tv Prime Interest RT November 5, 2013 8:30pm-9:01pm EST
happy friday i marinate and this is going bust and here are some of the stories are tracking for you today. and i say leaks are hurting tech companies but now those companies are bringing their monetary mike to capitol hill we'll tell you all about it and starbucks maybe having to work here but its shares are trading and we'll bring you the latest buzz on this coffee company and taipei's get excited your favorite store just had a spectacular i.p.o. so strong in fact that you might not be able to conceal yourself plus we'll be talking with richard abilene about quantitative easing in japan and whether the country's experiences can teach us anything about huey's states and who needs love when you have money we've got a report about a new online dating site that uses bribery to make matches yeah finally in today's big deal we discussed big testing companies facing big data issues but now let's get to the.
nowadays it seems like not a day goes by without some new revelation about the national security agency's spying program and it's not just hurting u.s. credibility it's hurting the technology companies that anchor at the economic growth now as we told you on tuesday the u.s. cloud computing industry could lose anywhere from twenty two to thirty five billion dollars that's according to the information technology and innovation foundation now as you can see from this chart right here that we have competition from other countries is threatening us dominance in the cloud computing market space and that was even before this latest spying program came into late it's called muscular and in a nutshell the n.s.a.
works with its british counterparts to intercept cables from yahoo and google and their data centers then it takes that information and brings it to fort meade to. knology companies like yahoo google facebook and others derive their value from data that they collect on their users and if their users stop providing data because they don't trust these companies their bottom lines take a hit now six of the biggest internet companies sent letters to capitol hill yesterday in support of the usa freedom act which is a reform bill that would stop bulk data collection reform fice the courts and add transparency to the n.s.a. they wrote quote we are. congress in addressing these critical reforms that would provide much needed transparency and help rebuild the trust of internet users around the world now these companies have also stepped up their lobbying efforts on capitol hill apple spent thirty two percent more on lobbyist this quarter than last wall facebook spent twenty eight percent more money talks on capitol hill and as
always we'll be keeping an eye on this for you and the money and where it's going and big or should i say venti news coming from starbucks today the coffee company claims that twenty thirteen has been its best year its fourth fiscal quarter was up thirteen percent year over year and china asia pacific region was up eight percent even as chinese media outlets criticize starbucks for squeezing higher margins out of its chinese operations and here's the thing if you're not a coffee drinker have no worries starbucks has something for you as well welcome teavana not nirvana teavana a tivo are without a coffee bean in sight now t. bone is flagship store opened on madison avenue in manhattan and the company hopes to take advantage of the growing popularity of tea in the united states and abroad and just a heads up teavana prices will be even higher than starbucks so break out your wallets if you want some however wall street was have been nothing i mean nothing
to do with scart starbucks is good news the company's twenty fourteen profit forecast fell short of analysts expectations and shares dropped and finally consumers don't just buy things they need stuff to put those things in enter the container store it i.p.o. this morning on the new york stock exchange and it looks like wall street is sweet on closet organizer's shares in the i.p.o. were priced at eighteen dollars and only midway through trading the stock nearly doubled to thirty six dollars so all you taipei's out there call your broker this one's on the rise and you should be excited those are just some of your headlines for this friday november first twenty thirteen. now the governor of japan has claimed that quantitative easing is working and japan's economic recovery will continue however not everyone agrees that a market demand in constant central bank stimulus is a good thing joining me from midland michigan to discuss this is richard edlin
professor of economics at norwood university hello there richard pleasure to be with you now first up japan aims to jump start its economy with a one point four trillion dollars quantitative easing easing program and this will double the country's money supply i want to start by asking you do you think this is just too drastic a move in an effort to combat deflation. well i think it's a room that's been trying to reach out before by the japanese government and it is basically field and i don't have much confidence that this one will succeed any better. drums practically since the early one nine hundred eighty s. they've had several stimulus in terms of what we now call quantitative easing near zero rates of interest terms to stimulate domestic demand through these monetary expansionary policies and it is not worked before and i'm not confident will work you know what that kind of leads to my next question because besides this massive
