the weather service doppler radar indicated a severe thunderstorm the storm was near comes hours bill moving northeast at fifty miles per hour this storm is capable of producing golf ball sized hail and damaging winds in excess of sixty miles per hour the severe thunderstorm will be near bedminster in dublin around eight forty pm in a comment pipersville around eight forty five pm when and lumberville around eight fifteen pm washington crossing and yodlee around eight fifty five pm this is a dangerous storm other storms will be moving into lehigh and north hampton counties if you are in the path of these storms move indoors to a sturdy building and stay away from windows when it is safe to do so report severe weather to local law enforcement or to the national weather service a severe thunderstorm watch remains in effect until eleven pm tuesday evening for delaware and northeastern maryland and new jersey and eastern pennsylvania a severe thunderstorm watch also remains in effect until midnight wednesday morning for northeast new jersey repeating a severe thunderstorm warning has been issued until ten fifteen pm for the

following counties in pennsylvania box lehigh north hampton. we welcome aaron nate and abby martin two of the two a precocious on the art team at work. who must say it's going to give you a different perspective give me one stock never i'll give you the information you make the decision to me about how breaking this should work it's a revolution of the mind it's revolution ideas and consciousness and frustrated with the system yeah extremely probably just would be described as angry i think i'm a strong enough player single. i know c.n.n. m s n b c news have taken some not slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's close and for the truth and might

think. it's because one full attention and the mainstream media works side by side the joke is actually on here. at our teen years we have a different brain. because the news of the world just is not this funny i'm not laughing dammit i'm not i. got a sense of jeff's well handled stuff that i've got. hello there i'm marinated this is the boss and these are some of the stories that we're tracking for you today. first up well

a very exciting world cup game is on right now between brazil and germany we appreciate you watching a live and first story here on groom bus optimism has returned but what was the price of this is cyclical upswing economics professor michael hudson way then coming right up and anthony randolph that was on the program today he's giving us his libertarian assessment on monetary policy over indebtedness and the financial instability that we just went through an intra day is a big deal edward harris and i are discussing time off the first of our work and what exactly they're actually has on output it all starts right now. with.

our lead story so water now it's no secret that we are living in an increasingly water stressful world and that water resources are becoming an instrument of power for those who have them roughly sixty percent of all fresh water runs within cross border basins and only an estimated forty percent of those basins are governed by some sort of basin agreement basically those upstream hold all the cards well those downstream are the losers now the very scary part however is that our environmental security economic development and political stability or all greatly greatly dependent on the management of the world's watersheds now here's the trillion dollar question though is water a commodity. the commodity now as the demand for water grows and our water infrastructure crumbles the disturbing reality that our world is running out of breath drinkable water becomes more and more apparent and many believe that the problem can only be solved if cash strapped governments came up with angel

investors and those in the private sector however not everyone believes such partnerships will ultimately improve access to those most at risk those being the poor the fear is that for a commodity with limitless demand and sharply diminishing supply markets it is markets are distorted and that could ultimately deprive the needy of one of life's most crucial crucial resources so in the short term it is apologies will suffer to california for example right now residents are being hit with fines for excess water use and businesses such as golf courses and long care centers are seen revenue dry up due to water restrictions now it's a very small example of what will start happening on a more global level and while i know that today this isn't a runaway topic but the issue of fresh water is only going to keep coming up and those in the business of selling fresh water are likely to only get richer whether they be private or public dealing. because.

the us economy has returned but what was the price of this new cyclical upswing yes it's true economic indicators have been improving job numbers look solid tax receipts are up but private debt levels remain high and wage growth remains very very low now on top of all of this the federal reserve might be exacerbating the problem of financial instability by keeping rates low to get a better handle on this i spoke with dr michael hudson the president of the institute for the study of a long term economic trends and a professor of economics at the university of missouri kansas city now i first asked him what he thought about zero rates here's what he had to say. i think it

