thiis bbc "newsnight." funding for thisreseation is madeossible by the freeman fountion of new york, sto, rmont, and honolulu. newman's owfountion. e jo d. and catherine t macarthur fodati. and ion nk. >> unionank s put its fincial strength to workor a wide range of compaes,rom

sml bunesses to mor corpatio. whatan wdo for you? >> a nowbbc "newsnight >>he price of gd hita n high. vests remn unsy about economic stabili. is thia sign of trouble to me? economists debate what lies ahead. >> growth is patchy. investors aretarting to think youneed toiversify your portfolio. there are worrie about ination. >> the britishhettg is less than a week away who republicanseem be a dyg breed? miael crick tries to find them. >> the deathaskf oliver cromwell. why a we brith soeen on thmonarchy? >> we will a rublins and

ll this region royalists' about theealt of the british narchy. we will ask rublins and alis about the health of e british morchy >> allhat itters i gold if you look at commoditi thi week. precious metal soad to about $1,5 an ounce. there could be a go bube. goldas ren i value as instorlook rising ilation and thdebtrisis in the u.s. is the rus to gd a sign of ecomic ws ahead? heres o ecomics editor. ♪ it is supposed tbeathe meure of glal itability. ifo, t golprice is trying toell usometng. t what? one thing is for sur in a wldraumatized by financia fiddles, a least israel.

>> it is rare. we kno what the existing stok abovgrou is. it is 55,000 ts. it is indtrucble. the pricing makes it the opposite of that. >> or the past five year gold has ris sectalarly. took off again with lehman brothers and t instability sinhas n stopped it. in eastondo thetree are not paved wh it. but there are lot of goldsmith's. they specializen degns for e asn cmuni. at seet level, ev sin the go fro lee -goldrenzy. >> some of eir sings are going to bing gold blion. there is a trend like at. >> whatind of people by tt? >> pple like yourself. >> ordinary peoe.

ty are buying ioutily everfew nths. as a way of ving >> they have incrsed t weightf the gold. its great. yo get the feelingfuxur >> theisin price has changed the way he hasone siness. he has movp market with a new designer. there is no doubt that economics e behind the price re. >> confidence in the u. economy igoindown. is the asset of last resort. with all t unrt in the middle east, is the only asset that people feel comfoable with. as today, th krugerrand wi one else of gold i worth $100. the i a reanrdiny pele buy gold like this it is e sa reaso investors buit. its annsuranceolicy ains inflation, banks collapsingand litical instility.

ere is a lot of all that around. >> to talk abo thetate of thglobal economy, i spok t throfeor, a british potician, and a former economic advisero prident sh. profesr, a youoncerned the rush to gold is an iication of continuing problems in the u. economy in particular? >>t isorries about the global economy. the rld is looking volatil growth is patchy. investors are diversifying. there are clearlyorri we wl see inflation. fisc tightengeans that ntral banks have to kp theireetn the monetary trigger. it ia hedge. doesean the world ecomy isooki vulnerable. >> do y tnk i is dication that there are fea

about the u.s. enomy does it have to with the deficit? >> thats rig. it is not onlyhe pce of gold risi, but also thpricof oil copper,nd oer minerals. l of these solid assets are going in price. the vae of the dollar is ing down. why i the value o the dollar going down? beuse of quantitate easg, the large amount of liquidity, and because ben bernae i tryingo smulate the u.s. economy becaus the fiscal ituation is so poor. he bget situation is spoor the doar i ling value. >>shis as ch about confence? e u. has growth. it isot sn by people in a way that ey c trust it.

>>the big wor is that ntra banks ve t keep etimulus goin that is what rescued us from this suati. we have this dilemma. on one hand, revues are n comingn. we have t keep motary policy gog. growths unstable. it is low in many cntri. this is a gre fincial isis it has not been fixed. its continuing. thmiste the wld h me was to tink it is over. it iot over at all. theanksre not lending. >> it is not or. ifou look at the rush gold,he dicit is not bei cut st eugh. >> the increase therice shows t amot of uncertainty the economynd aund the worl e thi we need to do to ducencertainty is get arip on the fisl sittion we need to make se wean live thi our meansf th country. we canee from the outers in

europend portugal what hpens if you dnot ve aritical plan for the situation e risky thing to do would be not get a gri in the u.k., we ha reduced the ri by having aredie plan. in america, i was tre over e last couplof eks. all paies wgree andhey are starng t shat ey needo ac >> what is thergumt tn, professor? >> i do not aee withnytng mr. ncoc said. e edence i that thisill contractns a not expansiory. that ishat 've seen for ery count in europe doing it. irand, greece,ortul, the u.k., the have all gone into negativerowtin 2010. larry summe said over the

weekend, the idea of havg a coractn whicheneres expaion is moronic. there iso evidence aroun the world that these expansions have generated growth they hav comprisedrowth. mrhanck is wrong. ats why central bankers he to keepnterest rates down. t cris in the banking system has becoma csis in veren debt a nations. weeed to show we can deal th that. it is ryell to say we mu keeppendg to keep growing, but idoesot work. it is the risk yo take when you try it at half. it ia cattropc default or close to default. that has been seen in so euro areas. >> we have had uertaty befe such as in 2008. e price of gold was not as hi then. the doars deriorating beuse of the debt.

