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tv   Interviews Culture Art Documentaries and Sports  RT  March 18, 2014 11:00am-2:00pm EDT

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russian crimea sign or any indication treaty after president putin declares the referendum on the peninsula to have been fully in line with international law also . but. everything has its limits and in the case of ukraine a western partners have crossed the red line. going to kremlin speech the president slams the west for supporting the post co government in kiev and refusing to recognize the crimea is right to self-determination plus. joining me is in for another big celebration often news that the peninsula will become part of russia we're reporting from the peninsula scotto off since it all but.
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what you are to international coming to live from moscow where it's seven pm and russia in crimea have sealed agreement on reunification the story treaty was signed by the crimean government and the russian president after he addressed lawmakers in the kremlin are to corpus going off followed by a report in speech. under russian law the agreement now has to be approved by the constitutional court it has to be ratified by the parliament and the constitution itself would have to be amended if a new entity was to join the federation in statement president putin called on the lawmakers to complete all these procedures now also he said that the main driving force behind all this is the overwhelming desire seeing on both sides for crimea to join russia especially meaning the referendum which took place earlier in the crimea which called truly a historic event in which over ninety six percent of the local population voted for
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the crimea to join russia he also said that the current moves are not aimed at arming ukrainians even sympathizers to goals. peacefully in the poultice said he understood why they were feeling this need for political change but change but mr putin said unfortunately the violent we came to power and the fact that many of them are. nationalist makes it impossible not only for moscow to recognize them as the. authorities of ukraine but also even to negotiate with them. but also who carried out the coup in ukraine you nazis nationalists and the anti semites and they still do find the country's political agenda. it's clear that there is no legitimate executive power in ukraine right now there is no one to negotiate with many of the government departments have been used by self-proclaimed
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officials who have no means of running the country the president also compare the situation to course of us saying that the when its independence was recognized by most western countries that created a precedent and he says the way the same countries have been dealing with the crimea is not only based on double standards but is simply cynical. what do we hear from our colleagues in the west and in europe they say that we are violating international law but i'm glad that their lease remember that international law exists better late than never the crime means used course it was a precedent and our western partners set this precedent themselves with their own actions and in a situation which is fully and now look as to the situation in crimea they recognize kosovo and they prove that you do not actually need permission from the central government to declare your territory a sovereign state their support and also commented on accusations that russia
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committed military intervention to the crimea saying he doesn't remember an example in history where military intervention would be possible without a single fired shot unlike it happened in yugoslavia iraq afghanistan other examples as well but. we have every reason to believe that the old policy of containing russia is still in place because we take an independent position but everything has its limits and in the case of ukraine our western partners have crossed the red line because they were rude nonprofessional and they have acted irresponsibly our western partners prefer to use the principle that might is right they believe that they are always in the right that they are unique entrusted by god to decide the fate of other nations they apply pressure on other countries to get the resolutions that they need and if that fails they simp. bypass the security council that was the case in one thousand nine hundred nine in yugoslavia as it was in afghanistan and iraq and then they distorted the un resolution in libya they did
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not merely enforce the no fly zone they bombed that country of course and also spoke about self stressing how important it is to protect all of the nationalities living there including ukrainians russians afaik dot ours the president says that may have three official languages which would include russian ukrainian and thought are. well the reason for cation treaty with russia has been met with scenes of jubilation in crimea are just like here chefs follow the mood on the peninsula it's q huge celebration here in simferopol we obviously are waiting for the party to begin now that people have been literally celebrating for the past several days ever since. the decision did not come yet but now it's official and obviously we're in for a big party with this live pictures coming from the city of sevastopol in the south
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of the peninsula where people were listening to the address of president put into the federation and they were already pretty much jubilant if you look at the figures of this referendum which cost on a sunday. one point five million people who are eligible to vote little more than one point three million actually voted and one point two million of them voted to be part of russia a little more than thirty thousand people voting against it in fact it's been very hard to find any of those in here in simferopol and even in other parts of crimea who are against joining russia who stood for being part of ukrainian territory the vast majority of the people have been supporting this idea and for them it's something like we are going home sentiment they think this is historical justice being set right so we'll be asleep we're waiting for a big party and sinful and probably a concert in the central square of the city. all western nations have condemned moscow's decision on crimea right away calling it
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a land grab washington as well as major e.u. powerhouses germany and france and they refuse to accept the move let's go live now to go for this and more so polly was been sad to bring us more. well the tough rhetoric is coming in thick and fast the european powerhouses have been pretty unequivocal in denouncing and rejecting the referendum in crimea as well as the incorporation of crimea into russia the u.k. prime minister david cameron has said that there will be serious consequences the u.s. vice president joe biden has demanded harsh sanctions against russia in response to the latest developments and william hague who's just been speaking from parliament here in westminster has said that this will further isolate russia he's announced that britain has ceased military cooperation with russia he's also suggested that the g. seven nations from now on will be meeting as a group of g seven without russia included now the response of course in recent
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days and weeks was to be expected we can take a listen to us and e.u. leaders warning russia about the consequences if it continues to support the referendum in crimea. unfortunately russia's leaders have responded with a brazen brazen military curfew there will be additional and far reaching consequences i have signed a new executive order that expands the scope of our sanctions measures against twenty one individuals responsible to figures in the future. threat. direct. choice. now in terms of the response to the sanctions that we have now the response from within europe has been quite split yes there are those calling for tougher measures
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but at the same time from within the e.u. there are those who are wary of imposing tougher trade sanctions against russia they say that yes they would be detrimental to russia but taking into consideration the economic situation in europe at the moment they could be very detrimental to the e.u. as well in terms of the political response it's not just limited to the u.s. and the e.u. yes we've just had a class of indignant comments streaming from the u.s. and the e.u. and i'm sure there's going to be more to come but that all of that were political responses to what's happened across the international community that we can take a listen to all of the voices in the international community responding to the rights of the crimean people to decide their future. it's impossible to continue playing the role of going to have local security when they're proved to depends on which country you're dealing with in the case of crimea it turns out the
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referendum was a bad thing when the full. determination this doesn't stand up to analysis. or probably thank you so much for this update probably boyko there former israeli prime minister malcolm fraser believes that the u.s. considers itself to be above international law and detailing of the ukraine crisis is a case in point you spoke to him and worlds apart everybody. is. that the naval facilities the military facilities in crimea were absolutely essential to russia and that russia would have to take action to secure and safe guide those particular strategic interests. but having arrived at this point how do we move on and moving on does not consist of encouraging one of the
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major parties in the ukraine hosted by president obama just a day or two ago in the white house that party could have it all its own way from the very beginning the united states is regarded to self as a exceptional nation as a nation that better than all others that has only ever gone to war to fight for the freedom of other people to think well that's not really true if you look at american history america feels it can break into the national role that what america does is right rules are made for other people people to stand up and say those figures and you'll have a lot of people in the west. agree with president obama simply because he says it was the full interview with malcolm fraser on thursday in exxon point us worlds apart and we'll be back with more in ukraine after this break.
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right on the scene. first for you and i think the church. reformers twitter. and instagram.
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should be in the know. on. quite often countries rich in natural resources are the poorest africans the colony is a colony of the big corporations it's a colony of someone's home leaders who are under the thumbs of the big corporations so they have to beg from the world bank's development of social programs goes to pay back debts country is drowning under the amount of debt that they had and so every year they would borrow money. and they would use that same amount of money to pay back o. debts. and all that money really. the wages of debt.
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welcome back you're watching r.t. international now the post uprising government in kiev has found little support in eastern ukraine where mannie are calling for a referendum on their future status reports. while the mood here in the eastern ukrainian city of donetsk is very different from the mood in crimea it's not that people don't want to see these same kind of celebrations it's not that they don't want to be reunited with russia it's just at this almost and east they are increasingly concerned by what they say is an extremist government in kiev with precious meetings with me and nazi meetings they're also concerned that not only are they not allowed to protest but that they voices off to same to all being cracked down if this so heavily is a crowd gathering in the local and then in a square when talking to people there they say that they believe and hope at least that crimea has it an important precedent that they too shift in eastern ukraine can hold their own with a random and decide for themselves whether or not they want to be part of russia.
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now despite eastern ukraine is open frustration with kids refusal to consider their interests the interim leadership is showing no signs of compromise on the contrary authorities are gearing up for radical measures to crush the protest marches right across the reports on the new laws being lined up. yes they were there so they've made it to the top and now the western world gets to see what kind of changes the people they've been supports and are pushing for. the introduced the death penalty for traitors spies and deserve. more than the communist party of ukraine along with the party of regions whose leaders aided the russian occupiers these are just the random thoughts by a person of the streets this is a politician submitting a draft law to make this a reality so who is this man who's making such bold statements meets. the focus of attention that's him intimidating a local m.p.
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recently forcing him to take down the russian flag and resign or face the consequences. ok maybe he was in a bad mood that day let's give him the benefit of the doubt. a lot you see oh there he goes again this wasn't see thousand and twelve here you can see him trying to get ukrainian products back on the market by storm and then through a press conference trying to force feed russia's chief doctor some cheese so that he revokes a temporary ban and here he is and once again the words seem to fail him as he resorts to gimmicks and aggression when he hears something he doesn't like it all ok let's go back to what he does like server diplomatic relations with russia than russian t.v. broadcasts and press distribution has to join nato and get the maximum amount to weapons so basically he wants to get rid of everyone who disagrees with him and get
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the west to support his warmongering it would be interesting to see if national actually does something the west doesn't like for example. terminate the transit of russian gas why ukraine to europe if moscow disgraced a twelve fold. why not get the european union to subsidize the ukrainian economy through rice and gas can they achieve twelve fold increases i very much doubt it but at the same time it demonstrates both the desperation in ukraine and also actually the inability of the european union to come up with the funding that they promised when the my down protests were in full swing but perhaps what's most troubling is that lashkar is not alone and surprised that it sucks on the chain of said mass demonstrations will become sort of crimes against the states while it appears that this is a my way or the highway approach to politics people and indeed the entire country
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and in the case of the west at the moment ever manes eyes white shots. during a coster of our artsy the flood of illegal weaponry that filled the ranks of the ukrainian opposition during the uprising is coming back to haunt the new government the interim prime minister is now calling on all sides to lay down their arms but dimitri arash leader of the ultra nationalist right sector party sees things differently you can't really defend the motherland with old primitive weapons so the people who got hold of arms during the revolution are own likely to give them up just like god. rights act there was a radical movement behind some of the most brutal clashes during the coup in kiev and it has several thousand fires as leader of the uprising hardcore faction garish has significant authority among older nationalists and is now hoping to rise to the presidency and there is no data on how much weaponry the group has but judging by its own claims there is more than enough to go around. crimea referendum left
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little doubt as to where the local population sees its future but that show of democratic wasn't enough for some media outlets to stop looking for a con of controversies even fictional once on a cd pulls apart the facts. as accusations escalate over the crimean referendum for independence we continue to disseminate stories statements and allegations that are worth being broken down for clarity purposes. first off the crimean referendum took place sunday over the weekend we saw attempts trickling in to discredit the legitimacy of the vote reports about armed men allegedly kidnapping a priest alleged seizures of a gas depot taking place as well as accusations on russian troops trying to enter a territory close to crimea keep in mind none of these allegations were ever officially complained or supported with actual facts on the ground. the u.s.
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supporting the interim government in ukraine has repeatedly claimed that it sees the crimean referendum as illegal seeing it as a violation of ukraine's constitution waving russia for it ever taking place as well as all of the events in raveling in ukraine for that matter there is a constitutional process where there's this sort of the election. forward on the back court. differently to. the caribbean region that it's not so. with. the barrel or the well an overwhelming majority of people living in crimea came out to support a referendum for the autonomy is for public to leave ukraine over sixty percent of its population being russian u.s. officials echoed naturally by the western mainstream media have portrayed the vote as one that took place essentially a gun point from russia. and this images of celebration and cheers not making headlines in the west no surprises here and
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happiness surrounding the results of the referendum doesn't fit into well with the west narrative. the media has been abuzz with images of alleged russian tanks alleged russian forces alleged russian activity on the border with ukraine russia are more than enough times to. to explain that any actual military action would only be regarded as a very last resort despite these statements barack obama has dubbed russia's participation surrounding ukraine as a threat to u.s. national security this is been quite a curious way to describe u.s. concerns it's not like russia is next door to the us exactly but again it's not so surprising every time it seems the u.s. gets involved in a crisis anywhere in the world it's either because of its own national security or to protect human rights whether those reasons are based on facts is a whole other story. in the meantime there's a u.s. navy destroyer in the black sea next ukrainian territory police there as a result of the cranium crisis this for some reason not in violation of anything
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could it be because the vessel in question is american go figure and if they are to washington d.c. . which are the international well these are the pictures from the heart of moscow were a huge crowd is celebrating their country's reunification with crimea there's now over well over one hundred thousand people on red square just outside the kremlin of course where the treaty was signed just hours ago president vladimir putin took to the stage just now and congratulated the people of crimea other street celebrations are breaking out across russia as well and more than eighty cities are expected to take part in nationwide rallies in the far east of the country words already nighttime crowds show their support waving russian flags and chanting slogans against the far right forces that now hold such influence in ukraine emotions have been drawing high since the treaty was signed in the siberian city of
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cross and novice to be risk hundreds gather to their city squares to welcome crimea back into the fold recent polls show that over ninety percent of russians are in favor of reunification. well earlier i spoke with russian balkans commentator marcus padley dopplers to get his take on the latest developments and he drew a parallel with the reunification of east and west germany the crimea has reunify its we're from russia no different to how east and west germany reunify it's in nineteen ninety. russia does have an interest in the crimea as it has an interest from the rest of the former soviet union there are millions of ethnic russians in the former soviet union there are millions of people whose mother tongue language is russian and of course the crimea is a prime example but also. the ukraine and particular crimea
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was always a red line for for russia and the west led by washington it crossed that red line russia and crimea have sealed an agreement on reunification the historic treaty was signed by the crimean government and the russian president after he addressed lawmakers in the kremlin it came into force the moment it was signed but is still subject to formal confirmation from the constitutional court and the russian parliament addressing the lawmakers live report and said the referendum in crimea which showed overwhelming support for rejoining russia to place and full accordance with international law and more news on crimea and ukraine in just over half an hour before the window is breaking to set but having martin you're watching one hundred national.
