tv Keiser Report RT November 19, 2013 4:30pm-5:01pm EST
as with the market but honey you're not safe there so you run to the fed to the safety of the printing press but there's something on the streets of comix schiller now has taken the l.b.s. i wonder to myself burnt down the field disco the bliss of barristers because the money that they've totally printed it does so books to ruin our low. blows of printers. i was a new alert animation scripts scare me a little bit. there is breaking news tonight and they are continuing to follow the breaking news. alexander's family cry tears of the war you and your great thing rather than. the average brit dork at the core of wall around a line is
a story many sort of movie is playing out in real life. there i marinate this is boom bust and here are some of the stories we're tracking for you today. first up it was a historic day on wall street with the dow topping sixteen thousand thousand on monday we'll tell you why and what caused the run coming right up and the revolving door of washington to wall street takes another spend this time it's timothy geitner in the turnstile and finally we have the one the only american investor author and bow tie afficionado jim rogers alive on today's show you won't want to miss a moment and it all starts right now. kicking
off the headlines this afternoon a record breaking day on wall street monday now the dow jones industrial average top sixteen thousand points for the first time ever while the s. and p. five hundred briefly surpassed eighteen hundred the nasdaq was also on the brink of a milestone the tech heavy index was nearing four thousand levels not seen since september of two thousand the dow is up more than twenty percent so far this year while the s. and p. also climbed more than twenty five percent in two thousand and thirteen now experts
say that the fed's it stimulative monetary policy is behind this year's bull market u.s. investors took their cue on monday morning from the overseas markets in asia stocks rallied after the chinese government announced a broader outlook for economic reform which included opening the financial sector relaxing restrictions on investment and improvements to the country's i.p.o. system they even saw a dramatic increase on monday as well hitting six hundred seventy five dollars per coin by one pm now these are record numbers for the online currency but however high it goes from here is anybody's guess. elsewhere the former u.s. treasury secretary timothy geithner announced he will join private equity firm warburg pincus as president and managing director now geithner who stepped down as treasury secretary in january will join the new york based firm in march the firm said in a statement quote gov will work closely with warburg pincus is top executives on
overall firm strategy and management investing and portfolio management organizational and funding structure and investor relations geitner played a central role in the government's response to the two thousand and eight financial crisis before becoming treasury secretary of two thousand and nine prior to that he led the federal reserve bank of new york for more than five years. and finally the world's largest futures exchange the c.m.e. group said that its clearing service for energy and other swaps was hacked back in july of this year sparking a federal criminal investigation now certain customers information relating to the chicago mercantile exchange is where port service that was compromised now clear port that handles contracts mainly tied to energy however there is no evidence that trades on the mercs electronics system were adversely impacted or that any other clearance services were disrupted where port handles nearly half a million contracts million not billion half a million contracts
a day well there you have it we'll be tracking these stories and keeping you posted on all the latest. in the past few years the demand for corn and soybeans paired with historic droughts and bad weather drove crop prices to new highs and no surprise farmland values they rose rapidly with them however this year due to expectations for a record corn crop. is this a fall in nearly forty percent and surveys from three of the federal reserve bank show expectations of an easing of farm land values for more on agriculture commodities and the overall markets we turn to jim rogers investor and author of the book street smarts jim thank you so much for joining us today. delighted to be here and now you're very bullish right now on agriculture what are you seeing in
the markets today that lead you to this position. and the world has consumed more than its produce for the last decade which means of course that inventories are near historic lows where we have low inventories which is bad but then worse than that and we run out of farmers the average age of farmers in america is fifty eight in japan and sixty six in canada see oldest in recorded history i could go and no young people are going into agriculture there and more people in america study public relations than study agriculture so we have low inventories we're running out of farmers the world's facing a crisis and it sounds like america just doesn't need that many public relations experts from what you're saying. a lot of on in mind i don't know if you know we'll find out now specifically what commodities are you long today i understand that you feel very strongly about sugar can you explain why why sugar well below.
