one hundred and twenty three days. through two thousand nine hundred towns and cities of russia. relayed by fourteen thousand people or sixty five thousand killings. in a record setting trip by land air sea and outer space. a little victoria truly special coverage on our t.v. . but with the kaiser report imax kaiser financial holocaust financial chair financial apartheid yes all the cost and terror and apartheid of the lions and tigers and bears of our day but dorothy you can rise up just click your heels and storm the palaces with a collateralized debt obligation of your own so let's take buckingham palace

kensington palace st james palace and windsor palace roll the palaces into one harley leverage collateralized palace obligation and re conquer the world we can do it there are these with a royal ass a yacht of our own the people infinitely re hypothecated palace obligation bonds what a fantastic idea stacy herbert of course only in the u.k. would they come up with an idea of backing their wealth of creating wealth through property so this is the first head by max and it's turned crown estate into sovereign wealth fund labor m.p.'s to urge britain's eight point six billion pound crown estate should be turned into a sovereign wealth fund to rival governments backed investment funds that have sprung up across europe the middle east and asia in the last twenty years a group of labor m.p.'s will say this week basically this is a great idea because other countries like norway famously have a sovereign wealth fund from the wall that north sea oil britain could have had a sovereign wealth fund had they created one based on the north sea oil but instead

they reply now that into a house by coalition bubbles you know part of the reason they don't have a sovereign wealth fund is due to the bubble popping in two thousand and eight norway was not so foolish other countries are sovereign wealth funds here in the u.k. they're saying take the palaces that are owned by the crown i think you mentioned eight or nine billion pounds worth wrapped owes into a palace back to bond essentially and then you can use that as a fractional palast lending obligation facility and spin that to eighty ninety one hundred billion pounds to go out there and buy. strategic assets around the world i'm not sure why this is not a good idea i think the queen would be more than happy to add something useful to the economy after fifty or sixty years of sitting on her duff and here's a way to turn her assets into something that could be productive i'm all for it. well the crown estate is eight point six billion pounds worth that's the palaces the land but also be large parts of reason street and oxford street all that area

they did have an eleven percent return on it now this money however they do not control it goes directly to the treasury so what they're saying is that they could use it i guess leverage it up and vest overseas in china in hong kong and in infrastructure projects domestically and to pay down debt so i'm assuming they want to leverage it up and use this as more of a speculative vehicle because all these other sovereign wealth funds that they talk about are dominated by oil natural gas which puts a lie to the fact that you could somehow like magically spin your way with debt and financial products into the wealthiest nations in the world but goes back to the creation of the petro dollar in the one nine hundred seventy s. when the u.s. defaulted on their bonds and went off the gold standard that was the first major default to buy america of their bonds in one hundred years then they went on this petro dollar standard and increased the supply of dollars around the world and other countries starting really in the wake of the asian financial crisis in the late eighty's started to build up these huge reserves china has trillions of

dollars in reserves made up of a chilling us dollars and then more chileans of other currencies and of course these other countries like norway have these huge strategic sovereign wealth funds britain however they sold sixty percent of their gold under gordon brown they have no sovereign wealth fund and they've got an economy that's overly reliant on fraud and really hypothecation so yes i say to the queen elizabeth respectfully turn all that unused collateral into something that can help the nation think of it as being on the vanguard in this global financial war and when it's not sexy don't you want to be a war queen you can be like there's a financial we're going we're going to put up the palaces collateral defy the financial war you know it's exciting get on t.v. make a few speeches you can make a movie about your business famous and some of these previous monarchs made movies about that are now canonized in hollywood you too can be famous in hollywood too yes. well in the u.s. and u.k. we have sovereign debt funds you could say but to show you the size and the scale

