kiddish there is still a cast there carney is. that they know that's worth next to nothing in this economy they just wanted the kid. the mere existence of kids thieves in the u.k. it's a resoundingly indictment of quantitative easing because while the creepy cult of carney says that inflation is tame the headlines and the kids thieves tell us the truth about these times the headlines reads. train fares to outstrip inflation to rise four point one percent from the telegraph the headline reads pace of rising house prices outstrip the inflation with the economist predicting headline house prize grows get it seven percent energy prices and food prices are also outstripping inflation there are more prices outstripping than a pole dancing i mean first of all states ever if prices are outstripping inflation

isn't that then the new definition of inflation in other words inflation tracks the stuff you can say it's rising faster than inflation you have to say inflation is real is rapidly rising that's a strong well exactly because inflation of cost of things are rising however prices that were paid our fees our salaries are collapsing they're deflating rapidly and this is what we're going to see in the inflation deflation debate as captured in these headlines today london housing market reeses ahead house prices in the capital rose eight point one percent in the year to june raising fears that the help to buy scheme is fueling a new property bubble i might add that kaiser report with the very first to say this that this was a ponzi scheme will lead to add of control inflation and this is what is happening it's eight point one percent rise in house prices here in london across the u.k. however prices are also rising and everybody is blaming the help to buy scheme

right well it's important to understand that the government reports two point eight percent as the inflation inflation number this is and they say it's mitigating and because they look at a basket of stuff and they cherry pick what's in that basket to make it look like there's a low inflation big why because their response bill for paying interest on things like retirement benefits etc so there you have to if they're interested in misstating inflation and they do mistake inflation and they don't put stuff in there that is actually right. and price therefore they give a completely false picture and this is why people are scratching their head they can't figure out why inflation is so low their standard of living is collapsing is because the government is lying about the numbers they're using statistical so if astri they're not telling the truth they're lying and so house prices have been rising because of the funding for lending scheme last year then since early this year we've had the help to buy scheme the first phase of it now the article points

out that the second phase is coming in and the second or controversial phase of the help to buy scheme due to launch in january twenty fourth teen will make taxpayer backed loans available to purchasers of properties worth up to six hundred thousand pounds right well again this is all about the government buying votes in other words the people in a hole like i was reading a story about among women and all have had to turn to prostitution to get enough money to feed their kids i mean that's the result of us born ponzi scheme that's the result of cameron's ponzi scheme and tried to buy votes that are dead of famously in the eighty's she bought votes with turning council flats into speculative vehicles and now cameron is turning the same playbook let's buy votes by goosing the economy keep in mind that the overall debt of this of the u.k. economy is setting a record numbers and i'm predicting within the thirty six months it'll be over four trillion pounds so the taxpayer is providing the loans for these people who cannot

afford to buy the homes because the homes are too expensive and their incomes are declining so the taxpayer is providing these loans subsidizing the purchase up to twenty percent of the cost of these homes so what does fit ratings as have to say you can help to buy scheme may aid banks builders margins the second phase of the u.k. government's help to buy scheme will increase margins for homebuilders and may do the same for banks while creating contingent. liabilities for the solver the scheme will probably push up house prices but the likely impact on the number of new homes built is less clear so you know they claim that the aim is to encourage more home building so that there will be more supply for the increasing demand of a growing population however there's no sign of that actually happening it's just increase and margins increase and profits for a few select people who also by the way donate to the conservative party and it's

the sort of person that votes for them buying buying cash from the banks but when they say contingent liabilities for the sovereign was i mean what i just said i just said that the debt of the u.k. is going to go up that these by the let's games and this reinflating of the housing bubble will increase the debt now two things one the house bubble will burst again as i said on the show and twenty four months but what it bursts the debt will still be a record so they go on to say this is fitch and they say the guarantees under the second phase estimated at twelve billion pounds by the treasury along with direct equity loans for homebuyers under the first phase three point five billion pounds allocated to the two thousand and thirteen budget are open ended and could potentially lead to higher contingent liabilities over the medium term so the twelve billion pounds of taxpayer money the treasury has set aside to subsidize subsidize those who speculate in housing twelve billion pounds that's an important

