tv Keiser Report RT October 28, 2017 10:29am-11:01am EDT
because report yeah things are happening right well apparently max kaiser stacy herbert kaiser report were right help to buy has mostly helped house builders boost profits so that's being fair and balanced of course some people say that help to buy in the united kingdom was a ponzi scheme but ponzi schemes do help some participants the good news is that some of these are listed companies in the united kingdom and their profits have boosted so that is a boom to the economy well certainly to a certain class of people within the economy that's the good news because remember for the united kingdom we've got to say good things about whatever fraud is committed there has to be a positive side to it presented so we're presenting the positive side and that's the house builders have done well this is a new report out and the chancellor philip hammond is lining up another ten billion pounds to extend the help to buy programs first launched by george osborne in two thousand and thirteen which is already sucked up ten billion pounds of taxpayers'
cash yet a report from morgan stanley not usually the type to stick the knife into a flagship government policy lays bare how this colossal saw has been almost entirely wasted. yeah it's interesting because under margaret thatcher there was a transition away from public housing and government assisted government underwritten public housing and they sold off all the council estates as they're known people bought into these units across the country and they became the land owning the new land owning neoliberal gentrification under the current government in the u.k. it's another socialist scheme of government underwriting property but not for the poor people they do it for the rich people so it's a very strange the u.k. economy is it's socialism for the rich and they want it for. margaret thatcher
rejecting socialism for the poor and now they've in britain there was a transition period where it was market economics for about twenty years and now it's come full circle to socialism for the rich so this by to help but help to buy scheme is a government underwriting program for wealthy people the average home of course is skyrocketing out of reach for the average person in the middle they're all being relegated to the back to where they were pretty fat or a permanent underclass of poor people with the wrong accents and it's back to a kind of a medieval lords and serves yeah of course your talk about the right to buy margaret thatcher introduced the right to buy so the british taxpayer had collectively built all these public housing and then how you get the taxpayers to knife each other in the back of course what you do is you say you people living in that free public housing reduced price of public housing will give you that
property you can buy that you have the right to buy it for seventy five percent discount sometimes of market price on the markets that value say would be five hundred thousand pounds we'll let you have it for one hundred thousand pounds i give you four hundred thousand pounds of the tax payer the national wealth will transfer it to you so of course there's people like boat margaret thatcher yes yes they are all of taxpayer bill housing was given away by stature for votes and we see the same thing happening in other sectors like transportation so the taxpayer built the rail system and transportation system in the u.k. and then the conservatives sold and they said current services know the private sector can do a much better job running these things so they sold it to the private sector who in turn sold it to the social welfare states in europe germany and france so the pensioners are looked at getting the tolls on the in the money. that in the u.k.
it's just rotation that works to pay their public pension schemes but british people so going back to this help to buy because remember now house prices are too expensive for anybody to afford. house builders were suffering for that because nobody could even afford to buy a house so they're in the business of building houses but nobody could afford it so interest incomes the government and the government basically was giving giving you a residence twenty percent of the deposit in an interest free loan i think they had to be able to come up with some of the money but the taxpayer is backing all of this those billions have not helped by years the money has gone almost entirely into the pockets of the giant housebuilding firms which of raise the price of developments by almost exactly the amount made available by the government all it has meant for first time buyers is more misery by pushing up house prices so morgan
stanley went through this in order to get this free money from the taxpayer you have to buy a new build you can't buy an old house have to buy a new property so these new properties which always have a premium to old properties they had a slight one now there's a fifteen percent premium to new properties to an old property versus an old property this is the morgan stanley the through the data and they found that ten billion pounds exactly into that gap that will then close they say this is why they report from morgan stanley they're worried that because house builders in the united kingdom have seen their earnings triple since the introduction of this and their profits boom in the share prices boom that it could decline should this program ever and they were kind of concern trolling to make sure the government continues this polish just under scamp. but you might well you might say that but philip hammond mother thinks it's
