tv [untitled] December 9, 2013 8:30pm-9:01pm EST
lopez follow me on twitter at meghan underscore lopez and for now have a great night. wealthy british style. time right. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on our.
planet there i marinate and this is boom bust and here are some of the stories we're tracking for you today. first up j.p. morgan. nepotism especially in china now that's according to new documents on earth and published in the new york times we're going to tell you all about it coming right up and one of the sexiest metals known to man is behind some of the most criminal behavior in the world has ever seen bold it's a complex thing and the best selling author matthew heart knows a thing or two about it he joins me to discuss his new book aptly titled goals and finally in today's big deal rachel courteous and i talk about the state battle for boeing and i'm not talking about our trade not you won't want to miss it and it all starts right now.
our lead story today j.p. morgan the bank is dominating headlines yet again no not this time for paying exorbitant fines to the federal government or for jamie diamond's after our sit downs with eric holder but for nepotism nepotism now over the past couple months the new york times has run a series of stories exposing j.p. morgan's practice of hiring the children of china's crim in order to secure business from the chinese government now the exercise was something of a quote open secret at the bank and violates several american laws federal authorities have obtained confidential documents that shed new light on the bank's
decision to hire the children of china's ruling elite and the documents are actually pretty funny true story now the new york times writes the documents include spreadsheets that lists the bank's track record for converting hires into business deals and offer the most detailed account yet of j.p. morgan's sons and daughters hiring program was actually called sons and daughters are in program now one of the more entertaining exchanges that's detailed it comes from the records and it comes from one of the hong kong bankers of j.p. morgan the employee says quote the candidates napping habits will be an eye opening experience for our new york colleagues. wow ok so apparently napping on the job is not a problem if you're the kid of a big shot chinese executive that j.p. morgan wants to do business with noted every move you can right along now or tuesday is when u.s. regulators will vote on the vocal rule making good on their promise to reign and on
wall street's riskier gambles the new measure bans bang. from trading their own for their own gain it's an activity known as prop trading and something that regulators deemed too risky for banks backed by government funds but as the boat nears lawyers and lobbyists are gearing up for another round of attacks in an effort to block the ruling lobbyists but it is business trade groups financial regulators and even the u.s. chamber of commerce have issued threats to challenge the vocal role in court now the groups are hinting that they may use litigation to weaken the rule the active date of the ruling however will be delayed until july two thousand and fifteen a move that likely postponed any little litigation for several months while lawyers from the big banks study the laws nuances well there you have it we'll be tracking these stories and keeping you posted on all the latest.
polls now for centuries it has fuelled the passion of humankind like no other substance on the planet and the world's hunger for gold is as strong today as it's ever been and the depths people are willing to go both literally and figuratively that figure that billy in the name of securing the precious metal are extreme to say the very least now here to discuss the duct of metal is matthew hart best selling author of diamond and his latest book is very appropriately titled gold now matthew thank you for joining us and i want to start off by asking you why are people buying so much gold today. oh well this started off really where we're at the end of a thirteen dear thirteen year gold binge it started in two thousand when they when the price of gold was about two hundred eighty dollars an ounce and the a ten year
bull run began the afterburners really went on under the price in two thousand and eight when lehman brothers collapsed you know analysts call gold the emotion of metal and the emotion at the time seems to have been panic gold love this panic it dines on panic it fastens on panic and the afterburners as i say kicked on out of the gold price in less than three years it's shot from eight hundred dollars an ounce to almost nine hundred dollars an ounce as investment money poured into gold from other shakier assets and what assets didn't look shakier so that's what brought the the high gold price and that at the same time stimulated a world a global gold rush the likes of which the world has never seen i mean you think of a gold rush you think of california and in ten years in the california gold rush they produced eight hundred fifty tons of bullion well we produce today eight hundred fifty tons of billion in four months and the world trades twenty trillion
dollars worth of bullion every year as much bullion is traded on the london bullion market in a three month period as has been mined in all of history so that's the kind of gold seen now while those numbers are pretty staggering now gold it has some functional purposes but it's limited in comparison to something like steel so my question to you is why is gold so appealing relative to other commodities. you know people have been scratching their heads over this for years why does gold have any value since its utilitarian purposes are or are so few i mean it's used in computer circuits they coat the visors of astronauts visors with thin thin. film of gold because it's because it's very reflective but generally speaking the big the big surge in the price of gold has been driven by investment but where does
