and other sign that the u.s. dollar as the world's reserve currency will slowly lose its attractiveness that is for crosstalk r.t. . ok more and i'd like to go back to you in hong kong or. where is this in china's playbook here i mean do they want to the their currency to be is just as important as the dollar at some point is it challenging the dollar or is it just want to be part of the game just a bigger part of a bigger part of the proportion of currency that is being used in the world. yeah of course they want to increase the influence of the name be. clear because vis a vis the currency influence also comes political influence to go together and of course the u.s. has been using the willingness of other countries to accept the dollar. as a way of living beyond their means just by printed money so if other countries accept your currency as a reserve currency then for for some time you can just print and don't have to work that hard so that's a great advantage to any country to have but it was mentioned us before it'

we know that the dollar will hurt them. the numbers are down. >> you weren't concerned with what they said the other day about growth? >> actually not. i was a little bit more relieved. china was slow. that's going to change i think over time with their rate policies. s japan was weak. expectations are low. >> everyone has heard me say it, i love this stock. that's the only reason i own this. >> mike murphy, how would you play the strong dollar? >> i think buying a name we're seeing a lot of fundamental, positive news on is target. the stronger dollar will trickle down. it's had a nice run. >> thank you very much. coming up on "the halftime report" a beaten down tech stock value plays or value traps? our traders make the call. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture.

repudiated the gold backing of the dollar. now, the united states has the ability to lead in the coming age of monetary reform by uni unilateral of its monetary standard, namely gold. unilateral -- means that the united states dollar will be defined in congress in federal statute as a certain weight unit of gold, just as the dollar was defined from the birth of the republic, that is to say the coinage act of 1792, until 1971. the u.s. treasury and the federal reserve and banking system will be responsible for maintaining the statutory gold value of the united states dollar. now, what would such a financial world look like in the united states? first, all financial -- on banking agencies chartered or supervised under federal law that are payable in dollars shall be redeemable in gold at statutory rate without restriction. dollar demand deposits, for example, checking accounts will be redeemable in gold upon demand. but other dollar claims, of course, redeemable at maturity. second, along with customary bank notes and bank checki

then the dollar was defined as a weight of gold of 1/35 of an ounce of gold, the definition of a dollar and year by year foreign central banks, which alone could exercise that right to redeem began to redeem, and for a full ten years before the united states suspended the gold convertibility of the dollar, before it went on the pure paper system for that full ten year, the government was -- was continuously -- it was an exercise in continuous improvisation to try to fend off that evil day when they would have to try to face the fact we were simply consuming more than we producing. so precipitously it happened because the united states refused to yield to the ever so constructive discipline that the world was trying to impose on it. >> wasn't it the pesky french in american gold? >> among others. there are many nations that came to the window and demanded gold. >> and -- >> this may be seen as somewhat of a follow-up to the prior question, but as a practical matter, if the united states were to return to a gold standard the way you discuss it, my question would be, how much -- how much o

the u.s. right or to so much cash three point three trillion dollars worth of cash if europe gets into trouble well you know it which would happen which country in the world has the ability to bailout your north the united states china because this three trillion dollars and when it has that power or that ability it can always exercise power what could be political ramifications for that as far as crucial foreign policy issues for example over syria will the u.s. pay more attention to what china thinks about certain issues well if you take it on for example i think it's you know the u.s. wants china to be on its side and you know if china were to sit take north korea for example you know it's a great example you know if china were on the side of the u.s. . things would be so much easier but but the fact that china has an independent view on north korea makes chinese american dealings with north korea that much more difficult in fact in my book i begin my book with a kind of fantasy scenario where. i say that you know ten years from now if the united states gets into so much economic trouble ri

when there's a crisis the oil come to dollars and the dollar becomes strong so the effect of all this printing money has not been to make the currency cheaper you know we have to china's policies has made the chinese currency cheaper what you've been talking about is basically the world confidence in u.s. dollar and dollar dominance allows the u.s. to live beyond its means essentially to some extent yet so how long can it last well the thing is that it cannot last indefinitely because. in my book i argue that because of this the devise of china and the fact that the chinese economy is becoming so strong it's a credit to big trade or gradually over time the chinese currency would start to become like you know kind of displace the dollar because people will have more confidence in the chinese currency than in the american goods that's going to be a gradual process and you know but at some point it could start to happen gradually and that that point you know the u.s. no longer has the ability to live beyond its means like you said because the dollar's dominant but but that's going to hap

