actual horizontal because the president wants a 60 percent of the new capital area to be green. but some are skeptical groups like green peace have criticized to the project unborn. and you kindly look into how you must think about more than double up in just a korea de la will destroy more of the natural and normal. all the conservation is to raise concerns about the clearing of hundreds of hector as if mangrove forest, for infrastructure to service the new capital and the impact on some endemic species. but back at the, around the 10th century, algeria anto says he can also see the positives. it's like opportunity law in the hands of the government as well to showing to us that government also care not only moving to it's probably my band, but also seen this is that you goodness of the government let the conservation could be then as important as the development of our country. the challenge for the government is to prove that can reverse some of the environmental damage of the

past and not create further destruction along the way. jessica washington out to 0 east cali mountain. ah. as is out zera, these are our top stories. at least 26 people have been killed off severe storms and tornadoes had 8 states in the u. s. on friday, little rock, the capsule of arkansas states has been particularly badly affected with more than 2000 homes. and businesses damaged tens of thousands of people are protested for 13th week against the is really prime ministers plan to little overhaul lease and television fired water cannon to disperse crowds, brock in the main highways and wellness near. he says he won't bow to international pressure to abandon his plans after putting them on paws. many see the planned reforms as a threat to democracy in the country. is reading forces have shot dead, a palestinian man, north of hebron and the occupied westbank. they say soldiers opened fire off to the

man robbed his car into his ready troops at the entrance to the town of bate law. 3 soldiers were injured. 2 of them seriously. earlier a palestinian man was shot dead by israeli security forces near the alex. i'm most compound accused the 26 year old of grabbing an office, his gun witnesses they, he was trying to stop them harassing a woman on her way to the compound. local media. say he was a doctor. the syrian defense ministry says that 5 military personnel have been injured in the tack by israel on sunday and comes a day off to members of a wrong revolutionary guards were killed in damascus as well. has intensified strike phone theory and the last year to disrupt what it says are ronnie, an arm supplies to militias. ukraine has denounced rushes, takeover of the rotating presidency of the un security council for a month. ross's president vladimir putin is wanted for war crimes by the international criminal court. ukraine has called it about april 1st joke and

a slap in the face for the instructional community. and the senior clergyman, with the ukranian orthodox church, has been placed under house arrest for 2 months or to be accused of condoning russia invasion. metropolitan pavel have called the charges politically driven in the head of the most revered monastery in the country. as resistant government attempts to evict him and other monks from the site. those are your headlines. i'll be back with more news here on out 0. that's after upfront. the journey from childhood into young adulthood is speckled with tribulation. for youngsters like rima autism is another challenge to add to the mix, gong to with a loving family and a caring friend. she bravely lives, love, and chases, had drugs as she finds her place in the world. oh,

see me as i am a witness documentary on how to sierra are we in the midst of a new banking crisis? the collapse of the silicon valley bank in early march threatened to destabilize major banks in switzerland and in germany triggering fears of a wider downturn. like the one that led to the great recession of 2007, 2008. while at this point, the crisis seems to have been somewhat contained. is this a sign of a broader structural problem? in what lessons if any, have been learned since the great recession. alas, the world renowned economist and former greek finance minister, this week headliner yanez fairfax is our package. thank you so much for joining us on up front. it's my pleasure. the abrupt collapse of the tech lending firm, silicon valley bank has had a knock on effect that was felt really around the world. a switzerland's credit suisse bank had to be rescued by government intervention in germany's biggest

linder, deutsche bank appeared to be teetering on the edge. last week. people are saying that we're in the middle of a banking crisis. you wrote a piece last week. it was entitled let the banks burn. what do you think we should do that? reason number one is because some, it is absolutely impossible to stabilize a banking system which has been built. it's been designed almost in order to be unstable. these mega banks and the smaller banks which live but a specifically on other mega banks are constructed ah, on unsound foundations and no amount of tightening regulations. we saw the dodd frank act after 2008009 can actually stabilize them. now, once upon a time, 10 years ago, 5 years ago, even we didn't have an alternative,

but to try to stabilize the banking system. today, however, we have new digital technologies which allow at the coupling of payment systems from our credit intermediation. what do i mean by that? up until this very moment. if you want to pay for a coffee at your near to starbucks or whichever outlet you like using a plastic card or debit card. you need to have an account in which you put your savings in or your payroll, your pay packet into a private bank. well, that is no longer the case. we can have a digital wallet that is provided by our central bank, which in any case is monitoring all our payments. and the is called upon to save the private banks when they did that and fall like in switzerland,

