the way the soviet army pushed the enemy back a hundred kilometers from leningrad. to see it says the flood is explosive it's just a. nine hundred day siege that cost hundreds of thousands of civilian lives was a of. those people the tram became a symbolic time machine. during the journey they remembered the nine hundred days the committee broke them but made that friendship stronger.

russian pilots are being hailed as heroes after managing to crash land a crippled passenger jet at a remote airfield in northwestern russia saving everyone on board as the aircraft flew out a height of ten thousand meters the fuel pump navigation and communication systems were suddenly paralyzed the crew blinded the tupelo one fifty four to

a lower altitude and landed at a disused airstrip the plane eventually came to a halt in the woodland moving sea services no passengers to say to. anyone serious about solving global problems such as nuclear proliferation knew that without russia and the united states working together little would be achieved the u.s. secretary of state says russia is a vital partner when it comes to solving global problems speaking to the council on foreign relations in washington hillary clinton spoke about wanting to promote relations with russia and the rest of the world she stressed that only through partnership can issues like nuclear disarmament and global terrorism be resolved. britain's special envoy to afghanistan has stepped down from his position amid speculation he was forced out sir sure wanted cooper coles was an outspoken critic of the military policy in the country advocating opening dialogue with the taliban responsible for coordinating the strategy in the region he was well known for his

strong criticism of the u.s. led surge in afghanistan. is the world about to experience a double dip recession some insiders would seem to think so that debate is coming up next right here on our team on peter costello. if. he. and you can. follow and welcome to cross talk i'm peter lavelle when it comes to the global recession three letters say it all deb u l n u economic recovery in the developed world is sluggish at best and there are fears

of a double dip recession hundreds and hundreds of billions of dollars have been spent to stimulate economies why hasn't it worked. can you. discuss the state of the global economy i'm joined by martin henniker in hong kong he's an associate director at the tyke group in frankfurt we go to william endo economic researcher and the author of the new book gods of money wall street and the death of the american century and in boston we go to peter cohen he's the president of peter cowen and associates and author of capital rising how capital flows are changing business systems all over the world and another member of our cross talk team on the hunger martin if i can go to you first in hong kong you've got three letters w. l. and you pick one and why. none of them i'm very commies in the western countries have never been there have never been any assad's offer of calgary they've been

throwing trillions of dollars at the problem if you give me trillions of dollars i can produce a few more cars and rember my g.d.p. figure. to some extent of course but if it's just all financed by debt that it's going to hyperbolic out of control exponentially that doesn't mean anything at all the us isn't even in a recession it's more in a depression already now and the real question in our war really is is this depression going to lead to hyperinflation or is it going to lead to a different nation or a collapse of this is to me like you saw a nine hundred twenty nine in an hour we'll it's going to be either inflation because the governments in the west we have had many many warnings of there's even the chinese rating agencies who are basically supported by the government and i was saying the u.s. is insolvent and faces benghazi so we're not particularly optimistic on the west ok miners are going to stay with you real quick here is there any letter in the alphabet you would choose. do you the straight guy and it's straight it's a strange sound guy and as not been any bond sebag basically the big problem is the

best and is they have been d.m. best realizing that productive industry has gone to the east and gandhi's especially to china even long before they put us in a frenzy krises you could see it coming because it was i saw dangerous realisation and the house of cards a bit on bad what happened in two thousand and eight basically the rest and banking system went bankrupt and banks were are was from collapse they have admitted in germany and the u.k. and the us they have all admitted that there are us and then some guys that said that if you were days away from clouds in the u.k. they actually said they were hours before they wanted to close the case machines from the banking system so in order to prevent this banking system from collapsing what they did is governments bad all the banks in the process the governments then even higher in international beverage is now the problem to solve and one bubble is the biggest bob ever in history now if you say. here over and balance if i could jump in and william you've been on the program before and i have

a pretty good idea what you think about these things can you be more pessimistic than martin well i think i can be equally especially mystic i think a lot of that describes the situation in the united states certainly use the letter d m like the great depression in the thirty's there is no leeway in terms of federal debt the federal government has just maxed out on its on its credit card to china to japan and other countries. now they're in a situation where even the generals are warning against the overindebtedness of of the united states as a national security issue i want to finish and i want to get back to that issue a little bit later if i go to you peter are you going to be a little optimism here. absolutely i think they're both have very interesting theories that as a citizen of the united states i'm just not seeing it what i'm seeing is that we've had three quarters in a row of positive g.d.p.

