federal reserve bank under ben bernanke has been doing is buying up assets at full face value from the banks in order to make the banking system and the economy look better because and this is what we keep on being told actually by the fed is that we're making so much money on the assets we've bought you know i give you another metaphor here is the portrait of dorian gray so the stock market's hitting new all time highs but the economy's up in the attic and is aging quite rapidly and starting to look like junk strongly quite bad you see but they're all the cosmetics of the high frequency fraud and the accounting fraud and the purchases of one's own stock and the hedge fund managers battling over pyramid schemes makes it look like for at least a day more that the economy is that sickly old decrepit in dead into all such time as there's a reconciliation and then you have another big crash now finally regarding this art market story of the british collector frank cohen just back from new york says the contemporary art market is like the stock market it's about finance the art is there but

primary dealer and why why isn't everyone offered this unique position with the federal reserve the primary dealers are banks and big brokers and what they do like i was saying is they have an arrangement with the federal reserve and the treasury they have to participate in all treasury auctions but they also engage with the fed the fed is buying eighty five billion dollars a month forty five billion dollars in treasuries forty dollars billion dollars in m.b.'s and these guys are primary dealers participate in these auctions with them now. m.f. global was a primary dealer and it was kind of a big deal for them it gave them a lot of status and the interesting way this went down and what happened and that. they eventually went down but the way that they became a primary primary dealer is interesting they had all kinds of regulatory problems in two thousand and seven two thousand and eight they had a trader blow up part of the firms not as big as john corazon did but it was about one hundred forty million dollar trade in the wheat market i think and the c f.t.c. was scrutinizing m.f. global and as part of the d

constantly doubling down on losing bets because they know because their source of credit is the federal reserve bank it's the american taxpayer and recently as to global taxpayer in the global banking system they have an infinite supply of credit at virtually zero percent interest rates they are engaged in the martin betting system and they never lose whereas this poor guy the but now nick man with the dreadlocks he encounters the shortcomings of the martin betting system which is that he can only do one or two throws of the dice then he's bust he is bankrupt he goes home completely without any money if you were working at j.p. morgan you continued to do this exact same bet using the house money using our money using the the federal reserve the central bank's money until they made a profit that's the cute difference between the insiders who are raping the system and everybody else well we can point to two real world examples of this long term capital management that's when the fed first got involved in manipulating global interest rates in order to bail out one person they went bust on martin gal be

bank. following the u.s. federal reserve and the bank of england and the bank of japan and money printing but they do recognize that this seems to be the only response for some of these highly indebted nations so in the u.s. you have congress people now pressing for pressing harder now to pass legislation to punish currency manipulators which is very bizarre considering that they're the chief one in this global currency war they're trying to outlaw anybody else possibly doing it in particular china but the us has to set their second largest deficit is with trading deficit is with japan so to date japan has been given a pass on this monetary policy which involves massive asset purchases by the bank of japan and a doubling of the money supply while that almost necessarily impacts the country's exchange rate as with anything else increasing the supply of yen lowers its price as expressed in terms of other currencies it is also taking place in an environment where every other major central bank is doing the same right well the j

to a gold standard well we're drowning in central banking because all central banks are mimicking what the federal reserve and the japanese central bank are doing because they have to because they're all drowning in the liquidity provided by the u.s. federal reserve and the bank of japan and global currency war a new front opens in the south pacific from way down under comes a new front in the push and pull over world currency values stung by the rise in the new zealand dollar affectionately known as the. the we the country's central bank last week knowledge that it had intervened and foreign exchange markets to try to fight any further appreciation yes if the global currency firing squad all the currencies are lined up in a circle. they've got their currency of print button ready to go and they print print print and they're all trying to devalue concurrently so that nobody is the loser however that is like warren buffett says when the tide goes out you see who's not wearing a bathing suit in this case it's going to be japan so japan will be the country that shows up as the one that enters into a hyper in

