over there i marinate this is boom bust and these are the stories that we're tracking for you today. first up we'll bring you part deux of my interview with max kaiser max spoke with me about the fed and echoed mary j. blige a sentiment of no money no problem and then we have technology expert alex daily on today's show he is a senior editor at p.c. research and he gave us his insight into the comcast netflix melee you won't want to miss what he had to say about that deal and finally in today's big deal edward harrison and i are talking india what's next for the world's largest economy we'll tell you it's all coming up but it all starts right now.

with. our lead story today classism particularly in the microcosm of society that is public air travel now the front of the plane has always been more posh and plush on the back of it but in recent years airlines have put a considerable amount of emphasis on catering to the most affluent of flyers and in the process they've managed to produce a new level of privacy and detachment like we haven't seen since the gilded age true story now for airlines the top twenty percent of customers make up seventy percent of revenue so there's a lot of money on the line for these big carriers like american airlines emirates singapore and british airways it's just to name a few but today the special treatment it doesn't just start when you put your first

foot on the plane it begins at. check it now here in the u.s. american airlines and united have both developed discrete and private rooms at terminals in new york chicago elsewhere there's a couple other places now these rooms they allow for not only speedy check ins but also the ability to jump security lines thanks to hidden doors which elite travelers can enter and exit through i mean talk about being removed from the masses you're going to hit indoors now they offer first class passengers a separate terminal in frankfurt there's a restaurant lounge and dedicated immigration officials and for those who choose to shower private restrooms come with their own little rubber duckies and exclusive plastic souvenir only available to the international jets i mean that's cool having a really fancy duck but at london see if you're an airport first class and business fliers they pass swiftly and privately through their own immigration and security screenings but but if god forbid they must wait more than sixty seconds have no

fear because hors d'oeuvres and champagne will be provided so. so what is this outstanding service cost you well a round trip flight on cathay pacific between new york and hong kong costs sixteen hundred dollars in coach seven thousand six hundred dollars in business and one nine hundred first class but while it's easy to calculate the costs associated with such high flying lifestyles pun intended what's harder to do is compute the side effects of such a disconnect between the haves and the have nots is a really good for society having those who run our companies read our countries and govern our way of life rarely coming face to face with those whom they claim to serve and how much service does one person really need before it turns into a disservice for society.

fed chair janet yellen testified in front of the senate banking committee on thursday now the fed said it won't even consider interest rate hikes until unemployment falls below six point five percent but we hit six point six percent unemployment in january and the fed has already begun to taper of asset purchase program quantitative easing also known as that so what is the next move for the fed this is what yellen had to say. six point five percent unemployment is not the committee's to finish in of what constitutes full employment six point five we simply meant to be the committee saying look if the unemployment rate is above that we see absolutely no need to consider any possibility of raising rates below that we begin to look more carefully and this we do so of course the

unemployment rate is not is sufficient statistic so it looks like the fed's going to continue q.e. and low rate but is that a good or bad thing well maps keyser of the dynamic host of the kaiser report here on r.t. things moped money means mo problems true story he didn't actually say that i'm paraphrasing now as we discussed the banking system here in the u.s. i started off by asking him about the financial ization of the u.s. economy here's what he had to say. well the term financial ization is the trend over the past twenty thirty years the male liberalism trend of turning everything into a financial eyes product all the industries most companies are not really in the thing that they say that they're doing for example general motors is not really in the car business so much as they are in the car lending of money to buy cars through general motors acceptance corporation in the agricultural business more

money is made trading agricultural futures than actually growing crops in the energy business whether it's an iran or others the most money is made trading energy futures and that's where the focus is on it's not on the actual business of drilling and exploiting for energy itself so this is why it's very important for the central banks to keep interest rates near zero percent because most of these companies around the world the s. and p. five hundred are in the financial ization game they're trading to rivet is based on their underlying economic activity and instead of doing the actual think there's no profit margin and growing food there's no profit margin in making cars there's no profit margin in pharmaceuticals there's only profit margin and borrowing money and zero percent speculating wildly if you make a mistake you get bailed out if it's the terms of a winning bet you keep the profits it's heads they went tails everyone else loses that's what financialization is all about as long as interest rates are at zero percent you can see that continue at some point interest rates are going to start ticking up and they're going to see that huge ponzi scheme collapse and then it's

