libya welcome sudan's president omar al bashir wanted internationally for crimes against humanity his state visit drawn outrage from human rights groups with high profile figures questioning the n.t. sees commitment to the rule of law. now that financial gurus max kaiser and stacy herbert home in on the bosses who can't stop raking in the cash no matter the consequences for the man on the street. max kaiser this is the kaiser report payday loans pawnbrokers and the paranormal. max they're all connected in today's headlines first bill gross and a memo says towards the paranormal in this memo he says markets are slowly imploding because there's too much paper and too little trust kill the paper bugs

kill the paper bugs kill the paper bugs. all paper books both. now let's turn to the first stories here coming out of the u.k. u.k. house prices stay resilient despite pressures that average u.k. property is there worth one percent more than at the start of last year it is a remarkable performance considering the crisis in the euro zone the average price of a home x. in the u.k. is now at one hundred sixty three thousand pounds eight hundred twenty two whereas the average income for a working age household is thirty three thousand pounds oh let's use the titanic analogy. the economy hit the iceberg in two thousand and seven there was a hole in the hall of the global economy to patch up the hole and to right

the situation would require higher interest rates but what we've seen around the world mervyn king in the u.k. ben bernanke in the us is to lower interest rates which has the effect of why the whole those speeding up the sinking of the ship while the elite who are in these homes in the london area see the prices of their. little escape boats go up but the vast majority the ninety nine percent still stuck in the titanic are sinking fast and sinking even faster because lower interest rates are making the hole bigger. i presume it's because the people in the boats that are escaping from the sinking economy don't want anyone to survive to live another day and to go hunting after them well there is another explanation as well because the average

house price is now five times the average income pay day loans one in seven brits using credit to pay a mortgage or rent so nearly seven million brits are risking their spiral of debt by using credit cards overdrafts and payday loans to pay their rent or mortgage a major housing charity has warned of those almost one million have taken out high interest payday loans to meet housing costs and remember max most people in britain are only using interest only mortgages as well so they're taking out a payday loan to pay the interest on their mortgage well the stories are related to the rise of the house prices of the multiples of earnings that's due to the paper that's being created through lower interest rates and people are selling away on their little escape boats and a lot of those will sink as well but it's all for the benefit of the few to survive what you're saying here one in seven brits using payday loans again more paper as we see the transformation of britain from a nation of shopkeepers to

a nation of crack whores. well the other thing is as well is that as we have always talked about is that london is the center of global banking fraud martin lewis of money saving expert dot com says the u.k. is the crock of gold at the end of the rainbow for the world's payday lenders they've been regulated out of other countries and jump for joy at our lax supervision that's why these four thousand percent a.p.r. lenders are exploding across british high streets yet these astronomical a.p.r. isn't the real danger that comes from the rollover this is where people can't repay at the end of the month and compound interest kicks in again the. the paper flooding in to the economy and the u.k. as the nexus of global financial fraud because of the lax supervision and complete lack of regulation relating to hypothecation hypothecation that's why m.f.

global had its headquarters of their major crime spree in the u.k. same thing with a same thing with lehman brothers same thing with bernie made off that's the iceberg of the global economy hit and to let a few escape unscathed they're making the whole wider with lower interest rates over there the bank of england or the federal reserve bank or now the e.c.b. and this benefiting less and less of the elite the one percent of the one percent in their escape boats and they are happy to see the most of everyone else drowned to death because they know that if they live to another day they'll come after them with pitchforks and getting into this type of thing but that's the dynamic so you have payday loans supporting this so-called miracle housing market in the u.k. now as payday lenders are to the u.k. you have pawnbrokers and the rest of europe pawnbrokers feel mightest touch as

greeks slugged by taxes authorities have reported a boom in the pawnshop sector with ninety percent of greece's two hundred twenty four officially registered pawn shops having opened to the past year many jewelers are joining in put in placards in their window reading i buy gold one italian jewelry wholesaler which is open several franchises in greece except gold teeth and exchange for cash right what gold is the savior of the people being disenfranchised instead because of the money flooding into the system that has bankrupted greece and bankrupted the peripheral zone in the european nations the eurozone they are now training in the one thing that has value gold to get. more of the very thing that is causing a loss of sovereignty paper and the paper bugs have to be destroyed at some level and this is the theme for twenty twelve how to kill the paper bugs and there

