how does he remake the bank of england? guest: is extraordinary to prepare for nurturing your bank. >> guest: as a surprise and it happened, but reflective of how hard a job it is to fill. >> host: his wife is british, so maybe that helps. in europe you have her druggie trying to hold the euro together. what do you think is big news will have to be? >> guest: the ratings revolved with the banking crisis in the very recent past makes a little more nervous about how they wish to what degree they've built around the yours on and their sense of determination and holding it together. is that while secure enough to stand up to whatever panics are crazies come around. whether it's governments we have horrible, horrible situations. 25%, 30% unemployment increase in spain. is there the political will to remain in the euro? job isn't over. >> guest: is a big challenge. he's promised to buy a lot of bonds. countries like spain and italy and it's gotten away with making a promise in july. at some point, he may be tested. remember that

the apartheid wall of interest rates you get dividends from a company that can borrow from the bank of england a near zero percent and as the replacement really bites you're protected because now you're dividends are going higher if you live on the other side of the interest rate apartheid wall then you borrow money from some companies to wanda to make ends meet for the end of the week and they charge you on an annualized basis four hundred five hundred six hundred percent again you're the financial end word what you're not allowed to say because people would panic and you end up being slaughtered so let's talk then about george osborne and his financial non-computer because he looks out at the economy and what he sees as too many workers having too many rights because we have minimum wage could be frozen or cut if it starts to cost jobs or damage economy government suggest the minimum wage for millions of people could have to be capped or frozen in the future if it risks damaging jobs or the economy the government has said so when you look at this economy if you look out here what do you see

banks who were responsible for blocking the process of redistributing all of this quantitative easing abuse this knucklehead of what the role of the banks are in this equation quantitative easing means that the bank of england is telegraphing that they're going to be buying billions of pounds worth of guilt in the market banks simply front row. those purchases they just get in further those purchases they do it through a repro market so that there are in fact my putting up any capital at all they're borrowing capital at ten basis points to capture a one and a half to two and a half percent interest on those bonds they are being rewarded to borrow as much money as possible at that rate that's almost zero that's being created by zero interest rates or zero interest rate policies again she's absolutely wrong what the f.t. flyer this woman because she's making it look like a jackass ok she doesn't know anything about anything but she says that it's helping the debtors and this is a very important because they're being unfairly penalized so let's look at the biggest debtor in the world who is the u.s. government and i saw a tweet from convert bond laurence macdonald he's a former junk bond trader from lehman bro

inflation is not a risk thing and inflation's under control because there's no inflation the bank of england. to keep interest rates down to near zero at the same time they're telling their one percent clients that because there's so much frickin inflation we're going to tie dividends to higher rates of inflation so you're not gobbled a lot by the real inflation number one number two how can this company the grid afford to pay these escalating dividends to keep up with inflation they borrow the money from the central bank it near zero percent so it's a mechanism what i call interest rate apartheid so if you're on one side of the apartheid wall of interest rates you get dividends from a company that can borrow from the bank of england a near zero percent and as the replacement really bites you're protected because now you're dividends are going higher if you live on the other side of the interest rate apartheid wall then you borrow money from some company to wanda to make ends meet for the end of the week and they charge you on an annualized basis four hundred five hundred six hundred percent

and gold bugs the old lady of course is the late old lady of threadneedle street and that's the bank of england and the bank of england employees spend their work time playing online games planning trips to expensive shops and working out how to buy gold according to data obtained by the capitalist newspaper here and what they found is of the top five hundred sites one of the most frequented is the s.p.d. our gold shares company a company that promises an innovative relatively cost efficient and secure way to access the gold markets at the time of going to press they say max the capitalist could not confirm whether this pointed towards future monetary policy well a lot of people who worked in slaughterhouses become vegetarians and people who work at the bank of england who say what they do at the bank of england just trashing the pound trashing currency making extraordinary only lopsided bets in favor of an entrenched aristocracy they go out and start buying gold and you also brought up ben bernanke he's in the news in the headlines this week by accident fed gives early data to banks the federa

of financial stability in the crisis. this is a time in which british banking sector became a huge multiple of british insides and centrally bank regulation had been shunted off to the fsa. the bank of england i'm told over and over by people who worked inside the bank during this time that was kind of the career graveyard to go into the bank regulation and supervision but it turns out all those things about how to make the system work and what were working and were not working were imported economy and finance is still ability. that is one reason why think bourbon kings track record will not survive. i'll very much was an advocate of written taking a turn for fiscal austerity in 2010. he was out there telling politicians in ways that really come against the borders of imposing politics too much saying we need to cut our deficit right now. if we don't very bad things can happen. now we have seen for years almost as stagnant growth and that is what he we advocate is part of the reason. >> host: so he is a c. >> guest: he is a c minus. >> host: at a lot of it has to do with outcomes. people feel better about bernanke almost an obviously is important in the united states and the u.s. economy h

