that's inflationary but they're missing the point that in the background is this huge credit collapse that is causing a net deflationary effect absolutely all right well that's all it's par for i got a cut off there. thanks so much for the go fos from the automatic earth for being on the cards a report and we'll have to have you on again hopefully as soon as possible because one of the few people that we've talked to on the show that actually sees all the moving parts are thanks so much for being on the show thank you very much for having me it's been a pleasure already well that's all the time for we have on this episode of the kaiser report with me and stacy herbert and i want to thank our guest in a cool foster writes under the name stone lake over there at the automatic earth and if you want to send me an e-mail please do so at kaiser report at r t t v dot ru until next time this is my guys were saying bio.

one of russia's most wanted men a suspected terrorist. is said to have a arrived in poland despite threats from authorities to arrest.

wanted well the warning the suspected russian terrorist is said to the warned about a possible arrest find out all the details here are two. russia houses side saw him reaching an agreement with the heels of signing a demarcation pact with norway. that you could use elite special forces unit the s.a.'s comes on the fiscal fire from a government trying to combat spending. the russian communists say english. should be singing behind bars find out why in just a few. of the former yugoslav republic republican set of sky is to join the three with gas projects more in business in twenty minutes.

you all with live from moscow welcome to the program. well one of russia's most wanted terrorist suspects is said to have entered poland despite the country's threat to arrest him upon a rifle. thought to be attending an international chechen congress near walsall now he currently lives in britain where he does have political asylum he is covering the us out of is following the latest developments and now it joins us live hello to you can't you know so this isn't the first time i have has traveled abroad despite there being an international arrest warrant out for him how likely is it you think you will see the polish both of these detainees. rory right now it doesn't seem likely at all because at the moment there isn't even a certainty that that client has indeed left the united kingdom and has arrived in poland so far we only have one polish channel t v n twenty four claiming that the fording two unnamed sources they claimed that psychiatry has indeed arrived in

poland twenty the world chechen congress however that is so far unconfirmed also what is very strange is the fact that polish authorities have stated that they will arrest him because of course there's an outstanding enter paul warrant for his arrest and they will detain him should he arrives on polish territory no this is very strange because according to general knowledge one foresman agencies do not exactly announce their wishes to detain somebody especially to that person before they make an arrest so this could easily be. constructed and sealed the morning of sorts that he will be detained and therefore should not attend but according to us several sources that despite the fact that polish authorities have said they will detain him should he arrive several people have already said that he intends to arrive at the congress and according to of course the polish channel to get twenty four has already done so. already so you so we understand that russia has said it

will do on whose extradition if he goes ahead with the trip but realistically cats here can we expect him to face trial in. russia in the near future. already this is a very difficult question because of course even if the man is detained in poland he still has political asylum in the united kingdom where he's been living since two thousand and three and it is therefore britain that will have to grant his extradition to russia in order to face trial and britain of course has refused to do that ever since that pryor was granted political asylum seven years ago and a despite the fact that he is wanted by interpol by russia he's been found guilty of a number of charges here in russia britain says that according to its standards is a law abiding citizens he has political asylum so despite the fact that russia and the united kingdom have an agreement to extradite criminals the political asylum status actually grants mrs acquire

a very good sense of security so it will be open at once again up to britain to judge whether he will be extradited and based on previous experiences that's not going to happen so you bring me to my next point the only person wanted in russia that has found refuge in the u.k. what do you think britain who spin the so reluctant to extradite individuals. well the whole boils down to the same thing rory the fact that mr zakayev and many others who've left russia for the united kingdom have been granted political asylum therefore in the united kingdom they are believed to be persecuted and of victims all of the political situation here in the country among them is what is a very notorious figure also a recent. man who to move to leave russia for the shores of great britain is mr chalabi again and all of those have been granted political asylum despite the fact

that they have been found guilty here in russia on numerous charges for money laundering to abuse of power and many other things but despite all this britain continues to say. those are victims of political games that they are law abiding citizens within the territory of the united kingdom and therefore the agreement that exists between moscow and london about exchanging prisoners to have our prisoners or suspected. log wrongdoers basically is no envoy because they have been granted the status of political refugees. out of a reporting for us thank you. but russia. neck and neck race for the arctic's rich resources is challenging moscow's claims to a portion of the polish seabed but russia says it won't give up. the north in dispute. both russia and canada remained firm at their stances claiming that part

