the value of the gold of the treasury was greater than the value of all the dollars ever printed and it also covered outstanding revolving credit unpaid credit card balances the credit cards or replacing cash in circulation and for that same thing to happen today for history to repeat and the same thing that happened in one nine hundred thirty four and in one thousand nine hundred eighty it requires fifteen to twenty thousand dollars per ounce of gold when i wrote my book it was only six thousand dollars that required but ben bernanke he created all of this excess base money in just the past two and a half years based money's gone from eight hundred twenty five billion to just a breath away from three trillion so he's we've created more paper currency basically in the last three years four times more than in the past two hundred years. and if gold rises to meet that again like it did in one thousand nine hundred four and in one thousand nine hundred it's fifteen to twenty thousand dollars per ounce gold right so going back to nine hundred eighty when gold was eight hundred dollars an

that per ounce for the treasury to have enough gold to cover every dollar that foreign central banks are holding now if dollars if currencies were to fail and you were just to replace all of the dollars out there with gold it requires a price of around two hundred three thousand dollars per ounce if you were going to just replace all of the currency with gore and i'm not saying that these are any of these these are prices that gold is going to but gold is still extremely undervalued at this point and i think that ben bernanke these policies basically say that the dollar is doing he's willing to sacrifice the dollar to save the economy but when he sacrifices the dollar ultimately it's going to ruin the economy it's a short term fix it's a band-aid but it's a band-aid it's going to leak ok so to come up with a price of gold that would satisfy the outstanding claims. currency you're using the dollars hold by foreign banks to come up with your ratio of how that will play out how others are looking at the u.s. money supply they look at m. one or m two as that's number is reported and they

treasurys.> money is slowing into what else, u.s. treasurys. >> jon: are you (beep) serious? are you (beep) serious? the u.s. gets downgraded so the financial institutions are flushing their money out of stocks from a booen goose to stash it in the safest place they can find, freshly downgraded u.s. treasurys. basically you burn up the (beep) house down and then you have the balls to come over and go, hey, is your basement still standing? you mind if i, you know, put my money there for a little bit? just until i can find a nicer place for it to live? between you and me singapore is looking pretty nice this time of year. forget, you guys. we can go other places for money. you're not the only game in town. hey, what's up, isle of mann? can i talk to you? would you be able to float us some whatever your currency is, mann-bucks. i don't know. oh, i saw that footage of the pool. it was a (beep). what is the country code for luxembourg? we'll be right back. ( cheers and applause ) >> jon: welcome back

he is only 34 years old when washington appoints him the first treasury secretary. this instantly makes him not only the most powerful person in america, it guarantees he'll be the most controversial. why? remember washington's cabinet and the term was not used. it was originally called the general council, washington's cabinet consist ted of just three people. thomas jefferson secretary of state, henry knox secretary of war and hamilton for treasury. fair to say, pound for pound the best cabinet in american history. even the attorney general is a part time legal adviser to the president, lacking that small thing called the justice department at that point. in the early days jefferson starts with six employees. henry knox starts with a mere dozen. hamilton starts out with about three dozen and the number quickly balloons to several hundred employees. a frightening bureaucracy by the standards of the day. and also again many times larger than the rest of the government combined. which is why historians tend to liken hamilton's position in washington's administration

. >> the market tells us -- right now the treasury -- we can still followed treasurys in the market --

we can go out and buy at treasuries and then sell them back to the federal reserve and make money on the deal. well wall street certainly some of the banks that are trading in the treasury markets are flipping them buying them and selling into the treasury but wall street makes a lot more money based on the fact that interest rates are being held artificially low it helps to finance all their leverage transactions we're talking about highly leveraged entities on wall street but you know what's good for wall street is not good for america you know part of the solution to america's problems is a contraction on wall street we have too large percentage of our g.n.p. in finance that has to shrink that sector sector has to contract but the government piece propagate up with cheap money but in order to prop up finance the government has to drain the money from other big areas of the economy were badly needed we need to produce art that we didn't make or stuff and we're not going to do that if all the credit that finance business is financed is speculation instead and that's the best really

what are other examples where the treasury department not carry forward the will of the president? tim geithner and i went went through it letter and a verse. the responses full, complete. this is in the book. two pages. if you read that, at the end of the day, it is hard to come to a conclusion other than tim geithner game to the president on his desire to really look at the taking down of the big banks, citibank, other big banks when they felt the urge to stock up. he was really study hard in january, february, march in 2009. the fact is that it did not happen. a month later, he thought that plans were being drawn up to dissolve city back -- citibank. he found out that they were not and he got quite agitated. i talked to the president about it and i talked to tim about it, everyone involved in that meeting where he raised his voice. there is not any dispute about it. there is no dispute that i have seen about what happened. the question is, what did the president do? did he ask lost did he take him to the woodshed? -- did he take tim to the woodshed? how does this president rise

