scheme it seems that those who are financing the ponzi scheme who need even a one percent yield on it on a european government ten year note are willing to pay up for as a way to broaden the base of what is essentially a global sovereign bond ponzi scheme yes or no a ponzi scheme is something that happens in the private sector and is illegal the same thing can happen in the government sector and is not illegal that is the only difference. fair enough but i wanted adding to it was that ok so you have a global sovereign bond ponzi scheme driven by central banks or keeping rates artificially low in this country not to think them they talk about a recovery and yet they keep interest rates at half percent so how is that work is there who's lying if somebody is lying well because what they're then trying to do is they're trying to manage the currency i mean whether they raise interest rates of course percent hopes and actually is not all that material but it is the perceptions in the foreign exchange markets and how that affects the currency that is the thing that matters as far as the cent

economy is a ponzi scheme built on the ponzi scheme of the housing bubble and if you raise interest rates would implode not going to stop going to implode anyway because the russian money is leaving and that was the marginal buyer of property in london and now they're gone and now that housing bubble popped and now the housing market is on the way down but nevertheless mark carney was never going to raise interest rates because of the u.k. guilt market or the sovereign bond market is of enormous ponzi scheme the housing market the ponzi scheme is he doing it to help the conservative party george osborne a member of the quid pro quo he told mark carney when he was still running the bank of down to come over to the bank of england keep interest rates low so that we can continue at number ten downing street and we'll give you something in return we don't know exactly what that is a b. they got a cushy job they got a lot of perks but there's a quid pro quo it's politics it's not economics and people start to wake up to this fraud well ok so if mark carney succeeds in keeping david cameron and

scheme the you take on is a ponzi scheme built on the ponzi scheme of the housing bubble and if you raise interest rates would implode that that was not going to implode anyway because the russian money is leaving and that was the marginal buyer of property in london. and now they're gone and now that housing bubble popped and now the housing market is on the way down but nevertheless mark carney was never going to raise interest rates because of the u.k. gilt market or the sovereign bond market is an enormous ponzi scheme the housing market's a ponzi scheme is he doing it to help the conservative party george osborne a member of the quid pro quo he told mark carney when he was still running the bank of canada come over to the bank of england keep interest rates low so that we can continue at no.

fair enough i was going to adding to it was that ok so you have a global sovereign bond ponzi scheme driven by central banks are keeping rates artificially low in this country not to think them they talk about a recovery and yet they keep interest rates at half percent so how is that work is there who's lying if somebody is lying well because what they're then trying to do is to try to manage the currency i mean whether they raise interest rates of course percent hopes and actually is not all that material but it is the perceptions in the foreign exchange markets and how that affects the currency that is the thing that matters as far as the central bank is concerned the bank of england and what they don't want to do is to have sterling going up and have it's priced out of the market i mean this is a new this is keynesian rubbish but that's basically the way they think but there is no recovery if they're not raising interest rates because if there was it would be rising interest it is completely false exactly and nowhere does go after the question who's lying is the answer is george l

in the medium term effects of ponzi schemes and the rest of it all of that really resonated with us but in addition i mean you have to go back to other thinkers too like vix in the high. richard coo for that matter there's a lot of people who saw that there are a lot of different ways in which things can go role and. i think in a sense what people find it hard to really understand is that there's no magic bullet in all of this stuff if the economy is really a very complex adaptive system it can break down in a lot of different ways we're not going to be one hell i'm sorry to cut you off but i'm being told that we have to go to break but please don't go anywhere because we want to continue this i'm glad that you bring up ponzi because i want to talk about that when we return but like i said it's time now for a quick break but stick around because william white isn't going anywhere he's coming back with us to continue our debt discussion however will be hopping the atlantic to focus a bit more on euro bland debt then in today's big deal edward harris and i are sticking with the whole debt

says he is part of a ponzi scheme. he entered a no contest plea on nine felony charges connected to 1.3 million of missing money he took from bay area investors. >> we're just overwhelmed with the notion of having a hearing that finally justice is going to be done. >> she is one of nearly two dozen victims. she asked us to hide her identity. she is reacting to ron's decision. >> he essentially entered a guilty plea. he is going to prison for what he did. your reaction. >> i'm stunned. >> he told the judge he was responsible for nine felony crimes stemming from $1.3 million in investor money that disappeared. >> the defendant was running a ponzi scheme. >> in 2012 our investigation pointed bright life on invest amount that started with ad look this one in several area newspaperes. promising a 10% return on investments into his car dealership. after collecting $1.3 million from bay area investors, he stopped making interest payments. and he didn't want to answer our questions about their money. >> will you explain? sir,