of the sovereign wealth funds in the rest of the world the number one is norway which has seven hundred thirty seven billion dollars number two is saudi arabia then dobby china china has two different funds which are in the top five kuwait hong kong singapore russia and singapore so you see that the only way up there is either to have natural wealth of oil. or commodities or you actually have to work for a living and export and create things well if you can point other year have workers that are exporting and you can have a sovereign wealth fund like china or you've got oil that you are exporting that can create a sovereign wealth fund the in the u.k. you have neither you have neither a robust export market or do you have any more oil because a north sea oil is now basically put and no amount of shale drilling is ever going to replace that supply of gas and oil and i just want to correct myself helen mirren did do an excellent job for trying to clean elisabeth on the in the west and during some production where she wore the tiara and uttered

a few nonsensical jibberish as monarchs do but here's i'm saying go big time go big go big big big big don't settle for just a west end production of your life you get a big kick in hollywood thing going on you can do it if you put up the palaces as collateral for i saw one wall of base hypothecated debt obligation bond that will take you could buy she could probably buy the singapore sovereign wealth fund and then just take that you know this think imperial you're a queen think like a queen hughes's speaking of the queen david cameron is my next headline david cameron profit in tax cuts are not dirty words so the prime minister told the tory conference that firms must be responsible and accuse labor of anti-business agenda so he said that this is no longer the party we're not going to say that profits are a dirty word i'm saying if david cameron really believes a proper it's not a dirty word then why not go to google amazon and vodafone and say well if you're

making all these profits then why don't we tax you on those profits in other words these companies google amazon vodafone and others they don't believe in profits because then they'd have to pay taxes so they don't report any profits or barely a minuscule amount of profit you know like ok here you have the companies that sponsor david cameron they don't believe in profits enough to report them so david cameron or here's another thing here how about the taxpayer in the u. k. are taxed only on their profits instead of their total revenues like a corporation corporations are only tax on revenue and profits that are adjusted after all the deductions how about tax payers saying well after i just all my my revenue in the same way a corporation does oh by the way i didn't make any profits last year therefore my tax liability should be zero zero but these are one of the other as i've said before david cameron duplicitous douche you know and you should ask if you or you just go away nobody likes you just as to if you just go what. well he this is how he would accounting to never have profits so this is something that he aspires

to anyway they want to attract hollywood he and george osborne have talked about attracting hollywood there they have more hollywood productions here than hollywood so this is something that they want and this is the accounting methodology of his government where they never have a profit that's part of the reason why we only have sovereign debt funds and so they they can always say oh we're always in debt we can't give you anything in exchange for all the taxes you're sending us when least in all of these other fifteen huge sovereign wealth funds around the world they're getting something in exchange for all their national wealth here we get nothing but the queen waving every once in a while when she drives past look camera as a special purpose vehicle and s.p.v. he's just a receptacle to put a lot of garbage rhetoric that he spews on the b.b.c. but when you add it all up and monetize what is worth it's negative value he's actually dragging this he's a negative sovereign wealth fund every time he opens his mouth the sovereign wealth

of britain drops. britain sovereignty will increase the sky s.t.'s feud. well you know one of the big backers of the tory party the conservative party and david cameron is why so speaking of profits he's there in this final headline here payday lenders are taking money they shouldn't from bank accounts now the interesting thing of how they're able to do this is this concept which is the concept of financialization this is the reason why we only have sovereign debt funds and perpetual debt here debt spirals and deflationary spiles and this is the concept called continuous payment authority c.p.a. it gives the company who you sign up to whether it's like you know the gas company or any sort of service like wonga it gives the company power to take money out of your account via your debit card unlike

a debit card however max you cannot cancel it yourself you need to tell the company to stop taking money out of your account the company can however automatically reinstate collections and this practice is illegal in the united states but it's legal here and two billion pounds of the past four years have been taken from british population out of their bank account through these methods well that's true isn't it otherwise part of the role of the prime minister is to protect a citizen from invasive presence or a lenders or a financial terrorist and david cameron has abdicated this role as protector of his people he is living longer the charges analyze rates of five thousand percent and meanwhile prosecuting loan sharks that he catches that are charging less three thousand or three thousand five hundred percent so again here you have a prime minister that has committed acts of treason by allowing wanga which is a predatory financial terrorist to have access directly to people's bank accounts and i beseech the queen to step in go down the house of commons election and

