that was funny but it's closer to the truth from the right thank. you it's because one whole attention in the mainstream media works side by side the joke is actually on you. and our teen years we have to print. because the news of the world just is not this funny i'm not laughing damnit i'm not how. you guys stick to the jokes well handled in the us ok.

no there i'm marinating this is boom bust and these are some of the stories that we're tracking for you today. first up away are the gold and that's what germany's bundesbank is saying to the new york fed we explain coming right up then dennis gartman is alive on the show today he's giving us his expert perspective on job growth and the future of the u.s. economy and in today's big deal edward harrison and i are discussing valuation test bubbles and how soccer player hummus rodriguez's eight million euro price tag serves as a warning to us all want to look like the warning it all starts right now.

with. our lead story today berman goals now recently germany has been actively trying to repatriate its gold which has been stored for safe keeping as foreign banks in new york london and paris however getting their gold back from the new york fed has proven to be a tad more difficult than expected the bulk of germany's. gold reserves are parked in the manhattan bolts of the federal reserve and recently the german government has been moving to get back much of its gold now back in january germany's central bank the bundesbank announced that it plans to repatriate all three hundred seventy

four tons of gold that it had stored with the back to france in paris as well as the three hundred tons held in manhattan at the new york fed and a plan to do all this by twenty twenty however the bundesbank has only been able to retrieve thirty seven tons of its gold five tons came from the u.s. and then the rest from paris which has prompted many to question the actual existence of this gold in new york but hold the phone while the german bunds thing hasn't changed policy two weeks ago german chancellor angela merkel's party decided to drop the issue altogether peculiar now norbert bartley the budget spokesman for angela merkel's christian democratic bloc in parliament said quote the americans are taking good care of our gold objectively there's absolutely no reason for mistrust but is that so mr barclay well not from the u.s. side recent revelations demonstrate that the u.s. in the wake of terrorist suspects living in germany acting on nine eleven began

treating all german communications as suspect their chancellor's included famous n.s.a. whistleblower thomas drake told the german magazine der spiegel that after nine eleven germany became quote the most important surveillance platform for the n.s.a. abroad and now u.s. mistrusts has also led to german mistrust just last week the german government announced that it was pulling its contract with horizon due to fears that the internet provider was allowing u.s. agencies to spy on the government's communications and just this weekend we learned that despite president obama's assurances that mrs merkel is communications were safe the u.s. was still spying the germans caught a double agent working for the u.s. who was spying. on the german government's investigation of the n.s.a. spying that's the that's the us fine on you for investigating the u.s. spying on you oh oh and by the way in case you've got germany in the u.s. their allies remember the crazies so at the very least spying is for american

businesses as we can see it arises and at the very worst it could lead to the german government not trusting you you i'm talking to you the u.s. federal reserve with any of its gold now the banking system is built on trust and how do you prove to folks that you're trustworthy your reputation say what you will but this does not help the rep of one of america's most important and powerful institutions the federal reserve. cause winter i was a little bit skeptical of the weather scapegoat that economists seem to be implying and recently q one growth was revised downwards two point nine percent and that's the largest revision on record so i'm a little bit skeptical about all this cheerleading that we've been hearing about the latest jobs report in june and to get an expert perspective on the issue i'm

joined today by dennis gartman publisher of the gartman letter so first and foremost denis thank you and welcome back to the show but you know the u.s. economy seems to be picking up steam and last week we saw that job growth averaged two hundred seventy two thousand per month last quarter and private payrolls three month average of two hundred twenty five thousand jobs is near post-crisis highs so here's the question are you upbeat on the u.s. economy. yes i am i'm actually reasonably upbeat on the economy it's not just jobs that i pay attention to i pay attention to what's going through our various sports here in the united states i pay very good attention to what's going on with tax revenues there are many things that i have learned to count upon but but i know this people don't pay taxes on profits they think they're going to make they don't pay taxes on jobs they hope they're going to have they don't pay taxes on money they think they might get people pay taxes on profits that are made hours that are worked and taxes are. to the federal government and to almost every state

