store or. hello there i'm marinated this is boom bust and these are the stories that we're tracking for you today. first up we look into the matter and magnitude of a deal reached between netflix and comcast over the weekend netflix has decided to pony up to the cable provider but who really ends up paying in the long run we'll let you know then we had best sign off their international investor entrepreneur and chairman of p.c. research doug casey on today's show i sat down with mr casey to talk economic volatility and the global marketplace you won't want to miss our interview and finally a sun kissed edward harrison is back and he joins me to discuss avenel next in today's big deal and the risk it might have of stalling out it's all coming up so let's get to.

our lead story today net neutrality or lack thereof so what is net neutrality well with a pedia defines it as the principle that internet service providers and governments should treat all data on the internet equally not discriminating or charging differently by user content so it platform application type of attached equipment and modes of communication now in a landmark deal this past weekend comcast and netflix announced that they've reached an agreement in which netflix will pay comcast to ensure that they stream smoothly to comcast customers netflix will now get direct access to comcast broadband network now following the announcement of the deal netflix shares had

a record high of four forty six and the deal is. removes internet middlemen like cogent communications and level three now historically netflix transmitted it streaming content to broadband providers through a number of internet middlemen but since the mid two thousand and twelve just last year two thousand and twelve the company has been trying to reduce costs by getting broadband companies to hook up directly to video distribution networks without paying fees for carrying the traffic now under the new deal comcast will connect to netflix servers at data centers operated by other companies however netflix won't be able to place its servers inside comcast own data centers as netflix had originally wanted now essentially netflix has ponied up to cut out the middleman and of a way to choke points where data was getting stuff before sensibly building a direct pipeline to comcast just for netflix so instead of public pipes for an

internet at large netflix got a quick solution but at the expense of setting a terrible terrible precedent that precedent being how content providers handle massive amounts of data and who is responsible for paying for it basically the definition of anti net neutrality is illegal well today apparently so. now with the merging markets suffering such severe volatility that many see it as a developing crisis who better to break down the global economy and geopolitical events than doug casey now doug casey is an economist bestselling author and international investor who looks at the world of finance and investing from a global perspective and as founder and chairman of casey research he looks at natural resources mining energy and commodities but also technology and geopolitics

now i spoke with casey earlier today and i started off by asking him where he thought economic volatility in the global economy was coming from and this is what he had to say. i would put my finger first and foremost on the. actions of central banks around the world. their reaction to any weakness in the economy is to print up more currency units and this is happening all over the world in the united states and europe and china and japan and amid all these minor countries as well so what i expect to see even though we have some volatility now it's nothing compared to what we're going to see by the end of the here and certainly with the new year true you're going to see much higher levels of them all around the world and i'm to actual for national chaos with my opinion wow now there's been a bit of chatter about moving to safe haven assets is now the time to buy gold in your opinion. well let's put it this way there have been two times in

recent history when gold was not just us per asset to hold but a superb speculation that was a nine hundred seventy one when it was thirty five dollars an ounce of subsequently went to eight hundred fifty and in two thousand and one when it was about two hundred fifty dollars an ounce and it subsequently went to one thousand nine hundred and i point out that the two thousand and one at two hundred fifty it was cheaper in real terms than it was in one nine hundred seventy one to thirty five dollars ok now that said it's a little over thirteen hundred now right so it's not a big giveaway bargain but it was ten years ago twelve years ago but the main reason you buy gold is because it's the only financial asset that's not simultaneously somebody else's liability so that's the reason you buy gold today it's a good speculation. but yes you should own gold everybody should own gold

a significant amount of gold now what about other precious metals like silver or platinum or palladium. they're all very different to start with these are all industrial metals primarily gold is first and foremost a monetary metal that has its value not because it has other uses like dentistry and high technology and jewelry and so forth but it's useful mainly as money that's the way it's viewed in most parts of the world not the united states or us. so here is kind of a poor man's gold but it's primarily and just real metal so it's a different proposition of course platinum and palladium are entirely industrial metals i really don't have too much interest in them i do like silver as a speculation it may be even better than the gold because the power supply demand characteristics supply and demand are because most of the gold that's ever been mined in history about six billion ounces probably is still above ground so i

