the last four four nam five years why haven't we seen more price inflation and that's because the fed reserve has been playing a game it creates the money into the banking system the banks could lend it to us but the federal reserve has through increasing the money supply manipulating interest rates so low as everybody knows and rather tend to lend the money to us consumers and businessmen at these artificially low interest rates the fed reserve pays these banks a slightly higher rate of interest to not lend the money and just keep them banked in the bank if you will but at some point if if if market conditions improve and business demand to borrow really increases well the banks will find it was profitable to start lending more and more and that money could easily come flooding into our economy i'm not saying that we face in any immediate situation an inflation as catastrophic as the ones that the german people suffered in the early one nine hundred twenty s. but if all of those trillions of dollars did start flooding into the market we could. actually see in inflation of an historical signi

fed in the last few years. the result in many ways of the crisis and the first is that the federal reserve has rediscovered its roots in the sense that the fed was created to stabilize the financial system in times of panic. used tools and we that were analogous in spirit to what the central banks have done for hundreds of years. we adapted it to a modern financial system. ,he other thing that was unique largely unique about this period, is that we were trying to help the economy recover from a deep recession at a time when interest rates were essentially zero in required us to use other methods, the most prominent one was forward guidance and asset purchases, neither of which is clearly, unless you put aside the depression were monetary policy was pretty --sive, this is the first one of the first examples of aggressive monetary policy taking place in a near zero interest rate environment. we are now seeing japan and the uk and other companies -- other countries also taking similar approaches and i think that will be an issue that monetary historians will be interested in exploring as well as monetary theorists

the fed reserve is taking the first step of unwinding its massive stimulus policy known as quantitative easing. it's down from $85 million to 75 billion. it's helped strengthen the housing and stock market. ben bernanke says the fed can still reverse course. that sent stocks skyrocketing. the dow and s&p closing at record highs closing the biggest daily gain in two months. the nasdaq closed at a 13 year high. the markets continue to climb later in the a week. america's economy is growing faster than first thought. the final reading shows an annual growth of 4.1%. that's up from 3.6%. this is the first time that gdp has topped 4% since 2011. gross domestic product is very important. it's the broadest measure of the strength and size of america's economy. we have big earning news. oracle beat analyst estimates. u.s. home builders broke ground at the fastest pace in over five years increasing 23% over october and on jennifer anastasoff -- on an annual pace. joining us are barbara marcin and alan blinder. he's author of the book after the music stops. thank you both for joining us. alan, wh

will you trust the fed going forward? the federal reserve act is an act of congress. it can be overturned by congress. we have to believe that the fed has sufficient critical distance from the financial sector, from the banks, from the nonbanks, from the shadow banking system. whatever you want to call them, whoever gets in trouble next time, we have to trust that the fed will get it right. we have to believe they can sort out solvency and liquidity problems. we have to believe they are not just handing out overly generous bailouts. i hope they can do it. and it's not just about the fed, it's about the fdic, it's about treasury, perhaps it's about other parts of the regulatory apparatus also, but mostly it's about the fed. i wish the fed well. i admire many of their achievements over the past 100 years, but i'm emphasizing to you that it is not gone well in recent years for deep structural, political, perhaps cultural reasons. and this problem has not, unfortunately, yet been fixed. thank you very much. [ applause ] >> would you like to have a few remarks in response t

the fed reserve is an independent agency within the government. it is important that we maintain our policy independence in order to make decisions without short- term political interference. at the same time, it is up to congress to set our structure, set our mandate that is entirely legitimate. we need to go and explain ourselves. we need to explain why certain approaches are not so good or how he could be better. obviously they represent the public. they certainly have every right to set the terms of which the fed reserve operates and so on. that being said, i think that we are in fact an effect of central bank. we are near the frontier the transparency. i hope that when they do review the fed, they rely on expertise and highly qualified individuals who know the ins and outs of monetary policy. those are not simple matters. it would be very interesting to have a thorough discussion of many issues involved that that has engaged in. again, i hope it will be on a high level that uses the best and most qualified people debating what changes, if any

