is cheap in the dollar you know if china has three trillion dollars of dollars in assets and you lower the dollar ten percent that's a three hundred billion dollar wealth transfer from china to the united states china is learning the hard way that you can't really trust the united states anymore arjen if china is losing trust in america and the u.s. dollar and by manifesting that loss of trust they are buying gold and gold prices are going higher people are losing looking at gold and they're and they're saying well that's the proxy of the distrust of the dollar china's aggressively moving me ask you this because you're so plugged into what's happening in washington and wall street you've got to be like the insiders insider it. is china going to make a surprise announcement that they have accumulated suddenly another one or two thousand tons of gold that nobody is on anyone's radar data inside information with us you can share with us in the global audience well i think we can look at experience because they did this before in two thousand and nine charges official reserves were about p

is requirement to require dollars to make that happen so there's just a demand for dollars and how do you square that circle john because as long as the situation is teetering on the extension they'll be a demand for dollars to on why the derivatives contracts that are causing the problem yes part of what's keeping dollars as strong now is that debt in dollar terms creates a demand for dollars like you said so people are out there trying to find dollars and borrowing in order to pay off their existing debts but that's one of those things that can keep the game going for a while longer but won't save the dollar in the end because once people lose confidence in a currency the change happens very fast you know historically you know you see a system going on and going on and going to just falling apart you know why more germany was like two years it's still a hyperinflation that we we remember to this day and yet it was over in the blink of an eye just because people lost confidence in that currency and the same thing will happen to the dollar eventually if this history is any guide but.

work on the dollar but this says given some extra innings to the dollar but at some point even those extra innings come to a close and i think what we're seeing now with some of these prices in the commodity sector spiking to all time highs or twenty or thirty year highs and maybe this is the dollar collapse inflationary spike the timing seems to be right now john your thoughts when it comes this is what it feels like the early stages of it and again these guys have so many weapons and basically baby have unlimited printing presses they could know you know if your house is worth of million dollars they may want to they could buy your house for two million make you feel ridge make you spend and keep you gave away one for a little while longer so you never know when it's going to fall apart but this is what it would feel like with gold and silver and oil all going up and farmland getting more valuable and and paper assets becoming less and less interesting to everybody because they don't return anything so money is flowing into hard assets because they've been growing relative to paper

dollar, the trade weighted u.s. dollar. and down here we start with the first qe -- i'm sorry, the second qe which was november 2010. notice how the dollar fell sharply with qe-2, not qe-1, but qe-2. that hurt consumer incomes and wound up hurting the me. my point is there's such big numbers here, let's go back and look at this. we have ending of qe-2, the ending of qe-2, all right, into mostly the late 2010 and 2011. look what happened. the dollar goes back up. do you see that? when the fed stops pumping money into the economy, the dollar goes back up and then it levels off nicely. now, with mr. bernanke's announcement and rumors beginning in june, we find that once again the dollar starts going down again. it's actually not a small amount of money. it's about 75 all the way down to 69 on this trade-weighted index. what's the moral of this story? it's very, very important. qe-2, money printing, lowers the value of the dollar. when the fed stops, the dollar gets better. but when they start pumping new dollars in, all right,

strong now as the debt in dollar terms creates a demand for dollars like you said so that people are out there trying to point zero and borrowing in order to pay off their existing debts but that's one of those things that can keep the game going for a while longer but won't save the dollar in the end because once people lose confidence in a currency the change happens very fast you know historically you know you see a system going on and going on to going to just falling apart you know why more germany was like two years is still a hyperinflation that we we remember to this day and yet it was over in the blink of an eye just because people lost confidence in their currency and the same thing happened to the dollar and surely this history is any guide but. there they do have tools and there is a system that's which kind of tends towards keeping the dollar going for a while but again it's you know all. all of this is going to go until it stops and we can't know when that's going to go i mean we we couldn't know the day the housing bubble was going to burst word be tech stock bubble wh

