awaken and commit itself to some sort of populist or democratic social vision. is that happening now with occupy wall street is an important question. and i think we should talk about it afterwards in the q&a. my point is what if it turns out if the wool is the eyes? the so-called average citizen really does want as janis joplin famously put it, a mercedes-benz. and probably not much else. that he or she is grateful to the corporations for supplying us with oceans of consumer goods and to the pentagon for protecting us from those awful arabs lurking in the middle east. and the possibility them the possibly for fundamental change. to be quite small. for what would be called, what we call for is a set of different institution in a very different type of culture. personally i doubt there's much chance of the. america is after all what it is. >> you can watch this and other programs online at booktv.org.

>> next, kevin freeman argues that a financial terrorist network brought down our economy in 2008, and says that wall street and the federal government allowed it to happen. this is a little over an hour. >> hey, i really appreciate everybody, all of them come all the friends, and all the new people that i haven't met coming out and visiting. i'm just going to share just briefly about my book, and then i will take questions. and when we get to questions, if you have a question i'm going to ask that you raise your hand so that we can get you on c-span has joined us and we'll get you on camera and get the question answered. can you hear me? everybody in the bank? well, i wrote a book, and it's titled "secret weapon." the basis of this book is the reality that we are in the midst of a war.

and i don't mean the iran war. i don't mean the iraq war. i mean the global economic war. i'm going to dig a little bit about the history, and i will give you some facts to support my thesis, and then we will take questions and discuss it. but in 1999, there were two colonels in the people's liberation army. to senior colonels. these two colonels were charged with one idea. how to make the 21st century the china centric was how do we turn what is looking like an american centric into a chinese into? we will have to go on the way-back machine to get a real feel for that because you've got to think back to what things were like in the year 2000. in year 2000, the office of management and budget put out a report that said by 2010 we will have paid off all federal debt. you realize we are $16 trillion

in federal debt today. but in year 2000, the omb said in 10 years will pay off all federal debt. we were the kings of the world. our military budget was nine times the military budget of the chinese, and our military was far and away superior. that's why these two chinese girls were charged with how do we beat the united states. because there's no possible way, our military budget was about 10% of their entire gdp in the year 2000. it was nighttime their military budget. they couldn't compete and they knew it. they're fully aware they didn't have the technology, the capability to win a military conflict to if you read this book, unrestricted warfare, which they publish in 1999, you'll see that they had no concept of how they could win a tank to tank, plane to plane, missile-to-missile battle against america. they have seen what we done in

the gulf war. they seem we take in the fourth largest standing army in the world and apart from the three larger armies, the greatest fighting force in history of the planet to that date under saddam hussein, and we showed them out of kuwait in a matter of days. really a matter of hours. they recognize our military superiority. they also recognize our economic superiority. our economy was more than three times as big as the chinese economy. we were going to pay off our debt. our stock market was hitting new all time highs. or a couching things that i was about 12,000, not pepfar from where it is here now, 12 years later. they saw that we were vastly superior nation in every single respect. and they said to be america we can't do it traditionally. will have to use unrestricted warfare. this was published by the pla press in the 1999. it was brought about by the cia

and translated to english, and this is a copy that was printed in panama that i have. and what they basically said is you can't beat a superb article. we were the only superpower in the world. we broke the soviet union, won the cold war, everything was working in our favor. so how did they say that they could accomplish it? i'm just going to read a very quick passage. financial warfare is the number one means of unrestricted warfare. it means in which a country is subjugated without a drop of blood being spilled, means entering and subverting 19 stock markets and many putting the value of a targeted currency. think about that. this is their means of warfare. this is the chinese effort to beat the united states. what's happened since then? you see on the cover of this the picture that they chose to put on a book published in 1999 is the twin towers in flames. why? because if you read the book you

will see that the chinese author suggested there was a guy named osama bin laden that was the prototype terrorist that could probably be encouraged to attack the twin has. i'm not suggesting the chinese had anything to do with it. i am suggesting bin laden got a copy of this book and he read the master plan. and he followed it. why would the twin towers targeted as opposed to the super bowl? this is the first all sunday. you could do 1000 people pretty easily flying into the super bowl. using the means i did, they could have accomplished that. they got into the pentagon. do think they get into the pentagon and not into the super bowl? now we do all the screen, everybody takes their shoes off and no box cutters are allowed on planes and so forth. they chose the twin towers not to kill the most people. they chose them because they were and economic targets with the intention of bringing down the american economy. and, in fact, osama bin laden said we know the cracks in the

western financial system like we know the lines in her own hand. they attack the twin towers following this book and this structure. al qaeda has continued the. i don't know if you realize it, it didn't make much press. they just busted a couple opportunity in london attempting to blow up the london stock exchange. there's a massive plot. the intention all along has been to attack the economy. there's another hero of this book, one a mention already, osama bin laden. the second one is a man that is mentioned, and i think i have his book year. george soros. now, i'm not saying this but the chinese authors say when you look at what george source as a college in 1999, who is to say that he is not a financial terrorist? which is an interesting quote from the chinese. let me see if i can find that -- they basically say when the

history of warfare is written from a 21st century, the most interesting chapter will be the chapter on financial warfare. and the prototypes subject is that is george soros. what we know about george soros? he is credited with banking the brink of england. is them who broke the bank of in the. he is credited with causing a raid against the british pound and making a billion dollars in the trade. we know that. he came out publicly and said i am sure into town and i'm going to make profit when it breaks. and it. it broke and he may profit. he was also accused in the late 90s by mohammed who was the prime minister of malaysia for having both broken the malaysian ring get and caused the asian currency crisis. i don't have the data on the. he didn't come out and said he did that but he was accused of that by mohammed who went on to describe was being used against malaysia. there were financial weapons

