point well let's refer back to joe wiesenthal because he interviewed paul krugman about bitcoin only days before congress wrote this big queen is evil thing and let's turn to what he said then about what why between is a problem in principle you can have assets which are considered valuable even though there is nothing backing them because self-fulfilling expectations now we don't actually think that money is like there because that's backed ultimately by the fact that you pay taxes with the right people always say that but it is a right if you have money if you like is backed by many men with guns for a coin is not so why should this thing have any value so backed by men with guns that tells you everything you need to know what we fact guests on the show catherine austin fits dr michael hudson and others who point to the fact that the dollar as world reserve currency is backed by guns because people say there's nothing intrinsically valuable about bitcoin and then the other side will say there's nothing intrinsically valuable about the dollar because the federal reserve is technical

about bitcoin paul krugman recently came out and said bitcoin is evil all so if he hates it we know that's probably a good thing. and they start i saw the financial times said that going to be under fifty dollars sometime in the near future which obviously is in my view it's not going to happen yeah you're absolutely right i was a little bit skeptical about bitcoin in the beginning but i'm actually a believer in it now and i do own some bitcoin and the reason why on it is i think it's the technological investment and it accomplishes what we tried to do to a certain extent with gold the difference of course is that gold is something that governments want to control and regulate whereas bitcoin is beyond government regulation and that's really one of its beauties and i think that's one of the reasons why an authoritarian like kruger you know lover of government hates bitcoin so the fact that you can't regulate it is one of its attributes except it is regulated it's not regulated by government it's regulated by the market it's regulated by everybody who studied it in analyzed and sees that ye

about bitcoin paul krugman recently came out and said bitcoin is evil all so if he hates it we know that's probably a good thing. and i start i saw the financial times said that bitcoins going to be under fifty dollars sometime in the near future which obviously is in my view it's not going to happen yeah you're absolutely right i was a little bit skeptical about bitcoin in the beginning but i'm actually a believer in it now and i do own some bitcoin and the reason why on it is i think it's a technological investment and it accomplishes what we tried to do to a certain extent with gold the difference of course is that gold is something that governments want to control and regulate whereas bitcoin is beyond government regulation and that's really one of its beauties and i think that's one of the reasons why an authoritarian like kruger you know lover of government hates bitcoin so the fact that you can't regulate it is one of its attributes except it is regulated it's not regulated by government it's regulated by the market it's regulated by everybody who studied it in analyzed and sees tha

as you know i think that's exactly right now what about the so-called new keynesians now like paul krugman most people would consider him a quintessential keynesian economist is he right well that they pose a great difficulty for keynesians and for post kynges because they're not really keynesian what they've gone and done is occupy the label. keynesian by calling themselves new kitchen just a bit hard to understand here but if you go back to the 1930's there were two people that at cambridge cambridge u.k. this is those came to on one side of the ideas of that became clintonism it was a man called off the pig goo and pig goose argument was that we had unemployment because of frictions in the economy prices couldn't adjust wages was sticky imperfections in the market. that has become modern economics and that in fact is the position of the new came to terms they would say we've got a problem today because prices on adjusting because wages on adjusting or some talk about it something called the zero lower bound you may have referenced it doesn't interest rates can adjust so there's some sti

government you know so everyone who behaves in that way is calling for closure basically you know paul krugman of the new york times recently said that the dollar is good because it's backed by men with guns did he yes he didn't suggest that there was any economic soundness to the american economy that there was any intrinsic value to the u.s. dollar but as many around the world have come to understand if they don't take the u.s. dollar the u.s. army will come and kill them they found us on iraq they found libya they find this out all over the world if i don't economist is saying that this is this is a just reason to hope that well i don't know walt will schools he went to the american school and the american school of the school of the americas it's a school that teaches people how to be cia agents to go out to various countries other around the world and whack folks aren't so let's get into your kind of your day to day specialty a little bit over there with a cat folks now you tweeted that gold doesn't have a spread under true free market action and that all goods are spread against gold all

