What Really Happened: Michael Rivero (Mike Rivero) Tuesday 2/14/17:
THE HOST Mike Rivero is the host of the What Really Happened radio shows on the Republic Broadcasting Network and webmaster of whatreallyhappened.com, now in its 22nd year. Both the radio show and website enjoy a large and growing global audience. He is a frequent guest on talk-radio and has appeared in television programs such as History Channel’s “America’s Book of Secrets.” Mike Rivero’s background is as eclectic as his radio show and website. Formerly with NASA, Mike transitioned his image processing skills (along with a brief stint as a child actor) into the then-new computer animation field, starting with award winning commercials, then working on films such as “Star Trek”, “The Day After Tomorrow”, and later supervising visual effects on “Brainscan”, “LOST”, and “Hawaii Five-0”. Mike Rivero has taken a sabbatical from film work to focus all his efforts on peace activism. Mike Rivero’s foray into blogging began before the word was even invented, and happened almost by accident when he spotted a suspicious photograph being broadcast on ABC news in 1994 related to the murder of White House Deputy Counsel Vincent Foster.Since that abrupt beginning, What Really Happened, both website and radio show, has expanded to cover diverse topics including the assassinations, the accidental shoot-down of TWA 800, election fraud, health issues, Saddam’s non-existent nuclear weapons, 9-11, the economy, and the ongoing propaganda used to trick the American people into wars of conquest in Afghanistan, Iraq, Yemen, Libya, and other nations. Mike Rivero currently resides in Hawaii with his wife Claire, who is a composer, choir conductor, and creates much of theme music used on the What Really Happened radio show, as well as occasionally participating as a commentator.
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
Liberals are ruining Europe..
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where you gonna run.. where ya gonna hide...no where! because there's no one like you left!
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The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
Peter's brilliantly timed 2006 0:04 trade against the housing market 0:06 inspired the book and the Academy 0:08 award-nominated movie the big short but 0:12 now a decade after Peter first predicted 0:15 the subprime mortgage meltdown 0:18 he's issuing an even more serious 0:20 warning the warning concerns a category 0:24 five hurricane ready to make landfall as 0:28 you're about to discover the united 0:30 states federal government will soon be 0:33 forced into default in fact Peter says 0:37 in his latest bestseller the real crash 0:40 that Armageddon is inevitable so he and 0:43 I have joined forces to deliver an 0:46 important warning to Americans 4 2016 0:48 much of today's content has never been 0:52 released to the American public before 0:54 now including financial proof that the 0:57 federal government is already completely 1:00 insolvent last resort manipulations by 1:04 the Federal Reserve actions just taken 1:07 have now moved the day of reckoning even 1:09 closer the likelihood of a system-wide 1:12 failure over the next 12 months is very 1:16 real now I want to be absolutely clear 1:19 on something right from the top 1:21 nothing can prevent the crisis at hand 1:24 from occurring every emergency fiscal 1:27 measure has already been exhausted and 1:30 policymakers at the highest levels of 1:32 government have begun preparing 1:34 themselves and their families for 1:37 financial Armageddon many of them in 1:40 fact are following the strategies Peter 1:42 outlines in his book the real crash 1:45 there's still time for americans to 1:47 prepare to which is why i'm calling on 1:50 the one man who accurately forecasted 1:53 the 2008 financial crisis peter schiff 1:56 to throw mainstream America a lifeline 2:00 yet again 2:01 Peter's now-famous first book 2:03 crash-proof included very specific 2:06 strategies that any ordinary taxpaying 2:09 American could have used to make 2:11 millions door into that 2:13 thousand eight chaos but the stakes are 2:16 even higher in his latest book the real 2:18 crash now a word of caution before Peter 2:23 and I peel back the layers of the coming 2:25 crisis be ready to feel outraged 2:28 troubled and frankly scared 2:32 imagine a world where the banks have 2:34 frozen your assets and the government 2:36 can provide basic services like police 2:40 and fire rescue 2:41 well you can still avoid becoming 2:44 collateral damage 2:45 Peter's urgent warning to Americans here 2:50 you sent a letter to investors dated 2:52 august 22nd 2006 and it you describe in 2:57 detail a housing bubble on the verge of 2:59 bursting even gave investors a blueprint 3:02 for profiting from such a crisis how it 3:05 wasn't too short the homebuilders you 3:07 said the greatest opportunities would 3:09 line the downward spiral the financial 3:11 sector now needless to say you were 3:14 eerily prophetic but did you understand 3:16 Peter just how right you'd be not only 3:18 understand how right I was going to be 3:20 but I actually expected something much 3:22 worse to happen as a consequence and I 3:25 still expect that because what happened 3:27 in 2008 wasn't the end of the crisis it 3:30 was just the beginning but you know in 3:32 looking back at the prior bubble in the 3:36 stock market at the time I recognize the 3:39 difference between the stock market 3:41 bubble and the real estate bubble 3:42 because in the stock market bubble 3:44 people were speculating with our own 3:46 money in the real estate bubble they 3:48 were speculating with somebody else's 3:50 money it was the banks was the lenders 3:52 and so my blueprint for profit was too 3:56 short the mortgages themselves Wall 3:59 Street had created these packaged 4:01 products of mortgages particularly the 4:03 subprime mortgages which were bundled in 4:05 a way to create the illusion that these 4:08 mortgages were ultimately high credit 4:11 quality in fact many of these subprime 4:13 mortgages were rated triple-a but of 4:16 course some of them were rated much 4:18 lower than that and it was the lower 4:19 tranches that we were recommending 4:22 shorting and in fact that was the first 4:25 letter in a series of three that 4:27 sent out trying to get people interested 4:29 in the hedge fund that we were 4:31 establishing specifically the short 4:33 subprime mortgages and in fact trying to 4:36 find investors for my hedge-fund i 4:38 accepted an invitation from the Western 4:41 Regional Mortgage Bankers Association 4:43 which was a group of three thousand 4:46 mortgage bankers i went there in later 4:48 2006 to talk about the coming collapse 4:51 in the mortgage market and the housing 4:53 bubble and try to find investors for my 4:56 hedge fund and you can see on youtube 4:59 you can see the entire one-hour 5:02 presentation but what you can't see on 5:04 youtube is the workshop that I gave 5:07 subsequent to that speech which was 5:11 specifically on the hedge fund that we 5:13 had created to short subprime mortgages 5:16 and of the people who attended my 5:18 workshop 5:19 maybe they were 50 to 60 of the people 5:21 out of the 3000 that came only one 5:23 investor invested in that hedge fund 5:26 then you know they wrote a book about 5:28 that trade in fact more recently turned 5:30 into a movie the big short but imagine 5:33 3,000 people having the opportunity in 5:36 the mortgage industry too short subprime 5:38 mortgages a year before they collapsed 5:41 and only one individual with the 5:43 foresight to take advantage of it and my 5:45 warnings were specific i didn't just say 5:47 oh we're gonna have a crisis i went into 5:49 every specific detail of what the 5:52 problem was and what was going to happen 5:54 and i have yet to see anybody write an 5:57 explanation of the 2008 financial crisis 6:01 in hindsight that is better and more 6:03 accurate than what i wrote before it 6:05 happened 6:06 Peter how did you see this crisis coming 6:09 a full year but perhaps a little bit 6:11 more than up the president Wall Street 6:13 Congress how did you see that crisis 6:15 coming when no one else could see it 6:17 well I saw a lot earlier than 2006 you 6:20 can go back to the internet and look at 6:22 the extensive writings ah from 2004-2005 6:27 in which i described in every detail the 6:31 housing bubble and how it was being 6:33 inflated and what the source of the 6:36 problem was my I blamed mainly the 6:38 Federal Reserve I blamed alan greenspan 6:40 and they're low interest rates but I 6:42 went into all the problems in the 6:44 appraisal industry into securitisation 6:46 industry i went to the problems with 6:48 fannie mae and freddie mac in fact one 6:50 of the predictions I made back then and 6:52 I repeated that in my original book a 6:54 crash-proof was that both Fannie and 6:56 Freddie would in fact go bankrupt and 6:58 that's exactly what happened what i 7:00 wrote about was that after the housing 7:03 bubble burst and we have this financial 7:04 crisis instead of learning from its 7:06 mistakes and recognizing its role in 7:09 creating the crisis the government would 7:11 double down on those mistakes that we 7:12 would have the easiest monetary policy 7:14 ever that the government would try to 7:16 reflate the housing market and the stock 7:18 market which i also wrote would go down 7:20 with with the housing market 7:22 I didn't know what they were going to 7:23 call it they ended up calling a 7:24 quantitative easing 7:25 I just knew that they were going to do 7:26 it and I knew that the result of that 7:29 would be dramatic that the crash that i 7:32 was writing about in that book and was 7:34 not the 08 crash that was the precursor 7:38 to the crash the real crashes the one 7:40 that's still coming 7:42 it's the one that is the consequence of 7:44 all of the policies that the government 7:46 has pursued ever since the late 7:48 financial crisis that gets us to your 7:50 latest book Peter the real crash in 7:52 which your warning investors that the 7:54 real crash is still yet to come 2008 was 7:58 just the tremor before the earthquake in 8:00 fact you say that Armageddon is 8:02 inevitable 8:03 now the next government shutdown won't 8:05 be theoretical it'll be real home values 8:08 will plummet jobs will disappear credit 8:10 will dry up the dollar will crash in the 8:12 government cannot be depended upon to 8:15 provide basic services like police and 8:17 fire rescue to me it feels just like 8:19 it's 2007 early 2008 all over again I'm 8:23 screaming as loud as I can about this 8:25 looming economic hurricane that's just 8:29 off the coast and nobody can see it 8:31 coming and nobody wants to give me even 8:33 any credit even though I was right 8:35 before the average American is 8:37 ill-prepared for everything I mean that 8:38 is the consequence of all this bad 8:40 monetary policy about the moral hazards 8:43 of the United States government I mean 8:44 Americans are not prepared at all for 8:48 the events that are about to unfold and 8:49 if you go back and you look at the 8:51 footage of the Great Depression you see 8:53 how civil them 8:54 Americans were how how orderly people 8:56 waited in soup lines you know and bread 8:58 lines or whatever I mean that's not 9:00 America today I mean we have a in 9:03 America people who feel entitled and are 9:06 dependent i mean when they first 9:08 introduced welfare in the Great 9:10 Recession and they call that relief 9:12 people were embarrassed to take it 9:14 didn't want to admit it and some people 9:16 actually paid the money back they felt 9:18 so guilty about having gotten money that 9:20 they didn't turn I mean we don't have 9:22 that type of ethic 9:24 ah those type of rugged individuals in 9:27 America today we've got the sauce 9:28 society that thinks that they're older 9:31 living and when this collapse comes I 9:33 mean you that they're going to be 9:35 blaming somebody and you know yeah it's 9:37 gonna be it's gonna be dangerous 9:39 especially in in some of our cities uh 9:42 you know you see how they react to minor 9:45 problems i mean even you see how they 9:47 celebrate you know when a team wins the 9:49 Super Bowl or the World Series you get 9:50 rioting and looting imagine what would 9:52 happen if there was a genuine economic 9:54 crisis imagine what's going to happen in 9:56 our cities if the dollar collapses and 9:59 then we have shortages of goods because 10:00 the government imposes price controls or 10:03 what if there's rolling blackouts 10:04 because the governor's rationing power 10:06 because that's what the government might 10:07 do I mean we had gas lines in the 10:09 nineteen seventies because the 10:11 government didn't allow the market to 10:13 function and they put in price controls 10:15 well you think we're any