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i don't want to beat a dead horse i try to address these opinion pieces but you created melt out hits really close to my heart and affects people i know when i see obama gleefully talking to self elected new ukrainian prime minister just burns the inside of my brain he's throwing hypocrisy gasoline on my fire of contempt not only to the leaked phone call from the estonian defense minister claim that the kiev opposition used both sides but now the former ukrainian chief of security confirmed that the sniper fire came from a building under the control of the protesters at that time also the alliance currently in power in kiev glorified out see germany n u slogans like putting jews and russians to the knife so america's first black president a nobel peace prize winner who was elected by waves of tolerant optimistic lefty liberals is smiling and chatting with a leader who is supported by white power right winger groups that use the murder of their own members to oust a democratically elected government there william nightmare is now my friends but that's just my opinion.
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we wanted to create a realistic global that would represent life to create life as it really is. there's an accident six. what can be will wonderful than this the whole thing is a mum. ones up guys i'm having martin and this is breaking this set while there hasn't been
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much coverage of afghanistan lately but let's not forget that we're still at war there thankfully last week there were finally moves made to and nato has presence in the country see after twelve years of straight up military occupation both canadian and british troops have almost completely withdrawn their forces from afghanistan although britain has yet to close down its two remaining bases and. its remaining four star due for a complete withdrawal of years and unfortunately the same can't be said about the us which continues to push its withdrawal date as far back as twenty twenty four hours from classrooms built with american funds that remain empty to u.s. forces protecting afghanistan's record opium production to billion dollar private mercenary contracts squandered with little accountability not to mention that much of the military and commercial resources invested into the country and up directly into the hands of the taliban repurposed and used against the us america's enduring role has proven to be both a logistical nightmare and a black hole that has already cost us hundreds of billions of dollars and thousands
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of lives and despite the hundred plus billion nonmilitary dollars that have been allocated toward reconstruction afghanistan remains a failed state barely capable of self governance without a single sustainable institution to show for it but it was all worth it to get and lot and right weight i was in pakistan i mean al-qaeda known there in syria now i mean saddam damn it i was iraq you know what forget it let's break this up. the look please please a little very hard to take a little to get along so well that he ever had sex with the terror threat there are those. that believe. in. the too.
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little. sleep. for the last month tensions in ukraine have been at an all time high first deadly protests and massive riots led to the ousting of the democratically elected leader viktor yanukovych which then russian troops mobilized within the semi autonomous region of crimea under the auspices of protecting ethnic russians these developments led to a referendum in crimea held just yesterday where nearly ninety seven percent of voters chose to become integrated with the russian federation so here to talk about what the referendum means for the people of ukraine and where superpowers fit in the geo political tug of war i'm joined by john fahey for co-director of foreign policy in focus and eric draitser founder of stop and listen dot org excuse me
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thanks so much for coming on both of you russia's of course maintaining that yesterday's referendum vote in crimea was entirely legitimate while the u.s. and e.u. are refusing to recognize the outcome of the vote do you think that what happened yesterday was legal eric i want to start with you and then have you weigh in john. well i think that legal is a complicated question because of course the ukrainian constitution itself is now null and void after the violent cooed that was organized by the united states. it department and the various western powers that were involved international law becomes murkier situation because of course we've had multiple precedents established already by the united states and the west in kosovo in south sudan and elsewhere so i think that you could get conflicting interpretations of what is there is not legal but what i do think is important is the legitimacy of the referendum that took place in the overwhelming support from the people of crimea which i would add is a majority russian territory it's important also to maintain
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a historical perspective here i think because crimea has never had a democratic opportunity to voice its own opinion as to its future in one nine hundred fifty four when it was given by russia over to ukraine as part sure i mean you have said here to keep the conversation going john you have anything well i would like to subtract this if possible i mean there is very little that eric said that was actually truthful other than the fact that a majority of people voted for joining russia in the referendum i wouldn't call the referendum free and fair i wouldn't call it legitimate it was taking place in the position of occupation russian troops on the ground there was what happened of a u.s. sponsored coup of course not it was a popular uprising the u.s. obviously had some influence there it had some dog in the fight so to speak but it was by no means engineered by the united states and. so there are
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a lot of misstatements i would say but as we look forward look i mean the the referendum went forward and we have to look at what's going to happen for ukraine as a whole as a country coming out of this referendum i don't know if i agree but then you asked that comment but eric he does bring up a good point in terms of the referendum because there was no option to maintain crimea as current autonomy status nor increase ties to ukraine why a. because the question of legitimacy in crimea and in ukraine more generally is being completely ignored here who is to say that the government in ukraine at the moment has any legitimacy whatsoever according to the constitution and the international law it does not that's the reason why the russian government is unwilling to support it or to negotiate with it furthermore i would add the notion that the united states merely has influence over what happened in ukraine is an absolute absurdity the victoria nuland phone call illustrated very clearly they wanted. to be prime minister he is prime minister they want to go off to the side
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he is off to the side everything that has happened over the course of the last six weeks has happened as the united states and the western powers dictated and to say otherwise is an absolute distortion of reality john you recently wrote an article for the huffington post talking about that this isn't just about majority rule this is about minority rights that are kind of being overlooked in crimea can you talk about how that fits into the situation sure and i would also just like to have that regardless of the legitimacy of the government in kiev today that's a matter for the ukrainians to decide not a matter for the russian government in moscow to decide as for minority questions yes the measure of a democracy is often how minority rights are handled and i fear that minority rights were not handled in a respectful or democratic fashion in crimea tars basically were ignored they decided to stay out of the referendum because they felt that there was no point in doing so i think the ethnic ukrainians in crimea feel the same way unfortunately what i fear will happen will be somewhat similar to the situation in which many
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people simply leave crimea because they feel like they're no longer wanted there are minority rights respected in ukraine in kiev so far i think the evidence is yes of course there are problematic situations there was a language law that was revoked but then it was vetoed i think that's an important thing to look at were the rights of ethnic russians. and russian speakers in new crane challenge are under threat in any way i don't there's any real evidence that that was the kids. absolutely i think that you're completely leaving out the right sector and the neo nazi elements who do control the streets this is no minority this is no part of the political process they are in control of the security forces they are the ones who would be a valid followers of the pond bun darragh and the nazi collaborators they are the ones who are the outright fascists who have said very clearly that russians are the enemy russian speakers and ethnic russians in ukraine are to be either kicked out
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of the country or to be cleansed completely these are all on the record and eric i wanted i say really quickly i think that we hear things in terms of black and white it's either you know it's taken over by fascist and neo nazis or not and i just wanted to say how much really is true in that sense of what you're talking about how much of the ukrainian government really is taken over by you not the forces right now a significant portion and i will i would add specifically we can look at dimitri yarrow of right sector we can look at. the party they are in control of the security forces sure you've seen u.k. liberal friendly western oriented camera friendly individual is prime minister that's fine but those who control force on the streets the road blocks the barricades those who are engaged in the violent struggle on my don they have a very significant control they're the ones in control of the national guard when you have an element like that that has force on the ground they are the ones dictating policy and those who are in positions of power are merely following along
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john it was also reported on sunday that russian forces actually moved past crimea into another village it's since been taken back over however the gas plant is still under control how much why would they do this on the eve of such a such a tense situation the referendum is on the eve and also how much of this is about natural gas well as you probably know crimea is heavily dependent on ukraine and has been dependent on ukraine. for virtually everything it's energy it's water if crimea goes over to russia well there was the fear that ukraine the government would basically cut off all of the energy supply all the water supply so i think this is a preemptive move to guarantee some kind of continuity in supply the fear of course is that russia would take that a little further not just guaranteeing that particular gas plant but further energy supplies if that's what ukraine is worried about of course is what it worries about in terms of eastern ukraine as well so that's a considerable problem that we have to address of the new ad. you know i would say
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that russia has moved forward very quickly over the course of the last few years to diversify its gas delivery infrastructure part of that is geo political in nature you've seen that the russians have funded the nord stream pipeline to germany the south stream pipeline is coming online next year part of that was to diversify away from the ukrainian gas delivery infrastructure in order to give russia geo political leverage over nato's expansion into ukraine this is a twenty year standing policy from the united states we have seen it in georgia we have seen it in various former soviet republics and i think it should be understood that part of putin's policy in the russian government's policy their actions in ukraine is a counter measure against nato expansion and i think the international observers around the world are quite clear about that john i mean the victorian on comment earlier i mean it is a good point in terms of that she admitted to investing i think five billion dollars in the last two decades kind of foster the the the opposition movement
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there why is the u.s. so invested in a pro u.s. ukraine or a pro western ukraine well i think the united states has pushed nato as far as as true as it thought it could to the doorstep of russia has been very interested in stabilizing ukraine and in the western camp so to speak the e.u. of course has been interested in ensuring that ukraine as much as possible is as close to you as possible so all of this is in play and so diplomatically speaking of course the state department's been pushing its players was the state department getting its way i don't think so i mean the e.u. brokered an agreement on february twenty first that would have. power would have pushed up the date for elections and it was something that the e.u. pushed down the throats of or tried to this is something that radek sikorski the foreign minister in poland said you guys better accept or else you know and they
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didn't they didn't take the e.u. offer there was there was pressure from the street. i wanted to jump in there really quickly eric we have about thirty seconds left i want to you to follow up of course there's now sanctions being talked about imposed on some top leaders in ukraine and russia how far do you see this escalation going and what's the best case scenario here. or the best case scenario is it deescalation of the rhetoric and move away from these absurd sanctions because of course the russians can respond economically they can start dumping some of their u.s. dollar holdings which is something that people are suspecting around the world is already happening they can move toward shutting down the gas deliveries to europe they can move towards diversifying their gas supplies to china which has been talked about for today and i definitely hope for deescalation you guys diplomacy all the way thank you so much for both of your insight i really appreciate it thanks for coming and. coming up to talk about what it's like behind the scenes that imus n.b.c. with stay tuned. join
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me. for impartial and financial. interview and much much. only on from past and on. board has extended the help to buy schemes at twenty one that he says house prices will only rise from here to serve the indeed the taxpayer stands behind the beloved british sucking teddy bear sleeping property speculate.
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live. live. live . live.
