question or the billion dollar question of the trillion dollar question nobody really knows how it's going to end but it's going to end badly. a bigger by member policy actually works when you have the medium sized smaller economy amidst other economies that are doing ok and you basically devalue your currency to dig your way out of a hole that you dug a lot of classic examples for instance sweden in the early ninety's when they have their own banking crisis and they you know recapitalize the banks devalued the krona and dug their way out of their hole but the problem is that when the reserve currency the largest economy in the world starts doing the bigger the neighbor policy it has a tremendous impact and if arius impact on all the other developing economies. not just developing economies excuse me but all economies will stop you mentioned the world's reserve currency the u.s. dollar is the number one offender and of course it is the world's reserve currency so he wouldn't want to be in a position of trying to beggar thy neighbor in this way to accentuate the problems as you w

says diplomatic way out of saying the dollar india is an ally of the us and how do they ditch the dollar without causing turmoil in the markets or upsetting their one of their benefactors well let me make this following prediction china is buying european bombs. why are they doing this i think it's because at some point they will demand payment in the form of gold you know in the european zone there are about eleven thousand tons of gold which would be the highest concentration of gold in the world higher than even the u.s. is a thousand tons of gold china moving into europe buying those bonds of course europeans will never be able to pay off those bonds because their economies are in freefall and then china will turn around and you can't pay as back in euro's but will take the payment in gold and dissipate this into context india imports eighty percent of one hundred eighty four million tons of crude oil every finds every year so this is another thing in this commodity insanity tied to the central banking money printing insanity is you're going to a lot of these countries have to import

you know you have you the problem is that if the dollar is the reserve currency everyone wants to have dollar reserves in order for everyone to have dollar reserves the united states has to run a current account deficit and right now one's talking about the fact that the united states is running a massive current account deficit that's an unsustainable thing over the long term to run large kind of deficit so eventually it's going to lead to unsustainable debt accumulation and the collapse of the american economy my personal view is that it's going to be replaced at some point whether through crisis or through some sort of you know easing into dollars later by him because even who acknowledge that yes they would like one day for the u.n. to be you know the international reserve currency but that they're still far away from that were happening so at the moment i mean is there something else to replace the dollar and there's not a let's the that's the real problem the real problem is there's nothing to replace it in the immediate future gold's not going to replace it the euro certainly is

griffiths from cazenove capital is interviewed within the bigger picture which the downtrend in the dollar is all some really powerful and when i think when the most important call to give is jew bill gross has made this call it's vital to get yourself out of the dollar on any significant rally continue into an account a currency that is going to be printed virtually into oblivion that's the official policy is crazy you need the current rally and the dollar is actually a great selling opportunity and it's crazy to own a currency that's going to be constantly printed i'm guessing then you are bullish on gold absolutely right i think not saving gold as a form of insanity he'd be even unhealthy masochistic tendencies which might need medical attention and it's not just gold even the base metals copper and all those have made new all time high breakouts which is always and everywhere a buying signal so real assets page paper money being printed into oblivion so you go to gold and you go to other commodity related investment still yeah you'd be crazy if you are still in that paper stuff in zero

american should rely more on the precious metals than an unsustainable u.s. dollar do stay with us. for the full story we've gone to. the biggest issues get the human voice face to face with the news makers on the. imax kaiser this is the kaiser report oh boy it's already two thousand and eleven time to look back and look forward and time to bring in stay as your ever stacy kaiser i thought you were going to mention the two thousand and eleven we already see silver spiking it didn't take long for so over to last out of the gate what else what else well we have the two thousand and ten asset performance numbers they are in number one played am number two in but number of three performer last year so over up eighty three point five percent now remember the played him club back in new york city in the eighty's that's some serious dancing. when max gold was only up twenty nine point five percent just up like miners laggard laggard but with the silver and gold up these much of course we've been talking about these as currencies and it takes me to the next headline georgia g.o.p. or pushes