the bank of england, that swedish national bank, the swiss national bank. and that is partly a reflection of a sense of common purpose that the central banker shared. >> host: not only that way but that when the fed was lending money to banks, when they expanded their lending, the direct lending banks there was a discount window and the thing that evolved into this facility, it turns out we now know a lot of european banks are borrowing direct from the fed through the u.s. offices. so what strikes me is exactly as you say, the opposite of the twenties when each of them was pulling apart. this time they're much more pulling together. >> guest: even i as a reporter did not fully understand that at the time. in an ounce this in the new facility. a kind of got my head around this. this summer to cut summer of 2007, which seemed like an eternity ago. you know, we now know because of all this information coming out through the freedom of ever major requests and lawsuits. overwhelmingly that money into the being hundreds and hundreds of billions of dollars and was

well a lot of people who work in slaughterhouses become vegetarians and people who work at the bank of england who say what they do at the bank of england just trashing the pound trashing currency making sure merrily lopsided bets in favor of an entrenched aristocracy they go on they start buying gold and you also brought up ben bernanke he's in the news in the headlines this week by accident fed gives early data to banks the federal reserve alerted bank officials on tuesday that policy. makers were considering a shift a when to begin easing back on stimulus efforts a day before the news was released publicly but it insisted there was no evidence traders on wall street had benefited from what it was called an error and the banks were citi bank j.p. morgan goldman sachs wells fargo u.b.s. b.m.p. perry and h.s.b.c. well every month the federal reserve bank prints eighty five billion dollars in cash and that money is front run in other words people are buying stocks and bonds they know that this cash is coming and you have these rallies in stocks and bonds based on the artificial stimulation of s

guy killed his kids and burn to death he should be running barclays he should be running back bank of england not mark carney mark carney is just a smooth talking money printer put philpott he know sort of burn people alive put in this bank of england you frickin morons george osborne so here we have to a man responsible for awful crime of killing his children so let's see how their friends and family and people around them justify their behavior understand what it's going to summer thousand pounds a year bonus and a pension plan phil pot he proved himself to be north of us a murderer. george osborne this is your man regrettable and this is your man to be the chancellor of the exchequer phil but so phil potts lawyer says man behind darby fire a very good father a man who killed a six year old in the house fire was a very good father who never meant to harm them his lawyer said so with this argument that he was a good father and he just you know accidently killed the six children i want to turn to how people use that excuse for bankers and the banking sector and central banks and we look aroun

full global financial collapse: ben bernanke and his two fellow central bankers, the head of the bank of england and the head of the european central bank. "the alchemists" is effectively an insider's account of how they did it. it was written by washington post economics columnist neil irwin. alchemy and the mystical powers of turning things into gold. i assume there is a deliberate intent in choosing that as the title for your book? - there is. hundreds of years ago, the alchemists were these guys who tried to create gold and silver out of routine materials. turns out you didn't need magic or potions or any of the stuff they worked on. if you have a central bank, if you have the authority of the state, and you have somebody to run it, you can print money out of thin air, and that is what the central banker's been doing for the last six years. - but they are not really being hailed as heroes in all quarters. a lot of people feel they have unchecked powers, these un-voted individuals. - it absolutely raises huge questions for anybody who cares about democracy and transparency. what i am trying t

what sort of innovation will they bring to the bank of england and how important is his selection in the context of, say, postwar central banking? >> i think on pure merit competence is someone most central banks would want to have. so that is this bit of unprecedented to have a former actually running the central bank. they did of foreigners on the committee like me and to a number of others central b have done that. but it is a little different to have your governor or your chairman do that. but i don't think unfortunately perhaps for some of people sitting here, myself included, it's going to be a global free agent market and central bankers. i was not considered for governor of bank of japan, for example. more seriously and specifically to the bank of england, i think mark carney said pretty safely in his last appearance before the select committee, which is uk's house of commons robin oversight, that his main emphasis is going to be on the huge managerial challenge of getting bank supervision back into the bank of england, integrated function and a better way that it functioned i

bank of england governor said churchill is a fine choice, because he was a great leader, orator and writer. >>> that concludes this edition of ne"newsline." thank you for joining us.

