right value of the dollar and who gets to decide that it doesn't matter what the right value is it's too high now whether we get the exact right value who cares we're never going to be exact right value the point is it's clearly too high and we can see that because we have a boy a large trade deficit sort of like you know it's just the supply and demand service is really can you kind of want to want all the brands to run out of the store well maybe should raise the price well i'm glad of the economy one hundred one because i'm not an economist so that's a battle that well i'm mad i am a financial journalist that when the question becomes for me who benefits from that wealth transfer if you devalue the dollar you'd have a lot of workers in the u.s. would benefit because suddenly they would have jobs wouldn't have been previously have jobs pretty good to me oh ok well let's back up a second ok so to devalue the dollar when you going to do it again print a lot of money or you could i mean you could you could. perhaps persuade china to stop buyi

cut them out of the dollar system suddenly if you're a merchant in the rand and you need dollars to buy imports they had to double their local currency prices things went from two hundred thousand reales to four hundred thousand reales because they need a more realistic dollars on the black. market so they could get the dollars to import goods so their currency dropped forty percent against the dollar in one day then they imported hyperinflation and we injected hyperinflation into iraq because they had to raise the local currency prices the iranian banks raised their interest rates to twenty percent to stop a run on the back because people were pulling the reality out to dump them into hard assets so we gave them a trashed currency hyperinflation a twenty percent interest rates for weeks before the elections and this is not a coincidence in my view is what we're trying to do is generate regime change so this is sort of trying to reboot the green revolution part to put me to turmoil so that when the elections come in they will be rigged and people will be disappointed again and maybe we'

countries that already started to think about getting out of the dollar system now we're giving them another reason which is we're using it as a weapon i'm not saying we shouldn't do that because we need to confront the iranian regime but the iranians are some reports of the they're talking to the indians about doing a gold for oil swap there's a lot of gold in india so that actually is feasible it's interesting that the saudi arabians have stepped up to supply the shore oil shortfall to china so if china can have a rainy an oil they'll get it from the sort. the arabians but what about the indians they need oil to they're kind of like the cold so they're talking to the indians or the. china may get in the act i could see a russian chinese indian iranian central asian clearinghouse that would be non dollar denominated could be commodities could be local currency back so the message system they could just be completely outside the dollar system very interesting and we just have thirty seconds but does all of this mean that gold comes out the winner it sounds like there

. >> are over the hundred though dollar mark. they will survive them and make sure the decisions. . >> reporter: they have failed to approve same sex marriage in 31 other states. a, delegate had a commitment ceremony in 2005 and then got a license in 2008. she said in most of those other states it happened before the state's legislature had passed the same sex marriage bill. >> if voters overturned it they would take people's right away. it's another issue to take away rights gathered by the public body. >> reporter: for now the delegate is focused on there being a vote. >> i believe in the citizens, i believe they work hard to make sure it gets on the ballot and when it does, i believe that traditional marriage will be upheld. >> reporter: a poll taken last month showed that statewide 49% of people favor a law allowing same sex couples to get married, 47 opposed, in a near tie. the governor will sign bill thursday of next week, they have until may 31 to get the first 17,000 signatures and until june 30th to get the rest. . >> new

the day. i want to put that dollar chart back up on the full screen because i know you're sensitive to the dollar, and i think you should be sensitive to the dollar and really over the past six months we've had a pretty good dollar rally if we can get it back on the screen. this is the dollar index. the so-called dxy. it has lost a little ground. it lost a point, point and a half off the index. keith, i don't see a big dollar break here, and i guess i would ask you, if greece goes down, the dollar will go up, but more on the point, why is that not correct? should people be fretful about the dollar right now? >> the dollar is exactly what you just pointed out. it signals the health of the country. you can be very bipartisan about this. reagan and clinton reflected on a strong dollar that was moving toward $100 on u.s. dollar index or higher. obviously with reagan you were rung at 140 and 160 on the dollar index. when you're talking about that point in the chart, you're talking about a very low level in the index and a highly correlated price of oil. if you go back to the '80s and '90s. the price o

on the issue of the dollar, you've said that the fed policies could eventually erode the value of theollar. we constantly hear how the administration believes in a strong dollar policy, and yet we've already seen the dollar -- the value get eroded. what's the worst possible scenario there, congressman? >> we debase our currency. we literally wipe out living standards for people living on fixed incomes. and so i wasn't necessarily saying that everything he does is wrong. i was simply trying to say there are down sides to this policy, and the down side in this particular case are the savers of america, the people who live on cds, the people who live on fixed incomes. and if we want to have the kind of lasting recovery that gets us more productivity, higher living standards, you need investments. you need savings. not just consumption. and so we are actually harming the savings with this, by not getting toward a more normalized monetary policy. and yes, you could have a more normalized monetary policy, and still being very accommodative. i would say where we are and where we're going, an

