the next time the president of united states wants to reach out and touch someone he might just have a new tool that is disposal text messages to every american with a cell phone and no you can't opt out we've got investment guru peter schiff with us tonight to explain the twists and turns of silver last week and how the institutional gold rush we're seeing now will play out we'll find out why libya was bombed not because of oil for humanitarian reasons but because of gold we've got cops paying people in food to get high don herold of the day trade show who predicted the silver plunge joins us and. hold on i'm getting a text message from oh it's it's the president security alert

whatever you do do not be caught watching vs the man. you've been hearing for years from cheerleaders of gold and silver saying you have to buy silver or gold are going to lose everything to inflation well there is a grain of truth to that if you will hold your savings in u.s. dollars the purchasing power of that money will slowly be drained away is more money is created by the federal reserve here in washington but anyone who follows that up with and therefore you have to buy silver or gold or this twenty year supply deal hydrated food is well. trying to sell you something

and while silver is generally continued its exponential growth curve in value that mirrors the decline of the value of the us dollar it had a rally recently and just last week jumped from about forty five dollars to forty nine dollars in two days before plunging throughout thirty five dollars where it was two whole months ago so here's what this looks like the recent increase we see right here followed by the big plunge and the slight correction now let's see ten year silver over ten years you can see the approximate exponential curve as it goes up and you can put a line on that the traces it that the magically but even within that fed some bumps you've had some dips and here we see all of that activity we're talking about in the last several weeks right there giant spike a very short period of time relative to what we're looking at gold on

a ten year chart so the bursting of the silver bubble led to what c.n. d.c. called a cascading crash in commodities as commodity traders sold off holdings in oil and copper to cover their losses and silver talk to dawn herald after the break we'll get into the details of how this all the came about and how he predicted its timing but first for the big picture we turn to peter schiff c.e.o. of your pacific precious metals and author of several bestselling books most recently how an economy grows and why crashes and peter schiff has been vindicated on some of his most bold predictions but even though gold prices of shadowed silver over the past couple weeks without the big crash he's still telling people to buy gold peter welcome the show thank you so much for joining us tonight here so is there any chance we could see the activity in gold further affected by the recent plunge and silver. well again even going to happen but you know gold didn't have

that meteoric rise that silver had so silver corrected gold went down a little bit but you know proportionately gold you know there's an old didn't have that big run up in gold really hasn't gained much in the last six months as menu on eyes but it hasn't done it does hasn't done with silver bit so i don't think you're going to see that kind of drop in the price of gold so what caused the bubble in silver but i don't think it was a bubble but i do think that the market got ahead of itself for a number of reasons and we've taken that froth off of it we've got silver ran up almost to fifty bucks obviously we took out a lot of stops on the way up we attracted a lot of short term money there was momentum in there the price went up and then eventually you know they kept hiking the margin requirements that might have been a catalyst to bring in the sellers to get some of the longs to cash in some of their chips and i think we overshot the downside i didn't think that so would get all the way down to thirty that used to be the resistance there was

a lot of overhead resistance at thirty dollars and silver we finally broke through it i went up to fifty i think we pulled back down we got to below thirty five now or headed to forty again or the lows in i don't know but i still don't think we're going all way down the thirty bendingly camp i think it went down there it will be an incredible buying opportunity which is why i don't think it's going to go down there because i don't think the market is going to give a silver buyers that did a gift so this is a sort spike in a correction how do you differentiate that from a bubble. well the problem we had at mania that we we had you know when you think about bubble company internet bubble or outing bubble you know that silver is nowhere near bubble i mean most people don't own any solar whatsoever if they own any it's an area in their kitchens and just silverware and they're probably cashing it in probably not buying it so i don't think gold and

silver have inspected the national psyche the way real estate or internet stocks did i think we're a long way away from now where you know that everybody is just buying gold and silver and are simply no buyers left to be generally in a bubble everybody behind you run out of buyers i think just on the buyers out there i still think that the percentage of investors are retail institutional who have positions in gold and silver is tiny and so i still think the lion's share of the buying is the end of us and it was a bubble of the lion's share will be behind us ok now a question you don't normally get about foreign policy but that's related to gold here i want to i want to take you to libya because a lot of people have been wondering with the recent military kinetic military actions in libya why now why is this the time why is it with all the terrible dictators in the world all of a sudden right now we're taking advantage of this opportunity to take out kadafi and ellen brown her theory is that both iraq and libya were invaded because not

