keyser welcome to the kaiser report jump down turn around pick a bale of cotton that's right you member that from the old days old plantation days well turn around and pay your rent to me i'm a bank and i own you yeah it's nice to be in banks or in these days of zero percent interest rates printed exclusively for the banks or thanks max you sound like somebody from k k r they're one of the banks of the world london bankers become landlords as rents hit record so london rents max have risen more than six per cent in the past year to

a record even as job cuts by banks reduce employment in the financial services industry to a twenty year low technology and media companies are drawing workers to the city while lenders restrict mortgages to all but the most credit worthy customers that's encouraged individual investors and companies including k k r and company to enter the rental market as central banks push down yields on debt to record lows right so this is a classic case of rent seeking you've got the central bank and the investment banks there are colluding they get interest rates down near zero so the jack the price up rents are going higher ok are predatory bankers in the mix it's the result of a completely. conceived monetary policies causing massive rent seeking and financial dislocation well it's also something that you've called before the jim crow laws so any no ordinary person the bottom ninety nine point nine percent of

the population they are excluded from zero percent interest rates it looks great on paper wow zero percent interest rates around the world record low gilt wecker low yield under. treasury bonds is super we can go to the fed's discount window and borrow a zero percent well actually you can unless you're a bank stairs credit line and still jim crow laws using interest rates to discriminate yes if you are you know in the big house so to speak you can borrow money at close to zero percent if you're on the field work and then your rate of interest is going to be twenty five thirty percent your rates are going to be jacked up you're shopping at the company's store whether it's tesco or wal-mart. now demand for rental properties is growing because first time buyers in the city typically need down payments of about twenty five percent the average deposit is fifty seven thousand one hundred seventy five pounds now consider that that's almost twice what the average salary annual salary here in london is so of course i

mean we had this from the beginning and we never had that financialization on the boom in the lowering of credit standards of course we would never have prices at this level if from the beginning we always had a twenty five percent deposit but now people are being forced out excluded and it's bankers who are able to borrow a zero percent like a k r and they go over a whole list of other bankers who have buying properties and renting them out right well the flip side of zero percent interest rates are bond prices at three hundred year highs and so when the bond price bubble pops and interest rates go to ten fifteen percent on the ten year twenty or thirty year bond in the u.k. and around the world the real estate market will crash so k.k. are but because they live in the big house k k r o b bailed out of ghana by the state and everyone else would be suffering through another round of austerity exactly so let's look at another ad line here because you know our economies have

also been wiped out as they even know here even bankers are losing their jobs there are fewer fewer jobs available but do you want to be one of these sort of renting those want to join the k k r class well they've got just the product for you k.k. ours goal to expand to ordinary investors k k r and company is seeking to appeal to individual investors and their advisors searching for yield as the private equity firm diversified beyond wealthy and institutional funders that's really what our long term goal is to be able to meet the demands in these that you have well this is no is being wrong that the bond market is. top because kohlberg kravis roberts k k r is packaging all of their long term interest rate risk into a new security that they'll make public and have the public buy into the public is now going to be buying into k.k. ours long term interest rate risk just at the top of the bond bubble this is

a this is a brilliant sign that the bond markets about to crash anyone buying into this k.k. are scheme is going to lows seventy five eighty ninety percent of their investment can't pay aren't won't be insulated because they dump their risk into this vehicle that they're now pushing on to the public the regulators are of course implicated in this they let this go through because they're corrupt and they take huge bribes whether it's gary gensler of the city of d.c. the f.c.c. the epicenter of the matter they're all corrupt they take huge profits and let this trash get into the marketplace take a our off loans their risk the public they are exposed to austerity and then what pennies they have left they get ranked by can't pay our henry kravis you are a true patriot so investors such as public pension funds and wealthy families have cut severely their investments in private equity they were primarily the big investor in these private equity firms they're cutting back so now kerry needs some new. you're always looking for the next chunk to sell

your your investment too so this is how scott not sold the fruits global head of capital an asset management says individual investors and their advisors should consider moving more money toward the spicey credit such as high yield debt in distressed companies which can carer's to new funds invest more than that numbskull advisor to the bozo the clown contingency of cars another guy who's taken a big commission up front to help take a our off load their risk to the vast majority of idiots behind me and around the world. who will be sucked into this vortex of guaranteed capital loss well you know we've talked about this thirty year bond market many times over the past three years on this show and this is certainly a sign that this sort of thing is ending because the k k r blackstone or the two big giants and carlyle group that the three big giants of the private equity world

