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tv   [untitled]    February 3, 2014 4:30pm-5:01pm EST

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so there i marinate it this is boom bust and these are the stories that we're tracking for you today. coming out gerald celente author blogger and publisher of the trends journal is live on today's show you won't want to miss what yes to say about the u.s. economy plus the latest on the herbalife ackman pyramid drama this week the f.t.c. is being forced to look at allegations that the company is one big old pyramid scheme but tell you all about it coming right up and add harrison joins me in today's big deal to talk about canada finally and from the u.s. to build a bridge to detroit her story you will want to miss it and it all starts right now .
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they are talking about the emerging markets crisis and the u.s. economy however i want to lead off with the latest drama surrounding nutritional supplement distributor herbalife now the head of the federal trade commission if ramirez has agreed to meet with minority and consumer activists to hear their concerns about the pyramid scheme excuse me and choosing a company i meant to say company herbalife it's a company now herbalife the pyramid drama it's already the stuff of legends thanks to an impromptu televised verbal brawl between investors bill ackman and carl icahn now after man has been shorting herbalife and calling the company a pyramid scheme for well over a year however color coral icon along with some other big name hedge fund honchos
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like george soros and download they've taken the other side of the bet and done much much better. herbalife shares were up six percent in early trading monday after the company said it increased its share repurchase program from five hundred million to one point five billion dollars herbalife considers itself a multilevel marketer and strongly denies allegations that it's a pyramid scheme the f.t.c. says quote a company can be considered a pyramid scheme if it's just repeaters make more money from or prevent them from selling products to consumers outside the network senator ed markey sent a letter sent a letter to the f.t.c. last week asking them to investigate herbalife and according to brant wilkes executive director of the league of united latin american citizens more than a dozen activists from around the country will be meeting with ramirez in washington on wednesday now the ramirez meeting is just the latest in efforts by critics of herbalife to pressure regulators into investigating the company but what
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i want to know is this what is the holdup seriously as to see while the love for herbalife why serious investors are telling us it's a pyramid scheme kind of like serious investors were telling us that bernie madoff's company was also a pyramid scheme or a ponzi scheme totally different right. why is the government in no rush to look into these things could perhaps have to do with their preoccupation with keeping up asset prices i'm just saying serious people are making serious allegations and it's time to seriously and best. well there you have it in all the way. let's start right here in america with the latest economic and financial news now
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the federal reserve wants to start tapering its asset purchase program in december that started already rather in december and this is even before the new fed chair janet yellen had a chance to get in her seat yeah true story about mercy today they're now in the wake of the fed's tapering yields in the u.s. have gone down not up and one would have expected them to do the opposite thing an emerging market crisis is being talked about everywhere and everyone's talking about it so the question is what is going on here our next guest gerald a celeb day there is author and trend forecaster extraordinaire plus publisher of the trends journal is here with us to make sense of these latest events now welcome back to the show gerald first and foremost what do you know the fed has tapered twice now that's the first question but then well the first statement rather but were you surprised that the fed decided it was going to taper its q.e. program in december instead of in january when it announced back in december. i thought they would hold the announcement until after the christmas holiday not to
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rattle the markets. so in effect they really did they made the announcement but they didn't begin the first round alan of tapering until of course january and now of course they announced another round of tapering but no we had forecasts they were going to do it we took bernanke the add his word when they announced it late may and june until twenty thirteen they have to stop this game the only reason the global equity markets have grown is because of all the cheap money flowing in and it's not only the united states it's the c b it's china they're all pumping up their economies with cheap dough now interest rates have not not gone up why do you think this is despite the tapering. i expect them to go up i believe they're going to have to go up you can't keep interest rates at zero for so long and not have
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them because the cost of money is going to be more expensive and it's already happening in the emerging markets i mean you see what's going on in turkey they said for four months they weren't going to raise interest rates and i don't know the exact number where it went along something like maybe it was at seven point five and all of a sudden you know twelve percent i mean they really jacked it up again i'm not sure the exact number was much higher though than is normally done and they've done the same thing in india same thing in. south africa they're doing it all over now aaron you don't have to be a genius to figure this one out your commies are going down business stinks you've got to run on your money and now you're going to raise interest rates to protect your currency perfect you'll slow down the b. and you'll make a bad situation much worse the same thing is going to have to happen in the united
