and not here the people in okinawa think that the strategic value of these bases has diminished for the u.s. . but with china growing stronger as a geo political force in the region and the instability of north korea still a concern it is likely that the united states won't be leaving okinawa anytime soon sean thomas r.t. okinawa japan. coming up a recap of our main story to stay with us. all .

live in a country that don't understand that there's more violence in the streets of this country than there are in the streets in afghanistan or baghdad. one man in this british imperialism a breach of. the bottom is easy the bar for. crowd gathers i'm a real man fish down the street but the beast but. the

. man in the ship would be so much brighter if you knew more about someone from first impressions. please for instance on t.v. dot com. live from the russian capital this is our breaking news this hour at least sixteen people have been killed in a car bombing. the old north caucasus region around one hundred others were injured in the in the republic of north of security has been stepped up in the fear of.

spoke to the award winning british historian and economist robert skidelsky and talk all about the economic crisis and why austerity measures will only make things worse and he tells us why russia and europe should also form a military alliance that's not right here on alt. lord skidelsky a member of the british house of lords award winning historian and corniest and an expert on russia is here with us today thank you very much for joining us group or skidelsky your wrists and book canes the return of the must step out philosopher and economist john maynard keynes received several awards how relevant the economists feel today i would say they were very relevant in three respects first of all he explained how we got into this mess this crisis in two thousand and eight

two thousand and nine secondly he tells us what we ought to do about it how to get out of it and thirdly he tells us how to avoid how we can minimize our chances of getting into another one and i think no other economist does that he was the greatest economist of the last century in one of the articles you said that europe was declining economically and politically why is this happening and what are the signs of the crisis well of course europe's been a very badly hit by the recession and it's got very high unemployment but beyond that i think europe is in decline it's it's weaker than it was it's population is it is not expanding and. others are it's been affected by the rise of asia and particularly the rise of china so if you think back to one hundred years ago europe was the center of the world now of course it's not and

it's much much weaker than it was and partly it has no unity there's a european union but there's no european government and till they get european government they're not going to play or be able to play a major part in the world the world of. the collapse of the greek economy has impacted the whole of the european union. does this mean that the e.u. is vulnerable as a groupie well of course it is because it was based on the idea that everyone is progresses at the same rate well if there are some weaknesses. in some parts of it it affects the whole lot because it means that the exchange rate is weaken and it also means that some countries like germany have to bail out other countries so if anything goes wrong in one part of the union it's the responsibility of other countries and they didn't think they were going to have to assume those

responsibilities so i think the greek the greek crisis has impacted the whole of the union immediately immediately it. created a crisis of confidence in the europe germany and france want there to be consequences for the countries which ran up excessive deficits like greece is this a necessary step well of course i think people have to countries have to be have to live within their means so to speak and not spending extravagantly but when they talk about consequences for greece they also have to consider the consequences for greece and other weak countries will have consequences for them i mean if if if they cut down on government spending in the mediterranean countries that will mean less demand for german exports and so it will impact them it's not just consequences for the for the weak countries it's consequences for everyone so i

think they have to be very very careful in wanting greece to pay the price of its extravagance because in paying that price the germans will also have to pay a price they're the strongest country in the your opinion and from such as well and what are the countries which could be potentially some. it to these matches greece italy spain ireland. england. portugal they're all they've all adopted what's called fiscal consolidation policies they've all said that they're going to spend the next over the next four or five years to balance their budgets there and i think that's going to have a very bad effect because i think it's going to slow down the growth recovery will slow down the recovery it might even lead to a double double dip recession as it's called so you actually go down again so they're very dangerous times for the world economy over the next six months the german finance minister suggests introducing

a european want to treat font is this necessary is this a necessary edition to the current system i think it would help yes i think that's the one good suggestion that's actually emerged from the crisis i think most of this suggestions have been terrible but this is a good one. because it mobilizes some resources that can be brought to help we countries in an emergency it's rather like the euro it's a regional version of the i.m.f. you know the i.m.f. countries can borrow from the i.m.f. on conditions but of course it depends whether they can mobilize the required resources on a permanent basis they have done it on a temporary basis so far on a permanent basis and what conditions they attach to lending the money if the conditions are too hard then i think they can actually make matters worse but it is a good it is a good step towards

