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Jan. 13, 2012 - InfoWars Nightly News
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Welcome, my friends.
Here we are, Friday the 13th, 2012, on this Friday edition.
Coming up after the first news that we're going to cover, the head of Euro-Pacific Capital, always an informative guest, Peter Schiff, will be joining us to look at the economy, the Iran situation, Ron Paul surging, and a lot more.
But first, let's look at the situation in the Middle East, namely the Middle East bordering Central Asia and Persia or Iran.
Ex-Israeli intelligence officer says Pearl Harbor-style attack will be pretext for war with Iran.
Jerusalem Post article implies U.S.
will stage provocation to justify military assault.
Former Israeli intelligence officer A.V.
Perry writes that a surprise Pearl Harbor-style Iranian attack on an American warship in the Persian Gulf will provide the pretext for the U.S.
to launch all-out warfare against Iran.
Continuing with that situation, here is the report out of the Jerusalem Post.
The looming war with Iran.
You mean the buildings getting blown up?
Military bases being blown up?
Missile bases being blown up?
Scientists being assassinated?
It's already going on.
And Iran is saying they're going to respond back against Israeli targets.
And if they can prove the U.S.
is involved, that the U.S.
will be targeted.
And then we're off the races, and the TSA has a good excuse, I guess, to stick their hands down your pants and set up checkpoints in America.
Putin says he's confident Israel will push U.S.
into Iran attack.
That was quite an announcement that came out in major Russian newspapers today, like Interfax, but got almost no attention here in the United States.
It goes on to say, talk about Iran creating an atomic bomb by next week.
We have heard for many years, he said, instead of making sure Iran does not develop a nuclear weapon, the United States is attempting to overthrow Iran's leadership using all available means to make the country into a loyal partner.
And that is certainly what's going on.
Not that I'm saying Putin is some type of saint, but that certainly is the truth of what's going on here.
Let's continue now, shifting gears out of the World War III news to Xbox 360.
Workers reportedly threatened mass suicide.
Another one of the big Foxcom Laboratories there in China.
And I want to go ahead and read over some of this article here.
Xbox 360 workers reportedly threatened mass suicide.
A dissident website is reporting 300 employees at a plant in China that makes the Xbox 360.
Threatened earlier this month to commit mass suicide for being denied promise compensation.
The report an anti-government website China Jasmine Revolution.
via We Want China Times, claims that the protest took place January 2nd at Foxconn plant in China.
A tragedy was avoided after the town's mayor got involved and talked the workers off of their threat off the roof, but now the suicide nets have been put back up.
This has happened at several Foxconn facilities, including one that makes the iPhone.
And if Americans would just pay A few dollars more for their iPhones.
I've seen the different numbers.
These people could have a living wage.
But see, everything has to be driven down to the lowest common denominator because this is economic warfare.
Not just against the Chinese citizens, but against American citizens having our industrial base destroyed.
No one can compete with the slave labor.
And there's just been massive suicides all across China related to the working 18 hours a day, not being able to sit down, just being absolute robots, breathing all these toxic fumes.
Just amazing.
So we're going to continue to monitor that.
Microsoft has rushed in and I guess offered them a few extra pennies so they could actually feed their kids so they won't commit suicide.
Here's another report on it.
One million workers, 90 million iPhones, 17 suicides.
Who's to blame?
Now, I notice our media does cover this, and they should cover this.
But why not cover the fact that we have seven times the rate of suicides in returning U.S.
military forces than we've ever seen before?
There's always a high rate of suicides, but these are off the charts.
It's gotten some attention, but very, very little.
We need to ask ourselves, why is this happening?
Well, they're serving many, many tours, more than they should.
They're exposed to deadly DU, given toxic vaccinations, and can't live on what they're paid.
And a lot of them morally think that what they've done in the wars is wrong.
Continuing here, loan shark firm targets students 4,000% interest offered as alternative to student loans.
And you're seeing more and more of this.
I mean, just a few decades ago, loan sharking in England and the U.S.
was illegal.
But it's illegal if Vinnie down the street does it.
But as long as big banks and groups are doing it, well, it's O-A-A-OK.
