tv Prime Interest RT July 10, 2013 1:29pm-2:01pm EDT
earlier i talked with reggie middleton owner of the boom bust blog dot com he entered the room wearing a pair of google glasses so i asked him how he got them here's what he said. had a contest i'm not mistaken as a what you would do with grass and they also give it to developers influencers etc i fell into the influence of group to develop a group or someone who just had a fresh and bright idea is hopefully all three. and that was the most likely will give me the opportunity to progress let me ask about the grass yes. i got the grass because a i been very bullish on google and consequently bearish on a lot of their primary competitors and to date i've been correct and i think that is a paradigm shift in mobile computing in telecommunications basically a game changer you know it's grass to google would be much more than the i phone
was the apple i think about the reinvention of the cell phone well let's not talk about yeah let's talk about your bullishness on google is this just a result of these glasses themselves or developing other products that you think could be game changers as well. my pushes on google is not so much a product issue it's a business model issue. for those who follow me to my site from other parents is i believe google significantly misunderstood a lot of people who as a tech company that comes out with technology such as android developers things such as you tube and sort of a search what google is google is a business model incubator and it's funded through heavy cash flows from the advertising business which is so growing it is growing faster than the web advertising adoption. never itself says something the funds from this cash flows then go into what is essentially a gigantic venture capital fund. you know private equity fund and they take ideas
either internally generated or they buy you know small medium sized startups and they nurture them hopefully have them flourish through this business model you've got. to you have android you have several you have google grass and many of these at the top with their industry or field from almost nothing in just a few years and it went from less than one percent to over fifty percent and in some cases seventy two percent of the market and since two thousand and seven talking about we you know five years phenomenal same thing with you tube you tube is video on the web the grass is the same thing and what google does is google use what i call a negative margin model of cost shifting mother model where they say very cool technology and very useful services and they offer it for less than free so not only do they that should represent the option but it makes it very difficult for
the competitors coming behind them to compete because they can't make money as a matter of fact you have to give the client money to get to know that the service is just to compete with google google is able to do that because they've taken that to consumer and match it with a natural producer and then they have to cross over to the producer and we from the consumer and you know the result is what you see now in google in android well let me ask you with all this new technology there are several privacy concerns us noted isn't it in the news how do you see google fitting into this privacy landscape. well google i've called google basically the big brother trade on exchange who is a company that is data driven it's a data company you know their business model as the i see it is basically to be the cake keeper and shepherd of data and information in a way ok that makes them a very very powerful company with that being said who would do it somebody else would do it someone who stated before google. the privacy concerns you know outed
by snowden through the n.s.a. etc extremely valid but you know they were there you know there and they say it's a spy agency that's what they do anybody who's concerned about google glass should be concerned about anybody else with a cellphone grasses basically a cell phone in different forms that anybody is afraid of was so phonographs should be free to walk down the street particularly new york city with a camera on every other quanah certainly and then there is the united states satellites so probably sees a big issue everybody should be concerned but you should be concerned at. should be concerned. you should be concerned of the problem and not necessarily a proxy for the problem and that's you know new technology etc we have just a couple of minutes left but a lot of these tech companies have been parking money in ireland and i know you've made an interesting discovery about allied irish bank and would you like to share that with us right now. allied average bank among other banks even the pristine
relatively pristine bank of ireland anglo irish is in my opinion in and i'm not a lawyer so. misrepresenting investors in a public you know in layman's terms some people considered for the fortunate but quite misrepresent there is quite misrepresenting in both their reporting and their . presentation of health i like irish is insolvent from our perspective they have a large amount of underperforming loans and non-performing loans and the under reserve for the on the reserve significantly and on top of that is how does this fit into the rest of europe in other words i know there's an bailout fund and what are they going to do or are they going to draw on that and how does that affect the other countries in europe. was devoted to what they're going to do to fill a couple of observations out at irish if they were to mark to market has roughly twenty billion dollars twenty. billion dollar hole solvency hole so in order to be
fully funded for the provision for underperforming and non-performing loans using their measurements which are most likely. overly aggressive they are roughly a twenty billion dollar hole to be considered solve it the essent is is roughly sixty five b. in the e.u. e.u. why so one bank in a country that represents roughly under two percent program of the economic activity in all the e.u. would take almost one full third of the bailout fund the e.u. and we hear a lot about bailouts but there are also billions could we see that in europe and could you explain what that is for our viewers and how it relates to cyprus well billion is a term where they forcibly capitalization from the depositors versus the tax payers or any other source. in the layman's term is that you have a savings checking account pension fund at a bank and they simply take your money to recapitalize a bank ok that may seem odd but as a deposit you're basically an investor in the bank very very short term supposedly
liquid investment but it's not liquid if you can gain access to even with the new direction of cyprus with insurance insurance is a misnomer for us to have to take a look at who's assuring you. if the n.c.v.s. insuring you know is a self insolvent such as ireland then you naturally insurance should be sure of it and solve it and city island can afford to build irish banks which is why they had to go to the e.u. and the troika ok now is the political environment for such a bailout seems to be inhospitable it's unlikely the germans are going to say ok to another twenty thirty billion dollars bailout for that bank and i have in my side of name five other banks and insurance companies that are also in their issues so we have almost a guaranteed bill and we have almost from my perspective my observations of how gracious again would see capitalization and be forceful in the process. that was the owner of boom bust blog dot com reggie middleton.