being waged. that's the thesis of my book, which i don't have a copy of it up here. may i borrow one? "secret weapon." in 2008, as an investment manager, i was watching our stock market implode. i got a call from a buddy who worked for wells fargo, he said have you ever thought that the markets are collapsing on september 11, 2008 with the attack on lehman brothers? when you look at what happened to lehman brothers and the new look at what happened to the british pound and you look at what happened to the asian currency crisis and you read this book "unrestricted warfare" and you read this book, the crash of 2008, you realize what took place was a bear raid. a bear raid a wall street term referencing using financial securities to destroy a target company. that's what happened to lehman brothers and aig and merrill

lynch, goldman sachs and bear stearns, fannie mae and freddie mac. big attacks on them. so i saw this beginning to happen. my friend tipped me to a. i did some research. i shared my thoughts with the pentagon, and they hired me to write a report, which i did, and that is the basis for my book, "secret weapon." and what i believe happened, and i documented, is that interest outside the united states, and a list all the suspects, the usual suspects, venezuela, iran, sharia compliant funds, russia, china, and i explain each of their motives and why they would attack the united states. and what they would accomplish from it. than i should and means that data available for them at the time and that show the opportunity that we presented them with failing to regulate credit default swaps with over regarding something sent under regulating other things. and leaving our system vulnerable.

that's what secret weapon talked about and describes a three-phase attack. a ramp up in oil prices where they drove the price of oil $50 a barrel to $150 a barrel in the matter of 18 months. you don't think that hurt our economy? i show the second phase where the driver attacked our stock market using their rates. by the way, george soros made $1 million profit in the fourth quarter of 2008 in his hedge fund. which is interesting that he made his first billion when he attacked the british pound, and the next billion was when our market collapsed in 2008. initial phase three which is an attack on sovereign wealth, sovereign nations and attack on their currencies. and that's what we're seeing happening in europe right now, and let me take them if you see what's happening in greece, if we don't do something soon, the united states will be next. so that's the basis, the idea of "secret weapon." i document all the research.

i shall all the cia directors and all the people that i've interviewed or briefed on this subject, you know, you know, idaho, 42 pages of notes, footnotes at the end. so if you buy the book and if you have -- ic number of have -- i'm happy to sign the books but i'm want you to understand, this must be addressed. so with that that's kind of a background. let me see, i have about 12 minutes? let me see if anybody has any questions they would like to ask. raise your hand. >> i had a question. in your book you talk a little bit about something called naked short selling. i know that recently there's been some new regulation or some people that have been charged with naked short selling. could you explain the and tells how this might play into this whole economic collapse? >> that's an excellent question. naked short selling is a secret weapon. it's a part of what was used against us. when i started writing and

researching this, the government really even denied it was a problem, initially. they said they could short selling is not really a problem. but because he wanted his. first, i will have to explain what close short selling is. naked short selling as opposed to wearing clothes when you sure as hell is regular short selling is where you borrow shares of the stock and you sell on the open market because she believed that stock is overpriced and it's going to go down. apple computer i think is around $450 a share. anybody here own any apple computer shares? there's an apple computer owner. apple computer at $450 a share, imagine if you thought the price is going down because the next iphone is not going to work, or you believe it is overpriced, or whatever. i can go to and i can borrow your apple shares and i can sell them on the stock markets and i could then wait for the price to go down, and when it went down, i the shares back and overturn

the shares i borrowed to you. does everybody understand that? did everybody get that? is borrowing shares a sunday, selling it is the price goes down, you buy them back and you turn vicious. that is totally legal but it is good for the market because it keeps bubbles from forming and it's got benefits. naked short selling is a little bit different. naked short selling is doing the same thing without borrowing the shares. so you just go, you call up your broker and you say, your broker at smith barney, morgan stanley smith barney and say i've got one shares of apple i want to sell. that's a fun. they put a sell order and they sell them. they will call you up in a couple days and say where's the shares of stock? you need to deliver those that use old, right? you sell something, you need to deliver to the buyer. in naked short selling you never deliver. it's not legal, and you shouldn't do that. what happens though is the depository trust clearing

corporation, takes the fact that you sold them, there's a buyer and they show up in the account. what have to do is have to create an iou. and that's an i owe you that i signed and you've given. at some point i'll be required to buy back the shares. that works just the same as naked short selling and this is because the person who bought the shares has in essence loaned them out to me and i have sold them. and for all is well and good, with one exception. they are becomes no limit on the amount of shares that you can naked short separate i can just keep selling. what if i sold a billion shares? just keep putting ious and. it increases the supply of the security, right, and if you increase the supply something all other things being able, what happens to the price? it goes down. also there something else. it decreases the demand for security. because when you see all that selling take place, all of a sudden people on wall street, it's different.

if barnes & noble decides what to put books on sale, 40% off for bestsellers, people will buy more of them. they don't buy less. i might buy a copy and give children. which by the way you can buy a copy of my book, "secret weapon" and give it to a friend. i recommend. but they buy more of them, not less. it works at macy's. it worked in a department store. it works in the. if gas price is cheaper, you'll buy more, not less. not in the stock market. when the price goes down on the stock market, people say i've got to get out of this dog. i cannot stand on this. i got to sell and get out now. so it actually decreases demand and increase the supply when you naked short sell. the net result of that is you have falling prices. you become self-appointed and it becomes immediately profitable, which is why we have outlawed -- object. the concept of naked shorts under your not supposed them to

do. when i first started writing the wall street people said it's not a problem. what you mean is not a problem? let's walk through this. the sec has had zero enforcement actions on naked short selling. therefore, it must be a product the sec would stop it. it's illegal, right? here's the reality. there were 5000 complaints of naked short selling and inspector general of the sec said, zero enforcement actions, only a dozen investigations or so, and they just were not enforcing the law. until, i think is january 31, i was on glenn beck program and i've been around the country and i've been talking to people about how the dangers of "secret weapon," naked short selling can guess what, they brought charges against two brothers who are naked short selling in 2006. that's good. i applaud them. congratulations sec, good job. however, if it's financial terrorism, and this is being

