and the direction of the dollar in the middle of the dollar which may be substantial from that price break but it hasn't gotten as of yet so therefore we can have no trade on we are essentially long u.s. market we are long u.s. stocks with investments in companies like little lemon tree called the mexican grill pinera bread w. or berkeley. coal bunch of companies and just grow there are a number of good companies and good businesses in american actually are doing very good and we're proud of them and what will that's interesting that you going back to what you were saying about the things that have impact on the dollar and you've mentioned your app and some of these other global crises that we've seen what about the dollar holding up do you think that's why it's held up so well and it's all of the quantitative easing that we've seen. well quantitative easing you might think would be the loot of the dollar has held up because of the instability in the world you know if you are in france if you're in germany if you i mean investors need to put their money somewhere they were getting no

we can't really get short the dollar until the dollar effectively breaks in the low we are trying to followers we want what the market wants and so the dollar kind of hugging that line two thousand and eight low and it would essentially need to break support if it breaks support we will as our firm has a desire to which is to follow the direction of the market we will essentially do our part to protect our investors and get on side of the dollar and the direction of the dollar in the middle of the dollar which may be substantial from that price break but it hasn't done it as of yet so therefore we can have no trade on we are essentially long u.s. market we are long u.s. stocks and with investments in companies like google lemon chipotle a mexican grill camaro bread. berkeley. cold bunch of companies and just growth there are a number of good companies and good businesses in america that actually are doing very good were proud of them and what will that's interesting that you going back to what you were saying about the things that had impact on the dollar and you've mentioned your ap

is the dollar at the risk of weakened further? well, rich bernstein says, no. r. >> yeah. rich things the u.s. dollar will benefit greatly over the next several years. rich joins us right now along with meg mcclellan. she's head of u.s. fixed income. meg, good to see you. thanking for joining us. what kind of a move are you expecting? >> well, in the short term, i'm not a good short-term trader. i have no idea. but think over the next three, five, seven years we will see the dollar meaningfully appreciate. pretty much reversing what we've seen in the past decade or so. >> really. >> >> why? i think -- currency, everything is relative. in the land of the blind, the one-eyed man is king. i think people have grossly underestimated the problems around the world. that's good for the dollar. i think that's good for them. >> what do you think? i know your message is don't fight the fed or the fed is very clear. they're going to keep rates low. that would suggest a lower dollar, but what about rich's argument? >> certainly. i think in the near term, do you see better nu

and then i would expect the dollar to do better. the reason i'm expecting the dollar to do better is because the u.s. economy is looking better than europe. and i think u.s. interest rates are going up, partly because china is not going to be investing as much money in our government bond market. >> has that been what's been driving the trend of late? >> exactly. both china and japan, big investors in the u.s. government bond market don't have the money they had before. >> bk, the other currency expert in residence. how do you see the strategy? >> i like the long dollar trade. one, you have the safe haven flows. if the world gets bad, everybody wants to be in the world dollar. the one question i have for john is, when we're talk about u.s. treasury flows, they've come from 38% of the global gdp down to 17%. there's only bonds and bunds to buy. i would be buying treasuries down here. tlts, the etf. doesn't that put a natural floor under treasury rates? ments i think that certainly does help. you have to look at who has the money and h

the value of the u.s. dollar is on the decline what does that mean this week let's talk about that do you think the dollar's decline means the u.s. is losing its status as the world power yeah i think that it's reasonable to assume my husband doesn't go well why don't you take that because it will make you well competitive in export markets i think we're all going now we're all going to mean every country every country the end of the world time in rural you know the mines might be right december twenty first so we're going to be the currency mine if there's no more dollars or euros or anything what are we going to be trading probably beans we're losing jobs to china and. you know we're we're not people are working so would you be willing to use pave money in chinese yuan if it keeps going the same way absolutely i think we're very depending on the dollar as the international trade depending on the dollar do you think it's going to change to something like the chinese yuan or the euro any time soon different adult

