Video Title: Keiser Report: Gold-for-Bonds & Debts-for-What?! (E221)
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Uploaded by RussiaToday on Dec 10, 2011
This week Max Keiser and co-host, Stacy Herbert, discuss central banks and governments ‘saving the day’ and hostage taking paper silver markets and gold for bonds in Japan. In the second half of the show, Max talks to Satyajit Das, author of Extreme Money, about the European debt crisis.
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Category: News & Politics
Tags: RT, Keiser Report, Max Keiser, Stacy Herbert, Satyajit Das, markets, finance, scandal, analysis, maxkeiser.com, gold price, toy, silver price, Euro, dollar, JPMorgan, Goldman Sachs, MF Global, crash, crisis, deficit, debt, Wall Street, stock markets, bankrupt, silver, gold, UK, US, banking, tax, economy, Episode 221, E221
<Transcript starts at 12:08>
Max Keiser: Hi I’m Max Keiser. Welcome back to the Keiser Report. Time now to go to Sydney, Australia and talk to Das.
This financial commentator is so famous he just goes by that – Das. Das, welcome to the Keiser Report.
Satyajit Das: Good to be with you Max.
Max Keiser: Alright Das, let’s talk about Europe. You’ve just turned the page published on Dow Jones Market Watch entitled “What Happens in Europe Won’t Stay in Europe“. Tell us about it.
Satyajit Das: The basic thing is, in the United States there’s a feeling that what’s gonna happen in Europe is gonna affect them. And I think that’s delusionary.
And there’s a few channels of contagion that I think worth noting. The first is, between Europe and America, they’re about 40 percent of global, uh, the economy… 25 percent of trade and they’re each other’s largest partners in terms of trading.
So whatever happens in Europe will affect American Export and they export about 400 billion a year which is roughly about 20 percent of their exports.
The other thing is, United States sends stuff to Asia like, you know, little Microsoft programs and sort of Intel chips and all sorts of stuff which gets built into products which goes to Europe and obviously, we all know Europe is not gonna grow.
And at best, you know, they’re gonna flat line and have maybe low growth but worst case they’re full of daydrift clue. That’s gonna affect but the United States, and it’s gonna affect China.
So basically, that’s the first line of contagion in the United States.
The second line of contagion is the very predictable one of the financial markets. US banks according to a congressional report have six hundred and forty-one billion dollars of exposure to Europe. That’s not all to the governments, that’s to companies. Well now, they say they have hedges.
We don’t know what they have. But let’s assume they’re hedged to some degree, but it’s still a pretty big number. Then, of course, there are the lovely savings of American retirees, some part of that has found its way into Europe as well.
So, they’ve got substantial exposures to Europe and to some extent, I think Barrack Obama and the democrat administration in the White House spends a lot of time worrying about what’s gonna happen to Europe because it’s gonna affect what happens in the United States.
And the other thing is, all this lovely chatter in Europe about let’s devalue by printing money and all that sort of stuff; that’s also gonna have an effect in the United States ’cause it’s gonna force up, basically, the US dollar and the export sector in the United States has been doing quite well.
It’s growing by 11 percent year on year. And that’s gonna get affected if the dollar values. So th…all this…all these sort of contagions going on.
Max Keiser: Alright, let’s…uh…take a look at this so…I wanted to ask you if you’ve taken a look at the United Kingdom at all because of all the countries in the world, they’re actually in the deepest debt of all.