tv [untitled] August 31, 2012 8:30pm-9:00pm EDT
to get in better shape. and cuisine with almost healthy ingredients. and. something to. our summer sales on our cheek. billion dollar. successfully fends off a multibillion dollar lawsuit. he had claimed that album of which intimidated him into selling shares in a russian oil company at a fraction of their value. un secretary general condemns the u.s. and israel for threatening to attack iran over its nuclear program this comes as a report by the u.n. nuclear watchdog says the. country has doubled production capacity of one of its
underground facilities claims that were judged by tehran. and to mitt romney the republican party nomination for the u.s. presidency promising to get tough with russia but critics say romney's frequent flip flopping on issues like abortion and health care has already inspired mistrust in his candidacy. a mixed on r.g.p. we have to our washington studio for capital account with. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and we are on vacation and you see we've been broadcasting since october so that means we're a little overdue for a break but in that time and in just the last few months we've interviewed so many amazing guests from jim grant to mark fabiani to jim rickards even joining me as a co-host and we've covered so many topics that are relevant on any given day
whether it's the bad or the eurozone crisis so we put together some of our very best and most popular episodes from the last few months for your viewing pleasure and the time while we're off and you can look forward to all new shows starting september fourth so mark your calendar and don't forget interviews can all be found in their entirety on our you tube channel you tube dot com slash capital account but for now let's get to today's capital account. all right so according to italian prime minister mario monti we have now a week to save the euro zone that came out in the headlines he said that to a group of european newspaper reporters this is ahead of the e.u.
summit planned next week so is this threat a warning it's hard to tell because it's become a bit of a boy who cried wolf refrain take a look at this last november there were ten days to save the euro we don't have those headlines but we got a bunch of them together ok in november there were ten days to save the euro or see it disintegrate in december of last year d s k domenic strauss kahn said there were three weeks left at one point in may there were only forty eight hours to save the euro according to one newspaper but i guess then george soros bought us a little time because early june remember he said we are just a few weeks into a three month deadline so when and how does the euro either persist or implode exactly well let's talk to gerald celente who specializes in telling it like it is he's founder of trends research institute publisher of the trends
journal and he joins us on capital account now and it is so great to see you you're the perfect person to talk to you on a friday to around the week out thanks for being on the show gerald oh it's always a pleasure being on with you you have one of the greatest business shows on t.v. oh you're so sweet thank you well you're one of the best guess to have on a business show on t.v. so i'm dying to know i just went over some headlines over the last year where people officials newspapers commentators have said there is a week to save the euro there is ten days to save the euro there is three months and to be fair we're still in the middle of george soros is three my prediction so i can't dock i'm there yet because who knows how it's going to turn out but the question to you gerald is is cut through the noise is the euro doomed to implode or is this salvageable or will we just keep see europe muddling along the way it has been. well it's a bigger issue than that it's not the euro and when you mention monti say what he said today or yesterday let's remember who this is this is three card monte so
that's about as good as his word it's not the euro it's the whole banking system and the banking system is collapsing worldwide and so the euro is just a part of it will the euros stay together if it's if the there is there is no telling what they may pull out but let's understand the g twenty just was going to have this grand meeting just got back from mexico and all these brilliant leaders are going to put their minds together and come up with a solution and they don't have any answers and the reason they don't have any answers is there's no solving it so what did they do oh well you saw yesterday the federal reserve went back into operations was and then read today's headline central banks ease credit as european leaders meet this step friday just as european leaders in rome are preparing to seek agreement on ways to pull europe out
of its crippling debt crisis gives banks more possibility to get ready cash let's put that in layman's language and it gives the banks the right to rate jump that they have and all this garbage that's weighing them down as credit worthy all they going to continue to do is try to keep pumping money into the system to keep it going it's as simple as that there is no way out is are they going to come up with a your robe on where they're going to put all the bonds into one package so that these rates don't keep skyrocketing doubtful but they're going to come up with something that's why they always stall it how long will it last it's a guess totally and these programs to turn trash to cash we've seen and it does seem that they're just getting ever more. are creative and ever willing to break whatever rules are on the books in order to institute them so bigger picture and though beyond the banks one trend that that it seems that we see and there were
a lot of quips to this effect going into the germany and greece soccer game this afternoon it's this sense that germany is calling the shots and taking control and in control in a way that it hasn't been since world war two and at the end of the day greece is at its mercy and it's about the kleptocrats getting their piece of the pie and i'm curious how you think that's going to play out and if germany can have the kind of credibility to be this boss of the eurozone or if you think that it will be this kind of economic prison is nigel for russia's called the e.u. . well again you know let's listen to a german is complaining about a euro bond is against the the treaties and it's against their constitution the bailouts were against the treaties so you know on that at that angle germany's one hundred percent right and to put all these young worthless bonds in so one package