government by about eight percent a year that's consistent with the same amount of activity that's going through our various ports i watch the port here in norfolk virginia and year over year we're up about eight percent there's more container ships coming through in both directions exports and imports so quite honestly aaron i'm i'm reasonably optimistic about what the economy is doing i understand that there are all sorts of problems incumbent in the in the non-farm payrolls i know the. some of the gold bug folks who have decried the strength of the economy for a long period of time will take issue with this but i'm sorry port activity is up rail activity is up tax revenues are up it's hard to believe that the economy isn't doing anything that getting anything but getting better and yes it was terrible this winter and i do actually believe that the weather was an inducement to a a decline in g.d.p. i don't think that we were actually down two point nine percent i think that was a goofy number i suspect we're probably closer to down two percent not two point nine but i do think the numbers we're seeing right now are indicative of

a stronger economy i could be wrong but tax revenues are up port activity is up rail activity is up hard hard numbers to argue with now here's the rub in q one the u.s. economy contracted at an annualized rate of two point nine percent that's a huge fall and i know that that's the answer to your question of all that but how can this not be relevant to the underlying strength of the u.s. economy. it's over it's done that's that's activity that occurred four months ago five months ago what do i care about what happened four and five months ago what i care about is what's happening right now what i care about is what's going on next week and next month i really don't care about what happened in january february and march of this year it's over it's done with markets look forward they don't look back aaron and so the fact that we are down two point nine percent to me is absolutely an important at this point ok very fair now i want to say that i'm

worried about the sustainability of recovery given or wage growth and these high debt levels that we're seeing so here's the thing real hourly rate wages they're essentially flat from june two thousand and nine to may two thousand and fourteen so what's your view on this it's not going to go anywhere other than remain flat the problem it's something that i've talked about in a speech after speech after speech that i've given for the past five years if you think that your high school graduate in the united states and that you're going to live a life that your parents lived making a middle income a middle american income you're wrong in the modern world the automobile worker if there still are any left in detroit who used to think that he was competing with the automobile worker and windsor ontario really is competing with the automobile worker working in china the automobile worker in japan the automobile worker in malaysia the automobile worker anywhere else outside the united states where wage rates are extremely low and likely to continue to remain low we're not going to pay the wages of the past for middle income workers for the united automobile workers

for the united rubber workers those days are gone we will pay for for brilliance we will pay for insight we will pay for computer capabilities we will pay for engineering we'll pay for medicine but we're not going to pay for labor and therein lies the problem that if we do have a problem in the united states that is the problem the wage growth has stabilized it may be two percent annual growth and you can see. surprised it's that high i think if there is a a deflationary force out there it's that those wage earners outside the united states are keeping downward pressure upon wages here for what used to be the middle and the middle class dennis let's cross the pond here you know the data coming out of germany shows weakness in last week we saw german factory orders were down and today we see german industrial production missing expectations for third month in a row and i p declining it whopping this is a big number one point eight percent month on month in may so what's going on in

georgia land well i think what's going on in direction is what's going on in europe generally i think they're making a terrible mistake in the in the continued overt austerity required of them whether it's required of the greeks whether it's required of the spanish of the portuguese or the italians or now even of the germans this this drive to austerity this urge to curtail any sorts of debt this urge to get smaller across the board without cutting taxes without doing the things that make business competitive i think that's the weight that's weighing upon europe so i'm not at all surprised to see that german numbers are ill it is not surprising at all to see french numbers that are ill it's not surprising at all to see an european numbers that are economically ill we're doing the only strength in the world right now it tends to be china tends to be the english speaking countries us canada australia new zealand and even the u.k. but germany and the rest of continental europe i think is doing itself

a terrible disfavor by continuously remaining austere under the guise of politically correct. conservative methodologies of accounting i think they're making a terrible mistake now just looking very quick question here on gold reserves the germans have been saying that there were going to repatriate reserves from paris new york and london i mention this in my headline but given that they have any reason to do so. well if i were the germans and i've had my gold stored in the united states and france for since the end of world actually since for his war one i'd i would like to have my gold back in my own vault so i don't see anything that's unusual about that demand i'm a little concerned and the operative word here is a little i'm a little concerned that it's taken us so long to repatriate even small amounts of gold but do i actually believe that there is something the ferias going on that there is that the gold is not there not really it's hard to move gold it's not the

