sorry to have you on the show that was a little wrong while chairman of the good work on these institute and author of the lack of a right. that's going to wrap it up for now back here in a half hour. you know sometimes you see a story and it seems so for life you think you understand it and then you glimpse something else and you hear some other part of it and realized everything you thought you were going to charge bloggers is a big issue. more news today violence is once again flared up. and these are the images go girl has

been seeing from the streets of canada. trying to corporations are on the day. good afternoon and welcome to capital account time more listeners here in washington d.c. vizier headlines for april third two thousand and twelve u.s. president barack obama gave a speech accusing republicans of social darwinism with the budget in its cars that they passed in the u.s. house of representatives last week. is antithetical to or turn history as a land of opportunity and upward mobility for everybody who is going to work for but how much opportunity is there really left exactly in the u.s. we speak to dr mark sawyer publisher of the gloom boom and doom report who says

well destruction and social unrest may be on the way for western economies and yesterday wall street had a strong start to the second quarter with the s. and p. five hundred marking its highest closes mid may of two thousand and eight and then today we saw that come down as apple m c minutes came out and revealed that the federal reserve is holding off on more monetary easing unless u.s. economic growth cultures where inflation goes below two percent so why is this gone risk on and what does it mean for the economy that this is the way we're always looking at things and we've heard talk of a possible student loan bubble a more than one trillion dollar debt problem would appears some senior citizens are on the hook for it along with kindergartners we'll explain let's get to today's capital account.

now as we've seen stocks rise to their highest level since two thousand and eight and then fall a day later is. indicate hey maybe the fed isn't looking at more quantitative easing at this point it brings us back to one of the proof debates we've had on the show before the inflation deflation debate so you have traders they think decisions on whether they think central banks are going to be successful in inflating asset prices or risk gone or unsuccessful and we see deflation in asset prices risk off now you could also say that this is a battle between the market economy and the economy desired by policymakers and their models now earlier i had the pleasure of speaking with dr marc barber he's founder of marc barber limited publisher of the gloom and doom report also author

of many books including our producer dimitris favorite one this one tomorrow's gold asia's age of discovery now dr farber told me the issue of inflation and deflation isn't that simple exactly because inflation is the increase in the quantity of money and credit and there are symptoms of it they can show up as higher wages or food prices cetera but the problem of printing money is that no one knows exactly where it will flow so in the ninety's you saw it flowing to the nasdaq and then there was a collapse and then it went into real estate and when that collapsed later it went to emerging economies so where does he think the money has flown now listen. these. last year you were. who are. you sure.

are the wrong. they are all of the same crime with the same intensity and then bubbles up bills and make the flame the issue of inflation inflation should be essentially into question which asset prices are going to be even trading and then will collapse what do you think we are right now what do you think has been inflated and what do you think is going to collapse well the equal of mr bernanke he has been badly inflated. but at sight from and it we all sort of mr obama because i don't but i would say government that is badly inflated and also if you look at the income and wealth distribution in the world we have or had a tremendous inflation among the so-called one percent there not even one percent

of the population made each quarter of a percent of the population. people with but millions more and these people become the names we reach we are. billionaires even when i started to work in one thousand seven feet in the seventy's it was wrong. and ninety eight because of. creation we are. now officially a quote from rick billionaires are actually. or. are not known for. they are at least fifteen hundred. and you know my question since you did mention a seventies i want to kind of compare to when you were coming up as an investor in that time and terms of how much people were guessing and questioning what impact bubble and policy and central bank policy would be and the way that we see it today

with you know every time you turn on a t.v. at this discussion of restaurant kristoff people guessing and betting and government policy and its impact how similar or different is this from when you were coming up as an investor for example during the stagflation of the seventies when you're asking a very important question because. well the bailouts were necessary. if you look at the origin of the crisis and the cozy they were actually in conventions by the government know to be. keeping interest rates artificially low create bubbles in the first place and don't forget what of the big

policy mistakes that was the. policy made. including. freddie mac. two for all the organizations that so called government sponsored. most of them went. bankrupt like no other company before it was expect whatever the government does. it's much worse than the private sector so it sounds like you are saying that it's gotten worse my question is we live under the assumption that the us is a free market economy where do you think we are do you think it's fair to say that we live in a market economy anymore or a mostly market driven or is it worse than that where are we what i think is the same question we have democracy in the west and the world but people are free when i travel through the us through immigration through airports to

individualize. i think. government could. actually the straw the market if you think about it we have. we have cost of living increase or say five percent or so people who. live. there first. otherwise they are faced with an extra. obvious to everybody. but if you would have at these prices.