stronger the dollar, the weaker the sales. earnings experts say some large companies have already shared the bad news with investors. >> in general, the consumers staples and healthcare sector are the two with the most negative pre-announcement data. the two companies that stand out the most are procter and gamble and merck. >> reporter: the concern is that there will be more big companies with currency losses, especially if the greenback continues to gain ground. and, that's just what's expected. >> we have a q-3 and end of q-3 target of 120 and after that even a sub 120 level. so, it's pretty much wide open, a lot of it depends on how european policy makers respond. >> reporter: considering how european policymakers have responded so far, it's likely we'll be talking about the effects of a stronger dollar for many months. suzanne pratt, "n.b.r.", new york. >> tom: a stronger dollar has contributed to a drop in commodity prices like oil, as has a drop in demand from places like china, which has been a huge consumer of global

economic ties are developing rapidly with both expanding their national currencies as opposed to the dollar how important do you think that is in times of global economic instability. i think what the two countries are doing is probably to act as a hedge against any instability in the u.s. dollar which is perfectly understandable given the fact that you know the u.s. economy seems. the recovery seems slightly shaky but i think even then there is it's not possible i think that the two countries have a clean break from the u.s. dollar in part because the chinese yuan as you know is not for me floating and part of its value is sort of. tied with us to now try to has expressed concern over a u.s. plan to sift most of its warships to the pacific region by twenty twenty does beijing have grounds to be worried. if i remember correctly the first statement

kind of through the u.s. dollar that's why people are still in this limbo on the second question you had last year the euro was close at one fifteen our growth to one point five zero so you know they were all just telling financial problem that it's a bag of breakout that the girl should we likely to leave the only thing that would maybe stop that we could have sold the euro zone easy you there the u.s. economy comes so weak that then the dollar weakens and the fed pretty small me and then weakens the dollar or that finally the european get their act together to find the ground plan that leads to a banking fiscal doing in that motel is a show restoring gurlitt. and other things that the restore hope that they eurozone is going to stay together in which case you could start to rally game right among the main downside risks to the global economy you mention of course very slow we could. mc recovery where do you see the new tigers mudge and what is the present role of brics nations strong growth economies the world of

weakens and the fed in pretty small me and then weakens the dollar or that finally the european get their act together the fund the ground plan that leads to a banking union fiscal doing in that motel is a show restoring gurlitt. and other things that the restore hope that the eurozone is going to stay together in which case you could start to rally again or among of the main downside risks to the global economy you mention of course very slow economic recovery where do you see the new tigers emerge. and what is the present role of brics nations this strong growth economies the world of being an emerging markets until recently the brics by that i was sold some of the rising power as you know of turkey in than a job you know or mexico's not just the brics and what concern is about the briggs and other emerging market is in all of them for the federal reserve and there's now a slowdown of growth you see it in china city in russia you see it in brazil in part of this because europe and you are sort of slowing down if not constructing but in part is because many of these companies and t

look at a 24-hour chart of the euro versus the dollar and then the mirror image, the dollar index. they're the mirror image and fairly synonymous with what they're telling us. take everything that sage gentleman known as art cashin said, pmis in china and germany, weak philly fed and weak equities and my opinion a fed that did the right thing and seeing the markets recalibrating a bit and maybe the real story is affect on interest raits. if you look at intraday chart, low yields now making new lows as we speak with the dow down 190 and if you look at a boon and this is a 2-day chart see the dynamic we are now under the yields of the low yields yesterday on the big fed day. and i think that's very telling at this point in the session. back to you. >> all right. thanks, rick. the dow down about 190. let's go to the market flash. >> brian, disappointing existing home sales report showing a fall in may. it's casting a dark shadow on home improvement stocks. fortune brands, shares of home depot. massively underperforming the markets to name a few. some of these stocks sitting at session

and what is your take on the euro dollar rate because last year we asked you the same question and you said that you would not bet your money on the euro and you are right about now there is a generalized happiness way with the u.s. dollar that the tween us fiscal and current take on that say by the realities for now there is not. the us dollar that's why people are still in this limbo on the second question the last year of the year was. close at one fifteen i'll go to one twenty five i would say you know they would all just go in financial problem that it's a bag. that the girl should weaken and there's likely to weaken the only thing that would maybe stop that we can as of the eurozone is either the us economy come so weak that then the dollar weakens and the fed prints mani and then weakens the dollar or that finally the european get their act together the find the ground leads to a banking union fiscal doing and that mattel has a show restoring girl it. and other things that a store of hope that they eurozone is going to stay together in which case you could start to unravel a gam

up so with the low hanging sentiment proof seemingly picked what does this mean for the euro for the dollar and of course for gold we'll talk about it and as markets and the media weigh euro zone policy decisions and the stakes of the upcoming greek elections let's take a break from what government is doing to talk about what individuals are doing to address this crisis. that ad you just saw the lure tourists to greece was not paid for by the government it was frowned funded to raise money for from all over the world we'll talk to one of the founders of the initiative that made this possible in the second half of our show plus can and should the u.s. tax code attempt to bolster jobs and innovation in alternative energies senators were talking about it on capitol hill today but commodities expert dr stephen leeb is here to tell us if the u.s. is already being left in the dust compared to other countries when it comes to renewable energy development and what this means if we truly do face oil scarcity let's get to today's capital account. so by late yesterday the spanish so called solution th

