government spending then you've got the people all over the monitor as cap to think that they see your bank of england and the central banks to get kick start the whole thing and you also handed me something here interesting about the bank of england warns of a five percent interest rate rise that there's a lot to be said about this notion of a natural interest rate being five percent what are your thoughts here is a keynesian stimulus monetarist kind of tweaking is going to be an austrian school return to the gold standard or just a lot more of the same going nowhere well i suppose the most important thing is many studies are already showing the book which is increasing in the united kingdom and people are saying that the coalition government which no one voted for in this country said the well their policies are going to increase pollution if the interest rate says the monetary policy committee member paul fisher seems to be say you can be ten times what they are no i think that will have some kind of effect on the housing market don't you well the fact is. is that if you increase interest rates yes

not just the conservative party made that point; the governor of the bank of england, the cbi, the institutectors, the oecd and the imf were all saying that the previous government did not have a proper plan. we needed a plan, we have got a plan and we should stick to that plan. >> i wish the prime minister well in his efforts in zurich and hope that we will get the right result tomorrow. there was a great debate in the house yesterday on school sport partnerships and there was consensus that something needed to be done. there was an offer from the shadow front-bench team to try to come to an arrangement on the issue. will he look at it urgently with the secretary of state for education? i am sure that we can resolve this matter, because it is important that sport is available to all. >> i know that the honorable gentleman was a very successful sports minister in the previous government. i thank him for his endorsement of the 2018 bid and all that we are doing to win for england. the honorable gentleman's point about school sport is important. i am looking carefully at yesterday's debate. we

by the federal reserve under alan greenspan and by the constituent central banks of the us empire whether it's the bank of england or or the european central bank overstimulated consumption massively so we have too many houses too many cars too much spending when prosperity is based on saving and investment so yes we're taking a turn back towards not consuming not spending saving and investment that's what we have to do of course we have as enemies against us the governments of the west the central banks of the west which are holding interest rates so low we need dramatically higher interest rates stimulate saving and investment to reward the savers and investors and we need to get away from what mr bernanke and all the rest are doing to us david what do you think about all this is i mean again is this a choice or is it just something that we have to accept we have to accept living smaller we have to accept living more modestly because we still have the demonstration effect out there we do remember the top one percent top three percent of society particularly in the united states will just continue to live lavish

mervyn king sent a memo saying banking crisis now one of solvent see not liquidity so king at that time who is that obviously the head of the bank of england suggest. that the u.s. u.k. switzerland and perhaps japan might forward temporary new group to jointly develop an effort to bring together sources of capital to recapitalize all major banks that's right in the sovereign sea not illiquidity what does this mean it means going back to two thousand and eight when hank paulson went from congress and said give us some money to cover our bills for a few months because we are illiquid he was a lying he did not tell the congress that the banks are insolvent had he been truthful then congress would have shut down the insolvent banks and they would have created some new banks that were not run by frickin financial cherice like goldman sachs j.p. morgan he'd lie now mervyn king told the truth but of course that information did not get into the public domain it's globalization for the bankers when it's convenient for the bankers but everyone else of course does not benefit from having globalized information except for wiki leaks and julian sun bes

the governor of the bank of england, the cbi, the iod, eocd and the imf they were all saying the last government didn't have a proper plan. we needed a plan, we've got a plan. we should stick to that plan. >> thank you, mr. speaker. could i wish the prime minister well in zurich and we get the right results. and there was a consensus around the house that something needed to be done. it was an offer from the shadow benchmark trying to come to an arrangement on this issue. will the prime minister look at it very urgently with the secretary of state for education as i'm sure we can resolve this measure because i'm sure this is important -- >> i know the honorable member was a very successful sports minister in the last government and thank you for his endorsement of the 2018 and all we're trying to do to win it for england and all we're trying to make for school sport is possible. and i'm carefully looking at the debate that was held yesterday. we do have a shared interest here. we all want good sport in school and more competitive sport and we all got to make sure that money is spent w