this week that we need to protect ourselves against the deflationary ogres ok once again accu in paul krugman says there's deflation we need to print christine legarde assange all the deflationary ogre's we need to print the e.c.b. there's deflation we need to print mark carney well there's not sure about inflation but got to be careful about deflation we've got to print doesn't give doesn't printing money. to feed the zombie banks in fact is that the number one cause of deflation it will it will exacerbate things much more than the thinking from that perspective because that basically the way they're doing it is by borrowing exchanging cash football means so instead of the set of bankers that used to make money being the bankers of the government by basically giving a home for the government paper and now the state is basically saying to the people look we'll make you wealthy if you just hold on to government bonds interest rates will go to zero you'll have these huge profits and you know you will make a fortune like hulu buying because i was given example h.s.b.c. just announce that they've

not exist in economics until the right economist says it so we have to wait for paul krugman and there is some is five years off the stagnation had begun before we could have a conversation about stagnation and that's only just beginning by the way i think that'll be the conversation of the next couple of years i don't agree with that and there's been a lot of talk about the so-called secular stagnation because as you said you know former clinton and obama administration official larry summers he's been talking about you know big name nor has it do you think that secular stagnation is a result of this financial ised economy it seems so now there's an intimate connection mind you there are different theories of stagnation some people argue that it could be due to demographics and slowdown of population growth and retirement and so on another story i've heard it's about technology and the slowdown of technological innovation that's called bob gordon has talked about i think it's a long history of that i don't think those are either of those are true the real problem is that we have weak

after the london gold pool collapsed in one thousand nine hundred sixty eight i want to talk about paul krugman for a second is over there the new york times and you can have a big god a state sponsored manipulation without a propagandist and baltar of man is there ostensibly economics writer of though he doesn't seem and know much about economics has made a couple of remarkable statements recently one is that the us dollar. dollar is backed by guns there's no intrinsic value that we understand but if you don't take it we're going to shoot you essentially that's the statement your thoughts well you know that's not the way markets work you know markets work on voluntary cooperation between individuals and it's markets that chose gold and silver as money in the first place what governments have done is they've used guns to supplant the free flowing of gold and silver as currency in money throughout the world but what they've created is this third tarion environment in which governments and individuals the power balance is no longer balanced the way it should be which is why you see these various.

the ama administration has been made aware of this i economists on the left such a paul krugman. does notot want to take the isse up. when the president does not want to address the problem and focuses on whether we should pay folks to work at mcdonald's seven dollars an hour or nine dollars, we have those jobs. thones we don't t have are the ones you do not t want to go after.r. >> how can we fix where we are?? i did not want to say we are in a malaise, b there is s been a very slow w recovery. w do we fix i >> thehere are four things we ed to do. we need to develop oil andas. to finally open up asian rkets to american products. it's that simple. we need to use a crowbar and if necessssary a a basebaball bat a nail a at the end to do buness with china so the trade balance balances out and we get rid of all this unemployment. we nd to make thihis economy more efficieient. i have no quarrel witthe regulatotory g goals of this administration. i do quarrel with how ineffectively they do it and the terrible cts they impose on business trade mr. president, if you're listening, i can g

paul krugman yours are. what was important or what. what a witch. you you will what will . geneva to tease conference of the syrian crisis us finally begun. un secretary general ban ki min has described the challenges as considerable. the us un and others want a ceasefire and defamation of the government to include members of syrian president bashar al assad to tackle position. and to step down and face an international criminal courts it would be easy. re

paul krugman yours are. what was important or what. what a witch the next. most of all that relaxing. children today are in chile creative and please don't go to school. in eighteen sixty two sons. more important things going on. i saw. once again. he does. we have. the study the scientists also the humanities education and ten. the people. multitasking he does. choose. chit chat to the dentist today. a nice time just to entice you. this room that leads to the store nineties and me. each. other regional languages. stu he began to drown the age six you have to stop. use the team sheet. i asked him questions in relation to the day. turning the wheel and new name new living with them. i do the tree. ace dead he stops. nice day. thousands of civilians and forced a careful to do just as you walk. i am. in two months ago the no productivity the devil to get into a new design. tsk tsk tsk. lou dvds ulu long ruling will iraqi forces strike at al qaeda the distance in the city of ramadi while deploying their tanks ready to fight for fallujah. colder than mas temperat