me this is going to go up. one simple for one simple fact is that sugar is down seventy five percent from its all time i. don't know if you know many things that are down seventy five percent from their high by the way the high was in one thousand nine hundred seventy four that means that sugar is down seventy five percent over the last thirty seven years i suspect it's a good buy may not have been could go of course but because of that production is going down consumption continues to go up in asia as they get richer all over the world as they get richer and richer they like sweets everybody likes sweets now what should investors watch for today in your opinion. in what the main thing you need to watch was what's happening with central banks because for the first time in recorded history we have all major central banks and all governments around the world printing huge amounts of money this is never happened in world history and so the world is floating on an artificial ocean an artificial
lake of lots of lots of printed money now while it's going on everybody is very happy we're all having a wonderful time at least people are getting it up and their friends but they're and when that lake starts drying up you better be very worried and very careful because it's going to dry up and a lot of us are going to dry up to now i definitely want to get to the fed in a little while here and i'm going to going to talk to you about that but first the price of gold that's been down recently and it's been hovering below thirteen hundred dollars would you or are you buying gold at these prices. no no i would not buy gold there and i think there's going to be a better chance to buy gold later i own gold i'm not selling i have not sold and am not selling any of my goat i have had some of my goat but no no i still won't go but they'll be a better chance i think they'll be a better chance to buy the indians who are the largest buyers of goa have been the largest buyers of gold in the world indian politicians are doing their best to stop
indians from buying gold they've been fairly successful in the last few months but arun worse than that the indians are now trying to make the inner politicians are now trying to make the indian sell their gold many of the indian temples over the past few centuries have built up huge stockpiles of gold now the politicians want them to sell it if those indian temples start selling gold who knows how low will go so i'm not buying i'm watching now jim we have james recurrence he was on the show last week and he had some interesting things to say about gold specifically the implementation of the gold standard now i want to play this clip for you check this out. countries went back to the gold standard after world war one they committed a major blunder particularly anglin winston churchill a chance for the exchequer of the time they were back at the old price which meant you had to reduce the money supply that contributed to the great depression so that . now jim do you think china gold standard two point zero is
a realistic alternative to our current system. people have tried to go stand a minute it is always in been abused by politicians they cheat the public they start cutting back on their band they goes to my work for a while but ever nothing is ever lasted forever so we can try the gold standard won't work it's never worked before for any long period of time it won't work again the only system that will work is that people have a free choice in money which is what people have had most of the time throughout the last few thousand years but sure we may try the gold standard because we will be desperate within the next decade as they see it really bad are people going to be desperate to try something else maybe re bitcoin's i don't know what i love that leads me to my next question perfect i want to ask you do you see these decentralized kind of crypto currencies like big as a realistic alternative to our current monetary system. i'm sorry i don't
understand bitcoin i've never really tried to figure it out or get into it everybody every time somebody brings it up i just sort of lose interest before it goes very far so i don't know enough about it and many more important things going i mean what happened in china last week is a lot lot lot more important than bitcoins so i don't pay too much attention now speaking of china last week now chinese officials they unveiled a blueprint for economic reforms and in this blueprint now i want to make sure this is right the document stated that markets would play a decisive role in the allocation of resources such as oil gas and water what does this mean for the chinese economy. it means that the chinese or chinese are becoming more and more capitalist it was very interesting they said that the markets will be the final arbiter not the bureaucrats not the government or anything else in america the exactly the opposite the government says when there's a problem we'll decide we'll to do it look at obamacare you know the government
says we will figure out at the solution in china they say no we'll let the free market open market decide much for the child in the system and more open market was with the government dictating everything now yes you have this famous quote and i'm sorry i'm going to kind of misquote you here but it you said that being in the twenty first century you'd want to live in america today you want to live in asia it kind of sounds like you're echoing that now no. beginning of the twentieth century you don't have an american identity of the twenty first twenty four twenty first century one should live in a yeah move to asia i live in asia but europe is big because i trying to prepare them for what i see as the twenty first century do you see singapore where you happen to live and i have a fondness for as well i have having lived there myself what do you think of singapore relative to the rest of the western world. well so your voice not through the western world was about his age and as you say yeah it's certainly
a. very developed country it's it's an astonishing success story over the past forty years you know everything works has got great health care great education i mean i'm a stream a happy living in singapore my kids love it my wife loves it we're keen on singapore now jim we have to take a quick break but don't go anywhere because coming right up we're going to have jim rogers sticking around with us and also when you come back w w j r d what would jim rogers do we'll follow up with the legendary investor and get his take on what he'd do with put in charge of the fed who should be pretty exciting also foreclosures are up from september in some cities one in every three hundred homes received a foreclosure filing last month is yours on the list rachel carson is not discussing today's big deal but as we had to break here's a quick look at some of today's closing numbers stick around.
