u.s. treasury bonds when the cold globe gangs up and starts to sell short u.s. government treasury bonds forcing interest rates up five six percent points in a matter of you know a couple of weeks then of course you know it'll be saying. america . so as that happens you see the precious metals and commodity prices shooting up but it's also the dollar collapsing you saw on the dollar index it's down below seventy four so instead of looking at that however people come up with this conspiracy theories like we see here ahead reporting on the theories silver surges over forty six twenty five per ounce as rumors of a short squeeze and cornering markets again creedence so apparently zurich and london are abuzz with rumors that a russian billionaire is buying up huge quantities of silver and yuri sergei filin the russian billionaire they're all interested because it's a natural corner it's a natural play because there's very limited supply of silver you can for thirty or forty billion dollars which for the average russian billionaire is amount of money they carry around

u.s. treasuries to the tune of hundreds of billions of dollars the u.s. treasury and gone market is it's toast it's meaningless. i wouldn't have my dog on a u.s. treasury but they're going to collapse and they're but you know the american consumer is now desperate and in pain but at the time they were laughing at jimmy mcmillan last year during the elections let's take a quick ok i represent the richest to get them home party with your kind of would agree that they're being laid off right now without speak the katie. someone stumble through joe strummer just go and you hear the chuckles there max were laughing and what did they do they voted for andrew cuomo who what did he do as soon as he came into office here he gave a tax break to the very bankers that caused the economic chaos which is distressing them peace the terrorists again and into why are they so up there shrank for. of the financial terrorists andrew cuomo i mean any greens up there this am of oxygen to brave the head firmly up the string string of the financial terrorists on wall street andre

u.s. treasury bond market is kaka it's toast it's meaningless it's i wouldn't have my dog on a u.s. treasury but they're going to collapse and they're. you know the american consumer is now desperate and in pain but at the time they were laughing at jimmy mcmillan last year during the elections let's take a clip of him i represent a risk to get him home party you could not rebut your kind of. there being laid off right now we're just. ok to. listen someone stomach your stomach just broke and you hear the chuckles there max people were laughing and what did they do they voted for andrew cuomo who what did he do as soon as he came into office this year he gave a tax break to the very bankers that have caused the economic chaos which is distressing them the terrorists again i mean why are they so the shrine strength of the of the financial terrorists andrew cuomo i mean any greens up there they have oxygen to brave the head firmly up the strengthening of the financial terrorists on wall street andrew a little earth plan to so let's look at another situation another crime wave that is pa

u.s. treasuries snellen trillion dollar deficits as far as the no skin sneak some cons are the walls largest economy has to go for growth and even better isn't possible can it handle that but mounting criticism of the learns on strategy and spiraling prices for anything priced in the greenback on the line and having confidence in the u.s. dollar and the global economy that on the that if you wish for crossover artsy. ok. and i go to you first i'd like to read something to you the united states of america if we didn't have the dollar is the de facto reserve currency of the world we'd be greece i mean we are broke bankrupt really bankrupt and that was former treasury secretary james baker and he reflected on those words. well bill gross of us was saying that the u.s. is actually out greeting the greeks speedo's if you add all of the unfunded liabilities to the national debt figure i mean the national debt failure. isn't really what this is really about but really the unfunded liabilities are the so-called fiscal gap and that's two hundred and put trillion us dollars saw in many ways that's wor

u.s. treasuries but by the way also euro zone doesn't look better again so the rest we i'm very optimistic on it ok jeffrey in cambridge i go to you is that too bleak of a picture there i mean part of the past the point of no return that's remarkable. well absolutely not and i'm not sure i heard that right there is there's no chance we're going to have a restructuring of the. i mean we have a very serious long term debt problem we've had it for quite a while it's long it's long term in two ways one that the problem is that deficits the moment the problem is retirements and the rapidly increase in pensions and health spending medicare and social security that are going to come over the next few decades that's the problem it's also long term in the sense that we we've been facing this problem for thirty years many people like myself have been worried about this for thirty years there's nothing that you can about about this year the only thing that's magic about this here is it's become a political issue this year the american political system kind of bizarrely swings back and forth between n