and if they're looking to share it with joe baca donuts you can bet anything that they don't have much but bad bonds and debts to get rid of at this point but they're the seller now why would the smart insiders selling off this this this property why would they be selling it unless it was in fact a bag of worms that they were selling to the public to get rid of you know there's an old saying on wall street that the best time to defeat the ducks is when they're quitting and you know you need to feed the ducks when they're quacking so the vast majority of the population out there having had their interesting come on their pension accounts got it down to zero by the corrupt central banks of bank of england in the federal reserve bank there quacking for yield where we want you so in comes henry kravis and k.k. our packages all of his risk and all these private equity deals that were financed by junk bond takes all the rest put it into new anthony floats on the public exchange and johnny numbskull here the professional consultant advisor for the

finances of millions and billions of people and buying into that risk guaranteed capital loss quick quick quick it happens time and time again it happens every three or four years like clockwork. so you did mention the three hundred year record high in u.k. government bonds well the u.k. is in this next headline here max u.k. public borrowing jumps in below for chancellor the chancellor george osborne was dealt a major blow as the last figures before as crucial autumn statement showed borrowing was far higher than expected in october. so max the u.k. government borrowed eight point six billion pounds compared with economists forecast of just six billion pounds which is what they borrowed last october so as you see it's a spiraling out of control situation here and it was most lead due to the lower corporate tax receipts but because the economy is shrinking due to the scandals of

the banks the four horsemen of the paper apocalypse royal bank of scotland lloyds h.s.b.c. and the i mentioned barclays so these are the four major protagonists in a tragedy called the killing of the u.k. economy and george osborne of course and you're and david cameron they're going to need the global market to buy their debt they need more debt to keep themselves afloat even though the country is going completely into a zombie state so what is cameron doing to euro the euro zone which could be a natural buyer of his debt he's saying no no we don't want to be a part of the euro zone is antagonistic toward these men his his boss and the limb urkel you know these antagonistic who's going to be buying the bonds of the u.k. to finance their economy going forward not the arrows oh no no no who's going to be buying these bonds ok che are they going to sell the tower of london for ten cents on the dollar so buckingham palace for fifty billion dollars and let's get over

this whole royalty thing because that's a big waste of money they've got just don't leverage buyout of buckingham palace do all the leverage buyout of the queen and all the spawn of the queen and the duke and get get rid of this debt put a low stamp put them on a flare but get rid of all as physical entities because or muck it up the economy as soon as you threaten that of course there will be a genuine old fashioned do believe the queen will say i do think. it is good k.k. are you know queen listen to me when elizabeth thank you they are is in your backyard threatening you and claire did you blame for this country and drive the snakes of kids. other private equity groups out of britain do your country a favor queen elizabeth drive out the snakes and call them crab or some robert. again though this is the end result of financialization here you have the banks. derivatives products fraud fraud fraud out of the city of london and the office for

national statistics figures showed a near ten percent fall in corporation tax receipts so there is nothing else left in the economy other than their fraud and ponzi scheme so when those start to contract the whole economy contracts because there's nothing left here to fill in the gap when when when all those schemes fall apart there's more money. there's more money for everyone the country's gone xombi no one in ten companies is a zombie company hundred sixty thousand companies can't make enough money even to pay the interest on the dead let alone retire any of the debt and the problem is growing the country itself as of more of the point so it's become a zombie country yeah as they say the zombie companies are being kept afloat by zero percent interest rates so if interest rates go up even a fraction of a basis point they're going to be wiped out so how what how is that which affect

future borrowing from the u.k. government at these historic low yields and if you ask me what is this bond collapse coming i would say if coal kohlberg kravis and roberts is now bundling all their bond risk and selling it to the public then the timing is now. well it's a full circle isn't it because it's back to the bonfire the venti says where it started and that's where it's going and you know it gets back to the old adage that if you don't know the suckers at the poker table it's you david cameron is that sucker all right since you never thank so much. as a reporter thank you say to inform. n.y.m. about silver. sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you. are

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the application. choose your language stream quality and enjoy your favorite. t.v. is not required to watch on. more charts any time. you're welcome back to the can as a report time now to turn to ian williams who is chairman and c.e.o.