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cut. i merican distrust in societal institutions is whole i mean especially when it comes to the for the state according to a gallup poll from last year people actually trust banks more than they do newspapers or t.v. news in this country but the distrust of the mainstream has paved the way for a renaissance of alternative media to flourish and perhaps there's no better example than the young turks the young turks is a purely online network of shows and political commentary that has become one of the most popular channels on you tube with over a billion views well earlier today i was joined by the founder host of the young turks and former m s n b c ankur jain huger to discuss why his media platform is
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far more successful than the corporate media will ever be i first asked him about behind the scenes story concerning his departure from the corporate press. well i got a speech a couple months before they made the switch on time slots saying that i need to be more pro is stablished and literally that's exactly what they told me which was amazing to me and they said you know outsiders are cool but that's not who we are this is n.b.c. we're insiders and they said that washington was not happy with my tone so i'm always amused by people who think that cable news operators here in america are totally independent it's funny how. that other channels are of governments etc our own channels are a little some of our own government right and of course you know people get. the notion of censorship oh i don't self censor says piers morgan but you know jake you bring up a good point which is that we have this corporate media apparatus that is actually towing the line of the establishment should that be scary to people because of
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course people give r.t. a lot of flak for toeing the line of the russian foreign policy perspective but here we have a media present entirely funded by corporations that's toeing the line of the u.s. government should that be concerning. yeah i actually think in some ways it's more concerning because of course a giant corporation like comcast as this own you know needs to compress owns imus n.b.c. at this point and they're going to drive in that direction and not necessarily in the direction of what serves audience best but they're also entertaining gold with the government so for example they're right now in the middle trying to acquire the second largest cable operator there of course the largest in the country and in order to do that they give me the permission of the government so it might help if they were friendly with the government the previous owner of n.b.c. was g.e. one of the largest defense contractors in the country so they have a ton of contracts that are related to the government so those things are as i
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personally witnessed totally intertwined with one another and and so to give you more detail on what happened with me you know they said ok we're going to move into the weekend and out of primetime at six o'clock and i remember in the conversation i asked look are my ratings ok for well knowing they assert that they were actually the best ratings that they had at six o'clock and told them of course the answer was yes your ratings are excellent and i said if you move me to the weekends if i've done everything us internally right and it's not the content and it's not the ratings well then what is it and it was met with about thirty seconds of the most awkward silence you've ever heard in your life so yes they're entertaining gold and yes they make decisions based on that if piers morgan doesn't realize that he's got his you know head buried in the sand well i think yeah i think people like piers morgan maybe they don't think that they self censor because they're just super generic and i've been kind of groomed for this position because they tell the line so well i mean maybe that says a lot about who these people are but what does it say about the future of this kind
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of media machine i mean c.n.n. for example fired over forty people to replace them with entertainment journalists and their new model is going to reality t.v. . you know there's so many different parts of that first of. well i think a lot of people on t.v. are good people and they don't even quite realize that they're part of this machine but what happened was they got promoted because they told the large. they think that they got promoted because they were so good on t.v. but the reality is most of the people who stuck their head out like actually banfield was basically literally in her m s m b c d's put in a closet because she spoke out against the iraq war now that was back when m s n b c was conservative right and so what the person who got the promotion above ashley banfield doesn't realize is they got that promotion because they didn't say anything yes the iraq war they didn't say anything as a government they didn't say anything about how corporate money totally and utterly controls our politics so that's how the system moves people up that are willing to
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play ball and moves people down if they're not now to the idea of entertainment taking over cable news look what's and i don't mind entertainment news only own terms we do entertainment news but it's got its place and if you are supposed to be the most trusted name in news you should do some news right and so for c.n.n. let me ask an interesting question for you once the last time they broke a really interesting investigative story about the government i can give you a couple of years to think about it. yeah i mean i mean the lock up on m.s.m. is enough but now that c.n.n. and they go half reality you're right i mean it's twenty four hour news channels it's like what is going on here i mean and of course that one story that the mainstream just can't get enough of is this missing plane i sort it out every time i look at the t.v. they have twenty planes holding it up trying to trying to figure out what happened completely speculative we're not learning anything new why is a ghost plane. guard so much nonstop speculative coverage thank you. yes look
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in the on the on turks who are in the news business right and we do commentaries no question about that and we're very clear with our audiences who our perspective is but at least we try to cover the news and all of the news so that also means. we have a whole sports channel setter but you've got to actually cover all of the news so when they focus on the plane and only the plane well they're doing a great disservice to the rest of the news basically they're saying we're not really covering the news we're going to cover whatever is entertaining in the news nonstop twenty four seven because that's what gets us ratings and yes c.n.n.'s ratings have gone up during this missing plane situation because it's basically reality television it's a soap opera and that's how they're covering it subsumes news is not what they're interested there is an anchor kind of speculating that i disappeared but supernatural causes jank i mean it's as unbelievable i know that you have of course
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covered the whole whore deal with the cia spying on the senate intelligence committee how crazy is the level of paranoia on the hill that the cia is now spying on its own watchdogs. yet look what i love about that story is that the senate especially dianne feinstein. goes and says well look we're spying on you the n.s.a. is doing that and we found out because there were snowden's revelations well that's perfectly fine they had to do it there but she literally said there are very big bombs out there ok then three hundred million americans had to be spied into but it turns out when the intelligence community is spying on her or she doesn't like that at all all this on is a whole different ball game that might be unconstitutional you don't say senator feinstein yes that's what we've been saying and edward snowden's been saying all the young turks has turned to an online power i mean you guys are incredible have a billion views on your channel why do you think the media venture has been so enormously successful. well we're just filling
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a market need you know the conservative free market to. should love us so the market need was truth and actually serving the audience rather the sponsors corporate parents or the government and the reason that we now or you know over a billion and a half views is because people go whoa look at that they're doing it with a prompter of their own scripted they're real they're not fake robots on t.v. and most importantly they're not just almost what the government wants us to hear they're telling us the actual yeah that's what i like about watching you and it seems like we're sitting down and you know and in our house just talking to a few friends and kind of really getting into the heart of what people really think i mean average people about these stories it seems like only a few people been able to figure out a sustainable business model for independent media very very tough right now in abysmal state of media right on the country what's your advice for those trying to start out their own media outlets. well so our plan is actually the change the
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entire media so how's that for him. and we want to do that through simply doing what we do because i think it'll create two different paths one is for a young start ups will say well look if i want to succeed online which is the only place you can go without gatekeepers well obviously the successful model is the young turks so maybe we should do something similar to what they did so great but i believe that at this point we've been successful enough and going forward will be even more successful as the rates of our audience continues to grow every single month the mainstream media will turn as some of them already have and behind the scenes talk to us and say ok you guys win what are you doing right now and then we can tell the server. don't serve the government and hopefully they will copy is because that's what the one thing the media is really good at copying success so we hope we can change them by just being successful an exaggerator just like just doing what the people want to hear actually given the real news of what concept and
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of course as you know i know that you've been following it thank you so much for that awesome video breaking down the piers morgan thing about you know i was involved in my own media controversies worldwide a couple of weeks ago since then it seems like this network is consul in the crosshairs of the u.s. media i've come out and criticize the coverage of crimea from all sides worry is surprised that this story kind of spawn out to discredit r.t. ultimately instead of just a discussion a broader discussion about journalistic integrity and editorial freedom across all media outlets. look if people were honest in the criticized or in question you know the farming of our t. al-jazeera and c.n.n. all of those outlets then i would say look those those are legitimate questions that need to be answered but that's not what they're doing instead what they're doing is look at our teeth. as if they're better than our t. and that they are some how more objective and they don't cater to the. government which is ridiculous c.n.n.
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has lost so much credibility all across the world because everybody knows that they cater to the u.s. government when's the last time c.n.n. question the government this is not what they do so look let's take an example of you and me right you could decide is the russian actions in crimea you're still on r t i criticize the obama administration and the u.s. government on m s n b c i'm no longer on m.s.n. b c so who has a freer media. and jake i think that you remember as well as i do that when al-jazeera first i mean i remember neoconservatives calling it a terrorist network i mean now it's gained a lot more credibility but it's amazing the vitriol against alternative outlets than the corporate media jank of course the war of words being waged all over the networks of russia versus the u.s. i just feel like at the cold war point to point out here i mean do you think that there's a concerted effort propaganda wise to reignite the cold war because i sure do. yeah
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you know that's a really interesting and it's so hard to get propaganda free news out of what's happening in ukraine crimea russia cetera the russians have their own you know points that they want to push forward the americans in the west have their points they want to push forward and they do it in so many different ways and you know i don't know what russia's motivations are other than taking crimea which they clearly have right at this point with the referendum going ninety seven percent in their favor i don't know if they want to be more aggressive militarily territorially etc but i do know there is a significant digit inside the us who loves war and that's of course partly what eisenhower warned us about the military industrial complex the more war we have the more just the threat of war creates a panic situation where we have to do more and more defense spending so those guys have a lot of lobbyists and they have a lot of power in washington so some people make a lot of money and love it when we beat the. drums of war right no doubt i mean
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there's tons of think tanks here that are just constantly fear mongering was shipped over from the middle east now to russia and it's no joke jack i realize that they can scale back push peace push diplomacy thank you so much you're amazing thank you so much for coming on today jank you were on the heels of the earthquake there in l.a. hosted the young turks everyone check it out thank you abbi and thank you for your strong convictions we appreciate things and. that's our show you guys before i go be sure to follow me on the twitter sphere abby martin i'm constantly updating my page and talking about the news the mainstream isn't so thanks for watching guys join me again tomorrow when i break the all over again.
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the loom in children continues to. close when many use it is working most
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of the second set i have a dream obama is today telling me i have a drone. drones have not caused a huge number of civilian casualties and that for the most part they have been very precise the second strikes against out of. town this small body on the ground is a little girl and just next to her is a little boy of eight. so. we do some of her stuff guys and also with all of the countries afghanistan's only one that i can confirm that we are operating in. afghanistan is the only other country for. afghanistan still a country that. we
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wanted to create a realistic mobile that would represent life that would depicts life as it really is. there's an accident on route six. what can be will wonderful than this the whole thing is a model. of. dramas that trying to be ignored to the. stories of others to refuse to notice. the faces change the world writes never. come full picture of today's leaves not alone to and from around the globe.
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look to. the. live. live. live. live live. live. top rules in effect that means you can jump in anytime you want. god thank. god.
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russia and crimea signed a reunification treaty but not of president putin declares the referendum on the peninsula to have been no we in line with international law also. but it was everything has its limits and in the case of ukraine our western partners have crossed the red line in a kremlin speech to the president slams the west of all supporting the previous coup government in kiev and refusing to recognize the crimea as a writer to self-determination. drawing is not the big celebration often used that the peninsula will become part of russia we're reporting from the peninsula scupper the old simple but.
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it's a pm here in of the russian capital you live with us on r.t. international you with me tell them what they now to a story we've been following all day for you russia and crimea have sealed in agreement on a real unification and the historic treaty was signed by the crimean government and the russian president after he addressed lawmakers in the kremlin now it is you got the skin off of one of blood made a speech. under russian law the agreement now has to be approved by the constitutional court there are so be ratified by the parliament and the constitution itself would have to be amended if a new entity was to join the federation in statement president putin called on the lawmakers to complete all these procedures now also he said that the main driving force behind all this is the overwhelming desire seeing on both sides for crimea to
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join russia especially meaning the referendum which took place earlier in the crimea which called truly a historic event in which over ninety six percent of the local population voted for the crimea to join russia he also said that the current moves are not aimed at harming ukrainians even sympathizers to goals. peacefully in the protests and said he understood why they were feeling this need for political change but change but mr putin said unfortunately the violent we came to power and the fact that many of them are. nationalist makes it impossible not only for moscow to recognize them as the. authorities of ukraine but also even to negotiate with them. but also who carried out the coup in ukraine you nazis nationalists and anti
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semites and they still do find the country's political agenda it's clear that there is no legitimate executive power in ukraine right now there is no one to negotiate with many of the government departments have been used by self proclaimed officials who have no means of running the country the president also compare the situation to course of us saying that when its independence was recognized by most western countries that created a precedent and he says the way the same countries have been. brainier is not only based on double standards but is simply cynical. what do we hear from our colleagues in the west and in europe they see that we are violating international law but i'm glad that their lease remember that international or exists better late than never the crime means used course it was a precedent and our western partners set this precedent themselves with their own actions and in
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a situation which is fully and i look as to the situation in crimea they recognize kosovo and they prove that you do not actually need permission from the central government to declare your territory a sovereign state supported also commented our accusations that russia cannot committed military intervention to the crimea saying he doesn't remember an example in history where military intervention would be possible without a single fired shots unlike it happened when we were sliding. down the other examples as well so we have every reason to believe that the old policy of containing russia is still in place because we take an independent position but everything has its limits and in the case of ukraine our western partners have crossed the red line because they were rude nonprofessional and they have acted irresponsibly our western partners prefer to use the principle that might is right they believe that they are always in the right that they are unique entrusted by
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god to decide the fate of other nations they apply pressure on of the countries to get the resolutions that they need and if that fails they simply bypass the security council that was the case in one thousand nine hundred nine in yugoslavia as it was in afghanistan and iraq and then they distorted the un resolution on libya they did not merely enforce the no fly zone they bombed that country of course and also spoke about self stressing how important it is to protect all of the nationalities living there including ukrainians russians apnic dot ours the president says that may have three official languages which would include russian ukrainian and thoughts are. there unification treaty with russia has been met with scenes of jubilation in crimea r.t. the last he had assessed the fall of the major on the peninsula now that people have been celebrating for the past several days ever since the referendum despite
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that the decision did not come yet but now it's official and obviously we're in for a big party with this live pictures coming from the city of sevastopol in the south of the peninsula where people were listening to the address of president putin to the federation council and they were already pretty much jubilant if we look at the figures of this referendum which passed on sunday of one point five million people who are eligible to vote little more than one point three million actually voted and one point two million of them voted to be part of russia with a little more than thirty thousand people voting against it in fact it's been very hard to find any of those in here in simferopol and even in other parts of crimea who were against joining russia who stood for being part of ukrainian territory the vast majority of the people have been supporting this idea and for them it's something like we are going home sentiment they think this is historical justice being set right so we'll be asleep we're waiting for a big party. and probably
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a concert in the central square of the city western nations have been quick to condemn moscow's decision on crimea washington as well as britain germany and france have branded a land grab which they refuse to accept. unfortunately russia's leaders have responded with a brazen brazen military incursion there will be additional and far reaching consequences i have signed a new executive order that expands the scope of our sanctions strict measures against twenty one individuals as possible to of if it goes in the future and we don't say that as a threat he said as a direct consequence of the choices that russia may have been choose to make your. reunification with crimea is just old but leaders around the world have already given their reactions as playboy co found out not everyone agrees with brussels and washington. well the tough rhetoric is coming in thick and fast the european
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powerhouses have been pretty unequivocal in denouncing and rejecting of the referendum in crimea as well as the incorporation of crimea into russia internationally minister david cameron. that there will be consequences with the u.s. vice president joe biden has demanded harsher sanctions against russia in response to the latest developments and william hague who's just been speaking from parliament here in westminster has said that this will further isolate russia he's announced that britain has ceased military cooperation with russia he's also suggested that the g. seven nations from now on will be meeting as a group of g seven without russia included now the european response has been pretty divided yes there are those calling for tougher measures against russia but on the other hand there are there is voices within the e.u. that are very wary of imposing tougher trade sanctions against russia they say that
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yes they would be detrimental to russia but they could also be extremely detrimental to the e.u. taking into consideration the tough economic situation in europe at the moment in terms of the political response well it's not just been from the e.u. and the us we've heard all the voices in the international community talking about the referendum in crimea and about the right of the crimean people to decide their future. it's impossible to continue clean room. when they're proved to do some which country you're doing in the. turns out the referendum is a bad thing when the full. determination. doesn't stand up to analysis. for more on the potential impact of western sanctions let's talk to richard wellington from the institute of economic affairs live from from london but the ones here live on arch international
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a signing of this year reunification treaty between russia and crimea has triggered fresh thread sanctions from the west now are we talking about expanding the back to the black list on russian officials or should we be bracing ourselves for more. well we see so far the sanctions are fairly limited clearly the theory is that they will be expanded you'll get far more draconian measures in within the next few months and then of course you and they were potentially a lose lose situation with russian investors pulling their investments out of the west and western investors pulling their investments out of russia and i would could potentially have quite as severe impact on trade so there is a danger that things could escalate out of control. crimea now as part of russia is a done deal so what exactly do western countries hope to achieve with more sanctions well clearly they have to play so you know hardliners within the government particularly in the u.s. but nonetheless the evidence shows that sanctions tend not to be effect safe and if
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they are affected if they only work if the. small and weak countries. surrounded by enemies and really russia doesn't fit into that country culturally clearly it's one of the world's major economies it's a huge natural resources so the likelihood of the sanctions being effective actually very low but clearly western have to play some of the hard lines at least of my lip service to the next week and speaking of all vote we could countries i mean we know you know these easy economic sanctions will require all of the twenty eight members to actually agree to go ahead with them is there enough unity for that i mean think about let you know they already worried about you know how this will impact them economically if they do go for sanctions against russia. clearly it's was the was the yeast these countries have massive trade flows with russia and also of course there are countries in southern europe there are hugely reliant on oil imports in absolute terrible economic difficulties greece italy spain portugal and so on and they really don't need anything to disrupt very to the economic
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recovery at the moment really some sort of destruction to trade with the last thing they need particularly if it starts impacting on energy prices now despite limited sanctions and widespread condemnation of russia's actions in crimea or rather on crimea the ruble has edged up as the russian stocks so evidently the markets don't see things the same way as the politicians. yeah i think they probably see the current crop of sanctions as mostly just politics and given the the huge flow of tragically between countries like germany and russia probably see the probability of it escalating being relatively low and we have now had a period of relative stability following a regime change in ukraine so hopefully things will stabilize now let's not forget that the ruble is in quite fortunate situation given that russia is a huge energy exporter so if we crisis deepened or worse and then we would expect energy prices to go which could provide some sort of a floor beneath the ripples price. to the. deputy editorial director
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of the institute of economic affairs and live from london showing us his the fourth . pictures are from the heart of moscow where a huge crowd is celebrating the country's reunification with crimea is now over well over one hundred thousand people in red square and just outside of the kremlin of course where the treaty was signed just hours ago now president putin took to the stage just a few minutes ago and congratulated the people of crimea at the streets elaborations are breaking out across russia more than eighty cities are expected to take part in nationwide rallies in the far east away it's already night time crowds showed the support waving russian flags and chanting slogans against the far right forces that are now hold such influence in ukraine emotions have been running high
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since the treaty was signed recent poll to show that over ninety percent of russians are in favor of reunification. earlier we spoke to russia and balcones commentator markers of ado parlors to get his take on the latest developments he says crimea becoming part of russia resembles the reunification of germany. the crimea has reunified with russia no different to how east and west germany reunified in nineteen ninety . russia does have an interest in the crimea as it has an interest from the rest of the former soviet union there are millions of ethnic russians in the former soviet union there are millions of people whose mother tongue language is russian and of course the crimea is a prime example of that but also. the ukraine and particular crimea
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was always a red line for for russia and the west led by washington it crossed that red line. we'll get the latest on what's happening in ukraine right after the break to stay with us for that. according to theory joining me now i am glad hearts. to its cause board has extended the help to buy games at twenty twenty that he says house prices will only rise from here to eternity indeed the taxpayer stands behind the beloved gris thumb sucking teddy bear sleeping property speculator.