hundred thousand dollars a. year that only give you five thousand back it was rationed right i think that having a five percent. to purchasing power by five percent and it's basically killing decent people benefits forcing actually people to speak to them or forcing people to just be financially for a project or a saver in the u.s. and you don't want to take that risk and you've been very clear as far as what you think the fed is going to do to print money as far as the eye can see in that sense or thanks in general will continue to print so given the fact that we've already seen a massive amount of money printing in the us it's really only been a package of paper over a lot of problems in the economy my question is given the monetary system in the way that it works is it even possible for central banks to achieve what they're trying to no matter how much money they pump out. not is

a very good question you know there's money printing we're. getting more and but the difficulty is to know on which. one to work anymore basically ever believes that central banks can control economic activity like someone who drives a car and price on the accelerator and then on the brakes. bought this book for central bank nor for any economy and we know now off the. experiment comedy is meant to be comedy what the complete disaster of government intervention might have been but this is precisely what the federal reserve and the treasury are trying to do and for story move over time it may work in the sense that the stock market goes up for a while to. go up if the i mean i've seen how you inflation country.

or argentina makes the call. and during the money printing phase stocks sometimes went up like five hundred or thousand times within just one or two years and the whole face been cracked but the whole fix this i think will happen and will what do you think it'll translate to politically when you say that and i know you said eventually we'll see social unrest our politicians will turn back to war so what hi there why isn't he going to be fighting them. i wish to let you know if the u.s. the u.s. has been very good at finding enemies anywhere in the world where they want to find someone. but i would say my time table is right because. if you look at the last two years. money printing

essentially if they did a very narrow group of people the so-called one per. page it's that one percent it's a quarter percent of the population and a large part of. the safety percent lower income groups would make the lower middle class and the working class their standards of living have an increase in the years. and they are more impacted that twenty years ago the u.s. is more in that than thirty years ago are you just have to look at this. now are both compilers yes well you know they will be repaid. anyway so. they will continue to print money not right away with us and be a fourteen hundred i say yes and b. drops one hundred a poor hundred points for sure it will be money for sure they will beat you

restrain if they don't drop the s. and p. drops were thousand will be q e four prime six whatever i think it is and one i mean you really want a standard of living or that middle class and the lower classes right will have people that own shares and gold and maybe some real estate in selected areas but this content among the population will grow better next station is how do you sack corporation so you either target the minority group say we've seen now x. repeatedly. skolnik stack i think unjustified because we're all the others have also done or no exception and if that doesn't happen they will go to war and they'll find that enemy and state enemies in stripping or send we all kind of old system and care and fight the enemy and so forth and then eventually

the whole. bubble will be in for a kid to hold their revenue to market. they are i don't know how trillion. there even if it were imagine what a trillion is is this thousand trillion yen and this whole bubble it will be if rated one day it will be massive wells destruction. still ahead at one time about a decade ago dr mark probert advice for young people involved moving to asia and concubines well you will not believe what he says now as part of good bye how times have changed you'll hear it after the break but first your closing market numbers.

we just put a picture of me when i was like nine years old i just had a look through. the contest and i am in total get over friends that i love rap and hip hop is a manuscript. that is kind of a big yesterday. i'm very proud of the world with its place. but you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and cheers you some other part of it and realize that everything is ok you don't i'm sorry welcome to the big picture.

what drives the world the fear mongering used by politicians who makes decisions compelled to break through. who can you trust no one who is human view with the global machinery see where we had a state controlled capital. it's called sessions when nobody dares to ask we do our t. question morning. welcome back our guest is dr mark father fund manager also publisher of the gloom boom and doom report now before the break he was talking with me about the political consequences of the wealth destruction that he predicts is coming and

these include growing discontent and attempts that attempts to distract the discontented in his view and also the prospect of war so i called up the bullshit revolution happened during world war one is there a threat there could be some kind of major revolt siller that in countries like greece or spain for example where the public debt will jump to its highest level since one thousand nine hundred ninety this year as their economy sinks into recession and the country is under intense pressure to cut its deficit and repay its debt without outside help or even the us you know could we see social unrest become an even bigger force for change than war europe's. greeks. are since it was. already go. through.

and. it's yours and you know you suggested that rural real estate might be a good buy because hey at least people are on your route so is this why you've recently been suggesting buying real estate in southern us areas like florida and georgia outside of major cities of course. yes i think if i look at the future i think for the last five thousand years this of for security because the walls and essentially fortress systems so the people who. were actually better protected than the countries in this country where say roaming herds of a cursory or us forces would prosper and to sclerotic rinsing

but i think that's very dangerous because say if you're a city or in washington d.c. . or we. won't you have a major problem which you would have if you live. in your. so is that why you've been suggesting some of these real estate opportunities in the southern u.s. yes and i was a statistic that if you are far you have to have several concubines after before arc can't you find there an important thing you know that's not the only time you suggested it yet are the only time you've suggested that into mars goal you had an interesting recommendation for young people that involved moving to asia starting a business in asia i think it involves the can i give guidance perhaps some other

color playing so what recommendations would you give to young people now in their twenty's and thirty's well prepares. for. the rest of the world who turn aeration ip long. post or ninety. forty six. maybe even. everything got better for us you know salaries went up when i left university i could choose many different jobs not not a problem to find a job but which the breakdown of the companies and socialist ideology that three billion people have joined the global economy. because of the. people can be educated quickly. they can learn without having to buy a book because you were born in a small paycheck yet again. you just called the quality.