lecture david cameron or just fire him i believe it's within the modern does a constitutional monarchy constitution monarchy you've got. equal billing queen you've got right up there with the constitution there's the house of parliament and there's the queen you're supposed to be like equal partners on all this go down there and find is ease of treason is about you know good get rid of them you've got the power to do so i have to say that it is not just the conservatives that have done this also happened under labor new labor so this is a continuous payment authority that is allowed here for debt slaves this is a concept that is why we don't have a sovereign wealth fund is because we have continuous payment authority this is the financialization the constant interest payments now in two thousand and nine the law is changed so that if you tell your bank to cancel the payments they must do so if the bank continues to allow payments out of your account and in theory it needs to refund you and rebirth the charges however banks have not always apply these rules because there's different regulatory authorities controlling the banks and

then the payday lenders and they're neither saying that the other the other party is responsible they say for taking these continuous payment authorities but i mean i just b.c. we have to take time off from laundering money for mexican drug cartels when they're responsible for the death of sixty thousand mexicans be headed to launder money for h.s.b.c. they'd have to take a break from doing all that hey don't diss the profits man no matter where they come from it's all good states never thanks much bring on the kaiser report thank you rags stay tuned for the second half an all out war. there's a nine story building i noticed that standing on a troop was a man in civilian clothes holding a sniper rifle. to say something that

offends so they're going to use black cool wooden shows. but the building was burning room how much time it took to restore it. we voted for yeltsin in the referendum and his deputies of the supreme soviet didn't appeal to us out of all we had to support yeltsin otherwise it would have been civil war.

little. welcome back to the kaiser report imax keyser time now to go to new york speak

a dr michael hudson author of the bubble and beyond michael hudson welcome back to the kaiser report thank you very much max all right michael hudson despite interest rates at record lows the prime minister here in the u.k. has had to enter do a scheme to underwrite fifteen percent of the deposit on properties valued at up to six hundred thousand pounds what does this tell you it tells me that england is doing exactly the same thing that australia and the united states are doing their banks are and trouble and the what they want to do is reinflate the real estate market so that the prices flow be high enough to cover all of the bad loans that british banks have made in australia they're giving similar. pushes in the united states the federal housing authority has said well we can lend

money get government guaranteed loans to homebuyers up to forty three percent of their own wages. thing is a huge transfer payment of wages into the hands of the banks making loans to buy i pressed high priced real estate and the amazing thing is that in london just as in america and australia they're saying that homeowners are getting rich from other rising price of their homes that the government is pushing up but they're not getting rich at all they're just getting further and debt and it's the banks that are below so well the london government is pretending to hope homeowners they're really hoping to right you started off by saying that the banks are in trouble so they are bringing in this government backed scheme but they're pushing it here in the u.k. as an opportunity for people to get on the property ladder as it's called but as

you're pointing out this is about once again bailing out the banks correct yes correct all right let me ask you this you know when the government subsidizes the property market and people can use their homes as collateral to go to the bank and take money out this so-called turning your house into an automatic teller machine they're subsidizing people who are now part of this new rent a class in the u.k. at the same time dr watson they're penalizing people who are on so-called benefits they're victimizing one group of people that the government subsidizes but they're lauding another group of people that are also being subsidized by the government i have called this financial apartheid they're discriminating against one group of people using finances and using interest rates your thoughts well there's a deception here i use that term to they used to use your home like a piggy bank when you take money out of the piggy bank you don't owe a debt you simply have let shaving but what they really mean is instead of taking

money out of a bank take out a loan and you're going to have to empty your pay. bank in the future and the future saving that you do to pay this money that you're borrowing is going to take the form of payment down a debt not of accumulating money in a bank account so they by using their rhetoric to pretend that what they're doing is helping the homeowners they've turned economic language upside down and made it appear as if people actually have a bank asset but actually it's going into debt they call debt saving and that's crazy all right let's talk about the u.s. housing for a second in the u.s. the property market is also booming but half of the properties being sold are paid for entirely in cash primarily from private equity and hedge funds hedge funds using their own cash of course or other people's cash to talk about this phenomenon well that's not

