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tv   NEWS LIVE - 30  Al Jazeera  January 2, 2019 10:00am-10:33am +03

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friends borrowed from prominent family first government bonds were traded paying interest. those prominence creditor families founded the first italian banks that started lending a lot of money to european monitors who were caught up in endless wars. most often the bankers were worried by the warlike rulers an easy way of getting rid of debt one that would be used for centuries. at the time governments had power over creditors only much later would that balance of power be reversed. after the second world war in one nine hundred forty five america's marshall plan granted thirteen billion u.s.
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dollars in aid to europe's industrialized countries exceptional growth followed and the thirty years after the war were good. so good that they were known as the economic miracle in germany and the glorious thirty and france business was brisk industry was in full swing and the growth of consumption was spectacular. so he quit the polytunnel news unit on the his basically put it to school august i'm suited for a few more limo be doable to slug subi and cause so much machinery if we were to die off or figured on by your phenomenon or goes to show it would be financial in bungay else you did resign i wanted barry was a guy was phenomenal causes all of their on down the b.b.
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it was an image will be a few more that iraq good will be vivid. in croissants. by the end of the post-war boom in the early one nine hundred seventy s. government debt in europe was a great called lows thanks to growth and inflation but the economic machine would soon be upset by two major events. good evening on august fifteenth one thousand nine hundred seventy one richard nixon the president of the united states his coffers had been emptied of a gold reserves by the vietnam war announced a staggering measure that would drastically change the world economy. and the dollar against the speculators. i read that secretary calmly to suspend temporarily the combat ability of the dollar into gold or other reserve assets except in amounts and conditions determined to be in the interest of monetarist ability and
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in the best interest of the united states. but it was not a temporary measure at all the u.s. president definitively kept the fixed relationship between the dollar and gold. the donor became a floating currency like every other currency a around the world. all the currencies of the world that were either tied to the u.s. dollar of the british pound by nine hundred seventy one we're now pure fee at currencies they're not backed by anything they're just backed by the confidence that people have in those currencies. abandonment of the gold standard cleared the way for significant currency market speculation. the free circulation of capital on international markets intensified it was the beginning of a period of great financial instability. but.
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yet. two years later in one nine hundred seventy three another major event ahead the first oil crisis. in one year the price of crude oil soared going from two to six dollars about my. normal necessity to be going to meet. the dude who could be carter or to dinner some towns i could use was on this subject don't include the obsession of the felt a minute ago to miter and saying that democracy would sit up of boredom and no one knows them and that their knowledge will not suddenly produce be colored boozer. comedy block no a pretty easy exact amount to ensure but it was. a sudden increase in the price of oil weighed heavily on the world economy. it put the brakes on growth.
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production costs went up prices went up. inflation is skyrocketing. high inflation has a major drawback it impoverishes savers and investors since their money depreciates . for government inflation became a new enemy to be defeated at all cost. after removal would have wrestled a brief federal sat at all those are the five always elitists know yeah follow easy lay plus will this no see you from valley going to me community to really get out there see going to the on the side out you cause i said i used to are classic kids don't call me a serial if what i was eagleman known gone by gar on credit during a debate you feel silly it put you to such an icon by the convo above that
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you the idea to dish while much other fast your much of the money for today are see . politike that do all the kills you simply did before a welcome knowledge on global use it is on top on early because if there are so many to knowledge clearance you get one or is it an economy to the finish on a cyclical season was when to go to make it up it will moan that it is always under an economy with a monitor fault this is additional lies or try to put in france show us good luck about that to develop these two good i did continue pretty good continue on will say that. nobody but. i don't not only see yelling for what you. please you. have no order to sort out and i do for you that it be weeks on a back to the hard basket will be the kimosabe on the day.
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if you didn't know but starting in the one nine hundred eighty s. the industrialized countries began to borrow heavily on the international market after which their public debt would never stop increasing. margaret thatcher became prime minister in the u.k. and ronald reagan president in the united states it was the advent of neo liberalism and economic doctrine that also spread throughout europe. governments everywhere were lowering taxes privatizing public assets these would be the years of easy money. stock markets expanded wall street in new york the city in london. on both sides of the atlantic governments deregulated bank credit unchecked capital flows moved through markets worldwide.
