and both the city and its citizens are facing tough economic times and we'll bring you the latest from the ground in detroit and john malden is on the program as well my colleague edward harrison sat down with the man behind moulton economics to discuss what the latest economic data says about the u.s. economy today and in today's big deal edward harrison and i are discussing next you shall be the supreme court and the future of the technology industry that's a lot to get in there you want to miss a moment and it all starts right now. with. our lead story today detroit now the latest sign of the city's rapid decline comes from detroit's water department many residents in detroit have stopped paying their

water utility bill and the city is combat in the issue by shutting off water to more than three thousand homes and businesses per week in an effort to stop utilities from sliding even further into debt this however has sparked outrage and i mean outrage among activist groups including the united nations a u.n. team of experts says that detroit's decision to shut off water is enough front to human rights there's a pretty tough words now detroit's water and sewage department is accused of charging exorbitantly high rates to local residents and placing the burden of the city's fleeing tax base upon the shoulders of its poorest citizens now as detroit struggles to shed some of its eighteen billion dollars in debt a partial privatization of the department is now being considered reporting for us from detroit today is artie's meghan locos. i'm standing here in detroit right outside of the detroit water and sewer department and this is a building in a department that is really coming under a lot of scrutiny lately and that is. because it's starting in march it started

shutting off the water of people who are two months or more delinquent on their water bills so far ninety thousand residents or more oh money to the city forty five thousand notices were sent out in may alone saying that people need to pay their water bills or the city would in fact to shut the water off in may alone their show off the water of forty five hundred residents within twenty four hours a sixty percent of those residents are about twenty seven hundred people actually came into this building and either paid off their bills in full made a deposit or made special arrangements in order to have that water turned back on i spoke earlier with the detroit water and sewer department spokesperson and gregory and he says that because the city is in such dire straits they have to take whatever measures they can to help people understand how important this issue is we're not the only ones that where that is a consequence if you don't pay your bill. we are not.

an issue it's a bad debt collection and so as you heard mr you know say there they're trying to work commission feels that some of these people are in fact able to pay their bills but are choosing instead to pay there for a rise in bill or their electricity bill because never in the city's history have we really seen a mass water shut off like what we're seeing now now activists on the other side of the spectrum are saying that that is not the case that the city is already in tough economic straits and that people are simply having to choose now between taking their medications and paying for them choosing to pay for the food for their children and paying for their water and a lot of them are going ahead and making those tough decisions so i had a chance to speak with somebody from the detroit whiner brigade who kind of talked about the severity of the issue and take a listen to what he had to say how could people pay their bills when you don't even know people situation you know people may have lost their jobs they had their pensions cut their social security. how can we generalize that people are just not

paying their bills i i refute that you know one hundred percent so just to kind of go over some of those unemployment rates that were being highlighted by the detroit water brigade another activist organizations there is a forty percent poverty rate in the city of detroit and also an eight percent unemployment rate you have people that are having their water shut off on a weekly basis the urgency of the matter is becoming a very serious and groups like the detroit water brigade are doing anything they can to help they're collecting plastic water bottles they're collecting filtration systems and handing those out to families who are asking people for donations of water jugs just to be able to do anything they can in order to help those people be able to not only drink water but flush their toilets wash their hands and take showers so as you can imagine this is beyond drinking water and being able to get that glass to water in a really hot day like this it is about sanitation it is about public health so right now we're watching and waiting as this whole situation kind of plays out

people are trying to figure out how exactly they're going to get water for their families a question they just don't have the answer to at the moment reporting in detroit michigan. now it's the middle of a hot summer but for some reason we're still talking about the lousy winter in the first quarter of two thousand and fourteen but this latest bit of news is serious the data says that the economy in q one contracted two point nine percent now it was a nasty winter but was it that nasty edward harrison spoke to john moulden of malden economics and the author of code red how to protect your savings from the coming crisis to get his take on the situation take a look at what he had to say. i want your book could read shortly but let's start with the data coming out of the u.s. . strapped for coupon definitely and that's pretty awful

are you surprised. oh yeah i mean. is is this precisely what i was talking about last summer when i said that i don't think we understand the unintentional consequence is the economic consequences of obamacare. and what we're seeing is that with the higher deductibles and people are having to pay we're now it's we're not forcing transparency into this into the system because when people have to come out of their pocket with more money they're going what i do a lot of the paying for what it what i might do i really want to do this do i want to spend five hundred thousand or whatever that number is and. so part of that sort of a rational response if you will the other thing is that the big hospital that i'm talking to that you know eighteen billion dollar hospital systems that i'm talking

