tv [untitled] August 10, 2011 5:00pm-5:30pm EDT
three. three. three. we've seen your story your media drug free media card. routine so much look you would have loved ones were little. yanks would want to run in that guy so tempers flare on the streets of london over another day of riots which launched using shop owners are now fighting back police giving their holidays but what exactly are protesters in the u.k. out for. and it's all greek to me as austerity measures but greece in ruins and now london is in a spot of trouble is this the end and the response to an economic era. exam the government is going to rock it with the current winner and with good reason and so
will you be prepared for the end of the world as we know it well why do you think it's coming and i will show you how far some americans are going to be ready just in case. good evening it's wednesday august tenth i'm lauren lyster here in washington d.c. and you're watching our t.v. well in the u.k. riots have gone into a fifth day and they continue to spread throughout london as you can see behind me now as seen behind me here to riot or excuse me they were going on in a few areas which we saw back there but in addition you have a lot of scenes on the streets right it's continued into the night you have police officers that now are and forces a sixteen thousand of the on the streets they've tripled you have shops being looted and now a new development you can see down there you have new riots popping up but not.
they have brooms and they are cleaning up so all of this is going on but what's really being ignored some would argue is what the root causes are beneath us some say that it has to do with social inequality and some say it has to do with austerity measures which have clamped down on average people a lot of different opinions and a lot of similar issues going on there happening in the united states as well so what could this all mean for us here in the u.s. well we'll get to all of that we'll have a discussion but first what exactly is going on right there in london where we have the back story from artie's lore and here it is. across england and wales more than eleven thousand police have already been laid off in austerity measures by two thousand and fifteen a total of thirty four thousand will go meanwhile london and other cities are taken over by folks the police have not been anywhere where if the police if the police.
i think any surprise either side little bit better i don't think they're doing everything they can i don't mean i think they need to be more competent while police numbers are being cut the estimated cost of the war in afghanistan from two thousand and one to the end of last month was thirty billion dollars all taxpayer cash british forces are also heavily involved in libya despite the ministry of defense being required to lose thirty two thousand start. button says money's being spent on foreign wars that should be spent at home but i think the point where we have to call in force what we've seen now and. criminality across the whole of london what we should do in my view is pull our troops back from these pointless wars in afghanistan and iraq. as money is spent on two wars in foreign lands parts of london birmingham liverpool and bristol are essentially partly
because of high immigration but also because young people in these communities have no prospects the board and disaffected and as the cuts bite that's not going to improve a class youth worker told me four out of eight youth centers have closed since last year. in your communities when you take away the money from the police in. the money for the use. of the ark never imagined such consequences for you only you know you go to conferences tuesday night saw sixteen thousand police officers on the streets of london according to the metropolitan police the forces being stretched more than ever before i didn't creasing the londoners are talking about taking matters into their own hands bringing with it to ation under control is just the beginning of folding this problem it's not just about cleaning up it's about communities coming to terms with the fact that even at the current numbers if
violence is widespread enough the police seem unable to retain control the feeling of insecurity in these communities is likely to remain for some time particularly if police keep disappearing from the beach nor am it r.t. london so what is really behind the riots in the u.k. i'm not going to mean on this side of the pond well here to help us figure that out as sally mcnamara not only is she of the heritage foundation but she grew up in nottingham in a police station her home town was destroyed by these rioters are attacked thank you so much for being here so a lot of different areas about not exactly what caused this but what are the root causes underneath it some say social inequality some say austerity measures some say police targeting minorities what do you think is the root cause i mean. it's been a lot of political opportunism here however i think we would be absolutely insane not to acknowledge that we have a fundamentally broken society in britain we have
a situation where young kids are seen running out of supermarkets running out of louisville town running out of sneakers stores with bags of stuff that they think is ok to loot and they'll go home and their parents won't say hey you can't steal that there won't be any ramifications from the police we are starting to see now the government is pushing back we are seeing people brought up before the courts already the courts were up all night processing the bales and processing the prosecution of these people we need to have a lot of back in our society but what but how do you think they're that london got to this point because you were just saying that a while ago we saw a royal wedding they brought millions of people out of the streets and everything was fine so why all of a sudden now is everything in disarray people are alluding people are angry people are writing the just a position is absolutely astonishing everybody saw the royal wedding where we had a million people a million people on the streets of london and not a single security incident and now here we are three minutes later looking at this
