i'll have a great night. science technology innovation all the list of elements from around russia we've got the future covered. hello there i marinate and this is boom bust here and some of the stories are tracking for you today. yes the shutdown is over news for those of you who might have been hiding under a rock in one of the newly reopened national parks yet the u.s.

bond market is now saved for a whopping one two three three months yeah you got or we do without that but in case you were just itching to crack open the bottle on the way you might want to hold off for a bit we have some surprising in say for you and live just enough undersell now joins us live from capitol hill to highlight the morsels tell lawmakers dropped into this last minute deal and bob talks with casey about the long term risks of big government debt our government debt that is and i tried to part of talk with a couple of self-styled preppers take the threat of post dollar armageddon pretty gosh seriously finally you might have heard about it before but never like this i'm talking about the modern day gold rush that is the hunt for a bit cryin now let's get to the show.

a collective sigh of relief can be heard throughout the u.s. now that congress finally ended the shutdown. per se and now the twenty four seven nonstop coverage can probably morph into feel good holiday stories that's what we'll see happen next now yesterday we have joked that the come black friday a day after thanksgiving that all of this would be but a distant memory to the turkey stuff shoppers and by january the latest g.d.p. figures will show a resilient economy and consumer that's right about the time that congress performs its next choreographed encore we're only today we saw this from bloomberg debt deal seen boosting u.s. consumers as the holidays approach wow did we call that now at the same time n.b.c.

ran with this as washington bickers main street slashes holiday spending plans bob inglis joins me now and bob whether consumers decide to retrench or max out their second mortgage and if it of yuletide spending they do leave it to congress to be more than generous to a select and very very few no one but you say i would expect nothing less nothing less now for more on this just scene underhill she joins us live from capitol hill just seen can you hear me. there you are yes i can no erin i'm here on capitol hill now just you know. there were some surprises and is one of the. just you know going to i'm going to throw a question at you and i do want to hear about all these poor because that is the funny part but there were some surprising provisions that they tucked into this debt ceiling bill at the very last minute can you tell us about those.

short now pork is one of the main staple diet here on the hill but even when it comes to some of these important bills like funding the government now some of the provisions that were included in the debt ceiling bill include funding for a late senator's widow so that would be over one hundred seventy four thousand dollars that would be given to senator lott and birds widow and now congress and usually approves death benefits when a member dies so this is not unexpected but strange that it was put into this important bill now there were also complaints that he's also one of the richest members of congress worth more than fifteen million dollars now another provision that was included were funds for a dam project and this was two point two billion billion with a b. billion dollars and that's called the ohio river project and this would impact both kentucky and illinois now senator alexander who is

a republican from tennessee admitted to requesting these funds citing that it would actually save the government in the long run but nonetheless strange that it was put into this bill to fund the government and finally one of the other things included four hundred fifty million dollars for flood struck areas of colorado well as i understand just wasn't there also funding for privacy and civil liberties board and is this a little bit of good news perhaps. right so this was about three point one million dollars given to a watchdog group meant to protect americans right to privacy now this probably came out of the n.s.a. scandals that we saw over the summer. just thank you so much come back to the studio looks like it's about to rain out there. now bob you actually come through with the bill that passed late last night what is this it's hard to seven seven five i had nightmares afterward sixty eight and. now there are two time

time frames mentioned within it both fine early into the new year can you tell us about this sure about three months from now january fifteenth we have another potential government shutdown why is this because what we've done we've kicked the can everybody saying that but we only passed a continuing resolution we actually as i like to say we have not passed a budget in this country since april two thousand and nine but we have approved the spending for the next three months or so and anything mandatory can actually be extended if it's approved by that date for another month so we're in the clear for another three months another date that we have is february seventh and this deals with something that's related but a little bit different which is the debt ceiling itself and that's the amount of statutory debt that the treasury can issue and what they've done here is they've simply removed it what they've done in the past congress has done in the past is raise the debt ceiling to a certain amount but there is actually no ceiling at this moment what happens the

day after february seventh every day is that the president basically says this is how much money we spend and call congress authorizes it and then the debt ceiling is raised by that amount so there's a little bit of wiggle room there now this is something weird and i correct me if i'm wrong here but it's my understanding the debt ceiling can be contested by congress is that correct yes this was something interesting and unexpected that i. the president has three days to look over and basically sign a piece of paper it says we need to raise the debt ceiling now congress has twenty two days to pass what's called disapproval so they can actually contest and while this probably unexpected given what the tea partiers have done to delay this process it's not completely out of the room or unexpected that they might do something to use this clause that's in there right now now we've been talking about the long term consequences of this and we know that standard and poor's was just in . is inches away from downgrading u.s. debt again as they did in two thousand and eleven again. what would have happened