Some credit cards in the U.S.
annually have 70-plus percent interest.
And the big megabanks get your taxpayer money at zero percent interest and then loan it out.
If that isn't loan sharking, I don't know what is.
But the world government's run basically by Ponzi scheme, money-changing loan sharks.
So what do you expect?
Shifting gears into Congressman Ron Paul, away from our little friends the loan sharks.
South Carolina, Ron Paul surges past Santorum into top tier.
In most states he's in first or second place.
But in South Carolina, he'd been lower than that.
He's now risen.
Ron Paul has surged past Rick Sam Tormann to the top tier in South Carolina, getting a staggering 11 percentage points in the last week alone, declined a third with a total of 20%, with Mitt Romney's first-place position at 29% looking increasingly vulnerable.
The parrot, dinosaur, corporate whore, prostitute, media whore, Decepticon media has basically gone into cardiac arrest and is just going after Ron Paul at every level.
And the public trying to mind control you saying you cannot defeat the globalist, resistance is futile, Ron Paul cannot win.
But he's swimming like a salmon upstream against this, and just continue to support Ron Paul, because we're causing a revolution of awakening and issues here.
Whether he wins, loses, or draws, we all win for liberty, and Ron Paul is our champion.
So support him financially, pray for him, and spread the word and get involved in your state, because Ron Paul is a gateway into liberty, and he is a modern Thomas Jefferson.
All right, let's go ahead now, moving away from Ron Paul to the wars that he has been decrying.
United States Marine Corps investigates desecration video, Afghanistan.
Hamid Khorzai calls footage simply inhuman.
And, of course, there's the footage of the Marines urinating on some dead people that they reportedly killed that are reportedly Taliban.
And, of course, I've heard talk show hosts defending this.
You understand this is going to cause the Muslims over there to get mad?
As a vendetta, because they take this type of insult very seriously, and that they will now target more U.S.
troops right when they're trying to get a ceasefire going and a deal.
The neocons are all over the radio laughing, saying it's great.
We're bankrupt, folks.
We're getting our butts kicked in Afghanistan.
We're there so the government can ship 500 billion in opium out a year.
It's not funny.
You know how many U.S.
troops are going to get killed because of this?
But I'll say, peeing on dead bodies is nothing compared to shooting kids and then laughing about it.
Or killing people's dogs.
But still, it's arrested development.
And it's indefensible and it's stupid.
Alright, I'm done talking about that, but it does make me think of that apocalypse now where Colonel Kurtz is saying, you know, we censure our pilots for riding F-U-C-K on the side of their airplanes, but then we train them to drop napalm on children.
So, it's also much ado about nothing in the final equation because it's a way that the Defense Secretary can look like he cares about people he's killing.
We won't pee on you when you're dead, we'll just kill you for no reason, for your opium.
Continuing, France's downgrade by S&P losing AAA status report.
It's now equal with the United States.
Also, five European nations to be downgraded now.
They're saying after this initial report on France.
Also, MF Global may not be able to pay back clients.
Former customers of MF Global Holdings collapsed brokerage.
We're disappointed to hear Thursday that trustees hunting for funds missing from their accounts has no immediate plans to transfer money to them.
Well, it's well known it went to London and JP Morgan, and it just goes on to tell them that, hey, that's just the way it is, because Don Corzine says so.
All right, that is it for the initial news on this Friday the 13th, 2012 edition.
We do have a quote for you, though.
Every night we have a Patriot quote or we have a globalist-sniveling New World Order quote for you here on the Nightly News.
And here is that quote.
From Abraham Lincoln, I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.
Corporations have been enthroned and an era of corruption in high places will follow.
And he went on to describe how that would basically cause our country to collapse.
And the money power, that's the Federal Reserve of the country, will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed.
And we certainly now are at that point.
I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of a war, Abraham Lincoln.
And regardless of what side you're on in that war, the British were manipulating both sides.
And Abraham Lincoln stepped right into the trap.
But he did say no to the Rothschild loans at 30% interest and said, I'll issue my own Lincoln greenbacks that he got killed for.