this week negotiations for the t.v. to play launched very few are talking about it and it's getting a little media coverage i would bet most of you haven't even heard of to tip so let's break it down the transatlantic trade and investment partnership for short is a trade agreement between the european union and the united states aimed at removing trade barriers to make it easier to buy and sell goods and services but the e.u. and the us this is a very large trade agreement one of the biggest in history it is a result of the world trade organization negotiations falling through and the so-called development agenda the u.s. refused to eliminate agriculture subsidies while india and africa is facing suppressed cotton prices the u.s.
has been stubbornly propping up and farmers this is also a contributing factor to the spike the suicide rates among andean farmers cutting out the problem nations the e.u. and the us are looking to reduce tariffs and subsidies of their choice that distorts commerce the e.u. is expecting to benefit by one hundred nineteen billion euros a year and the u.s. is expected to add about a million jobs as a result of the deal along with shaving down tariffs and subsidies the negotiations will include measures to reduce inconsistency and u.s. and e.u. regulations but interestingly enough the white house is insisting that dodd frank is not included in the transatlantic talks however wall street and european finance ministers do want these financial services regulations included senator sherrod brown have brought up the point that the industry will use any means necessary to roll back dodd frank which could be accomplished. many corporations are largely
involved in the u.s. trade representative assured during his senate confirmation that the negotiations would not watered down too big to fail regulations. there's nothing that we are going to do through trade agreement to weaken our financial regulation to roll back to frank or to roll back the efforts of the administration and congress worked on for the last four years to reform our financial regulatory system here and to work for the g twenty and other mechanisms to raise the standards around the world. rules surrounding derivatives trading are some of the most controversial provisions and died for a they fall into multiple jurisdictions and would require international cooperation to be effective the obama administration alleges that the e.u. wants to soften dodd frank a top e.u. official handling the financial services talks so the e.u. is not seeking to weaken its own or the u.s. achievements in developing legislation that strengthens financial stability
negotiations kicked off yesterday in washington d.c. but we're not without their own a drama last week a report was weeks that the u.s. had been spying on the e.u. negotiators edward snowden as the source of the believed to have leaked these reports france and germany were outraged in some parliamentarians called for suspension of the talks we've heard before that trade deals are done behind closed doors and largely secret which is a far cry from the standard of democracy and transparency expected from public policy only if you have access to what's going on behind those doors but least you know a little bit more about it. stay tuned because coming up geoffrey tucker no talk of the future of fed policy interest rates and an impossible gold standard then i are to correspondent margaret hold over the recent surge in consumer credit.
put the military again in control after a coup which is the future hold for egypt is this country's experiment with democracy a thing of the past what signal does this coup send to islam and parties in the region that will washington's reputation among egyptians ever be redeemed. wealthy british style. sometimes surprise free. markets why not come to. find out what's really happening to the global economy with mike's cars or for a no holds barred look at the global financial headlines tune into kinds a report on our. world including.
