you know universal basic income when you have an economy around the world that rewards imagination and monetizes free thought free thought free movement of capital and all those intermediary forces go out of business a lot of bankers lose their jobs a lot of politicians lose their job the nation state collapses as we know it and people are free of their money because right now money is a lot freer than people. i'm lindsey france is a boom box right thing around the world from washington d.c. tonight federal reserve chair janet yellen completes her second day of testimony on capitol hill we'll see how markets reacted to her views on the state of inflation and the fed's beige book is out my guest danielle de martino booth says it's the poorest showing in a long time and she tells us why she thinks so and it's

a perfect storm in canada the governor of the bank of canada says the economy is walking a tight rope so proceed with caution stand by right now. before the senate banking committee today federal reserve chair janet yellen said she believes the risks concerning inflation are two sided stressing that price gains could both accelerate and slowdown that's appears to be an effort to adjust views in financial markets yesterday in her comments before the house financial services committee yellen discussed the possibility that a recent slowdown in inflation could persist. longer than the fed expects that

triggered a big market rally with the dow jones industrial average heading a record high investors saw the remarks as a signal that the fed which has raised interest rates three times since december might slow the pace of future interest rate increases today's testimony coupled with upbeat data and earnings report to do with the end of the week and world shares hit a fourth all time high in less than thirty days. beijing and lisbon are set to join forces in canada's belt and road initiative the global infrastructure project was launched in twenty thirty by chinese president xi jinping if successful it will link asia africa and europe by land and sea thereby linking them by money and leverage now portugal has entered the fray bringing the advantage of its geographic location the initiative is part of its got two components the silk road economic belt and the twenty first century maritime silk road they will cover dozens of

countries more than sixty percent of the world's population and more than one third of global economic output portugal is said to deepen cooperation in the sectors of new energy agriculture and infrastructure while of course welcoming chinese business investment with open arms. when it comes to brazil the political drama is seemingly endless but this time around we're dealing with former members of office instead of current leaders who. is here in the studio with more on that for us bianca who's in trouble now we are now talking about lula who is the former president of brazil and was just found guilty of charges relating to these seemingly never and ending petro brust scandal we as in a little led to silva known simply as lula was president of brazil between two thousand and three and two thousand and ten during his presidency he was credited

for thrusting brazil onto the world stage and was considered one of the most popular leaders to ever run the country but that legacy separate a setback on wednesday when lewis found guilty of corruption and money laundering prosecutors allege louis illegally accepted one point one million dollars from a construction company in order to purchase a beach front property in exchange that company was able to sign contracts with petro bras for sale state run oil corporation he faces up to nine and a half years in prison though the judge ruled he could remain free pending an appeal which his lawyers are definitely preparing for what. the sentence delivered in this scenario with proof of innocence and delivered by a judge who clearly lost his impartiality a long time ago reveals an illegitimate process which shows once again that this process was driven by political objectives and it's not just lula and his legal

team that say the charges are and ruling are politically motivated people took to the streets of sao paolo to protest the decision holding signs reading lula resist so his presidential legacy may not have been ruined just yet but it could certainly damage his future aspirations it's been. widely known that he was planning to run for president again next year but according to brazilian law he'd be ineligible to run for office for twice as long as his sentence which means he couldn't run until he's ninety years old news of lula sentence only complicates the political and economic scandals plaguing brazil just last month the country's current president was charged with corruption days after his approval rating dropped to seven percent . a lot of people when they hear about this name this country they think of operation car wash yes does this have anything to do with oh yes it is definitely related to operation car wash was an investigation launched into different businesses and farms and political leaders that work used of making deals with

petro bras in exchange for bribes and then that money would go into political slush funds or go directly into the certain party leaders and basically since this investigation has happened we saw dilma rousseff who was the former president impeached on corruption charges the current president michel to mare was just accused of corruption and then of course now lula who was in office before doma just got found not earth found guilty of corruption charges so there's a lot of corruption that has allegedly occurred throughout brazil and it's just a never and i guess you know that we entered it leaders are going to trend no there's no try and there he's got an appeal he could technically still run for president but what kind of a law is that is that while i yes i mean before he yes while he's out because he's out free and till he does appeal so technically by the time next year comes an election season starts he could run that would obviously be a really big risk for the workers' party because if he if the appeal doesn't go his

way then they would essentially have no real candidate but you can definitely tell based on their response to the ruling that they may have very well been planning to have him as their their candidate so when the the country comes out and says you know he is he is guilty because he's corrupt in the lawyers. come out and say no it's not i would love to be on a corner in brazil watching the newspaper headlines after his argument with us thank you so much. all our bills are going off in canada and the governor of that country's national bank is urging caution as the economy walks a very tight rope two thousand hyla much enter on time he is following this story for us alex some would say that there is a perfect storm brewing in canada an economy could hit a major major problem what are we hearing from the experts on this is this where i'm supposed to assert talking i can't hear you from this side but let's let's talk about those yeah it was so yeah alarm bells going off definitely interest rates were hiked here in canada by point two five percent from point five to point seven

