well as the bell tolls so does the death of the global economy as stocks slide and gold is at an all time high is the volatile market saying we're headed towards a recession we'll speak with renowned investor and financial expert peter schiff and search of answers. over marie they get a sense of right peter broder. every day on the hill and that pretty much sums it up with things like this that americans are going to extremes to big first grabs will take you to detroit or precious metals or a lifeline. you seem to be acquitted of killing her two year old daughter robyn gardner went missing in aruba two weeks ago and shocking news the mainstream media

misses yet again this time for getting a little three year old wall looking to hot blonds for big headlines. good afternoon it's friday august nineteenth four pm here in washington d.c. i'm lauren lyster and you're watching our t.v. well more stock market turmoil today and what has been needless to say a volatile week meanwhile gold keeps soaring to new highs reaching almost nineteen hundred dollars an ounce today now remember once upon a time gold was just thirty five dollars an ounce meanwhile u.s. treasury yields collapsed to a seventy year low this week two and a venezuela's hugo chavez is saying he wants his gold out of the u.s. and u.k. brought back home so what does all of this really say about the u.s.

and global economy sovereign debt and the banking system well here's a little trivia we like to give some perspective maybe recall that before u.s. lawmakers reached a debt deal. it got to the point where the company apple then the company that makes i phones and i pods had more cash on hand to pay its bills then the u.s. government lol now they went again apple's market cap just hit seventy five percent of the market cap of the entire european banking stock index apple is worth almost as much as european banks and just how much power do banks have these days after washington passed natural regulations to rein them in after the disaster of two thousand and eight well a picture or in this case a video speaks a thousand words watch this exchange caught on tape involving texas governor rick perry who is of course running for the g.o.p. presidential nomination.

or bank of america will help you out as always gotta say that's it the guy walked off just dropped the bomb and walked off i don't know what we can say after that i think it means something though here to help us figure out what it all means is peter schiff he's president of euro pacific capital. all right peter thanks so much for being here volatile times needless to say and taking yesterday's example we saw a market sell off there were various reports on jobs or manufacturing that came out that analysts said played a factor in that but i feel like the thing that i've noted is any given day there are bad reports coming out about jobs or about manufacturing or about growth there's plenty of economic data to that effect and we haven't seen this kind of reaction from markets so what do you think is really going on here but i think the markets have been in denial for some time but i think a lot of the strategists were became more robust and calm on the into their outlook

and now that they're starting to realize that they were mistaken people are changing their minds are changing their allocations or selling some of the stocks they bought on the expectation of a more robust recovery you know they're concerned that there actually might be a recession and you know i think the u.s. economy either is already in a recession or is headed to work rapidly you know if you remember back in mid two thousand and eight that the same will get trying get peter back and have more of this conversation but we'll have more for you coming right up after this break. just.

like. the sea. all right we're back and lucky for us i think we've got peter schiff back to talk to us about what all of this market turmoil and all of this news means for the

global economy peter i'm glad we have you know you were just saying before the break that you think that the united states is going into a recession why is that. they're worried what excuse me. well my point is if you're american back to the middle of two thousand and eight when economists were confident that the u.s. economy was going to boy the recession and as it turned out that recession began in the fourth quarter of two thousand and seven are incapable of predicting a recession even six months after it begins so i don't think that you know we never really got whacked we kind of interrupted it with some stimulus spending but because we are the states that and more money we have bigger problems you get worse but we temporarily postpone the pain by going deeper into debt but now we have even bigger problems to deal with i think we're facing and we're getting downturn coming up in the one that we went through in zero eight zero nine is speaking of

a way to nine obviously back then banks were insolvent some of them do you think people are worried now that banks are again enfoldment why did a lot of banks including u.s. banks really are in the cycle and the only thing that's keeping them propped up is probably free money from the federal reserve that is keeping them solvent and of course by keeping money so cheap they are continuing to prop up that of lateral or their assets real savings or the long term bond that they hold their mortgages so i think of interest rates were allowed to move to were busy but they're much too low but if interest rates were allowed to return to where the market needs in the be for us to have a real recovery clearly i think many of the banks would fail so then are you saying that the federal reserve which is that it will keep interest rates at zero percent that is about keeping the banks on life support. a cropping up the real estate

