you know there i marinate this is boom bust and these are the stories that we're tracking for you today. first up what's out facebook has announced its purchase purchase of the mobile messaging start up and we'll look into why and how facebook came up with its nineteen billion dollar a valuation the company who what it's the little panic then we have people call author c.e.o. and founder of hedge i risk management on today's show you will want to miss my interview with him plus them sacks joins me later on to discuss posh hotties true story they're coming to a manhattan street corner near you only that is if you're a member interesting it's all coming up and it all starts right now.

with. our lead story today the biggest internet acquisition of the past decade true story now the world's largest social media network facebook dot com has agreed to purchase the mobile messaging start up what's up for nineteen billion dollars in stock and cash now facebook shares they took a considerable dip following the announcement and as of thursday afternoon the social network paid an additional one point five billion dollars in market value for the company likely because facebook said it will pay for part of the deal with stock and current shareholders will see there will be diluted by roughly eight percent. you know what you want i think we all learned that from the facebook movie

social network but people who are not diluted by this deal that those are the fifty five current employees of what's up you know not diluted at all now if you break down the numbers the facebook deal it works out to roughly three hundred forty five million dollars per what's out employee now you could also look at it as forty two dollars per user which is likely out facebook is viewing the deal as there are forty five million forty five million what's app users now the deal values what's up higher than all of the two hundred seventy five companies listed on the s. and p. five hundred index yeah so pretty high so how did mark zuckerberg come up with this one thousand billion dollars price tag for this acquisition which is a staggering amount of money even for facebook especially when you consider the fact that what's made only twenty million dollars in revenue last year well what's up is the fastest growing company in history in terms of users and the user the

usage of the app itself that's also mind boggling three hundred fifteen million people use the app every single day wow and given its low cost of operation if the company's growth trajectory continues it could easily be pulling in more than one billion dollars a year in revenue so is this deal so absurd or is it just bold only time will tell but we'll keep you posted on what's next. as i receive management as an independent independent financial research and media company now keith mccullough is the chief executive officer of hedge i and a former portfolio manager at carlyle group now mccullough is known for attacking the traditional wall street system and for disrupting the old financial media model via twitter mostly now mccullough joined me earlier to discuss his company and the

current state of the global economy as well as the u.s. economy and i started off by asking him him how does the hedge fund world really work take a look. always waiting. for i get it i feel right into their own business it was really kind of coming out of the late ninety's that worked on that was that the time to call the office and say a word which ultimately became like i made it and i went on my own way to start my own fun back then when there weren't as many that it was and the reality was that it was used in general generate a lot of talent and generate a lot of these don't add up and now you get today that order you know they've been years later and where you are probably in oversupply already by and yet right now and out and hedge funds out there that are really forced to chase a short term a quorum so what we've seen now is really kind of like a good day but it is between i did it by one percentage bonds and the way at the top twenty percent of being probably the tightest of arms in prophecies that what

we did way back when it was there were the most recent retail sales numbers for the u.s. they showed a decrease in retail sales are you concerned about the u.s. economy slowing down finally i've been waiting to go away. food wise your boy i grew up in where really it's the same ol we haven't changed the process obviously and we're in our ideas for the wake up and saying hey what the market should go down because we're going to have a bear market always go down you know the two things that i don't like to see from a growth and inflation perspective i think i'm poor and so inflation writing and growth slowing because one perpetuates the other so the words you know if you ask me i would see to your currency or to put that money and we're stuck with that i'll over time you ok later currency and your currency goes down the aisle in place and in terms of what you are in terms of what you're buying and what you need in your life starts to go up and if that goes up you know you're starting to see a little real consumption growth pattern that we had last year and

a much more deflationary environment for things like commodities start as well so i guess i'm really concerned about that retail sales your point i just one of the many things that we're seeing in terms of the consumption side of the economy that is currently slowing as opposed to accelerate what you did really were about fifty bucks now the yield for the ten year u.s. treasury bond it's now consistently below two point eight percent that's down from three percent when everything looked to gloria's do you think the bond market is signaling worries about u.s. growth. that way hey if you really want to get it you can get it back well the right going to get hurt i kind of in terms of the financial media every day people are always saying or probably better talk about this in your years at the ten year bond yield if you just look at it in terms of its three to six month moves as track i was precisely the slope of growth again it's the way to change that nothing to do that salutes like the government would like to talk about or traditional economists would like to talk about a ten year bond yield doesn't carry place anymore it cares about the girl replacing

