so i marinating this is boom bust and these are the stories we're tracking for you today first up we're talking fed today tim geary and peter schiff away and on the past present and future of the federal reserve plus a lack of banking regulations in the e.u. having a european financier is doing the wall spoke a wrong job lament go on and whatever else they dance in europe will tell you all

about it coming right up and harrison join me in today's the big deal to talk about some of the most positive places on the song that you won't want to miss it and it all starts right now. two hundred thirty eight thousand americans join the workforce in december that's according to a private survey by payroll processor a.d.p. now the increase was driven largely by construction jobs as construction firms added forty eight thousand jobs in the last month the most since two thousand and six now a.d.p. figures cover only private businesses and often diverged from the government's more comprehensive report. the labor department will release december's numbers on

friday and economists forecasts that friday's numbers will show employers added one hundred ninety six thousand jobs last month that's only six thousand short of two hundred thousand jobs a month added from august through november of two thousand and thirteen now those increases have helped push the unemployment rate to a five year low of seven percent. elsewhere at a g. twenty summit during the height of the financial crisis in two thousand and nine world leaders coordinated guidelines and regulations on capital requirements for banks however today european banks are very very pleased to learn that europe intends to impose far less restrictive rules in the united states when it comes to trading now the announcement made this week proves global regulations are likely to remain inconsistent and now this is despite pledges to unify the system since two thousand and nine countries have adopted their own limits on banking bonuses and capital requirements for big banks banks say the rules increase their compliance

costs and could make avoiding regulations even easier known in the us is the volcker rule of the principles designed to protect the financial system from trades like j.p. morgan's six billion dollar london whale loss in two thousand and twelve. and finally minutes from december's federal open market committee meeting were released wednesday and according to transcripts the biggest point of contention was the fed's outlook for inflation there was consensus however over the reduction in the pace of asset purchases the committee evaluated the potential cost and benefit of a gradual reduction in asset purchases traders are now cautiously optimistic as to when and how fast the fed will normalize short term interest rates from the current ultra low level where they've been since the financial crisis began. well there you have it as always we'll be tracking these stories and keeping you posted on all the latest.

chairman of the federal reserve ben bernanke has only twenty two days left before passing the torch as you can see here to madame janet yellen now yellen takes charge on february first and with many changes in store for the fed in two thousand and fourteen is sure to be highly scrutinized her first year in office that is university of oregon economics professor tim dewey joined me earlier to help navigate the issue and understand the challenges that lie ahead for the chairwoman . now tami in your blog tim do raise fed watch it's the only blog that i know of outside of the federal reserve that's exclusively dedicated to issues related to the fed how did you get into blogging about the fed in the first place. i was do you see. was that you see i work for a group called the g seven group and i was

a fed watcher for for that institution and when i came back to. eugene i was just a professor at the university and one of my colleagues mark thomas started blogging on his his was the economist view and asked me to join him on the issue that i knew well was the reserve and so that really became the focus of the blog and you know honestly with among other duties just. moving beyond the federal reserve really really wasn't an option. ok now traditionally the five years of interest rates as its primary monetary policy to all but everywhere we look we hear people talking about quantitative easing now i want to ask you why has the fed resorted to kerry in the first place. well the reason they resorted to quantitative easing was because the their their traditional. tools short run interest rates hadn't been

pushed as far as they go then that's essentially desirable and so they needed a new another tool in order to support the economy an asset purchases large scale asset purchases or quantitative easing was the two or in your opinion has quantitative easing benefactor. i believe it has been the thirty years i think it's been a factor that holding down longer term interest rates particularly prior to the conversation about tapering i think it was effective in setting expectations for a longer period of short term interest rates and i think those factors help support economic activity the looser financial conditions. ok now now i think that if we got a winding down of a large scale bond buying purchasing somewhat down from eighty five to seventy five what is the central bank going to do next in your opinion but i think the focus for dish here is most likely to stick on remain on winding down that program so