federal reserve bank chairman has vowed to keep pumping money into the american economy for the time being. he says that for now, he will keep interest rates low and continue buying u.s. treasuries. >> the central bank boss told a u.s. congressional hearing that the american economy remains weak. bernanke says monetary policy should remain on hold until the u.s. recovery picks up further. how did investors respond? our markets correspondence sent us this summary from the trading floor. -- our markets correspondent sent us this summer. >> briefly after 4:00 p.m., traders were clapping their hands, applauding the decision of the head of the u.s. central bank. he said what traders wanted to hear -- the fed will continue its bond-buying until the labor market has improved substantially, which is not yet the case, meaning that the flooding with cheap money will continue. money which should help the economy to recover, but which is also driving the markets, including the dax, to new record highs because investors can only get an acceptable return with riskier assets. the central bank in the

federal reserve bank chairman has vowed to keep pumping money into the american economy for the time being. he says that for now, he will keep interest rates low and continue buying u.s. treasuries. >> the central bank boss told a u.s. congressional hearing that the american economy remains weak. bernanke says monetary policy should remain on hold until the u.s. recovery picks up further. how did investors respond? our markets correspondence sent us this summary from the trading floor. -- our markets correspondent sent us this summer. >> briefly after 4:00 p.m., traders were clapping their hands, applauding the decision of the head of the u.s. central bank. he said what traders wanted to hear -- the fed will continue its bond-buying until the labor market has improved substantially, which is not yet the case, meaning that the flooding with cheap money will continue. money which should help the economy to recover, but which is also driving the markets, including the dax, to new record highs because investors can only get an acceptable return with riskier assets. the central bank in the

balances tripled between 2004 to 2012 to a bet incurred of $1 trillion according to a survey from federal reserve bank of new york. it's second only to mortgage debt and in turn has a direct affect on getting a mortgage. >> if you look at the average student loan balance, about $30,000, $35,000 per person, per student so if you take a family of two, that's $60,000 to $70,000, in certain markets, that's almost a mortgage payment. almost as much as a house. >> that is partially why first-time home buyers are being squeezed out of the market. this vital cohort makes up 40% of home purchases, but these buyers are barely one-third of the market and adding to the burden, nearly one-third of borrowers are delinquent on their student loans which will keep them out vt market for many years to come. >> tyler, we talk about consumer spending. these are the consumers you want to car get and they are sitting on $60,000, $70,000 debt, they won't be buying a computer, a car, a house. >> really a crushing weight on their backs. >>> still to come, a 21st century bank heist. they are hackers using laptops and local atm

i have experience with the federal reserve bank of san francisco. when i look around my neighborhood and see the changes that are happening, i so there is no neighborhood grocery store. i see that small businesses in particular are coming and going, and they haven't been able to really sustain themselves. from my work experience in working for the city in the mayor's office as well as in the non-profit, i had a good sense as to what some of the challenges were. when i look in the future, i could see more challenges coming. i thought i had a set of experiences and more importantly a passion and desire to serve. >> i understand that no one wants to have their programs cut. of course not. i also want everyone here to understand that no one population being served. there are no value ains here. we are all on the same team. it is a tough situation, as we are here so that we can begin the work together. >> i am actually more forward thinking. for me it is less about being left or right, or in this town, moderate or progressive. it is really about the issu

federal reserve reported we've reached a mile zone in the recovery from the recession. american households had on average recovered more than 90% of the wealth they'd lost. but today federal banklouis, federal reserve bank of st. louis said not so fast. adjusted for inflation and other factors, wealth recovery is only 45%, so we do have a long way to go. the labor department reported today that 354,000 americans joined the line for unemployment benefits last week. 10,000 more than the week before. at the height of the recession, unemployment for recent college grads topped 10%. now it's under 9%. chip reid looks at the job prospects for class of 13. >> reporter: khaldun taib majored in accounting at the university of maryland to improve his chances of getting a job. how did it feel when they offered you a job in this dismal job market? >> amazing, honestly. it was pure bliss. like it was just a relief being -- like the weight was off my shoulders. >> reporter: taib was hired by david dorsey, managering partner of a bethesda maryland, accounting firm. >> a year ago if you made an offer to a candidate it was almost 100% accepted on the spot. >> reporter: this year, he says, the