sounds like they're setting themselves up for more what's called quantitative easing just like the bank of england willing there's a more quantitative easing the federal reserve bank is already eighty five billion or so a month and in buying of its own bonds so the entire globe now what the e.c.b. was lagging sounds like the e.c.b. will join the arms race toward who can solve destruct the fastest by lowering rates and buying lots of of their own paper now professor peter bofinger an economist advisor to merkel said this week that over the next ten years the rich should give us a portion of their assets like vacation homes in spain so quantitative easing is not enough wealth they want to take the people's houses to your thoughts. well it's certainly an interesting twist so far in the bailouts the people who have paid more usually the pension nears the lower class people who've seen many more wage cut increase for example private sector employees public sector employees they all have been paying for these bailouts and of course taxpayers now the countries have been paying for them so now the this pr

sounds like they're setting themselves up for more what's called quantitative easing just like the bank of england will engage in more quantitative easing the federal reserve bank is already eighty five billion or so a month and in buying of its own bonds so the entire globe now with the e.c.b. was lagging sounds like the e.c.b. will join the arms race toward who can solve destruct the fastest by lowering rates and buying lots of of their own paper now professor peter bofinger an economist advisor to merkel said this week that over the next ten years the rich should give us a portion of their assets like vacation homes in spain so quantitative easing is not enough wealth they want to take the people's houses to your thoughts. well it's certainly an interesting twist so far in the bailouts the people who have paid more usually the pension nears the lower class people who've seen minimum wage cut in greece for example private sector employees public sector employees they all have been paying for these bailouts and of course taxpayers now the countries have been paying for them so now the this propos

in the bank of england. keynesian but they are fighting this war against the austrians and they're doing it intentionally for the austrians because austrians would say there is no intrinsic value there's no such thing because all value comes from human consciousness is what humans perceive something as being worth that's what the worth is so he says this is what hugo salinas price who was a good friend of me sees by the way so he is an austrian school following the wikipedia dot org definition the psyops war on gold is intended to influence the target audiences value system belief system emotions motives reasoning and behavior i would add especially this last which is what directly affects the price of gold well you know austrian school going back to karl manga is a transition from medieval economics to more of a post medieval economics and this idea of value is in the eye of the beholder gives the same connotations as knowledge is in the the it's kind of like know that or there's kind of like the i think th

of that came in the three year. spanish banks yield lower on the back of 4.86%. four times oversubscribed on the 2018 bond we were, as well. as we wait for the bank of england to deliver, just a reminder, services pmi coming in stronger than expected, a 52.4. expected around about 51.5. that probably means the uk has escaped a triple dip. the recession probably means we won't get any more qe at 12:00 london time. about two hours from now. just show you where we stand with sterling/dollar, sterling/dollar off the low, 1.5062. we have got a lot ooh support around 11.54, cable. dollar/yen we've been looking at. yen weakening on the back of the bank of japan. occur row da coming out and can doing more than expected.kuroda more than expected. ur roar/dollar, has been down around 1.27. weaker in france are the composite figures. let's recap that asia session. sixuan rejoins us. >> indeed. thank you, ross. with china market out for a public holiday, the stunning outperformer today was japan, up 227% following yesterday's 3% surge. tin decks, in fact, opened lower, dipping as much as 1.7% before turn into positive tear. the turn around was triggered by, of course,

regrettably we decided that we're pulling out of the u.s. >> and we are now getting news out of the bank of englandutes from the latest meeting and employment data. details on that april meeting show they voted 9-nil for rate action and 6-3 to keep asset purchases steady. the theme of king being outvoted by his court continues and sterling weaker by a quarter of 1%. a quick update on the employment figures that we're seeing for the british economy. it looks as though these are march figures adjusted showing jobless claims fell. remain at 4.6% of the workforce and it looks as though the unemployment level, however, rose by 70,000 to 7.9%. in fact, the unemployment increase was the largest since november of 2011. it looks as though employment through february posted its first decline since october 2011 and average earnings growth of 1%, the lowest since records began. a little bit confusing. i hope i didn't confuse people there too much in talking about february and march and three-month figures. let's introduce phil with just your initial take on what looks like -- king outvoted again wanting more p

the decision after the bank of england maintained its low rates early this morning. we saw out of the bank of japan overnight. it is saying it will pursue that easing until it gets its inflation target to about 2%. let's move on, get some other corporate headlines for you this morning. if you don't mind last year's ipad, best buy is trying to lure customers with a 30% discount on ipad 3. some are taking that as another hint that apple is about to launch another version of the ipad and iphone. best buy said it is not discounting the price of the ipad mini. the carnival "triumph" is back under control. high winds caused it to rip loose from the dock. breaking news decision out of the ecb. rates unchanged at.75. joe becky, phil lebeau and ackerson heading outside. the new corvette stingray. buckle up and hold on tonight. "squawk box" is coming right back. >>> welcome back to "squawk box". we're with chairman and ceo of g.m. phil lebeau is here. we're all acting like it's 80 but it's not. >> i'm not. i put my coat on. >> it's like 30. we're going to actually go over and l