had a much wider report than that it was an all encompassing report i don't think it was criticizing syria right so much as saying that all of that debt had to be a matter of what even at the cost of depression and what it was advocating wasn't lower rates it was what they call libor reforms that means breaking up labor unions abolishing the workplace controls and essentially doing the opposite of everything the us was created to do in nineteen twenty nine do you think that we're going into the ponzi phase of minsky's financial instability paradigm any time in the next few years what do you think. i think we are emerging from the sea fêtes ah the basis when you essentially keep pushing up prices by borrowing and pulling in new money to make an exponential growth in asset prices and what we're seeing is just

the opposite we're seeing the winding down of the phase that's why the bank for international settlements reports holes that have balance sheet recession meaning it's debt deflation it's time to pay off all the debts that people and governments and economies ran into play the puns. now my colleague edward harrison says this is all about central banks taking on the heavy lifting because policymakers don't like using fiscal policy would you agree with that no the whole intention of the bank for international settlements is to block governments and reducing because the policy it still is very funny a year ago at the end you will meetings of the i.m.f. the i.m.f. finally broke with the european union and the european central bank and said we need to use fiscal policy to revive economies keynesian style the b.o.'s is saying exactly the opposite tighten fiscal policy squeeze out enough money to pay the

creditors and that's exactly the opposite of all of the doctrine that the us was formed to to do to lighten the. germans reparations that in nineteen twenty nine so michael you're actually agreeing with edwards that's kind of what insane now yeah that's right edwards is appointed been pointing to the to the role of debt all along now i was on because as i understand it central banks want real estate prices to remain high so creditors can all collect on their interest payments instead of having to write down unpayable debt so isn't that a central piece of why we're using monetary policy here. yes that's exactly correct but the banks aren't lending more to their mortgage credit they're using it to us speculate they're using it to when third world countries are due to foreign currency arbitrage and can buy bonds so high yielding a company countries and so we're having

a bubble in the junk bond market not real estate. now can you explain how real estate works in terms of land rent and the example of taxes and interest payments for creditors but can you explain it in layman terms because as i understand it so-called real estate investors want to pay all of their rent as interest to creditors so as to minimize their own equity stake maximizing gains from appreciation is that correct that's pretty much right. real estate is worth whatever a bank is going to linda against it so essentially suppose you're an absentee owner it's easiest to understand that way. you look at how much rent a property will yield and you say you go to a bank and you try to bet against other people that are trying to borrow with a bank loan and the owner of the bank loan is the one who's going to pay the most rent the bank is that service to carry the mortgage so whoever will take out the largest mortgage gets to buy the property and as banks loosen the credit carom so

lower the interest rates and the money is even easier credit or simply lie the winners are the people who go into the debt the most and that's what's led the economy into this balance sheet depression it's this leverage now has this whole idea of leveraging up to gain from property prices appreciation relate to the housing bubble. well suppose used to be that people had to put down a homeowner would have to put down thirty percent of their income and they could borrow seventy percent and that limited the price rise. you know how much can be paid but know by two thousand and seven two thousand people could buy.

the national weather service in mount holly new jersey has issued a severe thunderstorm warning for berks county in eastern pennsylvania chester county and southeast pennsylvania until ten pm at eight thirty five pm national weather service doppler radar continued to indicate severe thunderstorms capable of producing winds in excess of seventy miles per hour in addition to large hail numerous power outages have been reported especially in chester county these are dangerous storms if you are in their path move indoors to a sturdy building and stay away from windows when it is safe to do so report severe weather to local law enforcement or to the national weather service a severe thunderstorm watch remains in effect until eleven pm tuesday evening for delaware and northeastern maryland and new jersey and eastern pennsylvania a severe thunderstorm watch also remains in effect until midnight wednesday morning for northeast new jersey repeating

a severe thunderstorm warning has been issued until ten pm for the following counties in pennsylvania brooks and just. individuals able to get much. property but there's not all that much instruction really thinking place or rents are going up and prices. there's a what they're warnings by moonies and by other investors nervous is. prices are likely to go down because banks will lend. now you describe what's happening in these markets is a case of renting a oligarchs extracting runs from the middle classes so is that the right description of how you've been describing us yes can you expand upon that all of that for me the idea of renting. yeah it means a run for you somebody who lives off the other their rents or their income who is passive and. the banks that are really in the positions of landlords

