are we supposed to love our neighbors not do everything we can to make sure that those in need stay in need and stay far away from us. the only threat in this story is how heartless we call them to consider housing. a threat at all tonight let's talk about that by following me on twitter at the residence. i'm near a david have a great night. technology innovation all the developments around russia. the future covered.

we welcome eric nathan abby martin to be terrific hosts on the r.t.e. network. it's going to give you a different perspective give you one star i'll never i'll give you the information you make the decision don't worry about breaking the work it's a revolution of the mind it's revolution ideas and consciousness in the system it's kind of like your politics would be described as angry i think i'm a strong you know i'm a single. hello

there i'm aaron a this is boom bust and these are the stories that we're tracking for you today. first up jenny yellen makes her first official appearance as chairwoman of the federal reserve we'll tell you what she had to say and what you expect from her new regime then we have run out of promise paul fred roberts sees on today's show he's talking gold default the u.s. economy and much a much more you definitely cannot miss this interview plus we have renowned economist jim what i just told you that one my dear now in today's big deal we have are now an economist in my opinion edward harrison he's discussing why al gore moved a popular big plant out from a top story and what this means for the system that helped out. in the first place all coming up it all starts right now.

the. subject of every day in our lead story janet yellen all eyes on wall street were fixed on capitol hill today as janet yellen chairwoman of the federal reserve delivered her first public remarks to the house financial services committee. now yellen said that only a notable change in the outlook for the economy would prompt policymakers to slow the pace of tapering she went on to say that financial market turmoil doesn't pose a major risk to the outlook for the u.s. economy repeating the fed's statements that asset purchases arch on a preset course so pretty much more of the same however one thing that's not the same the clear skies smooth sailing conditions that j.p. morgan chase is accustomed to now is that thirteen billion dollars settlement that

j.p. morgan worked out with the fed way back in november the federal government that is it caught the attention of both washington and wall street now the landmark settlement stemmed from ak accusations that the bank overstated the quality of its mortgage securities sold before the financial crisis however a lawsuit filed on monday by the nonprofit group better markets has challenge the constitutionality of the deal in the complaint better markets argue that the justice department violated the constitutional principle of separation of power when it unilaterally struck the deal without a judge's blessing better markets is seeking to have a judge approve an injunction that would abolish the deal unless the justice department provides a quote ample and detailed records so such courts may review all the facts and all the circumstances and one washington shenanigans slated to go ahead with the realities of the little drama the passing of a clean debt limit bill to do now republican leaders in the house of

representatives caved to demands by president barack obama on tuesday and agreed to advance legislation raising washington's borrowing authority without conditions where you have it what a pleasant surprise. american economist cult fred roberts was an assistant secretary of the treasury under reagan and co-founder of reaganomics since then he has been an editor and columnist for the wall street journal of business week and scripps howard amongst many other media outlets now in that capacity he voiced his concerns about the strength of the u.s. economy u.s. politics and u.s. civil liberties i started off by asking roberts if he thought the u.s. whatever default on the debt obligations here's what he had to say. bill that would

fall because it can print the money right so. the u.s. . debt isn't dollars so we can always pay its part though all that money printing may cause our inflation and so the real value of the bottom grade fall dramatically but just no chance of the default or all or all the. danger that the country faces. will get dollars exchanged are you aware. all right doll loses its role as world reserve currency you see being the reserve currency is it extremely important it means you can pay your bills simply by printing money i mean other countries can't do that so nice and so to happen for the u.s. . so and so the power of the united states and its financial good cinema over

the world depends on the dollar having this role but if they keep printing a thousand billion dollars every year to bail out the banks it's going to undermine that role for the dollar and the exchange started all collapse and the power of the united states war to climb sharply so bad it's why what i think has the fed thinking about quantitative easing. if it's not really causing the banks to get well it's merely keeping them afloat that it's dealing with symptoms and not causes but it's threatening the dollar then the policy doesn't make any sense so it's possible that the fed is thinking that way i don't know that they are but i've been courting this out to them for several years now and they may have noticed and they may have it may have entered their mind and they may be saying well this would be a very serious situation in other words