bo parti of republicans and democrats agree need to reduce th budget deficit. they'reot closen ho to do it. oba attacked the leading republan, paulyan,or his an. th wouldut $rilln. esident obama does not have a plan to make cuts. the two ptiesre very far apart. th is why standard and po's s wned the united stas out possibly downgradi our triple a status. >> does obam have therong pl at e moment? >> let's g wittheifference. t.k., the government h cut too quick andoo deey. in the united states, there i an ongoing discussioetween e potical pares aut wt theyillo in two years. there iso sense they are doing

. >> wt has to ppen imnenty? >> treste confidence, republicans and demoats hav to agree on udge that comes this next fiscalyear what comes eminently is a vote on raising e american debt ilin to do that, republicans say that they wt seous cuts. democrats say no, thedo n want cs. we will bet anmpassen two thr weeks over the bt ceiling ireas >> thank you allery much, indeed. eminrueen's gift was a of o of the most ancie ritus dating ba to the ign of henry the fourth. it also serves as a kd of warmup act forhat wl ben affirmatno the watchin world that the.k., the monarchys still firmly in place. britnas history of radicalism and many leading cotri are rubli, why is

ituch new to the affair? re iur political editor, michael creick. ♪ >> it st. mary's urch by the ridge. just after t first engsh civil war itas the sit of the famous party debates -- putney date. in the 10's, it was pked th agitad ofcers and civians. early democrats wanted to try the king for treason andbolish e monchy. thinjust teed of years of e debates, they have pary gone with the wanted. there w the execution of charles the first and the abolitio of the laws.

over theext tee a a 50 ars,he monarchy would tumbl all arouneure. -- over the next 350 years, the markey would tumble l aund your. it was anspid by the englis revolution of the 1h century. why hasepubcanism in ts couny never really caught on ain? this week, it is smal gatherg osome of tod's repuican ey a planning their o streetarty for the royal wedding. its an antroyast event. a lot of peoe would ask wt it matters, what hm dohe royal fami do? >> ia democra, were to be equal citizens piticly. it i alsa maer of politics and power. there is all the power and the vested interest in thehron

it is not necessaly accountabl and ds no have constutional limits on it it is n transparent. >♪ >>n th bursts of royal pageantry every few years, weddings, funals,nd jubies, a republican vois tendo be drownedut by the amor of monarchm. besi the roots ofext week's floodingit ithe banqueting hoe. outside, there ia sml memoal tcharles the first was executed he. insi, thsplendorf ruben's commissioned b the stewas to glorify the english monarchy. >> it shows t stuart king

ing cwned by angels presenting james' lievin the divine rights of kings and absolute monary. he said that kin are god's representatives on earth. he saidven by godimse, theyre called ds. inritish politics, republicanism ipretty much defined- coined to the ft of center. even then, lab politicians ll avoid the issue. >> therere tee rsons why labor politicianso not say muchbout the march many of them a marchists. except the utility they le thsentimentality. -- they cepttility. they like the sentimentaty. some labor politicianso no think is worth while making a fuss abo. if a good. id that you will have 200,0 houses built or olish the

monarchytherwould say the would not d >> the formeconsvative mp was once britishepublican on e rig, a rare bred. longer. >>y mont of apotheosis when my republicanism lapse was when i debated on theame side agait the monarchy in a huge tent in the rain. roy made a wonrful speech. heeft in the green rolls roe. it g stuck in thmud. all othe crowds have to ph it. we got spltered in mud. i thought ife diot have a narchy, we would have to have a esident. it would be himr soone like that. i thought i would just stick with the qen. >> even in parts of the kingdom where republan feeling is stng le scotland and wales, the monarchytill has majority support.

thtore sls itsule kes torinccharles. -- royal takes to prince charles. do you thi it is time for the monarc to be abolished? would you like a piece ofhe royal cak? >> it ishe gernment weant to get r of. [lauter] off with their heads. >> yoold memabilia is not as popular as itnce was uld y keep it oabolish it? >i wod get rid of it. they do not earn their te. they get bn with it. i would do away wh it i thi youave to work for i and not be bo into it. >> in t musm of london, there is the death sk o oliver cromwell even asepubc, he behaveds

if the king. s. sceeded by his son, richard. the heas sceeded by hion, chard. after the restoration, in the glorious revution. the kings and queens were nstrained by rliant and e ru of law. the gi's familyr parliamentaria durg the vil r. amil were parliamentarians durinthe civil wa >>t is such a magic concept. its the only concep the makes e government and hanity possle. >> in ts day and age, is it itist, outdated, prileged? yeswhat is wrong with at? thleague means the bes it doe not mn prilege. elite meanshe bt.