course i'll pay four million dollars in fines if they make forty million dollars by rigging the market they market should be about price discovery where buyers and sellers show up and as a result of their interaction a price is discovered but today we're in a market where the bankers on wall street pick a price first and then fill in the fake trades to get to that price it's a complete reversal of what we have come to know as a free market capitalism and it's telling people. you mention price discovery there is a quote here from daniel m. hawk who is at the securities and exchange commission and he said the f.c.c. will not tolerate any abusive practices that is designed to distort these natural forces of supply and demand price discovery but that's false as you see it condones these practices there are captured regulator the people around the f.c.c. are routinely implicated in securities fraud they they are not as trustworthy as you can throw them but the fact that they can continue to lie blatantly as they are doing now is a testament to the complete lack of any accountability whatsoe

because this is a three to four trillion dollar a day market is a multi hundred trillion dollar four x. market so you need to be in minute relating trillions of dollars of contracts on a daily. basis to manipulate live or down to these artificially low levels which have the effect of putting pensioners out of business i see pensions and there is most give up benefits here's nick clegg the liberal democrat saying pensioners must give up benefits no nick clegg pensioners must revolt against a corrupt bank of england that's stealing all their money with your help mate clay explain this while you're out there calling badgers well max if you could hand me the financial times of their side like to point out you say that nick clegg says pensioners should give up benefits and this is an important thing related to this headline here than kirsten yield role in setting of libel or now the positive spin from the financial news has been that mortgage holders benefited from this crime so let's all be happy now nick clegg they're saying pensioners must give up benefits well these two have minds go

a barrel when you see oil under one hundred dollars you it means that p. . all that are producing extra oil are losing money and that's what the real problem is and that's why you're seeing these cutbacks in iron ore expenditures people aren't developing iron ore not because it's not plentiful i mean there's more iron ore in this earth's crust than we could ever use but to get it out and to ship it requires lots of water lots of oil and those commodities are getting scarcer and more expensive by the minute that's really interesting i want to get more into iron ore because some people that i talk to that follow closely china they're worried about slowing growth in china because they're using iron ore which is falling as a gauge so what role do you see iron ore as as a gauge of china's growth and how do you stack that up against for example the stimulus plan they just announced. i think iron ore prices in china are going to bounce back and probably bounce back fairly sharply yes they have dropped and yes manufacturing growth and in china has slowed but you kno

three hundred thousand dollars then they'll be paying one hundred sixty five dollars to pay off the spawns the i did behind this the concept behind these kept appreciation barnes is that three hundred thousand dollar house in twenty thirty forty years could be worth a lot more money might be worth a million bucks right so that and that fifty five dollars per hundred grand is going to double or triple or quadruple that's the concept behind this and i think it's important to remember that that might happen right we see extraordinary growth in home values assessed values in california i mean the point is that nobody knows that it's going to happen so i think when we talk about the issues with this and the problem with with it and frankly the scandal with it is not so much that it's absolutely guaranteed to be a complete nightmare because it's not it's just that it has to the whole sorts of things have to fall into place the assessed value has to grow. we have to see inflation if one of these things happened this could turn out to be the best deal in history but it it might not and it p

really when you step further back what has changed so much in the world that oil has gone from fifty dollars a barrel in two thousand and seven to over ninety now just five years later maybe it doesn't add up we will hear from our guests and plus we are in new york on a day that u.s. g.d.p. was revised down one point three percent on an annualized basis that is not very much growth it is pretty paltry now a little bit of trivia nine hundred twenty nine stocks crash it saw effects in times square so we headed out to times square for a special loose change to see if we're seeing any impact from what's going on in the economy now let's get to today's capital account. all right so as i said at the top of the show the e.u. parliament committee voted unanimously for tighter restrictions on banks trading in this included curbing high frequency trading they voted towards that now add this to a list of countries that have either proposed or an active bans or some kind of provisions regulating more tightly high frequency trading ok germany canada. also australia i believe so where is the u.s. on this

