policy to weaken the swiss franc but as bad as this currency transaction scandal is is this really that much worse than the scandal of zero percent interest rate skimming off the top of everyone's bank accounts and therefore should other central bankers follow suit and resign themselves will discuss it and instead of waiting for central bankers and governments to solve these problems maybe people should just start planning their own as gave birds will talk as steve broods from the us with gonzalo lira let's get to today's capital account. ok imagine this imagine you're lending someone money would you pay them to lend

them money and normal world if i lend you money i want something in return it costs money to borrow money now can you imagine a world where i'm so desperate to lend you money that i'm willing to pay you to do it and that's the paranormal world we're living in today it's pretty unbelievable but it's just happened in germany the government auctioned off two point nine billion euro in six months notes the yields were negative the investors paid the government to lend them their own money this is in the era of the eurozone debt crisis of course where people appear more concerned with the return of their money rather than a return on their money but in the west we've gotten used to this right with the federal reserve keeping interest rates near zero first speculators that means free money to go speculate for savers that's not losing money to inflation as your money sits in the bank or if you're loaning the u.s. government money the interest rates have been so low again you're losing money to

inflation now add to this uncertainty over bankruptcies of insolvent banks the staggering fifteen trillion dollar u.s. debt a government with no credible plan to attack it and bills signed into law that allows indefinite military detention of american citizens and all of that is why a lot of the investors we talked to privately tell us behind the scenes they're looking to do this. ways to plan their to get their money safe and get the heck out of dodge gonzalo lira founder and president of s p g a group knows what we're talking about he joins us from switzerland gonzalo it's nice to have you on the show let me just start with switzerland because you are there and traditionally for generations switzerland's been considered considered a safe haven you have. people that have there's been

a lot of capital that's been kept in switzerland but since two thousand and seven really you've seen the united states crack down on swiss banks you've seen charges you've seen revelation of client names you also see some of these big banks that are highly leveraged and could arguably need a government bailout is traditional places are traditional places like switzerland safe havens anymore. well thank you for having me on. since a lot of days for americans this is no longer a safe haven because for all intents and purposes it is impossible for anybody holding an american passport open account in switzerland and deposit in money and switching because the problem with u.b.s. the i.r.s. where the internal revenue service is needed so it's a lot of just u.b.s. bank to hand over basically five thousand names of american clients that you just have is someone with a way to go and bank which is required and then if you're a very small group this is your spending that shortly after the whole u.b.s. i.r.s.

who are issued a letter saying that they were simply not going to take any more of our existence had not going to invest in united states anymore and that has been that hot has been good you know by every other private suspect in. this country so americans can't go to switzerland anymore a safe haven but what they can do is go to other countries such as panama show. austria which is a little dicey for various reasons australia new zealand there are other countries that are welcoming american capital and there are a lot of people with a great deal of money in the united states who are moving their money out of the united states and moving them some as i said it's because they no longer feel that it is a plus for the country so let me ask you with let's stop right there gonzalo because i want to get into a number of issues and i'm so glad you got to full circle to the reasons why people might want to take their money out of the united states this is what you do for

a living you help people escape from countries they want to escape from including the us personally we hear from investors and financial analysts and private conversations all the time exactly what you're saying people are worried about the safety of their money they're worried about the government taking their money they're looking for escape routes there were looking for ways to get their money out to get their money safe i'm curious you do this for a living have you seen an increase in the demand for people to either leave the us or take their money. out of the us and i guess three say yes yes most certainly especially as of late after the whole m.f. global fiasco because m.f. global was a brokerage bankruptcy which is not that i'm talking of it has happened many times since i'm thirty eight but what was unique about the m.f. global issue was that the federal regulators and the bankruptcy judge that handled that bankruptcy privileged j.p. morgan over the customers now this is key because what happened was that customers who had money with m.f. global who in other circumstances ordinarily should have gotten all their money

back because they hadn't they were having that money in play they simply had it on deposit with them just as you or i would have money on the possible local savings and loan well these customers lost their money to j.p. morgan the government privileged the bank over the individuals who had money and they lost money that was rightfully theirs and this is not money that they had a margin or that they had put on jets or any sort of anything like that rather it was money that they simply have with m.f. global but that was they are now the problem is that these people are realizing that the right of private property in the united states is deteriorating because the government is probably putting the too big to fail banks as opposed to regular citizens now you have forty thousand customers who lost money with m.f. global now i know a few of them some of them have written some rather so great in pieces i'm think in general and to men actually to talk about it absolutely absolutely i did and he was