knew my in the production of gold is trivial now by comparison that's not true a silver so what makes us an explanation and wonder but i know that's a fantastic explanation but what's interesting is that mining companies they have not fared as well as precious metals have in the sense that they've been climbing over the last decade how does one get exposure or the best exposure rather to this sector. well you know it's a very good time to get into gold stocks but you have to acknowledge that they're not at all the same thing as gold gold stocks are speculation. and there's a lot of. things that control their their earnings besides the price of gold now over the last decade the prices of things like tires and these little fuel and so forth are going to have gone up explosively. plus gold mining itself is is not a good business it's it's

a crappy doesn't this. you've got political problems you've got not my backyard problem and i got. so if you when you buy a gold mining stock you're speculating on many things besides the price of gold that's under the right circumstances it's a very leveraged bet on gold and gold mining stocks are the most volatile class of stocks in the world especially the junior exploration stocks and as we speak now i think there are fantastic speculation all these things being true that i've said they have the potential to move up to ten or twenty or even fifty to one as a group over the next three or four years ok now care reform and sees me continue continue please note i've done that they were they put in that kind of a performance many times in the past the move up ten to one on the collapse ninety five percent and i will move up twenty to one and a collapse ninety eight percent. very sick very cyclical very volatile business but

now is the time to buy mining stocks for just that reason you have to buy when they're cheap but nobody wants the military believes this is the time to do it some people would use that very same argument for bitcoin right now actually now i want to move on you're in europe why right now and that's a safe country but just across the water there is argentina where the government has recently expropriated national natural resource assets now should we be worried about resource nationalism as investors. absolutely have not just in argentina and bolivia and venezuela places like that. but this is true all over the world because most of the governments in the world today are bankrupt and are run by populist leaning people. who have anybody's assets that look like a means of production. is at risk i'm not just there. and you know this was true in the united states the people's republic of california it's almost impossible to

build a mind today for a temp different political reasons so it's not the human ear to latin america or what you're talking about now argentina that was one of the richest countries in the world one hundred years ago when world war one broke out what happened. the same thing that's happening as we speak in the united states right now people see all this well that's been created and. they want it just because it's with go to the same political bailiwick so the u.s. is rapidly going in the same direction as argentina but that said i've got to say that although the government of argentina is criminally insane something which is actually true of most of the governments in the world today. the culture in argentina is fantastic so wonderful place to be delightful low cost of living and once you're outside of buenos aires it's very safe

a model we sides so people shouldn't believe everything that they hear in the mass media which is basically stuff parroted by people that haven't even been to these places but i've been to one hundred seventy five countries like i was in the congo between the wars and i don't recommend the congo as a place to live but it was actually very pleasant so all these things are cyclical . so i'm now for a very quick break but stick around because more when we return from my interview with doug casey and then in today's big deal edward harrison and i discuss the progress of nomics in japan and as we head to a quick break here's a look at some of the closing numbers today the bell sticker out.

he shouts our forces had. barely. touched him and the finish line out of iraq on. her coming back. we welcome aaron eight and abby martin two of a terrific hosts on the our team at work. it's going to give you a different perspective give me one stock tip never i'll give you the information you make the decision don't worry about how breaking the set works on the mind it's a revolution of ideas and consciousness. with the system by describing your

problems which would be described as angry i think in a strong. or single. we're back with doug k.c. now in the second part of our interview i asked doug about china the chinese seems serious about addressing bad debt problems and slowing down excessive credit growth but how does one invest to deal with these chinese slowdown that we're seeing

here's what dad had to say china has had a fantastic boom over the last thirty years since then chopping. opened up the economy and the growth has been real and it's been a world historical importance i mean huge frown on china and in this next century is going to be the chinese century. that said these things are very cyclical and there's been an immense amount of currency creation screen or a lot of distortions in china right in the way people produce and consume so there aren't any real bargains in china today i don't know how are you. actively as an american investor or a western investor can play china at this point real estate is not cheap. i'm not interested in chinese industrial firms perhaps. that when something goes wrong in the future and you can buy chinese stocks yielding temper subs and current