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by deregulating and liberalizing those governments became dependent on financial markets which by then were an inescapable part of the economic system. the debt machine was taking shape nearly everyone went into debt governments businesses and individuals. the economic system had turned into a machine for creating debt. and the banks got rich on the interest paid by borrowers. credits became the primary fuel for growth but how does created work. banks possess only a small amount of the money they lend money is created by private banks on a simple request for credit and a promise of repayment. the sum is raised as soon as the loan is repaid that is a huge thing and it's. how we've always created money from the beginning and it's
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a wonderful thing if you have a banking system that can create credit like that is a very good thing. because it means you can create finance in a crisis you can bail out a id you could finance climate change you could you can finance a war and that's how we've always done this the public hasn't understood that the public thinks that money comes from me working hard if you know that for as you know day in the soil working hard and at the end of the month i earn some money. a lot wrong the bali bomb of it so the it that a million people or so the renewable. become left on his deal is going to bury the view of an awful. void that would be empty bleak rollie i believe it lives that i'm a lawyer or for me to do it because there are no border little laws rocky did the new york city lit up usually lectures on with there the order of
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a new orleans. clear about it wanted to say about the piece also don't go on please also don't know the all is a new source on this persona for example is that all done in detail and it's only going to make a lovely pop he's going to to put to the put it document utility economy ministers on if you know he's going to tell the economy the central banks produce five percent of the credit in the world the private banks produce or create art of the net ninety five percent of the credit in the world and they have no virtually no regulation over that now what kay's argued in the one nine hundred thirty s. was. we must manage this process it can create vast bubbles of debt it can go out of control. the nine hundred twenty nine wall street crash in the united states prompted the british economist john maynard keynes to warn politicians the credit
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machine needs to be controlled to benefit all of society not just speculators. when we managed the financial system which we nine hundred forty five nine hundred seventy one there was not a single financial crisis anywhere in the world and then in one nine hundred seventy one the bank has lobbied and they said no no no we don't need controls you know the market will discipline us we will blah blah blah and we began to lift all these regulations and crises began one after the other first at the periphery and then in a coup. one thousand nine hundred nine saw the birth of the euro and the european central bank had been created to ensure its stability.
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at the time global growth was strong the level of public debt was starting to decline europe was breathing easy. confident financial markets lent generously to governments and the weakest economies spain greece italy portugal suddenly had access to loans a very low interest rates close to those available to germany. that low cost financial windfall was an economic boost all was well fall out.
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meanwhile in the united states america's housing bubble was expanding and in two thousand and seven the subprime crisis struck thousands of homeowners lost their homes they had taken out loans with interest rates that rose sharply and they found themselves unable to make their mortgage payments many banks were in danger. on september fifteenth two thousand and eight lehman brothers one of the largest u.s. investment banks collapsed elected in one was. a phenomena speculative surfin must begin to misunderstand the. present so that your couscous a posse of honestly didn't mongols or so gleefully to the prison p.d.p. you don't see. them continue to look good if a few more on city lead it good give it a presumption the currency get on play. good hockey live for it could have done it
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. because it is good with poppy it is surprise to us that in a while the reason. they don't is all they want to have in the coming every other time is develop. ok about the russian the sequel is commercial good shot at cup so i did a fade to disagree go on this is what is on it would suggest that you are in amongst us. after the fall of lehman brothers european banks with close links to american banks risked bankruptcy in turn. governments only just managed to save them in order to avoid the collapse of the whole system. not on and off a separate issue one that are keeping no bond to god just to prove the devil look it is actually take you on to the proof if. proof dog proof was three hundred
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proof or food near proven food in a prison for god you prefer going to prison on a system hostile if this was just. in spain and in ireland after the advent of the euro and thanks to loans from german french and british private banks developers invested heavily in real estate . and a big don't need to back order to the good media define the interest by new market is a or both back to on your longer. than yours morgan old labors why not speak you live on our own nuffin did you blair in gabby douglas cause you shift to new york on one dot. com you loudly grandma you guardedly booklet victimized and ordered
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a book. about who are. it in sybil letty ski said cadre back they bet your salad bar. the movie steve if lisita. also called it a sector of. the mind how did. i get. to play . if you also can face a costly. p.v. if we don't need you what do you can often. do there is in a very short time to be a trusting. you really want to know what's going on. very quickly we know looking at some nations prison. or national everybody will learn something
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watching our coverage. showing that we can be the best international news and most trusted source of stories that people actually can't find elsewhere and that's going to continue. to often on the streets of india. are victims but a new force is at play. female police officers are combative sexual assault and domestic abuse. but changing society is a challenge. and so is life behind the backs for india's. i know. that you. know some of it i like.
