SID: Hello, Sid Roth your investigative reporter here with Dr. Larry Bates and we’re saying that Larry is not a doom and gloom man. Just because we’ve been talking about, it’s not about if there will be terrorism in the United States, everyone recognizes the question is, when there will be terrorism. It’s not if there will be natural disasters, everyone recognizes it is a question of when there will be natural disasters. It’s not if the housing market explodes and goes south, it’s not if, it’s when this is going to happen. But Larry, you’re very optimistic, however, there’s another thing I’ve been reading about and that is some of these foreign countries are literally buying up major companies, major – buying ports for shipping, buying oil companies, they’re trying to buy the assets of America. Is this good? Give me an example of what’s going on.
LARRY: All right, for example what we have is, where did their money come from? They have been financing our trade deficit. We’ve been buying their cheap goods, importing their cheap goods, we’ve been giving them our Federal Reserve notes which we call cash. They are holding this cash and now they have decided, “Hey we have quite enough cash. So what do we do with it?” They want to come back and buy the real assets of America. For an example we saw the Chinese owned oil company, Chinese government owned oil company, trying to buy Unical, in the United States Unical board rebuffed them, went, leaning toward the Chevron offer, I think you are going to see the Chinese up the ante. Trying to buy Maytag for an example, Whirlpool has come in to try to counter that offer but –
SID: Okay look, they have the cash; let’s face it, because everything operates just about by greed, anyone’s going to be willing to sell at the right price. Let’s assume that these countries are successful in buying some of our best assets in America. What is wrong with that?
LARRY: Well would you want to sell one of our strategic, when we are so dependent upon energy in this country, would you want to sell one of our largest oil companies to a state owned, government owned oil company to a government whose head of their war college said the other day said, “We may nuke the United States if they interfere with -” You know it makes no sense for our national sovereignty or our national security. But see this is where you find yourself in, is, you find yourself in a condition where you have borrowed money, and as the Bible says the borrower is servant to the lender, and here’s the fine fix we find ourselves in.
SID: Well, why is it, and help me understand this, why is it this Johnny come lately, if you will, Euro, actually exceeds the value of the US dollar, there were times I could go on vacation with the US dollar and live like a king because it bought more than the Euro. Now it’s reversed, how come?
LARRY: Well, people are looking for economic stability and for a period of time it was perceived that Europe was more stable economically and people were moving from the dollar to the Euro. Now had it not been for the Socialist led governments of Europe, they’ve messed their own economies up, and we’ve gotten a bit of reprieve, probably not for long, but we have a reprieve, and we have all currencies of the world are in crisis.
Since 1971 when we repudiated the Gretenwoods agreement, we went off of honest money, we, every economic crisis, 181 of them Sid, 181 economic crisis have all been currency crisis. To give you an example, the Asian economic crisis in the mid-nineties, to give you an example of what does this mean for the average person, we saw in the country Indonesia, their currency called the repia, went from 2000 repia to the dollar, to 16000 repia to the dollar.
SID: That’s quite an inflation.
LARRY: Now, one of my clients in Indonesia was a family- owned company, employed about 3000 people, a manufacturing concern. The only problem they had was they had loans payable to Citibank in New York, and payable in dollars, and their currency, their goods were being sold domestically, in repia. They could not make their loan payments, they defaulted. And I talked with them about a year later, Citibank had sent a new partner to them. I asked them, “Are you still in business?” Yes. Factory still operating? Yes. Three thousand employees? Yes. Raw materials coming in, finished product going out? Yes. What’s changed? Ownership.” He said, “We now only have a 20 percent stake in a fifty year old family company.” See wealth is not destroyed it is simply transferred, and money is the transfer agent, so this is why we have to understand money, the function of money, who controls it, what drives it, how debt is involved, it is so important that people understand the times.
SID: So what does the average person do that’s got a little money in the bank, a little money in mutual funds, a pension program, this super inflation on their house and they say “Well my major asset is my house.” But let’s suppose that some of these things like natural disasters occur, like terrorism occur; like all of a sudden the price of real estate worth twenty cents on the dollar, is there a way for the average person to be involved in this wealth transfer. Dr. Larry Bates says yes. When we come back we’ll tell you specific strategy; supernatural strategy. Don’t go away.