done by another nation to destroy our economy, by the chinese to destroy our economy, do you think we can wait six years before we bring enforcement action? the naked short selling is a secret weapon. it was used. i will give you an example. the amount of short selling on lehman brothers, the venerable investment firm founded and ran around for one plus years survived two world wars, survived great depression, and that you cleaned up its problems, they had some problems in march, february march but they clean up the problems, but i'll she was pretty decent. christopher cox was ahead of the security exchange commission's ability and find that happened with lehman brothers was a crisis of confidence. they could have survived before harvey pitt who's the former head of the sec said the massive amount of naked short selling, he said we used to call that fraud. lehman brothers that went down that was the linchpin that george soros said was the reason that the whole market crashed,

and lehman brothers the amount of short selling between 30 and 70% of the decline in the share price for lehman brothers was a direct result of naked short selling. and i would argue that the of the percentage was due to the panic of people seeing what was happening. the amount of naked short selling failed to deliver, people silently without having to stock, without borrowing the stock, just selling it outright, was 1600 times greater in the week of september 112008 and ended in three months earlier for a comparable week. that was a secret weapon. that was the two of a very. i should've been illegal. let me take another two exemptions allowing naked short selling. one exemption is named after bernie madoff to remember bernie madoff? called the made-up exemption. mr. madoff went to the sec and said when he was head of nasdaq, he said shouldn't market makers

be allowed to short, naked short selling to provide liquidity? if somebody wants to buy apple and there's no shares available, wouldn't be a good idea that we seldom the shares and then find them later? the sec said yes, and that exemption was massively abuse in 2008 by market makers. i write about all this in the book and explained all of it in detail. but basically without our knowledge we have no idea who was doing it. someone could short sell lehman brothers goes down, massive naked short so, using the native extension, destroy the company, destroy the economy. we are still living with the repercussions today. most people stock portals have not returned to the level they were four years ago. that's an economic weapon that is bring down the united states, so thank you. next question. >> how much time is left before returning to greece?

>> mr. beck asked back, and i hope 100 years. i hope to centuries. i hope never that we turn into greased. but the reality of it is, between six months and six years is my estimate if we don't make a change for when our economy would be greece like. it's important to understand that the greek economy is not going down or dying a natural death. that's what the papers will tell you, right? i was in an argument the other day, the greeks are lazy. come on, don't -- that's racist and an unnecessary statement. they are lazy and have too much social welfare, and have always called. i want to do something about greece. thanksgiving 2009, greece was not in the headlines for being in trouble. dubai was.

thanksgiving 2009. the dubai debt scandal was going to collapse and all of us. do you hear anything more about that? because the abu dhabi stepped in, paid off the problem, paper did over, covered it over and it is gone. in january 2010, the soros fund and a couple of other hedge funds called a meeting in new york and said where are going to make money next? i know this because it was published in "the wall street journal" in february 2010 where they said, we are going to go to better rates and short sell. where? greece. they are interest rates in the greek interest rates then were not all that different from german interest rates or american interest rates. what the government had to pay to borrow money, well, what happened from that time until now, greek debt, to your money, they pay over 100% interest. now, do you think any nation could survive having to pay 100%

interest on borrowed money? any nation that overdue money. no. so what we're seeing increase is not a natural death. it wouldn't happen as quickly. therefore this secret weapon of short selling, you don't have to take my word for it. you can take the word of the german spy agencies and the german government, which in june 2010 called for a ban of credit default swaps and naked short selling. wall street was aghast. why would they ever banned these? they banned them as an act of survival. guess what? the sec been shortselling on our financial institutions at one point in the 2008 crush. i'm not making this up. it's just been papered over. people don't want to talk about or look at it. secret weapons, credit default swaps, naked short selling. how long do we have until we turn into greased? we could go 100 just without turning into greased if we took the appropriate steps. if we don't take the appropriate steps, six months to six years.

one morning we wake up and everything seems fine. and then we wake up one morning a few weeks later and we are just am everything is imploding. that's what happened in 2008 and that's what will happen in phase three picks i described that as face three to the economic attack in my book. and i can tell you they're already planning for it. we have got credible evidence. one of the ways you turn us into greece, you say i don't want dollars anymore. we don't trade oil in dollars but that's what iran just said. d1 irene cho? you can buy go. we don't want dollars, we don't want euros. six months to six years to any other questions? been at what types of things can we be doing to make a difference or to stop what's going on your? >> from a personal standpoint or -- >> personal and from a government standpoint. i have read the book and there's some concern things in there. >> first thing you do is read the book, and you do not so that's great.

and get copies of the book to your congressmen, senators, to anyone you know. because this is news. i have done like 200 briefings in washington. i've been called in by the fbi, i was flat out told in january of this year, the last month i was told we didn't have anything in our files on this. this is very scary to us and its credible and we haven't really been looking at this. so get copies to people back into something. spread the word as much as possible. but what do we do? there some things we can do as a nation. right now in the book you see that i talk about the middle east and china as to potential problem. i will throw rush in there by the way. one more quick storewide rush is a problem. russia in 2008 at the summer olympics a for our market collapsed before fannie and freddie went completely down, the russians approached the chinese and said let's dump our

fannie mae and freddie mac and force the u.s. to bail them out and possibly bankrupt america. he called it a disrupted skin to the chinese apparel he said said no and told hank paulson, we know this, he put in his memoirs. some people have said you can't fault the russians were getting out of a bad investment in an effort. it was a better rate on thing every. they had problems, but it wasn't just getting out of a bad investment. if that's the case it would've encouraged the chinese to do it also. okay, so what do we do? we can do, number one, recognize that this is a global economic were. that is what we're fighting right now, and economic were. i've been all through the defense department, all through justice, every place i can go think it's an economic were. the reality is that most people don't realize that. it's all in the book. to demonstrate of economic were started with the twin towers. what do we do? we are funding both sides of the

