alan greenspan. schoumacher:to chaman alan greensp the rules had changed.doubted whether inflation cod be adequately measured in the new econo using current techniques to trace price trends over time. when electricity was developed that was a new econo. when automobiles became prevalent that was a new economy. now we have a new economy that's electronic age. think it has contributed as those earli new economiecontributed, to an increase in productivity. there was a time when economists thought that when thunemployment rate got below 6% -- or 5 1/2 or 5, something like that -- that we would inevitably have inflation. we found out in e 1990s that with a very productive economy we don't necesrily get inflation when unemployment drops. schoumacher: productivity was a key factor in keeping inflation down. but another factor wasthe globalization of business. the introduction of market forces frr trade, and widespread deregulation meant that international trade and investment played a much larger role in our economy than befo. volcker: japan's been almost flat on

of greenspan and address all of the questions. alan you here. welcome. first of all, do you think we're about to herald the era of higher u.s. interest rates? >> oh, eventually, yes. but i think it's best to realize that what's happening now is a relatively slow process. in the sense that we've had a significant build-up in the size of the fed's balance sheet through qe-1, 2 and 3. and up until a couple of months ago, we had very little indication that any of that was moving out of the basic fundamental reserve system into the commercial markets. by that i mean, so long as reserves are sitting in the deposits of, for example, depository institutions, jp morgan,wells fargo, et cetera, at a federal reserve bank, those are not having any active effect on commercial lending or economic activity. they do, obviously, and have lowered interest rates as a process of accumulating them and haven't triggered any form of spending through increased loan demand until very recently. and -- >> that's a good sign then, isn't it? >> i'm sorry? >> so tha

back to the story, alan greenspan dug a road quick.erest rates opened up the housing market to be a piggy bank. indeed, almost in a seamless handoff kind of overt what could have been a bigger problem. only do delay it. the current scenario isn't bubblicious. the bubblicious aspect of interest rates so low in a southern european economy, doesn't square with output, employment, their gdp, this is not indirect. this is completely directly by design. as a matter of fact, it's inherent for the central bank of europe to deal with what it believes is the medicine for its problems which is most likely buying time. but the problem arises where if there's any hiccups on this relative value trade, you really freed to be careful. thing koss reverse quickly. i haven't been bearish on interest rates, the price moving lower, raising yields, all year. as you look at this chart to leave you with, that's a chart of the ten year notes. remember, it was august that we took out that 244, 245 from may 28th, tested again on the 17th as low yields. three bas

. >> so what is the view of alan greenspan? >> guest: i and a historian so i looked at people through their personalities. he loved jazz music. and played the saxophone in the 40's. and with the very much of a jazz player approach and was very savvy and responded very quickly in the most important thing was very early on tuesday chairman of the federal reserve in his own mind saved a the western world there was the big wall street crash. that was tricky at that time. it to pump huge amounts of liquidity into the system. so once you do that early on in your career if you were successful the definition is keep repeating it which is what he did. by what i would argue by dozens by policy with the search for the yield with a high risk product to get back that yield. >> two except that interventionist? >> yes. that was the start. but once thing to remember the people running the federal reserve they are obsessed there was a they have learned from 1929. to be obsessed with that idea the authority did not do enough in 1929. with that t

. >> alan greenspan said irrational exuberance will give them all of the confidence for that but that was back in 1996 four years before that bubble blew up. it's one thing to spot a bubble. >> i think the whole young entrepreneurs haven't seen a crash is a little overstated. it was not a picnic to raise money. i think the current generation of entrepreneurs have seen a down market. important it's very to focus on building a business not on the vanity metrics, fundraising, image. generally you think mark andreessen is exaggerating. >> what he's saying is at the end of the day in the long run, the only thing that matters is cash flow and profit between here and there there are other things you need to focus on. as they're focusing on growing eyeballs, keep in mind some point you have to make profit. , paul kedrosky, thank you for the debate. i'm sure it will not stop nor will mark andreessen. how a german startup has built a $1 billion business by cloning american companies like ebay and groupon. watch a streaming on your tablet, iphone, apple tv, amazon fire tv. ♪ >> i'm emily chang a