it wasn't the fed reserve. money predates the fed reserve a little bit.efore iold was born, what do we do when there was no money? .ou bought it i will trade my cows for your chickens. not a good way of doing stuff. they come up with something. something that facilitates trading between chickens and cows. half a cow is not worth half a cow if it is dead. not very useful. bartering is a cumbersome and inefficient system. they come up with this exchange that we call money to facilitate these transactions. -- possibleassable to buy stuff. tobacco was used in money in colonial america. cool looking rocks have been used for money. what is the obvious one in the last 200 years? gold and silver. precious metals. what do you not want money to be? you do not want it to be too plentiful or is he to create. then you have a lot of money or too easy to create. then you have a lot of money coming. what happens? economic 101. the price goes up. everyone wants the same goods. prices go up. the fed is spending billions of dollars a day so we have more money. the economy i

fed in the last few years. a result in many ways of the crisis. the first is that the federal reserve has rediscovered its roots in the sense that the fed was created to stabilize the financial system in times of panic. we did that. we used tools that were analogous in the spirit to with the central banks have done for many hundreds of years but adapted to a modern financial system. the other thing that was unique about this was that we were trying to help the economy recover from a deep recession at a time when interest rates were almost or essentially zero man that required us to use other methods, most prominently and assetidance purchases. neither of which are entirely -- unless youly put aside the depression where monetary policy was, on the , this isetty passive one of the first examples at least of aggressive monetary policy taking place in a near zero interest rate environment and now we're seeing of course japan, the u.k., and other countries taking similar types of approaches and i think that will be an issue and an area where monetary historians will be interested in explor

the last four four nam five years why haven't we seen more price inflation and that's because the fed reserve has been playing a game it creates the money into the banking system the banks could lend it to us but the federal reserve has through increasing the money supply manipulated interest rates so low as everybody knows and rather tend to lend the money to us consumers of businessmen at these artificially low interest rates the fed reserve pays these banks a slightly higher rate of interest to not lend the money and just keep them banked in the bank if you will but at some point if if if market conditions improve and business demand to borrow really increases well the banks will find it was profitable to start lending more and more and that money could easily come flooding into our economy i'm not saying that we face in any immediate situation an inflation as catastrophic as the ones that the german people suffered in the early one nine hundred twenty s. but if all of those trillions of dollars did start flooding into the market we could. usually see an inflation of an historical signific

former fed reserve chairman alan pricesan says bitcoin are unsustainably high. going interest from investors. the software is not regulated by any country or banking authority. you have to really stretch infer whatation to the intrinsic value of bitcoin is. i have not been able to do it. maybe someone else can. if you ask me -- yes. >> hello. welcome to "countdown." i am mark barton. >> i am anna edwards. mulberry reports numbers within the hours. it is named after fashionable celebrities. and has been struggling under in creative erector quick june. -- it has been struggling since creative director quit in june. caroline hyde. of course. there was some speculation. vision oft like the it becoming more upmarket and more luxurious. he said, we are looking for a replacement internally and externally. they can work fine without her. they have got people on the creative team. ostrich leather bags in 2005. below $1000. alexa bag.ve the minister gave group are the g-8 civilized mulberry -- personalized mulberry bags. the prices went up 12% at the end of last year. the

that's how it was portrayed but a specific part of the legislation got rid of the capacity of the fed reserve to actually give the money to the public in the banks lobbied for that so it wasn't one of these recent like the. old frank that was probably hidden in the tub check so that they got rid of that particular laws of a they both section one section thirteen point three they gave the they got rid of it they gave who the right to what the gave that they the federal reserve the right with a majority vote to direct the money to the public rather than to the bank they have the right to have that right and they abolished it under dog frank even though the now obviously and some other words are going to go. they got rid of they make a scene speculating illegal commodity futures modernization act and here they ball is just another function of the fed a clue to let them do something good but i was talking about what a budget i know this is quite revealing it's still the political financial complex and i said we've got to get rid of them all so what are you doing here in the u.k. anyway talking to

