department show the figures released by the us treasury department show the country of the united states currently has a total operating cash balance of seventy three point seven billion dollars this compares with apple's seventy six point four billion of cash reserves which has built up during a phenomenal half decade of strong sales of course most of their goods are well they're designed and innovated. in the united states but they're all manufactured in china spends up a number of interesting telling stacey first of all fifty percent of all the apples manufacturing capacity could be in the united states so instead of having seventy or eighty billion in cash they might only have ten or twenty billion in cash by law under the se c. a company is not even allowed to have that much cash without paying a dividend so they're actually breaking the law on that front second of all this is actual cash apple's balance sheet it's not their money so call that's on the american government's balance sheet which is actually not hard cold cash it's a low grade debt which is still debt based whic

economic play is central banks will change the structural there was a can amass dumping of the us treasury happened and what implications can we expect in this case what else is there for them what our chinese colleagues in spite of their trade still can sway us on their own willingness to revalue their currency and still keep most of their phones in dollars even though they use them actively to penetrate the development of african and asian economies to develop their infrastructure and so on there's nowhere to go the world is astonished in the uni polar way you can just get out of them are huge especially when you have kids. thank you very much. the people of the united states and their friends and allies will not live at the mercy of an outlaw regime that threatens the peace with weapons of mass murder his regime as an active program to acquire and develop nuclear weapons and let there be no doubt about the know for a fact there are let there. this were just being carried out into the direction of dr david kay respected scientist and former u.n. inspector was leading the weapons search i

. >> reporter: amidst the stock plunge, investors are turning more now to us treasury bonds. just to show you now how bad it has gotten, the index is fewer than 500 points away from officially entering bear territory. kind of scary there. something else people will be looking to is the weekly jobless claims. those numbers released today in washington. just another factor that contributes to just how confident people are when it comes to the economy. >> all right. up and down we go. stephanie chuang in the newsroom, thank you. >>> police have a possible motive for that shooting that killed a 3-year-old boy in the east bay. anne makovec in oakland where the search for suspects continues. she joins us with more. anne, good morning. >>> reporter: they have one person of interest in custody right now but no official murder charges have been filed. so police aren't saying a lot but they are either building a case against that person or the shoot core still be on the loose. 3-year-old carlos fernandez nava was caught in the crossfire of what appears to be a gang shooting on internat

players central banks will obviously change the structure of their reserves kemas dumping of the us treasury happen and what implications can we expect to read you what else is there for them our chinese colleagues in spite of their trade surplus with the u.s. and their own willingness to revalue their currency still keep most of their phones in dollars even though they use them actively to penetrate the development of african and asian economies to develop their infrastructure and so on. there's nowhere to go the world is a stablished in a uni polar way you can't just get out of a marriage especially when you have kids. thank you very much. wealthy british style. market why not come to. find out what's really happening to the global economy with max concert for a no holds barred look at the global financial headlines tune into a report.

received a few areas response from the us treasury explained the agency of making a two trillion dollar mistake he us security and exchange commission is down best in the company aig allegations of insider trading before the country's rating change was official well as our financial analyst a car this is just the start of a full scale private get to reseize of credit rating agencies. the path itself probably doesn't begin or end with an if impede my guess is the investigation is going to find out if the if it's not just an arm waving show that there were some extra party that had nothing to do with us and he made a great deal of money on friday there is clearly a political element to this if you know downgrades coming in you're short the market prior to that you could make a great deal of money that is a serious concern and we get weekly from the system like there's a good question in regards to why hasn't insider trading been investigated in the general sense lehman brothers for example was known by some of their card counter parties to be functionally bankrupt for some time prior to w

dollar enjoys which it is about to lose the rating on the us treasury bonds is on the way down from aaa down to triple be down to wherever greece's debt rating is at the current moment and this all bond. ponzi scheme that's been in force for decades is crumbling and christine lagarde is absolutely correct of course she took over from dumb extras con who's got some troubles here in new york city mabel got an interview with him later but let's go back to this exorbitant privilege because this is what ballard just saying said as she referred to but this was under the charles de gaulle administration recall and this is the first time that america really went bankrupt big time on the global stage because in one nine hundred sixty nine charles de gaulle asked for the three hundred million dollars worth of gold that the us technically owed france due to the trade deficit and france sent a naval ship over here to new york to collect their gold and america had to give it to france had to give the three hundred million dollars worth of gold shortly there after great and asked for their gold as we

