but that's just my opinion. welcome to the kaiser report i-max kaiser is george osborne the straw man of treasury secretaries according to wikipedia straw purchases any purchase where in the agent the straw person agrees to acquire a good or service like a mortgage for someone who is unable or unwilling to purchase the good or service himself. and the agent transfers the goods and services to that person after purchasing. the mind boggles let's get stacy herbert in error to discuss this yes max today this morning across the world i've been noticing that this scam that happened in the us towards the end of the housing market bubble which was

a famous case in arizona where this guy had a development he wanted to sell and flip all these condos so he got some straw persons to buy the properties and start bidding wars as if they were some huge demand for their property so with this in mind i would look at this headline no rush to sell lloyd's shares as bank returns to profit u.k. taxpayer now is 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 shares to eight percent they were jumped 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 better on disclosed and they used 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 i was 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 is on 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 it pieced 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 breakeven 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 battle 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 down to the national debt exactly the national debt continues to go higher in this country because of a number 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 way can 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 part 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 op listing 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 lloyd's are owned by the taxpayer but the bank said the increase in 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 from twelve point three billion pounds in the same six months last year so two billion pounds increase in mortgage length . and they're crediting this funding for lending scheme with so it is the government's funds which boosted the earnings of lloyd's 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

a 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 if they themselves by back in the open market so that is a classic definition of a ponzi scheme there 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. say and take a lot of money that is going to distribute those bodies in the banking industry claiming it's going to increase jobs at minimum wage is a line where you liar sack of pupae all you need to do actually throw the banks

under the bus instead of the population and just raised 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 fraudsters like lloyds h.s.b.c. royal bank of scotland barclays why do they only have a pet central bank in a little bit mark carney. i do think. i got some of the do you know 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 weight 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 the 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 ninety four 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 we're going to make money in this economy so you bring up central banks we're going to move to that but i want to go back to another part of wikipedia about this strong person a strong 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 in 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 somebody else would incur actual losses should the government decide to sell assets. right down in her actual losses. the two points are 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 rockin the druid atlantic he'll 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 the 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 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 this 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 was born as no brain and killer is a cowardly lion. and more dirty is the tin man so in the past ten office 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 half a lot more.

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welcome back to the kaiser report imax keyser time now to turn to laura well a bit of the move your money campaign in the u.k. laura welcome to the kaiser report all 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 anyway 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 and 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 public all those of

course these too big to fail banks and other words eradicate 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 and 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 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 days switching comes in which is the rules have changed the banks have to move a current account within seven days it's never been easier to move and that's a really good time for us to get this message across ok so starting in september we've got new rules coming in and you can move money around more more rapidly more

quickly less hassle and so the idea is to try to take money. these banks because that's their life blood so to speak to pressure them it's a 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 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 so there's 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 h.s.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

the 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 who can charge the banks people to be responsible for money have not been treated equally with anybody else if. those of us who've been trustees of a charity or have been direct to small businesses bill cohen some of this activity would be put in jail or communal 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 you 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 were ever sized by the compensation scheme and you've got an opportunity to do something and now it's going to 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 and that sort of way and by moving your money we can send a signal to the government. you know i noticed this week in the press here 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 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 this stuff and understand what that impact is and what it really means and i want to try and get more information out there so people 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 the. meths and and power fi what that really means for you as a customer. is a double standard here in the u.k. and very. urging 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 u.s. to come in and read the e-mails of people here in britain but when it comes to banking they say that no 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

a longer but 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 as but basically in order for a small bond to add and to have 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 that right and by barca's noids t.s.p.

. since you have a basic opposition issue you know vince cable has a secretary of the agitation saying would you be. we want to modernize the backend 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 they years away from fighting a credit unions that could be competitive to one dot com and 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 to another provider really quickly which 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 back end that stops anybody else entering it is that 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 backend of of one go and all of that sort of stuff works payday loans are different to current accounts ok but in other words of longest offering loans annualized interest rate of five thousand percent the fact that there is no winning able to compete with something better shows that you have a. competitive environment but let me jump forward to another kind of concept a broader concept i know you're not a banking expert or say you're just more of a consumer advocate yes and you're saying you know the obviously something bad happening in the 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're

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 five who 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 gas electricity 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 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 is 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 as jars are 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 their unassailable i made

a mistake we made more money we did it again we made more money. gosh we just keep somehow making more money in the public just keeps getting stronger not quite like today he's holding how did that money for the three days before his people's bank accounts go somewhere somebody well it's called red 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 a three day lag 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 things that are against her and interests . that have well not all money i had but we should be challenged. laura well being 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 with me max

kaiser and stacy herbert i'd like to thank our guests 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 oh. well i'll talk to my language as well but i will only react to situations i have read the reports but like. to know i will leave them 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 are you prepared for a change when you're going to be ready for a. critical stage a little down the freedom to. do we speak your

language or not advance. news programs and documentaries and spanish more matters to you breaking news a little tentative angles keaton's stories. you hear. live altie spanish find out more visit eye to our. political. culture. clint. good speech. and i. wish i.

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six months of starvation one time a guard say the hunger strike is on the wane but desperate bryza there is dig in the spider repeat of force feeding an invasive body searches. tough times for the u.k.'s use we'll look at the plight of jobless young brits two years after violent riots rocked london and other parts of the country. and russia's top court cuts the prison term for former oil tycoon mikhail khodorkovsky he'll walk free in a year istanbul. is two pm in moscow you were.