really need to be careful i think of the fed focuses on the macroeconomic goal of stable nominal g.d.p. growth which should provide for relatively low inflation and a good path of real g.d.p. then what you do is you look at the financial system and if there is flaws in it you deal with those through regulation not trying to use monetary policy to sort of fine tune the financial sector it's simply not very good at doing that it's got i understand that you don't believe financial bubbles exist can you explain whether high asset prices signal a bubble. ok that's a tough one to explain because i know there are a lot of events that look like bubbles to most people but what i believe is it's very difficult to sort of second guess the market in real time so if you look at the track record of. people that sort of put forward the bubble hypothesis like robert shiller even they tend to have difficulty pinning down when stocks are overvalued or undervalued and so i think what happens is when there's a big run up in prices let's say housing prices in america up to two thousand and six and then they collap

really need to be careful i think if the fed focuses on the macroeconomic goal of stable nominal g.d.p. growth which should provide for relatively low inflation and a good path of real g.d.p. then what you do is you look at the financial system and if there is flaws in it you deal with those through regulation not trying to use monetary policy to sort of fine tune the financial sector it's simply not very good at doing that it's got i understand that you don't believe financial bubbles exist can you explain whether high asset prices signal a bubble. ok that's a tough one to explain because i know there are a lot of events that look like bubbles to most people but what i believe is it's very difficult to sort of second guess the market in real time so if you look at the track record of. people that sort of put forward the bubble hypothesis like robert shiller even they tend to have difficulty pinning down when stocks are overvalued or undervalued and so i think what happens is when there's a big run up in prices let's say housing prices in america up to two thousand and six and then they collap

really need to be careful i think if the fed focuses on the macroeconomic goal of stable nominal g.d.p. growth which should provide for relatively low inflation and a good path of real g.d.p. then what you do is you look at the financial system and if there is flaws in it you deal with those through regulation not trying to use monetary policy to sort of fine tune the financial sector it's simply not very good at doing that it's got i understand that you don't believe financial bubbles exist can you explain whether high asset prices signal a bubble. ok that's a tough one to explain because i know there are a lot of events that look like bubbles to most people but what i believe is it's very difficult to sort of second guess the market in real time so if you look at the track record of. people that sort of put forward the bubble hypothesis like robert shiller even they tend to have difficulty pinning down when stocks are overvalued or undervalued and so i think what happens is when there's a big run up in prices let's say housing prices in america up to two thousand and six and then they collap

is slowing and because real g.d.p. growth and inflation are slowing at the same time and isolates see if there's an interconnection between the slowing of one and the slowing of the other given the high levels of debt that still exist in our economy take a look. i absolutely do i think that. the reason basically won terry policies in the tent is that we've acquired too much debt and we've kept acquiring too much of the wrong type of debt debt that's not going to generate an income stream to repay principal and interest and in that environment the velocity of money is going to decline and it's been declining or regularly since thousand nine hundred ninety seven about a three percent annual rate. and to growth is six percent that's essentially where it was before the financial crisis two thousand and seven two thousand and eight so money growth is six the last is declining and three that suggests that fundamentally a year trend rate of growth in nominal g.d.p. should be only three percent which of course you've got that split t

six the last is declining and three that suggests that fundamentally a year trend rate of growth in nominal g.d.p. should be only three percent which of course you've got that split that between inflation and real growth monetary policy is just not affective in a highly over leveraged economy and we're seeing the the end result of that type of situation plays that the fed has shown time and time again that they can stop an economy from overheating but we're in a situation a new situation where do words are just a bell and we have debt disinflation deflation and debt deflation those are all watchword so do you think monetary policy can be effective here. no i don't not to tary policy works through a variety of different channels first of all their price affects their quantity of face and then there is possibly the wealth effect. and the price effects really are not operative because during the quantitative easing one two and three the ten and thirty year yields actually rose they didn't apply. makes it very difficult for monetary policy not to work when when when price affects are not cooperate in

well for two decades prior to one nine hundred eighty yugoslavia was prospering with this annual g.d.p. growth averaging six point one percent a decent standard of living. free medical care and education guaranteed right to a job affordable public transportation housing and utilities literacy rate over ninety percent life expectancy was seventy two years most of the economy was in the public not for profit sector is a clear. sign that was. either sabia was a different case because if it had established its own form of a socialist model of economic activity which was a mixed economy with private capital it's enterprise with state run industry and with worker cooperatives it was considered to be a success story of bucket socialism it had higher rates of growth than most of the countries of western europe it had been advanced well first states it was a multi-ethnic society. which lived in the holy land in many regards it was a model of development on. the floor i can see where we yugoslavia was located between greece italy and romania and it was populated by serbs croats bosnian muslims slovenes