dollar in reserves if this quantity or there was a failed bond auction from. just less demand what would really be a turning point to counteract all that say this is never going to be an issue where the congress has the capacity to tax but it also was asked for both of the people. the president's political advisor only last summer said approximately the summer of two thousand and eleven during the last. kerfuffle over the the debt limit they had proof of this perhaps if they watched both but the president's chief advisor on politics said that. approximately that we will not just go about paying our bond holders who can't pay social security we can't meet the defense budget. so they are saying that there is a political contests. engine seat to the nation's willingness to meet its obligations to to its creditors. it's not such or a startling revelation or a revelation i suppose these things are all political but still it's right there in the in the public record. and people who say that. we can create all the dollars we like well they that is true that is litera

how about a dollar? want a dollar? you got a dollar! ( cheers and applause ) stop!udience reacts ) i thought it was a dollar for sure. you want to keep it or spin? >> i'm spinning. >> drew: good idea. did you think it was a dollar? i'm pretty good at judging now how it's going to stop. did you think it was a dollar. i really thought it was a dollar. you need 85 now. 85. 75 would be nice. 75 would be nice. 90. right over there. ( cheers and applause ) elaine, you've got to beat a 90 now. he didn't get a dollar, but he got a 90. want to say hi? >> yes, hi to all my family and my friends and all my grandchildren at home. >> drew: 85. you have to spin again, you need five. he has a 90. i know. here you go. sorry, elaine, take care. stephanie, come on over here, stephanie won $10,000 on pay the rent. want to say hi? >> hi to my mom, holly, i love you. >> drew: thank you very much. all you need is... this is going to be a dollar. this is going to be a dollar. stop! ( bell rings ) ( cheers and applause ) wow, you are having a day. stephanie, come back here, you have a doll

and that could be low like millions of americans i've lost thousands of dollars in retirement funds and i haven't had as bad as many it's not just about them it's about me too i have a stake in it and like millions of angry about the way our economy whistle records . to help with our investigation we spoke with convicted white collar criminal sam and talked to white collar criminal hospital because for those who subpoenaed documents we destroy documents use of people witnesses will walk so who are at a disadvantage that accosted a white collar worker in effect where economic predators. to an investigative reporter on the business beat wall street steals far newer than the mafia says gary weiss a wall street. takes large much larger sums of money to involve the mafia stales the regulatory system is such that they can get away with it the lack of media scrutiny the absence of regulation tonight spring the illusion that markets and real estate could only go up created a casino mentality and environment for successful fraudsters and white collar criminals your honor for many years until

billion dollars a year that's of the be a thousand million dollars a year personally each one of them and they're paying a maximum fifteen percent income tax on that money same way that romney does this is insane we need to reregulate our banks and take them back to being regular boring consistent conventional businesses that you know are profitable in an ok business but not a casino and that's it for your take my take tonight if you'd like your comments and questions or in this segment the big picture listen up we want to know your to send us your comments by visiting the tom hartman facebook page via twitter at tom underscore her or in the chat room on the message boards or through the blog at thom hartmann dot com you can also leave a message on our rant line at two two by three six fifty three zero six agree disagree sound off it's all welcome but remember that your comments may be used on the ear. it's the good the bad and the very very and trap tisha slee ugly the good john archer archer is a republican candidate for the u.s. house from iowa when asked by a reporter if he differ

cruise, this is a four year and four month lease that would generate a little over a million dollar for the port. i'm here to answer any questions if you have. >> supervisor kim? >> thank you, seeing that the budget analyst has broukt up the competitive bidding issue, i think it would be helpful to go into a little bit about the history and the process aof why they think this is a good thing for the board to approve given that's it's a competitive process. >> i can address that, ammunition llc is going to approve this in consideration for that amount of work, we're going to waive about 110 thousand dollars of rent, certainly a net improvement in the port's balance sheet. that's one reason. the other reason is annually, we do a survey of commercial rent rate ins the area that are comparable, for this particular building, we determined that the market was around 2 dollars to $2.50 per square foot, in this case, ammunition is paying effective wait of $2.67, for those two reasons, we feel this is a good financial opportunity for the port, more generally speaking, that rate survey process th