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choose your language killing the kid with zero in federal subsidies still some other. choose to skip consents to. choose the opinions that immigrate to. choose to stories could impact your life choose be access to your office. so stay with us here on our to international to our top story that we've been covering all day be up here bowls in ukraine have left the country's eastern provinces in a state of uncertainty and they're of course closely watching the developments in crimea and those regions have refused to recognize the self declared government in kiev and calls for independence are growing stronger are his policy is that in that
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the industrial city of done years before the paula how have the news of crimea now really unified you re uniform for cation of russia been received where you are. well in contrast to the celebrations in crimea here in eastern ukraine there's almost a sense of i mean ease i've been talking to people in lenin square and they're telling me that they're hoping that crimea will serve as an impetus for a referendum being held in the east of the country in cities like where i am in donetsk the polls on social media suggest that if indeed this had to happen more than eighty percent of people in eastern ukraine would vote for being reunited with russia but having said that the russian president vladimir putin on tuesday denied the charges from his critics that his intention was to carve up ukraine in an address where he spoke directly to the ukrainian people he said in that part of his speech it is not my intention to harm the ukrainian people i respect ukraine's
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territorial integrity i do not wish to separate ukraine and at the same time crimea will be the last they won't be other regions that follow the reason though for the i mean these people here in the east of ukraine are feeling is that there has been a crackdown on ovoid as of the same protest leaders are being rounded up and detained at the same time there is a movement of armored vehicles eastwards towards the russian border speaking to people they said that they particularly fearful of this government in kiev with its extremist elements and its fascist and lead. so there's a lot of concern here in eastern ukraine. bulleteer they giving us a sense of how the people in the near its are reacting to the news of crimea as reunification with russia. despite the ease in ukraine's open frustration with kids refusal to consider their interests the interim leadership is showing no sign of compromise on the contrary authorities are gearing up for radical measures to crush the protests are. reports on the new laws being lined up. yes.
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there so they've made it to the top and now the question world gets to see what kind of changes the people they've been supports and they are pushing for. introduced the death penalty for traitors spies and deserve. more than the communist party of ukraine along with the party of regions whose leaders aided the russian occupiers these are just the random thoughts by a person of the streets this is a politician submitting a draft law to make this a reality so who is this man who's making such bold statements meets. your desires question that's him intimidating a local m.p. recently forcing him to take down the russian flag and resign or face the consequences. ok maybe he was in a bad mood that day let's give him the benefit of the doubt. a lot if you see no
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there he goes again this wasn't see thousand and twelve here you can see him trying to get ukrainian products back on the market by storm and then through a press conference trying to force feed russia's chief doctor some cheese so that he revokes a temporary ban and here is an abhorrence again the words seem to fail him as he resorts to mix and a russian when he hears something else i'm like oh. all right ok let's go back to what he does like server diplomatic relations with russia than russian t.v. broadcasts and press distribution has to join nato and get the maximum amount to weapons so basically he wants to get rid of everyone who disagrees with him and get the west to support his warmongering it would be interesting to see if national actually does something the west doesn't like for example. terminate the transit
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of russian gas why ukraine to europe if moscow disgrace to twelve fold. increased why not get the european union to subsidize the ukrainian economy through rice and gas can they achieve twelfth old increases very much tighter but at the same time it demonstrates both the desperation in ukraine and also are actually the inability of the european union to come up with the funding that they promised when the my gun protests were in full swing but perhaps what's most troubling is that lash is not alone and surprised and salix on the chain of said mass demonstrations will become sort of crimes against the states while it appears that this is a my way or the highway approach to politics people and indeed the entire country and in the case of the west at the moment ever manes eyes wide shut. marina koester of our party the flood of illegal weaponry that failed in the ranks of the
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ukrainian opposition during the uprising is coming back to haunt the new government the interim prime minister is now calling on all sides to lay down their arms to meet the leader of the ultra nationalist right sector party sees things very differently you can't really defend the model and with all primitive weapons so the people who got hold of arms during the revolution are own likely to give them more just like gun. right there was a very radical movement behind some of the most brutal clashes the dream that couey him here and it has several thousand fighters as leaders of the uprising hardcore faction jarosz has significant of forty among ultranationalist and is now hoping to rise to the presidency is no data on how much weaponry the group has but judging by its own claims as more than enough to go around. crimea as a referendum are left little doubt as to where the local population sees its future
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but that show of democratic will wasn't enough for some media outlets to stop looking for controversies even fictional ones and i see a chicken up was a part of x. . as accusations escalate over the crimean referendum for independence we continue to disseminate stories statements and allegations that are worth being broken down for clarity purposes. first off the crimean referendum took place sunday over the weekend we saw attempts trickling in to discredit the legitimacy of the vote reports about armed men allegedly kidnapping a priest alleged seizures of a gas depot taking place as well as accusations on russian troops trying to enter a territory close to crimea keep in mind none of these allegations were ever officially confirmed or supported with actual facts on the ground. the us supporting the interim government in ukraine has repeatedly claimed that it sees the crimean referendum as illegal seeing it as
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a violation of ukraine's constitution waving russia for it ever taking place as well as all of the events in raveling in ukraine for that matter but there is a constitutional process and. this is for the what. for on the court. different. record reach but it's not so. with. the barrel of the gun or the well an overwhelming majority of people living in crimea came out to support a referendum for the autonomy as republic to leave ukraine over sixty percent of its population being russian u.s. officials echoed naturally by the western mainstream media have portrayed the vote as one that took place essentially at gunpoint from russia. and list images of celebration and cheers not making headline in the west no surprises here any happiness surrounding the results of the referendum doesn't fit
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into well with the west narrative. the media has been abuzz with images of alleged russian tanks alleged russian forces alleged russian activity on the border with ukraine russia are more than enough times to. to explain that any actual military action would only be regarded as a very last resort despite these statements barack obama has dubbed russia's participation surrounding ukraine as a threat to u.s. national security this is been quite a curious way to describe u.s. concerns it's not like russia is next door to the u.s. exactly and again it's not so surprising every time it seems the us gets involved in a crisis anywhere in the world it's either because of its own national security or to protect human rights whether those reasons are based on fact is a whole other story. in the meantime there's a u.s. navy destroyer in the black sea next ukrainian territory police there as a result of the crimean crisis this for some reason not in violation of anything could it be because the vessel in question is american go figure and party
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washington d.c. . russian crimea have sealed in agreement on a reunification the historic treaty was signed by the crimean government and the russian president after he addressed lawmakers in the kremlin now it is speech the president to once again to stress the government in post-coup ukraine is dominated by radicals and ultra nationalist he condemned the u.s. and europe for actively encouraging illegal overthrow of a democratically elected government in kiev saying such steps have crossed the line president putin reeled off a list of examples of nato policy interfering in other states in pursuit of their interests and also stressed that russia's attempts to engage in dialogue with the west and partners where largely ignored in the meantime the president urged the international community to respect russia's foreign policy stance and its national
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interests. coming up it's a boom bust a with every an eight on a chinese national out see you in half an hour. i don't want to beat a dead horse i try to dredge these opinion pieces but you created melt out hits really close to my heart and affects people i know when i see obama gleefully talking to self elected new ukrainian prime minister just burns the inside of my brain he's throwing hypocrisy gasoline on my fire of contempt not only did the leak phone call from the estonian defense minister claim that the kiev on both sides but now the former ukrainian chief of security confirmed that the sniper fire came from a building under the control of the protesters at that time also the alliance currently in power in kiev glorified out see germany and you slogans like putting
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jews and russians to the knife so america's first black president a nobel peace prize winner who was elected by waves of tolerant optimistic lefty liberals is smiling and chatting with a leader who is supported by white power right winger groups that use the murder of their own members to oust a democratically elected government there william nightmare is now my friends but that's just my opinion. we wanted to create a realistic global that would represent like the pace of life as it really is. there's an accident six.