And then Kennedy also Reissued some of those greenbacks right before he was killed and issued an executive order to begin basically Dismantling the private Federal Reserve.
And one last little tidbit here after the quote.
Judge denies lawsuit.
Rick Perry, others remain off Virginia Republican primary ballot.
It's only Ron Paul and Mitt Romney that meet the requirements.
It's only Ron Paul who's a choice, but he's also a serious candidate actually on the ballot.
All the others are spoilers to make sure that Ron Paul doesn't win.
Sorry, traitors.
We won when the first time we started fighting back because resistance is victory.
Now, you saw a few nights ago Dana Bash, who won the Skeksy Award for Globalist Sellout, all part of the corporate media whore, sellout, prostitute, panoptagon.
You saw her just after Ron Paul.
He was forced out of a diner by 150 Media.
They got in his face.
And then she said, a lady's mad at you for not talking to her.
And he said, well, she ought to be mad at you for forcing me out.
This is a junkie question.
And you see her just look at him like a wolf looking at a little rabbit it wants to eat.
Well, now everywhere she goes, people are getting in her face.
And she's another one of these establishment types that thinks that she tells you what to believe.
She tells you what to think.
And if she says Ron Paul can't win, Or if she tells you to get in the ditch and die, you're supposed to crawl over there and slit your throat.
Because Ms.
Bash is God!
Here's the clip.
We'll be back with Peter Schiff.
Excuse me, ma'am.
Are you not concerned about the feds who are ripping off our children and destroying our schools?
Even when I'm 22 years old, I do have this kind of debt and I don't think I'll do it.
Excuse me, ma'am.
After what you said, you're worried about all of us.
- We're gonna have this kind of debt announced on doors that you can't, I used to do it. - And after what you said, you're worried about long hauling, you're not worried about the federal assault lifting all our children.
- I'm your age, I'm not in here.
You don't speak like that about my presence in the Constitution.
I didn't say that, but you did.
Hopefully you'll give them a fair shot now.
That'd be nice.
The frontrunner status and the unelectable status are something that could change in a moment, so I would say don't use labels like that.
Give me one chance.
I'm jacking up what I can.
Second, ten.
So grab him.
Yeah.
Five minutes.
I saw a couple of people a day ago when the woman was slowly complaining about him not being able to say command when the lights are on.
Aren't there a lot of crossing issues?
I mean, my God, all the things that we find in this world are so, so, so, my God.
I'm really happy.
I'm happy.
I only do a lot of coverage for 24 hours.
There's just one little piece of it.
That was a terrible thing.
Yeah.
Well, you feel that way.
You feel that way.
You feel that way.
I just want to know, who's behind the CNN network?
Who's paying you guys?
Who's behind all of this?
I just want to know who's behind the CNN network, who's paying you guys entirely?
Who's behind all of it?
I think when you provide the coverage, who are you really representing?
Objection!
Objective journal.
Yes, call.
How do you respond to the planner that they've made for Dr. Paul?
I don't, I've not seen it.
Actually, I've been seeing it.
Do you want to get a picture?
You don't plan to, Dr. Paul.
We're very, very objective.
Thank you, though.
Good luck to you.
See the email.
It's actually a little scary.
You probably know when as fair as I am, but they don't see.
I actually say it's almost like the Arab Israeli conflict.
Oh, my God.
So they don't see anything else?
Yeah, exactly.
You get it.
Be careful.
Can I talk to you one sec?
One more time.
Well, it's the Friday 13th edition, as I said earlier at as I said earlier at the start of the show, and
That's been unlucky for France, downgraded to the same level as the U.S.
We've got financial expert and the head of Euro-Pacific Capital, Peter Schiff, joining us.
He's also one of the advisors to Ron Paul on Ron Paul's economic uh... policies and he joins us but today to talk about the state of the u.s.
economy the world economy give us his take on what possible war with iran i could mean and what he sees developing uh... his prognosis for twenty twelve peter great to have you here with us thanks for having us well so much happening uh... or out of the gates ron paul Well, he's doing good.
Look, he's got a lot of momentum coming into South Carolina.
