old as it seeks to diversify its foreign reserves away from paper assets if you use as risky first deputy chairman alexey do you have said on thursday oh yes well we've been talking about two trends over these four hundred episodes a number one is the bond apocalypse which is coming and now in death the warning about it in the bank bank of america just issued a report saying that the bond market is ready to go through one thousand nine hundred ninety four type crash so you're going to spike higher the governments because they're half dead because are zombies and were incapable of managing this economy in such a way as to effectively transition to a higher yield normalized environment they let instead the bond bubble built to three hundred year exchange now the bond pocalypse is upon us and russia quite smartly and china and other countries around the world are getting ahead of this by buying gold and they're buying gold aggressively as we've been saying that they should do yes now the first stage of this financial war was characterized by the

fact that the banks didn't trust each other there was no interbank lending and now this sage of central banks and governments not trusting each other is of course like the first great depression the previous great depression anyway you know that starts to lead to world war is now the bank of russia has built up the world's fourth largest foreign reserves worth five hundred thirty billion dollars and ten percent of that is in gold. yeah that's right and as we head into a hot war from the cold war which is a follow on to the cold war and so we're going to see the fireworks start to explode here shortly and of course the music is stopping and those who have the gold are going to be in a better position to countries that are in a horrible position would be britain and japan they have virtually no gold and they have they're totally exposed to the high. that's coming in things like oil now

over here in the u.k. we've moved here because we said that the economy is going to collapse here they've announced recently a triple dip recession they're heading into triple dip recession the economy continues to decline. david cameron threw a hail mary pass of saying we're going to have some referendum in like five six seven years' time lord knows when somewhere out the future so in a destabilizing this already unstable system but also here's a heaven from the past week this is very interesting because we interviewed simon rose of save our savers and he noted a few months ago that there's this weird confusion in the u.k. between deficit and debt the deficit of course is the annual budget deficit of the government and the national debt is built up over decades who knows how long it's been building up and how big it is here it's close to one point four trillion pounds but david cameron tells porkies about britain's national debt david cameron

on i.t.v. said this quote though this government has had to make difficult decisions we're making progress we're paying down britain's debt and now we're going to cut to a party political broadcast where he's telling these porkies he's confusing the british population between deficit and debt but i know people don't just want to hear. they want to know the facts that's why we're letting people know exactly what this government's sheaves so far. i would say the deficit is going to maybe by one point five percent to three percent three percent of your skills are right i would say all right so i'm going to probably dartrey it's gone down but i'm afraid that i am which. is good but i think that's pretty good going i think that the dumb well yes so the

spectator referring to this political broadcast says as you can see people were asked to guess how much the deficit is going down they guess low figures two percent excedrin and are then told that it's actually twenty five percent then they say how impressed they are with the tories have you spotted the trick. new normal person knows what deficit means nor should they they're saying it's a policy wonk the word that they're just using to confuse people this is financial propaganda statistical propaganda so you flood the market with bogus numbers yes the debt in the u.k. is now one point four trillion and it's spiking sense the coalition government came into power but what people don't mention is that the total indebtedness of the u.k. if you include private debt on the balance sheet of the corrupt four major banks of fraud that's another four trillion pounds of debt so it's not one point five trillion a one point four trillion of debt it's actually five point four trillion in debt

it's a three four five hundred percent g.d.p. number and that's why this economy is severely in encumbered and has no prospects of growth whatsoever because it's one of the most indebted countries of all the g. twenty countries i think it may even in fact be the second most indebted of all the g. twenty countries now. i t.v. polled the population here and only six percent six percent of the u.k. population realized that the national debt has been increasing ninety four percent didn't know this because of all of this propaganda when in fact david cameron's policy is to increase britain's debt by sixty percent more than any european country to increase it more over five years than labor did over thirteen years just yesterday we learned the national debt had hit one point one one billion pounds and it's heading to one thousand four hundred billion one point four trillion pounds