dividends which is entirely possible that would be the time to step in but i don't see any urgency to put money in china now ok interesting now china it's reputed to have a water problem and it's looking at desalination to deal with it do you think the world will have a water problem like some forecasters are predicting. well we certainly have a water problem in the us in a lot of places the big problem is the us it's that in so many places in the world absolutely in the united states the awkward service which are geological assets almost like liquid mines have been depleted and depleted and depleted and it takes hundreds even thousands of years for these aqua hers to war replenish themselves so the answer to the question is yeah we're going to have a water problem nothing the technology can't solve however by withdrawing water

from the air i mean you can pull water out of the air or in the namibian desert the driest place on the planet so technology can solve all these problems you can take water out of the oceans it's just a question of power. maybe you can use solar certainly you can use nuclear but. sure there's a lot of problems in the world you're trying to buy and once my cousin just full of problems life is problems and i'm not certain of them it's sad and true now let's let the peak oil hasn't been debunked by the increase in oil production in the us. no. i've been an amateur geologist for most of my life and. yes actually something to the people while we are e. this is actually something that we should talk about for a half an hour sometimes two. to avoid. you know. anecdotes and soundbites which stir up things the wrong direction but. let's let's put it

this way. all of the a large reservoir of slow light sweet crude those are important words a large reservoirs of light sweet crude have basically been discovered. and that's been true for twenty thirty forty years even so now we're going to secondary and tertiary deposits and yes there's a lot of oil out there trillions of barrels that can be retrieved from. from shale and from paris that happens and such but it's expensive oil it's expensive oil and we're not talking about stuff that you put a hole in the ground and you pump it up for a dollar a barrel we're talking about stuff but it's immensely capital intensive. and very expensive we're talking the costs. of the oil from bach and places like

that so we're talking forty fifty dollars sixty dollars a barrel of actual costs and not only that but once it starts producing it tends to have a very very steep decline curve where production will drop off thirty percent forty percent the first year thirty or forty percent of that the next year goes like this was big wells in saudi arabia and such we jumped right in as for decades or so but yes it's something to people and it's going to get more expensive as the answer now we're a ways into this interview and we haven't touched that much on the u.s. yet but does that say anything to you about where the united states is headed in the coming years in your opinion. well it has we mentioned argentina before and it's very clear to me that the u.s. is proud and the same path as argentina or for that matter the same path as the roman empire did our own there's no ride as

a plateau. characterized by high consumption and happy days and then the second law of thermodynamics takes over which is to say all systems wind down and the more complex and energy intensive they are the more precarious they are so i think we have a lot of problems in the us today well one of them is the financialization of the economy or something like twenty two percent of the u.s. economy is based on shuffling paper trading stocks right floating bottoms and this type of thing i'd say in a healthy economy it should be ten percent of the bottom out another problem we have is the militarization of the american economy work one of the only parts of the. governmental complex it seems to work is the military but the military doesn't produce anything right and we're spending more on military. the rest of the world

put together not only that but once you start doing that what you have a big goldeneye hammer but everything starts looking like a nail and that's another big problem with the military so while the stock market's not cheap or in the middle of a gigantic bond bubble in the us and on that burst it's going to be a catastrophe much worse now in the tech bubble broke in two thousand and one or the real estate bubble broke in two thousand and seven because the bond market is much bigger so you know hold on to your hat when you predict that bubble will burst . well. look just because something is. and having a ball doesn't mean that it's imminent but and i'm very surprised that interest rates of stay there as low as they have for as long as they have but especially as in play sions by rockets in the wee years to come right now we have in place in

assets that's where all this money that's been printed by the central banks it's going it's going into assets but the next step is it's going to go into consumer goods and when consumer inflation starts going up interest rates will inevitably fall and people forget about it was only in the early one nine hundred eighty s. that treasury securities were yielding twelve and fifteen and even eighteen percent were going to go above that and that's next like oh i think. and that was doug casey founder and chairman of casey research time now for today's big deal. though in today's big deal i'm joined by the one the only the return of the great edward harrison now we're going to talk about japan has japan's prime minister

shinzo arrow missed the mark that's the question on jack i'm joined again by edward harrison to discuss none other than of a nomics in its attempts to overcome the country's economic woes now since the one nine hundred ninety s. japan has struggled with weak economic growth and an epic battle with deflation and your prime minister shinzo all day now upon taking office in two thousand and twelve implemented what is commonly referred to as ave nomics now it's a mix of fiscal stimulus monetary easing and structural reform meant to pull japan out of decades of fatigue first and foremost welcome back are happy i'm happy to have you back but tell me what problem is ave nomics addressing exactly and how is the trying to fix the current issues in japan well the thinking basically is is as you were saying japan's been struggling the economy has been we had deflation and that's. caused them to be permanently in this sort of depression since the one nine