of course paul krugman. yours are with all seven games. what a witch. to all. since. i ate it in sec one and all. after wrapping up his toys to africa and latin america trust among joel drive in los angeles only tries to stop all good bye to taiwan he was greeted at the airport by taiwan's representative to washington cp told an american is chewing taiwan term and i remembered but conte says and it was rumored that scene will be assigned as the supervisor over it all means us election campaign in the year and specialist policy lacks is the interaction between mocking team became the center of media's attention. the minute televised in los angeles and it had to stop and the fact that i won from home do as he was greeted at the airport but i was her descent into washington team can tell an american institute i went and then made money for heights president lying joanne team was whispered to each other is doing a ten minute short to medium flame. it was romantic scene may be appointed to a new position including as the director general of national security the oral advic

pot a core curve to zero and this of course is amazing because most pundits in america like the paul krugman is of the new york times they can barely wrap their mind around big coin one point understood of joeys of dollars business insider is still struggling i'm not sure what big point is yet meanwhile bitcoin two point zero is now ready to go ready to launch and set another stage another chapter in this incredible encroaching technology tsunami that is just blasting away all these high priced middlemen and scoundrels banks.

john: and had to go all the way back, paul krugman would tell you that inflation is 2%.ig mystery. they started paying interest on the extra reserves. if that actually gets went out, then we will see higher prices. >> it is a serious issue. you can get a return on your money anymore for savings. that is ecisely what we are discouraging. john: let's go back to the rome parallel. they traded and they prospered and they did what most poticians do. >> he empire kept expanding and eventually run 180 day ahead the maximum extent of the empire so over time this was the downfall of rome. a big government destroying rome. the barbarians came as the government was collapsing over its own weight. john: with the next emperor, this is 85% and all the way down >> it ended up being 15 thousands. >> the had this kind of cartel arrangement and we see the quality diminish over 100 years. john: a lot of people get worked up because they say by and large america is doing pretty well. >> people thought the real estate market are doing pretty well. especially with a governmnment that refuses

." >> paul krugman also pointed out that rising inequality can have negative consequences, in the sensehat if it leaves us more economically vulnerable then -- if the people who are rich cannot pay for stuff, then everyone suffers. >> a contradiction of intermixed ideas. he received the nobel prize in economics. to demonize the job creators is crazy. to demonize the rich who spend and buy things and stimulate the economy is crazy. i heard on the news hour with -- oh gosh, the name escapes me -- they got into the discussion of the idiocy of rolex watches. they talked about it as a symbol of terrible values and etc. well, i think that is a little silly. so, what? >> i want to continue this conversation after the break and talk to you more about how you think we can heal the problem and what the responsibility is of the rich, of the one percent, of the technology companies. tom perkins, kleiner perkins caufield & byers, cofounder of returns with us after this quick break. ♪ >> welcome back to "bloomberg west" today. i am emily chang. we are back with tom perkins, cofounder of, kleiner perk

pot a core curve to zero and this of course is amazing because most pundits in america like the paul krugman as of the new york times they can barely wrap their mind around big coin one point. joey's adult business insider is still struggling i'm not sure what big point is yet meanwhile bitcoin two point zero is no ready to go ready to launch and set another stage another chapter in this incredible encroaching technology tsunami that is just blasting away all these high priced middlemen and scoundrels banks so you could say hello to a good cause all of one. so then he goes into look at some of the applications already being applied using bitcoin the technology on the block chain colored coins for example the main idea behind the colored coins project is that you'll be able to apply secondary values to certain big coins on the bitcoin block chain those secondary values can then be used to create completely new digital currencies that are backed by real world assets for example let's say you will in some gold at your house you could hypothetically take five suppose she's and say that each one

pot a core curve to zero and this of course is amazing because most pundits in america like the paul krugman as of the new york times they can barely wrap their mind around big coin one point. joeys of dollars business insider is still struggling i'm not sure what big point is yet meanwhile bitcoin two point zero is no ready to go ready to launch and set another stage another chapter in this incredible incursion technology tsunami that is just blasting away all these high priced middlemen and scoundrels banks to say goodbye hello to good all of what. so then he goes in to look at some of the applications already being applied using bitcoin the technology on the block chain colored coins for example the main idea behind the colored coins project is that you'll be able to apply secondary values to certain big coins on the bitcoin block chain those secondary values can then be used to create completely new digital currencies that are backed by real world assets for example let's say you will in some gold at your house you could hypothetically take five suppose she's and say that each one of tho