a bubble filemon and that's the actual reversed you know the federal reserve has lowered interest rates as you pointed out to under one percent borrowing the pension funds and the hedge fund saying how are we going to make money more than the one percent that we can get in government bonds so all of a sudden instead of making loans to people to buy property they're buying distressed properties buy them up for very low prices from the banks and the way to make money now is to buy buy house and reading it out well the same thing is happening in america today that did happen during the bubble when you had absentee owners buying houses all of a sudden or they got it out they're going to look around to find somebody who's willing to rent the house so that they can make a profit. to cover their current expenses as well as making the capital gain they want so out of the higher prices go in these hedge fund areas the lower the wrench

go because another look and they're looking for somebody to buy for rent so what you're having indeed is two hundred percent hedge funds coming in the. they're hoping now that they can show is a capital gain and in fact it made twenty percent over the last two years on the run up so far but now the federal reserve has the following problem other economy is not recovering people are not having enough jobs to pay iraq so all of a sudden all these hedge fund purchases need somehow to get the market pushed up so that they can cash out and take their capital gains at the expense of homeowners expensive people who are actually going to live in these homes and that's what economic policy is all about needed station right now well if you look at the recent history of these financial predators going back five or six years they were making these no income no asset loans ninja loans to people really in a way that was completely asymmetric if you will in terms of the risk because the

banks were able to sell that risk on where the homeowners accepted all the risk they got these homeowners into enormous a debt then all the banks decided you know i we're going to go into debt we're going to have a banking crisis because we inflated a huge bubble then they wanted and they illegally foreclosed on these properties they stole the property from these people that they fraudulently sold the mortgages to to begin with and try to get inside information against their own clients as goldman sachs did now what you're saying is five or six years later after basically throwing these people out on the street they end up buying them up for all cash with money that they get a zero percent interest rate they charge them rent on people that were living there to begin with and now they're in a crisis again which will probably lead to another bail out of the hedge funds like we saw with long term capital management is that about it yes exactly what's happening next you got it ok so here you have a class of predatory financier as i mean in the u.k. it's amazing to me that having the experience of fannie mae and freddie mac.

the u.k. seems like the going to replicate an enormously fault flawed policy and nobody seems to be calling on them in the media in the press. or in the city of london and yet we know that these policies are going to fail that i've said that within twenty four months this u.k. housing bubble that george osborne has created will collapse do you think my estimate is too aggressive or will go ahead a new line which may first of all you say that the banks are both a great rip off you're absolutely right and then you say this is a failed policy it hasn't failed it's us through the people that help the banks the banks and the people who run the government that hasn't failed that's a great success impoverishing that country turning anglin integrates turning america into latvia that's their definition of success that's not a failure you've got to decide is it which side are you on well if i remember my adam smith who wrote the wealth of nations this seems to be a repudiation of everything that was talked about during the unlike mitt and now we

have the bankruptcy of a nation using financial weapons of mass destruction as warren buffett has called it for the express purpose of impoverishing people why is that wrong yes absolutely correct so if you're going to do the opposite of adam smith what do you do you make a big public relations campaign saying adam smith is our patron saint we're for free markets and what they mean by free markets is turning adam smith upside down to adam smith as you just pointed out a free market was one that was free of edison a said to the logical most logical castles alam text to finally begin to recollect what british landlords had taken after the norman conquest but now the free market means three for the banks free for the landowners to exploit the rest of society and do urquhart to accuse them of doing running out of industrial capitalism to a halt so by bailing out the banks and the real estate sector england and raising

