as you know the federal reserve is a relatively recent institution in. erica i say i mean it's the past hundred years in between friends and between what is a hundred years it was founded in one thousand nine hundred eighteen having been inaccurate in one thousand and thirteen so from the dawn of the constitutional history of america seventeen eighty nine to nineteen thirteen with some exceptions having to do with the earlier. variants on central banking in this country it was without a central bank and so what how do we fix interest rates where there was a supply of credit or savings and the demand for credit and savings. and the marketplace tended to the setting of interest rates rather well the period one thousand nine hundred to one hundred thirteen for example in the authority of the terrific and universally esteemed financial economist charles good heart was perhaps the most successful and one of the most successful periods in american finance interest rates were stable bank failures few. i think the earnings strong nothing like the systemic collap

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i've got to hit you about a low legerdemain grammar and syntax and word usage the word assets in this case and first a debt so whenever you see in the paper has got one hundred nineteen billion dollars in assets you know that's its assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strength training that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the us federal reserve was propping up decks here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse that's true june

reserve venture a limited federal reserve just because a central bank goes so many useful functions and it them in the biggest when it's liquidity function this central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only in issued by the government and banks are always want more money back and they put out there in other words they create their principal but they don't create the interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create money oh just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money our fear of money is ok given that it's very very is controlled the supply of money is controlled. versus let's say a gold standard that would be more or less imply however as

reserve then to eliminate the federal reserve just because a central bank does serve many useful functions and it i mean the biggest when it's looks like liquidity function this central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and banks are always want more money back and they put out there in other words they create their principal but they don't create the interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create money flow just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money our fear of money is ok given that it's very very. controlled the supply of money is controlled. versus let's say a gold standard or that would be more or less i

hold with the federal reserve. those are the main directions that i could cite. >> got ya. in the little time i have left, i want to make clear from my earlier comments that i'm not blaming the fed for our inability in congress to work out our fiscal situation. what i'm saying is that as dysfunctional as this body is, and it is, there's no question, the laws of economics still apply to us. and if you participate in a process that allows us to borrow money at less than 2%, which is what our effective rate was last year, i can assure that you we will do it. i've heard those discussions within my own party, within the congress as a whole. why not borrow money, now it's so cheap, you'd be stupid not to. and i assure you that there are other moral hazards out there other than just your impact on the banking community. there is a morale hazard as it applies to this institution as well. what effectively the government is facing right now is a teaser rate. we're able to borrow so much money right now at a reduced rate, the

reserve then to eliminate the federal reserve just because a central bank goes so many useful functions and it them in the biggest when it's conflicts liquidity function this central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and the banks are always want more money back and they get out there in other words they create their principal but they don't create interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create the money flow just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money or fee up money is ok given that it's very very it's controlled the supply of money is controlled. versus let's say a gold standard that would be a moral us

reserve than to eliminate the federal reserve just because a central bank does serve many useful functions and it i mean the biggest one is the liquidity function the central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and the banks are always want more money back and they put out there in other words they create the principal but they don't create the interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create money flow just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money our fear of money is ok given that it's very very. controlled the supply of money is controlled. versus let's say a gold standard or that would be more or less implied ho

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i got to hit you about a low legerdemain of grammar and syntax and word usage the word assets in this case refers to debt so whenever you see in the paper that says that one hundred eighteen billion dollars in assets no bets it's assets for the bankers because it's that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strength training but has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the us federal reserve was propping up decks here for so long is that dexie is crucial they say to mean a simple bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse. that's true just the sam

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i got to hip you about a low legerdemain of grammar and syntax and word usage the word assets in this case and first a debt so whenever you see in the paper has got one hundred nineteen billion dollars in assets you know that's it's assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strange thing that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the u.s. federal reserve was propping up decks here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse. that's true jim t

reserve then to eliminate the federal reserve just because a central bank does serve many useful functions and it demi the biggest one is the liquidity function the central bank is there to allow the money supply to expand as long as we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and the banks are always want more my. back and they put out there in other words they create the principle but they don't create the interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create money flow just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money our fear of money is ok given that it's very very. controlled the supply of money is controlled. versus let's say a gold standard or that would be more or less implied however