and make everybody pay for it you know if i was german after them spending why or how many trillions to to bring east germany back in and i'd have reservations too but again lauren it's a much bigger issue let's look what's going on in china their economy is contract just as germany's composite purchasing managers index hit a three year low the same thing in china just this week then you look at india oh india that was booming like crazy well their economy just grew a little over five percent down from nine percent a year ago look at brazil now the government is saying this central bank that this is going to be the first time since zero nine that the brazilian economy declines put it all together europe is china's biggest importer of product u.s. number two we're in a slump if the united states and europe don't buy china india indonesia
vietnam on vietnam they don't make if they're not making brazil australia chill way bolivia all the natural resource countries they don't export this is a global crisis that's remember we're talking about greece today what's greece two percent of the eurozone and now tomorrow it's going to be spain next week it's going to be italy a couple of weeks later the usa go back to last august remember they downgraded the debt here yeah absolutely. and we're coming up to another debt ceiling debate so you're going to. if cascading effect if it's not greece it's just going to be someone bigger tomorrow to steal the headlines with this same problem on top of that we have this global slowdown that you're talking about plenty of bad news to be worried about i mean a in terms of the euro zone spain on monday will request formally its bailout now there's discussion again of directly bailing out the banks so that it doesn't go
through spain so that spanish borrowing costs don't become unsustainable so it's just one thing after another kicking the can down the road to use a total cliche but but it does summarize what's happening so what is someone to do to protect themselves from an investment standpoint i know you're still bullish on gold. you know again i don't give investment advice i keep buying gold friend of mine has a great strategy he buys gold every month gold and silver he buys a little every month that equals out why would anybody get into the dollar what's so great about the dollars i look at it as i say you know getting out of the euro into the dollar is like jumping out of the lusitania to save take save board boards on the titanic no this thing is going down it's a global crisis look at the numbers again you go through this week's data it whether it's housing whether it's employment you name the numbers they're terrible there's no way out and they gave it their best shot you know the numbers what did
they dump in the say that that number is like why twenty something trillion since two thousand and eight and the best they've been able to do is is to make it not a lot worse there's no way out is i keep saying we're talking about the banking crisis we're talking about europe we're talking about you know composite purchasing managers index let's talk about what's going on with the people remember them you know the twenty five percent in spain that don't have any work the fifty percent unemployment rate among the youth to twenty three percent unemployment rate in greece the over ten percent unemployment rate in. only you're going to see social unrest at levels we have never seen in our lifetime and to that note something like that of greece or or something like that that could bring the kind of social unrest that we haven't seen yet i know you think we could see social unrest in the u.s.
to one quick note on gold because you mentioned last august with the debt ceiling debate and a downgrade also last august we saw gold hitting some record numbers and trading at some record prices i'm curious if you think as we've seen gold come back down to the level that it was trading at about this time last year do you think we'll see it rise as we did last summer into fall and maybe then hit that two thousand dollar an ounce mark it could very well here's why i don't believe this is a gold bubble that's burst i began buying gold in one nine hundred seventy eight before you were born and there lay. the it was a different world back then china was behind the bamboo curtain russia was doing everything east of berlin was behind the iron curtain there was no global trade it was only the united states basically buying gold now you have the whole world boy gold you had bank runs in your row who in their right mind would be holding on to paper as i see it so this is not a bubble it's very different you have an entire world that's worried about the
finances of what's going on so i pulled by the way the summer is a very important so i'm as a trend forecaster because people are in a vacation state of mind and they missed the nuances of what's going on and i remember one summer when gold skyrocketed back in the late seventy's we could have that kind of scenario again because this thing is unfolding and let's face it they don't have the answers they don't know what to do because if they did they would have done it a long time ago so they can fix it and i believe gold prices are going to continue to escalate. and i'm of the camp that says two thousand and above all right well when we come back we'll leave our audience with that prediction we do want to talk a little bit about the people that are trying to be elected to protect and maybe in your view to fix the problems that you say can't be fixed i want to talk politics
when we get back so we'll have more with gerald celente founder of trans research institute and publisher of the trends journal in just a minute and still ahead you responded now all answer check out of your comment caught my eye this week and if you are feedback you won't want to miss it but first here closing market numbers. download the official publication so choose your language stream quality and enjoy your favorite. t.v. is not required to watch on t.v.