rioting there was a spark and there was a mob mentality this is pure lawlessness because there is a ton of underclass in britain who think there are not run if occasions for their actions and the government need to prove that there are there is no doubt about it that we have an underclass and it's not necessarily about social inequality britain if you look twenty years ago to now we are a very wealthy society in terms of economic freedom we're right at the top the same time there's a lot of inequality according to figures in two thousand and ten the richest ten percent of the population are a hundred times as wealthy as the chorus ten percent so there is a large disparity ought to those figures show you know twenty years ago we were poorer than we are today it is total socialist mantra that we'd rather see the poor poorer the rich richer who really cares how rich the rich are we care about how much wealth the reason society our jobs. however we have a ton of families in the u.k. now where parents are essentially paid to stay at home the government is saying you
know what we're going to give you unemployment benefits for a year and then you can have to prove that you're looking for a job this isn't a free handout will give you one hundred but not a handout and that's the way government should be for the past decade and a half the government has said this is that check do what you like morality is relative family it doesn't care if it's quite embarrassing we have got rid of all the social norms in our society and this is the resources that what about people that are community leaders and some of these poor neighborhoods that say this is not a surprise this is my grandson is stopped by the police all of the time there is no future for a lot of these kids they don't feel like they have there's any upward mobility i know from people that have lived in britain and are british that social class is a lot more pronounced people talk about it people know they're standing so from that perspective in those communities and you don't think that's fueling any anger underneath the surface or any sense of of hopelessness are no ability let me tell
you i'm not i have my parents over and above the minimum wage i was the first person in my family to go to university there are opportunities in britain however you need a family that's willing to support you and you need to be prepared for hard work what a lot of these people are saying is all there's no opportunity to do this plenty of opportunities but what it requires is individual responsibility and hard work and we have lost all those values from our society because the idea that the government's going to do everything for you whether it's providing welfare whether it's free places that university whether it's hands of living you into a job and if you don't like it will pay you just not go to your job we have to say we will give you an opportunity but you've got to work for it and i think we have lost the values of hard work and social entrepreneurship in our society do you think just you know that of a devil's advocate but to bring up the obvious you know you are not a. poor black person in these communities that's writing on the streets what gives you the credibility to speak for them i grew up in social housing you know i'm not
here speaking to you as someone who grew up in a very middle class society if this is an idea that we can blame the rich for all of our problems but he's an excuse that's not an explanation so much that bridge that britain has rich people america has rich people what do you do should be a social aspiration for us to send a lot of we will not get richer if we say we're going to poor the rich people this is an idea that there is no shared sacrifice there is the austerity measures that we've implemented there is a new bank levy we are sharing are paying the top two percent of n.s.a. or the us haven't done that but fifty percent overall goal of all people in the us don't pay for drilling comes out so that's another another misnomer also what do you consider poverty i consider poverty someone who can afford to feed their kids however if we look at why the american standards of poverty there is an x. box in the house there is too cause there is mobile phones there's the i've heard
ok that is no politician i want to get to what you said about about america i want to get to the united states because you said what does it matter you know that there's a lot of wealth there's a lot of wealth in the united states and i want to play you what joseph stiglitz and also both economists said about both the income disparity in this country and also the belief in the american dream that maybe makes people not so aware of that and play those those sound bites place america was a country that sort of stood stayed together historically with great unity on the glue that we all figured if we work tars we play by the rules we do better than our parents so they would do better than their parents and our kids would do better than ours would have been in the rarest couple decades is twenty for a quarter of all income goes to the the one percent. forty percent bringing you measure of the will schools to the purple one percent and in the bottom fifty percent control two point five percent of the well so in the u.s. there is this idea of american dream and of achieving and doing better than your