they brought out a new printing that it can't happen here and the newspaper columnists such as paul krugman natural on their authority with what they saw as the current bush administration slow takeover of the united states. they saw yet another down, that they never specified as the first. .. not so different from the news mri and i don't know how they selected these good people that are selected but it's an oligarch of good people. how this has been done he doesn't have much to say. when you read or listen to people around the obama administration it's very similar to their view of the world. very similar to their view of the world with one important difference which i won't go into now. i will pick it up and question and the answers. let me stop at that. i have probably gone on too long. what time is it quite oh good. i have gone on too long. sorry. thank you. [applause] >> fred has agreed to take your questions. who would like to begin quite. >> hi. >> wait for the mic. >> i am always intrigued by this antagonism of intellectuals to capitalism and it's a persistent threat. and i wonder

. >> paul krugman, did you hear what you expected to hear? >> here you go. whose pen is this? thanks, guys. there we go. >> this is a success story, and it's irreversible. he knows he's one of the most consequential presidents we've had. >> i agree with a lot of what everybody said. i think this was a very good speech for the president. i think in terms of the ideas he laid out, they're real achievable things that we can do to strengthen the middle class and help people get into the middle class. just because he's mentioned them before doesn't mean we shouldn't get them done. i think the president demonstrated he's serious about getting something done. >> i think i've said before that i think a speech by barack obama is a lot like sex. the worst there ever was is still excellent, and i thought he gave a very competent performance tonight. one of the things working with candidates is when they're in a weak political position, sometimes they confuse volume and loudness with strength. that's what i felt the first half of the speech that he was willing himself to demonstrate stren

. >> paul krugman argued that it's not really the top 1% that's the issue, it's the top .1%, the one 10th of 1% where the huge disparity has been created. >> i don't agree with him. i think it's more like the top 5%, including people like myself. if you look at mr. obama's policies, they heavily tax people below us, for people who make $100,000 a year to $50,000. that's not the target audience. folks like jami diamond at j.p. morgan, they don't have to pay regular income tax. they get most of their income in stock options and use the carried income provision that mitt romney use to say shelter his income. we don't see barack obama going after those guys. they talk about it, why? they harvest lots of big campaign contributions on wall treat. that a lot of this is more political than economic, has to do with sacred cows that neither party wants to slay. >> the people at the bottom end, we need opportunities for them, but one of the big discussions now is whether there should be an increase in minimum wage. the president called for an increase to $9 an hour and tying it to inflation. a

paul krugman will tell you inflation is about 2% a year, historically, that's pretty good. >> this isn't a big mystery. the federal reserve has created a lot of money with whatever we're up to, but the banks are holding most of it back. it's not going into the price level because they're holding it as extra reserves because the fed started paying them interest in the extra reserves. that's a form of robbery, actually. >> how? explain that to people. >> i mean, yeah, it's a serious issue. you can't get a return on your money anymore from savings. >> really, you can't sustain cost s without an investment. that's what these policies are discouraging. >> let's go back to the rome parallel. they prospered and then they did what politicians do. >> their empire kept expanding and they were bringing in more people they could loot and bring back to rome, and they hit the maximum extent of their empire and there was no one left to steal from, and then they started resorting to other ways to raise money, which was debasing their currency and taking silver of our of their coins, and the big governme

. >> paul krugman argued it's the one-ten's of one percent which is really a problem?i don't agree with that. i think it is the top 5% from people like myself. folks like jamie diamond at -- at jpmorgan, they don't even have to pay regular income tax. they get to use the carried interest provision that mitt romney used to shelter his income. now we don't see chuck schumer and barack obama going after those guys. they talk about it, but they don't. why? they harvest lots of big campaign contributions on wall street. and a lot of this is more political than economic. it has to do with sacred cows that neither want to slay. >> one of the big discussions is whether there should be an increase in minimum wage. iowa senator tom harken has put forward a bill that would raise the minimum wage to $10.10 an hour. he said, and i quote, . . . i don't think there's much doubt among the democrats who are focusing on income inequality that this is a big political issue for them. but what about minimum wage and the fact it is well below what it has been in historical terms? the >> you