five just yesterday so as to seeing that jump i mean this is how the first time in seven years we've been pretty steady across the board and now this for some people it seems like good news or if you're in the money business the canadian dollar jumped up from seventy seven and something cents us to nearly seventy nine cents today so in that way yeah that could be a positive what people who hold mortgages well that's a very different story because the banks jumped on this right off the bat and they took their rates from their prime lending rate from two point seven to two point nine five percent what we might see and then it would seem that the dollar has jumped a little bit is the predictions are that in october we might see another rate hike that will be likened to this one and of course some people possibly in trouble with their mortgages a more expensive of course but let's go to a couple of charge here really interesting stuff give you a bit of a breakdown of what's going on first we're going to go to a housing chart and you can see real housing prices in the u.s.

versus canada from one thousand nine hundred five to two thousand and sixteen this baby speaks for itself a look at those housing prices spike you know this is this is something that has been going on we've been talking about the bubble in canada forever well things have slowed down you don't have to be an economist to know that all you have to do is live in a city like toronto. houses were flipping like crazy just a year ago or even in spring time this year and that has basically stopped thousands of cars that are on the market now for a couple of months at the time and some people have just taken their houses off the market so this has slowed down to what kind of seems like normal really but when you break it down you know everybody's expected go up and up and up of course for the investors in real estate some of them might take a loss in the end but for now it just looks like possibly a stabilization but definitely not the growth that you saw in the past now also another judge chart which is really important here the percent of labor force employment in construction that's goes hand in hand with housing if the housing market slows down so does construction and look canada has doubled the amount of

people that are in the housing construction business than the states you guys have about three point five percent we're at seven percent and now this third charge which are it's volumes this is the big want to hear the household debt to income while americans learned a lesson back in two thousand and eight you guys went down with that and we just went up it's so troubled times a bite of toss the top the u.s. a bit of a lesson canada really didn't go through that problem that you guys did back in two thousand and eight and now that's an issue the canadians are one of the worst countries when it comes to household debt and that could spell trouble in the long run wow those are some shocking numbers our time to take heed canada thank you so much for joining us on this alex highlights joining us from toronto thank you. time now for a quick break stick around because when we get back my guest tonight has a look at the new baseball out from the fed and russian internet search engine giant yandex and it were a joining forces as they go to break here the numbers of the puzzle.

that are up here. much as you. get it up here. you. hate. being that doesn't mean i'll just tell you the other side of the knock on them and . by then i got a session on the nod that they know. by then is

a shift the balance. to an audience that in most is going on want. certainly not so with. them and most of it was revealed to the pope multiple injuries among compliment to soak them to yourself you hold the book but it shows your your mars on the phone to the book and if you can book a people suitable for the say yes but i don't know if it's a book of morals and what in my. own image of nothing but i have a tough allowed me on a path as you somethin that. must see. on the left side

the. here's what people have been saying about rejected and. just pull on. the only show i go out of my way to you know some really packs a punch. is the john oliver of our two year marriage is doing the same we are apparently better than. the c. people you've never heard of low or down to the next president of the world so very . seriously send us an e-mail.

rush search engine giant yandex operates a ride share service in the country with about twice the business of and now it's set to absorb itself yet next taxi and well effectively become one new operator in russia also pressure on our media fellow ruth and kazakstan again deck's will own fifty nine percent of the operation with goober owning thirty seven percent and employees taking the remainder its value will be just over three point seven billion dollars with goober investing two hundred twenty five million dollars in the new company and yandex putting in one hundred million according to yandex and who are the two are on track to complete thirty five million rides a month and operate in one hundred twenty seven cities shares in yandex jumped fifteen percent on the moscow stock exchange on the news of this deal which is set to close near the end of the year. and millions of customers who use the u.s. communications giant for

a rise in customer service support center within the last six months may have had personal details exposed and then left online for the better part of a month the company says that customers names street addresses e-mail addresses and even pins may have ended up on an incorrectly configured cloud server maintained by a third party at the same time dries and states that the information was caught by security workers before it could end up in the wrong hands cyber security firm up guard says one of its researchers discovered the leak on june eighth rise and was then told five days later and it was fixed on june twenty second according to a guard around fourteen million customers may have been exposed while verizon puts the number around six million. just as federal reserve chair janet yellen began her testimony before lawmakers