a dollar failure would be worse than the banks fail now mr roberts the last numbers we got on. two and four point one percent in real terms on an annualized basis now the u.s. unemployment rate has now dropped to six point seven percent after reaching crisis peak numbers at ten point one percent and the congressional budget office has said that twenty fourteen u.s. federal budget deficit will fall to five hundred fourteen billion dollars that's around three percent of g.d.p. the question is is the united states in an economic recovery. but no of course not . they get those g.d.p. numbers by under estimating or under measuring the rate of inflation. so when they deflate the nominal g.d.p. with an under stated measure inflation they get positive g.d.p.

but if you actually were to deflate it was numbers with a non-manipulative measured glaciers and there would be no g.d.p. growth this probably not been very much of any g.d. p. growth since the economy turned down at the end of two thousand and seven so no other indicator shows economic growth we still have that to clive and median family real median family income real capital income and there's no growth in rural and retail sales housing there's no indication in fact all the most recent indications are they're trying to me is about to drop off further. the unemployment rate the way that goes down is because they simply do not challenge discouraged workers who change find a job and cease looking for a job. so the unemployment rate measures simply because they don't check out those

who give up looking for work the government has a second measure. one employment which they call in years six and it counts. the short term discouraged workers and that rate is almost double the head tonight right to six point seven right. and if you count the long term discouraged workers as well as the statistician john williams does. the current unemployment rate in the united states is above twenty three percent. so there's definitely been are a term which is so folks just larks the terrorists tripping over every terrorism really that we've got plenty of sparring and the recovery is a hoax no one is experiencing we see increasing numbers of people

or stamps we see increasing. hardship on the department lation more pressure on the population there was no. boos from christmas. so the whole thing about recovery is not real stuff it's there and it. they've been able to do that the developments this year are going to make even horrible now i thank you for bringing up the subject of unemployment because the unemployment rate seems to be deceiving the fed in fact the fed's growth forecast for this year is so upbeat it is reason that now is the time to cut its asset purchase program even or out of a lot of the last f o m c statement quote listen to this now in light of the comments of progress towards maximum employment and improvement and the outlook for the labor market conditions the committee decided to make

a further measured reduction in the pace of us asset purchases do you think the fed is overestimating the strength of the economy again. well of course but that's not in my opinion there is nest just their cover and it is not the real reason. they're they're cutting it in fact remains to be seen whether they will continue with their quantitative with tapering the quantitative easing or whether they will have to increase it. if as. many suspect new tonally continues to worsen. and they'll have to. they may restore the quantitative easing the real question here is. what is the fed go does it still focused on saving the banks or has it really

lost that creating the huge numbers new dollars every year threatens the exchange parity of the dog and so they can't save the banks and the dialogue if they decide to save the dollar they've got to stop connotative easy i don't think the fed has actually made this file susan. for now they can afford to cut back the bond purchases from eighty five billion dollars a month to sixty five billion which is still an unprecedented and otherwise unprecedented amount of a debt monetization they can do that because it's tax time. and money is flowing in and to the treasury they don't have to borrow as much for nasa so that part of the quantitative easing that was financing the quarterly

federal budget deficit that's eased up moment. well that will disappear later in the year. and so we don't really know what is going to do like or should we real question. are they going to say the banks are going to let the banks go so you can do all they can show you right there's a trip all this learning trust and water to shift toward the balance sheets of the barracks you're going to undermine the very good all the. time now for a quick break but stick around because when i return more with economist paul craig roberts he's talking gold both physical and paper so you won't want to miss it then in today's big deal edward harrison and i discuss a recent move by apple that ticked off a bunch of big users we'll tell you all about it but as we had to a quick break here's a look at some of today's closing numbers a bell stick around. and

we're back with more from economist paul craig roberts now in the second half of our discussion i spoke with roberts about gold both physical and paper and now there's a lot of talk lately of hot money lead emerging markets for safer havens and this is depreciating emerging market currencies but not as many people are talking about gold as a safe haven i asked roberts if the gold rise might be due to the emerging markets