>> the bank of england's monetary policy committee sets the interest rates. dependent in doing so. the purpose, in pt, of the measurese are taking to reduce the deficit has been to give the monastery policy committee the maximum flexibility and freedom -- monetary policy committee the maximum flexibility and freedom to stimulate the mind -- stimulate the demand in the economy. that has enabled them to keep interest rates low, which has been a help to the economy. >> turning to the corporation tax reform -- can the cncellor confirmed that it will make the u.k. more attractive as a lding company jurisdiction and help make us a preeminent headquartered as much as the financial center? >> i thinkhey will help to do that. my friend is right. they will help the u.k. be an attractive place to international companies to create jobs in. also, that changes to the patent regime will help a number of sectors, for example, pharmaceuticals. pfizer is a big public-sector workers. we are speaking to reduce the impact of this which has taken place. we are doing best in a way t

.; and even to foreign banks, including the bank of england. most all of the loans have been paid back. but it was a historic transfusion of cash in a global system that was bleeding to death. we asked bernanke what would have happened if the fed hadn't acted. what would unemployment be today? >> bernanke: unemployment would be much, much higher. it might be something like it was in the depression-- 25%. we saw what happened when one or two large financial firms came close to failure or to failure. imagine if ten or 12 or 15 firms had... had failed, which is where we almost were in the fall of 2008. it would have brought down the entire global financial system, and it would have had enormous implications, very long-lasting implications for the global economy, not just the u.s. economy. >> pelley: but it's also true that the fed was the regulatory watchdog of the largest banks when crazy lending led the world to crisis. is there anything that you wish you'd done differently over these last two and a half years or so? >> bernanke: well, i wish i'

of the federal reserve bank increasing the deficit by $1 trillion. he said he would add that amount of money from u.s. taxpayers money to the bank of englandrman banks, swiss banks come in the swedish banks. these were from trading losses in oil. as the "new york times" said, he took that worthless assets. you have $1 trillion given out backed by the federal reserve bank. it is really going to be paid for by u.s. taxpayers. host: tightest together with the subject at hand here, this tax cut deal. caller: you are talking about increasing the deficit by $300 billion. that is what the u.s. taxpayers are on the hook for. but here is ben bernanke, getting a subpoena from the federal court, so that he can contribute $1 trillion of u.s. taxpayers' money and send it oversees to supposedly wealthy countries. host: d.c. an argument about keeping taxes where they are will allow people to spend more and improve the economy-callery? caller: people in need money for loans to spur the economy. you cannot take $1 trillion of u.s. cash and senate overseas to bail out banks, when the u.s. economy and u.s. banks allowed to go bankrupt. they gave millions to

private banking cartel that has taken advantage of the american people and the taxpayers for almost 100 years. it is the j.p. morgan, the goldman sachs -- it goes all the way back to the bank of england that also has been meddling with the federal reserve. even alan greenspan last year made a comment in an interview in which he stated that the federal reserve is more powerful than congress and the president. maybe i am the only one that has a problem with that, but i find that quite revealing. host: we are almost out of time -- your question, please? caller: my question would be -- ok, could you explain that how it could be that all of these western governments that have been exposed to this wonderful banking system these private bankers put us under for the last 100 years were all headed for the same thing -- drowning in debt, headed for bankruptcy and yet the private banking interests, like the rothschilds, who control the system, they are worth over $100 trillion -- host: thank you. gucan you respond to her about the fed did you agree with her observation? guest: i agreed that many of actions of the fed are puzzling. i think ron paul is on the right track. and you will notice that