this week the beige book was released it details overall economic health in each of the districts that houses a federal reserve bank we've got some jobs workers and housing numbers to get to please welcome danielle de martino booth founder of money strong and author of the wonderful book fed up an insider's take on why the federal reserve is bad for america you say this is the weakest beige book we've seen since last year you got a couple of very pointed reasons why and lightness well kansas city was actually the only district out of the twelve districts across the nation to report that activity had increased economic activity had increased since the last time the fed met otherwise all other eleven districts were either flat to down half the districts noted that slowing car sales have become problematic and this is a case a strange case actually of the anecdotal data. now catching up to the hard data but the fed does tend to spin the beige book fairly positively as

a habit i can tell you that as a former insider all right well let's talk about janet yellen obviously testifying over over two eight days yesterday she talked for two hours praising the strength of job growth numbers she went on to say the fed may not raise rates. it's done so twice this year so far a lot of people had their hopes up but the fact the fed's ability to start reducing its current bond holdings in the fall. look gallons testimony yesterday was in one word confusing to me she said she used the word gradual so many times and yet as you just said she spoke about a strengthening job market well where is the wage growth is my question to her and if the job market is so strong why are there ratcheting back expectations for further rate hikes this year to add on to the to the confusion she was very aggressive in her verbiage about beginning to shrink the balance sheet which is quantitative tightening and it's more in

a form of tightening in my opinion than hiking rates is and she said that she wants to get that started relatively quickly so she was truly speaking out of both sides of her mouth yesterday very confusing testimony we're getting nothing specific as of yet that most people would like to have to look at and say good this is a good chunk of information it's operable the beige book reported that we are seeing a demand for manufacturing and non financial services but by all accounts there still seems to be a shortage of workers the fed in philadelphia reported they saw more job hopping than actual retentions what does this tell us about the current job market well we did see the quits rate tick up in another recent report and that shows that there is a higher degree of confidence among workers who have jobs and again it is this skills mismatch. that is one of the outgrowths of the great financial crisis and if you

are a skilled worker today you can't find work you can hop from job to job to job and you can command a decent wage the flip side of it is the retail sector as we know is is in the middle of a bath these people do not have transferable skills if they've been working in retail their entire career and we know that part time employment and that people working two jobs that these numbers remain unusually high and again that's a depressant on wage gains so you really do have a barbell style of of the job market you've got the haves and you've really got the have nots as well absolutely well inflation is still below fed's target of two percent even though we're seeing unemployment numbers starting to sort of fall and the fed has raised interest rates as we've talked about three times in the last year should this be a call to slow or some pozen other hikes some say yes some say no you know i really do wish that they would have started earlier and already gotten to two percent it

might be heretical for me just makes it make such a statement i don't think the fed needs to tighten any more i think that there are enough indicators that suggest that the economy is slowing that that the fed should take their their foot off the accelerator maybe tap the brake that being said i really don't think that the fed should lower interest rates even if we go into a recession lindsey zero interest rate policy has created a lot of the distortions that we see in the economy today it's been a huge contributor to the low quality of jobs that have been created as companies have stopped investing in plants and equipment and innovation and just you know borrowed money and bought shares which maximize shareholder value and it takes advantage of federal reserve zero interest rate policy but as we know it does very little to spur decent economic growth and strong job gains. well let's talk about these districts that report on the base but more than half of them are reporting.

noting actually in their reports on declines and auto sales obviously it's been talked about a lot when we talk about consumer spending it's something we we want all the time what kind of collateral damage can we expect for the auto industry just going off of this current report you know they say that manufacturing only employees a certain percentage eleven twelve percent of the u.s. workforce and that we really should only be paying attention to the services economy with all due deference to that conventional wisdom i think it's very important to note that the auto industry in some way shape or form directly indirectly affects five percent of all working americans today the factory jobs that are that have been associated with the massive rebound in the auto sector which few people remember was bailed out but the jobs that will be lost going forward as we move simply from dealers getting rid of salesmen because they don't have as much sales volume once you start to cut into those high paying factory jobs there will be as you suggest collateral damage to the overall economy let's talk

about some of the retail jobs that you and i touched on earlier we talked about as you said retail being a bloodbath i've spoken with people who say analysts who say that the way we measure consumer spending right now just isn't correct we're not looking at it right because we're measuring. basically retail wrong that we measure you know brick and mortar or amazon or wal-mart under certain headings but they're absorbing so many companies at such a fast rate that what these companies actually sell is changing so much and people aren't going to stores they're going online it's sort of an antiquated measurement i like to get your take on that well look i think that every single statistic is. needs to be dynamic in its make up i would certainly agree that the way we shop has changed dramatically and i welcome any new ways. measuring consumption i certainly welcome the ancillary to that which is which is