three and i think more and if you would show and i do know that chart between the euro and the dollar and actually the euro i think it's flat in the middle of its range which was what eighty to one sixty something like that so it really is indicative of currencies going nowhere but gold if you were to put gold up there over the last seven or eight years you just see you know basically a straight not nearly snap not completely straight up but you see an incredibly strong bull market and you know this is been the story of the you know since the beginning of this century real assets despite a lot of dips along the way and we're in the middle of a dip right now have really sailed along whereas paper assets have been dismal a disaster and i just don't see any way around that i mean germany is trying to fight it tooth and nail right now and trying to. argue austerity is the solution to everything but i mean this is just creating vicious circles and just to comment on today's action and one of the things that could have sparked the market is german bond yields jumped twelve basis points toda

states would make the exchange between the local currency and the dollar and this is how these countries foreign reserves were depleted because the people went into massive dollar debt and they would pay them off with the local currency and the state and the central bank of these countries would make the exchange and pay off the dollars but in the process start eroding their balance sheet and what happened in the end of course is that these countries found themselves in a position that they had no more dollars and they were essentially bankrupt and so when that happened they had to devalue the currency and get off the peg when they did that. all of these people who had debts and dollars and they were before able to change their local currency into dollars and to pay off the debt well all of a sudden they found that their debts had grown exponentially in some cases but at least you know thirty forty percent because of the devaluation when that happened these people who were for the most part small businesses this is about a different sorts found themselves

going to be the us dollar that's why people are still in the book on the second question in the last year of the year was close at one fifty dollars to one twenty five i would say you know the overall fiscal and financial problems that it's called aggregate that over breakout suggest that the euro should weaken and is likely to weaken the only thing that could maybe. that we can solve the eurozone is either the us economy come so weak that then the dollar weakens and the fed in pretty small me and then weakens the dollar or that finally the european get their act together the fight in the ground leads to a banking union you know it's going to doing that i'm told is a show restoring girl that. and other things that are stored hope that they eurozone is going to. stay together in which case you could start to rally again all right among the main downside risks to the global economy you mention of course very slow economic recovery where do you see the new tigers emerge and what is the present role of brics nations this throng growth economies the world of being an emerging markets unti

this is due to a selling of risky currencies for the dollar for safer assets such as the dollar and the yen. now -- the euro/yen is also back at the 100 levels. now turning back to the markets, we do have -- >> i have a question for you. >> go ahead. >> you mentioned that the u.s. fed, any stimulus hopes for that may be dashed for now. what can you tell us about over in europe? >> well, we do have a mini eurozone summit coming up with the leaders in the meeting to discuss the eurozone crisis. any news of financial integration will be closely watched out for, not forgetting greece which has a newly formed coalition government. they'll be trying to renegotiate the terms of their bailouts. interestingly tonight we have a greece versus germany face-off. we'll see who ends up the net winner on the pitch tonight. >> thanks a lot from the stock exchange, both the nikkei and the topix down over 9% so far this friday morning. >>> now, crude oil prices, they dropped to their lowest level in eight months on thursday in the new york commodity markets as concerns mouped over a global economic owdown

currencies globally not just the u.s. dollar and they're all who are you know so to say that the u.s. is going to enter into hyperinflation first when these problems are more severe elsewhere and severe don't they miss the boat or and they miss the big turn they missed the boat big time but you are. saying you were caught and you've been saying this all along now i ran out of time to talk about obama picking winners and losers maybe next time for that that's all we have time for mike said luck thanks so much for being on the show he's the best that advisor first pick up pacific capital. to be on this show or him. all right let's wrap up with loose change shannon dimitry your audio better not cut out are writing to me. ok so unusually this caught our eye because kids being lured out of school out of college with lucrative contracts and perks has been athletes but oh look at the times with the technology boom it is a different crowd being lured this way take a look. that. is a new. baby. you could call him nerds or you could call

kind of the us dollar that's why people are still in this limbo on the second question the last year of the year was. close at one fifteen i'll go to one twenty five so you know they would all just fill in financial problems that it's a bag of break out that the girl should weaken and there's likely to weaken the only thing that could maybe stop that we can as of the eurozone is either the us economy come so weak that then the dollar weakens and the fed prints mani and then weakens the dollar or that finally the european get their act together that fund the ground plan that leads to a banking union fiscal doing and that mattel has a show restoring girl that. and other things that a store of hope that they eurozone is going to stay together in which case the util could start a game or among the main downside risks to the global economy you mention of course a very slow economic recovery where do you see the new tigers mudge and what is the present role of brics nations this strong growth economy as the world of being an emerging markets until recently the brics but that i was sold som