of the arctic seabed known as the a woman also fridge belongs to bear to authorities moscow says that its claims are based on scientific fact and according to the russian foreign minister sergei lavrov russia will continue sending expeditions to this area in order to gather enough scientific proof for the international community to recognize the best of the russian land mass. because of the limo and also the loam and also a bridge was discovered by russian explorers but today we want to prove scientifically that it's a continuation of our marine life in providing our data to the un as does canada and now denmark is also thinking about lng clinging to the luminous of ridge but any such claim must be based upon scientific data provided to the un commission and the have the last word in any case in two thousand and seven a group of russian scientists a descendant done to be alone also fridge study of it and found concrete

conclusions that it is a continuation of the russian landmass they've been planted a russian flag there and then moscow has filed a request to the united nations asking the international community to recognize this area as support of its two to you but the united nations has asked for more sane to fake evidence meanwhile canada has also filed claims on this territory saying back to the a woman also for age is part of the canadian state or you know we will submit our data on the loan is awfully age and we're confident that our case will prevail by scientific evidence the arctic is a huge area and currently doesn't belong to any country but at the same time it's thought to hold up to twenty percent of the world's untapped resources of gas and oil which makes it quite an attractive area. for many countries up port from

russia and canada other states are also keen to stablish themselves in the octaves and they include the united states denmark and norway according to some analysts this me lead to some type of all over conflict because this is the stakes are really high because of these extremely large reserves of natural resources and this me lead to some sort of a problem an international problem on the other hand. and analysts this thing from back to this issue will be resolved peacefully in fact just now during the meeting in moscow the foreign ministers of russia and canada have pledged to resolve the state or the dispute strictly diplomatically and scientifically and there is already an example of how such a dispute could be resolved peacefully just recently russia and norway resolved a decades along a territorial dispute on their borders in the bar and sea and now we've agreed

first of all to establish the border and also to share the natural resources which are held in that area so hopefully that will be done in the in the case of russia and canada as well. that you're going to piss me off reporting right now a british or special forces are undergoing their biggest cuts since the second world war the country's ministry of defense says it needs to downsize the elite special as the having its budget slashed and while the decision may help the government save money critics say the true cost of axing what is a global asset could spell disaster. and it investigates. weld renowned elite notoriously camera shy these are persons special forces at work in afghanistan they're seen as one of the greatest assets the u.k.'s army has to offer but even they aren't immune from government cuts the ministry of defense is being forced to save between ten and twenty percent of its budget for the s.a.'s

that will mean getting rid of those too old for combat duty and axing one of its part time but tolerance paxman used to be in the s.a.'s and now help servicemen to overcome post-traumatic stress disorder he wonders what will happen to men who've spent their lives in extreme situations and my concern would be the vast numbers of going in there are going to be out of work that have been in the military environment. combat environment hostile environment for a number of years. for themselves with a skill set that i can't use in the civilian community pretty harsh offer for their out of a job some say the decision to axe old soldiers is a false economy they're the ones with the know how and in valuable experience but needs must and as the u.k.'s economy shrinks so difficult decisions have to be made an economist searching

a proper look at what the u.k.'s defense needs actually are rather than just locking off a bit here and there i don't think that sort of. approach is really going to work i think what you really need to ask is what britain's military needs going to be over the next ten twenty thirty years and so far as we can predict them and then design your own forces to actually accommodate those strategic concerns over them just trying to save on paper clips and u.k. special forces have been active in all the major conflicts in recent years iraq kosovo east timor and now afghanistan where nine and a half thousand british troops are currently deployed but the question is whether the press. we will be able to play peacekeeping or military roles in foreign conflicts in the future and that at the same time it's rising economic powers are increasing their military forces that's going to create some there ever since from a period in which nato countries. but also west european countries

enjoy a certain technological superiority. not just discomfort defense cuts ultimately main european countries will be increasingly dependent on multilateral alliances to ensure their national security defense review is currently underway with results due to be published in the later what insiders hoped for is a wide reaching decision on the u.k.'s defense priorities what song they're afraid they're going to get is paper shuffling and useless cutbacks in britain's already overstretched armed forces. r.t. . we're coming to you live from moscow this is r.t. coming up later in the hour and join our close up team as we explore russia's far east and the one. which. stuck in between the russian mainland japan and the cycling islands is the island of mine you're on named after a french seafarer who discovered it it is described as the pride of the sakhalin

