so her but now to get the job they ain't no job to get a loan because if you don't get the government back kaboom scheme you'll face a year of oz bourne's hard to bust austerity true of oh. yes max cory doctorow of boeing boeing says this factor slow motion housing time bomb housing in the u.k. is a microcosm for everything wrong with neo liberalism corruption cronyism grinding human misery and funny accounting to prove that it's all working honestly so he's talking about and everybody in town has been talking about james meeks piece in the london review of books called where will we live because right now at the moment there are about two hundred fifty thousand households being formed per year in the united kingdom and yet only about one hundred thousand private properties being built that's included from the private sector prices are soaring and yet for some reason

no private contractors want to come in and build homes well it's the economics of extinction so they're not building homes for british people and as they become extinct through austerity measures that starve them to death their remaining housing stock goes up in value just like the japanese fishermen who fish big bluefin tuna to extinction that turned it in the refrigerator is worth more because there's less of them so they're applying this mentality of let's commit economic genocide in britain to force the remaining houses up in value and then we can use those collateral to get more loans to go down to. monte carlo and blow our of our asset extraction games. in various gambling is games well they in particular i speak to one woman named pat quinn who is on disability she works for forty years for thirty years and she's lived in the property for. forty

years and the government is now introducing a bedroom tax and she's unable to afford it she has to move out she has to go into a one bedroom that's all they'll pay for but there are no one bedrooms in her area there's something like ten thousand people looking for a one bedroom on a list for a one bedroom ten thousand and yet only eight hundred ninety become available in this area in any year so as you see a very extreme shortage she says i'm sure if they had their way they would kill us i really believe that there is this shortage of housing so the article by james me looks back and says where did this all begin to understand how it came to this you have to go back to one nine hundred seventy nine when margaret thatcher began forcing local authorities to sell council houses to any sitting tenant able and eager to buy of discounts of up to fifty percent but with the money they earned councils were not allowed to build new housing they received forty billion pounds over the next twenty five years that was at the half price discount it was housing

stock built by the taxpayer given to a few select few who were able to profit the extra fifty percent and either move to spain where they've now lost all that money in the house from kraft but this is the case going back to pat quinn's comments she's not paranoid the government does want to tell her because just like in previous genocides where there's the american indians or others famous examples of genocide it's not paranoia the government does want to kill her because she's a drain on the system. and if she's gone then they can you know flip or house or give it to cronies and she's not wanted in this country pat quinn i mean you should maybe move the ball gary or something you don't want to hear osborne cameron they don't want you not only they don't want you living here and you're quite right they would prefer if your did well i think they would prefer her. here it just because

they're there people they want to buy votes for it need a lot of people desperate for housing and not enough being built and here's a chart to show from james meek this is the housing market the housing build new build from one thousand forty seven to present the light gray area is the private market the dark raise the housing association the black areas local authorities as you see right after world war two there was a huge booming building and then today present there was a total utter collapse in any building right well the facts of the reagan period of economics in this country in the united states brought in this era of debt which is an economy based on debt now the debt in the u.k. has never been higher in a hundred years and as these housing bubbles boom and bust people are thrown out of their homes whether it's here in the u.k. or thrown out their bedrooms be the bedroom tax or in the u.s. they were summarily thrown out of their homes and now their homes are owned by wall

street who have become slumlords so that was the plan that's by using debt as a way to bankrupt the society and enrich a few of the debt peddlers and the debt in the u.k. if you all inclusive dow is approaching one thousand percent debt to g.d.p. so it's never ever been so much debt because this housing boom will be a bust and they'll know have to move another two or three hundred billion pounds of debt onto the national balance sheet and the country is at risk of going completely bankrupt as it did in the one nine hundred seventy s. so we're going to go the one nine hundred seventy s. when the britain had to be bailed out by the i.m.f. then you had thatcher who decided to bring about an enormous housing debt enabled fake boom and that's going to go right back into the into the garbage to get back to that chart you saw that the house prices rise stratospherically as it collapses in the house bill. and so those are tied together but all of that so-called wealth

given to the private sector they didn't do anything with it they didn't stir innovation entrepreneurship the economy no new jobs were created they basically spent it on booze and new clothes and trips to you know the canary islands didn't seem to go back into the economy so going back to the story they have to still there the poor people didn't disappear because all that wealth given to a few select few who were able to buy these price these properties at fifty percent discount they didn't create new jobs it into anything to stir the economy so they still had to the government still had to pay. you know housing benefit so right to buy thus created an astonishing leap of state money taxpayers' money if you like to think of it that way into the hands of a rented a class first the government sold people homes that owned a huge discount that allowed the original buyers to keep the profit when they sold those homes to private landlord at market price then the government artificially raised market rents by choking off supply by making it impossible for councils to