u.s. treasury opens its doors to reinflate the speculative games the commercial houses like goldman sachs and gage. no the and it's very clear that this was fraudulent activity they knew that they were giving mortgages to people who could never repay it they got rid of those mortgages as fast as they could devise in the market a derivative selling them to institutions private investors for a one k.'s even stadium in a civil governments with a aaa bond rating knowing that they were garbage knowing that these people couldn't pay it back and yet there is no way that either party can defy the interests of wall street and that i think is a window into how anemic and deflated our democracy has become also if we take that into account the fact that there have yet to be any prosecutions for anyone on the austrian who caused the economic crash and as you said there probably will be nine if we look into the fact that there have been no prosecutions for the bush torture program any of the bush senior administration officials there the cia interrogation tapes that investigation was completely dropped

u.s. treasury auction room. every week from investors here and around the world, to keep the u.s. government running. but if congress fails to raise the debt ceiling, the treasury's credit card would hit its limit. this room would shut down, and the u.s. government could go into default. >> the consequences of that would be catastrophic to the united states. >> reporter: treasury secretary tim geithner, before congress, and in an interview, warned those consequences would be worse than the financial crisis we just went through. what's the risk if we hit the ceiling? >> we shake the basic foundation of the entire global financial system >> reporter: >> reporter: because america's debt is the gold standard of the world. the u.s. has always paid back with interest. >> if you default on the debt, which has never happened in our history, we now have a whole different world. if you can't trust u.s. treasury securities, what can you trust? >> reporter: rick is a former governor of the federal reserve. >> this is what t

u.s. treasury's auction room where it borrows billions every week from investors here and around the world to keep the u.s. government running. but if congress fails to raise the debt ceiling, the treasury's credit card would hit its limit. this room would shut down and the u.s. government could go into default. >> the consequences of that would be catastrophic to the united states. >> reporter: treasury secretary tim geithner before congress and in an interview again today warned those consequences would be worse than the financial crisis we just went through. what's the risk if we hit the ceiling? >> it would shake the basic foundation of the entire global financial system. >> reporter: because america's debt is the gold standard of the world. the u.s. has always paid back with interest. >> if you default on the debt-- which has never happened in our history-- we now have a whole different world. if you can't trust u.s. treasury securities, what can you trust? >> reporter: ric mishkin is a former governor of the federal reserve. >> this is what they do in countries like argentina. this i

u.s. treasury securities there isn't the slightest sign that they that they're getting tired of it so to use the phrase. debt crisis is to my mind absurd five years ago i don't feel it is better that i really like a lot of debt yet because nobody has buying it. ok i was just following this look at sawyer caught a lot of other. and i was buying i mean we know i mean it isn't just the u.s. federal reserve lots of other central banks like china are buying now you might say at some point they're going to stop and i'm worried about that too but at the moment they're not slowing down their purchases foreign central banks ok joe where you where do you do it and where do you jump you know this. on the view the crisis is totally overhyped i mean this idea is like will if we didn't have the dollar we would be greece but we do of the dollar and. it we have a fundamentally different monetary system. doesn't control its own currency there's actually borrowing in someone else currency they have to build up a surplus and then pay it back we have a fundamentally different system than that and it compares to

u.s. treasury but they're going to collapse and they're yeah but they rescued consumers now desperate and in pain but at the time they were laughing at jimmy mcmillan last year during the elections let's take a quick break here i represent the richest party if you don't get rid of your kind of border there being laid off right now would just be ok brooke because you're going to miss it someone stomach sure joe strummer just broke and you hear the chuckles there max people were laughing and what did they do they voted for cuomo what did he do as soon as he came into office this year he gave a tax break to the very bankers that have caused the economic chaos which is distressing them the terrorists again i mean go why are they so up the strength of the of the financial terrorists andrew cuomo i mean any greens up there does have the oxygen the brain of the head firmly up the strength of the financial terrorists on wall street andrew a little earth and so let's look at another situation another crime wave that is part and parcel of this banking crime wave on the trail of the scrap metal crim

u.s. treasury were number one in issuing and trading government debt in the u.k.next, the u.s., around the world. >> rose: we continue with golf this evening, the masters tournament begins on thursday at the augusta national golf course in georgia we talk to jim nantz and sir nick faldo. >> i would take phil mickelson. he shot 63, 65 over the weekend. he hasn't been playing super until last week, peeking at the right time just as he did a year ago. he had no record in 2010 until he game to augusta and of course that was ap epic win given the state of affairs with both his wife and mother battling breast cancer, one of the great winds around here. >> there are certain shots you look at, and the circumstances, where the hole is located, and the difficulty of the shot, will just scare you for a moment. and if you can't deal with that, then,, you know, it kind of compounds. if you scare expwrurz hit a poor shot, obviously, you're in serious trouble. it's learning to deal with that. it pushes you to the limit basically on just about every shot. >> rose: jamie oliver, the british chef scheduled