are a lot of different initiatives you know occupy wall street is one initiative of global insurrection against banker occupation is another initiative but these paper bugs must be exterminated ok so in the u.k. we're told over and over by cameron and by mervyn king that at all costs they must sustain the housing bubble and because of that you see payday lenders that's predatory lenders for the people here you have pawn shops exploding all over the place in greece in order to sustain an unsustainable system which is the eurozone and the bailouts greece out of euro if bailout fails in order to avoid defaulting on a major bond redemption of march we're told greece must pass another austerity measures more austerity measures or it will crash out of the eurozone unless it can agree to the terms of the one hundred thirty billion euro bailout of course but they will not be allowed to escape their current situation the greek people because as long

as they're being held down by the financial rapist as i call them of the paper bugs they're having their wealth confiscated and looted their having their gold sucked out of their teeth they're going to give up the countries under eleven tongue gold position in the bank in greece they're going to be so all of their asses income producing assets the ports the tourist attractions anything that can throw off a nickel of income is going to be stolen and taken from the people and they would be benefited of course of thank you get out of this prison but they will not be allowed to get out of prison no way of course this threat should happen but it won't happen because the greek people are being gangbanged by the i.m.f. christine lagarde with the strap on and all these other central bankers. well let's see there are some people escaping max according to the next headline greeks italians moving cash out of banks greeks and italians are taking their money and running moving it abroad and even burying it underground for fear of the eurozone

crisis will topple banks and wipe out what remains of their savings so i think that's a bit of a lie there they're saying that they're afraid that the euro zone is going to collapse and wipe out their savings i think it's just fear of bankers that they're afraid of being having their money stolen by bankers we've already seen with the m.f. global story that j.p. morgan can go into any segregated account in the world anywhere that they want and just take it and you know hire a lawyer buddy come get it from us to look at jamie diamond did to moammar gadhafi i mean look at the same again i mean watching him getting murdered in the public on t.v. with jamie in the background chuckling home which took over sovereign wealth of goldman sachs and bankrupted you then this is what customers don't want to end up they don't want to end up on the street being by some guy with a big broom handle because that they crossed paths with jamie dunn and lloyd blankfein that's what people fear actually over the new year i did read a little article where it hasn't got much attention but apparently j.p.

morgan executive tony blair who was good friends and suckered khadafi into this global scam well could off he was so certain of his relationship that he apparently sent notice while they were being bombed simple the only simple sentence what are you doing he wrote to tony blair's people what are you doing gadhafi to doesn't know that the mack daddy is tony blair and j.p. morgan they're the terrorists speaking of bank stores big bank c.e.o.'s walk away with big bucks in two thousand and eleven. so remember at the end of the year we covered the fact that bank shares were down hugely up to sixty five percent well according to data from rochdale securities and. dick bove the heads of major banking groups including j.p. morgan chase goldman sachs and bank of america are outearning their employees and shareholders even as shares of bank stocks as a group lost about twenty six percent and twenty eleven take bank of america c.e.o.

brian moynihan who we talked about well he's getting two point two six million despite his shares falling by sixty percent j.p. morgan chase c.e.o. jamie dimon will earn forty one point nine million though his shares are down twenty three percent then well if you take barack out gadhafi out you take the syrian guy out and you have all that business yourself accordingly and people don't take them on because they don't want to end up like the duffy well jamie diamond did you conduct the press reports have suggested that compensation pools at seven of the biggest u.s. banks will total about one hundred fifty six billion dollars this year including salaries benefits and bonus which would be three point seven percent higher than last year's record breaking number so as you see the economy continues to fall fall fall fall and the paranormal that bill gross says it's like paranormal that the bankers can continue to make money no matter what the market up

down disasters collapse surging no matter what they continue to make more money but it's not paranormal and bill gross for resorting to such a thinly thought out. explanation for what's going on my explanation my analogy is crystal clear the titanic is sinking they're making the whole bigger by keeping rates low artificially and this is benefiting a few people who are becoming fabulously rich paranormal it to me it's designed way to impoverish the vast majority at the for the benefit of the very few of the very few number of very few is getting fewer and fewer with each passing. hey i mean bill gross is bomb performance on his fund his funds performance is not great so he resorts to rhetoric that is interesting to read but it covers the fact that he doesn't really know what he's doing anymore he's lost bill gross is lost. well he

does say remarks are imploding because there's too much paper and too little trust and that would seem to be. evident in the headlines we've covered. his performances upon manager doesn't reflect his. understanding of the inflation deflation unwinding dynamic so we'll watch the show and your clients will be very happy that you did it all right stay here with thanks so much for being kaiser report thank you max all right i know much more coming your way so stay right there.

