picture days later leaders from around the globe. looked to. me. i would bet that. a society that. big corporation kind of can. do and the banks all that all about money and i was fascinated that the politicians write the laws and regulations that. there is just too much. of a tie. up that. lists

. lists. lists. cross-talk rules in effect that means you can jump in anytime you want. hello there i'm aaron aid this is boom boston these are the stories that we're tracking for you today. first up pimco ball small madell area and announced he'll be stepping down as head of the team really an dollar investment firm so who's slated to take his place i'll tell you coming up an economy economics professor he

sat down with watch to talk to dad both here at home and the land down under lost in today's big deal ed harris and i talk about decline coming to a vegas casino near you it all starts right now. after seven years at the helm of the as the big investment management co or pimco mohamed el they are and will be asset management giant in mid march now bill gross will now serve as the primary public face of the two trillion dollars firm mr gross's pimco total return fund suffered industry record outflows in twenty thirteen when stocks posted their biggest gains in over

a decade pimco is efforts to build a stock fund business wavered it despite many investors looking for a higher yielding alternative investments like equities and junk bonds. elsewhere the prosecution's star witness in the case against former as they see trader matthew martoma turned against the former portfolio manager on tuesday dr sidney gilman testified that he lied to the f.b.i. and regulators for nearly a year about passing insider information in the summer term up now dr gilman said quote i was intensely ashamed of it. i was hoping the whole thing would go away. well it didn't dr goldman's testimony is that the heart of the government's case against mr march emma who they say cultivated a friendship with dr gilman and then corrupted him by seeking to gain confidential information about a clinical trial for an experimental all simers drug being developed by pharmaceutical companies you on and why you. and finally you on musk's electric car

maker tesla has installed eight of its fast charging stations across europe four of which are located in germany and cities along the autobahn now with fourteen charging stations located throughout the continent continent tesla's free electric car charging network has significantly expanded throughout europe while tesla's european market is smaller than that of the u.s. in terms of sheer volume there are already a decent amount of tesla customers in european cities with environmental leaning populations and electric car incentives tesla now has eighty one super chargers installed worldwide and the company launched the three charging stations to help extend the range of its model s. cars which get about two hundred to three hundred miles per charge. well there you have it as always we'll be tracking these stories and keeping you posted on all the latest.

fifteen is a well known economist who is considered one of the leading critics of mainstream economics treatment of debt and money now he considers himself a post keynesian in that he had hears to many of john maynard keynes ideas that demand matters in the long as well as the short run but his focus is debt and specifically how hyman minsky's financial instability hypothesis is reflected in highly indebted economies now right now dr king is working on an ambitious mathematical model of financial instability simply called you know i spoke with steve earlier this week and i asked him whether his principal concern right now was private debt take a look. well that's really the the main driver of the economy and this is the amazing thing that economists tend to believe that anything privately does is good anything about profits that they did it does it's bad if a private think there is good and public that could do it is bad but the ironic

thing is normally a new invention would be comment that was completely wrong this president so loosely wrong because in many ways public debt is easier to handle than private debt for the simple reason that a person who isn't a profit person can't get their own back notes to get out of trouble but up to a large degree public sectors that are and can print their own bank notes bank notes to get out of trouble so it's actually the private good consumables to cross use and when you see rising public debt that's normally because of collapse in the level of private sector funded sixpence specifically because the profit through stop borrowing money much for saussy what caused this crisis and because of conventional economic board it still hasn't been identified as the cause of the disease was suffering from now so what you have around the world is economists advancing countries to a treat the symptom which is public there rather than the cause which is a collapse in the right of growth of profit. and interesting and different perspective than what you hear often now you wrote in

a recent blog post on steve keen's debt watch you you showed us scary graph of the ratio of u.s. household debt to out but now with the household debt rising from just over twenty percent in the early one nine hundred fifty s. to over ninety percent of g.d.p. before the financial crisis began the question is do you believe this debt will present a problem for the u.s. going forward going to be two reasons one is that the private sector or it's not to constructing that's what the the the business sector when it borrowed money can borrow money to have build factories and so on the household sector when it borrowed only borrow to buy houses and therefore you have the housing bubble appearing out of that which built man some housing construct. but you mean when it happened too much housing construction and mainly drive of the process rather than actually building new and new facilities that people live in what you need for a robust economy has been new factories to be bill new products to be designed new technologies to be invented and so on and that will focus on borrowed money and