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i got to hit you about a low legerdemain of grammar and syntax and word usage the word assets in this case refers to debt so whenever you see in the paper decks you've got one hundred nineteen billion dollars in assets you know that's it's assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that is worth anything it's debt pulled out of their strange thing that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the us federal reserve was propping up decks here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse that's true jan

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i've got to hit you about a low legerdemain of grammar and syntax and word usage the word assets in this case are first in debt so whenever you see in the paper decks you've got one hundred nineteen billion dollars in assets you know that's it's assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strange thing that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the us federal reserve was propping up decks here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse. that's

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i've got to hit you about a little legerdemain of grammar and syntax and word usage the word assets in this case refers to debt so whenever you see in the paper that she has got one hundred eighteen billion dollars in assets now about it's assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strange thing that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the u.s. federal reserve was propping up debts here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse. that's tru

reserve then to eliminate the federal reserve just because a central bank does so many useful functions and it them in the biggest glenister liquidity function this central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and banks are always want more money back and they put out there in other words they create their principal but they don't create interest necessary to pay off their loans you have to have an expanding money supply or somebody is going to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create the money flow just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money or money is ok given that it's very very is controlled the supply of money is controlled. versus let's say a gold standard that would be a moral us implied however as you'

the federal reserve lots that to happen. -- the federal reserve left that to happen. there is a long lead time, but in 1970, that turns into a roaring inflation. by the end of the 1970's, our financial system is under severe stress. the total reserve steps in, drive the prime rate to 21%. they have been doing it for 70 years and suddenly they're paying 16% interest. not a good formula. the few that may get to that crisis, they get some help from the regulators. the fslic cost the taxpayer $300 billion. they had to go work for the fdic. none of them ever got fired. the regulators of the savings- and-loan industry encouraged to hedge their home mortgage portfolio. here is the dilemma. you cannot have lunch a home mortgage. when interest rates started to fall, they prepaid their mortgage. the regulators decided that you could not make money in home mortgages. they forced the savings and loans to get into the commercial real-estate lending business. shopping centers, office buildings, commercial property. they helped create a commercial real-estate bubble that burst in th

i am in front of the federal reserve building on market street. you can see some of the protesters out here. these protesters have occupied san francisco for about a week. 30-40 of them out here. many stay overnight. some joined the processors after the sun comes up. most of them are against the corporations and what they are saying, the 1% hurting the 99%. for the most part, they say that they will remain out here. you talk about the wall street protests, these are in support of that protest. it has been quiet out here. if there are barricades set up to make sure they do not try to get into the federal reserve building. yesterday, protesters attempted to set up a permanent encampment with tents, but other than that it has been pretty quiet. >> there are also protest going on in san jose and there could be a showdown at the san jose city hall. we are keeping our eyes on that because of this occupy movement. craig skalar tells us, the city does not want demonstrators pitching tents overnight any longer. if >> you can see the occupy san jose tens on

reserve then to eliminate the federal reserve just because a central bank goes to serve many years so functions and them in the biggest when it's looks like liquidity function central bank is there to allow the money supply to expand its line is we have a system where banks create our money basically all of our money is created by banks in the form of loans except for coins which are the only thing issued by the government and banks are always want more money back and they put out there in other words they create their principal but they don't create the interest necessary to pay off their loans you have to have an expanding money supply or somebody has to go bankrupt which is what's happening in the e.u. because they don't allow their central banks to actually create money oh just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money or money is ok given that it's very very it's controlled the supply of money is controlled. versus let's say a gold standard one that would be a moral us implied how