market and keeping a bubble inflated but the last thing we need in the sticks is for cheap money now interest rates are that one of the problems underlying our economy the problem for politicians is that we can't return to. trace where they need to be without banks without pushing real estate prices down without making the recession more painful an issue or. so at the federal if we don't allow the economy to reach. i'm sorry i didn't mean to step on your time or have enough you audio problems i hope that our audience is being affected and can hear all the brilliant things you're saying the question is that if the federal reserve has been propping us all up and this is a bubble that could burst what is going to be the straw that breaks the camel's back we keep hearing a lot about bank of america here in the us. mean i don't know there are a lot of straws out there anyone could do it but i find i stand to watch the foreign exchange markets do is turmoil in global markets the dollar was incapable

of rallying against the euro and. all that it is they do everything they could be your and they can get it down against gold it went down against the swiss franc until the swiss unfortunately for the little decided to foolishly intervene to undermine their currency. and some money when. it got. the money but the smart money went to gold gold. because of inflation if i could i think we're having some some audio problems and i really want to talk to you about gold because gold is reaching record highs that it keeps breaking and it's something you really got right so i really want to get into that with you but first i want to show how precious metals are becoming for areas of this country that are in despair in detroit which we've been bringing in new stories on per year showing you how much that city has decayed precious metals or just metals are literally their lifeline watch this.

this was once a city that symbolized america's innovation and manufacturing might. but today detroit is the third most violent city in the u.s. with unemployment estimated at up to fifty percent according to officials but once motor city now has more people living in poverty than cars on the streets home foreclosures continue flight to the suburbs which takes the tax base away from the city and there's more and more of that the decline in the school system. is making people leave the city and so there's no money really in and there are no jobs here and as the u.s. census points out a quarter of a million people have left detroit in the past ten years the economic scars of this

once vibrant city are impossible to escape roughly sixty thousand vacant buildings and thirty five thousand abandoned homes lined the streets of detroit hollow shells of america's former middle class which have ignited an industry of scrappers people these properties of copper wire and steel pipes as a means of income. scrappers ruins for profit yards like this just five miles out to troy scrap yard owner albert talat says he sees new faces every day a little bit more and they get closer by peter gould really good at making everything gonna help even more hellish is the sight of a city looting itself landmark buildings and foreclosed homes are gutted for survival go around and we've got to do a little scale that it's worth or in addition to scrappers an increasing number of cash working americans. are treated in goods. greenbacks

the guy in the lexus and legacy of the suit and tie and little brass lamp where you know he's not into the like recycling kind of guy who broke short of money the u.s. president promised things would be better for america's car making capital after the two thousand and nine fifty billion dollar bailout general motors and chrysler are automakers are in the midst of their strongest period of job growth in more than a decade since g.m. and chrysler emerged from bankruptcy the industry has created more than seventy five thousand new jobs for the first time in six years ford g.m. and chrysler are all operating at a profit g.m. has reported six straight orderly profits chrysler's revenue is said to be up by thirty percent nearly fourteen billion dollars from last year what about bail in the people out you bell about the corporations who bailed out the banks and doesn't

mean a whole lot because the people who are in the city still don't get those jobs those guys are still being outsourced so that can't nobody in the community they're not getting they're not been and getting around them so you still have a large percentage of people who are jobless in this once great industrial beacon of american idea where henry ford pioneered that famous model t. production schools police and fire stations now stand a bandit as many americans are reduced to dealing in scraps here you'll take long just to make ends meet her enough work on r.t.e. detroit. so right there stealing copper being the only hope of average folks without jobs in detroit for investors and for countries it seems like gold is their hope for staying afloat in these turbulent waters that is the recession i want to bring peter back in the conversation i'm glad we got you back well that's something that you have really hit the nail on the head with and we've yet to continue to hit