that is what he faced when he was a treasury secretary. what did they do? they use money from the tarp and levers to with loans from the federal reserve bank. >> the fun that european countries have to decide to bail out countries in need of that. -- the fund that european countries have set aside. >> yes. then the ecb can land and leverage it up. you could double, triple the size of the actual financial amount of money that is available to purchase bonds and the secretary market. >> varied very briefly, it allows the americans to say, european problems could spread to the rest of the world which would be convenient for president obama. >> no doubt about that. this is an excuse for the obama administration. what timothy geithner was doing was trying to lay the groundwork for the g-20 meeting later this we year -- later this year. >> american astronomers say they have discovered a planet orbiting two sons. it was discovered with the massive kepler telescope. there is another development in space that might have less looking skyward. >> and lift off of the sp

treasury secretary timothy geithner. he sat down with our washington bureau chief darren gersh earlier today. darren began by asking him about why the president is so focused on the buffett rule. >> mr. secretary, fisch of all, thank you very much for your time, appreciate it i want to start off y is the president focusing so much on what people are calling the buffett rule? >> well w what the president laid out today was as part of a very tough, very strong long-term fiscal reform to go back to within our means, re-- he proposed comprehensive tax reform with important broad principleses. those were the lower rates, try to clean up a lot of waste in the tax code, help contribute to deficit reduction, help improve incentives for investors in the united states so we're more competitive but also we want to make the system more fair. as part of that what he said is it's only part of it, his basic views if you make more than a million dollars a year today, that we want to make sure you're not paying less in tax than an averag

treasuries still doing ok well gold fell when you make that. op that's a good question and i took it personally on unbolt today and i'm kind of curious about it myself but i was much more concerned about copper copper has been following thirty percent in the last three four weeks i paid well from its high of for twenty or better and now it's three and half watts per pound now up the issue is ok mostly people say that only copper has ph d. in economics and i think this is very troubled worrisome because it basically means that the markets have decided that there is not going to be a reactivation an economy and that the world's economy that is i mean just global on a global level is not going to react to make in the short to medium term but it is the next. months and so you're seeing that in the price of commodities in the us with money in particular which are falling and falling rather drastic and that is particularly worrisome and how they should both reports this fall into that people even with seventy five posts a day i think that that is per

step plan first governments of the eurozone must agree in principle on a treaty creating a common treasury for the e.u. second until that main banks must be put under the european central bank in return for a temporary guarantee and permanent recapitalization and third european central bank would enable countries like italy and spain to temporal or temporarily refinance themselves within limits not a very low cost so soros argues and these steps would call markets give europe time to develop a growth strategy that is the right to any price to you in new york to discuss it as your wise and all deputy editor of the business insider joe i want to thank you so much for joining us tonight and before we get into sorry for land i want to go back to this move yesterday by germany that made everybody throw their hands up think good are one step closer but you point out that there are still actually some real obstacles involved including slovakia tell us about that. is kind of cruising you look at the inter world has come to that everyone is sitting around in suspense what are wondering what the slo

crimes enforcement network, within that department, working closely with the treasury the f.b.i. conducts significant outreach to our financial industry counterparts. through these continuing partnerships, the financial industry is better able to identify and report trends or patterns of suspicious activity around the country. in addition, they coordinate efforts with our foreign intelligence and law enforcement partners around the world. through all the f.b.i.'s 62 legal attache offices, they jointly investigate terrorist financing matters with our foreign counterparts. these relationships are key to the f.b.i.'s efforts to stem the flow of financial support to terrorists and protect the united states from terrorist attacks. in conclusion, the efforts of tfos in close coordination with our federal, state, and local partners, the financial industry, and our international partners have established an increasingly difficult environment within which terrorist finance years can operate undetected. -- financeers can operate under defected. we believe these efforts have reduced the fun

