last one said they were applying reason 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 is 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 called 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 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's super computer 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 and economic analysts war mostly he used his understanding of how different sectors of the economy interact to 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. but if you see anything that's going up you know. that leaves my next question what

about retail sales we've seen a lot of inventory build in the 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 has been slipping every month in this month coming out that well thursday it's 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 started november down over to over and over again in november number didn't look so bad all of a sudden the sales slow for 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 has to tell you something. pending sales that look like they've collapsed you know and 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 i or your view. 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 deal it was one point seven

so if it keeps getting revised down at this rate. we're not going to have much left behind march thirty first so it's not good not good not good at. now you can even slip that negative and your other hand other than what we got over what was driving it down. all after of sales right because g.d.p. is basically sales and we had inventory building which we're not doing any work now we turn to inventory with condition 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 and slipping and it's somewhere near zero to ten being there how you look at it you can look at it in a more 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 well 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 can you 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 in credit cards a little bit to to live in i don't wides 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 it plays explain. if anything 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 a supply a county identity g.d.p.'s everything by plus you know which equals everything sold it's all the same thing to say that 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 well he got a big tax advantages to go. dyer is a pension funds you get corporations you know that build up for two trillion dollars in unspent income you have foreign central banks building out and spending time by selling things in the united states not spending the income that's the trade deficit you know it's five hundred billion dollars roughly four hundred fifty billion and so you have all those unspent income piling up which requires someone else to spend more than their income or the output doesn't get sold and so who is the biggest spender who spends more than 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 is a little you know boy a little girl he gets an allowance he spends more than his extra and they've been going there wow it's 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 is in trouble 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 or why is that wage growth so flat at the moment. so when you have low demand and you have high levels of unemployment. then. 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 exult there because business will hire those people at a lower rate than people who are already working in and 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 i see 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 becoming or isn't as high as it would be is because interest rates have come down and then several government is in debt pay or interest. and so people's income a lot of that the personal income is interested in the government's the largest share of interest and of course their savings accounts have no type of thing and so with the economy and then we see her interest in the seventy trillion of government debt so to speak. as interest rates come down the economy's receiving less interest

in the war interest rates are supposed to help the economy because they help borrowers to help you borrow but at the same time it takes away your income so i think 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 debt 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 almost a downward spiral in our case we can see all kinds of inflation numbers and indicators to do so every disinflation type thing. time now for a quick break but stick around because when we return more from my interview with economist warren most lower 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 coming up that's

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a. branding illness on the arts. we speak your language any body will not advance. news programs and documentaries and spanish what matters to you breaking news a little turn it into angles couldn't stories. for you here. to enjoy all te spanish find out more visit i to allahabad all tito is calm. they all told me my language and all but i will only react to situations i have read the reports and let you know what is true and no i will leave them to stay clean and comment on your latter point i come on to say it's six am a car is on the docket no god. ok go no more weasel words

when you know they need a direct question be prepared for a change when you throw a punch be ready for a battle freedom of speech and a little down to freedom to question. well. technology innovation all the developments around russia we are going to the future are covered. continuing our conversation with investor warren motives were 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. now 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 i have question i have no matter how. they also said this walk lines to the e.c.b. were fully secured so had they so 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 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 to ourselves to get chapin was euro 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 you know europe with zero rates and i'm 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 are 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 yeah 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 now. you're supposed to be making the deficit is larger got smaller here in this post because of taxes or increasing spending depending on your politics ok so if you're the big government types it's worth public infrastructure and everything else you want more spending if you use the private sector type you don't 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 juror 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 there this year and it seems to be 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 it is 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 and the remain a scarce securities which are just downstairs at the set or reserve which is still us at the same as are the seventeen trillion deficit is just the outstanding tax credits that have been spent nobody's used to pay taxes yet so it's like there's nothing that they can possibly cause to go wrong yet that's the biggest fear out there it's driving policy it's destroying our civilization to be quite frank now i

want to ask you should full 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 and if you are the 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 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 its own currency and that causes 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 ok so that 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 caused to be unemployed to provision a government in the military in a legal system in a public health education or 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 were that it wanted to hire like what sense does it make if the government didn't want all those people and it should have had the tax so

high to begin with or does want us people go higher you know it seems as though. the unemployment as a consequence of bad public power. see 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 a violent 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 said thank you they're getting value for you and your wife is the other one is 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 to 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 hood tax on everything they said you have to pay somebody pounds or crown or whatever is per month or we're going to burn down your house ok now they've created unemployment people 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 be able to save their houses and that 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 tomorrow night to actually go burn down your house and 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 her to have burned an

area hasn't it and yet it's absolutely collapse 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 our hero drive it but it does provide us with roads and garbage pick up and then the rest of it sure cerberus crew 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 mozart time now for today's big deal. and a 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 a broad here to rome you. used to be a diplomat and all junior diplomats in the u.s. when they start out they actually start out doing visas not it out of a great piece of section and so we learn about the logs that are and so forth and in one nine hundred sixty five 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 is family reunification we were interested in and now here's some other facts congress created the even five years of program in the one nine hundred ninety s. when you were working on a related economic growth through 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 visa

applicants tell us about the state of the u.s. banking system today our lending system today you know i think it's more. that we are you know competing better and in a sense for these types of pieces that says anything about the. the cap is ten thousand on this program but when it first started out 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 a chinese individual who has lots of money and who wants 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 program and it's we're under the assumption that they want to start a company. teen

out of 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 at least small business owner looking to have capital going to have or american taxpayer already there oh yeah i used to be in the nonimmigrant and we actually see these visas that way because for some reason i think it was through our system that it came and i remember i found one. that was going to the processing center in new hampshire and it was for a visa that i. can't remember now the circumstance that was it was fraudulent ok so

i was just like this is 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 view so that's incredible as always thank you for your insight that's all for now but you can see also humans 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 two you can also tweet us at aaron aid at edward and it's from all of us here from us thank you for watching c.n.n.'s sohn but by.

the. looks. of the young girls camel for the future hotter. between two and three hundred million guns united states so you can act like they're not here and keep kids away from them. the plaza sound is they are you know i mean this teaches them a lot of road sponsibility and simply come to pay through the eyes of children if we can't do it for our children for our future what is the time to do the same.

the g. twenty fourteen promises we alternate in the exhilarating winter in our team a team you still need and you say no way to make seven zero in the rest of our located news team for sochi twenty four take. on. good leverage surely. need to build on each most sophisticated which on fortunately doesn't give a darn about anything mission to teach music reason why you should care about human

to human race this is why you should care only. ukraine's opposition claims three of its have been killed while thirty seven policemen have been injured in clashes that erupted a day after a government amnesty came into force. on this unclear just who is fighting whom as armed man in uniform clash with h.r. on the streets of kiev. and other news the kansas house of representatives ushers in legislation that would legalize discrimination against on the grounds of people's religious believes and. it will survive it all if only my son came home with. the probably members and annoyance of a russian jailed and they do.