by the end of twenty fourteen i think we'll be largely out of the asset purchase is ness so i think that's going to be one of the primary focus of the policy the other focus of policy that is going to shift to in the background when are we going to see that first increase in short term interest rates so the federal reserve right now is leaning heavily on their communications policies or strategies in order to convince market participants that this year we will likely not see an increase in interest rates and that would be pushed down to somewhere deeper in twenty fifteen that actually that your answer really segues well into my next question as do you think rely mostly exclusively on forward guidance as a principal monetary to all it is going to be effective. i think it will be largely a fact if they've been able to i think do

a good job of separating the communications aspect of quantitative easing from the more mechanical aspect of quantitative easing or that you know the term premium but i think it's a little bit harder for them to accomplish unless they have our list they can prove the willingness to go back to quantitative easing should they need to should they need to you know one of the reasons is essentially that quantitative easing is an action they can take rather than just having the talk of sustaining low low interest rate policy another option to and i don't think they want to do this would be to lower the threshold on the unemployment rate that could be in. a national they could take that would prove their commitment to to lower interest rate policy but i think really another part that they're going to they're going to have to work with is is the economic data improves as expected there is some chance that

the federal reserve will decide those their current forecasts arcelor simply to our . mystic in they're going to need to move those interest rate hikes forward and that wouldn't necessarily be a bad thing you would just be a different expectation we have now now let's talk about twenty fourteen janet yellen is taking over obviously and she cured you know fed president hawks in richard fisher and dallas and charles foster in philadelphia and they may prove to be less than accommodating for her how is she going to deal with. well first of all i'm i i'm not all that worried about either of those individuals i'm not sure that they serve as intellectual forces in the federal reserve so i think that that's one one one point he might another point to keep in mind is certainly we've had hocks are as voting members before such as you know in recent history i can see throwers or president mr george and the have stated their opinion they've been willing to

dissent but they've never really got the upper hand so to speak and any monetary policy discussion i think with janet yellen will do is to focus on her own viewpoint and to garner support. from like minded center does ish federal reserve officials. now well with the fact that there are still some empty safe stuff on the board of the federal reserve had any impact on the town of picher bad policy decision of. well now it's that's an interesting question and a good question because we don't entirely know who's who's going to fill the slots for example we do think that there's a good chance stanley fischer is going to be nominated hero and accepted two to one of the slots and i think that he would find that his. policy stance is really to have lee well in line with birth and so what really comes down to those is

to what extent is the president picked. up. members that are shown are only in line with janet yellen thinking or the thinking in general and as long as he continues to pick members that are generally in in that vein then when it see a large change in in the composition of the policy making behavior the followers or so if the share is nominated you expect that we'll see more of the same is that we're saying you insisted pay that ok yes now could be see it potentially be felled by hawks. i there's always that chance and i think though that we're we could see them thought by hock so to speak is to what extent they get filled they pick persons that are not worried about inflation so much might be worried about financial instability issues some do extended periods of lower interest rates contribute to asset bubbles for example or other sorts of. excessive leverage

through the financial system that could be a danger so there is a chance that we could see additional. remembers an even existing board members push harder in that direction and we saw some hints of that in the most recent f.o.c. meetings minutes. that was tim durie economics professor at the university of oregon. now coming up we promise peter schiff and we live up to our promises however we're going to have him today but the good news is we have more from you on as a verify coming up after the break and then in today's big deal the newest addition of a team at boom bust ed harris and he's going to join me to talk about the priciest cities on the planet we'll tell you where in the world the top twenty high priced jobs can be found but before we had to do a quick break here's

a look at some of today's closing numbers. i've got a quote for you. it's pretty tough. they wait substory. get this guy like me you're about done the work for the people to use the big three were for a job. they did rather well.