a great project. we have to say that by law in the united kingdom so philip ham is mother thinks it's great his cabinet thinks it's great the house builders think it's great so and morgan stanley i think is right they're telling is that we need to extend this that's right in the interest of impartiality yet a lot of people think gravity exists on planet earth but there are a few people that don't think gravity exists on planet earth that's to fulfill our requirements of the b.b.c. to fulfill the impartial some people think there's also showing those gravity well but also a life you might say bernie made off wife ruth thought his he was a genius and his his returns were fantastic and his his investing methodology was great so like you can't just say bad things about bernie made off you got a good. don't need a lot of money he did a good thing he donated a lot of his ill gotten gains you know the thing is about the story about the game
is that people say oh the government is going to provide some money for me to go buy a house but they don't understand that the builders warehouse all the properties first and you're buying the house from the builder who's already scraped and scalped the fifteen percent rip off that you're not going to get anyway well i'll show you how much it's helped this government program has helped not the ordinary person they might feel better because they have this loan to have a property and they feel like they're on the property ladder and that's part of how you have free wealth in the united kingdom but make no mistake about just how much help to buy has fueled developers profits the new build market is increasingly reliant on help to buy with the large builders barrett taylor wimpey persimmon suggesting that about half of their volumes are helped to buy purchases and what a brilliant. making we has been morgan stanley says help to buy
a broader house price inflation among other things have helped house builders earnings triple since its launch so again that's good for them you can't deny it's not good for those c.e.o.'s and executives in that those house building firms so we're speaking positive about those people there's very well there's a socialist program for rich people and. is a socialist and the conservatives oppose this continuation of socialism for the rich not socialist on principle because it doesn't expand it doesn't extend to everybody it just extends to it if you want they create the environment in which the government is giving free money to victimize class of people these are the rich and the britain who feel that they're being talked poorly about behind their back and words that their own comfortable with are being used against them like
toff accent or ok so let's move on to another story and this is another government intervention in the markets in the social system in the anything that makes the society remember margaret thatcher began this wave of privatization and deregulation deregulation saying that there is no society so we have to destroy it we have to get rid of any of the institutions of society remember that propaganda and the. much of the media is that it's outsiders destroying faith in our institutions and yet look at another institution we have the property market the how how a roof over your head that's being destroyed here education you send your little children to school to be educated to learn to become valuable members of society what used to be called society. collapse a academy trus asset stripped schools of millions wakefield city academies trust
now stands accused of asset stripping after it transferred millions of pounds of the school savings to its own accounts before collapsing on september eighth it released a statement announcing it why divest itself of its twenty one schools as it could not undertake the rapid improvement our cademy need is that the new sponsors will be found to take them over so remember tony blair introduced this program started out with if you found a corporate sponsor like you could rest control from local authority we're now a housing in the united kingdom all local authorities have no control over housing and their authority now they have no with control over education is being stripped away by these academies if you could find a rich donor to or corporate sponsor to put up ten percent of the funds they would get twenty five million pounds to build a brand new sparkling new school and of course all the local residents would want
to send their kid to the shiny new school rather than the old black but they did state school which doesn't look as good so anyway this school has been now collapsed another collapse but they transferred hundreds of thousands of pounds out to their own sort of pockets for equity swap so any time a financial as a sector in the u.k. in this case the education sector you're bringing in the privateers the charlatans who want to spend financial eyes and corporate ties to you then extract all the equity and replace it with debt we remember we've talked about for example with arcadia philip green's company of famously he did something similar with his wife in monaco and then he couldn't pay the pensions so they just apply that profiteering scheme you see in the private sector to the newly private sector of education the newly private sector of transportation the newly private sector of
health. and the n.h.s. being destroyed in the u.k. again too because the rich people feel that we sometimes use lying was there they're not comfortable with and they're victims so the department of education of course says that the trust class will not leave the schools out of pocket because of course there's always the taxpayer which can like no house bill in a bank no no none of these guys will ever be out of pocket so the taxpayer will take care of it but i want to point out another truss that collapsed i we love to we're out of time so we'll have a next time state of the second half a lot more coming your way.
