we see them higher by 1% >> for the economy and more, we're joined by alan greenspan and a cnbc exclusiveenspan, always good to see you. good morning >> good morning. >> we want to cover so many things bitcoin, powell, balance sheet runoff, entitlements, debt but let's start with the tax bill since it's in the news and we're watching it go through conference what's been your overall characterization of what it appears intended to do >> end of what >> as the tax bill, as it appears right now, and there's a lot of questions about what's going to happen in conference, but how will it impact growth, equities, the economy? >> no, i was mishearing you, and i couldn't believe it, but i got it look, this particular period, as alan simpson and his colleague wrote in "the washington post" recently, this is a terrible fiscal situation we got ourselves into the administration is doing a tax cut and a spending decrease but he's doing them in the wrong order. what we need right now is a focus wholly on reducing the debt even the debt increase right now, we're in a stage, if nothing is changed, we're ab

coming in to lift the market back up but it's some point that's not going to happen you know alan greenspan was on television today you know comparing bitcoin to the continental which was the currency that was used around the time of the revolutionary war it eventually collapsed and it gave way to the expression not worth a continental but you know i think the comparison is probably unfair because the continental only lost ninety percent of its value they were redeemed ten cents on the dollar i think that eventually people buying bitcoin are going to lose more than that even if they make money on paper first i think that the currency is the currency is going to go down more than ninety percent that eventually the phrase not worth the bitcoin is going to be part of the american lexicon so what happens i mean you have investors who want to get in to this and i assume you are doing their bidding for for them to do so right. well i mean look i had a client today that wanted to take half as a half his ira and put it into an ira with crypto currencies i didn't think it was a good idea especially

although i will say that some comments from former fed chairman alan greenspan coming in a moment ago, helping to take stocks down as we take a live look at the dow jones. you can see it is down 26 points. he says that tax reform will do very little for growth. he is worried more about inflation. that is taking stocks down for the most part. there is the dow, the nasdaq and the s&p 500. the nasdaq hanging on to a gain right now because of the tech stocks. google pulling its youtube video services from popular amazon devices in an escalating feud between companies. google has block touchdown from fire tv and echo. it is in retaliation for amazon refusal to sell google products that compete with amazon gadgets such as google's home device which is a rival to the echo. it does not allow google hardware to stream amazon prime video. >>> cenemark is launching movie club. it let's people buy one movie ticket a month for a discounted price of $8.99. subscribers will be allowed to bring a friend at a lower rate as well as roll over any unused tickets for future use. it owns 350 theaters in th

bitcoin but after gold will see other major fianna currencies collapse implode well you remember alan greenspan who was a gold bug and then became the head of the central bank of america well he had said that. the u.k. was stupid to give up their gold because extraordinary an. gold is always used just like what happened to germany during world war two but this is something we're seeing that too the u.s. controlled financial system so look at what's going on with that case of turkey versus around and they were using gold because iran was dollars but now i've seen more and more we've seen venezuela announced the petro partly if not mostly to circumvent sanctions. i saw an advisor to vladimir putin being quoted recently that he thought bitcoin could be a good way to circumvent sanctions as well so they originally design for bitcoin was also in order to circumvent the financial system where so much fraud and opaque happens behind an opaque wall of drea all sorts of derivatives and fraud and then they get bailed out by the central banks remember that there was actually mention the bank bailouts in t

i think of alan greenspan and his focus on the granularity.hat do you see in the company's surveys right now that gets your attention, is a trucking, electric usage, what is it? ed: you have screwed up my life. tom: i have? [laughter] happy new year. ed: there is so much news out there. i started out doing the weekly report. then i went to a daily report. i'm doing 2 reports a day because it is hard to keep up with you because the news is there. on the company surveys, they have been moving up. they are 54, they were 48 at 48 they are consistent with 1% growth. 54 now, 3% growth. the most exciting thing, we will have to see if this lasts for the duration of this interview. the duration of the way that you time, is thatver our survey of retailers' pricing power had been going up for two years. time it is still very weak, 28, 0 to 100, and the last two weeks i will get another reading tomorrow, it went to 30. tom: it is a little bit of a lift. so it is upfrom 20, a fair amount. mentioned, upi 5.8%. that is in nominal terms. it includes price. th