that where is a comfort why do we value gold if you look back the best answer you can really come up with like the really short answer is we value gold because we always have and we never knew how long we'd been valuing gold how far back that that passion for this metal went until nine hundred seventy two when a backhoe operator in the town of barnett on the black sea coast in bulgaria he was working on the foundation for an apartment building accidentally unearthed a neolithic tomb so they sent for the archaeologists they show up open the tomb and there inside was a treasure of gold artifacts six thousand years old so neolithic people six thousand years ago were making these absolutely beautiful little ornaments little antelopes with curled arms and tiny little breastplates all kinds of beautiful things with no utilitarian value at all so what attracted them
to gold why gold instead of something else we can only guess because they didn't leave a written written record but it's not hard to guess gold was shiny bright it didn't corrode it lasted it didn't rust in a harsh world it was beautiful and since it was soft they could shape it into lovely things so that's the first stage of gold that's the first stage of the cards that i want to heritage so i don't mean to interrupt you but i wanted to i have so many questions i just love your book and i've been leafing it off all my. long the night before but you cover a lot of history in your book and in one of my favorite passages you write that quote gold reflects the society that uses it i just love the question how so and can you expand upon this you started to and i just wanted to get that in before you continue. well it does i mean we live in a very very commercial i mean our adventure stories are almost business stories so so gold is kind of a business story today but if you look back in history let's go back to the the
discovery of the of the new world since since you raised the idea the idea of history and gold reflecting the society uses it the in fourteen hundred europe is running out of gold they need gold the mints are running out of gold nations need gold they need gold to pay their armies to run their states so they go looking for gold and the spanish head west across the atlantic ocean now the cover story for that is that they're looking for so to bring into the heavenly kingdom they're looking for souls to convert to christianity school and in this journal christopher columbus mentions god twenty six times but he mentions the gold one hundred sixty so what were they really looking for it was a gold rush they were let's take the disk the conquest of the inca the spanish merchant of the n.d.s. just to one hundred sixty men and hundred sixty eight men marching to the end these and confront this colossal empire the empire and since the spanish had superior
weapons they were able to cut down and twice the ink at which was the name of the ruler as well as the civilization entice the inca to a meeting and in a confined space fire can an atom and cut them down they just had sort of like bronze armor what the spaniards then did was basically grind up that and tire civilization take all its beautiful ornaments milked them down into gold bars stamp them with the spanish insignia and send them off to europe and there and they basically converted that civilization into money unbelievable and now i want to move on to south africa you just scribe some of the south african ghosts miners and your neighbor who live in these mine mine into. animals and they rob them and you write quote one thing penetrate a mind they stand stay down there for months deprived of sunlight their skin turns gray the wives and prostitutes who live with them turn gray van habit an
underground metropolis that in some gold fields can extend for forty miles i got to ask you how did these guys miners get down there in the first place. well first of all these mines or like underground cities i mean the mine that i visited punning mine is two and a half miles deep so think of the whole of kind of like the upper west side of manhattan stood up on it since that's the size of the gold mine three hundred miles of tunnels ten times the height of the empire state building you get on the cell of eight or i got on an elevator with one hundred twenty miners they drew up you down the chute at forty six feet a second a mile and a half you go to another elevator drop down another mile by the time you walk out it's you're in an environment that you guys will be stepping into a pizza oven it's completely sweltering down there very very hot now as well as legitimate miners there's this whole population of ghost miners they bribe the
security and use extortion extortion that means they compel security with forced very very well armed and very ruthless criminal gangs known as syndicates and so the africa control the theft of gold from gold mines very wide scale theft it's incredible once they once they infiltrate those goes miners and they have to leave them down for a long time because it's too much work to get them in and mr hard that was the fastest seven minute interview i've ever had i hope to have you back on very same because i have many more questions that i'd love to get to but thank you for your time that was not the heart author of the new book gold the race for the world's most seductive metal ok thanks a lot. coming up is the u.s. on the right path towards a sustainable economic recovery not so according to tom hartman i talked to tom about his new book the crash of twenty sixteen and why he thinks the u.s. is on course for an economic implosion plus in today's big deal rachel chris and i
discuss which states are. duking it out not doesn't do it out for the title that's what you win when you went out on. and duking it out for best airplane producing territory in the nation and as we had to break here's a quick look at your numbers that space and it's all coming up. i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t.