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states now i want to move on to the i.s.i. manufacturing report which came out just today and show that the u.s. is on the verge of a fall and manufacturing activity now today it was fifty one point three down from fifty six point five in december and this weakness it came as a big surprise to many and you and i when we spoke back in november you indicated that you saw problems for the u.s. by march do you still feel this way oh yeah oh yeah by march and it's already happy if you look at the global equity markets i don't know let me change the story i've been watching you know the the mainstream business story so i'll say to you you know aaron i think this is a buying opportunity out there the fundamentals of the economy is sound you know we need confidence and that's what they're all say you look at the. numbers what happened with the christmas holiday sales it was the worst christmas since we went back two thousand and eight you're looking at the employment numbers that came out
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in december well you know that let's fit get about that only seven thousand four thousand jobs were created and then again the tapering is the only reason the con to be has been sustained everybody in the business knows it is because of the cheap money they funneled into the system that only went to the equity markets you know the numbers what is it eighty five people eighty five people who have more money then half the world's population this is the greatest ugh no one's ever seen anything like this in the world with this kind of cheap money has been pumped in it's carried now do you think the economy will fail without fed stimulus that's the next question. it's failed with fed stimulus you know i have a story here from the new york times they call themselves the paper of record i finally finally call them the toilet paper of record or to use my old bronx dialect
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the terrilyn paper of record the middle class is steadily eroding just ask the business world front page story asks the business world hey how about asking the real world you know what's going on in everybody's life at the extremely cold winter people are making decision am i going to eat am i going to heat my home look at the numbers that have the real numbers of the people that are out of work at a fall and out of the out of the employment data scheme so they don't count them as unemployed anymore when we lose three hundred forty seven thousand people and now they bring the employment rate down it is all over your unemployment soli it's six point seven percent i mean this is this is this is unheard of so in the real world when you look at median household income it's below one thousand nine hundred ninety nine levels there is no recovery the fed the tapering is going to make
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a bad situation worse there is panic on the streets they're rolling out every shill that they can and to say things are fine this is a buying opportunity and by the way they pull the same scheme when bernanke he announced the blueprint for tapering back in june all of a sudden the markets are diving then they rolled out one cat after another from the brilliant larry summers right up and down to the jamie legs dying right there at the sachs gang one after another now speaking of panic on the street just today u.s. secretary of state john kerry told us senators that obama's softer syria policy is collapsing and that a tougher approach it may be needed are we being prepared for war as a means of distracting us from the downturn in the economy what do you think. i've
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heard about this the years when all else fails they take you to a war you know i have the that the top trends of twenty thirteen year ago the top one was war. they do this all the time you have sociopaths and and psychopaths in charge i don't say that as a throwaway line they're going to get tougher with syria what what strategy they going to use of the iraq strategy brilliant oh how about the afghan strategy now that was a winner oh i got one for you how about a time limited scope limited kinetic ad she will call it the beautiful job they did in libya that steve stabilize the area and cause the civil war you know i'm an american i want to make this one hundred percent clear i believe in what this country was founded upon and the founding fathers among them general eisenhower or general washington
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a real man that fought not like these chicken hawks with their big mouths and never for to day in their lives at his farewell address he tells the american people no foreign entanglements could you imagine kerry or obama or bush or the clintons going to george washington and say hey joy you're full of baloney i know what's best and the rest of you founding fathers you don't know what's good for this country either don't you know it's kind of unbelievable i know i could not and i could not see that but carol don't go anywhere we love you we want to stick around but we have to take a quick break but if you stick around to out there in t.v. land because when we come back more with gerald celente plus in today's big deal ed harris and i discussed the dodgin land deal going on right now between the u.s. and canada you won't want to miss it but as we head to a quick break here's
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a look at some of today's closing numbers that the bell stick around.
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fans are forced. to. look at the finish line of the marathon. with. her mother.
