for those that. are reading it on our. over there i'm aaron a this is very bust and these are the stories that we're tracking for you today. first up you thought your d.v.r. was pretty cool right well wait until you hear about the latest technology netflix is working on some pretty incredible stuff you won't want to miss it then we have american icon a mysterious author and champion of modern monetary theory one of those who are on today's show is an orthodox and attention grabbing economic believes never fail to excite and you won't want to miss our interview with him and finally in today's big deal edward harrison and i discussed evie five of these it's a federal immigration platform better known as and best chance for green cards yeah that's what it's better known as our program you all want to miss

a moment and it all starts right now. the. last one said they were wiring time warner cable for a cool forty five billion dollars it was all anyone in the world of technology media and business could talk about and while the deal if completed will no doubt reshape pay t.v. as we know it today what many overlooked last week was a pretty incredible announcement by netflix now the online t.v. and movie outfit is currently in the process of building an artificial brain using amazon cloud technology yeah talk about revolutionizing in history now netflix is moving into a field of research known as deep learning that means that netflix is training its

software to provide better recommendations by feeding massive amounts of information to a technology. neural networks now neural networks mimic how the human brain identifies patterns so opposed to making suggestions based on things you've already seen netflix instead will make suggestions based on what you at actually like about your favorite shows and movies and to create this deep learning software netflix is taking advantage of amazon's powerful cloud infrastructure and that is some powerful infrastructure there now netflix isn't the only player in the tech world to utilize deep learning and in an effort to increase their bottom line facebook i.b.m. and google have all recently hired experts in the field of neural networks in fact i.b.m. has said it supercomputer watson will soon be able to reason and debate true story you thought the overpraise merger of two of the largest cable companies in the u.s. was impressive how about having your d.v.r. tell you what you think before you even know it yourself that is really impressive

. now in january economic figures came out showing that the u.s. grew at an annualized rate of three point two percent everyone was telling us that the u.s. was poised for even faster growth at that time however not investor an economic analyst war mostly or he used his understanding of how different sectors of the economy interact analyze the figures most lawyers caution has been validated this week and recent economic data so i was keen to get his view on where the u.s. is headed next especially in terms of the labor market. or last time we spoke you indicated that you saw a weakness in the u.s. economy that many analysts did not since then we have seen two consecutive jobs

numbers now is the labor market one of your concerns. yes one of many everything seems to be coming to town but if you see anything that's going up please let me know here and i write well that leaves my next question what about retail sales we've seen a lot of inventory building at u.s. companies is this a good thing or a bad thing. well it's a bad thing for the economy and for gross if you look at the total retail sales for the last three months the growth rate this did slipping every month in this month coming out and it was thursday supposed to be minus twenty one starts going into negative territory. now in the u.s. auto sector u.s. manufacturers they currently all have over one hundred days sales on their lots and other sellers have an average of three months inventory is that there are a lot of inventory in anticipation of demand. yes it is it's interesting of course because the same amount of inventory same number of cars becomes more months as the rate of sales slows right so starting november driver to over and over again in

november number didn't look so bad all of a sudden a sales slow two months now it's awful. and you think we're going to see a big problem with us. are we already are we're seeing our cutbacks in production here and it's you know everything's going backwards i see is just slipping growth is slipping away very quickly indeed now what about the housing twenty thirteen was a record year on the residential property front where do you see this trend heading . well mortgage applications for purchasing homes are now down seventeen percent year over year to tell you something. pending sales that look like they've collapsed you know housing starts and all the others of rolled over so that even there's like inventories are now going up they're higher year over year than they were all last year for the first time still low but higher you're of the. now what are your thoughts on how the g.d.p.

for this first quarter. keeps getting revised down it's started somewhere around three percent and the latest number i just saw from the dealer it was one point seven so if it keeps getting revised down at this rate. we're not going to have much less to have march thirty first so it's not good not good not good at now you've been slipped a negative in your opinion other than what we've gone over what's driving it down. or ask of sales right because g.d.p. is basically sales and we had inventory building which we're not doing any work there we turn to to him. with conditions which means even less production output less sales and. income you know the incomes aren't there if you look at personal income growth year over year in slipping and it's somewhere near zero depending on how you look at it you can look at it in the movie the deeper you get into it the worse it works so personal income growth is slipping but then you'll get it in real terms after inflation it looks much worse that you get per capita in worst you know