number to look at for the next phase of our stories the real cost of benefits squeeze one thousand six hundred pounds per family devastating research finds only one in eight households facing cuts will be able to find work so the social security forms introduced and this is the cuts to housing benefits a cap on them well it's going to save taxpayers eleven point eight billion pounds so here you have. seven point eight billion pounds being taken from one section of the taxpayer funds and transferred over to the other side those who speculate and housing for the first five years through quantitative easing interest rates are taken here in the u.k. and that money was transferred from savers to speculators now they can't raise late rates any lower than they've already lowered them i'm sure they can lower rates any more than they've already lowered them and mark carney said we're going to go with

forward guidance which is going to keep rates low so there's no more savings to steal so they're going into the benefits pool they're going into what you just said eleven billion twelve billion pounds and they're cutting those benefits from people from others like the mother of all those down on the streets you know doing sex to keep food on the table they're taking money from her and they're putting it into real estate speculators yes and now first of all the propaganda to the middle class who are in the upper middle class and those people who are speculating in property the propaganda fed to them by the tabloids and the mainstream media and the politicians and in parliament they say that it's all we're just getting people to stop scrounging off the state these are people who just sit on the dole all day now this is what george osborne had to say in june about why they were cutting money from the housing benefit welfare reform is about much more than saving money vital though that is it is about reducing dependency and changing people's lives

for the better where is the fairness in condemning people to a life on benefits because the system will not help them to get back into work now look at the twelve billion pounds he's taken from them and shifted to those who speculate in the housing market many of those people do that and that's it they extract equity from their homes they don't actually work it's not it's not in any way that he's not taking it from. an unproductive sector and adding it to a productive sector speculating and housing is not a does not lead to innovation growth a developing economy real jobs it's unproductive. that's right the people on the you care the poor people are being scapegoated then you're right it is propaganda you know they the government is engaging in propagandizing poor people in this country and saying that they're the wraps they're there berman we need to take everything they've got to give it to our friends the speculators who are going to

give us money to go for reelection and this is an extraordinary development in the u.k. because they they have completely forsaken anything better resembles any kind of a free market or democratic state well in fact so they take the twelve billion pounds and shifted that from one productive sector to another and they haven't actually done anything towards it's a sink pool these flipping houses it takes cash savings capital out of the economy and it becomes unproductive which should instead be used to encourage development of businesses new ideas hyperloop who knows why or hyperloop and things like that why are these ideas not coming out of the economy because people are more obsessed with flipping a house to some other greater fool well again i come back to the same areas that the debt of the u.k. continues to go higher and by borrowing more money from the bank of england to

channel it through the banks to give to speculators to create a housing bubble just for the sake of an election does not reduce that debt the debt is continuing to increase and therefore the austerity measures will need to be increased and the scapegoating will need to be increased these poor people are there in danger that woman in the hole that i mentioned who's turning to prostitution she says she's in danger for her life because the states coming after her and they're not going to stop well so she's literally able to outstrip inflation and that's what she's doing up there in whole but others around the u.k. are facing deflation and there is no way to outrun that as we see. in this headline u.k. wages fall among sharpest in e.u. figures show real wage value is falling five point five percent since two thousand and ten more than in euro zone crisis countries such as spain and cyprus wages used to provide the capital that field a capitalist economy but sense the capital so-called that's fueling the speculation

is borrowed money you don't need the wage earners anymore you don't need people working because you don't need their taxes it's a prayer for us in this economy you don't need that money because you can borrow from the bank of england for zero percent you don't need workers just like saudi arabia they don't need the people because they just sell the oil so there's this old darky there's a royalty there's five thousand princes then everyone else lives in abject poverty same thing in the u.k. you've got the bank of england which is a gusher of free money we don't need anyone else we don't need their wages we don't need their taxes so they can all just die and that's the message from cameron wake up and die. that's david cameron's match is to use the united kingdom good luck with that all right stay here with thanks for thank you max states for the second half a whole lot more. technology

