peter schiff as we have been talking about and as you have been talking about the u.s. has downgraded been downgraded by s. and p. their debt from templated double a plus did the s. and p. go far enough well of course not but at least they way so in the right direction you know it wall street parlance any downgrades get get the hell out you know they never like to put a sell out anything so you have to look at to go from a strong buy will buy it means you know look out below and so they did the minimum that they could do but really what s. and p. is saying as far as i'm concerned is get out u.s. debt any dollar denominated debt because what they're really downgrading is not treasury bonds but the dollar because s. and p. knows as alan greenspan said it warren buffett said they don't have to default they could print but that's worse especially if you're a bond holder and you get paid back with monopoly money and so what this means is that all debt in dollars should be downgraded whether it's treasuries uni's corporates you name it it's pay you back in dollars get rid of

saying we're headed towards a recession we'll speak with renowned investor and financial expert peter schiff and search of answers. over marie they get a sense of right peter broder. every day on the hill and that pretty much sums it up with things like this that americans are going to extremes to big first grabs will take you to detroit or precious metals or a lifeline. you seem to be acquitted of killing her two year old daughter robyn gardner went missing in aruba two weeks ago and shocking news the mainstream media misses yet again this time for getting a little three year old wall looking to hot blonds for big headlines. good afternoon it's friday august nineteenth four pm here in washington d.c. i'm lauren lyster and you're watching our t.v. well more stock market turmoil today and what has been needless to say a volatile week meanwhile gold keeps soaring to new highs reaching almost nineteen hundred dollars an ounce today now remember once upon a time gold was just thirty five dollars an ounce meanwhile u.s. treasury yields collapsed to a seventy year low this week two and a venezuela

is already in a recession peter schiff is president of euro pacific capital of course and he has been saying that gold prices are going to go up for a long time he got right and as we continue to see gold prices do just that i asked him if this means that it's now a safe haven next to u.s. treasuries. well it is a safe haven i mean treasuries are not i think the people who are buying treasuries think it's a safe haven they're mistaken and when you figure it out it will go to gold but people have to understand what it's a safe haven from because i keep hearing people on television saying well people aren't buying gold because of inflation because there's no inflation they're buying it as a safe haven gold is a safe haven from inflation that's what you're getting safe you from it's an alternative to a currencies like the dollar or the euro or the n. or any other currency were central banks are creating too many so if if central banks are going to base their currency if you want to of stored value that will protect you from inflation this safe haven is goal treasures are not a safe haven

and the author of how to colony grows and why it crashes host of the ship report the in from has peter schiff peter thank you so much for being with us tonight oh my pleasure all right so this downgrade you're saying aaa to double a not low enough why is that well first of all we're double a plus but at least they haven't seen a negative watch well look at look at the new zealanders double a plus i mean they're a much better shape than we are they only have a debt to g.d.p. of about ten percent you know we're you know really off the charts far as i'm concerned when you conclude all the debt not just the. government admits to but china is it doubly minus how can that be we actually owed china two trillion dollars china barely has any debt at all i mean their debt is ninety eight compared to what we owe them so why would try to be lower than us after all china is not going to follow them as we default first because they're sitting on a pile of our debt so i mean it sounds like people are realizing that this whole credit rating system doesn't have much credibility are we getting past this is the

confidence that to investors party is more important now reporting there from new york meanwhile peter schiff president of investment strategies company euro pacific capital says analysts are blind to the recession that's taking place right now the u.s. economy either is already in a recession or is headed to one rapidly you know if you remember back in may two thousand and eight bring economists were confident that the u.s. economy was going to avoid a recession and as it turned out that recession began in the fourth quarter of two thousand and seven are incapable of predicting a recession even six months after it begins where you know we never really got laughed at and we kind of interrupted it with some stimulus spending but now we have even bigger problems to deal with i think we're facing in which we begin downturn coming up in the one that we went through in zero eight zero nine so i think a lot of banks including u.s. banks really are in the song but the only thing that keeping them propped up is probably free money from of those too low but if interest rates are allowed to return to w

didn't falsely grade these things that two trillion dollar error supposedly according to our body peter schiff this was an assumption that certain growth parameters would be met that there's no way in heck any of that growth parameters will be met this is a straight up and straight down. forward honest to goodness report there is no true trillion dollar error made the right call the fact that they're now being vilified by the people that they made the call against doesn't invalidate the call well i'm talking about the mortgage securities when they raided the mortgage securities that have exploded and across the entire global economy the s. and p. raided all of those goldman sachs c.d.o. as a way to them triple a they redid all of those things aaa that they sold to french banks german banks swiss banks italian banks all those things blowing up economies were rated aaa by s. and p. they were but they were also rated aaa by moody's they were rated aaa by fitch those two are not being investigated as far as we know at the moment because it's only s. and p. that has downgraded u.s. government debt