that hasn't happened so what david said happened is that households that could borrow on a gigantic style dramatically increasing the level of their house to service and therefore being unwilling not only to borrow the money but even to spin the money they currently have because so much of their money is now devoted or debt service so it means you have a constrained consumption sector and that particular drive becomes out of a household one it won't be there so we have many many financial reasons why the economy is now causing stagflation ok what about interest rates there are the fed's zero rate policy it has all interest rates so low here in the u.s. that the household debt service ratio than the u.s. is at three decade lows now want full low household debt service caused help to stain an american recovery. it certainly makes a doozy of a household's you have borrowed money to continue servicing that that it doesn't

make it easy for retiree's that thought they were doing the sensible thing by saving money and buying bank bonds and so on you begin to get. them to consume so because it's about wise low interest rates make it easy for those in debt to spend anaemic make it harder for those who want and save money to spend so it really cassar the self out many many ways and the trouble is if you have an economy where people have that much to it it isn't just the servicing costs that matters to those people it's also the fact that they can only continue repaying that day if they continue having an income and of course what that means is the even the credit for almost right down to zero if you have an enormous debt level and you're looking at that debt level you think what's the probability of me hanging on to my job in the future and if you think of probability is low it will not consume no matter how water rights fall so it's really the fact that we live the private sector and take on that much debt and fundamentally that's because the financial sector profits by

creating debt and already talk about america being dominated what was it how it used to call the military industrial complex that's been revised off on more dangerous object i call the politico financial complex and the politicians can't imagine an america without a financial sector of the scale that it is but the size of the financial sector the major cause for america's problems so it's going to be a long hard road to reduce that debt level and get it to the down to the side where the financial sector falls back to being the servant of the physical economy rather than a small stop and unfortunate that's what we live but they do and in many ways the zero interest rate policy of the fed is because you are adding betting that imbalance in the american economy ok now is the situation in europe different because of the euro. i mean this is one of the most insane policies that i carried out and one of the reasons you're going to do. separate how insane it is is to say who opposed it and normally we could get a lift wing right wing split on particular policies with the right wing can still

be in favor of free try living tends to be in favor of protection and so on but ironically here i can take a person from the far right and spectrum of the american economic separate milton friedman you can't get much more right wing in milton friedman and when godly on the far left wing and godly one of the right instructors of non-orthodox know an equilibrium approach to to economics and both of them said the road was a catastrophe waiting to happen about ten years before it came into existence of god when god leaves it making the best statement about it and saying that the people who put the road together. because they didn't establish a treasury but they did a step which the central bank must believe that a central bank is all that's necessary before the capitalist economy necessarily which is equilibrium and harmony without needing external intervention from a government sector because that's wrong you wrote this not in ninety two by the way he said this will ultimately lead to a process when the great private sector has

a financial process and the only expect from this process will be by the immigration will stop. now when he wrote that not in ninety two and beloved in review of books he would have been scoffed at this in extremis alarmist. apparently paranoid individual how bit can you would describe the situation of auckland and spain and portugal and greece today when i hear many many reports of young portrait in particular for example immigrating to mozambique to find a job while now the euro has made the european situation that bad and now you get people who again the divide myself in economics more mainstream perspective i pulled all of those deciding the year i was a catastrophe because you cannot just have a central bank if you're going to have a single currency you must also have a treasury which can distribute. government created money when this is down to the new one particular part of the rule

a margin dollars mass and because europeans didn't establish that and they're imposing searches based on the measure of trade which is must be one of the most insane ego mccready's ever invented that's why europe is two or three times as bad as america program now private debt they're extraordinarily high in many european countries as well like like you mentioned but here we have a chart here and it breaks down the debts as a percentage of output and corporate and household debts they're all well over one hundred percent of g.d.p. in the euro zone so the question is where do you see private debt in the eurozone as most problematic. well the probably the most the most extreme is england but one of the reasons that england has that extreme level of did it because it didn't make the fetches big bang they have to england do this into the city if the top money and financial speculation around the globe it's no surprise that things like ideologies failure and so on it could in england rather than occurring in america so. it's got the most problematic little at the same time it can be kept alive by

off money and from frankly illegal money the most boring i think in many ways is a bit a mystic situation would be the netherlands because they've got an extra strongly high level of household that a high level of corporate debt as well and if not be going backwards economically the some several years without the problems of spying without the problems of greece and so on so i'd say the netherlands are the most extreme example. now coming up after the break more with steve keen we talk about the australian economy and housing markets plus in today's big deal at harrison and i talk about what a big deal it is that some vegas casinos have started accepting bitcoin today just today they started and as we had to make quick break here is a look at some of today's closing numbers with the bell stick with us the.