going to be a stream leigh difficult for these corporations to survive going forward and of course the central banks that feed them with all this cheap money are going to have a lot of trouble stopping themselves from printing even more money to keep the ponzi scheme going as a last ditch effort and that will drive bitcoin to new all time highs it will drive max climb to new all time highs it will drive gold and silver to new all time highs and that's coming it's in it's baked into the cake so max we had this bretton woods system until nixon close the gold window that was a. one nine hundred seventy one and during that period there were no serious financial crises even though we had a ton of political upheaval at that time but since we've gone to feed our currency we seem to be lurching from one crisis to the next what do you think is going on here well the closing of the gold one zero nine hundred seventy one as you write fully point out is the beginning of a forty year experiment of

a world of currency with currencies are referencing each other instead of referencing something that has intrinsic value and in this case it would be gold and as a result you have the birth shortly there after the one nine hundred seventy one closing the gold window of derivatives the modern derivatives which really gave it came through chicago the chicago board of options exchange and the option pricing volatility formula is really the rosetta stone of the modern derivatives industry and it's a way to price volatility and this is the basis upon which to rivet is are built and we have now forty years later a situation where this simple derivative or an option the simple bet of an option became an option on an option and then an option on an option on an option and you have these multi layers of options referencing each other referencing currencies that are referencing each other so you end up with this enormous multi hundred

trillion dollar paper betting a scheme that encircles the globe where occasionally a bank gets into trouble to blows up and unfortunately since capitalism is not respected and that a bad bank this made bad bets is forced to go out of business you have the central banks bailing them out with more of this paper which feeding this global to reduce market even more that the legacy of the two thousand and eight crash was not bank reform it was not any rational accounting it was an increase in the global derivatives stuff you know stuff. piles are a quantity by many trillions of dollars so we're setting the stage for the next huge derivatives melt down and i think that's why people are running into things like crypto currency because they realize in that scenario crypto is going to hold its value gold and silver are going to hold its value max going obviously the newest kid on the block and the best crypto currency of all is going to hold its value but this is we see this on the on the periphery already happening and so when

the final. showdown between fear versus real money happens it's hard to say exactly when but i think it's two thousand and fourteen is looking like i think the year when feed people finally realize that they've been living in a derivative fantasy world and there's just no way to sustain this kind of faulty accounting any longer max let's turn to a banker see here now here's what's going on at j.p. morgan jamie dimon he's sacking tens of thousands of people especially in the mortgage business and he says business is a really really tough because of new regulation so he's replacing people with machines that says solution and meanwhile the company is paying twenty billion dollars in fines for past misdeeds that's already twenty billion it could go up from there but the board the board mind you they've upped diamond salaries seventy

four percent oh and they comply and said just quit after a year on the job only you're on the job to create yesterday what do you think about g.m.'s business model i got out here. well it's funny that jamie dimon would be complaining about regulation because he's never really complied with any and. almost every single regulation on the books jamie diamond has violated i mean i was a securities broker for many years i took the series seven exam i studied the securities act of thirty three and thirty four i know the securities industry quite well and i can tell you. as an insider that jamie diamond is a serial securities fraud sister in law breaker but he will go to the government with his friends maybe hank paulson at the member in two thousand and eight or are now they've got janet yellen over in the fed and they've got jack lew in the treasury they'll go down to washington and all say look i know i broke the law but if you prosecute me i'm going to crash the stock market there's no no