which by the way is about what the cost of the bailouts of the u.k. banks is that that number the connection is not a coincidence and not only is the debt growing but there is no growth it would be one thing if there was debt was rising in the growth was rising but you have growth shrinking negative g.d.p. a triple dip recession and rising debt so this economy in the pound sterling as we've been saying it's already crashed against gold but it looks like it's going to crash in relative terms against other currencies as well this british pound is is not worth the paper it's not printed on. and by the way i want to quote something that you said on twitter which is a quote of thomas jefferson to preserve our independence we must not let our rulers lotus up with perpetual debt we must make our choice between economy and liberty or pro fusion and server two that was in a letter an eight hundred sixteen where he was saying we don't want to end up like the brits where we start taxing food drink labor at that time we weren't taxed on

labor in the us and that this was the what was the problem with national debt is that you leave it for future generations and this is what the spectator notes in this article is that this is one of the most insidious sort of lies that you tell a population because the fact is that the national debt must be paid by our children and. and children well they also say that inflation is low however what's this horsemeat scandal about it's about swapping cheaper made for other made us inflation what's the tainting of food here in the u.k. about watering down the milk selling tainted food at the supermarket selling horsemeat for tell me if that's a form of inflation you're swapping out cheaper goods for other goods and you're creating stealth inflation you know the portions are getting smaller and you know you go to tesco and you buy a portions and they're less they're smaller for the same price so you're saying there's no inflation oh that's a lie there is a place in this goes back to the romans who during their inflationary period would clip the coins and you'd have

a stealth inflation that's what's happening here now i do want to know at the comment on the you tube of this party political broadcast that people were buying his lies i just read you one of them i mean this is like the kindest of the comments on you tube from tink one eight eight the gallows or being david you treasonous prick. well you know what's great about this country is they have a tower of law that you know if they've got the infrastructure to decapitate the bad guys they just got to act on it all right stacy ever thanks so much for being on the cars report thank you max stay tuned for the second half hour be speaking to an williams of charteris treasury.

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people do their best to help. the distance. move the room a need. i am max kaiser welcome back to the kaiser report time now to turn to n.y.m.

the chairman and c.e.o. of charter us treasury portfolio managers and welcome back to the kaiser report ok and last time you're here we're talking about sever you had a bold prediction you were looking for a hundred fifty dollars on silver it's up six percent already in twenty thirteen what's what's the update. oh so far so good i mean. roughly in a small way what we what we thought we might do it's going our it's pretty much gone up every day this year and it's help of woman go which is something else we thought would happen and we think there's a lot more potential in the navy i mean the u.s. marine the stock. sell in sulaco and their way of making their thing there's a shortage this issue it is a shortage of developing the silver market is that correct this is just a massive demand for the silver coins in a comin them fast enough. and all supply of so far is not that great

a comes out of the ground right so it's been several million ounces exactly and unlike go in the big differences between gold and silver is the central banks sit in the way with tons and tons of silver and no central banks don't own any so they have loads of gold but they don't any so so so isn't this not this immediacy of supply that can suddenly hit the market people are confused by silver because it's both a monetary metal but it's also an industrial metal careers down solar and of course are these huge solar arrays being constructed around the world the use of silver now people are buying it as a monetary metal and there's another in thing relationship i'd like to talk for you talk about between the price of solar versus gold in ounces or there's a relationship there historically it usually would be sixteen ounces of silver to one ounce of gold these days is what fifty or fifty three ounces of silver to gold this is huge gap let's talk about that first of all on the solar panels it takes two thirds of an ounce of sue for every solar panels monied and as the technology

starts to get more advanced. solar power is potentially the big big growth market in all of the emerging world and it also lives in the home countries so countries like india. the potential increase in. solar panels in a country like india which doesn't have a great national grid but i loss of sunshine is phenomenal and then you look at all the arab countries and mean it what it's all about price is all about how it how solar is price relative to all but again if you look at. the got huge amounts of unused land in the desert but loads of money. but they've got no water it's a no brainer some stage is going to fill the desert up with solar panels and use the energy to convert seawater into into freshwater and so it's huge potential for solar is enormous far more them on

