Mike Maloney on the Fiscal Cliff and the "Holy Sh*t" Demographic Bankrupting America!
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Welcome to Capital Account. Bloomberg reports UK prosecutors are ready to arrest former traders and rate setters at UBS, RBS, and Barclays for questioning over their role in the Libor scandal. We ask Michael Maloney, founder of Gold-Silver.com, if the larger crime is not LIBOR manipulation, but the ongoing war against the price mechanism itself through reckless central banks and fiscally irresponsible governments.
Also, today House Speaker John Boehner and President Obama outlined plans for reducing the national debt, setting the stage for a contentious debate over the Fiscal Cliff. This morning Boehner announced "I outlined a responsible path forward to avert the fiscal cliff without raising tax rates." Meanwhile, a few hours later, Obama told reporters "If we're serious about reducing the deficit, we have to combine spending cuts with revenue. That means asking the wealthy to pay a little more in taxes." It seems politicians are nowhere near reaching a compromise anytime soon. Would it be so bad if the US fell off the Fiscal Cliff? According to a new Congressional Budget Office report the impact from going over the fiscal cliff would be recession in the US economy next year and an increase in the jobless rate from 7.9 to 9.1 percent by the end of 2013. A deal to avert this would mean a deficit of 503 billion dollars higher than it would otherwise have been in fiscal year 2013. We talk to Mike Maloney of Gold Silver about what the Fiscal Cliff would entail for the long term picture of the US economy, and if going off the cliff could at least be a wake-up call for politicians to do something at long last.
We also speak with Mike Malony, author of "The Guide to Investing in Gold and Silver," about the "Holy Shit" demographic, as he calls it. This is the demographic of retirees or those nearing retirement, who wake up one day and realize that they have no savings, and that they can't rely on the government to protect them as they head into their later years. Plus Lauren responds to viewers in tonight's feedback segment, and she reveals a big name guest that will be on Capital Account next week! Hint...it's a CFTC commissioner with long, blonde hair!