hundred ninety eight and the thinking is that it's just it's not enough to have huge government budget deficit is the. stimulus but you have to have more you have to have structural for and you have to have a certain degree we. increases in order to pull the whole package together in a way that's not just the economy over the short term but that actually has a longer term effect that can last not just through you know a year or two but over a long. so that my next question then is what effects have we seen in japan from other nomics up until now what we've seen now in particular is a huge depreciation in the currency along with a tremendous run in the stock market so those are two things immediately that we saw but we also saw in q one in q two of last year pretty big growth so they had

great growth with some of the best that they've seen since the financial crisis but that since dissipated q three growth was low i think. if the numbers haven't already come out there it's also going to be low and so the question is is it going to work and what's more is that they're going to bring some tax receipts on law at the same time that you see this growth deceleration trying to talk about that in a second but like you said our numbers we're looking for and this coming thursday japan's ministry of public management will release its consumer price index figures and now the c.p.i. it collects prices and helps measure inflation now if you look at inflation numbers in japan they've been rising at check out this graph it shows the inflation rate for the last year and is this a sign that things are working only good is a sign that things are working and you know going back to a drug case he was saying i think the opposite of what he's saying he's talking about high inflation the united states on looking at japan and saying the u.s. could become the next japan because basically what happens in japan is that you

know you get higher inflation but then you don't have higher wages so higher inflation higher wages what's going to happen people are going to therefore cut back on the spending and the economy is going to lapse into another recession and in the case of the united states for example that recession because of a high private sector that is going to mean do love with you because people are going to be indebted they're going to be debt stress default successor and so forth and create sort of a knock on effect that makes things even worse. americans already gone through that period for the last two decades and so you know it's going to get worse so like when you have ten percent more inflation you're going to use ten percent more of your money whether or not if you don't have the you know it's going to come from something which is sort of the whole concept you're going to have inflation and then somehow that's going to lead to a better economy just doesn't work you know people at the end of the day a sustainable economy comes from wage and income growth that's the end of the story

so i guess the question is what are the lessons of the rest of the world can draw from all of a nomics. you need. they've got to go together you know the whole concept of just. sort of goose you up inflation of the economy over the short term then trying to combine it with goosed up inflation isn't going to war surely you're going to get the deficit hawks to come in they're going to say we need to stop this deficit and when that happens you're not going have anything sustainable to fall back on and the economy is going to lapse back into recession how do they not realize this or at least the people in his finance ministry not did not grasp this concept what i think he does he's put out veiled threats to companies that if they do. we raise wages that the unions and the government are going to get on them in some way and you know it's going to be forced upon them in some capacity so i think that's what we're going to be seen next that sort of being being fought. we're not there yet

but happy not to be in japan that's for sure but that's all for now but you can see all segments featured in today's show on you tube you tube dot com slash boom bust r.t. we also love i 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 and h from all of us here believe us thank you for watching must see you next time.

winter is when the sahara comes to life and always is palm trees are being harvested. people are waiting for the biggest event of the yeah. the desert festival. this is through a bit out of this. leading camel races i've spent the last year preparing for the grueling marathon. the day before the race there's a heavy sigh i'm still overcoming the power of nature is a never ending challenge. so far it doesn't went up a lot see. wealthy british style stock.

market why not come to. find out what's really happening to the global economy with mike's cause or there are no holds barred look at the global financial headlines tune in to kaiser report on r t. well if you're a little bit like these new policies i can tell you. they should have you with us here on our t.v. today i will research are.

coming up on r t that's a wrap of the sochi winter olympics have come to an end an impressive closing ceremony capped off the two week of that will give you a look at the final medal count and bring you some of the sights and sounds from the twenty second winter olympic day in new mexico there is worry over of radiation leak at a nuclear waste disposal facility this while reports have come in of our new leak at the fukushima daiichi power plant in japan more on these nuclear concerns coming up after days of clashes between protesters and authorities and major changes in ukraine the country's president has been ousted from office and now the parliament is trying to create an interim government the latest on ukraine up later in the show.