because the best zero percent bed early on in fighting inflation so what we're seeing here is very simple i mean last year when g.d.p. drugs are it up well point one point two percent in the third quarter you saw not surprisingly that i as level of the ten year bond yield that we've seen. and quite a wildfire and that's one bloke who said it's really sequential eight cents and it's come back like you know what we did the days of points and we did think of that then your body will most likely to go all over i say the basic goes wrong because again the buy yield is trading on both expectations for that anything else now a follow up to that i want to ask you what sectors of the economy do you think are most affected by the slowing in the economy already raise the other thing i think the better really we're going to get our nose out of the spokes i mean you're going to be acting in a good day yesterday and i think i'd say you know if you go back a it goes tax but they would tell you hey well you know if you get a weak dollar you get up exports and the economy starts to accelerate so what we

need to do is it is we have a currency i don't tell you is it that doesn't hold true over the course of the last few hundred years at least the economic history which would tell you that as a currency wheat is you start to see inflation and as you see inflation you can be wallowing playing by the way i mean you can go on a gold you can do you want i copied it here you can be a logical gap you can be wrong slow that it's like you kill a leader by i guess you could give the wiring stock market at all and with growth expectations driving their conspire within the stock market they can go up when inflation throughout iraq instead broke and that is our position ok i know i ask you is this just a statistical a fact you know kind of reporting the inflation as what i'm trying to say you know is it easier year over year comparison due to a slowing in inflation last year or is this a real breakout in terms of inflation right i mean for the place and you know you know first thing you've got to do it but if i wouldn't wait it really made any i mean the definition of inflation that the government gives you already began your

keynesian economic back book so i agree that if we change this in the best shape of the guy or the us government rather than federally kind of really a dot about it but you know greenspan really started this transition to the u.s. government changing the guy getting of inflation like now and taxes making ninety six. so when c.p.i. we're going perspective to your point you're never going to have more than four percent reported why did play area probably go below i have a percent but want so at the peak of global placing which is in two thousand and twelve i keep up with a great exhibit to go or c.r.b. index which is with my index and gold peak just before that in two thousand and eleven because we haven't played it so what we did you have years would be played some of that in clayton to only start to reflate that again that lays out what the model but you know if you just look at china as opposed to kind of trying to talk circles around things the productive the reality of the prices are rising and that's not just a moderate wage inflation rising out of five percent on

a two year basis if you look at education obviously that's going straight up and we're starting to superimpose like that saying in the u.s. economy or a presidential almost like an executive order perspective on things like minimum wage which is obviously very place and it's very dangerous now in emerging markets inflation is slowing china is slowing again why is inflation a concern with those signals. i know where you are emerging economies in emerging markets the number of emerging consumers are really are the percentage of their back it has to do with what affairs are all not clear or so yeah and i already have to take out everything that you actually buy your wife including food and energy and shelter and then you said get out inflation your markets and or to wait particularly places like china that i would get to the basket and it will be a per capita consumption type of economy that's likely to food and energy is demonstrably higher then there are much more developed markets so again if you know

what we're slowly emerging markets we think that inflation at eight huge impact in two thousand and twelve so again if you take you know quite prices back to their all time i you're going to see much more right wing and places like that as well argentina and thailand for that matter you're going to see you know all of the place because that's what people do they get upset when the government tells them the prices are going up one back they are. that was keith mccullough c.e.o. of hedge i risk management and author of diary of a hedge fund manager. time now for a very quick break but stick around because when we return an update on the transpacific partnership agreement plus several buy books but sam stock joins me to talk about the one company that's profiting off of that fact and as we head to a quick break here are a look at some your closing numbers of the bell stick around.

scott horsley. looks at the finish line of the marathon.

now the transpacific partnership is a for reaching free trade agreement under negotiation between twelve pacific rim countries now while advocates of the deal here in the states say will increase trade exports and create more higher paying jobs opponents are calling the t p p

a corporate takeover that will grant big business is new at forty over government laws when it comes to the internet and its freedom copyright and environmental regulations that's just to name a few now to talk all things t p p i'm joined by ben beachy research director at public citizens global trade watch so ben first and foremost thank you for being here as we walk in soccer way over. now i want to start off by asking you this week the u.s. trade representative's they announced a new public interest committee a committee as a means to address the criticism from public interest groups what is this public interest committee and how will it take part in this whole agreement the public interest committee has been proposed as part of a larger corporate dominated system on trade policy negotiations that's been around since since nixon since the seventy's for those who are not aware this is over six

hundred individuals who enjoy privileged access to otherwise secretive trade negotiating tax and our trade negotiators and about ninety percent ninety percent of the individuals in the system explicitly represent corporate interests you have the likes of general electric is actually the most represented entity an entire system shocking. the self-proclaimed pioneers. offshoring. the likes of chemical wal-mart cargill and while the administration likes to claim that there are public interests and environmental labor groups less than nine percent of the members of the system. are to represent in any environmental developments labor or other public interest groups and so it's a really it's a really status is the most i should mention most of those public interest groups i just mentioned environmental labor political and otherwise are really closer to just two of the twenty committees on the system while there are sixteen sixteen

