exactly would that hurt their lives let's listen. listen to a millennium plenty. plenty. of.

the boss of that person aaron eight is off today to headline the u.s. economy the u.s. department of commerce released its final estimate for gross domestic product in the united states for the first quarter of this year and while analysts had expected revisions this latest revision was a shock it was the largest downward revision in the history of g.d.p. reporting instead of contract at and your lies one point zero percent pace the

economy contracted at a two point nine percent pace that is a severe slowdown notable facts in april the government estimated spending on health care grew at a prodigious nine point nine percent rate due to the implementation of the affordable care act actually health care spending contracted at a one point four percent pace in total federal sales which exclude inventories de-clawed at a one point three percent annualized pace in q one two thousand and fourteen and inventories subtracted one point seven percent from g.d.p. in q one two thousand and fourteen this is we're view mirror stuff though analysts are boosting their estimates for growth in this the second quarter of two thousand and fourteen. goldman sachs has raised its tracking estimate by two tenth's to four point zero percent barclays has also raised its estimates for q two to four point zero percent three recent guess and boom bust mark chandler marshall are back and

all said that the u.s. economy is improving manufacturing and service sector data is surging higher jobless claims are at cycle lows and unemployment has been dropping so while the u.s. economy is by no means firing on all cylinders the situation is improving for many business executives this makes the obama administration saying things against russia problematic to top u.s. business lobbies the u.s. chamber of commerce and the national association of manufacturers plan to run newspaper advertisements tomorrow in the new york times wall street journal and washington post warning that more sanctions risk harming u.s. workers and businesses companies from the united states represent the largest source of foreign investment in russia and these companies fear sanctions will hurt their bottom line however as the eight billion dollars against french bank b.n.p. perry for violating sanctions against iran and sudan shows us foreign policy objectives

will claim business interest victims in the west now that we're taking we're talking about the business interests of the u.s. firms and not just some foreign bank we will have to see if foreign policy aims to america to the will of american domestic business lobby. the european central banks recent action in their attempt to fight deflation and stimulate the eurozone. the question is will it work to get more insight on this in . spoke to ethics strategist mark chandler of brown brothers harriman to get his take on the situation. and whether in the c.b.s. efforts to add liquidity to credit markets by targeting long term refinancing operations will be successful here's what he had said. i think it's tough to

measure how to how to do it can be successful member of the e.c.b. did previously they gave these long term weipa operations three years allowed banks to repay them early now if you can offer is these targeted long term operations which are targeted to try to help encourage banks to lend to small businesses and households and i think you will find is that a lot of the banks will not borrow will not take advantage of the program i think that the first l.t. arrows were didn't have a stigma attached to it everybody almost every bank participated in it but now i think that with the the europeans are conducting a stress test the asset quality review the attempt to normalize bank balance sheets i think will deter many banks from taking that money that money also they can't just take that money and use it to buy government bonds like they did the first l.t. heroes this time at least from drug he said more details will have to be forthcoming but you are you already indicated that the banks will be have extra reporting requirements to make sure that that money that they are borrowing is actually being

lent out and so i know that most people estimate that given the numbers that were thrown around from the e.c.b. first announced this it looks like the banks could borrow as much as four hundred billion euros which is roughly the size of the l.t.r. oh when you when you just for you know when the banks took the long term we probably helped offset it by reducing the a bar in a shorter term repro operations and so net net it looked like the european banks borrowed about five hundred billion euros from the from the l.t. arrows and now they're going to be offered four hundred billion from these t l t r o's and we don't think that the banks will be taking that much of it my own personal guess would be about half of that will be taken up probably more by southern banks peripheral banks rather than core banks like germany or finland or the netherlands so are these if these actions going to weaken the euro. i think the e.c.b. wishes they would but you know when the week that the easy maid's announcement the euro got down about one thirty five we haven't taken out that level the low for the

year with said earlier this year in february at about one thirty four seventy five or so we're not at those levels either so i think the e.c.b. the bit frustrated with how resilient the euro has been but partly i'd say this is a way predictable in a sense that we too are looking for a firm euro after the e.c.b. announcement for a couple reasons one is the markets are incredible but the anticipatory nature since may drag him to be able to do something in june the markets had been discounting that in addition to that what we saw happen with the federal reserve announced q e three back in september of two thousand and twelve they have tipped their hand the market anticipated it to dollar sold off before q e three was announced and then valued afterwards as if the markets were selling the dollar on the rumor and buy on the fact that is the essence what we thought was going to happen with the euro and so far i see the jury's still out that is we haven't really seen a move back towards say one thirty eight and the other hand we haven't gone back to