smarter now 10:17 no I mean we're dumber so we're going to 10:19 repeat those mistakes so imagine what's 10:21 going to happen in this country when 10:23 there are shortages of basic goods 10:25 shortages of food shortage of energy so 10:28 give it to me straight Peter when you 10:30 factor in the nation's entitlement 10:32 programs you and I both know that the 10:34 national debt actually exceeds a hundred 10:36 trillion dollars tell me is America 10:39 already insolvent we're absolutely 10:41 insolvent I mean that's one of the main 10:42 reasons that the Fed kept interest rates 10:44 at zero for so long and even though 10:47 they've nudge them up slightly 10:49 they're still practically zero and the 10:51 reason for that is because America has 10:52 so much debt that we can't afford to pay 10:55 a market rate of interest if we were 10:57 forced to we would have to default and 10:59 of course you're right the actual bonded 11:01 debt which is now about 19 trillion and 11:04 it's rapidly heading to 20 trillion that 11:06 is the tip of an inch 11:07 warmest iceberg the true totality of 11:10 America's liabilities dwarf the official 11:13 debt it is closer to a hundred trillion 11:15 when you account for unfunded 11:17 liabilities and social security and 11:19 medicare you look at all the off budget 11:21 items the government has guaranteed all 11:24 the dead of Fannie and Freddie all the 11:26 bank accounts all the pensions all the 11:28 student loans you look at all these 11:30 contingency liabilities and you know 11:32 we're completely broke and when you've 11:35 borrowed more than you can repay default 11:38 is inevitable 11:39 the only question is how do we do it do 11:41 we do it honestly by admitting were 11:43 broke and restructuring the debt meaning 11:45 that people don't get paid a hundred 11:47 cents on the dollar including people who 11:49 are expecting to get social security 11:51 checks or government pensions being told 11:53 that they're not going to get what they 11:55 were promised because the country is too 11:57 broke to afford it or our politicians 11:59 going to try to paper over their 12:01 inability to pay with a printing press 12:03 is the Federal Reserve going to monetize 12:06 all this debt are they going to print 12:07 all this money and I i believe that it's 12:10 going to be the latter i think that that 12:11 is exactly what they're going to do 12:12 they've laid a foundation for that they 12:15 call it quantitative easing as if it's a 12:17 good thing and I think we're getting 12:18 ready to have a lethal dose of 12:21 quantitative easing and then I think 12:23 we're gonna have a dollar crisis 12:24 Americans need to take this seriously 12:26 you know if you are caught off-guard if 12:28 you were blindsided by 2008 don't be in 12:31 that predicament again this time around 12:33 make sure that you are prepared offer 12:36 this coming economic Armageddon the 12:39 United States recently passed a very 12:42 troubling milestone the national debt 12:44 now exceeds the value of the entire US 12:47 economy any homeowner underwater on 12:50 their mortgage knows what happens when 12:53 you owe more than the value of your home 12:55 and none of the outcomes are good 12:58 America has to borrow every month just 13:00 to pay the 86 billion dollar interest on 13:03 its debt more than fourteen percent of 13:06 all government revenue is now being 13:09 sucked up by interest payments to keep 13:12 up the government's illusion of solvency 13:14 policymakers are quietly refinancing the 13:18 debt to the tune of billions of dollars 13:20 ever 13:21 three week imagine extending the 13:23 mortgage on your house to 80 years 13:26 well the Treasury secret rollover 13:29 mission has extended the length of 13:31 america's debt to levels never witnessed 13:34 before in history something i believe is 13:36 unconstitutional their behavior is 13:39 shockingly similar to how the bank's 13:42 twisted and contorted subprime mortgages 13:45 ahead of the collapse of the housing 13:46 market now the first casualty in all of 13:50 this will likely surprise you 13:52 it's something near and dear to 13:54 Americans in fact most of us regarded as 13:57 our greatest national treasure warning 14:00 what Peter reveals next might be 14:03 difficult to hear but just try to keep 14:06 this in mind the devastating events to 14:08 follow will also trigger the greatest 14:11 legal transfer of wealth ever witnessed 14:15 Peter and I want to make sure you're on 14:17 the right side of history when it 14:19 happens so the recovery we've been 14:23 hearing about its artificial it's not 14:25 real but its not recovering all we 14:27 haven't recovered from anything we've 14:29 just gotten sicker 14:30 this is the biggest bubble the federal 14:32 reserve has ever inflated and the 14:34 consequences for the average American 14:36 when it bursts are going to dwarf 14:38 anything that was experienced in the two 14:40 prior bubbles 14:41 everybody knows I in there you know in 14:44 our hearts that the country is in a lot 14:47 more shape than the leaders are 14:48 pretending i mean the Federal Reserve 14:50 wants to pretend that everything is 14:52 great right that their problems that 14:54 they're their policies to solve the 14:56 problem but the economy is in worse 14:57 shape than ever mean there's never been 14:59 a recovery 15:00 we're at the end of the recovery people 15:03 are worse off than at the beginning but 15:04 that is the truth for most Americans so 15:07 far during the recovery their net worth 15:09 of God down there real incomes have gone 15:12 down their deaths have gone up there in 15:15 worse shape financially than they were 15:17 when the recovery began and so what kind 15:19 of recovery is that where you get sicker 15:21 the extent of this recession is going to 15:24 be much more obvious when the lifelines 15:27 run out i mean right now people have a 15:29 reprieve in the form of cheap gas that's 15:32 not going to last 15:33 they're still able to borrow money 15:35 credit is still flowing the government 15:37 is still making it possible for 15:39 americans who don't have the income to 15:41 survive to borrow to make up the 15:44 difference so that they can still pay 15:46 their bills but their net worth certain 15:48 parts are negative but I think soon in 15:51 this coming crisis that borrowing 15:53 ability is going to go away and 15:56 Americans are going to be left with 15:58 their incomes which are going to 15:59 continue to diminish and a 16:00 cost-of-living that's going to continue 16:02 to rise and that's going to impoverish a 16:04 large segment of our society superiors 16:08 saying that the Federal Reserve 16:09 particularly will fire up its printing 16:11 presses again and when that happens 16:13 it'll be the kiss of death for the 16:15 dollar America's national treasure dead 16:18 absolutely you see what the government 16:20 is going to conclude incorrectly they're 16:22 going to say that their policy work it 16:25 just wasn't big enough that quantitative 16:27 easing was the right medicine they just 16:29 didn't have a large enough dose you know 16:31 that's what Paul Krugman has always been 16:32 saying that we just needed more stimulus 16:35 the problem was we didn't take on enough 16:37 new debt the government spend enough 16:38 money so i think we're going to go 16:40 all-in on stimulus and quantitative 16:42 easing we're gonna load the boat the 16:45 government is going to prepare what I 16:46 believe is going to be a lethal dose of 16:48 stimulus we're going to overdose on it 16:50 right and what's going to be the 16:52 fatality is going to be the dollar and 16:55 the whole government bubble which is you 16:59 know reflected in the value of the 17:00 dollar the value of the bond market all 17:02 that is going to come collapsing down 17:04 and the confidence that people had in 17:06 the institution of federal reserve is 17:08 going to be gone 17:09 finally you know people are going to see 17:11 it for what it is and see the dollar for 17:13 what it is and I think we're going to 17:14 lose our status as being the issuer of 17:17 the world's reserve currency and I think 17:19 that's going to be a profound change in 17:22 the american standard of living here 17:25 tell our viewers why the dollars the 17:27 loss of the world's reserve currency is 17:28 so devastating 17:30 the only reason the dollar became the 17:32 world's reserve currency was because it 17:34 was backed by gold and all he was it 17:36 backed by gold it was redeemable in gold 17:38 if you took your dollars to the Federal 17:40 Reserve they gave you gold at a fixed 17:42 exchange rate for a while that was 35 to 17:45 what Nixon to value a couple 17:47 times in it i think it was about 40 to 1 17:49 before we went off the gold standard 17:51 completely in 1971 but that is why the 17:54 dollar became the world's reserve 17:56 currency and of course when the dollar 17:58 was the reserve currency it was because 18:00 America had the world's biggest trade 18:02 surpluses we were the world's largest 18:04 creditor nation everybody wanted dollars 18:06 we were the low-cost producer of 18:09 high-quality manufactured goods are 18:11 goods were being consumed all over the 18:13 world everybody wanted our stuff and 18:15 they needed dollars to pay for it but we 18:17 are the mirror image of our former self 18:19 we are now the world's biggest debtor we 18:22 borrow from everybody the poorest 18:23 countries in the world lend us money for 18:25 the world's biggest debtor nation we 18:26 have the biggest trade deficits in the 18:28 world and we don't give any we don't 18:29 promise to pay any goal for our dollars 18:32 so this system is going to come to an 18:33 end and with it is going to be the 18:35 artificially high standard of living 18:37 that Americans have enjoyed and of 18:39 course our standard of living has 18:40 declined over the decades but it's about 18:43 to go over the edge of a cliff 18:44 Peter as you've mentioned already this 18:46 is where it really gets scary you say 18:48 the dollar would collapse wiping out all 18:50 savings and sending consumer prices into 18:52 the stratosphere 18:54 I think you even said that walmart would 18:56 seem like neiman marcus absolutely 18:59 ironically so far the dollar has been 19:02 the primary beneficiary of the 19:05 government government policy we've had 19:06 this rally in the dollar because so many 19:08 people around the world actually believe 19:10 that our problems have been solved and 19:13 that the economy is in good shape and 19:14 defensible raise interest rates but i 19:16 think this is the that the biggest 19:18 sucker rally that the dollars ever had 19:21 because just as the dollars about to be 19:23 destroyed literally people piled into it 19:26 i mean it's the most crowded speculative 19:28 trading on Wall Street is is buying into 19:31 the dollar but once up people recognize 19:33 the gravity that mistake i think it's 19:36 going to be very sharp and quick ride 19:38 down for the dollar and that is going to 19:39 be a game-changer 19:41 thanks Peter we can expect more bank 19:43 failures in the real crash well 19:45 unfortunately all the banks that the 19:47 government dog too-big-to-fail back in 19:49 the OS financial crisis 19:51 well because we bailed them all out 19:53 instead of letting them fail which is 19:54 what we should have done now those banks 19:56 are bigger than ever and the problems 19:58 are bigger than ever 19:59 so if they were too big to fail before 20:00 what are they now 20:02 and so I don't believe the government is 20:04 going to let any of the banks fail me 20:06 they think that the one mistake they 20:07 made was letting Lehman Brothers 20:09 collapse letting Lee McPhail was the one 20:11 thing they did write everything else 20:13 they did wrong so I don't believe the 20:15 government's gonna let the bank's 20:16 collapse i think they're gonna print 20:17 enough money to make sure that it's the 20:19 value of the dollar that collapses 20:21 instead of the bank's so what does that 20:23 mean that means that you don't lose your 20:24 deposits right when you go to the ATM 20:26 machine the money is going to come out 20:28 the problem is you're not going to buy 20:30 very much with it and that is a bigger 20:32 problem i would rather lose some of my 20:34 money but have the money retain most of 20:36 his value then retain all of my money 20:38 that's lost most of its value 20:40 I mean imagine how bad the 2008 20:42 financial crisis that men had there been 20:44 no bailouts right had the government 20:47 allowed more banks to fail and it would 20:50 have been worse but then the problems 20:52 would have been solved and we would have 20:54 enjoyed a real recovery one that is 20:56 sustainable 20:57 instead we've just got into another 20:59 bubble and we've made all of the 21:01 problems