the bank of england vote has been 6-3 to vote against more quantitative easing. e suggests we won't get anything else. the last meeting, kelly, of the current bank of england says mr. carney takes over in june. >> and he's been joit voted. we also want to know what this will mean for austerity versus stimulus. if you want to weigh in, by the way, on our website. cnbc.com is the place to vote. >>> meanwhile, a mixed bag of earnings for spanish banks. santander posting a 26% drop in net profit. well below forecasts. at the same time, caxiobank beat estimates for the quarter. sharing the first signs of recovery, they need to, they have modest earnings of 74. but the cool thing and they've swung from their record loss tr 2012. joining us now is derek. good to see you. look, we see spanish unemployment at a record high. 27. 2% this morning. i mean, no surprise to see earnings of santander weak as they're on the back of that. >> yes. no, earnings are very -- at the moment in the domestic spanish business. in addition to that for santander, they are facing revenue head w

sounds like they're setting themselves up for more what's called quantitative easing just like the bank of england will engage in more quantitative easing the federal reserve bank is already eighty five billion or so a month and in buying of its own bonds so the entire globe now what the e.c.b. was lagging sounds like the e.c.b. will join the arms race toward who can solve to structure the fastest by lowering rates and buying lots of of their own paper now professor peter bofinger an economist advisor to merkel said this week that over the next ten years the rich should give us a portion of their assets like vacation homes in spain so quantitative easing is not enough wealth they want to take the people's houses to your thoughts. well it's certainly an interesting twist so far in the bailouts the people who have paid more usually the pension nears the lower class people who've seen many more wage cut in greece for example private sector employees public sector employees they all have been paying for these bailouts and of course taxpayers now the countries have been paying for them so now the this

we have the bank of england and bank of japan starting its two-day meeting today. as we wait for markets they are searching for direction. let's look at major european here. ftse has been telling to watch. it started down by 0.2 of 1% but it has taken more stocks across europe into red. down 0.8 of 1%. ftse 100 down. it was a tone and markets even though we had seen underperformance in the u.s. today we are seeing more red across europe. moving on, let's look at bond markets as well. today spain is catching a bid. interesting move and surprising to see just how far this yield has fallen in the last few sessions back below 5% to 4.92. italy flipping into the green falling despite the fact we have no government formed in italy. we'll look at a major move in the italian market today in terms of that moleskin ipo. the yen weakening a little bit. 93.5 is that mark there. the australia dollar a strong session yesterday. euro/dollar a little bit weaker. japan has been the story. are we seeing a different trend taking place? is the bank of japan not delivering enough poten

resolution the garden article document similar warnings from citibank , standard & poor's, and the bank of england. also last week cal personnel earned an a grade

if you look at the behavior of other central banks, bank of england over the last several years would be a case in point, they are just as focused on both objectives as we are. practically speaking, there really is not that much difference, if any, between what the fed is doing and what other major central banks are doing. >> thank you. i think we are out of time. kevin is going to shoot us. can we go along? go along, just like football. among fed watchers, you are considered the favorite to follow ben bernanke should he step down when his second term ends in january. if that were to happen, you would be the first woman to head the federal reserve and its one hundred year history. i'm not going to ask about that that, because i know you want comment. [laughter] among the central banks of the world, it is still an old boys club, so that the broader economics for fashion, only made up of about one third of women. i am wondering if you comment on, do we need more women to lean in to economics and tulane in into the leadership positions at central banks and what did that mean? >> thanks f

resolution the garden article document similar warnings from citibank , standard & poor's, and the bank of england. also last week cal personnel earned an a grade from the acide owners disclosure project, which evaluate how large investment funds are managing the risk of. climate change as well as one of the largest and most respected pension fund this announcement will cause pension funds and endowments across country to reconsider the risk of climate change. divestment is a growing movement led by college students around the country. we have 300 campaigns in college campuses in the us; we also have cities . picking up the banner as well recently the mayor of the city of seattle, started the effort of divestment. from fossil fuel companies with a retirement fund. divestment is also an important part. ford is moving forward with the implementation of ab 832. government action is not enough. we have to recognize that we cannot burn all the oil and fuel and fossil reserves around. divestment is one tool that we have. the retirement board can invest responsiblywithout affecting the funds , security o