>> the american people are furious. businesses enraged the world economy is held hostage. for lawmakers in washington, it is career for the company. defaulting on 17 should -- $17 trillion debt. surveillance scandal,.com domain.

plus, the suspect in the murder that sparked riots here in moscow. tensions still searing in the capital at a rally held at the same day as a major holiday. it is 11: p.m. -- 11:00 p.m. u.s. senators are trying to pass together a fix to restore state functions and dodge an imminent default. they have less than two days to do so or risk starting a crisis that would plunge the world into chaos. we are told the public mood is turning sour. >> the self-inflicted shutdown is causing panic around the world as washington scrambles

to avoid default. the global economy is at risk as -- of being thrust back into a recession. millions will have to cut their losses either way, deal or no deal. businesses unable to work at full capacity, public-sector contracts, and unemployment, already on the rise due to the shutdown. possibly the most ironic thing about the government shutdown, now in its third week, is that it is not saving money but is costing america at least $106 million a day. the overall cost could be as much as $2.5 billion. the number is expected to grow. the political debate is hampering a rise in the debt ceiling but also leaving sick americans out in the cold. each week of the shutdown, hundreds of patients will not be accepted for treatment, including cancer trip -- patients. 75% of the staff is not working.

it is the patients in need of medical treatment that are suffering. veterans are outraged at the closing of public hearts and war monuments due to the shutdown. the government has run out of cash to pay 800,000 federal workers during the deadlock. thousands came out in d.c. and stormed barricades, calling for the government to stop using veterans as political pawns in the battle for the budget. another group of retired personnel are going to protest in washington dc, starting their rally at the war memorial. the department of veterans affairs are seeing the back log of disability claims grow, as -- along with the frustration and uncertainty of the military community. prominent faith leaders are set to pray and march for an end to the shutdown. they are expected to call attention to each

representative's stance, encouraging them to vote to end the standoff.+ we are seeing more and more protests and more and more people in different groups demanding the government do their job and get a budget passed. >> it is not all good. the deal being talked about now would not resolve the crisis but kick the can down the road, setting the scene for another budget next year. good evening. will it be a default or a last- minute salvation here? what do you think? class i would not call it a salvation. there will probably be a last- minute deal. i would like to see a default. if we will get a balance budget that forces the government to live on its income and stop borrowing. far too much borrowing by the american government. everyone in american society has too much debt. we need less debt. if we want less, the only way we will let them do it in

washington is do not raise the debt ceiling. >> many people agree with you. the implications would be horrendous. >> it would be wonderful. the idea the whole world is sustained by growing american debt, that there has to be more and more borrowing in order to make everyone prosperous, it does not work. unemployment rates are her terrific all over the western world. none of us feel comfortable economically. we are all worried about the future. the government is harming us. the idea that less government is somehow harmful, it is just the reverse. we have to more government, more spending, more debt, protect -- perpetually, and that will make us all wealthy. it helps the banks, the government, the military industrial complex, all the big companies associated with the government. it hurts regular people. we want an end to the debt. we want much less spending. i would like an and to the spending. that will unfortunately not come.

there is a slight chance we might see an end to the debt. >> come 48 hours, if there is no agreement, central banks make contingency plans around the world. could they protect against the worst of the fallout here if it does happen? >> the government does a huge amount of spending, the off budget, not part of the budget, so not affected by a lot of these restrictions. that goes on. why do they need to tax anybody or borrow the money? why doesn't ben bernanke just print it all? we are told this is wonderful for us. quantitative easing. why not quadruple quantitative easing just to handle everything that way? you cannot believe anything they say. it is the old british saying, never believe anything officially denied. we should not believe the republicans or democrats.

they only have themselves and the special interests. >> economic crisis raging in the eurozone, both had a lot to say on the matter. let's take a quick listen to obama. >> they are going through a financial crisis scaring the world and they are trying to take responsible actions, but the actions have not in quite as quick as they need to be the biggest headwind, that the american economy is facing right now, is uncertainty about europe. it is affecting global market. >> the shoe is on the other foot. he should be taking more of his own advice. >> it is always somebody else's fault. it is not his fault or the american government's fault, those guys in europe. the nation fundamentally at fault is the u.s. government. the biggest economy, the biggest debt, the biggest spending, the biggest military, all the wars it is waging, if they were

really worried about not having enough money, why not shutdown and a safe stop spying on everyone? why not bring the the troops home from afghanistan and iraq and pakistan, stop killing people. that would save a could really and problems and solve all the budget problem. that is my advice. >> a lot of people out there would say what you're saying makes perfect sense. thank you for your time. i appreciate it. so why is the world concerned about the u.s. shutdown and a possible default? america's huge debts are so huge, everyone holds some of it. the u.s. default. banks take losses. savers, investors. if the banks go, businesses fall and they cannot get the loans they need. after that, the world's economy takes a massive hit. the eurozone is there, america's just a trade partner.