well for two decades prior to one nine hundred eighty yugoslavia was prospering with this annual g.d.p. growth averaging six point one percent a decent standard of living. free medical care and education guaranteed right to a job affordable public transportation housing and utilities literacy rate over ninety percent life expectancy was seventy two years most of the economy was in the public not for profit sector is here. so. it. was a different case because it had it had established its own form of a socialist model of economic activity which was a mixed economy with private capitalists enterprise with state run industry and with worker cooperatives it was considered to be a success story of market socialism it had higher rates of growth than most of the countries of western europe it had an advanced well first states it was a multi-ethnic society. which lived in the holy land in many regards it was a model of development. before i continue where we yugoslavia was located between greece italy and romania and it was populated by serbs croats bosnian muslims slovenes macedonians all of which ar

g.d.p. growth for the last quarter fell to minus one percent but many analysts expect growth to return in the second quarter of two thousand and fourteen and of course with expected growth and declining unemployment many fed watchers believe that the federal reserve will continue to taper and hike interest rates so to get some input on what's going on with the macro economy and what it all means to the fed i spoke with professor tim do we have the university of oregon now doing pens a blog called to do is that watch which is widely read by analysts and market watchers interested in understanding what exactly the federal reserve is doing now i first asked him if he believes that growth this quarter could exceed three percent here's what he had to say. i think that there would be in fact a possibility we could see some stronger numbers and consumer spending in these capital spending side would not terribly would not surprise me you know a significant amount really i do think the economy is trending s

negative two point nine percent g.d.p. growth for q was definitely that's pretty awful are you surprised. oh yeah i mean. is is this precisely what i was talking about last summer when i said. that i don't think we understand the unintentional consequences the economic consequences of obamacare. and what we're seeing is that with the higher deductibles and people are having to pay we're now we're now forcing transparency and the into the system because when people are having to come out of their pocket with more money they're going what i do a lot of my paying for what that i might do i really want to do this do i want to spend five hundred thousand or whatever that number is and. so part of it's. a rational response if you will the other thing is that the big hospitals and i'm talking to. you know eighteen billion dollars hospital systems that i'm talking to management and in they saw this coming they were already planned for lower numbers in fact there they are beginning to plan for even war numbers and lower numbers over time

the chief fraudsters of the world and that would be good and would be probably bigger than any g.d.p. growth in fact it probably kills more people than any fight any you know hot war has done here i'm sorry actual war i'm sure of goldman sachs took something called fraud public on the new york stock exchange f r a you day took a public on the exchange that it was a multi hundred billion dollar market cap and be the most biggest market cap security by far and this is what happened one nine hundred twenty s. j.p. morgan at that time took these blind pools public on the exchange that were just basically fraud taken public they took fraud public to lead to this huge run up in the stock market the twenty's then the crash then of course the big depression similarly in the markets around the world today we have fraud being taken public on unprecedented scale which will be followed by an enormous crash in the stock market and the bond market and we're just counting down to when that happens you know the markets are on suicide watch and finally a quick one here from greenpeace speaking of shrinkage a

when you're reporting on the g.d.p. growthmuch we grou in the first quarter, remember those are the government numbers. goldman sachs came out with their own private numbers and said we contracted more by 2.3% in the first quarter. so the economy is not good and i will tell you where the democrats are going to point the strength and that's in the stock market. so be aware of that because we are, as of today, hitting record highs in the s&p 500 but that wasn't without government intervention. u.s. central bank has been pumping money into this economy and as such, the u.s. stock market has continued to hit record high after record high. they're currently getting out. that whole tapering thing has happened now so it's something to watch very closely because they will try to spin the stock market hides as they tout that as gret news for the economy but at the same time, unemployment is above 6% and arguably, our economy is shrinking by the day. >> i have just a quick question about -- and you're right. the government has its own s