record hyde's do you think that's really taken his place its place as a safe haven next to u.s. treasuries but it is a safe haven i mean treasuries or not i think the people who are buying treasuries think it's a safe haven they're mistaken and when they figure it out it will go to gold but people have to understand what it's a safe haven from because i keep hearing people on television saying well people aren't buying gold because of inflation because there's no inflation they're buying it as a safe haven gold is a safe haven from inflation that's what you're getting safety from it's an alternative to only currencies like the dollar or the euro or the enter any other currency were central banks are creating too many so if the central banks are going to base their currency if you want to sub stored value that would protect you from inflation this say pavement is goal treasures are not a safe haven at all and would be they are abundant the treasury is printing them like they're going out of style that's a bubble you know people say it was a bubble in cold i'll give it interesting statistic in mid two thousand and eight

before the financial crisis gold was a thousand dollars that was the peak and it fell about thirty percent but it's now eighty percent higher than it was at its peak in two thousand and eight get gold stocks are only ten percent higher than they were back then if this was a bubble or a mania you'd expect gold stocks to be outperforming the metal because that's where all the speculative money flows but the fact that nobody has confidence in gold enough to buy these stocks shows that there's so much fear in the gold market it's not really and that's the antithesis of a bubble so how high do you think. well a price is seventy and they they're going higher and you know there's no i suppose there's no floor to these five currencies if they keep printing a particular dollar so there's no ceiling to the price of gold what will you know if you look at gold gold is like a film ometer on the economy it's like of a doctor takes a catheter and you got one hundred five you can't get he can just send you on your way i mean obviously to some wrong with you where you would have one hundred five

temperature the goal going to eight hundred dollars an ounce gold up every day is saying that the economy is sick is really really sick yet our leaders are ignoring the goal and just keep on doing the same thing as if the goal is telling them nothing i want to ask what you think if you think us bonds are not a safe haven and they're telling investors the wrong things right now how do you explain then they yield on ten year treasuries have collapsed to seventy year lows below to prevent a collapse because people are buying them because they think they're safe haven but they're wrong of course central banks are buying them but how does your state think it can your. is yielding two percent the government's own inflation numbers we've got c.p.i. this week they show you're over your prices increased by three point six percent so the yield on treasuries is negative how do you get safety with a negative you know in fact the yield is pretty big as you have to pay taxes on

that interest and of course the government is lying about inflation and inflation is much worse than a three point six percent if the c.p.i. shows i think it's closer to ten percent and you know what's interesting is if people remember back to the one nine hundred seventy s. when richard nixon imposed wage and price controls it was because inflation got to four percent so we were so worried about inflation of four percent that we did something as crazy as wage and price controls now that was the wrong thing to do but that shows you how concerned we were about inflation of four percent it's three point six the way the government reports it yet we don't even care so then are you saying that the whole you. on market is wrong thankfully and you're right absolutely and that's not going to the first time where almost everybody has been wrong and i've been right now carol says versus the prior u.s. bond market you heard it here the market got the tech technology stocks wrong the nasdaq was up at five thousand the market was valley internet stocks sky high and then they found out they were wrong then the market made the same mistake with real

estate and with mortgages you know and always bought securitized by mortgages markets often get it wrong in the short run and they figure it out and get it right and you get to the bursting of the bubble and i think people who are going to lose the most money are the people who are in bonds those are going to people who's more money in bonds then in stocks by four so when does this collapse. well if i knew that i would be sharing it with anybody i'd be i got to caribbean place of my trade i don't know exactly when it's going to happen but i know it's going to happen i've got a pretty good track record at detecting bubbles and it's interesting that the people that missed the stock market bubble and missed the real estate bubble think that they see a bubble and that's the one place there isn't a bubble because gold is reflecting the loss of purchasing power a fee on currencies all this simply telling you how much money how much value rather dollars are losing your ozer losing yen or losing r. and b. is losing so if it's not a bubble it is goals are going up is paper currencies that are losing value gold is