treasury securities there isn't the slightest sign that they that they're getting tired of it so they use the phrase. a debt crisis is to my mind absurd five years ago i don't feel it is bad it really does they have a lot of debt yet because nobody has buying it. ok it's not just following us look at sawyer a lot of other china is buying as 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 start 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 gentlemen and where do you jump in all 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. we have a fundamentally different monetary system. doesn't control its own currency they're subtly borrowing and someone else currency they have to build up a surplus of them pay it back we're fundamentally different system than that and to compare as through greec

terms of the so-called pigs but we'll be talking about certainly a whole new issue of risk in the us treasury market and that's probably going to remain the one fundamental issue is how all that much longer does does communism's last stand on the finance capitalisms fallen angel because that's really what's happening right now with the people's bank of china fund during this huge us deficit what do you think about that andrew i mean it's interesting is that you know we can go to different options g two you know just the two main countries and get rid of everyone else or go g twenty but a.g.d. eight isn't sustainable it's just it's turning into just a club and a club it really is just a photo op. well i think i think that's true and that's the point i was making at the beginning i think it is important in some sense to as it were sort of feel the the feel the heft of somebody is handshake but that's about all that the g eight is good for but you don't actually have to go to a g. two you have to pick up the telephone i mean there in some sense the idea that you have these big grand internationa

has been downgraded to double a plus with a negative outlook that's one notch down from the aaa us treasury department's been put on the defensive saying there's a two trillion dollar mistake in s. and p's calculations the firm admitted. as much but says they're sticking with this position saying the huge budget deficit is a cause for major concern drawn out negotiations for a debt ceiling deal that rescued the country from a potential default also shook investor confidence dr rodriguez tramway from the university of montreal says the u.s. government's hands may be tied over the economy. it shows a lack of confidence in the u.s. government we are in in an economy stormy to you no way and it seems that the as s. and p. and i do economists are saying the u.s. government is spider ally is it's a bit like a ship without a captain in a storm this is not very nice or very good and it doesn't look very good for the next two years because the election is only in two thousand and twelve and then i think the u.s. government is deadlock and cannot do any very serious policy decisions to counteract the

china then takes us dollars and in the past few years past decade really has been buying us treasuries with it. and that's really as you're exactly right china has to print renminbi to soak up those dollars and that's what's really led to the high inflation here in china you know official inflation rate in china are five to six percent but most people here would tell you they're they're closer to ten percent. so in a rising remember he is going to help the inflation problem in china and i think the central bank here in china finally is coming to that conclusion as well ok you know one of the biggest problem with the u.s. dollar of course is that the u.s. instead of dealing with their banker corruption problem they're simply printing more dollars in the hopes that by bailing out the creditors during the last five year mortgage fraud that somehow the growth engine will start up at some point and what we're seeing is of course the exact opposite they're just exacerbating a problem so that's a problem with the u.s. dollar as a sort of currency but now china is also printing up lots of arm

but what about it being a safe haven a triple eight has had that decision for a long time making us treasuries for example a safe investment what would that mean for investors will markets be reacting to this it's not a safe haven anymore according to some of these ratings because three years ago it's standard poor's and moody's said that sub prime loans were aaa they had hundreds of sub prime loans that were aaa they said that ai g. was aaa and until the day it went bankrupt they said fannie mae and freddie mac. were trying to be aaa until they went bankrupt please these people have never been right why do you pay attention to me well let's just say i'll their investors who don't share your view for as i believe they still believe put the information safe you see sammy there are a lot of investors who do react to what agencies say what effect will this have on the asian economy but you say that i don't know any investors any real investors who pay any attention to these people anymore what effect will have on the asian economy no known whatsoever all the asians already know that america's got

us. treasury bonds many people are saying that they could start investing more in asian markets like india and china so many people over here are actually seeing all of this as an opportunity for that shift to really happen and for more of the international community to get on board and move away from the dollar as the reserve currency to some sort of basket currency that could include a lot of the asian powerhouses like japan and china. well earlier we spoke to martin had a k.'s who director of financial advisory group he told us he believes the financial power shift may have already started to happen. in many regards china has already overtaken clearly. the suppose of number one economy in the united states and that's when you're looking at the physical economy physical production they're on the purchasing power adjusted basis because their renminbi is undervalued and they need to reflect that when looking at economic sizes projection by standard and poor's made in the year two thousand and five there was six years before now where they actually projected that all the major western gover