easiest thing in the world to do these vaults are well down in the ground you have to get the gold out you have to get them into into trucks you've got to get them into airplanes you've got to it's just a very difficult procedure or it can be done and i really don't think that the the gold bugs and i'm reasonably bullish of gold at this point in non-dollar terms i don't think that the gold bugs have a great deal to argue here saying that maybe the gold's not there it's i've been down to the vault and. h.s.b.c. thirty five floors underground there's plenty of gold there i suspect there's gold in the in the fed too so i'm not surprised the germans want to back if i were if if my gold in the united states were over in germany i'd want my gold back does he have time for one quick question i thirty seconds but i want to ask you how do you see spain you know the seven year high in the manufacturing index this good news now yes absolutely spain is doing better how could they possibly have done worse greece isn't doing better how could they have possibly done worse portugal's doing

better even italy is doing better and i had to twist the question just a little bit i'm really quite impressed by what the the new a talent government although as a leftist i think he's doing a very good i'd like renzi he's actually talking about cutting taxes so i'm impressed i think all of those countries i think are doing things better than his germany then is france than is finland i'm impressed dennis thank you so much i wish we had more time it's a pleasure having you on as always they love your insight that was dennis gartman a publisher of the guardian letter. time now for a very quick break but stick around because when we return the publisher of the so laurie report popper in austin fitts is on the program and she is discussing the recent supreme court ruling on the area which t.v. and in today's big deal edward harrison and i are discussing how soccer player homicide because the eighty million euro price tag serves as a warning to us all now before we go to break here are a look at some of your close numbers of the bell come on back with us.

this weekend washington well it's a mess that is being stressed at least numbers of the media candidates for the office even covering it issues are actually back to and doesn't do too much for ad revenue line tech agriculture giant takes on a seventy six year old american farmer in the studio fallout do you think this is going to the create or the cia do you think this is what's triggering the race for so long just to put you in the world it's also the largest debtor nation to breaking the set is mostly about alternatives to the status quo but what might be real alternatives to the point that looking for the american dream the next they were just trying to survive it's time for americans and lawmakers are forced to

wake up and start talking about the real causes of. the martin the stories we cover here we're not going to hear any right other big story that extra headlines and talk there's a reason they don't want to deny all that are important and telling the truth is that we. now let's break the set. welcome back now in the wake of the financial crisis we've seen the u.s. government prop up the financial system in an effort to maintain stability and order but these actions have dealt a serious blow to the credibility of our economic system as a whole edward harrison spoke to catherine austin fits the president of so of our incorporated and publisher of the solari report about some of these issues that

were discussed how the supreme court's ruling on aereo t.v. made him question the legitimacy of the status quo of institutions here is what katherine had to say. the status quo is very slow to lose its prey and the problem is once it's lost it's spring and you get these enormous shifts in thinking and in behavior i have no way of knowing when we hit that tipping point but i think the you know you seen a series of judicial decisions and a series of mean horseman decisions over the last you know since two thousand and six in the engineering of the housing bubble. or you know the brand is deeply shri and that's why to me you're seeing the leadership make all sorts of moves to try and ensure credibility but i think this year's elections in the in the united states can be in theory very interesting and we just saw you know in europe you saw the dramatic shifts that i think were a little wake up call and in

a certain certainly frightened the g. seven in the in europe and the same thing could happen here this year in terms of actually maintaining stability it was interesting that stephen roach he wrote a book recently called on balance. it was about very rich yes definitely and he's one of my favorite economists former chief economist of morgan stanley and he said in terms of maintaining prosperity not only is it about the fact that we shouldn't have this huge debt accumulation but the united states really needs to rebalance its really. ation ship with countries like china which as i was mentioning before in the ascendancy do you agree with his line of thinking there i i agree of with much that roche said so i think there's two ways you know you you have two problems when it comes to rebalancing within the united states because if we're going to rebalance with china we have to rebalance the economy within the united states there are two holdups one is you have a very high percentage of the parking lieschen deeply dependent on governmental