You know, I think I'm headed down there myself for the debates next week.
But, you know, he came in first place in New Hampshire.
You know, he's only one of two candidates to actually finish in the money in both those early primaries.
He came in third in Iowa and second in New Hampshire.
So other than Mitt Romney, no other candidates finished in the top three both times.
So, you know, there's a lot to his candidacy that the media continues to overlook.
Do you think it's backfiring on the dinosaur media that they continue to say he can't win, he can't win, but that he, like a salmon, is swimming upstream against that tide?
Maybe.
I mean, maybe there's some rebellion in there.
The more the establishment tells us he can't win, maybe the more the anti-establishment mood wants to go towards Ron Paul.
And this, you know, is going to be an anti-establishment type election.
The country is in a lot of trouble because of establishment type candidates.
And that's really all you've got now in the Republican field.
Other than Ron Paul, it's business as usual.
And even if it means that, you know, we don't have a Barack Obama, even if one of the other Republicans can beat Obama, I mean, how are they any different than George Bush?
And, you know, so we got into this trouble with Bush, you know, at the helm.
You know, we're not going to get out of it with, you know, one of his surrogates.
We need to have somebody that actually understands the problem and is going to take a different approach.
And the only one who would do that would be Ron Paul.
Peter, let me throw a curveball at you.
Let's say that people woke up, there was an election fraud, Ron Paul won the nomination, beat Obama.
Knowing his economic policy, because you helped him develop them, what do you think would happen if he actually got in?
Because the power structure obviously wouldn't even let him overnight try to change things.
What would we expect Well, first of all, if Ron Paul actually won the White House, those votes wouldn't be cast in a vacuum.
I would imagine a lot of other sympathetic candidates who would also be running in the House would be elected with him, so he would probably have more help.
And really, all he needs is a third of the House.
To be with him, because then he can veto almost everything.
And, you know, Congress can't spend money if they can't override his veto.
So he would have a lot of power to reign in government as the president if he can just get a little bit of cooperation out of Congress.
And if he is going to get elected president, people are going to be voting for congressmen, too, that might be sympathetic.
You know, I think it's interesting.
We just got the minutes.
From the Federal Reserve going back to 2006, showing that nobody at the Federal Reserve had any idea that a financial crisis was coming, that there was a problem in the housing market.
I had just finished writing my book.
had a profit from the coming economic collapse.
So I knew it was coming.
I know Ron Paul knew it was coming.
He was warning, he was warning Ben Bernanke.
He was warning Alan Greenspan that this crisis was coming.
So we gotta get rid of the people who know nothing about economics, nothing about finance, and put somebody in place who actually understands these problems.
Because otherwise we're never gonna solve them. - Well, well put.
With the captains we have running things now, more and more, I mean, here's a headline out of Forbes, the worst economic recovery since the Great Depression.
They're calling it the greatest recession.
From your research, what is the real state of the U.S.
and world economy?
And on the current course, where are we going?
Well, the U.S.
is a disaster.
I mean, we're not recovering from anything.
We are temporarily getting some phony GDP improvement because we're borrowing money and spending it.
We got our trade deficit that came out today for November, you know, moved up 10%, almost at $50 billion for the month of November.
Spending more borrowed money on imports is how we got into trouble.
And all we're doing now is buying time with borrowed money.
The thing that's propping up the US economy is all the problems in the rest of the world.
I mean, somehow we're benefiting from the fact that there are so many problems in Europe.
That by default people are simply buying dollars in treasuries even though we actually have more problems than Europe.
It's just that nobody is worried about our problems yet and so we benefit from Europe's problems because we can borrow even more money cheaper.
But we have to remember the reason Europe got into trouble is because they borrowed too much money and now they can't pay it back and interest rates are rising.
Well, we've borrowed more.
We can't pay it back either.
And when interest rates finally rise in America, we're even more vulnerable to that than Europe is now.
Obviously, nobody can tell exactly the month, the day, the week, when things start to really unravel faster from just this slow devaluation of global currencies.
But undoubtedly, we're going down a very dangerous road.
Something big is happening, as Ron Paul has said.
