assets of most central banks in the world are the paper currencies of other central banks mainly the federal reserve mainly the us government's paper money and there's no reason at all why they should trust that so eventually they're going to start trading all that paper for gold. that's what's going to happen because as you're as you're well aware of the russians and the chinese when they're dealing with each other have to use at the moment u.s. dollars the clear through new york this makes no sense at all the indians and the iranians so they're going to cut the u.s. dollar out of the room out of the loop totally in the future ok sound i want to focus on this german repatriation of gold for a second i'm looking at the comments from mohamed el aren who's the. head of pimco biggest bond buyer owner in the u.s. he wrote an opinion piece of the f.t. and he likens this act by germany as similar to the behavior of libya iran venezuela now how likely is that we're going to see a serious repercussions against germany in other words doug you have a private investor who is stepping into the f

morgan the private banks own the central banks the central banks are not there for the people so the central banks want that gold because the people who own the and own the central banks want to go if you think you're getting your gold from the central banks you are frickin nuts you need to get your own gold it's over well the funniest question. that the socialist and christian democrats ask in the netherlands is whether or not the gold bars that london canada and the u.s. are holding for them are actually real they're actually asking if the gold bars are even real but look at laguna happen in the u.k. the british government sent that old queen elizabeth and of the vaults to say oh ho you know we're going to listen fair little hope you know who. don't want to loan joe gold you know that's a big problem get a nightmare you know gold is not safe in britain your goal is not safe anywhere unless it's in your personal vault well that's a very important point you bring up is that the queen of england did visit the bank of england gold vaults and first of all that's a classic car on a littl

the fed and central banks did undertake some unorthodox policies. not all of them worked. a lot of them did. a process is still under way of bringing our economy back to where like to see it. >> -- we would like to see it. >> the global linkages are important in terms of prospects for u.s. growth. if you look over the medium term, where would you see a plausible scenario to generate the demand for the growth that we hope the u.s. is able to achieve? we are not eager to go back to the very high household consumption levels that were unsustainable given the challenges in europe not so clear where that growth might come from. -- europe. not so clear where that growth might come from. >> it is true that global growth has been slower. for a variety of reasons. one is the european situation. much of europe is in recession, following the difficult financial problems that have had. some emerging market economies have slowed. the slowdown in china was the least partly a policy goal to try to create a more sustainable and stable growth path and to try to shift the sources of demand

central banks around the world, including the fed in the u.s. and european central banks, are essentially doing the same thing. implementing drastic monetary easing measures to weaken their currency and to increase exports. >> one of the most important questions is how do you think this policy is going to affect japan's economy? >> well, actually, many economists have been wrestling with that question. at what point prices start to rise, it might be difficult to stop the momentum, but others argue it will take some time for the boj to actually achieve its target. >> it's hard to expect because considering japan economy is suffering negative outward gap at 3% of level and also considering level is still high compared to historical level it's hard to anticipate inflation number bring back to 2% level or close to 2% level. >> we also need to look at possible price hikes in the larger context. right now the economy has been suffering from a condition known as deflationary spiral. companies earn less, so they cut wages. and consumers spend less. that

and european central banks are essentially doing the same thing. implementing drastic monetary easing measures to weaken their currency and to increase exports. >> one of the most important questions is how do you think this policy is going to affect japan's economy? >> well, actually, many economists have been wrestling with that question. some point out once prices start to rise it might be difficult to stop the momentum, but others argue it will take some time for the boj to actually achieve its target. >> it's hard to expect because considering japanese economy is suffering negative outward gap at 3% of level and also considering level is still high compared to historical level it's difficult to anticipate inflation number bring back to 2% level or close to 2% level. >> we also need to look at possible price hikes in the larger context. right now the economy has been suffering from a condition known as deflationary spiral. companies earn less, so they cut wages. and consumers spend less. that drives down company's sales. now, consider what will

moving to the bank of england where you know the media environment around the central bank is is fairly it's not adversarial certainly in gauged and so it's you know as we move towards these less and less formal environments it's going to be incumbent on the fed to really fight against that legacy culture and get out there and get the message across clearly and just one more because i do want to be able to pick your brain for just one more minute is there an ivory tower type of culture at the fed where there is really kind of one sort of thought not a lot of dissension or differing views i mean we hear about the richard fisher is they seem to be sealing far between is that the culture of the fed you've worked on anything yeah i think there is a little bit of that i certainly think you know whenever you've got. hundreds of ph d. economists there will be a natural tendency to behave in an academic manner that's not a it's not a criticism but what it does end up doing i think is is. leading towards a certain group think. i do think then it varies from bank to bank from reserve bank to rese

