he's a very outspoken federal reserve bank president.is bloomberg. ♪ look here, it's your very own all-in-one entertainment experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. kathleen: i want to welcome our bloomberg television viewers and radio listeners all over the world for an exclusive interview. st. louis fed president james bullard joins us live now, hot on the heels of last week's federal reserve meeting and ahead of fed chair's jay powell testimony before congress later on tuesday. well computed a lot going on now, is in there? mr. bullard: great to be here. kathleen: great to talk to you. let's get right to looking back a cou

reserve banks. he realizes he has to have somebody on top of this to coordinate these reserve banks, so he says i will use the control of the currency. he names a top federal banking official whose main job it is to authorize national banks. if you wanted a bank at that time you went to the state or you went federally. if you went federally, this was the guy who oversaw the license. one author had a very good characterization. the aldrich plan was called the national reserve association. glass called his the federal reserve association. it was federal in nature. when he comes up with the scheme, we don't know who the next president is going to be. it's early 1912, and we are headed toward the most famous election probably in american history, the 1912 presidential election. three major candidates. the republican president, william howard taft, teddy roosevelt who had been a republican president but now is in the progressive party, and woodrow wilson, a democratic governor from new jersey. nobody knows when glass comes up with his plan who is going to be the next president. wilson gets 40% of the vote, is elected. he and glass had never met but glass contac

the federal reserve act was amended in 1935 to increase the power of the federal reserve board and decrease the power of the regional reserve banks but it's basically the same system that glass propose. a federal, not a national banking system. unique in the world. it's 90% of what glass first proposed back in 1913. second, the securities exchange act of 1934, creating the sec. every year, every time there is a new election, new president comes in with a new administration, they always have a book of reforms and one of the reforms as to get rid of the ssc. there are too many agencies. we have 13 agencies in finance. they are going to be rolled into one agency or combined. the ssc -- it is never happened. there have been a series, double dozens of call for this but the ssc today is still the independent agency that glass invasion in 1934. the glass eagle act, though we know what happened, first the fed and then congress got rid of the provisions banning bank secured affiliates. that is a major change in the glass seagull act. today, banks to affiliates, engage in all types of securities activities but the other provisions of the g

banking regulators. the executive director inclusion of the comptroller. sheila clark is the director of office of minority women inclusion of the board of governors of the federal reserv reserve. the director office of minority of women inclusion of the federal reserve bank of new yor york. and from the fdic and the director office of minority and women inclusion of the national credit union administration. the oral testimony is limited to five minutes. please respect the members and other witnesses time by wrapping up oral testimony. you are now recognized for five minutes to give an oral presentation of your testimony. >> chairwoman and members of the subcommittee i serve as executive director of the office of minority of women inclusion from the comptroller. and with that commitment to diversity and inclusion established in 2010 and those to share ate commitment with diversity and inclusion with the acting comptroller the occ is dedicated to maintain a diverse workforce with the commitment in the proven strategy for diverse workplace with that competency pipeline in the strategy and to employ differences and the culture thatre respects value acting comptroller and

question of will the federal reserve is going out now asking questions of consumers and they're basing their data on this they're actually not doing that in fact the federal reserve bank and central banks in general don't talk to consumers there have been a number of studies done though by groups that do actually go out and poll consumers i was referring to one just a minute ago and what they're finding is that if you ask. consumers is your life vastly different now in terms of your spending in terms the amount of money that you have right now in terms of what it's costing you to be able to provide for your family by a vast majority of consumers are saying it's more expensive than it was before they has a less power than they had recently and it's hurting them and their families so that is an important point that the federal reserve misses when they just simply look at the rate and say well we're going to fudge the numbers on what the inflation rate looks like and they're not taking into account what it means for real people in their real life and remember they're ok with some inflation just not too much but many consumers now they're saying the prices they pay for mo

right there's plenty of vomit fraud in the united states economy and it's perpetrated by the federal reserve bank and you're right in that we are being charged for the vomit front so when they make a bad policy decision by like for infinity and this causes huge mal investment in the economy and let's say the the bailout insolvent banks right and the savior of warren buffett and berkshire hathaway even though they were technically insolvent back in 2008 that is the vomit fraud that we have to pay for and then warren buffett will go on t.v. it goes to plays ukulele and i say thank you for paying the vomit fraud and i had to ice skate insolvency then you have companies like goldman sachs j.p. morgan h.s.b.c. it's a global vomit fraud phenomenon every major bank in the world commits vomit fraud and every major population in the world has to pay for the vomit fraud you know it's like money as vomit. good yeah and they sell it like hey this is an amazing like let's you find haleigh ride wherever you are and blah blah blah and you don't need to speak the language and it's a cheaper it's easier in and yo