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back to the guy's report imax guys are time now to turn to simon rows of save our savers kono dot co you can go down u.k. that's right all right so i rose welcome back to the kind of person x. it's always good to be here and i saw you on newsnight yes i was on a discussion about savings on the b.b.c. flagship discussion programme quite extraordinary now i was struck by one of the guest francis coppola who made an extraordinary statement she said putting money in the bank is not a good use for

a bank. yes one of course of all savers did what the banking wanted and take the money out of the bank what would happen then to interest rates i wonder if they would have been signed by would spinal knows capitalism is based on capital thank god but all comes from the earnings of workers to put their savings in the banks it is necessary capital for capitals and that's what so those are this woman francis coppola saying don't put your money in the bank so therefore all money for consumption all money for investment and all money for corporate expenditures is essentially borrowed from the bank of england that's where the bank of england has little largest balance sheet in its history it's over three trillion pounds that's why the u.k. economy is at the biggest debt load in its history you know that and so i know that two trillion pounds at this rate the u.k. well four trillion pounds of debt because this woman francisco plot says hey you should put money in the back that's the last place she plays like that but she she's in tune with almost everybody else to go to new central bank a colony. we might have expected to have a different view have

a deals but no the idea is to know we can't get the recovery in any other way so they just keep borrowing beyond our means and all the push the economy ahead of this crazy base not use real savings play that clip of this woman francisco bull in a remarkable statement i don't think myself that bites left it's a pretty good strategy for us to. about risk simply because we shouldn't forget the example the in the crash in two thousand a bad bad thing to bring we actually failed because some fell out of the buy to let market it happen before and it can happen again and i think this looks a little bit like an overheating bubble to me so it needs some care but people should not be expecting just large amounts of money in a bank account leave it there by way of long term savings that's not a good use of bank account so i was making that up. i don't know where she thinks money comes from. but they all of they all they all don't seem as i mean when he was in opposition always been understood that you needed a strong saving sector because savings actually provide the investment that will

enable us to become wealthy and to grow the economy and once you're in government that's just think of in it you're the biggest debtor of all they're still boring one hundred twenty billion pounds every year we've got a national debt of something like one point three trillion well he's not going to say that anymore you know you think back to my seventy six when everybody was ashamed in this country because the i.m.f. bailed us out if you remember how much that bailout was two point three billion pounds that's a fiftieth of our annual deficit and his one five hundred so our national debt it's chickenfeed started out that scoundrel mark is got a new theory. inflation or g.d.p. it really worked very little hockey puck brain over time with this what else about it seemed revolution when he was actually saying it to you actually look at what it is basically they're saying we're not going to really think about even discussing whether we'd raise interest rates until unemployment rate gets down below seven percent it's currently seven point eight percent in this country but there are few caveats of course is if for instance there would be some sort of financial crisis

where we'd rethink it thank goodness if inflation shoots ahead where we'd rethink it if only eighteen to twenty four month projection we think inflation will be above two point five percent well then we rethink it the thing is the bank of england's forecasts are always wrong they always overestimate growth they always underestimate inflation often. by as much as one percentage point so if they think inflation surprise surprise in their forecasts eighty three four months what it's going to be about two point five percent so if they think it's two point five percent there's ours where we can be three and a half percent that c.p.i. inflation or r.p.i. which is what most people look at because includes most living costs we saw inflation getting on towards five percent and our new government is happy with that not only that but our chancellor seems to be happy with that now as carney said the primary remit of the money committee of the banking them is. maintaining price stability and only subject to that to supporting the can only policy of the