streamed cast from mom. and a speed of more than two hundred kilometers. long. welcome back to the kaiser report imax kaiser time now to go to washington state and talk with silver guru extraordinary david morgan silver hyphen investor that com david morgan welcome back to the kaiser report back so it's great to be with you always all right david morgan so much start of the year with the biggest one day surge in three years where do you see silver going this year well first of all tell you that max and it's already in the public domain but before i start i just want to give the key word for all markets especially silver and that were for two thousand and

twelve is balak filippi we saw it as you say on the open here and got a better than six percent increase in one day on good. paul you i see shoulder going somewhat sideways in a very broad very volatile trading range for quite some time i see silver basically doubling in the course of two thousand and twelve so specifically i'm already on record saying i see sixty dollars silver prices by the end of two thousand and twelve and i think it may take as long as a whole year to get there all right you know summer and all the cars are about financial instruments but they're also political football in the united states in particular candidates like ron paul who are trying to bring back honest money and to get rid of the federal reserve i'm a gulden esdaile to what extent do you think gold prices a silver prices are let's say manipulated by those with a political agenda david margan. great deal you couldn't really put

a percentage on it but certainly gold especially silver as well are both managed i like that word better than manipulated but regardless they're certainly powers in the market forces in the derivatives that can force the price down almost at will based upon a whole left of a naked shorting then that's taken place again and again and again the long term trend however cannot be manipulated the long term trend for gold and silver still up that's what you really need to focus on would silver prices be higher without the whacking down from the derivatives markets and would go be higher yes they would be but you got to look at that i think it's an opportunity and one question max if i may is that i get this constantly and that is well if they can do this then what's prevent them from doing it you know indefinitely or forever why would i get in that market the answer is they cannot do it indefinitely they're losing control there is no way out of the situation and because of the fact that a piece of paper does not equal

a piece of gold there separate physical things that fact will trump the market at some point and it. it isn't an overnight affair although it's possible that anomaly could occur but the fact is an ounce of physical metal is something unique and it's very rare and it's scarce and it's precious and because of those facts you're going to find it somewhere and it could be this year there's going to be a parting of the ways it's going to be the red sea again you're going to find one set of. mass you know a grinding of teeth of people that think that they own something because they have a certificate that says that soldiers on it or gold's on it and yet that's all they have is a certificate so because more and more people are waking up to this because of the m.f. global the c.m.e. ruling what's going on throughout the derivatives industry which is totally beyond comprehension you're going to find more and more people come in the physical side of the market all right i wanted to ask you about eric sprott and was doing up

there in canada for a second because he recently made an appeal to the silver industry in the summer mining industry that they and i get this correct correct me if i get this wrong his idea with some of our producers to retain earnings and sell more or not pay out over what exactly was he proposing and what do you think of the idea because i like the idea not to take any way anything away from eric sprott but that was something that you know i had and i won't say i was the first one and i wasn't but i had proposed that very early on in the natural resources conference in chicago with rob mcewen rob was head of goldcorp at the time go corp and in the early days was holding back gold as an asset for gold corp shareholders i said this is phenomenal people love it and we need to do something like this on the silver side so that idea has been around for some time it was proposed at one of the early silver summits one of the larger silver companies it got in kind of an open floor debate

that go a little bit heated but i like the idea one company actually had done it over standard had done it to a lesser degree my friends that. endeavor silver of kind of held back some of their third quarter earnings in silver so called retained earnings in the metal i'm not sure it will grab hold i like the idea though the reason i don't think it will grab hold if you talk to most the miners they'll say this statement we're miners we're not commodity traders we don't really know. what the future price of silver is we disco quarter to quarter get our earnings and that's what our business is however a lot of the same company so what can i do that's unique that will make our company stand out from all the others claw you just gave us the answer hold back to earnings and physical metal and you would be you know my view head and shoulders above the rest of the pack and you'll probably get a huge premium on your share price so this is obviously an idea that is the

complete opposite of what we just saw a few years ago where a company like american barack a big gulp producer was actually in the market selling short gold as a heads and they had a huge short position on their books and this was contributing to price depreciation in the metal so i guess if they're not going to do the same retention of precious metals idea at least they're moving away from she had shooting themselves in the foot by shorting there by the precious metals agreed with that david margan considered better i'm actually on arm right now bond manager bill gross the famous bongo he is to the bond market where you are the silver market. he says that markets are slowly imploding because there is too much paper and too little trust so this is kind of following up on what you're saying david margan but can you speak a little more about this well the bond markets really the key to the kingdom i mean there's so much more that we all have vested in in the system and what i mean by