the aim is to maintain the central bank's independence. b.o.j. policy makers are considering expanding their asset purchase program to inject more liquidity into the money markets. the current limit for buying government bonds and other assets is about $1.1 trillion. now, as the central bank and the government are moving toward closer collaboration, economic revitalization minister akira amari has decided to attend next week's b.o.j. meeting. amari is expected to inform the central bank that the government plans to do its best in achieving economic growth. it's also anticipated he may urge the central bank to work on bold measures for more monetary easing. generally, senior cabinet members and not a minister attend the b.o.j. policy board meeting. more business headlines for you next hour. here's a check on markets. ♪ ♪ >>> japanese prime minister shinzo abe is setting off on his first overseas trip since taking office last month. he's taking a tour of southeast asian countries. abe will make stops in vietnam, thailand, and indonesia. governm

the fed and other central banks did undertake some on percent -- on orthodox policies. we did help to stabilize the global financial system and begin a process, still underway , or in economy back to where we would like to see it. >> you raised the issue of what is going on globally. the cooperation that has emerged, which is certainly a positive thing. of course, those global images are important in terms of aspects for us growth. if you look over the medium term, where would you see a plausible scenario to generate the demand for the growth we hope the us is able to achieve? we are not eager to go back to the very high household consumption levels that were arguably unsustainable. given the challenges in europe and slowing growth in china, not so clear where the growth might come from. i wonder what your thoughts are about that. >> it is true that global growth has been somewhat slower. a variety of reasons. one is the european situation, which you alluded to. much of europe is in recession at this point, following the difficult financial problems that they have had.

the fist, what we mean by generally by central bank independence is some kind of central bank sticking to their target, to their own target, their own belief that citing inflation or as in the case of japan welcoming inflation is the best solution or the best contribution that the central bank can give. what, in fact, independence is central bank not taking the queues from government leaders. i think in this second rotation, not taking the queues from government leaders, then the independence is pretty widespread. so there is real independence. however, there is a misled opinion that central banks will stick to their targets no matter what and this is just common sense. you know, in the last four years, we have seen central banks acting in order to prevent financial instability and i think this is what central banks should do, even when this prevention of physical instability goes beyond their targets. >> what's interesting is basically what we're saying is that if a central bank says in order to achieve my targeted goal i have to work together with the fiscal authorities, that's frank

about the globalization of the central banking industry the the people who are running these banks who are financing the insect to all pride to others like facebook are in our developing a global hive if you will a global banking hive which they're all swapping each other out in ways that are highly detrimental to anyone's ability to make a living wage you notice that during the past ten years during the whole buildup to the crisis and after the crisis the banks have never missed a pay day the bankers have been getting increased bonuses but wages real wages adjusted for inflation have been stagnant or going down that's because this in sexualization of the global economy where we're just drones giving the pollen of our imagination and our labor to these parasites in queen bees that are now big drop in this global hive you know we need some kind of pull there to go out there with a big stick. and kick down the hive you know and and maybe he or me in the story is well. well carol i don't know i suppose because clearly there's not enough lubricant in that in quezon to solve this global ban

bottom line, central bank on hold. other measures needed i guess. >> yeah. >>> meanwhile, focus in the u.s. today very much on earnings by a pair of banks. jpmorgan and goldman sachs. jpmorgan reports its fourth quarter results at 7:00 eastern. profits are forecasted to rise 29% and revenue 10%. the london loss won't be included but the company issuing two separate reports on what exactly happened and the fallout. the new cfo will run the earnings call for the first time. goldman sachs reported its fourth quarter numbers -- reports its fourth quarter numbers at 7:30 eastern. forecasts will double and revenues rising. banking and lending revenue, both stocks in frankfurt today. jpmorgan's up 1.7%. goldman down just under 8%. pierce, what are you looking for from these banks? and are they the most important bank earnings for you? >> no, not really. i'm much more interested in tomorrow when we have bank of america and citigroup. i think that gives a much better kind of signal to the underlying economic conditions traditio