of fewer tour returns, some where, somehow. the south sea company were in a sense the mortgage bank securities of george and england and people mobbed in london's exchange ali. >> it's not so different from the kind of dodgey debt that people were invest in here in the past five and ten years. where there was no -- this idea that this was the root to becoming rich quickly. and handel was -- he was young, he was an eager beaver. he saw all the upper class doing it. >> paul: isaac newton did it. because the securities kept rising in value. like this lord sharing his winnings, handel, who left london on business, cashed out. soon after, the south sea bubble burst. panic reigned, investors were dropping like stones. they were under water. >> handel was not involved because he got his money out. >> paul: in the next few years the south sea company backed by the equivalent of our fed reorganized it's. jailing the directors and creating a new bond issue paying a secure government-backed three to 5% for now safety conscious investors like george frederic handel. does that suggest he sobered up after the bubble burst and changed his investme

of england. snowstorms all across europe have been causing delays at airports in france and other countries. >> bank of america cut off services to wikileaks, mastercard and pay pal have already stopped handling payments to the website. the bank of america announcement comes one day after the founder said the website will soon release documents involving banks. in the past he has said they possess data that shows unethical banking practices, mainly from bank of america. >> activists took over the sidewalk outside harvey milk a former camera shop to protest the new tenant. they say the two issues go hand in hand because the law they say is unfair to gay youth. they say they make up 40% of the city's homeless population. they say the new tenant of the location, the human rights campaign is not doing enough to help the gay community. >> i mean talk about being in a weak position to being preyed on, to being weak to aids, to all kinds of things. >> reporter: the city law took effect yesterday and bars people from sitting or lying on sidewalks during the day. the human rights campaign said it's inspired

of an ancient bank. no word on their value. >>> and while in china, there may be excitement over these coins for a new coin in england it's a different story. critics say one featuring prince william and fiancee kate middleton looks nothing like that. still, the coin was approved by both the queen and prince william. yeah. not even close. >>> u.s. markets are closed for the holiday weekend, but here is an early look at how they ended on thursday. the dow closed at 11,573 after adding 14 points yesterday. the s&p shed two points, the nasdaq dipped five. taking a look at overseas trading this morning, in tokyo, the nikkei lost 67 points while in hong kong, the hang seng fell 69. >>> on wall street's last day of trade before christmas thursday, stocks mostly flat and volume was low, but that didn't stop 14 weeks of gains. the day's data was almost entirely rosy. consumer sentiment rose to its highest level since june. demand for durable goods surged. first-time jobless benefits edged down. the latest survey on investor sentiment rose to a six-year high. energy stocks led as the price of oil continued its sharp rise up to a two-year high

years i also grew up there so although i was born in england i spent more than half my life right now couple questions first of all the canadian banks are viewed as rock solid and they did not have the kind of problems that other banks around the world have had during this subprime meltdown you know they had a big reform movement not too long ago and i guess to set the stage for having a lot better sound policies in place is are these banks as bulletproof as we are led to believe not a toll and they're not that many of them there has been a lot of consolidation but there are not that many they're not highly liquid and although we didn't have subprime in the same way they did in america sort of lending five hundred thousand dollars to wal-mart greeters to buy enormous how that we didn't have that but we did have forty year morgan chase with no down payment these were the people who were driving marginal prices in red hot markets like. thank you for even now that we don't have that anymore we have thirty five year mortgages with five percent down which is still a pretty extreme situation from the point of view of offering credit the a

bank has put its financial strength to work for a wide range of companies, from small businesses to major corporations. what can we do for you? >> and now "bbc world news." >> the light down under, england wins the fourth attempt to retain in australia. west african heads of state to issue an ultimatum to the ivory coast. russia launches an investigation and clashes between angry passengers. welcome to bbc news broadcast to our viewers in america and around the globe. tens of thousands of passengers remain stranded in northeastern america. and water rationing in northern ireland. hello, and a warm welcome. england has retained the ashes in australia for the first time in 24 years. the victory means that they have a 2-1 lead in the five match to take the ashes back to england. on the fourth day, still to hundred and 46 behind england. they lost an early wicket with some resistance that soon passed the partnership. finally, the victory prompted ecstatic scenes from fans at the cricket ground. the british prime minister has sent his congratulations. it was a very special and to the year and a very late christmas present. our sports news correspondent saw the victory had told me that depend