that caused the last financial 21:03 crisis infinitely worse and now the 21:06 governor has put itself in a position 21:08 where it won't be able to balance out 21:10 the next time because it's the 21:11 government itself that's going to have 21:13 the crisis it's the government is going 21:15 to be insolvent because the crisis is 21:17 going to be in the dollar and by 21:19 extension into treasury bond market so 21:21 when the government is broke when the 21:23 government needs a bailout there's 21:24 nobody there they that kicking that can 21:26 finance it 21:27 everybody will say we just dodged a 21:29 bullet right the government saved us it 21:30 was going to be so horrific but thanks 21:33 for the government but you know what if 21:34 it was gonna be that horrific the 21:36 government didn't save us 21:38 it's still there that crisis is still in 21:40 our future because the government save 21:42 us for anything 21:43 what did the government do they delayed 21:45 the inevitable 21:46 they postponed the day of reckoning but 21:48 by making all the problems that we have 21:50 to reckon with worse so it was going to 21:53 be worse than the great depression 21:54 without the government acting now it's 21:56 going to be even worse than that because 21:57 the government acted Peter and I've 22:00 talked at length about the coming great 22:02 depression and we both believe that this 22:05 one the one ready to make landfall will 22:08 be far worse in the depression of the 22:10 1930s that is 22:12 because in the coming crisis Americans 22:15 won't have the benefit of falling prices 22:17 see cheaper groceries and consumer goods 22:21 provided much-needed relief to people 22:24 who lost their jobs in the nineteen 22:26 thirties but this time with a crashing 22:29 dollar instead of getting the comfort of 22:31 falling prices americans will have to 22:34 suffer the agony of rising prices a bit 22:38 later Peter will tell you why you should 22:40 be stockpiling ammunition as it stands 22:43 now despite the fiscal arson that US 22:46 policymakers have committed on its 22:48 people the deception of a strong dollars 22:51 holding the past 18 months have 22:54 witnessed a rally in the dollar but the 22:56 following chart unmasks the illusion 22:59 despite Americans enjoying more 23:01 purchasing power than they've had in 23:04 almost fifteen years it's never taken 23:07 longer for a single unit of currency to 23:10 move through the US economy Americans 23:12 are scared business owners and consumers 23:15 alike and they're holding onto their 23:17 dollars you're probably scared to i know 23:21 i am that's why it's never been more 23:23 important to begin trading your 23:25 historically overvalued dollars for 23:28 other assets that will soon enjoy 23:30 dramatic valuation explosions your 23:33 dollars will never buy you more than 23:36 they will right now as Peter reveals in 23:39 this next section the Federal Reserve 23:41 just attacked America again I don't 23:44 believe they did it on purpose but 23:46 history will likely view the feds latest 23:49 measure as an economic Pearl Harbor the 23:52 real crash is now gaining momentum with 23:55 every passing second keep in mind as 23:58 you're watching that your artificially 24:00 strong dollars could make you very 24:02 wealthy as the crisis vaults Peter the 24:07 federal funds rate has been pinned near 24:08 zero since the financial crisis but the 24:11 Fed just raise rates for the first time 24:13 since june of 2006 so the Fed is finally 24:16 taking action but do they know that by 24:18 raising interest rates 24:19 they've just unleashed an economic Pearl 24:21 Harbor 24:22 well I think they're definitely 24:24 concerned 24:24 learned about what's going to happen and 24:26 i think their way under estimating the 24:28 severity of what they've unleashed 24:30 but the fact that they waited seven 24:32 years to raise rates shows you just how 24:34 worried they are in fact when 2015 began 24:38 the Fed kept assuring everybody that 24:41 before the end of the year the economy 24:43 would be strong enough for a rate hike 24:44 and they waited until two weeks before 24:46 the year ended their last meeting in 24:48 December to reluctantly nudge interest 24:51 rates up from zero 2.25 the point five 24:55 but they did so in the face of horrible 24:58 economic data it's obvious that the 25:01 economy is much closer to the next 25:03 recession then you know the early stages 25:06 of recovery which is normally when the 25:09 Fed begins to raise interest rates right 25:11 normally when an economy is emerging 25:13 from recession the Fed starts raising 25:15 rates when the economy is very strong 25:17 when you have a lot of pent-up demand 25:19 but here the Fed waited so long to raise 25:21 rates that the recovery is basically 25:23 over and the next recession is about to 25:26 begin and I think again when we begin a 25:29 recession with interest rates just 25:31 barely above zero there's not a lot of 25:34 room to cut them you say that all it 25:36 would take is for interest rates to 25:37 return to historical mean and that would 25:40 tip us into chaos that is is that still 25:43 accurate 25:43 well I think it would take even less 25:44 than that I don't leave i think that it 25:46 would happen even before we got to a 25:49 historically normal level of interest 25:51 rates because we haven't historically 25:52 abnormal amount of debt service that is 25:56 the problem and of course the American 25:58 economy has grown as a function of debt 26:01 finance consumption but Americans are 26:03 broke 26:04 they can't borrow any more and pretty 26:06 soon our creditors are going to realize 26:08 that and they're not going to want to 26:09 lend anymore Peter now this next point 26:12 is going to scare the hell out of a lot 26:13 of Americans but you consider us 26:15 treasuries to already be subprime assets 26:18 at this point 26:18 well absolutely you know one of the 26:21 reasons that I understood the problem in 26:24 subprime mortgages is because I knew 26:26 that a lot of the people in fact all the 26:28 people who were taking advantage of 26:29 subprime mortgages were using 26:31 adjustable-rate mortgages meaning that 26:33 the interest rates on their mortgages 26:35 could rise and in fact most of these 26:37 more 26:37 witches were started with what they used 26:39 to call a teaser rate where you had an 26:41 introductory very low rate of interest 26:43 on your mortgage and that meant a lot of 26:45 people who otherwise couldn't qualify 26:47 we're able to qualify because they could 26:49 make the teaser payments but I knew that 26:52 eventually those rates would reset to 26:54 levels that the borrower's couldn't 26:56 afford and then they would end up 26:58 defaulting well the government has done 27:00 the same thing the united states 27:02 national debt is like one gigantic 27:04 adjustable rate mortgage to a subprime 27:06 borrower who is not going to be able to 27:09 pay if interest rates rise we've got 27:12 this teaser rate right now thanks to the 27:13 Fed but if interest rates go up the US 27:16 government is in the same position as 27:18 the subprime borrower with lots of debt 27:21 that they can't afford to pay Peter 27:22 China's Treasury holdings have fallen 27:24 about 200 billion dollars as it raises 27:26 money in support of its flagging economy 27:28 and stock market this would be the first 27:30 time the China's pull back from 27:32 treasuries on an annual basis 27:34 scary isn't it I think it's the 27:36 beginning of a huge process it's not 27:38 just going to involve china but it's 27:40 going to involve all of America's 27:41 overseas creditors particularly in the 27:43 emerging markets who were major buyers 27:45 of our debt when the Fed was doing 27:47 quantitative easing one and two 27:49 that's what kept the dollar from really 27:50 imploding I was all the dollars in 27:53 treasuries that were being purchased by 27:54 our trading partners in order to sustain 27:56 their trade surpluses with the United 27:59 States but i don't think they're gonna 28:00 make the same mistake twice i don't 28:02 think there's going to be a currency 28:03 world war 2i think those countries are 28:06 going to surrender and America is going 28:08 to ultimately win the currency war which 28:10 means American citizens lose because 28:12 when you win a currency war you destroy 28:14 your own people because your currency 28:16 collapses and within down and with your 28:18 falling currency goes your standard of 28:20 living because our standard of living is 28:22 America is dependent on what the dollar 28:25 will buy because most of the things that 28:27 Americans by are not made in America 28:29 they're made someplace else and the 28:31 reason we're able to get them is because 28:33 we're able to exchange the dollars that 28:34 we print for the goods that everybody 28:37 else produces but when people don't want 28:39 the money we're printing we're not going 28:40 to get the goods that they're making and 28:42 Americans are gonna have to go without 28:43 things that up until now we take for 28:45 granted 28:46 iíve understood this thing from the 28:48 beginning and now we are at the final 28:50 piece of this 28:51 also we're finally arriving at the real 28:54 crash that I have been warning about 28:56 since the beginning and it's important 28:58 that people recognize you know take a 29:00 look at how many things that i have said 29:02 and i have written that have already 29:04 come true you know and why would this 29:06 final piece be any different 29:08 all right Peter it's time let's give our 29:10 viewers an idea of what the real crash 29:12 will look like when it hits now a stock 29:15 market collapse will spark the panic 29:17 right you know twice in the last 15 29:19 years the u.s. stock markets been cut in 29:21 half and certainly in the absence of 29:24 massive money-printing you know huge 29:26 round of quantitative easing is going to 29:28 happen again but i do believe that the 29:30 Federal Reserve may intervene in time to 29:33 prevent the stock market from collapsing 29:36 but only at the expense of the dollar 29:38 and then ultimately the bond market the 29:40 Fed can't save everything and if the 29:42 said that is going to save the market 29:44 and try to save the real estate market 29:45 as well then they have to sacrifice the 29:48 dollar but of course if the dollar 29:50 collapses then it might not matter that 29:53 your stock portfolio didn't go down 29:54 because if it stays if the stock market 29:57 stays the same and the dollar goes down 29:58 well you still lost because your stocks 30:01 are priced in dollars so the market 30:02 would have to go up dramatically in 30:04 order to keep you whole and I don't 30:06 think there's any way they're going to 30:07 get the market to rise enough to offset 30:10 the loss of the value of the dollar in 30:12 which your stocks are priced too so much 30:14 like it's hidden crash it's not it's not 30:16 overtly apparent but it's still 30:18 happening 30:19 yes and I think you'll be able to see 30:20 the crash better if you measure it in 30:22 something that's more objective 30:24 something that the Federal Reserve can 30:25 create and that would be gold never the 30:28 important thing is not what the stocks 30:30 are worth in terms of the dollar because 30:32 the dollars a moving target you don't 30:34 know what the dollar is going to be 30:35 worth the dollar isn't any real wealth 30:37 it represents a claim on well so the 30:39 question is what can you buy with your 30:41 dollars a better way to value stocks is 30:45 to price them in gold because gold is 30:47 real money gold has real properties and 30:51 there is a long history of the stock 30:53 market priced in something as stable as 30:56 gold and if you go back historically 30:58 when the market gets to about 20 21 31:01 right that's a very expensive stock 31:04 market and I 31:05 team 29 the dow jones was about 20 31:08 ounces of gold but when it bottomed out 31:10 in 1932 the dow was down to one ounce of 31:13 gold was a huge class now the stock 31:16 market didn't get back up to 20 ounce of 31:18 gold again until nineteen sixty-six and 31:21 then it went back down to one else in 31:23 1980 so it made the round trip in 1980 31:26 the stock market was the same price an 31:29 ounce of gold as it was in 1932 now in 31:32 two thousand during the height of the 31:34 stock market bubble the dow was worth 40 31:37 ounces of gold unprecedented now during 31:41 the ensuing bear market that really 31:43 ended around 2008-2009 I think the dow 31:46 jones got down around eight ounce ago 31:49 maybe a little less but right now it's 31:51 recovered and that ratio is around 16 21 31:54 now I don't think it's gonna make it to 31:56 20 21 again out what I do think we're 31:59 going to take out that low of around 32:01 eight to