debate that they're having they're trying to reinflate the bubble and then we are reassured by mr bernanke the fed governors that they'll be able to measure the moment at which they put on the pedal too much and the and inflation is going to take off and that's the debate. is going to meet this week and we're going to hear more about whether they think they're injecting enough money into the economy or not enough that's the way the system is regulated the danger is we just enter into a period where people lose interest in the stock market entirely they don't consume as much they certainly don't produce as much as they used to and the entire economy just slows down and you have an extended period of slow growth and low employment and that's what we've been experiencing since two thousand and eight despite all the efforts with the quantitative easing and even purchasing of treasuries and mortgage backed securities that the federal reserve has done and that period can go on for a long long time and if you're interested in growing your own wealth that's presents a significant challenge and the

mr geithner and mr bernanke even more because they believe that that status will be maintained regardless of what happens even if congress can't get its act together and balance the budget the the treasuries and the dollar have asserted themselves as specially you know i was especially shocked in september of two thousand and eight the dollar rallied twenty two percent right after lehman brothers declared bankruptcy in a very real way it reasserted itself as the event to some extent of course and that's also there's a website because so much of it is the character that you've written about right many years right and that's that there is that that tension in the economy is something that's our daily bread because when i and i say when not if there is an alternative to the u.s. dollar i believe that people will rush for the exits so how do you see that do you see that as something playing out in the near term how do you see that happening in terms of alternative because the one alternative to the u.s. dollar has been essentially precious metals or commodities basically people seem to be pla

mr. bernanke nor the federal reserve are infallible. many of the things that they're doing could be downright dangerous. we have as of year end, over a $15 trillion deficit. every time -- when interest rates rise, and eventually they will rise, if we rise one percentage point, that's $153 billion more of interest for a 1 percentage point increase. we have treasury bills almost at 0. the rate on treasury bills is 0.04%. that means in six months on a million dollars, you would pay $200 in interest. we all can remember times when interest rates were significantly higher. one of the questions i think we as americans have to really ask ourselves, why, if we are the richest nation in the history of the world, why are we a debtor nation? this can be leading us nowhere good. >> rick: so as far as announcing the rates are going to stay near 0, until at least the end of 2014, is that to try to allay the fears of some folks out there like you who are worried about the long-term consequences of these low rates? >> one, we do benefit as a government

mr. bernanke to act when the warning signs were clear and present. the first meeting, however, was spent praising bernanke's predecessor, outgoing federal chairman alan greenspan. but the fcic later concluded that 30 years of deregulation and reliance on self-regulation by financial institutions that was championed by mr. greenspan were the factors in devastating this ability of our nation's market, stripping away safeguards that simply could have avoided this catastrophe. now, in ate leather meeting on may 10, 2006 of the fomc, the federal government -- the fed governor was one of the earliest to raise concern over the nation's mortgage sector. which offered exotic loans and increased household debt over time instead of decreasing it. now, specifically her concerns stem from the absence of home equity growth. and the consumers' ability to absorb the uncertainties of the housing market. here bernanke -- here, listen to mr. bernanke's response when she made her declaration. quote, so far we have seeing a worst and orderly decline in the housing market.

mr. bernanke might like to have you. >> because i'm such a good predictor. >> we have some news coming updelays on metro's orange and blue lines. we are learning more about a group of middle school kids in virginia who got drunk and went to school. also, a new name for the hot lanes that are causing so much construction hassells and problems, i guess i'm supposed to say in virginia. >> the empowerment lanes or something like that. we'll find out at 11:00. >> you talk about hassells, that's the most hasselled area in the world. >> lots of delays. not many complaints about the weather at the moment. >> you are not going to have any complaints. 56 on friday. 57 on saturday. a little cooler but not too bad. no cold air at all. no folks, still no chances of snow. a big chance of rain in the middle of next week. >> thank you, doug. >>> every now and then somebody wins the lottery. you have to say good for them. actually, most of the time. warner ashbyy is one of those guys. he lives in rockville. he's a chauffeur and have been for years. today, he collected $1 million from the virginia new year

mr. bernanke's statement and the q & a yesterday and i'm wondering how the plan to keep money so cheap is going to affect the value and dividends at annaly? >> i think it's very positive for annaly. it was up 17 cents today. it's a great company. i also want to extend my best wishes to mike farrell and his family. mike, there's a release that came out today. he's got cancer, it's treatable, he'll work on a normal schedule. mike, get better real fast. i know you're going to. mike has created the single best financial real estate investment trust in our lifetime and i know he's going to continue to make you money. i'd stay with the stock. fantasy versus reality, politics versus the companies. please don't listen to the wrong people. america is roaring back. listen to caterpillar, listen to union pacific. don't listen to the political parties. "mad money" will be right back. >> coming up, the waiting game? this industrial giant's big bets overseas aren't paying off just yet. but after a reporting a miss, etn boosted their dividends this morning. cramer's earnings exclusive with the company's

mr. bernanke came out and changed the way they report inflation. i don't know how many times the government has done this in the last decade or two. but they're always changing it to make it look better. they're lying to us again, larry. >> i've got to jump, jimmy rogers. thank you for your update, my friend. please be well. >>> next up on "kudlow," why isn't anyone facing up to the issues of our time. the near-bankruptcy of our u.s. government. spending, deficits, debt, the lack of economic growth. no one is talking about it. not congress, not the white house, not on the campaign trail. i want to talk about it. we've already started. much more to come. please stay with us. "the kudlow report." nesis. in a new, faster-acting formula. zero-to-sixty in less time than a porsche panamera s. the 429 horsepower genesis r-spec. from hyundai. the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪ be

mr. bernanke last week said he's going to change the way inflation numbers are reported so that they lookyou are going to see better inflation numbers reported because they changed the method again. you are going to see all sorts of wonderful improvements in 2012. >> jim, we have some e-mails to get through. joseph in canada is asking you, i agree wholeheartedly with your expectations longer term. what do you think of the u.s. fed's decision to keep rates unchanged until 2014? won't this sink the u.s. dollar much lower and lift the precious metals much higher over the next two and a half years? >> yes, not just two that have years but the rest of the decade. with these guys in the end. >> and we have another e-mail from patrick. jim, can mr. rogers explain why since the start of the euro gold has gone up everywhere and 60% of the euro reserves are now marked to market on gold, on the ecb balance sheet this should be bullish for gold? >> well, yes. as i said before, i own gold. gold has been going up for 11 years in a row. one of the main reasons is it was down tore 20 years. gold was in a