thirty nine percent of lloyds max and the shares are booming shares left as it was announced it made two point one billion pounds in the six months to the end of june compared with a loss of four hundred fifty six million for the same period last year so the share stamp eight percent they would jump four percent this morning and everybody saying well now the government can sell this thirty nine percent share they have right the government like enron has accounts that they work with that are undisclosed and they use those accounts to buy shares and lloyd's to jack up the price they're manipulating the price of lloyd's number one number two the number that oz born uses as the break even number is pulled out of his bottom it has no relation on the actual cost it's not adjusted for for example inflation isaan adjusted for the amount of money that savers have had to just scorch to keep this zombie banks afloat that's number two but the list goes on and on and on these four banking

apocalyptic money centers in the u.k. are being kowtow to and of and for that to the ruination of this economy yes ok so you bring up this breakeven point and this article in the b.b.c. talks about it because this morning the shares are at over seventy six cents and that is well above the price of sixty one p. that chancellor george osborne regards as the breakeven level so he has his own break even level which is a lot lower than what the real fact is because the government actually bought the shares at an average price of seventy three point six p. during lloyd's twenty point three billion pound bell out at the height of the financial crisis but the average market price at the time was sixty one p. so they book the difference as a loss and put it on to the national debt exactly the national debt continues to go higher in this country because of number a. or that george osborne regards as

a breakeven number it's not a number that is mathematically accurate just like the c.p.i. or inflation number in this country is not mathematically sound it's a number that osborne regards or mark carney the new bank of england chair will come in this week and start talking about his goals as fed or bank of england chairman and he'll give goals like we're going to keep interest rates low for a certain period of time and we're going to expand the g.d.p. but all of these numbers and concepts are constructs are abstractions are not based on economics they're not based on mouth and they're not truthful osborne and carney are now a dual aapl a stick lying machine that are going to drive to things a housing bubble that will burst in the next twenty four months causing untold misery and be the u.k. pound to collapse in a hyper inflationary calamity now you bring up housing bubbles because this is the important thing so thirty nine percent of the shares the lloyds are owned by the tax there but the bank said the increase and mortgage lending was helped by the

government's funding for lending scheme so mortgage lending increased to fourteen point five billion pounds in the first half up from twelve point three billion pounds in the same six months last year so two billion pounds increase in mortgage lending and they're crediting this funding for lending scheme with so it is the government's funds which boosted the earnings of lloyds which now we're celebrating because the government owns lloyds as well right another word for that is ponzi scheme and just like bernie madoff ponzi scheme or you call it the straw man is buying the shares in this case the straw man being osborne he's buying his own share same thing in the bank of england they issue bonds that they themselves buy back in the open market so that is a classic definition of a ponzi scheme they're inflating this enormous real estate share bubble the thing that got them into trouble in two thousand and eight instead of reforming the banks they simply attempt and have succeeded so far in blowing a bigger bubble if they wanted to increase the wages of people in the u.k.

they could do one very simple thing. increase the wages of people in the u.k. simply double the minimum wage you don't have to go through the machinations of manipulations through the bank of england pay some foreign hockey puck damage to the brain mark carney to come in there and spill a lot allies on the b.b.c. and take a lot of money that is going to distribute those bodies in the banking industry claiming it's going to increase jobs and minimum wage is a line where you liar sack of poop all you need to do actually throw the banks under the bus instead of the population and just raise minimum wage were you get the money for that the bank of england at zero percent interest rates what was told the people have a bank that they can call their own why only bank fraudsters like lloyds h.s.b.c. royal bank of scotland barclays one they only have a pet central bank in the don't bet mark carney. i got

the deposit of the. why don't the people have a central bank why so here we have a situation with the lloyds the government owned bank is seeing an increase in earnings because the government loaned money to banks to lend to mortgage holders now we have a situation again where the straw person comes in because remember the stop person is buying for somebody else who is unwilling or an able to actually for it themselves so now we have to help to buy scheme what is the help to buy scheme these are people who cannot afford the twenty percent deposit so the government george osborne is sending a check directly to the house builders for the twenty percent deposit for people on able to afford the deposit so the way says this is a great thing because the added that growth of as much as three percent and the next year mortgage lending is expected thanks to the help to buy initiative which

seeks to put more people on the housing ladder if you want to have. people in a position to afford housing make it possible for them to have greater wages stop outsourcing to foreign territories stop blowing all your money protecting foreign territories and league with america on a bloated defense budget stop cowtown to a terrorist central bank organization like the bank of england it's been a terrorist in sixty nine before three hundred years of uninterrupted terrorism. that's how you get people to be able to afford housing you don't say oh we're going to make it for them but we're going to give them the money circulated through a corrupt banking system call that profits and then when the housing bubble bursts as it most certainly will within twenty four months if it doesn't burst within twenty four months i will eat my shorts on this show guarantee it's a if you go to lloyd's take a bet housing bubble burst within twenty four months you'll make that's the only