how this actually happened and particularly how would have it it affected early twenty four sure we would have had a very low g.d.p. and would have skated into a debt ceiling debacle where we would have had a run in the bond markets it's that simple well there you have it sadly i don't think this is the last we will be hearing about the budget and i wish it was we have three months until you can talk about it again are right now coming up well what's the biggest threat facing americans that's a question we're asking here and it deals with that so does the amount of private in public even matter to answer these and many more questions i attended the casey research summit which was packed with a student observers and economists alike none other than doug casey author of totally incorrect was there to weigh in i first asked him about the significance of the amount of government and particularly that of the u.s. here's what he said. that in the world is very serious and if it's

defaulted on that somebody is that's a stock going to get paid back as well so this could. financial chaos another thing is approximately i don't think anybody knows the number actually but it's been a sort of the there are no. a quadrillion dollars worth of derivatives with a q. with a q that's the type of thing that obama's going to have to ask a science advisor how many zeros that house but fifteen maybe well three more that are trillions but we're starting to talk about the number of atoms in the universe of the next love approaching of a number. so this is very serious because here you have counterparty risk where even if your institution your broker your bank is relatively solid and relatively is the most you can say for any of these financial institutions in the world today. the counter party risk that they have in speculating in the

markets with these things i mean if that's the fault of one defaults the other defaults the daisy chain so there are so many weak points in the system i want to expand on your your statements on debt this isn't the first time that the u.s. has been in volved in a situation where it has a tremendous amount of debt an argument that i hear largely from the progressives but also some other people is that during world war two the u.s. took on a lot of debt and the federal reserve actually put a ceiling of about two point five percent on long term yields and the u.s. was able to climb out of that of course we had a man of much stronger manufacturing base back then what do you see as different this time around. well there. the big difference is that the average american was a saver historically basically throughout history up until the mid one nine hundred

eighty s. and since that time americans haven't been saving they've been borrowing they've been borrowing out of that saved capital so it's all gone at this point another major form of debt the people don't consider and i mentioned this a moment ago is the fact that there are eight trillion us dollars outside the us now what does that mean we don't export cars anymore we don't export very much of anything our main export is dollars we send the japanese dollars for sony's we send the germans dollars from a state is. we're exporting dollars and those nice people some dust products but those dollars are out there it's there the dollars outside of the u.s. are actually a form of debt and when those dollars when they lose confidence and they come back into the u.s. they're going to be traded for i.b.m. than boeing's but also for the title to the u.s. stocks and u.s. land and so forth and there are going to be trillions more dollars floating inside

the u.s. which is going to aggravate the inflation situation that's another form of debt so that was also very different and in those days the u.s. dollar was literally is good as gold up until the one nine hundred thirty three in theory at least you could take a twenty dollar bill to a bank they'd give you a twenty dollar gold piece at limited the amount of dollars the u.s. could print up and actually the amount of debt that to be created through the fractional reserve banking system so we're on a very shaky foundation that this point what can the average american do to protect against what you see for the future and to diversify and perhaps preserve some assets if we do see this this coming collapse well the biggest. threat to your personal well being today is the government frankly your biggest risk is a political risk there are plenty of economic and financial risks in the markets

which could be gyrating up and down like an elevator with a lunatic at the controls in the years to come interest rates going much higher the stock market going much lower and much higher in sequence it's very hard to say you've got to diversify yourself politically and internationally that means you should get money outside of the us open up a foreign bank account before and brokerage account for yourself which is increasingly hard to do though it's almost impossible to do it quite frankly there's no law against that for americans but you're going to find that no bank or outside of the u.s. wants your business because you're a liability as an american it obligates them to report and you get into the american system not worth the trouble so even though it's legal for you to do these things it's them now the difficulty of opening a bank account overseas has been made even more difficult by fact and that would be the foreign account tax compliance at and this is

a topic that we hope to delve into more detail in the coming days. now coming up i journeyed down to florida to talk armageddon preparedness with a new class itself preppers and they might not have swiss bank accounts but they do have a tool that turns your urine into water i'm sorry that's just very funny then later on bob and i talk big point decline they turned it down coming up and you won't want to miss. a. very large take on. that. back with senator gregg we're looking.

to cut. cut cut. cut cut cut. cut. cut. cut cut. cut. cut cut cut cut cut. and. i would rather as questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v.