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well some people wonderful this the whole thing is a mum. welcome to the kaiser report i'm max kaiser june i was born has extended the help to buy scheme to twenty twenty that he says house prices will only rise from here to eternity indeed the taxpayer stands behind the beloved british thumb sucking teddy bear sleeping property speculator will be no losing bets in the housing because you know it all stays the herbert one of the teddy bear thumb sucking thing about well thirty four percent of adults in the u.k. sleep with a teddy bear apparently so what thirty four percent of you kids don't sleep with
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the well they also sleep with. over the she's everyone's teddy bear think i'm glad you clarified that we're going to talk about the housing market across the world because it's in the news again and the first one is from the united states why prosecutors wisht on subprime crime this is from barry ritholtz and he asked why did the government fail to go after so many perpetrators of mass fraud and apparently a justice department inspector general report released this week raises that exact question it found the d.o.j. did not uniformly ensure that mortgage fraud was prioritized at level commensurate with its public statements and that the federal bureau of investigation quote ranked mortgage fraud as the lowest ranked criminal threat in its lowest crime category. yeah well i mean it's great if you are the bankers and you get the write the laws the new d. prioritise the law breaking that you are committing mortgage fraud it's
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a fraud it should be prosecuted as fraud but if you're the guy writing the mortgages then you can co-opt the government to simply decriminalize or deemphasize that particular fraud and then when you commit the fraud you pay a small civil fine it's called the banks and brokers of go up to the government which is kind of i guess like fat shit zoom. he's more in america fascism american style division i know chris whalen is up in the second half and we were speaking to him i did or that last night about the fact that there's so much easy fraud to prove this not just the complicated stuff like the collateralized debt obligations and you know trying to convince a jury that they understand what this thing is there's a robo signing the mass fabrication of documents the perjury saying that these documents existed and were true those are simple simple crimes to prove and yet they haven't been prosecuted no young eager prosecutor has even tried any of these
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cases so barrett tells ask why why is this happened well one of the reasons why he says is that the endowment effect and sunk costs fallacy so they've already invested so much the government in tarp and served in all of this stuff so they own this issue without another one is the wrong players in key roles like larry summers and tim geithner the very people who caused the crime wave were put in charge of cleaning it up and then finally this is the one that i think you have always talked about and that's economic threat as observed last year the greatest triumph of the banking industry was an a.t.m. or even depositing a check by the camera of your mobile phone it was convincing treasury and justice department officials that prosecuting bankers for their crimes would destabilize the global economy yet like this downward threat. i did that we have so much invested in fraud it would be foolish to turn back now and try to prosecute fraud and of course every time they do try to prosecute for the bankers and the brokers whip out their threat to crash the economy and the crash the markets and i've done
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that a few times to get their way and the politicians of course are invested in these same stocks and bonds and options and they've not going to argue against their own interest having been vested themselves in the fraud so you won't see any progress in correcting the fraud but you will see the consequences of the fraud which is enormous wealth and income gaps untitled elite that feels they have the right to commit all kinds of additional crimes because once you allow them to commit fraud with impunity they simply extend that to other areas of everyone's lives exactly and this is why i bring this up this this new inspector general's report that nothing has been done by the f.b.i. or the department of justice regarding all this past sub prime crimes and the statute of limitations in the us is almost up on most of those crimes anyway but because there's a new round coming blackstone's home buying binge ends as prices surge mortgages so
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blackstone group is slowing its purchases of houses to rent amid soaring prices after a buying binge made it the biggest us single family home landlord so they've declined by seventy percent and the past year that at the peak they were buying one hundred million dollars worth of properties per week and they spent eight billion dollars since april two thousand and twelve to buy forty three thousand homes well let's see if we get the whole history of this remember it was blackstone of goldman sachs that were involved in the subprime crisis they fraudulently made loans they fraudulently sold repackaged loans to their own customers they fraudulently made bets against their own customers after fraudulently selling them the fraudulently packer's mortgages that was condoned by the fraudulent regular. in the u.s. the subsequent sub prime crisis forced millions out into the street during the foreclosure crisis which was by the way aided by fraudulently overlooking
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foreclosure laws this in turn created a housing bust where if the folks like goldman and blackstone moved in to buy these properties for pennies on the dollar now flash forward five years and they have stopped buying these properties because the easy money is no longer on the table they're tired of being slumlords so they got to walk away from these properties as any slumlord would do and the housing crisis will once again resume and a lot of people will once again be thrown out of their homes and once again the economy will be undermined by the fraud perpetrated by the same actors who are never told to stop committing the fraud and there's no deterrent to committing the fraud and they pay a small civil fine which is nowhere near the profit that they make committing the fraud they were all betting on appreciation and the print in the price of the properties because you're not making any money blacks is not making any money on actually renting them out because a lot of attention and that for a second because you're saying i'm betting on the appreciation of the prizes that
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they themselves are engineering by all the free money they get from the central baghdad was involved in this fraught so you have a circle of three hundred sixty degrees of fraud a daisy chain a fraud you have barack obama eric holder lloyd blankfein jamie diamond connected in the circle daisy chain a fraud you don't know put tab a into slot b. into tab a this lie big it looks like collegial on a bad day it looks like the worst porno movie you've ever seen or financial fraud is being stuck in every frickin orifice you could possibly imagine and this viewing speeling really quantitative easing think like a watch telly to keep this orgy of fraud going until such time as somebody like goldman sachs is oh wait a minute guess what we just discovered we have herpes. and then the whole day the chain brake. part or jamie dimon says oh my goodness i've got craps if in this old age chain a fraud breaks apart and you have a crash and then the quantitative easing continues and whole thing starts up again
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well how they're planning on flipping it of course is sub prime again because subprime is back it's called something different it's now called another chance mortgage or alternative mortgage payments and the two biggest players that are wells fargo and citadel is the biggest river that used to be countrywide in the last subprime crime wave they're no longer they no longer existing console to bank of america but this headline is wells fargo edges back into sub prime as u.s. mortgage market thaws see the mortgage market is thawing just as blackstone is trying to get rid of all these properties that they bought and drove the prices up still wells fargo isn't opening up the spigots the bank is looking to lend to borrow is with weaker credit but only if those mortgages can be guaranteed by the f.h.a. codell said because the loans are backed by the government wells fargo can then package them into bonds and sell them to investors pleasure they want to restart the chain of events once again they want the government backing of their fraud
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which is you could call it fascism or you could just call it wall street circa twenty fourteen where they get the government to backstop their fraud and they don't want to take any risk this is the key that munn must understand is that blackstone or any these banks their money is procured riskless league they do not that's what tom perkins the guy over there at the venture capital firm in san francisco who recently equated the plight of the elite to the whole cost victims ok tony perkins is a guy who's made a billion or half a billion without taking any risk that's the key he's not a capitalist he is the he is stalin on steroids tom perkins in other words he just rapes and pillage and stills and groups and then he says oh my god i'm a victim oh look at them oh stop. on your one little bit only a little too long low on perkins is the worst excuse for humanity that ever crawled out from under a rock so the loans from wells fargo will be to people with credit scores as low as
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six hundred which is the former sub prime to six forty but cities are service and corporation the country's biggest subprime lender plans to package the loans it has made into bonds and sell them to investors citadel has lent money to people whose credit scores as low as four ninety although they have to pay interest rates above ten percent far above the roughly four point three percent that prime borrowers pay now ten percent these people are paying on them whereas it might as well take it out on a credit card though they'll get a mortgage to a picture just with some old on it and say that that's enough of a roast of a credit score to give you half a billion dollars in mortgages we don't care because of course the government backstopping all of this and when the government of the united states can't find enough suckers hey let's invade afghanistan let's invade iraq let's and let's to overthrow ukraine. steal somebody's else's money because you stole the money in our own country but at least you know in america when this next subprime crisis
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collapses and goes crazy people to walk away from their mortgage now i want to look at a final headline here about canada don't worry about skyrocketing canadian household debt because canadians pay their mortgage first of all let's look at this chart this is household debt to disposable income the pink line is canada the purple line is us as you see canada is at one hundred sixty four percent of disposable income to debt compared to the u.s. pre-crash which is one hundred thirty percent but these people here are accusing dot com say don't worry because you know i can a.d.'s pay their mortgages you can see from this chart the blue line is the u.s. and that is the mortgage arrears by ninety days or more in the pink is canada as you see canadians pay their mortgages why they are recourse they cannot escape their debts. well this is always a story at the top of these real estate bubbles whether it's iceland america canada there's a feeling that oh no this could never happen because look at this chart that confirms our bias and we'll keep confirming our bias with more charts and sold close up and
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then we're going to say that well this was a lonesome along in such a rush of the number that possibly could imagine it could ever of happened but look at caressa now in need of huge bailout we don't need money so let's join up with america and mexico and go to break chile you know that's basically the policy directive you have in these countries now they speculate wildly they go bost and then they steal from other countries is supposed to cleave victorian era colonisation via the global banking system except instead of having big nice breasts like queen victoria you've got david cameron in his moves swinging around there with george osborne and the house of commons every watch these guys they look like follow the bouncing is worse than tony blair but that's a good reason to short the canadian market because these people are like slaves to their mortgages these are genuine indentured servants to their mortgages and then this article is celebrating as somehow sort of good news don't worry about the canadian market it can't collapse. even though mathematically a house too because you can't have one hundred sixty four percent of disposal
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income to debt and keep on going i think aramis is a good example of what happens when you try to smoke maple syrup. we gotta go now but thanks so much. stay tuned for the second apple all out maple syrup smoking. room to room on the news. most women use it is work with martin luther king said i have a dream obama is today telling me i have to join. drones have not caused a huge number of civilian casualties. for the most part they have been very precise six flights. this small body on the ground is
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a little girl and just next to her is a little boy of eight. we do some operation. which was a complete. one that i can confirm that we are operating in. afghanistan as the only other country like. afghanistan still country. quite often in countries rich in natural resources are the poorest africa's a colony it's a colony of the big corporations it's a colony of someone's home leaders who are under the thumbs of the big corporations so they have to beg from the world bank's development of social programs goes to pay back debts cold country is drowning under the amount of debt that they should and so every year they would borrow money. and they will use that same amount of money to pay back o.
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their. money really. the wages. dramas that can't be ignored. stories others refused to notice. faces change the walls rights now. full picture of today's leaves no longer from around the globe. dropped. to fifty. welcome back to the kaiser report imax keyser time now to return to our conversation with investment banker chris whalen he's the co-author of
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a new book out later this year called financial stability fraught confidence and the wealth of nations criswell this time for part two great to be back with you. all right chris well in the title the book you make a reference to wealth of nations ok adam smith's seven hundred seventy six classic of liberalism economics do we currently have a system in adam smith to recognize in some respects yes you want to keep the great wheel moving you know what freight will will that was adam smith's descriptive fin of the words it's a great wheel of commerce and finance and the reason that the fed and other central banks printed all this money over the last few years to didn't want the will to stop that steps really the simple way he warned against people colluding you know in a way moral sentiments that's right and you have groups like the davus are building bird or these other big con maps these are obviously opportunities for these guys to collude as well as adam smith was the means by which we democratize credit we opened the game up we took money away from the king so let's talk about another
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piece of the puzzle here because during the banking crisis there is this idea of the whack a mole where a lot of the bad debts would end up back in the fed's balance sheet and back on j.p. morgan's balance remember lehman brothers famously did the repo one hundred five scandal where they took the debts and they put it next door to the bank they didn't tell the regulators about and the regulators would leave they put it back in the lehman books well that's right and it was fraud because they pretended to sell it to someone else but right to believe they were still responsible for citigroup all of those off balance sheet vehicles came rolling back when the investors didn't want them anymore and suddenly they had to put capital underneath them right so that was the definition of fraud is that they were what the definition between a sale was not a sale was so they go into the minutia of the details it's a republic that's right and it's not really a sale but it's maybe it's. well this guy's maybe holding in the collateral right there we'll talk about this in our book we get into the ancient in a season so this louis brandeis the great supreme court justice who really defined this in the mid one nine hundred twenty s. nobody thinks about this anymore but we're going to talk about right now because
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there is a whack a mole candidate in the global or the united states economy anyway and that whack a mole candidate that's sitting on a toxic pile of risk. is what i don't recall if the recall you know right now so what they're rick out is the new lehman brothers potentially well it's a it's a state it's a sovereign entity affiliated with the united states has way too much debt known enough economic activity and they're kind of limping along but it's pretty obvious that they're either going to need to restructure which is something nobody wants to talk about or you could actually see a default under the canopy of the united states now is there going to be a ripple effect well i think so you know the funny part of most people to realize that puerto rico is part of the second federal reserve district of new york fed that idea and the puerto rican banks repo all of their bed debt to the fed of new york so they actually own it the fount of new york is really the key in this in the central banking system there are twelve of the satellite brasses of the federal
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reserve system and it's right now comprise the federal open market committee and the chairman is the fed in washington he's the head but then the new york one is really the guy was doubly yes and he's got a position for life no no he doesn't have position for life that would be a disaster that he's been out while he has seemed like a life it does seem like a life estate is that jamie dimon still on the board of the new york fed as well as our in j.p. morgan no he's not he was he was but they well he was set up that way it was set up to be an appendage of the banks and a conflict ari thank you yes thank you so much so ok so what rico is part of that system and potentially they're sitting on a lot of. crap that's going to blow up well they don't have enough income to service or debt that's a simple. way of looking at it does it count because in them out again referring to my days on wall street you know actually bonds to people that's right and they're rated by moody's and fitch and they get double their triple a and then the interest rates are commensurate with the rating and one of the bonds municipal bonds people
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buy is the puerto rico double b. six percent ers you know you whatever and so a lot of retail people out of retail brokers of the real retail market buying these tax free or tax advantaged puerto rico bonds as a result this island of puerto rico has a huge amount of debt now right they do much like the united states they have been putting off the day of reckoning by borrowing. they don't have enough activity on the island to cover all of their expenses so they go out and they borrow in those seventy just it orcutt and unfortunately they're at the point now where they really can't borrow anymore right so they're going to you think default well i think either that or they're going to have to go to washington hat in hand for a bailout nobody wants to focus on this right now as you can imagine let me just add we're my view is your specialty is really on due diligence credit analysis and digging through the footnotes in the balance sheets and directing a forensic look at your deal maker investment banker so you've got to look through
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stacks and stacks of paper to try to cut deals so that's you know your livelihood depends on being able to sort through this stuff so you look at the numbers in puerto rico looks like it's going to go belly up essentially too much debt to push this but my question again and a raise taxes there's no obvious source of income to fix this the federal government has been quietly pushing money under the table to puerto rico over list few you have for but the numbers are now so big that they can't make it work that way then they get only copyright residuals for west side story i mean. you know i don't know what the what written guy was at the jets or the sharks i think they were the sharks they should be getting a copyright residual that could eat that keep the island afloat they could be dancing all they not want to come to the debt burden or weaker could be in a musical get stephen sondheim write the. story part two the default well it would be interesting to see barack obama selling the bill out on capitol hill. dancing up and down the capitol stairs with the sharks in the sense i think i pay five bucks
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to see that you know trick or treasury secretary jack lew who no one ever sees yet what jack lew he replaced of course if you go insane with the guy who was all over the news for years yes this guy jack lew is the invisible man how come i think they want to why he's the budget expert he doesn't really have much background in finance a lot of people like that job because they get to have their name on a dollar bill you know robert ruben my memory is out in next game a while ago and people are so you signing dollar bills and and and a court of course side of the next game like i am robert ruben here's my name with a dollar bill and so then you have to geithner who i know grew up in the same town i did largely want new york that's right right so we were probably evil were evil twin separated at birth we're probably both playing at flint park at one one the same game more like he's a part of the large white yacht club i'm not on the large white yacht club i was at the another yacht club so so now it's jack lew how much of an ego boost is that job i just want to have that job to get my name on
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a dollar bill well i don't know i for every been there you'll have like i did i mean for example going to end up there because he's an egomaniac well i'm not so sure about that i actually like jamie i think he's a great operator but look but you said something about al capone going to all of the great operator and he invented lots of laws and then eventually had to pay the piper he did pay the piper yeah yeah so you're in this is the thing about wall street guys is that your book says fraud frauds bad jamie diamond is caught committing fraud over and over and over again so how is he a likeable guy if he's part if he's contributing to the massive social equity that you see and i states how is he a good guy well it's with all of the big banks if we're not going to force the rules across the board without any you know favor to some than what why would you get mad at the bank respects it starts in washington. we have to enforce the rules but if they pay their way to get into washington and they all need legal system.