so we'll talk about both and china has reportedly approved plans for a one hundred fifty billion dollars in infrastructure spending china's growth is no secret has been slowing and analysts have been concerned about gauges such as slumping iron ore prices and what they indicate about china's growth so how does this stimulus factor into the equation will last commodities expert steven lee and speaking of commodities barack obama in his speech at the d.n.c. last night talked about a path where the u.s. controls more of its own energy here's what he said about oil. in the last year alone we can't all imports by one million barrels a day more than any administration in recent history well whatever speaking of control the white house has reportedly been considering another release of emergency oil reserves despite this possible manipulation along with slowdowns in places like china and of course in europe we'll talk to analysts lindsay hall about why she still anticipates higher prices for oil let's get to day's capital account . so as we know a new jobs report is out today for august which i

today received fifteen dollars after an advance of ten dollars had been deducted. know whether i should pay this bill to the grocery or feed my children first. thirty five dollars this isn't bad at all. every day is to go to the forest and gather firewood. since this is what. kilometers carrying a heavy burden. apology is strength. where's my son. come here son. you. know michael. and i'm going to be a mother. why did you put that on it looks nice. because i don't. i'm not going to die my son will become a doctor but i know he will. look. from finally can go home which entails four days of travelling. there is fertile land along the river but cyclons and floods cause havoc for many families. for the brothers it's their first visit in six months this year. i come from. takes two or three days to get there but i'm so happy to be on my way home i can see my parents and brothers. now they hear that i'm coming and that everyone is wondering when i will arrive that they are so poor in my hometown even the roads are very rough. are you married yet no no yet. see i'm alrea

in the dollar should reach the billions hundreds of billions of dollars billions i said millions and millions from the pockets of poor or to people who are far better positioned there are show called victims to go the upper one percent of the population own thirty percent of america's returns to wealth that is dividends interest and capital gains five years ago they'd raise their proportion from thirty seven percent to fifty seven percent and today. it's estimated that the upper one percent of america's population. it's almost seventy percent of the returns to. the percent seventy percent that's huge yes that is it's unprecedented it's essentially it makes america look like a third world banana republic thank you. park avenue to the lobby of bear stearns. ironically bear stearns was also the billions of dollars they received in the bailout did not go into the company's cheer holders but to those to whom. it was a deal that ultimately saved the creditors to bear stearns by forcing it into j.p. morgan at the expense of equity holders michael hudson points out the bills the homeowners a

in the wall street journal from your article saying this is the deal from hell the fifty billion dollar deal from out so let's go back to remind everybody what this deal was and what the controversy was surrounding it the feeling at the time was you know there were so many disasters related to the deal from the moment it was announced that it just felt like what's next locusts like you know like you know what biblical plagues are due upon bank of america next so if you remember the whole deal happened because bank of america was passed by lehman brothers and then merrill lynch c.e.o. swooped in and said hey if you're going to buy an investment bank by us and of course you know lehman failed of that weekend because bank of america didn't buy it but then once bank of america bought merrill lynch the deal was done in forty eight hours it was really sloppy they overpaid for it you know the merrill share price was seventeen dollars a share and merrill paid twenty nine dollars a share so just from the beginning this was a really rich deal for a struggling bank and a lot of shareholders though

price of it was thirty dollars. no the issue of facebook was it was outrageously overpriced to begin with and they increased the price several times right before the i.p.o. even that fundamental what i would consider for them it's a fair value that i told my pain subscribers right before the i.p.o. i think things look a little worse now than it did then because there was already indication of facebook growth then with slowing it's going even more than it was at that time so facebook is mobile speculative play unfortunately was marketed as the best thing since sliced bread and the i.p.o. of the decade and that's not the case you know they did different enriches the company by over sun the stock and over pricing the stuff two different things but you know anybody who bought it's a pre got taken to. you know our favorite banks goldman sachs it out right reggie you mentioned goldman sachs now going back you know six months or so before the i.p.o. goldman sachs made an offering to clients that violated i.c.c. rule becaus