transfield ignored. stories others refused to notice. faces changed the world writes never. the full picture of today's events. on the sun from around the globe. up to. fifty. on that with harrison and eight is off today our lead story today the world cup as world cup begins the brazilian economy is in need of a boost growth has been be celebrating for

a couple of years now while the economy was growing at seven point five percent in two thousand and ten growth was down to a meager two point three percent last year so the brazilian government has high hopes for these games but expects three hundred eighty thousand jobs to come from the event with eleven billion dollars in additional spending alone coming from an expected six hundred thousand tourists not everyone in brazil shares this favorable view many believe critical investment has been diverted to the games and protests and strikes are expected to mar the world cup proceedings as a result are two corresponded nicholas donovan is in brazil with a report on how things are progressing. obviously has played a lot of tension a lot of sexual tension here in brazil in the build in the build up of the twenty well top speed rights in some cities here in sao paulo and as well in rio de

janiero actually today as we speak. there in rio de janeiro on strike and that will obviously i think the blood of the many many cherished that will be coming here to brazil to see the outcome but we had the opportunity to speak to some of those the cheeriest to speak to some of those football enthusiastic and they actually said that here in sao paulo they had no problems and that the brazilian. perfect posts i like it here really the people are very friendly and open minded and i didn't see the things we read in the newspaper so everything is good here the resilience are very kind very warm and great hosts so obviously there is some sectors of the population here in brazil that a not happy with the world cup with. with the whole hosting of the event but there are many others that think that this is just a miracle for the country for instance the hotel industry the restaurants and the

truth is that there's going to be over half a million tourists more than even six hundred thousand foreigners coming here and obviously spending their money nearly three thousand dollars per cheeriest that those are the estimates so obviously that's going to be a boost for the brazilian economy and the truth is that we have seen those tensions in the last few days but today it's all about football it's all about brazil and croatia and after that three weeks of passion and football that will end up in rio de janeiro. thanks nicholas and coming up a little later many of the pago producer for breaking the set is here on r t with me to talk about the impact of the world cup in brazil the good the bad and the ugly.

with us macro economic indicators improving the biggest question on the horizon is when the federal reserve will hike rates many analysts believe that the rate hikes will come in two thousand and fifteen and that they may hurt an already slow recovery peter schiff on the other hand takes a completely different view schiff is the c.e.o. of europe as if it capital and a frequent commentator on the us market federal reserve policy and precious metals he's also a bear on the u.s. economy bullish on gold and other metals aaron first asked them if the economy is looking good or if it's looking weak here's what he had to say. it's looking weak you know the reason that consumers are spending more is because prices are going up it costs more to eat it costs more to heat your house or drive your car insurance costs more health care costs more mean everything is more expensive than it used to be so that's why spending is up and unfortunately savings are down because americans are still have savings are having to dip into their savings to afford the

higher cost of living and get is up credit card debt is up because a lot of americans are having to borrow to pay the higher prices that are falling incomes really can't support. the weaker industrial production numbers they don't point to lots of business investment coming on line so where do you think the u.s. can get growth. we're not going to get growth not as long as the fed is stimulating the economy what the fed is doing is inhibiting legitimate economic growth we're both blowing up all these bubbles and in order to do that we have to divert assets divert capital away from legitimate savings and investment that would create really konami growth we have to divert that to maintaining bubbles in stocks and real state and we also have to divert the money to financing the national debt so we're getting all this government spending instead of economic growth. now the russell two thousand has lost nine to ten percent of late so are you concerned that the stocks are overvalued. well they are overvalued i mean that precisely the

consequence of the cheap money made a lot of the corporations have been buying back their own stock with borrowed money and it's all possible because rates are so low and yes you know the market is weakening beneath the surface if you just look at the dow jones or the me even the s. and p. five hundred things look ok but you know you look beneath the surface look at the russell two thousand or look at a lot of individual stocks and you know they're in bear markets are there are close to it and i think if the fed continues on this taper path we will be in bear markets officially in the made in the major averages the reason i'm not as bearish on stocks in the short run is because i expect the fed to blink i expect as the months go by as the economic data continues to disappoint the fed is going to have to start talking more stimulus again they're going to have to admit that the slowdown that we saw in the first quarter of two thousand and fourteen was not about the whether there was something more fundamental going on in the u.s.

