rosell, i'm often afraid because when you leave your house, you never know if you'll be back. the level of insecurity is only increasing. it can be terrifying, especially going from one place to another. i'm a victim myself because i was in capacious for work and on my way back to port of prince gangs robbed me at gunpoint, they stole my camera, mobile phone, and everything. since then i've been a lot more cautious. every day the situation gets worse, and more people leave the country. in desperation, it gets worse because every thing we need to live is getting more expensive. it gets worse because arms trafficking increases and the state has no control. it gets worse because politicians don't work in the interest of the people. despite all the dangers, i enjoy my work and i do it with love, with everything that's happening in this country, the youth need journalists like me to keep them informed.

ah, no, get em fully back to go with the headlines on al jazeera, finland's white wing opposition national coalition party leader, baterri or pool has claimed victory in a tight parliamentary election from the santa marian has conceded defeat. oper says he will work to fermi coalition. guffman, a russian military blogger who supported the invasion of ukraine, has been killed in a bomb attack and a cafe in st. petersburg. witnesses saved lad into task. he was presented with a satchel, which exploded. 25 people were injured in the glass. you are secretary of state antony blinking, his call for the immediate release of american journalists, evan garish cove. h during a call with the russian foreign minister say, love rav gush of h is a correspondent with wall street journal. he was detained by russian security agents on thursday. on allegations of sy, in ukraine,

6 civilians have been killed by russian shelling in our town or on a town in the east coast. yankovic just 20 kilometers west of back motors seemed fierce fighting in the last 8 months as russian forces try to capture the city. ukrainian officials say dozens of buildings, including 16 apartments were damaged by the explosions. israel's cabinet has approved the creation of a national guard to be overseen by the far right. security ministry to mob been given. he says it's critical to fight what he calls terrorism opposition has accused the government of funding, a private militia for ben givers, the u. s. is placing itself a moist stream, whether this week after at least 26 people were killed in the, in the past 2 days. a major storm system ripped through the midwest sense, southern u. s. fates on friday before moving ne, the illness emergency management agency is working alongside local officials to

assess storm impacts throughout the state. and at this time, i'm pleased to report that the remaining power outages are limited. there are about 4400 people who stole our with our power, but they will have it restored by the end of the day. and saudi arabia and other oil producers from the opec past alliance have announced production cars that come into effect in may. we are described move as a precautionary measure to establish that oil market. and those are the headlines on al jazeera coming up next. here, it's up front to stay with us. 25 years after the good friday agreement and did decades of violence in northern ireland, u. s. president j fight and needs to mount the anniversary with a visit to ireland. alton vera, examine the agreement to legacy from the impact on people's everyday lives to political power sharing and stormont mancow, brick cities, forging new realities. 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's headliner, janice verified with verifax . thank you so much for joining us on up front. it's my pleasure. but the abrupt collapse of the tech lending firm, silicon valley bank has had a knock on effect that was felt really around the world. switzerland's credit suisse bank had to be rescued by government intervention in germany's biggest lender, 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 wasn't titled let the banks burn. why do you think we should

do that? reason number one is because it is absolutely impossible to stabilize. a banking system which has been built, has been designed almost in order to be unstable. these mega banks and the smaller banks which live, but typically on other mega banks are constructed ah, on unsound foundations and no amount of tightening regulations. we saw the dodd frank act after 20082009 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

a decoupling of payment systems from our credit intermediation. what do we mean by that? up until this very moment, if you want to pay for a coffee at you near the 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 a c suite national bank with 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 insuring them because they will be sitting on the ledger over sensitive but, and then i'm 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 d stabilization 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, offer you a corporate if, if those savings are sitting on the ledger of the central bank, then they're absolutely safe. and then a private bank i 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. we put our payment system a payment system which is so essential to the preservation of the comic order of things. we have and trusted it 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 fav. absolutely. and that same article, you say that the banking crisis, this time around, is actually worse than 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 the 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 lehman brothers, bank of america, barclays road bank scope and so on. they discovered jaden gun. think amounts of fraud. remember the but at the body lending or the somebody 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. the reason that were falsely labeled as to replay, aided by credit aid in a there was a lot of fraud and a lot of quiz. i creamy,

got 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 after 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 the bank. the 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 mean 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 here is 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 that in 2008, 2009. the central banks and the governments of the g 7 called the native, their actions primary, their monetary policy. they printed up to $35.00 trillion american dollars and injected them into the financial system to be floated. they had not done that. the