one or 71 wherever we were back 32:03 then and I think we're going to revisit 32:05 the one-to-one ratio again that we were 32:09 at at the depths of the Great Depression 32:10 in 1932 and at the end of the 1970s bear 32:16 market in 1980 remember the stagflation 32:18 airy period of the nineteen seventies 32:20 brought the bow back down to one ounce 32:22 of gold so I think we're going there 32:24 again I think the dow jones is gonna 32:26 trade for one ounce of gold 32:28 I just don't know what the price is 32:29 going to be I mean is it going to be 32:31 with the doubt 5,000 and gold 5,000 is 32:35 going to be with a Down 10,000 gold the 32:37 10,000 could be about 20,000 and gold 32:40 20,000 see the important thing is not 32:42 where they meet but that they do meet 32:44 the real crash will feel like a 32:47 rollercoaster ride through hell 32:49 only a precious few will survive the 32:52 crisis and still behold even fewer will 32:56 parachute out of the crisis richer and 32:59 happier as a result America's power base 33:03 and policymakers are already protecting 33:06 themselves and their families many of 33:09 them are following the strategies Peter 33:11 outlines in the real crash like Warren 33:14 Buffett Donald Trump Carly Fiorina Rand 33:18 Paul and 33:18 Ted Cruz ask yourself are you truly 33:22 prepared for what's coming because the 33:25 real crash will be far more serious than 33:28 a financial crisis if you think that 33:31 only those with invested assets will get 33:33 hurt the real crash will impact you even 33:36 worse what we do without Social Security 33:39 or pension check what will you do when 33:42 there's no food on the shelves for 33:44 police to protect you and your local 33:46 bank was burned to the ground 33:48 how about when a desperate government 33:50 seizes your financial assets there isn't 33:54 an American alive outside of the armed 33:56 forces who can possibly be prepared to 33:59 live through such a doomsday scenario as 34:02 Peter told me offline you won't have to 34:05 travel to a poor country like Jamaica or 34:07 Haiti to go on vacation you'll soon be 34:11 living in 1 Peter with the bankrupt 34:14 government what happens to entitlement 34:16 programs like Social Security Medicare 34:17 Medicaid food stamps unemployment 34:20 benefits fannie and freddie gone well 34:23 you know those benefits those 34:25 entitlements are the reason the country 34:27 is bankrupt then first of all nobody is 34:29 entitled to anything you're not entitled 34:31 to somebody else's money i mean you're 34:33 entitled to what you earn yourself but 34:35 you're not entitled to what somebody 34:37 else turns and of course the government 34:38 maintains the illusion that some of 34:41 these entitlement programs are actually 34:42 funded you know the social security 34:44 trust fund but there is no trust lenders 34:46 nothing there every dime that the 34:48 government has ever collected and social 34:50 security taxes has already been spent 34:53 right they spent it going to the moon 34:55 right fighting the war on poverty 34:57 fighting the vietnam war fighting that 34:59 the war on terror beam that money is God 35:02 yes the government has replaced it with 35:03 an IOU to itself but that's not really 35:06 you can't write yourself a check and 35:09 then count your uncashed check as an 35:10 asset right if I by a government bond 35:13 that's an asset to me because it's a 35:15 liability to the government but the 35:17 government can't own its own bond and 35:19 claim it as an asset because it's also 35:20 an offsetting liability so the trust 35:23 funds have never been there 35:24 the entitlement programs are run based 35:27 on the same principles as a Ponzi scheme 35:29 that's all it is 35:30 you know and you're not entitled 35:32 to the proceeds of a Ponzi scheme as 35:34 long as the government can keep up the 35:36 charade 35:36 it's going to pretend that these are 35:38 solvent programs but eventually they're 35:40 gonna implode and ultimately again I 35:43 think what happens is in order to avoid 35:45 the political embarrassment of having to 35:47 admit that there's no money and that we 35:49 can't afford to make the payments 35:51 they're just going to run the printing 35:52 presses meanwhile a lot of people now 35:54 record numbers of people are taking 35:55 disability early from social security so 35:58 the whole thing is broke in fact right 36:00 now the government is already paying out 36:02 more and social security benefits and it 36:04 collects in taxes and that's during this 36:06 so-called recovery 36:07 what's going to happen in the next 36:08 recession know if you think this was a 36:10 bad recovery of course this is the 36:12 weakest recovery ever when you get a 36:14 load of the next recession that the 36:15 recovery is this bad weather you see 36:17 what's in store 36:18 so this whole thing is going to implode 36:20 I mean the government is trying to keep 36:21 it going 36:22 by pretending there's no inflation you 36:24 know the the colors didn't go up at all 36:26 so last year people on social security i 36:29 think for the first time didn't get an 36:30 increase in their benefits for inflation 36:32 because the government claims there is 36:33 none 36:34 well I mean that like can only go on for 36:35 so long but what they're really doing by 36:38 pretending there's no inflation is 36:40 cutting social security benefits but 36:41 they're gonna have to cut a lot more in 36:43 fact are basically going to eliminate 36:45 them completely by either honestly 36:47 by not paying or you know means testing 36:50 program or dishonestly by just printing 36:53 so much money as to render the benefits 36:55 worthless please warn our viewers puter 36:57 that although the national debt gets all 37:00 the headlines dead at the local levels 37:02 of state levels the municipalities 37:04 sometimes in often cases those are even 37:06 more scary than where national debt is 37:08 yeah and the municipalities of course 37:10 you know they can't print any money i 37:12 mean they can only pay their bills to 37:14 the extent that they can collect the tax 37:16 revenue and you know they've also taken 37:18 on a lot of debt during the era of cheap 37:20 money you know they local politicians 37:23 have been able to spend a lot more money 37:25 that they then the otherwise could have 37:26 spent if interest rates were at normal 37:29 levels so they've taken on incredible 37:31 amounts of debt and of course a lot of 37:33 these cities rely on their higher income 37:35 earners are as their tax base right and 37:38 the tax bases have been eroding but a 37:40 lot of these higher income earners are 37:42 going to have those high incomes anymore 37:43 and so the taxes are going to be there 37:45 and there are a lot of local government 37:47 said that rely on this for they rely on 37:50 a property tax revenue that's not going 37:52 to be there when the property prices are 37:53 collapsing or the people just don't have 37:55 the money to pay the taxes i mean if the 37:57 if the taxpayers broke he can't send in 38:00 a check and if the local government 38:02 can't collect tax revenue that it can't 38:04 pay the interest on its bonds he can't 38:06 pay the principal in the bonds mature 38:07 and so that's going to happen for our 38:09 cities 38:10 ah throughout the country and our 38:12 state's and of course you have a lot of 38:14 problems and you think about a lot of 38:16 our cities we have some of the 38:17 wealthiest neighborhoods very close to 38:20 some of the poorest neighborhoods and 38:22 this is going to be a big problem out 38:24 when everything comes you know comes 38:26 collapsing down Peter would a desperate 38:28 US government attempting to service its 38:30 debt sees personal assets of americans 38:34 were to go into their bank accounts 38:35 would go into therefore own case good we 38:38 know desperate people do desperate 38:39 things is something Americans have to be 38:41 worried about as foreigners decide they 38:43 don't want to buy Treasuries and as the 38:45 US government is looking for more buyers 38:48 they made force Americans to do it i 38:51 think it's possible that in the future 38:53 the government might force you in order 38:55 to maintain the tax benefits of your IR 38:58 area pension or 401k they may require a 39:02 certain percentage of that account be 39:03 invested in us treasuries now I think 39:06 obviously something like that would be 39:07 unconstitutional but you know during a 39:09 crisis the Constitution goes out the 39:11 window in fact is out the window without 39:12 a crisis there's really no limit to what 39:14 the government could do because the 39:16 Supreme Court doesn't care they just 39:18 rubber-stamp whatever it is they do the 39:20 Constitution really doesn't protect us 39:21 from government anymore 39:22 I the way it was supposed to but believe 39:25 me whatever the government is forcing 39:26 you to buy is the last thing that you 39:28 want to buy what would you say to the 39:30 people considering buying gold Peter I 39:32 mean the best way to own gold is to take 39:34 physical possession of it i mean i think 39:35 people should have told you know in 39:38 their house they should have it in their 39:40 own save for hidden someplace safe but 39:42 you also should have some gold stored 39:44 offshore in your name your goal whether 39:47 it's in Switzerland or Singapore or you 39:51 know Australia there are good safe 39:53 depositories for your gold I think you 39:55 should diversify where you have your 39:57 goal i think one place I wouldn't 39:59 it is in a safety deposit box at a bank 40:01 because if the government ever 40:02 confiscates that's the first place 40:04 they're gonna look I mean if you've got 40:06 gold in a bank and the government 40:07 somehow you know tries to nationalize 40:10 there makes it illegal to own it you'll 40:11 never get that gold out of that Bank and 40:14 I mean they'll be a government agent 40:15 will open every box and they find the 40:17 golden there they might arrest you all 40:19 of us Peter even me assume that the 40:21 government will always be able to 40:22 provide basic services without further 40:25 borrowing power 40:26 what about Police Fire Rescue Postal 40:28 Service does it all grind to a halt 40:30 remember the government doesn't actually 40:32 have any wealth it only has what it 40:34 takes for the productive members of 40:36 society but the productive members of 40:38 society have been shrinking because 40:40 American politicians have made all sorts 40:42 of promises they can't keep they made 40:44 promises the bondholders but they've 40:46 also made promises to government 40:48 employees with respect to pensions or 40:50 just every American with respect to 40:52 social security and medicare but the 40:53 money isn't there and think about this 40:55 you know if the government's are broke 40:58 you know that's including the local 41:00 governments I mean they can't you know 41:02 get the tax revenue and so if they can't 41:06 pay the police department are they going 41:08 to be on duty right if the government's 41:10 don't have the resources to pay the 41:12 police right are they going to be there 41:14 to protect you 41:15 they're going to be protecting their own 41:16 families why are they going to be on the 41:17 job when there's nothing in it for them 41:20 that's why it's very important for 41:21 people to be prepared 41:23 don't rely on the government to protect 41:24 you rely on yourselves because those 41:27 government policeman uh maybe too 41:29 preoccupied protecting their own 41:31 families to work for free 41:33 protecting somebody else's puter as you 41:36 know Wall Street daily his headquarters 41:38 in baltimore maryland and we all know 41:40 what happened in Baltimore I lived 41:42 through those riots they were scary i 41:43 could smell the smoke in the air 41:45 there's just panic on the streets I 41:47 never thought I'd see in America like 41:49 that but I definitely did that day you 41:52 see more of this happening in some of 41:54 our major cities 41:55 absolutely and of course on a much 41:56 larger scale those were localized 41:58 problems and those weren't economic 42:00 problems i mean those were more 42:02 political but if you get something that 42:04 really hits home out where the goods 42:07 that people take for granted are just 42:09 are just not available right where 42:11 people can't 42:12 the food that they need or the 42:14 electricity or the gasoline if goods are 42:17 really in short supply 42:18 it really could get into a situation 42:20 where everybody is going to have to rely 42:22 on their own ability to protect 42:25 themselves which is you know one of the 42:26 reasons that you know people should be 42:28 prepared now I mean you know you you 42:30 should have uh you know weapons to 42:33 protect yourself