u.s. treasury the u.s. sovereign debt on a downgrade watch and if you do keep importing more than you x. poor you keep running giant trade deficits and you consume more than you produce that explains part of why we're growing slowly and they're growing relatively quickly i do think that one thing the chinese have done well the americans have done quite badly which is accelerated this process is a the united states got the sort of play where they made the assumption that american dominance was baked into the cake and would be dominant because we're american and sort of thinking it as an accident of history which is fragile and won't last and i think is that we continue to make national political policy for the political expedience and short term benefit of a small number of politicians instead of having a really disciplined long term outlook on the chinese continue to make basic policy decisions in order to maximize their growth and have a dominant position in the world economy five ten and twenty years from now and having much better policy eventually catches up with the people with the

u.s. treasury department will stop sending out paper checks. that's expected to save $1 billion over the next decade. for anyone currently receiving federal benefits by a paper check, have you until march 2013 to switch to direct deposit. >>> the 49ers are looking for a big company with deep pockets. it's a company willing to pay big money for the rights to have its name adorn their new $900 million stadium in santa clara. the 9ers have hired c.a.a. sports to lead this naming rights search. the company from southern california has scored huge contracts for athletes like lebron james, derek jeter and peyton manning. >>> coming up on the news at 5:00, as we reported earlier, the legal battle in the jaycee dugard case is over. phillip and nancy garrido pleaded guilty to kidnapping and rape today. we'll have live team coverage including a visit to the east bay community where she was held captive for 18 years. >>> that and more coming up at 5:00. thanks for watching. have a great day.

u.s. treasury secretary. >> at first i thought it was laughable.ou know, i was just going -- and the guys up there are the secret service guys. of course! this happens every day. >> alexander says it was a relief to figure out it was the secret service hanging out here in the parking lot, because for once he didn't have to worry about his car getting broken in into. half moon bay was a world away from president obama's campaign stops in the bay area. alexander says geithner was down to earth and a good surfer who could probably use some time in the water. >> who knows, he probably just unloads all the economy off his -- you know, that's a lot of unloading. oh, my god, you need at least a few surf sessions for that. >> geithner left a nice tip, but this small business owner is wishing he asked about stimulus. >> yeah, a tax break would have been good. although mine would have been very little. >> reporter: alexander is now riding a wave of excitement after a one of a kind surf lesson. >> let's turn now to jeff talking about the weather, not just in

u.s. treasury debt from stable to negative. s&p said there's a, quote, significant risk that democrats and republicans cannot agree on spending and deficits until after the 2012 election. the agency said we see the path to agreement as challenging because the gap between the parties remains wide. s&p also suggested it might lower the triple-a credit rating on u.s. bonds in the next two years. raising the government's cost of borrowing. u.s. treasury officials said the rating agency underestimated prospects for action. but white house press secretary jay carney said the president welcomes the s&p statement. >> any call for a bipartisan agreement on deficit reduction on fiscal reform is a welcome one. and in that context i think that it adds to what we believe is some momentum towards that end. >> woodruff: last week the president introduced a plan to cut $4 trillion from the federal deficit over 12 years. house republicans passed a package cutting the deficit by more than $4 trillion over ten years. in the meantime, the two side

u.s. treasury secretary. >> at first i thought i was just, you know, it was laughable. i was just going, and the guys up there on the bluff are the secret service guys, of course. this happens every day. >> reporter: alexander says it was a relief to figure out it was the secret service hanging out here in the parking lot because, for once, he didn't have to worry about his car getting broken into. >> half moon bay was a world away from president obama's campaign stops in the bay area. alexander says geithner was down to earth and a good surfer who could probably use some time in the water. >> who knows. he probably just unloads all the economy off his -- that's a lot of unloading. oh, my god, you need at least a few surf sessions for that. >> reporter: geithner left a nice tip but this small business owner is wishing he asked about stimulus. >> yeah, tax break would have been good. although, mine would have been very little. >> alexander is now riding a wave of excitement after a one of a kind surf lesson. jean elle, nbc bay area news. >>> six seals are swimming in the