crisis. by suppressing the paper profits go that's done in the futures market the comix market. what the fed has done by suppressing that it's made it very cheap to the chinese and indians to buy up the actual physical supply of go so what the what the fed's policy has done is calls a massive go flows from the west to the east at a low price. see the go price is actually established in the period just market which is a paper market for example them out of paper claims own goal far exceed the going available for delivering it coming max couldn't possibly make delivery on the futures contracts if people wanted to settle and go rather than just settle in the cash price so so the result has been issued to go floating in

asia at the scituate a low price now what's happening in the emerging markets is is unclear and there the conventional wisdom is that the fed created so many new dollars on the banks didn't have anything to do with them and so they led them into the emerging markets that they flowed into his way or in argentina or in these other countries and that now that the fed is going to taper and cut back. there and this money is flowing back into the united states but still not clear where we're going to go away apathetically was stock market falling still so much and the other explanation for the emerging market currencies problems is that their currencies are being manipulated dispirit easy for dominant currencies whacked a dollar to to manipulate the currencies of smaller countries and maybe the

venezuelans being paid back. maybe this is washington's way of destabilizing the remnants of the chavez government i mean stranger things have happened but i want to talk about play on the subject of gold now in the bond us bank they began repatriating it's called from overseas out of storage and presence like the federal reserve now you've said that you think the fed as you mentioned before doesn't have enough gold to go around if everyone wants to our climate can you explain this a little further. what well they were the fed wouldn't give german school back i think if i remember correctly german is deposits with a fair that is. fifteen hundred pounds thousand five hundred pounds a ton something tops thousand five hundred thought wow and the fed said well if you can't have it over the next seven years we'll give you three hundred tops

that will give you a fifth of what you trusted us for your well why would the united states tell its most important european now that it could only return a fifth of gold that it left where they don't drive it's if it had to go it and i think this last year the united states actually only returned five times. that i have sounds incredible to me now if the fed doesn't have the gold what will happen when bonus bank figures this out i mean they're learning it as it goes along but what's going to happen i think the boom is black is already figured out but it looks looking now go back a little bit in time in two thousand and eleven should it and bit as well and demanded their hundred sixty times back. and they got it but it took the fed

a cool minutes. twelve months to come up with one hundred sixty tons well now two years later they can't come up with three hundred times for germany. so this supports the conclusion of many people who are been active and would go train for years that what the fed initially did to suppress the price goal was to learn that up the gold it had on the closet to bully the dealers who sold it and this increased supply of gold into the market helped hold down the price now as a drained their holdings of goalie had to turn to a new mechanism and that was to sell the next good paper assurance that is they go in and they sell a future contract the goal that's not covered there's no goal to try to protect and that then drives down the price so that's the explanation for why

the received out so much negative short selling where huge amounts of contracts are dumped on the market it least opportune times of day and nobody trying to get out of a position would unload it in that way because that's the way for maximum loss it drives the price down the most so i think the fed doesn't have any go but they're having great difficulty. to come up with it and and in consequence. there is fear that sooner or later the. western system will not be able to deliver to china the go purchase right now case oh system will just simply implode on the subject of paper gold gold

e.t.f. and that's going to be my next question do you think these funds having a physical gold. to back their exchange traded fund shares well where it is quite clearly that they don't i mean the evidence is clear that that they don't have enough gold to back the share in fact what has been happening is part of the mechanism for driving down the price to go when you sell the paper shorts and drives down the price it causes margin calls that causes a stop loss orders to be triggered and all sorts of people bail out of the shares so the very people who are doing the shorting can then step in and buy the shares at a very low price and these gold exchange funds have very strict rules about who can redeem the shares from gullible and basically it's only the big bullion bikes j.p. morgan for example and they and the shares can only be redeemed and large amount

such as one hundred thousand shares so what what what the suspicion by many going traders is that these bullion bikes conduct these raids only go lead to yes an order to accumulate the shares who then lose that e.t.s. of the goal so that they can make the gold liberties to endure and and santa is so is part of the movement of the precious metal out of the west into asia sadly that's all the time we have for now please come back on the show very very soon and enjoy the warm weather in florida pleased to be with you. that was economist and former assistant secretary to the treasury paul craig roberts time now for today's big deal.