scheme well that good ponzi scheme is set to run out of money entirely in about eighteen months so the entire social security scheme in america is going to have to formally be declared bankrupt that's a liability that'll be kicked up to the federal government of hundred or so trillion dollars to add to the seventeen trillion dollars on top of the other unfunded liabilities of another hundred or so trillion dollars that's why america technically is bankrupt so going back to this report about hedge funds or private equity one study concluded that investing in hedge funds produced from one thousand nine hundred to two thousand and eight produced only the same returns as investing in treasuries meaning investing in stocks would clearly have been that handily so here they were wildly speculating deposits criminal fraud all sorts of crazy activity monitoring your pension fund and the haggard this is in is is hidden behind this sound looks great but in fact you should just invested in treasury if you would we had the same return oh yes from out of jurors tend to be corrupt they collude with e

says he swindled money all part of a ponzi scheme. few weeks ago, ron battistella entered a no contest plea on nine felony charges connected to $1.3 million of missing money he took from bay area investors. we're just overwhelmed with hearing that justice is finally going to be done. >> reporter: she's one of nearly two dozen victims. she asked us to hide her identity. she's reacting to ron battistella's decision. he's essentially entered a guilty plea. he's going to prison for what he did. your reaction? >> very stunned. >> reporter: battistella told the judge he was responsible for nine felony crimes stemming from $1.3 million in investor money that disappeared. >> the defendant was running a ponzi scheme, essentially. he was lying to investors. >> reporter: back in 2012, our investigation pointed a bright light on battistella's business dealings, investments that started with ads like this one in several bay area newspapers. promising a 10% return on investments into his car dealership. mr. battistella, tony kovaleski, nbc bay area

scheme the you take on is a ponzi scheme built on the ponzi scheme of the housing bubble and if you raise interest rates.

genuine growth in the economy so it's been revealed now that this isn't sack nothing but a global ponzi scheme where they have to keep trying to get printing and printing just keep in the same place there's no real organic growth correct this is exactly correct and that's because a ponzi scheme is an exponential growth of bet you have to have new members keep joining in anough to pay off pay off the former first comers the problem is that the banks are not lending to real estate because real estate's so loaned up they're not lending the credit card debt u.s. debt has actually gone down and that's because the economy is having to now pay down all of the debts that it was running up under the bubble so the banks are making a lot of money but money not by lending to the real economy the banks haven't lent a penny for new capital investment for new employment for new research and development they the banks have made their money by arbitrage by foreign strike elation by essentially corporate buyouts one third of the american banks profits and the last quarter came from making extending bio l

>> i don't think it is a ponzi scheme. but i think equities have more to claim as you get to the developed countries. >> there is bound to be some time for gut check sooner or later. still thatcast is s&p will be doing 20% by the end of this year. >> let's look at the individual markets. limits.s the we are into the next phase of the business cycle in india. we went to a very negative period between 2012 and 2014. there is at least a five-year upswing in india. all over -- although the equities have gone up the last few months, i think they have a few years yet to continue running up. to factor in an acceleration of indian growth, significant acceleration and real gdp. companies have been repairing their balance sheet for the last two years. they have been improving their cash flow position and their debt position as well. >> an economic miracle is being priced in right now. economic upswing asserting to take place. people were very negative on india. not concentrating so much on the sunsets, but the bse by hundred .- bse

the fact of the matter is, and i'm not talking about the ponzi schemes, bad judgment, incompetence, negligence, greed, these might be socially unacceptable. they lead to a lot of personal embarrassment. but they are not criminal offenses. we have laws on the books for a reason. in the rare instances people have gone to jail, but taking people to jail for messing up in their jobs, you would be locking a lot of people up. >> let's move on from that. let's talk about the present and the future. we had dodd-frank pass. one of the questions about dodd-frank, does it take to big to fail off the table? does it provide a way to wind down the feeling institution without having to do a lot of unnatural acts? is there an orderly way to deal with an institution that is insolvent? >> just to broaden it a little bit, i think of it as three pieces. up front, banks will raise liquidity and capital and cut their leverage. if you will see your doctor, diet and exercise. put the preventative measures up front. on the backend, there is an orderly resolution authority so we do not have this lehman brothers type fa

