so there i marinate it this is boom bust and here are some of the stories we're tracking for you today. first up china says thank you but no more to the u.s. dollar had they had their fill of u.s. treasuries as well we'll tell you all about it coming right up also out of minter author of junkyard planet sat down with want to talk trash trade and well it might not sound that glamorous the billionaire trash tycoon behind it they sure are and finally rachel corrie's is joins me later on in the show to discuss boy bashing via social media is this girl power or just gender of quality gone awry that's the question on deck in today's big deal but now let's get to the.

kicking off your headlines today china they say they're no longer interested in accumulating u.s. dollars this week the people's bank of china so that the country does not benefit from increases to its foreign currency holdings you gang a deputy governor at the central bank said quote it's no longer in china's favor to accumulate foreign exchange reserves the marginal cost of accumulating foreign reserves has exceeded marginal gains now china's foreign exchange reserves now stand three point seven trillion dollars and a large percentage of that is made up of u.s. dollars now if china does indeed end its stockpiling of u.s. dollars many analysts believe they may also stop buying u.s. debt as well china is by far the largest foreign creditor to the u.s.

holding just under one point three trillion dollars in u.s. treasuries could this have the potential to create a bearish long term attitude towards u.s. bonds we're just going to have to wait and see. elsewhere thursday the senate banking committee voted to confirm janet yellen nomination as chairwoman of the federal reserve changes to the senate filibuster rules now virtually guarantee she'll be confirmed by the full chamber the senate voted thursday to eliminate filibusters for most presidential nominees now in an op ed piece published in the journal were guarding the filibuster matter former senator phil gramm said quote her confirmation is virtually assured less certain is what mr yellen ultimately intends to do with fed policy i want to have you seen now entering its thirty fourth month she is committed to maintaining q.e. for now but does she have an exit strategy it's a fair question and one that we will be keeping a close eye on and finally add some point your life you might have been told you

can't leave the table and see a finish or dinner well that is exactly what a new bill is saying to congress the house rules committee they introduced legislation this week that would prevent congress from leaving town for the holidays if the house fails to possibly agreement five minute december the no budget no vacation bill that's truly its name it holds lawmakers accountable for their pledge to settle vastly different house and senate budgets by december thirteenth now i know most of us can't leave our offices for holidays until we finish our work so it only seems fair that congress be held to the same standard right now. well there you have it as always we'll be tracking each and every one of these stories and keeping you posted on all the latest.

we turn now to the trash trade and just trash in general have you ever wondered what happens to a soda can after you toss it into the recycling bin well believe it or not it probably goes half way around the world most likely to some exotic place like india or china in fact the u.s. exports forty six metric tons of trash per year fueling what has become a multibillion dollar industry and while we see a shredded automobile is garbage a scrap collector they see it as a tremendous treasure trove copper aluminum zinc plastic you name it it's all in their eyes that down without a mentor author of junkyard planet travels in the billion dollar trade and i started off by asking him about the profitability of the reusable industry and here's what he had to say. dreamily lucrative business and the fortunes that have been built on this are some of the more elusive and sort of global commerce today but i can assure you based upon what i've seen there are also some of the biggest

just in china you can think about if i tell you the largest private copper smelter in china is a private company you probably are thinking that it's built on recyclables but it is largest private copper main you factor in china that's a huge industry china has forty three point one percent of global copper demand last year so just think about the scale of the wealth that's built up by that and that's just one example can you explain the business model of a private scrap exporter it's you know the we always say in the scrap business that it's easy to sell scrap because everybody wants it but it's very difficult to buy it and so even though we may. next being an export of they're spending a lot of time worried about where they're going to export actually the average scrap export business spends most of their time worrying about where they're going to buy the scrap developing the connections to buy the scrap convince scene the people who generate the scrap to give it to them remember most of what we think of as scrap recyclables we put in our home recycling bins but that's usually less than

twenty percent of the total recyclables that are generated in the united states every year mostly scrap recyclables are generated from commercial enterprises and so it may be a commercial printer you know the news that they have lots of excess newspaper general motors generates enormous amounts of scrap recyclables for making automobiles well if you're a private scrap exporter to get those contracts to recycle their metals very difficult so you spend a lot of time worried about that servicing those clients so that you can then easily sell their material overseas is a market is saturated in terms of private private companies and i mean the g.m. contract started saying what else is a radical well you know it's very interesting about the scrap recycling business is it's always going to be an entrepreneurial business so a big scrap recycler that does hundreds of millions of dollars a year they are going to bother to go down the alley to get those cans you know in

