single central banking government most seem to be following the us federal reserve and the bank of england and the bank of japan and money printing but they do recognize that this seems to be the only response for some of these highly indebted nations so in the u.s. you have congress people now pressing for their pressing harder now to pass legislation to punish currency manipulators which is very bizarre considering that they're the chief for and in this global currency war they're trying to outlaw anybody else possibly doing it in particular china but the us has the same their second largest deficit is with trading deficit is with japan so to date japan has been given a pass on this monetary policy which involves massive asset purchases by the bank of japan and a doubling of the money supply while that almost necessarily impacts the country's exchange rate as with anything else increasing the supply of yen lowers its price as expressed in terms of other currencies it is also taking place in an environment where every other major central bank is doing the same right well the japanese yen

is on a verge of the full economic crisis according to the us federal reserve bank of new york the number of students who are ninety days or more delinquent on their student loans has risen to eleven point seven percent this year that's up from five point five percent in two thousand and eleven now if we include the number of people who have chosen to defer their payments that number actually rises to thirty percent of college attendees meanwhile a new forecast from the congressional budget office says that the federal government will profit fifty one billion dollars off of student loans today the average student debt is about twenty six thousand six hundred dollars over the course of a college experience so the question becomes is college worth the cost when one americans hear success stories like that of mark zuckerberg or walt disney or steve jobs or bill gates they see that the opportunity for success without a college degree is available however the dream of becoming a multi-millionaire from invention is exceptionally rare when you compare the lifetime wage differences of people with

year highs investors are betting that central bankers including the bank of england and the us federal reserve will continue their attempts to boost the global economy by printing money and keeping interest rates at historic lows the buoyant stock market may take some of the pressure off george osborne as he tries to persuade voters that his emphasis on public spending cuts to reestablish confidence in the economy is working here's the new good analogy it's a game of monopoly and as players go bankrupt the amount of money that you get free when you pass go is increasing so instead of just getting two hundred dollars and if you're getting two hundred billion dollars if you're the city of london but all the while people are going bankrupt on the side because they can't afford the rent or the rent the red seeking that's going on within monopoly you have a bad economy and monopolists and oleg up a list and kleptocracy. see as tz and you don't have any real underlying growth all those pieces on the board for social services social security health care those types of things are all going out of busi

morgan you continued to do this exact same bet using the house money using our money using the the federal reserve the central bank's money in seoul they made a profit that's the cube's difference between the insiders who are raping the system and everybody else. i do stay with us for the cars report here on r t it's not that far off this morning for now though a plane that went missing almost a year ago with more than a dozen people on board has finally been found in a bog in the small firefighting aircraft came down in mysterious circumstances just eight kilometers from where it took off more on this. and you farm and now. it was a disaster that looked like it would never be solved this was the devastating thing that three men stumbled across this week in the russian urals the remains of a plane that had gone missing nearly a year ago with the loss of thirteen lives normally the biplane was used to put out wildfires but on the night of genius level last year it's believed the pilot took it for a fatal joyride with twelve friends and relatives while you were he was one of three papal who made the

us about this. well at the time i was writing it at the suggestion that the federal reserve was going to stop its permanent open market operation to buy eighty five billion dollars worth of bonds and bills and securities and trash another paper and i don't think any of us believe that the federal reserve can stop buying that stuff because if they do the american economy such as it is will probably collapse you say that the fed is undermining the meaning and value of money itself which is the most dangerous game of all elaborate well the interventions in manipulations have impeded the main functions of markets in particular the function of price discovery which is the way that markets establish the value of everything you know whether it's a stock or a bond or any kind of investment and. we now have markets that don't have that function which is their main function and so it you know it makes you wonder whether we even have real markets at all what about this new way of doing business in america and around the world where the idea of free market capitalism has been shunned the idea of crisis government has

morgan you continued to do this exact same bet using the house money using our money using the the federal reserve the social banks money it's all they made a profit that's the acute difference between the insiders who are raping the system and everybody else. into biase was also we go starting with a friend of one of the boston marathon bombing suspects who's accused of lying to be f.b.i. has now been released on bail one thousand year old rebel of philip orse will have to wear a special electronic tracking tag and be confined to his home u.s. authorities accuse him and two other teenagers of trying to hinder the investigation into the bombings that killed three. a u.s. official has said north korea has removed two medium range missiles from its launch pads easing tensions on the peninsula pyongyang has repeatedly been threatening to hit south korea japan and america's regional bases its warnings that come after a new round of washington backed sanctions imposed on north korea by the united nations. police in the united states have found three women who disappeared around ten years ago after one

