more news today. again flared up. these are the images both world has been seeing from the streets of canada. showing corporations are on the day. well if you're going through a moment like these policies i think you. should have you with us here on t.v. today i'm sure.

good afternoon and welcome to prime interest i'm harry i'm boring and i'm bobby bush and let's get to the story that we're tracking today. the latest on bloomberg gate as it is that they allegedly misrepresented the truth a scandal erupted when it surfaced that bloomberg reporters were skimming personal data from bloomberg prominent clients the firm claims they fix the problems two years ago however ever and you have an independent firm has revealed otherwise and that would be independent firm was none other than tory financial group yes the very firm that signed off on the most global's risk controls just before john corazon blew up the firm with customer money apparently antiquated excel spreadsheets and human memory were good enough for a problem tory then imagine what passes for now and switching gears yesterday the

fed released its last minute meeting but it's just more of the same and maybe that will taper maneuvering in the evening and there is however more relevant news that's flying under the radar they've appealed a ruling asking them to lower a transaction fee every time we swipe our debit card unfortunately these lower transaction fees have already been passed on to consumers so later i talked to both ben's. we'll and larry williams about our global markets and up next just be in charge of what's called the carry trade. so what gets to what's in your mind interest.

when the first begin talking about tapering last april many investors became worried naturally then no surprise treasury yields shot up so since may of this year or ten year yields are up about one hundred thirty basis points so for more on this we turn to prime interest producer justin underhill just seen how does this have international consequences well when treasury yields increase the spring it affected something known as the carry trade and this is where investors borrow at low rates from countries like the u.s. or japan then the exchange the currency and vest and other markets that yield a higher rate such as indian bonds and a pretty straightforward way to make a good return on your investment but good things don't last forever this year when treasury rates rose and the u.s. dollar strengthened against certain currencies investors were forced to undo the

carry trade and it became. profitable using india as an example i'm doing the trade in decrease the demand for indian rupee against the us dollars and the demand for for dollars. and this created a self-perpetuating cycle as the u.s. dollar went up more and more investors were screens out of the carry trade driving the root. down and in this graph we have of the carry trade showing us dollars to india and to australia and investing in long term security is or bonds and we have the scale here ranging from twenty percent to negative one hundred twenty percent on your return in india from maine to present an investor would have lost about twenty five percent on the trade on an annualized basis that's about ninety five percent your entire investment the same is true for us. which is not an

emerging market but you would have lost about seventeen percent from may to today and on an annualized basis again it's almost ninety percent of the big picture here is that money is moving out of many of these markets and back into the u.s. dollar euro bunnies moving back into the u.s. dollar so who does this of all the facts many had fun specifically emerging market fund so good but it also affects pension funds so this has consequences for the average worker pension funds sometimes investments in the carry trade to some extent right and let me ask you do you see this as a butterfly or. a butterfly effect sounds pretty i would call it more of a factor because it's so disastrous some ugly for the for the consequences basically the u.s. markets and the global economy are a very delicate balance almost like a rube goldberg machine for tinkering with one thing like let's say rube goldberg make sure. it's exactly like the thing with one thing such as talking about

tapering or raising the fed funds rate. economic consequences so we only have a little bit of time but what happens when the fed actually begins tapering well just have domestic facts that's the takeaway from this it will be an international phenomenon and we still have yet to see what that might look like understand thank you just again you know as we've been discussing emerging markets have tape. in a hammering earlier i spoke with ben steele author of battle of bretton woods and i first asked him about his thoughts on the prospects for emerging markets and here's what he had to say actually and says well money is beginning to flow back from emerging markets and india is one of the countries that's really most directly in the crossfire is here india russia china they're increasingly trading amongst themselves but they're not using the u.s. dollars you see this as a trend that continues until perhaps the u.s. dollar is not the reserve currency you know over the course of the past several

years china has signed by lateral trading agreements with russia brazil japan. and turkey to begin trading without u.s. dollars as an interim mediating vehicle i should emphasize though that trading is really in its infancy right now and here's what i see as being the major barrier to that going forward in much greater scale i don't believe that any of those countries is truly willing to stockpile the currencies of the others and this is the big barrier to development like that glowing going global countries broadly speaking have been willing to stockpile u.s. dollars because of the fact that dollars could be used to settle into national debts. it's probably unlikely that you would see china for example being willing to stockpile rubles in any great quantity at