war on terror. right now, every time we fill our gas tank we are filling up oil that is keeping prices high and funding and supporting the middle east. what do we do? we can develop natural domestic energy. i don't know if it's the keystone pipeline which is canadian, which i feel great about, we need to keep our energy in this hemisphere. we need to remove the restrictions. it's a crime that some other nations control off the coast of florida or in the gulf of mexico and we are not allowed to do that. that is a crime. we should be developing domestically. boone pickens who've i had the pleasure to lago, he has a plan. i don't think that's a perfectly but i do, i like the fact he promotes all kinds of energy and get as much energy. because this plan will need a lot of energy going forward. so that's one way to do this. did you know cisco right now,

john chambers the head of cisco, he says all the time with $50 billion in cash sitting in overseas bank accounts. cisco has $50 billion in cash sitting in overseas bank accounts. he said would you change the tax also i can bring it back to the united states without losing it all to taxes? what would you do with that money? he said i will hire people, built doctors, investing countries, i will grow the economy. he's not alone. apple computer has tens of billions. into less tens of billions. there's at least a trillion dollars of money, of corporations, u.s. corporations sitting in currency and banks outside the united states. not bring it in because they're worried about our tax policy. that's a stimulus package. how many people here would feel better about than the government borrowing money from the chinese to put in our economy? [applause] right? let's bring the trillion dollar so. that's the second thing we can

do. there's other things, on regulation. do you know how much regulation -- i was talking to my brother and he said, he went to buy canned air. he had to show his driver's license to do it. i've often said that, had to show my driver's license and sign something and they are tracking me to make sure i don't buy too much sudafed. all right, i understand sudafed can be used in making illegal drugs. i get that but it is not a secret weapon that can bring down our economy. credit default swaps, warren buffett said, are financial weapons of mass destruction. they were specifically exempted by congress, completely unregulated, 100% unregulated. that's a secret weapon that we need proper regulation. when you get regulation off the back of small business and on to the financial weapons of mass destruction. that would make an enormous difference. so those are the things we can do as a public. what can we do if our government doesn't protect us?

you need to diversify your holdings. most people panic. where you put the money when you can do? you sell stocks and use of all the property and use of everything, got to get out. what you have to get? cash. what is cash? 80 u.s. dollars. i don't have a with me but i have 100 trillion in zimbabwe dollars. i am 100 trillion there. 100 trillion zimbabwe dollars worth nothing. it is worth $14 in collectors value because that's what i paid for it. it's worth nothing. u.s. dollars is just a piece of paper if we don't protect our economy. if they face the attack happened, the potential bring the u.s. dollar down, just like wheezing currencies go down in latin america, i've got $19 from why march or me. 1 million german marks. 1 million marks is what it says on it from 1933 german.

it's just a piece of paper if we don't protect our economy. you don't want to own only paper but everybody should have, everyone's situation is unique. i'm not trying to do investment advice for anyone, but everyone should have more than just cash. is it in a cd? is a in money markets? is it in u.s. treasury bills? u.s. treasury bond? those are the areas that i believe will be attacked in a phase three effective so you may want to have some hard currency. maybe some foreign currency. you may want us of precious metals, some gold and silver. you might want to have it in coined. you might want to have food, i'm not, i'm not suggesting everybody needs to run out and celebrating. i am suggesting that the rush to cash when it is banks which will return, what do you get on a cd now? nothing. the stock market, intel has $50 billion in cash, it has a 3% dividend you. maybe that's something you should have in your portfolio, something has has pricing power

that can grow through. european stocks, if you're in the right european stocks, you've not done to poorly. they have held up fairly well. what you don't want is greek bonds. then you would want american bonds. so the things is diversify. i always say this, in every talk i give the opportunity, i'm going to say i think you need to pray. you need to pray for our nation picking the deeper your phone your family and spea seek wisdom god. those are some the things you can do to protect is a. the bible is an explicit. it says in deuteronomy, it says that a nation that is under a curse will borrow from many nations in lynn to none. that sounds like america right now. i think we need to be seeking god and asking him to bless -- ronald reagan said it will. i put that in the closing words of the book, what he said was he said america needs god. god blesses us so much but we

can't ask god to continue to bless us if we just put them over on the shelf during our day-to-day living. i think that is a good point. do you have a follow-up? >> in terms of writing our congressmen, does that make a difference? what can we say? >> from her personal sampler, i would go to secretweapon.org, there's a join the movement had, and you can get educated, and then you need to go to our congressmen -- [inaudible] asking if he asserted kevin freeman, if he is right about entities willing to take -- you should write and say, protect our economy. did you know that during the 1940s, fdr created a peer of economic warfare? how many people knew that? it's in the book. did anybody know that? we disbanded it but we once had a beer of economic warfare. did you know we beat the soviet

union using economic warfare? that's how we won the cold war was economic warfare. but what happened was when the cold war ended, we lost our understanding because we separated guns. we said economics is separate. it's a global economy can we want as much quicker it is possible. i believe in free trade, but it needs to be fair. when you got a good domestic policies that match with free trade, not to be exported or taken advantage of. i believe in free trade but when he told everybody everybody to a level playing field. we need to demand this from congress. we need to right now -- you should be angry. your net worth is sharply reduced because foreign entities have attacked our economy and harmed you. i can show you what is that they're going to do but i can show you how they did. i can show you who said they're going to do it and what exactly happened. it's all in the book. any other --