in the world's economy and how important the u.s. dollar is as the world's number one currency. >> sarkozy also said the 21st century requires new ideas for the prosperity of people around the world. he suggested reviewing the existing international currency system and looking at ways to stabilize food prices. france wants to debate the current global order that relies on the dollar as the key reserve currency. the u.s. is expected to call on european countries to continue tackling the region's fiscal debt problems. america's so-called big three carmakers are showcasing their latest models in the detroit auto show in a bid to underscore their comeback. the north american international auto show opened to the media on monday. over 50 manufacturers from around the world are taking part. chrysler unveiled a new large sedan highlighting the firm's recovery. general motors introduced a small sedan making the segment of the u.s. market even more competitive. having relisted its stock last fall, gm stressed that it can rival japanese makers in the

, amasses the dollars paid to chinese companies. hundreds of billions of dollars a year. if it simply spends them, the bank risks flooding the world with so many dollars that the demand for them is bound to go down. the dollar would then drop in price. >> they have to put those dollars somewhere. those dollars are being put in the deepest, most liquid market in the world which is the u.s. treasury market. that is where you have this very circular logic of china running big trade surpluses, the u.s. running big deficits but they're inter-linked. >> reporter: because china is lending us the money to run our big deficits. >> one interpretation is that, you know, china is basically lending us the money to buy stuff from them. >> reporter: and to some, this is the road to ruin. this graphic futuristic fear video went viral before the fall election. it's about the rise of china, the decline and fall of great empires like ours which overspent says the chinese professor. no surprise that america became hopelessly in debt. >> reporter: that's

the economy by are you surprised to see it always up one hundred dollars so who's up to two dollars a day i wouldn't be surprised to see that perhaps towards the latter part of two thousand and eleven maybe not so much to get it but i do you say that we're going to move out of. a which is basically you know we saw stock markets are calm even though you have on him. women rising in the united states and much of the western world even though it is about. ever knock it was all sixty minutes oh months ago he said a place in the us was what eight percent or we all knows about eighty percent or so . you know big trends are you going to see more volatility you did stock markets because obviously one of the years you know as much as broad cause a short term. rise in the stock markets that sort of the some point in time that brought those break down you know that meddling in the market so what is surprise me see another flash crash you know happened in two thousand and eleven again right and getting over to this inflation number that bernanke is talking about of course the way to get to the qu

finance circles of america it's a complete canard it it's basically it's a command and control the dollar is the product of a poll of bureau called the federal open market committee and they fix the price. this law of supply and demand the start of free market capitalism good job you're a communist so what do we reported on the show on our to. think about so speaking of davus supercycle leaves no economy behind before daba summit so all the big banks are back up and some they're celebrating their very optimistic this year apparently the whole world's going to be rich by the end of this century according to edward prescott a senior monetary advisor to the federal reserve bank of minneapolis who shared the two thousand and four nobel prize for analysis of business cycles and economic policy everyone is going to have a billion u.s. dollars a cup of coffee will be five billion u.s. dollars h.s.b.c. bank says by twenty fifty global output will have troubled and average annual growth will accelerate towards three percent from two percent in the past decade that's absolutely correct and the pric

pioneering days of america bourbon bullets and pork bellies pork bellies did a lot better than the us dollar as well but speaking of not unhinged max kaiser obama aide throws down gauntlet in debt showdown with g.o.p. hitting debt ceiling with the first us default caused purely by insanity so this is austin goolsbee the chairman of the council of economic advisors speaking to a.b.c.'s jake take tapper. and he talked about the debt ceiling which now stands at fourteen point two nine four trillion and we're the national debt is now only four hundred twenty three billion away from it now there democrats want to raise it to fifteen point five trillion and to put that into context look at this chart this is the g.d.p. of the usa in two thousand and nine that's fourteen point one one nine trillion they want to raise the debt ceiling to fifteen point five trillion and i think the key phrase here is insanity to raise the debt ceiling is a tacit admission of default in other words the u.s. has bonds they can't pay off the bonds to people like china so instead they're simply going to move the goalpost

