited every year and bernie sanders pushed really really hard for that we did one year audit we discovered that the fed had created over thirty trillion dollars worth of money you know during the during the crash to those exactly and there were many problems with that audit in the first place i'd like to move on to your opinion like what does it actually take what is the meaning of our national surplus you know our bones of payments how does that fit into your view as a progressive well the balance of payments the balance of trade that's one thing debt is a whole completely different thing balance a trade you know for making things or creating wealth if we're buying things we're losing wealth and ship it overseas but that doesn't necessarily mean as you know a debt is simply an expense it's an expense on the balance sheet of the government

and the question is can we service the debt and in a day in age when we're spending hundreds of tot why i don't know what the multiplier it is but if you consider the military budget of the united states and subsidy what fraction of that is equal to the amount that we used to service our debt if we could just on wind ten twenty percent of our military budget we could probably easily service a debt that's two or three times what our debt is for whole how likely is it that we're going to unwind our military put well it's relatively unlikely and frankly i'm not arguing that we should have more debt but if you look at modern money money three. government debt publics right debt is private sector savings and this is where the private sector is putting their money on the other side on him and of course when you're on wind that debt what do you get you get a contraction of private sector savings which can work for you or against you depending on the other incentives you have you have incentives for people to on why those savings and put them into productive capacity you know to move manufacturing

back to. states for example surely good so let's talk about m.m.t. here because one of the things that they talk about is these national the county identities and they kind of conflate the public's new churches with private expenditures are these two things equal in your opinion i mean there are two of the three principal variables on the balance sheet i know there are two the three principle variables but what i'm asking is does a public government does is it able to act as an efficient agent of spending money versus a private corporation do they have price incentives that are not available to private corporations is it more efficient it depends on your goal i mean right now you've got private corporations that are spending money making money and stashing trillions of it overseas. that is not efficient from the point of view of americans trying to do what's best for america on the other hand if the government is spending that money we can work but thank you for joining me if you want to weigh

on today's show be sure to like us on facebook at facebook dot com slash prime interest you can follow tom tom underscored hartman you can follow me. thank you for joining me on today's daily dose thanks bob. well it was a dismissive day on prime minister as the too big to fail h.s.b.c. sent the pope packing without so much of a kiss i mean this is worrying that along with those forty other diplomatic emblems so just who is the laundering the money now we can't wait to find out what helps an obama since samsung packing the court that is. a nothing paying one fave with uncle sammy totally how's your back and it looks like the average joe joe. oh is

a frowning at his online sales tax burden finally harrington found no country for old e.t.s. as he broke down what constitutes a balanced investment profile thanks for watching please come back tomorrow for more of what any your party mentor as from everyone here i'm sorry i'm boring and have a great night. i

would rather 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 r.g.p. question more. right from the scene. first trip to the night gripping picture. on our reporter's twitter. instagram. to be in the know. on the.

well known told him a lie. react to situations i have read the reports and let you know please you know i will leave them to the state department to comment on your latter point of the month police agency if mr k.l.a. car is on the docket. they do no more weasel words when you know they did the right question really prepared for a chase when you have to punch be ready for a battle for the speech and now the freedom to crush. you know sometimes you see a story. you think you understand it and then. you hear or see some other part of it and realize that everything is. welcome to the big picture.

wealthy british style. writers. market. find out what's really happening to the global economy with mike's concert for a no holds global financial headlines kaiser report. more news today violence is once again fled the film these are the images the world has been seeing from the streets of canada. today.

the force feeding of end mates and fresh claims of sexual abuse by guards groups one tonne of a bay prison where a mass hunger strike as andor that seven months. two years after violent riots what the cross the u.k. britain's youth say the a lack government support with one of five young people out of work. and unlocking the tycoon one so russia's richest man. could be freed in a year's time after the country's supreme court cuts his prison term by two months .