because of any of the excuses that we've heard from the government propaganda but simply that they were trying to get off the petrodollar system in the case of libya because gadhafi had called on creating a gold backed currency for for all of africa and their world i want to read a quote real quick from allen browne's who said the initiative was viewed negatively by the usa and the european union with french president sarkozy calling libya threats the financial security of mankind but khadafi continued his push for the creation of the united africa so regardless of what coffee was actually working on thinking on if this was what he was doing is this enough of a motivation to spur the u.s. government into getting involved militarily in another country. i have no idea i mean probably not i mean there's plenty of talk all around the world it's not just libya the talking about looking for alternatives to the us dollar everywhere people need alternatives the dollars as a sinking ship a lot of people want to get off and look for more see where the vessel from which

to float their their their their monetary system so i doubt it i mean it sounds a little more conspiratorial approach for my taste i'm sure there are other reasons but do i understand us foreign policy now we're involved in in too many places around the world i think we need to. be less involved militarily i think we're spending a lot much too much money around the world and i don't think it contributes to our national defense to let reaction to let you know what the motivations were or what reaction you think we would see what what we actually think we would see from the government or do you think we were always in the future as as you say more people are looking for shelter as a way from the us dollar. well yeah i mean that's not not just not just around the world but here in america people are looking for alternatives in the u.s. right now is dollars losing value prices are rising interest rates are are practically zero so anybody that understands this they're not they're looking for alternatives they can hold dollars because they get no interest on their deposits

and prices are rising and we had the producer prices came out today they were up an annualized rate of like twenty percent or something like that of thirty percent a year an annualized rate the prices are rising rapidly around around the country for the things that we need to buy now you describe an institutional gold rush as some of the american institutions that are holders of large amounts of cash which over to gold holding for tell us about how you see that developing into some gold rush but i wrote an article in my newsletter for europe pac precious metals which people can subscribe to it's free on that you're a pack metals website but i wrote an article pointing out that you had the alman from university of texas which is the the second largest endowment after harvard they have a twenty billion dollars and they invested five percent of that twenty billion one billion dollars in physical gold. and my point was that this could be the beginning

of a broader move in the institutional community to put a portion of their assets in both because institutions generally they're managing other people's money they have all these pension consultants they rarely think outside the box they generally just follow a cookie cutter mold of what is considered the conventional wisdom and so generally they would be reluctant to step outside the box and bikers little bold the fact that texas did it the hardest turning they did well number one is they really must be concerned that they're willing to go out on that limb and buy gold because if they do it it turns out to be wrong and gold drops it's going to be what like why would you do that why did you waste all this money on gold so they went on the limb and they're like the first ones but now that they do that if another if another down that follows suit pretty soon it starts to become the norm it starts to become acceptable and now the gold keeps going up and other a down was don't have any

money in gold now it's like well wait a minute why did you do that we dribble the exposure so the tide kind of turns and i think it's some point it could turn into an institutional go watch as all the institutions that have zero waiting in gold and they're underperforming as a result it starts to be calm except the bull and then all of a sudden it's required and you know if you get all the endowments putting five percent in gold or ten percent in gold and not just endowments what about trust what about pension funds but you can have tremendous buying not only here but all around the world well it's exciting to see there are people like you following that at that level and they can see that we're able to keep track of the story and anticipate the changes that are going to result from that institution gold rush peter said from western connecticut thank you so much for joining us tonight. so i just have to share this latest twist. all right maybe it's more of a humorous twist from the war on drugs according to c.b.s.

minnesota police are looking for people who are high on drugs but not to bust them these druggies are for training purposes only only people whose drug of choice is alcohol people on other narcotics are more difficult to spot for some of us that's actually one of the appeals of smoking pot don't like alcohol it does not make it obvious to true moron but cuts in minneapolis need extra training now to spot people who are on drugs other than alcohol and are getting help from some unusual sources in one case it was a woman who was under the influence of marijuana as a passenger in a car that was pulled over who volunteered to help by submitting herself to a forty five minute evaluation the conclusion of which was invert road heights offer chris wagner saying looking at initial signs i would say cannabis marijuana

i don't know what you would if i was high in the back of a car that was pulled over because the driver was drunk and then a cop asked me to do a test so i could do my civic duty and maybe help my friend the drunk driver and then they try to determine what drug i was on by rigor series of tests involved singing closing my eyes and touching my nose and hanging out in a police department for forty five minutes i'm pretty sure i'd be sober by the end of that they're also getting help from the minnesota aids project needle exchange program yeah they run ads for their clients saying basically show up high hang out with cops. and get rewarded sergeant dan moros of the minnesota state patrol who trains obvious serves for the state's theory that is drug recognition expert program says that there's nothing illegal about taking them to a drive through for something and nothing illegal about remote rewarding people for using drugs quote certainly we are going to give them money because they know

probably where that is going to go right back to so we will do what they like to do they will ask for a pack of cigarettes and say hey can you buy me about a pop right cigarettes more drugs anyways so after the decades of failed drug war policies now cops are pain wait not pain that might be too blatant let's just say rewarding people for doing drugs so what's it like hanging out with this unique training subjects' trying to guess what drugs they're on well according to officer chris right now it's definitely fun. when we come back we'll get into the events of the past couple weeks and commodities and learn from don herold how he called the recent silver plunge how is the president of the united states going to act your cell phone or on that after the break stay tuned you're watching adam versus them at.