trillion dollar cumi program is there anything else the job of the japanese central bank can do to curb the current rate of deflation. basically not there there's two reasons that it deflation can occur it could be because the money supply is decreasing and there's less money in people's pockets to spend on goods and services and that clearly is not the case quite the opposite in terms of the expansionary policies over the last many years and the other reason there can be falling prices is because of the economy falling into a recession and then the difficulty in the necessity for the economy to on the supply side structurally readjust to readapt itself to a post boom era the problem in japan is that they had followed a policy before the one nine hundred eighty s. of what's called industrial policy government business partnerships trying to manipulate what got invested on whom where jobs are created and finally that went bust and rather than accepting that that was not workable they have basically
continued for years without any real structural change that is easing up and making the markets market based more competitive allowing a more flexible labor market rather than basically making it very difficult for employers to shed workers more for work is to accept more adaptive working conditions both in terms of job descriptions and wages where worker mobility between sectors of the economy so in a sense this entire time they have been caught in the imbalance of disequilibrium destroyed a relationship that is still lingering for over twenty years now and just throwing money at it will not will not solve the problem in other words it's not a money demand spending problem it is a supply side readjustment problem that they have just for years now been unwilling to face the facts so now it begs the question what can we draw here in the u.s. from japan's twenty year to reprogram what should we learn from it well i think that the lessons we can draw and we should be drawing from our own experiences over
the last four or five years is that just printing a bunch of money at the federal reserve has done. practically four trillion dollars added to the banking system by the federal reserve does not assure an economic recovery it's been a lot of money sloshing in the economy or at least part of it that has created this use recovery of the stock market but the fact is that growth has been sluggish unemployment is amazingly high in terms of the records of other post-war recession and the recoveries from them so clearly printing money is not the solution to this in our case the fact is that people are concerned about the uncertainties of what government is doing what will taxes be in the future all these additional uncertainties about national health care the fact that the government is unwilling and has a hard time adjusting its own getting its own fiscal house in order a lot of people are concerned about the fact that we now have over seventeen trillion dollars of accumulated federal government debt and the question is how is
this all ever going to end because the congressional budget office already estimates that by about twenty twenty twenty twenty two that debt even with supposedly questioning is going to still be in the neighborhood of of between around twenty two twenty two trillion dollars and then should i lead on i want to get this then. i'm sorry to interrupt you but i want to get this in real quick before run out of time what are some of the major differences you touched on this before but the major differences between the labor markets in japan compared to the labor market here in iraq i think that's an important point right you see this is sort of an illusion about that while they've been in a recession they haven't had high unemployment and that's because their system in the post-war period has been based on the sort of agreement between labor and management that jobs will never be shed that work is will not be expected to show degrees of mobility to adjust to new employment with changing market conditions so so in fact if you shed that artificial job stability away japan would have had
significantly unemployment higher. well i meant well by keeping it hidden by keeping people in jobs in jobs in a place that the market conditions really would not justify is just prolonging the agony of the economy adjusting to a proper balancing between markets and between employment now i have one final question i want to get in here has japan made any attempt to make itself kind of look more business friendly to multinational corporations in the form of tax incentives for setting up shop there or anything like that. yes they have tried to do a bit of that but the fact is that the religious government policies are planning to through to raise consumer taxes from twenty percent to eight percent to eventually ten percent next year they are promising some cuts through to businesses but it's also all directed to business. tax cuts so the question is who for foreign investor goes in there what can he expect in terms of how these manipulations by the
government may work for him or way work against him and the uncertainties are used to deliver these overtures on the economy there will even get out of the doldrums looking ahead richard i'm sorry to cut you off but thank you so much for joining us that was richard ebeling professor of economics at northwood university thank you. coming up it's friday night and if you're looking for a last minute date we might have a solution for you r t correspondent ana stasia churkin reports on a new dating say that uses bribery to win hearts and secure dates that should be interesting and remember the stress that you went through way back in high school framing for your s.a.t.'s well you better hope now more than ever and that those late night study sessions paid off because your s.a.t. and a.c.t scores are up for sale true story we'll tell you all about it in today's big deal stay tuned it's all coming up.