all you need is your mobile device watch our t.v. any time and. 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 realize that everything you thought you knew you don't know i'm tom parker was a big. thank you. welcome back before the break we were talking about europe let's talk about responses to europe from u.s. presidential candidates or their proxies mitt romney's economic adviser recently
wrote an op ed in a german newspaper applauding germany's austerity measures advising germany not to bail out greece and on the other side larry summers who worked for the obama administration was one of obama's advisors in that his presidency early on in response are not exactly in response but in similar timing in the washington post wrote his own op ed proposing of course the opposite a bailout and massive spending plan for europe so is this at the end of the day just a political election year strategy disguised as economic analysis and economic advice and what does that do for the presidential hopefuls we're going to talk about it also while we're on them we know that mitt romney is a little weirder we know that maybe americans have a hard time relating to him for evidence just look at his saturday night live
version of his sons let's watch that. well we connect with the younger voters are over thirty six war median age is thirty five we like the same things as young people such as sport. orders yours like you. whether or not they're just like you america you can decide but there has been an argument that when it comes to candidates on either side of the aisle they are just like each other and that at the end of the day they're both bought by corporate interests but my question for our guest is mitt romney has got a lot more wall street cash this time around so would we have a different kind of presidency with mitt romney versus an obama second term so gerald celente is going to weigh and he is transformed caster extraordinary and gerald let's talk politics because this is more your forte than mine so i want to
know to start off with these op eds on both sides democrats and republicans you know at the end of the day is this just politics because if europe tanks that's bad for obama good for romney if you're a prevails that is good for obama could be bad for romney is that behind these. well you know you know the american people could care less about any presidential candidate blaming the problems that home on europe they're minute it's not europe is much bigger than that as i said and i love it every time you know why why does anybody listen to larry summers you look back at his track record when he was running you know the economic division when he was with the obama administration and to virtually everything he said has not come to pass all his policies of failed but excuse me every time i say larry summers i have to put brilliant either before during or after you say his name because after all that's what the press the toots call him the brilliant larry summers as for romney talking about was staring
measures and telling the germans this brilliant mittens great shot at a was that if the u.s. scary he measures now not to high inflation the u.s. scary measures imposed upon the germans following the high inflation that brought in head or brilliant strategy and probably very apropos for romney so no this is just a lot of political job and i would for the record i'm a political atheist i don't believe in anybody's political gods and to me it's a two headed one party system who ever wins. we lose ok and i know that you are a political atheist and you've said that many times before that this is a two headed whatever you just that much but i too added monster with one body or something not a fact but along those lines we have seen mitt romney get a lot more wall street cash this time around then then we saw president obama get
last time obama gotten a lot of campaign cash from wall street in two thousand and eight when he was campaigning so my question to you when we see a different president with or are with regards to finance depending on who's elected not at all because look what's happened on the obama on the obama administration since the panic of oh wait you know watered down dodd frank nothing's really changed you know look at the deals that they gave the banks with fixing the you know that mortgage crisis or you remember robo signers you know like a robot did it look at look at what lauren tell me want to head the world on wall street since the obama administration's been all the the justice department has been showing you have people like roger clegg. has seen john cause zein be brought up on charges if the bringing down m.f.