and the central banks and the people advising george job's board. what they have to say about what what we should do with the economy and yet they totally obviously don't know what they're doing they're just pulling it out of a magic bag of tricks they they don't know and it's a huge wealth transfer and they use the language of economics and finance to bamboozle mainstream media into mouthing their propaganda while they victimize a whole segment of the population that's being financially exterminated or by using interest rates we've seen the imposition of what i would call interest rate related apartheid where if you know your cost of borrowing money is zero percent if you're going to want to go for a payday loan you basically have the same rights as a black under apartheid it's financial apartheid in this country and it's sickening well talk about this wealth consolidation and this wealth transfer high stakes gambling machines suck money from poorest communities m.p.'s express alarm about five billion pounds spent on fixed odds betting terminals in

. >> they share a currency and they share a central bank, the european central bank in frankfurt that makes the monetary policy for the whole euro area. >> unification made trade among member nations a breeze. as a result, the e.u. became the world's second-largest economy and america's top trading partner. >> real engines to growth in the european union have to do with trade and opening up trade, and that's what the e.u. has done for the past 50 years. >> europe is the biggest economy in the world. the trading relationship between united states and europe is the biggest in the world. >> but even as the e.u. succeeded in bringing economic success to member nations, critics warned of crucial flaws in its complex structure. >> they threw together a whole lot of economies that are very different from each other, gave them a single interest rate policy, but didn't put in place any of the political institutions that would be necessary to help countries that feel the pain of an interest rate policy that's not appropriate to their own economic situation. >> in the united states, you have ver

and imf's christine legarde tells us that central bank stimulus is still needed. >> we have the central bank on the one hand which have done quite a lot, which have been the fireman, in a way. and you have the policymakers on the other hand particularly in the eurozone who have made some progress and need to keep the momentum. >> now, any minute now, we're expecting the results from germany's ifo institute. january business climate index survey is expected to rise to a reading of 103 from 102.4 in december. this, of course, follows an increase in expectations in the dew survey earlier this week. we've seen an increase in the pmi surveys for germany over the last couple of months. as the german economy particularly looking to climb out of its contraction in the fourth quarter, we're waiting on the ifo senior va to tell us whether sentiment broadly speaking is picking up in line with that development. now here we're getting the survey. it would thou be ifo expectations index, this on reuters. it's higher than expected, 100.5 versus 99. the overall index looks like it came in at 104.2 vers

banks sit in the way with tons and tons of silver in the votes of central banks don't own any so they have loads of gold but they don't earn a nice over so so there's not this immediacy of supply that can suddenly hit the market people are confused by silver because it's both a monetary metal but it's also an industrial metal careers down solar and of course are these huge solar arrays being constructed around the world the use of solver now people are buying it as a monetary metal and there's another in thing relationship i'd like to talk for you talk about between the price of solar versus gold in ounces or there's a relationship there historically it usually would be sixteen ounces of silver to one ounce of gold these days is what fifty or fifty three ounces of silver to gold is this huge gap let's talk about that first of all on the solar panels it takes two thirds of an ounce of su for every solar panels monied and as the technology starts to get more advanced. solar power is potentially the big big growth market in all of the emerging world and it also lives in the home countrie

banks are stoking social unrest because their definition of their mandate a central bankers is. to act like a hedge fund and to stoke asset prices even though it's destroying the real economy so they are creating the social unrest that you are are you are suggesting it's only going to get worse now one place an economy where we see a massive distortion is in the sovereign bond prices the u.k. guilt or the sovereign bond market in the u.k. is trading at a three hundred year high treasury bonds in america are trading at a two hundred forty year high when is the bond bubble going to burst you've got bill gross over a pepco suggesting it's going to burst soon that's why he's moving into some other assets when what do you think about this bond bubble bursting is it going to burst in the near term or are they can they keep the ponzi scheme going much longer das. well i hope they can keep the ponzi scheme going and i think it has a bit more to do but you're absolutely correct to my mind sovereign debt and money are synonymous and i think james grant called the moment really well when h

