japan's surrender at the end of the war limits the country to having only a security defense force as part of the treaty the united states officially acts as japan's military in case a conflict should arise that affects the country but now there is a small but vocal movement suggesting that it is time to review old policies that just aren't needed anymore. the situation in asia has calmed there are no conflicts here any conflicts that exist or in western iraq and not here the people in okinawa think that the strategic value of these bases has diminished for the u.s. out of them and 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 any time soon john thomas r.t. okinawa japan. and i'll be back with a recap of our top stories in just a moment stay with us here on r.t. .

oh so. you're. telling her. this is true still keeps its secrets but now it's time to reveal that in the soviet files the count in case ever long on our t.v. .

sets. eight thirty pm here in the russian capital thanks for staying with us here on our team with our breaking news coverage having seventeen people have been killed in

a car bombing at a market russia's apollo north caucasus region more than one hundred others were injured in the attack on the republic of north a setia security has been tightened across the region. following the attack we have spoken to a number of eyewitnesses those who were either in the market when the car bomb exploded or who live nearby one local told us that she's sadly become used to living in fear. streets have been cordoned off and even the seats are sincere you heard the blast i couldn't tell where it came from he learned from our neighbors that there had been an explosion at the market naturally i did not let my child go to school and heard that there might be a second glass this is often the case we are living in the tinderbox people are being evacuated from the building and i cannot answer it i don't know what's the waiting for me i cannot reach anyone the connection is poor it's impossible to down a single number i cannot even get through to my own home basically the situation is very difficult it's impossible to get used to it but we have to live with it

islamic leaders in russia have also criticized the attack claiming it was a deliberately time to cause maximum insult to muslims. well built over the aga for should know this act of terror is an attempt to scare the people and is aimed at the dinner gratian of islam as a religion of muslims around the world and in russia who have been waiting for the end of ramadan and these people who carried out this attack wanted to overshadow people's feelings and head of this holy celebration and they have succeeded in doing this in northern syria and it's now in mourning and these people must pay for what they've done a few words you do what i mean a security analyst alexander sullivan of says the militants behind the attack are linked to al qaeda and aim to take a hold in the region i say this is just if that's the science it's theories and actually. it is know that lead is heidi's.

gamest and in fact their aim is to destabilize the situation says at inception a shop. that's first of all and it trying to show that it's all they have ceased they have but still there are attempts to stabilize the atmosphere here in russia and such as well they're coming from the international federation for peace and conciliation says the fight against terror can only be one through an international effort. i think the all the people the military the security forces they have to think together to give the religious. spiritual leaders some of the to understand what was really good and its necessity to really unify the efforts in the in the contrie to fall and also it should be ariel international cooperation in the for it to give the reason because this is not only the local rule to each creates the opportunities for these struggle in

going for him but also. just to recap today's top story a powerful blast has rocked the southern russian city of lot of kavkaz on thursday morning it's not the first time this happened in the region at least or in this case seventeen people were killed when a car bomb exploded near the central market in the capital of russia's republic of north as a suicide bomber is believed to have carried out the attack which also injured more than one hundred some of them children and this is the latest in a number of terror attacks that have shaken vladikavkaz for more than a decade the deadliest of which claimed more than fifty lives. we'll be keeping you up today with the situation in the north caucasus but let's get the business news now with kareena stay with us here on r.t. . her welcome to business i'm queen malakand because i have you with us 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 data space for unmeasured competitiveness and twelve different ways among them education labor market efficiency and innovation so it's a learned took first place followed by sweden and singapore. and russia's credit rating outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost are exhilarating growth of stabilizing banking industry and a flexible exchange rate policy from the central bag which said it may further raise russia's credit rating if the government reduces the country's vulnerability to swings in all places. politicians are placed in some countries have given up the pretense of economic recovery president barack obama this week called for another round of public spending to prevent a slide into depression but the debate has finally balanced with others in europe determined to cut spending and bring down deficit's items that are parts. he wrote

about. 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 a decade of contraction in the land of the rising sun the russians to face a choice for the next few years we seem to be spending. 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 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 with sixty million dollars and russia will be ready to use your

ribbons in november according to finance ministry motion same store it should all 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 hand two point nine to twenty thirteen 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 bear. and with presidential elections less than two years away analysts say politicians need responding cuts off limits you need to do a business or two you must. plunging interest rates of lead to a three fold rise in borrowing on the syndicated loans market by russian companies corporate loans have jumped to twenty billion dollars from just under seven billion