least right now ok well let's talk about stockpiling because central banks of the world have been stockpiling gold and one of the things he's right about is the gold standard versus the gold exchange standard could you explain that for us. people often lump together the late nineteenth century. and. the one nine hundred twenty s. calling that. the global gold standard i think that really is extremely misleading during the classical gold standard of the nineteenth century which ended at the beginning of world war one broadly speaking you had a mechanism that tended to control global imbalances as well as keep prices stable that is when gold flowed into a country credit conditions were loosened and when gold flowed out credit

conditions were tightened and as i said this was a global mechanism that countries followed willingly in the one nine hundred twenty s. we had nothing like that we had the united states and france for example sterilizing gold inflows that means essentially you had countries hoarding gold and not. using the flow of gold as a vehicle to keep global imbalances in check so that that's the classical gold standard broke down entirely after world war one it was never a buy well let me ask you something because you've written about digital representations of gold in which you can pay for goods and services across borders doing using transfers of gold but there are many critics of what it's called paper gold some of these examples are the futures market and gold leasing so when you say digital representations of gold what are you referring to. well for example when

you buy. stock in a company. your buying ownership in the company but how is that ownership represented well it's represented in digital form is left on a computer these days you don't even really receive paper shares. so many people who own gold today don't actually have direct access to the physical gold. they own digital representations of gold in the form of for example exchange traded funds or they might open an account in what is effectively a gold bank where gold is held in a balt and they own a share in that physical gold and they can trade those shares with others for example they can buy goods and services across borders at least to the extent that their governments will accommodated yes and you mentioned the ownership

of stocks and the. d.t.c. she actually has title to most of people stocks which is relatively unknown but i think one of the one of the criticisms about the gold market the paper gold market is that there is not enough physical gold to back it up so does this become a problem well this is. true gold bugs are. often not satisfied with the proliferation of substitutes for owning physical gold like. having said that as you know. the gold e.t.f. in the united states has become a very very actively traded financial product and is probably the cheapest way for retail investors who want. exposure to gold to get it. well the u.s. has had at least two bubbles since the late one nine hundred ninety s. and some would argue that we're forming another so what do you see as your projection for the future of us. you know i think we're entering into truly

uncharted territory here as the fed begins to hold back on the monetary reins the fed's balance sheet is extremely bloated compared to where it would normally be id end of the year for example the fed will have one point five trillion dollars in mortgage backed securities which it says. as it is not willing to sell this means that it will have to use untested mechanisms to tighten monetary policy in the united states and i think that's going to cause some anxiety in the markets yes and one of the other things bernanke he has said himself that he does not want to do this but he could actually sell some of these assets that would be the n.b.s. utilities and the treasuries do you think it's possible that the fed will be forced to be selling some of these assets when it's one of the biggest purchasers and what

would be the consequence of. the fed would be willing to sell treasuries under the right conditions but it has already stated that the fed would not sell its mortgage backed securities and that means that it may have to resort to as they said nontraditional means of tightening monetary policy things like term deposit auctions for example exactly where the banks are asked to tie up their reserves for a period and not lend it out here's the problem with with that in order to make things like term deposit auctions viable the fed has to leave determination of the fed funds rate to the market it no longer will set the short term interest rate in the market and that would really become quite revolutionary for monetary policy in the united states the e.c.b. has used term deposit options to sterilize. interventions in the european

bond markets but i should emphasize that many of those options are felt meaning that the european central bank was not willing to pay the interest rates that the banks were demanding now that didn't cause any crisis because the e.c.b. is currently in the loosening mode but if the fed were in a tightening mode and those options were to fail i think you'd see enormous disruptions in the u.s. market i agree with you completely thank you for joining me this is ben stiller author of the. battle of bretton woods and the director of international economics for the council on foreign relations. coming up we have an interview with veteran futures trader larry williams we get into some shop talk but we also talk about how he turned ten thousand dollars into over a million dollars in a trading competition in one thousand nine hundred seven and exactly how his daughter michelle williams won the medal while working on dawson's creek then i do a break in the separate mary david over stealth clothing there is more or less than you think to this story.

wealthy british style sun it's time to rise. market why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report. that has a new alert and a patient's scare me a little bit. there is breaking news tonight and we are continuing to follow the breaking news. alexander's family cry here's