and we're back with more now from jim rogers now we've been talking about the modern day is and not for long but the governor's mansion wouldn't be complete without a little rogers insight into the fed which we touched on before but we're going to head up again now jim you're critical of the federal reserve and what they're doing today with quantitative easing what alternatives would you suggest to the u.s. in order to get us out of this precarious economic position the u.s. has found itself in today. it's pretty simple the way the world has worked for
a few thousand years is when people get into trouble they fail competent people come along reorganize the assets to start over in america and the west what they said was no no we're going to let incompetent people take over the assets from the competent people and then let them compete with the competent people with their assets this is not going to the japanese tried this in the early ninety's the japanese had two decades to lawler's decades it's not going to work in scandinavia in the early ninety's they let people go bankrupt they had a horrible two or three years but since then they've grown dramatically over the past fifteen or twenty years the way the system works is when you fail you fail and you start over in america we don't do that anymore and we're kicking the can down the road is the way it's referred to now and when the kid goes over the side we're all going to go with it so basically what you're saying is that america hasn't taken its medicine yet and because of that we're really going to get sick you're
exactly right we're just making the system of the situation worse the debt is going higher and higher and higher the money printing is going higher and higher and higher we've had fifty or sixty years of excess in america when you've got to pay the price someday whether you like it or not and the longer you delay the day of reckoning the worse the day of reckoning is going to be this is not going to be fun there and i'm not happy about it i wish you weren't happy about it but i wish the federal reserve n.y.c. i wish washington wasn't happy about it i mean i don't think many are and you've been quoted as saying that janet yellen is quote locked up for the establishment now jim jenny ellen she called in sick your print charge of the federal reserve for the next year what would you do differently. i would abolish the federal reserve and then i would resign. how ok that's a very we got the whole answer how would you go about doing that implementing. abolition was pretty simple just to close it down the world has gotten along quite
famously well without central banks for most of world history america has had three central banks in our history the first two disappeared this was going to disappear too because they keep taking on huge amounts of debt they keep leveraging up the balance sheet they keep making mistake after mistake of printing money this is going to do in the self destruct before it's over unless the politicians say you know this thing is a mistake it's out of control let's get rid of it it's more likely though that it will self-destruct like you said you don't see that happening you see destruction and as i said what i would do is just abolish close it down now before we have a disaster we already have a disaster i would close it down now now down errant worlds with their own countries without central banks can have problems suit don't get me wrong just that this is going to make our problems worse in the end we'd be better off with no central bank than this even with the problems of no central bank ok now the dow
that exceeded sixteen thousand monday and these are historic levels are we headed for another crash and if so what's going to trigger it there's a lot of factors what do you think. we're certainly going to have a crash someday this is going on all this is artificial sea of liquidity which i mentioned earlier venture we're going to we've always had crashes throughout history every country in the world has periodic crashes don't think they've disappeared i don't know i don't have a clue what is going to happen you should watch r t v they can tell you when the trash crash is coming i cannot. you know predictions. as long as they keep printing right now we have all these people printing so much money so i cannot see of crash anytime soon i can see corrections i can see the market going down a bit and for a while but with all the money printing everywhere in the world and there are no constraints on congress now congress is free to spend as much money as it wants to
remove the debt ceiling they're afraid to do anything about it so with all the money printing and all the spending everywhere in the world this could go on for a while can we print forever is that just not turn up potentially just printing forever. that's what they're going to try to do an errand when they eventually say we're going to cut back now the markets are going to go down fairly substantial it's going to scare the bureaucrats because you know these people are just government employees there be scared to death and so they're going to start printing again until until finally the market just says we're not going to take this garbage paper anymore we don't like this game anymore we're going to go to do it and then the market is going to force these guys to stop and that's going to be called a crisis that's going to be called at least the same a crisis but more likely a crisis now i want to revisit what we were talking about before the break on china now china they have some liquidity issues as well right now i want to ask you what do you see is the future for economic growth in china. in my view china's
going to be the most important country in the twenty first century whatever and that does not mean there won't be periodic problems in china in the merican in one thousand situations we were growing to power and glory we had fifteen depressions with the deal we had a horrible civil war there were no there was very little rule of law all you know you could buy and sell congress or you can still buy and sell congressmen in america were the one thousand nine hundred sure they were cheap i mean there were periodic massacres in the streets america was a mess but still we became the most successful country in the twentieth century china have plenty of problems i don't know what or when or why or how but i know they're coming that's the way the world works now isn't the chinese economy intrinsically just tied to the health of the american economy. well of course americans the largest economy in the world europe as a whole is an even bigger economy japan is bigger so when you put america europe and japan together of course if they have problems china is going to have probably
