what you have for breakfast yesterday why would you put those through. your wife. now i've had to do due to one or two more. people have got to know whether or not fair present or support american people deserve to get firsts at this point does it may must guard against the military industrial complex or we shall never in the cold. war know that. yes we do what we love with a. future because of the sacred. i've got to do just that you're watching all of. us.

and lindsay francis is being bused broadcasting around the world from washington d.c. tonight master card business to business face is set to take advantage of the quiet harry block technology that will cut across the middle man and tear down those borders of cross border transactions and this second fortune five hundred company to do so in just days also german carmaker b.m.w. has confirmed its munich offices for the subject of an unannounced inspection by antitrust regulators and we'll talk about the cone zone president trump's director of the national economic council gary collins says clearing houses could be

a risk to our financial system is he right unpack it for you standby start right. forum wells fargo's foreign exchange bankers are fired as both regulators and the company look into shady practices in the investment banking arm wells fargo is no stranger to lawsuits arbitration and committee hearings recently the bank's new c.e.o. was questioned on capitol hill over a separate seven year long sales practice scandal which saw employees open customer accounts without their knowledge in order to meet sales targets it was followed by the dismissal of the former c.e.o. and some of its executives the retail banking arm is also in trouble for setting up

an authorized bill pay programs for customers and needless car insurance. the senate has narrowly backed a four trillion dollars budget plan it's. sets the stage for the first major tax reform package in three decades the republican party vows to push through a bill before the end of the year and that message were verbal aerated through wall street today the dow jones industrial average gained point seven one percent closing at twenty three thousand three hundred twenty eight the s. and p. five hundred index rose point five one percent to close it two thousand five hundred seventy five and forty nine cents. and strong reaction to a key piece of anticipated reform put forward by the white house a fifteen percent cut in corporate tax this takes it from thirty five percent all the way down to twenty percent. and it paved the way for the first overhaul in three decades as i mentioned come questions now whether the ruling party on the

hell can get it done the devil is in the details here to answer that is conservative t.v. and radio host steve malzberg we've got to go to you and ask can the republicans actually pull this off. i love the numbers from wall street the trump bump continue and no no and inside look what they did yesterday in the senate they actually you know coalesce around each other as a party the only no vote was rand paul who didn't like many things including the fact that they increased defense spending in the budget but this vote now enables them to pass tax reform as you said with fifty one votes to reconciliation and they also had an amendment in there which is very important originally we thought the senate would pass their budget the house already did and they'd have to go to committee and come up with a budget know now the house could vote on this senate bill and they plan to do so in the near future the question is first and foremost will this budget pass because

you have a lot of you know conservatives who are very very strict when it comes to increasing the budget this this in and increasing the deficit in this increases the deficit by one point five trillion dollars over ten years so that's step number one getting this budget through and then going back and working on tax reform and we've talked about the problems we talked about how republicans from states like california new york where property taxes very very high their constituents would lose the right along with everybody else in the country to deduct their property tax and state local taxes. from their income taxes now it seems like they're backing off that so we still haven't seen a five final finished product and we don't know what it's going to contain we had a lot of trial balloons over the past few weeks but we don't know when push comes to shove what exactly is going to be in there and let's talk about one of the problems you pointed out senator rand paul from kentucky the final vote fifty one

forty nine he contributed to that he's a deficit hawk. what do you what do you think about him and the problems he may pose for the party with tax reform yeah well you know it's again it's not just him . john mccain was happy with this budget but that doesn't mean that john mccain is going to vote for tax reform he might still love to stick it to donald trump and i don't put that past him susan collins might find something wrong when push comes to shove in the bill is in its final piece of legislation so you're going to have people in the senate where every single republican vote counts as you alluded to and in the house you know what will the financial conservatives the the deficit hawks what will they say when they see it see that this is not going to be deficit neutral that it will add to the deficit over ten years a trillion and a half dollars and what will that guy said certain people who do certain deductions