there's no way to cure these problems but what do they do in the vietnam war or the doing of the federal reserve bank they're going to do double down yes on that more troops more troops more money printing more money printing and they chorused of vietnam they wiped out another $30000.00 soldiers knowing. without any equivocation that it was a suicide mission going from 65 forward it was all going to be suicide mission from america the fed is saying we know these policies don't work we're going to triple down to quadruple down because we think conceptually they should and we're not going to believe the evidence before us that they're not that's really important to look into because mcnamara was very clear in his private memos to the president that this war in vietnam was unwinnable and the same thing i bet you anything you're going to find the same thing in 20 years later is when we found out about robert mcnamara really what he thought well as he sent off tens and tens of thousands of people in america to death lord knows how many and and vietnam but you know the same thing i think we'll find out in

talk about this term credit exhaustion and in the context of what you just said there the federal reserve bank and the u.s.'s all the major central banks in the world have this problem of maturing debt that they have to either let expire and. variance a contraction or they have to print some more money up and by keep buying it for themselves to avoid the contraction but this sends up being a giant ponzi scheme as we've talked about on kaiser report for many years as you've talked about it we've said he can't taper a ponzi scheme so he now that the decision of these bankers will be to print more and keep monetizing their own debt quantitative easing is the wrong term because that suggests that it's a temporary measure but we know now that it's a permanent measure and that it's debt monetization which again is something characteristic of a quote banana republic this is what america used to criticize south american countries for doing oh you're buying back your own debt that's up and our republic and i here's america and all these other central banks doing the exact same thing now the fed owns ab

from congress to the federal reserve bank has done quite a bit to stimulate the u.s. economy but how does that compared to what we're seeing abroad in europe and elsewhere. well ok just quick numbers right so there's about 660000000 people in the european union all together where you know excuse me about 440 i'm sorry and about 330000000 for us well if you look at it on the reserves our reserve bank has put out 7.2 trillion. they've their whole reserve on their balance sheet and the e.u. is now $7.00 trillion so the united states has put out more per capita japan is out there at about $6.00 trillion add up all those trillions bread it's a lot of trillions is about 22 trillion and then we haven't talked about the physical so we have to separate monetary from physical but right now what it really doesn't matter what that debt is in the united states we have so much savings so much cash out there the banks have bought about 2 trillion dollars of that debt so we're actually financing it in our system so i know you have some guests on here that worry that we're going to yo

in a way that's conducive to growth more likely says a federal reserve bank chief is an l. shaped recovery a steep fall followed by a long plateau of low growth and high unemployment a time that's required to recover is going to be a quite a bit longer than we might have otherwise expect even with effective vaccines or therapeutic methods economists say there's no question of magically returning to the free pandemic economy many jobs in affected industries may be lost forever airlines like united and american f. cut thousands of positions as have department stores clothes makers big banks and blue chip companies like 18 t. boeing and hilton hotels and the list goes on businesses are looking out at the landscape and realizing it's not going to be equipped for the other e they are then resizing in rescaling their operations to manage that situation which comes with more permanent layoffs the workers hit hardest tend to be those with the lowest wages who work in hands on jobs like mary benedetta oh it's not that i don't want to work and i have to either find jobs for millions

with a high degree of confidence that jay powell at the federal reserve bank is understating inflation by 8 and a half percent lace and that's the reality today and if people understood that they would understand a lot more about why these markets are doing what they're doing now you're not the only guy who sees this inflation risk paul tudor jones went long bit calling famously a few months ago re dahlia was piled into gold warren buffett dumped his long held bank shares and went long some gold miners and also japanese stocks kind of get out the dollar stand talking miller is warning about 10 percent in place and of course he was a partner over there with soros and renowned money manager so you have people in your camp and again i get back to the sea change in markets and we've had and you mention the bond market there as being priced in a way that doesn't reflect the real economic environment out there but it has been an almost 40 year bull market going back to 1980 so is this an inflection point or you know can we say based on wally's smart people and what you're doing that maybe th