reserve funds from the us federal reserve they were keeping it afloat in two thousand and eight well folks i've got to hit you about a low legerdemain of grammar and syntax and word usage the word assets in this case refers to debt so whenever you see in the paper dexie has got one hundred nineteen billion dollars in assets no that's its assets for the bankers because it's debt that they're collecting rent from you in the form of austerity measures but it's not an asset in the sense that it's worth anything it's debt pulled out of their strength training that has an interest bearing coupon that you've got to pay for through austerity measures yes it's an asset for them but it's a pain for you now the reason why the us federal reserve was propping up decks here for so long is that dexie is crucial they say to the municipal bond market so it holds the assets of many municipal bonds including new york city on its books look the pirates off the somali coast are critical for the economy of somalia that's true if you remove the pirates the economy in somalia would collapse. that's true jim

he wants to abolish most federal agencies including the irs and the federal reserve and returned with monetary -- our monetary system to something akin to the gold standard. he has proposed a constitutional amendment that would abolish personal income, state and give texas, and for that the government from engaging in business in competition with the private sector. back in 2002, he was among the six republicans who voted against giving president george w. bush authority to use military force in iraq. he says the resolution was unconstitutional because it transferred the right to transport -- to declare war from congress to the executive branch. he has remained a consistent critic of war in foreign lands. in 2010, and barney frank, voted to trim the deficit. he takes a dim view of foreign aid generally opposes u.s. support for the international monetary fund and world trade organization and generally favors the u.s. withdrawal from the united nations. some have said our speakers libertarian beliefs make him an erratic ally of other gop members. he says marriage is the union of one man

will tran is live at the federal reserve building with more on this story. well >> we are one hour away from the march at the federal building. right now it is pretty quiet. people are upset about corporate greed, the claim that 1 percent of the wealth is controlling 99% of the citizens in america. they are breaking the law according to the city up san francisco because they do not have a permit. so far police officers are not doing anything once the march begins who knows what will happen. we are going to get reaction from them as to why they are continuing to do this. >>justine: this afternoon occupy walnut creek will take over the downtown area. it plans a protest in front of the bank of america on main street. >>mark: doubt futures continued to rise ahead of the opening bell. worries about european debt could weigh on the market. it looks like we are off to a better start than yesterday after one of the quietest days in months with the dow closing down 17 points. investigators were spending hours waiting to see what would happen in slovakia. they wound u

easing aimed at the mortgage market one of the federal reserve governors in a speech said this i believe we should move back toward the top of the list of options for a large scale purchase of additional mortgage backed securities known as n.b.'s something the f o m c first of november of two thousand and eight and then in greater amounts beginning in march of two thousand and nine and order to provide more support to mortgage lending and housing markets so in theory what could this do this could help underwater home mortgage homeowners refinance it could help americans buy homes by lowering the interest rates on mortgages but in reality would that happen and who would this really serve is the bigger question is this about lifting the stock market or propping up big investors all over the world who hold mortgage backed securities and can the fed have been afford it take a look at the fed's balance sheet how it is grown over the years as a result of q e one and q e t two you can see how much it's taken on since two thousand and eight since the financial crisis it's pretty staggering here

the federal reserve. there are long term challenges. my hope for today's hearing is to move beyond the partisan politics that sometimes colors discussions about the federal reserve and what it should or should not do. instead, we should focus on the economic challenges and the potential solutions to the problems. we share a belief that congress is to share action to bolster the economy and help americans . growing fast enough or adding enough jobs to make significant progress. just by way of example, 40 million americans are unemployed. 6 million are jobless. 43 certification have been out of work for six months or more. private sector job creation, which had been well above 200,000 a month fell to less than 20,000 in august. they are reeling as they lay off workers to meet balance the budget requirements. payrolls have been slashed. the unemployment rate after declining to 7.4% in may has claimed that -- climbed back. economic indicators have been weakening. contagion is spreading to other parts of the w