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we're back now with more from publisher of the trends journal jelled salon to gerald i want to dive right into right now the feds tapering of asset purchases has brought imbalances to the emerging market it's brought them to light actually why do you think we're starting to have an emerging market crisis today. well what happened was aaron you were getting money very cheaply and then you bring it to emerging market you get higher interest rates on it and it's easier to invest that there so it's a hot money is to carry trade so all of this hot money flowed into the emerging markets and now when they announce that tapering that hot money is not going to flow in that's why it's all flowing out and that's why they're losing in the emerging markets there again this thing was pumped up it was you mentioned bernie made off earlier on i mean we could call you know maybe bertie made off and ben bernanke you know maybe they were cousins something because that's all this was you
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know a nother form of making something up with nothing to substantiate it so that's why the emerging markets is suffering it's a very simple formula by the way if the united states and europe aren't buying then china vietnam indonesia they're not making things if they're not making things then all of these other countries like whether it's australia shell a brazil bolivia all these natural resource rich countries they're not selling anything so that's why i'm say it is whole thing was pumped up it's a fraud it's the greatest monetary fraud in world history no one no one anywhere any time any place could show a comparison of anything that was done by the like this again in the world and by the way this whole federal reserve that's
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a scam in itself i talked about the founding fathers all most of the elections in all of the eighteen hundreds which to prohibit a central bank. for him to go over the system and they did it this is a private organization everybody knows that you know the people say the federal reserve is federal is federal express this is the flight crew now jerrold first and foremost i got to tell you got to learn to form an opinion here and really. this is not god i think so but i want to i want to actually move on when the when the fed which as you say is a private institution and they have made it themselves an issue when the fed started the fed and central banks from other developed economies they dropped the rates to record lows and cheap money then flowed into emerging markets at that time brazil's finance minister talked of a currency war was that was the first time we heard mumblings now the money is streaming out and investors are yanking money from emerging market investment funds
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that's what's happening today question is are we having a currency war today. different than the one he was talking about because now they're trying to protect their currency is well it's not the currency war that man taiko was really referring to but yes it is a currency war it's some aspect in the sense that they have to raise their interest rates to protect their currency is but again we i guess you could look at. the currency war would be with japan with the abbaye nomics brilliant scheme again you get as i said they did the same thing all over the world you know jumping literally trillions of yen into the system to pump it up increasing the money supply so what did it do well again the only ones that benefited from it are the equity markets the equity market went up fifty seven percent but then since it it saw in december
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now is quote officially in bear market territory so they tried to depreciate the value of the yen so they could export more products that's the kind of currency war that might take i was talking about gerald the year you're basically writing my questions here thank you so much you guys mine i was going to bring up japan next now i want to ask you did the japanese then start the latest round of currency wars which is having such a dramatic impact on the emerging markets today is that their fault that if it's not ours. it's it's really the mob it's the money junkies fault it's the banking scheme and they're all just trying to play the game within it and again everything that abbay nomics has done has not created the economy that he promised and by the way as i say when all else fails they take you
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to war look how they keep instigating the war talk with china and japan you heard at the davos meeting banging the war drum you saw what he did he went to the shrine where they have walk rebuttals barry to give them another you know shot they privatized the art they bought the iowans that are it spewed and that of course china has retaliated so again these are all things annulling policies and what they do is they then bang the drum for nationalism now you've talked about america as descending into mussolini style corporatism can you provide some examples that exemplify this for words this is not capitalism for words proved it too big to fail in capitalism is no such thing how do we bail out the corporations the big
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banks financial institutions industries. by definition applies amo mussa levy the merger of state and corporate powers it's a multi national takeover at every level you were talking before about hedge funds private equity groups vulture capitalists this did not exist when i was a young man everything has been deregulated so put all the powers into the corporation oh i mention it again this isn't you know this is an opinion this is a fact who was the guy that created the too big to fail movement oh that was. henri paul said yes yes where was he from all the goldman. goldman sachs oh who was the guy that put in motion the deregulation of the killing the glass steagall act
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that would have prevented the bankers are becoming the bandits they they they became a wasn't. what's his name the guy was also from goldman sachs and find another guy you know it's like you know there's a really didn't know there's gratian and they've escaped you know exactly what i like. anyway it's the goldman sachs it's who's the head of the who's the head of the european central bank drug managing director of goldman sachs and there you have one after another who's the head of the bag of the english mark. carney by the way is the abbreviation for carnival he's also former goldman sachs guy and it's not only goldman your ex it's all of the bags gerald i'm sorry to interrupt you but we're running out of time i'm getting yelled at to to go but you have to come back and we love hearing from you your always entertaining and always insightful that was gerald celebs an author blogger and publisher of the trends journal time now
