and just along those lines to follow up do you think that it's monkey see monkey do banks see central banks doing this and things are going to get involved. i'm not sure it's the it's the traders the money market or treasury desk or these banks say ah if they do it will do that i think what free traders are saying is i think we can get away with this great right yeah there's e-mails now and those are some fun fodder for at least outrage in themselves but i want to ask you know you have said before that living in a central bank world is like living in a hall of mirrors or living under a central bank it's like being in a hall of mirrors and then more recently i heard you compare it to the truman show that movie where we're truman is in a fake world but he doesn't realize it until he's going along in his rowboat any hits actually on the campus and this is the limits of his fake world and i think you said we're already there so does this mean we're at the end to arrange things can continue to manipulate the fake world that they want. i think that we exit the fake world when people decide that t

and just along those lines to follow up do you think that it's monkey see monkey do banks see central banks doing this as an oh it's going to involve i'm not sure it's i'm not sure it's the it's the traders on the money market or treasury desk these banks say ah if they do it will do that i think what free traders are saying is i think we can get away with this great right yeah there's e-mails now and those are some fun fodder for at least.

gold been swapped with the gold of other central banks so that other central banks might intervene in the gold market to keep the us government's fingerprints off. the transaction and we believe there's gold there we don't think the drawing of it really accomplishes much we want to get into the records to see how many ownership claims there are to it so this doesn't answer your questions drilling drilling holes into two to five percent of the u.s. is gold that is reportedly still there is stored there is not going to solve it now let's talk a little bit more about manipulation but of the silver market because this is another story that's come out this week is this article in the financial times that the u.s. is for your probe of possible silver market manipulation has essentially gone cold that they don't have enough evidence to pursue a legal case in your research and experience is that true is there just not enough evidence to move forward with any kind of real case if the if the silver market is not manipulated we learned today it's the only market that is not manipulated and i wou

and through the shadow banking system well and so then as as we're talking about deflation and central bank efforts to of boyd at possibly pumping trillions of dollars then how did the decline then and liabilities in the shadow banking sector factor and is this deflationary does this bring prices down and are central banks effective and making up for that contraction. absolutely this is all part of the game so we had this giant credit bubble tens of trillions of dollars were layered on in the chart you showed you know the shadow banking liabilities started to first exceed conventional liabilities back in ninety five this was the period of time ninety five was when greenspan did a couple of things he took away the influence of something called the sweeps program which allowed regular banks to sweep conventional deposits off of their books at eleven fifty nine at night take a snapshot sweep them back on and thereby avoid a lot of the reserve requirement ratios so this we have this extraordinary. explosion that really you can pin it right there in ninety five it did a lot of things for us it f

from the european central bank. assuming the conditions allows him politically to do so then he will need some room in terms of the fiscal transfers in order to stimulate domestic economy now again this is pure european thinking there is nothing in the growth nothing generates growth other than government spending so he is trying to pressure europe and angela merkel to increase the fiscal policy coming now let's remember that we already have the fiscal policy coming to have the part which was signed by the european leaders back in june which is effectively a shambolic exercise in reason they relabel that fifty five billion of already allocated funds into new funds and they have enjoyed an idea that the european investment bank is the going to get them billion the new capital from the european sovereigns from the european commission as the result of that it will be able to leverage that to borrow sixty billion more so even on the surface right now it's very clear that the fiscal policy within the e.u. is completely i

central bank's unchanged. this is not a bold action they were hoping for. the president of the central bank promised to do whatever was necessary going forward. >> we have seen so many make or break summits since the eurozone crisis began and that of them seem to have worked. many of -- many have stopped wondering if the european leaders can stop the crisis. >> we need our mandate. the ecb is ready to do whatever it takes to preserve the euro. believe me, it will be enough. >> investors were thrilled to hear him say that. after the policy today, there were hoping to find out more. >> with mario draghi having said that european central bank will do whatever it takes, whatever it takes is some definitive solution. >> at 12:45 we have a statement from the ecb saying that interest rates were unchanged. it was time for the man himself. >> the governing council might undertake out right operations of a size adequate to reach its objective. >> is willing to help push down the cost of borrowing for countries like spai

