welcome back to the kaiser report imax guys are time now to go to connecticut to talk with peter schiff radio dot com peter is the author of crash proof and c.e.o. of your capital peter schiff welcome back to the kaiser report thanks max for how beyond yes ok so a couple points peter schiff number one ben bernanke the fed chairman recently released a lecture series about why gold was not a good choice for a reserve currency it never has been never will be and he's been very stridently pushing this out there gold is never going to be used as a reserve currency second of all swift which is the global exchange for money that people use to move money around globally as unilaterally decided to cut iran out of their. business which effectively cuts the red out of the global access to international money transfers and some are arguing that this in fact would put more pressure on gold to be considered a reserve currency your thoughts were first of all on ben bernanke as usual the fed chairman is completely wrong he doesn't understand money he doesn't understand gold he doesn't understand histor

and joining me is ceo of euro pacific capital peter schiff.hanks for being back. >> thanks for having me on. >> mike: the president made more than 20 speeches that we have counted on the so-called buffett rule. why is he pushing this so adamantly. let's talk about what is the buffett rule? >> it's based on the false that warren buffett pays a lower tax rate than your secretary. he do nt. when you're looking a the the personal income that's only 1% of what he earned. he's the largest shareholder, and while he earns 40 million individually he earns 4 billion that's his personal share of berkshire's earnings and berkshire hathaway paid 29% income taxes last year and of course, the top corporate rate is 35%, and warren buffett spent a lot of money and used loopholes to lower his effective rate from 35 to 29%, and you know, if you wanted to pay more taxes, he could have just paid 35%. the fact of the matter is when he pays a dividend to himself, if he did that or sells shares of berkshire stock effective rate is 45%, much higher than what his secre

i was talking to peter schiff and other people out of the room who were basically ones who see bernanke as a villain as opposed to a hero. they see bernanke as a villain for keeping interest rates so low that either inflation or other bubbles are being created. and so if you were fed chairman today, would you have inflation rate -- the fed rate where bernanke does? >> i'm not there so i don't have to make that great judgment. and i have a regular practice of refraining. >> we just wanted to see if you had given up that practice. >> when i saw that bernanke is a hero, bernanke is a villain, it's out there in public, it reminded me even today i occasionally in the streets, somebody comes up to me and says, you're the s.o.b. that presented my poor mother and father from buying a house in the early 1980s because interest rates were 15%. then i go on a block or two and somebody else says, oh, you're paul volcker. thank you. my father bought government securities at 15% which put me through college. thank you very much. >> david bradley got his house. that's good. let me provoke you for a mom

were pretty well prepared to fight a counterinsurgency and so i think there that strategy well peter schiff a little more your version of our really preempted me on that point was. very interesting toy james i think it's a very interesting point and that's what i was trying to kind of lead all of us down to is that the americans have their agenda for the region against certain groups and then you have the local officials there in military in mali saying well we want to control our own country's borders but there are these outsiders americans they just want to go after these islamic figures if it's al qaeda and others and they are they're not the same so in some ways a kind of reminds me a little bit of pakistan on a minor scale go ahead james i think if you if you look at the bunch of wiki leaks cables from two thousand six hundred thousand and ten. and you can see from those two very interesting things one is a military not. wasn't very good at all and also didn't really gauge very often. different elements of. the islamic magreb one and two. tends to target the m. and a with connection to

we have peter schiff with us as well, famous author. and, believe me, it was less than expected. it was weak. some parts made it weak like less government spending which i personally think is a good thing. defense spending down dramatically, took away. the bright spot was consumption. peter schiff, give me your weigh-in on the consumption side of this number. >> i think that consumption is the dark part of it because we're borrowing all of that money to consume which means we're getting poorer not richer. our debt is growing faster than our gdp. we need less consumption and more production, that's not what we're getting. plus, of course, i think the government is understating inflation. the deflator is not large enough so it makes inflation look like growth so i don't believe these numbers at all. >> reporter: so you are saying by keeping inflation low, the other side of that equation is it dramatically makes growth look bigger than it is. >> if they are underestimating, we have no growth at all and i don't even think it's growth. borro