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 r but because they live in the big house k k r o b belt out of ghana by the state and everyone else of being 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 ranty a's this want to join the k k r

class well they've got just the product for you k k r's 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 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 a scam. it's going to lowes 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 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 wrist 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 in net numskull advisor to the bozo the clown contingency of cars another guy who's taken a big commission up front to help j.k.r. offload their risk to the vast majority of idiots in may 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 a blackstone or the two big giants and 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 though why would the smart insiders selling off this this this property why would they be selling it unless it was in fact the 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 guided down to zero by the corrupt central banks the 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 risk put into new entity floats on the public exchange and johnny numskull here the professional consultant advisor for the finances of millions and billions of people and buying into that risk 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 is 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 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 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 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 to do all the 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 them over stamp put them on a floor 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 k.k. our queen listening playing elizabeth thank you they are is in your backyard 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 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 there's. 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. so there is nothing else

left in the economy other than their fraud and ponzi scheme so when news 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 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 when this bond collapse

coming i would say if coal kohlberg kravis and roberts is no bundling all their bond risk and selling it to the public then the timing is now all right well it's a full circle isn't it because 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 that a sucker is at the poker table if you david cameron is that sucker all right since you never thanks so much. as the report thank you stay tuned for the second half abi talking to in williams about silver.

cut. 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. parents versus social workers docu nabbing b.m. lap dog it could be that kidnapping children have become a prize used to fight for why does the law threaten families of the social fold if you see me in the frame of the her right probably more three feet but they have any

kind of suspicion about. food or fewer children are often it is better at bringing up kids than their own mom and dad. and from what we have an industry that is so. concentrated form. of the for true true. blue to be soon which brightened. soon from the finest impression. starts on t.v. dot com. i am ask eyes are welcome back to the chasm report time not to turn to n.y.

i'm serious chairman and c.e.o. of charteris treasury portfolio managers in wa come to the kaiser report good ok in one ear recently made headlines with a very bold prediction first over you say that summer 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 to send your patent so. every. city every year with the year and into the night you both so but every single run is and it is in the year and into it 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 the idea that there's

a 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 they 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 personal struggle so with money 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 half a trillion in size if they just go from one percent to two percent that's the rebels what happens when you get a role the show would move in the process which is historically see if you would approaches the if you do good fundamentals for a second we think the biggest fundamental drive in whose bull markets approaches metals is money printing money or central banks led by ben bernanke where the bank of england the japanese sent. going to be. chinese central banks all the major central banks in the world rule affectively go right. on the money printing machine now if you are an investor in precious metals any precious metal this is the best bet. and if that's the case if we are in a bull market for precious metals is 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 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 crisis the central banks around the world of increase the supply of their bonds or monies 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 go all the paper supply the price but the supply and the supply of paper saving up multi hundreds of trillions of dollars. once again we covered in the first ever show again 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 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 oh i think almost new york headed for a question 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 public goods i mean it was on five in. ten year treasuries of ten year gills and now below where they were in 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 over to gold price basis that's very extended in 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 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 if you know other things as well china for example has just introduced 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 call. it so often referred to as a poor man's go so it's mass market i mean if you will an investor and if you'll get in virtually nothing on deposit 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 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 feature 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 way to do one hundred percent risk weighted so it's probably going to be a private sector commercial banks start in a buy gold and use that as among the true reason where all the necessary 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 food anyone's it was in now we know

why because they were caught without the gold and they had to manipulate the market in gordon brown to made it a heinous act of high treason when you think about what they speak in but i'm sure he does well on the speaking circuit now in terms of price and last few years ago the antitrust action in 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 which of course shows that on a day to day basis all the major banks including the bank of england more 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 it manipulation of prices versus the

technical analysis doesn't matter is there it does or does it does it only you know who works as a technical. because. we were told in the theory that the market is big than any one particular player and history is. any any monkey want to look at i mean the market the central banks of most fraud. the rig in recent times is the foreign exchange. the futile attempt by the bank of england to suppose that any one particular level and the market is always won and that a huge vested interest in. huge political will and. whole establishment was over a period of time since the second more wars tried everything so suddenly there was once a kind of a three is never what the market is always one so. if it didn't work for exchange with that enormous will to keep in

a particular level i don't see any reason why it should work in golden with the fact that gas 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 for the last twelve years 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 relation 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 the naked short sells in those other sober manipulation schemes that we see out of the bank one never been explained to me fully weier is 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 can't believe for

a minute that the central bank gives one fig what the price of a suit of mine share is. unlike foreign exchange which will 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 a tension between paper paper money gold and solar and if you're a gazing quantitative easing energy meeting at the bank of england as hundreds of billions of dollars pounds. keep interest rates low and 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 smart it's known on the street and in the city these prices are being managed by these banks now if that is 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 then 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 guess we 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 small compared to what we think it was going to do i mean between between june and september so we went up fifty percent it went from twenty six dollars to thirty three dollars and never got mentioned anyway so one has when still we get has 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

a question to follow up on this james circles and a couple days ago and he was saying we are making the point that gold has a pretty clear phase one of the bull markets in a phase two silver is still in that phase one as a broken down and what i'm hearing you say today is reiterate this point so can one say that buying so over say the low thirty's it's almost like going back. time and buying gold at nine hundred dollars an ounce. and i think that would be the way we would look at it but the conclusion is the side i mean what he's saying is if it's true well what i'm saying is that the upside in silver is considerably greater. given the same level of money printing 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 herman our thank my guest in williams charteris treasury portfolio managers if you'd like

to send me an e-mail please do so at kaiser reported r t t v dot are you until next time next guys are saying. you know how 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 everything you thought you knew you don't know i'm trying hard welcome to the big picture. we have. groups. all.

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