the federal reserve meets tomorrow. what can we expect tomorrow? more importantly what can we expect out of the fed in the new year to revive the economy. >> i i don't think the federal reserve will do anything tomorrow. it has done things over the last couple of meetings that they won't adjust rates until 2013 and widing long term securities to bring down long term interest rates. i don't expect anything tomorrow. if the economy tends to weaken next year we will get quantitative easing. i don't expect it but wouldn't rule it out. the economy isn't home free yet. >> susie: alright.another impore are watching this week is the october jobs report. that comes out on friday. what do you expect from that? also as we talked about at the beginning of the conversation 1.4 million jobs to be created in the new year. how much is that going to help, how much jobs do we need to create to really boost the economy. >> good wh question. i think we will create a hundred thousand jobs in october. that's the key number on friday. for context we need 125 to 1,250,000

the federal reserve market committee released the minutes from the meeting in september. they showed policymakers considered even more quantitative easing with a third round of bond purchases, although they did stop short of doing it. the minutes also showed members' favorite steps to increase the feds' transparency. hedge funds founder raj rajada wrrks at was sentenced to ten years for insider trading. a professor at the university of chicago's booth school of business has a singular insight into how the fed works, what it does and what it can do. he joins me right now. welcome to the program. >> good to be here. >> federal reserve chairman ben bernanke recently called the unemployment rate a national crisis. has the fed run out of things to do? >> i think it's very important to make a distinction between what the fed can and cannot do. people talk about whether it's run out of ammunition or not. it's always had ammunition to affect inflation rate, affect deflation and affect interest rates. that's what they've done to try to lower the short rate and also lower the long

the not so subtle point-- the federal reserve can't do it all. darren gersh, "nightly business report," washington. >> susie: stocks mount a late- day turnaround on fresh hopes europe can shore up its banks. the dow rose 153 points, rebounding from a loss of 200 points earlier in the session. the nasdaq added 69 points, or 3%, and the s&p 500 gained 24, despite dipping into bear market territory earlier in the day. >> tom: still ahead-- we go "beyond the scoreboard" with the owner of the miami dolphins. we ask steve ross about the business of football and repairing the economy. >> susie: kraft foods is going on a diet. the company is cutting the fat in its mac and cheese and putting more fiber in wheat thins. chairman and c.e.o. irene rosenfeld is trying to whip kraft into shape before its grocery and snack businesses separate next year. she talked to diane eastabrook about the challenges of building a healthier business in an unhealthy economy. >> taking a recess from the executive suite, kraft chairman and c.e.o. irene rosenfeld plays with stud

reserve doesn't you have to understand this morning who in your view which has understand the federal reserve was established who milk banks money that is their goal with a view is they increase the money supply but outstrips the amount of savings that bailed the loan so they do it is they increase in counterfeiting your currency they drop interest rates or now when you go to the bank you money you're saving in the bank you get almost nothing yet what they're also doing when they create and counterfeit money is creating inflation so long term interest rates rise short term interest rates are new look to lower that. sure you'll curb or you'll spread that's where your banks make money so they have increasing margin and a lot more money to loan out and they end power and bankrupt the middle class you know when real incomes for your discretionary purchasing power drops and take into the extreme guess what the middle class can only afford the basic necessities they don't have any discretionary purchasing power and that means the economy thought there's and the g.d.p. drugs and unemployment

they allow them to bar dollars from the federal reserve. they can exchange euros for there to currencies. a central bank worked to contain episodes of financial instability. recent events have shown the importance of diffusing threats to financial stability before they can inflict damage on the financial system and the economy. it illustrated the sombanks. among these benefits are the information sharing between supervisors and the suppliers. the ability to avoid substantial overlap in making a financial stability policy. it is about economic and financial conditions. appreciation of these benefits can lead to larger roles. the bank of england received expanded powers and responsibilities for financial responsibility. it will identify risks. the newly created risk borne includes the governors of the european central banks. in united states, the federal reserve has room oriented the supervisory operations to incorporate a broader system in focus. it has been assigned new responsibilities including the supervisory authority over institutions