well-known local car dealer swindled more than a million dollars from bay area investors part of a ponzia story we first exposed last year. tonight a new twist that surprised a lot of people. here's chief investigative reporter. >> reporter: he pled no contest. it's the legal equivalent of guilty to nine felony charges, all connect to more than a million dollars he now admits to taking from bay area investors. >> he came into court and he said, you got me. i'm not going to contest those charges. >> reporter: reaction from a deputy district attorney to ron's decision to admit defleecing bay area investors. >> the defendant was running a ponzi scheme, essentially. he was lying to investors. >> he's essentially entered a glity plea. he's going to prison for what he did. your reaction. >> i'm stunned. i'm very stunned. >> she's asked us to protect her identity. she's one of nearly two dozen bay area investors who believed in ron. >> we are just overwhelmed with emotion of hearing that finally justice is going to be done. >> reporter: he admitted to nine felony kouchbts. crimes that grew out

. >> south bay real estate agent and notary public have been charged in a ponzi scheme.ta clara county pros cawtors say the 2 women stole 8 million dollars from about 18 people total prosecutors say victims had to invest at least 25,000 dollars apease and women told victims to expect as much as 15 husz dollars a month in return. >> next on 7 news. >> f different contend of realities for the newborn. incredible birthday caught on camera during the napa quake. >> plus pushing the limits of self promotion. tonight what the city says about tesla big plan outside of its plant. >> and battle over space. mid flight fight so bad air marshall to break it up for seat space. >> we are tracking some changes just off our coast. we take a look at the holiday forecast but here's here's jimmy kimmel. >> here's what's waiting for you after the news. this is now an emmy. win another one next year we get you the beatles or something. >> that's amazing. that is beatles or something. >> that's amazing. that is amazing ♪oh yea... old el paso's... got a bold, new stand'n stuff shell that's bla

joe ponzi here to tell us how the giants are doing trying to catch the dodgers. >> they can make it aad trip if they win tomorrow. rain has been in the equation all week. the grounds true in washington better than the ones in chicago. giants and nationals rain delayed for an hour and a half. in the first hunter pence gets one in the eyes against george zimmerman. number 18 for pence. nationals got two. lincecum then in the second water got three more. denard span with the liner up the middle, cabrera comes home. giants trail the rest of the day. 4-2 when jayson werth came to the plate. by the third lincecum was gone. two out basis empty when cabrera came to the plate. lincecum gives up six hits and walks 4. nationals win 6-2. giants fall four behind the dodgers in the west pending l.a.'s game tonight. >>> the little league world series today down to the semifinals. the chicago team taking on las vegas for the right to represent the united states in the finals. chicago took the lead in the second. a solid single puts chicago in fronts. the kids from will meet south korea for the champi

. >> south bay real estate agent and notary public have been charged in a ponzi scheme. santa clara county pros cawtors say the 2 women stole 8 million dollars from about 18 people total prosecutors say victims had to invest at least 25,000 dollars apease and women told victims to expect as much as 15 husz dollars a month in return. >> next on 7 news. >> f different contend of realities for the newborn. incredible birthday caught on camera during the napa quake. >> plus pushing the limits of self promotion. tonight what the city says about tesla big plan outside of its plant. >> and battle over space. mid flight fight so bad air marshall to break it up for seat space. >> we are tracking some changes just off our coast. we take a look at the holiday forecast but here's here's jimmy kimmel. >> here's what's waiting for you after the news. this is now an emmy. win another one next year we get you the beatles or something. >> that's amazing. that is xÑep 8taú about. >> oh, my gosh. oh, my. >> that is frightening. one of napa newest resident quite the welcome this weekend. mo

