who invented the brutal game in which there are no housing gains hunger pains stacey yes max this is a brutal game welcome to this world where there are no wealth creation jobs or wealth creating industry we have just the financial eyes world of a zero sum game so therefore you can only have wealth redistribution and it looks like it's been turned into a game of gains versus hunger pains david cameron rejects helped by housing bubble fear prime minister david cameron is this mysterious the help to buy scheme is creating a property market bubble as they hailed it as a success number ten says almost seven hundred fifty homes have been bought and six thousand offers made since the mortgage guarantee scheme started now this is in the beginning of january and now this week we hear that the average house price has now passed two hundred fifty thousand pounds in the united kingdom that's over four hundred thousand u.s. dollars yeah that's an interesting paradox if you were to the average british

person hey guess what the price of gas just doubled or petrol as they call it here price of petrol just doubled isn't that great of course the average person would say no that's terrible if you tell them hey the average house price just doubled isn't that great well no not really because it causes an enormous economic strain that results in as we're pointing out here hunger pains the number of people going to hungry in the u.k. to afford for david cameron's reelection by the help scheme and housing bubble is human tragedy of which he cares not well shelter which is the homeless charity here has warranted that prices are spiraling out of control and they're seeing a huge rise and homelessness because of not only the house price gains but also the the. inflation yes the way that inflation is calculated does not include the

daily necessities in that proportion that people consume them if you were to do an accurate reading you would end up with an eight to nine percent inflation with wages barely moving which is leading to poverty. so vince cable has said there's a raging housing boom in london and of course house prices here in london are up over twelve percent in the past twelve months but in general over the u.k. it's now two into the fifty thousand pounds average u.k. house price hits two hundred fifty thousand pounds oh and it says so this is the office of national statistics and they said that in two thousand and thirteen house prices rose by five point five percent though the nationwide says that it actually rose eight point four percent across the u.k. including london which is over twelve percent well you know it's like a supertanker filled with quantitative easing cash that's moving through this narrow channel called the british economy the benefit of those who are living

inside the supertanker but everyone living on the banks was getting flooded out and that flooding by the way in the u.k. recently is a direct result of money not being spent on infrastructure and going right into the pockets of financier's and housing speculators so people are starving they're being flooded out of their homes for david cameron's reelection help to buy housing bubble which is enabled by mark carney who just left canada after building an enormous housing bubble there that has just popped that's now collapsing in the wake of his financial tragedy of course if you look at that price to age of fifty thousand pounds across the u.k. right for the average house price that bridged income here is something like twenty six thousand pounds so you do the math or the mouse if you're british now let's turn to the hunger pain part of these games david cameron defends moral benefit cuts says they bring hope david cameron has denied that benefit cuts are

plunging people into poverty saying they actually give people hope the prime minister hit back at criticism from the head of the roman catholic church in england and wales insisting that they were part of his moral mission for the country well david cameron is a troll and what i mean by that is there is some study done. to examine the psychological profile of a troll and they found that they are sadistic and croll yeah and david cameron is sadistic and cruel in his interpretation of economics which suggests that by cutting people's benefits to make more money available for housing price speculation is somehow sound economic policy that's beyond just making bad decisions that's sadistic and cruel yeah now remember the first part where we're talking about the housing gains he kept on rejecting he rejected the notion that his plans his policies of the health to buy were causing it here he's denying his policies are causing the hunger and yet public health emergency declared as one in

six g.p.'s was asked to refer a patient to food banks in the last year one in six family doctors has been asked to refer patient to a food bank in the past year a new survey has found with g.p.'s reporting that benefits delays are leaving people without money for food for weeks on end so five thousand five hundred people were treated for malnutrition and hospitals in the u.k. last year and over five hundred thousand people visited food banks now the church of england as well also came out several bishops hundreds of bishops actually dozens of them came out and they said that it was the delay you speak of sadism it was the delay they keep on being given these delays in their benefits receiving their benefits there's all sorts of arbitrary delays so people are suddenly losing access to food yes mark carney the bank of england chair speaks of the u.k. economy achieving escape velocity the idea being that if we keep the housing bubble pumped at some point it will trickle down to the masses this is the same theory

that was used in america when the us army rolled the claws to plains and displaced the indigenous population thinking that someday when the american economy grows the american indian as they're called would somehow find a benefit that two hundred years later has not happened. here cameron is rolling across britain displacing millions of british people leaving them consigning them to a life of poverty and flooding with no insurance house prices and norma's bubble because he thinks he's going to achieve escape velocity according to his theory what so far throughout history has never ever happened you've never been able to cure a debt problem by increasing more debt what cameron fails to mention and this is part of his cruel sadistic propaganda is that the debt in britain has never been higher he's only increasing the debt you know i mean it's the same theory that they have in north korea now i mean if you just genuflect the leader in