with the c suite national bank, the central bank saving credit suisse. now, why can't we have a digital wallet with the fed? if you're an american resident or with this who sweets national bank, if you're a swiss resident or with a european central bank, if you live in the us, where your savings are completely safe. it's just the utility money. when you pay for your coffee, you know, if you dollars or euros or whatever, go from the ro on the legit of the central bank that correspond to you to the over the corresponds to the coffee shop. savings can be absolutely safe. no question of even ensuring them because they would be sitting on the ledger over the central and then ask you a question about that though, because you know, bank serve other functions as well. in addition to holding cash from, from lending to various forms of investment. is it possible to resolve this destabilization problem purely by relocating our funds into the sort of centralized

spaces that you're talking about? yes, absolutely. because if, if you're savings in the savings of a corporation of a startup, ah, offer a cooperative. if those savings are sitting on the ledger of the central bank, then they're obsolete safe, and then a private bank can come in and offer you or me or our audience intermediation services. they can offer us a higher interest rate than that of the over night rate of the central bank, if not to get our savings and to lend them to someone else. and that is a private sector, the initiative that should then be ruled by the rules of the market. and if that company goes under, because they have taken silly risks, they have not done the homework properly,

then you can let them fall without their being systemic problem. there isn't why we are all of us. i watching what's happening to the s b b bank in california. i would greatly sweet with baited back is because of this conflation where food our payment system, a payment system which is so essential to the preservation of the comic order of things we have entrusted in the same hands as the price of the private bankers who take risks and who then hold society to ransom because they are too big to fail. absolutely. and it same article, you say that the banking crisis, this time around, is actually worst in the one from 2007, 2008. but now that one was considered by many the worst economic crisis since the great depression of 1929. it wiped trillions of dollars off of the global economy

and it resulted in millions of loss jobs. oh, why do you say this one is worse? you're absolutely right, 20082009 was a gigantic crisis. that is comparable to $929.00. i'm like today, but when it comes to actual banks failing, it is, i think, absolutely right to say that this time we should be more worried about banks because in 2007 because in a 2009, when the regulators and authorities looked into the books of the banks that were failing back then the brothers bank of america, barclays bank scope and so on. they discovered jaden gun. think amounts of fraud. remember the but at that the, the lending or the some by mortgage is that where given to people who could never repay them. and that was done knowingly. that's what i mean by predatory

lending. that the reason. but is that where falsely labeled as to replay, aided by credit aid in a, there was a lot of fraud and a lot of quiz i criminal criminal behavior. also very relation mechanism was very weakened by the clinton administration. today, when we look up the account books all fun, you know, the silicon valley bank or even current space, we find much higher capitalization next to no fraud, some silly decisions regarding the risk taking, but nothing exemplifying the shenanigans that that were the cause of the house of cards falling one of the other in 2007, 2008. that should make us worth it. because the rules were more or less respected by the bank for the fate failing today. look at both a bank, though a bank is far better behaved today than it was in 2007,

2008. that is leading to the conclusion that these domino effect, which is causing our central banks to lose sleep. and to come in with the heavy weaponry of bailouts, this crisis should make us more waived, because this is much more for systemic crisis. and less the result of serial fraud . you wrote about as the bees, bankruptcy and fears around rising inflation. and you said something that was very interesting to me. you said international capitalism has never been able to get back on its feet after 2008. can you explain what you mean by that and what role exactly inflation is playing in this crisis. the major difference between 1929, which you mention, i think hopefully before and 2008 was up in 2008, 2009. the central banks and the governments of the g 7 called the native,

their actions primarily their monetary policy. they printed up to $35000000.00 american dollars and injected them into the financial system to re floated. they had not done that in 1929. that's why he had the great depression, which was far worse than the great recession of the 2008. however, at the very same time of the g 7 were coordinating their monetary policy which floated finance. they were not coordinating when it came to investment policy and to fiscal policy. and while we had a lot of jess lavished upon the banker's $35000.00 being given to them after 2009 between 200920212022. the height of dependent while we had that love just for the banking system, the financial circuits, we had coordinated or coordinated at least synchronized austerity in north atlantic