most analysts say don't expect from any near term help from the country's central bank. >>> okay. very good welcome to you. if you just joined us today on cnbc this is "worldwide exchange". we have some data. the rate unchanged at 10.7%. this is the july rate for italy. the june rate revised slightly down. 10.7 to 10.1. not quite as high as we thought. fairly elevated. still loads to get through on today's program. we'll be over at jackson hole as investors wait to see what ben bernanke will say about any new rounds of bond purchases. we have second quarter gdp figures which suggests india is going all right. we'll be out in paris where the french finance minister has told cnbc the government will stick to its deficit goals and pledges action on jobs. talking about jobs, we also have the latest from the republican national convention in tampa, romney formally accepted the nomination. he's talking about trying to create 12 million jobs. >>> but first the anticipation has been growing all week. fed chairman ben bernanke will give the keynote speech at the fed's annual symposium in j

what's an investor to make of the central banks in-decision? pimco's mohammed el-erian, joins us with what you need to know about today's fed meeting. >> susie: meanwhile, volatility rocks stocks after a technology issue at one big market maker leads to a bumpy open here at the big board. >> tom: that and more tonight on "n.b.r."! >> susie: no new action from the federal reserve today, but tom, policymakers gave strong hints that it is ready to take steps, if necessary, to boost the economy. >> tom: susie, the key words from the fed: it is "closely monitoring incoming information" about the economy. this is the same kind of language the fed used the last time it launched a new bond buying program. the fed's assessment of the u.s. economy was also pretty gloomy. it said economic activity decelerated over the first half of this year. employment growth has been slow in recent months. the housing sector remains depressed. and household spending has risen at a slower pace. >> susie: investors were disappointed that the fed decided to stick to its cu

around the world is it because for years investors perceptions about central bank power has matter most to markets and perception has been reality we'll discuss if the power of perception is running out and though it is the peak of the summer let's talk about winter i cannot see a winter to be exact why well it historically features high volatility slowed a negative growth deal levering by consumers corporations and governments hoarding of cash by banks as a deflation and economic depression due to a bursting of unsustainable credit bubbles sound familiar i think so peter baxter will explain why he thinks when it can draw t.f. winter and where the economy should be headed based on these these and here's a hint there's hope but it's going to get worse first and early facebook investors were set free to sell stocks setting the price down to new lows this is despite disasters earlier this is a disaster despite disasters like this i should say the broader trend we've seen in stocks has been they've been rising the treasury yields have been at record lows our gas will tell us what he th

. >> european central bank president today said the euro is a reversal and added that the bank planso buy government bonds to drive down high borrowing costs. >> that is good news for troubled countries like italy and spain, but drug he was short on details and a timeline, which sent stocks plunging -- draghi was short on details and a timeline. >> last week, the european bank president said he would do whatever it takes to save the euro, but on thursday, he produced few results. >> the euro is irreversible. the governing council may consider undertaking further nonstandard monetary policy measures according to what is required to repair monetary policy transmission. over the coming weeks, we will design the appropriate modalities for such policy measures. >> the ecb has signaled it may start buying government bonds, but there's still no concrete plan of action. germany opposes the strategy, saying the ecb's job is not to finance eurozone debt but to insure the stability of the currency. >> it can create more liquidity in concrete terms that everyone understands. it can print money,

when the central bank chooses to act and redistribute purchasing power is the central bank is actually determining who gets to decide what in the economy when the central bank transfers purchasing power out of the banks through quantitative easing. it transfers real power to command the economy. to the financial sector and away from the productive . industries and business people and entrepreneurs and individuals and so as the financial sector of the operates more power it controls move for the economy and so if it is effectively central under the central bank you saying the find that the second ship should have more power all right final question john the global economy. if we know that the only outcome is going to be at that jubilee of some sort because there's no way five hundred trillion and more in debt it's going to be paid off for the global economy of a sixty or seventy trillion g.d.p. output so what's the timing on this and now what will be the winners and losers well there are three of us yeah there is the debt people the what we forgive the debt and start again there is lick

