oh yes central bank give it a go try to keep the easy money flowing the easy be cut it's a benchmark interest rate to an historic low the bank of england said yes to more q we china's central bank unveils a surprise interest rate cut the danish central bank goes one step further and touring europe territory negative interest rate policy there was of course is under anesthesia already but already middleton will explain why no amount of money printing can create wealth but can any amount of cutting rates or money printing avoid this when it comes to real asset prices. total annihilation will come from what follows a whole week. or two. will no way says our guest will tell us why plus former barclays c.e.o. bob diamond testifies before members of british parliament over of course the library scandal now it's been pegged as a preview of what may lie ahead for other big lenders under investigation for this same thing but what's it to look back as it seems the real pattern of repetition is cool luzhin between of the worries and the big banks let's get to today's capital account. well what c

actually first process this news we were thinking ok jim grant is probably saying this is what central banks do every day and in fact you have been saying that you've been out saying that so why are people so outraged about why bore in banks attempting to manipulate it when this is the job of central banks that we all live under wrote the private bankers for the pilate rates on the quiet when they think they can get their way with it surreptitiously opportunistically rarely central banks do it for a living. so it seems to me that the london interbank offered rate scandal is almost infinitely insignificant compared to the prevailing problem in that relation market systemically openly and on principle by our central bankers so do you think that the outrage at the banks is mr repton over libel sure. their turn around and be outraged the people who manipulate the rates on which live board from which libraries ultimately derive lahore's that is a rate that is derived. in very good part from the prevailing level of rates that the central bank said. or fix to use the proper word so the federal rese

investor and author jim rogers his take on the federal reserve's claims about inflation last balrog central banks e.c. bears say they're overworked and bank of england may have played a role in the library scandal we'll talk about it in loose change but first because the market numbers. what drives the world the fear mongering used by politicians who makes decisions to break through it sort of deeply and maybe who can you trust no one who is you who view you with a global missionary to see where we had a state controlled capitalism is called sasha's when nobody dares to ask what we do our t. question morning. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else and you sure see some other part of it and realize that everything you saw you don't i'm sorry is a big. but in the alone or so you'll get a real headline with none of them are the problem with the mainstream media today is that they're completely disconnected from the viewers and for what actually matters to those viewers and so that's why young people just don't watch t.v. an

back to the two thousand and eight collapse but going back even further than that because the central banks are now implicated in working with banks like barclays and the other primary dealers in rigging interest rates and they rig interest rates down. theme that we've hit on the show hit upon during the show many times is that you've got a war between speculators versus savers speculators want lower interest rates because they want cheap funds to speculate and their bets go bad and the government forces the losses on top of the many in terms of austerity savers are constantly being penalized they're constantly underwriting the speculators this proves though that the central banks are in cahoots with these other banks to further this collusion of interest rate manipulation and rigging to favor the speculators and the people who are unaware of this or don't take umbrage at the people who feel like they're benefiting and somehow by having a clip talk or see of central bankers run their lives until such time as they get thrown under the austerity bus but i'm going to look at some other possibl

evidence of this assertion of mine that they're robbing the global central banks of the credit available whatever credit remains in the system you know willie sutton said he robbed banks with the tommy gun because you can't rob a bank on charm and personality so we're going to go to a charmless guy without personality bob diamond and piece admit they let diamond slip away ahead of inquiry vote so several members of the commons treasury select committee have admitted that the banking chief was able to get away with a vase of an implausible answers during a three hour appearance before them yesterday he appeared on able to provide straight answers he repeatedly strayed off topic and at times appeared unable to understand simple questions this is his posing as a bimbo oh i don't know nothing oh young man over there guarding the ses can you help me i drop my little bag here and he bends over and shows us took to the m.p.'s and they open. literally the following day the bank of england said here's fifteen billy. exactly why the bank avail of follow up with bob's larceny larceny by another fif

lowering rates is about central bank collusion with other banks to keep rates near zero to fund speculation to squeeze out population of workers and savers well max in fact it's a bank robbery i think and they're the bank robbers are posing a speculators in some situations but i'm going to compare this to one of the most famous bank robbers in american history william willie sutton he was born in one thousand one and died in one thousand nine hundred was a profit us bank robber during his forty year criminal career he stole an estimated two million dollars from one hundred banks and he's known for the urban legend that he said that that he robbed banks because that's where the money is today you don't rob banks unless you're an idiot you rob the central banks because that's where the credit is and you rob it through now willie sutton was famous for using tommy thompson. today the modern equivalent is derivatives there at least eight hundred trillion perhaps one point two quadrillion even more that are used in order to hold up the central banks of the world and tell them give us all your cre