no extortion you know that in there he's a brilliant he's a he's a brilliant at extortion he's a brilliant his business model when you say what you think of his business model i mean his business model of extortion he's a brilliant extortion and i don't know why he's not in jail i mean i thought i thought america has a policy against this type of thing in other countries they arrest people and put them into jail for acts of you know what they call terrorism i want to ask you are you surprised that no high level officials at american banks have been prosecuted for misdeeds specifically associated with the housing bubble and financial crisis does this surprise you. well because you have a the government is reliance on their donations for their reelection campaign so there's an on healthy symbiotic relationship between a corrupt banking class and a corrupt government class who feed each other it's a popular sea and kleptocracy to further this wealth and income gap to extremes and to set the stage for what we're seeing in these other countries violent people so

when it comes to the united states i don't know i should be shocked because you've got the same policies in the us that you see in these other countries that are going through violence of peoples they're trying the same thing in the us and the results will be the same so let's not kid ourselves let's not be shocked when we come in we ask ourselves why did why was there a revolution in america don't look any further than the bankers on wall street the city of london max you are fantastic we thank you for your wonderful show your wonderful insight and good luck with max plan we'll be happy to have you back on whenever you can talk about the new developments thank you for your time oh great great to be on that was max kaiser host of the kaiser report here on r.t. . time now for a quick break but stick around because when we return alex daily technology expert and senior editor at casey research sat down with me to talk all things tech you won't want to miss it then in today's big deal edward harris and i discussed the

drama and hopes for india's economy but as we head to a quick break here's a look at some of your closing numbers of the bell stick around. wealthy british soil. from time to. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports on our. big bucks but. we're going to do the job

did you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open process is critical to our democracy trek albus. role. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our crowd several we've been hijacked try a handful of transnational corporations that will profit by destroying what our founding fathers once it's all just my job market and on this show we reveal the big picture of what's actually going on in the world if we go beyond identifying the problem to try rational debate and a real discussion critical issues facing that they have done their job ready to join the movement then welcome to the big picture.

this past week we talked about the comcast netflix deal but today we have alex daily on the show to give us a much deeper understanding into the world of technology today he's the senior editor of casey's extraordinary technology now that's a newsletter published by casey research and i started my conversation with alex by asking him to break down the comcast netflix brouhaha in layman's terms. i don't think the coin is going to go to zero but it's certainly not going to maintain the heights of tad for a long time i think over the next couple of months and years because we'll sort of unwind itself as a consumer technology and really turn into something that's more part of the plumbing of the internet's not something every day that people are going to own and manage and i think the incident with mt gox going down today is a perfect example of just how tenuous and how sort of beta technology this whole thing is still now what about bitcoin as a digital payment class form what do you think of that. payments the problem with

payments is that everybody wants to be insured merchants want to make sure that they're getting legitimate transactions from legitimate consumers credit card serves a really important filtering purpose providing people who only have legitimate accounts to purchase with them they don't have to worry about getting tied up with the stolen funds and issues like that on the consumer side they face an even bigger insurer role you know when target was hacked a couple of months ago that could have been very very devastating if they were using a technology like bitcoin we'd be looking at something similar to mt gox target would be bankrupt had they only set the big points but credit cards those transactions can actually be unwound there's a credit card company is serving not just a process payments but to ensure to both sides that transaction that it's good serves as an intermediary as a counter party to take on some of that risk with bitcoin you don't have that you have your peer to peer transactions which means when my money stolen it's gone there is no hope of returning these records to their users maybe somebody will make them whole through a lawsuit or even if the company comes back i highly doubt it. right now alex i

want to turn to a telecommunications now i think one of the biggest stories running over the past few days is the deal between comcast and netflix and there are a lot of moving parts here you have cable companies their natural monopoly power media and technology consolidation video content delivery via data play the net neutrality you name it it's a part of it now alex can you break down the comcast netflix brouhaha in layman's terms for. sure i'd call it negotiation genius on net flix as part signing this deal with the timing that they did this isn't something that netflix and comcast have been negotiating for a long time the idea that netflix is traffic is anywhere from ten to thirty percent depending on who you believe of all the bam with that travels over comcast network and yet netflix displaying the same amount to push that traffic into comcast network zero dollars and zero cents that any other random web site on the internet is and so comcast is seeking sort of

