our 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 belled out of gas 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 rented this 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 a bell is being wrong that the bond market is out of top because kohlberg kravis roberts k k r is packaging all of their long term interest rate risk into a new security that they will 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 joe. 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. our scheme is going to lose seventy five eighty ninety percent of their investment take a r. 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 as you see the epicenter of the matter they're all corrupt they take huge profits and let this trash get into the marketplace j.k.r. offloads their risk the public they are exposed to austerity and then what pennies they have left they get raped by k.k. our henry travis 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 know 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 and 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 carers 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 k.k. our offload 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 ended because the k.k. are blackstone or the two big giants. carlyle group is 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 a smart insider selling off this this this property why would they be selling it mostly 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 you know the professional consultant advisor for the

finances of millions and billions of people and buying into that rez guaranteed capital last 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 receipt. 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 i mention 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's gone 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 his men his his boss and angela merkel 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 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 don't leverage buyout of the queen and all the spawn of the queen and the duke and get get rid of this debt put a mother stamp put them on a fly but get rid of all as physical entities because they're muck it up the economy as soon as you threaten that of course there will be a genuine old fashioned do you believe the queen will say i do think. it is good. queen listen to me playing elizabeth thanks they are is in your back yard threatening you claire did you blame for this country and drive the snakes of can't you are another private equity groups out of britain do your country fare her 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 there's. derivatives products fraud for. odd 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 coaches gone zomi 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 if interest rates go up even a fraction of a basis point they're going to be wiped out so how effective 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 if you david cameron is that sucker all right since you never thanks so much. as the report thank you. for the second half i'll be talking to you in williams about silver. wealthy british going on. on.

the. market why not. find out what's really happening to the global economy with monks cause or for a no holds barred look global financial headlines tune into kinds a report. download the official location cell phone choose your language stream quality and enjoy your

favorites from alzheimer's t.v. is now required to watch all its heat all you need is your mobile device to watch ati any time. do we speak your language of any form of the law and out of the. news programs and documentaries and spanish what matters to you breaking news a little tonnage of angles couldn't stories. are you here. to enjoy all teach spanish find out more visit i to allahabad all tito's comb.

it in sorrow. and hope for escape. barely surviving longing for a godsend. they live in a search for gold. why doesn't it bring them wealth.

i max kaiser welcome back to the cause the 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 good ok well you 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 with is an almost perfect ten year. every. city every year with the year ending to the make you both. so but every single run in the year ended and we're now in two thousand ok now viewers watching will

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 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 it was very very low it was very low one percent one percent of investable assets around the world

are in precious metals metal strug go so with money still 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 dollar mark and 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 irrelevant what happens when you get a role 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 a bull markets are precious metals is money printing money central banks led by ben bernanke where 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 we can have and if that's the case if

we're in a bull market for precious metals there's no and you know one percent probable that sue will outperform go go up more and go as high a it's from a low base every every time you get a bull market precious metals there you would expect super 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. ok i want to talk about versus gold a second but sticking on the central bank theme over the past five years since the beginning of this crisis the central banks around the world of increase the supply of their bonds or money is by hundreds of percentage points in the us for example they've gone from roughly fifteen to forty five trillion increase in paper that they're floating from they've got. during that period of time the supply of gold is maybe eight percent so here you go the paper supply 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 crabbers of cobra crabbers in roberts 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 it isn't this kind of like ring the bell that the bond markets about that is over the rallies over there are heading for a crash i don't think almost new york headed 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 goes i mean he was on five and ten year treasuries a 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. right now it's a belief fifty two to one so over to gold 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're saying is in that in a bull market will go up a lot more and go than that ratio is obviously going to move a lot more if so well that drives part of this rally and is that the compression of that ratio so it goes back to more historical sixteen to one or so little. things as well china for example is just introducing 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. it's so 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 the polls it you're getting nothing in the bond market

and you're 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 the 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 really realign. one of the i'm not sure the money 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 stone in a buy gold and use that as among the true reason. central banks do 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 i well 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 last few 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's currently investigations here in the u.k. h.s.b.c. is involved and there's a lot more scandal of course that. day to day basis all the major banks including the bank of england more involved in cooking the books manipulating them are in the . 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 time to go 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 big than any one particular player and history. any any marquee 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 when it's all the futile attempts by the bank of england to suppose that any one particular level and the moment is always one and they had a huge vested interest in. huge political will and. whole establishment was over a period of time since the second more wars tried everything certainly was one of

the three is never what the market is always one so. if we didn't work in foreign exchange with an enormous will to keep stood 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 price of gold down if there is it hasn't worked very well because go is going up every year virtually for the last twelve this so if there was an attempt to suppress the process which hasn't worked very well some would argue that the prices has been creeping up despite the massive elation going on but it wasn't as though the ability to keep that manipulation going is weakening and this these rallies would come as a result. banks losing their ability to put on the naked short sells in those other sober manipulation schemes that we see out of the out of the bank. never been explained to me. way as the interest in central commercial banks trying to suppress

the process go and sue and it'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 a price of a sort of mind share is. unlike foreign exchange where they 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 paper money and gold and solar and if you're a gaze of quantitative easing and you're committing at the bank of england has done to hundreds of billions of dollars 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 yeah as you point out less than one percent or less of the global investment. funds are in precious metals despite a 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 vestment 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 didn't go it's 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 small compared to what we think it 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. as huge moves fall bigger percentage moves in

a go. ratio we think. is quite cheap ready to go as well ok let me let me finally ask you a question follow up on this james turk was in a couple days ago and he was saying we're making the point that gold. pretty clear phase one of a bull markets in a face to silver is still in that phase once there's a broken down what i'm hearing you say today reiterates this point so can one say that buying the low thirty's it's almost like going backwards in time and buying gold at nine hundred dollars an ounce. i don't think that would be the way we would look at it but the conclusion. i mean what he's saying. is that the upside in silver is considerably greater than the upside to go given the same level of money prints 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 to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guest in williams charteris treasury portfolio managers if you like to send me an e-mail please do so at kaiser reporting r t are you until next time x. guys are saying you know. we have. like many. it wasn't course the smadi when i was fifteen years old you can liberate their women and you certainly can't do it through the barrel of a gun salute the social changes will be the afghans themselves

afghan men and women we believe i'm going to sponsor him not to across. but. it's a position and that a construction but it's the people in the obama administration talking about how much they care about the women of afghanistan it's not true they don't care about the women of afghanistan. lose. lose.

sleep. look. please please. please .

peace peace peace peace peace peace peace peace peace peace peace peace peace peace. peace. talks.