that does it for now don't forget to tune in tonight at nine pm for larry king now i marinate have a great night. i would rather ask questions to people in 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.

good afternoon and welcome to prime interest impairing and boring good and let's get to safe headlines do it. all the feds are making the college try cracking down on the big banks both an energy manipulation and a surprise surprise because it's first to see f.t.c. has formally subpoenaed the aluminum industry which of course means j.p. morgan morgan stanley is also in the commodity regulator cites the issue as we've been discussing and vasya shuffling pallets of metals into a warehouse to technically comply with exchange regulation the problem is that it's been taking up to eighteen months for end users such as coca-cola to get the stuff the last time this you have to see investigated metals market manipulation and that

would be silver let's just say that well as well as the do you have good luck with that one whitewash so you have to see and then there were a bit coy as we discussed yesterday the state of new york launched and glory and a crypto currency is now the senate is involved it seems a touchy issue ironic when the first wrongness of these so-called currencies inquiries have been made and the senate wants to ensure quote coordination going forward and to us nothing is official and tell formally investigated by congress and congratulations but coins now in the back and funnily enough to get a bit too wonky there is this group called the public company accounting oversight board whimsically. basically if you want to be a treatable public company you have to hire an accountant who certified bit so because of myriad doubling of accounting statutes and regulations the cost for the average auditing cost for small businesses has tripled over the last decade well

the quantity of what the so-called auditors now have to disclose both good and bad news is increasing also find out the. option of the auditor is a company for accounting and quote aggressive and like good luck herbalife bob will talk with austrian. aashayein economists richard evil lang and just semantics and i will dig into the fine print of foreign aid going to egypt later in the show. and here is what's in your. little ink and bandwidth has been spilled about the austrian economists such as

friedrich hayek ludwig one mrs murray rothbard so we've taken it upon ourselves to interview someone who knows two of them personally earlier i spoke with richard eberling economics professor at northwood and i first asked him about well you guessed it quantitative easing and the future of bernanke the so-called exit. the problem is is that quantitative easing means nothing more than the federal reserve's intensive expansion of the money supply to just take a second to make sure we understand this is basically what the federal reserve was doing for the five years before the economic crisis that began in two thousand and eight for five years the try to reserve increased several measurements of the money supply by over fifty percent they had pushed interest rates to two bull below. zero and when discounted for inflation and it's basically about monetary expansion and interest rate manipulation that created the house of cards that resulted in the

recession that we've been slowly recovering from then sense two thousand and eight two thousand and nine the federal reserve using the official term quantitative easing has basically attempted to inflate the economy again and in fact by measurements that they use the money supply has again been expanding over the last four years by over forty percent the result is is that this is basically been a distortion and a manipulation of the economy first that it created the crisis and now they're attempting them to get out of it the difficulty of course is is that this is fail we are suffering from a recovery that is one of the worst since the end of the second world war in one thousand nine hundred five certainly by the measurement of employment recovery and i think most of us understand in a general sense that one of the major roles of prices in the market is to bring supply and demand into balance that applies in the financial market as well

interest rates as a price as opposed to bring savers into balance with those who want to borrow money with investment purposes and basically through this is the pushing interest rates to near zero in measured much in nominal terms but negative when it inflation adjusted basically this is been a price control that is kept interest rates from a law. and savings and investment to balance for the last four years and therefore creating the likelihood of a of a somewhat a type of investment and housing distortion that created the original crisis and other words a way of saying this is that i will not be surprised if if if looking down the road a little bit we will be going through a necessary economic correction again to compensate for the fed's attempt to overcome the last crisis that they themselves created and certainly interest rates are the price of money and it's not it is reminiscent of what happened over the board to where the fed actually pegged long term rates at a certain level of the believers to point five percent and when we lifted these

prices and wage controls and world war two we then embarked on a national prosperity would you say that's the correct case and do we have to go through another economic crisis to get to that stage again. well i think that the attitude of the fed right now and of course obviously pushed by the obama administration as well is that the federal reserve should focus on trying to stimulate employment growth to use their ability to control money credit in interest rates to induce an artificial profitable ness for businessmen to hire more and through expansion of investment the problem is as the famous austrian economist friedrich i it argues are there is no tradeoff between inflation and unemployment in the very attempt to stimulate employment that monetary expansion tends to distort interest rates they distort investment signals and decisions so that in fact the employment that such monetary expansion generates in the short run