to management in in and they saw this coming they were already planned for lower numbers and that there are they are beginning to plan for even lower numbers in lower numbers over time though they've seen a rebound. in spending it still down and down like they're expected but it's not down as much as it was in the first quarter so we're going to see a little bit of a rebound of a bounce back if you will people can only postpone certain things so long will you know that's a good point because a lot of people are saying q two is looking good i mean obviously this is a backward looking kind of thing in the markets are forward looking so what's and we really take away from these numbers given what you're saying. well i mean we we saw an odd mix of inventory we're not seeing it even though employment is is the lagging number we're not seeing it in the end and the employment numbers there's

a lot of other things that you know are if not irrationally positive they're not negative. so i would expect that. we'll see some kind of a rebound i don't think we're going to see you know a swing back up to four percent. if we could get through the year with a full two percent. you know year over year that would be great. i think frankly two percent a year for the next five or six years through the end of this decade just like we did last decade we did one point nine percent on average the last decade and i think if we can get through this decade with you know one point two percent that's about as good as we're going to get we have some structural headwinds in this country that. we're just not. getting around to dealing with our government is creating more and more cost the bureaucratic and regulatory

overreach is staggering the those headwinds i have got to be dealt with and if we don't have a significant change in that attitude of allowing. your ocracy to run wild it's going to change decade we even if let's say we get some massive new reformer who comes in in two thousand and seventeen two thousand and eighteen before anything happens and then you've got. to a couple two or three years for people to be able to respond and so we're in a kind of built a muddle through world which is what i was writing about two thousand and two and two thousand and three. and we're going to feel that we're going to be right in a muddle through what for a very long time i was in ask you it's good that you mention that i was i was thinking about muddle through you are you wrote the book and muddle through i mean

how is or is not how is this data muddle through or is not muddle through in your opinion one of this data is a lot of what all this stuff. we're going to we're going to reset how much we spend on health care and the simple fact is that in four years we will be spending twenty percent less on health care than we were in two thousand and twelve . and that's not an unreasonable thing. in terms of our economy in terms of what we can afford. but that is a huge had when we needed twenty percent of the economy and you say hey we're going to slash twenty percent of the income from that sector well that's a four percent g.d.p. headwind over four years. part of it was inventory cycle part of it there was the weather factor. you know north of the texas border it was

it was a pretty nice one here in texas. but if you get much further than tulsa in oklahoma city and you know and d.c. you guys in the north had had a pretty cold terrible as. it so. there was some of that. we've had a lot we had a little bit of a rebound. homebuilding last year but it's flattening out the people keep looking at. the home building statistics for instance and you see all those charts and you say what we're finding back and i'm going nowhere where we should be. and that means we have a growing economy with with household formation and you have to replace some of your homes over time anyway and that's about where we are we've got three million too many homes and the bulk we more or less absorbed most of them

the big bulk of them so now we're just normal house building well. we do mean to make good because if you need to lose could be thought of is just going to be there and so we're we're resetting to kind of a new normal standards and we're going to have to create a new little bit with health care. we'll grow around it because we were part of you're doing fine but that's what you look through that's why you don't get this four percent. compound group. that was john mauldin of malden economics. time now for a very quick break but stick around because when we return did not know render a is on the show to be a is the founder and c.e.o. of some zero and he's giving us his take on technology finance and the future of investment and remember you can see all segments featured in today's show on you

tube at you tube dot coms logic boom bust archie and on hulu adelir dot com slash boom and dash bust but before we go here are a look at some airflows the numbers at the bell come on back about. well to the. city could spend over. says to each one. piece with some token much still to sell something peacefully to friends we need somebody such as the sun. we've got the future of coverage. right from the scene. first street. and i think picture.

on our reporter's twitter. instagram. to be in the know. i think that the pakistani military does realize that the ballot on have become a problem for box fun but it is just too late the taliban have sunk deep roots in pakistan and it's very difficult to beat the enemy. when it was previously your friend and your ph.

welcome back to the show now technology has become one of the defining areas of our lives from unbending the taxi business to ultra fast high frequency trading so i want to check in with. the c.e.o. of some zero to get his take on technology finance and investment now some zero is an online community of investment professionals from hedge funds to mutual funds to a private equity firms which aims to change the way that investors share information with one another now i first asked to view his thoughts on the term networked economy catherine austin fits a recent boom bust guest use this term to describe a major economic shift towards technology based systems now i want to know if divya believe that we are in fact and a technological shift to a networked and cloud based digital world here his thoughts. seeing more and more.