old. technology innovation all the developments around russia. the future covered. i am the president and i think a society that case i think corporation trying to convince us to consume can do i think the banks are trying to get all that all about money and i'm actually sick for politicians writing the laws and regulations to tax bankers. there is just too much is a society. that. back

now with more proof even keane now dr king has been warning about a crash an australian house prices and in the second part of my interview with him i asked him to give us an update on his view of the housing situation there in australia take a look. fifteen. months up and take in the regular sky news all about what should happen to interest rates no doubt but that publish what i say but every time i say. it's i had and introduced learned evaluation controls for example which is the simplest way to control the amount of money in a bank and lend to finance a house purchase now that's been ignored ignored ignored ignored ignored and then in august of this year lo and behold the new zealand central bank introduced land evaluation controls so rather than this being up at the view by me it's now a concrete idea of course that was ignored by the australian reserve bank and what has happened instead of with rights falling down there it was a very full and employed low three percent two and

a half percent down generally headed lower in the next year. that has meant that mortgage rates of fall into five percent of the order of five percent and people who are looking at their returns on becoming absolutely flat levels think why do not buy property instead so we now have the baby boomer generation who made money out of the bubble in the first place diving back into the market as investors and we have now had the highest level of so-called investor borrowing into the housing market you know history so about fifty percent or more of the borrowing is in this is less than ten percent is now. the remainder of people upgrading their houses so consequently house prices now too expensive the people who don't own the house wouldn't consider buying one but what's keeping the bubble during is that speculation by the first time more importantly more dangerously we have the world's largest super and you. the superannuation wealth of the. you know retirement scheme look like the american for a one k.

is one and a half times the size of the economy and recently about five or six years ago the government allow people who manage their own superannuation funds to borrow money to buy housing so that means is what are the brother of one of the house trillion dollars of money sitting there been treated by housing industry and it could be three or four trillion dollars when you believe that one of the half trillion dollars are best astronomical now when talking about australia it's hard not to mention china so i'm going to do that chant of the con of me it's slowing and commodity years has slowed right along with that my question is what impact do you believe this will have on the australian economy. well it would be to save america's news or the stray ashes call that big of a china's news as a stray it will catch pneumonia but the question of when judge when to try to snooze and how effective are its prophylactics against that is that that's news china's stimulus is the one of the second major reason of the break and for the financial process so well the first reason was we restarted that housing bubble of

what of what the government called. in is supposed to which i'm more accurately read part of those time vendors boost by giving people who borrowing money to buy their first house two or three times as much government money up to twenty thousand dollars from the government bought to buy a house as opposed by out and that pulls the bubble the restart then when that side to peter out that's when china has an enormous increase in its financial stimulus for its economy to overcome the impact of global financial process on it came through and hit our mineral exports and that was a huge novel and the faults of minerals of course but also investment to build new mining facilities and so on so we're now dramatically beholden to what happens to the chinese economy now i regard the chinese communist party leadership is probably the most intelligent leadership on the planet but also caught in the up in the bubble to manage the system but also with massive reserves so i'm not about to call them to think china will solve this i know many other people talking about the

possibility of paul when they maintain the financial mentum to keep this from that they have a bubble going but if they do then we will see a collapse announcement of trade and a collapse and now road materials exports and that will also will completely cut the ground out from these drying economy we're certainly seeing at a time of rosin the level of unemployment in australia despite the impact of that investment and the export boom so we're suffering a slow believe blacks are the reality the destroyer is not different to the rest of the world we're all caught up in this financial process we have time for one last questions i want to ask you which company is specifically would you be all on the impact of an australian housing slowdown would affect most. well on a company like borel that depended on the production of new housing for the large part of the sile they were obviously going to be a victim but how do you know all of the world would affect their stock out those

housing was there and ultimately the banks are the ones of the most exposed because now the banking sector is asset backing is fundamentally the acid back into the valuation of the strike and housing and if that starts to soften then their excessive levels of valuation are going to fall down remember of course the back in not in ninety when japan when through the first bubble economy that we should all of one problem we all fail to learn from by saying that's just a japanese problem back at that stage non of the ten biggest banks in the world the japanese now none of them up now i think the strategy that i think has got something of one of the one of two given the size of our economy that's outrageous one of two of our banks are certainly in the world stopped in banks that's ridiculous given the size of our economy so that when the house first steve thank you so much for your time manner and say we love having you on the show and hope to have you back on very soon thank you thank you what america by. there was steve keen professor of economics at the university of western sydney now it's time for

