at this point we'll get the financial big picture from michael pinto he's an economist at euro pacific capital and also get the political picture from california congressman john garamendi plus a wrongfully convicted man is freed from death row now though justice has been served after years of imprisonment what does his case tell us about police raids we'll have all of that and more in today's show but first a look at what the mainstream media missed. now some u.s. counterterrorism officials officials believe the killing of osama bin laden could together with years of cia drone strikes have pushed al qaida to the brink of collapse and the mainstream media took a break from the twenty four hour he said she said of the political death debate to report on it al qaeda on the brink of collapse you know that headline is pretty catching and as americans it's something we love to hear u.s. officials are saying al qaeda is on the verge of collapse the death of that group's leader coupled with years of nonstop cia drone strikes and leaving the terror network in shambles officials caution that al qaeda c

if it doesn't wall to shed some light earlier i spoke with peter schiff he's president of euro pacific capital and i asked him as someone who doesn't want the corporate tax rate he wants it lowered someone who says the united states has to tackle deficits if he would risk default in order to achieve achieve some of those principles. first of all i think this is a ruse i mean the fact that we're talking about the gulf at all merely proves that the fall is inevitable eventually the only question is what or business the fall take and when does it happen but if the president was really concerned about the fall if congress was concerned about the ball what they would be saying is don't worry there is no way we will stop making payments on our debt we will cut everything else first we'll cut social security we'll cut medicare we will prioritize interest payments and principal payments on the national debt if they said that then default would be a risk they only want to use the specter of the fall so that they can have a justification for raising the debt ceiling the reality is the best thing that we

our studio in new york or actually to new york for some answers of peter schiff president of euro pacific capital joins me say that peter a lot of people have argued and i think you're one of them that the only way the u.s. government defaults is if it really wants to is that there's funny of revenue coming in and what we're seeing you know what democrats and republicans are talking about in terms of how to get this money back is more of just an elaborate charade more political theater i know you ran for congress what would you be doing if you were here in washington regarding this whole debate well you know i don't think we should raise the debt ceiling it is a charade for now it's true default is up to us if we want to default obviously we can do it but if we don't want to there's plenty of revenue that will at some point that won't be the case with interest rates rise then we did it then we simply won't be able to make the payments but for now with interest rates as low as they are it's still our choice eventually it's not going to be but for now it is but the real problem is not the debt ceil

desperate times call for desperate measures earlier i spoke to peter schiff he's president of euro pacific capital he also ran for congress in two thousand and ten and i asked him what he would be doing if you was in washington right now calling the shots here's his response. well you know i don't think we should raise the debt ceiling it is a charade for now it's true default is up to us if we want to default obviously we can do it but if we don't want to there's plenty of revenue and at some point that won't be the case with interest rates rise then we did it then we simply won't be able to make the payments but for now with interest rates as low as they are it's still our choice eventually it's not going to be but for now it is but the real problem is not the debt ceiling the problem is the debt and raising the ceiling makes that problem bigger is i mean it seems to me like you're saying then sunk elements that deficit spending needs to be stopped dead in its tracks period but here's the deal the only way to stop it covered congress progress for years to reduce spending in the future but it nev

now as peter schiff president of euro pacific capital. all this talk about how to deal with the nation's debt sometimes you just gotta wonder how lawmakers measure up in terms of what they say needs to be cut and needs to be funded and what regular people think well i wonder about all the time and archie sent our intrepid producer lindsey garfield out into the hot summer streets to talk to people visiting washington and find out how they would spend their money was a little experiment i think may say a whole lot about the divide between washington and the rest of the country. for the august second deadline that's approaching those in congress have been discussing where to spend and where to say we came to the streets of d.c. to ask americans where they want their government spending money. stars and only gave people five pennies where they want to see their money go. got a lot of interesting jars right here what would make a good like balance. we're just going to put north terry on the side and. i think that if we develop infrastructure.

debt which many say is impossible to pay back well michael pinto he's a senior economist at euro pacific capital he said help us figure it out thank you for being here. do you love me or you do i thought you said you love me oh you're trying to help me ok that's doesn't get better i don't know you will. a lot of you and my wife would be very upset ok well let's talk about that then the day is now less than a week away default congress the white house still can't agree on the deal so what happens next week if the country defaults who feels that pain ok so you know what i think unfortunately to me geithner has been promulgating this route is that the u.s. will default on her dead come august second this is a bunch of malarkey there is plenty of revenue coming into the government coffers to pay the interest on our debt that's the only thing creditors should be concerned up the things they also should be concerned maybe also is that the u.s. will finally get its fiscal house in order. reducing the debt ceiling ceiling as we did ten times in the last decade back up if the u.s. pays the end on the deb

raise the debt ceiling period but what happens if it doesn't oh peter schiff president of euro pacific capital joins us now to help us try to make sense of all this peter now you for one we've talked about this before you are one that argues for lower lower corporate taxes in this country that's something we've seen republicans want in this negotiation over the scope of it and also you have said that the government it's a rein in its deficit such as something that both democrats and republicans seem to want on this deal so my question for you is would you risk the u.s. defaulting on its debt in order to achieve some of these principles. first of all i think this is a ruse i mean the fact that we're talking about the fault at all really proves that the fall was inevitable eventually if then surely the only question is what form does the fall take and when does it happen but if the president was really concerned about the fault if congress was concerned about the ball what they would be saying is don't worry there is no way we will stop making payments on our debt we will cut everything else fir