a global scale and on wind farms or so desalinization of seawater is also use with the solar array where you use the energy you use electricity in the water and effectively convert the other moment that's what they do but they use oil to which is it doesn't cost them anything because he comes out the ground for virtually nothing but but there's some stage you can see a situation where all these vast really rich countries and growing countries all around the world solar power is going to be a major on to their energy let me ask a question of something out of china i think may have maybe more insight into it but there was a report last week that production of the the apples twenty seven inch screen for their computer which uses solver they actually had a whole production because they couldn't source silver it is a real problem and it was the same with this u.s. mint can't can't get enough silver to churn out these coins so they've had to

temporarily halt sales of the coins but we know what's going to do is make people more interested in them you know if you hear something this massive demand for something and they've had to temporarily suspend it makes even more people interested in buying them and you know it's a poor man's gold so there are not silver exchanges in. the far east and in much lower denomination amount of money so it opens the audience who want to invest in precious metals to a much much wider audience lot more chinese citizens combust silver coins and they can afford to plug. now a lot of people talk about manipulation in the silver industry and in the gold and gold markets the. goal but also it's over there's a huge. investigation into this and one thing i've noticed about the silver market whether it's the economics of the b.m.a. is that the quantity of sell orders that would knock the price of silver down

a dollar is one fiftieth theme the number of buy orders that it would take to move the price of silver up a dollar in other words the way that the market is currently configured. right there's there's a perpetual there's a constant seller there fifty times bigger than any buyer and of course and some days they sell one hundred percent of the annual production of silver a single day from that from that seller so it's kind of a foolish investigation if these markets are being manipulated because clearly with unequivocal a they are being manipulated with these huge sell orders that for the most part are naked short in a bank like j.p. morgan who is selling these naked short contracts they've got enormous exposure to their balance sheet and will point to the banks have to mark to market these enormous naked short positions and is this going to lead to a mark down of these banks and then from there i want to get into their exposure to

the bond market a little bit but what are your thoughts on the choice of a handbag which is now part of j.p. morgan and this which was on the foreign exchange this was right next door to the gold bullion so we see that she sit next to these guys and we didn't. to see them taking any big positions and a lot of what they did was customer driven so if it is j.p. morgan that goes into the futures market and sells you know a big lump of. very often or go very often they had a mining company or a custom that they would do it some financing deal with and it was purely hage and it's very easy. if you're a futures trader sit in the pit and j.p. mode come in and so a big lump of silver you don't know with their proprietary days you don't know with some of the loan agreement where they let the mining company some money and they've had to for some production you don't know what drives the deal where you can see is

them doing it you have absolutely no idea behind what driving the transaction they did the industry the mining industry silver gold mining they have a need to hedge their output to lock in prices and to get some predictability in their earnings stream. variable i'd say yes it would look like american barrett big gold miner for example they have gotten rid of all their edges there they've cancelled their heads and their net buyers of gold in this market and we've seen in the last three or four years so i understand you're saying that there is an industry need to be hedging and see this all the time but the industry's been unwinding their edges and we also have a very unseemly relationship between j.p. morgan who's got a ninety trillion dollar director's portfolio in the federal reserve bank in the treasury so is there a customer is there a customer of the federal reserve bank of the treasury how much of how much overlap is there it will only on the page and be hitching in the lane when the marketing go and so it was started off in sort of the end of the century most of the miners

had big hedges on their books and there was as the price rose of coles the shares of the mine as it didn't have pages massively outperformed the ones with pages because the ones with pages weren't getting the full week's benefit of the rise in the gold price there's a huge shareholder pressured and for that on the likes of barack. as a classic example to buy back all the hedges which they gradually been doing but then if you if you bank still insist that if you're a mining company and you want to borrow money so again mining company wants to develop a mine or wants to do some cap ex in need some cash if you go to the bank the bank won't very reluctant to lend money to mining companies without locking in. some percentage of the future production so it's not that the mining companies want to hedge the production themselves very often it's the only way they could get the money the other way is to issue more shares which the share the existing

