the u.s. if interest rates started to rise there would be a reallocation of probably out of treasuries out of j.g. b.'s in japan into the equity markets. and so i'm not so concerned in terms of equity markets going down when the u.s. will go up again i'm more concerned about the u.s. government that if you would drive significantly the interest payments on the government that would go up significantly and what would then happen is that the deficits instead of coming down would continue to escalate and the credit quality of the u.s. would stay in the classroom and that's interesting so worse for the u.s. government then for investors let's speak about who is also a large customer for the u.s. government's debt and also has been driving global growth i want to talk about china because i know we i've heard you talk about china i want to differentiate here between your short and long term view because you've said before long term it's easy to say china will continue to grow but like america and the eighteen hundreds there will be bumps along the road america had recessions america had financial cr

the u.s. central bank should start buying treasury and mortgage-backed securities and keep buying until the economy is much stronger. still, is more fed stimulus what stock investors really want? suzanne pratt reports. >> reporter: a battle has been brewing lately inside the federal reserve among the very people who set monetary policy for the u.s. economy. some, including boston fed president eric rosengren, want the fed to do more to boost the flagging recovery-a lot more. rosengren is calling for an open-ended approach to bond- buying and says "you continue to do it until it's clear that you're no longer treading water." for example, future asset purchases might continue until the unemployment falls to 7.5%. >> instead of having to guess each meeting whether or not the fed will be doing more asset purchasing, the market could just form an expectation about what the unemployment rate is and then know what fed policy would be given that unemployment rate. >> reporter: at the other end of the policy spectrum is dallas fed president richard fisher. just yesterday, fisher said more help from the u.s.

now the white house says the u.s. treasury is closely monitoring the investigation of the u.k. bank. standard charter is accused of scheming with the iranian government to launder $250 billion. the bank's stock plunged 23% in london trading today. so what happens next? here to answer that: annemarie mcavoy, a former federal prosecutor specializing in money laundering. she is now a professor at fordham law school. ann marie what do you think is going to happen next, how much bigger is this going to get? >> this is only the beginning, this is going to get much bigger. there are going to be numerous investigations, not only the state but the federal regulators will get involved, the treasury department is getting involved, from will be criminal investigations, the f.b.i. is investigating. there will probably be an investigation an delight -- deloitt's involvement. it's going to get big and fines will be huge. in the end it will end with fines at the least. >> susie: how big are the penalties going to be and will anybody end up in jail? >> the penalties will likely be at least had

i want to get straight to our show today because we have another day another record low for the u.s. treasury the ten year the two year book could this be the biggest bubble we have ever seen well here to talk about this is someone who was said he thinks as much famed investor dr marc father a publisher of the gloom and doom report and author of many books including the one you see here tomorrow is gold asia's age of discovery and he joins us from a gore a financial symposium in vancouver and dr father let me first say that it is a real pleasure to have you on the show today welcome back to capital account. of the pleasures of carly murray oh it really is all mine because i am dying to hear what you have to say about treasuries because you've said before and explaining why people are willing to buy u.s. treasuries that offer a negative real yield or even invest in interim instruments with a negative nominal yield that people think if i give my money to the u.s. government for example at least i know how much i'm losing if i give it to a fund manager i'm a loser thirty percent i'd rather lose

but the u.s. treasury is the largest gm stock hold i. >>> aaa says the average price of unleaded gas is now $3.75 a gallon. 16 cents higher than a year ago. prices, they are expected to be pushed even higher as isaac disrupts oil production in the gulf of mexico. >>> and samsung says it's not done fighting. they're vowing to go all the way in the supreme court after being ordered to pay more than $1 billion in damages to apple. a california jury ruled against samsung in a widely watched patent case, saying they copied technology from the iphone and ipad. >>> well, the expendables is proving to be dependable at the box office. "the expendables 2" was the weekend winner once again. it took in 13.5 million bucks. "the bourne legacy" second and "paranor man" was third. >> all three of the box office numbers together would not be nearly enough to buy the most expensive apartment in asia. >> an unidentified buyer is buying the 12th floor doctor 8 of a 12-story building. it almost makes manhattan look reasonable.