it on the willingness of foreigners to hold us treasury securities there isn't the slightest sign that they are that they're getting tired of it so to use a phrase. that crisis is to my mind absurd five years ago i don't feel it is better to remain as they have been crying a lot of debt yet it was no us buying it. ok i was just telling us look at sawyer a lot of other china's buying it 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 do you jim if anyone were to jump you know this. 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. we have a fundamentally different monetary system the various greece doesn't control its own currency they're suddenly borrowing in someone else's currency they have to build up a surplus and then pay it back we will fundamentall

on we heard a lot from him including a bold prediction you think that everyone has a wrong with us treasuries so walk away and get that explodes that was peter schiff president of euro pacific capital well as you heard my last guest say the u.s. is clearly not doing well and on top of all the economic issues one of the issues is that the government is saddled with close to fifteen trillion dollars worth of debt which we saw play out with all sorts of theatrical during the debt ceiling debate which resulted in the u.s. credit rating taking a blow now earlier my colleague christine for that had a chance to sit down and speak with presidential hopeful and former governor of new mexico gary johnson he wants to be part of the g.o.p. ticket now to start off he explained his solutions for the u.s. budget deficit and tax system for their. what i'm talking about is balancing the federal budget what i'm talking about is throwing out the existing u.s. tax structure and replacing it with the with the fair tax and for those that are watching get online fair tax not or this is been around a long time but i

free but the most probable scenario that they will announce the program or warned us treasuries buy bear curve on the end of the cure. this is the basics their market is expecting but if they will provide more market will be more happy all right well i'll see you in fifteen minutes time if you can join me of course for a business update kind of next level. see the british. market. find out what's really happening to the global economy. the no holds barred look at the global financial headlines kaiser report. hungry for the full scale we've got. the biggest issues get a human voice face to face with the news maker.

made a mistake and likewise i would rule out that us treasury i was quite a lot at stake here and we also have blown up a disagreement into an actual factual error and the ratings agencies have been tarnished part because of their own misdeeds and lack of performance all over the world for many decades but the truth remains that imperfect problematic as they are they are the reading and real decisions and real legal contracts are written based on these readings however questionable the source means the max is really going to hear what you have to say thanks so much for your time thanks for joining us live there maxwell senior analyst at green crest capital there in new york thanks always my pleasure thank you for having me. or china as we've just been talking about is the largest holder of the u.s. debt is immediately reacted to the news of the downgrade saying that washington needs to cure its debt addiction also as we just mentioned in that interview with max wolf that beijing has suggested a new stable reserve currency saying it's needed instead of the dollar will concerns are als

us treasuries buy back are on their way and warm again because of this is the basics of their market is expecting him but if there will provide more markets will be more happy. well it seems before these fed meetings the traders did not pay so much attention as they do now is that true. do you want to go there now to the fed meetings to ben and he statements. well actually it seems to me that especially today these attention is really high. actually government he didn't supposed to tell anything from these meetings. are here right now i have to all right well during the day we have seen precious metals which trading mixed gold was up silver was down why is that. i think that the gold is just so. old i'm crying. before these meeting people want to have some profits because if there will be some positive comments from bernanke the market will reverse with a positive side maybe gold will be sold off or be just four of the base do you think there are any other safe assets available except for gold and cash. it's really difficult to find right now actually to kill sub or if you were on do

show policy later that the economy is back but then all of the run into the bond markets into us treasuries along with gold show that people want to have cash because the sound of the day can you can you pay your bills with all but sure i mean you can pay the bills any day not everybody is smart enough to understand what gold value is but you know most people would accept gold in exchange for goods or maybe you need silver but if the person who has a good that you want doesn't have the gold you can always sell the gold to somebody else and get the cash because gold is money minutes recognized around the world everything else is just a substitute for money you and ron paul say that ben bernanke the federal reserve chairman seems to disagree they got in that fight but i want to put that you never get anything right so i would be surprised that you got that wrong do you think you know what happens venezuela leader hugo chavez is taking his gold out of the u.s. and you kerry wants to he wants to repatriate a do you think that's making people worry that there may not be enough physical that migh

