say thanks to our central bankers we speak to james turk founder of gold money about how we got here and what to do in light of this should you sell everything you own and buy gold we'll talk about what this means for gold as an investment also the case for a gold standard and we even take a look back at an unlikely advocate formal central banker and currency lover alan greenspan in lighter news you could say out of this world claims since we're on the paranormal will we see u.s. president barack obama's foreign policy go intergalactic in a quest for gold stolen by aliens we'll tell you at least how the white house responded to claims the chief executive has been teleporting to mars let's get to today's capital account.

so just what can we expect in two thousand and twelve well co-founder of the largest bond fund in the world bill gross says this is what we can look forward to it's as if the earth now has two moons instead of one and both are growing in size like a cancerous tumor that may threaten the financial times oceans and economic life as we have known it for the past half century wiping out that surfer dude could be an investor it could be you it could be to financial system so how did we get here what chance is there for financial freedom and what protection is there from tsunamis created by central bank printing also is gold a safe haven and if so why volatile so volatile lately earlier i spoke to james turkey's founder of gold money and author of this book the collapse of the dollar

and how to profit from it he told me gold is in a bull market he thinks and the recent volatility we've seen has been a correction so looking further into what that's all about i brought up the paranormal bill gross actually the founder of pimco has a note out for january that could help explain the rise we've seen in gold since two thousand and eight the impact of de leveraging and zero percent interest rates that now does in two thousand and twelve that financial markets are slowly imploding deal levering because there's too much paper and too little trots he says goodbye old normal standby to redefine new normal and welcome to two thousand and twelve paranormal do you what do you think of this excess assessment that there is too much paper and too little trust paranormal year. yeah i agree there's far too much paper far too much leverage and this is actually a concern for me because instead of allowing the paper to disappear what

governments are trying to do is to keep the game going keep this paper game going with their serial bailouts and trying to keep insolvent banks and the doors open on insolvent banks but what they're doing is just adding more debt to the problem and in that kind of environment you know monetary history teaches us that ultimately the currency is deep based and we could go to you know hyperinflation this is actually the point that i've been making for some time that we're on the road to hyperinflation because what we're doing is turning government paper into currency turned it into cash currency that's moved around hand to hand or deposit currency that's moved around moved around within the banking system that ultimately results in hyperinflation and that's my big concern you know going forward from here and that might actually lead us to that eight thousand dollar pros gold price i've been expecting sometime between twenty thirteen and twenty fifteen twenty thirteen twenty fifteen and it's sticking to hyperinflation and it's really interesting you bring that up because i want to bring in our producer dimitri coffee and he had a really interesting question for you on that it was a third so i want to stay on that our investment outlook by bill gross because when

i read it one of the things i found most interesting was what he spoke about with respect to buy model five tails and that we're living in this world we've got one which is the potential for the leveraging. that destruction and you have the other side which is inflation central bank money printing and i think we've sort of been in that paradigm at least since two thousand and eight when the financial markets crashed the market itself wanted to push down prices and center back to try to prop them up and i think gold has been an interesting play because you've kind of been able to navigate between those two extremes. what do you think of that assessment of that world and do you think we'll see one of those two fat tails activated and b how do you think gold has functioned as a sort of vessel as a hedge against those two those two issues because most people think of it only as inflation but it is also a hedge against risk and the fault. yeah absolutely right and you know i think we live in a world of tales in fact i mean gold is up eleven years in

a row what is the probability of that happening it's very very unusual to have a anything go up eleven years and but you know the i think the point that you have to distinguish between is a credit deflation and a monetary inflation you know what we're seeing is the price of some assets houses in particular have been coming down but we're measuring the price of that decline in terms of a currency that's being ever debased i mean inflation is still a factor we've got crude oil back over one hundred dollars a barrel so it can be expected much higher gasoline prices in the not too distant future so we have these two forces that work you you're trying to get some deal leveraging within the private sector and that to a large ish that is being offset by really leverage or more leveraging in the government sector and then you have currency that's being debased i think the bottom line issue that we're going to face in two thousand and twelve is is this becoming increasingly clear from the events and you know greece ireland and maybe now in italy or perhaps spain you know even the u.s. government governments are running out of money. they're borrowing more money than

the market is willing to lend to it and as a consequence the central banks are stepping in with a process called quantitative easing but it's really basically money printing and then that kind of environment you can always expect an inflationary if not hyper inflationary outlook so yes we do live in a world of tails we are seeing some of the leverage in the private sector but keep in mind that the leveraging of debt as not necessarily mean that you're going to have deflation in the currency whether we have inflation or deflation really is a function of what central banks do with the currency and in my way i see it the way central banks have been pursuing a policy of inflating currencies we're going to have much higher inflation in two thousand and twelve. they're calling for higher inflation in two thousand and twelve let's talk about that antidote to quantitative easing and that kind of money printing and if you have too much paper you advocate berthoud maybe very ironically not. hundred sixty six alan greenspan wrote about the merits of the gold standard