in a related move the u.s. treasury department has added iraq's islamic bank and china's bank to the list of organizations banned with with dealing with u.s. financial institutions. those banks have done business with financial institutions in iran and they are subject to sanctions for their suspected involvement in developing weapons of mass destruction. >>> beijing has reacted angrily demanding the united states withdraw the sanction against the chinese bank. foreign ministry pokes spokesperson said the u.s. used a domestic law to impose sanctions on a chinese financial institutions. he said this seriously violates international rules and pointed out his country is actively involved in the effort to resolve iran's nuclear issue and adding repeated sanctions against chinese banks will hurt relations between the china and u.s. development bank of japan polled 2200 large companies in june, about their plans to invest in plant and equipment. the survey shows investments for this fiscal year will rise 12% domestically comp

motors has banned candidates from its plants until after election day despite the fact that the u.s. treasury is its biggest shareholder. they want to be viewed as a success story. they are also focusing on selling its cars and trucks. we'll be right back. the car on the left was filled up with low detergent gasoline. the car on the right was filled up with bp gasoline with invigorate. which helps clean and protect its engine so it can get a few more miles per tank than the car on the left. go a little farther with bp gasoline with invigorate. now you have the power to lower gas prices with the bp visa with pump rewards. apply at choosebp.com >>> taking a look at the markets, one of the qiest trading day -- quietest trading days. the s&p 500 went down less than one point and the nasdaq closed up three points. >>> let's take a look at your consumer alert. get ready for another hike in our gassments the average price of regular gas stands at three three 75 -- $3.75, but tropical storm isaac could make it worse which means fewer barrels of oil. >>> lance armstrong may be banned from competing in

in a related move, the u.s. treasury department added iraq's islam's bank and china's bank to the list of organizations banned from dealing with u.s. financial institutions. u.s. officials say those banks have done business with financial institutions in iran. those iranian banks are subject to sanctions for the suspected involvement in development of weapons of mass destruction. u.s. and european sanctions have achieved their intended effect. a decline in exports of iranian oil and a decline in revenues. now leaders in tehran say they should break their dependence on such exports. supreme leader ayatollah said the reliance on the oil exports is a trap from the 1979 revolution. he urged the iranians to overcome it. mahmoud ahmadinejad said they should move to importing gasoline and other oil products. oil exports account for 70% of national revenue until last year. they have been cut in half by the u.s. and european sanctions. >>> the u.s. defense secretary says egypt's new president is his own man. leon panetta gave his

so, we are seeing some very low interest rates in the u.s. treasuries. consequently, they will move to another security. >> suzuki points out the last chance for the fed to take action could be the next meeting in september. the u.s. presidential election is scheduled in november. >> now u.s. economy is on the brink of recession. election day is 6th of november. consequently, this tight schedule. i think september is most likely to adoptew policy. >>>ities and towns across the u.s. are adding up, contributing to the slowdown. stockton, california, might provide some lessons. in june it became the largest american city to file for bankruptcy. nhk world's correspondent has the view from there. nhk world's regina bediako has the view from there. >> reporter: stockton enjoyed a construction boom a decade ago when san francisco commuters came to build homes. it was a suburban sprawl with the population of 300,000. >> order! >> it's a sad day in the city of stockton. none of us would ever have imagined that we would be sitting here talking about filing chapter

so we are seeing some very low interest rate in the u.s. treasuries. consequently they will move to another securities, probably it will be [ indiscernible ]. >> suzuki points out the last chance for the fed to take action could be september since the u.s. presidential election is scheduled in november. >> today, we had ism manufacturing number which records below 50. so now u.s. economy is on the brink of -- edge of recession, election day is 6 of november. and this tight schedule i think that september is the most likely adapt new policy. >> as for markets the dow, the s and p and the nasdaq all ended lower as the federal reserve kept policy and rates unchanged. ism manufacturing data put a drag on markets. >>> let's he how the exchanges are trading in japan. we are getting more data swing slowing growth. how are stocks here reacting? >> yes, indeed. and the fear is that the fed kept things unchanged and upcoming data could show slow growth. a lot of focus on the u.s. jobs numbers on friday. and all eyes on whether the fed has been correct to stand an

treasury bonds the treasury bonds are our national debt that's what we have to put a treasury bond is a promise from the u.s. government and whatever treasury it is around the world it's a promise from that government to tax its population in the future so they're they're promising us that they're going to extract taxes from us in the future that's what deficit spending does they sell this bond the federal reserve acquires it and they buy that bond they write a check here's a trillion bucks and they buy those bonds that checking account had there is no account there's no balance there they're writing a fraudulent counterfeit check to buy this thing and then so then the banks have they do this through open marc. now the banks have that one point five trillion dollars they're talking about in their accounts at the federal reserve and then the federal reserve is going to pay interest on it which we have to pay in future taxation and. that's very easy if it's causing all the money around mike i'm going to stop you for just one moment and if you hold that thought i can get to right after the break i know that th