that's how it was portrayed but a specific part of the legislation got rid of the capacity of the fed reserve to actually give the money to the public in the banks lobbied for that so was it one of these recent like the. old frank that was probably hidden in the tub text of that they got rid of that particular day of the laws of a section one section thirteen point three they gave the they got rid of it they gave who the right to what the gave that they the federal reserve the right with a majority vote to direct the money to the public rather than to the bank they had that right they had that right and they abolished it under dog frank even though the now obviously and some other words are going to go has to go. they got rid of they make a scene speculating illegal commodity futures modernization act yeah it was a baller just another function of the fed could let them do something good but you're talking about what a bunch of shy stairs i know this is quite revealing it's still the political financial complex and i said we've got to get rid of them all so what are you doing here in the u.k.

reserve guidance. and secondly the feds think the economy is improving. that's significant after years of being sluggish, after years of treading water we might see some growth next year. that's a big deal, and that's what gets markets excited. that i think is why you saw such a strong positive explosive market reaction to this taper decision. >> well mark, what happens when $10 billion comes in relybly month after month. is there going to be a difference. >> instead of buying $85 billion a month, they're not going to be buying $75 billion, but we don't know what is going to happen on the supply side. is the government going to issue as many treasuries? is fanny and freddy going to issue as much debt. if that reduces, then you won't see an impact. you will see a small impact on rates. and basis points are 100th of a point. so in the cost of mortgage or in across the economy. it will be noticeable to emphasize something that nela said. it's less the size than a signal in the change of confidence in the economy. >> at the beginning critics of the policy sai

fed in the last few years. the result in many ways of the crisis and the first is that the federal reserve has rediscovered its roots in the sense that the fed was created to stabilize the financial system in times of panic. we did that and we used tools that were analogous in spirit to what the central banks have done for hundreds of years. we adapted it to a modern financial system. the other thing that was unique, largely unique about this period, is that we were trying to help the economy recover from a deep recession at a time when interest rates were essentially zero in required us to use other methods, the most prominent one was forward guidance and asset purchases, neither of which is entirely new but clearly, unless you put aside the depression were monetary policy was pretty passive, this is the first -- one of the first examples of aggressive monetary policy taking place in a near zero interest rate environment. we are now seeing japan and the uk and other companies -- other countries also taking similar approaches and i think that will be an issue that monetary historians will be interested in explo

and on the federal reserve's hundredth birthday protestors are planning a day of national action they're calling it fed up one hundred people will head to all twelve of the federal reserve bank branches throughout the country to call attention to what they say is an institution that quote exercises power in complete darkness to talk more about this i'm joined by harrison schulte an activist with fed up one hundred in our new york studio and the r.t. correspondent who brought us this report perry and boring perry and let's start with you so as we look back at the fed over the past hundred years how would you say its role has really evolved what started out as a banker's bank as a lender of last resort it was established to create an elastic currency that currency has changed from a gold standard. what we have now is completely free of money mean as backed by nothing but the promise of the government and it has expanded the currency unprecedented so the role of the federal reserve has changed significantly over the past century when do we start to see it really spike in that direction it's always been ar

investors continued to digest the fed rule reserve's plan to wind down the bond buying program.b 11 points and the nasdaq was down 11. >>> the senate vote on janet yellen as the next chair of the federal reserve is being tabled until next year. while a test vote for yelin's nomination is set for later today the former vote won't happen until january 6th. if confirmed, yellen would be the first to leave the central bank. her term ended january 31st. >>> the city council has voted to ban a electronic cigarettes and indoor public venues. it's expected to take hold in a few months and comes 12 years after traditional smokers were forced outside to light up. >>> the world's largest tv makers are putting a new twist on the big screen. they're adding curves. samsung and lg are prepared to introduce bigger screens next month which carry four times the sharp ps of traditional sets. no word on a price tag. >>> and imagine finding out that your secret santa is one of the richest men in the world. one woman found she was paired with microsoft owner big gates. he offered up a stuffed cow and