parents executed the u.k. but the statistics don't support that that doesn't exist in the united states anymore there are lies damn lies and statistics we should not want to see the poor poor because we don't want to see the rich richer i think this is a completely false misnomer look at brock obama you know you have one example that doesn't represent us president yeah that's a good story and that's one example but that doesn't negate the high rates of unemployment in african-american communities that far outnumber the amount in just the general population or any hispanic communities or any of those facts but i think work obama has talked about this quite eloquent eloquently when he said we need to have better role models in african-american communities male role for his or storage we also need to start looking at the family keeping families together and family with a mother and father and kids is one of the best things we can have to society those children were likely to stay in school the same school longer they're more likely
to achieve also the old os is what you say you can be doing look at the achieving board although your country unemployment is so high and there aren't jobs for people that how good education is how the good family we got went to a good school let me tell you the worst thing we can be doing for our kids is saying we're going to leave you with twenty trillion dollars a year of our debt for you to pay off and that is a given in the am. doesn't have a lot of doesn't have a role of the have a stake in that there's not much they can do they were a two percent of them are something approved of what went on in washington over the debt crisis they don't have any ability to effect that every american has a stake in for that crisis because it is our kids that is going to have to pay this off they have in terms of today i mean how are they have they ever say to get out of the blue or do they have to have a vote your right to not they don't vote on the debt crisis to market and vote on the debt and all you see. thinks as a former government but is better than everything else that was tried and failed in terms of what we can be doing to create jobs i think we are doing the one thing at the moment we are piling debts are we all saying the government should endlessly print money we're not giving the real things that do create jobs what creates jobs
not the government the private sector the private leisurely reading john we only want to be happy we need to be taking about regulation we need to be giving them certainty we need to be saying it's ok to spend money because we are going to give you certainty going forward what we're doing is saying you've got to pay for onerous health care we're going to put more environmental standards we're going to put trillions of dollars in all sorts of regulations business regulations that is not going to create jobs what we're doing is tried and failed policies that have proven to fail and increasing our kids there is going to shock all them for not using inequality so how long until we see the same thing happening on the streets of the u.s. what's creating the quality all of the policies that are in place now we don't have any of the things that you think would be solutions in place in any quality is increasing in this country it has been that is the trend and it seems to be continuing based on the policies that washington isn't acting so how long until we see the same things happening there on the streets of us if you increase the government the way we're going you're going to see this in fifteen years that's
what it took for it to happen in the u.k. what do you think we should do we should roll back obamacare we should roll back regulation we should unleash the private sector we should increase taxes we should lower the debt if we did all of those things i guarantee you we would see job creation well there is there is your estimation and your prediction and i'm going to have you back in fifteen years to skip. the most that we saw in arc america heritage foundation. now the u.k. impose austerity measures not too long ago which have affected the lives of people many who are now looting on the streets of the u.k. not too long ago two austerity measures push people into the streets of greece is there a connection and could this get worse as the u.s. and the global economy head towards what some call recession what some say could be a depression well joining me from greece is a radio host and economics blogger to me who was covering those protests and greece
when they were going to meet thanks for being here. so my first question to you cover the protests in greece you were there when people in greece reacted to austerity measures you talked about the toll austerity measures have taken on the economy of greece people have suggested these riots in london two are fueled by economic issues lack of mobility inequality austerity measures do you see a connection between what is going on in greece what's going on in the u.k. and what's happened in europe you know in portugal and other places as well. i mean i think there's your similarity between these riots and the ones that happened in december oh wait in greece because we have a similar sort of situation where is the good. the murder of a young man a fifteen year old boy. but in general there were city runs across the world and the developing room in four of its food drives other parts of it are austerity but in certain so trying that we seem to see and it's certainly a trend you would expect to see during a bear market and we're certainly in
a bear market certainly in the west but globally as well and so and so surprising i mean it's all it all stems from economic issues and it you know just look at inequality for example in britain you know in two thousand and ten the richest ten percent of the population had more than one hundred times the wealth of the poorest ten percent in the united states there were just ten percent controls two thirds of net worth of americans so do you think that the same kind of unrest will come to the united states we have the same issues in the united states. well yeah absolutely i think that there's no question and so this one happened and the with the river and so here because of the united states whether it was warranted or not i think speaks volumes about the shift of risk from the balance sheet of banks to the balance sheet of sovereign countries which are vocal backstops for the welfare state so when they start to question of course you're going to have mounting unrest and i think ultimately because the system architecture is such with the banking