is likely to be found misdirected misplaced and mismatched and therefore setting the stage for a new downturn correction in which it's going to be discovered that people have been drawn into employment that are unsustainable once the stimulus and and therefore the economy has to shuffle around again and people may very well temporarily lose. there are jobs as they discover what the real market is saying where the employment opportunities are that hopefully would be sustainable ok i want to circle back around to the fed in a bit but you just mention hi again i know from our discussion earlier that you actually had some personal interaction with them so would you care to share any personal anecdotes with us. well i would just say is that for the viewers a pretty high it was a very famous austrian economist he won the nobel prize in one thousand nine hundred forty s. during the one nine hundred thirty s. and he was the leading opponent and critic of john maynard keynes the founder of keynesian economics and his basic take words is

a government is because of business cycles and the inflation recession it's a boom bust cycle not not not not a preventer of it i had the opportunity when i was in my early admits twenties to spend a good part of two summers in his in his company and i can i can say that he was one of the most informed intelligent and personable individuals i've ever met with an immense understanding of both the politics and the economics of things and a great depth sub deprecating humor that made him very personable i highly recommend. that any viewer who is interested in these ideas to look at his works is most popular and famous one of course is a book called the road to serfdom the dangers of government encroaching upon our liberties through controls and regulations leading to the loss of freedom and a rich unified economy but he has some popular works on explaining how governments

cause inflation's and depressions and these are often the keys to understanding our own problems in our own time just as he was explaining it during the great depression years when he was first writing now there's another famous austrian economist his name is murray rothbard and he also had a very self-deprecating style as well and i understand that you and you had at least some brief interactions with him could you tell me a little bit about those. well i was a graduate student for a part of the time in new york where rockmart was living and i was very fortunate to get to know him rather well and he had a great sense of humor he would stay up at night with a cadre of people telling stories singing songs and he had a biting sense of humor. both against others as well as himself and he had a way of explaining things with a clear incisiveness yes broke down the complex a few things in extreme and simple way. all i can say is that anyone who had the

opportunity to spend time in his company company not only interacted with a great intellect but with one of the great personalities in the movement for freedom in the united states i wish i had his ability to break complex things down as as well as he did so i'm going to circle around to the fed and kind of explain rather perverse scenario in which banks right now are receiving what's called interest on excess reserves basically the federal reserve is printing money but then they're paying banks to hold it with the fed at zero point two five percent but when interest rates rise the income from the fed which comes from treasury securities and whatnot m.b.'s may not be able to cover the balance in other words the interest on excess reserves so the bottom line is there's a perverse scenario which the fed could go cash flow negative in other words they have to print money in a tightening cycle can you comment on this. yes you're pointing out the problem

they're facing but they're between a rock and a hard place of their own creation since two thousand and eight and two thousand and nine the federal reserve has increased the monetary base this is merely cash in people's hands and the reserves available in the banking system for lending purposes they've increased that monetary base by about two and a half trillion dollars yes by the end of this calendar year they will living. crees did by about three trillion dollars now many people expected that there would be severe inflation due to all of this monetary expansion but price inflation has been relatively low why because as you pointed out just now the federal reserve has been paying banks a rate of interest to park most of that created money as idol balances on land use by offering them a rate of interest greater than those banks could earn by lending you or me the money now the problem is if the economy starts recovering significantly and there's

a more optimistic investment environment so businesses go back in a significant way to the banking system to finance new investment activities market rates of interest will rise and then it will be attractive for those banks to lend money to you and me instead of keeping it part unlearned at the federal reserve then the federal reserve has to offer any even higher rate of interest to make it attractive for them to keep it idle there. what will that happen the federal reserve will have to devise a way and then printing even more money in other words buying more u.s. government securities more mortgage backed securities which is the bulk of the way they've created the money up to now to jeff to generate enough dollars in the system to create a critic continue paying the banks in this way. and if the banks start lending this money out of the federal reserve cannot keep this interest rate differential going then we are faced with a dangerous significant inflation as all this money comes flooding out through the

banking system percolating and rising prices in various ways and then the then what does the fed do how does it suck money out of the economy the reverse of how it creates it it would have to sell u.s. government securities and mortgage backed securities out of its own investment portfolio. but if they dump mortgages on the market that's going to sink housing prices and if they dump u.s. securities on the market they will be pushing security prices down and exacerbating the rise in the interest rates so they will exacerbate the downturn that their own monetary expansion will of itself maybe inevitable by its really policy this is a dilemma which i don't see but easily get out of yes one of our favorite questions is what happens when the largest marginal purchaser of treasury bonds ends up becoming a net seller unfortunately we're out of time but thank you for joining me this is richard ebeling economics professor at northwood university thank you so much my pleasure. coming up area and explores u.s.

