Lack of 'Reserve'

" Here comes the extortion again. And Tuesday of this week the CEO of the Federal Reserve Bank of New York -- of the heads of New York's largest banks into his offices in lower Manhattan. We don't know exactly what was said but we do know that he told the assembled bankers that they must start cutting. Executive compensation -- the government will do it for them. The government admits it has no lawful authority to regulate compensation. At banks that never received TARP funds -- received them but paid them back already. So was this extortion. Undoubtedly. It was the threat to have the FDIC audit the banks if they failed to tow the pay is ours line. Haven't we been here before. Didn't the Fed and the treasury in the FDIC. Threatened banks in the past to sacrifice their sound business judgment to the wishes the politicians are the commands of the regulators. Isn't it the regulators. -- brought us the recession in the first place. Joining me -- to discuss all this is Connecticut senate candidate leadership. He is also the president of Euro Pacific Capital Peter welcome back to freedom -- if it were you surprised. That the head of the New York Federal Reserve. -- bank CEOs into his office. Over which he has regulatory authority but not over which -- has control of compensation and said you guys are paying yourselves to much start paying less."

" Hamas surprised -- that they would do something like that you know this is all part of this Camel's nose under the tent once we let them in there. -- they start bailing everybody out -- property companies up. You know not all -- people making too much money but they're worried about the PR so now they have to go in and try to regulate everybody salary say don't look bad."

" What will happen to the banks who will say to him. Go take a hike we either paid back all the stock -- waters would want it back or we never succumb to TARP in the first place."

" On the what's gonna happen but the problem is you -- you do have the at the -- and there you you have regulation of these banks and maybe they can apply pressure. Through the regulatory agencies on the banks and aren't on the line. And that's -- that's a real threat and I'm sure that the bankers are you know I feel feel the -- of that threat."

" So in other words the FDIC would threaten to to audit these banks. Which could cost a fortune and employee time to comply with the audited and even -- shareholder value. As the reputation of the bank which."

" a lot of the regulations are in force objectively. And you know -- a grey areas in there and they can either be lenient or be strictly based on up on on what's going on. You know and -- unfortunately we have to allow these decisions to be made by the market we can't allow obese plus size you just mentioned it was political pressure to make. Paul loans that banks would normally make banks -- trying to make a profit. -- they're not making a loan is because they're fearful of lost we don't want governments coming in and interfering with what the market is accomplish."

" That's the definition of fascism private ownership but government controlling the means to me this sounds like Mussolini in the thirties OK you on this -- we don't like what you're doing with your money. To our -- welcome gonna take over."

" Let's look what that's what our entire countries become I mean we've become a socialist economy. Fascism is a form of socialism just like capitol -- communism as a form of socialism but generally under fascism. Think the politicians are smart enough not to nationalize the business is -- right. They -- private ownership but then they control all the businesses through taxes and regulations."

" switching gears a little bit. What what what is the status of gold today where do you see it going is it a sound investment."

" Well golds a new high as we speak gold is now closing in on 1100 dollars announced surprised now I mean I don't gold on -- for my clients I think it's gone a lot higher in fact. They the Reserve Bank of India just yesterday but 200 metric tons of gold. From the ion map that was half the goal they had for sale do you think the central bank of media just pay top dollar for gold as they think this is the end of the run. It's gone a lot higher other central banks have to buy more ball particularly -- brick countries. Like got China and like Brazil they need more -- their reserves are loaded up -- dollars gold -- a lot higher specifically because of the monetary fiscal policies of the currently."

" just educate me for a minute the central bank of India buys 200 metric tons of gold. -- they take physical custody have that much gold as somebody put that much -- on a boat and ship at the end here."