morgan you continued to do this exact same bet using the house money using our money using the the federal reserve the central bank's money until they made a profit that's the cute difference between the insiders who are raping the system and everybody else well we can point to two real world examples of this long term capital management that's when the fed first got involved in manipulating global interest rates in order to bail out one person they went bust on martin gal betting technique of doubling down on the russian ruble they lost the bet over and over and over until they couldn't sustain the bet anymore the same thing happened with m.f. global junk or assigned bet on the euro bonds and he doubled down doubled down doubled down eventually at the bet went right but too late for him now but those are when the odds are it's not totally reject that their odds are that eventually you might win here in the markets now there is no chance of you winning the odds are that you will. whose on every single thing just like with this guy with the banana man he was never going to win there is he could hav

us about this. well at the time i was writing it at the suggestion that the federal reserve was going to stop its permanent open market operations by eighty five billion dollars worth of bonds and bills and securities and trash and other paper and i don't think any of us believe that the federal reserve can stop buying their that stuff because if they do the american economy such as it is will probably collapse the say that the fed is undermining the meaning and value of money itself which is the most dangerous game of all elaborate welby interventions in manipulations have impeded the main functions of markets in particular the function of price discovery which is the way that markets establish the value of everything you know whether it's a stock or a bond or any kind of investment and. we now have markets that that don't have that function which is their main function and so it you know it makes you wonder whether we even have real markets at all what about this new way of doing business in america and around the world where the idea of free market capitalism has been shunned the idea of crisis governme

of bonds and bills and securities and trash and other paper and i don't think any of us believe that the federal reserve can stop buying that stuff because if they do the american economy such as it is will probably collapse you say that the fed is undermining the meaning and value of money itself which is the most dangerous game of all elaborate welby interventions in manipulations have impeded the main functions of markets in particular the function of price discovery which is the way that markets establish the value of everything you know whether it's a stock or a bond or any kind of investment and. we now have markets that don't have that function which is their main function and so it you know it makes you wonder whether we even have real markets at all what about this new way of doing business in america and around the world where the idea of free market capitalism has been shunned the idea of crisis government has been abandoned free market capitalism is dead and instead you have central planning so who really won the cold war james howard kunstler if america has resorting to central planning com

us. new statistics from the federal reserve show that americans are doing a lot less borrowing these days. ha ha hamt p ton pearson has more on what that means. >> reporter: households lightened their deficits by $110 billion. debt payments increased and delinquency rates fell across the board on everything from home mortgages, home equity loans and credit cards. people like bradford elder who has been on a self-prescribed diet. >> as the economy improves people are much more cognizant of the amount of debt they're taking on. what kind of debt is it? risky debt, revolving credit card debt. i think the awareness of the problem has increased. >> reporter: $986 billion in all-time record on student debt. among those paying the proo is is kendra clayton. she is working full time attending law school at night with a debt burden to match. >> that's not something i look forward to especially being a law student, timewanto think very smartly before you go back to school. >> reporter: total debt topped $11.2 trillion in the first quarter of this year, down from the $12.7 trillion peak in the third

federal reserve. thanks so much for joining us. everybody was watching and listening to ben bernanke's testimony before congress this week and separately, the federal reserve minutes that were released this week. the minutes were, you know, the notes from the last meeting seemed to say that the tapering of the fed's bond buying program could begin as early as june, but then bernanke said it all depends on the data. what do you think? >> i doubt that it will start in june. remember that the minutes reflect the debate that's going on and it's easy for the participants in that debate to forget that there's going to be accounting come three weeks later and also the word participants includes, i assume, non-voters as well as voters. i think when it comes right down to it mr. bernanke will have all of the governors with him and most of the presidents. >> when would you expect the federal reserve to slow up on the stimulus? >> well, probably around september. >> september of this year? >> yeah. i don't think it will be dramatic. i think th

a lot of companies are using their low money, federal reserve money to bottom by other companies.d down side is that mr. was me i was start tapering off the debt. by the time that they pull or pay off the dead i think the markets will be good. >> we would check back with rob at 9:15 a.m. with winners and losers. >> the time is 6:47 a.m.. >> we are going to set records. here is a live look outside and we do have patchy low fog cover. most of us are waiting of to sunshine. here is a look at the current numbers. most of us are waking up to 50s. i do one follow these numbers into the afternoon because today will be a scorcher. oakland will break j. ric a record. low '90s for places like any hot. we will be in the upper 70's for richmond. oakland will have a high of 83 degrees. 75 degrees for downtown san francisco. this many heat wave is short-lived because we are tracking system that will infiltrate the south perry ed we will not sit in iran in the bay area however, there will be at increase. this will regulate the temperatures and keep them on the cooler side. the numbers will take