at least for ten years you know along we've been doing this gold price suppression scheme with alan greenspan we've got a u.s. empire that's occupying everybody pledging everybody as collateral to consume people and take all their money and their identities and not let you grow or you what you want to grow and all these problems across the world it all root cause in the us empire and i think a lot of people are fighting back against that whether it's in our weather center vigils and because in is that is the way to fight back because definitely a very powerful tool that individuals and states can use to fight this entire thanks treasuring once again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i want to thank our guests face mayor trying to reach us on twitter use kaiser report and the next time bio. on marriage in the financial world. doctors used to goldman's cannot stop because it is very slowly taking on the demand to credit not going to get any better in life there are. plenty of wonderful schal

at least for ten years you know along we've been doing this gold price suppression scheme with alan greenspan we got us empire that's occupying everybody pledging everybody as collateral to consume people and take all their money in their identities and not let you grow or you what you want to grow and all these problems across the world it all root cause in the us empire and i think a lot of people are fighting back against that whether it's in our weather center vigils and because it is that is the way to fight back because definitely a very powerful tool that individuals and states can use to fight this empire thanks tracy brink once again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert and i thank our guests face mayor trying to reach us on twitter use kaiser report and the next on bio. weapon it's a political issue in this country any time somebody raised the issue of gun control we could attack us but it is a. skirmish with some sort of person twenty five or thirty years of a person they don't see

least for ten years you know our long we've been doing this gold price suppression scheme with alan greenspan we've got a u.s. empire that's occupying everybody pledging everybody as collateral to consume people and take all their money and their identities and not let to grow are you what you want to grow and all these problems across the world that all root cause in the us empire and i think a lot of people are fighting back against that whether it's in our weather center vigils and because it is that is the way to fight back because definitely a very powerful tool that individuals and states can use to fight this empire thanks treasuring once again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i want to thank our guests face mayor trying to reach us on twitter use kaiser report and the next time by go. if you want to be over the wall and. he did say that it needs to some full responsible school closely would seem to be. used to this almost four. hundred thousand. one tons it's a political issue in

i think the implication of eric's question and doug's comments there and alan greenspan -- alan greenspan think these are very important forms of spending and very venerable ones and in fact you would be hardly -- fairly hard-pressed to find arch conservatives who have anything negative to say about a very robust unearned income tax which is an extremely important way for workers to boost a low income working mom with a couple of kids 4500 or $5000 year and in fact at the end of the airport there's a smart poll by bipartisan support to extend map particularly the part that goes to childless adults. it's another smart pro-work policy helping to offset some of the very damaging trends to earnings and employment opportunities for those at the bottom. >> the topic of business taxation i know you guys want to talk about that. i guess the president has proposed a business only tax reform and that has been discussed. it's not fully fleshed out but that seems to be the direction he wants to go and of course as the individual and business combine. there's talk that it might be easier to get tax re

alan greenspan speaking with us exclusively tomorrow and asking him all about this, of course. be sure to tune in. one of the first, simon, i think to issue a fed statement. and that was only in like '96. how times have changed. >> you haven't. you still love it. okay. a look at where we are in the markets at the moment. continuing the lose ground here down 113 on the dow. more on what's causing us to fall ahead on the show. >> coming up, big doings out in apple land today and u2 playing a concert. part of the announcement. we have the breakdown of everything on the new e iphones to the watch and the pros weigh in on whether apple over or under developed on the unveiling. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com. ok, if you're up there, i coulsmart sarah.elp. seeking guidance. just like with your investments. that sets you apart. it d

result of problems with richard nixon's raging price control policy, and gerald ford brings in alan greenspan as his head of his economic advisor panel, and greenspan talks ford along with other people into cutting taxes. domestic policy during the ford years was what i call in the book a series of brush fires around the country that ford and his staff were putting out almost in a crisis mode all through the administration. the troublesome nomination of nelson rockefeller as vice president of the united states. there are many people who believe that it was that nomination that cost for the election in 1976 because he had to change from nelson rockefeller to bob dole. the crisis in boston, the explosion after the decision in north carolina saying bussing was not only constitutional but could be mandated by the state, and the blood in the streets, and a little bit closer to home, ford's decision to go out of new york city, which led hugh carey to give this wonderful interview that led to this particular headlines, one of the most famous headlines of the ford presidency. lesser-known but no more