republicans hold the house you've got sixty tea party members in congress you've got rand paul rand paul peter schiff marc faber doug casey all of the great austrian economists and thinkers predicting all of this you've got two hundred million dollars in spending over ten years from copeland ations for smaller government republicans you've got atlas shrugged movies internet access to everything and what you end up with with all of these stars aligning to minimize government no smaller government and frankly larger government oh ok but look this is us in the people are going to away from this with some form of realisation like are you suggesting that in high school classes across america where they're discussing current events and and wouldn't couldn't avoid an initial like this that children are asking their teachers wait a second how can spending go up by nine hundred billion dollars at least in the immediate short term because of this bill and taxes don't go out and that they're getting some kind of these an answer. well the answer that they're going to get is probably from the same teacher who's c

businesses which ben bernanke these they still can't get loans here to help us answer that is peter schiff president of euro pacific capital they so much for being here peter nice a c.e.o. or so you are now we know that quantitative easing in the past has helped wall street it's helped washington but how does that help everyone else average folks who are broke and don't have jobs well it has to be the reason that we're headed back into recession is be cost. to you know money previous not the solution to our problems it's the source of our problems you know i was on record before any of the wall street columnists saying you q e three was a certainty i knew it was coming because i did it two weeks you didn't work and i knew that rounded learning from its mistakes the people so then who want another round of q.e. help because we're here involves three banks call for it. well you know if you mentioned it earlier it helps the government get bigger it helps the government borrowing and spending but that doesn't help the economy the government is too big and spending too much the fact that the fe

into thirty minutes on the show but keep the feedback coming and tomorrow we're going to have peter schiff on the show and coming up we've got some more exciting guests in this coming week a lot of stuff we've been working on and dance and tomorrow we might even be declaring world war three and it was that's our show for tonight thanks for tuning into adam versus the man to stay out of rhythm and i probably won't i'm guessing topics and find me on facebook and twitter as always get me at adam adam which is the man dot com.

peter schiff is professor of your and president europacific and larry glazer. mayflower advisors.ic and we have a few minutes to figure out if we'll see the demise of democracy. so good luck to us all. peter, do you think there is a link here? a lot of debt will deed to the destruction of democracy? >> absolutely. the framers of our constitution warned about perils of democracy. that's why we were established as a republic with a lot of safeguards to protect us from democracy. unfortunately a lot of the safeguards have been removed. unfortunately politicians to get elected promise something for nothing. we created a dependent class and borrowed money to provide for it. europe made the same mistakes. when you compound that with the fact that u.s. and europe, we decided unfortunately to bail out all the banks of a the financial crisis and we assume that debt on top of the debt from social welfare states and governments are broke. they have to level with the public and tell them that the gravy train is over. that is happening in europe now. it is going to happen here in the united st

recommend that everybody take an hour and view this amazing speech that was presented and given by a peter schiff. guest: looking back over the past decade or so, there has been some question about whether or not we should have known the housing crisis was going to happen or whether or not anyone predicted it. the record is mixed. in terms of what a lot of people were saying about the housing market. there were a lot of respected people that suggested there might be problems and others suggesting there probably were not problems, so the record is mixed. we did see that there was a crisis in many communities as far as the housing market is concerned, so now we have to move beyond that and see what factors we can put in place to move us forward it especially in terms of jobs and consumer confidence. host: tony tweets in -- guest: it could very well be the case that home buyers thinking about buying homes in the very near term really have gotten a sense that there is no urgency at this point. it is clear that mortgage rates are going to be at low levels going forward. there is a lot of inventory on

recommend that everybody take an hour and view this amazing speech that was presented and given by a peter schiffguest: looking back over the past decade or so, there has been some question about whether or not we should have known the housing crisis was going to happen or whether or not anyone predicted it. the record is mixed. in terms of what a lot of people were saying about the housing market. there were a lot of respected people that suggested there might be problems and others suggesting there probably were not problems, so the record is mixed. we did see that there was a crisis in many communities as far as the housing market is concerned, so now we have to move beyond that and see what factors we can put in place to move us forward it especially in terms of jobs and consumer confidence. host: to >> next, secretary of state hillary clinton and defense secretary leon panetta will participate in a conversation covering u.s. international challenges and how the state and defense departments work toward common goals. this is at the national defense university in washington, d.c. secretary cli