tv Prime Interest RT May 15, 2013 8:30pm-9:00pm EDT
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free. download free blog loaded videos for your media projects a free media dog r t dot com. please . more news today says once again flared up look. these are the images the world has been seeing from the streets of canada. showing operation the day. good afternoon and welcome to prime interest i'm perry and boring here and washington d.c. and here's the story that i'm tracking today. remember john paul's know it not hank
paulson bush's treasury secretary who pushed hard i'm talking about john paulson who shorted subprime and made of billions or as a hedge fund now he's long fannie and freddie along with some other hedge funds who bought preferred shares to match uncle sam's investment senator bob corker characterized the stock as a lottery ticket but that hasn't stopped a run up in price of over one hundred seventy percent in the last two months just last week of fannie mae and now they will repay the treasury fifty nine billion dollars for bailout money it took during the crisis but this is a one off event that's only possible because of an entire change and deferred tax asset good luck mr paulson. and the bloomberg gate scandal ten ten years as financial heavyweights engage in dialogue with the embroiled market data provider clients including of china's central bank the federal reserve and the f.d.a. have inquired about data confidentiality issues and j.p. morgan short of problems itself is having serious dialogues with bloomberg and is
considering its options and she executive of bloomberg lp has personally reached out to three hundred clients and apologized and lastly age as europe's a large as banged has so far gotten off with a wrist slap for money laundering suits and the u.s. and europe but it now faces a new money during charges and argentina is a country that hordes one in fifteen u.s. bills according to bloomberg h.s.b.c. is trouble don't in there they recently reported they will eliminate as many as fourteen thousand more jobs as they seek to cut an additional three billion dollars of cost. now we remember the last time a major bank got caught neck deep and a money laundering scandal it was well cobia to the tune of three hundred billion dollars and only months later it would be established by wells fargo and the financial thing just and here's was in your prime and.
now the gang of eight has introduced a bill that would reform our country's immigration laws the bill paves the path to citizenship for nearly an obgyn that million immigrants the bill includes a four point five billion dollars plan to gain effective control of the mexican border states implementation of the event or if i system increases a highly skilled worker visa and implement a new w.b. sefer low skilled workers but how economically feasible and reasonable is this bill
and as a film of loopholes for the special interest groups well today i have with me well mcbride the chief economist of the tax foundation and my coleman washington bureau chief of the albuquerque journal new mexico's largest newspaper thanks for joining i thank you it's really so. the gang of eight has supposedly introduced a bipartisan bill. mike can you please tell us who are the biggest opponents per poena and is this truly a bipartisan proposal it truly is a by part of some proposal the gang of eight is comprised of four republicans four democrats some republicans including senator john mccain senator marco rubio from florida on the democratic side you've got the majority whip dick durbin and you've got senator menendez from from new jersey and while that effort is bipartisan there is certainly a large contingent relatively large contingent of conservatives more hardcore conservatives who oppose it for what they call amnesty or the so-called path to
citizenship for some eleven million illegal people who are already living here in the united states so it's bipartisan but it faces a long hot summer ahead i think on the hill and it's going to play well one of the tradeoffs with amnesty is. a tax provision that would require immigrants to pay back taxes to gain legal status now while you were quoted in the wall street journal on may tenth about this provision in an article titled taxing problems and immigration plan and you said if this does come to pass it's unlikely the i.r.s. will have a lot of resources to devote to this and that it's unworkable likely not to have any real ability to do that can you please elaborate on this tax provision and the comments you made in the journal. well the iris is already under tremendous pressure. to particularly obamacare many of the provisions going affect this year
we've turned our tax agency into a health care you can see now. as well as many other things they're doing for years they've been doing various welfare programs particularly the earned income tax credit. so what there is to give you an idea of how stretched they are they're able . two. and for all you folks out there who wonder who's going to get audited there's two two million populations it's the very wealthy and it's those taking that earned income tax credit that's because there's about a twenty five percent fraud rate in the earned income tax credit and with the wealthy that's where the money is so they they have to pick and choose their battles basically and they're they're spread very thin so they're just they simply won't be going after legal immigrants and they're back taxes on what are likely very low wages well now there is also a very controversial study by the heritage foundation that was put out it was titled the fiscal impact of unlawful immigrants and amnesty to the u.s.