on a global base circumstance inflation expectations are moving lower and alan greenspan, when we asked him yesterday on the program is what that means, in affect there has been a tight thing of monetary policy already here. so, how much do you think the fed is willing to risk being a little bit more, aggressive when, frankly, the landscape out there is looking a little bit shaky? >> well, i'm in peter's camp, i think they are gonna raise sooner rather than later and it is gonna cause a stronger dollar and i think the investment implications of that one thing that -- one area we really like is the small cap space, the strengthening dollar, that's certainly an area to look at. also, really hurts the commodities, but i think the fed -- it seems like our economy is gaining some escape velocity here in spite of the last jobs report, we had six great jobs reports before that one. >> heather hughes, speaking of energy, oil as we know, lower, today notwithstanding that higher dollar pushed oil lower, good or bad? good for consumers, what about for energy stocks themselves? >> hopefully, it put

what do alan greenspan and carmelo anthony have in common?will find out later in "the closing bell." but the tech giant microsoft is looking to buy mojang. do you know what it means in swedish? >> printing press? >> gadget. >> printing money? addictive game? >> okay. manager, director of fbr capital joins us now. great to have yo with us. is this maybe a change of heart by the founder of mojang? mr. persson has been vocal in the past. or does money talk? >> i think in this situation money talks. with microsoft, they really need to step up their game on gaming, on mobile, on cloud. when you put $2 billion in front of the founder i think the story changes. and i think that's what you're seeing in this market. >> i will never sell -- how much? how many zeros? you know what? sold. i mean, does it matter to microsoft -- mandy's kids play it, my daughter is addicted to it. but does it make any money? >> $2 billion to microsoft is bread at the restaurant. what they're really focused on is more content, not just on xbox on that hardware gaming platfo

but i'm married to alan greenspan, who at the time was chairman of the board of the federal reserve.y concern immediately is they're attacking wall street. is this symbolic? will they also attack individuals? then i realized my husband was in an airplane. for hours i didn't know where he was. and i was calling his office, and they were trying to reach him. and so i was really terrified about how broad this conspiracy was and how many other planes might be out there. >> let's go to nbc's jim miklaszewski at the pentagon now. mik, what can you tell us? >> i remember we did a phone interview with jim miklaszewski at the pentagon because we obviously wanted to know what the military's response to these first two planes hitting would be. did they have some advance notice? what were they doing? >> to add what andrea just said, senior officials here at the pentagon are saying they're getting information that the american airlines flight 11 after it left boston apparently, was hijacked and was diverted apparently -- >> and we finished jim's report, and it was just a short time after that tha

. >> host: so what is your view of alan greenspan? >> guest: i think he was, the most important thing about him. i'm a historian i look a what people do in their personalities. i think that's very important one of the interesting things about him was he loves jazz music. he was a jazz player, clarinet or saxophone in the 40s. i would suggest that he took very much a jazz players approach to managing the economy. it was very improvised. i quote him and he said there was no plan. he was very savvy about what he felt about markets. he responded very quickly to what the markets were doing and the most important thing about him in terms of his career was early on in 87 early on in his tenure as chairman of the federal reserve he essentially in his own mind saved the western world because of the crash of 87. it was a break -- big wall street crash? >> guest: with a certain degree of self-confidence. >> guest: that's right. that was a tricky phrase at that time. he lowered interest rates and pump huge amounts of liquidity into the fiscal and