What will it look like as things basically unravel?
Well no one knows for sure, but I mean you can look at some of the riots that we saw in Greece or in Ireland when the governments try to make even trivial cuts in benefits.
The truth is that we need much more substantial cuts in Europe than the ones that the rioters were protesting.
So think about how it's going to be in the United States.
We have an entire nation of dependents.
We have so many people who think they're entitled to something from somebody else.
And when the truth comes out that the government has made a bunch of promises that they can't keep and the government has to fess up, a lot of people are going to be pretty pissed.
And so it's going to be a very difficult environment.
There's going to be a lot of upheaval.
I think it's going to be not just the very peaceful protests that we saw with Occupy Wall Street.
I think it's going to be on a much bigger scale.
And I think the media, particularly the Democrats, keep feeding this class envy, this vilification of capitalism, of the 1%.
And I think when things really get bad, you know, tempers could really heat up, especially if it means that, you know, we're waiting in lines to get gasoline or to buy food because there's so much inflation and the government has price support.
that you can't get those things.
Tempers can really heat up and people are going to be looking for someone to blame.
Unfortunately, they might not blame the government.
They might blame the people who they perceive to be the threat in the private sector and that's going to be a very scary situation.
Well they are making it an us against them system, like the general population against Wall Street and George Soros and others and Obama tried to cast that as anybody making money, anybody who's a capitalist is bad, when really it's three groups.
You've got the big dependent groups, then you've got those that just want to work in the free market.
And then you've got the rich, the poor, all in between.
And then you've got the crony capitalists, as you know, who do work with government, and they're trying to scapegoat capitalism and the free market, knowing that it's going to boomerang and they're going to use this giant dependent class to once and for all overturn what's left of the free market and transfer it to a planned economy.
How do you translate that nuanced crisis we face to a general public who, on average, I mean, there's two Americas.
There's folks that do know it's about working hard, but there are a lot of people, believe me, I got a lot of employees as well, not as many as you, who really sometimes think that they are entitled to everything.
Yeah, well, first of all, we already have an economy with a lot of central planning.
I mean, they don't plan everything, but they plan a lot.
I mean, the government wants us buying houses, and so they tweak the laws to encourage us to do that.
There are a lot of things the government tries to micromanage with the tax codes, with what it chooses to subsidize and what it chooses to penalize and how the regulations are.
So we've already moved in that direction, and that's a big part of the problem.
We need to have more market forces at play to have a more effective allocation of resources.
I forgot the other part of your question.
Well, no, it's just how do we communicate to people that don't understand capitalism that getting rid of it doesn't work anywhere in the world?
I remember, and it's also, you know, it's not just Wall Street.
General Motors and Chrysler, they're not Wall Street.
They got government bailouts.
So a lot of it is Wall Street and the banks.
But the problem isn't that Wall Street bankers accepted bailout money.
Because anyone is going to accept money.
If the government is giving away money, you're going to line up to get your share.
So I don't blame the institutions or the individuals for taking money that the government is handing out.
I blame the government for being in a position to hand it out in the first place.
Exactly, if you didn't have the government power to have that big auction, you wouldn't have the feeding frenzy in there.
Of course, so you've got to go after the government.
You can't just go after Wall Street, because that's a symptom of the bigger issue.
The problem is the government.
And yes, Wall Street is buying off the politicians, but that's because the politicians are for sale.
But we put them in that situation.
We gave them the stuff to sell and the ability to do it.
We've got to take the power away from the politicians.
That's what we need to protest and understand that the problems are emanating from Washington.
That's the source of all the problems.
And until we take care of that, it doesn't matter what we do.
We're just tinkering around the edges or rearranging the deck chairs on the Titanic.
We're still going to sink unless we get to the fundamental Well, sure, if government wasn't, you know, 40% of the economy or whatever now it is, or controlling 40% or more, then there wouldn't be this big auction.
And that's right.
You cut off the head and it's in Washington, D.C.
It's not on Wall Street.
Well, sure, if government wasn't, you know, 40 percent of the economy or whatever now it is, or controlling 40 percent or more, then there wouldn't be this big auction.