forces zero level so if you're if you're getting growth in money to spend how can you get growth in things people buy it just doesn't make any sense. and it cost wise in term growth all right what the question is what about consumer credit why is that increase yeah. it's why did it increase and yes well on a year over year basis it actually did it staying very very flat and it would wasn't materially in any case and he did have some increase in the last half of last year as food and energy prices are expected really went up and people had to dip into credit cards a little bit to to live in that and winds also as we go forward now of course the underlying reason for all this is what's called unspent income very familiar with that concept and please explain. anybody doesn't spend all of his income. then the output that he produced can't get sold unless someone else spends

more than your income because that's just us of our county identity g.d.p.'s everything by plus you know which equals everything sold it's all the same thing to say you know it's a one sided coin or the other self variation who doesn't spend all of his income someone else must have spent more than his income or you want to pay them which g.d.p. so why don't people spend all their income while he got big tax advantages to go to higher as a pension funds you get corporations you know that build up what two trillion dollars in unspent income you have foreign central banks building out and spending time by selling things in the united states and not spending the income that's the trade deficit you know it's five hundred billion dollars. four hundred fifty billion so you have all these unspent income piling up which requires someone else to spend more than their income or the output doesn't get sold so who is the biggest spender who spends more that is in trouble that's the federal government when we see us sure we saw the federal government cut back on deficit spending deficit spending is spending more than income. and it's like the deficit spending

is like an allowance to the economy from uncle sam local sam's a little no boy his little girl he gives them an allowance he spends more than an income and they've been getting their allowance cut and it's down to three percent of g.d.p. it doesn't look like that's any warmer enough to offset the demand which is given the lack of anyone else being in a position to spend more than his income so how does that make any sense to pay or does there is actually very well could but on i want to revisit what you said before about wage growth why is that wage growth so flat at the moment. so when you have low demand and you have high levels of unemployment. then yes that's symptomatic right so this is a skin. the people to compete for the available jobs people have to work to eat businesses only hire if they can get it on their terms and so you get continuous competition for the available jobs and you're always funny a job offer exe out there because business will hire those people at

a lower rate than people who are already working and then those people will be allowed go or one way or other be out of the business and so it's a continuous replacement process of low income people replacing you know wage earners replacing higher wage earners in a go of course there are thousands of anecdotes that was floating around for years and it is true. now in reading some of your recent commentary and say that you point to interest income as a key a sustaining demand a key to sustaining demand now would you explain how this fits into your view of the effects of interest rates on the economy you know one of the. reasons the deficit is coming there isn't as high as it would be is because interest rates have come down and the federal government is in debt pay or interest and so people's income a lot of it is the personal income is interested in the government's the largest share of interest and of course their savings accounts of the type of thing and so in the economy and then receiver of interest in the seventeen trillion of

government debt so to speak. because interest rates come down the economy's receiving less interest and now we're interest rates are supposed to help the economy because they help borrowers they help you borrow but at the same time it takes away your income so i think of the economy going into the bank for a loan right the banker says well our interest rates are down that's good but i see your incomes down there which was more important well the the data is telling us the drop in incomes far more important than the drop in interest rates when it comes to lending and so the whole thing's in this stagnation very close to almost a downward spiral in our case we can see it's all kinds of inflation numbers and indicators you know decent every disinflation type of thing. time now for a quick break but stick around because when we return more from my interview with economist warren most lawyer and then in today's big deal edward harrison and i talk about immigration fraud more specifically the e b five b.'s

a program which allows foreigners to live in the u.s. only if they invest considerable amounts of money in quote job creating ventures you will definitely want to hear about this month and a thought come up that's a tad. he shouts our forces.

in the finish line of the marathon. might. come up for. continuing our conversation with investor warren mozilla now we're going to segue into

a discussion about the government's role within the broader economy and dive into the philosophical issues or the government's role in terms of taxes and coercion is it we want you or you know me let's find out. the fed says that low rates are helping the economy because in the debtor's they have lower interest rates you disagree and now you know i was going to say that proves that right now half it's not the kind of carry out and in question i have no matter how. they also said this walk lies to the e.c.b. we're fully secured so i added they you know it's not it's an honest opinion ok it's not dishonest for them to be saying it all depends on what they call the propensities to consume of income so no one's who gets help more the borrower or the saver if you're a borrower and it's one hundred dollars a month cheaper you were claiming to spend or if you're a saver and you get extra hundred dollars of interest into real you more inclined to spend it's hard to say right you have to look at the data so and then of course

the savers outnumber the borrowers by seventeen trillion because the government is a net payer of interest on seventeen trillion of net in obligations to the economy net debt to the economy and so that the propensities that for the borrower have to wait and see the saver just to break even because of that you know seventeen trillion in balance the economy's a big net saver of seventeen trillion and so the fed is saying that they think that the borrowers are helped more than the savers to the even though there are seventeen trip there seventeen trillion more savings in there is in debt for the economy and you know it's not that they're wrong. because it's possible to run it that can't be the case but you have to look at the data and see what's going on so to get japan was their own interest rates for twenty years and up until the latest it's called shenanigans you know the strongest currency in the world and the lowest inflation you know me and they're out at the u.s. for five years and we know europe with zero rates that are going well maybe this