and he said this if we could bring up the quote because in golden economic freedom he said that in the absence of the gold standard there is no way to protect savings from confiscation through and flash and now ironically of course he went on to earn the nickname bubbles because of his love for beyond money but do you think we could actually see central bankers embrace the notion of sound money even a gold standard if they come to the conclusion that this fear money experiment has failed. you know it's really a good point i think you really have to get look at monetary history gold has been money for five thousand years forty years we've been experimenting with the currency we can see that experiment not working out very very well the gold prices rising because people are starting to recognize those attributes that made gold as money in the first place and if kept as money for five thousand years they've not been lost or they haven't been destroyed or disappeared they're still there they've just been ignored or forgotten and people are starting to rediscover these attributes so inevitably we're going to go back to gold gold is going to return to

its traditional and rightful role at the center of global commerce when this bubble pops and what is this bubble it's the currency bubble it's the belief that a promise backed by nothing you know insolvent governments that don't have the ability to repay their debts is actually money that's worth something but the reality is when this bubble pops you know if the currency is going to i think you know they're going to many countries suffering as a consequence of you know believing that the currency really has value all one has to do is look at it i think it's like one hundred eight currency collapses since the end of the second world war in various countries around the world and see what the consequences of that are the imponderable thing is that if the u.s. dollar collapses which was the theme of a book that general dino and i wrote back in two thousand and four that the collapse of the dollar if the dollar collapses it's going to have a worldwide effect because the dollar after all is the world's reserve currency and it's is the currency that backs up all of the other paper currencies of the world so. you know as i see it going forward the only safe way to play it is the only

tangible asset for your money and that means owning gold or owning silver and taking out one of the really interesting things about gold money it offers a number of services of course but one that we thought was particularly intriguing with your payment system because it's private sort of gold debit account system do you think we'll see the growth of this and do you think that this will force central banks then countries to think about how much gold they need to hold never their. yeah you know i'd like to see the emergence of private currencies you know goods and services problems are solved by the by the free market by private enterprise you know governments stone solve problems they tend to create problems and they don't create wealth all they do is they tax the wealth that's created by the private sector so we really should be turning to the private sector for answer to today's problems and i think one of the best alternatives is to unleash the forces of the private sector in the whole money process you know level

turn of the payment systems flourish in order to create alternatives to government backed currency so that there is an alternative system available in fact in the states now there are a number of state governments that are bringing gold and silver back as an alternative currency within the state in order to protect the rest of the of the state just in case the federal reserve currency u.s. dollar as it presently exists collapses in the future never very chair i did a story on a legislator in virginia who was doing just that now you can see more with james turk we have a web exclusive look for it on our website youtube dot com slash capital account he predicts how high will see gold go how low will see it go and what its performance is going to be for the next few years you are not going to want to miss his predictions online.

all right it's time now for word of the day where we break down a financial term or concept for our very smart viewers but just maybe not the financial expert and today it is hard money sometimes referred to as sound money and why well our guest is an advocate of it for one his gold money payment system is an example of hard money and of course pimco is bill gross in his nose that we've been talking about his investment outlook for january he writes referring to the modern money system created after the breakdown of bretton woods in one thousand nine hundred eighty one that unlike gold with its scarcity and hard money character the new credit based standard had no anger dollar or otherwise so what exactly does this mean what is hard money it is money that is backed by a hard tangible and lasting material so as to retain its relative value over time does acting as a reliable store of value now advocates of

a gold standard or some other form of commodity based hard currency point to the huge growth in debt and other liabilities as a direct consequence of having money that isn't tied to anything and whose value fluctuates with the whims of central bankers this is of course money in a world of sound money debts that cannot be repaid will not be repaid and therefore write downs and bankruptcies must occur and debts cannot simply be papered over through money printing and inflation because print too much of that currency and you could wind up with this hyper inflation like zimbabwe where you have to have a one hundred trillion dollar note or you could end up like y m r germany needing a wheelbarrow of currency debased currency. an order to buy a loaf of bread and it's not good for much more then i don't know building up paper pyramid now in the battle between capital and credit hard money is the weapon of

choice for the saver however it is the kryptonite for the speculator which is one reason why banks really hate it and that is hard money still ahead here on capitol count don't go away with money printing and massive credit expansion the genie may be out of the bottle but is there anything that can put it back in and burst your closing market numbers. put a picture of me when i was like nine years old on to tell the truth. i'm a contestant i am a total ghetto princess i love rob because he's a one trick. but he was kind of