yesterday we spoke with the honest fokus economic professor at the university of texas austin about the eurozone crisis today we continue with the second part of that conversation take a look. now as a wind god we wrote the following in one thousand nine hundred two as the euro was

beginning to recover she said quote now if a country or region has no power to devalue and if it is not the beneficiary of a system of fiscal equalisation then there is nothing to stop it suffering a process of qualitative and terminal decline leading in the end to emigration as the only alternative to poverty or starvation i mean those are some pretty harsh words and given the institutional arrangement of the eurozone specifically its inability to devalue the e.c.b. no bailout clause and the lack of super sovereign countercyclical funding doesn't this arrangement basically make designed to fail. indeed it does. and you know what i believe that the founders of the eurozone people like president francois mitterrand of france and chancellor have been called in the early ninety nine and knew that indeed i have done a good holiday by somebody who was in the same room as me in one thousand nine

hundred thirty when these matters was being discussed at the media and said that well you know we're it will be good to do it properly we don't have the political authority to do to form a proper economic union and monetary union so we're going to bind this economy is monetary early and then when these these almost build up about what it said when in ten or fifteen years time there is a crisis. the people who are now who will be in opposition will have to make a very simple choice either to reform the years own to create a surplus the cycling mechanism fiscal transfers and so on or to allow the whole thing to collapse this was it is quite interesting and let me also refer to somebody else nicholas culled the the famous economist at cambridge university in one thousand nine hundred seventy one nine hundred seventy one and actually argued in a very interesting paper. and by the way culture was a utopian misty was probably european it wasn't until european it was probably

integration and even for the nation. if europe makes the mistake of creating a monetary union before the political union that would spell the end not only of the monetary union but also of the european union. now i got to ask you where do we go from here what is what is the end game both economically and politically for the eurozone. well it seems to me that the international. and environment is such that. it now allows for the european union and in particular for the eurozone to end into a long period of what i called japan eyes asian. you made it call the japan in the ninety nine to stagnate it. its banking system remain in a zombified state and the economy and the long period of deflation and

secular stagnation now this is what the eurozone is entering. the e.c.b. has stabilized so that the money markets the bond market and he'd make continue to do this for a while to come but the eurozone is and i think that be good of stagnation now the worst thing however about this is that the eurozone is no japan japan was a homogeneous society is a homogeneous society it was not a comment that the way that the eurozone is the banking sector was somebody either but it was at least unified and the eurozone is none of those things it was for granted and worse still there is no fiscal policy of the ag the level of the eurozone whereas there was one so in other words the eurozone is entering a far far worse and more pay to the us version of what japan went through in the ninety nine isn't the only. possible outcome of this is fragmentation and disintegration of the eurozone until and unless you have been lead this in their

wisdom decides to exit the state of denial in which they find themselves and have been finding themselves for the last three years ok so now given the two options that you just laid out over what time frame do you expect this game to play out. you know the tragedy of hugo is that europe was rich enough to be wasting its reaches for quite a while and to end their period of disintegration that lasts a long while and that's the end of course with which europe is just a shadow of its four former self so there is a paradox here if europe was less rich than it is then that is solution of the crisis would have come earlier but europe combines its wealth. and its idiocy you know that it successfully to put a longer period of stagnation that we eventually lead to.

the marginalization of a great continent on the international scene. now if greece were to leave the eurozone could the euro zone basically stay intact or would you expect other countries such as portugal to kind of follow suit. well mrs merkel herself just before christmas reportedly said to admitted to bunch of journalists that if greece had exit it we're going to zoom. back in two thousand and twelve that germany would have to return to the village but now there is an argument that greece has been sort of ring fenced now but mind you that argument was doing that back in one two thousand and ten when it was completely untrue it is my considered opinion that the monetary unit like the eurozone. once you start taking it once you start of the moving pieces of the jigsaw puzzle will eventually collapse

as there is no way that. speculators will not start speculating after that a good it's a good exit that might not come next and given the state of stagnation of the portuguese economy given that the portuguese public that is unsustainable i suspect the speculation william force the c b to energise the policy of. outright monitor transactions which it announced successfully but never actually put in place never actually to get and that is going to create a whole process given the for agility of the german the governing and the german political scene the grand coalition but i mean i think the political. librium in the uterus zone will shutter following the exit not of greece but of any of the eurozone member states with the exception perhaps of cyprus which is too small to want to worry about now yawn as i think it's fair to say that you haven't