aid to egypt and the problems with doling out money to foreign groups in general then i do all prime interest regular sam sachs on the b.p. oil settlement yes it seems those split characters at the energy giant forgive the pun decided they would just sue uncle sam so i also talked to him about property intellectual kind and hoping for sale. when you take free storage. arrangements three. three. three little old free brown videos for your media project free media don carty dot com. the worst year for the. white house for the. radio guy.

because you've never seen anything like this. as tensions on both sides continue to escalate in egypt so does the international pressure on the u.s. to pull foreign aid from the middle east our i hear the u.s. appropriates one and a half billion dollars to egypt the largest country in the middle east much of that money is used to purchase in ontario tanks and jets for the egyptian army but with a military overthrow of the democratically elected president mohamed morsi his

money is in jeopardy of being withheld from egypt as the new york times reports the foreign assistance act said no aid other than that for democracy promotion can go to any country duly elected head of government is deposed by a military coup d'etat what's still being debated today in congress is whether or not the egyptian military overthrow of morsi was actually a coup daniel mcadams executive director of the ron paul institute for peace and prosperity points out the obama administration is having a hard time defining the situation. when it's actually become sort of a comedy because the u.s. government has absolutely no idea how to handle this they have no coherent policy or egypt or you saw john kerry a couple of weeks ago saying oh no this was not a coup this was a restoration of democracy the troops were restoring democracy which is hilarious and makes no sense and then you had

a state department spokesman i think two to three days ago saying we have determined that we do not need to make a determination as to whether it's true or so because as you say by law if the u.s. decides it is a coup if it walks like a duck and quacks like a duck then they are. to suspend aid because it would be considered it would sort of military government. but on capitol hill there's a lot at stake in providing egypt with military assistance thousands of u.s. workers depend on government contracts to continue to assemble tanks aircraft and helicopters that will be shipped to egypt and not too many lawmakers are willing to go back to their districts knowing that some of their constituents could lose jobs . something to do with the military contractors that are providing a lot of systems to the military you see senators who are funded their campaigns are funded by the military machines here in america and there's a lot of political activity going on between defense contractors who will lose

everything if we could. and just last week president obama said republican senators john mccain and lindsey graham to egypt both senators were turned can vents that time is running out to resolve the problems in egypt but they also they also said that we find it difficult to describe the circumstance of morsi removal from office and anything other than it to however melissa yousef an egyptian american says if the people's revolution backed by the military. the focus on that word i think has been so misconstrued and so many different ways that it's actually not enabling us to to do you the situation properly what are the egyptian people saying today who thought this was a coup absolutely not i mean you needed seat and social media and the twitters in the facebook saying it's going on now instagram's everywhere. there was

a time when the us supported president hosni mubarak who was forced to step down after serving thirty years and office but in two thousand and eleven of the united states supported the egyptian revolution that called mubarak withdraw and then took to the polls to elect their first democratically elected president and for national consultant brian crosswhite says the u.s. foreign aid was used to influence the election. i believe our government wants to see the muslim brotherhood in office that's that's but it's been seen that's why we prop them up in the beginning i think there's a big contradiction in american foreign policy in egypt i believe that the taxpayers need to be speaking out and they should be listening to senator rand paul and his position why are we supporting the muslim brotherhood why are we supporting the muslim brotherhood in the syrian brotherhood in in syria this doesn't make any sense as an american. now enter twenty thirteen in egypt is right back where they

were two years ago during the two thousand and eleven revolution about ten million egyptians took to the streets however the revolution today is one of the biggest in history with over thirty eight million egyptians protesting. the biggest loser you know the biggest loser is the biggest loser is the guy who runs a small souvenir stand who had benefited had made a living in this whole time of tourism it's always it's always a small guy the small businessman of loses in these situations they're the big losers. it was the winter nobody maybe right now though temporarily you see gyptian military. i can't see how israel is a winner i can't see how they would be happy about chaos next door so the big loser is the egyptian economy in the small guy. while the egyptian economy suffered the u.s. continues the problem billions of dollars not until the development of egypt's infrastructure and economy but instead to line the pockets of which have whichever

party extremists are not holds power at the time now let's get to the day we do. sam sax political commentator hello bob hello i know you love bitcoin so i have about five and a half minutes and that's all we're going to talk but i can't predict lawyers for five and a half minutes would be the biggest waste of time on television and ok we actually have two other topics don't freak out guys it's official we've plummeted down the rabbit hole created by the b.p. deepwater horizon and have emerged going to strange topsy-turvy land where you get this b.p. is suing the government because uncle sam has barred the oil job the government will giant from new federal federal contracts so the company and i stress company