in one of the reasons 42:35 that gun control would be you know so 42:37 dangerous is so many people will be left 42:39 defenseless I mean people need to be 42:41 able to defend themselves that's why i 42:43 recommend for a long time the only 42:44 people I you know keep the guns but they 42:47 keep enough ammunition because I think 42:49 ammunition is going to be in very short 42:50 supply and you know you know you might 42:52 have a gun but gravity bullet something 42:53 you do not study any good 42:55 I and so you know i recommend a long 42:58 time i use stock pilot I mean worst case 43:00 scenario you can barter them you know 43:01 you can trade with somebody they're 43:03 gonna have value but they might have a 43:05 lot of value if you actually need to use 43:07 them on you know when you have plus when 43:09 you buy a gun you hope you never use it 43:11 I mean you know that mean that that's 43:12 what that's what you should unless you 43:13 know you're a hunter but you never want 43:15 to use your gun in self-defense that's 43:16 the last thing you want to do but I tell 43:19 you the worst thing is not having a gun 43:20 that you don't need it's needed a gun 43:22 and not having one 43:23 you don't want to be in that situation 43:24 ammunition prices have already tripled 43:28 and industry analysts warn that prices 43:31 could triple again in the face of a 43:33 shortage 43:33 however a recent price pullback has 43:37 delivered an opportune time to begin 43:39 stockpiling in the real crash ammunition 43:43 could become a means of currency as 43:45 bullets carry intrinsic value again it's 43:48 never been more important to 43:50 strategically trade your overvalued 43:53 dollars for other assets ready to 43:55 explode in value 43:56 it's unlikely that your dollars will 43:59 ever be worth more than they're worth 44:01 this very moment think of the coming 44:04 crash like a mousetrap 999 out of a 44:08 thousand Americans believing what the 44:10 president the Federal Reserve and 44:13 Congress are telling them will 44:15 voluntarily walk straight into the trap 44:17 and never come out but one out of every 44:21 thousand will be clever enough to eat 44:23 the cheese and 44:25 walk away feeling satisfied in the 44:28 subprime mortgage meltdown every 44:30 American home owner got hurt as the real 44:33 estate market endure a devastating 44:36 revaluation still a handful of people 44:39 got richer as a result Peters first book 44:43 crash-proof proved prophetic and offered 44:46 investors very specific instructions to 44:49 grab the cheese without spring the trap 44:52 his latest book the real crash it's even 44:56 harder 44:57 of course it has to hit harder the 45:00 dollars revaluation has the potential to 45:03 do more damage than a terrorist attack a 45:06 thousand times bigger than 911 45:09 Peter you say even if you don't think of 45:12 yourself as an investor you need to 45:14 start paying more attention to your 45:16 wealth or an unconventional times the 45:19 federal be printing so much money that 45:21 your dollars could become worthless in 45:23 fact you say when the dollar crashes 45:25 walmart will seem like neiman marcus is 45:28 there still time for americans to 45:29 prepare for the coming crisis absolutely 45:32 in fact because so many people are 45:34 confused about what's going on so many 45:36 people have embraced the dollar and have 45:39 confidence in what the Federal service 45:41 created you have a situation where real 45:43 money gold and silver are you know 45:46 extremely undervalued and so while 45:49 prices are going to be going up for 45:50 people who have dollars prices are will 45:53 be collapsing for people who have real 45:55 money so there's still an opportunity 45:56 for people to accumulate legitimate 45:59 savings to get real money while it's 46:02 cheap and hold onto it until it's dear 46:04 until it's valuable because once people 46:06 realize that this is a bubble and the 46:08 dollar starts to implode people are 46:10 gonna be scrambling to convert those 46:12 claims to wealth to actual wealth 46:14 let's talk about the stock market you 46:16 say in your book you're an investor and 46:18 part of your job as an investor is to 46:20 find mistakes and errors and miss 46:22 pricings that are that are occurring out 46:24 there similarly there'll be some of 46:25 those mispricing and errors happen again 46:28 this time 46:28 well there already are and I i do 46:30 believe that there will be stocks that 46:33 investors can own that will do a good 46:37 job of preserving real value but you 46:40 can't just randomly by the major indexes 46:42 because there's a lot of companies that 46:43 are going to go bankrupt 46:45 I in in this real crash and so you want 46:48 to own the companies that are uniquely 46:50 positioned to preserve wealth and 46:53 preserve purchasing power and of course 46:54 many of those stocks are not even found 46:56 in the US stock market I think investors 46:58 really have to have a global perspective 47:00 and you know have to look at other 47:03 countries because not all countries are 47:05 the same 47:05 I mean there are many countries that are 47:07 not nearly in the same type of trouble 47:09 that we are mean I i look for countries 47:11 where they have a free market principles 47:14 i look for countries that have more in 47:16 common with America of the past then 47:19 America does with itself I mean it's not 47:21 the country that's important it's the 47:23 free market principles that are embraced 47:25 and if you find countries that have free 47:27 markets that have sounder monetary and 47:29 fiscal policies that have fewer 47:31 regulations and lower taxes on those are 47:34 better countries in which to invest and 47:36 there are stocks and other assets that 47:38 you can own in other countries that I 47:41 believe will deliver a substantial gains 47:44 in real purchasing power to American 47:47 investors who have the foresight to buy 47:49 these assets now I with their overvalued 47:52 US dollars know a lot of people talk 47:53 about it's cheaper to take a vacation 47:55 abroad right now because the dollars up 47:57 and it's true it is cheaper to take a 47:59 vacation vacation only lasts for a short 48:02 period of time and then it's over but 48:04 rather than just taking application i 48:06 use your overvalued dollars to buy 48:08 assets abroad that you will have forever 48:11 that will provide returns in perpetuity 48:13 because once the dollar collapses are 48:16 those overseas assets are going to be 48:17 very expensive and most Americans won't 48:19 be able to afford them but you can buy 48:21 them now while they're technically on 48:23 sale because of are overvalued currency 48:25 and the currency is only overvalued 48:28 because it's in a bubble because 48:29 speculators around the world have no 48:31 idea what's about to happen just like 48:34 they had no idea what was about to 48:35 happen in 2008 or no idea what was about 48:38 to happen in two thousand so they've 48:40 made a mistake they have overpaid for 48:42 the dollar and if you've got dollars 48:44 then you can use that to your advantage 48:45 because you can take those overvalued 48:48 dollars and accumulate quality 48:50 since around the world that you're going 48:51 to need in the aftermath of the crisis 48:54 that's coming is the key to identify the 48:57 companies that aren't relying on the 48:59 American consumer to fund its growth 49:01 absolutely i mean you don't want to own 49:03 a company that is dependent on Americans 49:05 are for its revenue because Americans 49:08 are dependent on credit and that credit 49:10 is going to dry up i mean the day the 49:13 days of the American consumer are our 49:15 number and so you really want to own 49:17 companies that are going to be able to 49:20 sell into the emerging consumers you 49:22 know the people who have been producing 49:24 all of the goods that we've been 49:26 consuming and have been saving and 49:28 loading us all the money to pay for it 49:29 and I believe that as Americans get poor 49:32 they're going to be other people who get 49:34 a lot richer 49:35 I mean this is not a zero-sum game I 49:37 mean the factories are going to 49:38 disappear all the consumer goods are 49:40 still going to be produced what's going 49:42 to change who gets to enjoy the 49:44 consumption of those goods 49:45 I mean we've been enjoying it for a long 49:47 time we've had this ride on the global 49:49 gravy train but this is going to come to 49:51 an end but i think people who have been 49:53 working hard in other countries who have 49:55 been watching Americans in a gorge on 49:57 the fruits of their labor they're going 49:59 to reclaim their their fruits for 50:01 themselves and I think as our standard 50:03 living declines their standard of living 50:06 is going to rise and so you can join 50:08 them you don't have to be on the losing 50:09 end we know the dollars crashing Peter 50:12 dollar-denominated bonds are even worse 50:15 than investing in the dollar correct 50:18 well sure I mean the only worsen the 50:19 dollar is a promise to pay you the 50:21 dollar in the future which is all the 50:23 bond is and again ironically everybody 50:26 is taking refuge in the dollar right 50:28 there running toward the blast instead 50:30 of away from it i mean everybody thinks 50:31 the dollars King I yet the dollars about 50:35 to be knocked off its throne which from 50:37 an investment perspective makes sense 50:39 right the market generally is setting 50:41 everybody up for what they don't expect 50:43 and so everybody is now up buying the 50:47 dollar taking refuge from the storm in 50:49 the dollar when the dollar is the 50:51 epicenter of the storm they're actually 50:52 when they're in the dollar in the eye of 50:54 a hurricane 50:55 you just don't realize it right but 50:57 pretty soon you know that that 50:58 hurricanes gonna move and you're going 51:00 to be smack dab in the middle of that 51:02 hurricane you're not going to be 51:04 you're not gonna be in the eye but that 51:05 does give the investor the opportunity 51:08 to take advantage of other people's 51:09 naivete other people's our mistakes 51:12 which is the way you really make a lot 51:15 of money and investing is recognizing a 51:18 mistake that everybody else is making 51:19 and then you position yourself to be in 51:22 the right place when everybody who's 51:24 making that mistake figures it out 51:26 Peter you found a few healthy dare i say 51:29 thriving micro economies hiding inside 51:32 of certain foreign markets now the 51:34 industry's you've identified have a moat 51:36 around them that is fundamentals that 51:37 will protect them from the American arm 51:40 again how's that even possible 51:42 well when the financial crisis hit in 51:44 2008 the reason that we suck the entire 51:47 world into our crisis was because it 51:50 resulted in a huge rise in the dollar 51:52 which was at an all-time record low when 51:54 the crisis began and then all of a 51:56 sudden this big rise in the dollar cause 51:58 the liquidity drain in a lot of other 52:00 economies and it caused creditors to 52:03 tighten up and then debts were 52:05 defaulting and of course we had spread 52:07 our toxic paper all around the world i 52:09 mean we were borrowing from everybody 52:10 and so all of our bad mortgages were on 52:12 the banks balance sheets of all sorts of 52:14 banks not just American banks but i 52:16 think this time around with the dollar 52:18 collapsing it's going to have the 52:20 opposite effect instead of pulling 52:21 everybody down we're going to liberate 52:23 everybody i think some of these 52:25 economies are going to flourish in the 52:26 aftermath of a dollar crisis and so this 52:29 is gonna be a whole new world and so if 52:30 you're invested in the countries that 52:32 are going to benefit from this 52:34 realignment of global wealth and 52:36 purchasing power then you can make a 52:37 tremendous amount of money 52:39 Peter in your book you've identified a 52:40 country an investable country that's 52:42 already gone through this have already 52:43 done a complete 180 they already had a 52:45 financial crisis years ago and now 52:47 they're sitting on the doorstep of great 52:49 prosperity tell us a little bit about 52:51 that country 52:52 yeah history is replete with examples of 52:55 countries that have basically gone 52:57 bankrupt as a result of big government 52:59 but once in awhile countries recognize 53:02 the source of their problems as 53:04 government and they take the appropriate 53:06 measures to reverse the damage and and 53:09 so to the extent that you abandoned 53:13 those principles and start dismantling 53:15 government privatizing your industry's 53:17 right 53:18 repealing regulations lowering taxes 53:21 particularly taxes on income on 53:23 inheritance and if you move towards