odd to me that a little. with the latest fed meeting minutes being released tomorrow and ben's big speech what could be more relevant than some good old fashioned fed talk earlier i spoke with geoffrey tucker executive editor of laissez faire books i asked him about the fed's track record since the financial panic of two thousand and eight here's what he said. since two thousand and eight especially the fed has been unable to manage the money and banking system no matter what they try to do it doesn't behave the way they want it to because there's maybe in part really good at printing money but
they're not managing it properly. they can take control of the coffers of the banks and that's essentially their job despite all the top. that the fed gives about keeping unemployment low and inflation low and the main job of the fed is to keep the banking system liquid they can do that very well but they can't control the philosophy of money which is a crucial factor in terms of determining moneys value so since two thousand and eight businesses and consumers haven't really cooperated with the fed and things about behaved at all the way again but i think he imagined they would be if you notice recently we start to see the bernanke is certain to get very worried about the future because we've got a banking system that's full of reserves most of them phony of course one of them one point seven trillion dollars of excess reserves what's going to happen with all this money is he going to be able to keep it in you know in quote the system there's no way that he'll be able to pull back from what i have been done because you could say he started sort of pulling the reserves out you threaten
a big recession again and you lead to an instability of the banking system so it will eventually leak out once confidence grows and that will be very bad news for everybody else so prices and consumer prices will start to respond in the ways they have it over the last five years are already a very scary situation are there alternatives gold is a very popular alternative money system of course we had a gold standard in the past but what about bitcoins i mean what is the future of money. i would like to see a future of money in which the market was entirely in charge in the same sense that the market managed the shoes and our food supply and computers and software industry it should also be managing money and that includes even the creation of money or the production of money itself the trouble with the gold standard and it's you know the goal centers far preferable to our current system which central bankers are running the world you know on behalf of the large banks basically but
the trouble with the gold standard is that it depends on politicians to implemented you know they have to be ok no we are going clip right politic. can at the end of the day they can always change the game and that's a problem with public money they've done it already you know they did in the new deal those collected all the gold back in their eyes change the definition of gold to the dollar and that's the problem with any system that's still in the hands of politicians you know if a high if the end of his life after getting out of present economic said look there's really only one term solution that's a total separation of money and banking from trump public policy entirely and that's the beauty of things like crypto currency it's trick crypto meaning cryptography meaning that later because he's you know like big clients and they're all they're all clients but decline is sort of the gold a very of a cryptography world right now it relies on a sort of peer to peer system of exchange that doesn't rely on trust of third parties you don't have to go through any banks or any credit card companies you
don't have to trust anybody you just exchange physical property for other physical property that's a distributed network so it can never go down so you can never lose your money. an open source system so you can always examine the code so you don't have to have you know audit the fed movements i mean anything like that so everything's open source it works it's like the monetary equivalent of really good software like linux or wordpress or something like that and it's suitable to the digital age and it's trying to catch on you know we have to remember that because i was only released into the world and two thousand and nine and it was only in february two thousand and eleven that decline achieved dollar parity so you could exchange one big client for one dollar and that defied everybody's expectations nobody expected it would ever get to that point really and no many many and especially as specially getting to over one hundred forty dollars per bitcoin there's been a lot of volatility though and is let me just as you straight out are bitcoins
money. so i would say that and a limited sense because those are already money you know whether something serves as money or not is not quite a. black and white saying in the history of them evolution of monetary institutions certain commodities gradually become money over time as their use spreads and spreads and spreads so we're starting to see massive use of big claim and places like china where they're just wild typically it's ok but i mean can you pay for your groceries in bitcoins how do you justify that we have a cheese that achieve that evolutionary stuff right now why we say because our money right now so i would say that it's just a matter of the development of the institutions i would just give you one example until that two months ago i couldn't go into walmart and used to climb or to target or into a pizza hut now you can and so you must social where it is right yeah well what made the difference well it's a special application you know so that you have you know about occasion go through
the gift wrap you know now you can purchase to. get certificates from the stores with decline it just takes of a second and they use a gift certificate in the store that's one step removed but it allows you to stay completely away from government money and just buy what you need use and because that's a huge step in other parts of the world because they are enormously valuable in argentina for example you can pay all your rants and buy homes and cars and everything crime where big clues really popular is where the money has really really failed government money and surely fails americans have the kind of luxury of having a relatively stable currency you know the dollar and in terms of all the bad currencies in the world is probably one of the least bad for now so we see less demand but in other places like like latin america and africa former soviet republics and china all over the far east big claim is growing in popularity all the time because because transactions fees are minimal and being nonexistence it's
super secure you know and you can really trade. just the property in a matter of seconds or just a couple of clicks well by bypassing the entire system. that was jeffrey tucker the executive editor of laissez faire books. all right welcome to the daily deal margaret margaret how you are having me all right let's jump into our first story according to the washington post america is starting to really leverage itself that's the implication of new data out monday afternoon that shows that consumer credit cards auto loans student loans basically