simply do not desire to hold the dollars which are being issued by the banks in general or by the central bank, if there be one, or by the treasury if it is issuing paper dollars, and it also did before the federal reserve, they had the privilege of returning those dollars to the banks or the treasury and demanding the gold which is, in fact, the dollar itself. that ends -- that ends the discretion of money printing and it ends the systemic tendency toward inflation. so it's not only an economic issue that we're facing here. it's the who governs in the united states? is it the sovereign people or is it a political elite in washington that is completely independent of the voters ability to control the quantity of money in circulation? >> over here. >> why were we taken off the gold standard in 1971? >> well, i suppose someone would say it wasn't a true gold standard. anyone? >> you just said it. sir, the move off the gold standard had been in the works for a while. the united states had begun to run deficits in its international payments late in the 1950s and into the '60s. then the dollar was

the central banks of the world mainly resist the idea of gold as money although interesting the central banks have been accumulating gold collectively the past year or two as they haven't in a generation. it seems to me that the institution in place that it's a worldwide paper money the world wide manipulation of interest rates by your crabs this monetary set up is not for the jews it is destined to fail in deed it is failing something will supplant it and it seems to me that something is very likely to involve gold whether it's going to involve a new gold standard that's my preference or whether it's going to have all involved say the. wrong paul approach which is the dean nationalization of money through the abrogation of the excision or the whiting out of the currency system through the legal tender was so as it is now. says on a dollar bill that you have to accept it in payments of debt that's the law well if the legal tender laws were no longer in place people could choose they could decide what is money as they view it it seems to me a much better system would be an international

well known the liquidity is is a problem they have but the central banks of providing liquidity with the problem i'm talking about is their balance sheet what is the bank worth what are the assets worth on his books or those assets equal to its liabilities so this is the solvent see problem not the liquidity problem the banks have both products they have the one you described correctly and then they have the one that i'm talking about which is there's some wincey and so if the price is on the books or their assets at the assets on the books those prices rise when they can push down the interest rates because they're the relationship between interest rates and the price of the bond his inverse and just just to be clear in your view any attempts at rigging libel or to keep interest rates low directly affect government bond prices why. all right we will try to get more with dr paul craig roberts but first we are going to go to a quick break still ahead there is a dutch city. officials want to fine the weather forecasters for getting it wrong we will talk about who this may apply to more

the european central bank lowered interest rates to an all-time low. china cut several key interest rates for the second time in a month. and the bank of england held its rates steady, but said it will pump billions of dollars into its economy through a new round of bond buying. here in the u.s., some hopeful signs for the weak job market. private employers added 176,000 new workers to their payrolls in june, stronger than the previous month. and the labor department said the number of people filing for unemployment benefits dropped by 14,000 in the past week. both reports bode well for tomorrow's monthly employment report. and many economists raised their estimates on the number of people getting new jobs in june. despite these positive developments, stock markets were mixed. european markets closed lower, and here on wall street, investors held off from making any big commitments. the dow fell 47 points, the nasdaq barely budged, and the s&p lost six points. "nightly business report" is brought to you by: captioning sponsored by wpbt >> tom: more now

the european central bank lowered interest rates to an all-time low. china cut several key interest rates for the second time in a month. and the bank of england held its rates steady, but said it will pump billions of dollars into its economy through a new round of bond buying. here in the u.s., some hopeful signs for the weak job market. private employers added 176,000 new workers to their payrolls in june, stronger than the previous month. and the labor department said the number of people filing for

investors are waiting on key meetings at the federal reserve and european central bank. >> tom: i'm tom hudson. this week we're looking at regional banks. why smaller bank stocks are out- perfoming their bigger competitors. >> susie: and what's it going to take to make a new generation of innovators? we visit a camp teaching teenage girls about engineering. >> tom: that and more tonight on "n.b.r.!" >> tom: there are high expectations this week economic leaders in the u.s. and europe will take action to help their struggling economies. beginning tomorrow, federal reserve policymakers hold a two- day meeting in washington. central bankers in europe meet on thursday. and the important u.s. july jobs report is released on friday. the hope is policymakers will announce new ways to get the world economy growing. darren gersh reports. >> reporter: on wednesday, the federal reserve may give investors a new date to mark on their calendars-- 2015. chairman ben bernanke and his colleagues had promised to keep rates exceptionally low through late 2014. >> i think it would be natural, ven that the