replace the sold off houses then it paid those artificially high rents to the same private landlords in the form of housing benefit many times higher than the housing benefit would have paid had the houses remained in council hands again these are not the economic policies that are failing this is a genocidal policy that succeeding at a return to the comments of pat quinn she said she is a british citizen i feel like the government wants me dead you are correct. prefer if you just stop yourself that's the great innovation of the coalition government yeah well actually the coalition government there is a huge rift emerging this week regarding this house price rises must stop so house prices are up eight percent across the entire united kingdom in two thousand and thirteen well vince cable's not happy with this and he's come out really hard against david cameron and george osborne hugh who he charges with trying to buy votes for the next election osborne and cameron are out this week with the new

policy saying they want to push more taxpayer funds into not increasing supply in fact they've cut by two thirds the funds to housing associations to build new homes so they're trying to decrease supply but drive the price up right well vince cable you know is another u.k. politician along with i was born or david cameron who doesn't seem to understand that the reason house prices are going up is unfettered out of control money printing by mark carney at the bank of england as an attempt to continue to bail out the big four zombie banks in the. u.k. r.b.s. lloyds barclays and the other one so they don't understand vince cable doesn't seem to understand that there's a connection so either he's just financially illiterate or use trying to convince the u.k. people that he's he's stupid which i think he's doing a good job but the economist did a piece about these house prices because it's important to note that the house

prices are rising very fast here it's only in nominal terms here's the economist at the chart in nominal prices the light blue is the u.k. as you see prices are rocketing that dark blue line is the u.s. not so rocketing and the oranges japan definitely not rocketing but if you put it in here's the chart in real terms you see prices are indeed down twenty two percent in the u.k. but people are very just as happy with nominal price rises they don't. understand that they're actually can form for this is what i'm saying in other words if you don't mark to market and do real accounting in other words of k.p.n. gere price waterhouse cooper or deloitte ernst and young who work for the government if they actually handed them a piece of paper with honest accounting not arthur andersen enron accounting which they're all still guilty of perpetuating but they did a really counting what the housing stock is really worth on the balance sheet of these four banks then the government would have to close these four banks because

those four banks the big four banks in the u.k. are technically in solvent they are only still breathing by an accounting trick called mark to fantasy or mark to model that these bonds these mortgage bonds and these house prices are somehow at these inflated prices because of the continued money printing by the central banks they say you could never look at the actual price on any given moment just look at the flow just look at the flow and it's a whole a gram perpetuated by money flow and that's how we do our accounting and here give us a big fact check so we give you this essentially cooked the books because we're also in on the fraud the big four accounting firms and the big four banks and the big four most corrupt politicians in the u.k. then to be cameron vincent cable i was born in the lib dems guy who have nobody knows about him because he's a nonevent he's nick clegg but i want to point out that the new housing of luxury apartments right behind us right behind the mayor's office is not even being there let's take a look at it look at this oh my god well this is right there is to see toby brown

and tell me more about it those are being advertised sol e to hong kong they go back to that economist chart i'm going to show you quick real prices in hong kong you see those are rocketing and if you see that gap between london and hong kong you see that in fact this is where why they're buying up all of the property here because property here is actually getting very much cheaper if they leverage their own property and hong kong as a. global ponzi scheme. says my time is worth ten thousand pounds say six but i'll give it to you for five thousand pounds as a deal when you think i'll take it and i'll have to give them a thousand pound kick back to do the fraudulent bookkeeping thanks big accounting firms are i got to go stay sick i'm going to go take out to help by state of the second half. if you. need the opportunity. to start

to construct your current. queue no longer be a bit give don't want to be gangsters you don't want to be drug dealers they don't want that bull without the time that the kid came to be we can see. you just means a zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero problems in the hood and with a very good thirty round clip. but i said. i don't want to die i just really do not want to die young young. old. science technology innovation called in these developments from around russia we've got the future covered.

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crosstalk rules in effect that means you can jump in anytime you want. welcome back to the kaiser report imax kaiser so i'm not a lame allegan of the telegraph happy new year. austerity we were talking about all week tell us more well i think up until now it's fair to say that even though there has been in some departments pretty severe cuts in public expenditure in the u.k. the overall envelope has been one of actually increasing spending ever more borrowing that's why from about two thousand and eight up to twenty sixteen the

national debt of this country is expanding from about seven hundred fifty billion to about sixteen hundred billion pounds on the government's own numbers right so the debts going up so there hasn't really been any austerity it up there has been some will sterrett see if you happen to have been in the far in line in certain departments all recipients of certain benefits so we shouldn't disregard the fact that there is obviously human misery out there but the overall envelope of course has been one of ever rising spending an ever more debt citizen austerity a euphemism for something more like ethnic cleansing. i mean i mean seriously i mean it's not ethnic it is cleansing though and there was ever a whole population of this country that they want to get rid of i mean this woman recently said i feel like the government is targeting main they want me dead i mean how or why is that an incorrect statement they're just cutting off services from people who are now dying look a lot of people who are low incomes or in need of our public services and i everybody in this country is our public services at some stage will feel where the