industry sounds like i can slap and a broken record too meanwhile yesterday we found out from the u.s. treasury department the auto industry bailout will cost taxpayers three point four billion dollars more than previously thought treasury now believes this bailout will cost uncle sam just over twenty five billion bucks that's according to reuters and this is not including the costs associated with the they old and false promises tied down hundreds of billions of dollars of taxpayer bailouts doled out through tarp to financial institutions under false pretenses of what that cash could do and what it was supposed to do that's according to the man who was policing it touted of course the programs i'm talking about to the taxpayer with platitudes like this what's really innovative about this is partnering with private investors partnering with the f.d.i.c in the federal reserve to get all the resources we can to get those things off banks' balance sheets. i was referring to a particular program that i'm very excited to ask our guest about the man i was talking about critical of tarp the way it was

pus time the agency defaults on a payment -- first time the agency defaults on a payment to the u.s. treasury but it won't be the last. >>> in the face of billions of dollars in cuts, the defense department is hoping congress can head off its plans for sequestration. if the mandatory cuts take effect, they could add up to hundreds of thousands of jobs in our area and more than a million nationwide. >> the problems are determining how to deal with our deficit, how to address it, what to cut, what revenue to raise, are so serious and there's so much difference that we can, in fact, go through even something as bad as sequestration rather than find the solution. >> the only question now is whether senate democrats will work with us and follow us to remove these two giant threats that face the american people and frankly, our economy. >> speaker boehner says the other big threat right now is not extending tax cuts for small businesses. >>> the man accused of threatening people at his soon to be former employer was formally charged today. >> reporter: i'm scott broom at the courthouse in prince ge

as soda sells for 2 bucks, the u.s. treasury pays $3.40. amtrak is bringing in half of sales revenue of food and beverage expenses, supposed to be operating on a break even basis. >>> summer vacation is starting to wind down and back to school shopping. 17 states announced sales tax holidays. get a break on everything from computers to clothing. be careful before going on a shopping spree, each state is only for specific items. maryland's tax free shopping starts august 12th. saturday is the first chance for fans to get to see the 2012 squad in person. it's open to the public. gates open at 3:30. practice starts at 5:00. you can watch the first ravens preseason game here on abc 2. kickoff 7:30. join jamie and scott as we get ready for the ravens 2012 season with our special, taking flight. >>> just a day after we were alerted to a close call at reagan national airport in dc, passengers are dealing with another incident today. airport officials say people were taken off of a u.s. airways flight bound for new york after a engine warning light

in the 200 year history united states postal service is expected to default on a payment to the u.s. treasuryepartment that happens today. the service goes that money in health care prepayment. the government mandates that the service refund of the benefits to retirees. the postal service says that they are bracing for this. >> darya: the postal service is considered independent and they do not use tax payer dollars. >> darya: now here and they've looked at a video showing lt. john pike this with violence on the internet, you can see him right there walking up and down just a couple of feet away. the school placed him on administrative leave after this. the university will not say if he fired or if he quit. he is accused of using pepper spray that is not an authorized weapon according to the campus guidelines. the also said the spray with a higher pressure than what is normally carried. he and other officers were trying to clear out and occupied encampment. they forcibly remove the demonstrators after they looked at the spring. >> mark: we are learning about a possible takeover today. >> mark

the u.s. postal service is warning it may miss its next payment to the u.s. treasury. on thursday. the post office reported it lost $57 million per day in the last quarter. the nearly bankrupt agency lost $5.2 billion in that time. most of it due to expenses for future retiree health benefits. last week the post office defaulted on a payment to the treasury for the first time in its history. just continues to struggle there, terrell. >> post office is in trouble. ashley morrison here in new york. ashley, thank you so much. appreciate it. >>> we'll take a quick break on a friday. when we come back, a look at the latest picture from mars and a failure to lawn. nasa's experimental lander doesn't get far before meeting a fiery end. this is the cbs morning news. wardrobe. cute. then new activia breakfast blend. a great way to help start the day. mmm... creamy lowfat yogurt with grains in yummy breakfast flavors, like apple cinnamon. its hearty, with twice the protein of regular lowfat yogurt and helps regulate your digestive system. our morning routines are important, aren't they? new a

after this decided to do it had broken no laws at all industry and the u.s. treasury had refused to politically sweep the leaks because they could find no crime that is being commuted destroyed in prime minister julia gillard. continued to defy my son in the media do you think that the australian government would hand julian over to the united states if they had the part about have done so and so we you know this is a great concern given that the united states has been labeling its own citizens in this little terrorists. so with that mary could being within the top five countries executing their own citizens in the world and that actually is cooperating since now as you know a sieve and. from what he tonight. this is a great concern and so your son has been possibly fastly accused most likely fast the accused he's now been detained for over a year and a half in england and there appear to be secret grand jury against him in the united states and request for severe punishment against him what do you think would happen to julian if he were actually to the united states.