one hundred years ago the banks are get it used to be that the landlords get all the rest of today know that that property is all bought and sold really if you're a donald trump or if you're a real estate investor your motto is rent is for paying interest and so the banks end up with all of the rental value in the form of interest and the landlords are saying well look out we're welling to pay all the rent to the bankers and give them all the and what we want is the capital gain if the price of our property keep going up but right now the price is proper you know. there is no cap the. bleeders or about one sixth of the market one a day there are very. many

of a. national

market or. economic it actually wind up hurting ourselves in the long run. on a term policy environment altering easy birth. regimes which ended both of the one bubble and one with the housing bubble. the last two struggles but what we saw in

the financial crisis two thousand and eight wasn't necessary in money bubble it because. it is bull. as well as the next. debt bubble as well as an equity bubble and we've got stock markets which is higher than otherwise should be but the way that people have a way that fine the wall street has been sort of investing that easy money in a different way than the money was to distribute during the housing bubble so it's going to look different the results of it's going to look different it may not be the same it's not because of the same it's not because of easy money or the two thousand a crisis wasn't because of just easy money but we still might wind up getting pain feeling pain in the exact same way now paul krugman thinks the b. i asked is out to lunch basically and let me read you a quote that he writes now quote what the b.

i asked is arguing is that there is some other appropriate rate defined as a rate sufficiently high to discourage bubbles and that central bank should target this rate even though it is above the selling in natural order or equivalent that the economy should be kept permanently depressed in order to curb the irrational exuberance of investors now is common right. who is not right basically does not worry about sovereign debt and that's a fundamental difference from the b. i says is that policymakers are looking short term so they don't care about indebtedness and so they are not worried about how that my how massive amounts of debt my completely mis allocate capital throughout the economy crewman thinks that we should just be looking short term and doesn't worry about the same way that b. i asked so that fundamental difference is where he's going to sort of push back i disagree with kirkman i think that sovereign debt does influence the economy i think it does influence festers i think it does influence the way capital is

allocated and right now we don't have an economy that's allocating capital towards a robust development of new businesses that are going to be for the twenty first century we're much more focused on how to grow the economy in two thousand and fifteen than we are in thinking about what's necessary for the economy to grow in twenty twenty five and twenty fifty and why are we in this situation where the fed the e.c.b. the bank japan the bank of england and the swiss national bank have policy rates at or near zero and growth just still isn't taking off is is it a case of the wrong tools or are things that bad. well we're in this place because this is how governments decided to respond to the global financial crisis that sort of kicked off in two thousand and seven and supposedly wound up and being in two thousand and nine and policymakers sort of got themselves stuck let's not forget that low who are easy money means that we've got low borrowing costs for governments so there's there's no way that janet yellen isn't considering. the low

borrowing costs for the u.s. government that are related to easy money so i think that what we have is a whole bunch of central banks that essentially find themselves stuck in a position that they put themselves in because they didn't want to just lets financial pain work out misallocated capital in the first place we wanted to try and bridge this gap we wanted to try and get ourselves to fast growing global economy without having to go through the economic pain to get there because we had all this misallocated capital from bubbles that built up in the early part of the last decade and the result has been is that we just created our photo recovery for ourselves and now we have central banks that are stuck in a position where they don't see any way out without troubling their political partners in their in in the governments where the central banks are located and in the financial sectors that they're sort of of patrons. that was anthony randolph

director of economic research at the reason foundation time now for today's big deal. big deal time with edward harris and ed and i are talking about how much you work and what optimal trade off between leisure and productivity is what is the optimal tradeoff i think i got there and we want to get started off with you know germany and germans now you've lived and worked in germany as i understand it and you know can you just talk to me about how many annual days of leave germans tend to get and what their idea of a vacation versus work and time allotted to both is like so in germany or actually in europe in general i think you know you're getting at least four weeks most

