let's listen to the chancellor of the exchequer and the british finance minister george osborn. >> it's very disappointing news and it's a very tough economic situation when you are recovering from these enormous debts that burton boltuch in the good years. it is not been made any easier by the fact that much of europe is in recession or heading into recession and we have got to go on dealing with those debts and making our businesses more profitable and making sure we don't add too boring and make a difficult situation worse. >> george osborn defending his position and setting much of europe was in difficulties as well. we hear today the european commissioners wnt their budget to go up to 6.8%. -- want. >> i am smelling hypocrisy. european officials saying they want a near 7% increase in the 2013 budget. there are cries of double standards. it's the european commission that has told all the european countries in particular the euro zone countries to get their financial house in order. quite astonishing. they are expected to justify it by saying they have been big financialhave spending

that live there are suffering financial repression are suffering horrible economic calamity and george osborne and mervyn king zimmermann king is ben bernanke is equivalent to the bank of england and he likes to sit back he doesn't have a flatulence problem he's got a gastrointestinal problem that's his contribution to a lot of terry policy around the world and he blabs a few things or some so i think but he's basically in the financial repression game he's interest rates artificially low so that grannies you know the new george osborne budget it takes more money five billion pounds more from retirees and pensioners and puts it into the pockets of clipper krauts in the city that's on top of the forty five billion pounds that almost born in cameron engineer the theft from pensioners and grannies into the pockets of speculators who if you're a berkeley's or h.s.b.c. or the old lehman brothers over doing is going and shoving it up their nose that's all they do a friday or saturday night go to some people in the see plenty of bankers all their back making snorting cocaine well let's look at these

government has a plan but buyers beware was not as it seems chancellor george osborne wants to bring back never ending loans dumping the government's crippling debt on to future generations it'll still be pouring and this is money george and friends won't have to pay back sounds too good to be true that's because it is putting their they stage their elements of it this is a good time for the u.k. tax by families to be issued but that begs the question of who would buy it if it's a good time to issue them then it's not a good time to buy it would be buyers at the taxpayer's themselves shouldering the government's past one trillion pound debt pile by lending it money also on off a bonds that will mature after one hundred years these workers if the government taking out a very generous mortgage benefiting from its current rock bottom interest rates for another century bad news for whoever is lending the money the only way you can actually make money here is if there was no inflation between now and the year twenty one twelve a very optimistic outlook take the last hundred years for examp

george osborne, is that right? >> that is what he said earlier, yes. >> this was a way into finding out what was going on at a high level, and we can see that from the text of the e-mail. firm tensions in the coalition around his cable and his current policy positions, this made a political decision. this is the issue of the intervention notice, probably without even reading the legal advice, as confirmed was also by vicki price and david lord yesterday. do you think it's appropriate, mr. murdoch, that here you are getting confidential information as to what's going on at the high level in government? >> i think, i think that, what i was concerned with here was the substance of what was being communicated, not necessarily the channel by which it was being communicated. mr. michel's job was to engage with special advisors at the political level, with westminster to put it broadly, that is what a public affairs executive does. he reports back what he is being told. and at no point in here did he or the company put fo

george osborne has come out and said we're abandoning any economic plan.just make the situation worse. now, besides earnings and economic data, it's the day the big man steps up to the plate. ruepert murdoch is expected to testify. he's raised me questions. kayla tausche is on the ground, the very wet ground of the courts of justice. this is day two, two days. this is a very long time. what isn't going to be talked about? >> reporter: well, i think they're ruling nothing out, ross, and that's why you're seeing rupert on the docket for a potential two days of questioning. of course, it depends whether they should get everything out of him that they'd like. remember, rupert last testified in front of a parliamentary committee last july in which he said it was the most humble day in july. in the meantime, there was testimony in front of the parliament committee and he had his day of reckoning in front of lever ison yesterday. now, this will be having interesting. of course, you want to get on rupert's schedule and you want to make sure when you have him in th

that was very important to the british as george osborne has said quite plainly, very important to all of us. contributing to the fund to use as it sees fit around the world, and whoever the borrowers are, whatever the causes, it's got to be the same fund be standards. because the credibility of the fund is what we are attempting to bolster through this effort. on your second question, um, i won't read too much into the final editing that goes into the statement. the statement does emphasize there's a very important nuance in the statement on monetary policy. it doesn't just say that monetary policy needs to remain accommodative. it says it needs to remain accommodative as long as inflation prospects remain anchored and regrowth persists. and that was a very important emphasis, quite frankly, in our discussions. and it captured both sides of the atlantic as well as the emerging countries. and we spent some time discussing this in the context of the emerging countries as well. we were all, we were all pretty much of the same mind on the importance of insuring that inflationary expectati

george osborne, is that right? >> that is what he said earlier, yes. >> this was a way into finding out what was going on at a high level, and we can see that from the text of the e-mail. firm tensions in the coalition around his cable and his current policy positions, this made a political decision. this is the issue of the intervention notice, probably without even reading the legal advice, as confirmed was also by vicki price and david lord yesterday. do you think it's appropriate, mr. murdoch, that here you are getting confidential information as to what's going on at the high level in government? >> i think, i think that, what i was concerned with here was the substance of what was being communicated, not necessarily the channel by which it was being communicated. mr. michel's job was to engage with special advisors at the political level, with westminster to put it broadly, that is what a public affairs executive does. he reports back what he is being told. and at no point in here did he or the company put fo