of charteris treasury portfolio managers in welcome to the kaiser report. he recently made headlines with a very bold prediction for silver you say that silver will rise five fold in the next three years tell us about it. it's based on a combination of technical and fundamental cyclical factors as well and one of the interesting points of looking at the cycles is so well there's an almost perfect ten year. every. city every year with the year and into the major both. every single run in the year and into and we're now in two thousand ok now viewers watching well some of them all well listen to this and it sounds a bit. our came to them this idea that there's technical patterns that years ending

in two excedrin would drive the price however the biggest money in the world the hedge funds out there money managers out there of course they incorporate technical analysis in what they do their decisions and what allocate resources so it doesn't matter if the average person out there kind of buys into the technical analysis or not the fact that the. major money is and they've got a lot of money to spend it becomes almost i would say self-fulfilling prophecy but it definitely is informs their buying decisions and if you bring in these big buyers what. is the current composition of the largest portfolios in the world today allocation toward gold and silver because the last i checked was very very low very low one percent one percent of investable assets around the world are in precious metals personal struggle so will manage those now any bump in that number at all would seem to take this summer market which is only

a billion ounces above ground that's a what the thirty to thirty three billion dollars market we're talking about portfolios that are if half a trillion in size if they just go from one percent to two percent that's their hell is what happens when you get all the show would move in the price which is historically see if you are a precious so the if you look at fundamentals for a second we think the biggest fundamental driving who is bull markets in precious metals is money printing money central banks led by ben bernanke with the bank of england the japanese central bank going to be the chinese central banks all the major central banks in the world who rule affectively right. on the money printing machine now if you're an investor in precious metals any precious metal this is the best bet. and if that's the case if we were in a bull market for precious metals there's no and you know one percent probable that sue will outperform go to will go up more and go as high a it's from

a low base every every time we get a bull market precious metals there you would expect to go up a much greater percentage than you do go if you believe the precious metal story. well then go on if you don't believe you should wait ok i want to talk about good versus gold in a second but sticking on the central bank theme over the past five years since the beginning of this. big crisis the central banks around the world have increase the supply of their bonds or moneys by hundreds of percentage points in the u.s. for example they've gone from roughly fifteen to forty five trillion increase in paper that they're floating from the government during that period of time the supply of gold is maybe eight percent so here you have gold up eight percent supply about the price but the supply and the supply of paper is heating up multi hundreds of trillions of dollars and once again we cover in the first half the show again your take on this henry kravis of cobra crabbers and robbers they are now packaging their private equity into a public offering giving the public

a chance now finally to take a piece of cake they are after years and years of being a private equity firm isn't this kind of like ringing the bell that the bond markets about this is over the rally is over that are heading for a crash i don't think the almost new idea for a question of the sort of. u.s. treasury the u.k. go the most assets on us and we also want to get funds so it's not through any great vested interest in pomona gives i mean use on five and ten year treasuries of ten year gills and now below where they were the great depression well you know things might be better than. ok let's get back to gold and silver so there's traditionally a ratio between the two is right now it's a belief fifty two to one over to gold in the other price basis that's very extended in not the norm talk about that. depends how far you want to go back to try and guess what the norm is. if we correct what we say is in that

in a bull market go up a lot more and go than that ratio is obviously going to move a lot more if they were so well that drives part of this rally and that the compression of that ratio so it goes back to more historical sixteen to one or so if you know things as well. for example is just introduce a new futures exchanges which with much lower denomination contract. there's lots of people in china who can afford to buy so we call ins but they can't afford bug gold. is often referred to as a poor man's go so it's mass market i mean if you wore an investor and if you'll get in virtually nothing on deposit you're getting nothing in the bond market and you worried that all this money printing is going to cause inflation. gold and silver all the best things to turn to but there's a lot more the audience come by silver is much much greater than the go. thought on

this also is that if we're heading toward this collapse of the bond market and gold and silver once again becoming strategic and probably being monetized by at least one country possibly china the fact that britain only has three hundred tons of gold how badly does that position for this future re a realignment one of the i'm not sure the monitor in the way that it used to be. the balls who agreement for banks capital ratios is going to allow gold is going to move up from having a fifty percent risk weighted to one hundred percent risk weighted so it's probably going to be a private sector the commercial banks started to buy gold and use that as a monetary reserve rather than this or the central banks doing it i mean most of the central bank of england sell in gold two hundred fifty dollars an ounce of the one of the most foolish thing that anyone's of us and now we know why because they