and then thirty five more years it's in half again four percent inflation will cut the value of the dollar in half by the time you're young children go to college the value of the dollars cut in half so two percent four percent or cancerous these are not benign rates of inflation i'd like to see zero which means price stability and you know we speak about that too i want to talk a little about zero percent. interest rates because you have to talk about currency wars you have a really poignant part in your book where you're talking about how couples actually committed suicide by putting their heads in ovens to have you know the garbage monoxide poisoning right and why margarine money when there was hyperinflation i'm not at all comparing the united states to that situation but there is a situation of zero percent interest rates of savers not being able to save and it being dismissed as oh ok you know the economy is bad so savers shouldn't be able to save but isn't this the backbone of. the economy that's exactly where you are in the economist paul krugman and others remember doc you talk ab

is a provocative move aimed at washington if iran switches to the non dollar terms for its oil payments there could be a new oriel price that would be denominated in euro yen or even the yuan a rupee india is already in talks with iran over pricing their oil in rupees and they said even worse gold absolutely so if there are multiple exchanges of multiple prices for these commodities then the monopoly position enjoyed by the us dollar shattered and with that come all the benefits of that and all the inflation that america has exported to countries like china comes roaring back so those i pods and i pads suddenly instead of band a thousand bucks you're paying three thousand bucks the article also then goes on to mention the e.u. ban on iranian oil imports which comes into force on july first could hit europe harder than it does iran so think of this as you see mass protests the burning of athens the mass protests in lisbon remember one hundred thousand people were out in the streets of lisbon the same time the greeks were out there is mass protest and austerity and su

is the competitive dollar that if the u.s. devalues the dollar for there that will keep manufacturing jobs going overseas and will bring them home is that then false. well that's a common theory. that works in the short term it's works in the medium term it is never worked in the long term many countries that try this repeat of the if you just don't price law and yes you have an advantage for a while but in the end you've got to have the backup and everything else. devaluing the car and making your currency go out does give you a competitive good bet agenda shorter but i know of no country in history succeeded by some of the doing that currency and so in one prize and shoddy goods it's never were not in the long term ok so say they tried to do that now in the u.s. because they want they believe it will work in the short term more or whatever and ben bernanke he does devalue the dollar by printing more money what could be the collateral damage and and intended consequences of that one of the first is you and me i mean we're ame

raney and people the iranian government wants to do non u.s. dollar denominated oil training and this is heating things up right this is a driving force it's not about the nuclear weapons it's about this currency war as i was just saying i'm saying why. never knows who knows about whether or not the carthaginians killed their babies because the victor always writes the history here is the same as part of the propaganda one never knows if their killing their babies are actually going to trade oil in dollars we don't know but it seems to come up over and over that this is a psychologically important move ok let's just go to digress for a second let me ask you first let's the say it is about the currency and it's not about nukes ok let's blow this do a little thought exercise here using jim rickards currency wars as the paradigm what would be the appropriate counterattack from the iranian action as would it not be for them to introduce a gold backed currency as another way to slam a nail into the dollar's coffin. that also be true if they're fighting aga

is losing against the dollar. no oil it's flat trading flat to negative u.s. crude futures reached a six month high on monday cold weather in europe boosted heating fuel to the light sweet is currently trading at almost ninety seven dollars a barrel brant it's like you below one hundred sixty dollars about. now let's move to asia where markets are trading mostly lower with shop pools for tiny shares stocks also pushed down by surprise. central bank to leave the cash rate unchanged miners among the worst performers after the rate call with rio tinto down over one and a half percent from there also showing weakness bank of china gave up one point two and china merchants bank lost one and a half percent. now here in moscow markets are mixed this hour with a my six losing under a quarter of a percent following those losses in asia and some movers on the why six carrier air fought a slightly lower its passenger traffic rose by a quarter last year the bank is also down investors are waiting for details of its recently announced buyback. precious metal producer points

let's look at the markets now exchange rates for us all is pushing the ruble higher to the dollar and the euro is also losing value against the dollar with uncertainty about the debt crisis playing cards. it's next that it's makes the u.s. crude futures reached a six month high on monday cold weather in europe boosted leading fields like leaders currently trading over us to ninety seven dollars per barrel brant blend is sixteen dollars. plus european stock markets edged lower day investors are focusing on a merger in the resources sector while greek officials start of the agree on a sturdy measures mining companies away heavily armored units is also one decliners luxury retailers group is losing three point nine percent and christiane is falling for stuff. here across the markets are mixed up to seeing some gains in the afternoon now let's look at some movers all of them isaac's carrier air force has lowered its passenger traffic growth quarter last year to bank is also down as investors await the details of its recently announced buyback precious metals produced that point is gold ha