. economists. we had the worst bout of a story to hit in greece, but then that spread over to the rest of the universe own. do you think united kingdom under, under george osborne and david come on in the united states? even though you had a small fiscal stimulus? either obama, the state governments where indulging huge or steady to god's so all that, all the united states economy was subjected to net stated. now, when you have a steady in the economy of the united kingdom of the opinion of the united states, that the presses are going to get demand that the presses investment at the time when you had gigantic injections of money. what then happens is in sped off industrialists, investors looking up the falling price of money and saying, oh this is great. money is becoming cheap. i'm going to invest more in productive

capacity. the do the opposite. say oh my go for the fed to be pushing into the space. the 0 for the european central bank to be pushing is that i said some minus 0.7 percent things i'm bleak. never going to invest. so they take the money that is provided by central banks and instead of investing in production of capacity in green energy, in good quality jobs, what they did was they took it to the stock of change and they bought their own shares back, which boosted the share price is boosted financial markets, boosted their bonuses, but did nothing to boost supply and investment. that was the situation between 2009 and the height of the been damage during the day make. that's the 1st time when some of the monitor, the power of central banks is being used in order to boost the incomes of little people out there. i wonder about that because we think about the pandemic. you know, a lot of the economists who were saying, really, with regard to the,

this inflation question that it was the relief packages that were generated and produced out of the pandemic. as well as support from governments that help lead to this skyrocketing cost of living. that we're witnessing right now, they talk about the so called great resignation in the subsequent rise and wage inflation i brought on by post lockdown labor shortfall. now in march of 2022, you are not paid for the guardian where you argue that wage inflation should be welcomed, not treated like public enemy number one, but wage inflation really is being treated as the biggest threat versus for example, acid price inflation. can you explain why that the case rich people don't do not like to see wages going up like that simple. it's very simple and they don't want to see that as plays going up when they had taken on so much that which inflation was never the problem. i think that look from a scale of 0 to 100 wage inflation accounts for 5 percent of the problem with

inflation. we have it's minuscule, it's negligible, it's on what, speaking of the real reason why we had about of inflation. why went from this inflation from deviation to inflation in 2021, 2022. and then is the long term decline in supply? in aggregate supply credibility as a funded investment lead? i'm ever going to con markets, american sectors and you to pan sectors to reduce their capacity to produce stuff. and then during the lockdown, you have gigantic this option of supply chains. suddenly, you know the ships stop saying that laurie's stopped driving. ah, the train stopped moving, so you had either time when somebody will had a little bit of money. furlow wages in san you had 90 percent of supply

disappearing. that's what caused prices to start increasing. once it started increasing, after 15 years of negative inflation, then it was a free for all of suppliers used the short term, ah, supply chain disruption as an opportunity to do something that had not managed with forth in 13 years. that is to increase their prices. prices started skyrocketing and if you compare the rate of increase in prices with that 8th of increase in wages and that a, the thinkers in profits profit skyrocket during that time. so it's not the wages we're pushing up. i mean, foot isn't live in example. i remember that department movement though, because that that's fascinating what you're saying, and yet we're getting a very different pushback in the u. k, which is experiencing its worst cost of living prices and decades. andrew barely the governor of the bank of england asked workers to place their wage demands under

quote, quite clear restraint and wearing that same sort of language here in the united states. meanwhile, the media is full of experts who are talking about how the only way to curb inflation is by doing what cutting jobs. so, it seems like no matter what, even based on your analysis workers are, are, are bearing the brunt even when they shouldn't. i want to ask you to give me a solution to this. how do we change that? i think the bailey statement was actually shameful. he had lost the plot in the blood bank of england. he had a lot to answer for, and he blamed the workers whose patronized look at the bait isis and they've been minuscule compared to the aid of price inflation and the rate of asset them as inflating inflation on mr. bayes watch, blaming that work as is always the bus dying of those wages are paid for by the ones who actually increase their profit margins during a period of inflation when wages as almost things. and so back to your question,

which i think is the button and one, what should have been done instead? well, a number of things. first look at energy prices. when you have in the out, the thing you mentioned the united king, but also if you going to be in here when you have something like, you know, 40 percent of electricity being generated by natural gas. because price did spike because of the water in ukraine because of the disruption, the supply chain since on. but even kilowatt hours that were produced at 0 marginal cost go up by the same amount. as kilowatt hours are produced by natural gas. when you know there is a racket going on there, the energy companies are raking it in, taking advantage of vantage attractions, pushing up the rate of inflation because when energy goes up, much higher than it should do. let me put it this way. 2 thirds of the increase in

the energy price was not due to the increase in the inputs of producing electricity . it goes to your price gouging of consumers by the only gospel is the control or energy markets. so what would we do if we care about inflation? we should put on slap a huge winful tax on those companies. in some cases, winful taxes where applied to energy companies, but follow the money. what did they do with this money? they didn't give it to consumers. they didn't, they not to keep energy prices down. they actually subsidized energy providers who shareholders were the same ones as the energy producers. and this is a complete the records. so inflation was being utilized by very few only got ballistic firms relative to the plethora of small businesses that were suffering at the time of the energy cost crisis in order to maximize their economy

