‘Magical Fairy Dust’ economics: Keiser slams UK govt for ‘bribing, enslaving’ citizens
Financial analyst and RT host Max Keiser has blasted the UK government’s housing policy, claiming those in power are showing contempt for the citizens and are engaging in ‘Magical Fairy Dust’ economics.
The ruling Conservative Party has come under increased scrutiny since Chancellor of the Exchequer George Osborne launched the ‘Help to buy: London’ scheme on February 1, 2016. The program sees taxpayers provide a low-interest loan for 40 percent of the deposit of a house for those who wish to buy in the super-expensive capital.
However, Keiser can’t fathom the logic behind the plan.
“You have a global economic phenomenon of negative interest rates,” he said. “You put money in the bank and they confiscate one percent or more per year, clearly indicating deflation. Why would you take money from the government to buy an asset that only works if there is inflation?
“Is the government just openly contemptuous of the population?” Keiser asked. “They are trying to enslave them with this debt and hoping this is the way to keep them from revolting and staging a coup. It makes no sense.”
Keiser warned that as well as tying homeowners down with this debt, the program will fuel a perilous property bubble.
“These people think all you need to do is sprinkle the magical fairy dust of printed money but the returns of printed money have gone negative.”
Meanwhile, the government’s starter home initiative - which could see up to 200,000 first-time buyers receive £141,000 each to help get on the property ladder - was also slammed by Keiser.
“This is just political bribing because the money to pay this subsidizing comes out of the savings accounts and the wages of those who have money in the banks,” he said.
“Zero percent interest rates is financial repression. Some £200 billion has been moved from pension funds into subsidies for housing in the last year.”