economy and now the fed is going to have to come to the rescue of course everything the fed is doing to rescue the economy is going to make it worse but that's not going to stop them from doing so what segments of the market are showing the most value in your opinion oh it for investments i mean clearly the gold sector the gold stocks i think are priced for a collapse in the price of gold and not only do i not expect gold prices to collapse i expect them to skyrocket and so obviously these gold mining stocks are dramatically mispriced based on the expectations that investors have that are wrong they think the u.s. economy is recovering it's not they think the fed is going to tighten it won't and of course in the fed minutes that came out yesterday the fed said they weren't worried at all about inflation despite the fact that the p.p.i. and c.p.i. numbers that came out. last week show year over year c.p.i.

at two percent and p.p.i. of two point one percent meanwhile they stay still think we're well below two percent we're already at two percent right now and you know when the fed is not worried about something that's precisely when you need to be worried if you remember during the peak of the housing bubble they were not worried about housing prices going down you know now they're assuring us that inflation is contained right well right that leaves that really where it's going to subprime market quick question you know you just quoting government figures. yet those are the government inflation figures the real inflation rate is much higher but even the official numbers the official c.p.i. and p.p.i. numbers are now year over year rates of two percent and you know remember it that's last year the fed is expecting more economic growth in the year ahead than in the year behind us and you know the fed believes mistakenly that economic growth causes inflation in fact they think that inflation is actually necessary for economic

growth now neither is true but if the fed actually believes that inflation results from growth how is it that the fed thinks the u.s. economy is going to grow a lot faster in the year ahead yet the inflation rate is going to come down not go up now i know you don't like government bonds but what are you seeing in the corporate bond markets peter. well i wouldn't buy any bonds and it's certainly not in u.s. dollars i think the entire rate structure is too low so eventually rates are going to explode and of course that is negative for bonds but the bigger problem with bonds is that they're denominated in dollars because i think if in the unlikely event that the fed does the right thing eventually and really takes away the stimulus and raises interest rates substantially a lot of bonds are going to go into default and of course you know bond holders will will will will take a hit but i think more likely what's going to happen is lots of money for ending the lots of inflation and then the bondholders take a bigger hit to their purchasing power so there's really no way to win long term

being in being in bonds so i think you want to be in equities if you're in bonds at all they should be convertible where their corporate bonds are you have the ability to convert your bonds into stocks in the event that we have runaway inflation because that way you can preserve your hassett now peter in april i u.s. treasury data showed belgium holding three hundred forty one point two billion dollars in u.s. treasuries and that's caused a lot of head scratching i mean who is the ultimate holder of these bonds but i want to get your opinion what's your whole take on the brouhaha over tiny little belgian popping up as a major holder of u.s. treasury bonds and yet this should be raising more than a few eyebrows you know i have to me it's too much of a convenient coincidence that jest when the federal reserve started to taper a brand new buyer emerged out of belgium to pick up the slack you know it makes sense to me i was saying for a while that the fed wasn't going to taper because they knew that if they tapered

rates would spike and the economy in the markets would go down and then they would have to and taper and they would lose a lot of their credibility so maybe the fed only tapered because they knew somebody was out there to cover their back to buy all the bonds that they weren't buying to keep rates from rising so maybe the fed is working with the. e.c.b. or some other entity and they're part of what's going on but i think there should be some kind of investigation as to who the beneficial owner of this account in belgium is and exactly why they're buying all these treasuries and who else might be involved in this process do you think that will happen probably not. but you know i don't know that the fed probably understands to some degree how dependent the economy is this phony volatile economy they've inflated on their cheap money and so they're going to do everything in their power to keep that cheap money flowing and so it wouldn't surprise me that they did orchestrate something

because otherwise they might not have even begun the taper because i don't think they would have been willing to take that risk i mean what if the fed tapering in interest rates and spike it would have again you know the stock market would have crashed real estate market and then they would be forced to reverse the taper and they would lose all their credibility and the world would understand the box that we're in right now. that was the second part of an interview with peter schiff c.e.o. of euro pacific capital. time now for a quick break but when we return aaron talks to a crowd with leasing hall about who gives us good reason to doubt the objectiveness of the federal reserve's policies he thinks the fact that both real g.d.p. and inflation are slowing at the same time is a big deal then and our big deal we have breaking this that many of raffle on the show to talk about brazil the world cup and the brazilian economy as we go to break

here at the closing numbers at the bell. there's a new i'm a grown because we're not got a polygamist family i'm looking for a woman who understands me anyway and i want her to share my goal of saving our people from extinction up to those who. i've had to found marriage and she's had one. wish change how i to teach what's make them smart and have decided to find a man to marry as. we want to know women who could say you kids together with last. month dream just to have let's say