of the federal reserve has changed significantly over the past century when do we start to see it really spike in that direction it's always been around wars during war one is when the fed ramped up its printing press helped fund for the war and then that was when the federal reserve became an actual private agency and then again after the vietnam war that's when richard nixon closed the gold window and made us completely feel and that's really when we saw the unprecedented level of money printing interesting harris and your group thought up one hundred has been critical of the relationship between the fed and the big banks you know some people have said though that this relationship that they've called evaded help the fed save the economy in two thousand and eight during the financial crisis helped to from you know falling into a great depression what do you make of that argument. personally i mean i can't speak for all the activists who gathered today to protest into illuminating this black hole in our democracy but personally i don't think the stave off the depression at all or at all i mean i think main street we're all still feeling the effects of this monitor inst

money predates the fed reserve a little bit.the really old days before i was born, what did we do when there was no money? you bought it. i will trade my cows for your chickens. not a good way of doing stuff. we come up with something, something that facilitates trading between chickens and cows. half a cow is not worth half a cow if it is dead. not very useful. bartering is a cumbersome and inefficient system. we come up with this exchange that we call money to facilitate these transactions. it makes a possible to buy stuff. tobacco was used in money in colonial america. cool looking rocks have been used for money. what is the obvious one in the last 200 years? gold and silver. precious metals. what do you not want money to be? you do not want it to be too plentiful or too easy to create. then you have a lot of money coming. what happens? economic 101. the price goes up. everyone wants the same goods. prices go up. the fed is spending billions of dollars a day so we have more money. the economy is not growing. what happens to t

fed in the last few years. the result in many ways of the crisis. the first is federal reservehe sense that the fed was created to stabilize the financial system in times of panic and we did that and we use tools that were analogous in spirit to what the central banks of the and for hundreds of years but adapted to modern financial system. the other thing unique, maybe not completely unique but largely unique about this period is we were trying to help the economy recover from a deep recession at a time when interest rates were essentially zero and that required us to use other methods, most prominently forward guidance and asset purchases, neither of which is entirely new, but let you put aside the depression where monetary policy was on the hole pretty passive. this is the first, one of the first examples of aggressive monetary policy taking place in and year zero interest-rate environment. we are seeing japan, uk and others taking similar approaches and that will be an issue, an area monetary historians will be interested in exploring and monetary purists and empirical studi

that was not the proudest day, in my opinion, for the federal reserve system. >> he was required to resign. >> eventually. >> from the new york fed, but i agree. >> it took awhile. >> it did. >> yes? >> i was going to ask whether the boards of the federal reserve banks have decision making authority over what they do, because you get the impression when you talk to the federal reserve that the boards are sort of almost advisory boards and that they have no policy making authority. >> well, so i have raised this question with the new york fed and others, and, of course, they do have separate advisory boards, so there are plenty of advisory groups. the board is a separate entity, and these are freestanding, independent, or particular kind of corporations, so they are responsible for appointing the president of that bank. now, the rules have changed. the class-a directors, the bankers representing the bankers can no longer participate in the choice. it's up to the class-b directors, who are chosen by banks to represent members of the public. think about that in modern american context, and the class-c directors, who are the class-c

i should mention also the fed reserves credit for shortening the amplification period if they wanted to be there by january, 2015 and fully there by 2017. so that is considerably above the international norm which is going to stress i out over four years starting much later. they also have more teeth in it. if a bank is out of compliance for three consecutive days they have to submit a liquidity management plan and they have no particular sanction at all. when the shadow committees met, there were several concerns about how these ratios would work in practice. one is that they are excessively complicated. now if you are familiar with regulation this is certainly a contemporary trend one can only wonder what the rule is going to look at and unveil this one comes out 125 pages. it's very tough reading in the federal register. and it's going to be enormously difficult to comply with because there is many different categories in so many different weightings and caps that are trying to take account of the differences in liquidity but not in a way that is quite approximate. it's also going