a government of europe you believe that expenditure reduction is the key danger of the current economic situation why is that and if so what can it result well i think expenditure reduction is a huge danger because it's cutting down spending the government in a recession the government is really kompany. sating for a decline in private spending overall the spending in the economy is less than it was and then private sector spending less government has to spend more that's the only way of keeping economies going and i don't know who exactly was some politician said that there is a crisis like the current one you have to pay people the money make them work even if if you make them take the money and take them out well cain said cain said you know that you'll you'll you'll you'll get rid of unemployment if you if you dig dig holes in the ground and get people to fill them up again or if the treasury fill bottles with banknotes and milton friedman said the same thing helicopter money

would just scatter money over over the country and that'll get rid of unemployment no between serious the german economy is a very strong economy but it is an export economy and its exports have been growing why because basically because china has been growing very fast in the last year or so if china's growth. stops but gets less if european if european growth falters as a result of these cops everywhere if american growth slows down then the germans will not be doing so well and i don't think they'll be doing as well as they are now in over the next year i think they're going to face a moment of truth when everyone slowing down is going to be very bad for the german economy the german economy will slow down to you criticize the decision of the european leaders to withdraw fiscal stimulation programs which have been operating

over the last two years could this cause a slump in logic. i think i think it can i think the the with the withdrawal of the fiscal stimulus is very is very risky because it's been like a lifeline it's been a life support system. them and everyone said oh really the big big problem is the hole in the government finances that they're that they're spending much more than they're raising in revenue it's not the hole in the government finances that's the problem it's the hole in the economy that's the problem and you know if you if you deal with the hole in the economy that the finances will get better automatically because revenues of the revenues of the government will increase and their expenditure on unemployment will fall so you deal with the column e. and the budget will look after itself more or less i'm that's an exaggeration while leaving the economy to one side in one of your interviews you set that russia could

provide military defense to the european union under what conditions could this happen. well what i meant by saying that russia could support europe in security matters was that russia should become part of the european security system and i think the simplest way to have done that would have been for russia to become a member of nato which is i think something that putin wanted when he was president but they did they didn't want russia in but that would have been the simplest way but as it is russia should become a much more effective part of the european security system and not the outside because the european actually european military is very very weak the two military is in europe the french and the british the rest have to do anything really but this small and there's no unity. sort of

nato agreement to create something log gen russia has a has a has has good military forces and they're becoming increasingly modernize and specialized to the kind of work. that military forces have to do today which isn't to fight huge war but to be part of a counterinsurgency operations peacekeeping operations and so on so russia could be a great asset for european security system and president medvedev has suggested a new security concept of that would include russia and we should we should take him up on that and really see we'll walk we can do with it because all through russia is part of europe it shouldn't be outside it. thank you very much fan time.

more news today is once again flared up. and these are the images the world has been seeing from the streets of canada. giant corporations are only day.

dramatic example of this from nurse. 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. if if. every month we give you the future we help you understand how to get there and what

tomorrow brings the best in science and technology from across russia and around the world. join us for technology update on our g. if. would be soon which brightened if you knew about soon from funniest impressions. for instance on t.v. dot com. they faced it this is not a provocation but a war of. the forces and we should. just everybody is sure it's a pretty big tree because they have no idea about the hardships that we face. one it's because this is

a you know all going to need to. bring in the army the life something you say is the most precious thing in the world. of self-sacrifice the courage of the those who understand it fully but you have to live their lives real life stories from will be. nineteen forty five don't call. breaking news here on at least sixteen people have been killed in a car bombing at a market in russia's volatile north caucasus region around one hundred others were injured in the time when the republic of north or something security has been stepped up in favor of mobile i. will bring you all the details on the story as soon as we get them but for the meantime let's go to the business news with current .

and i welcome to business good to have you with us this hour russia ranks sixty third as a competitive nation according to the world economic forum that places russia roughly in the middle of one hundred thirty nine countries on the list devils face for measured competitiveness in twelve different ways including education labor market efficiency and innovation total and took first place followed by sweden and singapore. politicians at least in some countries have given up the pretense of economic recovery president obama this week called for another round of public spending to prevent a slide into depression but the debate is finally ballasts with others and europe determined to cut spending and bring down deficits if they didn't give it a has more. they wrote about. the one hundred eighty billion dollars into the u.s. economy after a data suggesting the economy from house prices to jobs is shrinking again given