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earlier we had the chance to talk with veteran futures trader larry williams we first asked him what his thoughts about the fed's money printing policy were and here's what he had to say just given the history of the stock market up on national merit i think it's going to lot of spirit but we're going to change a transition year so bonds a pattern decline but i think the long term fundamentals what's going on in this market so if you commit a trade or redeploy or relational gold to trey's or the bonds also suggest we're not going to see substantially higher rates in fact we've got to act we're rally the bond market right now you know that's interesting and it gets to technical analysis versus fundamental analysis but one thing you just mentioned is the commitment of traders report which a lot of people who trade stocks don't even know about even though it might be useful could you explain the history of that and basically how it works sure once a week the government releases a report that shows what's the large institutional if you will or the commercials who buy and sell commodities as well stranger learns their net long the longer they

short how much it also shows what the small speculating doing they're using wrong they're very curious right here and the large traders primarily the manchu so a commodity funds and my sense of that my reading of that is without a doubt we're at an overwhelmingly bullish buy point in here this is a time to be long to buy signals which actually trenching signal when talking to our exchange or trend in here to the upside in bonds you've got to go along and what about other markets such as gold crude oil what do you see in those right now . well i think gold still has some legs to rally here our forecast of the first year was for a substantial decline until about august august he's come we've got a rally and i think this rally has legs we haven't pulled back in here but i'll be much less on a longer term basis we come back in a month two months from now. buying it just general price we're going to track it well we are talking about the bond market in the one nine hundred eighty s. and actually in one nine hundred eighty seven you did something that was absolutely

amazing it turned ten thousand dollars into i believe one point one million dollars in a trading competition could you talk about that. well that was a trading competition and i was very very aggressive and i just traded a lot i did a lot of short term trading not much of day trading actually but a whole overnight or a couple two or three days and i just maximize money management i had a substantial amount of money on every single trade that's what accounted for the exponential gain and of course at a high end of the market you get to going to gather you can really make a lot of money trading stocks or commodities certainly and you actually ended up i think your high water was about two million dollars and you certainly i read i read your account of this you really pressed the pedal to the metal throughout the whole thing and i think you were away for a period of time doing something else interesting would you like to talk about. yeah i was in a safari in africa in the crash of one thousand nine hundred seven so the account i think the high was one point rather two point three or two point four million

starting with ten thousand dollars and then during the crash it went down to seven hundred fifty thousand dollars and came back from africa and created a seven hundred fifty thousand dollars back to one point one million dollars so a little bit of a bounce back in there but the crash of eighty seven now i felt the pain of that well you're not the only williams to have won the competition you're young daughter michelle williams at the time also the how did you prepare her for that. i homeschooled michelle in so i had to teach an important thing what's a margin call what's creation out of trade to drive a car out of fix a car and that was just like a task that we did when she was something dawson's creek kind of fun father daughter thing to do and she started training and eventually it was followed by an system and she got busy with their own acting career and place your orders automatically but the really important thing was she's the money management strategy x. number of contracts regular dollars net cash and national gave her and we actually mention being a she out and earn training and could you explain for the viewers

a difference between technical and fundamental analysis and what you were using at the time or what you use today actually. well i use a combination of both i think you really need to know fundamental i don't believe the charts markets i think that markets move on to mental reasons as the amount of the gain is going to be caused by a fundamental condition the choppy erratic stuff along the way that's caused by price action and emotions so the tactical stuff looks at price action where is a fundamental supply demand relationships and i really like to combine both of those together i think the optimal way to trade you can't have one or just the other i think both of them well there's another dichotomy and i think you're a trend follower but there are also people who are a bit contrary and they're looking to short the market when it goes up by buy the dips can you explain the difference between those two different. well you know after fifty years of doing as i was talking about if you're that ok but they basically. you want to get aboard

a trip and you are right that trend as long as you can that's where i found to be the most radical that might be a very short term trend might be a very long term trend but i think that's the overall takeaway that i've gotten from my fifty two years of trading now is that you want to try to find a trainer and stand that horse as long as you can do you think we're going to be able to enter a new trend following environment in other markets that we haven't necessarily seen trending maybe there are a bit more choppy right now but what i think rather see a big trend here in the stock market and nasty the downside i think we still have substantial move to the downside left in this market that's a big trend coming up probably a big trend move coming up in coffee to the upside also the japanese yen the stock market the upside those are big economic plays there will out pull back to rallies along the way but the significant movement is should be up trends are down trends i pointed out. that was my interview with larry williams veteran futures trader.