a 53:25 free market then you can create the 53:27 conditions for lasting prosperity and 53:29 there are countries are where they know 53:32 they've already paid the piper they've 53:33 already done the hard part and now 53:36 they're positioned to reap the rewards 53:39 Peter in your book the real crash you've 53:40 also had identified a couple of 53:42 countries that are resource-based 53:43 countries now with these depressed price 53:45 levels these are highly investable areas 53:48 of the world we want to be positioned 53:49 incorrect absolutely there are countries 53:50 now that have tremendous natural 53:52 resources that right now due to the 53:54 artificially high value of the dollar 53:56 and the anticipation that the dollar 53:58 will continue to rise and that interest 54:00 rates will continue to to rise and hurt 54:03 a lot of the consumers of those 54:05 commodities in the developing world are 54:07 you have some really good opportunities 54:09 because I believe that these 54:10 resource-based economies will be 54:12 invigorated when the dollar collapses in 54:14 particular I think a lot of the 54:16 countries that are going to benefit most 54:18 from a weak dollar are going to see a 54:20 huge increase in their demand for 54:22 resources of all materials as they use 54:25 their new-found purchasing power to buy 54:27 products for themselves instead of 54:29 producing products for the United States 54:31 and I think a lot of those products are 54:33 going to be very resource-intensive and 54:35 I think when billions of people enter 54:36 the middle class their demand for 54:38 resources is going too far eclipsed the 54:41 resources that Americans are now two 54:42 ported to to consume so i think a lot of 54:45 these resource-based economy's the right 54:46 economies are going to be 54:48 well-positioned for tremendous gains in 54:51 in their assets when this transition 54:54 takes place here in your book you've 54:56 identified another country that's a 54:58 beneficiary very small government but 55:00 also is riding the way from China tell 55:02 us a little about that one 55:03 yeah well you've got countries that are 55:05 uniquely positioned to benefit from 55:08 really the emergence of the chinese 55:10 economy and the Chinese consumer I mean 55:12 think about the birth of the American 55:15 consumer in that the you know that 55:18 during the industrial revolution or the 55:20 late stages of that you know we're going 55:22 through something like that i mean 55:23 they're sure there's problems in China 55:24 and people want to focus on the problem 55:26 but you 55:26 the look beneath the superficial 55:28 problems actually see the dynamic change 55:31 that is taking place in the economy that 55:33 used to really be a communist country 55:35 that are now in many maze is it weighs 55:37 is freer than the United States there 55:39 are more free market principles 55:41 underlying the Chinese economy 55:43 then in the American economy and the 55:45 transition is profound and it is going 55:47 to deliver an extraordinary again I to 55:51 the standard living and that's already 55:52 taken place but there are countries a 55:54 couple of countries that are uniquely 55:57 positioned to benefit from this because 55:59 they don't shackle on their industries 56:01 and are individuals with all kinds of 56:03 cumbersome regulations and taxes they 56:06 have no true freedom and they're free to 56:09 take advantage of these opportunities 56:10 but you're free to invest in these 56:12 countries and take advantage of those 56:13 opportunities will return your book the 56:15 real crash you have also identified a 56:17 country with a long history of sound 56:19 money and you see that continuing into 56:21 this country saw immediate future 56:23 tell us a little bit about what's 56:24 happening there yeah you know almost 56:26 every country to some degree has 56:28 abandoned those principles and everybody 56:30 is kind of buying into the inflation 56:33 mentality of the Keynesian where we need 56:35 inflation we need a weak currency but I 56:37 think as those principles are rejected 56:39 certainly the countries that have a 56:41 history of sound money will reimburse 56:44 those principles and I think to their 56:45 benefit the biggest problem has been 56:48 that we haven't had a real monetary 56:50 system ever since the u.s. went off the 56:52 gold standard 1971 what we have now does 56:54 not work what existed prior to that did 56:57 and i think that we're going to go back 56:59 to what work and there are certain 57:01 countries certainly that are much better 57:02 position to do that and do it earlier 57:04 than others 57:05 let's talk about gold Peter falling 57:08 prices and force a slew of junior miners 57:10 offline you believe this could trigger 57:13 one of the biggest short squeezes ever 57:15 explain to our viewers why 57:17 well I think that it's some of the best 57:18 values that exists exists in the 57:21 gold-mining second you look at the price 57:24 of gold mining stocks minh most gold 57:26 mining stocks today or significantly 57:28 cheaper than they were 15 years ago at 57:30 the end of a 20-year bear market when 57:32 gold was under three hundred dollars and 57:34 outstanding gold is close to 1100 today 57:36 yet gold stocks or are half for more 57:39 even less than where they 57:40 when Cole was under 300 I and of course 57:43 a lot of mining exploration has stopped 57:46 I mean there's really no capital in the 57:47 industry 57:48 everybody is bearish everybody thinks 57:50 gold is going to collapse and of course 57:52 when everybody thinks one thing and and 57:54 they're wrong 57:55 there's tremendous opportunity for 57:56 people who are right and i think there's 57:58 some great bargains in the gold mining 58:01 sector of course gold itself is 58:03 undervalued but gold-mining stocks even 58:05 more so because they reflect all the 58:07 negative sentiment on gold so they don't 58:09 reflect what the price of gold is 58:11 trading out today but the much lower 58:13 price that everybody assumes it will be 58:14 trading at in the future so even if gold 58:17 prices just stay the same gold stocks 58:19 have a long way to go but certainly if 58:21 you buy the right ones I mean I you know 58:23 some of them could go bankrupt in this 58:25 environment but the ones that don't I 58:26 think we're going to return my enormous 58:28 profits to the people who had the 58:30 foresight to buy them 58:32 I hope you found Peters warning to 58:34 America without for unfunded liabilities 58:38 and social security and medicare you 58:40 look at all the off budget items the 58:43 government has guaranteed all the dead 58:44 of Fannie and Freddie all the bank 58:46 accounts all the pensions all the 58:48 student loans you look at all these 58:50 contingency liabilities and you know 58:52 we're completely broke and when you've 58:55 borrowed more than you can repay default 58:58 is inevitable 58:59 the only question is how do we do it do 59:01 we do it honestly by admitting were 59:03 broke and restructuring the debt meaning 59:06 that people don't get paid a hundred 59:07 cents on the dollar including people who 59:09 are expecting to get social security 59:11 checks or government pensions being told 59:14 that they're not going to get what they 59:15 were promised because the country is too 59:17 broke to afford it or our politicians 59:19 going to try to paper over other 59:21 inability to pay with a printing press 59:24 is the Federal Reserve going to monetize 59:26 all this debt are they going to print 59:27 all this money and I i believe that it's 59:30 going to be the latter i think that that 59:31 is exactly what they're going to do 59:32 they've laid a foundation for that they 59:35 call it quantitative easing as if it's a 59:37 good thing and I think we're getting 59:39 ready to have a lethal dose of 59:41 quantitative easing and then I think 59:43 we're gonna have a dollar crisis 59:44 Americans need to take this seriously 59:46 you know if you were caught off guard if 59:48 you were blindsided by 2008 don't be in 59:51 that predicament 59:52 and this time around make sure that you 59:54 are prepared offer this coming economic 59:57 Armageddon the United States recently 60:01 passed a very troubling milestone the 60:04 national debt now exceeds the value of 60:06 the entire US economy any homeowner 60:09 underwater on their mortgage knows what 60:12 happens when you owe more than the value 60:14 of your home and none of the outcomes 60:17 are good 60:18 America has to borrow every month just 60:21 to pay the 86 billion dollar interest on 60:23 its debt more than fourteen percent of 60:26 all government revenue is now being 60:29 sucked up by interest payments to keep 60:32 up the government's illusion of solvency 60:35 policymakers are quietly refinancing the 60:38 debt to the tune of billions of dollars 60:40 every week 60:43 imagine extending the mortgage on your 60:44 house to 80 years 60:46 well the Treasury secret rollover 60:49 mission has extended the length of 60:51 america's debt to levels never witnessed 60:54 before in history something i believe is 60:56 unconstitutional their behavior is 60:59 shockingly similar to how the bank's 61:02 twisted and contorted subprime mortgages 61:05 ahead of the collapse of the housing 61:06 market now the first casualty in all of 61:10 this will likely surprise you 61:12 it's something near and dear to 61:14 Americans in fact most of us regarded as 61:18 our greatest national treasure warning 61:20 what Peter reveals next might be 61:23 difficult to hear but just try to keep 61:26 this in mind the devastating events to 61:28 follow will also trigger the greatest 61:32 legal transfer of wealth ever witnessed 61:35 Peter and I want to make sure you're on 61:37 the right side of history when it 61:39 happens so the recovery we've been 61:43 hearing about its artificial it's not 61:45 real right it's not recovering all we 61:47 haven't recovered from anything we've 61:49 just gotten sicker 61:50 this is the biggest bubble the federal 61:52 reserve has ever inflated and the 61:54 consequences for the average American 61:56 when it bursts are going to dwarf 61:58 anything that was experienced in the two 62:00 prior bubbles 62:01 everybody knows are in there you know in 62:04 our hearts that the country 62:06 is in a lot more shape than the leaders 62:08 are pretending i mean the Federal 62:10 Reserve wants to pretend that everything 62:12 is great right that their problems that 62:14 direct their policies to solve the 62:16 problems but the economy is in worse 62:17 shape than ever mean there's never been 62:19 a recovery 62:20 we're at the end of the recovery people 62:23 are worse off than at the beginning but 62:25 that is the truth for most Americans so 62:27 far during the recovery their net worth 62:29 of God down there real incomes have gone 62:32 down their deaths have gone up there in 62:35 worse shape financially than they were 62:37 when the recovery began and so what kind 62:40 of recovery is that when you get sicker 62:41 the extent of this recession is going to 62:44 be much more obvious when the lifelines 62:47 run out i mean right now people have a 62:49 reprieve in the form of cheap gas that's 62:52 not going to last and they're still able 62:54 to borrow money credit is still flowing 62:56 the government is still making it 62:58 possible for americans who don't have 63:00 the income to survive to borrow to make 63:03 up the difference so that they can still 63:05 pay their bills but their net worth 63:08 certain parts are negative but I think 63:11 soon in this coming crisis that 63:13 borrowing ability is going to go away 63:16 and Americans are going to be left with 63:18 their incomes which are going to 63:19 continue to diminish and a 63:20 cost-of-living that's going to continue 63:22 to rise and that's going to impoverished 63:24 a large segment of our society superior 63:28 saying that the Federal Reserve 63:29 particularly will fire up its printing 63:31 presses again and when that happens it 63:34 will be the kiss of death for the dollar 63:35 America's national treasure dead 63:38 absolutely you see what the government 63:40 is going to conclude incorrectly they're 63:42 going to say that their policy work it 63:45 just wasn't big enough that quantitative 63:47 easing was the right medicine they just 63:49 didn't have a large enough dose you know 63:51 that's what Paul Krugman has always been 63:53 saying that we just needed more stimulus 63:55 the problem was we didn't take on enough 63:57 new debt the government spend enough 63:59 money so i think we're going to go 64:00 all-in on stimulus and quantitative 64:03 easing we're gonna load the boat the 64:05 government is going to prepare what I 64:06 believe is going to be a lethal dose of 64:08 stimulus we're gonna