egregiously inappropriate manner you will save yourself from the good leg maybe but . in the u.k. unless you count to david cameron you're going to be flooded and starved to death well it's also a game as we've pointed out as you pointed out in your opening monologue is that it's the hunger games it's a game it's a command and control game the guy controlling it is mark carney and george osborne and the likes of those people now we're also going to look at the fact that you can't even work your way out of this hunger situation you can't there's no way to get out of the game without picking up the tools they provide for the game players in this game so here's a tweet from robert peston who is the b.b.c. economics editor u.k. productivity especially output per hour fell further behind most rich country competitors in twenty twelve so these are the new data coming out and again

productivity down here that means that means wealth creation is down here that means if you're not playing this game the hunger games then you're getting hungrier and more homeless. right they don't want to pay people ok then what he was talking about there's a the hour's work for an hour's pay is. getting a lot less money what you're for eating less wealth with every hour you're working because there's nothing to do but to sell a burger at mcdonald's and there is this misallocation of of capital as we talked about previously this the fact that i want to pay anybody in other words that they only want to pay these bonuses the bankers are speculating on the housing bubble and creating financial mayhem they want to pay people to work and now what wages in labor are and are just not needed as we've explained before the tax revenue needed to service the debt is not needed from collecting taxes from the average british citizen because they just go to the bank of england and they print the money to pay

their schemes they don't need labor they're expendable they don't need the citizens to work they don't need their taxes they don't need them so they treat them like garbage and cameron just in the face of the british citizen because he doesn't need them he doesn't need he just needs him to come around every once in a while vote and of course to get the vote they don't care if they stand some kind of horrific catastrophe in some foreign land create a catastrophe and get a vote for a month or two and then go right back on the massive golden shower that is david cameron's policies he doesn't need the british citizen so he treats them like dirt so there's there are some game of the hunger games relies on because it's not relying on wealth creation here in the u.k. or productivity gains here in the u.k. just a reshuffling of wealth around the you know the city center. it relies on china to actually make stuff increase whether it's horsemeat burgers or whatever so china tapering us debt faster than fed and this is regarding

a bloomberg article noting that china pared its position in u.s. government bonds by forty seven point eight billion dollars or three point six percent to one point two seven trillion the largest the client since december two thousand and eleven according to u.s. treasury data at the same time international investors increased holdings by one point four percent or by seventy eight billion in december pushing foreign holdings to a record five point seven one trillion so overseas investors hold forty eight point eight percent of the eleven point nine trillion dollars in tradable u.s. securities china is the largest of those and their parent back radically and who's picking up the slack is the american government itself is buying back its own debt is like a dog returning to eat its own vomit and that's the american financial policy same thing that mark carney should put on a donkey suit or maybe don't go down there to the well of quantitative easing and just eat his own financial vomit because that's the only policy they have here in the u.k. and it only get worse because foreign creditors don't want this junk debt that

they're pushing because it won't possibly pay off there's no way that britain will pay off its sovereign debt and there's no scenario where that's going to happen they will have to default or they'll have to just keep printing until hyperinflation kicks in in the meantime a few people will get rich by speculating on the housing bubble and this is this is a dead certainty especially to say see we have we must go and make a. stay tuned for the second half whole lot more. from the. show we're going toward in terms of stunt. we meet some of. the nights. we find out how to say. no

to modern day funking but still manage to take some snacks for the. said none here on r.g.p. . the future. the interview. cut loose.

lips. i've. lived. lives.

welcome back to the kaiser report imax keyser time now to turn to alistair macleod of gold money dot com welcome back to the kaiser report it's my pleasure matt all right you wrote something fascinating there quote the redemption of emerging market currencies into the u.s. dollar mirrors free world war one bank runs except on a global scale talk about right to understand the point you have to bear in mind first before first world war we were on the gold standard the world was on the gold standard and you could exchange your dollars for gold you could change your pound notes for sovereigns so the amount of paper that was built up in the global economy was essentially exchangeable into gold now that failed because the weight of paper grew too large we now have a situation where up to gold we've now got the dollar that is the reserve currency so in effect all the currency in all the world is permitted if there is such