it does notean ivileged. i do not think i will see a republic. ihinwill happen onday. its an extraordiry anachronis we only hav to watch the wedding to realize it. most british people want celebrity. i do not think the british monarchy can svive by just beg cebrities. i think in the d, hwill go, bu not for theext 25 years. >> britishepubcans will have to wait r loer than that if polls show howhe wd is bling. fewer than one in fi people would abolish the british monarchy. th has been a conant fightingor yrs with little signs thaopinn might tur the other wa thahas been a constant results for years wi little signs tt opinion might tn the other y. >>eas a co-auor of "the

ki's speech." joan smith, y maye ling the argunt. >> what is interting i that people sayepubcanism is o the bk fo. more people are joing republics. ips have doubled sinc last vemb. -- memrshihas doubled since la of lumber. i think theres a completely false impressn. o reons. theedia is full of the roy weddinghat most of us just tuckn the bn. the other i political failure until policians get behind it, there wl not ba dete. >> no politiciawoul eose

anti-monarchy view because he would not get eleed. >> yes, but that shs t power the popular pss. y policia in the leading party who said they waed t have a debate about a monarchy would be accused of being a traitor and aacki the queen. ere is a big downsid it tak courage too it >> you believe the heditary prinple iso be admed in 21 cenry britain. y, i do. i tnkt gives us stability and continuy. i think its exting. youave a head of state abe politics who has been trained from birth. unlike anye el inubli life, we know exactly whe they me fm. w'venown the queen said she was a little gir we have kno prie wiiam sie sh was a little boy. that is notrue any potici.

the queen is totally o of itain. she is the one pson you can ally trust i on the side of britain. >> it is not te the royal family is not litil. when you go to parties and waing r them to come in, peoplere vy nervous aound these pele. they are not friendly they are n relxed. th depend oprotocol. >> tre i a residualolital role the narc is integrad io the litil structure of the untry. cant get away from that. in tms of efftively playing a part in politics, n anyre. --n tes of actively play a part in pitic not amore. >> wknow the lineage and the constancy. that is a hugeefection -- there is a huge affecon f the queen ats undeniable. if t queen was a dply uneasaerso would you wa it to coinue >> monarchists do suced eac

other by bih. that also have to make a deal witharliament. ey make a deal withhe naon. theare unsatisfactory, it is possible to removthem look the duke ofindsor. off wt. there arethers as well. ey a notabsotely there. >> young peopleo nowant ritania. the is an interest ong ung pele. doou thinkhe monarch will last unt prce william would ke over? >> ihink so. the is the monchy as an initutn and one as an extension of shobusiss. the showusins side ctinues havan appeal. that isntegrated with celebrities. the political se, thes difficultyn cnginthe whole cotitutional system. >> there have to bsome sort revolution. >> if you look a cotriethat

ofonerom republics to narces in the last 100 years, almt alof themave be either aft onef the world wars or dramatic eves. it has soughhapped in aceme. >> you will always say tt about politic chae. -- it has n happened i peacetime. whwould have thought the mubarak werbegun by the end of jaary. wh the chaesome, people wonder why they clung to the outdated ideas live in the 2t cenry decracy. believe in the ide of equaty, achievement,nd a meritocry. we p all our eggs in one baske we choose on fily d say ey wl represent us. i thin this i whe countri with an eleed hd of state are better off. you ha someone who represent the countr' values. oba bng elected in the unitedtate certain expressests aspirations. liven cotry where no

ack person haseen head of ste or a jewish person. that is obsved. >> peopl running the country are politicians. they get ected and p out. they sometimes get put out amatically. i ink it was very good. there was tim when margare thatcher wen boreohn jor. we knew the queen was waiting to al wh whoever tned up as theew leader. shwil always deal with the elected prime mister and give them great suprt. she has huge benefits inhis way. the first pre mister winston churchil w born in the 1800's. you sawhe cnges in the market came whehe was tust into the position. it was a ver hushush. now erything is much more

open there is les of a mystue t it all will the lack of mystique mean that interest will wither ay? >> there sti the constitutional function and syolicunction that will continue. look a sweden. is a very pgreive and mode country. itas dominatedy t socl demoaticarty. in their pgramthey have the abolition of the monarchy. there w talk about alishg the narc. they didedo compromisin the 1970's. they removedvery polical role from the maet. e monarchy remnsith cor and mbolm. but you do n have the sort of offensive volmentn the litil process. >> you a still choosing one family almost rando wean shift fagain.

>>hings to evolve. thgs a very different n than a theeginning of th queen's ign. >>hat is a for this week from all of us. gobye. ♪ >> funding forhis presention is made ssib by thereeman undaon of new york, stowe vermont, a honulu. nean's own foundation. the john d. and there. macahur undation. anunion bank. uni bank h put its financia strgth to work for a

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