a box but some hold both some guy in new york city he's going to do that and if he does anough of that he can build up a small business becomes bigger and bigger and bigger and so there's always this opportunity within the business to grow from small beginnings in the something bigger and the other flip side of that is we found it's a very strange thing but there seems to be a size at which scrap companies start losing their profitability it becomes very hard to buy the scrap intelligently buy in scrap metal is an easy if i show you for example a truckload of old brass faucets and pipes i don't know what inexperienced i knows how to price that. so if i'm buying just for my scrap it's fine but if i have twenty scrappers i can't do the buy so with the big scrap businesses they start to lose their ability to buy smart and so that provides opportunities for the small guys certainly not now. the biggest volume export like you said from the u.s. to china. they need it we have it but it's not as simple as supply and demand

shipping plays a mouse over all and can you explain that absolutely so as we all know the united states runs a huge trade deficit with china in short china exports more stuff to the u.s. than the u.s. exports to china u.s. just doesn't have many products that the chinese want to buy as a result you have shipping containers forty and twenty foot shipping containers going from china the united states being held up basically in places like los angeles san francisco all the major ports waiting for cargoes to go home now to ship a cargo from shen zen which is a big port in south china to the united states cost about twenty four hundred dollars today because you have all these empty containers and very few cargo is put into a shipping companies are so desperate to get them back they discount those containers in l.a. to about three hundred dollars right now ok so it's three hundred dollars to go back the other way well that makes it very cheap to send back scrap recyclables to china now there's an added layer to this that's even more interesting in my opinion

and that is it's very expensive to ship within the united states so for example if i have a container of scrap cardboard and i want to ship it from l.a. to chicago that's going to cost me about twenty four hundred dollars ok so but it's still only three hundred bucks to go to zen well at that point i mean the guy in chicago can't even compete for it because the shipping is going to be so expensive he can't give the same price as the guy engine and so it's going to go to china ok why not what happened in the global economy if china's access to scrap metal was seriously or even cut off well i think there was a great way the easiest way to answer that question is what would be the. effect on the global economy if china suddenly lost the source for say fifty percent of its copper or forty percent of its paper you know fifteen percent of its steel it would you would you would set off an immediate recession you do china's manufacturing juggernaut is essential to the global economy functioning it's not something you

can cut off anymore it has to be there it's an essential component to the globalization story that whether we like it or not and i personally like it is a part of our lives and you said that trash trade is a good predictor of you know the ebbs and flows in the market can you expand on that yeah sure i mean it's sort of legendary within the industry that alan greenspan's favorite economic indicator was scrap prices they said he would look at those first thing every day because what is a scrap price it's an indication of raw material demand and it's a much better indication than say virgin materials because those move in very very big lots and they tend to be contracts that are out a year or two ahead of time but scrap is bought primarily on a spot basis it's a spot market so the spot market for scrap oftentimes reflects the short term and mid term thinking of manufacturers in particular so for example in two thousand and eight course we know what happened in september october and the global economy in a century crash we had indications of that in the scrap industry is early as early

summer of that year we started seen steel prices across asia scrap steel prices slipping very quickly i remember being in bangkok and it was you just could feel something wasn't right because people were talking about we're going to have new records and scrap steel prices and yet at the time you are starting to see things slip so you have this you had this sort of buoyancy there which we felt in the us with the real estate as well but the writing was on the wall things were slipping very quickly and that's that's happened many many times before now developing countries they're obviously the main market for scrap imports yet a lot of america and africa remain exporters why it comes down to manufacturing. africa i mean africa has some of the cheapest labor in the world but they're not making that much stuff at this point and it comes down to making stuff so they don't need the raw materials in fact there's a pretty good business right now of exploiting scrap out of africa into china which is an extraordinary story when you think about it but it's that's how big the

manufacturing jobs are not is in china south america is a more complicated story so i've spent quite a bit of time in brazil looking at what goes on there in brazil in some ways has become a very developed economy some of its scrap remains in brazil but they are starting to export some of it out of there the problem with brazil is that the shipping is very expensive but you know latin america in particular is a more complicated story because there's developed components of it that actually have a manufacturing base and there's parts of it that don't so you see much more flow it's much more fungible in a way like mexico i would imagine they would have a large scrap and they do and what's interesting and i'm quite familiar with a couple of very large scrap exporters in mexico who actually send material to china even though you know the labor rates in mexico quite low and also because the man there is the manufacturing there but the issue there in many cases is shipping again it's very expensive and oftentimes very dangerous to move scrap in mexico

especially high value scrap like copper scrap so it ends up being cheaper just to ship it right out of mexico. that was adam minter journalist and author of junkyard planet. coming up it is a country where our forces are banned and public banking is the norm where could this place big and why is it working so well i'll tell you coming up plus one of your friends were raiding you behind your back while many a better watch out for a shocker as this and i talk about who might be ranking you in today's big deal and as they had to break here's a quick look at today's closing numbers come back. i

got a quote for you. it's pretty tough. they wait substory. if this guy like me are about guns instead of working for the people most issues in the mainstream media were pretty much over bribery. it was.

