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You -- that a five year high in interest rates are near record lows and so everything's great.
Stories are being written about how the housing market seemed to be improving so are we finally finally finally poised for an economic recovery.
Joining me now economic forecaster and publisher of the trends journal Gerald -- today.
Well Gerald markets high interest rates slow time to fabulous -- thing.
Well why ask me why we asked the IMF but I.
They just downgraded growth oh look what's going on over in -- votes yeah.
The role saying the same thing LBO that's the big word Leveraged Buyouts and why because money so cheap.
So that's what's keeping -- going they're dumping the central banks look what's going on the last time I was along with you.
We were talking about the Bank of Japan.
And the new prime minister all day right lowering interest rates right.
Forcing the Bank of Japan to keep printing more money printing more money -- -- the only thing that's keeping this alive.
Is all of the cheap money flowing in record low interest rate.
But we know.
You don't have to be an economist to know.
That it's all kind of monopoly money it's all been it's all Fiat currency there whether it's Europe.
Or Japan and I saw that do this past week about how Japan's gonna ramp up the parting presses and -- -- Is -- -- currency anywhere.
That you can count up.
Did he basing in front of our -- eyes this is an experiment.
That's happening in front of allies like we've never seen before.
You can make up the name -- you -- call it QE2.
Or QE3 you can call it how about this one held.
They'll throw long time refinancing operation how about.
A -- ongoing monetary transactions how about dumping a lot of dealt with his system to keep it alive all right.
But here's the other part of -- big Bernanke keeps saying listen I don't see any problem with inflation yet.
Either but he says this will lead to inflation things going I don't see it yet so and tell ICM and what I do I'm -- Put the brakes on.
Did you read the minutes that just came out for five years ago from the Fed.
Prior to the meltdown did hybrid I didn't they missed the whole day -- yeah they all of this -- so why should I.
Consider what someone who's been wrong as continually as he has.
Believe in what I listened wireless yeah it's good consistently wrong unless he did.
So but the market's high.
To me the markets always been.
Measure of corporate earnings just all really is.
And where -- you gotta put your money when interest rates is so -- you can't put in the bank.
So that's is keeping all of this going again.
The word -- -- -- LBO.
Yes it's the pump keeps going.
-- creating a new bubble what's going to happen when interest rates go up.
What it'll slow the economy down move but we're already slow we're already so are you worried about.
About deep relation borer.
But another recession or worse -- worse and -- again pick up the Financial Times pick up the Wall Street Journal pick up anything.
Read a headline currency wars currency wars currency wars currency wars that's -- on concerned about.
We'll be seeing a replay in time the crash of 1929.
-- Great Depression currency wars trade was world war.
The panic of -- Great Depression is a depression going on -- a lot of places around the world there's currency wars listened -- -- the head of the UBS former president of Deutsche Bank.
His words -- Davos is a currency war -- -- to Mervyn King the outgoing head of the bank of English.
Is a currency war listen to -- take a Brazil is a currency war trade wars are now leading up.
Japanese ex balance the trade deficit.
Is down at record levels they're they're they're they're.
-- way or off.
You look at everything that's going on trade wars on the horizon and then look around the world.
Mali Libya Syria yen in Bahrain riots in the street in Spain in Greece world war that's my concern.
How what -- -- currency wars how does it's what happens when it stops who.
Who stops and have loses stuff go back to -- go back and look what happened during the the thirties.
It was a currency war going on.
You have them is the bank -- is that people in Japan it will lowering interest rates lowering interest rates.
And that devalues your currency at an injury like -- on what I'm right I'm right there with -- generally it it's fantasy currency in my in my book exact so.
One reality hits.
Who knows win.
But what will happen.
Again when I'm concerned about his world war look how they're ramping up now to go into North Africa.
Yeah yeah -- for com group has thirty fled the US troops in 35 countries they just failed in Afghanistan.
They failed in Iraq and they -- can call what do want all the political atheist I don't tell people what to believe this is the way -- -- it's so I don't say you know take for yourself.
Now they're gonna win over there they destabilized.
Libya you heard -- secretary of so state Clinton.
Saying recently at the hearing what a disaster it's -- in -- who caused it litigate -- self.
It was humanitarian mission.
Great job everything they do they fail act.
Not only -- education how about health care.
How about the war on drugs and now we just saw the Fed minutes came out they came out on -- Friday night.
He reported on Saturday the least reported day of news when -- by going to pay any attention they failed every one -- the Fed people fail so what do you do with their money.
I still buy gold.
And I still -- again I don't give advice is what I do -- you asked me.
And I also them by real estate never bored real estate before I'm up there colonial Kingston about two hours from here.
And I've been -- historic buildings because I'm getting I'm getting loans so cheaply.
And I know -- debasing the currency somebody -- paid back with cheaper.
You're using non monetary assets as you're going non monetary in other words non monetary art assets via something you can -- hand on.
And again look at real estate right now look at the shortage of inventories down to eleven year -- idea why because a low interest rates Gerald -- -- always great deducted that -- at a much.
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