max they're all connected in today's headlines first bill gross in a memo says towards the paranormal in this memo he says markets are slowly imploding because there's too much paper and too little trust kill the paper bugs kill the paper bugs kill the paper bugs. all paper books both. now let's turn to the first stories here coming out of the u.k. u.k. house prices stay resilient despite pressures that average u.k. property is now worth one percent more than at the start of last year it is a remarkable performance considering the crisis in the euro zone the average price of a home x. in the u.k. is now at one hundred sixty three thousand pounds eight hundred twenty two whereas the average income for a working age household is thirty three thousand pounds oh let's use the titanic analogy. the economy hit the iceberg in two thousand and seven there was a hole in the hall of the global economy to patch up the hole and to right the situation would require higher interest rates but what we've seen around the world mervyn king in the u.k. ben bernanke in the us is to lower interest rates w

actually spot on all right now bond manager bill gross the famous bond go. to the bond market where you are the silver market. he says that markets are slowly imploding because there is too much paper and too little trust so this is kind of following up on what you're saying david margan but can you speak a little more about this well the bond markets really the key to the kingdom i mean there's so much more that we all have vested in in the system and what i mean by system is a global financial system and it's all based on debt and it's all based on the ability to pay that debt off at some point it's impossible to do so because more and more people are recognizing that fact a lot of people are waking up so now you get into what i call the in the financial survival mode in the financial survival mode is the realization of the truth that these debts cannot be paid so you either default on the debt and say we can't pay it to keep two cents on the dollar or you. default by printing the currency to the point where people won't accept it anymore i think the latte

bill gross, thank you very much. we appreciate it it. bill gross, as we said, biggest manager of bonds in this country. obviously that means he buys all that debt that this country is issuing. ron paul has energized and excited people all across the country this year. 40% of first-time caucus-goers vote for the texas congressman and if bill gross has any indication, he may have more staying power than we thought. let's bring in dave frum and james carville. let me start with you, david frum, important to note bill gross is saying he would be an obama man, but when it comes to looking that the republican field, he does not dismiss someone like ron paul out of hand, which it did seem like the establishment was doing and similarly, in our results from our strike team with rick santorum. so what do you make? do you think that these guys have the capability to become more mainstream candidate? >> ron paul has no capability of becoming a more mainstream candidate. he's a man of the margin, and i think if you are a democrat and you want to do a

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 sinc

bill gross, thank you very much. we appreciate it it. bill gross, as we said, biggest manager of bonds in this country. obviously that means he buys all that debt that this country is issuing. ron paul has energized and excited people all across the country this year. 40% of first-time caucus-goers vote for the texas congressman and if bill gross has any indication, he may have more staying power than we thought. let's bring in dave frum and james carville. let me start with you, david frum, important to note bill gross is saying he would be an obama man, but when it comes to looking that the republican field, he does not dismiss someone like ron paul out of hand, which it did seem like the establishment was doing and similarly, in our results from our strike team with rick santorum. so what do you make? do you think that these guys have the capability to become more mainstream candidate? >> ron paul has no capability of becoming a more mainstream candidate. he's a man of the margin, and i think if you are a democrat and you want to do a

the pimco bill gross but the c.e.o. of idea labs bill gross who has a new company said it's amazing you know he's telling pre-fab houses in india and he comes and he talks about it he has all of a sudden book buyers and hooks up with you know the u.n. and that is the dominant agenda from the perspective of all. i have on the sidelines warming asking people what they care about and sounds like me at a convention i don't go to any of the events but why but there are there are fish or agenda item was watching on t.v. dimitri what are but there's one official agenda item that they do want to bring it up it was in the briefing papers that you had and it shows what the top concerns are for the people at the conference this year there's the ones who tell you the events and top on the list is income inequality now this to me. on the rest and i would i would say venture to guess is that is that is a possible greece say that social unrest is now a tail risk for the davos. i like that and maybe that is why it's on the agenda becau

like well it is to the exchange rates and here and this is the wonderful phrase of my colleague bill gross at pimco it's like the cleanest dirty shirt and if a simple analogy your business trip is extended you can get to the longer what are you going to do you going to wear your cleanest dirty shirt that's what you got to do so the dollar is performing the role of the cleanest dirty shirt and lots of capital right now is flowing into the dog and not because it's great and conditions are great they're not but because it offers something better than the euro right and we're almost out of time last question before we go i've seen reports from him on opportunities in emerging markets you've been talking about their growth in this interview you used to head the division at pimco those bets on those markets were reportedly key to the returns you delivered at harvard can you talk about them those specifically in this paranormal world how are they faring against the problems the west is experiencing that perhaps are affecting them. so no one no one is immune to the problems of europe and the u.s.