edward harrison joins me now to talk a digital mobile payment system on stuff now several days ago the last remaining decline wallet from its abstract work what is a big coin wallet you maybe ask you well it's an app that allows payment simply to conduct by scanning a q.r. code now the wallets are designed to be easy to use and reliable also being secure and fast however the move by apple to nix the out blocked chain one of the most popular big client wallet outs on the market has angered bitcoin supporters and with over one hundred twenty thousand downloads it's easy to see why now apple cited unresolved issues with the developer as their reason for banning the app however the makers of the op have accused aapl of trying to eliminate rival money transfer systems systems that could potentially threaten apple's own ambitions in the mobile payment world you don't think apple is going to sit on the sidelines for

this whole cryptocurrency crazed as you can possibly and now my first question to you is what do you make of this latest move by apple why would they do this well two reasons one the big in terms of you know that people think that in fact apple is a rival to a big coin in the sense that it's going to bring out its own payment system and the other is actually security because we're right now big problem with mt gox and other places because of an attack by hackers some security vulnerability that this scene with how they're developing their software ok now ahead with the availability of these virtual operating systems could apple's actions prove immensely detrimental to the growth of crypto currencies in general. you know i think it could be detrimental in the sense that we're going through sort of a hyperbolic phase in terms of the you know. the value of bitcoin and so you know to the degree that it suppresses the availability of bitcoin of the

ability to get your money out i think that phase is going to come to an end and so we're going to we're going through a phase shift from the early adopter of to sort of the mass business going to be a shakeout in terms of who the the agents are and i think that's going to be detrimental over the medium term but over the long term i think that bitcoin will still be a factor always post time decline actually just read a tweet that you know at least a.t.m.'s are still working today and if they got you should have a pretty going to do about that you know is there a vulnerability to all big cornwall and software companies you know they are are they in trouble something like this happen to all of them well you know that's what you were i was talking about the floor you know i wrote up a little bit about that because you know let's just talk about how the point works because you know big point basically an internet wide distributed network of transactions and you have to make sure that the transactions are all confirmed you

know the owner and the owners a big point of correct you have to have the big one miners they're. only in these ledges and the ledges contain the transactions and the thing is that the miners turn these transaction i.d.'s these transactions into hash tags using a cryptic graphic hash. that's based on this script a graphic format called a to take a guess who actually created this particular cryptographic system. and word snowden very close to zero and. so that's another point we'll get to but you know it's similar to the one that when we download. software off of the internet you know there's a there's a code that comes out and it says the code that you just downloaded or the program you just downloaded is actually the program of the person who put up the program once it's a bit so the thing is it takes ten minutes for these miners to transfer these.

letters in this transaction i.d.'s into these hash and you need six of these in order for it to be confirmed transaction so it's a whole hour for the transactions to go through then no one wants to wait an hour now and so as a result these big cornwall it's are actually putting through these unconfirmed transactions before the sixty minutes is up and that's where hackers can get into play take advantage of the vulnerability and then these transactions no one quick question are the miners kind of operating as the bankers if you will there it's sort of like if you think of like bit torrent it's sort of like a distributed network there are no these are the full nodes within the within the actual system and they're the ones that are keeping everything distributed and in concert with one another wow interesting fun facts i always love learning more about quiet that's all the time we have for now however you can see all segments

featured in today's show on you tube you tube dot com slash two must r t but also i love hearing from you so please check out our facebook page at facebook dot com slash boom bust our t. you know also tweet us at aaron aid at edward n.h. from all of us here at boom bust thanks russian see you next time shall. technology innovation all the developments from around russia we've got the future of coverage.

today on larry king now we love the bad judge judy i think so see a lot of mediocre politicians they get elected to high office and then we're all surprised when everything gets screwed up to say well the country has moved forward we close we have a woman president of the course we have a latina president of because we have a black president and that's not the answer that's not where the focus should be the focus should be the best plus do you ever hold back no work for a.