that affects their constituents what will they do i mean this is all the unknown but i'd like to believe that for once under donald trump they will say we have to get this done nothing is perfect let's do it right actually getting something finished let's talk though about this tax reform these brackets paul ryan says they're going to go ahead with nearly forty percent tax or a fourth tax bracket for the highest earners is that going to gain them some traction. i mean they're not going to get it for a democratic vote period so i don't see how that's going to gain him traction you're penalizing the wealthy i mean i don't understand the whole concept i really don't i think they're trying to be like they're trying to say look at us we're going against the rich like us the media will never like you the left will never like you don't alienate your base don't alienate the supporters i don't see the purpose and it's an airplane trouble for bringing it up and saying i'll go along with that if congress passes that i just think it's

a ridiculous feature of the bill do you think that there's anything the president can do that's going to really gum up the works on congress getting this done on the g.o.p. really hitting a home run as i mentioned earlier you mean going up the works getting in the way of it. no i mean what no i mean the people that he sold so lashes back at after they lash out at him he's done that we know what the problem people are in the senate the house they're sincere they're in their heart they have their principles but it's time for the republicans to get this done and have a landmark piece of legislation that everybody will like but get rid of punishing the rich that's ridiculous thank you so much for your time and your input on this conservative t.v. and radio host steve malzberg thank you thank you. it's been a tricky week for gold it had a two week low following the senate passage i think budget framework it's resting now in one thousand two hundred eighty and fifty cents the lowest since october

sixth where do we go from here question the man to tell us peter schiff c.e.o. of euro pacific capital joins us now. look at a bit wobbly not looking too good going into the weekend it was suggested that donald trump may be favoring economist john taylor for the federal reserve chair i bring that up because some people say that might have a you know indicate some bad things for the price of gold moving forward. well first of all i doubt that but taylor's a long shot i think there was some rumors because trump had a favorable meeting supposedly with taylor but i don't think donald trump would take a chance on someone like taylor i think he wants somebody who's going to be more of a team player who's going to be more actively involved in helping to prop up the stock market especially now that donald trump has basically attached his presidency to the fate of the stock market so he's not going to take a chance on a wild card where rates might go up you want someone to keep rates down that's

willing to do another round of quantitative easing of that's what it takes and so i don't think john taylor says guy. let's talk about economist harry dent saying that we could see falling prices as low as seven hundred big companies like goldman sachs will still prefer and he would maintain a positive or a negative outlook on gold prices in the near future based on what we've seen from october sixth now. yeah well harry has been a bear on goal for a long time and you know actually seven hundred is a higher target i mean for a while you had a target of two or three hundred so you had to adjust that upwards but you know i think i think here is wrong i think you know there's a lot of things that harry says that i agree with but his price target on gold is not one of them i think he has too much confidence in the u.s. dollar and doesn't really understand the nature of money and the fact that of all the things that harry believes are going to happen happen that that is very bearish for the dollar because the federal reserve is going to print

a lot of money he's looking for massive deflation but i don't think the fed is going to allow that to happen they have the ability to stop that by printing money and that's exactly what they're going to do you know early before i got on you were talking about these tax cuts and one of the reasons that gold has gone down a little bit recently is the markets are anticipating the tax cut and that's also been a positive for the dollar but what traders don't seem to understand is these tax cuts are very bearish for the dollar and they are bullish for gold because all that's happening is the government will be replacing tax revenue with debt right so we're not cutting the size of government government's going to keep getting bigger and bigger and bigger but what we're going to do is pay for that bigger government by issuing more debt and that means more money printing it means board flashin and ultimately that's a lot more expensive it's more expensive that pay for government by borrowing than by taxing and so this is going to be