quarter ab ra aberration has been challenged. >> we're in the middle of a big week when a lot of central banksre expected to act, not deliver. does this tilt the odds more toward the bank of england? >> tilts the odds and raises expectations. as you said, the difficulty we may face is those expectations aren't matched in terms of delivery. this is a problem we have. a number this close to a bank of england rate tomorrow feels more critical to the outcome tomorrow. >> guess on services pmi, a much bigger component? >> yeah, i always get the sense manufacturing seems to capture the market's imagination. we have this weakness in the uk economy. the idea sterling is safe haven was frankly a little tricky to justify. i think this just underlines how weak an argument that is. >> how does the dollar help you trade through the fed, the ism and the adp as well? >> i think tread water through the numbers unless we get an absolute shocker because we want to see what the fed will say and do in terms of the policy reaction. most people i've spoken to on the trading side, they're wary of the fed trying to t

two central banks, so little action especially from the ecb and the european central bank, how couldwould do whatever it takes and then, if you please, tell us it will be enough. then, of course, at the meeting, nothing, the phrase they use again and again, they say over coming weeks we will put together plans that are appropriate. coming weeks! as for the fed, they're talking about providing accommodation as needed. the ship is sinking. they're a hull beneath the water line. the markets are looking for confidence and on both sides of the atlantic, the central banks still have their heads in the sand or perhaps somewhere more appropriate. it's time for action. >> all right. we are joined on that, richard. richard quest, host of "quest means business" on cnn international. all right. q and a and you. you heard richard and me and now it's your turn and let us know if it's time for the fed to step up and protect us before it's too late @alivelshi. i read them all and i'm ready for you. it's time for the boss to step in and handle the situation. i'll tell you what congress was busy with

well, i would say that the european central bank has done monetary easings, the european central bankas a lot of -- has done a lot of things to ensure that the euro zone is going to stay together. when you are saying trading against the european central bank, you obviously mean the development of the euro. we had been bearish on the euro for the past 14 months, and quite correctly so. i think what we are now going to get here in the market is we're potentially getting into a corrective phase simply because what the european central bank and other authorities will promote is a reduction of bond spreads. that has severe implications on how bond portfolio managers are going to react to this. when you compare that, what happened after the ltos at that time, banks were buying bonds and they were adjusting their portfolios accordingly. tom some extent we head to something like that again. you find here an euro bear becoming a little bit short constructive on the outlook. >> kevin. >> on the medium, too, and beyond outlook maybe for the euro versus the dollar in particular, one of the though

and, in honor of the olympics the market has passed the baton to the european central bank to see what they do tomorrow. >> reporter: u.s. stocks have been in rally mode for weeks, as investors hope for more stimulus from world central bankers. after hitting a summer low in early june, the dow has gained more than 7%. but, market pros say the europeans need to do something really big tomorrow. otherwise expect more serious selling. >> what the market really wants is for the e.c.b. to say that they're going to start buying the sovereign debt of spain and italy in the open market. that's really what the market wants that's what you would get the most positive response in the market from. i'm not 100% sure they're going to do that now. >> reporter: if the european central bank disappoints the stock market tomorrow, all eyes turn to the next fed meeting a two-day one on september 11 and 12. that would mean six more weeks of pinning for more stimulus. suzanne pratt, "n.b.r.," new york. >> reporter: i'm diane eastabrook in lincolnwood illinois. still ahead, consumers let up on the accelerato

later this week amid reportedly heightened expectations that these central banks are moving toward a new actions 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 just a rock said 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 call of 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 according to the s. and p. case schiller data out today look at where this bit of monks this swath of other data pointing to the u.s. economy losing steam let's get to the days capital account. we have a central bank extravaganza of meetings and front page anticipation of action this week the z.b. meets after mario draw got mark

central bank policymakers will maintain the current moll tear policy as the american economy is showing signs of a slow down. the federal reserve issued a statement after its two-day policy meeting keeping short-term interest rates at low levels until late 2014. that is at between 0 and 1/4 percent. the economic recovery has slowed slightly with weaker growth in jobs and consumer spending. it warns that credit fears in europe are posing significant risks to the u.s. economy. it says that economic recovery will be at a moderate pace for the time being. the statement says the fed will take further steps if economic indicators show the need for action. for analysis on the decision we spoke with the senior market economist at ufj. he says the u.s. central bank showed a strong will to take further action and notes the possibility of holding an emergency meeting if necessary. >> rorter: the biggest change is that they are saying the economy [ indiscernible ] it is surprising because usually central bank has optimistic view even if they fear the economy is not so strong. but this time, they cl