overdose on it 64:11 right and what's going to be the 64:12 fatality is going to be the dollar and 64:15 the whole government bubble which is you 64:19 know reflected in the 64:20 value of the dollar the value of the 64:21 bond market all that is going to come 64:23 collapsing down and the confidence that 64:26 people had in the institution of the 64:27 Federal Reserve is going to be gone 64:29 finally you know people are going to see 64:31 it for what it is and see the dollar for 64:33 what it is and I think we're going to 64:35 lose our status as being the issuer of 64:37 the world's reserve currency and I think 64:39 that's going to be a profound change in 64:42 the american standard of living here 64:45 tell our viewers why the dollars the 64:47 loss of the world's reserve currency is 64:49 so devastating 64:50 the only reason the dollar became the 64:52 world's reserve currency was because it 64:54 was backed by gold and all he was at 64:56 backed by gold it was redeemable in gold 64:58 if you took your dollars to the Federal 65:00 Reserve they gave you gold at a fixed 65:02 exchange rate for a while that was 35 65:05 216 and evaluate a couple of times and i 65:08 think it was about 40 to 1 before we 65:10 went off the gold standard completely in 65:12 1971 but that is why the dollar became 65:15 the world's reserve currency and of 65:16 course when the dollar was the reserve 65:19 currency it was because America had the 65:21 world's biggest trade surpluses we were 65:23 the world's largest creditor nation 65:25 everybody wanted dollars we were the 65:27 low-cost producer of high-quality 65:29 manufactured goods are goods were being 65:32 consumed all over the world everybody 65:34 wanted our stuff and they needed dollars 65:36 to pay for it but we are the mirror 65:38 image of our former self 65:39 we are now the world's biggest debtor we 65:42 borrow from everybody the poorest 65:43 countries in the world lend us money 65:45 where the world's biggest debtor nation 65:46 we have the biggest trade deficits in 65:48 the world and we don't give any we don't 65:49 promise to pay any goal for our dollars 65:52 so this system is going to come to an 65:54 end and with it is going to be the 65:56 artificially high standard of living 65:57 that Americans have enjoyed and of 65:59 course our standard of living has 66:01 declined over the decades but it's about 66:03 to go over the edge of a cliff 66:05 Peter as you've mentioned already this 66:06 is where it really gets scared you say 66:08 the dollar would collapse wiping out all 66:10 savings and sending consumer prices into 66:13 the stratosphere 66:14 I think you even said that walmart would 66:16 seem like neiman marcus absolutely 66:19 ironically so far the dollar has been 66:22 the primary beneficiary of the 66:25 government government policy we've had 66:26 this rally in the dollar because so many 66:28 people around the world actually believe 66:30 that our problems have been solved 66:33 and that the economy is in good shape 66:34 and the feds gonna be able to raise 66:36 interest rates but i think this is the 66:37 the the biggest sucker rally that the 66:40 dollars ever had because it just as the 66:42 dollars about to be destroyed literally 66:45 people piled into it i mean it's the 66:47 most crowded speculative trading on Wall 66:49 Street is is buying into the dollar but 66:52 once up people recognize the gravity 66:54 that mistake i think it's going to be 66:56 very sharp and quick ride down for the 66:58 dollar and that is going to be a 67:00 game-changer 67:01 thanks Peter we can expect more bank 67:03 failures in the real crash well 67:05 unfortunately all the banks that the 67:07 government dub too-big-to-fail back in 67:10 the elite financial crisis 67:11 well because we bailed them all out 67:13 instead of letting them fail which is 67:14 what we should have done now those banks 67:16 are bigger than ever and the problems 67:18 are bigger than ever 67:19 so if they were too big to fail before 67:21 what are they now 67:22 and so I don't believe the government is 67:24 going to let any of the banks fail me 67:26 they think that then one mistake they 67:27 made was letting Lehman Brothers 67:29 collapse letting Lee McPhail was the one 67:31 thing they did write everything else 67:33 they did wrong so I don't believe the 67:35 government's gonna let the bank's 67:36 collapse i think they're gonna print 67:38 enough money to make sure that it's the 67:39 value of the dollar that collapses 67:41 instead of the bank's so what does that 67:43 mean that means that you don't lose your 67:45 deposits right when you go to the ATM 67:46 machine the money is going to come out 67:48 the problem is you're not going to buy 67:50 very much with it and that is a bigger 67:52 problem i would rather lose some of my 67:54 money but have the money retain most of 67:56 his value then retain all of my money 67:59 that's lost most of its value 68:00 I mean imagine how bad the 2008 68:03 financial crisis that men had there been 68:04 no bailouts right had the government 68:07 allowed more banks to fail and it would 68:10 have been worse but then the problems 68:12 would have been solved and we would have 68:14 enjoyed a real recovery one that is 68:16 sustainable 68:18 instead we've just got into another 68:19 bubble and we've made all of the 68:21 problems that caused the last financial 68:23 crisis infinitely worse and now the 68:27 governor has put itself in a position 68:28 where it won't be able to balance out 68:30 the next time because it's the 68:32 government itself that's going to have 68:33 the crisis it's the government is going 68:35 to be insolvent because the crisis is 68:37 going to be in the dollar and by 68:39 extension into treasury bond market so 68:41 when the government is broke when the 68:43 government needs a bailout there's 68:44 nobody there they make it that can make 68:46 it 68:46 finance it everybody will say we just 68:48 dodged a bullet right the government 68:50 saved us it was going to be so horrific 68:52 but thanks for the government but you 68:54 know what if it was gonna be that 68:55 horrific the government didn't save us 68:58 it's still there that crisis is still in 69:00 our future because the government state 69:02 us for anything 69:03 what did the government do they delayed 69:05 the inevitable 69:06 they postponed the day of reckoning but 69:08 by making all the problems that we have 69:10 to reckon with worse so it was going to 69:13 be worse than the great depression 69:14 without the government acting now it's 69:16 going to be even worse than that because 69:17 the government acted Peter and I have 69:20 talked at length about the coming great 69:22 depression and we both believe that this 69:25 one the one ready to make landfall will 69:28 be far worse in the depression of the 69:30 1930s that is because in the coming 69:33 crisis Americans won't have the benefit 69:36 of falling prices see cheaper groceries 69:40 and consumer goods provided much-needed 69:43 relief to people who lost their jobs in 69:45 the nineteen thirties but this time with 69:49 a crashing dollar instead of getting the 69:51 comfort of short subprime mortgages a 69:53 year before they collapsed and only one 69:56 individual with the foresight to take 69:58 advantage of it and my warnings were 70:00 specific i didn't just say oh we're 70:02 gonna have a crisis i went into every 70:04 specific detail of what the problem was 70:07 and what was going to happen and i have 70:09 yet to see anybody write an explanation 70:12 of the 2008 financial crisis in 70:15 hindsight that is better and more 70:17 accurate than what i wrote before it 70:19 happened 70:20 Peter how did you see this crisis coming 70:23 a full year but perhaps a little bit 70:25 more than up the president Wall Street 70:27 Congress how did you see that crisis 70:29 coming when no one else could see it 70:31 well I saw a lot earlier than 2006 you 70:34 can go back to the internet and look at 70:36 the extensive writings ah from 2004-2005 70:41 in which i described in every detail the 70:45 housing bubble and how it was being 70:47 inflated and what the source of the 70:50 problem was my I blamed mainly the 70:52 Federal Reserve I blamed Alan Greenspan 70:54 and their low interest rates but I went 70:56 into all the problems 70:58 and the appraisal industry into 71:00 securitisation industry i went to the 71:02 problems with fannie mae and freddie mac 71:03 in fact one of the predictions I made 71:05 back then and I repeated that in my 71:07 original book a crash-proof was that 71:10 both Fannie and Freddie would in fact go 71:11 bankrupt and that's exactly what 71:14 happened what i wrote about was that 71:15 after the housing bubble burst and we 71:18 have this financial crisis instead of 71:20 learning from its mistakes and 71:21 recognizing its role in creating the 71:23 crisis the government would double down 71:25 on those mistakes that we would have the 71:27 easiest monetary policy ever that the 71:29 government would try to reflate the 71:31 housing market and the stock market 71:33 which i also wrote would go down with 71:35 with the housing market 71:36 I didn't know what they were going to 71:37 call it they ended up calling a 71:38 quantitative easing 71:39 I just knew that they were going to do 71:41 it and I knew that the result of that 71:43 would be dramatic that the crash that i 71:46 was writing about in that book and was 71:49 not the 08 crash that was the precursor 71:52 to the crash the real crashes the one 71:55 that still coming 71:56 it's the one that is the consequence of 71:58 all of the policies that the government 72:00 has pursued ever since the LA financial 72:02 crisis that gets us to your latest book 72:05 Peter the real crash in which your 72:07 warning investors that the real crash is 72:10 still yet to come 2008 was just the 72:12 tremor before the earthquake in fact you 72:15 say that Armageddon is inevitable 72:17 now the next government shutdown won't 72:19 be theoretical it'll be real home values 72:22 will plummet jobs will disappear credit 72:24 will dry up the dollar will crash in the 72:26 government cannot be depended upon to 72:29 provide basic services like police and 72:31 fire rescue to me it feels just like 72:33 it's 2007 early 2008 all over again I'm 72:37 screaming as loud as I can about this 72:39 looming economic hurricane that's just 72:43 off the coast and nobody can see it 72:45 coming and nobody wants to give me even 72:47 any credit even though I was right 72:49 before the average American is 72:51 ill-prepared for everything I mean that 72:52 is the consequence of all this bad 72:54 monetary policy about the moral hazards 72:57 of the United States government I mean 72:58 Americans are not prepared at all for 73:02 the events that are about to unfold and 73:04 if you go back and you look at the 73:05 footage of the Great Depression you see 73:07 how civil Americans were how how orderly 73:10 people waited in soup lines 73:11 no and bread lines whatever I mean 73:13 that's not America today I mean we have 73:16 a in America people who feel entitled 73:19 and are dependent i mean when they first 73:22 introduced welfare in the Great 73:25 Recession and they call that relief 73:26 people were embarrassed to take it 73:28 didn't want to admit it and some people 73:30 actually paid the money back they felt 73:32 so guilty about having gotten money that 73:35 they didn't turn I mean we don't have 73:36 that type of ethic 73:38 ah those type of rugged individuals in 73:41 America today we've got the sauce 73:42 society that thinks that they're older 73:45 living and when this collapse comes I 73:47 mean that they're going to be blaming 73:49 somebody and you know yeah it's gonna be 73:52 it's gonna be dangerous especially in in 73:55 some of our cities uh you know you see 73:57 how they react to minor problems i mean 74:00 even you see how they celebrate you know 74:02 when a team wins the Super Bowl or the 74:04 World Series you get riding and looting 74:06 imagine what would happen if there was a 74:07 genuine economic crisis imagine what's 74:10 going to happen in our cities if the 74:11 dollar collapses and then we have 74:13 shortages of goods because the 74:15 government imposes price controls or 74:17 what is rolling blackouts because the 74:19 governor's rationing power because 74:21 that's what the government might do I 74:22 mean we had gas lines in the nineteen 74:24 seventies because the government didn't 74:26 allow the market to function and they 74:28 put in price controls well you think 74:30 we're any smarter now 74:31 no I mean we're dumber so we're going to 74:33 repeat those mistakes so imagine what's 74:35 going to happen in this country when 74:37 there are shortages of basic goods 74:40 shortage of food shortage of energy so 74:42 give it to me