rubber hits the road that they have been built lined and their rights have been transgressed that's just the reality of a country with a population of almost sixty million people where the government is almost half of g.d.p. there will inevitably be people who suffer at the margin but as an economist as a dismal science says max the big picture is that government borrowing has been going up ever more national debt spiraling our political classes here in the u.k. have been very careful to deliberately obfuscate the deficit on the one hand which is of course coming down the annual increase in government debt and the overall size of what we must service you. year in year out but that i'm saying i'm saying they could call it austerity but it did keep going up so don't call us terry called some kind of economic cleansing because they're not all sterile e reducing and it seems to me that the lunacy of the current political debate in the u.k. at the moment is that the coalition and the tories in particular are talking tough

about austerity and kind of taking the political hit of having to become grown up an adult about our public finances without actually implementing the austerity that should have the macro economic benefits now what the chancellor is now trying to do new year the credit card bills from christmas are hitting the doormats people are starting to feel they have to take stock of their own personal finances the government's trying to reflect that by saying you know what you know what people we are still using heart of the hundred billion pounds that we're borrowing year in year out massive numbers despite we using half of that to pay the interest on the debt and of course this is a level when interest rates owned gilts are still rigged because the government is the biggest owner of kilts in the market via q.e. now the serious people are starting to face reality that interest rates are going to rise sooner rather than later the chancellor is having to get to grips with the fact that mainstream commentators are going to start realizing well we're spending

half the money that we borrow on interest and that's going to go up as interest rates go up we're now spending as much in interest even at low rates as we do on educating our children in the state sector soon it's going to be even more and so the challenge of trying to get ahead of that sense of outrage by saying yes we do need to start taking austerity or seriously it's also much about positioning within the tory party to reason may the home secretary at the moment has made tremendous gains in terms of polling as who is going to be the leader in waiting to cameron by pressing a harder right agenda more of a. immigration concern agenda an old school wants a bit of action he feels there is political mileage for him personally and maybe even for his party in stressing that yes the u.k. is still a spend a whole lake government we all still running off on public finances in a way that is completely unsustainable let alone get back to my thought here in

terms of this being a. cleansing because you're targeting a group of people in this economy who are not willing to go out and allow themselves to become shameless city speculators so you have a population of city speculators who are morally dubious at best who are caught time in again and again committing acts of fraud and yet the chancellor and the prime minister is are causing writing them checks there is no austerity for financial fraud in the city of london there is no austerity for real estate speculation in the city of london there is no austerity for the least morally centered in this country that's where the cleansing cleaver comes down if you're corrupt if you're a kleptocrat if you count out to foreign dictators you get a check if you're an outstanding citizen just trying to do your bit you get it with austerity why that why that why the two speed economy here what does cameron in our

support have against basic working british people or do they have some kind of built in tory eaten kind of. oxbridge the loathing of the average british person this is not a all it's all because of who well i was it's all up to you it's oxford f. you you mixed with these people do they just hate are they misanthropes do they hate humanity mike says a lot and what you just said that i completely agree with you knowing growing up in the u.k. . all the talk was in the seventy's of excessive subsidies to industry being distort saying to british leyland remember we used to actually own the companies that made the. it was in this country the mass produced cause. in industry subsidies to mining and so on and the intelligentsia would rather like hence these subsidies as being completely out of control and unjustified and yet of course the subsidies or financial services sector is outrageous egregious

kleptocratic i completely agree with you i was saying that my side of call them till i'm blue in the face literally for more than five years now it strikes me that our political class has both in this country and in the states are far too close to the financial services industry there was big old by the money men and their sense of genius of course it's not just about campaign donations it's also also about the sense that the city is untouchable in this country because it does create an awful lot of revenue took a snap a year you know no things i learned. that. isn't the way to stop the madness right now by reste and restore balance is to raise interest rates right now get rid of the credit tours of the city who are doing their zombie banks with low rates and get rid of this these horrible speculators give people who save in work real wages and real savings stop the interest rate apart type raise rates today go

back to the normalized rate of interest in this country are five six seven percent not one percent why not do that right now to show the world cameron i was born that you're not an interest rate apartheid genocidal economic hole cost provoker why not i think is right i think we do need to raise interest rates in this country have suffered brickbats for a long time by making these arguments q what is a brick threat. a slap around the face of the way herring max you mean like a load of old codswallop. of climbing it strikes me that he won back in i've just written about this again he won back in two thousand and nine maybe just about justified some of it in order to create some room for maneuver so insolvent banks could be wound down puts protecting the deposits as and we could have creative destruction a move on q e two completely grotesque q e three it seems to me completely off the