way going to make money in this economy so you break up central banks we're going to move to that but i want to go back to another part of wikipedia about this straw person a straw person is also a person of no means or one who deliberately except a liability or other monetary responsibility without the resources to fulfill it and of course central banks don't have the resources to fulfill all these obligations they have to the bond market of all the bonds they're buying this becomes illegal if the debt goes paid and fraud has found to be committed so let's look at this with the next headline bond losses a federal reserve top one hundred ninety two billion dollars the yield on ten your u.s. treasuries has surged sixty six percent over the past three months max and at the end of the july the federal reserve at one point nine eight trillion in u.s. treasuries that's about just over half of their three point six trillion dollars balance sheet now so guggenheim partners points out max that our estimate shows

that the spike in bond yields since the first quarter this year has caused the mark to market loss of one hundred ninety two billion dollars on the fed's holding assets equivalent to approximately all of the unrealized gains that the fed had accumulated since it began to implement quantitative easing in late two thousand and eight although in keeping with their own accounting principles the fed does not record mark to market losses a continued increase in bond yields would incur actual losses should the government decide to sell assets that they would agree actual losses. two points or number. one the debt being held by the central banks is down on exponential growth patterns of the moon the interest cost on that debt is down depending on which corrupt country you're talking about and their central bank whether it's the e.c.b. federal reserve bank bank of england backs or pan is twenty five thirty thirty five percent of the income they collect from taxes goes to paying the interest the interest on the debt once the taxable receipts cover fifty percent or more of the

interest on the debt you answer something called hyper inflation the only way to control it of course is if the government and the going to propose us mark carney will propose a song you know soon when it comes down speaks of the people to the pledge that occupy this god for saken rock and the druid atlantic will say we're going to increase g.d.p. by engaging in untraditional bank central bank policies he's going to start buying stocks are going to start buying mortgages are going to start buying everything that's not nailed down he's going to start putting it on the balance sheet of the central bank they'll issue the collateralized pound by rent still collateralized by mortgages don't collateralized by tourists that are vomiting in the street and try to sell that as a chopped up there on the main street of the high street they'll do whatever they can to avoid the bond apocalypse but the bottom pocalypse is doubt coming interest rates on the ten year note are creeping higher they can't stop interest rates on the ten year from going higher as it is that they can't stop saturn from orbiting around the sun it's on

a thirty year cycle like just like saturn and now interest rates are moving higher if i was born thinks it can blow appreciator up there into the universe and stop saturn from orbiting the earth that's about as probable as stopping the ten year interest from climbing higher that means all the tracker rates go into negative equity that means the bond pocalypse is here that means that everybody in the u.k. on a tracker rate in the mortgages goes negative equity they go underwater they're going to be carried out on a stretcher it means the most fabulous glorious spectacular heinous crime of finance ever committed the biggest bubble blown and collapse in history is here now with the rising ten year note as i predicted on the show of the boat apocalypse. again finally here on this story this is the strong person they're unable to pay it nobody is able whether it's the mortgage holder but even the stall person the guy is like posing as the you know the one putting down the posit or buying the bonds making the economy the economy is bankrupt so they're buying the bonds to make it

look like a healthy economy and a healthy market and a liquid market for the debt of america and the u.k. but they can't afford it they can't afford these losses they can't afford to sell their assets so everything isn't frozen in time like the straw man in the wizard of oz i was born as no brain and killer is a cowardly lion. and more dirty is the tin man trying to pass off as gold all right that's it for this part of the show stacy ever thanks so much for being on the kaiser report thank you thank you for the second of all what more. the main competitor girl on the market is mother nature. may customers struggle with to. fight for each drop some of those dirty supply.

let people think their prices purer water. on our t.v. . they use it up there and wash their hands. and flush their toilets with the same. mystery's is selling and spraying water. right. first street. and i would think that your. on our reporters twitter. and instagram. to be in the know. on law.