a big negative for the dollar because we're debasing the dollar in order to cut taxes so ultimately this is going to be a by the room. the fact if we get these tax cuts the dollar is going down not up and gold is going to go way up and down let's say we face these said rate hike in december like a lot of people are talking about the dollar gaining strength on that. not really i mean the fed has been raising rates since december of two thousand and fifteen and the dollar is lower today than it was then gold is higher now than it was then so it was the anticipation of rate hikes that helped the dollar by the time they actually started hiking rates the dollar has gone the other way and i think the same thing is going to happen this time i think the dollar has caught a bit on the anticipation of another hike but i think if we get one they're going to sell the fact and the dollar down friend i think is firmly in place i think you have tremendous dollar bullishness when the year began the trade was very crowded

and very wrong and i think this is the beginning or this is the first year of what is going to be a major major dollar bear market that is going to take the dollar to a new all time record lows and in the process and gold to do all time record highs peter says pacific capital thank you you. thank. time now for a quick break but stick around because when we return we've got another and take trust case related to a giant automaker in the european union and clearing houses are they a danger to the financial health of the united states president trance director of the national economic council says yes my guest says now as we go to break here are the numbers of the cousins that.

i think the average viewer just after watching a couple of segments understands that we're telling stories there are critics can't tell and you know why because their advertisers won't let them. in order to create change you have to be honest you have to tell the truth the parties are able to do that every story is built on going after the back story to what's really happening out there to the american what's happening when a corporation makes a pharmaceutical chills people when a company in the environmental business in so polluting a river that causes cancer and other illnesses they put all the health risk all the dangers out to the american public those are stories that we tell every weekend you know want they're working. for decades the american middle class has been railroaded by washington politics.

big body corporate that's thrown out a lot of boys that's how it is in the new culture in this country now that's where i come in. i'm a troll i've done are to you america i'll make sure you don't get a railroad you'll get the straight talk in the straight. question. mastercard is greenlighted the use of its in-house blog chain technology and its business to business space to address transparency and cost challenges in cross border payments the transactions one have to run through several foreign banks so

cutting out the middleman means cutting out those fees master card has invested in digital currency group which builds and seeds block chain technology and currency for tech related companies mastercard may have filed thirty five patents in block chain but of fortune five hundred companies facilitating block chain payments mastercard arrived on the scene second i.b.m. beat it by days the south pacific is its focus as it handles payments over its proprietary block chain between banks but there's a difference i.b.m. uses a virtual currency called lumines to transmit money master card accept payments in traditional local money. and gary cohn president trumps director of the national economic council says clearing houses could be a systemic risk these clearing houses which hold reserves to ensure that all traders remain solvent even if there's a failure of several traders have been growing as volumes have increase cohen says

that clearing houses have probably expanded beyond the limits of their useful existence i asked the man who wrote many of the clearing house rules former us trading commissioner bart chilton for his take on whether cohn has a point about clearing houses being the new systemic risk. i don't think so lindsay i mean these things have existed for decades and and the clearing houses again i mean you described it but there are intermediaries so you get traders on both sides and if somebody loses a bet then you want to make sure that that person pays up if the that that person about energy goes bust then the clearing house holds enough reserve to ensure that everybody on the other side of the bust trader position is paid it's worked pretty well over the years and my old agency and i talk with them all the time you know they say the clearing houses are strong and robust and serving a useful mission we as you noted wrote some of the new trading house rules clearing

house rules rather as a result of dodd frank and we ensured that the margin that is the amount of money that is held back in these reserves was really robust and in fact it's it's a higher level of margin than any of the clearing houses anyplace else in the world you know they hold three four five billion dollars a day these clearing houses to ensure that there's an adequate reserve so i don't think he has a point it was really curious actually that he talked about this well we have to talk about the treasury earlier this month we've got a report out saying that you know they need to call for a greater regulations clearing houses and given the centralization of the risk that was cited as a reason are there more regulations that are needed in this area are we kind of going to go this is like puts me in such a weird space because i'm a guy that's thought that regulations are needed over the years and here we have you know a guy that's working for the president who wants to repeal does frank and part of