one thirty five so i think that the euro is in a trading range which given the fact they just east policy negative deposit rate i think the euro is still acting fairly resilient. now what about australia or new zealand what other currency areas are you looking at that seem interesting at this moment. so i think the dollar block is interesting partly because you know some people talk about these as commodities but i don't really view these as commodity currencies maybe new zealand has some extent but australia and canada have much more diversified economies and i think they have something else in common besides what they produce and that is they're aaa rated and this is very very important because there's so few aaa company countries right now so i think that one of the things that attracts flows to australia and canada is the sovereign rating in addition to that for example australia has seen the we've seen a strong dollar value to. us on the back of evidence that the chinese economy is stabilizing new zealand is in the process of raising interest rates even though

they say they want to have stronger currency as they raise interest rates when the us the e.c.b. the b.o.j. and the bank of england are low and steady interest rate policy for new zealand to be raising them when they already at the upper end of say major countries interest rates i think that they're fighting you know they have this contradiction and i think the currency gets stronger because of that. now recently the u.s. dollar closed below its two hundred day moving average for the first time since q one of twenty thirteen so can you tell me anything about the u.s. dollar versus the canadian dollar. share well i'd be careful with the dollar index i think that's what you're referring to below today moving average the dollar index is a nice proxy for the dollar but it's not really the dollar here's why when you look at what's composed of this dollar index about sixty percent to the euro and currencies that look like the euro like the swiss franc and other part of it is the british pound the yen and the dollar together make up about twenty percent of this index those are two of our four top trading partners the other two of us trading

partners aren't even included in the index and that's mexico and china so in general i'd say that the canadian dollar had been. beaten up earlier this year because the canadian data was poor but most recently as of the end of last weekend i came out of the higher than expected c.p.i. number stronger than expected retail sales data and the canadian dollar played a big catch up with the other parts of the dollar block canadian dollar to me looks like if i'm supportive of this one of those one of seven twenty if that goes maybe one zero six fifty i think a dollar surprises me as well i thought that the canadians are going to have the economies we could get in the u.s. if there was europe is likely to raise interest rates before the bank of canada but the yields in the aaa rating of can it still draws money and to diversify away from the u.s. market is always such a pleasure talking to you is there anything else you'd like to on. no i think one kind of interesting characteristic of

a foreign exchange market now which makes it difficult for difficult for your viewers as well as our clients at the bank is that volatility is very low i sort of draw the distinction between like playing squash and playing racquetball i play racquetball the ball bounces around more where you lack in skill you can make up with finesse and speed that's volatility but we live in a low volatile world right now and that's much more like squash we need skill not just not just luck and finesse and so i think that's what the capital markets are now a record low volatility in the currencies and the bond markets and the stock market and i think it's very difficult for investors to really really to earn that alpha. those marks chandler of brown brothers harriman. time now for a quick break but stick around because when we return catherine austin fitts joins me to discuss the network the cost of it and the importance of technology in our future economy and in today's big deal tom hartman and i are discussing this supreme court ruling on the area t.v.

and the implications of that decision as we go to break here at the closing numbers at the bell. would you like me you want your comedy news with some t one to comedy news to be a bare fisted no holds barred fight to the dad. looking through the vampire fighting into the next in the corporate elite billionaire freaks while they're going. well that's what you get with my new show but jack to the night.

this was in the washington well as submissive. is being suggested in the latest numbers in the media tend to form a prophecy of current issues actually back to a new doesn't do too much for ad revenue my own tech agriculture giant piece on a seventy six year old american farmer in the studio fallout do you think this is going to create for the cia do you think this is what's triggering a race america's the largest economy in the world it's also the largest debtor nation in the history of the world breaking the set is mostly of alternatives to the status quo but one might give real alternatives to the points on the books for the american dream the next they were just trying to survive it's time for americans and lawmakers are forced to wake up and start talking about the real causes of.

please. please take very hard to take. your. happy that i had back with her right here please. please. please please. please. please. please. please the people.