so, let's go right to paul krugman's "new york times" op. ed.he republicans the enemies of the poor? >> absolutely not. i think all you have to do is look at the president's policies and that's all you need to know for how to increase more people on dependency and more people on poverty. and it's not working. "the wall street journal" had a great article today. it says we t. looks week we are going into a european structural unemployment problem. perpetual high numbers of unemployment and low numbers of job creation. that's not good for young people. it's not good for anyone. and that's the problem. you know, when i see op. eds by republicans and democrats on the question of poverty. i research what they are doing to. had he it's so easy, republicans and democrats sort of take pot shots from either sides of the aisle. are you even doing anything? are you doing anything to help take pot shots. poverty is such a serious problem in this country. interesting that i think that the democrats have been very effective at making republicans look like the

i'm not talking about paul krugman.alking about former first lady barbara bush. >> reporter: when you think of modern era president power families, only a few names come to mind and former first lady barbara bush is not so crazy about that. >> kennedys, clintons. >> reporter: she didn't mince words on the subject that's silly. >> reporter: well, how is that sitting with jeb bush? he's talking about a 2016 run for the white house. i asked jeb about running in march. >> you'll make a decision sometime in 2014? is that a fair assessment? >> i don't know. i think there's a lot of talent in the republican party and, you know, we'll see how it plays out. >> while jeb remains on the fence, his mother, the wife of the 41st president and the mother of the 43rd said she hopes her family is all done with 1600 pennsylvania. >> i would hope that someone else would run, although there's no question in my mind that jeb is the best qualified person to run for president. but i hope he won't. because i think he'll get all my enemies, all

. >> at the bottom it read, paul krugman is off today. >> we are happy to have david on if he wants toake his case on the piece. >> absolutely. >> i'm sure he's coming. >> are we going to leave it there? >> is it called a joint? >> we're done here. >> or a jay. >> our facebook fans are also talking about the colorado recreational use laws, if they want to see is it extended, he predicts it will improve the economy. you can see how on track tony is about marijuana, stocks rising and money and leisure. don't forget, i've said this before, don't forget to like us on facebook. >> very important. >> up next, it is not just you, why american can't seem to keep its most popular new year's resolution. >> said this before. [ male announcer ] this is george. the day building a play set begins with a surprise twinge of back pain... and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ >>> we're only three days into the new year, if you're one of the 45% of americans who made their new year's resolutions this year, i hope you are still keeping

paul krugman, "new york times" columnist, grover norquist, and also the mayor of baltimore, stephanie paul, you saw tom's report. what role does government have in trying to address this is inequality and how do they go about it? >> first of all, taxes and spending. and by the way, obama has already done much more than people give him credit for. i've been a pretty harsh critic of him. but in terms of mitigating some of the consequences, he's done quite a lot. first of all, taxes. he's restored a lot of the progressivity of our tax system. the effect of tax rate on the 1% is back up to about what it was in 1979. if you just look at that measure, it obama has rolled us back to prerate levels of average. not all the rates are the same, but the overall level of taxation on 1% is back up what used to be considered reasonably high levels. health reform is a huge benefit in terms of economic security to lower income americans essentially lower income working americans because people who are too affluent to -- didn't qualify for poverty programs but many of them lacked health insurance. so t

allow for those transactions to take place, i think you can quell a lot of the questions that paul krugmansis of the current see while you allow its magic to happen. >> for the optimists, is it a hindrance that we don't really know who was behind it? i think that is the best part of bitcoin. if we knew who it was, all of out.undits would be it would be a question of whether that person or entity is good or bad, when the reality is, we can focus on the discussion of whether or not bitcoin is good. >> very good. we give you a lot of different opinions. through the other day, hogwash. coming up, blackrock with interesting reports on security analysis. it is "bloomberg surveillance." ♪ >> good morning. bloomberg surveillance, futures up 5. mo is with us from spark capital. erik schatzker has our top headlines. >> president obama will call top limits on spying on foreign leaners. -- leaders. theseestion is whether limits would apply to u.s. allies and not to leaders of hostile states. the changes come because of mr. edward snowden. the banks had a seven year high last year. we will get the numb