for sale it's like two active camps at guantanamo where patients are forced by the months after the first right never turned world's attention to the place that summed up the gulag of our times. i'm. a society. i'm sick corporation mind. you. i'm the bad guy. about money and i think that actually makes our politicians writing the laws and regulations that i care about that. they're just too what is it a guy. that. crosstalk
correspondent ana stasia churkin i reports on a new dating application for cell phones that uses economic incentives to help people score dates. fire one human to date another even if they aren't really feeling it there's a handful of online dating websites out there that promise the attention of the opposite sex at a click of a button but one service says it's really time to shake things up by trying a new approach they want to go out welcome to the world of carrot dates that that's right carry take back the power the character dating app turns your food into a personal matchmaker a cell phone app that has those who sign up dangle so-called carrots in front of other members they're interested in the carrots actually mean gifts or bribes to tempt the object of your affection into going on a date when it be dyno or dessert flowers chocolates travel or shopping the choice is yours i want the new i pad air so you know i'll go on
a date with someone who will give me an i pad air i'll do anything while the idea behind this app is more convincing to some than others this dating application promises that a bribe is actually the best way to make anyone. male or female do exactly what you want dangle the right carrot and you've got a date while the mastermind behind the idea says women look presents my fault own this kind of thinking has been causing a stir for now there are twenty preconfigured gifts that members can approach each other with it all for a long draining. day out at the spa shopping for a tank of gas or even posted. to this list will eventually become limitless allowing users to offer up anything to get a date and in addition to paying for a meal or surgery members offering carrots must purchase credits on the app in order to communicate with people who accept their bribes downloading the app is free and its first week of existence the app has already been downloaded forty
thousand times and a staggering twenty five thousand bribes have already been offered and stacy churkin are pretty we'll. joining me now making her debut on a star thank you for being here honest us a great package by the way and i want to start i want to start off by asking you now the online dating industry is a two billion dollar a year industry should the old guard sites like e harmony and match you know the ones that our parents could have used should they be threatened by these new like the dated carrot dating safe that you showed in your package or do you think that there's enough room in the market marketplace for all of these new products well aaron certainly competition is getting steep for all the sites out there because certainly people are not getting what they're looking for and one of the more traditional websites they will look for the next best thing and i think it largely depends on what the customers and the users of these websites are looking for because some of the more traditional ones you know certainly promising big success and more stable long term relationships are great
for people for looking for that but if somebody is looking for something more tricky and risky it's it's crazier websites like this one that are very likely to attract people regardless of the major criticism they're receiving i mean we heard that as many as forty thousand downloads were made just in this first week and you know people who are looking for a day at the spa for example i mean i can certainly use one would be more prone to moving to something like that now is the new dating site you know they're like you said they're coming up all over the place we have to endure a grinder ok cupid and they're kind of funny and it seems like people are just loving them but the question is do these little or sites then pose a threat to each other in the unit you have the established ones can the littler ones fight for market share of the market space. well you know erin we just actually before i came on we had like a five minute brainstorming session in our newsroom and it turns out that first of all our newsroom is scarily familiar with so many different types of websites but
it's just funny how there are so many differently narrowly focused websites out there i mean apart from this kerry dating this particular same founder has that what's your price web site where sugar daddies can look for sugar babies they're seeking arrangement where beautiful people can get people to pay for their trips it would return for some kind of relationships the grinder untender that you mentioned you know christian mingle find the gods match for you there's a gluten free singles dot com website so you know for the healthier. for you know jewish people specifically for me to even for people who are more into you know maybe somebody who likes to dress up as some kind of pat and of course you know ashley madison dot com for the cheating spouses so there's just such a huge huge market out there it seems and people whatever kink you're into these days it seems like there's something out there for you the gluten one that just really kind of cracks me up i love that gluten. critics of these sites they say
that it cheapens dating all together or that it's sexist in a lot of ways how does the site's founder of this site respond to these critiques. well you know we heard him say that women love presidents like dogs love beloved barns we do have to say that he actually admitted to having gotten in trouble for that particular statement but you know he says that people want to be offered something more interesting these days that women and because of this kind of crazy competitive market because there are so many singles out there and this particular site premise is that you know if you're not exactly the most gorgeous smartest successful person out there it might be a little harder so maybe trying something like this would not be the worst idea and that's what he's saying just give it a try and see what happens and certainly yes there's lots of criticism about this website as well as you know really anything out there can be criticized these days but the founder says give it a try see what happens now women drive men to go on dates with themselves via this
up yeah absolutely yeah it's it works both ways men can bribe women women can bribe men absolutely and i think that applies to most of these websites that have come out recently that there is no more you know if you're offering money or you're offering a day at the spa or a date or whatever it really doesn't matter if you're male or female any more honest and i thank you so much we have to have you back again very very soon. it's time now for today's big deal. in today's big deal let's talk about the s.a.t. an eighty eight seat clear that in take this one a.c.t college test scores now of high schoolers graduating and twenty thirteen more than three point four million