she's spent many years on the federal reserve itself, the last three or four at the elbow of ben bernanke, the current chairman, as the fed's vice chairman. so she'll have extraordinary experience, extraordinary ability, and i think at this point in time she will also bring continue knewty. and when the federal reserve is in the process of exiting these very unconventional, experimental programs, that's something that would be very valuable. now, to the extempt that you think the current leadership of the fed has missed something, for example, it's overdoing it with the money printing, that it has not been sufficiently appreciative of the risks it's storing up for the future, well, then janet yellen will have that same blind spot because she's been part and parcel of the leadership that has produced the policy that we have today. >> host: our guest is gregory ip who is u.s. economics editor at the economist, and he was chief economics correspondent at "the wall street journal" for a number of years, 12 years. educated at carlton university which is in ottawa, ontario, canada. our next call is fromal from detroit. al is a de

fed. >> the federal reserve announcing a $10 billion taper, $5 billion each of mortgage backed securities and treasuries the fed saying in light of cumetive progress in labor markets, they decided to moderate the pace of its asset purchases and if the data comes in as expected here with further improvement they will taper further at future meetings. however, tapering is not on a preset course the fed says. the pace contingent on the outlook and the outlook for inflation and labor and assessment of the efficacy and cost of the program. but they are providing very dovish guidance on rates saying the highly accommodative pace of current rates is appropriate for a considerable time. in fact, they're saying they will be appropriate to maintain the current target range of the fed fund rate well past the 6.5 unemployment threshold they said in the past. especially they say if inflation runs below 2%. they've tapered, provided future guidance for tapering. that's number two. but also provided very dovish guidance about interest rates on the way out. more details, easter george did not dissent but

analyzed 700 predictions made between 2009 and 2012 in speeches and congressional testimony by 14 fed reserve policy-makers and found dr. yellen was the most accurate. at her confirmation hearing, dr. yellen displayed her impressive understanding of our complex, 21st century economy. she showed that she understands the complexities of fed policy making and that monetary policy has ripple effects that affect the everyday lives of workers, savers, small businesses and job seekers. dr. yellen has proven through her extensive and impressive record in public service that academia -- in academia that she is most qualified to be the next chair of the federal reserve. we need her expertise at the helm of the fed as our nation continues to recover from a great recession, and continues to enhance the stability of our financial sector. i'm excited to cast my vote to confirm her as the first woman to serve as the chair of the federal reserve, and i urge my colleagues to do the same. i yield the floor. the presiding officer: the senator from louisiana. ms. landrieu: mr. president? mr. president, before my

reserves doing? they're not being lent out. this is obviously a big problem the fed has right now. they have all this cash they put out there. the banks are holding it in reserves. a lot they're holding with federal reserve for quarter percent interest rate but not going out in loans. when will that happen? >> you know, i think when the economy as this economy is changing and getting more stable, there is better improvement for the average person out there to go out and get loans. their credits are becoming much more stable. i think the tide is turning. this is where then the banks will make the money, in executing these loans and giving loans to the average retailer which will only improve our economy. that is the backbone of our economy. liz: you don't want to be left holding the bag where we've seen a huge run-up with u.s. equities. you're saying 50% of the people's allocation should be in foreign. that's a broad statement. where specifically? >> well most investors have a home country bias. if you look at global market cap portfolio the u.s. is half, right? so at minimum you sho

everybody needs to stay tuned, as i mentioned, to peter tomorrow because you've got the fed be reserve meeting thing. but we're also talking to, as i said, chad dickerson. and, again, to see that there are web sites that can handle hundreds of millions of page views in a single month, those are the people you want to bring in, the best of american business. we've got 'em right here on fox business after the bell. closing bell ringing in about 51 minutes. call it the fed fear factor. next, no fear with the money manager we're talking with. he's got nearly $3 billion under management. he says quantitative easing is just a crush. the sooner it dose away, the better -- it goes away, the better. start behaving differently when it comes to investing. he'll tell you how he's picking stocks now with or without the fed's easy money policies. and if you want to know what bernanke's really thinking, again, that guy on the left of your screen always elicits all of the headline news. peter barnes at the fed's news conference. listen, it does spill over into the 3 p.m. eastern show, countdown to the