the problem with all this is was inbbles generally is 1990 61 alan greenspan use the term irrationalberance. it was another four years before the boom. trying to time a turnaround in the on market is proving difficult especially when you have an environment where you have excess savings and lots of spirit opacity and many saying [indiscernible] i recommend this could go on for a bit longer. 131 lane dollars. what asset class would you recommend to investors? >> i -- at the moment the ones i think [indiscernible] pe'shave single digit key so the china eshare market is the one worth overweighting. >> thanks for joining us. there were great expectations last week. 100 days into the job we will assess his performance so far. this is "first up." do not go away. ♪ officeing 100 days in today. how has he been doing? what does your report card say so far russian mar? >> he came in with a huge wave of enthusiasm and the biggest hadate that any leader has in years. he has changed a lot about the atmospherics within the bureaucracy, cutting out long lunches and golf appointments and things like

at least for ten years you know along we've been doing this gold price suppression scheme with alan greenspan we've got us empire that's occupying everybody pledging everybody as collateral to consume people and take all their money in their identities and not let you grow or you what you want to grow and all these problems across the world it all root cause in the us empire and i think a lot of people are fighting back against that whether it's in our weather center vigils and big calling is that is the way to fight back because definitely a very powerful tool that individuals and states can use to fight this empire thanks treasuring once again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i want to thank our guests face mayor trying to reach us on twitter use kaiser report and for that sound bite go. well. science technology innovation all the least developed around russia we. covered. the face i think people. a pleasure to have you with us here on our team today. chicago three million people the th

. >> what about a considerable period with the word patience as alan greenspan did in 2004?wanted to give the market something so it is not a jolt. the ports ofrtant to medication to medication and be careful with your words. before in had a case which they understand the importance of communications. >> yes. to last thing they want is jolt the markets or shop the markets. the markets. it will be worth looking at. >> the bank of england minute we are looking at, are we expecting any change? gives the economy bit more room to keep things going as they currently are. certainly events are important. you want woodford to settle a bit before you start making a decision on policy. he got his hands full with managing a possible currency union. that is assuming there is a yes vote. there's a bit more waiting room if you like, patience if you like. >> jan, good to chat with you. jan randolph at ihs global insight. >> the kremlin has placed one of russia's most richest man under house arrest. after the break, we are in moscow to find out exactly why. ♪ >> welcome back. we will look at

i will tell you, he was quite positive about alan greenspan and his activist monetary policy. kind of surprised the rest of us because he believed that the federal reserve should not manipulate interest rates at all. let interest rates fluctuate. increase the money supply at a steady rate and, anyway, we don't really know what he would do in that regard. but this book, the great contraction by milton friedman and schwartz, this is that chapter that starts with the famous line about the money supply drawing by a third. that was printed separately as a little book. boots 100 pages long. and it was new introduction by anna schwartz who was alive in 2007, 2008 when this was written. it's published in 2008. anna schwartz wrote the introduction, the co-author in 2007. you know what she said? she said everything is just fine. nothing is wrong with the system. she missed it. she missed it. most of us missed it. there were austrian economists and others that predicted it. but they are predicting crashes and crises every year, aren't they? always have to be a little bit careful about wh

lich,ard from robert ze formerly of the world bank, alan greenspan, formerly of the fed.ill clinton. all of those voices talking about how they want the u.k. to stay together. just in case any reminder was needed of the historical significance of what the scots are voting on. edinburgh castle is behind us. the words of my colleague in one "never since 1745 have so many eyes in london been cast northward to what is happening here in scotland." >> thank you very. the historical precedent. never far from anybody's mind. anna will be back shortly. she will be talking to scotland's first ever billionaire, sir thomas hunter. tom hunter joining us shortly. let's get back to our top story. alibaba's roadshow arriving in london. shares start trading in new york friday. could be the biggest ipo ever. ryan chilcote is outside the event. , all eyes on this event. do we know if jack ma is showing up? >> we don't. there are a lot of security guards here. perhaps he will. having said that, whose name is not on the invitations. the name of the executive vice-chairman, the ceo, the cfo, a

you have alan greenspan saying the quality of the u.s. is not more higher tax.tarian says rising income and equality is one of the great threats. look at the front page of "the new york times." you see stories there. then you look at the editorial and some stunning facts that we underlined and people need to keep underlining. corporate profits last year, higher than any time since 1965. that's great news. i'm not going to say i don't want corporations to do poorly because usually you say when corporations do well, american workers do well. when businesses do well, american workers do well. that's not the case any more. the american worker just suffered through, endured their worst year as far as wages go since 1948. 1948. and it is up to this president, it is up to harry reid, it is up to john boehner, the up to democrats and republicans alike to figure out how to break us out of this cycle that has been going on a long time. jeffrey sachs has talked about it also. >> everything else has grown. those are numbers that are important that we see growth in jobs but