a tariff pay for all that excess capacity that netflix is using and of course they're going after netflix because they're a competitor directly to comcast for the first time in history two thousand and twelve in two thousand and thirteen so all net cable subscribers in the united states shrink that has never happened before and it's now a worrying trend for these cable companies they can only keep their revenues up by increasing the price per household they're able to charge so netflix is a threat and getting some of netflix is revenues the big deal for comcast netflix on the other hand doesn't want to be paying these tariffs so the best thing it could do is agree to pay comcast tariffs in the middle of this big buyout if you don't think this is going to raise ears at the f.c.c. . alex what about net neutrality here isn't comcast trying to discriminate between content providers basically just trying to insert a toll booth in a data stream that is precisely what is trying to do and netflix is serving as sort

poor of a. man so this is a sacrificial lamb and they have the cash they have the clout they have the political. connections to do this to sign this deal with comcast and i believe at the end they're signing this deal with hopes that the f.c.c. and congress who have all really come out in favor of net neutrality for the most part but it never really put anything into place that this will be the thing that pushes it over the edge that either they stop this particular merger or they only let this merger go through with net neutrality and i think netflix has made a really calculated political decision to force the net neutrality issue out of the back room out of discussions and into law. with comcast and the time warner cable deal that's another thing that i want to turn to now we're seeing the top two competitors in the u.s. cable market come by and do you think the proposed comcast t w c merger is anti competitive. i don't think it's going to be any worse for consumers than it already is but any consumer who's had cable knows that it's already an anti-competitive

industry the problem in the industry isn't the size or power of comcast for instance if anything this gives comcast more negotiating power with content providers which could in theory drive down prices content providers have raised their prices faster over the last five years than cable companies have so in fact more of the increases that you're paying are going to the viacom's and did news of the world than they are to comcast bottom line so i think comcast is doing this to give itself more negotiating power but it's also going to mean more regulatory scrutiny it's going to be more trouble from the f.c.c. it's going to be more trouble from the f.t.c. focusing on their advertising which has been a theme lately at the trade commission so i think for comcast this doesn't really give them any more pricing power with consumers it just lets them extend the same pricing power they have to a larger set of consumers alternately the real competitive problem in cable lies with the townships and states that regulate hauling fees these cable companies pay

for between three and five percent of their revenues to the townships for exclusive monopolies and that is what's limiting competition in a lot of towns and a lot of cities around the world if the f.c.c. were to step in and prevent towns from rating attacks on polling we'd see significantly more competition and we'd see significantly lower rates for consumers as that infrastructure was shared with more than one company that actually leads well to my next question now being who are the new natural competitors for comcast t w c. well the natural competitors are definitely those over the top video players time warner cable makes fifty percent fifty one percent of its revenues from telephone and internet services from providing the baby sick infrastructure over which people are using the internet cable is while its largest single source of revenue falling for the wayside in favor of internet as who has netflix as h.b.o. go and all these other over the top providers come to service comcast and time warner combined have the big threat of becoming what they call

a dumb pipe back this goes back to the one nine hundred eighty s. with the rise of the stupid now work i mean it's a big threat to telecommunications providers on the end when you put the smarts in the hands of the people at the end of a pipe that doesn't really care what's being carried over it it's better for consumers they can switch devices they can switch service providers they can move between things more with less friction and ultimately one the internet connection becomes substitutable for the next so suddenly comcast faces the threat of satellite internet of fiberoptics like phiona of local area wireless networks of town ridden networks like the google fiber installation in kansas city there's all kinds of different competitors that can come in and comcast really needs to keep itself differentiated by providing more over its pipe than just internet services. that was alex daly senior editor at casey research time now for today's big deal.