simply letting you know that that's occurring you think you say that gold prices should show quality leaders that the economy is good but does all of the run into the bond market and the u.s. treasuries along with gold show that people want to have cash because it's end of the day can you can you pay your bills with all was sure i mean you could pay the bills i mean maybe not everybody is smart enough to understand what goes values but you know most people would accept gold in exchange for goods or maybe you need silver but if the person who has a good that you want doesn't look up in gold you can always sell the gold to somebody else and get the cash because gold is money in minutes recognized around the world everything else is just a or substitute for for money you and ron paul say that ben bernanke the federal reserve chairman seems to disagree they got in that fight but i want to ask you never get anything right so i would be surprised that you got that wrong or do you

think you know i want to ask is venezuela leader hugo chavez is taking his gold out of the u.s. and you carry want to they want to repatriate a do you think that's making people worry that there may not be enough physical that might be the case they might be worried that some of these depositories at least that build out and that maybe they don't actually have it or they'll have difficulty getting it back is maybe the people they leased it to has sold. and maybe they don't have the ability to buy it back it could be a lot of counterparty risk so that's you know people just want to have the golden mean that's what our clients to our clients at your pacific precious metals and your recent calbert we still physical gold most of our clients don't want to own the e.c.s. for that reason they don't want to teach our party risk they don't want to be uncertainty they want gold that they know that they own which for people they don't know e.t.f. or paper gold essentially right well it's an exchange traded fund your gold the sitting in a warehouse some ways but all you want but you have shares and indeed yes and the question is what they called isn't there but there's so much value we're

all right we got on well with peter but that's i think that was a good note to end on we heard a lot from him including a bold prediction you think that everyone has a wrong with us treasuries so walk away and get that explodes that was peter schiff president of euro pacific capital well as you heard my last guest say the u.s. is clearly not doing well and on top of all the economic issues one of the issues is that the government is saddled with close to fifteen trillion dollars worth of debt which we saw play out with all sorts of theatrical during the debt ceiling debate which resulted in the u.s. credit rating taking a blow now earlier my colleague christine for that had a chance to sit down and speak with presidential hopeful and former governor of new mexico gary johnson he wants to be part of the g.o.p. ticket now to start off he explained his solutions for the u.s. budget deficit and tax system for their. what i'm talking about is balancing the

federal budget what i'm talking about is throwing out the existing u.s. tax structure and replacing it with the with the fair tax and for those that are watching get online fair tax not or this is been around a long time but it is what it says it is it's a fair tax it replaces all other taxes does away with the i.r.s. does away with income tax does away of corporate tax really establishes this country is the only country to do business and yet with the fair tax he'd still be able to cover the cost of a lot of these programs that so many people depend on in this country while it's revenue neutral so spending still needs to be reduced by forty three percent so i am also across the board across the board i am promising to submit a balanced budget to congress with my first budget and that would involve cutting government spending by forty three percent i mean that's nearly half of government spending and alone of course that's what we're currently borrowing and printing for every dollar that we're spending and that is not sustainable. and i maintain that

if we don't do it if we don't fix this which i think is actually doable but if we don't fix it we're going to find ourselves without a country we're going to find ourselves in the midst of a monetary collapse were all the money that we've saved isn't worth a thing i mean it seems like a great idea on paper but i look here in washington i just witnessed this debate over the debt ceiling that seemed to last you know weeks or longer over cutting a percentage of the god they exactly and here big flutie three percent of how would anyone ever sign up to that well and so now we're back to this is what i'm saying there is nothing in my resume to suggest that i'm not going to pursue what it is that i say i'm going to pursue i just suggest to you that if this country alexa president promising to do what i'm saying but that is a real statement to legislators that we want the budget balanced as opposed to electing a president that's promising to do that over

