 But now I turn back to the proposition and Mr. Yanis Varoufakis who already referenced Yanis is a Greek economist and academic and a former member of the Hellenic Parliament who served as Greek Finance Minister from January to July 2015 before his resignation. He led negotiations with Troika during the Greek government debt crisis And there's also a regular commentator and analyst on news television. Yanis First we indebt ourselves Then we indebt the foreigners and lastly we indebt our children Remember that line by David Hume from his treatise on money He was completely right and as the former finance minister of a state and of a nation devastated by debt unsustainable debt. I think I have the Capacity to put this position forward The idea that parsimony is a virtue and Prophelegacy is a sin is one that I am prepared to embrace enthusiastically the problem with austerity is that it is Absolutely unrelated to the notion of parsimony. It is intellectually weak if not a totally bankrupt idea macroeconomically dangerous and morally highly problematic What is austerity? Let's begin by defining it so that we have the same kind of understanding what we're talking about austerity is the idea that during the bad times you cut government Budget deficits you create surpluses in order to contain the growth of your debt to GDP ratio That is what austerity is about that has never worked in the history of capitalism And it will never work in the history of capitalism and the way there isn't why just Osmond stopped doing it Was because it was not working and the reason why he was not catastrophic was because he understood that his own policy of austerity Was one that deserved To be confined to the dustbin of history where it deserves to be Allow me to say that there are two basic misconceptions about austerity the first one is that it is the natural response to an orgy of government spending on The social welfare state in this country forget Greece for a moment. Well, just forget Greece But in this country there was an orgy of government spending but it happened 2008 in support of the city of London and To provide asset insurance for those who already have everything If you look at the actual result of this spending spree Politically it was essential for a conservative government to press the Lib Dems to accepting a Faustian bargain whereby after this orgy of spending there will be cutbacks on those who had nothing to do with the causes of the crisis on the Unsuspecting victims of it and what was the result? the government reduced the structural deficit of The United Kingdom spending let's say by about 6% and what happened to debt to GDP it increased by 19% and This is not a British exceptionalism kind of scenario. This is what happens everywhere in Every country in Europe Where austerity was practiced the debt to GDP ratio ballooned. It does doesn't work Let me just give you just a simple arithmetic example. It's not rocket science Take a nation whose debt to GDP ratio is 80% 80% which is more or less what was here and then imagine that the state's Budget is about 40% of GDP again more or less the number that applies pertains to United Kingdom Yeah, and imagine that we have an Enthusiastic Australian government that reduces government spending by a half It goes from 40% of GDP to a 20% of GDP what will happen is immediately Just because the belt tightening metaphor is really irrelevant in the case of the state I believe in belt tightening. I do try to lose weight and tighten my belt, but The reason why belt tightening works for a corner store for Marks and expenses for a household is because of this splendid independence between Income and expenditure if tonight you do not go to the pub to drink a pint of beer you have saved that money and Your income has not been reduced as a result This splendid independence of your income from your expenditure which allows you to tighten your belt But the nation's total expenditure is the nation's total income So when the government cuts spending by 20% of GDP GDP is cut by 20% so your debt to be ready to do GDP ratio goes from full fifth 80% 200% immediately just because you have practiced austerity the question is Why is austerity if it is such a dumb idea and some such a dangerous idea which it is Why is it so popular? The reason has to do with the fact that the liberal bourgeois tradition is Holy and totally in an existentialist crisis at least for the last hundred years or 200 years Let me put it this way the liberal democratic state is Insurance asset insurance for the rich and the rich are skimping on the premier The rich want a powerful state to preserve their property and the assets But they are worried that the state that has a capacity and the power to be to preserve their property rights It's also a state that can confiscate them and at the same time they don't want to pay for it and the result is debt and Well, I'm in the luck my last 50 seconds. They are protected Are they not so let me wrap it up Austerity is a bad idea or Joe's Osborne knows that he was not just discredited Because of his silly position and he scared one getting on the brexit of an end He was discredited because every time he set a target for a surplus He missed it the public sector borrowing requirement increased every time it increase He cut back the next year the public sector borrowing requirement increased again. So what we need to do It's very simple We need an investment bank a public investment bank at an arms length from government Which is supported through quantitative easing by the Bank of England in order to fund directly on Banking principles without political interference All the shovel ready projects that are absolutely essential and ready. Thank you. Thank you so much, Janice up fine speech