peter: two recent examples, ragan kept paul volcker and bill clinton kept alan greenspan, a republicanf bipartisanship. carol: we do know the president then candidate donald trump on the campaign trail, often talked about the fed so maybe we are not surprised he wants to make his mark. peter: exactly. he said janet yellen is more political than hillary clinton at one point. [laughter] peter: so far though, wall street has been quite reassured by his choices for the fed. we have seen him make crazy picks for various cabinet post, but he has taken a middle-of-the-road approach with the fed. you can see that with jerome powell. he's a republican, but he was a centrist figure who works for the by policy center before he joined the fed and was an obama appointee and trump has chosen to elevate him and randal quarles is the wall street lawyer, who comes onto the fed as a vice chair of supervision. now we have good friends not yet confirmed, he comes from carnegie mellon university. these are the kind of picks. you know, they have a republican tinge to them, but they are nothing that will ala

examples.ent reagan kept karl volker, who was and bill clinton kept alan greenspan, a republican. of bipartisantory at the fed which has always been regarded as a semiindependent institution. >> we do know the president, then candidate donald trump on he campaign trail, he often talked about the fed. maybe we're not surprised that he wants to make his mark here. exactly. he said that janet yellen is hillary tical than clinton, at one point. though wall street has been quite reassured by his choices for the fed. seen them make some pretty crazy pick force cabinet posts it when it comes to the fed, seems as though he's been taking a middle of the road approach. that with jerome powell is a republican, but very centrist ort of a figure. worked at the bipartisan policy joined the fed and was an obama appointee. elevate him.sen to randall quarrels is wall street lawyer, comes on to the fed as vice chair of supervision. now we have marvin goodfriend confirmed.n these are all kind of picks. they have a republican tinge to them, but they're nothing that's going to alarm people like, whoa,

try to constrain the stock market, that can be very costly remember in 1996 then fed chairman alan greenspan said there's irrational exuberance. the stock market climbed strongly until 2000, until there was the tech bubble bursting i think those interest rate increases that chairman greenspan would have imposed would have been costly to the economy, more costly than the correction itself in 2000. from my perspective we need to segment what's a stock market correction and that's investors problems, versus sick thomethin will lead to financial stability like 2008. we need to work hard to protect against an o'08 scenario. >> that was neel kashkari. >>> the bank of japan started its final policy board meeting for this year. it will keep monetary policy unchanged. >> the central bank's two-day policy board meeting will go on until thursday if it maintains the current policy, it will be the first year the bank has taken no action since governor kuroda took office four years ago since his first policy move in 2013 where he injected massive amounts of liquidity into the system, he has taken easing m

be popular and that also i believe by the way in terms of this, oh, it produces more revenue, alan greenspan asked when i was on the committee a few years ago by a republican congressman, isn't it true, mr. chairman, if you cut taxes right you wind up with more revenue? greenspan said, congressman, i've heard that theory and never worked out in my lifetime. he was about 75. >> right. >> but what you have here is a -- how we will have a negative on economic growth and productivity because i am very certain the passage of this tax bill, which apparently with corker's flip flop flip now locks very much like it will pass. that will be the end to any potential infrastructure bill. people should understand that. and there was an assumption when trump got elected one of the things people were looking for is a boost to the economy. not just short term but long term because if you're trying to do things that really improve productivity, improving the physical infrastructure is a few things to say generally will make us more productive, move faster, people will spend less time getting to work, et cete

people had been -- some of the reasons were explained by alan greenspan, head of the federal reserve, was in charge pretty much of managing the economy. he testified to congress that part of the success of the economy, the low inflation and so on, was due to what he called growing worker insecurity. working people were insecure. they were intimidated. they knew that they were in a dangerous situation, precarious situation. as a result, they didn't press for increase in wages and -- for decent wages and benefits. they were willing to accept, in fact, an effective decline in their living standards. and greenspan, who was a close observer of the economy, pointed out that this continued, even when jobs were increasing in the late clinton period. it was deeply embedded in the nature of the policies being carried out, that working people are intimidated, they're living precarious lives, many of them are part-time, they're losing security, their unions are being destroyed, and their wages are declining. so it's all great. the economy is wonderfully healthy. can you carry out policies like th