>> can you tell me if you believe one of the biggest secret weapons will be gas? because i don't overnight, you talk about 49 cents a gallon a barrel the $150 a barrel, and how nobody really knows who did that. is that one of the biggest secret weapons? >> that is a secret weapon. it will come back in phase three. phase one was the wrapup of oil price. how that happened, i explained in the use of paper oil and how the futures markets were flooded with cash, much of it from the middle east. what did that do to the global economic picture? when oil is $125 a barrel, the value of opec oil and gas in the grand is worth more than all of the financial markets in the entire world of all the bonds come all the stocks for all the investment of any kind

financial. that's a huge thing. we sent one joint dollars extra overseas when oil is that high-priced. here's the problem we face in phase three. oil is priced in dollars, globally. but if nation stop accepting the u.s. dollar for oil, then dollars will go down in value relative to the oil and oil prices will go up. and so your cost at the pump is going to go from $3 to $5, and if things get really bad, $10 a gallon for gas. that will bring our economy. that will break our economy. every major recession has had an oil component to it. and people will say it's just the housing bubble that caused the collapse in 2008, just the housing bubble. really? what about the ramp up of oil prices? you don't think that had an impact? of course it had an impact. the housing bubble had an impact and i explain in the book but we

could've gotten through that had not been for the high gasoline prices and what happened. next question. spin are you available to come speak to groups? how we make an array that? >> absolutely. you can talk -- we have some team members are and you can talk to one of the team members. i love to speak to groups because i've got to get this message out. i did 200 briefings in washington with leaders. and you know what? i would rather talk to the american people because they have more understanding, a greater willingness to understand, and they also have the ability to pressure washington to do the right things. i was told flat out, now, how does this help us politically? question speak with why is congress reluctant to repatriate money from overseas? >> it's too political. it's all politics. the argument -- there are academic studies, and by the way, i want you to understand there's an enormous amount of

middle eastern money and chinese money buying academic research right now. so you will read it well, this fine institution came up with this research. okay, so academic research being used by the opposition right now that says the last time we repatriated money from overseas, it didn't produce any new jobs, it didn't really help our economy and lost tax revenue from it. now, i think that's insane. if you're guaranteed of a trillion dollars that will never see the nfa to enter the united states again, do you think that it's better for our economy or having the trillion dollars flood into the economy without any debt against it or any problems? just common sense tells you the repatriation of money is beneficial. absolutely. it doesn't add to the money supply. it doesn't change, it's not like the fed is printing new money. all it does is benefit our economy. it brings the money home. it's just the same as if you

had, for example, a lottery ticket and hold a piece of paper that says it's a lottery ticket or you cash it in and get the money. you still have the money, you just am able to use a or c. or spend it or do anything with it, which is better? having the cash or having the lottery ticket? you want the cash. so it's all political because there are people who absolutely do not want to see that money come back to the united states. they don't want to see the lower tax rate but they don't want to see the corporate break. you can't give it to the great corporation. you know what? that's the best thing we can do for our economy, cost us nothing to academic studies notwithstanding. next question. first about countries moving away from the dollar. i decided that it seemed like more friendly countries are starting to take hold of that. so south korea i think, india,

can we see more of that happening and can we survive a? >> it is phrased three. it was plain that i can show you documents going back to the russians were they said we're going to create the bric countries, we will create this as a construct, make it look like as a positive economic thing but user to undermine the united states, the user to enhance russia's position. and that's what's happened. they have been successful but in the is an ally, but they've been successful. iran so you want our oil. they need the energy. the police chief tom and i put this in my blog, you can get the block, secretweapon.org, click on the brought, it's free. the police chief of dubai was recently giving a speech, and he said we can no longer count on the united states. we have to turn to russia and

china, because the united states has become too from the with the moslem brotherhood and economically harmful to us. that's quite a statement from the police chief of dubai. south korea come you mention, stop and think for a moment about south korea. one of the greatest allies is under continuous nuclear threat who is very afraid of china through the proxy, north korea. they said we will diversify away from dollars into chinese want and chinese stocks, equities. like what she'll think they see the handwriting on the wall or have intelligence services that say this going to be an attack on the dollar. we are losing allies in the economic wars. why? because we don't even know we're in an economic war. we have got to wake america up. next question. >> am i allowed to have to?

>> sure. >> you make suggestions on what we should invest in or not, like intel, but it's valued in dollars. spent be careful here. as an investment advisor on not recommending intel pursue. i which is using that as a suggestion. it all belongs to everybody. but yes, american companies. but american companies that have sales overseas, if they actually have sales overseas and they are priced in dollars, they are actually then have an advantage in their overseas sales and they will bring back more dollars. it is a hedge in the production. so i would invest, consider investing in companies that are owned in dollars, the products in dollars and that sell overseas because they'll increase their sales from a weaker dollar. that is beneficial. but you've got to diversify. you can't put all your eggs in any one basket. certain not just in treasury bills. i wouldn't put them all in gold either.

i think it's important investment but you don't want to have everything in gold. the entire amount of gold on the planet could fill up three olympic sized swimming pools? it doesn't feel it all the way up. it's not big enough as is applied to be the global monetary system, and less the price of gold is $20,000 an ounce. you either need to be, i don't know if that's exact figure, but much identities today, you either need to believe that gold is going to skyrocket in price, which some people do, or you need to believe that we wanted something other than just gold. but gold is a hedge but if the dollar collapses, gold will go a. so will foreign currency. you can go to a canadian bank and buy certificate of deposit in canadian dollars. that's something that i talked about 10 years ago that is paid a very handsomely. it used to take a dollar 50 canadian to buy 1 dollar u.s. now it's back on peer-to-peer that is a big game. next question.