u.s. treasury bonds. although s&p officially affirmed that top grade today, the agency took the first step toward a downgrade. yes, the obama administration and house republicans have made progress on a plan to slash the budget deficit. s&p's david beers says the concern is nothing will be finalized until after the 2012 elections. >> clearly implementation is the issue here. it's one thing to agree on things. it's another to actually have credible measures underlying an agreement. >> reporter: under the most pessimistic scenario, s&p predicts the net national debt could surpass 90% of gross domestic product within two years. so what does a negative outlook mean to individual investors? if you own stocks, investment strategist jim awad recommends doing nothing. >> i think investors should assume that politicians under duress and pressure and screaming and shouting will put together a plan that is credible enough to satisfy the credit agencies and international investors. therefore, u.s. domestic investors

u.s. government treasury bond market as it appears in these pension accounts they transfer losses guaranteed. losses that's the problem with the u.s. government treasury bond market is that we are buying these bonds today you're locking in a guaranteed loss of capital but of course nobody is telling the pension holders of the pension funds the stark fact and they're going to wake up one day find out they're down forty percent and everyone in wall street in the city of london and in washington will say we never saw it coming it was a huge accident we're just going to have to try better next time when it was a planned demolition oh golf confiscations game more money laundering and more financial terrorism from the folks in washington and wall street colluding together once again to destroy everything and the other thing to note here is this propaganda pushed on to the people that these are entitle lint programs that they didn't contribute to them fifteen percent of their income for the last forty fifty years that they were putting money into this and the funny is owed and they were basically l

u.s. treasury the u.s. sovereign debt on a downgrade watch and if you do keep importing more than you act or you keep running giant trade deficits and you consume more than you produce and you outsource and ship those jobs and you import a lot of goods from another place and that places china and then you're actually sending out your growth and they're receiving it so if you see if we've bought off shored a lot of our growth and brought in their products now explains part of why we're growing slowly and they're growing relatively quickly so i guess any of the freakout that we might see from lawmakers on capitol hill should be taken with a grain of salt given that our own policies were to blame now broadly speaking what in your mind is this a the rise of china say about the failures or success or successes of free market capitalism and democracy. well i mean i think there's maybe more to be debate about different rates of democracy between the united states and china i think china is a pretty thoroughly capi

u.s. treasury plans to sell a significant part of its remaining stake in gm this summer, even though that would almost certainly mean that taxpayers take a loss. gm stock has weakened recently, falling below $30 on monday. just to break even, the treasury would have to sell at $53 a share. >>> meanwhile, gm is raising prices on nearly all buick, chevy, gmc, and cadillac models by $133. the increase is to make up for the high price of oil and metal. it goes into effect may 2. >>> air passengers are paying more to fly delta. the carrier has raised fares by $10 on most round trip u.s. routes. other carriers have not yet matched that hike. this is the 11th attempt to raise base fares so far this year. >>> tablet computer buyers have a new option. the blackberry tablet hits the stores today. it has a front and rear camera, a seven-inch touch screen and can connect to a phone. early reviews have been positive with the major complaint being the lack of apps to run. analysts thinks it has the best chance so far of taking on the apple mighty ipad and sells for the same price with the cheapest vers

u.s. treasury bonds if it stops buying u.s. and financing u.s. the u.s. government in the u.s. economy would collapse the chinese market is great for us and western multinational corporations to invest and yet at the same time the united states would like to in fact carry out regime change in china as it did in iraq. as it did in afghanistan as it's trying to do it as would like to do in cuba or venezuela because even though it has trade ties with and makes profit from its relationships with these countries in particular china it has an organic hostility it sees them as competitors and i think that would be the case of russia as well the united states does not want any other regional or global power to emerge that would rival us or germany just real quick brian what's the point of this report i mean certainly the u.s. has no obligation to come out with a report that also criticizes its own policy it certainly does a good job criticizing the other countries and you know rightfully so on a lot of these charges but what's the point of this and you know is there an equal report tha

u.s. treasuries but by the way also eurozone doesn't look great again saw the rest we are very optimistic on it ok jeffrey in cambridge i'm going to you is that too bleak of a picture there many people like myself have been worried about this for thirty years there's nothing bad to about about this year the only thing that's bad about this year is it's become a political issue this year the american political system kind of bizarrely swings back and forth between not being concerned at all about the problem and making it much worse with huge tax cuts. to. use today violence is once again flared up. these are the images the world seen from the streets of canada. trying to corporations rule today. mine. would be soo much gricean if you move the sun from the sun stuporous you can see. these flu stunts on t.v. don't come. wealthy british soil sun. spot on to explain. markets why not. come to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune in to cause a report on r.g.p. . back you're watching r t live