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the look of the arrival of refugees is debated in european parliament's. but the journey itself is little understood. to syrians document the route that is claimed so many lives searching for sanctuary to people in power on al-jazeera. hello i'm a song with the top stories on al-jazeera brazil's new far right president both in our own has been sworn in during a ceremony in the capital brasilia in his first speech as president he promised to free brazil of corruption and crime and improve the economy. corruption privileges advantages have to and political favors for straightening
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that needs to be left in the past we want the whole nation to benefit everything that we do henceforth as an undeniable persis that is to put first and foremost the interests of brazilians u.s. border agents have fired tear gas to stop people crossing the mexican border at tio wanna women and children were among those trying to breach the border fence the border agency says it was responding to rocks being thrown at them. the u.s. president says he's ready to negotiate an end to the partial government shutdown which has been in place for nearly two weeks donald trump has invited congressional leaders from both parties to the white house on wednesday he's been refusing to sign off on a spending deal unless it included funding for his border wall. twenty two opposition parties in sudan have called for parliament to be dissolved and president omar al bashir to step down following weeks of protests over the cost of
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living the policy say a transitional government should be set up to pave the way for elections. internet services in the democratic republic of congo are expected to remain cut off until election results are announced on sunday an advisor to president joseph kabila says access was shut down to stop people from sing about the outcome of the vote several candidates had claimed to be in the lead in the election to choose could be the successor. a group of british politicians and international lawyers has asked to visit detained activists in saudi arabia to investigate allegations they're being tortured and denied legal representation amnesty international says at least ten people were detained in may including some who campaigned for the right to drive the rights group says seven men are also being held in connection with the human rights work. new horizons spacecraft has undertaken a successful fly by of iraq six and a half billion kilometers from the rock is said to be the oldest cosmic body ever
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explored by humankind those are the headlines i'll be back with more news here after death machine. two thousand and eight financial crisis threaten to completely disrupt the global financial system governments made the choice to bail out big banks and to rescue troubled economies. see. the pascoe seat and say from. a model economy. extraordinaire excelled in. defeat. if you all see the proof would a pretty an opportunity do you. have a good talks are about. a last good sign up of
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a. bet lead. back as you know excelled in their past abuse again first. to the media. she'd be a. little. ask you call it assess the p.c. sequels see see see that it will be real label q.q. pretty. close if you pretty see if you can pull in a new will function and will. oppose you could make. if governments had to bail out the banks it was because they could not be allowed to fail since those banks are us they are the accounts of millions of citizens we are caught
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in the debt machine. the economic crisis and the government bailouts of the banks led to a spectacular increase in public debt. the dec machine spiraled out of control. the first country to declare bankruptcy was greece in november two thousand and nine the newly elected prime minister george papandreou revealed the real figures that had been hidden by the previous governments greek public debt had reached one hundred twenty nine percent of g.d.p. well above the sixty percent threshold set by the master cittie. he asked for help from year. now you do from
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a good to see most obvious addendum as in every scene in there will be easy to miss and his most editors well you know. that announcement was like a bolt of lightning striking. the german chancellor weighed in on the question didn't. went down did they all three did suck on. the line. of those i work on so i learned to get in line for a long long view of songs and for tots not the common theme is not with the mothers of the movie is a lot of them are on their list even. him and him of you don't he. was commonly used as a model. in one thousand nine hundred two the master treaty set out the terms for e.u.
