debt ceiling period but what happens 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 ceilin

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.

lawmakers say washington needs to 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 de

not to pull back on its debt payments but peter schiff from the investment company doing something capital thinks china could well dump the dollar 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 that they play the real problem for china is that there's no way that america can pay back the money that the chinese have already loaned us politically is just not going to happen is specially 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 the problem is the debt not the ceiling the ceiling maybe is a solution but unfortunately it's going to be raised ultimately 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 ponzi scheme what we're telling them is that if we can

as america's biggest creditor seems to be using patience washington's financial mess basement peter schiff says china could even dump the dollar as its main reserve currency. we can't afford bad relations with china beijing holds the cards you know we're dancing to the tune that they play the real problem for china is that there's no way that america can pay back the money to the chinese are very low interest politically it's just not going to happen is specially when interest rates rise i'm surprised it's 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 the problem is the debt not the ceiling the sooner the chinese start to stop enabling this phony economy that we have the sooner we as americans can begin to repair the damage and what's going to happen is where the dollar collapses americans are going to see a big reduction in our standards of living. and then they turn a program we take a closer look at

has been dangerously irresponsible investment analyst peter schiff told us we could see china dump the dollar as its main reserve currency. we can't afford bad relations with china see gaging holds the cards you know we're dancing to the tune that they play the real problem for china is that there's no way that america can pay back the money that the chinese are for a loan just politically just not going to happen especially when interest rates rise and i'm surprised they can do chinese so long to figure out that they've been thrown a lot of good money after bad i don't think we're going to the thought i think we're going to inflate which is just as bad but you know we're going to raise the debt ceiling the problem is the debt ceiling the sooner the chinese stop stop enabling on this call the economy that we have this sooner we as americans to begin to repair the damage and what's going to happen is for the dollar collapses americans are going to see a big reduction in our standards of living it's a big story it will come to a head on choose that we want to know what you think about it

people like peter schiff other other hyperinflation talk about john williams or people like that but really really just just want to one or the other should the u.s. government be more focused on debt or more focused on jobs. a lot of the dead because if you have a large debt burden you're not going to have any jobs and and all these voters thought about increasing taxes that's just going to create the economy even more so i think to go ahead and just focusing on jobs the government is not a position to create i'm just sorry we actually have to leave it there but i do appreciate all of your analysis so much i was radio host in economics blogger dmitry kovtun us now at the same time as i mentioned earlier a group of some of the most powerful men in the country are meeting in secret in the fourth of california to do what solve the problems we just talked about or to do have a late cut business and political deals in private have sex with a male waitstaff i don't know exactly but the last three were the allegations that have been made about the goings on at the heaney and grove at the s

course my heroes in the political arena are our ron cool without a tie rand paul and financier peter schiff great people all. my column libertarianism right was life was actually addressing. a. segment of the libertarian movement that is being touted as the only brandel the only strand in fox news and news and in particular is their cultural perspective and i was addressing in particular the segment i think it was on stuff so where. it took about an hour to expound on the proposition that. lady gaga glee m.t.v. dennis rodman madonna was the quintessential elements of american freedoms which of course classical liberal psych myself would think as. well that's the libertine faction of the movement and it's a series within a larger category of liberty but i think you would agree a wanna bet that you know some of these ideals are really starting to catch on to become very popular i've covered a lot of tea party rallies here in washington and a lot of the people i speak to identify as libertarians and so i guess to paint as a picture here of what you think is sort of on the french people who don

desperate measures let's head to 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

is being dangerously irresponsible investment analyst peter schiff says he could see china dump the dollar as its main reserve currency now. we can't afford to have relations with china beijing holds the cards you know we're dancing to the tune that they play the real problem for china is that there's no way that america can pay back the money that the chinese have already loaned us politically it's just not going to happen especially when interest rates rise i'm surprised it's taken the chinese so long to figure out that didn't throw 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 the problem is the get out the ceiling this sooner the chinese start stop enabling this phony economy that we have this sooner we as americans could begin to repair the damage and what's going to happen is what a dollar collapses americans are going to see a big reduction in our standard of living. it's a huge story is coming to a head we will know what you think about it on our web site r c

down so here's the question do 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 r