the other definition is the dollar versus other currencies and the foreign exchange value of the dollar and those are two different concepts. now, in fact, our policies have beenccommodating since 2008 and on beth account both accou doing okay. under my chairmanship, it has remained the and same and in the last three years, the dollar in the foreign exchange sense is roughly up and down, but the same as where it was three years ago so it is not a big problem, but it is important to distinguish the two components. you asked about interest rates on -- the second part of the question? >> it is on risk fueling asset bubbles. >> well, obviously, that is something that we have to pay close attention to. we have greatly expanded our ability at the fed to mon thor the system broadly to take a macro prudential approach, and right now, we don't see the obvious bubbles in the economy, but it is certainly something that we have to look at and continue to monitor. >> thank you for your response. mr. chairman, many citizens in the nation are concerned about the rides in gasoline prices at the pump. e

dollars a barrel. not a currencies that you the euro is trading lower to the u.s. dollar on thursday after the talks over a second bailout for greece have been called all of the ruble is losing value against the e.u. and u.s. currencies. stocks in the u.s. rise on encouraging data about unemployment benefits and inflation and also after the philadelphia federal reserve's manufacturing index in february rose to ten point two highest level since october dow jones industrial average rose in one thousand points up to the market open on thursday. stocks in europe are down led by banks stocks fell off to movies investors threatened to downgrade more than one hundred financial institutions in london heavyweight h.s.b.c. holdings close to one point two percent leading the footsie lower. here in russia markets ended in the red. and one in a quarter of a percent while the miser said half a percent has checked all the index will result in banking stocks were among the major treat is of the day's. nearly a percent close one point four percent in the red it's january net profit

to figure these changes what was the dollar value so it's basically that's the problem the problem is that you stop the pretext and that is what necessitates the use of that's the number one thing that puts muscle behind the dollar yeah that's a good point. you know you and i were kind of confused how does this even work as there's this whole issue of the exchange rate and the value of gold and it's very confusing i don't really understand quite how it could work so i guess you talk there i don't know if the colorado they are wanting to get here but you target is. the true value of gold as opposed to what is originally marked ok we're going to have someone on to explain it all to us so for now let's move on because we've been talking a lot about social nudity recently we talked about the headline indicator more recently the group indicator as reflections of social mood and indication of the economy so what does this indicate about where we are. we supposed to do something. so that movie was scream the mask and it was inspired by a painting that everybody can probably recognize called

when people say hurt the dollar, this tl are two definitions of the dollar. one is the buying power that is the inflation rate in the united states. does the dollar buy more today than it did yesterday? the other definition is the dollar versus other currencies, the foreign exchange value. those are two separate concepts. now, in fact, our policies have been accommodative since 2008 and on both counts i think we're doing okay. inflation over my tenure as chairman has been 2% which is lower than previous chairmen. the dollar has been -- if a foreign exchange sense, has been up and down. but it's roughly where it was three years ago. i don't think that's really a big problem. although, i think it's important to distinguish those two components. you asked about interest rates on -- the second part of your question? >> will it risk fueling asset bubbles? >> obviously, that is something we have to pay attention to. we have greatly expanded our ability at the fed to monitor the financial system broadly to take a so-called macro approach. and, you know, right now we

greece moves closer to agree a new bailout strong oil is keeping the ruble higher to the dollar at the moment. brant surging further towards one hundred seventeen dollars a barrel u.s. crude futures hit a six month high on monday as the called where the boosted heating demand. u.s. markets have opened lower traders are continuing to cash profits off the three year highs last week lenders led the falls as washington brought to new regulations designed to stop future economic crises bank of america's no point three percent j.p. morgan half a percent. europe has recovered but it remains down as greek officials meet to discuss that new bailout fund miners are also weighing on the markets off the glencore and xstrata announced their merger xstrata dropped over two percent on the year's. russian markets have closed mixed with the r.t.s. recouping early morning losses and the most extraordinary to migrate north for a second day. the movers on the minus six flagship carrier air afloat is lower traders had already priced in the announcement the passenger growth grew by a quarter last year the b