you know more and more folks in the world utilizing the internet and sort of online social networks to you know i think supplement their real world networks and you know i think when you look at the the online network landscape you obviously have some very large players like facebook and linked in. you know kind of applied to very broad. you know user bases or types of people but you also have i think a lot of these networks that are becoming more and more useful as people sort of realize that you know. some networks are more tailored for certain things than others. now what are the challenges that companies face in monetizing a more mobile centric world. well i mean they're obviously physical. limitations to you know mobile devices they're they're small whether it's a full of phone or a tablet. you know i think for the folks in the ad tech world that itself presents

a challenge. and i think you know there's there's a there's a bit of a lag between you know you look at kind of how companies have traditionally advertised you know be it in print or on television kind of trying to understand and quantify the of of advertising on mobile devices that that transition has taken time but certainly that we've seen a very big shift in mobile ad revenues or revenues moving from traditional media to to mobile devices i think people are catching on what in the financial services space how is that network the world changing the way hedge funds mutual funds and private equity firms share ideas and disseminate information this is definitely a wheel house here with some there as i'd like to get your take yeah definitely much more my wheel house you know when i started some zero in two thousand and eight we definitely got a lot of pushback from both sides on analysts as well as compliance officers that hedge funds that you know who are basically very much against the idea of sharing

information i think now they're starting to warm up to it and we're seeing much more information being shared online and i think you know for our members you know in some zero they're seeing so they're seeing our website is not just a way to you know access proprietary information really helps them do their jobs and find investment opportunities but also as a way to build their brands and reputations as a way to attract capital and really meaningfully drive their business in a way that wasn't possible you know before we built the sub-zero platform so i think it's actually pretty exciting to see that transformation kind of transparency becoming a more standard course of the industry or a kind of a more common theme in the industry versus you know maybe the opaque reputation that the hedge fund industry out in the past. that actually leads well to my next question but i want to ask you do you see anything in this space that makes you think that our networked world is leading to a better information flow to individuals and retail investors. so for resale

investors you know one of our goals is actually to not only aggregate the information that we are it and make it available to professionals but ultimately to make it more accessible to retail investors as well. you know it's not something that major focus of some zero right now because we can only tackle so much that you know at once but i think there's no question that as we sort of you know continue to build a platform out continue to aggregate research that we're going to have. you know something that would make a lot of sense for the retail investor and get away from a lot of the i think a lot of the noise that's generally out there in the markets you know where you have retail investors investing on recommendations made from people who are you know maybe have a significant blog following but don't necessarily have the investing credentials that you know you'd expect from somebody promoting

a viewpoint so i think our whole goal is really to to make sure the signal to noise ratio is as high as possible so when you know when we aggregate data that data is actually meaningful it's not just you know full of randomness and people just simply talking their book but you know we spend a lot of time thinking how do we sort of inject incentives into some zero such that the quality of the content is really high and then we can figure out how to disseminate it to the right people including retail investors now and you information portals like twitter help level the playing field for retail individual investors in terms of information flow. i mean personally i think twitter is a dangerous tool to use or to rely on for investment purposes simply because there's so much the number of tweets or you know we're talking. billions of tweets i mean of that you know some subset is going to be directed towards financial commentary. and then of that i think a very small subset subset is going to be coming from individuals who have real

credibility within within the investment world and i think you know i have come across you know other people and companies that are trying to make sense of kind of all the financial commentary that's that's actually on twitter but it's it's dangerous because there's you know there's a big credibility issue and there's a you know you want to be able to filter that all of that all of that data in a sensible way and i think that's a lot harder than some people you know might think it is now can you tell me a little bit about the fact set that turn him in to generate investment ideas what is the purpose of overturning and what do you expect will come out of it. yes so one of the things as i mentioned before we're always trying to come up with ways to compel our members to upload not only their their ideas but their best ideas and the idea behind this tournament is to give them a tangible incentive to share our highly proprietary data onto our platform so fact

that was kind enough to sponsor this contest they've you know put up a lot of money we're going to be giving out one hundred sixty thousand dollars in cash prizes to the winners of of this fax a torrent series which consists of four separate contests the first one was actually just added on monday it was focused only on international stocks so companies outside the u.s. we have one coming up that's going to be focused on shorts one that will be focused on credit oriented ideas and then one focused or one contest split by market caps will have a small cap mid-cap large cap contacts or contests and the whole vision is to you know really kind of give emerging managers analysts and portfolio managers who aren't necessarily super well known in the industry a chance to stand out and showcase their best work product and to do so in a competitive environment amongst other really smart investors and we've set up an amazing panel of judges that consists of you know really some of the luminaries in