government for growth unemployment the last remit said the inflation target should be two percent and this applies at all times and yet somehow the chancellor has sent a letter to carney saying yeah i like your new policy is falling you've chosen two point five percent of two percent well let's find out to remind one what is going on here they clearly do not mind if inflation goes up they think somehow a bit of inflation is somehow good for growth but most people are now suffering really really severely from the rise in prices being so much higher than the wages of the moment it's not it's not only growth they're talking about or they want a rise in g.d.p. so that the debt looks smaller by comparison yeah because the debt for the desert percentage of g.d.p. in the u.k. is what ninety percent of g.d.p. something along those lines it depends how you measure the measure yeah now it when it gets to sort of ninety percent or one hundred percent of course alarm bells ring so that instead they're going to print a lot of money we're going to stoke

a real estate bubble they're going to pump up g.d.p. based on speculation and borrowing so they're borrowing record amounts of money to create a g.d.p. number that they'll say is greater as a percentage of the debt so it's not about growth it's not about nominal growth it's about relative growth to debt which of course most of the debt is not even counted in the official government statistics itself off balance sheet like an enron for example so there you have a problem number one problem or two is that you can create a lot of jobs but wages on average are going down so you have temporary workers part time workers for workers who are not making the wages that are are the increase that less than one percent are very similar to the picture in the united states so it's true some of the picture is know here if you look over the last five years wages have gone up a nominal terms by about ten percent but if you look not of the c.p.i. but the essentials index the doctor to morgan is doing which is the the eight things that people have to spend money. because it affects the the in what they say to social things food you know food energy transport that sort of thing i thought

of all the sepia oh no no no hold same as the one the government wants to use it's not the same as c.p.i. over the five years from two thousand it actually doesn't tell us of history. no this is actually trying to put to take an index that reflects what people actually experience not what the government actually do the real and the to morgan essential index which is the one where we like losers emerge in morgan was chief economist who as you know world he's now set up on his own he's a wonderful economist but he says that over it's over five years from two thousand and seven two thousand and twelve when wages went up by ten percent the prices of essentials went up by thirty three percent so the people are really getting squeezed especially at the low end not most of the people in the city they are enough not to remember this how much food costs but we had retail prices out this week inflation didn't look as it was terribly severe but if you look at food prices they're rising to double the level of pay so you have for instance potatoes up

thirteen percent on the sausages the eleven percent apples are up thirty six percent on the year these are things people have to buy unless somehow george osborne thinks people need to we must have to scan all placing horsemeat there before i was part of it i see for example honey there's been now being sold without pollen so now if you want to have the same reconstituted i only have to buy the pollen stuff which their price of me would be double or triple you talk about sophistry but that we're living in a world of serious sort of alice in wonderland where you use the word obviously courtly you're saying i use an incorrect no no i'm saying i'm a grand wizard because you're going do you think yes i master the english language i mean american is the proper way to say stuff and i sort of thing but that but that you know when you look at the colonies presentation everybody fell for it almost immediately somehow there's this weird cult that connie can do something magical i mean there was a you know he doesn't go off and what's going to go off to pop festivals with his family. it was he was lauded for taking the taxi sort of the two to work on the

first day not using his so if you didn't go i'm surprised you didn't walk to work on the waters of the thames but it does repeat some of the salient points here the fact is that forward guidance on interest rates as he's talking about increase malinvestment it penalizes savers of roughly two hundred billion pounds of savings has been stolen and given to speculators more more law latest figures all in the time since two thousand and nine when base rate went up to my point five percent we reckon the loss of interest and the effects of inflation of course britain save us two hundred ninety five billion if carney is right we've got another three years of this if unemployment doesn't go down below some percent until two thousand and sixty near the end then we'll talk about a total amount stolen getting on for five hundred billion four hundred ninety two billion pounds. the transfer of wealth the average person in the case is ok i'm willing to accept the fact that my savings accounts are being stolen my neighbor's savings accounts are being stolen because i'm getting i'm paying less on my