a word on top of the dollar so we have a situation which is essentially unstable. in the event that there is a run out of other currencies back into the dollar or out of the dollar into other currencies which would be a second order as it were the dollar is world reserve currency and it is the base of a pyramid big where all of the currencies are based that collateral lies by the u.s. dollar so you're making a comparison pretty world war one where all the global currencies were back to socially buy gold you had a gold standard of gold was the medium of exchange on a global basis and that broke down and it led to world war one is that it fairly. common accepted wisdom by historians that world war one because a lot of people talk about world war one and they say it was you know the archduke ferdinand get sas native. and you know it's the hundredth anniversary right i mean but can you see can we look back and say this this gold relationship and the

breakdown as you describe it was really more i think part and parcel of why the events you know i think i think world war one actually started for different reasons. you have the character of the kaiser and his cousins saw and also our kids are inspired by the way that max keiser different spelling indeed indeed the thing really sort of got out of control and it looked like world war one i mean it's still controversial today how it started so that was an accident and i don't think it directly had anything to do with gold the difference between the go found and the dollar as a reserve currency is that the gold standard worked on fixed price you could exchange your pounds for a fixed amount of gold dollars for a fixed amount of gold there is no fixed price top between the mining currencies and the dollar ok so nonetheless we do have this pyramid and the pyramid is absolutely massive for it for example. if you take the combined money supply

of the next fifty currencies of the dollar we're looking at total call it in three if you like global m. three of a round about sixty seven trillion dollars equivalent on top of that you've got shadow banking. the financial stability board which time was headed by mark carney and a committee set up by the bank for international settlements calculated in two thousand and eleven that shadow banking worldwide was sixty seven trillion dollars so i'm talking trillion dollars i think i said billion. so you add that into it's not today given the acceleration of shadow banking in china we're probably looking at about seventy five trillion now if you add up all these bits and pieces you've got us m three you've got global m three and then you've got shadow banking the gearing is roughly forty times the monetary base in the united states but if you take it even further and you say what was it relative to monetary base before the lehman

crisis you end up with about one hundred thirty to one hundred forty times this is some gearing and it's potentially very unstable ok mention a few things are so well touch i would want to get briefly then move on but the point being that pretty world war one you had currencies that were trading off gold and the price of gold was known and the value was accepted the difference being here you've got dollars world reserve currency everything's price of the dollar but that value the dollars highly subjective there is no clear suspect there is no fixed exchange rate between these current starting and i don't seventy one the world on this global fee at currency experiment we're us close the goal and elsewhere everything isn't massively in flux but we do know that the amount of gearing our leverage as increased almost exponentially and you're saying now that it's higher than the pre lehman situation post lame let's talk about that for a second because after lehman collapse the idea was we have some reform we have some. attempt to rein in the speculating that may may have been the intention right

we had no reform we had no reining in of speculation it's just gone the duke wants the quantitative analysts on wall street said that the problem was not massive debt the problem was we got our calculations wrong we're going to we're going to redo our. calculations you're ever going to we're going to double triple quadruple dat is just a repeat of the same madness correct absolutely the solution to the lehman crisis was to as much currency as it took to rescue the banks and stabilize the financial system that is the inheritance we have today and that is why we have got a a money bubble of the proportions i've just described it has its roots in effect in the lehman crisis and you see at this moment dell you do see evidence of a bit of a bank run well the potential is there when we have the second tapering announcements you saw that there was a big wall in the indian rupee the turkish lira the argentinian what and so on so forth all the sort of mind of currency suddenly sort of caught a cold. then sort of settle down for the reason that these miners currencies cash

code is because they are entirely dependent on the balance of reserves they have in dollars to defend the currency and the amount of money cross border investment that has gone into those economies to puff them up really from the days of the lehman crisis or more specifically could probably go back to the year two thousand so if that money if that international foot loose money decides that the returns are not there and suddenly it is a question of risk rather than profit then that is going to start flowing in the opposite direction we then have the scenario which will look very very like the post credit crisis in one nine hundred thirty four i think it was thirty four thirty three thirty four so you can see that these flows are very very important and the reason that i highlight this is that this is a time when the fed has decided to try and slow down the creation of of money by introducing tapering on a month to month basis and at the same time trying the authorities and trying to

become very very spooked about what's happening to money and credit in their own economy and they're trying to rein that in and you can see that the initial effect of that has been you know sort of a developing crisis potentially in. the shadow banking system where all these coal mines and all the rest of it to finance themselves through off balance sheet lending where people bought shares in a trust which was set up specifically to collateralize a loan for this coke company that coke company these are coming unstuck and trying are now has the problem does she rescue these things and say look you know we're no not printing anymore more money we're not allowing the expansion of bank credit anymore if you made the wrong investment it's down to you mate you know do they say that or do they rescue it amounts where we are now and so we've got the two largest economies in the world who have got this problem and they are threatening to put the whole of the international investment flow situation into reverse and that is