treasuries still doing ok but gold fell how do you make of that. up it's a good question i took it personally and well today and i'm kind of curious about it myself but i was much more concerned about copper. and thought on thirty percent in the last three four weeks i think from its high of particles of four twenty or whatever and you know it's a three and a half thoughts per pound now the issue is chemically people say that only copper has ph d. in economics and i think that this is very true or is that because it basically means that the markets have decided that there is not going to be a reactivation economy and that the world's economy that is i mean just local global level is not going to react to make in the short to medium term but it is the next. months and so you're seeing that in the price of commodities and just the commodities in particular which are falling and falling rather drastic and that is particularly worrisome that you should go to a person it's falling to i do believe it was seventeen point five of those today i think that t

with the treasury long-term treasury fund i think i probably take my profits right now and likewise in the answer dollar it is probably time to helpfully you sold it last month and took some profits at that point. >> all right, so just to wrap things up, chris, what would you say is the theme of your investment strategy at this point? >> at this point it's a great opportunity for value investors. there's a lot of value in the market. and it's really a global them. there's a lot of opportunity on fixed income instruments and things that have been beaten down a little bit where the fundamentals are much stronger than the market is currently pricing at. >> all right. any disclosures to make. do you own any of these stocks. >> i own all of them. >> susie: all right that is a strong recommendation. thank you so much for congress the program. >> thanks very much, susie, good to see you. >> susie: same here. our market monitor tonight chris orndorff, senior portfolio manager of western asset management. >> reporter: i'm erika miller. coming up, brooks brothers has been outfitting men for almo

treasuries right now but in the long run you know i do predict both to continue to rise probably take out two thousand dollars sometime by the end of the year and still will follow closely behind the u.k. alone each real safe haven and now they're finally getting monetary status on the world stage ok but you say that i say that at that depth classic safe haven day and we haven't seen gold rally so how do you explain that well like i said it's just fear you know we still have this person on a treasury bills are wanted to save haven the rest of the world isn't really waking up to the fact that no you know ben bernanke you will hold twist turn and hopscotch his way to q e three as soon as the markets plunge another five or ten percent so eventually you know you will see more money going to gold in the short run i think this was just sort of a fear or a panic move. christer turn its way into q e three that was the plan operation twist which of course the fed announced yesterday and then subsequently markets kind of went down the tubes that was raj joshi president of many capital trying to

treasury secretary timothy geithner shared a laugh , but it ended less happily. they failed to find common ground with their guests from washington. >> to be telling us the way the world works even though the data shows we are in a better position and to be telling us what to do with tax revenues and at the same time immediately reject a sensible measure, i found that unjustified. >> of the sensible measure is the german french push for a financial transaction tax. geithner strictly rules out such attacks, the u.s. treasury secretary tried to convince ministers to beef up stimulus programs to fight the debt crisis. for some, that is not an option. >> we are not discussing the expansion of a non-member. >> he went on to say that the decision on paying greece the next tranche of bailout funds won't be made until october. the finance minister warned that it would be too late. without the payout, athens may have to default on its debt in months. >> for more on the meeting, i talked to our correspondent and asked her why the europeans and the europeans -- and the amer

we're not going to wait for the treasury department to do something. congress can do it.ers of congress can do something. >> this bypasses treasury. >> absolutely. >> got it. >> and i'll tell you that one of the most important things i think that we need to do is to understand here that we have been had and china, for example, i've been watching what they are doing with the -- with the new car, the volt. they subsidize that to the tune of $19,000. now that's against all trade agreements, to subsidize that, but i was disappointed to see in "the times" today. about a week ago "the times" wrote general motors would not give them the technology. they were going to stand up to them. >> yeah. >> but they have capitulated now, and they are going to have a chinese partner, just like all the companies from my district have, and the chinese partner calls all the shots and they will get the technology. >> yeah. >> i mean, we just give ourselves away, and we've got to stop it. >> i got it. >> no more, no more. korea particularly bothers me because of 36,000 troops on the dmz that hav

treasury is not alone in this fight, not by any stretch. this is truly a whole-of-government effort, involving our colleagues in the state, justice and defense departments, the intelligence community, and the law enforcement community. nor is the united states alone in this fight. we work closely with the u.n., which has established an extensive legal framework for combating terrorist financing on a global level. we work closely with dozens of countries, many of whom are represented here this morning, to stem the flow of funds to terrorists. and we work closely with the international banking community and others in the private sector to prevent terrorists from using the formal financial sector to receive, store, move and use funds. sketch out where we will take treasuries counterterrorism financing efforts in the months and years to come. in the last few years it became clear that al qaeda was encountering financial difficulty. by 2010 we believe the organization was in its worst financial position in years your we assess that al qaeda's in