interview with the washington post china's president hu jintao says of the currency system with the dollar leading it is a product of the past so is he setting the stage for china calling all the shots were going to be currency wars of blogger edward harrison and we'll ask the question that's on everyone's mind where are the republicans we are less than two years away from the next presidential election and nobody has stepped forward as the clear front runner for the conservative presidential vote through hell connell drop by and will rue view some of the potential republican candidates for president but now it's move on to our top story. today many americans pas to honor the legacy of martin luther king jr as time goes on it seems as if his message is getting this control misconstrued perhaps lost altogether and some cases they're being reconstructed for a purpose as dr king himself may not appreciate it art is christine for south has more. those are our three. march. one day eleven a day will not be observed by a crowd of about them but by the content of. our our time. it was a dream so

in the eyes of a cup of coffee will be five billion u.s. dollars h.s.b.c. bank says by twenty fifty global output will have traveled an average annual growth will accelerate towards thirty percent from two percent in the past decade that's absolutely correct and the price of gold will be five hundred million dollars proves yes what they're saying outputs will actually travel that means actual production of goods and services will travel where are these resources going to come from one might ask virtual goods just like you pointed out the federal reserve is moving to a virtual currency model there's no collateral of zero reserve banking they're going to give everyone avatars to do commerce and cyberspace and award them billions of virtual dollars and they'll count that as output it's virtual output that's what they failed to disclose in the piece it's a virtual output it's not output like mining or manufacturing it's virtual output of avatars having virtual sex and then raising the virtual babies and calling that a family and then applying that to some neo cl

cents on the dollar or 20 cents on the dollar. we would like to do this for every year a child is in the san francisco public school district. for any of the child is not enrolled in the san francisco public school system, all of the money is still there. it is all still growing. a letter, they would not be eligible for any of the incentives eligible for the enrolled students at that year at that time. they would not be eligible for those. if they were ever to come back into the school district, they would join the class that they were with and receive whatever incentives were made available then. commissioner maufas: and if they left, can they make deposits? treasurer cisneros: yes, we will always have the money there for them. the only thing that would change is the incentives, which are only available for those enrolled in the san francisco's system. president mendoza: thank you, treasurer cisneros. www.k2sf -- if you indulge me, i want to read the list that appear on the website. carmichael, dr. george carter, george chaves, d

the. seven hundred twenty five billion dollars that's how much the u.s. plans to spend that it's a trip to put it this year is the world's largest ever defense budget comes amid a flanking economy and burgeoning national debt pentagon says it's cutting its cloth of the next five years but as long this to reports it's going to be difficult when there's an entire industry of a dying on wars to continue. when it comes to the afghan war well over half of americans oppose it and after a year of record casualties and having ploughed in over three hundred sixty six billion dollars why is the us committed to staying the course they're all trying for that warry energy motives and profit motives and strategic motives and if you're wondering why some in the us just might not want to see the war and ever here are three reasons thirty six billion twenty five billion twenty three point five billion those are roughly the dollar amounts the top three american defense companies were handed in government contracts in two thousand and eight a president once warned about thi

the dollar has gained more than one yen on thursday morning. the greenback is trading between 83.28 to 30. the euro now at 1.3132-3134. market sources say the dollar buying was encouraged by better than expected u.s. job figures on wednesday, which raised hopes for a u.s. revival and gave tokyo traders their cue. >>> u.s. president barack obama is going to have a tougher time working with congress now that republicans have a majority in the house of representatives. as the 112th congress started on wednesday, republican john boehner took over as house speaker from democrat nancy pelosi. >> our spending has caught up with us. and our debt soon will eclipse the entire size of our national economy. >> the republicans plan to overturn obama's health care reform legislation which he managed to push through congress last year. president obama hopes to put the country's economic recovery on a solid footing by swiftly passing a new economic stimulus bill. but with republicans in the house of representatives adopting a confrontational approach, he faces