shareholders so then suffer dilution and they don't truly want that either so very often if they if everyone is commits prices going up it's probably better to borrow money from the bank rather than issue shias and the bank will nearly always insist that thirty forty percent of the of the of the production is hage because it's they need few days to risk a transaction for the bank because the price goes all over the place and they do they can't guarantee future repayment of the luck you mention mining there's a lot of talk about what would you call peak gold or peace over how close are we to this seeming like south africa the gold is really down the trickle i mean that paid to ages ago curious so what about silver and gold how is it we hit peak gold peak so mean is probably about three or seventy to one ratio there's a similar amount along this in the sixteen seventeen so on is more so over in the cross and there is go to is if you look at the performance of the various mining

companies it seems that the silver miners have fewer problems in expand into maintaining their production than the gold mining companies a lot of the silver money is based in mexico and there's a lot of sort of left behind from when the spanish first started mine in it's when when they invaded spain. in mexico and in a way there's not much gold left behind in south africa which the all the easy go did south africa was ripped is it going to mention mexico also with passage of nafta under clinton it allowed for north american miners encounter particularly to go down to mexico on a new trading engagement and reopen mines silver mines that have dormant for years and they get anything modern technology to track and sell for ok there's a silver coming out of the ground but it's seven million ounces but it's being bought up by the industry and we're running out of so around there's that worse at what point do we have a silver shortage crisis because you're saying two things there you're saying that

supply is pretty ample but you're also saying there are shortage of bottlenecks developing is it a distribution problem where we're at this point does it become we see the evidence that the what will happen is there is massive potential demand for so which is why we think the process will rise much and as the price rises the mining industry will respond to rising prices by starting to mine some of the surplus still is still possible to mine in mexico because as you rightly say when the spanish wool mines where they could only dig out what was really easy because they didn't have access to those mobile technology so there's a still big lumps of silver the spanish never bothered or couldn't get out of the modern money in this region get so but they're only going to do that in response to the high price so the high price comes first and then the mining activity will follow us over as one fifty is and and since you've been here you don't see any

reason to step away from that from that price target is pretty much for filling the charter you're looking for i mean we only put this full cost out just before christmas it's already up six percent or seven percent this year already it's already outperforming. and we see the. continue ok we have about thirty seconds left i just wanted to touch briefly on what i call the bond apocalyptically guilt markets was in a three hundred year high it started to back off this is the u.k. bond market ready to correct this big to a. big time like like how badly how like where are we going with the well i think the last big. treasuries was at ninety ninety four well a failed long bonds fell twenty five percent in six weeks and i think what you're going to see over the coming two three years will make nine hundred ninety four look like over because to put in

a rotation from bonds into stocks and billion precious metals yeah yeah out of out of what will be deemed to be monetary cash and bones which is the value which is probably going to get inflated away into what will be real assets which will be equities mainly at the moment blue chip cookies and then it will trickle down into also into commodities and into ultimately the biggest beneficiary we think will be money is now absolutely all right even once we're out of time but thanks so much again for being on the kaiser report ok thank you. all right that's all the time we have for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest in williams of tartars treasury if you like to contact us please tweet us at kaiser report at facebook dot com forward slash kaiser report until next time x. guys are saying bio. limitless

supply lists. lists. live. live live live

. i've. lived lived. lives . the first baby steps are joy. folds and bones are not a big deal. but they can cause terrible trauma.

for children can be broken by bare touch. and only the will of life can make old pains and sores weigh. fragile people on r.t. . you know i can kind of sort of understand the mindset of an evil dictator i have trouble understanding what is going on or maybe not going on in the minds of the terrified cogs who believe all the propaganda give up all their rights for the illusion of safety to coach jerry seinfeld who are these people well maybe some of them may be working at your local school braindead bureaucracy zombies at a pennsylvania school suspended a kindergartner note kindergartner as a terrorist threat because she threatened to shoot another student with

a gun that shoots soap bubbles i guess this was all a mix up because the girl she wanted to shoot didn't understand that it was in reference to bubbles and not bullets children in kindergarten can often misunderstand things but the administration of the school seems to be no smarter than six year olds immediately going into total panic mode guess what this is hardly the first time that something like this has happened remember the kid who pointed a piece of chicken at a teacher and said bang the thing is that the real terrorism of the event is that the mental slaves of fear propaganda that work at these schools are raising a generation of children to be just like them somebody shoot me with a bubble gun that's just my opinion. you're. up.

to speed. with. the. we're. trying to make.