committees that are exclusively industry interests devoted in their interest and so really you know what this proposal is is to create just one more committee one we've got one committee for the entire public interest. and you know there's there's committees in there there's a committee devoted just to chemicals there's a committee devoted just to the pharmaceutical corporations that would like greater monopoly patent protections in the tepee p.d. . and there's even a committee just for aerospace equipment and we get just one equipment now there are things going on and we get one one for the public interest. in the industry only committees as well get to meet much more often than the existing labor environmental committees with the administration there's a recent letter from a.f.l.-cio president. criticizing the lack of consultation with the labor committee saying that industry only committees have met more than three times as often ministration there you go so it begs the question is this a real response kind of to the public pressure that we've been seeing or is it just

window dressing we see it as window dressing it's too little too late for us why is it too little it's too little because well and a system of twenty eight committees in which twenty six of them are dominated by corporate interests and sixteen of them are exclusively devoted to industry representation. notion that the entire public interest can be relegated to. one committee is laughable. this is a much better way of doing this would be to have public interest representatives sitting on all the different committees so that alongside from a sort of corporations you'd have advocates for access to medicines and hollywood you have people advocating freedom that proposal was actually brought to the industry committees back in two thousand and ten they unanimously rejected that proposal yeah they stated that their quote was the fact that the whole purpose of this entire system is to make sure negotiators understand business interests there was a quote from them and so they rejected it instead they created the very proposal that

frohman came out with two days ago which is labor have their one committee led environment how they want to be and now in public interest have their one committee it's also too late because p.p.p. negotiations have been going on now for for four years and said it would like to conclude in the coming months so how much opportunities are going to be for public interest advocates sitting on this committee to actually change the many aspects of this deal already written down and concrete proposals that explicitly violate the public interest restricting access to medicines restricting internet freedom rolling back wall street reforms etc now you mention obama and i want to get to that in a minute but first i want to ask you you know what would a more robust role for the public look like in your opinion basically how would the public be better represented in this trade agreement sure well one one step would be as i mentioned actually having a committee system that involve the public interest at every step of the way. even better in this system or approach that that has actually been done before is to

reveal the entire draft negotiating tax bracket in negotiate tax to the whole public so we can actually see what's in this deal you know the. during the last similarly sweeping trade agreement in the bush administration just for the free trade area the americas in two thousand and one the bush administration actually published online the entire. a draft negotiating text saying that you know we have nothing to hide for such a great deal we should build on the show that was all were asked by contrast you know the situation has been keeping this community said it yet i kept a secret from members of congress for three years let alone public and this is implicating wide swaths of domestic law it's not just about trade traditionally speaking and so all we're asking for is that the obama administration pull the same standard of transparency as the bush administration ok now i want to play a clip here of president obama is pushing for t.p.t. and the fast track authority that would ease its passage on capitol hill like you said and here's what he had to say about fast tracking at the state of the union check out. new trade partnerships with europe and the asia pacific will help them

create even more jobs we need to work together on tools like bipartisan trade promotion authority to protect our workers protect our environment and open new markets to new goods stamped made in the usa. stamped made in the usa now what do you make of the president's arguments here. so that it's a very tired and counterfactual argument that we need these wide sweeping deals which have much less to do with trade then granting. privileged interests privileges to narrow corporate interests to actually expand exports the record just simply does not support the notion that these kind of so-called trade pacts actually boost exports we've actually had. greater growth with our non f.d.a. non free trade agreement partners in terms of exports over the last decade that we have with our partners thirty percent higher growth rates that supports that seem to have credible and so we've actually like under nafta we've seen manufacturing

and even services exports declined to mexico and canada so it's completely the opposite the data this is government data does not simply does not support the notion that to get exports you have sweeping non-trade like nafta or the. i mean it kind of almost helps the argument for actual free trade opposed to free trade agreement you don't have that is what i mean whatever side you stand on it's just not helping any of the many of the terms and services you're anti-thetical to free trade such as the pharmaceutical corporations that are trying to take in as revealed by a leak in november of monopoly patent protections that would restrict trade in medicines take generics off the shelves and try to increase the cost of medicines and all to be countries so it's really bizarre that they can still talk all this free trade it's just totally misleading now where does congress currently stand on fast tracking and thankfully given the record we've actually seen twenty years of nafta as damage we've seen damage from you know the court career deal has actually seen exports fall just not even not growth as fast but completely fall so we've