>> since 2001 when we were attacked, i had an fbi agent that led across the road from us but i said i don't feel safe going into the big arena and in the. he said it's always not been safe, you just ignore. now you do. so my question is, i'm seeing such an attack in the last two, three years on capitalism, on corporations, on people who receive -- house that always been here? where has to come from? had we just been blind to it? you have been in the know. has this been around? what do we not no? >> the theory for attacking capitalism is a necessity for attacking our economic system was written 12 years ago, but perpetrated more recently. there are two groups that want to destroy capitalism. one group of the radical

marxists, and it's scary. you go to the occupy wall street groups and to look and it is smash capitalism. there's also some really bad racist things that are said in some quarters there, too. anti-israel, anti-jewish, and actually equate the two. when the attack happened on lehman brothers, there were blog posts around the world in these two areas that loved it. ..

weapon. you all you have copies. i wrote the book and there's a review on amazon about the book that said freeman is just defending wall street and capitalism and it's built on usery interests and how wrong that is and how un-christian i am for supporting that. and if i'm a christian i'm like mr. freeman which is news for me because i've been a christian, you know, since i was 6 years old. that was news to me but it was an attack and i believe it was a hint or a suggestion that because my name is freeman and some people believe that's jewish it was a suggestion that i must be jewish and that was the basis for the argument against me. there is an element of

anticapitalism that is racist that is connected to shari'a and radical marxism. and that's why hugo chavez and mahmoud ahmadinejad from iran are buddy buddy because they both want to see capitalism go down because capitalism funds america's defenses. capitalism funds the war in our view and capitalism funds all the terrible things we do. the attack on capitalism is an attack on america, attack on our system and way of life and it's an attack on israel and jewish people. and that's happened more recently because it's become embolden and you heard george soros occupy wall street is going to turn violent and that's scary. there are people who look at the arab spring and see what happened there and they say occupy wall street and the occupy movement is the american

spring and they're predicting that we will have violence and an overthrow here. and it is -- that's why everybody has been scared of the book "secret weapon" because it tells the truth. it tells what's really happen and that's why mr. beck picked it up and talked about it. and that's why i've been on the news media 'cause i'm trying to get the word out and you can help me get the word out. next question. >> mr. freeman, could you comment on mf global and the disappearance of the segregated funds? >> yeah. >> the comment on that is outrageous. when client funds are invested in a firm, a broker-dealer firm like mf global they are to be segregated and protected and not coming hell and i don't know exactly what happened but mr. corzine's fund and he was a former governor of new jersey. he was a former senator, mr. corzine's firm did not properly care for its clients

and it looks like that there's a massive scandal there. we don't hear a lot about it because apparently he's got friends in washington, from his time and from the administration and so forth but hopefully they'll get to the bottom of it because that's real people's money, farmers' money in a lot of cases that they put and trusted in that firm and it's lost. it's like bernie madoff as a ponzi scheme, it was a scam but there's money -- here's -- people i'll lead this into an answer to a different question. nobody has asked me but people would say how could terrorists bring down our stock market and what kind of money would they have to do this? they don't have the funds to do so. well, there's a billion dollars of mf global money that disappeared but that's nothing compared to the $40 billion that was taken to -- flown to iraq federal reserve notes and flown to iraq stuck on piles and they couldn't find $40 billion or how about the $200 billion that we

found that more mar gadhafi had invested around the world. it's a scary world in which we live. farmers are getting stuck with mf global but all the money that gadhafi had and all this other money, that's working against our economy. i don't know if that answers your questions. it gets me worked occupy something that i'm worked about. yes, sir. >> i have another question, but talk a little bit about -- after the this whole wall street collapse in 2008 there was the whole reform wall street movement, okay, the administration had begun with this health care and their health care plan then the concentration was wall street. what has -- what happened, how are we better, not better and what needs to be addressed? >> the whole reform wall street movement has formed in the case of dodd-frank and a lot of other regulations. most of which were left to bureaucrats to determine how they would be implemented. page after page after page.

it's predicated -- we actually solved the problem before we knew what the problem was according to the financial crisis inquiry commission and this is the report of the fcic. the problem i see with dodd-frank it doesn't specifically address the real problems credit default swaps and so forth from the context of a means of terrorism. what we're trying to do, we're trying to catch insider traders and put them in jail six years later and naked short sellers six years after the fact how many people saw "24," the tv show "24" with that much devastating consequence we really need better ability to deal with it as a terrorist issue. and it doesn't address any of that. what it does is layer upon layer upon regulation and it makes our credit cards more expensive and there's a whole host of problems with causes. it's like when enron went down we put regulations to make

american businesses to operate instead of dealing with the real problem and that's the same problem with dodd-frank and if i might diverge for just a second on this book. this is a pretty thick book, don't you think. this is the companion in my mind to the 9/11 commission report. remember the 9/11 commission. what happened? remember that report? it came out and told us this is what happened and this is how they got the box cutters on the plane and this is how they planned it, right? the 9/11 commission report said investigated in great detail whether or not osama bin laden was short selling airline stocks before planes were flown into the trade center. and their conclusion was, we don't think so because if he'd done that, we would have found evidence of it in our very transparent market system because we can trace everything and know everything. if there was transparency in 2001, i can tell you it is gone

today. remember the flash crash, may 6th, 2010, you remember that? dow drops 900 points. i leave for lunch and by the time i get to the restaurant, the dow is down 900 points. i met with a client before i left and i met with a client when i got there and i'll tell you i had two different meetings. the first client was very happy with me, the second client was, what is going on? do you know what caused that? because the government doesn't. i can tell you a theory and i tell in the book but the government doesn't know because there's no transparency in the marketplace. how many pages in this book were devoted to determining whether or not economic terrorism played a role in the 2008 crash? 'cause this is the final report, final report on the national commission on the causes of the financial and economic crisis of the united states. how many pages in here were

dedicated? zero. now, it's not through my -- it's not through lack of my trying. i took the defense department report and i sent it to the financial crisis inquiry commission. and i asked them take a look at it and they were very interested. they said they wanted to look at it. but the problem is, when my report arrived they said we need a chain of custody that's a legitimate chain of custody. was this really funded by dod? i said, sure it was. they said how do i get a copy? i told them exactly where to get a copy and from the fdic went to the department of defense and went and got a copy. and do you know what the department of defense told them? we can't give you a copy because there's a copyright on this report. now, aide contract with the government that said i retained all of the rights to it except for any governmental purpose. and they could use it for any governmental purpose and i assumed that the fdic was a