the dollar. but australian stocks tumbled. they wondered if the bank's decision to hold was a smart call. let's ask our next guest whether it was a wise decision. joining us, senior strategist. still with us simon grose-hodge. do you think the rb should have gone ahead and done the cut? >> we think they should have today. we think the positives glenn stevens noted about the economy will be true. we think the domestic economy in australia outside the mining sector is under quite a bit of pressure at the moment. manufacturing exports suffering a lot in the weak global environment but also with an aussie dollar at fresh record highs. we think financial conditions are quite tight and now back to long-run average levels and with bank funding costs rising we think it would have been blue dent to move policy into that expansionary territory to ward off the risk of the slower economic risk we are likely to face the first half of the year. >> to me they have been seen to be ahead of the curve. now it's put

the national retail federation forecasts 17.6 billion dollars will be spent today. if you went in on more than the $4 billion expected to be spent on jewelry, blue nile and tiffany are options. if candy is your style, hershey, shares down 2% year-to-date, trending higher for the week. 3.5 billion dollars expected to be spent on an evening out, opentable.com could be a winner, up 14% year-to-date. some pressures, cocoa prices could hurt hershey, prices of diamonds are expected to rise potentially cutting in margins for tiffany. bill, back to you. >>> courtney, thank you. >>> while you were talking the markets were coming back, the dow almost turned positive, coming back a little bit. later on the closing bell top retail analysts give is their picks for valentine's day's winners and losers. when we come back, a crazy closing countdown as we try to recap what has been a volatile day. >>> why the volcker rule would drive up costs. all that coming you. first how the major averages are trading, try to go neutral you're watching cnbc, first in business world-wide.  [

federal reserve from a dual mandate to a single one fighting inflation and protecting the dollar's value mood what exactly would that mean then for the fed's unofficial mandate of trashing the dollar will take a look at that question and turkey the fastest growing economy after china is being penalized in the credit markets reportedly for failing to promote consumer savings that's according to bloomberg see there you have it more evidence that savings matter so does this mean the federal reserve needs to end its work process and zero percent interest rates i'll talk about it finally with central bank policies of the fed and the e.c.b. with trash to cash programs are we seeing transfers create exponential wealth extraction turning into compound inequality and ultimately serfdom it's what we at capital account like to call the kleptocrats carry trade we'll break it all down let's get to today's capital account. so we have seen central bank and government policies responsible for wealth extraction literally siphoning off wealth with what we call the kleptocrats carry trade now in the

the euro against the dollar. it's not the u.s. dollar. it's canadian dollar, right? >> yes, yes. very clever of you there. so why am i doing this? canada and mexico are leveraged plays on the united states. they both have huge trade lengths. if the u.s. does well, canada tends to do well as well. and the canadien dollar tends to rally. canada to get that leveraged view. slightly more carry and play that against the euro. >> levels? >> you know, we could get in right here although with the ecb meeting next week, if they don't cut rates you get a little pop in the euro you might get a better entry level. let's wait for that. at sum ecb holds rates steady, you're going to get in around 1.32. target initially and move down towards 128. >> just quickly, just given the wide view you have over so many different asset classes, how do you feel about the market in general right here given the da that that we have today? are you more positive? >> the payrolls are volatile. january especially. so you take with it a xwran of s

troops there has cost the us around six billion dollars a year seven hundred u.s. troops and tens of thousands of civilians have died since the two thousand and one invasion. the deep freeze and have the snow have led to at least eighty deaths across eastern europe forty. three people have died in ukraine alone word temperatures have plummeted to minus thirty degrees celsius in bosnia a rescue helicopter airlifted emergency food and evacuated dozens from snow blocked villages weather forecasters say the subzero temperatures are expected to last until friday. a stark message from the u.n. to israel stop building settlements on occupied palestinian territory and restart peace talks palestinians claim they're being terrorized by israeli settlers outnumbered and outgunned some are now turning tech savvy to defend themselves policy or has more. this footage is being filmed with nasa only watches camera he's the palestinian who's been pushed to the ground by israeli soldier just moments earlier his friend took his camera and started filming with. president morsi was liter

the dollar index was up a fraction today. speaking of dollars, it is tax time, and tax software prep maker intuit is sitting at an all-time high tonight. that comes after a 6% rally today. intuit is taking more market share from competitors after the firm reported stronger-than anticipated earnings yesterday. this is the company behind the turbo-tax and quickbooks accounting software. and that's tonight's "market focus." >> susie: just about everyone knows the tupperware brand-- the company famous for those plastic storage containers. but what you may not know is they are bright and modern looking, and the company now sells kitchen appliances, baby products and beauty supplies. and those famous tupperware parties have spread to more than 100 countries. today, 90% of the company's business is in europe, asia and latin america. only 10% in the united states. business is strong, with sales jumping 12% last year. so why is tupperware still going strong after 50 years? that's what i asked c.e.o. rick goings. >> we changed the produ