there what is driving the tip of the day is basically you do. tend to be demagogued screaming this is what food did today i. do not always see india's use. because more and more fundamental challenge. no exclusion when they try. they come to get enough to go to we have you on your world. about your sudden passing i phone we just learned you worry yourself in taking your last wrong turn. you're out to us we all knew it would i tell you i'm sorry. so i write these last words in hopes to put to rest thanks that i never got my chance. i remember when we first met my life turned on each breath.
but then my feelings started to change you talked about more like it was again still some are fond of you those that didn't like to question our arc and i secretly promised to never be like it said one does not leave a funeral the same as one enters a mind it's consumed with death this one quite different i speak to you now because there are no other takers. to claim that mainstream media has met its make. them hot dogs may not only be tasty but also deadly for elation ship between kids sure it was suggested but not proved and a fairly strong one there were two thousand right out so involved in the study it's a very extensive study done by a well respected scientist. do chemicals that down the appetizing pink color really
increase the risk of cancer nightrage remains are known to infuse damage in the large intestine is it a shared skepticism they do not believe that their risk is yours truly by independent scientists so did the needs industry paid you for this i received some compensation for my time as was the others why is that the meat lobby definitely do like what we've been doing and if you want to learn more you'll get a definite on seeing the outflow you are only here and do not come back to. is it big business against health. as it started to show us. all stand ins saved.
welcome back to the kaiser report imax keyser time now to continue weather a conversation with michael pence of pent up or dot com michael welcome back thanks for having me back on the next night so your report lemmings in full gallop toward the cliff you talk about you know various reasons why the market might be overextended and due for a big picture and not might it would almost every metric be even the gap the ratio which is twenty five point five it's crazy is ridiculous you cannot justify these valuations we talked about the first segment almost one hundred forty percent of the economy it's just ridiculous it's a bubble it's a mania yeah now i want to end badly though i don't know the exact date but it's going to end badly it any report yet you say it all hinges on this anticipated tax cut yeah about that that the tax plan has
a biggest tax cut in the history of tax cuts and history when you think well i mean there's no way to pay for so unless all these tea party republicans are more used to be i spoke at a tea party rally where them but we have you ever read where are the where to send tele started oh yes well i mean ron paul started it to be honest with you but since telly added to this you know he's going to florida was saying we need to start a tea party revolt no it was funny you know democrats love debt and deficit and republicans hate debt and deficits but then when republicans come in power you know the deficit who cares about reagan twenty point six trillion reagan triple the silent trillion yeah and you know military is a great thing they spend on no i mean cutting taxes is a good thing you want to do you want to wish you would you want to do is you want to limit the public sector and embolden and empower the private sector so i haven't heard anybody say this let's cut taxes and let's cut spending to where is that was
nothing we can cut in this country nothing so we're going. it was going to blow up the deficit which was six six six six hundred sixty six billion dollars in fiscal two that was right down yeah well the fiscal later mayor ends in october your name is spent oh that's like a pentagram and that's what the witches are worshippers you. know. praise jesus i say what i'll say is it's a very big number it's of rising as a percentage of g.d.p. but nobody seems to care about debt and deficits anymore it's ok to increase the deficit as long as we're going to get rapid growth but when you have twenty point six trillion in debt in the national debt and you're running your deficits at a very quickly approaching a trillion dollars per annum you know you're going to have a bond market catastrophe on your hand if you're not careful the bond find in the bond bubble pops and yields spike prices go down i question how much growth you're really going to get by giving corporations a little bit more of their money back well the bond pocalypse as it's called on par