. >> south bay real estate agent and notary public have been charged in a ponzi scheme. santa clara county pros cawtors say the 2 women stole 8 million dollars from about 18 people total prosecutors say victims had to invest at least 25,000 dollars apease and women told victims to expect as much as 15 husz dollars a month in return. >> next on 7 news. >> f different contend of realities for the newborn. incredible birthday caught on camera during the napa quake. >> plus pushing the limits of self promotion. tonight what the city says about tesla big plan outside of its plant. >> and battle over space. mid flight fight so bad air marshall to break it up for seat space. >> we are tracking some changes just off our coast. we take a look at the holiday forecast but here's here's jimmy kimmel. >> here's what's waiting for you after the news. this is now an emmy. win another one next year we get you the beatles or something. >> that's amazing. that is nds] the wait is over for even faster internet. xfinity is now doubling the internet speed... ...on two of our most popular pla

four people, all from san jose, are accused of running a ponzi scheme. investigators say they told people they would invest their money in a variety of businesses and promise profits of 50% to 80%. the group now facing 23 felony counts, including fraud violations and grand theft. >>> just a couple of hours, salvage crews are going to try once again to pull an abandoned fishing boat out of the water. meanwhile, we are learning more about the missing skipper. he may be alive, taking off after swimming to shore. nbc bay area's mark matthews is reporting taxpayers may end up footing the bill for the salvage operation. >> reporter: yes, it looks like that, at least initially. we're waiting, as you say, for a couple of hours until maximum high tide. they pulled this boat up about 70 feet from where it was yesterday. they are hoping to start cutting it up tomorrow morning. the paloma is going to be scrapped and it's not coming cheap. the coast guard will pay to have the remaining fuel, if any, removed from the boat and then tomorrow begin the demolition. >> we

but some people sayville whole saying is a ponzi scheme that producing a lot of oil and gas but it would not last very is state dash that shows it plummets and production is dropping forget about what the president said about 100 years with energy security but talk to people in the field it plummets then it muffles off. so we're producing so much oil it will peak a little earlier in terms of fracking won a one. with a little bit alexians are chemicals as the high pressure. there is more questions. >> you talk about trying to get the information out there that media has a responsibility are they covering that situation on the slate? >> i am trying my best. >> i don't want to criticize my brethren there are some parts of the media they have overplayed both sides. it can become part jihadist you have experts on both sides and very heated conversation. a and people laugh at cnn there is incentive to create controversy it is not popular to be a centrist today. people don't go to what they want to hear. in is this is sad tivoli it is the achiever. and it is relevant as well i did this story on

social security and a ponzi scheme would be put in jail if you are in the private sector and by the way it is now bankrupt. earned income tax credit is the most fraud-ridden program in history and that's saying something. and my favorite the amtrak food service for those of you on the east coast who are familiar with amtrak. it's a total monopoly. you are trapped on the train and you forgot to get food before getting on the train anyway for the announcement that you can't really hear but you hope you hear that the food service cars open. you can get a two-week old turkey sandwich for $30. last year at amtrak food service along lost $72 million. how do you lose with them and i'll probably? only the government can do that. meanwhile the private sector has given us ever cheaper cell phone service, flat screens tv jerry garcia chia pets. every single part of commercial air travel has gotten vastly cheaper in my lifetime. the only part of commercial air travel that blows is the part run by the government. the airport security. on the way down here you know you have the full pack on by handso

deficit and they don't make much they don't export much it's all financial services assault based on ponzi schemes impairments came from the city of london you know when cameron says oh you know we want to harmonize and get rules to protect the city of london with the e.u. i mean he's talking about protecting the racket that is the city of london and i think germany and these other countries are saying we don't want you anymore i don't think germany wants the u.k. clearly what you're saying here is that they've got a great thing going on over there and with the u.k. out of the picture it's only going to be better for germany they can be more competitive frankfurt's going to challenge the city of london for economic banking supremacy i don't see what the benefit is to the u.k. i mean the u.k. is going to lose out on this and rightfully so because they've been a very bad actor as in the last fifteen years and contributing enormous later the global banking scandals of germany just want the u.k. to say in the because we tend to be that long to them paula i mean traditionally jimmy in france bu

this ponzi scheme that we call social security might be closer to being solved rather than a nightmareg in the distance. >> our government is also doing nothing with it and we work hard for that. >> the endowment is $30 billion and they probably have a no touch policies while. don't touch the money. >> if you ever look inside that lock rocks. my next investment ideas coming up really soon i don't think it's too late to get on there, it's going to rally back to the all-time high and it's all about wrapping up your profits and also answering your questions. we are going to do that and make some money. keep it here and we will be back. or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. charles: coming up, think big and think aloud. charles: so over the weekend the twitter founder jack dorsey chronicled on offense. missouri native has hands-on action with the power of social media and the promise of making everyone a potential journalist. but one thing twitter has made some changi