pleaded guilty to manslaughter and other criminal charges sam does this make any sense to you know i b.p. should be thanking the government for not being shut down by the united states government or at least prevented from doing any business in the united states ever for having ever long you want to put on it a look that they're responsible for the worst ecological disaster in our nation's history the world's history worse than exxon you know it's proven that they cut corners they eleven people died as a result of this accident who knows how much billions of dollars have been lost in tourism industry fishing industry never going around their forest gump our country has a wall history of shutting companies down that operate against the public interest so why are we not only doing them criminally why is there where there are no criminal charges against any particular person i'm probably on the same page here why are we not going after b.p. you not only. well look like that's the major problem is that if you're rich you know of anything you own

a big enough corporation you're immune from prosecution and it looks like when you think about dollars here and there the corporations are people according to the supreme court but unfortunately it leads to a situation where people are able to abate prosecution all right we're going to move on here i think we have something more compelling shut down deep it. according to the wall street journal when it comes to intellectual property one of japan's biggest maker of fixed high capacity batteries says it's ok to be paranoid the firm make sure that nobody knows how its batteries are built except for its president and vice president in charge of technology so i guess it seemed kind of like coca-cola not sure about the tech on that one but you get the idea so an x. employee was actually arrested for leaking battery seek it is this an appropriate punishment for ip infringement i mean should people go to jail for this. i think our patent laws are totally screwed up i would think we have major problems going to be we have now the rise of patent trolls we have people who are creating patents with no intention of ever building or selling anything we're just using it to force

lawsuits on the other people i don't think there's any proof that patents are good for me we tend to look at patent laws in their economic economic benefit we're not looking at the human benefit of them and i don't see any benefit right now if you look at pharmaceutical privileges and it turned twenty years twenty years is a very long time that people get patents for it so i think we need to start looking into ways to completely reform our patent system perhaps even including getting rid of patents altogether but what about copyrights i mean if you write something you write a lot of stuff what if you wanted to publish a book some should somebody have the ability to just copy it photocopy it or even publish it and sell it on their own why i think we're kind of entering this sort of brave new world when it comes to patent it operated as a new world where these are these are issues look the world of patents and copyrights is completely different than it was ten years ago in the debates that we are in the law is one hundred years old but we're going to be completely ten. years from now especially when we have three d. printers that are going to wait for that one it's going to be unmanageable to

create a legal framework over how patents and copyrights are going to be used moving forward and if you look at whether it's going to require a revolution in the in the law itself exactly and in how we humans think of innovation and technology here but if we look we want to think of artists we want to think of writers right you know all these people and what percentage of what they earn actually goes to the people above them goes to record labels goes to now we have to stop using those two we have self publishing now so one hundred percent or nearly one hundred percent of the income from the book that you write insult publish can go straight to you the question is should anybody be able to copy that book i'm not convinced and i haven't seen any proof yet that if you get rid of copyrights or get rid of patents the people who are crazy about stuff are going to suffer if you look at the people who are stealing music and stealing movies it turns out that hasn't done any. i'm just going to just give you we got we got to go say i'm going to leave it on that note if you want to wait and today's show be sure to like us on facebook at facebook dot com slash prime interest you can follow sam

right here at sam sachs and you can follow me at english sam thank you so much for joining me thank you bob. and it was a crippling day on prime interest yes the credit for first secretive currency because what we did could help ourselves everlast the full court press to cut off ties an institutionalized what was supposed to be anonymous ten years in the valley as the process of being let in from j.p. morgan commodities market manipulation as you know that they're reporting requirement to shareholders and the public can be. out the window on executive order on the president just saying and president are professor evil ing that broke

down the case of the insolvent head coming into a media theater near you know what and probably a year or so and whether it's a who or not that overthrew egyptian president morsi is in ten years to be a bit of a mystery thanks for watching and please come back tomorrow from everyone at prime interest i'm parian boring have a great. time as a new alert animation scripts scare me a little bit the week. there is breaking news tonight and we are continuing to

follow the breaking news in the alexander family cry tears of the war you and your great things that have been regarded as a core of wall around online there's a story made sort of movies playing out in real life. is it possible to navigate you carney with all the details statistics and misinformation and media hype will keep you up to date by decoding the mainstream headlines stating it's in your right.

today on larry king now two done stars paula patton and bill patch that paul on working with denzel washington not once but twice when you were going to get passed it just makes your job that much easier on on marriage to the hit make the robin fake when you've known somebody as long as we have that back kind of success is a huge celebration have a lot of long days and hard work the ever changing bill paxton on his bountiful career in hollywood but i got cast late i think bryan cranston was lot of been available plus you know i came up doing supporting work and i feel he's the one of the best parts i've had since a movie like true lies or aliens it's all ahead on larry king now.