has many of the characteristics of 1995 which, by the way, if you remember, that was the year alan greenspanthe phrase irrational exuberance which marked the top of the market five years too soon. speaking of exuberance, after the close, td ameritrade will offer clients cbo futures contract beginning on monday. as the market continues to break out, going to be volatile. check on the daily market commentary, guys, you got to make money, the market is going extraordinarily well. i got a programming alert for you. "wall street week" tonight, give you a sneak peek, here are the guests, cameron and tyler winklevoss. >> but the bubble framework is really not correct to put against bitcoin. when you think of a company, a company right and the stock price, if they produce x amount of units one year and the same amount of units the next year and the stock price goes up and the economic productivity hasn't changed. the participatists haven't changed of the company, we say it is overvalued. bitcoin is not a company, it's a network. charles: tonight 8:00 p.m. on fox business. stay tuned after that, it i

manus: alan greenspan, the foreign fed chair there. 1980's pop single, the biggest hit, welcome to the show, happy new year. you do channel the odd to. -- odd tune. inflation is the great look for. 2018 the year inflation is the surprise? guest: probably not and to be honest, it's not just a one-off spike in inflation. you might get one or two good things, but it is a sustained trend in inflation picking up. this is where the risks lay. you see a concern that low inflation is not just the transitory and him and on. something more structured -- transitory phenomenon. it's something more structured. it's neutral, if not slightly dovish. that will keep downward pressure on the dollar. even if the fed cracks with two more hikes this year, it's ok, but it's not good for the dollar. manus: what is going to be the key driver? this is what we are looking at. we are looking at the first yearly loss since 2012. let's have a look. a dismal dollar is the title on this. where do you stand? i look at bloomberg estimates, 2% lower by 2018 is the medi

soviet union so they're additional revenue and then bill clinton decided that with the advice of alan greenspan they're going to keep raise low, pay down the debt. then greenspan says to us, if you recall in a mystical moment, you're paying down the debt too quickly because the deficit has been elabel nateed. this idea that even bush junior's years you know what is going 0 happen so we knew that 9-1-1 was coming. or that we all knew that recession was coming or we all know right now that afghanistan, after 16 years is going to be regular length quiched just don't know the things. my friend here suggest they are certain that this is all going to happen. there's no evidence that supports us are going to know that. >> i agree. mr. chairman i ask unanimous consent to place into the record the statement of administration policy. >> without objection. >> i lift from the it that the administration strongly supports this measure and i don't think that comes as any surprise to any of us, cutting taxes for middle income families, simplifying the tax code and reducing business taxes so that american emplo

you can see alan greenspan across the screen. a lowsnt, up from earlier s&p futures up and nasdaq up nearly .5. gone elsewhere. you're seeing a little rise in two-year yields to the highest levels since 2008. you're seeing euro gain against the dollar despite the fact that tax plan heading toward a passage in the u.s. no, of course, there is volatility anymore. the vix at one point touching lowest since november 3, the lowest level on record. so we are still down near record volatility. david? david: now to find out what's going on outside the business have "first word news ." emma? emma: thank you, david. a c.i.a. warning that thwarted a bomb the. the two leaders spoke for the second time in four days russia helped disruptip a group planning bombings around st. petersburg in russia. conservative sebastien kurs has been sworn in people's party struck a deal with the freedom party on friday coalition has come out with a program designed to preempt concerns austria could stray or crush the state at oneas been restored of the world

soviet union so they're additional revenue and then bill clinton decided that with the advice of alan greenspan they're going to keep raise low, pay down the debt. then greenspan says to us, if you recall in a mystical moment, you're paying down the debt too quickly because the deficit has been elabel nateed. this idea that even bush junior's years you know what is going 0 happen so we knew that 9-1-1 was coming. or that we all knew that recession was coming or we all know right now that afghanistan, after 16 years is going to be regular length quiched just don't know the things. my friend here suggest they are certain that this is all going to happen. there's no evidence that supports us are going to know that. >> i agree. mr. chairman i ask unanimous consent to place into the record the statement of administration policy. >> without objection. >> i lift from the it that the administration strongly supports this measure and i don't think that comes as any surprise to any of us, cutting taxes for middle income families, simplifying the tax code and reducing business taxes so that american emplo