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integration it forbade the european central bank from dating out indebted countries would european governments respect these terms would they guarantee greece's debt should part of it be restructured or cancelled or should they help greece pay its creditors the heads of state could not reach an agreement as europe hesitated and markets speculated on the greek debt of confidence collapse the fear was that if greece restructured its debt. might the markets pullback from spain from italy from la belle frosts and might not europe bring upon itself the catastrophe that it so wished to avoid and therefore the argument was it is far better to give greece all the money it needs to repay its indebtedness than to run the risk that the market would perceive a sovereign restructuring in europe. as infectious as
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contagious. only after six long months of crisis europe finally decide its bite resistance from germany to lend greece enough to pay its creditors. a smaller one of it has broke a new dog today on duty like i said a baton logged as one zero zero zero overpass and cement in his eye fell on i could problem in europe i would eclipse drop it off because it you know put it in the by you comment unless it be your bell on this you did this looking as you know we don't listen i don't know it would dislocate if not it is that last year it appeared hope or beg your point for kwame you know number one our own data to all basket who want their books to do or dip in it immediately.
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said brought it out i get it off it does go say so they did that or bia keep the soups they do at a kiosk the p.v. booth. as you say if you ask about it not one euro of debt has been written down in these years what has changed is the identity of the creditor so money was owed to bondholders in two thousand and ten it's now on to the i.m.f. in the e.u. . if you can solve the debt crisis simply by changing the identity of the creditor and then this one is solved. being in debt isn't only about owing money it's also about being in the wrong is the financial data but also a psychological debt that weighs just as heavily on the inhabitants of the indebted country. debt and. kind of double jeopardy.
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or did you it just sick of it so to decrease your. oh not days to finish joe bus. says if one day i want to keep ability economy. just because i happen to live in greece somehow i'm a sinner i'm a bad person because of some political acts done by political representatives of one kind or another. therefore it's ok for people to have their lives destroyed it's ok for people to have to pick through garbage and not have anything to eat it's ok for cancer patients to be denied medicine if we're ever going to have morality in the world we need to absolutely reject that logic if there's individuals responsible hold them responsible but don't hold a college to very responsible for the deeds of.
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to resolve the greek debt crisis the e.u. granted financial assistance in exchange it imposed a draconian austerity program the country was placed under stewardship and lost part of its sovereignty it was placed under surveillance by the troika the three delegates of the european commission the european central bank and the international monetary fund. other over indebted countries in the euro zone will be controlled by the troika in turn and subjected to similar was thirty eight hundred ninety. which. was.
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the sound of those protests reached all the way to brussels the troika had become a thorn so much so that the european parliament held a special session about the troika's actions national and european m.p.'s questioned european leaders he says they cannot be many i've seen maybe years. to program others will be violent there's the lover but i love that other stuff we give a shit that i asked them oh yeah it could it because i'm sure there's other obviously decrease. yet if you asked again i got this theory said the bestseller throwing yeah yeah i've got the stars though the troika is the lover there matey the more credit you know me more p.c. care for. yet the message. valid only mazzy we have by here pundits who stop probably my two heroes here to promote the cause then i want to make go. parliament in portuguese in parliament in spanish in
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parliament in evolution parliament even it's not so and above i don't want to go for money and demagoguery surely you do about your own guns the need. of the program a d.v.r. . and all of the guns under fire go. up that's a decent program and courts. valan. that's a lobed i am absolutely confident sure that if greek did not implement the program the situation will be much worse today i am convinced that you have used this experience to try to put on sense no we cease to sense what. it means look stuff up prisons it has yes quite a limited susan place names that have been used to deficits over the years the. contrails. it was
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a lot but if area nor. north i want to go mia. you open it up to predict which arrived. back. to you is a disappointment the austerity programs were poorly implemented and poorly explained people came to resent you would start to look like an uncompassionate taskmaster all over the continent there was increasing support for nationalist parties anti finance and euro skeptic parties were gaining ground in melbourne as you have been very clear on and their asking for i'll be very happy. if they are gone after you are going liberate europe from the monster of brussels nuno and comment we should.
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we can see reaction to the liberalisation of fright finance just as we saw it in the one nine hundred twenty s. and it's going to be ugly it will ready is ugly it's ugly in greece it's ugly in france it's ugly you know in many parts of the world where people are saying if my government went look after my interests if my government will not arrange for my young people to have employment then i will look for a strong man who will do that for me who will give me security and give my children employment security and i don't care what sort of strong manatees if he's a fascist i don't care if he promises to secure the stability of my life and my people i will vote for him i think that's where we are heading and i don't think.

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