even before any of that unfolds, america has already suffered major losses. >> one of the key problems american policymakers face is the ongoing fiscal dysfunction and periodic fiscal crises. we were down this road in 2011 when america was stripped of its aaa status. then we have the fiscal cliff at the end of 2012 where there was a real risk of america falling into economic recession. here we go again with the shutdown and debt ceiling crisis. these crises undermine confidence in u.s. economic policy and confidence in the u.s. dollar. if this continues, if the dysfunction continues, then over time, the more nervous investors will be, the more downside risks of the global financial

system, the more of a chance the u.s. economy falls into a recession, which inevitably will have a knock on effect elsewhere. international investors will look for a reform of the international military system and will be challenging the role of the dollar as the leading reserve currency. >> america's national securities -- security agency could see it stunted. germany's biggest telecom company uses data away. that side of the story tonight. >> inside one of the main offices of germany's largest telecommunications operations, they are coming up with a plan they hope will protect their customers information from prying eyes. deutsche telekom has announced they will only use german servants -- service for all communications inside germany

in the future. this is something they would like to roll out further across europe. for now, it will only be here in germany. information, e-mails, phone calls, text messages, will only travel on german servers. this comes out following the revelations of just how much germany was spied on as far as the nsa and british secret services. the leaks that edward snowden revealed to various media outlets. just how much germany was spied on, one leak revealed in the newsmagazine in june shows that there was half a billion e- mails, phone calls, and text messages intercepted in germany in the average month. the announcement has prompted other major operators to say they want to follow suit, vodafone among them. telefonica said they would try

to roll this out for customers. there are some skeptical of whether it would work to to the nature of modern communication. deutsche telekom are saying they are determined to protect their customers information from prying eyes of the spies. >> wikileaks partner website. he thinks rerouting data is not enough to ensure privacy. >> in germany, we have a situation that the trustworthiness of our foreign and interior intelligence service, watching their high level of cooperation with a national security agency, and with a british government medications headquarters, it does not make them trustworthy at all. if they can intercept this stuff, they might handed over in bargain to be americans. . that is not helpful. this means what is to be done is

to ensure on whatever level in whatever country that encryption for the end-user is becoming available, easy to use, and as a standard tool. you send postal letters in an ample open so you should with your e-mail. >> brazil with plans of launching e-mail services. i was -- it was explained earlier to me what exactly led to the initiative. >> it will be a new national service rendered by the federal processing data agency from brazil, not only to government but all citizens. it was interesting when the whole nsa scandal and the leaks we have in brazil, it was revealed our president was using the outlook, the software for reading e-mails. thatnot

thinking that kind of software could pose some risks for government workers and support for whole citizens as well. it will have a major push. >> on our website, reporting how the nsa gets their hands on friends list. along with other personal contact data. if you get a minute to check out our twitter feed. for the latest updates on this story we are covering. witter in this program, a 3-4 diplomacy. the polls was to mend its own -- it's relations. many of them are not willing to listen. just ahead.

>> iran's foreign minister put forward tensions on the nuclear program. the tensions came from the first day of geneva. made up of britain, china, france, the u.s., russia, plus germany. >> the iran posses leaders proposal is to take control over the program in an effort to prove it is not developing nuclear weapons. it was said the proposal is useful boosting trust, but is that it is the final result that will matter. this is iran posses first meeting. the u.s., britain, france, china, and russia. one of the first things he said is he hoped iran and the west would be able to reach an understanding over its nuclear program in the future, confirming it fully supports

the idea of a nuclear free middle east. ahead of the conference in indonesia, we heard from the iranian foreign minister, whose head he hopes they would be able to draw a roadmap. according to diplomats, they will be -- the meeting injured -- in geneva could be a test of the last. hampering seriously the negotiations. many are now raising the question, is israel more interested in reaching a constructive ending in the iranian nuclear dispute, or is it more interested in subverting national attention from itself. >> the number of comments before the conference put something of a damper on the hopes for a breakthrough. the prime minister said he thinks it would be a mistake to sanction when they are so close to achieving what they want to do in the goals. his thoughts were echoed by the top public and on the senate

foreign relations committee who says they should put tough conditions on iran before any easing of sanctions. a more up the note, the spokeswoman for eu foreign powers -- foreign policy said it is a sense of cautious optimism but now is the time for results. a professor told me negotiations are being made in good faith and could yet the derailed. >> the other side is very much ready for some sort of settlement in the nuclear portfolio. there are a good number of people that want the same thing. what we have to worried about is association with the israeli government inside and outside the u.s. government. people are working for the lobby in the united states and do not want to see a deal. they want to sanction iran. those are the people you have to worry about. iran leadership is very much speaking in the same

tone, in the same lines. they want the sanctions removed. they are willing to put everything on the table, effect the enrichment ability. >> next, suspected of last week posses killing of a 25-year-old russian, being detained. police found him outside of moscow and brought him here in a helicopter earlier. sources say the man already confessed his guilt and the stabbing led to massive interethnic cleanses. locals and suspected illegal migrants. security results are tightened in the capital. the unrest it not stop 100,000 muslims from celebrating it. >> it literally means the feast of the sacrifice. it commemorates abraham posses willingness to sacrifice his son to show his face to allah.