straight Peter when you 74:44 factor in the nation's entitlement 74:46 programs you and I both know that the 74:48 national debt actually exceeds a hundred 74:50 trillion dollars tell me is America 74:53 already insolvent we're absolutely 74:55 insolvent I mean that's one of the main 74:57 reasons that the Fed kept interest rates 74:58 at zero for so long and even though 75:01 they've nudge them up slightly 75:03 they're still practically zero and the 75:05 reason for that is because America has 75:06 so much debt that we can't afford to pay 75:09 a market rate of interest if we were 75:11 forced to we would have to default and 75:13 of course you're right the actual bonded 75:16 debt which is now about 19 trillion and 75:18 it's rapidly heading to 20 trillion that 75:20 is the tip of an enormous iceberg the 75:23 true totality of America's life 75:25 abilities dwarf the official debt it is 75:28 closer to a hundred trillion when you 75:29 account to do 75:31 Peter's brilliantly timed 2006 trade 75:34 against the housing market inspired the 75:37 book and the Academy award-nominated 75:39 movie the big short but now a decade 75:43 after Peter first predicted the subprime 75:46 mortgage meltdown 75:48 he's issuing an even more serious 75:50 warning the warning concerns a category 75:54 five hurricane ready to make landfall as 75:58 you're about to discover the united 76:00 states federal government will soon be 76:03 forced into default in fact Peter says 76:07 in his latest bestseller the real crash 76:10 that Armageddon is inevitable so he and 76:14 I have joined forces to deliver an 76:16 important warning to Americans 4 2016 76:18 much of today's content has never been 76:22 released to the American public before 76:24 now including financial proof that the 76:27 federal government is already completely 76:30 insolvent last resort manipulations by 76:34 the Federal Reserve actions just taken 76:37 have now moved the day of reckoning even 76:40 closer the likelihood of a system-wide 76:43 failure over the next 12 months is very 76:46 real now I want to be absolutely clear 76:49 on something right from the top 76:51 nothing can prevent the crisis at hand 76:54 from occurring every emergency fiscal 76:57 measure has already been exhausted and 77:00 policymakers at the highest levels of 77:02 government have begun preparing 77:04 themselves and their families for 77:07 financial Armageddon many of them in 77:10 fact are following the strategies Peter 77:12 outlines in his book the real crash 77:15 there's still time for americans to 77:17 prepare to which is why i'm calling on 77:20 the one man who accurately forecasted 77:23 the 2008 financial crisis peter schiff 77:26 to throw mainstream America a lifeline 77:30 yet again 77:31 Peter's now-famous first book 77:33 crash-proof included very specific 77:36 strategies that end 77:38 the ordinary taxpaying American could 77:41 have used to make millions door in 2008 77:44 chaos but the stakes are even higher in 77:47 his latest book the real crash now a 77:51 word of caution before Peter and I peel 77:53 back the layers of the coming crisis be 77:57 ready to feel outraged troubled and 78:00 frankly scared 78:02 imagine a world where the banks have 78:04 frozen your assets and the government 78:06 can't provide basic services like police 78:10 and fire rescue 78:11 well you can still avoid becoming 78:14 collateral damage 78:15 Peter's urgent warning to Americans here 78:21 you sent a letter to investors dated 78:23 august 22nd 2006 and it you describe in 78:27 detail a housing bubble on the verge of 78:29 bursting even gave investors a blueprint 78:32 for profiting from such a crisis that 78:35 wasn't too short the homebuilders you 78:37 said the greatest opportunities would 78:39 line the downward spiral financial 78:41 center now needless to say you were 78:44 eerily prophetic but did you understand 78:46 Peter just how right you'd be not only 78:49 understand how right I was going to be 78:50 but I actually expected something much 78:52 worse to happen as a consequence and I 78:55 still expect that because what happened 78:57 in 2008 wasn't the end of the crisis it 79:00 was just the beginning but you know in 79:03 looking back at the prior bubble in the 79:06 stock market at the time I recognize the 79:09 difference between the stock market 79:11 bubble and the real estate bubble 79:12 because in the stock market bubble 79:14 people were speculating with their own 79:16 money in the real estate bubble they 79:18 were speculating with somebody else's 79:20 money it was the banks was the lenders 79:22 and so my blueprint for profit was too 79:26 short the mortgages themselves Wall 79:29 Street had created these packaged 79:31 products of mortgages particularly the 79:33 subprime mortgages which were bundled in 79:35 a way to create the illusion that these 79:38 mortgages were ultimately high credit 79:41 quality in fact many of these subprime 79:43 mortgages were rated triple-a but of 79:46 course some of them were rated much 79:48 lower than that and it was the lower 79:50 tranches that we were right 79:52 commanding shorting and in fact that was 79:54 the first letter in a series of three 79:56 that i sent out trying to get people 79:59 interested in the hedge fund that we 80:01 were establishing specifically the short 80:03 subprime mortgages and in fact trying to 80:07 find investors for my hedge-fund i 80:09 accepted an invitation from the Western 80:11 Regional Mortgage Bankers Association 80:13 which was a group of three thousand 80:16 mortgage bankers i went there in later 80:18 2006 to talk about the coming collapse 80:21 in the mortgage market and the housing 80:23 bubble and try to find investors for my 80:27 hedge fund and you can see on youtube 80:30 you can see the entire one-hour 80:32 presentation but what you can't see on 80:34 youtube is the workshop that I gave 80:37 subsequent to that speech which was 80:41 specifically on the hedge fund that we 80:43 had created to short subprime mortgages 80:46 and of the people who attended my 80:48 workshop 80:49 maybe there were 50 to 60 of the people 80:51 out of the 3000 that came only one 80:53 investor invested in that hedge fund and 80:57 you know they wrote a book about that 80:58 trade in fact more recently it turned 81:00 into a movie the big short but imagine 81:03 3,000 people having the opportunity in 81:06 the mortgage industry to falling prices 81:09 americans will have to suffer the agony 81:11 of rising prices a bit later Peter will 81:15 tell you why you should be stockpiling 81:17 ammunition as it stands now despite the 81:20 fiscal arson that US policymakers have 81:23 committed on its people the deception of 81:26 a strong dollars holding the past 18 81:29 months have witnessed a rally in the 81:31 dollar but the following chart unmasked 81:34 the illusion 81:35 despite Americans enjoying more 81:38 purchasing power than they've had in 81:40 almost fifteen years it's never taken 81:43 longer for a single unit of currency to 81:46 move through the US economy Americans 81:49 are scared business owners and consumers 81:51 alike and they're holding onto their 81:53 dollars you're probably scared to i know 81:57 i am that's why it's never been more 81:59 important to begin trading your 82:01 historically overvalued dollars for 82:04 other assets that 82:05 will soon enjoy dramatic valuation 82:08 explosions your dollars will never buy 82:11 you more than they will right now as 82:14 Peter reveals in this next section the 82:17 Federal Reserve just attacked America 82:18 again I don't believe they did it on 82:21 purpose but history will likely view the 82:24 feds latest measure as an economic Pearl 82:27 Harbor the real crash is now gaining 82:30 momentum with every passing second keep 82:34 in mind as you're watching that your 82:35 artificially strong dollars could make 82:38 you very wealthy as the crisis involves 82:41 Peter the federal funds rate has been 82:44 pinned near zero since the financial 82:46 crisis but the Fed just raise rates for 82:48 the first time since june of 2006 so the 82:51 Fed is finally taking action but do they 82:53 know that by raising interest rates 82:55 they've just unleashed an economic Pearl 82:58 Harbor 82:59 well I think they're definitely 83:00 concerned about what's going to happen 83:02 and i think their way under estimating 83:04 the severity of what they've unleashed 83:07 but the fact that they waited seven 83:08 years to raise rates shows you just how 83:10 worried they are in fact when 2015 began 83:14 the Fed kept assuring everybody that 83:17 before the end of the year the economy 83:19 would be strong enough for a rate hike 83:21 and they waited until two weeks before 83:23 the year ended their last meeting in 83:24 December to reluctantly nudge interest 83:27 rates up from zero 2.25 the point five 83:32 but they did so in the face of horrible 83:34 economic data it's obvious that the 83:37 economy is much closer to the next 83:39 recession then you know the early stages 83:42 of recovery which is normally when the 83:45 Fed begins to raise interest rates right 83:47 normally when an economy is emerging 83:49 from recession the Fed starts raising 83:51 rates when the economy is very strong 83:53 when you have a lot of pent-up demand 83:55 but here the Fed waited so long to raise 83:58 rates that the recovery is basically 83:59 over and the next recession is about to 84:02 begin and I think again when we begin a 84:05 recession with interest rates just 84:07 barely above zero there's not a lot of 84:10 room to cut them you say that all it 84:12 would take is for interest rates to 84:14 return to historical mean and that would 84:16 tip us into chaos that is is that still 84:19 accurate 84:19 well I think it would take even less 84:21 than that i don't know i think that it 84:22 would happen even before we got to a 84:25 historically normal level of interest 84:27 rates because we haven't historically 84:29 abnormal amount of debt service that is 84:32 the problem and of course the American 84:34 economy has grown as a function of debt 84:37 finance consumption but Americans are 84:39 broke 84:40 they can't borrow any more and pretty 84:42 soon our creditors are going to realize 84:44 that and they're not going to want to 84:46 lend anymore Peter now this next point 84:48 is going to scare the hell out of a lot 84:49 of Americans but you consider us 84:51 treasuries to already be subprime assets 84:54 at this point 84:55 absolutely you know one of the reasons 84:57 that I understood the problem in 85:00 subprime mortgages is because I knew 85:02 that a lot of the people in fact all the 85:04 people who were taking advantage of 85:06 subprime mortgages were using 85:07 adjustable-rate mortgages meaning that 85:09 the interest rates on their mortgages 85:11 could rise and in fact most of these 85:13 mortgages were started with what they 85:15 used to call a teaser rate where you had 85:17 an introductory very low rate of 85:19 interest on your mortgage and that meant 85:21 a lot of people who otherwise couldn't 85:22 qualify 85:23 we're able to qualify because they could 85:25 make the teaser payments but I knew that 85:28 eventually those rates would reset to 85:30 levels that the borrower's couldn't 85:32 afford and then they would end up 85:34 defaulting well the government has done 85:36 the same thing the united states 85:38 national debt is like one gigantic 85:41 adjustable rate mortgage to a subprime 85:43 borrower who is not going to be able to 85:45 pay if interest rates rise we've got 85:48 this teaser rate right now thanks to the 85:49 Fed but if interest rates go up the US 85:52 government is in the same position as 85:54 the subprime borrower with lots of debt 85:57 that they can't afford to pay Peter 85:58 China's Treasury holdings have fallen 86:00 about 200 billion dollars as it raises 86:03 money in support of its flagging economy 86:04 and stock market this would be the first 86:06 time the china is pulled back from 86:08 treasuries on an annual basis 86:10 scary isn't it I think it's the 86:13 beginning of a huge process it's not 86:14 just going to involve china but it's 86:16 going to involve all of Americans 86:17 overseas creditors particularly in the 86:19 emerging markets who were major buyers 86:21 of our debt when the Fed was doing 86:23 quantitative easing one and two 86:25 that's what kept the dollar from really 86:26 imploding I was all the dollars in 86:29 treasury that were being purchased by 86:30 our trading partners in order to assist 86:33 in their trade surpluses with the United 86:35 States but i don't think they're gonna 86:36 make the same mistake twice i don't 86:38 think there's going to be a currency 86:39 world war 2i think those countries are 86:42 going to surrender and America
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