a yesterday. i'm very proud of the world without you or his place. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else here sees some other part of it and realize everything. you don't know i'm time her welcome to the big picture. and what drives the world the fear mongering used by. politicians who makes decisions to break through it through the people who you trust no one who is in view with a global ritzy where we had

a state controlled capitalism it's called sas and when nobody dares to ask we do our t.v. question more. welcome back so we talked about how money has opened the door to printing to too much paper to massive credit expansion you might think of it a little like this. the genie is out of the bottle the big question of course is now is it possible to put the genie back in i pose that's author and founder of gold money james turkey is

back with us but first i ask because you wrote collapse of the dollar but of course in the last year we've seen the dollar appreciate substantially from its lows that even as the fed has kept interest rates at zero and continued printing money so i asked if he sees this trend continuing in two thousand and twelve. well it depends what you're measuring the dollar against you know in a world of floating currencies they bobbed up and down relative to each other in any given year depending what the central bank in that country is doing relative to other central banks you know so last year the dollar bumped up against the euro the year before or couple years before it was the exact opposite where the year was strong relative to the dollar the important point though is that you should be measuring the dollar the year zero and you know all the other currencies of the world by the the world's international money by the numerary which of course is gold in last year despite the fact that the gold the dollar did relatively well against the euro gold was up ten point two percent against the u.s. dollar so you know it really currencies are just on

a downward path you know they've bought up and down against each other but they're all sinking relative to the us relative to gold itself arguably of a european crisis has done very one good things for the dollar and one of the issues that the european crisis that's a big concern is bankruptcy is i thought it was really interesting listening to you talk about your experience your training in banking in the sixty's and how much has changed what is the most concerning material development to banking that you've seen happen over the last decades. well you know that's a really good question i learned banking back in the one nine hundred sixty s. and i was taught conservative traditional banking by guys who had lived and worked through the great depression you know i resigned from banking in one nine hundred eighty and the people that were coming in at that time you know the guys in the great depression had retired in the people coming in at that time didn't have any inkling of monetary history or tough times and things of that nature and so you know banking since i left it in one nine hundred eighty s. moved from banking to being more like

a hedge fund with proprietary trading and taking these speculative positions you know the traditional banking of you know lending against in and tory. i suppose it still happens but it seems like that's a relatively small part of what banking has become today but with the growth and credit market debt and with that expansion as well as derivatives all these seven hundred trillion over the counter derivatives that are floating around is there any way to dial that back and to put the genie back in the bottle as you've said. i don't see how we could get the genie back in the bottle i think this bubble has to pop and it will pop of eventually just like all bubbles do eventually pop i mean that's one of the basic premises of the austrian school of economics and i'm a and it here and to that you know whether pops this year or next year or year after that you know no one can predict because we can't predict the future but if we're on a road driving a car heading for a cliff and i believe you know that's the way monetary policy is being pursued at this moment we're going to go over that cliff that's

a never in an effort to build it it's not a prediction unless you turn around and go back in the right direction but i see nothing by central banks generally speaking that they recognize that the risks that they're doing you know they're trying to pump up the economies to increase government revenue revenue to reduce the deficits that governments are incurring all around the world but it's like when a car is flooded and you step on the accelerator and the engine doesn't respond economies are not responding by all of this money printing so i think you are ultimately doing more harm because what they're risking of doing is destroying the currency and if they destroy the currency then the economy is definitely going to suffer suffer and everybody will as a consequence be in a much worse position so you know to avoid that risk i think people have to move to physical gold or physical silver in order to protect their wealth to protect their purchasing power and protect themselves from what i see is going to be a very very difficult and to multiples to malta osier ahead of us atenolol to us here thirdly it same to talk just a little bit more about what some of the central banks are doing to push on us

during just quickly despite the l.t.r. which is supposed to get cheap money to banks to then buy sovereign debt despite all that we see deposits at the e.c.b. deposit facility reach new highs does this signify that banks are scared and does this support bill gross says paranormal analysis. yeah it does it does indicate that banks are scared in the sense that they don't want to listen to other banks and i remember this very well back in one nine hundred seventy three in one nine hundred seventy four when there are a number of major bank failures back then you saw these unusual developments but it's much more extreme this time around because there's much more leverage in the system than there was back in the early one nine hundred seventy s. . and check back on our web site to see what else he had to say about central banks that was james turk founder of gold money.

all right we talked about the serious stuff so now look at a loose change in the financial sort we have to be trick of finesse our producer and studio along with shannon donahoe holding down the fort in the control room so we have talked about drones being mistaken for us those in the heartland we've also talked about the believe by some believers in extraterrestrial that aliens have been raiding our goal here on earth that that is what they're after and now we're receiving an official government message about the red planet.