thirty to forty kids are going to do that with only one wife so it's impossible. right to see. her straight to you and i think picture. on our reporters. on instagram. i know c.n.n. the m s n b c news have taken some slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's closer to the truth and i

think the attention and the mainstream media work side by side with you actually on here. and our team we have to print for. the good because the news of the world just is not this funny i'm not laughing dammit i'm not going. to the jokes my hand i think. i'm. almost power to the market through its control of the federal funds rate and it has also proved. what was. wrong aaron spoke with. president best management company who is skeptical

about the direction of the u.s. economy and the effectiveness of the federal reserve's policies because nominal g.d.p. growth is slowing and because real g.d.p. growth and inflation are slowing at the same time and isolates see if there's an interconnection between the slowing of one and the slowing of the other given the high levels of debt that still exist in our economy take a look. i absolutely do i think that. the reason basically won terry policies in the tent is that we've acquired too much debt and we've kept acquiring too much of the wrong type of debt debt that's not going to generate an income stream to repay principal and interest and in that environment the velocity of money is going to decline and it's been declining or regularly since thousand nine hundred ninety seven about a three percent annual rate. and to growth is six percent that's essentially where

it was before the financial crisis two thousand and seven two thousand and eight so money growth is six the last is declining and three that suggests that fundamentally a year trend rate of growth in nominal g.d.p. should be only three percent which of course you've got that split that between inflation and real growth monetary policy is just not affective in a highly over leveraged economy and we're seeing the the end result of that type of situation plays that the fed has shown time and time again that it can stop an economy from overheating but we're in a situation a new situation where do words are just a bound we have debt disinflation deflation and debt deflation those are all watchword so good that monetary policy can be effective here. no i don't not a terry policy works through a variety of different channels first of all there are price effects their quantity

of fakes and then there is possibly the wealth effect. and the price of facts really are not operative because during the quantitative easing one two and three the ten thirty year yields actually rose they did decline. makes it very difficult for monetary policy not to work when when when prices facts are not cooperating. the quantity effects there are two of them one involves the money multiplier the other the velocity of money and the fed controls neither one of them the money multiplier links the fed's balance sheet or the monetary base two to him to and prior to the financial crisis for every dollar increase in the base we've got about a dollar increase and into today it's less than three dollars it's an all time low . and that's why even though they've expanded their balance sheet money supply growth is not accelerating. money supply growth is relatively stable there have

been times when it's accelerating but those were very brief and. cannot control as a lot of the money. at the very first again which. is . and then there's a car spondon increase in consumer spending chairman. most of them cannot find it. it's own name you want wealth effect there is no virtuous circle and those again last four years have been extremely optimistic but if you compare their initial forecast for each of the last four years compared with the actual results they have a cumulative mess of over a trillion dollars and so that tell you that basically. the fed's malls are not working correctly and their approach basically highly flawed. that's present

housing prices have been rising in the u.s. but you know that actually increased during q one q two and so can we really discern what impact q.e. as had on bond yields well bought the the ironic thing about it is that you're absolutely correct the the ten and thirty year yields rose during q one two and three what the fed essentially did is that it raised the specter of the sphere of inflation and it incited inflationary expectations which caused rates to rise at a time when the inflation rate was actually falling and so the very essence of quantitative easing was therefore counterproductive. there were three papers that were presented to the fed at the monetary conference in jackson hole last august all very distinguished economist using different techniques they all found that the quantitative easing program of the set of the so-called large scale has

a purse were not macro stimulus and in fact they did more harm than good. now the fed seems to be optimistic that its medicine will work and that's why it's tapering here and why the fed is projecting rate increases for twenty fifteen so do you think the fed is being overly optimistic air. believe it consistently over optimistic their forecasters been while wide of the mark and each of the last four years they're projecting three percent real growth for twenty fourteen we're not going to get that. the first quarter we had a decline and yes there will be a rebound in the second quarter but the rate of growth in the first half of this year reverencing first and second quarter together is going to be less than one and a half percent and that that's it's not going to be any better in the second half of the year there's just no fundamental reason to expect it to be so in addition i

think one of the things that the fed is not properly weighed into their consideration is that we had a massive tax increase in two thousand and thirteen. when taxes are changed very radically people do not make adjustments immediately they have to recognize their impact. so there's a recognition like a lot of folks have seasonal work they have bonus and they don't really know where they stand until after they pay their income taxes and so the scholarly studies have indicated that when you have a major tax increase it's a drag not just for one year but it's a drag for three years and so last year's tax increase is another impediment another area that was lazy han economist and executive vice president point investment management company time now for today's big deal.

