bumped into trouble and there is only so much in the rose cue pill. we know nothing in our rescue pill here so what happened? guest: you are right. in cash to some degree that becomes a number of the like the money supply in the united states. that is why there was never a risk of default. we can always increase the money supply to pay our debts. what people do not want to tell their citizens if you increase the money supply you debase the currency. that means in our case, say, for example, oil prices go up, gold, commodities, other things go to the sky because they trade in dollars, so there is a lack of cash but the ways to fix it or possible but there will be other effects that governments do not want did deal with. good stuff, i think. good to see you. forget geithner and why the wall street learn end says all the president s money men should be goners, former chairman of
slowing economy than anything else, and take that away and we are pathetic. guest: well, we border line into thetic and if we get negative g.d.p. which i think is possible in the 4th quarter we are pathetic because here is what will happen if we open up the 401(k) statement they will open up the broker s payment in the third quarter and be freaked out and see home values fall, interest rates hopefully do not rise but, look, if you look at the economic growth of the united states and the debt to g.d.p. ratio and you are talking about g.d.p. possibly going down in the 4th quarter that will make the debt issue worse. neil: world wide what was noted was the lack of cash, look what is going on in france and we know italy and portugal have bumped into trouble and spain
going? guest: we are stalled. the united states economy is the engine of the world and germany realizes it cannot singlehandedly pull greece, portugal, spain, italy, ireland out of the whole situation. the united states under present policy cannot pull the rest of the western economy out of the hole it is in and this is the crisis here that essentially . neil: there is not enough money to go around you had to bail out everyone in jump who is in trouble and there is not enough euros in the world. guest: or enough dollars, we have a flat line economy and we need a president who understands things like how deeply damaging corporate tax rate is. neil: how does europe fowl about the feel about the eur? guest: cleated. they got the american people, they thought they always wanted who had a scandinavian view of the role of government and they realized when the united states has a scandinavian view that is hellish situation for the real
about that. your point we return to our old ways and the finger pointing returned to washington and it is the fault of the tea party and back and forth so if this was supposed to draw us to action it didn t. guest: don t you think something slightly pathetic in smart men who claim to be able to run the million try trillion dollar enterprise that is the u.s. government saying it is not us, it is the guy that runs the hard way store over there he goes to a tea party rally and the lady who owns the hair salon they have caused it. do you understand how pathetic the president of the united states is? neil: have you seen the lady who owns the hair salon? guest: what has geithner ever run. neil: that is what they are asking, should geithner go or the whole economic team should they go. if everything stays in plates and we don t make fundamental changes and the fighting continues in walk, where are we
moody s today saying that it is going to continue to monitor the situation of this country and economy and if it does not improve we could see another downgrade from the company as early as 2013. neil: ever wonder why the investor go? they are running for cover. and a lot of them running for gold topping; $1,700 for the first time ever swinging $61 today. alone. and now to the rapid move. what is going on? guest: incredible move but what really is concerning is the clash of the metals. we saw gold and silver explode today as traders ran away from the uncertainty of what was happening in europe and what the downgrade would mean but more concerning is looking at the other precious metals and what they say about the global