subsidy and you're going to have that's going to require fundamental reengineering and you have many constituencies who are deeply dependent on since sugar centralized control of the subsidies and. to be reinsured an optimize by place so you know if you're going to if you're going to take the return on investment on government money from a negative to a positive you're going to have to allow certain bottom up sort of reengineering optimization and there are a lot of corporations who are dependent on those cash flow and so in a to give you an example on the food program if you're going to run the food program in any county efficiently food subsidies then you know j.p. morgan chase is going to lose a lot of contracts and that's going to be a political issue obviously because they have the warmest plough and you know not to mention financing in managing debts for the u.s. government the other problem is you know that traditionally in this country we've had a very significant work by shipped over cash flows that break down into thirty one hundred counties and if you're going to reengineer the over cash flows you have to

reengineer the covert and of course that's an area for which there's very little transparency and there is enormous political sensitivity so i think the question is we don't know you know we all know we need to change how are we going to get to the invention or i mean come up with something that really gets us from here in there because we're going to have to face a lot of skills in the closet well you know something in terms of change that you've talked about is reserve currency status for the united states and i want to prove that a little bit with the here the any of us is use hard power in terms of military force in the past as a to maintain its global superpower status but i think a lot of people underestimate the degree to which the reserve currency status of the united states is actually a source of hard power could you talk to me a little bit about how these shifts in currency status going forward will impact the united states well we don't know. all right you know for five hundred years the

western world has been on what i call the central banking warfare model and that means the central banks print money and and the military make sure everybody takes it uses it may keep their will quickly to going essentially in the worst case in force and that's why when the system starts to break down what do we see we see war and so it's been a very successful model for the cheese seven it's been a way of getting essentially natural resources and labor cheap and obviously you know the g seven chose to implement the w t o enter in the process of rebalancing the global economy so we're moving away from that slowly it's a it's a been a gradual and a menage change it's very clear again and again as you can tell it's very messy i think where the leadership wants to go is to have a digital currency you know i don't think they really care whether you call it dollar or want them as long as it's digital and i think the you know the migration of the currency to something new will depend on

a lot of factors at work at the biggest one being you know how long does it take until it's essentially everybody who participates in the financial system has a smartphone and can interact and that's why i think if you want to understand the evolution of the currency at a wholesale level you want to watch what's happening with the s.t.r. and with the sort of dissemination in rebalancing of the gold supplies but the other thing you want to do is you want to watch apple amazon and google with the development of their wallets because i think they're you know wouldn't surprise me given them given the u.s. satellite systems given the u.s. internet dominance if you if you ended up seeing the cheese seven sort of tender recruited local population through through there or online wallets we know it's interesting it could be actually that we move into a digital world increases centralization over the short term i mean i hear a lot of people pundits talking about whether or not the united states. should make

its currency completely digital in order to force everyone to see your discovery of transactions and to be able to potentially institute negative interest rates do you think that digital will be actually something that's positive for people or is going to be something that is going to increase centralization i think it's going to increase centralization and i think it's going to increase the power of the one we mirror because we're living in a world you know the market economy depends on the shared money i.e. tax money being transparent and we're in the opposite we're in a world where all the government money and force and credit of the most powerful kind of quickly nontransparent us the citizens you know we cannot see financial eco systems by place so that we can align environment and financial systems we can and you know align people in financial systems what i call the popsicle index with the dow jones index and that that suppression is one of the most powerful tools you know behind centralization and and as long as you have

a government which is private and a particular issue which is naked to the government i think you have the basis of challah terrorism huge. relations were so important to this discussion and why you see literally saying ok i want to be able to buy a coke in moscow without the cia knowing five seconds so i'm going to require visa and mr kurtz of those reserves and we're going to institute a national commitment system here so you know heart heart of this debate about the global currency is your and much of the debate that's going on about the satellite systems the ocean cables. and the and the furious clearance of human systems because. that was catherine austin fitts publisher of the so large report time now for today's big deal.