i spoke to the san francisco federal reserve bank and they say the level of damage we have seen year indicates we could also see an economic cost that the same as prior years. meantime, it seems like every year is just getting worse. we have the first presidential debate coming up. climate change is not on the agenda, but it is a huge and growing issue. is it going to be our lives for the next several years? has putnor newsom climate change at the forefront of this. he has instructed state agencies to accelerate their timetables to move toward sustainable energy. he believes climate change and the fires are directly linked. if you talk to anyone here in california, it is front and center of their thinking. the fed today said they could only look to the future and think that in the 12 districts, climate change will play a role in the impact of these fires. >> thank you so much for following the fires for us. still ahead, the stage is set for the first u.s. presidential debate between president trump and joe biden. we spoke to a dnc chair and got his take on what to expect. that is nex

well i think again the 2 i think were there the federal reserve bank chairman drome powell just a couple of weeks ago basically reset the standard for what inflation looks like set a new ceiling on a new floor on it essentially saying we can put up with 2 percent inflation and not really count it and so what they're doing is is simply the federal reserve is printing the money they are floating billions upon billions of dollars to corporations and pumping it into the economy on a regular basis and now saying well we're not really going to hold inflation down because we're not really going to count inflation the same way so when you when you kind of jumble the math and you change the standard of what has been inflation in the past what will happen is the federal reserve will continue to print and then as inflation begins to rise they'll say well based on our new standard of accounting we don't really have inflation but in terms of what states are seeing you know if there's a fascinating new article this out in the wall street journal that takes a look at that data behind cities and states

coming up, we speak to the federal reserve bank of dallas president, robert kaplan. london time. coming up next in this program we will be looking ahead to this week's eu leaders summit. relations with turkey will feature prominently. over borders in the mediterranean continues. ♪ ♪ thearie: now it is time for brussels addition. your essential need to go -- need to know guide in europe's political epicenter as the leaders prepare for a summit beginning thursday. relations look increasingly strained. the relationship with turkey is at a crossroads as the bloc presses ankara to halt energy expiration in the eastern mediterranean. let's get more with maria tadeo in our brussels studio. turkey, this is going to be high on the agenda. does turkey faces the threat of more sanctions? >> yes, it is high on the european agenda. that is as european leaders prepare to come here to brussels later on this week. as you mentioned, this is all to do with that escalation we have seen over the summer between the turkish government and the greek government. this is all about energy, ab

this is september 30, the final day of the third quarter the federal reserve bank is suggesting that gdp growth for this particular quarter will be upwards of 7% what we saw in the last quarter the last quarter was 9.5% growth in gdp when you get beneath the layers, there is a lot of nuance there the american economy is working for people who p residences in that area but not necessarily for the nursery worker or hospital worker. i think joe biden is in as strong as a position he could be right now. the reality is that this president needed momentum to shake up this race the data says he's not doing as good as he wanted to do with those persuadable voters you talked about roughly 10% of the electorate. i grew up in north carolina. that is a swing state. i don't know many suburban women who quite frankly would have been turned on or pleased with all of that bickering and talking over each other last night. that's the million dollar question, how effective was he it remains to be seen. >> we know going into the debate, biden's strategy was expected to focus on president trump's handlin

the first lacked man to become president of the federal reserve bank, the president of the atlanta fedthat racism is dragging down the economy and banks in particular by repairing their use of black people who could not borrow over the years. those are the key to -- topics that the fed is clear on. made are reporting that -- be first in line as a woman to be u.s. treasury secretary. >> it's not the first time she was thinking she might get this job. let's start with the fact that she is at the top of joe biden's list and it would be a great move for him. he has a historic move if he gets the first female treasury secretary. on top of that, he needs someone who bankers feel comfortable with. you have to keep the progressive happy. looks get someone who cozy to wall street, -- many people consider her well-placed for this job. someone who knows her says she told them that she would prefer the fed chair job if she could get it, but she is not going to turn down this job. in hillary clinton was running for president, a lot of people thought she was the slamdunk for treasury secretary. now

past here actually they had a loss of almost $580000000.00 but in times where central banks federal reserve banks all over the globe so a global flooding the market was cheap money investors are grabbing whatever they can even if a company like pollen tier is not profitable at all. costs in new york thank you so much. and i'll briefly look at some of the business stories making. the number of unemployed germans fell for the 1st time since the arrival of the coded 19 pandemic by more than 100-0022 point 85000000 in september unemployment is now it's 6.2 percent lower than most industrialized nations due to the government's short work program which is keeping millions employed. the u.k. house of commons has passed the controversial internal market bill which overrides part of the brics a deal with the e.u. westminster says the bill guarantees loose trade between northern ireland and the rest of the u.k. the e.u. says undoing part of the brics a deal will damage britain's international reputation. the chinese economy is recovering steadily in september manufacturers received more export orders after