we will have the latest analysis and news from alan greenspan here it -- greenspan.t's going to be a lot of fun. we are going to look at the world's most popular cryptocurrency. bitcoin futures are down 4% today. how smoothly did it go? what are the big banks doing? how is that going to work. we will discuss. this is bloomberg. ♪ alix: this is "bloomberg daybreak." i'm alix steel. here's where we sit before the catch-up in the u.s. pretty much flat after the dam and s&p closed at a record high again. a little bit of movement over in europe as you see and she's closing a nice monster rally. the weaker dollar continues to emerge throughout the session. i want to take a look at what's happening with cable, up 1/10 of 1% despite the higher-than-expected inflation data. my bond of the day is the swedish 10-year. yields are up three basis points. it's the underperformer over in europe as the inflation kisses its 2% target, raising questions of monetary policy going forward. they are both laughing at me. brent is up a monster 1.5%, over $65 a barrel. how long can that last?

alan greenspan, gutsy call on productivity and it was this kind of wonderful petri disk for the dot-comoom we did have the nasdaq burst in 2000 and a recession in 2001 but before it ended, two very good years i don't think that is an impossible scenario now. >> greg, i don't want to swallow optimism, but to what extent do you think the surprise of growth this year in the u.s. was driven to the upside of the global growth when you pair that with a weaker u.s. dollar that exports were up? the tax reform itself, of course, with the repatriotation could reverse that quite significantly? >> well, i think most of upside surprise this year has been a global phenomenon. as you note, the dollar was actually weakening through to the fourth quarter, which was evidence it was the rest of the world pulling the u.s. along as opposed to the u.s. pulling the rest of the world along. it suggests the time used for monetary easing policy in japan to finally get some traction and boost those economies. and a lot of studies of crises have told us it takes seven or eight years. i will say another factor to k

alan greenspan said that sometimes speculation is overactive or exuberant.ve at this stage to react. francine: are regulators looking into it? do you have conversations with regulators looking at bitcoin? conversations with regulators looking at bitcoin? pierre: know, we are not having conversations right now. --no, we are not having conversations right now. francine: you recently have tax hagans including south korea and the arab emirates. what are the implications of being included on the blacklist? pierre: first, there is an affected that is called name and shame. i think you should take commitment to respect international governments in order to get out of it. i think that the e.u. countries sanctions decide on that can dissuade countries to act in a certain way. there is a great list of countries which have made commitments. either there out of the listing or they come into the blacklist. the idea is lifting countries to help them get out of it and to respect to global standards that have been set any framework of the g20. , westandards of the union hav

this is alan greenspan that leftist marxist, himself, he said sometime ago the greatest threat to american-style capitalism was income disparity, the rich were getting richer the poor were getting poorer. this adds fuel to that fire as well as the national debt. it just doesn't seem to make sense if are you a conserve tiver. >> well the national debt is the primary reason i heard principle conservatives say i can't abide by the bill. we're adding too much to the debt. we say we are fiscally conservative. we ought to be. there was a contradiction in what paul ryan said in his speech before the vote on the house floor, he said this economy has been limping along, he talked about a sluggish economy just as you have president trump tweeting almost every day how the economy is exploding under his presidency the stockmarket is up. corporate gains, et set remarks et cetera, the unemployment rate is down, there is an internal contradiction in there. casey hunt, i will ask you want we talked of the politics of it, what's in the bill? interest right. >> what are the impacts? you heard mitch mcconnell sayi

try to constrain the stock market, that can be very costly remember in 1996, then fed chairman alan greenspantionale exuberance if he had used monetary policy to try tostop the stock market from climbing, you know, the stock market climbs strongly until there was the tech bubble bursting i think those interest rate increases that chairman greenspan would have imposed would have been very costly to the economy. more costly than the correction itself in 2000 for my perspective, we need to try to segment what's a stock market correction, and that's investors problems versus something that's going to lead to financial instability like 2008 i think we need to work very hard to protect against an 2008 type scenario, but if markets correct, it's not the fed's job to protect investors from losses >> neel, the fed has two mandates one is to watch the inflation rate the other is to watch the unemployment rate. with unemployment sitting at 4.1%, there are a lot of people who say this is naturally about as low as we go. most importantly, you want to assess a market, supply and demand look at the price. w