treasury and the federal reserve bank on behalf of the u.s. taxpayer so you need double life plus double double a plus all right. thanks so much thank you max don't go away much more coming away their other. piece which bryson. ruling. from fines to pressure its. stance on t.v. don't come. back to the guys report imax keyser time now if you go to new york and top. with nick verbinski he's the director of a new film called confidence game a documentary that examines the final week in the life of investment bank bear stearns let's take a look at a clip as bear was shoving billions in dubious loans through its c.d.o. pipeline management worked hard to cover up any problems along the way something van leeuwen found out when it was discovered that the firm had illegally sold investors millions in securities holding loans originated in west virginia. sometimes corners were cut according to west virginia code you have to be licensed by the state in order to service loans secured by property unless which. it was discovered that stearns had been buying

treasury and the federal reserve bank on behalf of the u.s. taxpayer so you may double a plus double. plus all right. thanks so much thank you max they'll go away much more coming away stay right there. well when one deals with water it has to realize that this tremendous amounts of damage that are done not just human damage but damage to the physical environment in which the battlefield takes place tremendous amounts of damage done by aerial bombs by napalm boy chemicals that whether it's a sonic boom say tractor mammals or it's the burning oil fields in iraq or its story. purpose is to list just goes on and on the geneva conventions of forty nine states that there shall be. war protect. against widespread long term and severe damage the united states although it is accepted almost all of the provisions of protocol one has taken exception to that. like millions of americans i've lost thousands of dollars in retirement funds and i haven't had as bad as many it's not just about them it's about me too. but now. since this is my film i get the la

you know the price of the treasuries instead of that being said i think the u.s. is in an unsustainable past its past is not as unsustainable as that if you openly for the short to medium term because it was so friendly to the situation and the banks you know europe has backed against the wall and it's about the fall from the wall momentarily the last time i was on your show i was asking very similar questions about if the u.s. dug would be sustainable and its current path and i said now movie on the face of it no but it appears that we are in a triumvirate of economic powers with the u.s. the e.u. and china basically taking the can down the road to see who falls for its pros crees capital flight and some of the other two which allows those two to kick the can down the road for others so we have the u.s. which i've discussed you know in detail because of the e.u. which it has its back against the wall and i think is go blow up momentarily and then we have china china is an inflationary bubble sitting on a deflationary precipice china will be able to avoid a lot of

and by it long term treasurys the idea is to push down the yield on the treasury's on the longer-term it will reduce mortgage rates and push consumer and business loans down a could create 52,000 jobs >> president barack obama is making his way back to the bay area and leave will be at late in the president will answer questions on job creation and economy at that time. it is going to be another hot day allot like this today wit. they're ready for the heat once again today. >> >> >> penis is that two u.s. berkeley students have been released their presence as bias-and cents to eight years in prison police are looking for that two people that shot a five year-old girl. referring at each other and the little girl got hurt she was hit in the knee with she is in stable condition oakland police car asking help in finding a 15 year-old girl her name is charred a sweet wine when the was last seen in august the family is concerned evening she ran away >> dow jones industrial expected to float a little bit today when dow futures of two points before the opening bell whopper with and how they p

. >> the market tells us -- right now the treasury -- we can still followed treasurys in the market -- >> we don't have -- >> enough obama's $860 billion stimulus -- in obama's $860 billion to this, there was a guarantee to a smaller company that was entirely uneconomical and went bust. you can start -- i will tell you it does -- you can study of sets with the $30 billion thrown at the clean energy industry, it completely economic and unsustainable. >> just to set the record state, mr. cantor and house republicans who supported told $0.7 billion for first responders in afghanistan in the american treasury and want to cut money for first responders in this country. charles mentions 2003 and the war in iraq -- that war in iraq has been going for eight years, the war in afghanistan at 10 years. do we not revisited after that? >> we have a new president and his extended the afghan war 2.5 years. >> i am a conservative businessman. i spent most of my life outside politics. dealing with real problems and the real economy. career politicians got us into this mess, and they simply don't know

treasury and the federal reserve bank on behalf of the u.s. taxpayer so you need to have a life plus double double a plus all right. thanks so much thank you max don't go away much more coming away stay right there. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't. charge because the big picture. welcome back to the cause report imax keyser time now to go to new york and talk with nick verbinski he's the director of a new film called confidence game a documentary that examines the final week in the life of the investment bank bear stearns let's take a look at a clip as bear was shoving billions in dubious loans through its c.d.o. pipeline minutes meant work hard to cover up any problems along the way something van leeuwen found out when it was discovered that the firm had illegally sold investors millions in securities holding loans originated in west virginia. sometimes the corners were