technology has served as a major disruptive force in many areas of our modern economy our next guest says this new technological economy is becoming more and more important in our future. catherine austin fitts is the president of solaria incorporated and the publisher of this a laurie report she also served as assistant secretary of housing at the department of housing and urban development during the first bush administration i asked her if she could explain her thinking when she uses the term the networked economy here's what she had to say. two things are happening one is we're taking digital technology and integrating it into the basic infrastructure hardware of life and as that happens we're seeing more and more flow whether it's media flow or financial transactions shifting on to the internet and online systems a big part of this at word is the fact that we now. have almost three billion

people and rising on smartphones so we are moving from a world where it's not north america which is the biggest consumer market it's not it's not the european union it's big it's consumer market it's people and smartphones is the biggest consumer market and is having a very traumatic shift in both cash flows and the whole marketing presence of all sorts of activities and organisations so so it's this shift that comes with the integration of kitchell technology into everyday life and it's it's not just online systems it's the integration of technology into hardware so we're seeing i call it the digital heartland if you you know it's i'm based in tennessee and if you come out into the middle of the country you're literally seeing this kind of technology integrated into the the basic infrastructure so technology is no longer something that just happens in silicon valley or around boston it's happening in the trains it's happening in the trucks it's happening in the cars it's happening in the day

to day infrastructure of industry from farming to you know to every day walks of life so we we saw in the ninety's we reorganized production globally now we're kind of reorganizing the consumer in a lot of that has to do with moving these things on to the on line but integration into the everyday her where of life so it's it's changing the flows in many industries and it's interesting if you look at the stock market day to day what we're seeing inside the stark market is tremendous divergence between the companies that are successfully making those adaptations and the companies that are not you know of another pair on chip a year out it's happening just as emerging markets in places like asia are rising in terms of the relative economic strength there's a rising tide lifts all boats across countries and within countries. well you know that the divergence is happening everywhere but the advantage that the

emerging. it's houses there are they're in a position in many ways to automate or take advantage of these things faster and this you know strongly we're going to see ali baba go public in the united states and i think it's going to be a tremendous you know it's going to mentally ring the bell for a lot of people in north america about how some of the emerging markets are really grabbing the technology and it's it's causing tremendous changes and and causing them to jump ahead in terms of market share in consumer globally so you know if you have we now have the number of chinese online surpassing those in north america. anyway so watch the ele because it's going to be a real education for the u.s. markets right that is interesting well you know just just recently we heard that the u.s. supreme court has ruled that network based technology area which is basically taking over the air signals and we transmitted

a rule but it's basically illegal an aerial is going to shut down as a result of that you might take away from this is that at least temporarily old media can can put up the hurdles but do you think that traditional media will be able to put up the hurdles permanently in this network based economy. well what what here's what's going to happen anybody with deep pockets is is so far had an advantage in in in the shift that doesn't mean any particular organization but if you step back behind various specific corporations and you look at who's got the deep pockets rather than this technology helping the little guy generally it supported centralization and stopped the big guys from out of the deep pockets so in that sense yes i think if you look at the specific media organizations you know they are struggling to stay current in how the consumer wants to relate through

this technology and how. we want to disseminate or get information in share information in other words we're seeing a consumer who who is much more interested in sharing and connecting than in being told by experts what they should think and so i think the larger or the traditional media what you call the traditional media is struggling i also think that you know the traditional media has really been in the business of promoting an official story not necessarily actually what's going on and what we saw particularly with the crash in the in the both stock and fixed income markets in two thousand and eight two thousand and nine a sort of shake in confidence and now people are much more open to getting the earnings from new alternative sources so i think traditional media part of their problem is not the conversion to the technology i think part is that they really lack credibility because they've earned the disrespect and with that definitely resonates with us here because we definitely are looking from the better angle. of

us in it if you look at if you look at shows like the story of the celera report or shows that have really tried to tell people what's going on and keep them employed into reality as opposed to official reality you know the aggregate market share is shifting and it's shifting the content on traditional media and traditional media is scrambling to catch up with the story so it's going to be very interesting to see how that plays out but i you know to me internet media and new media is grabbing tremendous market share and i think that's going to continue because i think the pressures on traditional media to tell the official story you know they're economics are not the economics of their organization their economics or promoting what is in the best interest of you know the people who own their shares so i remember once during that ninety nine hundred ninety s. being frustrated i had a friend who was a had been the head of or sort of chief of staff to one media mogul who would

constantly edit the. or nightly news stories you know because he didn't want to upset anybody in time so i think we're particularly during this election cycle what you're going to see is the american people are very frustrated and that's going to reverberate back on the traditional media you know speaking about frustration it seems to me as we make this transition that wage growth has been weak and that is mitt you know the accumulation of debt in the household second particular and you know given the demographic changes given a secure place of debt are you at all worried that we're going to see some instability politically in the developed economies. well i think you're seeing instability now i think you've seen instabilities going on for years so i don't think it's a matter of coming i think it's here i don't think wages are stagnating i think we have used government credit and government money and government regulation to re-engineer the economy and centralize it in sr is much more controlled is ition and that's been devastating to the middle class in the developed world for variety