been super optimistic and have you here is there and you're out this interview i'm going to ask you in conclusion do you see any silver lining to anything that goes on in the eurozone. let me say that i go to bed every night and i wake up in the morning every morning hoping that i can find reasons to be optimistic. over the last three years. i kept my hopes up. opinion leaders have been doing everything in their power to suffer such hopes look at the banking union that they decided upon last december if you look at it very carefully it effectively does precisely the opposite of what it promised to do it does not establish a banking union so i shall be optimistic when i see signs real empirical evidence of the change in the. forces that are leading towards the disintegration of europe i'm

a european it's if i sound negative it is because you or our leadership to be more precise has been doing their dumbest over the last three years that isn't black comedy of errors. well there you have a honest thank you so much and i can we can see and hear your passion so we thank you for sharing it with us. that was younus vera fokus economic professor at the university of texas at austin time now for today's big deal. big deal time with harris and he joins me now to talk about the cost of living actually more specifically the cost of living well yeah well we're now the website

pakistan x. pakistan dot com it recently mapped out the most expensive cities in the world and this map here we're going to pull it up for you it shows the cost of living index for us with red representing the more expensive cities and green showing cheaper ones now topping the list this year the one to know where monthly public transportation ticket will run you two hundred fifteen dollars and a furnished lure an hour and furnish a one bedroom apartment check this out cost over four grand yeah that's a month oslo geneva zurich and new york city they rounded out the top five cities now the price index value was based on the current cost of items such as clothing housing transportation medicine and food check this out here's a look at the top twenty the full list as a whole there you go london oslo geneva zurich new york now i want to ask you had first and foremost london has always been a pricey city we know that but why do you think london knocked off expensive cities like tokyo and moscow which always used to live high on the top of the pricey posh

list well i'm sure we'll hear it over to hear because never want to avoid but you know i think this is my personal take is that all those cities that are in there including moscow in london new york they're all international city so if you think about it in terms of just sort of supply and demand. dynamics you know. normal city normal big city let's say like in germany you know that has like six hundred thousand people it's a big city yeah it's a big city but do you really want to go live in no you're not there's nothing wrong with that but i mean you know when you think germany i'm going to go live in. what if you think internationally i want to live in a place it sounds. good london obviously were all those places that you talked about in switzerland you know if you're going to oslo oslo who do oslo that was that really was surprising to me why do you think oslo is number two where you are

so you know what i thought about the list but i saw that i was thinking ok you have on the one hand you have all those international cities like. new york and then you also have the skin the needy in cities which are with the expensive because of the high taxes that they have there you know like copenhagen in stockholm the all those cities i mean the tax rates are really. the same thing actually in switzerland the cost of living is high but they also have very high quality of life yeah you know there's one other thing about oslo in particular they have a tremendous amount of oil so they have this whole room so it could be that some of that house and it was and also you know the scandinavian cities they always win the best quality of life they get rather live for a long time and they're happy so even having to go around them like. you are also you know you mentioned switzerland geneva versus erik i imagine like the difference there is marginal no no in terms of like whether you want to speak german or french

basically yeah but in terms of you know when i speak both great or to i know the airport it depends i remember going to airport on some which side you enter if you have to do. so i don't know but you know it's with so they're equally expensive right now you know d.c. i want to mention do you see where we are right now you know your hometown born and bred lived all over but that rounded out the top twenty this is interesting you know why why do you think that d.c. made today's list i think is really interesting because when you think about it d.c. has become an international city you know when i was growing up d.c. was just like that water kind of well suddenly it's you know everyone wants to come here they think that this is a. it's not just the government telling people because we're here it's great you shall come join us here in d.c. that's all for now but you can see all segments featured in today's show on you

tube or you tube dot com slash boom bust our t. we also love hearing from you subpoenas check out our facebook page at facebook dot com slash boom bust our t. and twitter at erin aid at edward in a word n.h. from all of us here at them but thank you so much have a great night by. technology innovation all the developments around. the future.

for the moment. you know. the a. pleasure to have you with.

a war within a war. and factional syria's rebel movement is a. leadership approval ratings had record. as he was struggling with huge levels off debt and warrant. international space station will stay in orbit until twenty twenty four. missions and got. to write threats were. gathering to discuss the very issues.