g.d.p. growth for the last quarter fell to minus one percent but many analysts expect growth to return in the second quarter of two thousand and fourteen and of course with expected growth and declining unemployment many fed watchers believe that the federal reserve will continue to taper and hike interest rates so to get some input on what's going on with the macro economy and what it all means for the fed i spoke with professor tim do we of the university of oregon now doing pens a blog called to do is fed watch which is widely read by analysts and market watchers interested in understanding what exactly the federal reserve is doing now i first asked him if he believes that growth this quarter could exceed three percent here's what he had to say. i think that there would be in fact a possibility we could see some stronger numbers and consumer spending and these capital spending side would not terribly would not surprise me you know a significant amount really i do think the economy is trending so

that's great for profits, but that means often less jobs as we continue to push jobs offshore. >> g.d.p. growth for the rest of this year, how does it look based on these new estimates in the first quarter? >> a lot of it was the weather. there's always defense, i expect that to pick up. we're looking for a big payback this quarter, maybe as much as 4%. that's what analysts are looking for. i'm not quite that bullish. i don't think we can completely recover from the first quarter, but it's going to be a tough go from now until the end of the year. >> other indicators with respect to housing, jobs and consumer spending seem more optimistic. how big a deal is it that the g.d.p. contracted first quarter which was a really bad weather period. >> it's not that big a deal but this is a very weak growth. very sub par. empolite is certainly sub par for a lot of americans. they look at the market hitting an all time high and say to themselves -- >> i'm not doing it -- >> right, going forward what i'm concerned about is our children. unemployment for kids, millennials is well over the national averages a

with negative g.d.p. growth in the last quarter, a contracting economy, certainly we do.re kids living at home with their parents than ever before rather than pursuing their careers, with median incomes declining, yes, we do. small businesses and their workers, they're hit hardest by the burdens and and overregulations of the tax code. it is 65% higher for small businesses than for large businesses. costing them $19 billion a year. we need small businesses doing the best they can, creating jobs, growing our local economies, not buried under mounds of paperwork. the bill we have before us today is the right step forward to level the playing field between small businesses on main street and big businesses. if a small business chooses to operate as an s corporation for tax purposes, we should ensure that they have the ability to access certain capital without penalties. under current law, an s corporation is subject to an entity level tax at the highest corporate rate on certain built-in gains of property. the tax applies to gain recognized within 10 years from the date that

based you have to look at those terms you can look at in terms of capital formation savings growth g.d.p. growth the actual and actual c.p.i. growth the none of those exist anymore it's all debt based all that you should be doing now is expanding the debt to become planet debt also this week the numbers came out that fifty two percent of americans can't even afford their home so they're actually having to take on second third jobs are having to cut back on food and order to pay for their mortgage or their rent but the other thing about this global debt bubble and no negative rate because i know we don't have the workers the mortgage rate on that home is going to be they're going to pay five or six percent or seven. on the mortgage rate the person is repackaging the loan and selling it off to the global wholesale market and those looking for yield like a sovereign wealth fund their cost of funds is less than one one hundred or one one thousandth of a percent that's the interest rate apartheid right there exactly we've talked about that many times but i want to talk about another headline here the

well for two decades prior to one nine hundred eighty yugoslavia was prospering with this annual g.d.p. growth averaging six point one percent a decent standard of living. free medical care and education guaranteed right to a job affordable public transportation housing and utilities literacy rate over ninety percent life expectancy was seventy two years most of the economy was in the public not for profit sector is a clear. sign. of a sabia was a different case because if it had established its own form of a socialist model of economic activity which was a mixed economy with private capital it's enterprise with state run industry and with worker cooperatives it was considered to be a success story of market socialism it had higher rates of growth than most of the countries of western europe it had been advanced well first say it was a multi-ethnic society. which lived in the holy land in many regards it was a model of development on. the hurrican to where we yugoslavia was located between greece italy and romania and it was populated by serbs croats bosnian muslims slovenes macedonians all of

cannot sustain such overvaluation without a significant change in the economy and even economic growth rates g.d.p. contracted at a one percent annual rate in the first quarter don't support the buying so the government and the too big to fail banks have removed all alternatives to you but to go into the market because at least there it looks like it's there are some gains that you might possibly have in order to compensate for the collapse in your income and the coming water cannon burst at your face right the alternatives being some vehicle where and by getting a savings rate that's the least equal to inflation but they've removed all the available savings programs by forcing interest rates to zero so people are getting a negative returns on their savings and without capital you cannot have capitalism and boris johnson is not a capitalist he's a hard dyed in the world communist socialist kleptocrat who supports cameron osborne who come from a similar economic school of let's create economic oppression take all the money from everybody and give it to our. friends flying in from overseas to buy lo