929. that's why you had the great depression, which was far worse than the great recession of the 2008. however, at the very same time that 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 the pandemic. while we had that just for the banking system, the financial circuits we had coordinated or uncorrelated at least synchronized austerity in north atlantic. economists, we had the worst bout of us day, the hitting grease, but then that spread over to the rest of the universe own. do you think united

kingdom under, under george osborne and david coming on in the united states, even though you had a small fiscal stimulus, other obama, the state governments where indulging huge or steady to god's so all that, all the united states economy was subjected to net austerity. 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 pressures 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 god, 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 want to add about that because we think about the pandemic. you know, a lot of the economists who are 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 helped 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 at each 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 a widget patient 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 always speaking of the real reason why we had about of

inflation. why went from this inflation from dissertation 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 either going to gone markets, american sectors and you'd have in 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, furlough wages on 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. i 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 and profits profit skyrocket during that time. so it's not the wages we're pushing up. i mean, foot isn't letting you an example. i remember that we partially middle middle 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 crisis in 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 should. and 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 blot 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 that a, the price inflation and the rate of us, of them as inflated inflation under mr. bains. watch. blaming that work as is always the bus dying of those who 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 other thing, you mentioned the united king, but also if you could have been here, when you have something like, you know, 40 percent of electricity being generated by natural gas was price did spike because of the water in ukraine because of their 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 a while to 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 are producing electricity. is it was pure price gouging of consumers by the only got police the

control our energy markets. so what would we do if we're going to care about inflation? we should put on slap a huge winful tax on those companies. in some cases, windfall 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 records. so inflation was being utilized by very few only got ballistic funds relative to the plethora of small businesses that were suffering at the time of the energy cost crisis in order to maximize their economic grants from society. and then they have the best of the blame the workers and to demand wages or strains from nurses, from nurses. my goodness. here anything appeared of, you know,

i probably guys were nurses kept populations alive who, you know, top that enters to be 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 all $30.00 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 person mcclung, a very difficult time. he hardly scrapes up night. that's not to be scoffed. but, but let me make the 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 up 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 ever each saturday receiver in leaving embarrass in one of they fancy out on the small of the beautiful capital 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 they're, 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 go shading with 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 managed to push through that, then a whole list of other, again in inverted commas, reforms follows. so you have to understand the, 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 in the fidel isn't what has happened in the last 1620 years is a new form of cumbersome, has emerged within the internet within the cloud. that's why i call it cloud capital. if you look at the amazon algorithm, the algorithm behind facebook, the algorithm rooms 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 basis. one person misses me suggest basis. now that this 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 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, 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 other's profit not rent profiting 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. yanez verifax, thank you so much for joining us in front of pleasant always. but thank you. all right, everyone, that is our show upfront. we'll be back next week. the ah.

breaking down the headlines to exposing the powers attempting to silence reporting . what did you do? what did you investigate? why didn't you ask? the 2nd question, there are many germans that felt fencer, they do have a chilling effect on subsequent stories. the listening post doesn't cover the news . it covers the way the news is covered to suppress moderate. and in some cases, amplify the content you see on your timeline. the listening post on al jazeera, many of us living with the effects of ecological breakdown. so what would the stories, in which technology, the promise of salvation for the planet, billionaires big tech and an unwavering faith in innovation? ali re, investigates where the tech no optimism is helping or hindering the fight against

climate change. it's a distraction itself. illusion it is, hey, i just masking over it all hail the planet episode to on al jazeera, the drought in the horn of africa. 6 rainy seasons huttfield more than $100000.00 tamales of crossed into kenya since last year. i last saw aiden lack of village in somalia, when how 4 grand children died because you had no food to keep them in the last drop in 20 living. the surviving on goat skin and wild foods in this drought. we can't even get that. most of the people who are coming to this area are not registered as refugees yet, so they are struggling to survive. they have very little water and food. this is the longest, dry spell for decades. ah.