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that was clearly the case during the crisis i mean you had bob reuben telling timothy geithner what to do with the fed in new york and then you had timothy geithner telling hank paulson what to do during two thousand and eight we go through this in our book paulson almost destroyed the world you know thank god for ben bernanke because if you go through two thousand and eight you look at each suggestion by hank paulson super civs remember that bail out citi group yes disaster market almost tanked so that paulson is kind of the the bad guy in this equation a lot of people point to him as being kind of the weak link well there are two tracks of goldman you have bankers who do deals and you have politicians relationship managers if you will paulson is clearly in the latter category not a deal guy when he was a treasury i don't think he understood half of the proposals that he made and he goes around today giving speeches like he saved the world again thank god for ben bernanke because were it not for the folks at the fed and the steps they took to counteract the ideas that came out of paulson's mouth we would all be in
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a very bad place right now so it's also just a schmooze guy essentially a relationship or less that that there are two kinds of bankers and he's he's in the second season that's what he does the deals from is up i don't think so if he had understood what he was suggesting will classic example the tarp legislation they were going to buy bad assets nobody at the treasury realized that you can't do that it's illegal and right up to the last moment they kept saying oh we're going to buy the bad assets from the bank it was only when the people from the federal government showed up the lawyers and said no you can't do that that they switch gears early october and they came out so we're going to put capital in the banks paulson didn't understand what he was suggesting neither did anybody in the treasury i notice that on wall street when bankers break the laws they claim that their financial engineering prowess has moved the art forward and then laws need to change to keep up with their genius no. you know that's bed i made over the counter you notice i'm talking about right i'm up over the counter derivatives are an
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example of of how we've got a bridge too far and yeah well if you're selling something you don't own isn't a fraud. it is well you can't borrow it either by the way you can't the will not make it search short selling is for selling something and out of that's right now we saw the silver market that's right from what was it who is the number one culprit in that well maybe you are the j. there's a middle name p. and there's and they morgan when i think of the hunt brothers yeah well going back to the seventy's but i just saw j.p. morgan make it start selling massive massive ounces of silver but if you're aware that you confirm that well i was and phoned out specifically i was more focused on electricity and the other commodities they were playing in our friend josh ross or has done a lot of work on that but it's really you go back to the fed the fed has allowed the banks to do over the counter derivatives that let them sell anything anything you can conceive of yeah you can go out and sell short and you don't have to borrow within deliver it's
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a naked position and yet the fed thinks that it's ok for large banks to do that kind of business right chris well i've got about thirty seconds ok here's a simple question looking at all this big picture isn't it true that one thing that can be done today to we now most of the bad actors and excesses is simply raise interest rates well i think this should you know rate student to go because the reason why there's so much fraud is that the cost of it is so cheap because the cost of borrowing money to finance fraud is near zero you mean the carry trade the japan for all the derivative frauds all these very scary trade frauds all the credit default swap trains if you can go out and mark and borrow money at near zero and put on a trade that's going to reap you two or three even basis points but you've only got borrowed at zero and if you have extend the government bails you out that's right why not just raise rates or raise margin rates in the purview of the central bank to raise margin rates well you certainly need to normalize them again so they reflect reality we kept rates low to save the world from being to capture five years there we've gone too far but i said that they've got to go the name of the
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book of acts they're not right yet i had to go by the name of the book is financial stability fraud confidence games and wealth of nations criswell on wall street fighting is the author is the co-author of the book is go check it out when it comes out on amazon since thanks much for being on the kaiser important. are they going to do it for this edition because reportedly much conversation erbert like like i guess chris wayland co-author of a new book financial stability fraud confidence in the wealth of nations if you'd like to get in touch tweet us a cause report so much on bio. we wanted to create a realistic movie that would represent life that would depicts life as it really is .
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there's an accident six. months some people wonderful this the whole thing is a model. louis .
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and there are no more. they start. to build a new. version of. mission to teach me. this is why you should care.
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to reunification treaty up to present. a referendum on the peninsula to have been fully in line with international lol. but it was everything has its limits and in the case of ukraine. crossed the red line and a crime in the speech of the presence of the west supporting the government and refusing to recognize the right to self-determination that's. why you know the big celebration up to news that the peninsula will become part of russia will report from the peninsula scott with.
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a very warm welcome to you if you've just joined us on our team to national you're live with us from moscow with me. russia and crimea have sealed an agreement on reunification the historic treaty was signed by the crimean government and the russian president after he addressed lawmakers in the kremlin he got to be scared of followed speech under russian law the agreement now has to be approved by the constitutional court there are still be ratified by the parliament and the constitution itself would have to be amended if a new entity was to join the federation statement president putin called on the lawmakers to complete all these procedures now also he said that the main driving force behind all this is the overwhelming desire seeing on both sides for crimea to
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join russia especially meaning the referendum which took place earlier in the crimea which called. ninety six percent of the local population voted for the crimea to join russia he also said that the current moves are not aimed at harming ukrainians even sympathises two goals. peacefully in the protests he said he understood why they were feeling this need for political change but change but mr putin said unfortunately the violent way came to power and the fact that many of them are. nationalist makes it impossible not only for moscow to recognize them as the. authorities of ukraine but also even to negotiate with them. but also who carried out the coup in ukraine new nazis nationalists and anti semites and they still do find the country's political
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agenda it's clear that there is no legitimate executive power in ukraine right now there is no one to negotiate with many of the government departments have been used by self proclaimed officials who have no means of running the country the president also compare the situation to course of us saying that the when its independence was recognized by most western countries that created a precedent and he says the way the same countries have been dealing with the crimea is not only based on double standards but is simply cynical. what do we hear from our colleagues in the west and in europe they say that we are violating international law but i'm glad that their lease remember that international or exists better late than never the crime means used course it was a precedent and our western partners set this precedent themselves with their own actions and in a situation which is fully and now look as to the situation in crimea they
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recognize kosovo and they prove that you do not actually need permission from the central government to declare your territory a sovereign state supported also commented on accusations that russia cannot committed military intervention to the crimea saying he doesn't remember an example in history where military intervention would be possible without a single fired shot unlike it happened in yugoslavia iraq in other examples as well so we have every reason to believe that the old policy of containing russia is still in place because we take an independent position but everything has its limits and in the case of ukraine our western partners have crossed the red line because they were rude nonprofessional and they have acted irresponsibly our western partners prefer to use the principle that might is right they believe that they are always in the right that they are unique in trusted by god to decide the fate of other nations they apply pressure on other countries to get the resolutions
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that they need and if that fails they simply bypass the security council that was the case in one thousand nine hundred nine in yugoslavia as it was in afghanistan and iraq and then they distorted the un resolution on libya they did not merely enforce the no fly zone they bombed that country of course and also spoke about. stressing how important it is to protect all of the nationalities living there including ukrainians the russians apnic that ours the president says that may have three official languages which would include russian ukrainian and thought are. a member of a self defense unit has been killed in the crimean capital after an unidentified gunmen reportedly apron fire with a sniper rifle live now to his in simferopol r t alexei what more do you know about this. you know right now it's more like an information may have over here so
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many confusing and unconfirmed reports coming in the local craving for agency news agency reports that an identified sniper fired shots at a self-defense crimean self-defense troops killing one at the same time some ukrainian media citing one of the spokesperson of the ukrainian defense ministry saying that in fact a ukrainian soldier was killed in a gun fire still unclear who actually fired those shots if any shots were fired at all and that the same time the very same agency the local craving for agency reports citing a source within the peninsula's interior ministry that sniper fire was was made on both the crimean self-defense troops and the ukrainian troops inside a military base within the boundaries of the crimean capital of seems we have our very own staff our own crews on the ground from roughly video agency they're feeding live streams they're reporting that it's actually quiet right now in front
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of this military base so it's really hard to say what to believe right now at this moment and what all this mayhem happens just hours after this historic events in moscow which you got just mentioned and the backdrop of obviously celebrations all across the peninsula here now let's see i know you have first hand experience in terms of being shot had by. you know just take us through those moments when you were out in ukraine. yes as you remember very well i told you about my experiences almost exactly a month since i found myself on the sniper fire in the middle of in the central part of kiev on the twentieth of february we were shot out in the hotel room doing our live broadcast it's still very much unclear who actually fired these shots at us and everyone else in the hotel good thing with nobody was killed or injured although one of our staff had his bullet proof vest graved by
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a bullet but still we were still in the not in the know where these bullets were coming from especially after a telephone conversation between the foreign minister of stony and miss ashton catherine ashton was made public suggesting that the sniper fire in cliff may have been organized by those who will back down the opposition and now have taken over power in kiev also we heard an interesting interview by the former head of the security service in ukraine the as be you who suggested that some third party some third force could have used those sniper rifles to fire those who died in kiev so this is still a big mystery and there's still hope that this incident will be investigated that is something that both the international community and mosco are now insisting that give should investigate this. and. they and some from our poll just giving us a sharing his experience of being attacked by snipers when he was in kiev during
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those uprising. by western nations have been quick to condemn us close decision on crime am washington as well as britain germany and france have branded it a land grab which they refuse to accept take a look. unfortunately russia's leaders have responded with a brazen brazen military courage and there will be additional and far reaching consequences i have signed a new executive order that expands the scope of our sanctions strict measures against twenty one individuals as possible to of a because in the future we don't say that as a threat we stand as a direct consequence of the choices that russia may have been choose to make your. reunification with crimea is just hours old buddy leaders around the world have already given the reactions and. not everyone agrees with brussels and washington well the tough rhetoric is coming in thick and fast the european powerhouses have
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been pretty unequivocal in denouncing and rejecting of the referendum in crimea as well as the incorporation of crimea into russia the u.k. prime minister david cameron has said that there will be serious consequences and william hague who is just basically training from parliament here in westminster has said that this will further isolate russia he's announced that britain has ceased military cooperation with russia he's also suggested that the g. seven nations from now on will be meeting as a group of g seven without russia included now the european response has been pretty divided yes there are those calling for tougher measures against russia but on the other hand there are there is voices within the e.u. that are very wary of imposing tougher trade sanctions against russia they say that yes they would be detrimental to russia but they could also be extremely detrimental to the e.u. taking into consideration the tough economic situation in europe at the moment in
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terms of the political response well it's not just been from the e.u. and the us we've heard all the voices in the international community talking about the referendum in crimea and about the rights of the crimean people to decide their future. it's impossible to continue. security in their approach depends on which country you're dealing with in the case of crimea it turns out the referendum was a bad thing when the full. determination doesn't stand up to analysis. well honestly it should come as in washington for us and has been following the reaction from the white house and it's a c always good to see you now what was the reaction when washington or america really walk up to the news that russia had indeed taken in crimea. well tabby as crimea celebrates these latest developments all we're hearing from the
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u.s. and the west for that matter is basically rejection illegality and accusing russia of essentially land grabbing crimea at gunpoint and we've heard that but you know while russia is being described as an aggressor in the situation here in the united states the obama administration is being accused of being too weak for one we've heard from former u.s. ambassador to the u.n. john bolton say that sending john kerry for negotiations with lavrov was like sending a cupcake to negotiate with a steak knife there's been lots of accusations that the sanctions are not serious enough that they're not threatening enough and we've heard from joe biden say that who is currently visiting the e.u. for talks are saying that russia's logic is flawed that more severe sanctions would follow that what took place was an assault on sovereignty all of these things we've basically heard before because the position of the u.s. has been very like on repeat they've been talking about how russia is going to be
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isolated more from the international community we've been obviously hearing that the g eight meeting that was supposed to take place and saatchi the summer is being halted we do know that barack obama is traveling to the next week where more talks will continue in terms of what the west and the can do together to further isolate russia and take specific steps curiously violation of international law is something that the u.s. has been screaming him a screaming about throughout this entire crisis but it's funny that we heard russian president vladimir putin say basically well thankfully they remember that international law exists and he did remind the west referring to a memorandum of back of two thousand and nine that you would the u.s. address to the international criminal court saying that a declaration of independence can violate internal and not international law these were words of the u.s. and for some more on the double step. hundreds and other discrepancies in this conflict let's now go to my report.