back on track after the recession ended by the way many economists including nobel prize winner paul krugman say that that many recession of thirty seven thirty eight was as i mentioned caused by the government drawing back on their own successful new deal programs courses many conservatives argue the real thing that brought the us out of the great depression ultimately was world war two but what was world war two if not the biggest government spending program ever . right now our country is still still mired in the aftershocks of the worst economic downturn since the great depression although unemployment is nowhere near as high as it was right after the wall street crash but that number is deceptive many people have just given up finding a job and so the unemployment rate actually looks better than it is. and without unemployment insurance millions of people are now living on the edge of total poverty congress needs to extend unemployment insurance but it should go even farther it should listen to what f.d.r. and reagan said about welfare the best welfare program actually is a joke and tha

. >> paul krugman recently said it was a mistake for finland to join the euro. he wasn't saying you should exit but saying it was a mistake as one of the aaa countries. is that a fallacy? >> i don't share this view at all because euro has been the most step. out krntcy for finland ever when looking at our history and it has helped our business a lot so that's why we are still industrial country, that's why we are vastly moving country in terms of innovations, so i don't share his view at all. >> and the key driver of the economy going forward is its tech and innovation, you're remodeling the economy. >> exactly and start ops are one of our positive news at the moment. there are lots of capitalists coming to finland from all over the world, russian entrepreneurs coming to finland and universities have become the home base for new innovations and new companies. >> interesting to hear. thank you so much. >> thank you very much. >> jyrki katainen the prime minister of finland. >>> ross? >> we'll bring you up to speed what is happening with european equities, it's of

people like michael wouldford, paul krugman and others talked about those issues and how that would work were relying on research. parenthetically, i think monetary policy in general is an extraordinary example of how thinking within policy institution and in the academic world's can mutually benefit each other and we made use of the ideas we got from academia and ideas that came from our own experiments. the basic problem was interest rates, short-term interest rate was effectively zero as of december of 2008, that any analysis would suggest there was not enough economic monetary support to achieve a sufficiently robust recovery. we need additional stimulus and these were the two methods with some experimentation we came to. and i do think they both have been helpful, we have learned a lot. but i would disagree that these are complete the novel ideas, a number of central banks tried forms of forward guidance and the federal reserve on considerable period and those kinds of things as well. we were trying to build on what others had already done. >> q e was more controversial than the len

but the overwhelming consensus from even paul krugman's own economics textbook says that it does preciselyt. i'm not saying necessarily we shouldn't extend these benefits, but he makes it sound as if no reasonable person could disagree with his position when, in fact, the data point that he's wrong. jon: all right. we are going to invite the both of of you back on the ore side of a commercial -- other side of a commercial break. we have to do some business here, want to hear a response on the president's push to extend uninsurance benefits in this country. will congress go along, and will they offset the cost? that's coming up. hey kevin...still eating chalk for heartburn? yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! i'm here to get the lady of the house back on her feet. [ all gasp ] oj, veggies you're cool. mayo? corn dogs? you are so outta here! aah! 'cause i'm re-workin' the menu, keeping her healthy and you on your toes. [

as paul krugman put it in a recent "new york times" article, no matter how desperate you make the unemployed, their desperation does nothing to create more jobs. so let's come together to strengthen our economy, to stop offshoring millions and millions of jobs in this country and let's extend unemployment benefits to the people in this country who have earned them. until then, i urge republicans to come on, at least allow a vote on restoring unemployment benefits to those americans who have worked for a living and deserve the respect of this congress. mr. speaker, i yield back my remaining time. the speaker pro tempore: the gentlewoman yields back. the chair will now recognize the gentleman from mississippi, mr. harper, for five minutes. mr. speaker, i rise today to honor a great american hero, specialist terry k. dontez gordon, who was among six u.s. soldiers who passed away due to wounds suffered hen their blackhawk u. uh-60 helicopter went down in afghanistan's, the bull region, on december 17, 2013. specialist gordon was born in mississippi on september 21, 1991. after graduating from hi