places get five including places in like the u.k. and france and so forth but the germans get up to six so they give you thirty days plus ten days of actual vacation holidays you know like christmas and new year's and so forth so we had forty days off but the thing is that you know my general observation when i was in germany is that they're very strict not just about making sure that they have fun on their vacation and take their full forty days but also when they're at work working hard and then when the hour that's it they call it and then that and then they go home what do they call. it. and so you know they work hard and they have a high productivity rate if we take a look at some of the stuff that yeah let's get a comparison here now we have a table of hours worked and you know can you can you kind of germans they work almost four hundred hours less than americans do and that's like working. fifty

working days a year. something i got rid of their activity it's obviously still quite high and i say my friend so what do you make of this you know what accounts for such a huge disparity that we're seeing you know there are a number of things that stand out for me one is the low productivity rates in career and greece the second is the few hours worked in france and germany but the huge number of hours worked in career and then followed by greece and then the united states and finally also the productivity level that's so high in the united states i mean if you put all that together as a composite picture basically what you're seeing is that the u.s. works a lot of hours relative to other countries doesn't get a whole lot of occasion and has huge productivity at the same time i mean it's shocking to me and i have to ask you you know there's a difference between just working a lot and working smart in your opinion having done both you live here you've lived in germany you know what it's like you've lived also in couple other cities and europe what you think is a more efficient way to work even on a personal level and i don't all go anecdotally what i would say is that you know

what will let me back it up and say that you know there was a study that was done it dartmouth you know dartmouth college university study of four or five years ago which showed that the europeans actually worked more than the americans up to. forty years ago and then as time went on they started to work less and they were taking a lot of their wealth gains and in terms of leisure but what we saw over that period of time because of the accumulated capital and sophistication of those markets the level of productivity did not decline significantly so you know france and germany if you look to that last chart had very high productivity levels compared to the united states they were somewhere in the order of ninety to ninety five percent but you know they worked many fewer hours which meant that rather than work more and therefore make more they've decided that you know from

a person. perspective they would much rather have leisure and you know basically the whole. is off in the last month of august you know if you try to drive through france to go to spain which i've done before basically is just like gridlock half the time because everyone is often doing the exact same thing that you're doing something that's terrible idea first and you know another interesting example is korea greece now in terms of hours work they're about the same but chris productivity is significantly lower than greece is yet everyone says that you know the greeks are lazy and that koreans work hard so i want to ask you what's your view are greeks just getting a bad rap here do they really deserve this reputation on some level i think they are getting about you know it was really interesting. you know on the credit right down so i released a stat from this it was actually mark chandler who came up with this and everyone was like no it can't be true and they were making all sorts of reasons why it isn't true but the fact of the matter is the greeks do work long hours but you know the

productivity levels are not the silly indicative of they're not working while they're at work but rather it has something to do with the capital investment within that country and in terms of being able to how much predict productive investment you've done in order to make sure that those hours worked to the g.d.p. of the country now let's quickly talk about the u.s. the u.s. doesn't have any statutory minimum annual leave but a study of employees found that full time workers and an average of sixteen days off and we work hard but we're also the most productive we're also the most productive but compared to france or germany it's not a huge amount so are we're trading time for money what's your view here we have a ten second my view yes very much so i think that's become a part of the culture to the point where you think i have to work hard if i don't work hard and you know take almost less vacation that i do that i'm not a good worker and most important thing in life is time i should think so but we're out of it that's a hope for now you can we love hearing from you please check out a recent facebook. dotcoms us we must r t and you can also tweet us at edward and

promote us here who must thank you for watching on c.n.n. . live on your arm and a lot of these policies i think you know the. pleasure to have you with us here on t.v. today i roll researcher.

on larry king nods and i think we've modified organisms there pervasively in our food supply although they say for us to eat every serious science academy in the world all skin that genetically engineered foods are just stated as fluids that are produced can vent about the zone or does and they were professes that went out and said there was nothing wrong with tobacco smoke and then we later found out that it calls there have been countless studies about g.m.o. foods and the idea that you know certain animals have had very adverse effects to g.m.o. foods i mean honestly that is the biggest bunch of nonsense not ever who i think you're in tears are saying is not fat here plus if i had been sick won't eat it and now boeing we have you should be your friend i mean all next on larry king now.