every form of debt other than mortgages is rising by leaps and bounds now according to the federal reserve muddly with monthly report consumer debt rose nineteen point six billion dollars in may and eight point three percent annual rate so if that rate continues to increase and sustain it what made extra two hundred thirty five billion dollars what do you what do you see this trend as meaning you know bob i think that neil irwin article he is right unfortunately because we are a consumer driven economy i wish you weren't right unfortunately is you know that two hundred thirty five billion it's being pumped back into the u.s. economy of course it's debt but it means jobs are very candy and out with that you know i mean i'm just calling it like i see it bob you have you have to have jobs in this economy and consumer we're in a consumer driven market you know we have to have jobs where those jobs are coming from recently they're coming from housing and who's blowing this latest housing bubble it's the federal reserve it's only because we're keeping interest rates artificially low over this long period of time that we're seeing this latest rise
in consumer spending and it's not a good thing you know why because look these rates are going to go up and they're not going to be able to pay off people are not going to be able to pay off their debts they're going to default and we're going to have an. other d. leveraging cycle like we saw in two thousand and eight but you're not getting any argument from me there i think my grandmother could do a better job at managing the fat and bernanke no question about it but we're in this whole already going to be a grandmother you know i mean i said sure this is terrible my lady if she would be better at this because it's simple we don't spend money you don't have to import as we know we're already in a hole the only medicine that we have is to keep spending or we're going to collapse like we did in two thousand ok but if i what point is that stuff if the only medicine we have is keep spending and spending and spending ultimately you're going to prolong the pain you're going to have a greater crash than you would have otherwise if you just take your medicine right now we could leverage our debt i mean you're the we are looking here i mean you know i don't i don't know if i'm assuming that term deal leveraging it's a company that attempts to download its banks they get rid of their debt they say well it's ok a deliberate jane cycle is when you have for instance
a seven hundred trillion dollars derivatives market that just collapses in and of itself people default on their loans people default on other things corporates default on their and you know what it causes a cascading reaction throughout the entire economy and if it's not managed properly and otherwise in other words if it's inflated too quickly and too fast in the first place it can't be managed and that's the ultimate problem here ok bob so neal's not right what should we be doing i mean i mean we've got to spend i'm telling you until it's the system of the need to change not the fact that people are getting to debt to sustain that middle class you have to have debt there's just no way around it i don't see it that way i think you can have debt but it has to be accompanied by wealth creation and that's one of the things that we haven't seen i'm going to reiterate this point we have not seen true wealth creation over the last four or five years it's been artificial g.d.p. is gamed ok price inflation really is overstated and i think we're understated rather so i think we're going to see a greater pain in the end just because of all of this ok well economist richard
wolfe my colleague pointed out he calls this a crisis of capitalism but until you fix the system i'm sorry my friend i mean we don't have to. we don't have a capitalistic system we have crony capitalism you might be right on that you might be right in that ok so let's take the argument to different places should we be paying higher wages maybe not so concerned with the data we get a minimum wage you know those people in other i mean come on what's the ideal minimum wage a million dollars two million dollars to twenty an hour i think would be ok getting sick i've just found another central planning there are parts that i think you're smarter than the rest of us are i hope you're right but i do think we're thank you for joining me on the door here if you want to weigh in on today's show be sure to like us on facebook at facebook dot com slash prime interest you can fall of margaret maggie how r.t. and you can follow me at english p.d.i. thank you for joining my question.
guess what it was a vagabond day here at prime interest first we hitched a ride on the live board juggernaut landed on wall street only to find the real action was in the brits and ireland after donning some google glasses a new york city with reggie middleton we looked across the atlantic to break down that particular partnership not liking what we saw we took a trip in our car down i ninety five to d.c. right here to spy on our favorite chairman seems he's up to his old tricks finally we hiked the mountain of consumer debt with margaret howell only to find a pool of untenable obligations well guess what our legs are tired so we're going to go rest now thanks for watching and make sure to come back tomorrow from everyone here a prime interest have a great night. they
all told me my language as well but i will only react to situations i have read the reports and let you know please you know i will leave them to the state department to comment on your latter point of the month to save lives if mr k.l.a. car is on the docket. they get no more weasel words when you have a direct question be prepared for a change when you have to punch be ready for a battle print out a speech and down the street into costs. what defines a country's success. faceless figures of economic growth. for
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we have to get used to each other i think is a little disappointed about the bus because we're still spending a lot of money i mean i spend it shouldn't worry about that right now i don't think so goes a great artist but i don't think it's economy and if you don't like the painting you just don't give anything. right on the scene. first street. and i think the church. on our reporters twitter. and instagram. will be in the know. on.
live from the r t news center at ten egyptian prosecutors issue an arrest warrant for the muslim brotherhood's leader after monday's deadly clashes rival political factions failed to agree on a transition plan leaving the country and dead. the syrian chemical weapons controversy takes a new twist as russia's foreign minister says that compelling evidence implicating the rebel forces should be made public now while also questioning u.s. efforts to put the blame on the syrian regime. and with edward snowden widely expected to receive political asylum in venezuela solidarity for the fugitive whistleblowers growing across latin america r.t. speaks to ecuador's foreign minister about what's behind this growing support.
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