system and the way that the sovereign countries are going to backstop for. for the banking system i think you're going to see wonderous especially ones that is because the u.s. is an empire and it's the reserve currency of the world so when it when this when the system collapses it's going to be almost felt in the u.s. because an empire sits on a nation state within which it was isaac a giant parasite and so when that crumbles it's the it's the biggest star it's there is the final piece to go but the meter at the same time you said that the united states dollar is the reserve currency there are unique aspects to the united states that somewhere like grace doesn't have the us has not to tary policy at its disposal it can print its own currency greece can't do that greece is attached to the euro they they don't have that ability they can't print the reserve currency and yesterday the federal reserve came out and said they'll keep interest rates near zero for two years so do you think that this will help the u.s. economy in a way that other economies cappie. i well what it does is it gives the
u.s. the flexibility to continue to get capital and gives the function the disability us to the u.s. treasury market because we have seen pretty real struck substantially during this period where isn't in the u.k. and you know now that you can share it in europe you're seeing a real rise for you and i actually it's one of the things that's instigated the c.b. to go into their secondary market and buy a lot of time strange that. but. but i don't i don't i don't think this is a good thing for the united states absolutely not zero zero interest rate policies and so it's only we're only getting better because the banking system is insolvent . and the fed was a particular part credit which is it's just great just more debt to continue to prop up the system so i don't think that it's a good thing for the long term in the short term you know allows it allows the u.s. to stay afloat perhaps longer than europe would otherwise what in the long term though i mean is that really going to help because i mean just as ted let's was writing in the at all times earlier today that there was worried about the shortage
of policy and stern myths are partially correct that bad monetary policy got us into this mess but it cannot get us out can it do anything does did does the federal reserve have any tools they can do anything. i think the first proven enact really because the thing is the money multiplier is broken in the banking system remember the federal reserve used the fed the federal funds rate to push down the boring rate for banks but if no one's going to borrow that money you're in that what people call the liquidity trap which is why the third was forced to find innovative ways to continue the problem is just a mess which we wanted to we too were about they were buying bonds and buying long term bonds i mean if they could effectively you could want to go against his charter but theoretically before you go go ahead and buy whatever he wants when super market operation so theoretically before you go in monetize everything on the planet but that's not going to do anything that's going to further work with dollars price everything to infinity and collapse the monetary system and that's the nature of the system the system is architected so that it's going to self-destruct ever since we went off of bretton woods we were running deficits and
i think sixty's we had the guns and butter johnson vietnam war and i got a scaffold being in fact a gold standard in the fiction show injury system of bread and words and that pushes you to the inevitable illusionary world today which is boom bust and move to the point where the nation is this all the liability of the banking system and then effectively with a sort of position where if sat on the grenade and the initial stages the vessel that within which humanity has been able to see the court certain human rights and if that goes it's effectively and you have feudalism are so can leaders that now have so much control cad federalism central bank that now establish control and there's that much reliance on to fix this can they do anything at this point to keep the u.s. or any other country than europe from heading towards recession or depression as some are saying we're at it. well you know i mean it's an interesting interview. after ninety ninety three if you passed order to expand its public that
substantially as a try to get out of was there a bounce sheet depression because the banks are taking on so much that so the government was then given had had all the you had and you have flowed into the. japanese bond market which drove us to the japanese government they were able to try to keep the system up and are they going to similar situation of the banks are trying to take advantage of those low yield some of that money coming into the to the u.s. treasury to prop up the banking system through the federal government and i'm doing what i like to my view is there are some things that are not with favor of the current system today and i think that he occasionally there is gold price of gold gold is now in here it's you know i don't think it broke through today but gold was in a bear market still a bear market and i think once that a group is a secular bull market and gold is indications you have ridging of assumptions and systems so this isn't the leverage is as if you leverage is credit as it writes down liabilities and that's a good used to rise because people don't trust now the banking system but they don't trust the governments and it used to be that governments were