i am with breaking the side producer amir a david thank you so much for joining us again for adding we're talking about surveillance clothing today i know you just did a little piece on topic it is have you ever done it i haven't wow and you had yesterday i did i did dabble little and you painted your cheeks a little bit i saw that i didn't you know ok so what you may add so what's up with this surveillance fashion exum quite simply surveillance fashion is basically incorporating countersued valence technologies into the things that we wear the accessories we carry basically and. that's to do with our appearance and what is. being used to enhanced the security measures of governments for instance and what

are what are people doing to counteract this for instance i think there's something called a burka or there is so that's part of this line that's called stealth wear and it's not a misnomer at all it's all about hiding ourselves from cameras and particularly from drones so these are basically garments that are designed with a metalized fabric basically that shields us from the thermal imaging that we use to basically figure out who we are but it's interesting so how do we from drones in other ways i mean it seems like they're kind of pervasive and i know that this is a topic that's discussed on the field they are pervasive and it's really hard to do that's the reality of it and i think that's why we're starting to see these technologies emerge yeah and i think we have another technology which is your face yeah it's you know this is really interesting so this is using it's called. sickly camouflage computer vision ok so this all has to do with facial recognition software this is really really cool it involves breaking up the most characteristic

parts of your face that mean this is when i have this is what i was doing yesterday because the eyes the nose the chin that small triangular area that's where facial recognition software really zone then and so a really really works to break that up so kind of look look spunky but it works ok i got to tell you i carry a cell phone on me almost twenty four hours a day most people do and a lot of people don't realize that this is just a built in tracking device so how do you get it out of the people don't realize that it's completely traceable trackable even when it's off even to how is it that's what i'm told i have no i don't know if that's how it's possible but government agencies have that ability so this pocket is really really cool because you just put it in there you can see like a little wall that is just going to. and then basically it blocks all wires. signals from both entering and exiting so you are off the radar completely when you put it in this little guy and that that something like that goes for about sixty

five dollars what about some of the others are the kind you can get those you know that free nothing is free of the nose or i think when your colleagues has one all you need is a simple woman of oil and you've got that that's that's the easiest but that's not turner's surveillance tactic of a mom are these things going to cut my not quite work as well as the as the. so are these the big picture question is are these things going to catch on i think they are i think this is a really growing industry and as you see the surveillance apparatus well as you see these technologies are merge more and more you're going to see the demand for them and merge more markets because people are becoming more politically aware people are starting to connect that was a nice thing now they are and they're starting to understand that you know these government policies these technologies are affecting their lives they are they're actually resorting to proactive measures doing something about it one of the unfortunate things is that there are many other ways to try people and this is something i've been following for

a few years now is that it's called gate technology in other words gate in terms of the way people walk and everybody walks with a unique signature and according to the sources that i have cameras can track people just based on the way they walk is a crazy that's really really unsettling and that's amazing and i'll tell you another anecdote there is there are these bars in scotland and these guys there are years they're used to coming in there for years and they have these hats and they're not allowed to wear them anymore because of these surveillance cameras so unfortunately the surveillance creep has definitely impeded our law it has a new and you know what hats used to be a not very. good time for you and if you want to win today's show be sure to let us on facebook at facebook dot com slash prime interest you can follow mirror mirror david you can follow me at english p.-i thank you for. joining me.

and it was a foggy day on prime interest we shined a light on our favor and a largish shadow regulator that's prominent financial group who signed off on bloomberg eight problems were found but now apparently they're corrected you should ask john corazon and about that whitewash and the newly transparent fed said no news is good news or maybe there's just no news and they're fed began way behind the clouds we found an obscure corner of the march and a story that's backing the fed's white face talk about an unattended alliance but then steele and larry williams open their umbrellas in our beloved chairman's brainstorm you guys that we're talking about here we're talking of which the global money printing program has successfully devalue the currency of five billion people

but signing off this is harry and boring the great thing. when you take three. or three. three. three. three. gold freeboard video for your media project a freebie deal done to our t.v. dot com. you know sometimes you see a story and it seems so poorly you think you understand it and then he glimpse something else you hear or see some other part of it and realized ever. you don't know i'm tom harkin markham's a big picture. he

was the father of the tea party movement a strong voice of dissent still captivates and leads a large american audience who call for change the former congressman presidential candidate ron paul plus daniel ellsberg the original government leaguer forty years ago with the pentagon making and is now supporting n.s.a. leaker edward snowden it's all next on politicking with larry king. live the politicking on larry king we start the program with the former congressman and presidential candidate ron paul an old friend he joins us from clute texas where he does his shows for the recently launched ron paul channel on the internet .