question more. into thousand a financial meltdown caused massive panic throughout the country and many people today still find themselves in deeply in debt however one couple who don't fall into this category are mike and cindy jones and if financial armageddon comes again any time soon they'll be ready for it. probably a hobby call it a waste of time he can't tell you drink and river water maybe even call it a little bit of paranoia and there it is but whatever you do don't call it crazy mike and cindy jones are preppers nothing brings

a family together like armageddon america's fascination with prepping is on the rise and while some may argue that living for today is the best approach to life mike and cindy jones feel differently their motivation for prepping is based in reason i think that is going to be the most likely probability is that we're going to have an economic collapse or like super hyperinflation just because of the way the economy is the national debt and everything so we just figured that we needed to go ahead and stock up on whatever supplies we could just in case that happens if we don't ever to use any of this stuff great but if we do then we've got it it's such a volatile. world economy that you know one country's events can affect the whole world's economy so and and the way the united states is in such debt you know it could happen any time so what makes indian mike jones special aside from the considerable survival skill shared between the two of them is the fact that they're

part of an elite group of people living completely debt free how do they have all of this financial freedom well it happened when the real estate market crash what and. where we want to make a lot we were making a lot of money went to almost nothing because we were both realtors and you know that the huge impact yeah people just i mean just people stopped buying houses that year and so we had to make a change quick so we basically just decided we were going to knuckle down we sold everything that we owned i mean everything now with a little bit of sacrifice and a lot of self-control mike and cindy jones managed to save up so much money in only one year's time that they found themselves and up. to buy a home entirely in cash mind you in a gated community the home was in foreclosure and we all know foreclosures happen when you can't pay your mortgage people don't realize what it's been any year. on cable my gosh this on cable and these expensive cell phone plans that they've got

that i don't really need that doesn't make me who i am i want to do that i don't want to be strapped to a job where i have to go in every day for your life because you're going to trade your life for a job to pay for a mcmansion house that you're trying to impress your so-called friends i just don't want that i don't like that at all well we had one time and i don't want time we had all that stuff but we will work in seven days a week we didn't have things like that us so years of my life my lower back material today one thing that sure doesn't have the joneses is a lack of materials necessary for a worst case scenario situation we have a property that couple hours from here but a half tank of gas is all we need to get there so that we could we have a place that we know we could go to to live and survive if we had to and you know let's dismiss out of the engine no now. we're going to sign up for the fusion

can you tell us whether there well there's a size garden. that we can plant stuff and we have like compost and stuff like that all ready to go there's a big gas tank for like propane for like if we want to cook on wood gas. to heat our water where there's also well that's that is it's run electrically now but if the grid went down there was no power we just got a hand pump on it so there's water we got water filtration and a lot more of this type of stuff it seems like this is a big expense is it. this type of thing the putting the food in the five gallon buckets. is very inexpensive the way we live and have extra money try to save extra money where you put that towards the prepping because it's so important to us and while their financial house may be in order prepping seems like a process they may never quite complete will this is

something that you have to keep in the front of your mind you know it's have to be thinking about things in jacksonville florida aaron aid r.t. . well we're bringing you part two of the jones's story in just a heads up earplugs might be required as firearms will be heavily featured in that version of their story time now for today's big deal let's get to it. derek who must we are huge fans of innovators individuals reinventing the proverbial wheel excite and inspire us but those trying to remodel the world monetary system well they they just and raul us and regardless to where you stand

on the virtual currency that only exists in digital form bitcoin it's nothing if not innovative and the cottage industries that have sprouted as a result of this digital gold rush are nothing a block out either now selling shovels in california and eight hundred ninety four proved quite profitable for merchants and today virtual mining companies selling the tools needed to dig for because are doing just the same thing because they're digitally created by using powerful computers to solve complex software problems joining me again to day get to the bottom of this narrative being the hello again now bob you know there's a lot of startups here we have butterfly labs robo client acknowledges and coin chair and they're capitalizing on this bitcoin rush by quick creating the machines that are needed to generate a lot of heavy lift a lot of you have to take with bulldozers and finger tapping but you know at one hundred twenty k. pop on the lighter side in terms of what you're paying for these processors in the speed and power you get from these computers that's

a lot of money and not everyone's going to profit off of that investment i think it's that do you think it's kind of a sham industry in the sense that you know not a sham industry a sham industry in the sense that they know they're going to be profiting off of people's ignorance and i don't what are they please profiting off of people's ignorance i think if you look. the people who want to buy these machines there is actual money to be made now a person who's going to buy this has to do a cost comparative a cost benefit analysis and determine is the initial outlay let's say it's twenty thousand dollars and there are lower end models are higher in models that's one cost there's the cost of the input electricity these these machines do require a lot of electricity all these things have to factor into the calculation but you also have to calculate the expected price of bitcoin so who's to say whatever bitcoins are mine that a loss today might be worth something in the future and then while we're on the subject of the expense of these machines presumably people who have this much money to shell out have a bit of intelligence it's not as though you're giving a chainsaw i don't know about that i sometimes that's