the tail risk grows too and this this tail world is the world pimco argues we're living in and bill gross talked about by models that deal distribute distribution too so we wanted a fine example of an extreme buy model just for you this one just for fun this is for the women in our audience. here is by model distribution for child birth so here is the normal childbirth and you can see the the occurrence is relatively low what is more highly occurring is the following events that someone had the most amazing beautiful easy painless childbirth or endured the most horrific pain on the planet ok that's by modal distribution now that's just food for thought but now you know what that tales are and still ahead if you want to escape from the u.s. we've been talking about it we will tell you where to go with the help of our guest gonzalo euro gonzalo lira pardon me but first your closing market numbers. put a picture of me when i was like no years old on the only truth you. says and i am a total get a princess i love grabbing hip hop is that and. it was kind of a gesture for. you i'm very proud o

peggy noonan is a columnist for the wall street journal and bill gross is the founder and co-cio of pimco. peggy, looking back at this eventful year of 2011, protest movements, debt concerns, a credit downgrade for the u.s., the opening moves for the 2012 election, is there a story of the past year that you think has the most significant impact over the long term? any game changers, peggy? >> i'll tell you what's on my mind. it's not so much a game changer but a large theme which has played out in the world and in our society in the past few years. i think it sort of marks the feel of the 21st century as it begins and we're still at the beginning. and that is the fall of establishment throughout the world. and the fall of structures that we had come to rely on. there's what's happening in europe, there's the arab spring, there's the end of governments that governmental situations are set up that had existed for many decades. and the rising up of people in a sort of incoate force that will define itself and become itself in time. i guess i'm saying this was a period of the most extraordina

max they're all connected in today's headlines first bill gross and the memo says towards the paranormal in this memo he says markets are slowly imploding because there's too much paper and too little trust kill the paper bugs kill the paper bugs kill the paper bugs.

bill gross of ideologues and said you know he's here he has this new idea this new business pre-fab houses for india and he gets there and starts networking about it and suddenly out of customers and he's you know figuring things out and getting buzz and possibly business from it so that is what seems to be driving the agenda because you know everybody's the world sees what's going on you know maybe sound bites from these these forums on the stage and maybe they matter to the people that are on there but i'm seeing the view of that yes but but the congress center which is where all of this gathering we're all these people are when they're not on stage there and it's a very different thing what people are talking about and caring about. and i know lauren here recently i think it was just a couple days ago federal reserve chairman ben bernanke spoke and basically said the same thing he's been saying for years now that interest rates will once again be kept to near zero talk about what those you're meeting there in dollars are saying i know lawmakers and others and how this decision that's be

anchor erin burnett when she responds to bill gross about ron paul. but does know how the monetary system works and that's something i think they're wrong turn toward him and others don't have much of a clue on what i mean but that but this is interesting because i know you're saying already goes too far but you know a lot of the people on the strike team it's not going to surprise you bill they said my ron paul is crazy because he wants to get rid of the fed and i just dismiss that out of hand he's crazy dismiss that but we ask how can you understand the globe's economic problems without understanding issues of debt see the impact of federal reserve policies sound money that's what we don't get and what path is the monetary system and the economy really on you've got to look at those things so here to help us do that founder of gold silver dot com and author of this book rich dads advisors guide to investing in gold and silver protect your financial future michael maloney is here with us thank you so much for being on the show it's great to have you

it's creepy and it's the forecast of bon titan bill gross of pimco the toll of too much paper and too little trust.

gross. >> come on. i said nothing. >> bill: terry gross is not telling the truth and she should for the sake of npr's reputationer the bus. >> bill: pinheads and patriots on deck. wheel of intoxication on the field tonight. did sajak and white booze it up before their program? they had >> pinheads & patriots, ri >> and "killing lincoln," is the top selling audio book after four months in the marketplace. thank you all of you road warriors while listening. if you become a preview member you get your book or the audio free of charge. anthony from massachusetts says, you use the term conservative for coulter but right winger to describe supporters of newt gingrich. really? you need some fresh air. both descriptions describe a conservative viewpoint. like liberal and left winger, they are the same. both sides can be vicious, right wing can be irresponsible and we know what the left is capable, smearing opponents all day long. not pretty. in knoxville, tennessee, i deeply respect my religious conviction but my friends thought the romney vote of jay leno was funny. >> i think jay leno should apologize. >> you asked m

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as bill gross, the head of the world's largest bond firm, pimco, puts it, american workers are too expensive globally. there are two variables here. our education level, which is too low, and our wages, which are too high. either we raise education or markets will lower our wages. it's already happening. our decline in education achievements over the last 20 years has been accompanied by a stagnation in wages for the median american worker. now, if we can raise our education levels, the payoff is huge. >> when jonas walks in, what does he see? >> the global consulting firm mckenzie estimates that if the united states had in recent years closed the gap between its educational achievement levels and those of better performing nations like finland and korea, gdp in 2008 could have been $1.3 trillion to $2.3 trillion higher. this represents a 9% to 16% jump in gdp. so how do we get there? some elements of the solution seem obvious. the writer malcolm gladwell says it takes 10,000 hours to get really good at anything. it's really just another way of making thomas edison's famous point that genius

but when it comes to ron paul specifically, bill gross said, specifically, the reason that he would supportas cutting the deficit, but because he's pulling troops out, and listing all the different places. and of the other major investors, major ceos who see merit in ron paul, yeah, they think, getting rid of the fed, that's a quote/unquote crazy idea, some of them would say. but they really believe in his cutting the deficit and pro-capitalism, and there is a mainstream, or shall we call establishment group that would support him. or support rick santorum. >> we're getting some new numbers. let me go to the vote board. 49% of the precincts have now reported, almost half. and look at this. rick santorum establishing a lead of 350 votes ahead of morm morm, 13,501 to 13,151. they're both at 24%. ron paul, not very far behind, 12,146, at 22%. newt gingrich, a different fourth with 13%, 7,368. rick perry, only 10%, 5,600 votes. michele bachmann, 6%, very disappointing night for michele bachmann. she was born in iowa, raised in iowa, represents a district in minnesota that's right next door. unf