i love that you know we've been waiting for the bond apocalypse or somebody wrote a book about that a couple of years ago yeah and they have your book coming bond market collapse right that one that you know they come out two thousand and twelve and that's why it's so wrong about this i'm wrong because central banks here's a guy who actually said i was wrong say i was wrong i thought the bond bubble would pop in two thousand and sixteen hasn't i read that hasn't been enough heavey and said the same thing now you made me look bad. i'll send you an apology so why is it not pop yet because central banks haven't stopped dominating and usurping the entire free market away from all asset prices here's why pharaoh's they're buying everything that's not nailed down and they're buying every bond printed in bank of japan's buying everything why is it not called that monetization it is is that what happened why my republic is why is the dollar not crashing because if everybody does it concurrently there's nothing that the dollar can be represented dollars say why is the dollar crashing the dollar crashes against other currencies so if you measure it against things like bitcoin it is rationing if you are to stay. michael
you got it now you lenders will eventually what's going to happen is the next recession comes upon us and it's going to happen shortly all of the central banks are going to have to admit that hey you know we can't really raise the fed funds rate much above the fed can't raise the fed funds above one quarter percent and the e.c.b. can't really end its taper and the bank of japan can't even think about tapering its asset purchases it's seven hundred billion dollars a year in asset purchase and then all currencies crash concurrently against hard assets and maybe even. to say i will say that i will say that we're just car like that have been a's central bank is going to go in the stock market as harvey weinstein. i mean the the central bank in japan is kept rates near zero point zero zero zero one percent ten year nothing here a ten year note the bet that the nation of japan is lending out money ten years
borrowing money for ten years and getting giving people zero percent and here's the problem you mention japan it could be here's one of the things i'm one of the lancy i measure money for a living ok so it's not my idea to buy a bunch of gold and short the stock market and they are you feeding them are you going into. the model portfolio is up both yours not signal huge dollars the market but it listen i have a hedge portfolio so if north korea bombs the united states tomorrow we're not going to down in the portfolio probably either maybe making a little money i don't know but. everybody else to get wiped out so here's the point the bank of japan is going to be the possibly the only central bank on the planet a major one that's going to be in the money printing business in two thousand and eighteen and in that case you know i just got reported that the snap election for those three years. he might be witnessing the why more hyper inflation because that
could really really start tanking as it's visa the the euro the dollar and that will bring that country to its knees ok so you measure a country or similar thing i'm sorry no i talk a lot of no no no i actually want to also talk to you the right way for i don't want to you will leave the gate there's no stopping michael punt it will be like the model of the like the you know the horse race of kentucky every year the colts neck they didn't like the doldrums. derby of michael pena so if you're a nation with zero natural resources and you have to import energy and everything else that you consume is that a good idea to have a currency absolutely collapse that it's going to happen in two thousand and eighteen that could be the catalyst for massive market chaos next year these are things i model this these are things i look at to start increasing the gold position to increase my short positions so i make money on the way up and i could make one hopefully god willing on the way down right does an important qualification to make for folks watching at home that might be interested in what
you do and the services that you provide you have a portfolio that is i guess you could say and then you can go short and market turbulence and you do have some exposure in gold yes right person settles in general precious metals and we can currency currencies and commodities plays to so we're not there when i want to say i'm up fifteen percent this year and everything's going to be great i could do that but everybody's doing that ok but talk to me you know nine hundred twenty nine is coming nineteen eighty seven is coming nine hundred ninety nine is coming two thousand and eight is coming it's coming again and you don't want to be the one caught up in that mess right i mean passive investing has had a stand the sonnets been working fabulously well against managed folios for ten years twelve years but everything as you know it season and we may be entering a time now where more active management is in favor. and the indexes that are not hedge their simply exposure to the s. and p.