today's big deal. mr ed harrison joins me now to talk a bit coin and vegas yeah. now we talk about because a lot on this show and a lot of people would call big gamble but today for the first time we're going to talk about bitcoin and gambling coming together as one in none other than las vegas nevada that's right two separate vegas casinos have announced that they will become the first commercial gambling institutions to allow the use of the unregulated virtual currency bitcoin now the co owned golden gate hotel and casino when the deal las vegas casino hotel will begin accepting big points today as payment for hotel rooms and if what do you think about this good idea bad idea i want to hear your thoughts i think it's just the beginning what it's basically showing you is

that big cooling is going you know they're going mainstream i mean these are really the biggest hotels or the best hotels in las vegas but it's the beginning you know you start with some calls over in terms of. we have these two companies in terms of casinos and over time you know crypto currencies as a payment method because you know the algorithm it will be because it will become ubiquitous so it's kind of what we see that are we are talking about this before you know it you said the internet it's it was fringy when it first started people like the internet that's creepy but now you know like requiring a friend gets the less exotic things but the big one purchases at the casino hotel will be processed through big pay now big pay as a service that streamlines transactions using tablet mobile interfaces tablets programmed with bit pay will be installed it each cashier allowing big corn users to easily pay for services using their mobile wallets and. it seems like the pay is one of the biggest winners here when she say no i would definitely say no the

question is quite a currency war is it a payment. or is the payment asked aspects of you know pay the most interesting what is it here why not a payment that's a good question because you know you're looking at not just the currency aspect of it but you're looking at the fact that it's all your it's a payment system think of pay pal or any other payment system i mean to me that's the real innovation within terms of bit is the fact that it's a payment system and it is a direct threat to something like paper but it's not just about paper it's there but it's also a threat to the current banking system just imagine that you don't even have to have a banking account you can use bitcoin to make. or no cost way in the same way that you would be able to move money around in the banking system without any mediately right or you can have your employer pay you

via that payment system so it's fantastic to me i don't see any problems there you know the fees that you have slapped with for simply i don't know moving money from one account to another you know like you said the checks they need to clear their time but having it instantaneously would be brilliant no i agree and you know the real question is how can we get this payment system to settle down in terms of the store of value in terms of the you know the how much because it is worth it in terms of the actual application the platform a bit because of crypto currencies i think that this is an idea that is definitely moving mainstream now you're mr popular on twitter you have a ton of followers that i noticed yesterday that you had a long conversation yesterday on twitter or battle if you will now a conversation about big coin in general can you tell us a little bit about that because it's fun to watch your marc andreessen who is a venture capitalist one of the founders of netscape wrote a great article about bitcoin and he's saying that some of the same things i'm talking about he was talking about bitcoin being you know as

a venture capital is something that he was really looking into in terms of the technology and he's thinking he was saying you know economists are always talking about it in terms of the currency you know forget about the currency don't talk about the currency it's the technology underneath and he was saying you know the internet started as a whole frenzy kind of thing when i was in it with netscape and look at it now look at it today it's it's really taking over and he thinks that because it will go in the exact same direction breakers and reason he was my sake into into netscape right he was in that. from there he now has injuries and horwitz which is the venture capital company great so now what i want to ask about big question are you saying a big point itself could crash and burn those that would you think spend half an hour the platform might be application will will endure but. seller by we i mean that is the good question in terms of will bitcoin actually work over the long term i personally i think that big call it's value is going to it's based on speculation

at this point and you know the potential crash is pretty high i think that because it is probably a bubble but you know the application the technology the platform is there not just for currencies but for other things and definitely in terms of the payment system i think it's a great so we're to ups you know pretty flowers afterwards bubbles all of that that's all for now but you can see all segments featured on today's show on you tube or you tube dot com slash boom bust our teeth well so love hearing from you so please check out our facebook page at facebook dot com slash boom bust r r t you also follow walk on twitter at aaron eight and edward edward any age on twitter from all of us here have been by us thank you for watching until next time check out our.

wealthy british style. sometimes. market why not. 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 in to conjure reports on our. little little. little

. rules in effect that means you can jump in anytime you want. a little.

on larry king now the star of the hit h.b.o. series girls it's allison williams was one of my first audition after graduating from college so i just felt glad that i didn't you know pee my pants or start crashing i think the girls are more motivated to be practical about growing up and so the season is clumsy in that pursuit the first kiss was sixteen yeah well brian williams t.v. had. plus i just can't play very angry to talk about this is all next on larry king now. for going to larry king now a special guest is the lovely and talented allison williams she stars in the h.b.o. run away hit girls.