And that's right.
That's why Wall Street goes there and it's allowed now these big, you know, mega titans to form.
It's a very sick situation.
Obviously, though, for now, people are starting to listen to what you and many others have talked about, but it hadn't gotten to the policy level yet.
If they don't start correcting things, what will happen?
Look, eventually we're going to have a huge financial crisis.
I mean, people think, what do you mean eventually?
We just had it.
We just had to warm up.
I mean, we had, you know, the overture of the opera.
I mean, believe me, it's going to get a lot worse because everything we did To solve the problem, solve nothing.
It compounded the problem.
We've delayed some of the pain, but the pain is going to be far more agonizing now because of what we did.
I mean, we are going to have a collapse in the bond market and or the currency market or, you know.
And when that happens, it's going to be very painful for average Americans.
I mean, right now, if you still have a job, the U.S.
economy, it's not that bad.
But we get a collapse of the dollar, we get runaway inflation.
Having a job is not going to be much of a consolation if your paycheck doesn't buy anything.
So things are going to get very bad, very fast when this thing starts to unravel.
And all it takes is the world to figure out that this whole thing is an illusion, that inflation is a lot worse than the Fed maintains, and that the Fed is powerless to do anything about it without toppling the U.S.
economy.
Because they can't raise interest rates.
We have got so much debt right now that any kind of increase in interest rates to even levels that would be historically low.
I mean, right now they're historically, you know, ridiculously low.
But if we just went back to a historically low level of interest rates, we're too broke to afford it, let alone normal interest rates or the high interest rates that ultimately we're going to have to live with.
So in order to avoid that, the Fed is keeping interest rates as low as possible.
but that has screwed up the economy more and more because we go deeper into debt.
You know, we take all that, all those free drugs and we use them because they're free.
But meanwhile, you know, we build up a bigger problem because of that.
And ultimately, we've got to go cold turkey, which we're going to have to do if we want to avoid the death by overdose.
It's going to be that much more difficult.
So it is going to be a real crisis.
I mean, that I mean, that was a small one.
And the government was able to bail people out right during the last crisis.
There's not going to be any bailouts in the real crisis because the government is going to be failing, too.
Who's going to bail out the U.S. government?
I mean, nobody.
There's nobody there who's capable of doing it.
And if the U.S.
actually goes down publicly in a hard crash, can you imagine the confidence-destroying shockwaves that's going to have and the bedlam that is going to break out from that?
Oh yeah, and you know, as I said, there's only two choices.
Either we have massive inflation that destroys the economy, or we avoid the massive inflation with big increases in interest rates and that destroys the economy.
But there's no way around it.
I mean, at least if we destroy the economy without destroying the dollar, then we can rebuild a viable one.
Because what we have now has to be destroyed eventually because it's an abomination it's not a real genuine economy all we're doing is borrowing money and spending it on stuff and that's not viable in the long run so the sooner we can address these problems the better but you know it's not going to be easy to do it and we have to atone for you know a lot of sins.
Ron Paul understands this and the establishment doesn't want to go in that direction because they get first use of that 0% money and then get to loan it out But they are basically like the snake consuming itself in the endgame.
It's terrible.
How do you think then the constellation of special interests that control Washington and Europe You know, knowing, researching what they're going to do so you can make your financial decisions.
How do you see them responding?
Because I see them getting ready for collapse, civil unrest, trying to start wars.
They might be, you know, if they're smart enough to understand that's going to happen.
But, you know, they're just trying to get by election cycle to election cycle.
They just want to make sure that they're the ones in office, that they have the power, and they're going to deal with these crises, and they're going to use them as an opportunity to grab even more power and more wealth for themselves, and they're going to blame it all on capitalism and the inherent failures that we need to rely on government to solve.
Ultimately, the real winners, Alex, of this are going to be the emerging markets, countries like China, that are wasting a fortune, propping up our economy, trying to keep us consuming things that we can't afford.
We are really screwing up the global economy.
We are exploiting bad monetary policy.
So you agree with Jim Rogers on that?