five hundred what have you could be the last place you want to be in so and that's actually to stay on our toes as always but the getting back to japan for a second so my comment about it being the one of pouch overseas harvey weinstein and other words every single speculator in the world every has flown in the world to get the cheapest money in the world they first go to japan that's where they get the cheapest money in the world is the cheapest hooker in america in the world is japan because that's where you can finance your speculation talking about a carry trade yeah you're borrowing in yen and buying every other asset in the area the higher yielding asset in the car if you can find an asset even to the end treasury bond bank three percent looks great if you're borrowing at zero from japan and then you have maybe hedging that wrapping that with a hedge of the u.i. you know i pay you know a bit of a fee on the head you're just carrying two percent for free and then you can just borrow that if you go to london they have what's called the indefinite. hypothecation yes to infinity yes you can you can borrow against that was no limits
whatsoever you're just state you're just draining money from the system it's actually the ceiling money and here's a scenario that you just laid out i think is very a code a very cogent argument for why you need to be ahead strategy so let's just say i'm correct and the e.c.b. tapers by the end of october two thousand and eighteen we're selling we being the federal reserve is selling fifty billion dollars per month so that's when i went to school six hundred billion per year of treasuries and mortgage backs per annum that's the annual pace. and the currency the japan currency the yen simply collapses ok that causes economic or stock market chaos to erupt in japan what happens then is that people start selling their stocks in japan and they also causes global turmoil which means what i have to sell my europe positions i have to sell my day. dollar base positions and i have to buy back again you're going to
have the collapse and then talk about currency volatility could scream higher and just wreck that nation to be just totally wiped out that nation that's what i'm worried about those are the things that you won't hear in other places but the kaiser report is that something that's very very very important to understand is something that could guarantee to happen next year no but it's very likely to occur and you have to be looking for and aware of it and hedge against ok because we're talking about contagion and we've seen examples of what happens in two thousand and eight the subprime market became contagious and we had the global financial crisis because the academics told us that real estate across the neighborhood and gold down simultaneously and that different regions all of those go down in different rates of depreciation that was wrong and we had the two thousand and eight meltdown and the subsequent bailout in one thousand nine hundred seventy we were told that no sovereign nation goes bankrupt and you had the russian ruble collapse and the collapse a long term capital management in one thousand eighty seven i was working on wall street we said we heard that portfolio insurance will cover all losses you just had
your strategy and you're fine and then chicago new york went into a contentious eco technological meltdown and you had the crash of eighty seven so here it is today by the way we have before the insurance today in many forms you know has this all the time just selling vix or just right my right i mean where is the volatility there is no volatile in this market any longer and i know i sound like a sander and some some cases i'm sure you do as well but. history on the money bit coy i sound like the most profitable money manager recommended strategy in the world my portfolio of gold silver bitcoin for the lessons two thousand and eleven as upper for more and buffett has flown the world every market index in the world and apple computer maybe that apple computer well but before memory i am the most profitable investment giver on planet earth ever in the history of what i. think it continues to exist thank you so much but continue on yeah with what you were.
talking about portfolio insurance which exists today just selling naked puts buying volatility to the point where you know selling volatile times or selling volatility where you know you're selling puts you selling volatility where there's hasn't been a five percent correction in how long can you remember last time we actually had a legitimate bonafide correction in this market right selling naked puts is usually a recipe to end up in the graveyard it always has been the risk there is extraordinary i mean the people who were selling naked puts in eighty seven were carried out on a stretcher well what happens when the volatility goes to zero as we are today you have the naked put sell has to go closer and closer to the strike price yeah that's the problem but i was her biggest options producer and the sheer saleman hutton says you know what over the years row you know i've sold and bought more options probably than anyone watches and i'm sure. so you know the problem we've got darn it i wish we could go on but we must leave thanks for being on thank you thank you always banks that is going to do it for this edition of the kaiser report with me
feel i shall go ok. yeah use on this will separate you from time to time for us hoping to go much but i feel a lot of the behind of you. she just put out she did the militia recovery will. be. killed in a moment to get his beef be done of this not to show this not to be but i mean. look you'll. get to live it up with what.
fears will people been saying about rejected in the sixties full on awesome the only show i go out of my way to punch you know what it is that really packs a punch oh yeah it is the john oliver of marty americans do the same we are apparently better than food. and see people you never heard of love redacted tonight president of the world bank hate because he really meant it seriously he sent us an e-mail. i. spain's constitutional crisis hits boiling point as catholics in the a proclaims independents trade moves into the government and seize direct control over to come u.s. senator precious twisted to disclose personal messages and accounts held by wiki leaks social networks lawyers are set to testify in congress.