grants from society. and then they have the best of the blame the workers and to demand wage restraints from nurses, from nurses. my goodness. here anything appeared of, you know, i probably the guys who were nurses kept populations alive who, you know, top end of it. this seems to be part of a larger trend where every time there's a crisis, governments intervene, and ultimately it is the public that ends up paying the price more often than not through austerity measures. a recent example, this is in france, where the government is forcing through a pension reform that include raising the age of retirement. however, there has been a strong social reaction in france with protest taking place around the country that have now been going on for weeks. your party has supported these protests, but in your view, what can they achieve? while they've given president micron a very difficult time. he hardly sleeps at night. that's not to be scoffed. but,

but let me make that point. the crucial point, i think because many commentators say how long hang on, what's a big di she pushed up the age of retirement from 60 to 64. well, that's not such a radical change. well, maybe it doesn't sound very radical until you come across a startling statistic. demographics the district. did you know that a poor french worker made french work leaves on average 10 years? fewer than average salary receiver in leaving embarrass in one of they fancy out on the small of the beautiful capital of france . then he is difference. so essentially, when you are pushing up the pension age limit from 60 to 64, for a very large proportion of poor workers,

that means that they want to receive attention for measure very much of their post work life. you see, these are still the measures which are essentially kind of class war against the poor. the come as a very long list. i remember when i was negotiating with the international monetary fund with your central bank, with your opinion, and they were imposing, i started the measures upon my people have in greece. that list begun with some signature policy like pension reform. they call it. and then once they manage to push through that, then a whole list of other, again, in biochemistry forms follows. so you have to understand that what the majority of the french mumbling recognize, realize, is that it is the thin edge of the wedge. if you, if they love this, see me only nor cues increase in the age limit, go through, then a whole host of other policies are going to be implemented that will continue to

redistribute income from those who are struggling to those who are very affluent. i want to close on a broader point you made in one of your recent talks. you said that paradoxically, capital is doing so well that it is killing off capitalism. and that this is due to a new form of capital. that is triumphing and undermining capitalism. can you explain what you mean by that? well, thank you for this because my new book is coming out in september in london. it's called tech and the fidel is what has happened in the last 1620 years is a new form of camp with them has emerged within the internet within the clouds. that's why i call it cloud capital. if you look at the amazon algorithm, the algorithm behind facebook, the algorithm games that are running e commerce, they are doing 2 things at once. they are replacing markets because the moment you

move to you visit amazon dot com, you've exit at the capital market and you have moved into around that belongs entirely to an algorithm that belongs to one versus one person. this is mister jeff basis. now that this is kind of capital, but it is more than just a machine. it is a replacement of the market. it is kind of produced means of modifying our behavior because it tells us what we want to hear. sometimes what we don't want to hear, and we're convinced by that, i don't know about you, but amazon gives me very good advice and i usually follow it because whenever i follow that, i ended up buying something that wasn't bad. you know, a book that i wanted to read or netflix gives you a suggestion, but in the end, you know, you like. so you have a behavior modification machine which is also a replacement for the market, which is also a kind of capital that for the 1st time in capital history,

you and i are replenishing, reproducing for no pay every time you post every view and almost every time you upload a video on tick tock. you are, i think, to the capital base of a conglomerate without being a worker. but remember, capitalism has to be. phyllis, capitalism has to be. this one is markets and the others profit not rent, profit at the benet or profit. both is bill as a big demolished. as i said, i'm as a dot. com is not a market. it's a market replacement. in a market, you have consumers, you know, even i can walk around wherever you might be in london, atkins, and we can go to markets. we can look around, we see the same things if you and i, and that amazon dot com and play and put in the search engine the same keywords, you will get different things for me. the algorithm is going to divert to that the completely different suppliers that the algorithm determines. and the algorithm

gets a cup of 3055 percent from them. so basis is not making a profit. he's making a rent, which is equivalent to what the few, the lord used to make under feudalism. so the market has been replaced by an algorithmic variant of the land, which is owned by a few the king gold jeff bases. this is just an example of court, and profit has been replaced by an agent that's not covered, not capitalist anymore. so this is a nightmare for any liberal, for anyone who used to celebrate tempered them isn't as a place that generates competition, of ideas, of products and of methods of production. yan is our focus. thank you so much for joining us. no front, it's pleasure. always. i thank you. all right, everyone that is our show up front will be back next week. ah

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