judges in egypt called for a nationwide strike against president morsi extensive new powers that critics. who . key vote which could potentially force a referendum on independence from central government. politically incorrect. foster children are torn from the. social workers question their support for the u.k. independence party. and up next. a different way that a bank can generate profits in tough economic climate don't go away.

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. 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 percent 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 all 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 on or k.k. 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 eales wecker low yields on. treasury bonds it's super we can go to the fed's discount window and borrow a zero percent well actually you can't unless you're

a bank right is own anshul jim crow laws so it's fine 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 had 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 r but because they live in the big house k k r o b belt 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 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 a bell 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 are about to crash anyone buying into this k.k. our scheme is going to lows seventy five eighty ninety percent of their investment can't pay our 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 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. are 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 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 no why would a 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 collecting and you know you need to feed the ducks when they're quacking so the vast majority of the population out there are having to have their interesting come on their pension accounts guided 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 risk put into new anthony floats on the public exchange and johnny numbskull here is a 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 his men his his boss and all the 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 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 load a stamp put on a flag 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. are you know queen listen to me playing elizabeth thank you they are is in your backyard threatening you claire did you blame for this country and drive the snakes of kin. 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. 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 know that 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 what 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 all right 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 that a sucker is at the poker table if you david cameron is that sucker all right since you never thanks so much. as a reporter thank you say to inform. the second is me talking to anyone about silver. in the. preamble to war lords could be notes we have a lot of. groups of the callers who sued sluices also argues in the

right enough to find out it was like many of them out h. it wasn't forced marriage it's the smadi when i was fifteen years old you can't liberate other when you certainly can't do it through the barrel of a gun salute if social changes can be the afghans themselves afghan men and women we believe going to spawn can not truly cross paths without the patient it's coming up on the show and that it comes to actually stop 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. the.

line. would be soon which brightened a few pounds from funds to pressure these. stunts on t.v. don't. imax keyser welcome back to the can as a report time now to turn to who is chairman and c.e.o. of charteris treasury portfolio managers in welcome to the kaiser report ok one of you recently made headlines with a very bold prediction for silver you say that will rise five fold in the next three years tell us about it. it's based on a combination of technical and fundamental cyclical as well and one of the interesting points of looking at the so i call it so with is an almost perfect ten

year they send you a patent so. every year. go with. c. 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 and we are now in two thousand ok now viewers watching will some of them all well listen to this and it sounds a bit. arcane 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 a 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 well known it's 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 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 the realm of 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 drive in this bull markets in precious metals is money printing mother central banks led by ben bernanke with the bank of

england japanese central bank going to the chinese central banks all the major central banks in the world ruled affectively run. out of 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're 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 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 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 is setting up multi hundreds of trillions of dollars. once again we cover in the first. michel again your take on this henry crabbers of color 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 that bell that the bond markets about that is over the rallies over there are heading for a crash 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 he was on five and ten year treasuries

and twenty gills and now below where they were in the great depression well you know things might be better with an. 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 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 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 over going to move a lot more if so what 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 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 wore them best and if you'll get in virtually nothing on the polls it you're getting nothing in the bond market and you worried that all this money printing is going to cause inflation. go. all the best things to turn to but there's a lot more the audience come by silver is much much greater than the combined 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 them for this future re a realignment 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 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 stone inable i go and use that as as among the true is necessary the central banks do it i mean most of the central bank of england sell in go two hundred fifty dollars an ounce of the one of the most food think anyone's of us and well now we know why because they were caught without the gold and they had to manipulate the market and gordon brown committed a heinous act of high treason when i 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 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 which of course shows 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 for. your perch as a technical analyst in other words manipulation of prices versus the technical analysis of the matter is there it does or does it does it only you know who works as a tactic. because. we will always work on the theory that the market is big than any one particular player and history. any any monkey want to look at i mean the market the central banks of most tried to rig in recent times is the foreign exchange. the futile attempts 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 huge whole establishment was over a period of time since the second more war has tried everything certainly less one day three days never was because the market is always won so. if it didn't work for exchange with that enormous will to teach in a particular level i don't see any reason why it should work in golden witness the fact that gas 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 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 warning never been explained to me fully weier is the interest in central commercial banks trying to suppress the process of gold and silver. and it's got two of its gold mining shares and so much as i call believe for a minute that the central bank gives one fig the price of a sort of mind 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 gauge of quantitative easing and you're committing at the bank of england as the hundreds of billions of dollars pounds to 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 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 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 guess he 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 from twenty six dollars to thirty three dollars and never got mentioned anywhere so when silver get has huge moves fall bigger percentage moves in a go we will see if that. ratio you're. we think. this 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 and a couple days ago and he was saying we making the point that gold. pretty clear phase one of a bull markets in a face 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 the low thirty's it's almost like going backwards in time and buying gold at nine hundred dollars an ounce is i think so 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 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 i'm 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 report of r t t v dot are you until next time x. guys are saying. secret lumber tour. was able to build its most sophisticated group which on crudely goes into gear would do new found any tunes mission to teach creation why

it should care about humans. this is why you should care only you don't call. parents versus social workers. last stop get me the land that good men and children have become prizes to fight for why does the last threaten families of a social fold if you see me in the form of they have a right of will hold many more faith in what they have any kind of suspicion about the world more food of your children are also just better at bringing up kids than their own mom and dad. from what we have an industry that is so. concentrated on the other for trade with children.