next time. you like me you want your comedy news with some t what's your comedy news to be a bare fisted no holds barred fight to the dad. like a vampire fighting into the next of the corporate elite the billionaire freaks while they're going. well that's what you get with my new show but jacked it in night. put it on your shoulder all my life. policies i felt like you know.

it was. a pleasure to have you with us here on t.v. today i roll researcher. the boss of that harrison era eight is off today today's headline on 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 and your lies one point zero percent pace the economy contract 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 declined 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 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 backing cullen roche 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 dollar fund against friends begbie

and 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 us 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 bank's recent action in their attempt to fight deflation and stimulate the eurozone. the question is will it work to get more insight on this errand spoke to ethics strategist mark chandler of brown brothers harriman to get his take on the situation. whether in 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 do you know it can be successful member of the e.c.b. did previously they gave these long term operations three years allowed banks to pay 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. heroes were didn't have a stigma attached to it everybody almost every bank participated in it but now i think that with the european conducting a stress test 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. here. this this time at least from

a drug he said more details will have to be forthcoming but drug you already indicated that the banks will be have extra reporting requirements to make sure that that money that they're 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 boring of shorter term operations and so net net it looked like the european banks borrowed about five hundred billion euros from the from the l. taro's 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 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 with said earlier this year in february at about one thirty four seventy five or so we're not at those levels i that's 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 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 had 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. 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 as 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 their 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. 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 with a 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 science and supported around this one of those one of seven twenty year 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 economy's weak of it in the us 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 add. no i think one kind of interesting characteristic of a foreign exchange market which makes it difficult for difficult for your viewers as well as our clients at the bank is that volatility is very low i said rather 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 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 to collimate and the importance of technology in our

future economy and in today's big deal tom hartman and i are discussing this a play in 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. well. it's technology innovation all the list of bellman's from around russia we've got the future of covered. the stories we cover here we're not going to hear any right other big story. and talkers

a reason they don't want you to know more. now let's break the set. your friend post a photo from a vacation you can't afford. a different. the boss repeats the same old joke of course you like. your ex-girlfriend still pens tear jerking poetry keep. ignoring. the post only what really matters. to your facebook you speak. on your. face i think people.

pleasure to have you with us here on t.v. today i'm sure. technology has served as a major disruptive force in many areas of our modern economy our next guest sees this new technological economy as becoming more and more important in our future. catherine austin fitts is the president of solaria incorporated and the publisher of the 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. 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 it's having a very dramatic 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 i think i've 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 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 in the companies that are not.

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