there's a media leave us so we leave that maybe. by the same motion suit your. play your party has a goal to push is that no one is asking with the guests that you deserve answers from it's all on politicking only on our team. you know 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 tom harpur welcome to the big picture. welcome back to the kaiser report imax keyser time out it's hard to laura well obey

of the move your money campaign in the u.k. laura welcome to. right laura will be you are organizing a campaign to get public money moving out of the too big to fail banks the headlines in the local papers on the way read public urge to wage guerrilla war against big banks tell us about yeah well we all know that the banks have got us into a lot of trouble in the economy they don't treat us very well as customers move your money it's about giving the power back to customers and say your money is worth something you cammies it and if you're not happy then vote with your feet and move to a different bank there are different organizations different financial institutions that may actually chime more with your past on values and where edging people to move their money and think about what they do with it now the public oh yes of course these too big to fail banks in other words you magic a moving money out of these banks they have other problems which are that they only banks that they're part owners are do they have representation in these banks or they have a say what's going on just because the government owns those banks doesn't mean

that the public have a say in what's happening with them i mean for example r.b.s. is a very big bank it's owned by a set it's got money in more tax havens and any other bank actually the public should be saying enough is enough and this isn't just a message to the banks it's a message to the government as well and they haven't done enough to reform banking they need to think a bit more about the consumer and how the consumer is protected by moving your money you can send a signal to the government just as much as you can the banks and from september when seven day switching comes in which is the rules have changed the banks have to move their current account within seven days it's never been easier to me that and that's a really good time for us to get this message across ok so starting in september are new rules coming in and you can move money around more rapidly more quickly less hassle and the idea is to try to take money out of these banks because that's their life blood so to speak to pressure them into pressure campaign moving your money out of these banks the banks themselves there's some other issues here for

example let's say one of the big banks in h.s.b.c. or barclays or a lloyds is. when they get in trouble all or if they suddenly find themselves without capital or deposits they run to the bank of england and the bank of england gives them money half a percent or near zero percent there's an unholy alliance if you will between the bank of england and the too big to fail banks there's a there's a few ways that the banks can avoid being held accountable and they've done a fantastic job in avoiding being held accountable it just b.c. of course was caught laundering drug cartel money they paid a small fine banks have been caught mis selling products involved in fraud involving scandal there doesn't seem to be any legal framework in place at all that banks have to adhere to there are no laws that apply to banks at all your thoughts in britain i think we're a society that believes in fairness and the problem with the banking system is the people in charge the banks people be responsible for money have not been treated

equally with anybody else if. those of us who've been trustees of a charity or been directed to small businesses bill cohen some of this activity would be put in jail or criminal action would have been taken and there's a real sense of injustice in the public that some of the action hasn't been taken that people are being allowed to gamble with our money on the flip side people are very scared about their money and what to do with that part of their mind thinks gosh we should keep our money in a big institution because that's where it's safest and we don't quite know about the small ones and the more that people keep their money in those institutions and think that it's not movable the more that get away with bad behavior being not being questioned and we're saying actually whether you've had a fifteen pound bank charge or whether you're unhappy with bonuses or i mean h.s.b.c. money laundering is just outrageous if you're unhappy about that then why is your money still there you can move it your money will be protected in any of the

institutions whatever size by the compensation scheme and you've got an opportunity to do something and now it's. it be easier and i think people do want to see the government make sure there are sanctions for people who misuse our money and affect our economy in that sort of way and by moving your money we can send a signal to the government. you know on dollars this week and the press. they've got banks reporting earnings for the quarter and the earnings are high and they run it as a live story something to celebrate not mention the fact that this is the result of social all ism in the banking sector they've been awarded they've been gifted billions of pounds for having committed fraud for having they been rewarded for their criminal activity so it's hard to imagine the banks cannot report profits being in the fraudulent business of accounting fraud and misselling and drug a lot of what i want to do want to being subsidized by the state which many

philandering is and which quantify easing is and you know we're here to represent the consumer more i find you know i'm not from banking i'm a customer just like anybody else and what i find really upsetting is the fact that there's so little information that we can be given reliable information that we can be given its consumers to understand some of their stuff and understand what that impact is and what it really means and i want to try and get more information out there who can understand that understand that yes they are posting a profit but also r.b.s. still have money in tax havens and also they're still getting subsidies from the government and somewhere along the line we're still funding our banks through different methods and just because it's a profit one side doesn't mean that banks safe and secure doesn't mean it's still not relying on the state and it's a very confusing situation and there's nobody really trying to dispel all those meths and and clarify what that really means for you as a customer. there is a double standard here. erging this idea of

a surveillance state where there's millions of c.c.t.v. cameras and people have to be surveyed twenty four seventh's there's no privacy and emails are being written read by the state and the state of the u.k. is actually allowing the us to come in and read the emails of people here in britain but when it comes to banking they say that national transparency needed there's no accountability needed we just trust them even though they've been caught repeatedly committing massive fraud but i want to ask you about another campaign that's going on from the archbishop of canterbury here in the u.k. he wants to outcompete the toxic banks are lending institutions like wango for example he wants to urge people to go to kind of move their money borrowing from not from the payday extortionist like along but to credit unions and other folks like that also the occupy wall street group has just started a co-op bank in america to try to compete to strays outcompete the banks my question is what do you think of this idea instead of just centrally moving the