. >> and there is a huge contrast between janet yellen and alan greenspan. >> actually got her into trouble first press conference, she said, "in six months" -- whoa, take it easy. >> tweet us. who is a better communicator, janet yellen or ben bernanke? why are so many people across the globe feeling blue about the economy? we will show you the results in today's single best chart. this is "bloomberg surveillance ." ♪ >> this is "bloomberg surveillance." scarlet fu with olivia sterns and adam johnson. adam has our top online. -- our top headlines. a senate panel yesterday criticized the national highway traffic safety administration. investigators say key evidence was overlooked for years. withheldy says gm information. -- customerervice service workers want to organize. votedan airlines agents overwhelmingly for union representation. some were brought in by a recent merger of us airways. the nfl domestic abuse scandal sidelines a superstar. minnesota vikings deactivated running back adrian peterson, charged with child abuse. rice case areay being slammed including by pepsi, budweiser, and

alan greenspan has admitted it.and if congress and the president were really serious about creating jobs, they would put a stop on a 7 million that have flooded in since the 2008 crash. that is what you and other responsible journalists should be writing about. guest: where are you getting your figures? some of the figures you are quoting, since people are questioning statistics that have been thrown around here, i am questioning yours. there is no question that the period of the 2000's decade was a period of very strong immigration into the country. the 1980's, 1990's, and 2000's were all very strong growth of immigration. when i said that immigration has slowed or stopped, that was since the recession, which started in the late 2007. you have seen a net slow down to almost no zero of immigration, so when you say from 2000 to this increase in immigration, i'm not sure about the statistics that you are using, but it could be reflecting mostly the very strong growth you had between 2000 and 2007, which was still stro

crisis, i think the view could be characterized by alan greenspan's views on the subject, which is thatbles are hard to identify and real-time. policy not so effective in responding to asset bubbles. let's wait for the bubble to burst and we will clean up after the fact. well in not work out so financial crisis. it is a position i did not agree with even prior to the financial crisis. view, one i shared for a long time, you do need to try to identify asset bubbles in real-time and then look around and see what tools you have, even motte -- monetary policy were just the pulpit to try to address emerging imbalances. i think financial stability is on the fed'sly radar. it has been so for quite a while. the reason is simple. you cannot have an effective policy if you have a financial instability. it rendered monetary policy pretty potent for a while. financial stability is a anessary condition to have effective monetary policy. the fact that the board of governors set up the committee, it is just a lodge: . we've looked at this for several years very carefully. we've had briefings on financ

. >> i was looking at your notes, james, you did some interesting comments on how alan greenspan tradedhetoric in 2004 when rates would rise and what that meant for equity markets and similarities with today's situation. >> i do worry the markets are very, very trusting in what mrs. yellin is going to do. before she changes the rhetoric, the market will begin to anticipate completely different trajectory for rates that may take two percentage points off the market levels. >> james, thank you. the chief investment officer at ccla investment management. >>> now time to perk up and brew some excitement. it's international coffee day. the day is used to promote fair trade coffee and raise the price for coffee growers, but also for the celebration and enjoyment of the caffeinated creation. several chains in the u.s. are offering free cups of coffee. dunkin donuts, crispy krispy kreme and mcdonald's. >> you have plenty of options here, don't you. >> >>> there was controversy in the clubhouse after veteran phil mickelson appeared to take a swipe at his captain during a press conference. the fi