for anything the united states treasury now owes four point five trillion dollars to foreign central banks with no visible means of paying because the u.s. is running a chronic trade deficit an escalating military outflow to surround china with military and a balance of a capital flight into china so what the united states is saying we're going to increase eighty military bases around your country we want you to pay for them we want you to pay for them by accepting all of the dollars we won't let you buy us technology exports we won't let you buy us companies even filling stations and refineries and you're going to have to pay for our cost of the surrounding you know china says that's absolutely absurd we have no intention of doing that and they have a lot of other options such as using the dollars to buy old american industries in china. saying you won't let us buy american industry we'll just buy your holdings in china at the register but they'll you want a free enterprise economy that's that's what we're going to do you know it's interesting daniel i mean in lis

national debt so are americans ready to give benjamin franklin the push the us dollar. for me their evil were interested in investing in anything i think oh how come not the u.s. dollar. bill goldman sachs already owns that and instead embrace now is a dong you find surprising that americans are swapping dollars for you know american currency chinese currency what is in the price because that's what all of the papers outright is going to take over and it's doing so well. it's holding china's money becomes as trendy as holding the i pods it manufactures economist max wolf says the yuan may eventually become a. to be reckoned with if wealthy people around the world or in the us begin to hold their money in chinese currency renminbi gwan and they associate it with wealth may associate with a good investment it legitimizes and jacks up the usage in the acceptance of the chinese currency. as with any gamble banking on the one does have its risks us private consumer takes one side of the bet the bank of china takes us out of the bet fair the only thing is the bank of china m

but the renminbi cannot replace the dollar not out as long as it's a blocked currency i happen to think that's a mistake the chinese are making i would open the currency sapped and if i were china but i'm not china and china they save and invest over thirty five percent of their income the way you build a successful economy if you build capital i mean every call marks and knew that you have to have capital in order to have a successful economy and the united states we've been saving and investing two percent of our income we've been borrowing in consuming they've been saving and investing what you have to live from moscow still has a use our a political opposition and your marks the first time it's been given power as a former president fleas and ticks on but some experts warn again rest there could spread to the wider region. how in people across the globe joined together to our dr martin luther king on his birthday it showed the legacy of this moral crusade or in america's race war lives on but as our teams christine discovered some are also taking advantage of his name to gain suppor

the trio. well some of those houses are a million dollar. and that's the big question there's no base these people are. only a part of. that indicates something there is a high level of corruption and misuse of public property and misuse of those monies all the development and at the same time there are discussions about truck traffic when i look to some of these expensive houses it can't be done and even the idea of corruption because one million dollars is just building for industry. is very much. corruption and embezzlement. but also drugs. it's impossible not to think about opium trafficking when you come across afghan nouveau riche. the country produces ninety percent of the world's heroin. seven thousand tons per year. sure the taliban profit from the drug trafficking but according to the american press so do afghan government officials inside the administration. under the pressure of the international community the government has set up an anti narcotic special unit its means are considerable for such a country. even in the area of pub

world's top ten countries growth will thirty two percent last year the share of the dollar has continued to decline as central banks diversify essence the region search until the greenback. and a quick look at the markets in the europe stocks it's mostly low over banks minus leading the way all the losses in asia overnight and the squad. and why we're in the private session might as well launch really low on weaker commodity prices going to school c. is down zero point nine percent and the dax is losing two point three percent our holdings are speeding six percent this hour after consulting intel thursday. and here in russia the markets are seeing a slight correction despite the fear of strengthening the dollar and relishing the successful placement of bonds by spain italy into says part down half a percent of all the stronger ruble is giving some support just talk. dollars gold is among the top losers on the my success precious metal futures for for the first time this week saw this is forming the market or purports to call it increased with tail sales by just seven percen