global hate couldn't be because he was a big bundler for obama now it's just a little different again it's all the same yeah i agree obama's been wimpy on wall street but i guess what i'm asking is would it be worth with mitt romney i don't think so i think you'll be just as bad and you know that if it's because you have congress and they're all in it together it's not going to change much what could become much worse how much worse could romney make it than obama in terms of helping out his wall street bodies is he going to give them more money yet just like obama would if we have another financial crisis you'll see the fed dump more dough into it so i don't think it will be much of a difference and you mentioned congress i have to ask you because. tween the last time i spoke with you and now we've seen jamie die men on the hill twice and if you want to get have any kind of evidence that would make you feel like no one has a political will to go after wall street just watch politicians pretty much like lining up to praise jamie diamond so i'm just wondering if you have any thoughts
there about if we're ever going to see any justice when you watch the kind of political theater we saw there know the word justice is being misspelled every american that said any minor infraction knows it's j u.s.t. us just us oh now they've been rolling out that guy lloyd of do we god's word blankfein and i saw that morning joe guys suck up to say how wonderful lee was oh yeah they're just great love the bankers oh yeah and so no it's all one club that's what i'm trying to say it's like a it's like aleck thing it's like electing the president of the country club in two thousand and twelve really build swimming pools or will we expand the tennis courts . i think they will probably in judging the spending habits of washington and wall street want to do both i appreciate you being on this show gerald's a level weapon everyone and thanks again that's gerald celente founder in terms of
trends research institute and publisher of the trends journal have a great weekend you you thank. yes. all right it's friday so let's wrap up with your feedback let's take it from wednesday jim rickards was on the show he was talking about pretty much everything operation twist the fed gold fort knox jamie diamond europe and who he calls the institutionalized a rent seekers who have attached themselves like parasites to democrats and to the republican party respectively take a listen around secret someone who figures out a way to manipulate the system to
a shark well for themselves but they get very little barker give nothing back so they actually destroy well for society. so he identified public sector unions as the rent seekers for democrats and wall street as the rent seekers for republicans original prisoner x. said on you tube if people believe what almost all that is all economists left right and in between understand that wages have either stagnated or decreased for the past thirty years then how is it that union workers are making too much money and besides unions only account for eleven percent of the total workforce in the country and let's get it straight trade unions and government unions are not the same thing trade unions contain competitive entities government unions have no competition internally different not the same well that touches on an important point that i want to make sure people are clear on when they think of this workers interview because workers was talking specifically about public sector unions and in two thousand and eleven union public sector workers had a membership rate of thirty seven percent so much greater than the private sector
five times higher in fact which comes in at six point nine percent that are members of unions according to government figures and the connection that he draws to wall street between unions and wall street to clarify is this something that in fact you touch on original prisoner x. which is that both public sector unions and wall street banks thrive on government subsidies and lack of competition so i just wanted to make sure that was all clear and on that note balderdash one wrote i'd be very interested to hear what the difference in the amounts of money that public sector unions are taking out of the economy compared to wall street not even close to the same ballpark i'll bet well it's hard to know what's being extracted but if you want to look at the top five contributors in public employee unions and finance which is together with insurance and real estate from open secrets which is the center for responsive politics you can see there how they compare so when you're looking at the top five you're looking at not a huge difference in terms of the dollar amounts but what you will see when you get
more into big picture of the lobbying contributions to pacs. it does look from my assessment like wall street spends a lot more but i encourage you to go to open secrets and check it out for yourself because the numbers are all there and yesterday we compared central bankers united in the liquidity attack to wall tron that i guess is a comic book guy or cartoon from some time past we called the defender of inflation john lang wrote to tell us a point of clarification was a force for good thank you we would never want to defame bull tron in that way in our use he is a defender of bad but we we are setting the record straight he was a good guy according to our viewer and now a few notes on the ongoing saga of me and often shannon versus dimitri and loose change here is just one example from this week. capital washington has
the highest lifestyle for the intelligence level because people here are really just out to launch their church but they're not alone. so they get here and you have to hear dimitri i'm here but i want to work at home or does this mean that your intellect is subpar compared to the rest of the country no no third choice or grammar down the middle oh all right we'll leave the audience to decide. well an earlier episode prompted mark maleng to tweet to cover in delta that's dimitri that you need to toughen up lauren eats you our lunch at the end of every show arc thank you for calling it like it is in my opinion dimitri though don't you worry some viewers do have your back remember i asked him to weigh and i ask you guys to weigh in about dmitri intellectual assessment at the end of the show i just sat and. wired said only intelligent people say they are right down the middle so we'll get dimitri that and we will give you our wishes for a wonderful weekend that is our show that's all we have time for thanks so much for
watching and be sure to come back next week and in the meantime you know you can always follow me on twitter at lauren lyster and give us feedback on the show and catch any you missed at youtube dot com slash capital accounts and you can see it in h.d. on hulu at hulu dot com slash capital dash account from everyone here thanks for watching have a great.