legitimate governmental purpose. so they came to me and said we can't get it, i said, what? go back and get it. so they went back and asked again, they said again it has a copyright and i got an email that documents all this. finally, they came back a third time and said, you know, we can subpoena it 'cause we have subpoena power and how would the secretary of defense would like to testify as to the report and they said -- they called me up and said, can you take the copyright off the report so we can give it? yes. yes. here, here's a copy. i emailed them a copy in a matter of hours. i was on a plane when they called so it took a couple hours but next morning they had it. it arrived at the financial crisis inquiry commission and do you know what happened? on that day, the commission shut down because the republicans and the democrats couldn't agree on anything and so the republicans have two -- two reports in here,

two dissecting reports and the democrats have their majority report. not one word of financial terrorism. there's a whole other story beyond that and if you read the book, you'll find out how and why it was not passed to the spouse of a member of dod sitting on the commission staff. they could have given it to them a year earlier. it's in the book. it's worth reading. yes. >> which republican presidential candidate do you think understands this the best? >> you know, that's a fair question. i have friends that just recently came and got -- yesterday, said i'm going to be with rick santorum on wednesday. would you please sign a book for him? i said absolutely. i signed a book for him. i had the opportunity to brief several of the candidates that are no longer in the race on the republican side including herman cain and i got information to governor perry and i got -- and michele bachmann. but they're no longer in the

race. but they seemed to get it and begin to understand it. and hopefully santorum will and newt gingrich actually heard about my research and had one of his staffers contact me and i briefed him three times on it and he said newt gets it. and then i've heard recently -- i've not spoken with governor romney, but i've heard recently that people talking to him have been telling him about what's going on and hopefully he understands wall street and hopefully he would be able to get it. my hope is that he would be able to defend the america's interests and not wall street's interests. the funny things goldman sachs and the firms that are most under attack, they don't like what i've written because they make an awful lot of money off of the secret weapons that i've described. i like goldman sachs and i think they're important to our system. but these are problems that need to be dealt with. so hopefully governor romney -- hopefully they all get it but i

only had the opportunity to get information directly to speaker gingrich and to senator santorum and hopefully soon i'll get it to governor romney. if you know him, tell him. he needs to read the book. >> this really isn't a partisan issue, though. this really involves everybody, all of us. >> i have briefed members of the administration. i've briefed pentagon. absolutely, in fact, a copy of the book recently went to -- to the panetta family because i got families and they thought the secretary of defense might have seen this. it apparently didn't get to secretary gates. it needs to. i've not just written one. i've written -- beyond this, the pentagon apparently liked my work 'cause they came back and they asked me to be a part of the directed study on iran and i wrote the economic passages in that book, too. and i've been asked by the pentagon a couple of other times to do things. there are good people there, really good people. but they have for the most part know nothing about stock markets

and economics and currencies. they are encouraging them to start thinking in those terms. yes, it's not a partisan issue. i wish the obama administration would pick it up and run through it. it's not through lack of trying. i briefed senator lieber man's staff and so democrat and republican. >> but kind of following up on that, can you comment on whether there are people in the government or whatever following up on the marxist theme that might have a vested interest in seeing the country brought down? i mean, i know it's kind of a scary thought and i don't know how much you can comment. that's what really scares me there's people who might not want to prevent this. >> i certainly hope that's not the case. i have run into some staffers that i have suspected highly that are government staffers that i highly suspected because of the nature of their arguments

were such they indicated they'd love to see america brought down several notches, if not put into second world or third world status so i pray that's not the case, but there may be people of that belief system. yes. >> do you see a connection between companies who's been controlling american farmers and then chinese buying american farm land? >> i don't -- i've not seen a connection between monsanto and chinese purchase of american farm land. but i can tell you that food is one of the greatest problems this nation -- this world will face. he who controls the food controls the world in a sense because all of the riots in the middle east were food-related at one point and another and you can track uprisings. they generally tend to be around

food. now, i would say the way to hurt the american consumer with food would be to destroy the dollar and, therefore, food prices skyrocket and people can't afford to eat. that would be a way to do it. another way to do it would be to explode an emp over the united states of america and then, you know, our systems go down and so forth. but i don't have a direct connection on that. i don't have any knowledge. yes. >> i actually heard a sop fbi official here in dallas make the comment that we keep giving all of our technology to china to mass produce for us, that they're stealing our technology. do you speak about that at all in your book? >> absolutely. not only are they buying our technology, they are also trying to influence the patent laws in congress and i had a congressman posy who told me that's one of the great threats to america is their economic warfare by influencing patent laws but they're hacking our systems on a

regular basis and stealing technology that way. we know economic -- and you know what? they said they were going to do it in this book in 1999. they talk about cyberwarfare. they think of that -- they actually put that down below manipulating our currency or attacking our stock market but that is economic warfare. that's what i'm talking about. we're in an economic war. next question. >> everything that you are speaking about comes true, paint us the worst case scenario? what would that look like? >> well, i'm going to put the emp off the table for a second because that gets really -- really dire. >> right. >> but let's say that there's a full blown attack on the united states' currency and our sovereign credit, it looks like greece. go back and read the last year of headlines of what's happened in greece, see the riots, see

the people losing their pensions, see the people losing their jobs, see the people losing their life savings, see all of that explosion and realize that if that happened in the united states, it's over. it's over. it would be -- we would see a complete new government system. we'd probably even see a scrap the constitution effort. we would see -- if we lose our -- now, we're going to lose our reserve currency status. are we going to lose it in six months or 60 years? i will tell you when i wrote the paper for the pentagon there were experts who came and this came out in wikileaks saying the guy's nuts because we won't lose our reserve currency status for decades and we can manage the transition. not a problem. then read the lines, go to my