the social inequality against the dollar is a made currency is protected by the central bank mafia he can't breath with the dollar or you could be accused of some crime and end up in a prison industrial complex tell me why that's not true but you know actually you're right of the dollar as the beneficiary of the fact that everybody else's dude is doing the same thing but you know it doesn't matter to the american people in my view whether the dollar is up today against against the euro or some other free awkward currency people don't look at the exchange rate or the dollar index when they go to work in the morning when the alarm clock goes off people work and save for what the dollar will buy them and you're right you know the monetary base has exploded it's like a hockey stick graph and it's you know it's been it's become a wobbling only on the balance sheet of the fed you know a critical mass sitting there and now the containment unit is starting to breach and it's starting to leak out into the economy and we're seeing it already in gas prices and grocery prices and so on and so you

when they go to work in the morning when the alarm clock goes off people work and save for what the dollar will buy them and you're right you know the monetary base has exploded it's like a hockey stick graph and it's you know it's been it's become a wobbling on the on the balance sheet of the fed you know a critical mass sitting there now the containment unit is starting to breach and it's starting to leak out into the economy and we're seeing it already in gas prices and grocery prices and so on and and so we're you know this is not i mean do they think banks they think that they can create a couple of trillion dollars to bail out the banks first create a couple of trillion dollars to buy you know to buy american debt and that there would be no consequences of this what kind of madness is there well again the headlines of today's papers are that wast the profits to this year trying to solve are going to hit record highs and the bonus paul is going to hit record bonuses so the gas price not twenty or thirty percent food at ten percent it's meaningless doesn't make any difference to the pe

as a fake it to make it and the idea being that well we'll just park trillions of dollars of debt on the balance sheet and then through growth that will come in the future this debt will never have to be paid but of course for that growth to materialize you have to get rid of the interest cost on the debt which is not going to happen so there will be no growth coming down the road but there is austerity and real austerity so the people in the us who are suffering because of bernie they're not given any voice whatsoever they're just considered to be off the radar and we don't talk about them there early on was there the untouchables there are the underclass america now has a permanent underclass i think that's what needs to be said is that grammar night you zero in the us to consider the millions and millions of people who strolled under the bus and then maybe he's not so heroic all right thanks very much thanks so much for being on the kaiser report. dangerous all right well stay right there much more coming your way. i'm max foster welcome back to the kinds of reports i'm

the sound dollar act ends this. the dod-frank -- dodd-frank diverted the federal reserve's profits, which would otherwise be paid to the treasury. it could avoid congressional scrutiny. this is a dangerous present's common nothing other than the operating cost of the federal reserve should be paid for out of this process. this requires the consumer financial protection bureau to seek annual appropriations from congress just as other agencies do. there is no justification not to. to conclude, it is appropriate that we have this discussion and debate about the fed's role in the future of our economy. on this day in 1933, 24 hours after he became president, franklin d. roosevelt ordered the banks closed. he banned the export of gold to stop a growing panic as the depression intensified and call congress back to a special session. this is a historic day and a reminder that we ought to focus on not the reactive results and actions of the fed, but the strong, proactive rolls by which we want them to operate. to ensure amer

of the united states last year was approximately fifteen one trillion dollars the equivalent for europe was about sixteen trillion the brics that is reserved russia india china south africa account for over eighteen trillion dollars last year that's the size of their g.d.p. from but now their interest rate is growing at a rate of thirty percent per year that's the trade within those five senses so this is very important this is a key group that the mainstream media is not paying attention to but ought to be paying attention to because you know it's the biggest economy in the world now if these five countries starts to implement a close trading system among themselves and exclude europe and the united states well then we're going to see some serious serious shifts in the world economy and i think some of these leaders are also sort of feel that power not only with trade but with the economy especially as a lot of them are you know what we call emerging markets and there's been a lot of talk probably as a result of the so-called south south development fund the formation in the future pos

>>guest: price the gasoline in the old silver pun, the old dollar before they give up on the silver dollare. the actual dollar is over $3, depending on the day what the price of silver is. but in real money gasoline prices are actually going down and that is what, i used that the other day with bernanke when he started at the fed announced that silver buys 11 gallons so it is the money issue. there are other factors. i don't deny that. and with iran, that is, really, important, too, but, overall, when newt gingrich said he will get down to a couple dollars he is saying we will increase the supply so tremendously we will bring it down but if he does not increase the value of the currency he cannot do it. >>neil: you hit on something that has been a focus on this show, congressman, so i don't know if that has you change your position on this because it has been a focus that the problem isn't escalating oil prices or gas prices but the problem is, our weak dollar and oil is getting prices so would you revert to a system where you peg the currency to something more solid? is that what this is