region we'll take a look at what's in store for us here. russian communists were jailed for some of his views on that story in just a few. and i was in other news making headlines around the world the pope is being welcomed in the u.k. by queen elizabeth in the first visit of a pontiff to the country in almost thirty years benedict sixteen. hours ago before traveling to london on his four day trip turns of thousands of people are gathered to greet him but protests are also planned across the country over the pontiff's policies on. gay rights and abortion child abuse scandals in the catholic church. u.s. a secretary of state hillary clinton is meeting the palestinian president mahmoud abbas off the new middle east peace talks the israeli and palestinian leaders have held two days of direct negotiations although no breakthrough has emerged president

obama says he'll quit the top six when israeli battle settlement building in the west bank is not renewed despite this u.s. officials say progress is being made during the talks israeli warplanes conducted two raids in gaza following palestinian rocket and mortar attacks. at least nine people have been killed after a blast ripped through a minibus in southeastern turkey three others were wounded officials say a remote controlled explosive device on the road calls the explosion. they suspect the attack was launched by kurdish rebels who have been fighting for so full in the country's southeast since the one nine hundred s. . with relations between the u.s. and russia continuing to improve ratification of the new start treaty is being seen as a test of the country's cooperation the nuclear cuts pact it's up for discussion in the senate but there are doubts as to whether the obama administration can get the deal signed off of a professor and russia expert timothy colton says although both sides are getting

along better they still have a long way to go. well we've seen progress definitely. last year with. the new obama administration had announced this reset policy but it was still very early stages and there have been really no successes at all but today we you know it looks quite different both sides of learned to i think look at the point of view of the other side and the policy is moderated we have an arms control agreement but so many things that i had i mean there's a question of whether the united states will even ratify the agreed. because we're going to have a congressional election in november where the opposition may gain control over the congress so that's only the beginning i mean the agenda is very wide and very deep and there's been limited progress which is good but it's it's only the beginning we're talking here about it would take ten years to work through these things.

and you can catch the rest of the interview with. the professor and russia expert with a cold and it's coming up later this hour. well i want to close up team has it once again hit the road to bring you the very best of russia. today we take you to russia's far east the country's biggest island. for many years it was at the center of between moscow and tokyo because it's rich oil and gas resources today is one of russia's most developed regions and it's a breathtaking rich flora and fauna still largely unspoiled by tourists election went to discover all the natural beauty.

risking life or limb special troops to send those speeding boat in the middle of the pacific. coast guard in the russian far east this is an almost daily routine they fight poachers annual turnover of illegal fishing and mounts to millions of dollars. along with a team of officers we come on board a fishing boat they check documents to see whether the vessel had any right to fish here. this particular boat was legit but officer got a boost said this was an exception rather than the rule and xander told us of the biggest highlight of his three years of service here. we identified a vessel belonging to poachers we asked them to stop and fight flares they didn't reply so after an hour we had to open fire after about twenty minutes they stopped probably being too scared of us shooting at them that was one wild chase alexander

came here from the other side of russia and despite nonstop action and hard work he enjoys his time here that is because he projects. from human harm the beauty which is visible from the very first glance. in between. the russian mainland japan and the circling island is the island of minute on named after french seafarer who discovered it it is described as the pride of the sakhalin region we'll take a look what's in store for us here. until two thousand and four the island was part of the boarders own and was completely restricted to visit is now the speech rest place is open to tourists unique plants and animals are its top attraction. when you go. to the island is unique because it is located far from the mainland

and is practically untouched by humans that's why many endangered species or both flora and fauna can be found here in the underwater world who is also unique because a warm currents in the sea when you're on is by a ride to the far east. he has been exploring the deaths of the world seas for several decades but it's here at more your own island where here is finally found what he'd been looking for. for the rest of the water here is very clear the visibility is very good and the underwater world here is extremely rich i've been to many diving locations across the planet including the island of bali but mine are on tops my list. while some go to the cycling region to enjoy the sights others convert the island's nature's riches into a healthy dollar it is home to the biggest seafood processing factory in russia the tonight shock hundreds of thousands of tons of fish get caught in the nets too late