taxpayer and what came of this was that they mean the illegal immigrants and they receive amnesty they would generate a lifetime fiscal deficit of six point three trillion dollars over their lifetime ken can we talk about the difference between dynamic scoring and static scoring and did this study even take into account you know factors considering that once one becomes illegal they start going to school they'll get better jobs they're going to pay taxes you can you address this yes and the answer is no they didn't take that stuff into account so it's not it's not really dynamic in that sense it's it is. it has a lot of interesting facts and figures in there but their basic approach is very static it does not look at what happens to the next generation what does happen with immigrants typically is the second or third generation is basically indistinguishable from the native population and all sorts of measures including
education in so what they've done is they've taken the current. a assume that the current the first generation of immigrants remains in the in the same education status which is very low low education. outcomes for. most part and low income that goes along with that and so that's that's not very accurate ok i thought we could really talk about this immigration debate without mentioning the heritage foundation study because it's been in the name as it was very controversial but also the cabo is supposedly going to score this bill do either of you have any numbers of what you think it'll look like i don't know that they're supposed to use dynamic scoring so i'm sure that the. negative economic impact would it wouldn't be as great as the heritage report but that's still to come nobody really knows what that study is going to say one. on that same note the cato institute which is a right leaning think tank here in town also did a similar study and they did use dynamic scoring and they found that the reform
bill would add one point five trillion to the economy and that by forcing the eleven million undocumented workers out of the country that there would actually be a two point six trillion dollar loss over ten years to the g.d.p. adding it adding people to citizenship or painting paving the pathway to citizenship for eleven million people that doesn't increase prosperity it doesn't increase production i mean we have a jobs problem here it's not that we don't have enough people working is that we don't have enough exports we don't have enough products being made is so just simply making somebody legal status is that going to increase your economic output . well what it will do is you're right they're already here there are already working and the question is how do we get them on the books basically how do we get them to pay taxes what it will do is boost tax revenue these people come out of the woodwork to. obtain proper paperwork i.d.'s.
likely will go away as a result so it is it isn't going to change production or demand that much you're right going forward it may attract more immigrants but economists agree on. two things one is that more immigration is on balance very good for the economy of the domestic economy of course it's very good for the workers they're coming in they're doing it they're risking their lives to get here so we know it's good for them but it's also good for the domestic economy on balance and a lot of the costs in the bill are going to pay for increased border security and clearing our new surveillance technology the border agents a new phase. can anybody talk about if this is the economic or are there more cost effective ways to protect our border economical you mean cheap it's certainly not because we spent ten billion dollars in the last ten years ninety billion dollars
in the last ten years border enforcement mechanism it's been kind of a mixed bag i mean it has. illegal crossings are down. but at the same time you know some of that may be attributed to be able to a better economy in mexico less opportunity here in the united states because our own economy has been suffering it has worked is very expensive but you know some of the things that my congress people in new mexico tell me is the least expensive just doing vehicle barriers and things and being very strategic about where you place these types of barriers so there are things you can do to be very expensive and the jury is i think still out on how effective it actually is all this also brings into question the amount of money that we spend on detention facilities and either of you have any insight into private prisons and what they have to gain and lose in the immigration debate and are they will be in congress on this information . i don't i don't have any particular knowledge of the industry except to say that there is a clearly
a conflict of interest in that. to the extent that those are those are profit profitable operations. they serve to their business is keeping people in jail right and so a lot of these folks are illegal immigrants so they would stand to lose they might be lobbying against any sort of a. the current system. corrections corporation of america corporation of america has one of the largest private prison operators in the country spent almost a million dollars last year campaign contributions to members of the gang of eight and others who have jurisdiction over this type of. what they call the deportation detention facilities which would you know we're keeping people before we deport them and so i think that they've got a big dog in the fight and they'll be very active as this thing moves forward ok and just last question i want to talk about the highly skilled worker impact on. what's a big part of this bill is the increase in h one b.
visas right now we give about sixty five thousand a year high tech companies mark zuckerberg is an apple computer and everything they're saying you know we don't producing unfortunately enough highly skilled workers to fill some of these jobs at the need to fill so they're looking to india and pakistan and the thing is we bring a lot of these kids over here and we give them the best education that they could possibly get but you know send them away so a lot of members in congress would like to increase that number up to over three hundred thousand a year number one hundred ten thousand. that would. in any case the idea being that some of these highly skilled highly educated people would be creating jobs and. that's all we have time for. well this is. the chief economist at the tax foundation and michael coleman washington. next we have an exclusive interview with the publisher of the trans then prime
interest. piece. may not be the case when it comes to the state of russia. or the u.s. in. oh i serious or is this a plan we can merely intensify the conflict potentially deadly blizzard taking aim for the northeast it's expected to hit stunning in a few hours from new york to maine we have team coverage of the storm. but what we're watching is the very heavy snow moving into boston proper earlier today it was very sticky you can see it start to become much more cattery down to the line there's still a lot of snow out here and a good place for snowball fight. d.c. it is going to pretty incredible day there and even record snowfall throughout much of the night will be slightly driving lessons to the urgency here except.