a new way of measuring inflation which the fed is obviously getting wrong once again but even if theoretically consumption was stronger than what it is my only counter to that would be why are consumer bankruptcies ticking up why did capital one announce that credit card charge off rate was going to increase which which made the fed pause in terms of giving them a green light during the stress tests why are auto defaults going up why are f.h.a. mortgage defaults going up clearly there is some kind of distress signal emanating from the household sector and i think that that will have an impact on consumption regardless of how it's measured what do you think about some of the stuff she said yesterday some of what we talked about today as you say there is there's not a lot to grab on to as far as specifics goes talking about the dual risk of inflation prices rising too slowly price x. prize excel are waiting to quickly. it seems to wants to you know model modify the

impacts of her comments. before you know what she said on wednesday today it's sort of modifying what she said as you know what do you think look i wish that she would get to the heart of the matter i wish that she would get to certain types of price inflation that are absolutely crippling households the rate of rental growth the rate of co-payments insurance premiums those types of things you know what the chair is not recognizing is that there is progress in this world there will be declines in mobile phone cell rates there will be five or six of these instances in any given year that will be an active drag on inflation but at the same time the cost of necessities the cost of living even the cost of food right now is rising appreciably and i think that that needs to have been acknowledged by the chair instead of just insisting that job growth has remained robust because all she is doing is looking at a headline figure that really tells us so very little or no the question real quick

before we go there is talk of janet yellen not being the chair of the fed in just a few months of other people being juggled around as possible replacements do you think she'll stay on. well you just saw me smile lindsey so i'm going to say that i hope not. and that that with all due deference to janet yellen and she is a brilliant woman but i would certainly prefer to see a changing of the guard at this juncture and really a changing of the guard for the last thirty years in the culture that alan greenspan started at the fed i welcome anybody who is not an academic ph d. on to the sea with open arms if we hear about developments in that area we're going to bring you on like a display thank you so much for telling us how you fill out this and giving us all this great information daniel de martino both founder of money strong and author of fed up an insider's take on why the federal reserve is bad for america. a man shows

up to fix an a.t.m. and winds up completely trapped inside corpus christi texas a contractor was changing the lock to a bank of america room that leads to the back of the a.t.m. he became trapped when you couldn't let himself out of that room because he didn't have a key card on him on top of that he was unable to notify bank employees for help on top of that he didn't have his cell phone on him so then he got creative and suddenly customers began to receive notes from the cash slot begging for help and asking that they call his boss the only problem was that the majority of them thought it was a joke so when one finally did call the number on the help note a police officer arrived and detected a voice coming from inside the machine only then did a kick down the back room door runner wide open and the man was let out from inside the a.t.m. but guess what he has not been identified and i doubt he will be that's all for now everybody thanks for joining us check out the show on youtube dot com slash food us

r t thanks for watching the next. i've observed events of the past few years in the us myself several times what's going on in my native germany. really refugees. u.s. intelligence agencies it discriminately listening you don't judge the citizens of the government. and once again. so. many politicians from various political parties and yes independent experts and journalists are left to to understand just how independent germany really when it comes to decision making. whether it acts on its own national interests ok resound someone else will.

you don't need universal basic income when you have an economy around the world that rewards imagination and monetizes free thought free thought free movement of capital and all those intermediary forces go out of business a lot of bankers lose their jobs a lot of politicians lose their job the nation state collapses as we know it and people are as free as their money because right now money is a lot freer than people. do colin is still exist. ricos treated as one of her annoying co-equals and really throw them a can only on the portal three cool. little can i do i want to see. the island is

controlled by the us government and some puerto rican screw even dependents. getting out on. either way but i mean. we're taking again waiting in the last year obviously. still many do wish to join the us hundreds more leave every day. but i'm a long way from india. beings. with the country at a crossroads anger of the island is on the rise. dimension. six thirty five if you have a career and career involves using your i phone in your computer and things like that in an office. perhaps you start getting headaches a circular to have to stop doing all of this and this is how you lose the minutes must be frightened. my world became smaller and smaller and smaller until i ended

up living in an ox. magnetic field on the field in my head. it's like a real heart my skin and the wireless access point you're just continues on with our students in the schools. we are just continually bathing our citizens in this microwave radiation it is certainly electro small and it's getting worse. i.

believe. the headlines on our international. one year since the deadly terror attack in a french magazine comes under fire for publishing images. and donald trump is on day two of his visit to paris. to have already overcome some of the key differences . a new video allegedly showing us helicopters over islamic state stronghold in syria. as washington confirm its forces are now operating inside the city the u.s. describes the mission there as quote advise assist and the company. of a thirteen year old palestinian boy has lost his eye off the big.