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ask we do our t. question more. internal we are there with the mechanisms to do the work to bring justice or. i have every right to know what my government would want to know why i paid taxes. i would characterize obama as a charismatic version of american exceptionalism. a new website with twenty four seven live streaming news channels what to do about the ongoing financial hardship unlimited free high quality videos for download. and stories you never find on main street. from the get go sell me the political. posturing more aren't just watched.

welcome back to adam vs the man as the silver bubble or as so if we call it a spike it was starting to burst last week many so-called gurus were selling up late to the party and advocating this and trying to get into silver but on may second thought harold our next guest was on break out calling out the bubble for what it was and saving people smart enough to listen a lot of money. a lot of the silver bulls and silver bugs now will say this time is different this is not they'll say this move is organic completely organic there's nothing manipulated about this and yet those same silver bulls who look back to two thousand and eight and the collapse and say that was manipulated and it seems to me the manipulation stories are old and tired you gotta look at the charts and look

historically it were red and i just think that's not a compelling new buy right now don harold one of the things i really appreciate about him is how humble he is because unlike some of these other gurus who come up with excuses when they're wrong or when things don't go as predicted he knows how to and how to admit when he's made mistakes but this past week's numbers have been vacated his predictions gone is also the host of they trade show they trade show dot com and he is joining us now from his secret blunt bunker in fire allana now i know that we're not supposed to disclose his location because he's very guarded about that and so every time he comes on the show we have to identify him as from some secret bunker in one of the fly over states but anyway join us now my good friend don harrell don thanks so much for joining us this evening thanks for having me adam outstanding so how did you call the silver

a bubble. well look the first thing i want to say is that i didn't call a silver bubble i didn't call the top i just believe that there are times when it's a better time to buy in a better time to sell and with respect to silver there are so many indicators that it was a good time to sell it just made sense to sell some silver but i had sold silver at other prices as well as being on breakout maybe looks like houdini when in fact for a long time i felt that silver was in a bubble now about whether or not this last few weeks spike and crash and solar prices constants of all appear fifty or so my fellow apparently says because it's not long term out there's not enough factors going into it it doesn't quite qualify as a bubble this is a matter of semantics well first off peter schiff is a genius and he and others like him max kaiser another guy that's on our t.v. these guys that deserve a lot of credit for getting people involved in pleasures not. so i'm not going to

you know debate semantics with peter schiff i'll just give you my opinion my opinion is that the story the reason why people were buying precious metals turned out to be true adam they printed money they based the dollar and we saw a one thousand percent increase in the nominal price of silver over the last decade now when that price rise was seen in the nasdaq that was seen as a bubble and we saw the same sort of price rise in the price of oil or natural gas those were called bubbles when it was real estate or any other bubble we've seen in the last ten fifteen twenty thirty forty fifty hundred thousand years they're always seen as bubbles with many of the same characteristics so meter shift may be right in the long run there's a lot more upside to silver in the short run it certainly was a good time to get out over a forty five absolute only anybody getting the wisdom of your call in the market last week but what do you think caused this recent spike in silver prices. well

there are a lot of reasons one reason which has been discussed frequently on the internet is that the comix has raise margin requirements and what this essentially means is people need to have more liquid cash in their account to cover their positions if they're holding long and silver now when you raise the margin requirements it actually has an effect of bringing the price of silver closer to a one to one ratio versus the amount of money in your account so it brings the actual value of the silver versus the actual money you've got your account more towards parity which has the effect of dropping the price of silver and a lot of the silver bills we've talked about this have been exactly right it's had an effect on the price of silver so you're right you don't exactly call the top of this one you call it but you did call it on its way down and said it was going to keep going down when when gold or was it it's over was around forty four dollars an ounce and you're saying it's going to it's going to keep going down this is still not a good time to get in what what what i was that right was everybody else there are a lot of other investing advisers saying no you still need to get in silver is going to keep going up well i think one of the problems that is that when people

are involved in something emotionally like most of the folks who are buying silver are it's easy to get blinded to things which ahead of time they would have said would have been reasons to sell or for example i hear this different this time and that's a hallmark of every bubble you know when you hear people say this time is different it never is different it's always the same. but we have to say this a minute here left i want to pull up the chart that guy that you showed us earlier that has the comparison of silver for the expected price of silver and blue as to inflation and what the actual yearly average of silver is in red there and you can see that silver is sort of roughly following that blue line until the big spike around one nine hundred seventy nine and then. current big spike after apparently it was the price was depressed do you think that silver is going to be returning to that sort of normal predictable blue line or or. when can we expect it