muslims kill sheep or goat and give the meat to the poor and share it among families and neighbors. many did not like this. moscow authorities have designated special locations, farms where muslims could practice the ritual of sacrifice. it is home to around 20 million muslims. a huge muslim community here. celebrations come days after the riots. hundreds of people took to the streets to express outrage over the killing of a young man, as well as to express attitude toward migrants who caused havoc. at a storage facility, police identified the suspect in the murder. a 31-year-old citizen. he allegedly stabbed to death in front of his govern. a camera captured his face.

the residents were outraged by the murder. along with residents, nationalistic groups, some of them radical, have also picked up on the tragedy and riots began. more than 20 people were injured and sent sunday night. at least eight of them are in law enforcement. ethnic cleanses our brewing in the city still. a group of young men attached a random café and broke the windows and the door. luckily, no one was injured. in a separate incident, we heard a group of men from central asia attack someone's car. many fear there will be a series of ethnically motivated crimes. it is not a move -- immune to hate crimes. you can imagine in the wake of riots, security has been very tight in moscow. i have seen it here in the mosque. the city employed 4000 people

to make sure the celebrations are peaceful and safe for the public. >> heightened security paid off in southern moscow, and almost 300 people were detained at a rally for disorderly behavior. witnesses reported they were abandoning cars and fireworks. we invite you to head to our website for a full timeline of what went on this weekend. you can check for dramatic images and footage. focusing on spain, the number of people living in extreme poverty there has doubled in five years according to a new report. around 3 million spaniards now have to survive on under 307 per month while the cost of living continues to climb. not one person employed has gone up.

1.8 million households. the spanish government is set to become the first in europe to tax something that has been free to everyone since the dawn of time. they want to tax sunlight. the druid wants to impose a levy on solar power to help pledged -- plug its energy debt. >> there is an argument in spain right now. the country is still mired in financial difficulty. the government has come up with an unusual proposal. calling for a tax on solar energy. >> a son, to the government, y echo >> some are enjoying an average of $3000 of sun each year. the nations is one of the leading providers of solar energy. producing so much, the production capacity now exceeds demand by 60%. the government has found itself in debt to the tune of 26

billion euros. to scale back the use of solar panels, the government decided to tax those who use them. in other words, taxing the very behavior they spent the last date trying to encourage. >> critics say this will damage progress toward meeting european year -- energy goals. it could set a dangerous precedent for other struggling countries like greece. aaron's energy regulator agrees and has called the proposed economically unviable and discriminatory. he invested his money in storing a solar panel in his home. >> with the new taxes, they are making it cheaper to buy the energy from big companies rather than use the power from your own solar power. >> it is those using solar energy that still require the

use of conventional energy grids. they say this tax will contribute to the cost of maintenance. solar lobbyists say the new tax will extend the time it takes for the solar panels to pay for themselves from eight to 25 years. as for the fine that could be levied if people do not pay up, that is being set at a mind- boggling 30 million euros. >> i already know people removing the solar panels. >> protesters say that is to scare people into submission. as to whether it is working, -- >> you will pay the taxi echo >> no. -- tax? >> no. >> you have the right to refuse to do with the government tells you. i will continue with solar and will not pay the tax. >> with such strong resistance, spain posses government might have a fight on its hands and

could be left wondering if the proposed tax is such a bright idea after all. >> in more news, sun sign tax. the only thing in spain -- police have failed to break this ticket of 100 workers. strikers got access to the factory in protest of laying off 2000 workers. the cubbies action was denounced. the regional government meant of is afghanistan -- a bomb in a microphone after giving a speech. at least 18 bystanders were wounded there, among them civilians and officials. the taliban and has recently escalated attacks ahead of next year posses nato pullout. rebel fighters have fired rockets into mask its in spite of a cease-fire plea.

government forces retaliated with air strikes on military strongholds. 11 attacks. earlier in the civil war that has been raging for 2.5 years, both sides attended to reserve holiday cease-fires. that is the news. as usual, for us now and again, tonight, a scheduled ethical break. we will be off the air until oh 600 tomorrow. join us as our programs continue as usual. after the break, max and stacy look at china posses push for economic the maritime station. tonight. -- good night. captioned by the national captioning institute --www.ncicap.org--



hello and welcome to nhk "newsline." it's wednesday october 16th. i'm catherine in tokyo. negotiates have iran presented what they call a proposal in talks aimed at achieving a break through through the nuclear program. they're meeting with delegates from six major