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as accusations escalate over the crimean referendum for independence we continue to disseminate stories statements and allegations that are worth being broken down for clarity purposes. first off the crimean referendum took place sunday over the weekend we saw attempts trickling in to discredit the legitimacy of the vote reports about armed men allegedly kidnapping a priest alleged seizures of a gas depot taking place as well as accusations on russian troops trying to enter a territory close to crimea keep in mind none of these allegations were ever officially complained or supported with actual facts on the ground. the u.s. supporting the interim government in ukraine has repeatedly claimed that it sees the crimean referendum as illegal seeing it as a violation of ukraine's constitution waving russia for it ever taking place as well as all of the events in raveling in ukraine for that matter but there is a constitutional process in place of this sort of the election. forward on that
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very. different. record reach but it's not so. with. the barrel or the well an overwhelming majority of people living in crimea came out to support a referendum for the autonomy us republic to leave ukraine over sixty percent of its population being russian u.s. officials echoed naturally by the western mainstream media have portrayed the vote as one that took place essentially a gun point from russia. and list images of celebration and cheers not making headline in the west no surprises here and happiness surrounding the results of the referendum doesn't fit into well with the west narrative. the media has been abuzz with images of alleged russian tanks alleged russian forces. to video on the border with ukraine russia are more than enough times tried to explain that any actual military action would only be
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regarded as a very last resort despite these statements barack obama has dubbed russia's participation surrounding ukraine as a threat to u.s. national security this is been quite a curious way to describe u.s. concerns it's not like russia is next door to the u.s. exactly but again it's not so surprising every time it seems the u.s. gets involved in a crisis anywhere in the world it's either because of its own national security or to protect human rights whether those reasons are based on fact is a whole other story. in the meantime there's a u.s. navy destroyer in the black sea next ukrainian territory police there as a result of the cranium crisis this for some reason not in violation of anything could it be because the vessel in question is american go figure and party washington d.c. . let's show you these these pictures from the heart of moscow where huge crowd is
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a celebrating the country's reunification with crimea there's now over well over one hundred thousand people on red square just outside the kremlin of course where that treaty was signed just a few hours ago president putin took it to the stage as well and congratulated the people of crimea and the streets celebrations of breaking out across russia more than eighty cities are expected to take part in nationwide rallies in the far east way it's already night time crowd to show their support to waving russian flags and chanting slogans against the far right wolf if that now holds such influence in ukraine emotions have been running high since of the treaty was signed recent polls show that over ninety percent of russians are in favor of reading for cation. we will bring you news on the latest developments in eastern ukraine break to stay with us.
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i marinate joining me. for an in-depth impartial and financial reporting commentary interviews and much much. only on going bust and. from countries rich in natural resources are the poorest africa is a colony it's a colony of the big corporations it's a colony of someone's home leaders who are under the thumbs of the big corporations so they have to beg from the world bank's development of social programs goes to pay back debts whole country is drowning under the amount of debt that they had and
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so every year they would borrow money. and they would use that same amount of money to pay back oh that's. all that money really. the wages of debt. welcome back you're watching r t international liable for moscow that term all in ukraine caused great uncertainty across the country's eastern provinces and those regions have refused to recognize the self declared government in kiev and in the wake of what's happened in crimea calls a full independence and growing stronger party's policy of reports. well in contrast to the celebrations in crimea here in eastern ukraine there's almost a sense of that and ease i've been talking to people in lenin square and they're telling me that they're hoping that crimea will serve as an impetus for a referendum being held in the east of the country in cities like where i am in
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donetsk the polls on social media suggest that if indeed this had to happen more than eighty percent of people in eastern ukraine would vote for being reunited with russia but having said that the russian president vladimir putin on tuesday denied the charges from his critics that his intention was to carve out ukraine in an address where he spoke directly to the ukrainian people he said in that part of his speech it is not my intention to harm the ukrainian people i respect ukraine's territorial integrity i do not wish to separate ukraine and at the same time crimea will be the last they won't be other regions that follow the reason though for the i mean east people here in the east of ukraine are feeling is that there has been a crackdown on all voices of dissent protest leaders are being rounded up and detained speaking to people they say that they particularly fearful of this government in kiev with its extremist elements and it's fascist and leanings so there's a lot of concern here in eastern ukraine. despite eastern ukraine ukraine's open
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frustration with his refusal to consider their interests the interim leadership is showing no sign of compromise on the contrary of already they are gearing up for radical measures to crush the protests artie's we're in our classroom our reports on the new laws being lined up. yes they were there so they've made it to the top and now the bus a world gets to see what kind of changes the people they've been supports and are pushing for introduced a death penalty for traitors spies and deserve. more than the communist party of ukraine along with the party of regions whose leaders aided the russian occupiers these are just the random thoughts by a person of the streets this is a politician submitting a draft law to make this a reality so who is this man who's making such bold statements meets. your desires. that's him intimidating a local m.p.
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recently forcing him to take down the russian flag and resign or face the consequences. ok maybe he was in a bad mood that day let's give him the benefit of the doubt. a lot usually seem of no there he goes again this wasn't see thousand and twelve here you can see him trying to get ukrainian products back on the market by storm and then for a press conference trying to force feed russia's chief doctor some cheese so that he revokes a temporary ban and here he is and once again the words seem to fail him as he resorts to mix and a russian when he hears something he doesn't like. he's all right ok let's go back to what he was like several diplomatic relations with russia. and russian t.v. broadcasts and press distribution has to join nato and give the maximum amount to
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weapons so basically he wants to get rid of everyone who disagrees with him and get the west to support his warmongering it would be interesting to see a financial actually does something the west doesn't like for example. terminate the transit of russian gas why ukraine to europe if moscow disgraced a twelve fold. increased why not get the european union to subsidize the ukrainian economy through rice and gas can they achieve twelfth old increases i very much started but at the same time it demonstrates both the desperation in ukraine and also our chile the inability of the european union to come up with the funding that they promised when the my down protests were in full swing but perhaps what's most troubling is that lashkar is not alone in surprise that it's oleksandr turchynov said mass demonstrations will become sort of crimes against the states while it appears that this is a my way or the highway approach to politics people and indeed the entire country
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and in the case of the west at the moment ever manes eyes wide shot. during a coster of our artsy or amount of our top story russia and crimea have sealed an agreement on reunification their story treaty was signed by the crimean government and the russian president after he addressed and lawmakers in the kremlin in his speech the president said the leadership in post-coup ukraine is dominated by the far right condemned the us and europe for encouraging the league illegal overthrow of a democratically elected government in kiev president putin be reeled off a list of examples of nato powers of interfering in other states in pursuit of the interest he also stressed that russia's attempts to engage in dialogue with the west have been largely ignored and the president urged the international community to respect russia's foreign policy stance and its national interests.
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well the united states has announced if they're spending diplomatic relations with syria the syrian embassy in washington along with several consulates across the country have been close with diplomats and all in an american staff told to leave for more on the strong region where artie's marina who has the details marina what's the thinking behind this decision that just came out from the u.s. . well as you said the obama administration has ordered the syrian government to suspend its diplomatic and consular missions in the u.s. and not include an embassy in washington d.c. an honorary consulate in michigan and texas washington. rather the white house says that this move comes in response to a decision made by syrian president bashar al assad to suspend consular services for syrians living in the u.s. in his statement u.s.
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special envoy to syria daniel rubenstein said. that we have determined it is unacceptable for individuals appointed by the regime referring to the assad government to conduct diplomatic or consular operations in the united states unquote now while the washington's ties with damascus continue deteriorating the u.s. says it will continue assisting the syrian opposition seeking to overthrow the assad government some would call that quite a complicated endeavor considering that extremists tied to terrorist organizations are fighting alongside the opposition in syria in a serious bloody civil war has waged on for three years in that time a reported one hundred forty thousand people have been killed and six million displaced washington's latest move comes as the syrian government has been accelerating its chemical weapons disarmament which is expected to be fully completed leader this year that deal of course struck in cooperation with russia no
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telling now how the syrian government is going to react to washington to washington's latest move in a big giving us the latest on. that every diplomatic person outside of syria you know going to the u.s. being taken out. by coming up a explain bus with every night on our team to national i'll be back in half an hour . i don't want to beat a dead horse i try to drag these opinion pieces but you created melt out hits really close to my heart and affects people i know when i see obama gleefully talking to self elected new ukrainian prime minister just burns the inside of my brain he's throwing hypocrisy gasoline on my fire of contempt not only to delete phone call from the estonian defense minister claim that the kiev opposition used
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both sides but now the former ukrainian chief of security confirmed that the sniper fire came from a building under the control of the protesters at that time also the alliance currently in power in kiev glorified out see germany and you slogans like putting jews and russians to the knife so america's first black president a nobel peace prize winner who was elected by waves of tolerant optimistic lefty liberals is smiling and chatting with a leader who is supported by white power right winger groups that use the murder of their own members to oust a democratically elected government there william nightmare is not my friends but that's just my opinion.
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head over there i marinate it this is boom bust and these are some of the stories that we're tracking for you today. first up i sat down earlier today with bear market maven david ties to discuss austrian economic principles and the macro economy won't want to miss my interview with them then we're bringing you part two of my interview with out of mentor the author of junkyard planet where he talks to us about the scrap metal industry and tells us which contests are the biggest and baddest players within is definitely can't miss out what i love about a mentor and in today's big deal edward harrison i discuss wage growth and income inequality you won't want to miss the moment and it all starts right now.
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well so now on monday the u.s. and european union imposed asset freezes and travel bans on officials from russia and ukraine as crimean leaders move forward with their all but certain plans to join russia following a vote on sunday now the vote included only two possible options for crimea one are you in favor of the reunification of crimea with russia as part of the russian federation or two are you in favor of restoring the one thousand nine hundred two constitution and the status of crimea as a part of ukraine now it's important to note that the one thousand nine hundred two constitution under which crimea is an autonomous republic within ukraine was little replaced by another one now there was no option to remain within ukraine under this new constitution now political and business leaders are worried that sanctions
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placed on the kremlin will create economic meltdown in the economies of the e.u. and ukraine both of which have important trade relations with russia and depend on it for energy supplies now according to the world trade organization back in two thousand and thirteen just last year forty five percent of russia's five hundred twenty three. billion dollars in exports went to the e.u. now two thirds of which was oil and natural gas last year russia imported three hundred forty four billion dollars worth of products from the e.u. with machinery and vehicles being among the biggest of imported items in two thousand and thirteen ukraine sold almost sixteen billion worth of products to russia it's the largest market with iron steel and cereal being its principal exports the u.s. is trade with ukraine is negligible by comparison it accounted for just two point five billion in both directions last year now local markets rallied monday after briefly falling on sunday's news that citizens of crimea voted overwhelmingly to
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join the russian federation nearly ninety seven percent of crimea voted to break away from ukraine it referendum that western nations and government officials in ukraine how publicly condemned calling it a legal and illegitimate however the russian government says it is in fact illegal now the white house said its current focus was on targeting particular individuals and their personal assets but quote not companies that they manage on behalf of the russian state the u.s. named eleven people that they plan to hit with sanctions while the e.u. named twenty one people you can find that on the u.s. is web site white house particularly this friday ukraine's lawmakers could sign a trade agreement with europe the first step towards e.u. membership and the deal also has the potential to stir more unrest in the country whatever happens will be sure to be watching and keeping you posted on all the latest.