growth where we're forecasting very slow economic growth of about one to one point four percent for the rest of the year in the bond market and the real problem here is that we've lost eight point four million jobs since december two thousand and seven and what we're not getting is enough new jobs heat about three hundred thousand jobs a month in order to revive the economy and my basic theme is that america has a great fundamental strength which is the ability to commercialize ideas intellectual property and we saw that really created lots of jobs in the sixty's seventy's eighty's and ninety's we had a las decade george w. bush and now we have an opportunity to revive that innovation engine and i didn't if i didn't play here i think i've gone grails days are gone in the united states everything's been outsourced mentioned at the beginning to asia and to other countries it's even that the jobs that are being created in the united states are

call center jobs because the wages in india have become too high for call centers i mean that gives you an idea and i don't think it is and i appreciate i understand what you're saying but i think i think really has a right here you go first and we're going to go to martin peter go ahead. ok what i see going on is that i talk to a lot of venture capitalists i'm a venture capitalist myself and i see them investing in start up companies now what i think is missing is a technology that will unleash corporate spending corporations in the u.s. have accumulated one point four trillion in cash that they're just sitting on because they haven't found a good place to invest it so what i'm looking at is trying to get a new technology on the order of the internet or many computers or or p.c.'s that will unleash you weigh. of investment by companies and that will create lots of jobs now that. you don't do. anywhere else i want martin to jump in here go ahead. martin let's follow up on what peter just said i mean why maybe he's right maybe

could be technology based but why would it happen in the united states where you just have the same investments and in healthy economies like the regrown we. need to do the same thing we do is there go ahead. yes exactly i mean most of the asian countries and some other emerging market countries are there far far lower debt they're still have lower cost and then a lot of that knowledge is moving also to china to even big big u.s. motivation of companies so it's really only a financial bubble a property bubble and then military that's left their base an intern ited states are just adding on whatever i wanted to jump in there early are really a mention in the job growth maybe cause and the jobs there actually for me as a matter of fact the fastest growing for exports right now of the united states sheep and if you're a new home and shellfish so what you can tell from this is that it's obvious i mean

on the on the positive side result without laughing actually evolved on the positive side is so and this is actually a statistic in the united states that that can help because they do have a lot of agricultural land we have seen agricultural prices take up and china is importing a lot more of their stuff in important gone from the united states but that's where you see the only sector actually that has some good prospects in the united states apart from that run really they're optimistic and again you know we see the other economies as much better but one other question just a follow up to two peter i just wonder if you go to boston university peter if i may ask you that. no i didn't i've taught there but i didn't go to boston university but i went to mit and mit is responsible for an awful lot of new jobs a lot of innovation you know the world wide web came from tim berners lee is a professor at mit so i mean i think that person what we are missing is so they have the owner of the undergraduate class at mit today is not u.s. born what percentage of the undergraduate i'm sorry gentlemen i don't know you know

i think he's just been here i mean the last week a group there was a big con fab of economists in italy and i think it's an annual event here and there was a lot of pessimism in many of them walked away from this comment saying one in one in three is one in three chance will be a double dip but some of the really bigger names were saying that they were more certain of that and that we keep hearing the same to the u.s. government and the european union they have they don't have any tools left in their box ok to fix these problems here there's no there are no more bullets left i think is what was being said if i could go to you martin what can they do i mean if they've tried everything fiscally monetary really i mean are we really that way in a way that we cannot dig our way out of this because it's an el ok we just have to learn to live with fewer things we have to learn to live poorer i would be very frank with you this kind of lifestyle that we've had in the twentieth century early twentieth century is over at least for the west. yes and i don't think even as

a home as i think we have we have just the worst is still ahead of us in the western countries because what i just mentioned earlier and two dozen a the battle of the banks and the bank of the government in the process saw in two thousand and ten you have the rico government's going bank which is actually in this case the sars and european countries and europe has mostly the same problems as the united states those going bank of them the stronger countries better the weaker countries now the next thing that's going to happen is a stronger countries go bankrupt and then you have some form of of one crash or currency or hyperinflation where once you have what hyperinflation then you can start a new is a new currency or you have some form of bankruptcy reorganization to gargle rid of this kind of debt to start anew about until and unless that happens really don't really invest in in those areas and one other thing critically why i asked peter before if you when told to the boston university actually. economics professor at the boston university richard actually hold in quite high regard his name is the