Yeah, I mean, that is going to be a giant, you know, like a huge new revolution outside the United States.
When the U.S.
finally collapses, people think, well, gee, the whole world is going to suffer.
No, the world is suffering now.
The world is suffering the cost of having to support us, having to keep lending us money, having to keep supplying us with goods and resources that other people are doing without.
But in the short term, do you agree it's going to have some wild shockwaves?
Excuse me?
In the short term, do you agree it's going to have some shockwaves, though?
Well, it's going to have shockwaves, but some of them are going to be very positive for the countries that have been lending us money and supplying us with goods.
I mean, their people are suffering now.
I mean, you always hear people talk about the fact that Americans are living beyond their means.
And a lot of people agree we are living beyond our means.
But how is that possible?
It's only possible because somebody else outside of America is living beneath their means.
And so if we stop living above our means, that means the people who are living beneath their means now can see a big increase in their standard of living because they can start consuming commensurate with their own productivity.
So many people are going to benefit when this economic pecking order reverses.
We're way up on the top of the pyramid right now, but we're not going to stay there because we don't belong there.
We got to the top because we were the freest people.
We were the most productive people, and we did that because we had the smallest government that didn't regulate, that didn't tax, that didn't micromanage.
That's not the case anymore.
We don't have that comparative advantage in freedom.
We're a high-tax, high-regulated society, and we're mired in debt, and we're simply living off of our past glory, but we don't deserve the status that we have, and eventually, you know, reality is, you know, the perception is going to match the reality, just like the stock market bubble Burst, because it wasn't what people thought, just like the real estate bubble burst.
This U.S.
bubble, this government-treasury-dollar bubble is going to burst, and when it does, I mean, we're going to have to deal with the consequences, which are going to be horrific.
Well, I agree with that.
I've only got a few more questions, Peter.
What's the time?
I mean, I know you keep saying we don't know the exact times, but if you had to dead reckon, when will everybody basically know that this process you're talking about has played itself out?
Well, when the dollar is no longer the safe haven, when treasuries are no longer the safe haven, I don't know how much longer we have.
I think that this is the time period where all the highly indebted sovereigns are having to deal with the consequences of their profligacy.
You're seeing it play out in Europe first, but it's going to happen for the U.S.
Japan has got debt problems.
There are a lot of governments that have borrowed too much money And they haven't had to deal with the problem, and now it's happening.
It started in Europe.
Just like if you remember, how did the mortgage crisis evolve?
It started in subprime.
And at the time, all the experts, including the Fed and the Treasury Department, said, don't worry, it's contained.
It wasn't contained.
It just simply moved up the food chain.
It consumed all the mortgages, including the prime mortgages.
Because the problem was the same throughout the mortgage industry.
It wasn't simply, you know, the subprime market, but that's what a lot of people thought.
That's the same thing with sovereign credit.
So why have they lowered France to our level in credit rating, but then they still say the U.S.
is better and everybody floods here?
Is it because the United States has the most nuclear weapons?
I don't think that has anything to do with it, but yeah, it's interesting that the dollar is down today, treasuries are up, because people are worried that France just got downgraded.
They got downgraded to the same level that America is already at.
And the truth is, we don't even deserve the double A plus rating that we currently have.
We should have been downgraded many latches below that.
I don't even think we should have an investment.
Great.
I think our debt is junk.
There is no possible way we can repay it with real money.
Sure.
Maybe you missed my point.
I mean, obviously the giant U.S.
military, though, in the final equation, is probably why our rating is still high.
I'm not saying we deserve that, but obviously that fact...
I don't know how our military has anything to do with our credit rating because if we end up printing a bunch of money to pay our bills and we screw our creditors, it doesn't matter that we can blow them up, we're not paying them back.
I mean, there is no feasible way that Americans should pay back their debt.
Okay, then why do we still have that high rating if it's junk as you say, which I agree.
Well, we haven't.
Look, the S&P put AAA ratings on mortgage paper that went to zero.
I mean, I think there's a lot of politics involved with these rating agencies.
I mean, the government sanctions them.
There's not that many companies that are even authorized to rate securities like S&P.