fed. the federal reserve will reduce the threshold to six percent. move away from qad, this will be their primary tool. this is bad policy. this is not something that should be done. this is a result of the political polarization. one hopes this gets fixed early in the next year. >> for the final month of 2013, we will also look at income and spending data. talk to me about falling gas prices and the increase in average weekly wages. how will that affect the numbers question mark >> the increase in inflation adjusted disposable income has been sensitive to gasoline prices. the sharper portion more recently. this has supported the ability of middle income and upper households to spend more. strong income and spending report. we have seen an increase in outlays under a bowles, specifically automobiles and -- outlays in durables, specifically automobiles and electronics. ask what are you expecting from consumer sentiment? the university of michigan survey. have shown strength. >> that's right. reboundseen sustained following the shutdown. --are poised i

fed for exacerbating the bubble. your critique of mr. green span and the federal reserveetween 2002 and 2005 the fed kept late too low for too long and that created the bubble which in turn led to the massive problems in the economy. that's your basic point? >> it exacerbated the bubble. you can see the bubble started to increase at a more rapid rate around that time. there were other factors. i think lax regulation was another factor. but that monetary impulse was a big factor. >> specifically, you've said -- you said to it me on numerous radio shows and on interviews on this show between 2002 and 2005 fed kept rates too low for too long and that released the forces that created the housing bubble which, in turn, when bubbles burst then the economy collapses. that's your basic point of view, you've spoken about it, you've given lecture, you cited academic evidence. is that still your view >> absolutely. >> mr. greenspan, the floor is yours. i take it you disagree. >> doi do. i do for a number of reasons. first it's important to recognize as i told my good associate of ma

fed. the federal reserve is celebrating its centennial today. apparently they have a number of events planned. sorry you and i will not be able to get down there for that with fed chairs past an present. dagen: scandal. speaking of history, next year might be the most scrutinized in the central bank's history. peter barnes is in washington reporting for us. hey, peter. >> dagen and connell, that's right. december 23rd marks the 100th anniversary of the fed. the republican chairman of the house financial services committee. he has a big present for the fed. half a dozen oversight hearings and a bunch of studies examining the fed ages history, mission and especially economic stimulus programs that launched during the financial crisis, especially quantitative easing. chairman jeb hensarling a frequent fed critic, his goal is legislation to reform the fed. >> i do believe this will be the most comprehensive, ambitious oversight of the federal reserve that they have seen in their history. and again this is not your father's fed. we're seeing a federal

. >> the money goes and stops in the bank and thhy put it back in the fed and reserves and they get paid for it. so the whole thing is distorted but i would argue the case that the strict definition according to austrian economics is just increasing amount of money supply and credit is the inflation. sometimes it is measured by the cpi. sometimes it is measured by soaring stock prices. sometimes you have housing bubbles. so you don't know where the money goes. yes, the fed can create money and they claim they can create more spending but they don't know where the spending is going to be. there is lot of disturbance because a lot of spending is going into medical care and education. it is a distortion they can't control. they can say we'll create money and people will spend it and that will get us out of recession and it does more harm than good because they don't allow the mistakes to be corrected. all the mistakes that were made leading up to the crash of 08 they're still out there. the debt has not been liquidated. debt is much worse and malinvestment still sits out there. melissa: you

fed today. cbsmoneywatch reporter wendy gillette explains what is expected to happen with its move to prop up the economy. >>> reporter: all eyes are on the federal reserve. the fed is wrapping up a two- day meeting and will announce this afternoon if it's scaling back its economic stimulus program. many economists believe the fed will maintain its monthly bond buying program until next year despite improving economic data. chairman ben bernanke will also give his final quarterly news conference before accepting down at the end of january. >>> investors are waiting to see what happens. on wall street yesterday, the dow lost 9 points. the nasdaq dipped 5. >>> there's a new button on facebook. a donate now tabitha appears on a post by a nonprofit organization and on the group's main page. if you do give at that tab, facebook will then have your credit card information which the social media company will keep for future purchases. >>> and a major investment bank is helping to fund a program for teens in jail. it's part of an effort to get private investors to fund public social programs. goldman sachs invested almost $10 million and will profit if the progr

