and it looks like it's been turned into a game of gains versus hunger pains david cameron rejects help to buy 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 now 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 inflation yes the way that inflation is calculated does not include the daily necessities in the 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 hundred 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 ponzi 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 edge of fifteen thousand pounds across the u.k. right for the average house price that reached income here or 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 research. 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 help 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 of the 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 is 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 gulag 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. they don't want to pay people ok. it 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 reading 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 don't want to pay anybody in other words that they only want to pay these bonuses that 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 him so they treat him 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 them 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 traffic 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 rely 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 up 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 sampling of 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 a this is a dead certainty essentially to say see we have we must go and make

a. stay tuned for the second half whole lot more. to. show we're going toward some stunt. we meet some of his sons innovators in the heights. we find out how the big black queens for compazine cruft limbaugh the modern day fighting could still manage to take some smokes but the album said no day here on r.g.p. please the future. play right close to. the first for me and i think the trick.

on a recorder splitter. and instead. living in the limo on mom. i think. i would like to go did you know the price is the only industry specifically mention in the constitution and. that's because a free and open press is critical to our democracy albus. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our crack cynical we've been hijacked by handful of trans national corporations that will profit by destroying what our founding fathers once told my job market and on this show we reveal the big picture of what's actually going on in the world we go beyond identifying the problem try rational debate and

real discussion critical issues facing the now defunct bill ready to join the movement then walk a bit. i . welcome back to the kaiser report imax guys are time now to turn to alistair macleod of gold money dot com i also welcome back to the kaiser report it's my pleasure all right you wrote something fascinating here 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 the first world war we were on the gold standard the world was only gold standard and you could exchange your dollars for goat you could change will 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 to large we now have a situation where a company 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 so the dollar is world reserve currency and it is the

base of a pyramid so it's big where all of the currencies are based a cloud of lies by the u.s. dollar so you're making the comparison pretty world war one where all the global currencies were back to centrally 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 sas unaided and it was an accident 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 events yeah 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. 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 gold standard 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 for 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 at the time was headed by mark

carney and a committee set up by the bank of 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 dollar so you add that into it now 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 them 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 the 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 and a matter if you think so so i'll touch on one more i want to get briefly then move on but the point being that pre world war one you had currencies that were training after all and the price of gold was known and the. well you was accepted the

difference being here you've got dollars world reserve currency everything's price of the dollar but the value the dollars highly subjective there is no clear suspect there is no fixed exchange rate between these currents and starting in the one seventy one the world on this global fee at currency experiment were us close the gold window so everything is a 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 quantz 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 debt it's

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 go to 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 though 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 ashington him and so on so forth all the sort of mining currency suddenly sort of caught a cold. then sort of settle down but the reason that these minor currencies catch a 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 coal company that coal 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 and that's 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. looks at the

moment it is actually a very dangerous situation with monetary gearing and that is the point i'm trying to make now two thousand a layman crisis the fed printed on precedented amounts of money quantitative easing etc and then we find out later that most of it went to foreign banks they wouldn't want to do it your banking went to b.n.p. it went to society in general and some americans were outraged that you know this money didn't go to us and people away off to foreign banks so the way i envision this if you will is there's this enormous a yoyo and the fed kind of does a yo yo trick you know where they spin that you know 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 their own banks and now that that's convert 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 cold in the case now of latin american banks central america banks 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 for in getting these countries burning as they are with riots but by this yoyo approach of money you know 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 you know whatever happens we will rescue it we will produce enough money to do it then seeing the downside of that because if they're 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 chávez accent are. they by pulling in this money turning off the spigot they

have a dub. they have a benefit and that these countries are now for political crap 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 to china shadow banking system has been revealed they're scrambling to cover what looks like a huge gap in their books. by any by any description so we also know that 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 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 and elegant terms i would perhaps even more basically not and that is the corner of effect of the story trying to affect a big corner of the gold market. and the amazing thing is that all statisticians in the west don't want to accept the time of this what i mean they've cornered the gold market when i talk about this well if you look at the amount of gold delivered into the public by the shanghai go to exchange that last year was around about two thousand two hundred tons not the one thousand and sixty three times which the w.d.c. murphy reserve armor no no no i'm talking about into the public's hands you know into the public's hands. on top of the not gold was also retained by hong kong on the cross flows between the mainland and hong kong and if you include hong kong

you're looking at a figure. including but fifty tons of corn some around about two thousand eight hundred times now that is almost the same as world mind production but the resisting in the tail because trying is the largest producer of gold and according to the trying to go to so ca should she produce four hundred thirty tons approximately in two thousand and thirteen so you have to take that four hundred thirty tons 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 western analysts in the sort of the mainstream banks and so on and so forth seem prepared to accept this but it's there i mean these are the hardest sticks we have ok we've got about ten seconds just and my question are they do they 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 got back to being on the gas 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 alice or macleod of gold money dot com if you'd like to contact us tweet us a kaiser report the next time buy off. salo so-called. child legal rights. to the. law. paying for the young

girls 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 plaza sound is a large you know i mean this teaches them a lot of are a responsibility and simply come to pay through the eyes of children if we can't do it for our children for our future what the country will for. dramas the chance to be ignored. stories others to refuse to notice. the faces change the world light snack. food picture of today's news. from roads to blow.

job to. going to extremes all across europe right wing and e.u. parties and groups are gaining strength and in some cases respectability what accounts for this hard economic times are the growing alienation and frustration with the euro project could it be said the new right is really the old right so winning a nice suit. of

. the ukrainian parliament votes to depose president yet to call the true refuses to step down saying the opposition is attempting at state who this as a former prime minister yulia timoshenko is a release from prison and addresses protesters and. police meanwhile local authorities from the east and south of the country hold an emergency meeting value to take full control of their regions claiming that the central parliament's decisions are unconstitutional. and of the european mediators that help to broker a crisis deal for ukraine say they will support the new government while admitting that the opposition has violated the agreement.