as 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 that thirteen billion dollars settlement that j.p. morgan worked out with the 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 banks overstated the quality of the 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 as part no all the money printing made our inflation and so the real value of the bottom rate fall dramatically but just no chance of the default or all or all the. danger to the country trace it. will the dollars exchanged are you aware. lose its role as world reserve currency you

see being the reserve currency is extremely important it means you can pay your bills simply by printing money i mean other countries can't do that so nice going 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. billion dollars every year to bail out the banks it's going to undermine that role of the dollar and in exchange for the dollar collapse and the power of the united states will decline sharply so that's why what i think as the fed same thing 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 doll 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 pouring this out to them for several years now and they've even noticed and that 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 failing now mr roberts the last numbers we got on g.d.p. growth were three point 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. that no of course not . they get those g.d.p.

numbers by under estimating or under measuring the reign 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 those numbers with a non manipulated measure of inflation there would be no g.d.p. growth there's 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 the decline and median family real median family income real capita income and there's no growth in real retail sales housing there's no indication in fact all the most recent indications are the economy 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 trying to job and sees looking for a job. so the unemployment rate measures simply because they don't shout those who give up looking for work the government has a second measure one employment which they call you six and it counts. the short term discouraged workers and then rate is almost double the head not ready 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 data been recovering this is so folks just larks the terrorists tripping

over every terrorism really that we've got plenty of spiral and the recovery is a hoax no one. increasing numbers of people own food stamps we see increasing. hardship. of the population more pressure on the population there was no. boos from christmas. so the old saying about recovery it's it's not real stuff it's there and it. they've been able to hide it but i think 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 a reason that now is the time to cut its asset purchase program it 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 an 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 the reason best just their cover and it is not the real reason. they're there card again in fact it 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 neutrality 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 is it still focused on saving the banks or has it really lost that creating the huge numbers new dollars every year threatens the exchange berry 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 debt monetization they can do that because

it's tax time. and money is flowing 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. that will disappear later in the year. and so we don't really know what the fed is going to do it like a shit real question. are they going to save the banks we're going to let the banks go so you can they can say right this is critical all this money cost and water to support 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 and then in today's big deal edward harrison and i discuss a recent move by apple that ticked off a bunch of big corn 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. for the. senior u.s. state department official victoria nuland and the american ambassador to ukraine said on tape with many have claimed all along washington's plans to overthrow the elected government in kiev on this edition of crossfire we call this embarrassingly changes the political battlefield when you play.

that. but they're dealing with the location of the consumer always still remember. how to the dwellers of the royal high tax and said you would stop this storm we might be more my people will die. well if you're the market like. ali. you know. pleasure to have you with us here on t.v.

today i wrote researcher. 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 correction go back in the futures market the comix market what the fed has done by suppressing it's made it very

cheap to the chinese and indians to buy up the actual physical supply that grow so what what the fitch policy has done is calls of massive go flows from nowhere else 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 goal of able for delivering the coming mix couldn't possibly make delivery only pitches contracts if people wanted to settle and go rather than just settle in the cash price so so the result has been these huge gold flows in asia at scituate a low price now what's happening in emerging markets is is unclear and there the conventional wisdom is that the fed created so many new dollars at 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 in argentina or in the east of the country. 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 at the ticket was stock market falling so so much and the other explanation for the emerging market currencies problems is their currency is it being manipulated dispirit easy for dominant currencies whacked a dollar to to manipulate the currency is a small country. and maybe the venezuelans being paid back. maybe this is the washington's way of destabilizing the remnants of the chavez government i

mean stranger things have happened but i want to talk about like on the subject of gold now the bundesbank they began repatriating its gold 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 the fed would give germany in 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 of gold that it left where they don't try to stay if it had to go. and i think this last year the united states actually only returned five types. that i have seen is incredible to me now if the fed doesn't have a goal 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 did as well and demanded their hundred sixty times back. and they got it but it took the fed a cool minutes. for 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 in the gold train for years that what the fed initially did to suppress the price goal was to linen out the gold it had on the posit two billion dollars who sold it and this increased supply of gold into the market helped hold down the price now has a drained their holdings of gold they 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 gold to try to protect and that then drives down the price so that's the explanation for why the we see them out so much negative short selling where huge amounts of

contracts are dumped all 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 gold they're having great difficulty. to come up with it and and in consequence. there is fear that sooner or later they're. western system will not be able to deliver to china the go purchases right now case oh the 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 have been a physical gold. to back their exchange traded fund shares well is quite clearly 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 will 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 banks 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 conducted these raids only go lead to yes

an order to accumulate the shares who didn't lose the e.t.s. of the goal so that they could make the gold liberties to endure and shana 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 systems fun stuff now several days ago the last remaining

decline wallet from its. what is a big coin wallet you maybe ask you well it's an app that allows big payments 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 ups 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 apple is

a rival to 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 is that this scene with how they're developing their software are they now had 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 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 beauchamp eclat 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 wall and software companies saying you know they are are they in trouble could something like this happen to all of them well you know that's what you were i was talking about with floor and 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 question 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 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 passions and you need six of these in

a word for it to be confirmed transaction so it's a whole hour for the transactions to go through no one wants to wait an hour no 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 you know 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 knows 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 or you tube dot com slash two must r t but also 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 for watching see you next time shall. be likely to see any sort of counter revolution. preserve maybe even charcoal. the islamic religion this is one very powerful force so wards maintaining traditional marriages and values just as they become more western liberalism. becomes powerful and we have to sort of make it civilized. a collision course.

is obviously more for the latest because it's pink. women wanted to avoid rape they really need to buy guns environ how to use them. this is the one that i want to go with them once again it's the field for women definitely a target of the gun lobby and you don't kill them when the killing money but if somebody would you would piss with her. i'm noticing more and more is this really scary marketing tactics which implies that women have some sort of moral obligation to protect their family and young girls shoot out here. so we do have a pink or. more kids young kids choke on food than are killed by firearms if

being armed made us safer in america we should be the safest nation on earth were clearly not the safest.

a world record. for their short program and continue their pursuit for gold plus. and snow you need to panic olympic. events will go ahead today despite the fine weather temperatures. a lot of the the early hours sleep to. call it a better way of the body. parts he travels through south africa to explore the nation struggle to overcome corruption poverty and deep divisions left after the passing of nelson mandela.