ok no so mars isn't attacking but according to some self-proclaimed time traveling government agents obama was part of a secret cia project to explore mars so the idea was that u.s. president barack obama back in the eighty's teleported as one of ten interplanetary teen titans interestingly the white house responded and says this never happened so it's been confirmed by officials he was never there but is this kind of a creative next debt for obama as times get tough we're in so much debt in the united states as a country also as citizens and if the aliens have got our gold dimitry why not go after it i think the brock obama i didn't see this one coming and i've been very critical but it looks like he's very forward thinking in fact he's able to think in multiple dimensions so he's saying you know one of them are going to deal with these are things in this crap that's going on here congressional directives i could executive orders that's all a cover story a smokescreen i'm going to go straight to mars and i'm going to extract gold and

i'm going bring back and feel that that's going to be a savior and we want to win and i think makes perfect sense now save his save his campaign for reelection and not have to go through congress it's another expansion of executive powers though i don't know if you can really this is like when when this when the spanish king sent to the congress there was over the spring over to the new world and they found all the new golden a good time period this could be this could be the black swan positive for the united states that no one saw coming there you go shannon do you need your tinfoil hat to protect you from the aliens retaliating if we go after the gold they've been stealing. i just think they do i mean this is the early one nine hundred eighty s. and i know she was a teen titans but i was a baby titan and i was there i saw. there was a. the superman from star trek remember the superman that we're part of. yeah whatever ok let's move on from that actual president to the race to be one take a look at what happened when a ron paul supporter tried to defend the g.o.p.

hopefuls foreign policy platform last night. well i think it would be even more dangerous to start nitpicking wars with other countries someone like iran israel is more than capable of. car we just lost our turn to them forcefully with. one that was a little too convenient that when someone is out there supporting the alternative platform saying that iran is not a threat all of a sudden that the connection goes out skying that see this soldier i was living see this is the beginning of skyscraper with markets here and there was a guy i know you right now started from the herd and then he heard as though he was a kind of cut off automatically cut the satellite alex jones is going to love you right now and we think. i think honestly the satellite just dropped i don't think anybody saw it dropping it's just it's what happens when you work in a control room sometimes subtle it just drops they have a pretty poor heaven marty i understand in a way to kill our joy. she's going rogue again she's going rogue again but you know

there are a lot of people that could benefit from the position of most of the g.o.p. candidates on iran we've seen all of these weapons sales from the u.s. to all of the countries surrounding iran this is a boon for business for military contractors. weapons so why you're making that. you're on the ok everyone just contradicts me here's something you can't talk to contradict me about this is a really good deal we found ok india has created the world's cheapest android based tablet steve jobs might be turning in his grave sorry that's actually really a bad joke but it's only fifty bucks and preorders one point four million obviously is a big hit twenty thirty five bucks if you're a student and receive a government subsidy for it so is this you know watch out i pad here comes a fifty dollar tablet is everybody a sucker like you that spend a lot of money on an i. look and i'm glad i'm asking about your.

i like apple products i like to pay a premium because apple does things for me. here i learned what can't a fifty dollar tablet that does over the course of you know that. apple has a personality and when i have a product i have an experience as a brand marketing ok so which would sell you the more the the personality of a steve jobs action figure because that's going to go on sale for ninety nine bucks coming up here or a tablet for fifty bucks half the price of a steve jobs action figure. well this is a classic oh god this gets it and i knew we had ten seconds let's understand it and what it is coming is steve was going to is going to make his value. i mean yeah i phone with i'm sorry oh my god went i would buy the fifty dollars tablet ok sign me up for the cheap tablet you know you wouldn't want that i want is cool as a sitting i don't know do i and i will i'm confident in my coolness and with that we're going to go thank you so much for tuning in feel free to follow me on twitter at lauren lester give us feedback on the show at youtube dot com slash capital

account that's also where in the next few days you can see our web exclusive with james turk on gold prices and his predictions for high and low you will not want to miss them in the going up and that's it after my run here a couple count have a great night. down the official t. obligation to your point called time from the. lights

on the. video on demand. and omissions for now with the palm of your. machine on the dot com. world with. science technology innovation all the moves developments from around russia we've got the future covered.

some seem to believe that we should go shoot with the terrorists and radicals. and that idea might just be spreading from an over my dead body mentality to a softening foreign policy stance looks like the u.s. is willing to negotiate after all so as officials play nice with a once sworn enemy is the taliban now winning. thank you so much. on your marks get that vote republican candidates are out of the starting gate and dashing to new hampshire three are leading the pack the rest are being left in the dust for now.