to produce delicious salamon caviar almost unnecessary attribute of any feast in russia the owner of the enterprise says a good fishing season can bring in more than one hundred million dollars net profit . and to a large extent this is old to do what succulent offers environmentally the tonight show operates in only and natural habitat farms selman bay feed you have to give them a lot of. all sorts of man a thin line to biologics and things like that to make sure that it actually survived and this is their natural environment and again while filming they're certainly much better than many farm spaces it's a natural product if you can see the fish is alive with delivery of life to the factory and you get the best product you can get and mild climate unique natural sights and delicious seafood succulent can offer

a diverse holiday for those who are not afraid to travel ten thousand kilometers from europe the question is whether this distant land would ever be able to become a major tourist destination alexi russia ski odyssey reporting from the cycling region. we are coming to you live from moscow this is. a short while from now yulia will be here with the latest business update but for the meantime though it seems that the singer sting could run into some trouble with the police here in russia during his tour in moscow and st petersburg communist group called for his arrest the demand was provoked by the rock was recent suggestion to legalize marijuana the communist describe it as a leading proponent of drug use or should be an example for the younger. regardless of these troubles though at least sting now knows the russians love their children to. say. this is.

our analysis check in with the latest business news with you. hello and a very warm welcome to the business news another republican former yugoslavia has agreed to join the south stream project prime minister of the republic of sarah miron had thought it was in moscow in one state to sign a cooperation agreement on the south stream gas pipeline precious energy minister said court said it was in the interest of europe to create favorable conditions to implement south stream don't add it that there were no real eternity after the project. if we're being told that the project is too expensive and this is not needed in europe i'd like to draw attention to the fact that the gas will be sold at the market price that will be formed in europe while the european consumers should not be worried about the cost of the south stream construction

this is a concern to shareholders the more guess there is an offer in europe the more market price may drop which is in the consumer's interest. we are absolutely sure that there is no alternative to the south stream project confident that the construction of the south stream will provide regular gas deliveries not only to the whole of southern europe but also to many consumers in the rest of europe. russian pipeline operator trans nafta and investment group suma capital will buy the black sea port of never i see it in a bit to integrate russia's largest port operator in crude oil trans now ten suma capital already control the baltic sea port of pre-mortal combining the capacitors of the two ports could create the largest stevedoring door in company in russia the deal is estimated at around one point eight billion dollars the two companies will hold fifty point one percent of the i seized on that era to bases.

plans to invest two point five billion dollars in developing pit crew to iron ore projects in liberia the company has got to finish and from the liberia's government to develop the field which contains around one billion tons of will produce from twenty seventeen about twenty million tons of magnetite or a year. russia's economic development ministry says it could introduce a ten percent export to cheer on nickel and copper up within the next two months russia's ministry of that child resources has suggested liberalizing strategic oil fields and the ministry said that the current legislation only allowed ross nafta and gas from to export the shelf and russian water to the ministries hit an increase in competition would allow for quicker development of new or old fields. on the russian government is busy promoting more than a station through the reform in texas sent regulations by its business are

discovered true innovation can only come from companies themselves but in a court reports from one factual that's rebuilt from the ground up. i'm glad i live should sue proud glance into newly built bright orange factory just five years ago the former brick plant still abandoned now it's revitalized and efficient small companies god was there for that this was really it was our father he was very it was. was. my dinner says it costs fifteen million euros to modernize the factory the money is recouped through great efficiency the workforce has fallen from seven hundred to just one hundred five or four when the plant became only economic the management decided to restructure it we are now five times more efficient sadly this story is an

exception and not the rule russian lawmakers have been working with businessmen to try to stimulate innovation but there is a big gap between wards and action all the the private business going back to the modern era modernize russia government can only create the future for this particular big draw from being one of the protect property rights of course gone right but let the private sector invest the lives of the businessmen welcome the government's talk about reform but much of the economy is still frozen after the crisis companies are unwilling to borrow and innovation waits for the upturn my new question of business r.t. . look at the markets now european equities are losing this hour britain's foot is of the read ahead of us jobs data and news that british retail sales fell in august for the first time since january shares are up two percent on reports china seem.