took one of the two standardized tests i took the s.a.t.'s companies behind these tests the college board and a.c.t incorporated are doing more than just evaluating our students' minds now a new lawsuit alleges that they're also selling their personal data without permission to discuss this i'm joined by the one the only rachel herz yes how are you going to know i want to start off by asking you what does this lawsuit allege so a woman who took the test in chicago alleges that the test without her permission the companies sold off her name. to me her social security number to a number of different buyers for thirty three cents apiece each student so in addition to suing herself for damages she's trying to create a class action lawsuit that would allow anyone who's taken either these tests since two thousand and three to hop on board so you know thirty three cents per student doesn't seem like a lot until you're talking about more than three million students and they could be sold off to a ton of different buyers so this is big money in addition to the money that these
test companies are already making by administering the test now i got asked if she also sued you have a conversation via her great. you know i don't i'm just close exactly was. i think maybe she wouldn't be suing if she got a better school or you know shouldn't get into college so she's got to figure out some way that i'm going to do here in the year and yeah because i always think it would look to do this instead of you know academic there you go. out there and right the question in fact the question is any of our data see any more i mean i think that what we've learned from the n.s.a. shows the things that we put into private companies are often being looked at by the government but also the a lot of these private companies are selling off this information so i personally don't think that much of our data is secure anymore but another thing is that a lot of times you have to look at those terms and conditions but if you looked at all of the terms and conditions you would never have any time to use any of the products they're trying to use so entailed i think those terms and conditions get a little bit less jargon filled this is going to keep happening i mean i i have no
idea if i signed up to even let the s.a.t. give off my social security number when i took that i'm sure i mean i'm very sure that we didn't know you i mean it turns out we didn't do it anyway allegedly allegedly allegedly now you know one of the alternatives to standardized testing that you have most colleges require. yes and if you don't want to take them because you don't want your information sold i don't not only your score but your number i mean that's a big deal that's very can are there any alternatives that are things that you can take me if you will. there are a lot of colleges that were saying listen you don't have to take the s.a.t.'s the more good instead you can take the easy to use and that's why actually for the first time the e.c. has become more popular than s.a.t. which is causing the s.a.t. to kind of revaluate exactly how it's planning on kind of sculpting the test which is clear that this isn't about aptitude or achievement this is about them making money if they're concerned about their test market share that's really kind of incredible and you know it's interesting because my european friends they're the
ones who take the it's seems to be able in the midwest and it's very well. and another thing that's fascinating but it is i do know and many colleges are saying you don't have to take the s.a.t.'s it's not necessarily a good indicator of achievement but you have to take a couple of s.c.t. twos so not just you know working through the college board it's just a matter of if you're going to take like the a.p. history s.a.t. test two or the actual as they teach us it seems like it's going to be really difficult to get away from the standardized testing service in high schools as well i mean middle schools high schools elementary schools are also administering a ton of standardized testing and regardless of what you take they're going to take and still sell your kind of story now on how to ride a ride and i don't know another story on our radar amazon has its sights set on india that's quite a bit of market but it's facing a couple of stumbling blocks along the way now the majority of indians don't own a credit card and they've never shopped online rachel is this something that should be a concern amazon going into the marketplace yeah i think that's something they're
a little worried about in addition to the fact that there's not a lot of infrastructure in terms of creating you know timely delivery which they're promising the promising free and timely delivery how they're actually going to do that is going to be interesting to see what these roads are it's also a lot of bureaucracy to deal with and a ton of corruption you have to grease the wheels with bribery in order to get almost anything done in this country so yeah they're pretty concerned but they seem to see a lot of opportunities for growth there are a lot of consulting agencies who are saying that growth could actually increase one hundred fold in the next ten years from something around sixty million to seven hundred billion so this is. i mean there's there's definitely a potential for growth not as much so in places like china where they're also where amazon is also setting its sights and seeing you know they're a slightly bigger populous with better roads you know. like that with better lives are important if you are you want timely delivery to the minute routes around her up to how you're going to deliver those goods unless you're doing it you know at some place in california or doing with those talk to a drones and there i mean amazon could be delivering you know books by drone books
by drone. you should trademark our trademark and you can see it is on the right you heard our you know it also makes you wonder if amazon so bullish on this marketplace what are they going to do maybe become a credit card issuer do you get like it why should they be so positive given the fact that people in the market space that they're entering which looks bad today they might have something where you know even if a minority of the people in india have credit cards perhaps they're going for that half of the marketplace you know the people who have credit cards and the people who have online shop before i put the venn diagram has those. doing quite heavily and that's probably the people that they're interested in makes a lot of sense rachel as always thank you beautiful and say beautiful lady we love it that's all for now but you can see all segments featured in today's show on you tube at youtube dot com slash boom bust archie we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our teeth from all of us here at boom bust thanks for watching and i'll see you on monday.
larry king now to a mob scene is great it's iron mike tyson an event of the real deal holyfield life difficult for me and i've been to pain people and get high ratings with living life pretty hard why did you buy a fifth already have a wall why does your by the end it turned out to be bigger than life where there is going everywhere i went people are paying her house are great they made you more famous than you gave us would have been even the five times this one i think so plus how do you think the would have come out of you continued to fight before with the one i hope i want to party with a bit of rain again. it's all next on larry king now.