fed. the federal reserve marksing 100 years with speeches from all three living fed chairman, paul volcker, alan greenspan and ben bernanke. you heard of mount rushmore. today fed rushmore. the top fed analyzers in the world join us. larry kudlow at post nine on the floor of the new york stock exchange. elan of "the washington post," greg and, of course, steve liesman. you all look fantastic immortalized in stone. let's start first of all with there are two questions we want to address, one of which is, which of the chairman faced the biggest challenges during their tenure at the federal reserve and how is history going to treat them and record their events and their actions? larry, you want to give it to paul volcker, but in all fairness you worked with paul volcker so maybe you have an inside track on that. >> perhaps i do and i just saw him. look, i've been watching the fed or working at the fed since the middle 1970s. paul volcker is the greatest chairman in the history of the federal reserve board. he faced 15 to 20% inflation okay which was destroying our economy and the rest of the

reserve. today the fed said it's finally ready to start pulling back a bit on what's known at stimulus, injecting money into the system. wall street liked this news. dow and s&p were up. but what about american families? sue herrera is with us tonight. how will people feel this initially? >> i think initially, we may see interest rates go up a little bit as the fed takes some of that money out of the system. interest rates on credit cards and mortgages and maybe student loans. credit cards are the highest rate vehicle that americans carry. >> now a loaded question here. what does this do to address the income gap, the americans who have stopped looking for work. the jobs that have gone away, the salaries that have never caught up? >> a lot of people on wall street think the fed was a little premature, that the economy as wall street sees it and as washington sees it may look pretty healthy or at least healthier than it was before. but if you're on main street, it's very iffy. we still have a record number unemployed. we have people looking for work so long that they're now discouraged and they've

that we're going have low interest rates for a very long time as part of the federal reserve guidance. secondly the fedshink that the economy is improving. that's significant. after years of being sluggish, after years of treading water we might see some growth next year. that's a big deal. and that's what gets marketed excited. i think that's why you saw such a strong positive explosive market reaction to this tapered decision. >> well, mark, what happens when $10 billion that's been coming in relybly month after month doesn't? will anybody notice the difference? >> it depends. it's a supply and demand. the fed have been big demand of fanny and fre fredie securities. is the government going to issue as many treasuries? is fanny and freddie going to issue as much debt? that will impacts rates. all see a small impact on rates. a few basis points. it's a hundredth of a percentage point. we're talking about 10, 15, 25 basis points in the cost of a mortgage, borrowing in the economy. the most important part of this is less the real size as it is a signal about a change in direction and change in confidence

david: federal reserve chairman ben bernanke said the fed stimulus program createddjobs.private businesses create jobs. we have many solve your thoughts, that you want to stick around for. that is coming up next. ♪ male annocer ] e new new york is open. open to innovati. open to ambition. open to boldids. that's why n york has a new plan- dozens of tax free zes all across the state. movhere, expand here, or start a new business he and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more business... we're open to it. start a tax-free business at startup-ny.com. try align. it's the number one ge recommended probiotic that helpsaintain digestive balance. ♪ stay in the groove wh align. ♪ [ bagpipes and drums playing over ] [ musitransitions to rock make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are cho. get 200 free trades when you open an account. melissa: let's go off the desk. imagine a train that doesn't need to stop to pick up its passengers? that is the conc

governments are borrowing from whom borrowing primarily from banks and through the federal reserve and the fed is a corporation the banks are its stock holders corporation must serve the stockholders therefore this whole fed system in the united states cannot possibly serve the public interest it has to serve. only the bank interest and that's exactly why we see this ever increasing percentage of the total money flow going to the top one percent and it's not going to get any better anytime soon or let's talk a little bit about where you see those going the the top name in the kryptos fair is bitcoin it's got a market cap of about ten ten billion plus then you've got some other think of that clued in the one that you talk about quark have a smaller market caps so let's walk us through how you see this going developing over the next two or three years were saying that it could challenge the central bank system and the central banks will push back but there are other applications for these types of currencies going to talk a little bit where you see this going bill. well yeah i mean we have to ge