were caught without the gold and they manipulate the market and gordon brown committed a heinous act of treason when i think about it they speak in but i'm sure he does well on the speaking circuit now in terms of price and last years ago the antitrust action and any gaps that they've been very vocal in leading the parade. in looking at these prices for manipulation for gold and silver there is currently investigations here in the u.k. h.s.b.c. is involved and there's a lot more scandal of course that on a day to day basis all the major banks including the bank of england are involved in cooking the books manipulating the market. years thoughts on the gold and silver manipulation what what's going on there number one and number two my follow up question is does it matter from your perch as a technical analyst you know in other words manipulation of prices versus the

technical analysis that doesn't matter is there it does or does it does it only you know who works as a tactic. because. we were told in the theory that the market is bigger than any one particular player and history of. any any market want to look at i mean the market the central banks of most tried to rig in recent times is the foreign exchange i mean with all the futile attempts by the bank of england supposed in at any one particular level and the market has always won and they had a huge vested interest in. huge political will and. whole establishment was over a period of time since the second world war tried everything so suddenly there was a kind of a three is never what the market is always one so. if it didn't work for exchange with an enormous will to keep it in a particular level i don't see any reason why it should work in golden witness the

fact that gets or is alleged that there is this sort of semi official official attempt to keep the process go down if there is it hasn't worked very well because go is going up every year virtually for the last twelve so if there was an attempt to suppress the process hasn't worked very well some would argue that the prices. has been creeping up despite the massive elation going on living as though the ability to keep that manipulation going is weakening and this these rallies would come as a result of the banks losing their ability to put on those a naked short sells in those other sober manipulation schemes that we see out of the out of the bank. they were been explained to me. way as the interested central commercial banks trying to suppress the process go and sue and there's got to have a gold mine in shares and so much as i call believe for a minute that the central bank gives one for the price of

a suit of mind share is the. foreign exchange have a massive interest and they failed in that so well there's two points number one you're saying that ultimately the market prevails yes but clearly there is tension between paper and paper money gold and solar and if you're a gauge of quantitative easing and you're committing at the bank of england has done to hundreds of billions of dollars of pounds to keep interest rates low and to drive money into paper then the corollary the natural corollary of this is to is to keep money out of gold and silver as you point out less than one percent or less of the global investment. funds are in precious metals despite the ten year bull market despite a ten year bull market these metals less than one percent of the investable assets are in precious metals because a lot of part it's known on the street and in the city these prices are being managed by these banks now if that that they lose that ability and then best win percentage goes up by one percent or two percent a couple of things happen a precious metals jump out of the box and go into

a huge rally you're saying five hundred percent jump in silver in three years that's that that's a result of having been suppressed for a number of years i mean it's a baseball is being held underwater that they're letting go and boom that's a huge move gold words are going to gold you have a target of gold i got me really don't know. we think go is going to go to two thousand five hundred dollars an hour from the current seventeen hundred dollars an ounce which is roughly fifty percent increase but that's compared to what we saw was going to i mean between between june and september so we went up fifty percent from twenty six dollars to thirty three dollars and never got mentioned anywhere so when silver has huge moves fall bigger percentage moves in a go. ratio we think. is quite cheap relative to gold as well ok let me let me finally ask you question

follow up on this james turk was and a couple days ago and he was saying we making the point that gold. pretty clear phase one of a bull market its interface to silver is still in that phase one hasn't broken down what i'm hearing you say today reiterates this point so can one say that buying so it's a low thirty's it's almost like going backwards in time and buying gold at nine hundred dollars an ounce is i think. that would be the way we would look at it but the conclusion. i mean what he's saying. is that the upside is considerably greater than the upside to go given the same level of money in the central banks are involved ok you know williams thanks so much for being on the kaiser report thank you and that's going for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guest in williams charteris treasury

portfolio managers if you'd like to send me an email please do so at kaiser reported r t t v are you until next time x. guys are saying. you know how sometimes you see a story and it seems. so for langley you think you understand it and then you glimpse something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harvey welcome to the big picture.

q. you.