he's sure that the dollar would remain as he. currently see a choice in the world's global trade and if these countries succeed and this seemed to stop each other's currency and maintain a more. foreign currency exchange among themselves this will erode our status now why is this important because it will become harder now it states to fund its deficit remember people only buy that is foreign countries are made by u.s. treasury problems because the dollar is the world's trading currency now if that's that's status as you wrote it if the dollar is no longer it will be sort of currency if it becomes atomize among you know the reason that russian ruble the indian rupee and so forth then there will not be that needs by treasury parlance because after all foreign countries you mentioned are buying treasury bonds because we need those dollars in order to buy oil and other commodities which are currently priced in dollars now as that is he wrote it by the skin fixation of bret's it to start affecting the american economy specifically the

the dollar is being undermined. o not like the price of gasoline, do not say it is somebody making too much profit. and why don't you say it is ben bernanke? plintsing too much money. -- he is printing too much money. that is where the problem is. if we continue to do what we are doing, we will run into a much more economic crisis, destroy the value of currencies. there will be a lot more inflation. interest rates will rise, and the more the government does trying to keep up with inflation, the worse it gets, so the only way i see out of this is to say instead of waiting for that day, we more or less have an addiction, so we keep spending money, and it seems to keep hiding them over. if we did its now, we could have priorities and say there are a certain class of people who have been taught to be dependent on the federal government, and some of those programs and would have never been started, but i am willing to say the best way is to cut overseas spending and take care of those fat are dependent. -- people who are

it if the dollar is no longer it will be sort of currency if it becomes atomized among you know that was in the russian ruble or the indian rupee and so forth then there will not be that meets and by treasury problems because after all foreign countries you countries are buying treasury bonds because they need those dollars in order to buy oil and other commodities which are currently priced in dollars as that is eroding this information of the brics it's a start a fact in the american economy specifically the american ability to fund itself yet debt and that will put added pressure on the federal reserve to go into the. no printing press no and print out more dollars and less accelerating the dollars that we serve it's well let's talk to certainly this tipping the scales of the economy is one of the most important things that these countries talk about but they also seem to want to make sure that the rest of the world knew their position on military interventionism certainly china and russia are to have that opportunity for united nations but they made sure that everyone knew that a

and the importance of king dollar. plus jimmy cramer says if obama care goes down, earnings for every company will go up. that's right. every company. whoa! does jimmy have that right? we'll hear from jimmy cramer right after the break. and don't forget, free market capitalism, not government mandates is the best path to prosperity. i'm larry kudlow. we'll be right back. people really love snapshot from progressive, but don't just listen to me. listen to these happy progressive customers. i plugged in snapshot, and 30 days later, i was saving big on car insurance. i was worried it would be hard to install. but it's really easy. the better i drive, the more i save. i wish our company had something this cool. yeah. you're not... filming this, are you? aw! camera shy. snapshot from progressive. plug into the savings you deserve with snapshot from progressive. you know how hard if yit can be to breathedo, and what that feels like. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keep

possible phasing out of the dollar and the beginning of the end to the dollar as a reserve currency. well first of all i gotta say i was so pleased to see that what right over the world you know in terms of scale it's not it's not going to ride with roberto i think the brand we think about is that it's this one work piece in the creation of a more bipolar world where you don't just have a few institutions. in western europe that are calling all the shots you have plurality of the institution that i have sway and can play a role but i think it's a very positive development so you know we should just sort of add together not just this one institution to the world bank but all the institutions that are being formed and supported by these countries and others to try and have a diversity of active about the the currency in the dollar i think it's very healthy for these countries to have. all of their trade dominated by the dollar i was leave the dollar. to a as another currency for truly. there's no reason for these countries not to have a tree in other currencies besides the dollar and t

the less dependent they become on the dollar and the more vulnerable the u.s. economy becomes today that the dollar is no longer except that around the world as the predominate reserve currency now another announcement that they are expected to make some are out as this plan for the countries to form a joint development bank do you think that this could a rival of the world bank and if so how. well i don't think the world bank is a particular useful institution so i don't think that this is a good sign this see countries trying to follow what is a very bad example and to try to create more structures from government i think what the bric nations need to understand what all nations need to understand is the less government involvement in their economies the better what they want to do is get out of the way they want to make government as small as possible have as few regulations as lower tax taxes so that businesses can thrive so that production can increase and linder living standards can rise particularly you know for the middle and lower classes and you know