the world. science technology innovation all the latest developments from around russia we've got the future of coverage. four times a year gerald solent a founder of the trends in research institute publishes the trends journal the most recent journal featured a wide range of topics including the arab spring a sniper's bail ends as well as the influence of the goldman game earlier i spoke
to gerald sunday about his views on global currency wars and i asked for his take on partisan u.s. politics. you look at most people they either call themselves republicans or democrats left right center whatever they're locked into a belief system and in that belief system they keep repeating the same shallow message the same silly talking points and they live in by and die by those you cannot give them facts to change their minds facts do not count in a belief system and that's what we have going on right now look at the media they call themselves by their own by their own definitions they'll say that they'll call themselves centrist bills they'll call the left wingers whatever they're locked in a belief system and that's the only thing that they listen to are their beliefs as a political atheist pledge allegiance to the flag. no i certainly don't pledge
allegiance to a flag and i certainly do not believe in my president right or wrong i pledge allegiance to the constitution and the declaration of independence pledge allegiance to the flag is a new thing they made up in the nineteenth fifty's and then and what do i pledge to anymore they've abrogated the constitution they've destroyed the declaration of independence they've abrogated our of fifth sixth and fourth amendment rights so what do you know everything i love these politicians by the way we talk about our founding fathers the founding fathers would be real rolling in their graves how about not becoming involved in foreign entanglements well why don't we all know i don't know why we move on so you egypt's ok i want to move onto to more banking
issues and i wanted to get a year you know i wanted you to speak on the importance of deposit or confidence within our banking system and why is that essential to keep banks solved and can you just talk about you know confidence in this fight the psychological effects that go into our banking stocks or. well people believe in it because of course they have f.d.i.c and they're covered walk for two hundred fifty thousand dollars in their account and what we saw in cyprus by the way recently to me that was a canary in the mind shift this is what happens when banks go bust will it happen in the united states i don't believe so they'll call a bank holiday they've done it before if there's a crisis remember they closed wall street for a week when nine eleven happened and if you had certificates of deposit by the way you couldn't get a mount you couldn't cash your men because those the financial instruments traded on wall street sees c.d.'s were locked up and when so when i believe what will
happen if there's a banking crisis and there's no reason to believe there won't be one because everything they're doing is not solving this problem all they're doing is to basing the currencies by printing more money i believe they'll do what they did back in one nine hundred thirty three but just different and that is they devalue the currency and people don't realize that in thirty three you were forced by the federal emergency banking act to turn in all your goal and gold in those days the dollar was pegged to gold i believe it was twenty dollars and sixty two cents an ounce you had to sell it to the government ad and if you didn't you went to jail or were fined they had laws in place after all the gold was in day repay the price of gold to thirty five dollars an hour. which means that you just lost seventy percent of your purchasing power and i believe that's what's going to
happen where there are more bank holidays in europe bank holidays in the united states in argentina or anywhere they will devalue the currency you'll get your money don't worry about it it just don't won't be worth very much countries around the world are. are easing and printing money you know in japan we haven't nomics you wrote about the swiss they they've been printing frames and you know the e.c. be printing euro is all to keep up with the united states i mean you called this world inflation can we is this would you consider this a currency war to. absolutely not only i consider a currency war listen to the brazilian finance minister monti he call it a foreign c. war currency war listens to alledged very good is now head of u.b.s. was former head of the bank he calls it a currency war mervyn king the outgoing head of the bank of england he calls it
a cards war even i. call that a currency war and even add to the g. seven meeting they called it a currency war but then they said we can't call it a currency you war and we're not going to call it a currency war that's all this is and by the way since our base come into office the yen is lost fifteen percent of its value against the dollar and just a little bit of history because it's repeating itself this is the same thing that happened in the 1930's they're lowering the value of their currencies so they can export more of their problems and they did the japanese did this when they went off the gold standard in the 1930's they they lowered their currency so much that it fell sixty percent against the u.s. dollar in forty percent against the pound sterling so all this is about the lowering of the value of the currency is to export more products and i have this is