So I think they're under a lot of pressure not to anger the governments.
And so I think they give them too high a rating for that reason.
But look, a lot of people just don't want to admit the obvious or they're oblivious to it.
Just like I said earlier, the Federal Reserve and all their expert economists were on the cusp of the greatest collapse since the Great Depression and these experts had no idea it was coming.
I mean, that's the equivalent of a weatherman not being able to see a Category 5 tornado when it's 50 miles off the coast.
Yet, these clowns are still in charge of making economic policy.
So, if the Fed economists couldn't figure it out, why should the S&P or Moody's economists be any better?
I mean, they're getting the people from the same sources.
Let me add this final proviso and get your take on it in closing with a brief mention of Iran and what you think about that.
Look, if the State Department, if these major corporations based in the U.S.
have been buying off politicians, paying people off, giving them sweetheart business deals, the world is holding all these dollars.
They know they've been conned, they know they've been ripped off, they know they're being devalued, but they realize if they stop propping up the U.S., They'll really be devalued.
So they're so deeply involved in the Ponzi scheme, just like somebody on Social Security, even though it's going to bring down the whole system, they can't extricate themselves out of it.
You always can.
I mean, sometimes you think you're in a trap where you have to throw good money after bad forever.
But I think when our creditors really take a look at this, and I'm sure they already have, you take China, for example, and if China has $2 trillion in change, worth of our worthless IOUs, and they think, gee, we can't afford to stop propping them up because we'll take a hit on this $2 trillion.
Well, that means they're going to have to have $5 trillion.
That means they're going to have to have $10 trillion.
They're going to start thinking about the dollars that they're going to own in the future, not just the ones they already own now.
It's better to take a hit on $2 trillion than eventually take a hit on $10 trillion.
So they're going to start to look at it because we are asking them to really, really back up the truck and up the ante and buy in much larger quantities.
And of course, it's money they're throwing away.
They're not really lending us money at this point.
They're giving it to us because we can't pay it back.
I mean, yes, they can use their interest payments to buy more bonds, but they can't use it for something that actually benefits the Chinese.
They can't take the money and spend it on something they want.
All they can do is keep loaning it back to us, and we buy the stuff that we want.
But it's not helping the Chinese.
It's amazing.
Well, very interesting points, and the clock is ticking on This situation, it is a time bomb, obviously.
In closing, any thoughts on Iran and how those escalations?
Look, it's just a shame that we're in so much trouble financially.
We stir up so many hornet's nests over there in the Middle East and just make more problems for ourselves to have to deal with.
We're already broke.
The last thing that we can afford is more military expenditures when we're already spending too much money on it as it is.
I mean, that's where Ron Paul's got it right, you know.
I think other than Rick Perry, he's the only Republican candidate that actually served in the military.
All these other chicken hawks are out there talking about we need more.
We need to go to war when none of them actually are served.
But Ron Paul understands what it means to defend his country.
And he doesn't want to just escalate overseas wars that actually make the country less safe.
He wants to promote national defense.
And so this is just another example of the blowback that Ron Paul has been warning us about.
And people try to spin that against him as if he's trying to blame the American people for the problems.
He doesn't blame the American people, but he certainly thinks that our leaders have bad policy and our foreign policy has been bad.
And it has contributed to a lot of the resentment that's felt around the world for the United States.
And we should rethink that type of foreign policy and be more concerned about defending America, especially not from the Middle East, but from Washington, D.C., I mean, that's where our greatest threat to our liberty comes from.
It doesn't come from without.
It comes from within.
No kidding.
Look at the NDAA, all of it.
Peter, I'm about to end the show.
Let me say bye to you here in just a moment.
All right.
Thank you.
Folks, that was an amazing interview with Peter Schiff.
We'll be back this Sunday on the Syndicated Radio Show, 4 to 6, back Monday, 11 a.m.
to 2 p.m., and of course back here next Monday night, Lord willing, at 7 a.m.
Central.
That's it for this Friday, 13th.
2012 edition of InfoWars Nightly News.
Great job to the crew and great job to all the subscribers at InfoWarsNews.com.
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