mortgage because the tracker rate and for years now the rates have come down and some people in truck a moment's notice are now in the last mark carney arrived in london that interest rate of the ten year it's going higher oh yeah it's entered a secular market so here you have a situation where two or three years' time there's a real estate crash i'm predicting people are back into negative equity and they've had their saving stolen so it's the worst of all possible worlds you don't have the equity in your house and you've had your savings stone by some you know mark carney a madman a wanna be poser from canada who left that economy in a shambles yeah they could have they've got real housing problems and yet completely gutted just the right you can't fault him for timing he left come out of july toy he's a scrounger he's a global scrounger but you only holiday around the world and he's just scrounging from the suckers now he's in the u.k. saying give me that triple crown. my housing is why i can't find a house you know for what twenty thousand pounds

a month or something oh there's nothing to find a love that might kill one and i gave them an extra quarter million pounds a year living expenses because i still see that scrounger carty eight hundred seventy thousand pounds or so that george osborne of course is working with him now because he'll say well actually george osborne to be running the show was it because he's going to have the finger on the bells of the employment numbers being being being and then they're going to adjust the interest rates based on this employment number that i was going to be cooking up is that you guys you could argue of course is the biggest debtor of all because of the government debt one point three trillion right so if unemployment actually goes below some percent income he's thinking about raising interest rates that's actually a disincentive for osborne to want to reduce unemployment although he will this cause prices to go up before the next election going to election looming only one and a half years away as long as everybody feels good because of rising house prices the calculation is he'll get back to tom and judy show these guys are playing punch and judy show word where i was born says this carissa something else they cancel each other out as you said is this instead of lies to get that number down because it

would then. all kinds of economic mayhem so that means that either you were saying interest rates on the variable mortgage have gone down but if you're actually borrowing on an overdraft through a bank if you're actually borrowing on a credit card the rates are still virtually the same as they were before the crisis started the only real benefits being to you know large bore was like the government . companies that are affected be zombified that really should have gone out of business being kept alive depriving other companies the money and the people in variable rate mortgages and that's been at the expense of almost everyone it isn't just savers and pensioners who everybody now is appreciating that our money is depreciating all the time and they understand they are getting poorer communities even the conservatives over there at the telegraph and city am are saying we're already in us more of stoke the housing bubble and all bubbles eventually burst and all you'll be left with negative equity but all that debt while there's still many areas of the country that still isn't. they were going to be that let's figure that out what country will he go to next what canada destroyed canada with the u.k.

just a fly by night scrounger carney it means carnival man or coast guard artist yeah you know it's right there is the can't say that oh i didn't like i didn't tell you i was a show in a corner. all right well let's go back and discuss this again. right sun rose from save our sabers dot co dot u.k. thanks once again for being on the cars. and that's going to do it for this edition of the kaiser report with me max kaiser and stacey armor and i'd like to thank our guest simon rose of save our saviour's dot co dot u.k. if you'd like to get in touch tweet us at kaiser report so much time as well 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

don't know i'm charged is a big. economic down in the final. deal and the rest. will be briefly.

liz. liz. please. please please please liz. klyn.

exactly what happened that day i don't know but i killed. piers later is when i got arrested for. for a crime i did not do. we have numerous cases where police officers lie about polygraph results. and people to confess the police officers don't beat people anymore i mean it just doesn't happen really. in the course of interrogation why because there's been this is like meant no because the psychological techniques are more effective in obtaining confessions than physical abuse and they were off taking they could get what they wanted they can say what they wanted and there was no evidence of what they did or what they said.

i made gunfire in class is an assault by security forces ends the siege of a car a mosque the hundreds of muslim brotherhood supporters had barricaded themselves inside a correspondence was at the scene of the raid and brings us the latest. russia as far east is threatened by what could be the biggest floods in over a century forcing a move in seventeen thousand to flee their homes amid fears the worst is yet to come to. us no man has called for reform of the n.s.a. office leaked reports from congress was kept in the dark leaving spies to breach privacy rules and act a little on the other side.