robert rubin, larry summers and alan greenspan were determined not to regulate, not to regulate the expandingsectors of the financial economy like derivative trading and securitization of mortgages. they forced other governments to deregulate financial controls as a condition for free trade pacts and as a condition for securing financial assistance during the asian financial crisis of the late 1990s. after 9/11, memories of the berlin wall coming down whetted the appetite and tempted officials to use strength. and to use force. displays of u.s. power would be met with enthusiasm. memories of the jubilation of berliners of 1989 made them think that the toppling of saddam would be greeted with the same enthusiasm as the dismantling of the wall. on november 9th, 2001, bush 43 declared world freedom day. he said, quote, like the fall of the berlin wall, and the defeat of totalitarianism in central and eastern europe, freedom will triumph in this war against terrorism. and a little over a year later, observing the videos of the toppling of saddam's statue, declared, quote, watching iraqis one cann

before the crisis, alan greenspan started using the same language over and over.st that within the committee because it just locks you in. but this is not really new coming from the crisis. it's kind of code, you know. the fed uses a word, and people decide what it means. then they're afraid to move away from it. that's why i think janet yellen is going to kick that can down the road again today. >> you know, i think that we had a bit of data today that really, in my mind, underscores how far away from the norm we've gotten. we have the national association of home builders sentiment index. it came out at 59, the best level since 2005. but here's what i saw. we now have home builders as confident with 412,000 single-family homes being built as they did in 2005 when they were at 1.2 million. that speaks volumes as to how we've kind of downgraded or diluted the american dream. but yet, the numbers don't really reflect that. any comment? >> i believe, rick, that i remember that housing starts used to be around 2 million per year. they're roughly half that now. you're

low interest rates, fixing that demographic issue, alan greenspan told us about 20 years ago was coming>> listen, at the end of the day, we have a country that's changing. you've got 10,000 people retiring every single day. that's going to have an impact on the participation rate. >> i'm sure the fed program's going to alter that, right, that's why we're riding this horse. >> you want to spend like your economy, you have an economy starting to grow again. >> fed can't make jobs. they are stimulating big balance sheets, big companies. 7 out of 10 americans think we're in a recession, what does that mean? >> why the number of people taking government pediments going down? >> i don't know what you're reading. it's not what i'm reading. >> absolutely, going down. >> only the benefits that are cut like jobless claim benefits, yeah, they were extended. they were called emergency benefits. crisis policies. >> with all these numbers, down to 12 and the market keeps going up. as long as there's $3 trillion of undeployed bank reserves, the big banks are going to put them to work and that's going

i asked ben bernanke and alan greenspan, given we have more inequality people thinks is healthy, howill with it is controversial, what they propose, both said community colleges are an excellent way to transmit to people, particularly lower economic segments the kind of job skills that they need and you know, the community colleges teach the kind of job skills, nursing, tv technicians, et cetera that don't get offshore, hard to stick a needle in somebody's butt from india. >> and i apologize to joe -- for one second, sliding up and down the inequality scale here from the low end to the high end with the news on larry ellison, i just want to go back to our dominic chu at headquarters, dom, sounds like we have the third major ceo change in 35 minutes here. what's going on? >> that's right. a third one. so in addition to everything we have been saying, check out what's happening with jetblue, right now, we have learned that robin hayes, who is the current president at jetblue, will ascend to the ceo title, effective february of 2015. again, robin hayes, the current president, will becom

spending through the codes i agree, i think the implication of eric's question and dogs comment and alan greenspanis a tax expenditures are expending touch i think he's right. these are very important forms of spin and very venerable ones. and effect to be very hard-pressed to find 30 archconservative said anything negative to say about a very robust income tax-cut which, of course, is an extremely important wage subsidy low-income workers which can boost an income of a low income working mom with a couple of kids, 45, 100, $5000 a year. and effect and it's in this report, i think it's a very smart proposal with some bipartisan support to extend that, particularly the part that goes with childless adults. another smart pro-work policy helping to offset some of the very damaging trans to earnings and employment opportunities for those at the bottom. >> i want to move the topic to business taxation. i knew you guys wanted to talk about that. the president has proposed a business only tax reform. that's been discussed. it's not fully fleshed out, but it seems be the direction he wants to go. and, of