a fifteen or twenty year period because that's the only reasonable way that's the only way we're going to really get it done well guess what we're never going to get it done that's what i live my life listening to and it doesn't work let's stick with these domestic issues you your proposal to cut the budget has the real repercussions for people who rely on things everything from you know food stamps to medicaid to social security to the military what happens to those well forget about the forget about let's let's talk for a second about our country the viability of our country when it comes to medicaid and medicare i think the federal government could cut medicaid and medicare by forty three percent block grant the states a fixed amount of money and leave the delivery of health care to the poor and those over sixty five to the states l.f.s. here's to the u.s. role abroad i'm curious you know let's just take an issue that's going on right now and that is what's happening in syria we just heard president obama secretary of state clinton say you know president president bashar. should step down they want

him to step down however they're not going to meddle in that country's affairs on the other hand you have this country meddling in the affairs of at least three other countries iraq afghanistan and libya talk about obama's middle east policy well i think that we should get out of iraq afghanistan and libya tomorrow i would never have gone into iraq from the start believing that we have the military surveillance capability to see iraq rule out any weapons of mass destruction that we could have gone in and dealt with that if it were to have happened it didn't happen i thought if we went into iraq we'd find ourselves in an endless civil war in afghanistan i thought initially that was totally warranted we were attacked we attacked back but after being in afghanistan for six months i think we effectively wiped out al qaeda that was ten years ago syria sunni libya i'm completely opposed to libya where was the military threat where was the congressional authorization

where in the constitution does it say that because we don't like a foreign leader we should go in and topple that foreign leader and don't five other countries qualify for that same intervention syria being one of those countries let's let's stop diplomat diplomacy one thing suggestion one thing but intervention a whole nother thing and i haven't seen a military intervention in my life in a country that has threatened us militarily. that was two thousand fold g.o.p. presidential hopeful and former governor of new mexico gary johnson still ahead right here on our t.v. you may have heard the saying if it believes it leads well certainly the case with the mainstream media. plus she's still missing in paradise but there is a new clue well the only catch with the mainstream media guest you have to be hot and the lawn so what about all the other stories going unnoticed look at the tabloid nature of american news. what drives the world the fear

mongering used by politicians who makes decisions to break through. who can you trust no one who is to do with global reach where we had a state controlled capitalism school session when nobody dares to ask we do our tea question more. welcome back all right just remind you it is friday and though every day is a good day to make fun of the mainstream media friday is the rare opportunity to recap the week now death is always sad we are not saying anything about that it is horrible we are sad for the death of of any person that's not up for debate but the mainstream media is choice of the deaths that matter most are just too transparent watch this. now there i have found the body of a missing three year old brianna retrieve as was discovered in

a floodway drainage that's a mother's worst nightmare the tragic story of a little girl found murdered by her name her he confessed to suffocating brianne the day she disappeared if it doesn't ring a bell maybe that's because on the day the news broke mainstream networks gave it maybe thirty seconds of air time plus she's still missing in paradise but there is a new clue before moving on to live coverage of something bigger you may have heard about this story robyn gardner went missing in aruba two weeks ago her disappearance and possible murder may be linked to an elaborate plot to her life insurance money well apparently confessed that there were two insurance policies even mainstream media hosts realize what makes this story so newsworthy every time we have these stories good looking blonde woman who disappears meaning the little briana's of the world take a backseat she's just a little hispanic girl this is why blonde possibly you know glamour model and creep in

a room that engages more people raising bigger issues about mainstream news and national priorities i think we do value the life of a white sexy blonde woman more than a hispanic child so consciously i think people do and raising other obvious questions i'm just curious if this was somebody for example who have black and was missing we don't story about this ask for the gardener story it's a two for one we're news crews can fly over to get a shot of this bug report that we haul away and now robyn gardner what missing. so bizarre coincidence that two blondes disappeared there over a span of several years and sad though it may be twenty four people were shot during a particularly bloody forty eight hours in detroit and we don't see the national m.s.m. sending out the news choppers and in the u.s. every day seven women.