of reasons i don't call that you know something that just happened in the marketplace cycle out of financial crude h.r. and i think the squeeze on the middle class is absolutely part of that and more and more you're seeing the kind of people who are get out and vote are beginning to realize that the system is operating outside of the law as they believe it to be and that's tremendous frustration and it's a cause with high youth unemployment of real real political action so i think. that was catherine austin fitts president of so large incorporated for today's big deal. today's big deal tom hartman host of the big picture here at r t n are discussing

the area on t.v. the supreme court ruling and what makes what it means for media business and in the future so tom six to three ruling against the area that came out today what's your take on it well there's there's good news and bad news the bad news is that the supreme court. you know basically bowed to the interests of big telecom companies right things like that the good news is that they didn't rule on constitutional grounds which means that just like back in the seventy's when they ruled against the t.v. industry and. every cable company's congress can change the rules of the game so. arrows areas ability to survive or reinvent itself or somebody else to follow in their footsteps is still there if congress while. you know then there's another bad news that's the good news and the good bad news good news and then we get the bad news again and the bad bad news is that congress these days only acts when somebody

grease is their palms we basically have the best legislative body that in you can buy in the world but it has to be bought and the cable companies have you know a massive presence here the broadcast companies go way back before that the big the big three networks and want and you know the new internet companies are just kind of getting up to speed to get a fair amount of cash but it takes millions and lots of years to buy members of congress in this town to build a lobbying firm you've got to hire people as they as they leave congress you know so you know one of what you're seeing i'm getting a sense that maybe there is someone who could be the new area you know if you come in there and take that space given the fact that they haven't ruled it unconstitutional but the problem is that this could have a chilling effect on that new area do you think you know that it will have a chilling effect i'm not going to get into the say just they just killed i mean you know just killed it and and it's possible that aereo could have done this

differently from the get go i mean one of the problems that these local stations have is that they're selling their advertising and when they're on cable they don't have to worry about selling advertising because the cable companies are selling or paying them a fee now but their primary revenue model is advertising so and the only way that they know what to charge an advertiser is what the nielsen ratings show you know what what their ratings are in their market so if aereo had originally come to them and said we will calculate we will we will enter we will cut a contract with nielsen and we will make sure that our viewership is added to your read on this. then in all probability the local t.v. stations why i don't i don't know in all probability but if i was doing it you know always trying in business to come up with a win win deal and that seems like that would be a way to do it you know if aereo had simply from the get go said instead of just taking your signal we're going to take your signal and give you something that i didn't use to address rabbit right and then both sides are winning you know but

they didn't as far as i know they didn't do that i don't know if they were trying to do that i don't know anybody inside the company but i'm guessing that if this model gets reinvented it'll get reinvented that way you know what i thought a very interesting is the split number one we've got alito school and thomas who are actually going with this and on the other side you've got x. roberts siding with what you would call the liberals of the court did that surprise you that it came out that was roberts didn't so much because roberts has always been the bigger the corporation the more he likes them i mean roberts was a two million dollar your corporate lawyer so shocking top drawer firm i forget the name of it but you know he always sides and you look at his decisions you were going to entire career he always is on the side of whoever is the biggest most powerful you know force out there and in this case that's the telecommunications industry or the broadcasters so that that on its face didn't surprise me. he's

he's going to have a weird legacy you know the this whole roberts court thing it's you know every court wants to at the end of the day you know roger tanny would had to be rolling over in his grave you know. rehnquist. i think he was horrified by citizens united you know it's this and so the excuse me by bush v gore i think that citizens united and these kind of cases or. they don't speak well of the score. it was blues in the sea at least that we've got you know that alito. schoolie and thomas didn't sell out completely given the fact that they didn't sit and you know yeah oh yeah i was you know kennedy was kind of he's always a wild card you know he you never know where he's going to fall but we're going to leave it there and thank you very much that's all for now from always hear a boom bust that except for watching we'll see you next.

i'm out in martin the stories we cover here we're not going to hear any right other big stories that have struck headlines same time there's a reason they don't want you to know nothing are important. now let's break the set.

the folks.

in effect that means you can jump in anytime you want. coming up on our t.v. water water everywhere but not a drop to drink in detroit water services have been cut off to thousands of people who haven't been able to pay their bill and now the traders are reaching out to the u.n. for help a report from detroit just ahead. and the supreme court has spoken today the high court handed down two important decisions and that includes a ruling against the warrantless search of the rest of person's phone an in-depth look at that coming up. on the white house received a special visitor today israeli president shimon peres met with president obama in the oval office what's on the agenda find out later in the show.