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 shan't the end 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 a program you all want to miss a moment and it all starts right now. the.

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 credible 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 in. that 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 supercomputer watson will soon be able to reason and debate 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 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 it's a gross and 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 that well thursday is 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 told over it in november numbers didn't look so bad all of a sudden the sales slow to 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 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 higher you're of the you. know what are your thoughts on how the g.d.p. for this first quarter. keeps going revised down it started somewhere around three percent in the latest number a just sort of a deal 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 no i didn't slip to negative and your opinion other than what

we've gone over what's driving it down. or act of sales right because g.d.p. it's basically sales and we had inventory building which we're not doing any work now we turn to in the. there were 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 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 a 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 can you did have some increase in the last half of last year as food and energy prices are expected lee went up and people had to dip into credit cards a little bit took them to live in metal 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. any 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 the supply of county identity g.d.p.'s everything by plus you know which equals everything sol it's all the same thing to say if you got it from one side of the corner 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 that which g.d.p. so why don't people spend all their income while he got big tax advantages to go to

higher as pension funds in their corporations you know that build up what two trillion dollars in unspent income your foreign central banks building out and spend income by selling things in the united states and not spend any 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 and so who is the biggest spender who spends more that is in trouble that's the federal government what do 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 as little know boys and girls he gives them an allowance he spends more than his ex them 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 minimal 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 that's that's symptomatic right so this is a skinned. 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 and then those people will be let go or one way or another 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 and it's only 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 essay 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 a reason as high as it would be is because interest rates have come down and the federal government is a net payer of interest and so people's income a lot of it if the personal income is interested in the government's the largest share of interest in the course or savings accounts of the type of thing and so would be the economy and then we see her interest in the seventeen trillion of government debt so to speak. as interest rates come down the economy's receiving less interest and now or interest rates are supposed to help the economy because they help borrowers they help you borrow but at the same time they take 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 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 what i call the almost a downward spiral now because we can see all kinds of inflation numbers and indicators that he will do so very disinflation type of thing. time now for a quick break but stick around because when we return more from my interview with economist moore and those 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 a tad.

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continuing our conversation with investor warren mose 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. 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 its own kind of carry out end of question have no matter how. they also said this walk lines to the e.c.b. were fully secured cited 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 in other words 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. because of the net debt to the economy and so that the propensities that for the borrower have to wait to 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 it's you have to look at the data and see what's going on so if you could chapin was there or interest rates for twenty years and up until the latest comes you know against you know the strongest currency in the world and the lowest inflation you know me and they're out of the u.s. for five years and you know europe with zero rates that 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 have borrowed you know maybe they get hurt more well it's 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 that's what's been going on. and i mean they've done this for twenty thirty years now must go on for a while when i what point does it end. well it is 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 larger not smarter in this post because taxes are increasing spending depending on your politics ok so if you're the big government types it's more public infrastructure and everything else you want 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

there this year and this is the working of course what happens april right consumption tax goes up why because they're trying to bring down the deficit but every time the passage did that they set themselves back then every time they let the deficit go up they started to do better but then people get scared of the deficit they say there's 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 federal reserve that you just don't see that 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 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 as 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 situational 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 until it is people with him for paid work and people looking to do volunteer work so if there is any money you don't have what we call it of labor and if you're an american indians before we were handed there was no unemployment the way we don't people walking around waiting for pay jobs ok 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 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 her 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 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 and it should have had the tax so high to

begin with or if it does want us people go higher you know it seems 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 being a tax increase in unemployment and then only hiring part of the unemployed they created a leaving the others to die in nevada and it's. 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 going to thank you for d.n.a. otherwise 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 and hunting and that type of thing and teaching their kids school and. everybody was helping out there was no employment 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 seventy 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 tactic used by the mafia. hit home as we're going to burn

an area that hasn't 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 arrived it but it had to provide us with the roads and garbage pick up and then the rest of it sure sure but it's not a voluntary they don't ask for volunteers to build the roads to take here the sewer system teach schools right it's all conversion through the sort of taxation. that was the economist and investor warren mose lawyer 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 a 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 broader your own 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 pieces not in the about immigrant visa section and so we learn about the logs that are and so forth. in one thousand nine hundred sixty. 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 these investor visas so the united states in this 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're 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. economic growth or capital investment by foreign investors like we said but the program it boom boom done for the past seven years as traditional forms of financing have dried up now what is the growing number of even five years the outlook and tell us about the state of the u.s.

banking system today our lending system today you know i think it's more. we are you know competing better and 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 revved up and now we're getting six seven thousand people a year under the system and that's you know instead of. individual was 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 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 just. really really and. now it's up to 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. start a business or of the small business owner looking to have capital going to have or the american taxpayer already there oh yeah look at i used to be in the not in the group and so we actually see these pieces that were because. for some reason i think it was throughout our system that it came in i remember i found one. 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 it was it was

fraudulent so i was just like this is complete fraud this guy is not getting this job i can tell i'm going to call in new hampshire 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 back channel it just didn't war over until he did actually get his that's 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 you tube dot com slash boom bust r.t. we love hearing from you such out our facebook page at facebook dot com slash boom bust r t 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 done by.

yes i feel it when i close my eyes i see people who. you know sometimes i think that you know my journey itself is a face covered by most. people in most on both sides of the barricades. and you know sometimes it feels as if all of ukraine is no.

i. know i know people have been killed in kiev among them two police officers in the deadliest wave of violence to hit the ukrainian capital since the recent unrest. and it's unclear just who is fighting whom as armed men in uniform clash with each other on the streets and. news this hour the council's house of representatives approved legislation that would legalize the discrimination of gays on the grounds of people's religious beliefs. and e.u. officials are calling for the creation of a united states of europe that's despite steadily increasing unemployment and a rise of the ultra right.