blog where i've documented the headlines where nations and allies are turning away from the dollar. it's happening fast. so the worst that could happen very quickly -- it happened in greece very quickly. and all of a sudden say we don't trust dollars anymore. if they stop trusting dollars, you can look at wimark, germany, in the '30s and what did that lead to? adolph hitler and world war. millions dead. that's the worst -- that's the worst and it gets bad because the military gets defunded and you know what? the chinese -- those in the chinese pla, few people realize it but according to a reputable source about a month ago there was a coup attempt in china by two senior colonels in the peoples liberation army. that's scary. why? because china is not moving aggressively enough against the united states. chinese official communist party

stance and their official publication was the biggest, best weapons we have against america are our holdings of their treasury bonds that we can dump at will. imagine waking up one morning and seeing a threat from china, we're going to take taiwan back. and if you interfere, we will dump your bonds. yeah, we will dump your bonds. phase 3, if you don't give us taiwan. what do we do then? let me tell you. we could then scream, chinese, you're terrible. what are you doing. it's wrong. it violates international law. you know what? it wouldn't because as i point out in the book, in the '50s the british didn't want to give up the suez canal and they tried to take it back from the egyptians and the british and the french were going to go in to egypt and militarily take back the suez canal and what did we say to them? by the way, if you do this, we'll stop buying british bonds and your economy will collapse.

so we highly recommend that you don't do this and they didn't do it and the egyptians have control of the suez canal as a result. all the chinese have to do is point out, hey, we're just following your lead. this is serious. it's an economic war. it's always been an economic war. but we haven't recognized it since the cold war ended. we lost our knowledge base. secret weapon is an attempt to bring that knowledge base to our government leaders and the american people. and that's why everybody needs to get the book. other questions? if there are no other questions, then i'd be happy to sign books for people. thank you very much. [applause] >> you're watching 48 hours of nonfiction authors and books on c-span2's booktv.

>> now from shreveport, louisiana, learn about shreveport's history as we visit neighborhood and business districts with with the help of our local partner comcast cable, we visit several areas. here's neil johnson on shreveport weekend here on booktv. >> >> we're down in shreveport and i love this place because it's a bright spot in our economy. it's a huge successful port that's growing great guns. they're moving things out of train, highway and water. here we are on the red river and

shreveport was founded because of the red river and had river boats coming up and down filled with the brim with copper, and lumber and supplies to build the new city and then after the trains moved in and the river boats kind of went away and then the river sort of got unnavigable. the government turned this red river turn the navigable again. we have barge tanks bringing coil steel and jet fuel from the refinery taking it to the gasoline, all kinds of things coming in and out of this mortgage and it's just -- it's exciting to be here with the power of the river. it used to be a lot shallower. it would go up and down with the weather and the seasons. with sand barge. it's a pretty steady level of

the river without dangerous sand barge so these guys can go up with their barges. shreveport like it was in the old days. we're in ledbetter heights. it used to be called the st. paul bottoms but we're looking at a shotgun house, probably a good 100-year-old shotgun house. they used to be down here by the thousands. as you can -- as we will see, the place is almost cleared out of almost everything. the neighborhood is cleared out. it was -- it was a very poverty -- very poor neighborhood but it was where a lot of people who served the

downtown here. huge history, ledbetter played a lot. this is where he lived for years. playing in what was the largest legal red light district in america. which is a whole other story. you can look it up. led belly is very famous. >> there's some shotguns. a lot of people equated those with poverty and said oh, their horrible. tear them down, but they are very historic and they were -- gave people individual homes to live in. but nobody fixed them up. one by one they were torn down and now we have a neighborhood almost except what we have coming -- on our left we have millennium studios for the movie

industry that is coming to louisiana and stayed. those are sound staging and offices for millennium studios and they're getting ready to expand and build a back lot where they might build city streets for use in movies but this is millennium studios. this is the highland neighborhood. i love this neighborhood. i've spent my whole adult life in it and i love it because it's the most diverse. it's the most creative. it's historic. and i always say it's the most interesting neighborhood in shreveport. it's the closest we have to the feeling of what new orleans is like. and just because of all the variety of things. it's full of fascinating architecture. this street happens to be probably the widest street in the neighborhood for some reason. i don't know why. but there's like -- this house is like a church. sort of a homemade church here. we have -- over here we have the

director of our arts council lives. we have an architect that lives a couple doors down from her. you got your white picket fences. you got your bright colors. it's just -- it's a little bit of americana but let's it's shreveport this neighborhood. there's so many interesting people that live in this neighborhood it's just -- it just makes me feel good. i love walking around this neighborhood and that is the best way to see a neighborhood, by the way, is walk it. you got to walk it. drive through it, you don't notice the architectural detail. >> what's the economic demographic of this area? >> i think it's all over the place. you might have a famous musician living here and you may have a casino card dealer living next door. i think it's mostly middle class, but it's -- it's all over the place. i don't think it's a wealthy neighborhood for sure, but it

has some wonderful -- just like this block, it's a wonderful example of homes you can't tell, doctors and lawyers could live in here. you just don't know. it's all over the place. and that's what makes it so interesting. [traffic noise] >> you're in the strand theater now, just a movie palace that was built in 1925. when vaudeville was just ending its run and movies were starting to come in, and they were building places like this, the singer brothers built this in 1925 and theaters all over the region but this was their flagship. it's the strand theater. it's the jewel of shreveport. and in the 1970s, they even considered tearing it down because it was falling into disrepair and getting a little

grungy because nobody was really caring for it. i remember watching movies in here in high school and they threatened to tear it down and a group of people got together and said, no! do not tear this thing down. it's too incredible. and they started raising money and pretty soon they renovated it and now they have broadway -- touring broadway shows here. they're setting up right now for damn yankees. here we are in the south and we're going to be watching the damn yankees. the broadway musical, they're setting up for that in a couple minutes. they have concerts in here. all kinds of events and it's just a place of pride and to think they almost tore it town. i'm a big -- big guy on historic preservation. i can't imagine anybody taking a sledgehammer to a place like this. it just blows my mind. this is the strand