planet times to me in terms of was it justified in given the damage it does to people buying and yet sees given the massive inequalities that it provokes given the implications for commodity prices soft commodities food prices and so on you know so if you just got here thinks very highly is the opposite of high rates in other words high rates are one sided spectrum q.e. is the opposite right now i think that very much part of the same but giving q.e. is to keep interest rates artificially low ok so the onset of coal that's your point as i understand it you're just one you gave them benefit the doubt yet just said ok as a crisis we would have had social and deep political unrest had the banks just fallen over we had to have some kind of emergency measure but it was it should when use the crash pads in order to restructure our banking sector and bring in real reforms a real separation of investment and commercial banking instead it became a comfort blanket it became a lifestyle choice now kitty has friends in very high places it of course allows

a lot of banks just over there to pretend that they're solvent when they know it's ok but you didn't q.e. one it would have prevented the banks adding gone through a forest restructuring at economic to rest of the entire country here we are five years later and i'm sure nomic the rest is being pushed onto those the in the form of austerity so all they do is defer the chaos for five years and take it out of the tory you know majority schmucks who grew in this country and they forced it on you know the northerners the good working people of birmingham sheffield manchester . those are the only three cities i know in the north of this country and those people are now suffering deferred suffering and they give bankers deferred compensation and deferred liability and deferred prosecution and they give everyone else to further austerity i do regret. not being a harder. q we want was rolled out or what your position now has only have about a minute left and i realize i have taken you out of journey bastard getting

a magical mystery tour so it's a cool tour so bring this back to the how come they say ok now wait a minute not just just for the record i completely disagree with q.e. two carry three i think it's fair to say of all the newspaper columnist in this country probably the most vociferously opponent of q.e. noted for it i do think interest rates need to rise even though it's going to be tough we need to pull we need reforms to separate investment and commercial banking on actually amazed that there's not more outrage in the u.k. about the direction the policy has taken in recent is i think your outrage is well justified if slightly stage managed that sometimes if i may say so but what you all doing you all bring these very difficult issues to the forefront of a public debate and shoving them in people's faces in my way i've been trying to the same thing as well despite the universe no i have on filter grades that i share with my audience and they appreciate because they stop coughing over my life and

they and they appreciate that but leave how again let's let's talk about the future because clearly judging by your recent telegraph column you have fallen head over heels in love with bitcoin and i can understand why a few months ago now. but a sense we are on a shell last discussed this last time you got a big gaming company you know has adopted been going you've got now. pay which is the number one name in merchant processing and bitcoin is now massive transaction volumes to massive transit isn't bigger than pay pound now almost could be as big or less than you saw it's right so this is going to have a disruptive effect on the economy so do you think that trying to going to continue and over. there in the pages of the telegraph. our readers starting to kannada the fact that this is a transformative new economic development that could at the end of the day put the

bank of england out of business i want to focus on this question good bit pay because it's a distributed system the bank the central bank a big pay is the distributed network there is no mark carney so will we see all of the viewers understand ok it strikes me that whenever something is denigrates we have about ten seconds size but by the mainstream is because there's something really interesting that the cardinal truth about bitcoin is the need twenty one million will ever be created i gotta stop you right there we got to have ya back soon because stacy the producers about ready to cut my head off we've got to go live al again thanks so much being on the kaiser report. you're welcome and that's going to do it for this edition of the kaiser report would be nice guys are safe here but like i guess they are going to telegraph it again touch place to it is a geyser but. millions around the globe struggle with hunger each good. what if someone offers

a lifetime food supply no charge. they can the very strong position against g.m.o. and we think that's. the genetic anymore the right products are pretty cool. there is no. evidence to this any problem with genetic engineering when you make a deal. or is free cheese always in the most crap i don't believe the. poor and the free. enterprise is profit. for social justice golden rice. put it on your arm in a washington d.c.

college face and i think you're right. a pleasure to have you with us here on t.v. today i'm sure. you can all preemptively restrict your freedoms because of the fear of what something a a house. everything that has ever been developed has been used for bad purpose baseball bats which are fun for you know for baseball players to hit balls you know they've also been used to be people today i mean we cannot restrict ourselves because something might be years in the wrong way.

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on the finish line the just a month left now before the russian olympic host city salt she starts the ball rolling we talked this out to the chief organizer about how the city's going to run the games and keep everyone safe. in control of its biggest province with key cities seized by al-qaeda militants flooding in from syria while the us promises to speed up drone at missile delivery. battling for basic scientists warn that water may become a key factor in world conflicts with it already fueling tension in the middle east . and the youngest victim of those terror attacks in volgograd is on the mend we can report we're following the fate of the three month old girl who survived the blast that killed her mother.