outraged and rightfully so i mean imagine you. have money with me i am a bank you have to say just for the sake of argument you know fifty thousand dollars and i go bankrupt and instead of giving you all of your money because it is yours i give you you know forty thousand dollars an extra twenty percent of it saying oh well you know i owed j.p. morgan and so tough luck for you and you said that was my money why are you taking . why money but it was mine rightfully mine i didn't have to have it at risk and you're still here and the bankruptcy judge says well. you know a lot of people are looking at a local maker and saying well it could happen to me in some other venue you know why are you take the risk when i'm just all my money out of united states or people are doing that or people are accident there are. already positions going into actual commodities there are actually you know selling you know there are paper gold for to because and no use of physical is

a global will hear people on the show talk about that a lot i want to continue because i totally hear we're saying about m.f. global we talk to retail investors many on this show who have said exactly that they have lost their trust in the system and for a lot of the reasons that you just mentioned i'm curious too about laws one example is a foreign account tax compliance act of two thousand and ten there are other pieces of numerous legislation to that have limited or restricted americans choices about where and how they can invest their money to laws like these make investors worried the government is going to confiscate their money. yes definitely you know that there are especially for expatriates expatriates or people who have money outside of the united states really don't have much rights in so far as the i.r.s. and certain or even current or past administrations because expatriates let's face it don't really elect any you know any one representative or senator so they get kicked around yes it is the only country in the face of the earth where it's expatriate citizens are obliged to not only final taxes and united states but pay

taxes and since even if their earnings are completely foreign even if they're living outside and states i mean you're basically paying for services in the united states that you don't enjoy if you're an expatriate a lot of people are very angry about this a lot of people are very angry about the various laws of that have been promulgated in order to capture expatriate money now what they're doing is actually fairly simple what they're doing is setting up foreign companies that are wholly owned by them and basically you know invading taxes or avoiding taxes now they're doing this wholesale because let's face it why would you do that if you're living outside of the united states and feel that you have to pay money that you don't. do people who are going to not only mismatch your money but they're there trying to steal your bottom line so there's there's the issue of taxes and it's a really interesting one and another issue too that often investors bring up is history and one nine hundred thirty three the government the president issued an

executive order you can see it right there confiscated everybody's gold except for a little bit bought it at twenty dollars an ounce change the price at thirty five dollars an ounce is it right for people to be worried about this or is that just paranoid. well the experience of march of ninety thirty three and i thank you thirty three banking act is a little bit special and you do have to keep in mind that you know the feds the f.b.i. really was not going around knocking on people's door house you know if you have any gold at your house and it was more like a big huge button inferi certainly and ins and in practice especially with the militarization of police in united states where are the police are acting more like a paramilitary or military organization rather than policing force you do you get a sense that perhaps at one point or another the unit sits there or will decide hey we've got this huge police force you know pepper spraying protesters and doing whatever they want why don't we just go and get people who know how bold and

confiscate are for and so a lot of people are justifiably taking preventive measures and. my group what we're all about is preventive measures not just about this kind of stuff but also you know hyperinflation in the united states or europe but the whole point is that it seems to me that the mainstream media is not paying attention to what really worries people and what we really worries people is the lawlessness of the current system that we have the lack of accountability there has not been a simple criminal investigation into what happened in two thousand and seven two thousand and eight there's not been a single criminal investigation into all of the fraud going on between the federal reserve and the too big to fail banks the systemically important uninsured institutions and then not allow those are things that we don't ignore on our show we talk about them every day so i actually i want to ask you to stay right there because you brought up the defense i want to talk about national security in the national defense authorization act i also want to talk about where people are

taking their money where their plan next so we will be right back with more weapons all alero but we are going to quickly go to that. all right it's time now for word of the day where we break down a financial term or concept for our very smart viewer but maybe not a financial expert and today it is fact tale now we talked about this a little last week when bill gross a founder of pimco wrote in his january note about the paranormal year that he believes is ahead and he mentioned that implosion and vine motile fat tailed outcomes are very new age and very two thousand and twelve ish and here c.e.o. mohamed el erian is writing about it today in the wall street journal the headline is investing in a fat tail world if we can bring it out just to show people what that looks like