should central banks charge a negative rate?bank pay them as we do here in the united states a quarter of a basis point to keep the money on deposit or should it charge them and could that lead to additional lending in the economy? i just want to point out here that at least one central bank decided we'll charge you if you don't invest your money. >> people point to contracting credit in the u.k., right, even despite more and more qe from that bank and the old phrase you can lead a horse to water, steve, comes to mind. >> and you can't make them lend. right. two quick things here, carl. one is that there is concern about how this would distort lending if they were forced to lend otherwise they would be charged, and the second thing is money markets. this would really hurt the money markets which have already been hurt by very low interest rates. >> people looking for consistent returns there. might be disappointed. thank you. steve least man and want to bring in jeff cleveland joining us this morning as well to talk about what t

later this week amid reportedly heightened expectations that these central banks are moving toward a new action but says the wall street journal doubts linger as to whether central banks even have the tools to fix the economic problems they face well reports of preemptive action have us worried about weapons of mass monetary destruction in contrary to those who fear the central banks can't do anything else we'll take stock of the collateral damage and brace yourself because this brings us to bill gross's latest note the pimco bond titan says the cult of the equity may be dying but the cult of inflation may have only just begun we'll talk to mike maloney founder of gold silver dot com about the cold and us home prices rose and made for the fourth month in a row of pointing to the s. and p. case schiller data out today look at where this that seven months just swath of other data pointing to the u.s. economy losing steam let's get to the day's capital account. we have a central bank extravaganza of meetings and front page anticipation of action this week the z.b. meets after mario drug

the first central banks of germany, the reich bank of prussia, was established to finance the prussian army. napoleon's establishment of the bank of france was not -- but it was established to finance napoleon's campaigns. so central banks themselves have a very checkered history, both from their origin to this very day, as jim grant was saying, of financing certain political priorities established by either ruling classes, monarchies or even democratic majorities. what a currency established by law as a weight unit of gold, without any exorbitant privileges given to the british pound or the united states dollar, as was the case under bretton woods in 1944 to 1971, or in the inner war period, 1918 to 1941, to the pound and the dollar alike, without any privileges given to any currencies to substitute for gold, you could then measure the purchasing power of gold itself over the long period, and the great professor roy jastram did the great work, which i would recommend, called "the golden constant." it shows that the purchasing power of gold, specified as a weight unit, for examp, of an

can't control where that money goes and yet we see central banks have record balance sheets but a lot of that money that they've pumped out of the economy or try to just end up right back at those central banks in the form of excess reserves so what you think the chances of are of a real inflation of the economy in a crisis scenario and you're quite correct because of the nature of fractional reserve banking the way the money supply really expands through loans give them to individuals and corporations by the banks but in this kind of an economy people don't really want to borrow they're too afraid to borrow and at the same time the banks are afraid to lend so that's why that's happening but a number less those dollars have been creator and they are going to go out into the economy in addition to the fact that there are now about seven trillion us dollars outside of the u.s. held by foreigners and these people don't have to use dollars in trade from day to day they do them increasingly as hopper. and at some point i don't know what the catalyst will be they will start dumping th

meant survey, which was an improvementn the previous quarter, and if the u.s., europe, and china central banks have already made their moves, the bank of japan may wul not immediate to make any moves. we'll have to e,f course, later today after the jobs numbers in the u.s. how everything pans out. back to you. >> all right. so a lot to look forward to, but, first, u.s. jobs numbers. all right. ramin from the tokyo stock exchange. all right. we also have other asian markets open this hour, so let's see how they're doing. >>> pakistani officials have opened their country's supply routes to u.s.-led nato forces in afghanistan for the first time in seven months. on thursday a truck carrying supplies to nato forces crossed the border. pakistani officials closed the routes in retaliation for cross border air strikes by the u.s. military last november that mistakenly killed 24 pakistani soldiers. on tuesday u.s. secretary of state hillary clinton apologized for the botched raid for the first time. at a news conference on thursday, a pakistani foreign ministry spokesperson expressed hope that the re-o