seen damaging record of these deals and that has meant both the public and congress has come out against the idea that we should fast track these deals to congress for those not familiar with fast track is despite what the constitution says which is that congress can have it school. so i thought of a trade policy that the president executive branch can unilaterally go sheet and sign that these paths locking in their contents before sending it to congress for an expedited no one moment limited to be vote and these are again sweeping deals that implicate many domestic policies that most citizens and members of congress care about thankfully because of the record most against it. house minority leader nancy pelosi stating her opposition you know senate majority leader harry reid saying his opposition that's a good most democrats have come out against even a sizable block of republicans have come out against a violation of conservation and polls have just shown that sixty two percent of the united states public opposes fastrack and it's not popular but i'm sorry to ask you

thank you so much you are a wealth of information i got to have you back soon that was ben beach peachey research director at public citizens global trade watch time now for today's big deal. in today's big deal i'm joined by the one the only mr. now we're going to talk about today we're talking about convenient pricey cleanliness for your bottom your bottom now what we're start off with we're bringing you this idea of comfort of an exclusive penthouse lou right to the streets of manhattan well we aren't but one company is now when you're out in public parks. concerts a toilet it looks like this check it out yeah that looks pretty much like a concert. sometimes when you're out roughing it looks like this all that's pretty . good let's hope not totally like that but for the vast majority of us the toilet

it looks like that there you go that's what i think of when i think of the toilet yet in manhattan finding a public bathroom is a challenge never fear though caution still and go offers luxury comfort and convenience but at a price it all. starts at twenty four dollars for a three day pass plus a fifteen dollar annual membership fee sam can you give us an explanation for why these toilets exist in the first place so who does the company intend to attract. and i guess i guess it's right if you drive the market wills it then it must be just. about i don't mean i just did it just now but look at this to me is just another example of the wealthy in america divorcing themselves from the rest of us right they live in these walled off gated communities far from the rest of us they take private transportation they have drivers that they can have to ride on the public highways like the rest was theirs even private fast lanes that people can

take over over in virginia their private jets they go to charter schools they go to public schools and now they can. drive they don't have to use public restrooms like the rest of us they can have their own bougie toilets it now begs the question do you think that. public potties are a human right you know is it a worry or can they be with what was a quote i'm going to use this all the time now as if the market wasn't going to use it so i don't agree with you that we really need that putting you know is it a human right. it could be made it could be i guess there's this organization out of portland called your flush that is saying that this is a human right. you know maybe maybe we could invest more money in making sure that the public toilets we have which we do have them. to a higher standard but instead we're going to. give it as a luxury simply to rich people not the rest of us now you know the public but what happens if i don't want to be a member can i just use the toilet for

a day like let's say i want to go the full monty there how about a gym say i'll have with pashto and go yeah i guess since it was a fifteen dollars for their days i think it's eight dollars for a day which could be a problem because you can have these people with their annual memberships these two well to do bankers around. i mean the new going to have these guys you're just paid the daily membership who knows what they're going to actually be doing this isn't just a toilet this is like a a while tell me about the amenities what is it like there's a bunch of toilets there's a luxury showers there's like a locker there's like a lounge like these things could be perfect pop up housing for homeless people or people who are traveling or need but the market instead will dictate that they're going to be crap houses for there are. literally literally what's kind of amazing there is that you bring up the idea of this you know we have air b.n. b. we have all these different destructive models to hotels why not even not a hotel but just make it sort of an accommodation it sounds like it could be a proper room yeah actually for eight dollars a day yeah and then you know there's

a bit of a better now but i don't see that being a viable business model i probably would have yeah. maybe you still keep the same many users it's just hard to get there i don't know if that's what i'll say now the final question i want to ask you when are we going to see the debut of this service isn't any time soon apparently june twenty fourth so in a few months everybody can mark their calendars and rush out for a membership. i don't think i'll be doing the members. maybe i'll do one day just to this is right and i think i'll try to dollars just for journalistic research well there you have it sam sachs as always thank you so much for being on the show 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 also love hearing from you so please check out our facebook page at facebook dot com slash boom bust r t you can also tweet us at aaron aid at edward n.h.l. be back monday and you can also tweet it sam sam sacks from all of us here at boom bust thank you for watching c m r five.

look it was a problem very hard to make a plan to get along here with a plane flight pattern that has that plane that hurt their planes. up close. well i'm

looking at the flamingo. of a. plane chaos on the streets of kiev after a short truce rioters are again wrecking traffic the so-called opposition appears to have no interest in a legally elected government force is being met with force where ukraine goes from here is anyone's guess. the full.

coming up on r t it was another day of fierce competition at the sochi olympic games today female athletes from around the world competed in hockey ice skating and much much more the latest on the wins and losses just ahead. and ukraine remains in a state of chaos fatalities continue to pile up as protesters and authorities clash born the unrest in ukraine from an archon reporter on the ground in the chaos and a new database is being created to people more than fingerprints doctors at johns hopkins university are creating a digital library of brain m.r.i. scans so what can we behind this we'll tell you why our later in the show.