laurence kotlikoff and he has written. about the fiscal gap of the united states because that's much more important than the nation are dead today we're talking about because the fiscal gap actually includes all of those unfunded liabilities of social security medicare and so on that the united states have and that figure is fifteen times larger than the national debt it's two hundred two trillion a us dollar that's absolutely staggering figure so in some way there's going to be some kind of almost some debt before the has to happen and then he also publish your report saying is the united states bankrupt and that was even in the federal reserve bank of the new is a reviewer so definitely what i would recommend be to look this up this isn't too far from you in boston and he actually points the finger of what's the real problem you know you contrast the short term get a piece of this in them and if you lay that as are the unemployment figures you know i mean it's real unemployment is twenty two percent they change the way they did it in one thousand nine hundred four they don't collen anyone anymore was given up looking for a dog their schools. you know so there fisher was in that interview on one of the

drawing board before we leave it continue here we have to go to a short break and then we'll continue our discussion on the double dip stay with r.t. . can see . dramatic example of the firmness of. courage. and honor. they managed not only to stay alive. but to keep their faces and souls in human circumstances.

nine hundred days in besieged linen ran through the eyes of the survivors. wealthy british style. markets why not come to. find out what's really happening to the global economy with max concert for a no holds barred look at the global financial headlines tune in to kaiser report on our.

when the news is not enough. when it's something really crucial when you want to get down to brass tacks with special coverage. this time the latest news from the global policy forum live broadcasts special guests discussions on the stakes in providing security and stability of the present day world. question.

welcome back to crosstalk i'm here about to remind you we're talking about the possibility of a double dip recession. but before let's see what russians think about the global crisis what shape will the growth line take what's led oh will define the recession w. l. or he have to show some limited growth the world's major economies remain in danger of slipping back into another recession the agency recently asked russians what they think about their country's economic recovery twenty five percent of respondents said russia is emerging from the crisis period put it two percent believe recovery is on its way and another nineteen percent believe this it will at least not worsen however twenty four percent believe that prices will beep but the overall trend is optimistic and russians economic expectations are returning to

pre-crisis levels. peter i'd like to go to you in boston i mean as an investor you have a vested interest in all of this here what should what should the current administration do in the united states and what should the europeans be doing because i mean have they done it right i mean a lot of people are very very worried about money is there being people very skittish now about investing i mean it's extraordinary that banks became weighted so much money and profits when the rest of the economy is is really got going into the gutter what should the decision makers be doing now in europe in the united states. well i think what's needed right now is a bigger stimulus package i mean they passed an eight hundred billion dollars stimulus package last year they should have passed a one point two trillion dollars stimulus package just because of the enormity of the downturn that the administration inherited you know it's clearly on the order

of what happened during the great depression and the mistake they made back then was trying to balance the budget too soon we're already getting into this kind of talk now frankly the administration has not done a good enough job of of forcefully defending its position and it's trying to sort of square the circle too much politically and as a result it's going to lose a lot of ground in the midterm elections so right now you're not going to see a lot of changes in policy you're going to see some extensions of an r. and d. tax credit little tweaks here and there that can pass politically you're not going to see the kind of scale of intervention that i think you really need to boost the economy i think the basic idea is that you need to prime the pump of economic activity in the private sector and i think that's the idea of stimulus is that you get some economic activity going you get consumer spending that increases demand increases hiring and that kind of creates a virtuous cycle of growth ok all the really what we need and i was really just one

more thing to really any of. this asked a question for everybody here i mean can can any can we keep her going into debt to try to solve this crisis i mean how much more low we're going to go and yet i mean what is by two thousand and thirty what is it going to be one hundred twenty percent of g.d.p. william go ahead i mean i'm not i mean we're helping out here and all but can we bet we're going to bankrupt ourselves in the process go ahead we'll you know what this is not a question of theoretically the federal government the united states can go into and debt in this as long as the world is stupid enough to keep buying the government bonds but the those days are coming to a close i think fairly soon the problem is it's not a question of four hundred billion dollars plus or minus. the stimulus is just like water going down the bathtub it's look they stop a housing stimulus in april and in may the worst housing starts crash took place in decades and it's an economy being held together by artificial life support