there it is investing in a fat tail world now it also makes sense to talk about this because this has everything to do with his paranormal world that our guest gonzalo lira is talking about why people are trying to move their money and to save their money and what people are trying to avoid so what exactly is a fat tail let's talk about how it plays into this paranormal scenario so that tail is a probability distribution whose outcomes are represented as thick and or tails that form towards the edges of the distribution curve indicating and irregularly high likelihood of a catastrophic event now the risk associated with these types of distributions is referred to as tail risk it's the risk of what's going on out here which represents an event with a relatively low probability of occurring but whose outcome carries a disproportionately high impact so in a normal distribution which you can see right here ok the probability of these events occurring is very low it's basically a flat line now here you can see right on top of it

a fat tail distribution so these are the fatter tails and right here you can see that the likelihood of that catastrophic event is. higher ok as a result the tail risk grows too and this this tail world is the world pimco argues we're living in and bill gross talked about by models that deal distribute distribution too so we wanted a fine example of an extreme buy model just for you this one just for fun this is for the women in our audience. here is by model distribution for child birth so here is the normal childbirth and you can see the the occurrence is relatively low what is more highly occurring is the following events that someone had the most amazing beautiful easy painless childbirth or endured the most horrific pain on the planet ok that's by modal distribution now that's just food for thought but now you know what that tales are and still ahead if you want to escape from the u.s.

we've been talking about it we will tell you where to go with the help of our guest gonzalo euro gonzalo lira pardon me but first your closing market numbers. put a picture of me when i was like no years old on the only truth you. says and i am a total get a princess i love grabbing hip hop is that and. it was kind of a gesture for. you i'm very proud of the role without you it's playing.

so. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else and you hear or see some other part of it and realize everything. i'm charging welcome to the big picture of the sun . and what drives the world the fear mongering used by politicians who makes decisions come to the breakthrough. who can you trust no one who is imbue it with a global missionary see where we had a state controlled capitalism is called saxons when nobody dares to ask we do our t.v.

question morning. to you. welcome back so before the break we talked about the paranormal world we are listening we a step we are living in we established the fat tails that have now taken over the normal distribution where catastrophic events are more likely to happen with a great great impact and risk now we also talked about some of the other issues that are driving investors and people to want to get their money out of the u.s. now we want to find out where it is going i want to bring gonzalo lira back into the conversation he's founder and president of as p.g. group he makes a living doing this so he really is the expert welcome back into the conversation i want to talk a little bit about national security because you brought it up and investors that i talked to as well it's the economic issues you brought up issues like m.f.

global the laws also the tough economic times the risks like you mentioned in the euro zone some of the risks in the u.s. federal reserve policies all these things but also what many perceive to be government overreach in security and one recent example we saw as a national defense authorization act in it an amendment which essentially opens the door to indefinite military detention of american citizens do something like this which i know you've written about play into your client's concerns. absolutely the basic problem is not the specific n.d.a. issue. essentially the resending of use for us it's rabbit a whole host of different issues that have been just building up over the years we have the military militarization of the police force and it suits we have. used dropping without warrants now we have indefinite detentions i mean it's been one thing after another and we are working on is them united states we're having

a militarized society and people unfortunately seem indifferent to what's going on and so when there is indifference on the citizenry the authorities feel that they can get away with that and more and so it becomes a boiling frog issue you know there is that the metaphor that if you drop a frog in boiling water will jump right out but if you drop a frog into cold water and start turning up the heat that problem will it's death now it seems to be what's going on with the american students read their being boiled to death and they don't realize that a few people are realizing now what i do at the refugee dot com is we set up scenarios contingency plans for a possible in the jobs of central fat tail hands and such as the break up of the euro's such as hyperinflation america such as what to do more to meet america if united states becomes that lee and told our country to live it now a lot of people say what is the best place to live in the outside of the ad states but that is that's like saying you know what's the best suit to wear to church you

know it depends on who you are how tall you are i'm sure you are your weight this that the other at s.t.g. we've come up with various parameters that we look at in good words to determine what would be the best place for each person when for instance there are some people who are very concerned about the environmental issue they look at fracking in the northeast and pennsylvania they recognize of the groundwater is going to tell an aged are worried about potential nuclear all out for another potential future. so you know the failure to maintain their power plants you say where to go will automatically then read the northern hemisphere you have to get in here because in some of the southern hemisphere you don't have a problem. nuclear power plants ok dodgy gonzales can i can i get in here in second because we're almost at a time i have to run and about a minute i just want to ask people with the economic concerns where are they going you know are they buying farmland and your are where putting their base their money