a minute left but i wanted to ask you about bernanke you've ags that strategy health and wrath of last week or last week and wrote and the journal kind of hinting about have winding down the five billion dollar a mine printing even that the fed is currently doing do you think that the fed actually has an exit strategy i mean do you think interest rates are going to rise and what is going to be the result of. you know i don't know what they have but i know what they've done hasn't worked it interest rates have to go up at some point and when they do that most people who forecasting the bond market's going to crash with it and so too will the economy. because the only thing that's kept this a commie alive is the printing of cheap money and record low interest rates i just took out a loan to buy a historic building at two point eight seven five percent a mortgage at some of the heard of that's what's keeping the markets alive and even at those numbers those ridiculous lee low rates we still have not seen
a real recovery not when you look at income growth the kind of jobs that are being created or g.d.p. numbers. that was gerald solent a publisher of the trends journal and it has the full interview turn to our you tube channel at youtube dot com slash the prime interest. in joining me now is bob inglis prime interest producer yes it's great to be here again and we might have a dual today i'm sorry to say what we announced yesterday that we're going to attend the conference this weekend in san jose california so if anyone has anything
us to report on while we're there to submit your comments on you tube and facebook and we'll get you up but i do have some troubling news for fans of the government has seized cash assets from the largest bitcoin exchange mt kopp god's homeland security claims to have probable cause because they were transmitting money without a life and now we have here a copy of the actual caesar warrants bob went there in detail what did you find that was of interest to you know well unfortunately the kill the seal a big coins is that most people need to transfer money to it to be able to get them you have u.s. dollars you won't be according to. to go to mt gox or one of the other providers and so this is like a bottleneck and what mt gox had done is open up a bank account at wells fargo and unfortunately they check some boxes know that they probably should have checked yes. we have this michael mcfarland special agent of homeland security services who filed an affidavit and said that he wants to investigate them and seize the money the point is part of this he interestedly
defines currency something that refers to any money that a government has declared to be legal tender and i mean does this strike you as a little bit funny definition of i that's not what i reported as i think one of our first episodes i didn't break down yesterday to just currency exactly nothing to do with legal usually in the old days currencies and this is our definition here a government declares a currency to be legal tender despite the fact that it has no intrinsic value by reserves so i'm just wondering if you've got this completely wrong if we could just throw this out to do that out the window and start fresh air well that's just the thing is we always have the government changing the definitions that they mean they may change the definition of inflation as well used to be my. money supply and now it's changing and prices. anyway. moving on.
interesting lee a few days ago there was a war on professors they made some really negative comments about bitcoins they said quote they're swimming in unchartered waters when it comes to its legal and regulatory situation and that the most obvious question is whether bitcoins are even legal pressure that of them and as we know c o t c commissioner bart chilton came out a few days ago he said he wants to regulate big koreans and the commissioner of the chairman actually gary gensler he went toward an interesting story about him somebody who was a friend of robert when we were going to meet at the conference this week and went to school with them. he said when he went to the wood recruiters were going to him at goldman sachs goldman sachs only wanted to talk to gary gensler you know it's my little story about him not surprising it's as always they're saying all this stuff comes together exactly that's all we have time for us are a bit going fans. now
it's been a day of trends and reversals on prime interest we looked at subprime as number one the hedge fund shorter john paulson he's now flipped and is betting out on the bailed out jesse's will emerge from conservatorship the list of concerns clients is growing longer with china the fed and j.p. morgan joining the fray we talked with gerald solent today about the number of trends he's tracking from the u.s. dollar troubles to global monetary policy to our fed chairman's exit strategy and we talked about the cost of emigration with well mcbride and my coleman and finally we had to end on a sad note highlighting the continuing troubles with bitcoin servicers thanks for watching we'll be back tomorrow with more and be sure to catch our extended
interview with gerald solon day on youtube at youtube dot com slash prime interest and from everyone at prime interest and carry on boring a great night. you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harpur welcome to the big picture.
as you live on one hundred thirty three bucks a month for food because you know how fabulous. i mean. i know that i'm sitting in a really nice. in the all very closely. of. the worst shergill of. my house to give it to a radio guy in fort lauderdale minestrone cricket because they all want to watch close to good you've never seen anything like this i'm told. it. was up guys i'm having martin break in the set.