to do that or what do we expect silver to be doing relative to inflation in the next few years that's a great question i'm glad you asked that question because people like peter schiff and max kaiser have been exactly right about the inflation about the money printing but if you look at the chart look at where silver ought to be versus inflation and it totally overshot this was you know this your own now in the future i believe one of two things will happen either inflation nominal inflation numbers will soar and be printed as such right now they're showing one percent a year or something ridiculous like that or the price of silver will come down nominally about two more expected price either way is not going to be good for consumers if we get this sort of title and if the price of silver comes down it's bad for people holding one hundred percent of their assets in silver but i do believe there will be a normalization of that curve i'll send thanks so much i will definitely be checking back in with you as we see silver moving around more in the future and keeping up with inflation so thank you very much that was don herold of day trade

so dot com one of the few who called last week's silver spike and crash correcting . in new york city your friendly government officials have a plan in this case plan stands for personal localized action if you can alert network which is government's way of saying we're going to send you text messages but you want them or not they have full cooperation from the telecom giants for this plan which is no surprise given that we live in a fascist country where the lines of tween corporations and government are blurred anyway but they are looking out for you within. option sort of you can opt out of everything except as it is from the president himself you can see where this is going right so it's a system would be subject to all the potential abuses of government but police commissioner ray kelly went either further saying quote it's like

a police officer's gun it's there for a good reason but we hope that we never have to pull the trigger. for now at least they can only send alerts to certain high end phones this is only new york but will require that by next year all cell phones have a chip that allows them to receive these alerts so i can imagine that soon who knows maybe within a few years we will all be so lucky as people in new york is to be connected to our friends in government the same way that we are already connected to our friends and families and real life so to try to paint a picture for you of what that might be like we came up with some illustrated text messages that you can be expecting from our friends and government all right here's a very helpful one from hilda solis secretary of the u.s. department of labor donald is hiring the unemployment situation has been solved well put in a good word for you oh well that's that's certainly comforting speaking of

mcdonald's we have another one here from first lady michelle obama you have reached your calorie allowance for the day please stop eating and try a flash workout let's move really well this one apparently also comes with a good to go and i know all of you got the right. wasn't that fun you can get text messages from the first lady about eating too much mcdonald's and how much more you have to exercise all right now we have one from the department of transportation. i'm sorry first we have department of homeland security secretary janet napolitano do enjoy giving cavity searches fondling breasts or strip searching children apply for a position with the t.s.a.

today a look at that more help with their job search isn't that great but you know if you're caught you know if you have one of these things in your car they can track your location now too by g.p.s. so you might be seen something like this from the department of transportation automatic alert system our g.p.s. indicates that you're currently in excess of the legal speed limit by half a mile please reduce your speed to avoid a fine and or arrest and soon after getting no one you'll probably get another from the department of transportation automatic alert system a fellow driver has observed you texting while driving this is a warning please remember to keep your eyes on the road to avoid find and or arrest our rights and we know those of us who are those who are looking out for us at the e.p.a. are really working hard to protect our planet and with increased surveillance are really able to do some amazing work you might have seen attacks like this from the

e.p.a. we have observed that litter in your vicinity we all need to do our part in the effort to care for our planet please pick up that kansas and. it's we all know what important things the president has on his mind here's one you might be getting from barack obama himself urgence chicago bulls are tied with two minutes left turn on e.s.p.n. . and from your friends at the n.s.a. love the pictures you sent to your boyfriend the other night keep them coming. and also those are some serious text message that we have to look for to put we also came up with some text messages that we'd like to see from government but for which we're not exactly holding our breath here's what we'd like to see from the department of transportation sorry about all those speed traps turns out the highway patrol is more concerned with raising revenue than protecting people so we'll be refunding your tickets accordingly and if only fed chairman ben bernanke

was capable of a little humility sorry i wrecked the economy those bails were dumb idea after all but the best text message is long as you're going to hold up to the president the best types of message you could possibly get from the president this one right here i won't be running for reelection after our. that's our show thanks for tuning into out a verse is the man tomorrow bruce fein will be testifying before congress for campaign for liberty about the unpatriotic patriotic usa patriot act we'll bring you this former reagan lawyers take on your civil liberties also join us tomorrow robert and we are change colorado with more stories from the front lines of the war for your rights please check out adam versus the man that convo on guests and topics and find me on facebook and twitter as always you can e-mail me at adam vs the man dot com and catch this broadcast live as it airs at our home life usa and this is an appeal to. the washington d.c. .