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance take japan it's got two hundred percent debt to g.d.p. that's gross debt not net but he pushed up interest rates from one percent to three percent while japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates and the most interesting recent example is ben bernanke and the twist but basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing for a month he would move it refinancing he wants to create greater capacity for the federal governme

the fact is the congress and federal reserve and the u.s. treasury, i suggested tonight bernanke ought to be fired. geithner ought to be fired. people are mad about the economy the right place to focus is washington, washington is a destroyer of jobs in this country. worse under obama but the general underlying bureaucracy, the general regulatory pattern has been building for a long time and killing jobs in america. >> greta: and any of your other candidates say tonight that surprised you? >> there was a lot of interesting conversation. i think that whether it was rick santorum was a very good proposal on manufacturing. her man cain was endlessly funny. i didn't realize but i forgotten he had served in the federal reserve bank of cans wand as on the board in -- in kansas city of how much he knows and he and ron paul are going to have conversations about the federal reserve system. ron paul was very happy tonight to have all the conversations about bernanke and the federal reserve and the need to audit the federal reserve which is an issue he

the federal reserve act created the federal reserve system and established two objectives for the nation's monetary policy. maximum employment and stable growth. stable prices i should say. this is what is commonly referred to as the fed's dual mandate. maximum employment and stable prices. the federal reserve's recent announcement that it will ease monetary policy further is consistent with that dual mandate. the federal open market committee said it will purchase $400 billion of long-term treasury securities and pay for those securities by selling in equal amount of shorter term government debt. in the so-called operation twist, the fed is not expanding its portfolio but shifting its composition so that the average maturity of its holdings is longer. the goal of the fed's actions to bring down long-term interest rates further reducing borrowing costs for businesses and consumers, sparking additional economic activity and ultimately boosting employment. the fed also affirmed that it will continue to pay close attention to inflation and inflation expectations. some in washington have calle

well and others, over the federal reserve. i did file legislation last april to change the structure of the federal reserve open market committee which votes to set interest rates and it now consists of the seven appointees to the federal reserve board of governors who are appointed by the president and confirmed by the senate. people selected in that democratic way. but with 14-year terms to guarantee some independent -- independence, so they are presidentialy pointed, they are confirmed by the senate but they serve for 14 years so there is not, presumably, the chance for one president to get everybody. that's built in some staggered terms there. but there are also five votes that are cast by regional presidents of the federal reserve banks. these five people, it's on a rotating basis, the new york president always gets it, four others out of the remaining ones go on periodically, these are people helping set the most important public policy in america. monetary policy, interest rates. but they come with no -- nothing remotel

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low is not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system or the banking system became literally insolvent and now what we see is a concerted effort by the central banks to keep interest rates low because they know for instance take japan for two. percent debt to g.d.p. that's gross debt not net but he put up interest rates for one percent to three percent or japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates are the most interesting recent examples then been at the end the twist basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing move which are financing he wants to create greater capacity for the federal government to basically spend more money i want to st

we're lucky here in that the federal reserve has a clear mandate to set interest rates for the us then we have a unified federal bond market so in that sense the fed can act and is allowed to act it's different in europe where the e.c.b. is not authorized to necessarily set italian interest rates with the german interest rates that's not in their mandate and that's the problem they have we have a unified market so the fed can act we have more firepower here to solve these problems but in the long run we both face you know ultimately too big of a national debt well will harm us ok i want to get to the debt but you said that over there can act in the u.s. my question becomes many think the u.s. is going into a recession economic data comes out again and again showing that we have a jobs crisis and bernanke he calls it a national crisis so should the federal reserve be doing more well i actually think they should they have to mandate under law one is not from employment which they say is unemployment rate of around five percent and the other is stable prices which they say is an inflation