different economy is all coming together to labor grex to a new global economic future one where the dollar might not be so high and mighty i'll give you a preview of the great summit and the hour i urge that we not begin a new world without a full debate without a vote without careful consideration of the ramifications of a third or even a fourth war in this past decade i dare for respectively object rand paul brings an unpopular stance to the senate floor and unless it look before you leap into conflict with iraq all congress listen are is a full speed ahead for war. plus it's the case that has pittsburgh's muslim community all riled up a thirty four year old man arrested seemingly after being provoked by the f.b.i. to make jihad mr mark so is this justice served or another case of entrapment and the u.s. will debate. it's wednesday march twenty eighth here in washington d.c. i'm liz wall and you're watching our team. well it's a group of countries banding together in a troubled world economy they've been calling the brics that is a prison india china and south africa heads of states from

the canadian dollar that will weigh on the oust railian dollar. s an advantage. i'm looking on the figure. i look for a move down to 102.50. >> thanks a lot for joining us and catch more money in motion at 5:30 eastern time. up next on fast, we are thinking about getting into the options trade and we will show you how to do it. [ male announcer ] any technology not moving forward is moving backward. [ engine turns over, tires squeal ] introducing the lexus enform app suite -- available now on the all-new 2013 lexus gs. there's no going back. see your lexus dealer. there's no going back. [ donovan ] and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. >>> welcome back >>> welcome back with the options acti

which would value the whole company at one hundred billion dollars. and it seems that no one wants russia's sweetest assets and by that i mean russia is the largest confectionary maker and also government couldn't find any investors who are interested in that state so it canceled the auction altogether the sale involved in almost thirty percent stake for over four hundred fifty million dollars and it was part of russia's privatization program. and finally asia has knocked off north america and now goes the title as the world's economic center of gravity number of asians with a fortune of at least one hundred million dollars is now estimated at eighteen thousand now this is compared to seventeen thousand in north america and fourteen thousand in western europe when it comes to russia that figure is slightly less just over two thousand and six were published in a report by frank and the global property broker expects that the number of the country's super rich to grow a staggering seventy six percent in just five years and that would be the third faste

the idea then. what i worry about is our dollar starts to drop in value. as we start to pump more money into the equation. we just negotiated a new loan to build a new building. it was certainty that the banks came to us, and we came up with what we thought was a real attractive package. but, again, the driver for all of us that own a small business is the certainty of what the markets are going to be or, as we look into the future, how we plan our purchases, our equipment buys, employee hires and everything like that. what do you see happening right now, dollarwise, our value of the dollar? it does drive what lenders will ask for us to give back. if r me it became very difficult because the covenance changed every quarter, the fact that we had singular purpose building. yo your collateral is not what it was before. risk is the key that drives everybody. we're looking at great risk in europe and the con tantagion of. i look at us as mountain climbers, climbing on the same rope. once it starts to come down, it will bring us all down. prime rate, some certain

i think on the right but twenty percent of the limitation cutting on the following dollars a little bit of money i think the mistake is losing a lot of young people on the street that this is something to be the case for. only one hundred days don't let it go in that o.t. . strike demonstrations. this is like. the sun sign now the government will if they will sing on the budget. which will be very very close there like ease any. any of the old people get. fresh. and years like the tree. recently. spotted condition something that came back over a year's time but this comes on the back of the bike lane and country that's a cyclist i see. now marchers are rolling through spain as people rage against austerity and the labor forms that people feel will leave them on the breadline these are live pictures for you right here from the city of seville where demonstrators marching up brandishing flags and chanting slogans for the strike. it's destructive public transport with flights delayed until friday and many businesses and banks and even schools shut as well even some television stations have

the stronger dollar. right now the dow is well off the lows, trying to get back to neutral, which we have not seen much of today, down four points right now at 12,975. the nasdaq at this hour, is trading down 9 points, about a third of a percent at 2979. and then we've got the s&p 500 index down three points at 1370. >> europe back in the spotlight, of course. spanish yields rising today. higher than italian yields actually. >> uh-oh. >> bringing in bob pisani, and chief international correspondent michelle caruso-cabrera back at headquarters. michelle, let's talk about the yields in spain and italy, what's going on? >> the spanish minister said by the way, our deficit, it's going to be a lot bigger than we expected, 5.8% of gdp. and he blamed it on the previous government, who said, he said they didn't hit their target. we've seen this movie before. what we saw was a continued rally in italian yields. those seem to get better. so they're starting to meet spanish yields, they were higher. people are concer