china is one tenth of one tenth the size of those economies so no matter what how good a job they do they're going to be affected by what's happening in the rest of the world they can't help it. hedge in your new book out earlier this year street smart it's your sixth book what was your motivation for writing this one. my publisher kept saying this is what you pull it all together you have these various books why don't you poor together because you came from the backwoods about alabama to live in singapore with two rows of girls as big her big mad there's got to be a lot that happened in the meantime why don't you tell it and the lessons that you've learned throw in the lessons that i've learned the mistakes i've made. maybe it's a good story and to my astonishment there are people keep telling me it's my best book it's i mean it's a pretty good story. benefit here unique to say the thank you jim thank you so much for your time we really appreciate you coming on the show and we hope to have you back very soon that was prolific investor and author jim rogers time now for
today's big deal. big deal time now rachael perseus is joining me the prolific our t.v. producer to talk about the closures now i want to start off by giving some stats you're now going to realty track one in every nine hundred seventy eight homes received a foreclosure filing last month the good news is this is down twenty percent from last year however the numbers don't look as pretty when you single out certain cities now check this out in columbus ohio one in every three hundred ninety seven homes received a foreclosure filing in las vegas that area one in every three hundred eighty four homes receive defiling and in the miami area one in every every one in every two
hundred sixty four homes they also received found rachel it's been five years since the collapse how much longer will high rates of foreclosure continue to go on like this one of two minds on this one and the first is that if you look at the most recent report from the mortgage bankers association delinquency rates are. actually down there the lowest they've ever been in five years they're at five point six five percent right now so that's kind of a good indication of what people call shadow inventory that will soon become foreclosed on kind of those shadows looming in the distance that will soon be empty so that's one that's kind of a positive sign on the other side we're seeing that servicers the people who are actually deciding whether people stay in their homes or not they act as the middleman between the investors and homeowners still don't have their incentives aligned with either homeowners or investors because these servicers actually get the most profit through the economy of scale so even though they benefit the most from a foreclosure investors and homeowners are both better off if for instance they decide
to have a principal reduction or some other kind of change in the loan if they restructure the loan both of those other parties are better off the issue is that they're not talking directly to one another so. if a is trying to realign service or incentive but it's really complicated stuff and they're certainly having a difficult time of it right and i'm sure very few people know that it's the service or this is where the problems are really kind of right and i mean to you in a sense i would feel bad for the services because they were never designed to be organizations that were actually consumer based consumer faced so they're going to having a tough time of it too they were used to stuffing envelopes with payments and now they're fielding phone calls and looking at documents all the time that in many cases they're not even trained to look at right now so this seems like kind of a basic question but i really want to know your opinion what are some of the effects that foreclosures have on communities outside of the stuff that we already know you know never good for a community look at detroit but other than the basics right so the good thing is that those foreclosure is only bad for the homeowner and for the investor who has
now lost out on the opportunity to get a loan for a longer period of time right getting less payment over time is still better than getting no payment for instance for neighbors of that foreclosed property they're in really tough shape because their property value also goes down making it more likely that they might get foreclosed on it also less since that. tax base for an entire community because now you have people who aren't living in their homes anymore and therefore aren't paying taxes so there are definitely huge issues going on for a lot of people and you know if you looked at some of the states you were talking about florida and nevada those are san states right along with arizona and california they were hit hardest by the financial crisis and in particular by this housing crisis and even though prices are rising in those states even more but a lot of people are saying is the rise of prices is just going to create another bubble and worry this is actually becoming cyclical in a very alarming way right now the mortgage forgiveness debt relief yes we're going to give it to you that expires at the end of this year what does this mean for
underwater homeowners how do they do yeah this is alarming for underwater homeowners who are looking for a principal reduction because generally without this act in place what happens is that any sort of debt forgiveness is taxed as income without this act in place so that means if for instance on a short sale in the in a non recourse state that means that any sort of money that the bank is let's say forgiving for you that would be principal reduction anything like that that gets taxed as income if this act is in the right exactly so even if you get say a principal reduction on your home let's say one hundred thousand dollars if you're taxed on that that's going to be a big thank you so much you've got to come back on to talk more we got to go now that's all for now but you can see all segments featured in today's show on you tube or you tube dot com slash boom bust our t. we love hearing from you so check out our facebook page facebook dot com slash boom bust archie from all of us here thanks for watching and we'll see you next.
the breaking news. alexander's family cry tears of joy at great things rather than just their. regard in a court of law their own. is a story made sort of movie is playing out in real life. the new a little more than a lot of these new policies and it's a beautiful. little. pleasure to have you with us here on our team today on roller sutured.
coming up on our t.v. boycotting the t.p. that's what protesters in salt lake city and washington d.c. are saying about the transpacific partnership a trade deal that shrouded in secrecy we'll tell you more about what's in this global pact ahead and congress is getting bitten by the big coins today the senate learned all about this virtual currency and how it could change the landscape of digital finance the lawmakers want to know could this digital cash be used for illegal activities and beaten down in san francisco one man was detained held down and beaten by police officers all for illegally riding a bicycle now he's accusing police of using excessive force we'll tell you his story later in the show.