system is a global financial system and it's all based on debt and it's all based on the ability to pay that debt off at some point it's impossible to do so because more and more people are recognizing that fact a lot of people are waking up so now you get into what i call the in the financial survival mode in the financial survival mode is the realization of the truth that these debts cannot be paid so you either default on the debt and say we can't pay it to keep two cents on the dollar or you. default by printing the currency to the point where people want accepted anymore i think the latter route is the way it's going to go although i don't rule out the former entirely we get a downgrade in the united states one more notch it's my understanding that there'll be a lot of money market fund managers that are required to dump the bond right because they have a certain criteria that's their mandate to hold a certain credit rating or above if it goes below that rating then they've got to sell it so there's a lot of things out there in the bond market in the i don't talk about it often but

thanks for opening up the question max it used to be one of my areas that i would say of expertise but i spend a lot of time on i don't anymore but i know the fundamental facts and those are the facts and because of that what's very scary and what could take place this year in the overall financial system based on the mistrust look the insurance companies are bar and pension funds are barnum bill gross dumped a great deal of of us treasuries nobody wants this stuff so what's really happened is a short circuit to short circuit is we've got to sell these bonds well the better the feds of the world are basically buying him and that's printing the money yes technically america borrows three billion six hundred million dollars a day i mean that's basically you know ten days you'd buy up the entire silver supply regardless it's a mess and a stock any better and no one's offering any real solutions right now the reason we talk about. looking back over the past ten years we say the top performing assets.

in the very top of that league table you see oil did very very well goal did even better than oil but at the very top number one performing asset over the past ten years as been silver with an eight hundred percent gain or so now what we're looking at is that fifty dollars price level because that was the old hunt brothers high we saw the price get just under fifty dollars recently some would call that a double top and some might say that it's just prelude for a bust through that magic if you well fifty dollar level from what i hear you're saying here today david morgan you think that we're going to breach that level sometime in two thousand and twelve absolutely. there's just not that much silver around what is available straightly hild yes there's been a huge increase in silver production the last few years i admit that there's also been a huge increase in solar panel production and if you go into the gold in the huge

deflationary mode so there's a self correcting situation because seventy percent is baseball mining so if you had a huge contraction in economic activity that would curtail the base metal miners by quite a bit and that would be less silver production so i really i'm still bullish it's going to be excluded and very volatile but as more and more people wake up that there is no way out ok let me let me cut in the fire seconds in other words when people say oh well so are the industrial metal bearish and a diesel rating economy what you're saying is actually it's bullish because that means less mining of the base metals which actually takes over supply off the market meanwhile they're still demand on the monetary side but i want to talk about m.f. global for a second in their crime spree and we've got a couple of minutes left at the end of two thousand and eleven the trustees were taking or talking about liquidating customer gold and silver positions and there is a notion actually that the summer position on j.p. morgan's balance sheet seemed to reflect to the ounce. exactly what was taken out

of m.f. global's balanchine and your thoughts on the connection with the silver gold m.f. global collapse and what do you see any connection there at the morgue and well you can't dispute it's very odd that those numbers line up that's about all say i think human plight enough for people to think on their own well i will add to that is that i'm remiss and i don't mind being wrong but i really. upsets me because i stated from the get go that if you had a fully paid for warehouse receipt or plain peanut storage on your silver or gold and it was one of the warehouses which is really a bank approved by the c.m.e. that you were safe and that turns out not to be true it looks like it's a buried right now i haven't seen the final ruling it may be on i might have misled just got back from vacation but regardless it's like seventy two percent so you've actually paid for metal you bought it you stored it you've put all your fees into the storage costs and yet you're only going to get seventy percent on the dollar i mean this is so so bad and that's another reason you're going to see more movement

in the physical realm i've already talked to my broker some of left the industry counts are dropping off people just don't trust the system it's breaking down in front of our eyes and the one place you thought you were safe or should be is also reneges on their promise in a partial basis or max really really upsets me and i'll take a public apology to anybody that believed what i believe that if you all the physical metal and had a receipt backed by the c.m.e. that you would be made whole and apparently won't be all right david margan server hyphen investor that com or ad time thanks so much for being on the kaiser report my pleasure max thank you and that's going to do it for this edition of the kaiser a part with me max kaiser and stacy ever and i thank my guest the silver guru himself david margan is to the supermarket where bill gross is a bond market is literally the axe in the cellar markets are follow his work

closely thought to send me an e-mail sent to the report at r t t v dot ru until next time ask either saying by all.

we tried to speak to journalists who've been arrested in baghdad but everyone was too afraid to appear on camera battle for the truth argy investigates the iraqi government continue to crack down on freedom of speech and journalists. the u.s. and u.k. call for the exclusion of syria from unesco's human rights committee they say the country's presence damages the organization's reputation the move comes as tension runs high in syria following a suicide attack that killed twenty six people in central damascus. human rights groups condemned the visit of sudan's president omar al bashir to libya they questioned it.