very different because they are relative to the dollar versus the euro dollar versus the year. when you look at exchange rates you have to ask the relative question what does it look like on a standalone basis but what does it look like on the exchange which. cleanest dirty shirt to use their analogy what matters is not how many zimbabwe dollars i can buy with my u.s. dollars what matters is how much of this stuff i need to sustain my living standards that's how you measure debasement moving on i want to thank everyone for the positive responses to my davos coverage which i have which i responded to on twitter and i just want to reassess reassert that also earlier this week we got into a debate over savers versus speculators and one of our guests brought up a recent bank earnings as a sign that fed policy zero interest rates don't benefit banks whenever you choose euro said this newsflash the bankers might not be living the high life like ten years ago but none of them are getting foreclosed on they still make millions and billions and we're going to say hey it's ok at least th

right now the dollar is trading against the yen at 76.92-93. investors are selling the yen and buying back the dollar and euro. that's on speculation that greece and the eu will soon reach an agreement over an aid package. share prices are rising in tokyo pushing the key index closer to 9,000. investors are placing buy orders on export-related shares as the yen weakens against the dollar and euro. the nikkei a gain of half a percent so far. the broader topix also up by half a percent. an overnight gain on wall street also gave relief to investors. the dow jones advanced to its highest level in three years and eight months on tuesday. a look now at the long-term interest rates. higher by over one basis point. and let's also look at some other market figures. >> and that is the latest in business. back to catherine. >>> we're going to toss over to bangkok to find out the news. >> famous for their sandy beaches and clear blue seas, but there's trouble in paradise. the country's president resigned on tuesday following weeks of public protest that h

two, the fact that the dollar is a reserve currency. finally, the federal reserve is buying from many of them themselves. we have very few private investors in the united states buying u.s. treasuries. i think, going back, what is lacking in this country from a government policy standpoint is a simple program that answers five questions. what are you trying to do? how're you going to do it? why is it going to work? how much is it going to cost? where are you going to get the money? no, congress has not answered that question. the administration has not answered that question. the market is waiting for an answer to that question. the innovation in economic science over the last 50 years has been the role of expectations in how people in the economy, financial markets, work. if the u.s. government were able to announce a program that answer those five questions, the markets would immediately, and it was credible, the markets would immediately take that expectation of future stability and give us stability today. until we answer those quest

all of this lending to the banks these trillions and trillions and trillions of dollars and euros and fake currencies around the world all of it actually may blow up because i'll bear to gallo from r.b.s. says drag us for him to an eighty nine billion euro loans to banks at one percent for three years the l t r o is having all kinds of toxic effects which is disturb and giving that the financial times splashed a headline that the banks may draw down another trillion euros at the second l.t. are in late february well what they're not taking into consideration is that all of this debt is off the balance sheet and all the income is used immediately to pay off bank and near and germany so germany has effectively to seize control of grace they've seized control of portugal they will soon be totally in control of spain and they're totally in control of the earl's own it's all legal remember they put all that bad debt off the balance sheet as keep interest rates at zero percent interest rates were to rise us through three four five percent of course the game was over but that's never going t

troops there was cost the us around six billion dollars a year seventeen hundred american troops and tens of thousands of local civilians have died since the two thousand and one invasion. pakistan's supreme court says it will charge the country's prime minister with contempt for not reopening an old corruption case against the president and the trial is set to start in just over a week and could see prime minister yousaf out of. jail for six months the court has long demanded a reopening of the corruption case against president asif ali zardari dating back to the late one nine hundred ninety s. but the government still refused but it is just the president enjoys immunity from prosecution while in office. the deep freeze and heavy snow has led to over one hundred deaths across eastern europe sixty three people have died in ukraine alone that's where temperatures have plummeted to minus thirty degrees celsius in bosnia a rescue helicopter airlifted emergency food and evacuated dozens from snowball villages where the forecasters say the subzero temperatures should last until friday. wel

of the fifteen trillion dollar g.d.p. and china has a seven trillion dollar g.d.p. which means united states roughly you know more than twice as large as china but china makes ten times the amount of steel three times as many vehicles they purchase they consume twice as much beer they export three times as much as many high tech exports as the united states does. three times as much cotton five times as much coal other lists go on and on the so the cell phone markets three times as large so i just wondered how you know if we get duct printed my. any government transfer payments what would the g.d.p. of the united states really be you know i think that's really a bubble that nobody sees is that the american g.d.p. is a complete fabrication and i'd also highlight the manufacturing numbers you know many people including academics high level policy makers in united states will tell you well we don't need to worry united states is still the largest manufacturing economy you know the federal reserve has admitted they don't break up the value add in those numbers so you kno