propensities these interest rates are all that they're cracked up to be maybe the savers get hurt more than the borrowers just because they have seventeen trillion more in savings in the borrowers have borrowed you know maybe they get hurt more well it's just seems obvious to me are you saying that the u.s. is the next japan. i think it's already been happening in everything except the stock market but in terms of the real economy you know that's what's been going on . and i mean they've done this for twenty thirty years now almost it can go on for a while when i what point does it end but it ends when you realize that. you know deficit reduction is backwards you know supposed to be doing that and that is supposed to be making the deficit is larger than a smart leader in this post because taxes are increasing spending depending on your . ok so if you're the big government types with more public infrastructure and everything i see a lot more spending if you get the private sector type you want lower taxes and then you get

a grand bargain somewhere in between and we have you know it's the best economy we've ever seen but until they realize that the actual problem is the deficit is too small it used to be our jerk they're going to continue to go backwards and even this year we're still engaging in relatively modest but still deficit reduction they're still making it worse instead of better but is in japan increasing deficits they are this year and this is the working of course what happens april right consumption tax goes up why because they try to bring down the deficit but every time in the past they did that they set themselves back and every time they let the deficit go up they started to do better but then people get scared of the deficit they say because some kind of problem where we with a debt to our children in us or all of us and over what's just a bunch of us standing tax credits right you know u.s. dollars is the thing that gets used to pay taxes when the government spends a dollar that gets used to pay taxes artists remains in the economy as an outstanding tax credit in the remain as cash securities which are just downstairs at the set or reserves which are just jealous of that those are the seventeen

trillion deficit is just the outstanding tax credits that have been spent nobody's used to pay taxes you know it's it's like there's nothing that they can possibly cause to go wrong yet that's the biggest fear out there that's driving policy destroying our civilization to be quite frank now i want to ask you should pull employment be the overriding goal of public policy or are there other equally important considerations like inflation. ok so you have to look at the other way around so what is the point of government because the government is there for public infrastructure for public purpose such as the military if you don't defend yourself you lose the war kleagle system for contracts and contract law are you don't have any private property or private anything if you don't have some kind of institutional structure behind it ok so. we need this public infrastructure now without government there is never any unemployment if you go to. it you know any are not a monetary society there is no unemployment inflation is

a monetary phenomenon but until it is people working for paid work there are people willing to do volunteer work so if there is any money you don't have what we call it of labor in a purely american indians before we were handed there was no unemployment the way we don't people walking around waiting for pay jobs and so that's a creation of the monetary system that in a way it works is that it's a creation of taxation the government levies a tax which causes which is payable only in it's own car people to need that money to pay the tax or face the penalties and so they are suddenly unemployed they're looking for paid work to earn money to pay the tax and they also like to save a little bit so they're working hard money to pay the tax and probably to save a case of this so the government creates unemployment when it puts a tax on us and then it spends its otherwise worthless dollars to hire the people it just costs to be unemployed to provision a government in the military in

a legal system in a public health education whatever else it wants to do. so the only reason you have unemployment is because the tax on employed more people than the government wanted to provision itself with that it wanted to hire like what sense does it make if the government didn't want all those people in it should have had the tax so high to begin with or if it does want us people go higher you know it is as though. the unemployment is a consequence of bad public policy mistake in public policy. but it is deliberate policy and in essence it's not wrong to call it a crime against humanity because they are living a tax increase in employment and then only hiring part of the unemployed they created a leaving the others to die in nevada and. you know i'll give the benefit of the doubt and say it's all done in total innocence and we can move on to the next question well actually i'm glad that you brought up the american indians because i was going to ask you to please give me an example of a non-monetary society thank you they're getting value for you and your wife it's

the other one it's gonna be for the british went in and they went in people lived in their huts and did whatever they were doing for assistance living in farming or partake in that type of thing and teaching their kids school and. everybody was helping out there was no employment then the british came in or wanted to grow coffee and it's an offer you know they start offering people ways to money or whatever well nobody wanted nobody cared so what do they do they put a tax on everything they said you have to pay somebody pounds or crown or whatever is promoted or we're going to burn down your house ok now they've created unemployment people who need those coins to be able to pay the tax to not get their house burned down and so they would show up at the coffee plantations to earn a crown of the coins to the other save their houses and it did immediately monetize gun and the british would. always hire anybody who needed work paying the coins because they knew they were creating this unemployment these people who were