" Well at -- not real sure where the IMF's gold is stored. But at -- it's basically you always have to do is change the ownership the gold might not actually have to be shipped it might be held in -- Central Bank facility. It just they're gonna take that name you know India I mean they're gonna take I met to name often there is like India's name my argument. But more central banks are gonna wanna do this because the -- central -- India now with this -- they only have about 7% of their reserves. In goal you know China only has 1% one and a half percent of its reserves in gold. You know compared -- in the major G-7 nations have more like 30% 35% -- So these emerging markets and gold with the letter and certificates -- somebody else on the actual ball hard but the -- but we need I mean you need to have money. Behind the monetary system you have to have something tangible backing all your paper and that's ball Bernanke doesn't believe that -- Well that's the problem -- if we believe that we would necessarily mean all this trouble politicians don't like gold because gold. Puts the discipline on politics and they want that can do with the paper -- because they can only spend that they have gold again I think -- pretty money but what's gonna happen is because of all this money were printing artificially stimulate the economy. Remember the stimulus is just making our problems worse we're not gonna have a recovery until consumers stop spending. We gonna have a recovery that's gonna be built on savings investment and production. But as long as we keep trying to stimulate more consumption we're gonna keep debasing our money and the price of -- keep going up."

" How I wish the president and his people -- secretary Geithner agreed with you and understood basic economics one -- ones but they apparently don't switching gears again. You're running for the Republican nomination. For the Senate in Connecticut yesterday the most democratic -- democratic states in the union my home state of New Jersey. Elected. A Republican. As governor. Ousted an incumbent. Sitting Democrat. Who spent thirty million of his own dollars the president of the United States came to New Jersey five times including as recently as Sunday -- held enormous rallies embracing John Corzine. Calling him my partner. Are you heartened. By the victory of governor elect Chris Christie in your neighboring state of managers I think it's a good side."

" We got rid of an incumbent Democrat but I it would be more optimistic if we got a real conservative libertarian small government -- to replace them I think it's a it's a step in the right direction. Going to -- remains to be seen in -- how committed he is to these type of principles but hopefully this can follow through that to my campaign. In Connecticut in 2000 intent because not hopefully if I beat the other Republicans. I can run against Chris dot."

" Well and you if you get that nomination and run against Chris -- I think it would be the race to watch in the whole country. Because -- force Chris Dodd to confront all of these unpleasant truths which are basically his personal corruption and utter ignorance of the way the economy works."

" Absolutely and -- I would give is set sit at the residents of Connecticut the voters of Connecticut for the first time ever the opportunity to vote for an actual Republican. Who is gonna stick to Republican principles when he gets into office and not just sell out to get reelected to actually shrink the size of government. Dramatically and restore sound money. And try to bring freedom back to the -- you are singing my -- and Peter as well as those of us who were watching now. How can you sell that and a state like Connecticut which to me it's almost as bad as New Jersey. While we're Tennessee and we're gonna see if that the Connecticut voters have the stomach for the truth I mean there's so they're so used to lies I mean I might not even hear that recognizes true for me here. But let these problems are getting worse I think. The backlash is coming from the fact. That people can sense that we're still moving in the wrong direction right for all the -- change we haven't changed anything -- just compound of the size of the mistakes we're making and is more more Americans lose their jobs and get frustrated with the rising cost of living. And more this in -- same all empty promises from mainstream politicians. Maybe a guy like me who's got nothin' -- politics -- the private citizen revenue was an understanding of these issues who saw all this stuff coming and other people did it. Who is committed -- did it take time out of his career to try to go to Washington and undo the damage that the politicians have --"

" And I are both are friends of -- but it watching us and knows that he had that enormously successful. Fundraising bomb on November 5 2007. Do you have one of those bombs coming."

" And they don't you know I've raise more money last quarter are raised over million dollars -- raise more money than -- the other Republican candidates in the race that I raised I might have been one of the top money raisers in the country and even announced that was running. Now I'm running. There is a money bomb that somebody organized for tomorrow for the fifth of November. At my website it -- dot com we got a brand new website that we're launching today for the better of the website -- war. Is brand -- today militantly missing is some of the issues they'll be added in the next week or two but it's -- cited new look. And you can go online -- for senate dot com and donate to. The money bombs starting midnight tonight -- all day tomorrow so it would be great if we can raise a few 100000 dollars and you know show. The world -- the country that there is support. For freedom and liberty in this country you're sure thanks for joining us freedom watch --"