welcome to the kaiser report imax kaiser the great big cult of carney says inflation is tame at a mere two point eight percent in northern england this waco ever a pair of armed thieves were involved in a five hour standoff with police after barricading themselves into a cafe in order to steal quiche yes this stuff kiddish there is still a cast there curry is trast they know that it's worth next to nothing in this economy they just wanted. the mere existence of kids thieves in the u.k. it's a resoundingly dykeman of quantitative easing because while the creepy cult of carney says that inflation the same the headlines and the kids thieves tell us the

truth about these times they 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 economists predicting a headline house pres growth gets 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 there are 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 races 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 low inflation big why because there is a bottle for paying interest on things like retirement benefits etc so there have

been 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 that 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 in a 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 getting 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 their 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 has 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 continue. 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 by buying cash from the banks but when there's a 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 this is 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 costs 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 right so 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 has 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 who'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 developing economy real jobs it's unproductive. that's right the people on the you care the poor people are being scapegoated that your right is propaganda you know that 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 that resembles any kind of a free market or democratic state well in fact so they take the twelve billion pounds and shift to get from one unproductive 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 joining the

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 has fallen 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 feel the 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 is superfluous 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 you sorry. that's david cameron's matches to you of the united kingdom good luck with that all right stacy ever thanks much because of your thank you max stay tuned for the second half a whole lot more. technology innovation all these developments from around russia. the future of covered.

previously when the western companies were operating there you know none of those profits ever went into the social sector of the populations have never had a share in that country's natural wealth trade with china investment from china i do believe it must be a plate of pasta control maybe essential role in today's rice of africa yes the chinese have benefit from but this is a fair trade. choose your language. make it with zero if they still some other. treatments but the consensus get to. choose the opinions that invigorated you'll. choose the stories that imply the. choose be accessed off to.

welcome back to the guy's report i'm max kaiser time now to turn to simon rose of save our savers kono dot co you can go dark u.k. that's right all right simon rose welcome back to the kind of person axis it was good to be here i saw you on newsnight yes i was on these i discussion about savings on the b.b.c. flagship discussion programme quite extraordinary 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 what of course if it will save us did what the banking wanted and take the money out of the bank what would happen then to interest rates i wonder if i could sign it i would spinal knows capitalism is based on capital that all comes from the earnings of workers to put their savings in the banks it is for capital for capitalism that's right 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 when 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 the two trillion pounds at this rate the u.k. well four trillion pounds of debt because this woman fried this couple out says

they should put money in the back of 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 all means and all the push the economy ahead of this race not use real savings playing the clip of this woman francisco bull in a remarkable statement i don't think myself that blights net is a particularly good strategy for us to use. if you about risk simply because we shouldn't forget think sample the in the crash in two thousand and eight bad about that being we actually failed because of some fall out of the ice 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 also 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 view 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 at his one five hundred so our national debt it's chickenfeed started about that scoundrel mark it's got a new theory. inflation a g.d.p. it really worked a little hockey puck brain over time when this was also about it's all well 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 is currently seven point eight percent in this country but there are few caveats of course is for instance there would be some sort of financial crisis where we'd rethink it thank goodness if inflation shoots ahead where would we think it if the eighteen to twenty four months 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 sort of one percentage point so if they think inflation surprise surprise in their forecasts eighty three four months what is going to be about two point five percent so if they think it's two point five percent there as ours where we can be three and a half percent that c.p.i. inflation on 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 the banking and is. maintaining price

stability and only subject to that to supporting the economic 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 of sent a letter to carney saying yeah like your new policy is falling you've chosen two point five percent or two percent well that's fine i don't really mind what 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 is 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 truly out some of the picture is new here if you look over the last five years wages have gone up a nominal terms of about ten percent but if you look not of the c.p.i. but the essential 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 food energy transport that sort of thing i thought of all. 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 emerged in morgan was chief economist at. wells he's now set up on his own he's a wonderful economist but he says that over 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 who are really getting squeezed especially at the low end not most of the people in the city they had enough not to remember just 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 sausage the eleven percent apples are up thirty six percent on the year these are things people have to buy unless somehow george osborne things people need to eat our stuff to scan all placing horsemeat beef that was part of it i see for example honey has been now being sold without pollen so now if you want to have the same reconstituted i only have to buy the pollen stock which their price of me would be double or triple you talk about sophistry but that we are living in a world that's obviously a sort of alice in wonderland well you used the word obviously correctly you're saying i used to think or no no i'm saying i'm a grandmother you because your body you think yes i've mastered the english language i mean america is the proper way to say stuff and i see the thing but the but that you know when you look at his 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 tuxedo sort of a chook to work on the first day not using his so i'm surprised he 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 knowing when base rate went up from that point five percent we reckon the loss of interest and the facts of inflation of course britain save us two hundred eighty five billion if colonies 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 of getting on for five hundred billion four hundred ninety two billion pounds. to 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 some people who truck a moment's notice are now the last mark carney arrived in london that interest rate of the ten year is going higher oh yeah stanford is 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 there's 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 saving stone by some you know mark carney a madman a wanna be poser from canada who left that economy in a shambles yet 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 go. my house is why i can't find a house you know for what twenty thousand pounds a month or something or there's nothing to find a love that might kill one but i gave them an extra quarter million pounds a year living expenses because i was in the senate scrounger carty eight hundred seventy thousand pounds or so then george osborne of course is working with him now because he'll say well actually george i was going to be running the show was it because he's going to have the finger on the valves or 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 cooking up and 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 felt his house prices to go up before the next election are 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 it's a tom and judy show these guys are playing punch and judy show were as bored as

this carissa something else they cancel each other out as you said is this is a set of lies to get that number down because it would then trigger all kinds of economic mayhem so that means that either you are 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 called 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 and 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 savings and pensioners who are being hit now everybody now is appreciating that all money is depreciating all the time and they understand they are getting poorer and maybe even the conservatives over there at the telegraph and city am are saying we're already in oz more of stock the housing bubble and all bubbles eventually burst and all you'll be left with negative equity but all that

debt well there's still many areas of the country that still isn't. where are we going to be then let's figure that out what country will he go back to next what canada destroyed canada or the u.k. he's just a fly by night scrounger carney it means carnival man or coast guard artist yeah you know it's right there as they began to say that oh i didn't like i did tell you i was a show in a corner. all right well let's come back and discuss this again. oh right simon rose from save our sabers dot co dot u.k. thanks once again for being on the kaiser and for you max. and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert 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 and.

pleasure to have you with us here on t.v. today i'm sure.