meanwhile, china's central bank also cut its key interest rate for a second straight month. this indicates that the government is stepping up measures in its monetary easing actions. the people's bank of china said the bench mash lending rate will be lowered by 0.31 percentage points to 6%. the deposit rate will be cut by a quarter of a percentage point to 3%. the new rates will become effective friday. china's economic outlook is becoming uncertain because of sluggish exports to european countries as a result of the region's debt crisis. europe is china's biggest trading partner. china's consumption also remains low. the central bank's recent move ames to support the country's economy and secure jobs with stronger monetary easing. >>> well let's see how this is affecting markets. over on wall street u.s. stock prices ended on a mixed moat. for details on how stocks are trading here in japan, we're going to go to ramin melonguard. markets back in full swing after independence day holiday. how are tokyo stocks looking? >> let's go straight to the levels actually this friday mo

many believe the central bank will trim its current 3.5% growth projection this year. back to you. >> the bank of japan is standing pat on its policies sticking to the view that recovery is under way. it refined it's audiotape set buying program but made no change to the total size. the yield on ten year jgb hit a nine year low. 0.77%. this on news that the bank of japan is buying fewer short term securities. some remarkable levels that we're seeing here. is your own view that this move can keep going. can we keep seeing fresh lows here on ten year yields? >> this really started in april when the bank of japan really reacting to the exchange the rate, the yen exchange rate started very aggressive asset purchasing program. and since then the yield has continued to drop. whereas the bottom there, who knows. the bottom, i guess, now we've seen for two years in other places in germany, even in france recently a negative interest rate. so i wouldn't forecast the negative interest rate for ten year paper in japan, but clearly there's still the possibility of it dropping furth

central bank watch. india as tech giants emphasis in tcs results. 'll be joined on "worldwide exchange" for first on cnbc interviews. something to look forward to. earning season in india and top banks expected to post strong profits. we're joined with a preview live from mumbai. >> thanks. indian banks are expected to show good numbers. the low base effect of last quarter will have very strong number. on an individual basis, particularly go like state bank of india, largest bank in q1 on the back of very high provisioning, with new management stepped in to clean up operations and asset quality so earning basis expecting a strong set of numbers. they started the clean-up process a long time back once again started focusing on increasing its balance sheet with respect to lending to retail. we're expecting very strong set of numbers. one we're watching will be hdfc limited, very stable and consistent in performance. every quarter if you watch performance net interest by 30%, similar so to what they're expecting this urt quarter as well while net profit

that creates uncertainty in the central bank in our corner as investors hope for the markets. >> susie: and speaking of jobs, what do you expecting for the report on friday? >> well, it's clear the labor market is slowing. we're looking 60 to 80,000 jobs added, and unemployment rate. the kind of report that doesn't give us much cheer because the economy is not really moving forward. >> susie: a lot to look forward to this week. thanks nick colas from the convergex group. >> tom: jury selection got underway today in a san jose federal courtroom as technology giants samsung and apple battle over what could determine who controls the u.s. smart phone and computer tablet markets. ruben ramirez reports. >> reporter: it's the latest and could be the most-watched high-stakes court fight between apple and samsung over patents. at issue is product design. apple sued samsung claiming samsung copied the look and feel of its iphone and ipad. for its part, samsung claims apple copied the iphone from sony. but late yesterday, the judge overseeing the case ruled samsung can not argue sony may have in

money -- not only the european central bank lowering the interest rate, but also the chinese centralank and the bank of england pumping funds and directly into the market. how bad is the economy worldwide? the debt crisis is by all means the worst for the eurozone, but the ecb is running out of means slowly. vw shareholders had reason to celebrate. the takeover will increase profits considerably. >> let's take a closer look at the closing members. the dax trading lower on thursday -- 0.5% lower there. euro stocks 50 also down on the day. in new york, trading still under way for the dow jones industrial average, also retreating from the biggest three-day rally of the year as investors wait to see the results of a key jobs report coming out on friday. the euro declining against the dollar, trading for $1.2386. >> stick around. we will be back in a minute's time with an update from japan and the stricken fukushima power plant. >> i feel like animated films, we have a piece on a new exhibit that shows how you can get inside how they are made -- if you like animated films. >> welcome back