have the tools to rein in all this extra money but the question is is he going to use him at the right time the federal reserve can still be there you know that's that's one of the other points he's probably going to be out next january and we're going to have somebody new coming in and maybe and he said he's not even to go to jackson hole this year so maybe that's a sign he's just going to you know leave the sinking ship before it sinks so. well you know i'm talking about the fed there's another issue going on there was the independent foreclosure and when they're at it they're out again they wrote. yes i think this was after just a few weeks ago they had written checks that bounced and now they're very they're writing checks that are for the wrong amount and these checks are so small to begin with i mean let's back up here and take a look at the situation that exactly that for those who you know are familiar with this process and are going to part closure of you you know reviewed all of everyone that was foreclosed on possibly a lot were at a few banks there was a side around you were basically nine point th

us higher. >> today's federal reserve minutes showing no consensus among federal reserve officials on when toslowdown of the stimulus. with some fmoc members suggesting tapering could start as early as next month. that's probably what caused the market sell-off. that seemingly was not insync with fed chief ben bernanke, telling congress this morning that the economy still needs stimulus to help the recovery and tapering might begin in a few months. joining us to make sense of it all, exclusively, is renowned fed critic, jim grant of grant's interest rate observer. jim, good to have you on the program, as always. >> did you hear anything new today from bernanke and company? >> economists proverbally have more than two hands and the fed seems to have six or eight. many, many changes of opinion, airing of potentials and possibilities, i don't think there's much new. >> but, i mean, that scares me that there's so much division in the fed. >> you know what else is scary, is that we seem to be so fed-centric. since when is a central bank the principal fundamental in the financial markets or in the

federal reserve today. >> right. >> rose: go ahead. >> well, the federal reserve is obviously doing things that are beyond imagination. >> rose: yeah. >> innocent guys like i used to be involved in it. the they are very frustrated with the performance and they want to boost the economy. now one thing i was talking about today, i understand all that. but don't lose sight of your major mission has to be price stability. >> rose: right. >> and if you lose that. >> rose: controlling inflation is another way of expressing that. >> exactly. controlling inflation. not permitting inflation to get started again. if you fail in that project, are you going to fail in other projects. >> rose: can't you do both at the same time. can't you monitor inflation and at the same time take actions that will stimulate the economy and therefore stimulate the economy, will you reduce unemployment, therefore you have done a good deed. >> that is fine. if you go in there and you're fully credible and you have a good record on price stability and attacking inflation, then you have got 9 freedom of action to liberalize policy without scaring everybody that you are going to have inflation.

us details on that. >> it's exactly what the federal reserve wanted to achieve, putting the money back into the market through qes and low interest rates. it's clear from the fed's lending surveys, 28% of banks sayingitative cut the cost of money to corporate's 11% jump in lending to corporates and nonfinancial companies over the first quarter. so people are taking the money. modest, though, when it comes to residential property. only a 1.4% increase. it does appear people are using the lower rates to refund, which i guess las got to be good news when it comes to everybody's pocketbook. >> it's cheap money. borrow it now t. rates will go up at some point. >>> as always, we want to know why you are awake. shoot us an e-mail or tweet me at bshactman. shill i still a lot of show to come. another nail-biter in the nba. did kevin durant come through in the clutch or did an unsuj sung peb come through for the fem miss grizzlies. he's being called a hero, could he be in store for an endorsement, remember what he was eating. we'll be right back . >>> david berk wits pleaded gltd to all six of the murders that

we come back, former fed governor randall kroszner is back with us with our steve liesman on just what is going on inside the federal reserve. >>> and later, one of the fed's biggest critics is with us. jim grant joins me exclusively to lay out his case as to why the central bank is doing harm, certain more harm than good to this economy. back in a moment. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1

>> right, and for us, you know, it's really the derivative of the bitcoins. the treasury department and the federal reservethe currency, but there are people out there, you know, talking about trading the actual derivative, whether or not it's the future, a swap, or an option, and those are things that are squarely within our legal jurisdiction to do. the question is whether or not we want to do it, and, you know, i'm leaning in favor, but i'm not there 100% yet. i mean, this is a crypt currency, a shadow currency out there. people use it to purchase real things, it's not no notary public my money. it's a serious thing, it's not bizarre or a one-off. we have to take a serious look and make a determination whether or not there's any federal interest here. cheryl: well, i mean, john don hoe from e bay talked about bitcoin, and it's got the attention, and at the same time, it's compared to a derivative like gold. is there a case there that bitcoin could be under the regulation of cftc, increasing power since dodd-frank. >> yeah, well, absolutely, we can. it's a good point. like other currencies, this is somet

us about that. what is the plan inside the federal reserve? i think the thing to think about is when the fed turned off its qe programs before, it used in on off switch. they just stop doing it, a sickly. they are slowly dialing it down. that is the message that they have been trying to get out. frankly, they have been struggling to do it for the last couple months. the market has a very hard time reading. what i try to do with the story this weekend was connect the dots and put it together. connell: do that here, if you can't, to the best of your ability. that is a good analogy. how does the timing works, to the best of your knowledge? >> the $85 billion question. the honest answer is we do not know and they do not know. i will tell you this, every data point that we get that is stronger increases the probability that it will come forward. we had good retail sales numbers today. the probability wind up. connell: okay. how aggressive? it depends on how strong the economy is? >> they are a little reluctant to move aggressively. they ended up fe