banks sit in the way with tons and tons of silver no central banks don't own any so over they have loads of gold but they don't any so so so it's not this immediacy of supply that can suddenly hit the market people are confused by silver because it's both a monetary metal but it's also an industrial metal careers down solar and of course are these huge solar arrays being constructed around the world the use of silver now people are buying it as a monetary metal and there's another in thing relationship i'd like to talk for a thought about it between the price of solar versus gold in ounces or there's a relationship there historically it usually would be sixteen ounces of silver to one ounce of gold these days is what fifty or fifty three ounces of silver to gold is this huge gap let's talk about that first of all on the solar panels it takes two thirds of an ounce of sue for every solar panel eat and as the technology starts to get more advanced. solar power is potentially the big big growth market in all of the emerging world it also lives in the home countries so countries like india t

banks in new york and london while germany has no partner central banks this is every man for himself and those with the most gold are going to win the currency war as we have been warning about now for years this is why the euro has been trading relatively well against the dollar because in the euro zone there are twelve thirteen thousand tons of gold versus the u.s. which has maybe a thousand times but one of the big problem stacey of course is the central banks of elise there are gold out and sold it and it's now sitting in the pockets of hundreds of millions of indians in the confidence of india and so when germany goes to collect their gold they find that it's not there it's been sold and that's what this war is all about especially now that the central banking system is collapsing and countries want the only currency without counterparty risk the only currency you can print more of and that would be gold now they mention their partner central banks and this is a remnant.

creates more problems for the gross and tried to support well speaking of the central bank when you had the opportunity to speak during a prime minister medvedev session the only thing you said was that russia has two great banks d.t.b. and spare bank and that is certainly not enough can you elaborate on not can you tell me why you think that's not enough for a country like russia and what do you think needs to be done in this respect russia not just moscow russia not just resource sector you know russia is a waste to put you into you know from what you are still to some because from a good. culture. of course. we should have been a better financial system but no one could grow it's not a mushroom it's not enough to here were a. financial system it's a commitment it was a country commitment i was the no state institutions in the center bankers and the people you know to grow proper infrastructure for capital markets for that market we already have in a view on opportunities and begin of not just what we try to build capital is not even democracy we know one no one has interest in de

keep in mind again central banks print money buy through. the engineering like putting a dam in a river creating lakes at the top for those who are benefiting but everyone else is being starved to death and that's what central bank financial engineering is all about putting financial dams in the system so that when they print money never flows to the population that's not benefiting from massive insider trading and manipulation now the really interesting thing about this article and about this protest is that comparing it to the global insurrection against banker occupation because the fact is that the strike started on the thirtieth of october two thousand and twelve when farm labor stopped work and delivered a memorandum to the western cape government demanding higher wages but they claim the government only paid attention when the vineyards started to burn whoa that's the economics of extinction which we'll be talking about throughout this entire show there is more cost for the financial terrorists to burn people to incinerate them than t

out of central bank currency reserves. egypt is still waiting for an imf aid package. >> we hope the talks with the international monetary fund will continue in january. the government will ask for a resumption in loan negotiations. >> until then, the central bank may sell more reserves to stave off a currency crash. >> 2012 is coming to a close in just a few hours in berlin. in other parts of the world, they are already bringing in 2013. >> fireworks lit up the sky in aukland. there were plenty of pyrotechnics. >> sydney putting on a spectacular welcome to 2013. kylie minogue sang the tunes to the display. 7 tons of gunpowder bait. the bridge in light for more than 1 million revelers. along with fireworks, they had a traditional bell ringing ceremony. even north korea accepts they cannot stop the passage of time. they clearly have money to burn in 2013. celebrations may be winding down in asia, berlin is still warming up in anticipation of the midnight hour. the biggest parties will be in front of the brandenburg gate wit

is of course quantitative easing i money printing by the bank of england by the european central bank by the federal reserve bank by the bank of japan super rich hedge fund financier is emerged as the big winners from the bank of england's money printing program in two thousand and twelve as pensioners and savers were made to struggle with shrunken incomes that's exactly what i'm talking about the hedge funds these are basically parasites that get keepers that are part of the architecture of this been reengineer the central bank prince trillions of dollars and then they gives them the money to these hedge funds or the primary dealers as they're known or interbank dealers as their no they hoard the cash they are benefiting they pay themselves hundreds of billions of in bonuses but the money never gets to the general population that's kept just two or three calories above starvation now the real median household income peaked at fifty six thousand dollars that was in two thousand and nine right when the bank of england started to pump three hundred seventy five billion pounds of money i