in banks and. yes they are. a lot of people have been asking me privately and i know that they've been looking around for farmland chile and argentina in your eyes a lot of people are looking at new zealand australia principle of the southern hemisphere because they seem to feel that they have a sphere sort of like a way of what's coming up in europe and so it's clearly we're going to have a breakup of the eurozone in fairly we're going to have a run on treasury bonds in the in the near term future so a lot of people are figuring out that the northern hemisphere is toast at least the civilized westernized of the hemisphere and they're looking seriously at the southern hemisphere in order i would say it is you and australia chile argentina now your live there seems to be the countries that people are gravitating towards and they're looking very seriously at the financial institutions of those countries now was countries especially chile and new zealand are benefiting. a lot of capital

flows flow into those two countries capital from europe and united states of people who are just simply precautions they are basically setting up a foothold and getting ready to move if and when the time comes to move yeah we've certainly heard that buying out we certainly are that here we really appreciate you giving us a lot more insight into this because it's a very interesting and i got to go really nice to have you on the show enjoy switzerland that went. with that analysis. all right so we talked about some escape routes now let's give you a few more reasons to talk about why you may want them i want to bring in our producer dimitri cafe in us to do that along with shannon donna holding down the

fort in the control room. shannon found this moody's has cut illinois credit rating to eighty two meetings some things in illinois aren't so golden i've got. but it's . over for. people. of illinois not so golden the downgrade makes illinois the lowest rated by moody's in the west despite the state raising its income tax rates and business taxes last year ok first do we really care about this because the ratings agencies we decide all the time. i would i wouldn't like first of all you've got the rating agencies and you've got blue wave right and then you got illinois which is like where chicago is locus you got three really factor the trifecta redraw the question this i'm just glad if i can say this as a californian i'm just glad it's not california because i would think just you know off the top my head california would have the worst credit rating shannen.

correction on the california moody's has. the worst leaving other agency i can't remember which i think is right now has california as a low ok well there you go so i'm not out or thought it was a lowly or below and california san in. i'm sorry what did you say ok well good sticking it to whether this is should be taken serious or not here's something that dimitri mate might make you feel like maybe you should take it seriously because illinois at the same time has also. put into effect a new law. it's a road kill bill look at this a different. group you see. so it is now legal for anyone in illinois to carrying a fur bear a license to selvage road kill for food or for

a license is only twenty five dollars in illinois so this isn't hard to get and you can you know scan your own food and make pelts which one person interviewed in a story says are in high demand in russia and china so he's looking very much forward to export growth so why do you license to pick up road kill and scan it and so the china so maybe this is a way for illinois to make a little bit of dough so just a warning to the of the government on why are you charging people to pick up carcasses and it's a last thing that i want to do if they're doing a service actually they're helping to cut down on the people that need to come out on the road exactly this is why should they have to pay for that shouldn't of the before it's only twenty five bucks but do you think they're so absurd do you think that this shows that illinois is in dire straits they're saying ok people we know that everything worked out here but we're going to let you get your own food. because they don't produce new revenue all they do is lead over the population which is starving and grabbing the she's going to this is

a this is like the only time we have this is back when when the colonial period when they went up and did raids in canada and took beaver skins with the indians but on another go of road kill on the roads of this poor thing is for him to get probably but it's dead and this could actually in an area of trade between neighbor is a little free market action which i would think you would be a fan of right now i would be but not with the government regulations for five dollars all right shannon what do you think what i think honestly it's probably going to use. brokerage oh my gosh that's a great point road rage people that are after their dinner or their so you can see people are driving animals what if the animal is not actually dead and like rises up it attacks the truck driver if there was any ruler from the seventy's if it was the honey badger it probably would so let's be thankful that we did i don't think there's a lot in that slot from the viral video ok that's all we have time that's it for our show thanks so much for tuning in. elfrida follow me on twitter at lauren lyster you can also give us feedback on the show at youtube dot com slash capital

account all of our poll shows and interviews are there check them out catch up also our web exclusive with james turk i am lauren lester and from everyone here at capital account until next time have a great night. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realize that everything you thought you knew you don't know i'm charged welcome to the big picture. will be the true story is technology innovation all the news developments

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governor romney do you believe that states have the right to ban contraception all the problems in the world and yet if contraception that really gets the republican candidates risky so with the current state of the economy and and with american wars what's more important candidates values or their vision. but they are doing is to destroy the democracy creates the saying those that don't bite the hand that feeds you but what about helping hand has or think what agenda of it all so many suffer from austerity measures will ask who has the most to gain from the crisis in the eurozone. and all the.