>>ed on clients that use hits terminals. the federal reserveasury department are examining whether there could have been leaks of confidential information. with more on this story liz macdonald in emac's bottom line. liz, who else i guess was. >>ed on allegedly. >> ashley and trace good to be with you. this story is getting bigger. "the financial times" is reporting that the european central bank and germany's bundesbank are worried that they were. >>ed on as well. meaning "bloomberg news" reporters used the bloomberg terminals to access information basically that was looked at by officials over there. so i will tell you something, this story i getting broader. so the federal reserve is already telling fox business's susan garrity in our d.c. bureau it is looking into this issue. we've got an apology too from "bloomberg news" editor matt winkler. he is essentially saying no specific securities were looked at, no assets or trading portfolios but the recent complaints relate to practices about as old as "bloomberg news" and reporters should not h

second because the federal reserve conducts stress tests simultaneously on the major institutions that its supervisors and the results can be usedcomparative analysis and to judge the collective susceptibility of institutions to certain types of shocks. indeed, comparative reviews of large, financial institutions have become an increasingly important part of the federal reserve's supervisory tool kit more generally. third, the disclosure of stress test results which increased investor confidence during the crisis can also strengthen market discipline in normal times. the stress tests does provide critical information about key financial institutions while also forcing these firms to improve their ability to measure and to manage their risk exposures. >> stress testing techniques can also be used in more focused assessments to specific risks not captured in the main scenario. such as liquidity risk or interest rate risk. my comprehensive stress test is an important element of our supervision of sifis. for example, supervisors are collecting detailed data on liquid they helped them compare firm susceptibility and to evaluate firm

joining us now, former federal reserve senior adviser and economists now at ati.oining yes. what did you make of the chairman's comments? the prepared statement, but ended down a little more interesting during the q&a. >> it did. i think this chairman is trying to signal that the fed thinks that the tapering of that qe program is not too far down the road. they have not quite seen enough improvement in the labour marke yet to pull the trigger. he is trying to lay the groundwork for what probably will happen this fall to make sure that the market reaction i not too large and that the markets are well prepared for what they're going to do the. ashley: if we get better than expected job reports of a the next couple of months, that could push the timetable of the market did not? >> it could. the next meeting is and made june, and after that in august and after that in september. so i think it is very unlikely that they will be tapering by june because they will only get a chance to see on report between now and then, an that probably won't be evident, even if it is a

true it's merely an asset swap so what the federal reserve is doing is creating money on its books it's a basically an overdraft on its own account and then it uses that money to buy assets off the books of the banks so right now it has a program where it's generating eighty five billion dollars a month in quantitative easing so half of it's going to purchase government securities and the other half is going to purchase mortgage backed securities from the banks before the banks had those assets and now they have. dollars in their reserve accounts so that there is. the. asset side of that bank's books haven't changed it's just it's just been turned into dollars or liquefied so if you look at a chart the only way that this money is going to flood the money supply and devalue the currency is if people take out loans and that the presumption that if the reserves go up then. the banks can create more loans but they haven't and actually the reserves have nothing to do with the loans they create really so if you look at the chart the amount of lending that's going on right now is the same as in two thousand and eight it hasn't gone up and that means the

love ben bernanke, because they see this being controlled almost exclusively by federal reserve policy. history tells us that at some point, the party is going to be over. when does that party come? it's a gamble right now. i just think that when you look at this market, it's pricing in economic growth that the fundamentals just don't suggest. larry made reference to the jobless claims number today. we weren't close to here, just slightly above here back in january. we spiked right back up. if you look at the internals of the jobs numbers, not good. this market, do you want to step in front o of it, it's a suicide mission, but to say this is a real fundamental rally, i'm not convinced. >> i want to say, i think the role of the federal reserve is overrated. because, yes, they've put a lot of refers in, but the money supply is not growing that rapidly. and velocity is falling. >> okay, larry -- >> and people have not -- let me just finish this point. people have not used that money in circulation. you can make an argument the fed is tighter than you think. you know what's driven this market for four years