because seven financial institutions in new york the gods of money as i call them in my new book. in wall street they have looted and leached the anything healthy left in the american economy over the last thirty years or a century since the gold dollar decoupling in seventy one and you have as a result of that. the chance was missed in two thousand and seven had had the government the and out in the united states and the treasury not been controlled by goldman sachs and wall street as it was or timothy geithner in the new york fed and now in the us treasury. if you would out a sensible intelligent government concerned about the nation's welfare they would have nationalized five to seven of those institutions immediately and done what sweden did in the early ninety's with a secure room good bank bad bank a model that was considered anathema it was called socialist by henry paulson the treasury secretary at the time and as a result trillions of dollars of taxpayer money went to bail out the wall street

friends of goldman sachs henry paulson and not only that the federal reserve ben bernanke he refuses to say what he has done what the federal reserve has done with its money creation it's over the top now. mark mentioned these statistics from from this boston professor about the unfunded liabilities of social security and medicare and so forth it's just. the banks have been looted the country sucked up to the bone and there is no impulse there is no internet this is going to fix this one the united states is a basket case economy europe is less so because. still germans still make the best cars and in the western world in the world buys those cars in the steel and other industry is still intact united states has outsourced everything including its brains to the rest of the world and lives as a service economy and it's buying ok martin i mean what do we do now i mean you and

william painted a very very depressing picture here is there any way out there is there a solution or just suck it up. i mean i totally agree this is a basically everything william said on the united states although i disagree a bit on europe because i think. germany can bail out the rest of your below and that sucked into the mind of europe and germany government debt even is now and the deficit dollars on dollars an all time record and germany has it's already it's all in. trouble to meet the obligations on the ordination of debt and then there are mind of europe basically the industry looks more or less the same as as it doesn't the united states and debt ratios are also close to what the united states is in the u.k. they say so and then in terms of how or how you're a pair the situation no we are not particularly optimistic and beyond really politicians ease i mean again i mentioned i mean what william actually said is you

should probably let a lot of those banks fail i mean many of the wall streets being they're on drily bangs out because senos they just put a visit money and if they if they get it wrong they get by the taxpayer if they get it right they just take it out as a bonus quickly enough so that when later on so are things done so are they there to get the taxpayer money again so that was the big problem but now really i don't really see an easy fix was a solution even from the federal reserve can print more money of a have more power it's not going to work because i learned greenspan even alan greenspan even recommended homeowners before the borrower came on to take all of these. mortgages the federal reserve made it much much worse so i'd best they're very incompetent or worse they're actually part of these banks that have sucked the u.s. dry if you ones are so we don't see a solution we just say investment wise stay out of the u.s. stay out of any u.s. bonds also say out of europe would your money go and are asia and some other commodities ok. i think what we

have to look at is a global picture. the magnet for industrial dynamism. an infrastructure investment in the world right now all the countries of your asia i've said that repeatedly on this show but it's a fact that you have not only china china can't do it alone you have russia which has huge infrastructure deficits from the from the soviet era and the financial crises that the i.m.f. and friends george soros and others helped along with in the ninety's and early part of this decade but russia still has considerable resources and they have huge resources of hydrocarbons that are in deficit in china you have the former the stands in between russia and china the shanghai cooperation countries plus you have the middle east oil rich middle east and africa so i think what's going on is

a dynamic there with turkey playing a much more interesting role in all of this dynamic there that the european economies are beginning european industries beginning to orient to and look away from the atlantic bridge of the last fifty five sixty years and that i think is the long term way out of this mess and it's not going to call from hoping for a recovery in the united states you know radically enough peter in boston you know and looking at the the numbers that have been coming out of the united states and again there are split opinions here i mean on which direction it's going to go but do you think you know you're the in your the american in america on this show is there the political will in the united states to really tighten belts realizing that the kind of lifestyle that the united states has had the last half century is simply has to change because you know every get a credit card demand every other week go out and spend and spend and spend i mean really i mean is that you see in the end i'm thinking of this tea party movement

and things like that because the realization that americans may have to start living their lives in a different way. no i don't think so i think what you have is america that is optimistic and is looking for leadership that will create new innovations i mean there's no other country in the world that is as good at creating new innovations as america i mean the sixty's we had mainframes and all the seventy's we had many computers in the eighty's we had p.c.'s in the ninety's we had the internet and now we are developing new technologies none of them have reached the scale of the internet yet but we're developing new technologies that will boost productivity for organizations around the world and that is going to create jobs all this other talk is finance is the tail what are you the obama administration. charge me bar and i want to give marginal last word here martin where you invest in am i going to hear my ear.