read everything on the computer. among young people much more competition. i think. young people. can. come imagine already. huge competition for people about the hungry people that ever have anything in. the western world they want to achieve and prepare the word seven days a week. before hours a day. sixty five days a year and that is a huge competition and so. i think young to lower their expectations and i believe that mentality in the western world in society where everybody says.

we have a free market then a capitalist system when something goes wrong. faith that god does work. that you. so he's basically saying lower your expectations or be hungrier and either case a little more bleak than moving to asia and getting some concubines i'll leave you on that note that was dr mark fund manager also publisher of the gloom and doom report. we. are i don't know how we can come after that but we're going to try to wrap it up with

some loose change we have dimitri and shannon and mark mentioned student loans we know they're more than a trillion dollars he doesn't think they can be repaid well look at this it's not just college students people in their twenty's thirty's that are only money and need to pay these loans to to stix just released by the federal reserve bank of new york say that americans aged sixty and older still owe thirty six billion dollars in student loans these are sitting senior citizens ok and it also seems that some parents are state and bring on the debt and lining up for it just like these competitive kindergarten parents take a look. as you normally would see can't we just like would like try to you try to get deals there but the deal here is just trying to get the children into the kiddie garden because getting. so they're camping out for their kids to get educated or gardening you've heard how competitive parents are in new york i know

particularly well now parents are getting student loans for their children as young as five according to smart money which is one of the largest providers for loans for k. through twelve education they're on track to finance twenty million dollars in loans for the two thousand and twelve two thousand and thirteen school year and just to give you context of how that compares in march the dollar amount of these loans was ten percent compared to a year ago so is this student debt bubble going to encompass the entire population from kindergartners to senior citizens and for what the jobs that are available aren't necessarily jobs that require a college education right i agree and it's not just that there is the the the student loan bubble the american education system is a joke some of the dumbest people in the world are the people who come out of this system ok yeah you have some good colleges but the reality is people take all those that to get education that ultimately. and getting wasted and don't

remember ninety five percent of college time and by the time they're out there are no anything being i don't know about being someone who did value education and did very much value my education and benefit from it with student debt though i should say i think that the bigger picture here is evaluating what you're coming out of school in order to do any kind of a not analyzing it more on a cost benefit basis more of a risk analysis basis do you really look at it that way as a business because you're not going to necessarily get some high paying job to pay back these loans especially not of mark five years that actions are right that those who are saying that people actually go to school or have they have no real. they're entitled to their college experience in america our ability to actually see the education they're not like i want to learn i'm hungry i want to succeed know that i want to go spend four years and hang around the dorm and have going to go from dorm to dorm smoke some pot and drink some out all the must my college education of course of the second quarter anymore i got

a lot of whining about it going to find jobs but should be spending more time learning in school as opposed to rocking a boat for a worthless education i do think you're on to something with kind of a middle class entitlement a college education that doesn't necessarily value the classroom experience every day shannon you want to jump in you're jumping off of i think the lower you go for each i feel like these are helicopter parents thinking that their children are entitled to a private education and that this primary schools and high schools and things like that where you never know if your child. has a problem it is true and the language that i was raising grandchildren well and are going with no they will end up saddled with the debt or taken out a lot of your kindergartner pecan or gardeners not on the hook for that let's move on because the hope of revitalization courtlandt city is in the air their brand new casino the rabble is the first to open in a city in twelve years two point four billion dollars it was halted during the recession but the governor chris christie put all of his chips in offered two

hundred sixty one bucks in tax credits to be used for economic redevelopment so will the house when well here's how gaming is going in atlantic city gaming revenue for this city is down thirty six percent and this year as lead it to the city is forecast to see its second ranked ranking in the country as a nation second largest gambling destination i should say to pennsylvania. so is this essentially the only hope for the u.s. economy is to bank on vice right now this is the american business model it's person's right it's kaiser's casino gulag state so you have lots of prisons and lots of casinos are and this is the casino version you basically get of people's hopes right and if they win they get a chance to be part of the reality t.v. show or on the casino if the loser goes the gulag and it's not just vice in the us i should mention that in canada a recent court ruling made major moves to decriminalize laws of prostitution so maybe this is more widespread we're going to leave that for another day but you can

decide for yourself and let us know on our website you can give us feedback at youtube dot com slash capital account and that's all we have time for thanks for tuning in don't forget to follow me on twitter at lauren lester and from everyone here at capital account thanks so much for watching and have a great night. for . me.