dam on the colorado river but utah wyoming colorado and new mexico could then get screwed as then california arizona and nevada would have rights to both of the water another possible solution would be to buy out farmers claim on the water under the compact farmers get first dibs on the water and they are using huge amounts of the water for crops in california that largely get shift to china so x. words are now considering trying to buy water rights back from farmers but that presents a whole other gaited. the only thing that experts seem to agree on is that the solution to this growing massive problem is going to be complicated and more contentious than it already is as an example they point to the last major effort to rewrite water allocation rules called the quantifications settlement agreement it was reached back in two thousand and three but eleven years later it's still under litigation and that doesn't even come close to providing

a water allocation framework for the future so the us dreamed up a water scheme that they used was a very tail and now with the entry later the entire south west of the country is about to start seriously paying for it just how bad these water wars might get only time will tell but with the way things are going we might not have to wait too long to find out tonight let's talk about that by following me on twitter at the rest of . technology innovation and the developments around. the future covered.

well if you're both wrong in a lot of these. things i think your. pleasure to have you with us here on t.v. today i'm researcher.

the boss of that person erin is off today 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 down revisions this latest revision was a shock it was the largest down revision in the history of g.d.p. reporting instead of contract at an annualized 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 final sales which exclude inventories declawed 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. two thousand and fourteen this is rearview 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 tenths 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 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 dollar fund against french bank b.n.p. perry for violating sanctions against iran and sudan shows us foreign policy objectives will claim business interests victims in the west now that we're taking we're talking about the business interests of the u.s. for 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 erin spoke to ethics strategist mark chandler of brown brothers harriman to get his take on the situation. and whether or not the c.b.s. efforts to add the would of the 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. arrows this this time at least from a 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 we do see barring a shorter term repro operations and so net net it looks 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

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 e.c. made the announcement the euro got down about one thirty five we haven't taken out that level the low for the year was said earlier this year and fed be worried about one thirty four seventy five or so we're not at those levels i this i think the e.c.b. the bit frustrated with how resilient the euro has been but partly i'd say this is the 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 they had to support tory nature since may drag him to be able to do something in june the markets have 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'd say 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 that 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. 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 to 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 a find some support around 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. the federal reserve 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. interesting characteristics. which makes it difficult difficult for you. to the bank is that volatility. between like playing squash and ball. you can make up with finesse and speed volatility but we live in a. much more like squash we need skill not just not just luck and finesse and i think that's what the capital markets. in the currencies market and the stock market difficult for investors.

brown brothers harriman. because. and the importance of technology in our future. and in today's big deal tom hartman and. the implications of that as we go to break here the closing bell.

used to be a. bit. like. try to. be pulling out of. your life or if you think everybody. knows the law now well. a lot like.

this case is. sometimes for nothing. this is. just he still will be shot if he sees the state look he. was. the. technology has served as a major disruptive force in many areas of our modern economy our next guests 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 law 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 into. structure and 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 edward 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 digital 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 i think i've i'm based in tennessee and if you come out into the middle of the country you're literally he 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 hardware 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 parent ship a year out it's happening just as emerging markets in places like ija are. a 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 vantage point the emerging markets has is 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 transmit the 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. put up 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 they want to disseminate or get information in share information in other words we're seeing a consumer who who's much more interested in sharing and connecting then and 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 their knees from new alternative sources so i think traditional media part of their problem is not the conversion to the technology i think for it 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 back on that the better angle. you are 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 he had been the head of or sort of chief of staff to one media mogul who would constantly edit their 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 were you know speaking about frustration it seems to me as we make this transition that we've 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 its accumulation 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 reengineer the economy and centralize it in sr of much more controlled is ition and that's been devastating to the middle class in the developed world for a 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 in 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 ford today's big deal. today's big deal tom hartman host of the big picture here are discussing aereo 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 they came out today what's your take on that well is there's good news and bad news the bad news is that the supreme court. you know basically bowed to the interests of

big telco companies wrote 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 in favor of cable companies congress can just 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 will live through it you know then there's another bad news that's the good news and the good bad is 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 there paul who 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 one 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 go to law. being firm you've got to hire people as they as they leave congress you know so you know what 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 but it will have a chilling effect i'm not going to get into the say just it 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 and 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 are 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 rate on sundays and then in all probability the local t.v. stations well i don't i don't know in all probability but if i was doing it you know always try 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 p. . as 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 neighborhood but you know he always sides and you look at his decisions you look at his 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 broadcast industry so that that on its face didn't surprise me. he's he's going to have a weird just like you see you know the this whole roberts court thing that'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 that i excuse me by bush v

gore i think that citizens united and these kind of cases or. they don't speak well of this court. it was losing this see at least that we've got you know that alito schoolie and thomas didn't sell out completely given the fact that it's you know yeah oh yeah i was you know kennedy was kind of he's always a wild card you know you never know where he's going to fall but we've got to leave it there and thank you very much that's all for now from always hear a boom bust the next approaching we'll see you next.

her.

on larry king now being printers for leaving ted fed all revolution in the making it's taking virtual objects and being able to produce those. in atoms real physical material in being used in industry for a long time and now it's becoming personal by down the line one of the really strong growth areas for the three d. printing today is in the medical field researchers in princeton and just kind of the bio on the here there's a million times more sensitive than in the first major fully functional organ the liver is expected to be coming within will three d. printers make dones assessable that will body i thought you could use to be a forty's which claim you know really powers over and over are and i thought this could be done cheaply and easily and i wanted to demonstrate that god could.