people like paul krugman supports of paul krugman by supporting the bank of england in the federal reserve banks ultra low interest rates is supporting wal-mart's ability to squeeze the economy to the point where factory workers have to die so that big fat obese american travel guides get a deal on a t. shirt. the u.k. government moving to a system which will eventually receive most benefits claimed via the internet so the bad news for many people in rural areas who want online. service is that one community in northern england which has been forced to plug itself. the rolling hills and dales of the daily english countryside eight but what lancashire in the north of england has in secluded d.c. it lacks in malls and in a city despite major provided bt reporting a beast in profits local communities like these haven't felt the benefits and a path to dig deep into their own pockets and land to try to get connected. we have on camera appreciate that he says. which is one of the highlights poised over in addition to that survey english area and say look at this for city a population that is just no e

today the president of the federal reserve bank of new york william dudley called for the fed to update its thinking regarding how it plans to wind down large scale asset purchases and this comes after several fed governors have called for a reduction in the quantitative easing program now doubly didn't say whether or not he was in favor of continuing monetary stimulus and the big question still remains how much longer can the low end just rates last or earlier i talked to michael pentel president and founder of the polio strategies and author of the book the coming collapse in the bond market i asked him about the fed's near zero interest rate policy and he explained why he thinks the bond market is going to collapse. i wrote a book about it and when i wrote the book i said to myself should i really be writing a book about the coming bond market collapse when it seems to be self-evident it should be pedestrian common knowledge but it seems like everywhere i go people have become less and less choosing to bubbles i told everybody the nasdaq was in a bubble in one nine hundred ninety nin

back bonds that are selling and buying the same bonds it's a massive ponzi scheme and the federal reserve bank's balance sheet is increased by trillions of dollars the bank of england balance sheet has increased by trillions of pounds but the e.c.b. the european central bank which is essentially the bundesbank which essentially germany their balance sheet has not expanded the same rate as these other global banks they there's wilma so they're really the buffer now the germans are the economic buffer that's absorbing all of this quantitative easing in a lot of ways and in the eurozone so numb. one it means that the euro is not going to dissolve or disintegrate number two it means that the bond bubble will continue up until the point of the e.c.b. finally throwing in the towel because that was the lender of last resort was the e.c.b. if they want to go over to an i.m.f. led special drawing right recapitalization of the global economy with a hundred trillion dollar debt debt facility as was mentioned a devils a couple years ago yet that's possible but we first lets totally flame out and toast out a

to put this into context he lives in a ghetto called the federal reserve bank he's a cracker cracker number one and he slings debt in the ghetto that is wall street where everyone like jamie diamond he lines up each op's up as thousand dollar bills into one long line and he just starts it. as jamie diamond on his way to work every morning snorting thousand dollar bills gifted him from crackhead cracker number one ben bernanke so what we have the war on drugs we have the war on terror and part of the war on terror of course is the war for oil as well james howard kunstler is pointing out about this this magical thinking about oil that america is now. believes that they are this saudi arabia the new saudi arabia and that they're going to be able to displace saudi arabia as the king of oil when in fact most of that that their talk about the supplies comes from shale oil which is let prac crack. crack. yes so to paris what the new oil landscape is in america compared to what it used to be he says horizontal drilling often more than ten thousand feet down plus many laterals an additional

moderate climate and we had a situation where just last february, we had someone look at the federal reserve bank on market street to activate a car bomb and then selected a bank over in oakland and actually hit the button twice not knowing that they were working with the f.b.i. when they were trying to detonate. the threats here are real. much has been made in light of what this tragedy that occurred in boston of our security measures for the beta breakers. we will be adding significant resources to that effort. and much likely the world series parade, we are going to ask the academy classes that are near graduation, to help to augment our sitting swarm that are already out there. and that we will work with the organizers to support them as they ask for no subnative back packs and the lack and the officers our deployment will be fluid. i was asked what we might do for in future and i made a comment for cameras sighting the success that boston had in solving that case within days. i was not asking, nor will i be asking for a city-owned camera system which has been suggested. i was asking for the