the little known coaster rican banking system involves a mixture of public and private banks now out of twenty nine license banks mutual soucy sions and credit unions in costa rica four are publicly owned now i should note that in the us out of the thousands of depository institution there is only one public bank and it's in north dakota on kusturica the four state banks which do compete with each other housing eighty percent of all retail deposits i spoke with

ellen brown author of the public banking solution and i asked her about the difference between public and private banking in costa rica here's what she had to say. things that are publicly owned by the government which means the profits go back to the government so that their major advantage they're also guaranteed by the government so they're much safer particularly in summer that costa rica where they don't have insurance the private banks can continually going bankrupt and then the people lose their money so eighty percent. deposit are now in public banks people just like them because they're safer they make loans that are good for the economy so they're directed by by the government for the public now like you mentioned there's no f.t. i see model in. what other countries employ the model that is public the public

model that is close to rico's model and is it only appealing to those countries that don't have such backing like f.d.a. . well even in the us it would behoove our government to put its money in for local governments to put their money in their own banks because they they too could lose their money the f.d.i.c fund only has thirty two billion dollars in it to insure six trillion dollars so we're we're into a false sense of security if a big bank goes down j.p. morgan for example has a trillion dollars in deposits america has a trillion dollars in deposits and they both have over seventy trillion dollars in derivatives and because glass steagall has been repealed they are allowed to coming their deposits and their investments so if they did another big derivatives bust like the one that we saw with lehman brothers in two thousand and eight and if there is no government bailout as the government has said they're not going to do

in the event of another big derivatives crisis that's right in the dark frank. or act then depositors could lose their money the new bail in procedure involves going after their creditors money in turn turning that money into stocks so recapitalizing the bank through their creditors money well it turns out that depositors both public and private are the largest class creditor of anything so we're all liable just like in cyprus now this is a pretty obvious question i'm going to ask you because it kind of leads to my next one do you believe that this is a better system the one in. compared to that that we have in the u.s. today. definitely and they cause three can they the i.m.f. is lean and then the u.s. is leaned on them to try to privatized their system and they just don't want to give up they're probably banks they're very safe and they are designed to serve the

community and they do serve the community has been called to reconsider and. the happiest people in the world and happiness index they've they've been there for years they were doing way better than any other country in central america and it was largely because of this public banking system where they use public credit to find public infrastructure to. find government generally they owned a lot of businesses and so the government had a lot of money and it used that money it invested money in the economy which made for a booming economy lots of jobs in general a general strong middle class and well being of the people they have thirty percent of the government's money goes to health and education and they can do that for one reason because they don't have a military but also because they have

a very strong public sector which is supported by their public banks now and it wouldn't be possible to implement this model on a large scale in the u.s. right now we kind of have a have public private thing going on but how would you how would you go about implementing it if it were to be implemented. well in costa rica too it's half probably kept private it's just that it's a different part of the economy that's public and because they don't have a military which is the biggest part of our public sector they have room for some other things but yes i think it would work very well but getting from here to there could be difficult what would be easier would be to set up a public bank on the model of the bank of north dakota in every state and north dakota has its own bank which serves as a sort of mini bank for the state it is the on the state that escaped the credit crisis it has the lowest unemployment rate in the country the lowest default rate and the lowest foreclosure rate so they're doing very well and this state takes all

the revenues of the state and then they leverage capital and deposits into credit for the state. so it works very well for their economy and i think every state should have one now it's no secret that close to rica like many developing countries they struggle with a certain degree of corruption is it dangerous to rely too much on the public banking system. not. recent works so well is that it's totally transparent and totally accountable in other countries public banks have sometimes been corrupted and that's because politicians have gotten hold of them and have used them for their own ends but in costa rica because it says in the constitution that the profits go back to the government the government wants to know what the banks are up to and so they are entitled to see all the books on like our federal reserve for example which wants to be not only independent but not to be audited they want to be acting in secret well that's

a recipe for corruption but it does beg the question does a public banking system allow for easier government tracking of its citizens banking transactions. if the mandate is to make it all transparent and it definitely does i mean you have to write their charter for the public banks the bank of north dakota is also completely transparent and completely accountable and that's why it works so well in both north dakota and in costa rica they have a strong democratic government and that really works. and that was ellen brown author of the public bank solution time now for today's big deal.