hello again in today's big deal edward harrison and myself we're going to discuss india's economy we're talking about today now india is one of the emerging market economies which morgan stanley dubbed last year part of the fragile five now india along with indonesia turkey brazil and south africa these five countries are heavily reliant on foreign capital making them susceptible to reversals in capital flows now this vulnerability came to a head just last june after u.s. fed chairman ben bernanke he said the fed would soon be poised to taper its large scale asset purchase program and india was hit hard and what happened exactly break this down for us i know you know geo international economy and politics give it to me well in this case the economic problems they predated tapering and

you know that inflation eleven percent record current account deficit fiscal deficit those expect to be five percent five point two percent growth slowing to its worst in a decade and slower consumer demand you can see that in cars would fell for example for six to eight months even before the taper tantrum. and as a result the central bank they were lowering interest rates before the taper to occur proud and so that was a big shock when we got the taper tension for the for for and ok now that's really interesting because you know while the currency was already sliding it accelerated and the rupee was hitting all time lows that was day after day i believe exactly so india was in big trouble to say the least a big big big trouble and bad loans. they started once they started to climb in indian banks and the fear was a sudden stop in capital flows into the country much needed flows given its huge

current account deficit now last august former i am after she took on a missed rajaraman john i got it i was so nervous i ventured out and he was appointed head of india central bank and version was one of the few economists who could reasonably claim to have predicted the global financial crisis that began in two thousand and seven morning in two thousand and five at an annual fed powwow in jackson hole we all know about that powwow he said quote financial markets are at present in extremely healthy shape yet it is at such times that excesses typically build up one source of concern as housing prices that are elevated levels around the globe while the techniques and instruments to absorb fluctuations haven't proved there is uncertainty about how they will perform in serious downturn a serious downturn oh you want to put this do for him he talked to me the currency continued for the month after that but then came in and immediately switched to

a hospice position and he started to. just his mere presence given what he said about the housing bubble and so forth and that was an instant credibility for the so if you look at the rupee chart in terms of it's going down as we have a chart yeah here we go it goes down and then there's he. and then it stabilizes after that that's exactly when we came into the fold so maybe he just should have kept. going with actually is good because it. came from being from you know going down down down again and it would stabilize and some people comparing him to paul volcker oh wow i mean that's a that's a nice compliment but i guess the real question is is it smooth sailing from here clear skies ahead what do you think i think you know you can't rest on your laurels you know growth is going to weaken. for sure here you've got housing which is slumping inflation is still high you have huge bureaucracy and red tape and the

printer is starting up and then you also have a problem with the infrastructure you know there are a lot of power outages and things of that nature that you know keep manufacturing from being able to use its full potential so you definitely can't rest on your laurels and from my perspective the biggest lesson here is that you know india is going to say look we you know we don't want current account deficits anymore we want current surpluses just like all the other asian countries that had their crises right in one nine hundred ninety s. and that's going to create another problem in terms of another country wanting to have you know trade exports and export the way to prosperity edward well said and i love the tie as always and actually you mentioned you know start ups i want to talk about micro finance in india today on time we got it we got to get to that but that's all for now i'm sorry that's all the time we have for now but from all of us here at us thank you for watching the x. time shall.

we well there are nate and abby martin two of the two of precocious on the our team network. it's going to give you a different perspective if you want never i'll give you the information you make the decision don't worry about breaking the work the revolution the mind it's a revolution ideas and consciousness frustrated with the system extremely your problems which would be described as angry i think in a strong you know when you're single. well. it's technology innovation all the developments around russia we've got the future covered.

dozens of men such a major airport in crimea looking for troops from. local leaders are forced from power by a group claiming self-defense appointing new pro russian in their place. in the ukrainian capital spreads of right wing radicals guns refused. to get their way. in detention riots. young man dies in police custody his family saying that he was tortured. in the cold the millions in europe who are struggling without a home as the houses that could accommodate them are allowed to stand empty.