a gain of over two hundred thousand jobs and while the unemployment rate fell to seven percent a low not seen since two thousand and eight things seem good but before you break out the champagne everything might not be as rosy as it seems tom hartman host of the big picture and author of the crash of twenty sixteen believes the u.s. is more vulnerable to a crash than ever before he says that's because the pillars of democracy which once supported a booming middle class have been corrupted now earlier i spoke with tom and i asked him why he thinks the pillars are more corrupt this time around and here's what he had to say. there's really there's a political piece to it and economic piece the political piece is that the supreme court has emphatically i mean they've been gradually saying this since the eighteenth sixty's but just of phatic least in citizens united. turned our or constitutionally. our house original ocracy over to basically fed cats and corporations and so we've lost you know basically
a functioning political system the economic and of it is you know all these these banks not just banks basically every sector of america american business is now in the hands of four or five relatively small companies or very large companies but a small number of companies ecosystems that are broad diverse are strong and healthy you know forests and jungles withstand droughts for example but if you have a field that's all one type of wheat all the same d.n.a. it doesn't withstand drought so we have now both a political ecosystem which has been corrupted badly and we have an economic ecosystem which has been corrupted badly and now in the third thing was different from the one nine hundred thirty s. is that in the one nine hundred thirty s. we had manufacturing capability we could build things we could build our way out of things which is exactly what we did we have now exported almost all of that manufacture a large portion of it we're the world's largest weapons manufacturer but that's it so kind of when you say you know an ecosystem we're lacking
a diversification if you will now in your books forward you actually credit the authors of the fourth turning me on how and. for providing the central idea for your book the basic crush you want to yes not all of it just one can you briefly explain what this idea is well and their book the fourth turning in their earlier book on generations they've done several of these basically points out that roughly every eighty years i want to speak for them i'll give you kind of my version please take because they're not the only ones who are saying this and. in fact you know this is a theory that goes back well over a hundred years. but basically we we figure stuff out through painful experience and then we kind of keep it going for fifty or sixty years and then we get like really really stupid and we do about twenty or thirty years of really really stupid mistakes and this of crashes and then we figure it out all over again so you add all that up that's eighty years roughly full integrations so the modern example
that for the contemporary example the most recent example is in one nine hundred twenty you had. the election of harding basically two things he had to slogans one was lower taxes top tax rate was ninety one percent he lowered it to twenty five percent nineteen twenty want to since he was elected and his slogan more more business in government less government in business in other words outsource and deregulate and some familiar this these two things which he put into place nine hundred twenty one kicked off the roaring twenty's the bubble of the word twenty's which led to the crash of twenty nine so we learned so we get really stupid there for a period of time we learned from that night from really nine hundred thirty two until the one nine hundred eighty s. and by the time the one nine hundred eighty s. came along sixty years down the road more or less time that came along and the only people who you know like it phil gramm had proposed gramm which bliley right you
know to and glass steagall if you propose that back in the fifty's or the sixty's or even the early seventy's there were still people in congress who remembered the crash and the go on your crazy but instead made you know probably the only guy alive who was in congress with at the time when phil gramm came out with this with robert byrd you know and he was like. wait a minute he had to have their shot shot gravlax beautiful thing and so it's like we forget and then we get stupid again and in that time when we get stupid that's when the predators rush in and steal everything they can and that happens every eighty years and we're currently in a stage of stupid is yes no. now why twenty six to twenty sixteen what makes you so certain about this year well i'm not certain about twenty sixteen i think it could just as easily happen next week what i'm seeing happening right now is the same thing that we saw happen in two thousand and six to two thousand and eight in two thousand and six the i think was the third quarter of two thousand and six there's a thirty some odd percent thirty three thirty four percent drop in housing starts and by coincidence i was doing my radio show at the time and i was reading
a book on the great crash of the twenty's and in one thousand twenty seven there was a thirty four percent drop in housing starts in twenty seven and it started going up the east coast from from florida for us to from from california and then new york housing start you know and this set up the housing crash set up the stock market crash of twenty nine and so i went on the air and i said to people you know i'm get out of the stock market you know and for two years i had people calling me up go ahead crazy you know you got out of the market you know like the market just rows of most of those imports you know are balloons and what and then and then of course it all fell apart in two thousand and eight in my opinion george bush and his maybe not bush i much credit we can credit him with but our intelligence but the people working in the bush administrations saw that fall in housing in two thousand and six the same way i did i mean i read in the financial times it was a secret and they knew this was coming and they did everything they could to make sure it happened the day after the election in november they were unsuccessful
which in part is why president obama became president and we don't have friends over cain. but i'm seen the obama administration doing the same thing and it's not you know evil politicians good politicians it's politicians it's the natural thing nobody wants to have a crash happened while they're president and so between the fed with quantitative easing you know the things and. with the policies that the administration is trying to pursue. you know i think that they're trying to. make this happen in december of two thousand and sixteen so that they don't take political heat for the one difference which makes me a little less optimistic about two thousand and sixteen and more thinking that it's probably going to happen sooner is that in two thousand and seven two thousand and eight george w. bush did not have the entire democratic party trying to bring down the economy right now barack obama's got the entire republican party trying to bring down the economy which means that getting it to twenty sixteen is going to be