. >> amid the stock plunge, investors are turning more to us treasury bonds. just to show you how bad it is, the index is fewer than 500 points away from officially enteringbearr territory. >>> a shooting suspect in the east bay of a 3-year-old boy. anne makovec reports. >> reporter: one person has been named a person of interest in custody. but no official murder charges filed against that person. police are building the case or the shooter is on the looks. police are not saying a lot this morning. carlos nava was caught in the crossfire of a gang shooting on international boulevard on monday afternoon. the intended targets of the shoot were affiliated with the housing project next door called lockwood gardens. which has been in a turf war with other people at another complex about four blocks way. that is the group with which two people detained for questioning are affiliated but officially police are being tight-lipped. they are still looking for other people connected with the shooting. we don't know though if that includes the shooter in this case. police

know, looking at all these selloffs around the world and in the u.s., people are buying gold and us treasury bonds but i can't imagine all that money is just going there. where else are people putting their money? what's considered safe? >> if anywhere. >> reporter: you know, precious metals is definitely something that people are putting their money in. it's amazing that gold is hitting this high of a record. 1881 -- excuse me, 1,881 per ounce. and i'll tell you, the other thing that's indicating -- that could indicate a slowdown is oil is down actually oil is at around $81 a barrel because of fears of an economic slowdown. that would mean there would be less demand for oil. >> gas prices are go down. 401(k)s are bleeding money right now. very sad. ines ferre live in new york thank you so much. >>> when the stocks take a slide on wall street there are certain people who need to stay on the job and that includes the commander-in-chief. >> yeah. for more on all the flak the president is taking as he settles in on martha's vineyard for the next week and a half we turn to our cbs 5 political in

it is it is a run of the bank answer masked the collapsed structure the computers to buy more treasuries using borrowed money which is only making people going gold want to buy more gold like i said treasuries carry the downgrade risk or at least they did until last week d.o.j. probing s. and p. the investigation centers on the alleged cases in which the company's alice sought to award lower ratings than mortgage bonds but had other s. and p. managers overruled them the department of justice in america alleges that they began the program s. and p. before the downgrade of us that they're going to rewrite the story of the boy who pointed out that the king have no clothes in this version the king investigates the boy for having faulty eyesight. well so i mean yes s. and p. did faulty grade these things but are fiction oh it won't last oh oh oh oh oh oh oh oh oh oh oh no no they didn't falsely grade these things but two trillion dollar error supposedly according to our body peter schiff this was an assumption that a certain growth parameters will be met that there's no way in heck i mean a lot of

held over the citizens united case which gives corporations and labor unions the ability to use corporate treasury money for the first time. were they tainted in their visits at the koch brothers events and as a part of that we asked the justice department to investigate and we then found out that thomas had for the six years that we could see had filled out his financial statement wrong so we sent a letter to the judicial conference asking them to investigate and then forty eight hours thomas was redoing twenty one years of his financial statements where he had marked on a box saying no is white had no outside income and yet his wife ginni thomas had been known to have worked for a variety of organizations but that's not the end of it it was like six hundred thousand dollars range common causes discovered that the supreme court has exempted itself from the code of ethics that all other federal judges have been. obliged to abide by and so what we're asking is justice roberts to tell us what ethical code does the supreme court operate under and if a supreme court justice violates that or has a conf

but could certainly have an impact on banks all through the world and if banks are unable to use their treasury bills as collateral in order to borrow money from their central banks and the valley is one of a big this event of course we could see another freeze up of the world banking system but way we did in the year two thousand and eight with who knows what sort of. impact on the world economy we could be not only having a double dip but another another major recession and that is the fear which whatever they do in the united states having run up these enormous debts that fear is going to remain and it's a valid fear to. follow the risk of america's a possible self-imposed default has resonated far and why with the global stocks rally following the house vote but our teams previous reports despite the immediate economic relief more forces called in to replace the dollar as the world currency being at. chinese newspapers are calling this entire u.s. debt deal debate irresponsible and even immoral so although people are celebrating the fact that they did pass there is a lot of cautious optimis