joining me now the lovely rachel curtis i like and i think lady thing and what we're going. do today is we're going to discuss all things social media now first and foremost here's the question how would you feel if your friends were ranking you behind your back aren't they already one hundred all of us just breaking each other but. judging each other and. well anyway we digress remember this scene from social network check it out. we're getting used to and chess players are you were thinking girls. and. i need the algorithm he needed the algorithm the experiment it didn't and so well but it ended pretty good down the road anyway now there's a new app and it's for women to anonymously review in rank men who appear as their friends on facebook it's called lulu and the site is taking off in the past six

months having grown a whopping six hundred percent women can rank men on a scale of one to ten and ascribe house tags teach profile things like. where we go friend zone. porn educated or do you think that i don't know what that means i don't have any obsessed with his mom that's kind of cute and could be bad dude can cook that's a positive one no i start off asking you rachel would you view this as you know substantially different if it were men ranking women i think that the ad would substantially be different if it were men drinking women they would be ranking different things than for instance their relationship with their parents or their ability the cook i think that if men had the apple would probably be a lot more appearance based and it seems like a lulu is face a lot more on skills and personality traits working mom you know i mean these are very helpful things and. you know speaking further about ranking apps in general things like ok cupid do you have an internal rating system already so this isn't so

crazy it's different in that you can't see the rating that other people get but internally ok cupid is using those ratings. order to sync up the forwards with the fours in the threes with the three and here's the question if i'm a guy and i want to check out my ranking. no one knows where you actually know you can check your will. in order to have the app you have to be registered as a woman on facebook if you're a man and you try and other they're going to say sorry dude they have some like you write up like we like do you know you're going to be out but if you recommend the app to twenty five friends then you'll at least be able to see your ranking you won't be able to access a lot of the internal parts of the app but you will be able to see oh look i'm a seven point seven really all you have to do is continue to grow the app on behalf of luke now do you think the anonymity of these reviews like is it is that fair or is there a little bit of cowardice. i mean i don't think it's unique to lulu i think that that's something that the internet more generally is having to deal with all the

time it's something we see a lot on for instance you tube comments and stuff like that people feel more free and empowered to say things when they're anonymous but we're seeing with things like the internet that it's you can't really be anonymous anywhere even you tube now is connected with your g.-mail and all of your google accounts and i think that people are finding that and on their maybe on the internet is an example going to happen it just doesn't really exist especially i'm sorry you can't expect an on their body if you're linking anything through your facebook. i know if you don't deserve it if you think that you're so what you think you have on the new facebook account think again now what is the sentiment behind an app like this now the app and the ads for the out they have you know people smiling and ranking women with the kissy face that. she's think that it's use predominantly for happy kid happy kissy face stuff or there's a lot of dog doing i think there's a lot of kissy face stuff going on on lulu no i mean i think that this is probably

when you're ranking people you're trying to tell people more like watch out for this dude because he's obsessed with his mom. we're trying to make sure that people avoid all these potential landmines that any relationship might have finally a force for good or evil or the evil evil you know i mean how did say it's honestly it's something that's happening already this is just a way to kind of codified it on apps right agreed so evil and all well there you have it that's all for now for you can see all segments feature them today show on you tube out youtube dot com slash boom bust r t well so love hearing from you you can keep your anonymity so please check as the hump is good or not on facebook dot com slash bring us our take from all of us here a boom bust thank you for watching c.n.n. but i.

guess i was a new alert innovation scripts scare me a little bit. there is breaking news tonight and we are continuing to follow

the breaking news. alexander's family cry tears of. so why it great things rather that they're. regarded or a wall around a liar is a story made sort of movie is playing out in real life. enriching negotiations only a week ago the prospect of a deal with a round which tend to live in a close when the french play the role of spoiler to the great delight of israel nonetheless negotiations continue much is made of the technical side of the talks in fact this is a side show but these negotiations are really about is the issue of trust.

coming up on our t.v. ever growing n.s.a. spying scandal takes another twist it appears that secret data collection started twenty years before september eleventh during the presidency of ronald reagan more on the news revelations ahead and how to check the calendar lately while it's only twenty thirteen many in the mainstream media are already talking about the twenty sixteen presidential race we'll take a look at why some are obsessed with the race that still years away and fifty years ago today the nation and the world was stunned by the assassination of president kennedy but it would jordy americans think there is more to the story we'll take a look at some of those theories later in the show.