u.s. group that supports the free syrian army has received a waiver from the u.s. treasury department authorizing it to provide financial and logistical support to the armed rebels in syria it's called the syrian support group based in this building in downtown washington they just moved day and it's the building it's just been renovated so the money will be channeled to the syrian rebels through this route how much money and power. it will be distributed those questions remain unanswered we didn't get the chance to ask the group about details of this newly opened support channel because they never returned our calls i want to go back to the senate hearing that i attended the experts invited to testify were asked about what the direct u.s. interest is in the fall of saddam this would be a decisive blow for the islamic republic of iran i can't emphasize that enough and i think that is in our interests to roll back iranian influence where we find it is not a more effective i think to put the arena and threat in some perspective and reduce its pressure on israel to flip syria

the postal service also warned it will miss another payment due to the u.s. treasury, just one week after its first-ever default on a payment for future retiree health benefits. the mail agency argues banking huge payments for those future benefits which is mandated by congress is mainly what's crippling the service. more than the decline in first-class mail. >>> the suspect in last month's deadly colorado movie theater shooting was back in court yesterday for a motion to release steel documents. but the real development came when lawyers for james holmes described him in court as mentally ill. analysts say that could provide some insight into how the defense plans to proceed. nbc's jay gray reports from centennial, colorado. >> reporter: it's been two weeks since this initial televised court appearance, cameras were barred from the proceedings, but james holmes had the same look and same disengaged restless demeanor as lawyers representing at least 20 news organizations including nbc news asked chief district judge william sylvester to unseal key court documents and

the u.s. postal service. for the first time in more than two centuries, they could default on a payment. they owe 5.5 billion dollars to the u.s. treasury department for retiree benefits. there's no legal penalty for missing the payment. it was originally due last year but congress moved the deadline to now. this are plans to cut the cost by cutting office hours. >>> one officer is is on leave after being investigated for a shooting death of a man in north baltimore. police were called to a family home at the 1400 block of weldon place. the police spokesman says the officer strugel with the man inside and he called for backup. when another office are arrived, the two were fighting on ground and a neighbor says the scene was chaotic. >> the kid actually said they were on the front porch and my son was scared because he is scared of fireworks and she said it's probably fireworks and they probably heard it but just didn't know what it was. >> the responding officer fired one shot killing the suspect. names of both the suspect and the officer have yet to be released. >>> a 12-year-old boy is the only survivor in murder-suicide at home in ca

actually really need it and an addition anthony i mean nearly all the economic institutions from the u.s. treasury to the federal reserve and even the i.m.f. have backed principal reduction. i guess you know what's the discrepancy here. i mean the taxpayers don't have to keep bailing out fannie mae and freddie mac. i think i think that's the first point is we've bailed out a lot of institutions that shouldn't have to get it that doesn't mean we need to keep it with fannie mae and freddie mac. but more to the point with principle reductions they work in some cases that's why some people back them but look at the results of the program that we're talking about the home affordable modification program champ fifty percent minimum of people who have gone into that program i wound up redefault thing on their mortgage the point of this point of modification is to in theory help families that would otherwise be able to make payments on their homes and they they just got behind only to lower the payments but when we've done that through this program already at least half of them have read the bulk of it so

elsewhere, the u.s. treasury department is under fire and fighting to maintain public trust after handing out billions of dollars to criminals. according to a startling government audit, the internal revenue service may have delivered more than $5 billion in 2011 refund checks to identity thieves. and federal investigators say $21 billion more could make its way into scammers' pockets over the next five years. the audit did find that the irs tracked down 940,000 fraudulent tax returns from 2011, including one address in michigan that was used to file more than 2,000 separate claims, but an estimated 1.5 million phony claims went under the radar. >>> well, kofi annan, the united nations peace envoy to syria, has resigned his post. annan blasted the syrian government for not cooperating on the u.n.-sponsor ed cease-fie and peace plan to end the civil war. he says it's cleared that president bashar al assad must leave office and also blamed the syrian rebels' increased militarization and a divided u.n. security coun

decided that to him had broken no rules at all in this trial yet and the u.s. treasury had refused to blacklist wiki leaks because they could find a crime that is being committed these stunning prime minister julia gillard. continued to define muskaan in the media do you think that the australian government would hand julian over to the united states if they had the possibility of doing so. this is a great concern given that the united states has been libeling its own citizens and is low level terrorists. with the americans being within the top five countries executing their own citizens in the world and that actually is colliding synchronizing i didn't. from one here to ninety eight here. what do you think would happen to julian if he were actually added to the united states well i had to assist ten years emotional book was lucky to have an impact from what they're doing to one of their own soldiers bradley manning. which the un report on torture says is cruel and inhumane treatment and very. i was on a panel. cambric capital city d.c. and one of the other speakers we.