a backstop in their mike in the treasury and the money and the money in the in the interim in the sovereigns as a sequence of a they don't trust the government anymore and that's a real big change and a big problem i want to you know he has a really interesting point. there is it's a question of are we in a new era where politicians can't do anything leaders can't do anything where really you know there's nothing that can be done by the people that are in power and cary grant then he is the head of earth founded g.m.o. it's a you know large investment management firm manages one hundred six billion dollars or so and he said n n no my worst fear is about the potential loss of confidence in our leaders institutions and capitalism itself are being realized we have big dig in this hole for a long time i mean dimitri is there just really nothing that anybody can do that no political political leader can do that no president can do that no central bank can do are we enter a new era. and that's
a really good question there are some oscar economists who have respect for the free market who recognize all the problems of the money system has been really it has blown up and has really been responsible for the expansion of money supply since i think seventy one who believe that nothing could be done that has there has to be a system reset because it's just miserably fragmented and service when there are not really because you have some under show and others who try to advocate for certain keynesian solutions because they recognize look we don't like this system it's not a good system but we're so far down the rabbit hole i think government has to step in now that it's the only one that people trust beyond you know outside of gold let's say which there's nothing it's just inflation put the money to work build solar panels build a high speed rail and maybe the private sector to take advantage of or i try to look at those solutions and and try to think about them and see the work and i frankly very optimistic about it but the reality is if you were the government with what the government has offered so far to a venture capitalist firm you would have escorted you out of the office in handcuffs because the business model of a business plan that
a government provides is not a business plan governments don't know how to spend money and it couldn't have the doing so so i don't have a good politicians and policymakers and professional economists to get out of this crisis because if they understand it they wouldn't be in the position they were in they would be in the private sector doing something different they go that much that anybody can kill but i appreciate you for telling us what you think where you think i thought going that was me take affinities radio host and economics blogger . so if all of this is that you freak out about the direction of the economy you're not alone coming out next see how some americans are getting ready for anything stocking up on food and why it's catastrophe. for you.
you want to train lemons into lemonade but what about turning conflict into opportunity well we'll show you how some americans are better preparing themselves come hell or high water government financial collapse and if the segment that we've done earlier in this show make you worried that that's all coming well anastasio charkha has a story that made you want to take notes on. a typical house in a regular suburban town like here atlanta lee's preparing for the end of the world
. a german now there and p thirty eight from world war two a twelve gauge shotgun. forty caliber pistol and an a r fifteen weapons and ammunition r t if we're carrying this out on the street for some reason all hell broke out and you know and the world hates insulation you can walk around with guns here he's first cura certified and our instructor and all of two businesses stores food and supplies to help in survive no matter what disaster might hit breakdown a government is one thing a lot of people preparing for now were facing possible paid allays for social security. i don't believe want to need any of this kind of quit and for that you can have a lot of americans that are. thirty seven year olds among thousands of american preppers who would rather view ready than sorry archie spoke with the founder of the preppers network from inside his truck was the most political but more economic
crises people every day lose their jobs then and have to rely on those that they had stored in the radio or even just because they've lost their jobs gas masks a bullet proof vest can't fence and helmet will be immense like this one preppers survival bad is not a typical first aid kit it includes things like a parachute cord of body heat retaining space blanket a survival nice meal ready to eat and bad emergency drinking water according to proper is one must also be ready for a chemical catastrophe or a large scale terrorist attack contaminates weigh in on top of you you have called world gone. the if you will slip into a chemical proof if you thought it's not one hundred twenty one i don't want to follow in caps i waited to learn and now i'm one hundred percent when it not and is going to get through it you know every. lighty of walkie talkies are ready for use if the communication network shuts down you wait so welcome to the i w four video
when i was on the other end of the line father who is actually next to you use a police officer for twenty five years he's now retired means half time operating system radio. communications you can see if you like. tsunami and earthquake in japan a couple of months ago i mentioned radio played a big part in that and providing emergency communications with everything else failed and then a big hurricane and haiti a couple of years ago there's one scenario few years more than others if there was some kind of a nuclear fallout radio wave propagation but probably for all practical purposes cease around ten thousand dollars is the hefty price tag for the supplies but to preppers it's not just ten grand sitting in a basement. with uncertainty taking over the us they say those who seem paranoid today may end up being.