a lot of credit to people twenty sometimes it's like you're putting all your life savings and or you're putting on a credit card in that when i start talking about i'm perfect going to be a billionaire with it when i start hearing about it so i'll get a shot at an ira and laura who are trying to call people in and encourage him to buy these twenty thousand dollar machines and i'll start worrying about that there's not a little but the way the industry and the cottage industry that came out of it will probably is kind of a loaded term and i think it's important to distinguish between a fad a legitimate business enterprise that is actually gaining traction traction in the marketplace and a bubble because bubble you have a market that has to incorporate whatever the people are you know it and it is it incorporates what the people are doing you can't have participation in a bubble without the common person i don't think we're anywhere near seeing a bubble either in bitcoins itself and that was a big topic of conversation when they were first going up or in the hardware supporting them now just yesterday the big news on the big client front was that by due which is kind of china's answer to google it's the fifth most visited say in

the world that they are now using their accepting bitcoin for security service feature and you know if you think about that it really says a lot about where bitcoin stands day and just you know a couple weeks ago we were talking about silk road and that was you know the black market bazaar you're using on a. quite and now. it's just that maybe how they're going to be right necessary location seems to be arrested now yes because it looks like the feds have effectively shut down some of the i won't even say questionable there were people who were trying to operate legitimate businesses but they weren't complying with the strict letter of the law i'm talking about mungo mt gox and the way that they were you know they let customers convert their dollars into bitcoins but they didn't go through all the regulatory constraints that we have in the same place by doing this a good thing that they're embracing bitcoin it probably means that the chinese authorities have blessed this so that's definitely means that china is yet so there is two edged sword there you know if you can't beat them join them and i think the

government regulators and the feds the authorities whoever they realized that it's time to regulate rather than to obliterate canada i was going to bring this up later in our discussion but i want you now because we're talking about chinese authorities one thing that they're doing in argentina the market there for decline is going up really high because people are hedging the probability of inflation the rate of inflation in argentina and if you think the u.s. government a name to big coin what do you think the argentinean government thing's going to people are buying it in order to hedge against the own currency of the country that's not a lot in and of itself no yes i think it certainly does and we saw something very similar in cyprus that was a result that was the catalyst for this huge run up in bitcoin that alerted to the media various alternative crypto currency concurrent with f.b.i. shutdowns i mean it's all these all this stuff is linked but i think who has the most to lose here it's the u.s. government i mean if you hold the world's reserve currency aren't you going to be threatened by something that people are embracing right and left that's gaining

traction in the media i would certainly things even even with all the volatility and maybe you know there's ways to make money off of that as well yes there is price volatility and people are expecting because bitcoins is limited in numbers that's the eventual amount that can be printed but mind is twenty one million right and it's necessary. regulate because of that because you know it's harder to work on the script you know like the highways in needed and the power to process this equation is really difficult so that self-regulation where they're there mining about a million a year is the rate and currently there's what eleven point eight million in the market so right will it have it's going to slow down but once you're into that one person who out out thinks the guy who says twenty one million i was in from japan. very got it wrong i apologize. but i mean that guy with some is going to think that i would i would have to think but i do love ok the algorithm itself is open source it's very unlikely to be cross if it were it would cause a loss of confidence in the currency itself so it doesn't matter if more bitcoins

were mind even if the currency itself loses the confidence of the people who want to use it they will lose purchasing power and that is exactly the same as huge price inflation or even hyperinflation same effect. cracking it would do any any good current crisis of confidence for the current. that's all for now but you can see all segments featured in today's show on youtube at youtube dot com slash boom bust our t. we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our teeth from all of us here boom bust thanks for watching see you tomorrow.

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prices in washington as the political turmoil continues a congressman at the center of the storm joins us republican congressman david schweikert who has his own ideas about how to solve the debt limit problem plus the man who was in the hot seat during the one nine hundred ninety five and ninety six government shutdowns former speaker of the house newt gingrich who has some strong words for washington on next on politicking with larry king. live taking on larry king a lot going on in washington we'll go straight to capitol hill and talk to someone at the center of all congressman david schweikert republican of arizona thanks for joining us thanks for being an old time fan of my old.