welcome back to the kaiser report time now to go to new york and speak with best selling author stephen leeb his new book is called red alert how china's growing prosperity threatens the american way of life stephen believe welcome to the kaiser report thank you so much i really appreciate being here all right great steven lee what is the american way of life to china's growing prosperity threatens break it down a little bit for us well i mean it's already happening max i mean if you just look at the last let's say decade or so what you'll see is that you've had a protracted steady up trend in commodity prices i mean there have been interruptions along the way we've had a little bit of an interruption this year but i think you know maybe one of the best ways of phrasing it is if you had gone back to let's say in a time machine two thousand nine hundred ninety nine ninety eight and told let's say the top twenty economists in the world that u.s. unemployment is going to climb to nine point one percent and that europe is going to be on the brink of a major recession with virtually no growth wha

for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests stephen leeb he's the author of red alert how china's growing prosperity threatens the american way of life you can tweet us at kaiser report or visit our facebook page at facebook dot com kyra is the report you can send me an e-mail and kaiser report at r t t v are you and so next time this is max keiser saying. i've.

stephen leeb is capital of leeb capital management author of a new book. china's growing prosperity threatens the american way of life." my colleague christine romans back as well. stephen, this volatility is starting to look like the new normal. what needs to happen to get this market moving again? >> ali, i think we need a policy called growth in this country. you listen to the budget debates we've had and continue to have,e to have, the word growth is really not mentioned ever. and, you know, i can't help it, but i have to contrast it with china. china is spending literally at least half a trillion dollars a year and over the next five years will spend many trillions of dollars, about what he we spent on world war ii on new industries. we need to create new industries and be willing to pay a temporary price for this. >> new industry, like solyndr and the solar industry in the united states? >> but take another solar company, evergreen, traded at $100 a share, the bellwether solar company in 2008, it is bankrupt today. and that's because china is funding

there's a sense of to support the dollar versus precious metals so going forward the question stephen leeb is how do you see the dollar versus precious metals going forward i think you know i don't want to sound like a not because i don't believe i am i'm not i've spent most of my life not liking gold at all but i think gold's going to go dramatically higher and you know when people say favorite investments i think you just have to own gold basically you know max it comes down to this we live in a world of scarce commodities that are becoming scarcer and in those kinds of conditions you can't ration these commodities by using something that you can just print you can see everybody can print their own currencies as much as they want gold is something that's relatively fixed yes we had a little bit every year to the supply but right now china and india incidentally are buying all of the incremental supply of gold everything all the ad gold the all the new gold that's mind is being purchased by china and india so gold is really just kind of fixed and you need something that's fixed and someth