Government power

Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions -
good moaning overwrite my internets are off the moments I don’t know when I’ll be able to get this video up but it doesn’t really matter because it’s a very long-term sort of looking video are say five years I’m saying over the next five years with have five years of this crisis now five years the next five years will come and go as quickly as the last five years came and went and things will happen and the main thing that I think will happen in shorthand would be that the central banks will move from being pure protectors of the banks to being arm at least in league with maybe even tools of their own governments are right higher so just as an aid memoir of put this arm CNN money headline at half of mortgage borrowers under 40 underwater now when I read this I thought at a good way of looking at it good good thinking by CNN money to think of it that way and it is the younger peoples have come later into the market are more likely to be underwater and down if nothing else that’s a just an interesting heading and down it’s fine for central bankers and government to think well as long as eventually we can create growth veiled dig their way out of this underwater nurse but it’s not really good enough and it’s all part of what I think arm is going to happen basically the Fed is going to move towards armed opposition where it will break up the too big to fail banks in the next five years ago to break up the too big to fail banks are the Fed and the US government Treasury all of them are going to break up the too big to fail banks derivatives can be a heck of a problem for them because safer JP Morgan who have all lots of them what an earth to do with those jury derivatives but I think besides that everything else is in place to carve up because basically the banks over the last five years have been a total and utter pain in everyone’s arts and they can do what they like to them and won’t be too much push back the early push back and be from money coming into Washington but to think that the money coming into mock Washington will stop because the there are proposals to break up the too big to fail banks is obviously wrong more money will flood in to try and stop them and the money will always flood in from wash to Washington basically was what I’m saying and I would say is another thing that might sound a bit radical this would be even more likely to happen if Romney and Ryan getting a full court, okay moving on United Kingdom this is from the Guardian are read this this month to much fanfare the Bank of England and Treasury launched the 80 billion funding for lending scheme to incentivise banks and building societies to boost their lending to UK households and non-financial companies the sceptics wondered if it would be better than the earlier Project Merlin seem as having failed to channel cash to businesses and households of already had charmed Project Merlin to do exactly this and those good signs already that this latest one that only just started is going to fail as well they were right to be sceptical funding for lending lets the banks borrow billions at just 0.25% interest to prompt them to loosen the purse strings especially for first time buyers who face huge hurdles when finding loans yet the reverse seems to be happening Santander hair has stunned the mortgage industry by raising its standard variable rate from 4.242 4.74% it won’t say how many customers are affected although it is understood to be up to 300,000 someone with £150,000 mortgage will pay an extra £44 a month the British banking system Santander hair is coming this century into the British banking system last century the 20th century no incomers came in the hall to the British banking sector retail sector none not one it in fact slimmed down without with a couple emerges why was this it was because it was protected by the Bank of England and the government to basically say to the banks you stay being good boys and we’ll protect you will give you over at an effective monopoly but the banks have now put her gone wrong on their side of the unwritten bargain Santander hair of coming but Santander area being naughty now as well as seen through the eyes of the government’s Argos got the end of this article mortgage brokers call Santander’s move a straightforward profiteering with the bank safe in the knowledge that many if not most of its SVR customers standard variable rate customers will have nowhere else to go and they’re probably right the government is pinning its hopes for economic recovery partly on a revival of Britain’s housing’s housebuilding sector but how with interest rates rising rather than falling potential buyers going to finance these new homes what I’m thinking is that the governments are going by doing these things across the world Western world that are saying is going to make the economy better we think we all know that the economy isn’t going to get better anyway from many other various reasons it’s just not governments are going to look very stupid they’re already in a double dip and it’s going to get worse across the world and the double dips going to get worse they are going to have to blame someone they cannot possibly blame themselves me thinking they will be blaming the banks and to blame the banks they’ll also don’t have to get hold of the central bank by the scruff of the neck kicking and screaming and drag it into their bosom and it will become a double whammy for the banks where the central bank if it knows what’s good for it is going to do what the government tells it to do and so it’s going to be central bank and government in against the banks third and last aid memoir to tick me off to say things is in the financial Times about the elections in Holland Netherlands a win by the SP and its leader Amiel or Mayor, on September 12 could mean a reversal for a country that has been one of the strongest advocates of austerity policies throughout the Eurozone crisis if the party takes the Netherlands out of the German led camp of countries pressing for stricter EU budgetary supervision in exchange for Eurozone rescue measures it could shift the balance of power in Europe as a whole I don’t think that is going to happen their socialist that are probably going to win in Holland if the polls are correct but I don’t think that makes much difference directly to the not signing up for scary I think everyone will sign up to the Germans austerity ideas knowing that the quid pro quo is that the ECB opens up the cheque book and start writing cheques in other words we will. Spending money as long as we given more money now we will have say a huge crescent going round the court which is just good going to be Germany and Austria Holland socialist forswore land running France and then all the Mediterranean countries and up through Eastern Europe who are struggling will all want much more money from the ECB that this is even before this whole crescent of periphery at: periphery don’t overwhelm even the austerity plans of the Germans am sure that all sign up the austerity plans of the Germans to get the ECB started European central banks started of giving money out in my be buying bonds it might be all sorts of things probably at capping bonds bonds At certain rates when that is established and the banana and a happening thing then they will democratically get hold of the institution that Germany and Austria are working through that says how much austerity is being done and then democratically take over that institution and make the things that have to be done austerity wise to keep the EEC be paying out just water that down water that down arm until all you have to say is hailed Jack to law twice but on the floor turnaround and then the ECB still keeps pumping the money out what that is is the European countries getting hold of the central bank and doing as I said will probably happen in the UK and the US as well the governments get hold of the central bank and manipulate the central bank for what they want and are if it involves strangling banks then banks will be strangled shrunk down got back under control has been a power struggle that the banks have one it will swing over that the natural power will go back to governments with other central banks working as their henchmen to to get the power back to the governments attempting to make things much better but it will be an interesting swing of power maybe bite