the treasury port says just in this once place that a clearing house regulations are needed more but no i don't think they're needed so mark this day in history you know bart chilton said. more regulations are not needed in this area i mean there are probably some things they can do to fine tune whether or not they need things going forward i've said before that these all need to be living breathing rules and you know people need to look at what's happening and look around the corner in the future but. i don't think more regulations are needed for clearing houses lindsay ok well let's talk about dodd frank. required federal reserve to do these stress tests for certain financial and it is are there similar types of stress tests for clearing houses well there are a good question not a lot of people know everybody knows about these systemically important financial institutions the cities they call them and those cities are the large investment

banks and a couple of insurance companies remember it was a big problem over with in the financial crisis so they are required to do these stress tests and there are clearinghouse stress tests we call them something else we call them resolution and recovery test and they're done all the time i mean they they they do big test they did too in the last couple years but our regulations the old our as a c.n.c. seaguy required that those are up to date every single day and so there are stress tests for clearing houses they have gotten larger so i understand that people are saying hey they're pretty big but i don't know what the alternative is you know some of these large investment banks were they don't necessarily like the fact that all of their money is being held back in margin they think hey we're strong enough by ourselves and you know us alone leave us alone let us take on the

risk ourselves we're a big bank and so they don't like the clearing houses right to some extent so maybe that's where mr cohen is coming from but sort of miffed me quite ok what would you you say it's pretty clear cut. that they're valuable for the financial system we need them why is carrie kahn saying that they could be such a risk which have outlived which of outlived their usefulness i mean you know you're coming from what's his reasoning behind i've been really trying to get it off to us i've been trying to figure this for a while several days lindsey and i can't get into the fellow's head. so let me say what the best i could come up with. and before i say it let me just i'm really glad he's there i think he's one of the super sane guys and he's needed for the financial system you know took a big salary cut to go into government and so you know kudos to him and i am glad that he is in the administration doing what he's going to do that said back in the

day when he was c.e.o. of a large investment bank goldman sachs two thousand six seven and eight i sure wish he would have told us then that is a big problem with the investment banks taking all these enormous risks on exotic over the counter to write like credit default swaps. so and if he had checked with my former agency to see f.t.c. he would have told them no don't go there that's you know everything's fine there but i think what happened this took place he's on a panel at one of these association meeting and you're looking for something to say you know been there done that and he starts talking about systemic risk because that's what you know federal reserve chair's do and he's being considered for that he said no well you would think no it remains to be seeing alien air but anyway the bottom line is i think it was just an off the cuff comment i think was a little cavalier i hope that you know some of the president a little cavalier i hope is

a little cavalier and maybe none of the president's shoot from the hip style is rubbing off on mr cohen i don't think you know i think this is a one off i think he'll check with the agency and realize that everything's fine on the clearing houses but it was a little bit worrisome and maybe there's something to do with the fed chair thing and head back how little bit on this who knows it also coincides with president trump possibly interviewing janet yellen for the fed chair job there's been a lot of talk over in recent months about will he won't he will she won't she her term expires as we know in february if you're a betting man what do you think. what would you bet on her taking it or even receiving the offer well new guy garrick on like mr cohen i think the chair yellen has done a really good job but she has the distinction which i think the president trump doesn't like of being an obama person and he seems to like you to dislike anything anything tangible obama and so i think that's a negative for her and she has said that regulations that existing regulations are

important so look if tax reform were to somehow miraculously pass this year and you know what i think about that not an alley but if it did gary cohen could write his own ticket and be the fed chair i think. jill will have to see but i think it's probably going to go to gary cone or somebody else even though my personal preference is that joe stays there because i think she's been doing a great job with monetary policy over the years i think probably there's not going to be a lot of love from the president the given word from what she could and that's true and less tax reform goes through kerik on pulls a rabbit out of a hat and then as you said right on take at look we know you're going to hong kong next week keynote speech for the tech convention their big issues right now we've talked about it a ton on the show can't wait to hear that of course we'll be talking to you from hong kong thank you so much for coming in on this former u.s. attorney commissioner thanks. ever since news of volkswagens diesel scandal broke