his mood is a debating whether more spending will end with a keyed of contraction in the land of the rising sun the russians to face a choice for the next few years we seem pretty sure and if. we see a combination of private increase spending that we believe. i believe to be private capital will return to russia over the next twelve months in a meaningful manner secondly we do see increased spending from the government as well combination of two should be the base for we believe to be five to six percent growth over the medium term the government plans to borrow more money this year but also spend their means of this to build zeeshan fund domestic borrowing is already accounts for a sixty million dollars and russia will be ready to issue euro bonds in november according to the finance ministry motional same store it will be boring a lot in any case a deficit of three point six percent is anticipated next year we also focus the

twenty twelve deficit will be three point one and two point nine for twenty thirty in the current situation has forced us to borrow and we will be spending from the reserve fund next year. the reserve funds have shrunk to a third of their former size when that runs out it'll blow hole in the russian budget unless the government can pump up its moorings or one buyers for every inch of state companies legs burbank with presidential elections less than two years away had a list say politicians will rule spending cuts off limits you know any minute of business r.t. moscow. at last check out the markets now in europe cast off bought us able to talk about an existence level banks again positive comments. we can only comment by european central bank policy makers lloyds bank shares are gaining over three percent also heading up. and we call it and here in moscow we are ts and in my eyes

and also gaining with the major blue chips trading in the black leaving the games telecom top morgan five percent the stock followed by bt b. and spare bank energy shares are also trading well gasp on the new poor are up about eight percent. russia is credit ratings outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost are accelerating growth of stabilizing banking industry and a flexible exchange rate policy from the central bank which said it may further raise russia's credit rating if the government reduces the country's small rehabilitate swings in oil prices. plunging interest rates have led to a three fold rise in borrowing on the syndicated loans market by russian companies corporate loans have jumped by twenty billion dollars from just under seven billion dollars from the year before for example an unsecured loan this year at about one percent above to bank rate last year

a similar but secured loan by the same company had an interest rate four times higher. than. the russian auto market could return to pre-crisis levels in three years' time that's according to new research from after start russia would then be on the road with other top call markets like germany however many market watchers warn growth won't be quick. russian sales will be less than two million vehicles this year. russia's economy has a long way to go before the ruble becomes an international reserve currency that's the dominant view from a conference focused on the prospects for the russian currency the steps according to analysts should be to boost the government bond market stabilize and diversify the us economy and a lower the inflation rate however the president of the my six exchange says russia is making progress. getting ruble to be accepted in settlements and this is an important step and this is the first step towards the

ball for making rulers of cars pulled right and. i kept says the ruble is already attracting international interest the trading that we're seeing on the b.s. platform is growing month by month there's also the three to six months we've seen huge increases in volumes and we would expect those volumes to double over the next six months so this massive uptake we see in counter parties in hong kong and singapore in new york and chicago in particular all looking at the rupee and so most of my inquiries now about ruble are actually coming from north america and asia. staying with the russian currency meyer's exams to start trading the un ruble cross by the end of this year analysts say the trade will boost the profile of both currencies says the initiative came from russian central but the russia central bank and the people's bank of china is expected to launch the same trade. but also

is to nominate its chief. to the board of north click the extraordinary election is for october twenty eighth the votes being repeated after accusations of cheating during an earlier vote the two principal shareholders and into roles have competed for control of the board the list of candidates will be submitted all september twenty first at the latest. but should all companies are increasingly looking east several producers want to expand or establish operations in china within several years. representatives told a conference they would they could build new oil refineries they would chinese. oil products in china vice president len you said lou calls priority is to expand to asia as the fastest growing region. so for me for now i'll be back with more in less than what up.

to live in a country that don't understand that there's more violence in the streets of this country than there are in the streets in afghanistan or baghdad. one of the spurious become a brace of. as it. is from the. form. of crowd gathers the moment. it is down the street will be.

come. come. come i'm going to come. this history still keeps its secrets but now it's time to reveal the hidden in the soviet files the cascine case ethanol on ati. dramatic example of this from a simple. surgery. done on earth. they managed not only to stay alive. but to keep their faces and souls in inhuman circumstances. nine

hundred days in busy just learning ran through the eyes of the survivors. wealthy british science scientists passed on. markets finance scandals find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines tune into kinds a report on our. the.

motion would be soon which brightened if you knew about it soon from fungus to freshen is. influenced on top teeth dot com. when the news is not enough. when it's something really crucial when you want to get down to brass tacks why bring special coverage. this time the latest news from the young muslim old policy forum live broadcasts special guests discussions on the law in the modern state in providing security and stability of the present day world. first question more on ati.

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