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance take japan it's got two hundred percent debt to g.d.p. that's gross debt not net but he pushed up interest rates from one percent to three percent while japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates now the most interesting recent example is ben bernanke and the twist are basically what he's doing is pulling down the long into he's saying all sorts of things like mortgage refinancing they would move it refinancing he wants to create greater capacity for the federal government to bas

they are expected to start around 7:00 this morning at the federal reserve building on market. expect street closures. we'll follow it for the morning commute. we'll let you know what's going on there. in the meantime for now, heading into san francisco, it is really quiet. there are still no metering lights at the bay bridge so you are looking good all across the upper deck. there is no sign of any slowing on any sensors anywhere and there was some overnight roadwork on the upper deck, that's been picked up, as well. and on the lower deck. westbound 92, 13 or 14 minutes between hayward and the peninsula. eastbound 4 a full freeway closure, should be pick up the cones shortly by 5:30 when the detour signs are expected to be removed. westbound highway 4 looks great through pittsburg, concord towards 242. there is no delay at all this morning. and for mass transit riders, great news here. systemwide bart is on time. bart, ace, muni and caltrain and your ferries all are on schedule. remember kcbs once you do hit the roads. they're our radio partners. and you can find them at 740-a

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low is not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance take japan it's got two hundred percent debt to g.d.p. that's gross debt not net but he pushed up interest rates from one percent to three percent while japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates now the most interesting recent example is ben bernanke and the twist are basically what he's doing is pulling down the long into he's saying all sorts of things like mortgage refinancing they would move it refinancing he wants to create greater capacity for the federal government to basic

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance take japan it's got two hundred percent debt to g.d.p. that's gross debt not net but he pushed up interest rates from one percent to three percent or japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates now the most interesting recent example is ben bernanke and the twist basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing they would move it refinancing he wants to create greater capacity for the federal government to basically s

technique where the federal reserve will secretly purchase whatever the bank is selling in order to bail them out, and here's what he said about it. he said, listen. these can be valuable, even when the zero bound is not relevant, referring to the interest rates, rock bottom rates at 0% which is screwing over the retirees and other people, and he said i expect to see increasing use of such tools in the future. and before we go any further, one of the proudest things that i've done, believe it or not, senator sanders, since i've been at msnbc is a segment explaining how this works, and if you'll indulge me i want for everybody's benefit to play exactly what exactly these secret fed tools are and what you're basically doing it to help us solve it. i'm the bank and suddenly holding a pile of garbage. i'm going to bring it on to the table, but the economy can't function if i can't get money for my garbage so the federal reserve, using taxpayer money basically becomes a goodwill store for the bank. we now want to know what's in this garbage bag because this garbage bag represents the ris

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well down to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to answer the banking system of the banking system became literally insolvent and now what we see is a concerted effort by the central banks to keep interest rates low because they know for instance take japan where two hundred percent debt to g.d.p. that's gross did not name but he pushed up interest rates from one percent to three percent which is pan basically goes out the back door quick it wouldn't blink so everybody actually has to keep interest rates and the most interesting recent example has been at the end the twist basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing that would move into refinancing he wants to create greater capacity for the federal government to basically spend m

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well now to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance a japan is going to. percent debt to g.d.p. that's gross not net but he pushed up interest rates from one percent to three percent for japan basically goes out the back door quick it wouldn't blink so everybody actually has to keep interest rates and the most interesting recent example is ben bernanke and the twist but basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing for a month he would move his refinancing he wants to create greater capacity for the federal government to basically spen

reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low is not just perpetuating the ponzi well down to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became literally insolvent and now what we're seeing is a concerted effort by the central banks to keep interest rates low because they know for instance take japan it's got two hundred percent debt to g.d.p. that's gross debt not net but if you push up interest rates from one percent to three percent or japan basically goes out the back door quicker than you can blink so everybody actually has to keep interest rates and the most interesting recent example is ben bernanke and the twist basically what he's doing is pulling down the long into he saying all sorts of things like mortgage refinancing or monthly would move which refinancing he wants to create greater capacity for the federal government to ba