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our next guest is investor david tice now tice's a chartered financial analysts who ran the well regarded behind the numbers institutional cell service from one thousand nine hundred seventy one thousand nine hundred six until he started. the prudent bear mutual fund which he managed from one nine hundred ninety six until two thousand and eight he then sold pretty bare to federated investors now he's long been a critic of credit bubbles and an advocate of gold he had eyes as gold stock investments to help his mostly short barracks mutual fund generate a compound annual return of eight percent for the ten years while the market had an annual decline of one percent this was up until two thousand and eight when he sold it now i spoke with david earlier and here's what he had to say. for a couple years i work with federated this is more of a marketing. transition with who took over for
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a minute exerts and then subsequent to that i actually have been involved in some private equity investments are started cherry. produced a couple routes so no downtime for you it sounds like. now the federated put in bear fund that you use to run has a hard time since you left now since the market lows in two thousand and nine it lost over sixty percent here's the question in the face of so much reflation how can one be bearish at this time. well really what i believe is that very similar to what happened ninety six to ninety nine and from zero three to zero seven essentially our policy makers have put band-aids on you know by inflating you know equity markets in this case by it and zero three to zero seven period they cut interest rates to one percent they engendered a housing bubble and the market went up five straight years but then it ended very
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badly in zero eight what happened in zero nine to thirteen is we've again got a zero interest rates and we have nobody wants to buy all our treasuries so we have utilized quantitative easing in the fed since greece's balance sheet by four trillion dollars and this is. just. going to end badly because i'm a believer in the austrian school of economics which really mirrors newton's law where every action there's an equal and opposite reaction or the magnets to the magnitude the best is depended upon the excesses created during the prior boom and what we've done here quantitative easing is that the road to riches or argentina would have been one of the world's leaders and really their economies gone down you know nearly you know every decade for the last one hundred years and so we have been able to have two bailing wire and you know massive cave on this
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recovery in order to have stock prices go up it is very perilous david you bring up austrian economics i want to ask you can you briefly tell me what are some of the overarching economic principles behind austrian economics pacifically the the principles that most to find how you decide where to allocate capital for investing . what i just outlined as far as the magnet to the club the decline of the in proportional the excesses created during the prior bust they also point out about how the dangers of credit access and that you cannot do this keep borrowing your way to prosperity they really prosperity comes from hard work and savings and investment not borrowing and as far as sometimes the austrians are not the great great isn't terms of market timing as far as asset allocation and i think
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most of the people that predicted the zero eight decline and actually the go to decline really had some austrian leanings and you know typically we are tend to be a little bit early i mean sometimes significantly too early and really we we know that it's going to end badly and we underestimate the degree to which our policy makers will perpetuate you know a bad situation because we recognize the more it perpetuated the worse eventually gets and that's why it was so bad in zero eight was because and we didn't really finish curing the excesses from zero zero to zero two and then the consumer was already pretty over leveraged and then we got the consumer to borrow even more money with this aus and bubble and made a bunch of us consumers strapped by you know putting big mortgage debts around their neck. david are you still bearish on the market. i am
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you know. i do feel is that if we're getting close to a period where the market is due for a significant setback we know that this quantitative easing is not you know the road to prosperity we've we've seen. foreign buyers treasuries we had the biggest selling week you know in history were one hundred billion dollars came out from foreign selling treasuries the price of gold is started move up lately you know which is indicative kind of a canary in a coal mined in our in in we've seen earnings growth slowdown we have seen you know the economy has really slowed down a bit there has been a lot of attribution to weather which we don't necessarily believe but the market
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sell it at a very very high price relative to average earnings precious metals i want to talk about this for a second our precious metals have had a fall from grace what do you attribute that fall last year too. well precious metals have had a bad couple years but really from. you know a period about twelve years ago they went up twelve straight years and so they were due for a setback frankly i am a believer in some conspiracy theory that some might call it but i do believe in the gaps because where gap to has talked about you know the fact that that billion banks in the central banks have essentially been involved trying to keep the price of gold down i do believe that gold does represent the canary in the coal mine where if the gold price starts to levitate it's going to
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scare investors and when you look at quantitative easing being embraced by nearly all our major trading partners. there's ben bernanke even made a speech about you know eight months ago when he was talking about if all countries around the globe they are major partners all utilize quantitative easing an essentially print money then there's not going to be a race to the bottom in a competitive currency devaluation globule however gold represents an enemy you know it against that premise they're for. that was david tacey chief portfolio strategist for bear markets at federated investors. time now for a very quick break but stick around because when we return we're bringing you part two of my interview with author of junkyard plot a planet excuse me junkyard planet adam minter it is one my favorite guys so you've got to stick around for that and in today's big deal edward harrison and i are
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discussing income inequality and wage growth but as we go to break here are a look at some of your closing numbers at the bell we stick around. two of them on the news the link to the most women news is work my goodness i can said i haven't even obama's today it's a new i have a john. drones have not caused a huge number of civilian casualties that for the most part they have been very precise decisions like. this small body on the ground is a little girl and just next to her is
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a little boy of eight. we do some of her service also which was a country's best guess it's all the one that i can confirm that we are operating in . afghanistan as the only other country i. guess is still a country that. we wanted to create a realistic movie that would represent life that would depicts life is it really is . her there's an accident on route six. her. blood can be more wonderful than this the whole thing is
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a mile from her to from. the mummy. move. her. her. her. place. her. move her. dramas the challenge be ignored. stories others refuse
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to notice. faces change the walls the lights now. so picture of today's leaves my own two months from around the globe to my local. t.v. . welcome back now the world of junk might not look that pretty but the junk market helps chart the health of the global economy chinese scrap buyers turn your junk into metal for industrial production and demand for junk in signal strength or weaknesses in the global markets now out a mentor author of the book junkyard planet examines the junk trade and how it effects the global economy we spoke with adam earlier and learned about why he
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thinks underlying trash trends point to continued weakness i asked him about scrap in latin america in the global jump trade and how that factors in and here's what he had to say. right well in latin america it's very interesting it's the one continent if you will that that hasn't become a major scrap exporter into china and china is you know it's number one and you know the chinese scrappers are very very very interesting in that there's not a lot of transparency there's a lot of transparency there's no secrets and yet they don't go to latin america for two reasons one the quality of the scrap metal is not very high and you know when i say it's not very high it means that you know when you with the cars that are shredded there are shredded very old so there's a lot of rust on them and rust on scrap steel it actually hurts the quality you don't want to put that into a furnace as much as you ought to put clean steel in there so what you see in latin
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america is it's still trading internally the scrap is moving around not just cars but things like cables. you know which are like utility cables power lines that kind of thing it will still be recycled internally so it's not as much of a globalized market as other parts of the world mexico is becoming more and more of an exporter but it's also a devouring more and more of the scraps from its name nearby neighbors and actually the u.s. exports quite a bit of a scrap into mexico as well but let americas is probably the least globalized of the various strap because if you will that are out there now last time we spoke you met you mentioned there's this mexican scrap barrier and you will that had this incredible amount of wealth and there's this junkyard but was stuck in his junkyard can you give me all the details that i really want to her viewers out there can you explain that storage. well what happened in this isn't unusual in mexico i mean you have very very wealthy script i mean most people think of the junk industry is junk
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and maybe they think of fred sanford and sanford and son but i mean once you reach once you reach a certain scale you know it's an extraordinarily lucrative business you make a lot of money and. and there was a junk dealer i probably shouldn't say who it is in mexico city you know has made it out of. he and his family were literally holed up in their scrap yard they couldn't leave because there was such a threat of hostage taking and they were worried about their lives they just they simply could not leave and they are not the only one who's gone through this simply because it's such a lucrative such a lucrative industry well you know in that situation you want nothing more than to sell out of the business but nobody wants to buy that business because because you have so much money because it's such it in some ways an ideal target for laundering you know there's people who just simply want to get at it in ways that are let's say not seemly so so they remained in there do you see
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a lot of nefarious business like money laundering within these crop industries. it just depends you know in north america it's very very clean you know there's not much need for it you know in asia because it's such an import oriented business i mean you know still such a large portion of the of the material comes through the ports there's always going to be some gaming of customs and duties and and the various taxes and and you know and that's a constant state conversation between china script industry and the government you know there tends to be this reputation i'm especially in north america of the industry is associated with organized crime it's a little unfair to actually it's very unfair i mean to a large extent the reason in north america that reputation is is come about is because the industry used a lot of trucking and in years past trucking was very you know very much associated with the teamsters and when it was very much infiltrated by organized crime but
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it's a fairly clean business is clean as most i'm if you if you do see sort of any kind of illegality it tends to be on the tax side especially the import tax side. ok i want to move back to shipping which we were talking about earlier now i understand that the baltic dry index that's taking up right now and this it measures shipments of raw materials by sea do you think that the baltic dry index is an index that is that is useful for similar reasons to where you used to measure your industries health. yeah oh absolutely i mean you know we see especially in the the important should be an indicator that if for scriptures is because you know what is happening. from north america asia and you are starting to see you know a tick up in those prices and why why is that happening in part and it's very interesting
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is because you are starting to have some container shortages in in north america as north american consumers start to buy more stuff from china there's a desire to get those containers back to asia very quickly and as a result there are containers going back empty sometimes before there's time to get the shipments into them so yeah i mean that index can tell you a lot when scrap went when prices and shipping of any kind move up it affects what's going on in scrap industry. that's really interesting i also want to talk about an article that i recently came across in the new yorker by john cole a pinch arrow and it talks about the grease recycling industry in the u.s. basically this story looked at how people gathered in used cooking oil in restaurants and then sell them to recycling plants but the story tells how big companies have now began to move in and try and take over smaller grease collectors do you see anything like this in the global trash industry are all the players dominated by large companies or is there room for smaller and highly competitive
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players sure sure this is a wonderful question i mean it's you know people think of the global junk industry as a new industry but i mean in some sense you could say it goes back to the first time somebody beat a sword into. clowe shero you know and in another sense it goes back to the beginning of the industrial revolution one of the things that's constantly happened is you've had small companies get big very quickly they're able to consolidate and you know and when companies become big in the scrap industry like any industry they become a little unwieldly but the trick in buying and buying scrap is actually being able to buy it to buy it knowledgeably and as you as you multiply your employees you know the sole proprietor who is very good at buying the stuff making a smart buy you know they're not able to do that anymore and so you know they don't buy as well and underneath them that gives an opportunity for a small entrepreneur who has a small buying group who can communicate with each other to buy the scraps smartly
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they start to chip away at these bigger these bigger scrap processors so what we now see in the global scrap industry is you see a lot of very large global players some of them who are listed you know on the new york stock exchange sims metal management is very notable i was a company called steel dynamics which owns you know several dozen yards these companies are are out there and there's an argument being made that they're very inflexible and so smaller players are able to go into their markets and chip away at some of their some of their business simply because they're able to offer better pricing they're able to respond more quickly to customers so it's a very real phenomenon and one of things you see is that sort of the mid-size players in this industry get squeezed out that's a very interesting now out and i could talk about this with you all day but they only have time for one more question so i want to ask you what currently is most interesting to you today about the junk train that people aren't paying enough attention to. what i think the most important shift and it's happening very quickly
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is that you're actually seeing manufacturers get into junk into recycling and specifically you're seeing consumer electronics may. people who would make things like you know a smartphone or a tablet what they want to do partly because of regulatory pressures but partly because they just want to get their hands on iraq materials cheaply because we know the long term trend is raw materials commodities are going up they're actually setting up their own commodity recycling businesses the idea being let's get our products our tablets our smartphones our computers back from the consumers before they go to the junkyard and we have to buy it through a middleman and so you're seeing you know i know personally i'm personally familiar with a couple of companies that are doing this and i think there's going to be a very big disruptor in the global electronic recycling trade and i think ultimately it's going to have very profound effects on consumer electronics specifically. that was adam minter author of junkyard planet time now for today's
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big deal. let there be light. and right over here it's time now for today's big deal i'm joined by edward harrison to take a look at work wages and the quality that's we're talking about now over the last four decades the american worker has seen wage gains despite periods of healthy economic growth now take a look at this graph that we have very here it shows the percentage of wages and salaries in terms of u.s. g.d.p. and as you can see it is fallen since the late one nine hundred sixty s. at the peak it was fifty one percent of the economy now it's fallen to forty two percent so ever an economic debates on the left and right all talk about how to
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improve overall macro economics and last week we talked specifically about quantitative easing and the fed and the debate about what will happen if q.e. stops and interest rates rise so the question is now many people focus on wages and why are wages so important to our recovery what would you say i would say it's because you know the consumer of consumption is two thirds or more of the u.s. economy and sole to mutlu you can't have a robust economy if you don't have a robust consumer sector and that means that people have to earn more money for it you know there was going to be taking on debt or doing whatever else is necessary in order to sustain the consumption growth like elsewhere you know you remember the housing a.t.m. for instance during the housing bubble that was the sort of healthy level of consumption that was due to increases in debt levels. that bubble popped and here we're left with the debt but you know we don't have the. higher wage has an a.t.m.
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that's a good descriptive term people are just taking out so much money on the value of their home which actually was not the value that they suspected but i want to move on because the new york times reports that twenty five million workers in the u.s. make less than ten dollars an hour and of those twenty five million three point five million make the seven dollars twenty five cent minimum wage or less so why haven't these workers seen any wage gains you know we had to either take out a bar on behalf of our house or do you take from somewhere else and the money that we had planned and why no wage growth you know my view basically is that there's global arbitrage in general which means in the sense that. you're always working against someone else you might have a lower wage elsewhere and the result what that means is that in the united states is going to be a higher level of unemployment as a result of that and that's going to put downward pressure on wages especially at
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the bottom so it's going to be very difficult for those people to just based on you know the markets themselves to be able to fight against that because the lowest common denominator is the wage levels in other lesser developed countries like that now some people argue that we are actually closer to full employment and that those without jobs are structurally unemployed and that means that they no longer have the skills needed to find a job and are centrally unemployable which is kind of sad what do you make of this argument i think it's a completely bogus argument basically it's an argument to to go towards a specific point of view i mean my own point of view really i think it's very interesting that we went to the currency system exactly when this whole wage thing basically if you take a negative view of the currency system you can say that what's really happened is that you know we've gone through this credit society where basically at the same
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time that we have glow. it allows us to increase credit massively increase the amount of household debt as a result of that and then people are burdened without even knowing that they can't continue and as always thank you so much for your insight that's all for now but you can see all segments featured in today's show on you tube or you tube dot com slash them by starting well so i love hearing from you surprise check out our facebook page facebook dot com slash boom bust our t. you can also tweet us i donate at edward n.h. that's all from us we'll see you next time here i'm going bust chalo. quite often countries rich in natural resources are the poorest africa's a colony it's a colony of the big corporations it's a colony of someone's home leaders who are under the thumbs of the big corporations
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so they have to beg from the world bank development of social programs goes to pay back debts whole country is drowning under the amount of debt that they had and so every year they would borrow money. and they would use that same and there was money to pay back over there. and all that money really held. the wages of debt. i'm very serious. now i want. to use sigrid laboratory to mccurry was able to build the world's most sophisticated robot which on the. mission to teach me.
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this is why you should care only. russia and crimea unification treaty. in line with international law. but. everything has its limits and in the case if ukraine. crossed the red line in a kremlin speech in the president's. government. right to self-determination. for news just in for another big celebration not to. become part of russia.

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