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for today's big deal. and harrison joins me now to talk to god he deals specifically municipal ones now here's what's happening in muni land these days now in detroit where we just recently saw the largest bankruptcy in u.s. history the federal government is going to buy land but nothing u.s. federal government has it because median federal government is doing all of the buying and apparently the canadian government is going to start buying land and tried to make way for the u.s. side of a new bridge linking canada to the u.s. now the move is intended to circumvent opponents of the project. put an end to delays caused by us federal government's hold up and allocating money for the project now there were some i think commercials just last night during the super bowl touting detroit is just as a great city or
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a great city to be and now canada is buying into the city of potentially buying condemned properties in a ghost town like area of the trade ed good or bad news for the city of detroit what do you say what i think it's good news for detroit in a way as you were saying it's a ghost town the area you know that they're buying live in an area that is a ghost you know it used to have as many as thirty thousand people now there are only three thousand people that are in that particular area and so they're buying up but here's the problem on their foreign government. who apparently. from the reports that i've seen they're condemning or they're trying to get people who are actually resident in the in the in their homes they're trying to get their homes condemned so that they can take them so that everyone is on board with this it was so when you were talking about the opponent you know those people who actually are living in homes in the area and a foreign government is going to somehow forcibly remove them i find that very
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bizarre illegal if you will round you know it also begs the question this bridge is going to create jobs they tend to do that construction projects massive ones shouldn't detroit be kind of excited you would think that they would be excited especially given the they were the largest bankruptcy. in the in the midst of a bond world so you would expect that it's going to bring more canadians over to shop in detroit or in detroit suburbs and that's going to actually create jobs even beyond the construction period now i want to move on from detroit and move to puerto rico now this is pretty incredible in puerto rico the word is the country is preparing to offer investors some two billion dollars of debt in the coming weeks now the interesting bit is that the debt. did you have as much as ten percent and since interest from puerto rico puerto rican bonds are triple tax exempt meaning they're exempt from local state and federal taxes pretty good that's fifteen
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percent for the kind of high net worth investors that likeness will bonds and is puerto rico just tax haven i'm just going to go straight there is that what's going on though it does seem that way because basically you know we're talking about fifteen percent of the that's coming due in puerto rico if you can get this money basically from this huge tax hike and as you were saying it used to be exempt because it was a tax haven now they're going to relinquish this. fifteen percent of their annual budgets going to come from doing that and it's not even been ruled upon by the i.r.s. to actually be legal so. it's basically a tax yes because the federal government knows that you know there's a fix you know that they would have to you know bail out puerto rico. they got this money from the from the company so these companies are paying for what used to be a tax does this deal suggest that there are some serious problems with the state of
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affairs in puerto rico today definitely you know you have fourteen percent unemployment and you know without this potential deal. reneges on the tax exemption they'd probably be defaulting on some of the bonds and the interesting bit is that they're reading investment grade right right yeah they're best as you can get but so is every it's not junk so was lehman in the time of the collapse i don't know i was reading agents always trust them that's all the time for now and you're fantastic as always but you can see also humans featured in today's show on you tube at you tube dot com slash boom bust artie wessel love hearing from you so please check out our facebook page facebook dot com slash boom bust our t. hausa tweet us at erin aid at edward and it's from all of us here from bust thank you for watching and see you next time shall i.
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i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question. new york london. the whole world is a. true hero of the original one but the one down the end there are further to hang up the courts out there live at the end of the street another one the more transparent society gets the money or the pot the tears become we see military and state and police forces mobilized against people who blend into the city who inhabit the city the more people trust electronic devices the more defenseless
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the. fear that it is a thousand ways. coming up on r t a dark secret buried just off the coast of new york part of island is where many have been laid to rest in mass graves including the homeless the poor and even infants birth by prison inmates will take up the history that. just because you're paranoid doesn't mean that they're not after you the old saying rings true as a florida school district upsets parents by keeping biometric data on students this is a group of hackers files a permanent complaint against the german government for assisting the n.s.a. more on that coming up and how much did it cost to build a guantanamo bay detention facility well it's a question that the obama administration refuses to answer now a federal court is being asked to dismiss a lawsuit from seat.


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