the price of housing and raising that indebtedness of british workers you can say goodbye to british manufacturing how can britain afford to hire workers when they have to pay such high costs for housing. right now i want to get your comment to something that david cameron said raissa layout is conference party speech he said that britain should not be afraid of profits and that profits is not a dirty word but i think about companies like amazon google and vodafone here in the u.k. they don't like profits because if they reported their profits they'd have to pay taxes which they don't so is he just foolish is he inept is a what's his problem is he just stupid david cameron or is he just a tool of the bankers so all of a sudden there is a use of the word profit in a different way you know and in our country the hotel up queen the queen of mean leona helmsley said only the little people pay taxes you can say of amazon and the other is only the little people make profits rich companies don't make profits they

make capital gains they extend their profits pretending to take them an offshore banking center is i think it or amazon or google operates out of ireland or out of centers just like the oil companies operate out of flags of convenience so the idea is not to declare a profit on your income so if you look at the corporate profit statements and you compare them to the national income and product accounts they're completely different because the government knows that all of the east texas losses are not really losses are they know that be accountants are making the balance sheet and when i worked for chase manhattan bank and was trying to figure out what standard oil position was the standard oil pressure i said where the profits made it i made it where you produce that oil i'm proud of that made here and the treasurer said well i made right here in my office where me and wherever we find it we don't have

to pay taxes on them it's all a. just pretend fictitious game and you're the law says you're not allowed to make a coding statement. it is unrealistic to do transactions solely for the purpose of avoiding taxes and yet that's what most of the corporations do today they make off sure but i don't shape items they make. all sorts of florida phillips and begging on plates for the sole purpose of not reporting profit and the countries where there are i like europe and north america. dr michael lots and i want to get a quick comment on something i'm not is that apple computers got about one hundred forty hundred fifty billion dollars parked off shore they don't bring it in the united states because they don't want to pay taxes on that money here we have karl i got a corporate raider having lunch and dinner with the c. out sam. tim tim cook saying that we're going to get them to buy back their own

stock he tweets about it after he's bought the stock and he makes a billion dollars doing so isn't this just kind of like violating everything anyone would hold sacrosanct about markets and free markets you've got insider trading market manipulation offshore tax avoidance all wrapped up in one scenario between car like our apple is the most egregious example of corporate malfeasance i've ever seen as an exercise in serialism here you have apple which is the most cash rich company in the world with over fifty billion dollars if there's any country in the world that doesn't have to borrow that's apple but i kind of stilling is worse than what you describe x. he's saying apple should borrow the money here to buy it so i'm stuck so despite having to us huge cash savings offshore it should borrow here and use the money not to make a profit not to invest in more research and development not to buy other companies

that are useful for what it's doing but simply to buy in some stock and make money from money financially so essentially. here having. absurdity of apple borrowing money at the same time but it's shaping to going way up this doesn't make any sense at all except as a checks avoidance measure right so once again we're back to only the little people report profits all right dr michael hudson out of time thanks so much for being on the kaiser report it's always a pleasure 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 dr michael hudson if you want to contact us please tweet us at kaiser report until next time x. guys are saying but you know.

people look at the notes we get from syria these days you know people chpa topping off. the intestines business travel far worse than something that you play beyond that hollywood movie highlights the united states of america to stop supporting

people who have ideologies that can crush humanity in the name of religion in the name of interest in the name of any political ends. soldiers you're in the military now no more joking any more. never been some time when life. every day would be just to speed limits. do you think it's going to be easy. but everyone's desperate. suspense to. sleep i don't know if i'm going to make it to the end look i'm still filming so i'm

just going nothing left i don't know what to do. russia receives the olympic flame during this is issue no handover ceremony in athens and on sunday it'll begin its two or the host country rather in such event for the twenty fourteen winter games. also in the headlines this morning no excuse for internet and limiting it's revealed the n.s.a. has been snooping on those who genuinely need online privacy while the web giants desperately move to bend their reputations. a fifth straight day of deadlock sees the u.s. government in paralysis with economists warning of impending disaster in this program we report what the red vs blue standoff is costing america. and switzerland's plan to pay its citizens nearly two thousand euros a month whether they've got a job or not and tell me why.