the investment industry investment management history to evaluate you know who has the best ideas and at the end of the contest what we're going to do is have a grand prize winner. where their grand prize will actually based upon the actual return and performance of. of the winning ideas and we'll pick the best one and we'll see how it goes. that was dave founder and c.e.o. of some zero time now for today's big deal. big deal time with my partner in crime mr edward harrison and today we're talking about net neutrality the supreme court and the future of the technology industry a lot of stuff there said word are some interesting news to talk about from this past week and i first want to talk about tim with the man who coined the term network neutrality that's a big term we're hearing it all around lately and most people don't know what it

means this kind of it makes sense when you can find it but it seems like tim is you know taking more than just an advocate stance here when it comes to network neutrality so can you tell me what he's up to what this is all about you know what i've heard is that he's running for the telling the governor of new york i know what you want to go to action in terms of network neutrality in particular one of the issues that he's looking. for a cable that merger and that's a big merger in the new york area because tom were cables there he believes that this is a competitive that it's going to reduce competition in that space and therefore he wants to block it and so he's running on a platform that includes this as one of his major tenets now the f.c.c. is new rules they're up for public comment and they've received a ton of criticism it's not it's not a huge hugely popular thing so what's to take on this. is interesting what he's saying basically is that that will be challenged as we know it the way that we talk about it it's not there doesn't exist right because basically the middleman's

been caught up so if you look at the middle minutes additional middleman which is a broad and backbone provider like level three really when you look at all the tier one providers that don't have to transit through other networks in the world there are only seven of the three of them are actually. facilities based providers here in the united states that are you know last mile i assume he is like a vote of our horizon is one eight hundred eighty is another century link is another and then the fourth out of the seven is actually sprint which is a mobile telecom operator so these guys are now middlemen as well as the ones who are providing in the last mile so what he's saying that's all wrong because basically what it means is is that you have the content providers hooking up to these guys as broadband providers and then them hooking up to themselves to the customer so they can take on both sides of the of the coin they can say you

customer at the last mile and they can. and there's no one in between those two and he thinks that to compare i mean it sounds pretty anti-competitive to me but it also sounds awesome if you're the one you see here getting paid on both hands and of course they want to stick like us but now tim well he's all about trust busting that's been termed but let's talk about another intersection between government and business the recent supreme court ruling on area t.v. basically found that areas business model so legal sideward what's your take on this ruling i think that basically you know given the lack of trust of people in our institutions in the united states it's interesting that you know the supreme court has you look at this deal you think. you don't think immediately this is the supreme court and therefore i accept it rather you think there's something wrong with this deal and i personally think there is something wrong with this deal and we know for. back in the one nine hundred seventy s. when we had v.c.r.'s the v.c.r. was almost made illegal by one vote and that was what antonin scalia said in his.

you know we wouldn't have the v.c.r. if we went along with these things and this is going to be it's going to have a negative effect a chilling effect on the industry going forward and i believe that's actually going to be the case now i want to ask you what are the implications of this ruling for basically cloud based systems and cloud based computing you know and copyright laws in the future you mentioned the chilling effect have a chilling effect i think that you know you look at a company like aereo and they know that you know we went all the way to the supreme court we lost if you are a startup in this space and you're thinking i want to get into this space in any way shape or form that that is going to compete with the existing infrastructure with the existing players you're going to think we're you know these guys are going to use every part of the law to keep me out there using copyright or patent protection and therefore i'm not going to get in there i'm not going to innovate customers are therefore not going to get the kinds of things they want to be

beholden to the existing companies. again you know that's negative for competition and it's negative for the mission work down the line ultimately to as always thank you for your time in your insight that's all for now but we love hearing from you so please check out our facebook page facebook dot com slash boom bust our teeth and please tweet us at edward h. from all of us here at ground zero thank you for watching and see next time by. the. player. lead. police to try to.

play pulling out of. your life or it's your preaching everybody. lead. someone no law no well. i know a lot of like but. the thing that's so funny. this case is that let's play sometimes for nothing the lead just lead and it's just. it's not just you but still we can still be shocked if you see a stage eight will be. wanting to kill all of the. play a little. clip

under the obama. ali. pleasure to have you with us here on r t today.

ukraine's president signs a trade deal with the you along with the leaders of georgia. the very same agreement which ignited the february revolution conflict in the ukraine's a defiant. cash for rebels the u.s. president pushes congress to cough up a billion dollars in aid the syrian opposition fighters to help train the unprovided. just flaws the long delay in opening a kilometer five billion dollar airport in is blamed on a fake engineer given a key role in the project.