i think the all time would be wonderful mr edward harrison and today edward and i are discussing valuation tech bubbles and how hamas rodriguez is eighty million euro press tag serves as a warning to us all now colombian superstar homicide because performed extremely well during the world cup and although colombia was ousted by brazil stuff it certainly helped rodriguez a star power so i want to ask you can you give me details on who currently. rodriguez is with and who wants to buy him yes. don't call me james you know the fact is with it's monaco and they're one of the leading friends. and he was just brought on for forty five million pounds for forty five million euros i should say from porto which is a portuguese team ok and so he's only been there for a year but because of the world cup his price tag is essentially double right and you were telling me earlier that you thought this rodriguez mania you know has

similarities to the tech bubble which is a funny parallel to draw but a really smart so can you explain how buying rodriguez that eighty million euros is a little bubble. you know when people talk about the stock market always saved by a low. you know that's not supposed to be but that's not what people do in the stock market what they do a lot of times is they chase returns so whatever is doing really well they chase that and so they end up buying and selling low and so we're seen with stars like. you know there are other people like tortoise who when chelsea. you know being bid up because they're doing so well recently but then one termer was right there the goober's and that's the one that i was looking at done really well in the pre i.p.o. market but really what differentiates guber from halo or lift in these other companies and what's more is this remember we were just talking

a little bit before that there's a twenty percent price cut versus a halo and versus the new york city taxicabs how is that not like goober's the next groupon that's the way i look at it is not actually you're buying high and then you're going to sell low because it's going to end up like groupon in a price war and it's not to have the margins that you think it's going to right now i ask you can you walk me through how as a club owner or an investor or just a regular joe basically how one should approach assets you know with high market value it will usually what you should look at is the sistine ability over a period of time you know the discounted cash flow models the basic model that you're looking at and what you try to do is take a look at future cash flows and look at a reasonable case your base case as to you know what market share going to get what your revenue growth is going to be how your margins are going to respond over time and then you know have a solid steady state after a period of time if you have a mode that allows you to capture growth after

a you know good like five ten year period right and just run the calculation through and see how that compares to the public value if you're not looking at a number that's. a lot higher than the public you have to ask yourself what kind of margin of safety do you know your margin of safety is five percent that's not a very good margin and if you're below what the market is saying that's telling you that there's potential overvaluation for that stuff now we only have a couple seconds left i want to ask you you know in the case of. james or yes you know if you're out there and you're looking and you're interested in. shit is it better to wait and buy him when he becomes more appropriately price or should you buy him now because his growth potential is so high what do you think well you know that's the interesting thing you know one of your favorite guys michael lewis he wrote that whole thing in the oakland a's how they got to prominence because they were actually looking at. low and they were going for the superstars they were going for a team getting players on the cheap and as

a result performing in other teams from a financial perspective and even on the field as well and you know you get a book and a movie made about you if you do that there's a bonus there to add thank you so much as always that's all for now but you can see all sides on you tube you tube dot com slash the best art and please send us some note some things about facebook dot com with us r t and please tweet out us at any rate at edward and it's from all of us here combust thank you for watching us the next time the valid. do you like me you want your comedy news with some t. comedy news to be a bare fisted no holds barred fight to the dad. like a vampire whining into the next in the corporate elite the billionaire freaks well

they're going. well that's what you get with my new show projected tonight. think. i would rather ask 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 r.g.p. question for. ukraine

rolls out a rocket to the rainfall blanket bombardment obliterating property infrastructure and lives in its reconquest also the east. the un's chief confirms deadly sarin gas was inside two cylinders found reportedly in rebel held areas in syria the substance has been blamed for killing hundreds in the civil war . and a front seat such as shook the u.s. dollar of its privileged status of a dominant currency following in the footsteps of those who have already shifted away from america's financial supremacy.