it's a pretty dramatic change in the way the dollar has traded over the past couple years. right? years we've been used to where risk on meant dollar down. now the last month or so we've seen it rally together. that's a big change. >> the bottom line, what do you do with the dollar right now? >> i think we're in the process of seeing u.s. growth expectation shift somewhat high. i think that's something that is somewhat supportive of risk assets. the thing on near term then the dollar can get a bit further boost. not fully priced yet. >> i think we need to -- first of all, i agree with your long dollar position. but i think we need to define this risk on trade. if you look at commodities on a 15 day basis, 60 day basis, one year basis. they are all negative. inverse correlations. that did not go away. gold got crushed today. is that not a reason to be bearish? >> jens don't answer that yet. we have breaking news. >> ally financial today had the lowest performance on the stress tests. now out with a statement. they're taking a poke here at the process. take a listen to what ally is

possible phasing out of the dollar and the beginning of the end to the dollar as a reserve currency. well first of all i got and so so i need to see them a rival of the world in terms of scale it's not going to it's not going to write a world plan to keep the program when you think about this that it's it's one more piece in the creation of a more bipolar world where you don't just have a few institutions like nike from the eastern europe that are calling all the shots you have. relatively. institution that have sway and can play a role but i think it's a very positive development so you know we just sort of added together not just appear at this one institution to the world bank but all the institutions that are being formed in support as i these countries and others to join the diversity of active about the currency and the dollar i think it's nearly healthy for this country to. all of their trade dominated by the dollar i was legal dollar. fluctuates. as other currencies so actually. there's no reason for these countries not to have three other currencies besides the dollar and th

this year not just in guarding against the impact of europe's financial crisis moving away from the dollar as a reserve currency to a brit striven one is also still firmly on the agenda it would become a goody goody good because currency good be. good. it is just breaking new york of this the summit will be hoping to advance further the economic interests of the brics group further loosening reliance on western germany to global economic architecture preassure either r t new delhi india. well it's now get some insight from beijing from killed trying editor in chief of chinese news outlets the fourth media thank you for joining us here live at r.t. that is the creation of a joint bank by the brics countries is certainly i have this is project how realistic is it do you think i hope it could be. soon to be a reality will new war. on her guy change is going all the. global reserve currency the international ideational look on currencies on wall by brink's nations will mean so much in terms of the new wall or replacing a dark domination more than half century and the reason why you were so you

when people say "hurt the dollar," there is two definitions of the dollar. one is the buying power that the inflation rate in the united states. does a dollar buy more today than it did yesterday? the other definition is dollars of the currency, the foreign exchange rate of the dollar. those are two separate concepts, okay? in fact, our policies have been accommodative since 2008, and on both counts, i think we're doing okay. inflation over my ten years as chairman hash abo been about 2% which is lower than the previous chairman. at the same time, over three years, the dollars has been up and down, but it's roughly where it was three years ago. so i don't think that's really a big problem. although i think we should distinguish those two components. you asked about interest rates on the second part of your question? >> will it risk fueling asset bubbles? >> obviously that's something we have to pay close attention to. we have greatly expanded our ability in the feds who monitor the financial system broadly to take a sort of macroprudential approach. right now

if the dollar is down and the market is up, his approval ratings go up.at's where we are. >> sadly, that's where we are. all right, take a whack at the bernanke story and, please, i don't want you to whack too hard. why do health care stocks as the supreme court is hearing this landmark case about obama care. health care stocks had a big rally. now, what do they know that the rest of the world, including the supreme court justice don't yet know? >> i know, that's the interesting thing as you look at the ten sectors. it was the leader of the pack today. interestingly, we really don't learn anything until tomorrow, necessarily. you know, an interesting trade there. but obviously, a sector that certainly hasn't flourished this year. so it could be just getting a bounce of one of the sectors, perhaps that hasn't played as well in 2012. but as far as bernanke goes, he's really on message with what he's been saying. we didn't get new information today, necessarily. i don't know if people were expecting him to say things look great. that certainly hasn't been hi