dollars a year before for example local took an unsecured loan this year is about one percent above its a bank rate last year a similar but secured loan by the same company had an interest rate four times higher than. the russian markets ended in the black on thursday with the r.t.s. finishing up of wine a half percent and the last six just over a percent across telecom was the biggest gainer all of my six up over five percent backing in energy shares were also high with the t.v. gaining three percent all the r.t.s. shares of spare bank of lukoil finished up two point four percent. gazprom will boost investment by thirteen percent in the final months of two thousand and ten it will take the total sum for the year to about thirty billion dollars the money will go on keep gas transport projects plants and russia's far east along with the north and south stream pipeline projects. now look out the rest of thursday's company

news eldorado russia's electronics retailer says it will exceed its profits forecast this year helped by the opening of four more stores the group's vice president of marketing says the company wants to become a leader in europe. so you. go all over the next three years is to become the best in europe in the next couple of years we're going to rebrand the whole chain we've managed to recover and regain the confidence of both consumers and banks were quite profitable and we've announced four percent ebit dollar year to date but we still have a lot to do we began the year with one target for profit but it looks like we'll exceed it but at least one and a half times also us to nominate is chief although during past go to the board of noise the extraordinary election is shadowed for october twenty eight the votes being repeated after accusations of cheating during an earlier vote the two principal shareholders who saw an interest have competed for control of the board

a list of candidates will be submitted on september twenty first at the latest. sperm bank could offer a four point six billion dollars loan to rosol this month bank chief one graph told reporters in iraq the other we have giant needs to refinance is debt to national bank graft has also announced that the privatization of one point three percent stake in the bank won't happen this year turning to its operations he added that burbank expect its retail loan portfolio to grow ten fifteen percent in two thousand and ten. that's all the update but you can always find most always on our website at r.t. dot com slash business. when the news is not enough. when it's something really crucial when you want to get down to brass tacks when you bring in special coverage. this time the latest

news from the slum implement policy form mind broadcasts special guests discussions on the way to the modern state in providing security and stability of the present day world. question more. wealthy british style stock. markets why not. find out what's really happening to the global economy with max cons or for a no holds barred look at the global financial headlines tune into cars a report. and

. mummy. mummy. this history still keeps its secrets but now it's time to reveal the truth to the soviet files you can see in case everyone on.

morning news today violence is once again flared up if these are the images the world has been seeing from the streets of canada. corporations are today. they sing state this is not a prohibition but warning that. they force it and we shall soon see everybody assured us a pretty tree street so they have no idea about the hardships to face. plate one it is this is it all of them too new some. are in the army the life some of you say the other man is the most precious thing in the world. years of

self-sacrifice and heroism but those who understand it fully but you have to live a. real life stories from world war two six. victory nineteen forty five don't r.t. dot com. to be soon which brightened if you knew about soon from fans to pressure inside. me through stunts on teen dot com.

breaking news here on r t v seventy people have been killed in a car bombing in a market in russia although north caucasus region more than one hundred others were injured in the attack the public in the city and three suspects have been detained security has been tightened across the region. with our breaking news the terrorist

act and lot of have cause and more from the arsalan less than twenty minutes here on r t but up next we spoke to the award winning british historian and economist robert skidelsky about the economic crisis and why austerity measures will only make things worse and he tells us why russia and europe should form a military alliance that's coming your way next stay with us. 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 theorise 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 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 the others are. being 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. and 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 another week come trees 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 there the strongest country in the your opinion and from such as well and what are the countries which could be potentially some. 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 again and i think that's going to have a very bad effect because i think it's going to slow down the growth of 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 mean 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 you are 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 has some politicians that there is a crisis like the current one you have to pay people the money make them work even 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 filled

the old 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. 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 all 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. them and everyone said oh really the big big problem is the hole in the government finances the that this pending 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 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 economy 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 be outside it because the european actually european military is very very weak. the very to military power in europe the french and the british the rest have to do anything really but this small and there's no unity. sort of

no agreement to create something larger and 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 wars. 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 you 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. let's get else can thank you very much for a time. line

in russia. which brightened. soon from friends to impression. starts on t.v. don't come.