the european central bank and troubled countries have been trading words between the bank's bailout offers, but political leaders are reluctant to sign up for the mandatory spending cuts that go along with the bailouts. from greece to spain, after two and a half years of this crisis, september is shaping up to be another crucial month for europe and its response to the continent's government debt troubles. next week, the governing council of the e.c.b. meets. the bank could announce plans to buy spanish and italian government i.o.u.s. but any action is likely to come with conditions for those government's to address their ballooning budget deficits. >> susie: what happens at those key meetings thousands of miles away from the u.s. could impact american businesses and investors. joining us now with some analysis of what to expect-- scott macdonald, head of economic research at m.c. asset management holdings. >> so scott, europe central bankers meet next thursday. do you think that they will finally agree on some kind of a plan to end this european debt crisis? >> well, i think, i don't know

the european central bank waits and watches. it's leader mario draghi takes no new moves to support the euro-zone. >> susie: i'm susie gharib. knight capital pegs losses from its trading fiasco at $440 million, but the hit to wall street's reputation could be much more. >> tom: and, we continue our look at regional banks, with one of the largest, bb&t c.e.o. kelly king joins us. >> susie: that and more tonight on "n.b.r."! >> reporter: all talk, but no >> tom: all talk, but no action. europe's central bank today failed to announce any new concrete plans to help clean up the euro-zone's financial mess. susie, e.c.b. president mario draghi said he's ready to do more, but offered no immediate steps to solve europe's financial crisis. >> susie: tom, it was a huge letdown for investors around the world. draghi had raised expectations when he promised last week to do whatever it takes to protect the euro. when he failed to deliver on that, markets sold off in europe, and here on wall street. the dow lost 100 points, the nasdaq and s&p

a strong and independent central bank. the central bank that can make monetary policy decisions without being influenced by short-term political pressures. the research shows that countries with independent central bank said lower inflation, more stable economies, and overall more confidence in their currency and so on. it is important to have that degree of independence. the reason for this is because monetary policy tends to work with a lag. you want decisions about monetary policy to be made by people not looking at elections a few months down the road looking at the long term saying was right for the economy. independent central banks are very important. we're in a democracy and, obviously, the central bank and federal reserve of the united states has to be accountable and transparent. we are indeed non-partisan and try to make our decisions on technical analysis based on the economy and not political considerations. this is where we have the decisions about monetary policy and there's never any discussion about politi

european central bank and china central bank, you keep that in mind.hank you so much for being with us tonight. we appreciate it. >> happy to be on. dennis: okay. tropical storm isaac has crashed the republican party in tampa, forcing the polls to put their convention on hold. there is a way to start beefing up your portfolio on election 2012 right now. the market mover with an innovative strategy is here with details next. >>> apple wins a landmark patent fight against samsung. but the next major patent clash is already brewing and it is against the u.s. government. the inventor leading that charge joins to us explain. do you ever have too much money? ♪ . . . you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. . . orner. us bank. as part of a heart healthy diet. that's true. ...but you sti

merkel said the fund should not be allowed to borrow directly from the european central bank, but that is an option that monti supports, and he praised the virtue of flexibility. >> a few things can be achieved under certain conditions, but perhaps these can be done in the future if the conditions change -- a few things cannot be achieved under certain conditions. >> for now, the two appeared friendly. a show of unity was the message for the day with specifics left for the future. >> dw's political correspondent has been following these developments and joins us now from our parliamentary studios. thanks for being with us. there was a definite show of unity, but our land and wrong closer to finding a common strategy when it comes to solving the eurozone debt crisis -- are berlin and rome closer to finding a common strategy? >> italy is buried under a mountain of debt. it is struggling to keep its head above water, as it were. germany is flush in relative terms, looking financially very strong compared to italy. italy is having to pay huge premiums in the bond markets in order to borrow