big deal. in today's big deal and joined by breaking news that producer many of our fellow and to discuss that won't cop brazil. and what these mega spectacles mean company host countries so many with the beginning of the tournaments the initial games are underway but we've also seen protests against the world cup itself and you tell me something about the issues that we're facing here and why we're seeing these protests yeah absolutely i mean you have to keep in mind that this is the first time that brazil's hosted a world cup in over sixty years is the first time that south americans hold a hosted world cup in over thirty years and this is obviously a huge spectacle it's a really big deal but not everybody is feeling it and it's very evident i mean we could look back at the last three years the way that it's almost been a surge of discontent in brazil just a year ago you had over

a million people in sao paolo in my now in rio just protesting against the lavish spending that brazil's had on this world cup people over seventy two percent of the population recently polled are unhappy with with the way that you know the preparations for this world cup is has been ongoing just the amount of spending the level of corruption associated with a government instead of spending on transportation on education on health care these are the biggest concerns people had and even today we're looking at the images these are very recent tests those heavily militarized police dispersing protesters with tear gas with rubber bullets i mean not just protesters this is them welcome wagon for visitors and journalists this is this is what they're seeing right now and it's all stems from this discontent with the way this is all being handled by the government this isn't this isn't an anti world cup sort of mentality it's an anti-establishment mentality in the world cup and so that's what these protests are rooted in we're going to continue to see them the question is whether or not it's going to be overshadowed by the event itself let me say that we spoke

to a sports economist victor matheson about these mega event earlier and he brought up the case of the winter olympics in utah and here's what he had to say. the salt lake city case we did in fact find that salt lake city had a market increase in the employment during two thousand. to that employment dissipated after a year and we found that in fact the olympics created about seventy thousand jobs and that's great fortunately the winter olympic committee in salt lake city had predicted it was going to produce thirty five thousand new jobs so what we found was a positive effect of the olympics but about one fifth of what the organizers claimed and we see that's interesting the number i said at the top of the show these guys are talking three hundred eighty thousand jobs associated with the world cup so if you're using those numbers that ratio what do you think i mean so i agree and

disagree with with what he was saying mainly because. i do think that it's a tremendous strain because examples abound about any country that's hosting a major sporting event usually is going to spend a lot more money that they expect in the case of brazil to an eleven billion dollars in astonishing amount and it almost doesn't where i disagree is that it doesn't matter to me how many jobs that they're forecasting whether they're forecasting three hundred thousand six hundred thousand and they get one hundred thousand jobs what kind of jobs are we talking about most of these are construction jobs these are jobs that sure you know you have a giant stadium but you know how many of these jobs are actually going to be there when the when the construction is over now is this good for the economy i think overall it's we've we've seen time and time again with the lympics with with previous world cups of the countries and of spending more but you know the industries that do benefit you have entertainment you have the travel you have hospitality this is where the boom is aside from that i really don't see this is being one of those big boosters to the economy like it like it's like it's portrayed but it's certainly a good thing for national unification for example you know we only have about forty

five seconds but i noted that the georgia bag which is a german said they think england is going to win the world cup what do you think about that oh well i don't know if viewers want to bring the south you know that i'm from honduras i'm rooting for hundreds and hundreds just tied in england zero zero with a man down i'm wearing brazil colors today but based off that own goal that they scored earlier i'm not feeling it too much but i wouldn't put my money down on england. so you're going to you know it all the way. i hope the best for hundreds if they score a goal in the world cup i would be happy but i think brazil has it this year the from us here at boom bust thank you for watching and we'll see you next.

some people say that when it happens to someone in time not a very nice one the curtain falls down. on fit some point i could no longer stand it i decided to kill myself. all the even i was scared of what i'd done but i punched but i didn't understand where i didn't want a man raising his hand the woman should. run from him. i ask everyone who sees this video to also speak to the children's father. my has then became a controllable people that he can do anything. why you're crying don't cry i know i'm tired of crying too don't cry ban.

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russia calls for an investigation the ukrainian army used banned weapons in east ukraine is a military expert tells. the whole. gets its final deadline to sort of gas agreement with russia with the price tag still stalling the talks. and washington considers sending drones and launching air strikes in iraq where radical islamism seize control of the north and assessing the sites on the capital.