a big big danger now i don't think it's necessarily going to carry through because at some stage i would assume that the chinese and the americans the fed would back off and say our priorities have changed the threat now is to the economy from the global economy and they will come up with something else but the way it looks at the moment it is actually a very dangerous situation with all that monetary gearing and that is the point i'm trying to make now two thousand a layman across the fed printed. amounts of money quantitative easing etc and then we find out later that most of it went to foreign banks they will want to do it banking what do b.n.p. it want in society in general and some americans are outraged that you know this money didn't go to u.s. people the way up to foreign banks so the way i envision this if you will is there's this enormous jojo and the fed does a yoyo trick you know they spend their you know you out and then it pops back into your hand and it seems like they put that money out there they covered their

counterparty risks for there are banks and now that that's covered to some degree they're snapping that money back this tapering and they're leaving these banks to fend for themselves they're kind of leaving them in the. hold in the case now latin america banks central america banks of venezuela argentina these these countries are now in flames yes so how much responsibility does the fed take or should take or might take or in your opinion should take four in getting these countries burning as they are with riots but by this yoyo approach of money you know what if i had in thing to do that we wouldn't go into the situation in the first place the problem i think the fed faces is that having embarks on the post lehman strategy over we will rescue the system or whatever happens we will rescue it we will produce enough money to do it then seeing the downside of that because if they are going to restrict the production of money as you quite rightly point out. keeping

the euro zone afloat for example if you were to let me just jump in for a second because of course the u.s. is not happy with geo political trends in latin america venezuela under chavez accent are. they by pulling in this money turning off the spigot they have a double they have a benefit and that these countries are now for political grab and us i'm sure would not mind if they had to step in as they've done before and take control i mean this is what the history of this region has bent. but let's just. look on more on a global basis here because as you point out the key the key counterpart in all this is really china because china is really vying with the u.s. for economic global supremacy at this point and as you describe it the money's being pulled back china shadow banking system has been revealed they're scrambling to conver what looks like

a huge gap in their books. by any by any description so we also know that at the same time china has been very aggressively accumulating. gold so the question is did they see this coming that's why they've been buying it all and now that it's here at their worst nightmare perhaps i do they have enough gold to cover their butts put it in elegant terms i would perhaps even more basically than that and that is the corner of effectively story trying to effect a big corner of the gold market. and the amazing thing is that our statisticians in the west don't want to accept the time well that's what i mean they've cornered the gold market when i talk about well if you look at the amount of gold delivered into the public by the shanghai gold exchange that last year was around about two thousand two hundred tons not the one thousand and sixty three tons which the

w.d.c. murphy rendered armor no no no i'm talking about into the public's hands into the public's hands. on top of that gold was also retained by hong kong and the cross flows between the mainland and hong kong and if you include hong kong you're looking at a figure including boat fifty tons of courts of around about two thousand eight hundred tons now that is almost the same as world mine production but the resisting in the tail because trying is the largest producer of gold and according to the trying to gold so ca should she produce four hundred thirty tons approximately in two thousand and thirteen so you have to take that four hundred thirty tonnes out of the two thousand eight hundred ton figure and you are left with around about two thousand three hundred tons so on the basis of chinese public demand the world is in a supply deficit and depending on scrap. so we've got this extraordinary situation

and none of the best anonymous in the sort of the mainstream banks and so on so forth seem prepared to accept this but it's there i mean these are the hardest to sticks we have ok we've got about ten seconds just and. my question they do have the gall they needed to go into this financial currency war at this time are they well positioned for this currency war and yes or no we got about five seconds my suspicion is they knew what the situation was in the west and they thought this was a very good strategic ploy ok to go back to being on the as a report that's my picture. all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i'd like to thank my guest alister macleod of gold money dot com if you'd like to contact us tweet us a kaiser report the next time buy off.

to. school writes. the. pain of the young girl's cammo for the future hunter. between two and three

hundred million guns united states so you can act like they're not here and keep kids away from them. the pass' that is the law or you know i mean this teaches them a lot of response ability and simply come to pay through the eyes of children if we can't do it for our children move for our future what is the country the same.

transit. your best way to the heart of moscow. released from jail and now addressing the crowds ukraine's former prime minister an opposition figurehead yulia timoshenko is urging protesters not to leave independence square that's after parliament votes to free her and dismiss breaking news from ukraine. which condemns what he calls a coup in kiev and defies calls to step down he's now in the east of the country where local authorities say they're taking full control of their regions. and european mediators that help broker a crisis deal for the country say they'll support the new government while admitting the opposition has violated the agreement.