coming down to work if they have more people than they needed they just lower the tax ok they did it tax ten thousand coincidentally go to midnight to actually go burn down your house in what sense would that make but that's exactly what we're doing today sounds like a similar intimidation tactics used by the mafia. hit home as they're going to burn an area as if yes absolutely kill worse if you pay your tax or you lose your house your car i mean you know you just say the word i.r.s. it sends chills down everybody's arrived but it does provide us with roads and garbage pick up and then the rest of it sure sure but a screw or ship it's not voluntary they don't ask for volunteers to build the roads to take your the sewer system teach schools right it's all corrosion through the through the taxation. that was the economist and investor warren mose lawyer time now for today's big deal.

and big deal edward harrison joins me to discuss these as and i'm not talking about the plastic kind. now a new trend in alternative financing for small businesses and startup companies is the easy five these are direct investment program now it connects wealthy overseas investors who want to green card with the regional business owners who need money to grow and expand and now amount to number of business owners are skipping traditional bank loans and venture capitalists for this faster and cheaper financing alternative good thing or bad thing for the u.s. economy well it's an interesting question because basically just to give you. broaden your view you know i used to be a diplomat and all junior diplomats in the u.s. when they start out they actually start out doing visas not in the about immigrant visa section and so we learn about the logs better and so forth. in one nine

hundred sixty five the law was changed to reflect family reunification as an emphasis for the united states and that meant that seventy four percent of. america would be handed out under that particular purview so family reunification as the emphasis for the law and that's been what's been the paradigm for fifty years and what we've seen is a lot of other countries have a different paradigm increased especially canada switzerland britain they have what's called a tier one visa system and these are all of these investor visas so the united states in a sense is actually trying to compete with these other countries in terms of getting. you know wealthy or job creating people to come to the united states instead of the previous emphasis which was family reunification we were interested in and now here's some other facts congress created the easy five years of program

in the one nine hundred ninety s. when you were working on. it academic growth or capital investment by foreign investors like we said but the program it boom boom never the past seven years as traditional forms of financing have dried up now what is the growing number of even five these alpha can tell us about the state of the u.s. banking system today our lending system today you know i think it's more about the fact that we are. competing better and in a sense for these types of pieces that says anything about the actual financial system. the cap is ten thousand on this program but when it first there were less than a thousand people per year that came to united states under the system but over time it's ramped up and now we're getting six seven thousand people a year under the system and that's you know instead you know a chinese individual was lots of money and want to start a job or start start

a company he might have gone to vancouver three years ago but now he could potentially consider going or she to the united states under this. under the assumption that they want to start a company just. really really and. do you know these individuals they must invest five hundred thousand to one million dollars and create at least ten ten american jobs new american jobs that is over a period of two years however the program has recently been plagued by allegations of fraud and charges of its management by immigration officials charges that have led to increased scrutiny of the program which has caused delays in the application process now here's the question who in your opinion is more hurt by these delays the foreign investor looking to obtain a green card and start a business or the small business owner looking to have capital is going to have american taxpayers already there oh yeah i used to be in the not in the group and so we actually. that was because for some reason i think it was throughout our

system that it came and i remember. that was going to the processing center in new hampshire and it was for a visa that i knew somehow i can't remember now the circumstance that was it was fraudulent ok so i was just like this is a complete fraud this guy is not getting this job i can tell i'm going to call him and tell them what the story yeah and make sure that this guy doesn't get into the country but you know the rigamarole to deal with the whole system all of the the channel it just didn't war over until he did actually get his incredible as always thank you for your insight that's all for now but you can see all segments featured in today's show on you tube at youtube dot com slash boom bust r.t. we love hearing from you so check out our facebook page at facebook dot com slash boom bust our t. you can also tweet us at erin aid at edward and it's from all of us here for us thank you for watching c.n.n.'s don.

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pleasure to have you with us here on t.v. today i'm role research and. i've got a quote for you. it's pretty tough. stay with sob story. if this guy like you would smear that guy stead of working for the people most issues the mainstream media are working for each other bridegrooms vision. problems. they did rather well.

coming up on r t stopped and interrogated at london's heathrow airport a legal adviser to n.s.a. whistleblower edward snowden was singled out by a border agent and interview with that attorney from london straight ahead on the sochi winter olympics heat up with another day of competition russia has scored an olympic gold in the two man bobsled race while the u.s. and russia stand neck and neck for total medals the latest on the sochi games coming up. and a mixed verdict in the trial of a florida man who shot and killed an unarmed teen will break down the verdict in the case and ask if michael dunn will face a retrial for the death of jordan davis all of that and more later in the show.