a lot harder than getting it two thousand and eight but the bottom line is when you look back to the phrase great depression was never quiet until one nine hundred forty s. right when we when we when people look back at that era they said you know that really was a decade we're going to look back at this and say this wasn't just two thousand and eight this really was a decade now i want to china and then a happy note how do you think the u.s. will crawl out of this twenty sixteen great recession that we're going now if it's what they want to call it or what for quite a lot of analysis and twenty years from now i don't think they did in one thousand two hundred to that one hundred forty whatever it is how will the u.s. find its way out of it the good news is that every economic every really big economic crash has basically will awaken to the people whether it was the crash of twenty nine where there was a crash of one thousand nine hundred six eighty seven which led to the to the progressive revolution that brought us to seventy at the moment recollect the election of the nineteenth amendment women voting whether it was the crash or eight
hundred fifty seven which led to the end of slavery whether it was a pressure seventeen hundred which or seventy seventy rather which led to the crucial united states every one of these crashes has produced a very very positive progressive outcome and there's a whole bunch of those outcomes that are just sitting on the table right now people like elizabeth warren and bernie sanders and and even barack obama back in two thousand and eight when he was campaigning or talking about these things but there hasn't been that the force of political will to make them happen i think that a crack wide history tells the crash of that. that was tom hartman host of the big picture here on our t.v. and author of the crush of twenty sixteen time now for today's big deal. ok rachel curtis as always joining me now to discuss discuss incentives that's
right now a little competition in the marketplace that's a good thing but what about competition between governments that's another thing now governors of more than a dozen u.s. states are trying to court but we. airline manufacturer but how far will the states go missouri governor jay nixon is attempting to push through an annual one hundred fifty million dollars development sweetener for boeing and it includes an agreement among labor organizations to speed completion of boeing societies by working on a twenty four hour schedule twenty four hour schedule and for growing overtime sounds like a fun thing to do in. washington recently the largest corporate tax break in u.s. history conditional on boeing keeping their jet liner production their original ask you are these tax breaks than economic sweeteners are these the only way of attracting business in today's economy the company between all of these states as you said more than a dozen really underlines to me who has the power in this situation right boeing
set a deadline the deadline is tomorrow everyone come at us with your proposals by then and state governments are scurrying to meet this proposal and to have to meet this deadline and have the sweetest possible options for boeing so what it says to me is perhaps it's not the only way to do business but it certainly seems to be the way the business is being done now and all of these companies are very much the ones with the upper hand but is this kind of a race to the bottom i mean like in terms of workers' rights and for the labor well you know that's a i think that's a really important policy question that a lot of policymakers are wrestling with right now even though a lot of people are asking why is it that boat. he's getting these huge tax breaks whereas small businesses don't really get those same options so that's what a lot of opposition is about there are also people saying you know would i rather have a job that pays me less money or not have a job at all boeing is offering a anywhere between around fifty six thousand jobs the promise of twenty billion dollars into their economy that's a lot of money but the question is would it have been a lot more if all these states weren't competing with one another to offer the
sweetest deal now do you think there's any possible way it's prevent this type of competition i i'm having a hard time i mean not unless everyone makes a deal in which they say you know you keep it there and then i won't get in your way when you try and get a different company to come in but it's loose long as one state is violating that deal that they make then it's ever going to work out so you know i think that this is just the way of the world whether it's boeing whether it's an n.f.l. team new look how these are fighting with one another for businesses even if it isn't proven that in the long term it's a good idea for these for the governments themselves doing a disservice they're going to for the taxpayers maybe because there's a difference between you know like the economy and individuals who may or may not be affected by it so or ultimately the states do we. not serving the economy as they're supposed to do so literally depends on the proposals right and we'll have to wait for tomorrow to see who gets picked and i gather that next year we'll find out who gets paid and will be at the bridge
with mikes concert for a no holds barred look at the global financial headlines tune into kaiser report on our. i know c.n.n. m s n b c news have taken some slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's close and for the truth from the mike think. it's because one whole attention and the mainstream media works side by side with joe is actually on we're going to be coming. at all or teen years we have a different approach. because the news of the world just is not this funny i'm not laughing dammit i'm not hi. i'm.
you guys have to the jokes i will handle the stuff that i've got. today on larry king the acting lead to james brolan dinner at the brolin this is a kind of an event because she runs the whole show and james is just is there making sure you go whine i hadn't been married twice before then you could do some tough games i couldn't handle that this or that was my training ground plus i fired a guy on the show once right in front of everybody on purpose and boy did that show sing along so you almost controlling len we think mr problem that's all next on larry king now. welcome to larry king our special guest.