asian investors that they will meet next week stead line michael panto's a senior economist at euro pacific capital says it's unlikely that both sides will reach an agreement. i mean if you did read below occur the democrats will never. see each axis and the red ball in the lower. two really in chads. so the randori it all and i also want to refute people i was slanted to say even the chances of a. measure are very very unlikely side even today as far as for me shades of the narrative. and the allegations in a sure foreign creditors know that we shall our debt and deficit problem but our. one three trillion dollars of knowing actually on anywhere near the united states half hour a deficit are growing at one point five trillion dollars. no one should on the planet has this problem and we have an obligation to show our clearly times not to let him know that he will not raise our debt ceiling and we get our uninspired under control. well that's how the news looks tonight from moscow now despite president obama's pledge to shop the notorious president. continues to rack lives r.t. spoke to one a former

asian investors that they will meet next week's deadline michael pendejo a senior economist at euro pacific capital says that is unlikely that both sides will reach an agreement. and even the yeah i read the. general will never. has and the real him he will never ever. to really. play it so the rand. and also one of the people i was slightly even. measure that are very very unlikely. even though they. were never in the us you know and they all of the. foreign creditors you know we all our deficit problems but i'll. reach through you know knowing. anywhere. you know. this is a really good one. else's problem and we have an obligation to show our community. to let you know. in. our own. stay with us here on our t.v. plenty more to come including the cost of war as nato forces in afghanistan cause more civilian casualties r.t.s. how much longer the alliance could justify its means as some observers say afghan anger is growing. plus no conviction no apology a former guantanamo inmates lifts the lid on the prison that he says ruined his life in our exclusive interview coming your way in about ten minute

that america will not fall back on its debt payments but either shift from investment company euro pacific capital china could well dump it out there as its main reserve currency. we can't afford bad relations with china see beijing holds the cards you know we're dancing to the tune the pay play the real problem for china is that there's no way that america can pay back the money that the chinese are very lonely just politically just not going to happen and especially when interest rates rise i'm surprised and taken the chinese so long to figure out that they've been throwing a lot of good money after bad i don't think we're going to default i think we're going to inflate which is just as bad but you know we're going to raise the debt ceiling that the problem is the debt not the ceiling the ceiling maybe is a solution but unfortunately it's going to be raised open really the chinese are going to impose their own ceiling on our debt which is going to be a lending ceiling because we're telling the chinese right now that we're running a giant pass' heene what we're telling them is that if we can't bo

economy as a whole joining me to discuss this is michael pentode senior economist for euro pacific capital michael pleasure to have you back on the show tonight. try me what you think first of all should the u.s. rating aaa rating be downgraded. well she's had a long time ago as a matter of fact at the s. and p. five hundred and raise ny state because pete greek debt ceiling at least. if we actually read. that would be interest for me to downgrade united states because we can't work forty dollars worth of debt that we already have and they say they raise the debt ceiling acidy some side released early i think if they don't raise straight on this will be our spirits billionaire. so when do you think that americans actually realize i mean what do you mean when you say austerity and let's break it down first between what with our stare to be if the debt ceiling isn't raised and what would it actually look like for average americans if the credit rating of the u.s. was downgraded. i look at it very. late and. very much i mean they look really close we're. right here are just. things and come a

senior economist for euro pacific capital michael pleasure to have you back on the show tonight. tell me what you think first of all should the u.s. rating aaa rating be downgraded. well so we had a long time ago and as now get the s. and p. five hundred and raise ny state because we didn't raise the debt ceiling at media like that. if we actually released. that would be impetus for me to downgrade united states because we can't work forty dollars worth of debt that we're already engaged a pay raise the debt ceiling that's at least some side released really i think if they don't read straight on this will be our spirits billionaire. so when you think that americans actually realize i mean what do you mean when you say austerity and let's break it down first we threw in a what with our stare to be if the debt ceiling isn't raised and what would it actually look like for average americans if the credit rating of the u.s. was downgraded well ok. anyway do they really aaa. and they raised a very natural way i mean they don't really believe us were. really sure. where i was. you know.

time we have a thank you very much for your thoughts here and side senior economist at the euro pacific capital in the u.s. thanks again. well there still are much more to come on the program including and the cost of war as nato forces in afghanistan a cause and more civilian injuries we ask how much longer the alliance can judge. defiance means as anger in afghanistan grows. plus and no conviction but no apology either a former guantanamo inmate lifts the lid on the prison that ruined his life in our exclusive interview in about ten minutes time. but thousands of their regions gathered in the center of oslo one monday for a candlelit vigil for the victims of twin attacks that left seventy six dead people health hours and candles to commemorate those massacred in the shooting at an island youth camp as well as the bombing of government buildings the man who has admitted the atrocities as been charged with terrorism at a close court hearing in ask though that he will be held in isolation for four weeks others brevik pleaded not guilty saying he wanted to save europe and send a strong signal aga

economy as a whole joining me to discuss this is michael pentode senior economist for euro pacific capital michael pleasure to have you back on the show tonight. tell me what you think first of all should the u.s. rating aaa rating be downgraded. well so that had a long time to go and as a matter of fact if the s. and p. five hundred down res ny state or speak did raise the debt ceiling at me they have exactly. if we actually raise the debt ceiling that would be impetus for me to downgrade united states because we were fourteen dollars worth of debt that we already have and they say that we raise the debt ceiling that's at least some sigh of relief really i think if they don't raise the debt ceiling straight wonderful dips this will be a staircase billionaire. so when you think that americans actually realize i mean what do you mean when you say austerity and let's break it down first we two and what would that our stare to be if the debt ceiling isn't raised and what would it actually look like for average americans if the credit rating of the u.s. was downgraded well you know who cares a