germany's auto industry has been struggling to get back to normal and it looks like getting there could become even more difficult bianca for she has more on that for us on friday the legislative body revealed that it's looking into yet another antitrust case in the automotive industry in a press release the european commission said it recently conducted in unannounced inspection at an unnamed car manufacturer in germany officials said the inspection is related to commission concerns that several german car manufacturers have violated antitrust rules that prohibit cartels and restrictive business practices the commission said the inspections are a preliminary step and that there is no deadline to complete the inquiry as of now the press release didn't name names but b.m.w. confirmed its munich headquarters were raided and lurk knowledge on friday that itself reported to the commission and applied for leniency this comes three months after a report in germany's der spiegel magazine that alleged collusion between b.m.w.

dimler volkswagen porsche and the report suggested all five auto company excluded on prices suppliers and strategy since the one nine hundred ninety s. if it's true. it could be the biggest antitrust case in the history it could also cost the automakers a lot in penalties following the diesel gate scandal in two thousand and fifteen volkswagen paid tens of billions of euros in fines globally and also profits dropped nearly twenty percent and was sued dozens of times this time around we could see that happen simultaneously to all of them except for di miller as long as they cooperate with you investigators. as long as it cooperates that means i'm in the clear that i mean as of now that's what it looks like because the e.u. has a leniency program that allows companies to dodge fines if they are the first to report on whatever illegal activities here ok yes all right there's the snitch so they're

fine which is funny because volkswagen tried to beat them to it but dialer got to you at their word is first that's why so agonise yet again in another very scandalous problem but again it doesn't fully protect them from everything if you look at what happened to volkswagen in two thousand and fifteen they had billions and fines were terrible but on top of that they also had to pad of pocket to replace all of the cheap devices in the cars to pay for legal fees they were sued of course and then their revenue dropped their profits drop stock prices and everything so it certainly doesn't protect them from everything and right now the investigation looks to be in the very early stages so right now john will expire and because they were the one that reported this but for all we know a loophole could pop up and they might have to pay something have they actually spoken publicly or issued any real information for us they have not so the only people that have spoken publicly are dying learned b.m.w. because they acknowledge that there are there were investigated or they were the ones to report this obviously i think

a lot of people are eager to hear what volkswagen has to say since they have a very extensive background in car scandals but just earlier this week on thursday they volkswagen was in the news for another reason because their c.e.o. took a shot at tesla. for all the recent layoffs that they've had this. is saying you know this is a company and thought it could step to test because of massive layoffs in the light of what. i think they maybe were trying to shift the attention to let me tell you how this is but he took a shot at tesla because obviously tests are promotes itself as a very socially responsible. and he's saying well how are you socially responsible if you're laying off tons of employees don't know making any money yeah right but maybe we'll hear more from next maybe sometime next week thank you so much from bust down to fishy. thanks for watching be sure to catch us on directv united states you can find us on the r t channel three two one if you miss us on drug t.v. on youtube youtube dot com. thanks for watching see you next time.

a little more for you on the idea that dropping bombs. to the trigger or forcing you to fight the battle. for the job you could be gossiping about with. the advertising telling me you are not cool enough to buy their product. on the order of one.

we don't. know the. and you can get it on the open. but according to just. come i am sure there are. what politicians do something to. put themselves on the line. to get accepted or rejected. so when you want to be president i'm sure. somebody wanted. to try to be the first to say what the fuck story of the morning can't be good. i'm

interested always in the water. what you're looking at has been known throughout most of its history as simply korea where i am is known as south korea since one thousand fifty three the north and south have been in a state of perpetual war even standing here just a few miles from the militarized zone i can hear the periodic ring of gunshots as the south korean military run dry.