money out what you think about this idea of starting parallel institutions or parallel banks or just put them out of business by offering a better service i think it's absolutely necessary and the big problem that we have in the k. is that it's really hard to become a new competitor in the market so you may know that the big banks actually own the backend payment system that i think runs through i don't explain that well i don't know it's a lot of technical detail i love the fact the whole banking system is so of reliant on some ancient better vitæ so many sad state of affairs but basically in order for a small pond and to offer a current account we have to have to be able to access the payment system and the minute it's too expensive to do that because i drive by barclays noids t.s.b. . something on the banks of competition issue yeah vince cable has a secretary if you have to say would you be competitive we want to modernize the back end payment system to allow for competition but by not doing so he's anti-competitive yes and the big problem for the. archbishop is his words really

good and he's right in one sense we need to outcompete but in order to do that that they need to be access all sorts of payment systems those might happen there years away from fighting a credit unions that could be competitive to one dot com and at the minute we need to make more media what we need to do is protect the public by not allowing the post to be exploited in huge amounts of interest to be charged allowing new if you take a payday loan to switch to a payday loan and another provider really quickly what you can't do again comes back to switching in consumer power and the government saying oh yeah we've got banking system that relies on a monopoly on the i.t. at the backend that stops anybody else entering it is estimate we can do about right so the argument that one is market driven is false why is monopoly driven by exploiting a state sanctioned monopoly outdated infrastructure. you know in banking in a friend current accounts the i-t. systems biggish i don't quite know how the back end of one go and all of that sort

of stuff works payday loans a different current account ok but in other words of longest offering loans annualize interest rate of five thousand percent the fact that there is no betting able to compete with something better shows that you have a. comparative environment but let me jump forward to another kind of concept a broader concept i know you're not a banking expert or say here just more of a consumer advocate yes and you're saying you know that this is obviously something bad happening in banks and we can move our money but there's let me just talk about kind of money in general here because there is a merging something which some myself i think coined this phrase of interest rate apartheid in other words if you are a friend of the insiders in the city of london you can borrow money at half a percent or one percent if you're just a working stiff here in the u.k. you end up on a credit card which is double digit interest rates or you go to a payday loan words up to. as you just said five thousand percent annualized

interest rates so it's discrimination through interest rates that discrimination is illegal in this country you can't discriminate based on sex you can't discriminate based on color why is it possible therefore to discriminate based on interest rates how they get away with that is that a human rights issue is does that as a read of as a british citizen make you a bit sick and. it certainly comes back to our earlier which is about fairness and it doesn't just happen in banking the money you know if you want to pay cattle it tricity me to pay more for your gas electricity and some going to direct debit and those who poor tend to pay more for their services and as we know those who are more money seem to spend less and less and less so. i would say that a government should be there to eradicate inequality in that and the fact that people can exploit a new poster recently and charge an unrestricted amount of interest on those who might need that help at the end of every month is about exploiting and it's limited

because the government says there are benefits payments in this country which is under reform there's going to be a three day wait period between when the eligibility for the benefits are made and when they hit the account that means that that was a gift to payday lenders like wanga from the government so it's just our george osborne literally wrote a check to wangle on behalf of the u.k. taxpayer slipped it into the c.e.o.'s pocket as is it just a bribe is he just is he just a corrupt politician or say stupid i think in politics that as. a mixture of cock up as well as conspiracy i just don't think they've thought through the system much well but they are. out as a possible it's all they're going to say like oh i made a mistake we made more money we did it again we made more money because we just keep somehow making more money in the public just keeps getting stronger not quite like today he's holding holding that money for the three days before he. people's

bank accounts because somewhere somebody well it's called that what if i hadn't got in trouble with a few decades ago and they claim the interest on the spread over the various we all know if we go into online banking we can move money between our counts and other accounts between other banks quite quickly the government to do with retail is ridiculous and not necessary and a government should be looking after those who are the most vulnerable and not creating a system that's usable pushes people to do you things that are against have an interests. they are not at all money i had but we should embrace should be challenged. little will be right time thanks so much for being on the kaiser report thank you that's all the time we have for this episode of the kaiser report was a max kaiser and stacy herbert i'd like to thank our guest laura willoughby of move your money if you'd like to get in touch tweet us at kaiser report until next time ask either side by a. well

known talk about language as well but i will only react to situations i have read the reports. like. to know i will leave the state department to comment on your plan a plan. to carry out a car is on the job here no. thank you no more weasel. when you need a direct question be prepared for a change when you know you should be ready for a. critical stage a little down to to freedom. hold it. hold it. liz. please.

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