the future covered. download the official anti application to your phone or my pod touch from the top story. launch all life on the go. video on demand tease mind build costs and r.s.s. feeds now in the palm of your. question on the dot com. hello yellow welcome to spotlight the in thing the show on our i'm going off and today my guest is sylvia eight alex session. finance ministers of the g twenty countries have relation agreement not to devalue their currency this seems to have saved the world from what's called the war of currencies experts fear

a war of this kind could cause chaos on the global markets but is it something we should really be cautious about or are these fears of the past we're asking our guest who is a well known financial analyst and former russian deputy finance minister. the g twenty finance ministers have succeeded in a standoff against china which has been seen as a major troublemaker on the currency markets the u.s. accusing the gene of purposely lowering the value of the yuan which gave chinese goods a competitive advantage on world markets russia has also been worried about possible targets or was as they can boost inflation in the country the good news the protective measures like devaluing currencies will be avoided by the g twenty countries helped calm the markets of those max but states do have the end of the world currencies just peace talks.

hello mr exceptional going to welcome to the shell well first of all i would ask you about the about this decision taken in there in korea at the cheap g. twenty meeting the finance ministers decided that they will refrain from weakening their currencies how long do you think they will be able to keep this promise i think at least one week one week yes afterwards because all promises all promises reached on such hope of the meters of course they're not legal or not legal commitments and express of good will and we know very well the income in the federal reserve for the united states for the nonce they call it if we can in phase two and no one knows the size of the magnitude of these action so if their action is rather small it's a hundred two hundred or three hundred five hundred billion dollars of course it's will not affect a chorus of markets but if occasionally almost like said that it may reach up to

four trillion dollars of course these two will. create another two or more on the financial markets so let's wait and see if this commitment is not legal and of course. if you have an event or if you have a meeting or for a finance ministers you have to reach agreement up on salt and all this but what's the use of bringing finance ministers of the leading twenty countries together and then talking for for a for two three days discussing coming to a decision that will be that will be kept only for a further five days as. we remember with you without the stand fifteen years ago where there was such a group called the g seven g seven and it is over very important it was really influential group of decision makers who decided their financial political destiny of the world and decisions made by their group were really influential they were really important and their group of finance ministers was. to make decisions that

are where implemented but the situation of the global economy has changed nowadays even the united states is not as dominant as the country was fifteen years ago we have a new emergent conference like china like india who would like to play their all in international sphere and in fact you cannot discuss the situation of the world economy with china so you may discuss it with brazil without rational without even getting even without u.k. but you can discuss without china and that resulted in such a group called due to a team that met two years ago for the first time when financial turmoil took place . but it's a new group with a different interest with different ideology and were different economic policy and they have no cost to reach an agreement so they're more democratic with less influential value. of course of whether it's more democratic when making taking a call that bigger number of the countries in a different country is democracy just seven is

a global democratic nation and they have a habit to keep the promises in recent months and number of countries have tried to drive down the value of their currencies and the spotlight you know the demeanor now stands. japan's intervention has been one of the first episodes of the so-called currency wars when the yen heated its fifteen year high against the us dollar to kill started a massive sale of its own currency combined with the purchase of the american backed was meant to boost japan's exports and this will help recover the country's economy that was just one event in a chain of similar actions taken by various countries asian as well as european the process was named competitive devaluation this is something china has been doing for years them planets you want to make experts cheap they go west it's long time major poland is now criticizing other countries for formal invasions example

meanwhile economists believe it's the united states that currency wars in the first place by printing a lot of money now the chain of currency devaluations i believe to threaten global economic recovery finance ministers from the g twenty countries together last week in south korea to try and tackle the problem they have agreed to would weaken their currencies to boost exports experts think the temptation might prove to be too strong to stand. all observers say the china have the recent years have been been have. appreciating its currency is that true. yes it's true because china recognizes the value of your news a little bit low and then move in a step by step a lot of fast but regular and there's this process was rather fast some way before two thousand and five two thousand and six and then it was frozen for a couple of years and now days since july china once again started to appreciate

their policy is it true that the reason for that is is that the u.s. was actually insisting that china gives and appreciated the why are i would say i would say it is a reflection of the understanding by chinese authorities of the situation that the exchange rate or what changes you are an effect on the global economy and affects the global imbalances and of course china would not like to be the cards were there to blame by the rest of the war for distorting the global economy of course china is is early on in east trying to understand how the chinese economic policy affects the rest of the wall and they try to listen to advisors well here now is a quote by the head of the euro zone john claude you care expressing the european point of view. given. china's import. we do think. the ordinarily significant based

appreciation of the real be would promote more growth to both of china and the global economy we do think that the success of you would be a good cover with this in the best interest of china we express our concerns as regards reason to worry about the speculation is concerned that the possibility of . this would be destructive as would be in the form of great protections. here's a gentleman trying to express the interest of china well every time i hear interests of china from people like you from from from financial tycoons i always ask myself interest of chinese business chinese government chinese people so what really do you think is in the chinese interests decreasing or

increasing. the kind of seeing people business government in the long term in the long term of course appreciate in the constitution years for everybody and yes yes the problem is that until once again ideally a decade ago china was there with general powell one. fast draw in contra but still mainly involved in this the mystical problem in the recent decade china became the second global economy and the situation in china affects the rest of the water this is a new situation this is a new situation for the world this is a new situation for chinese leaders and they have to adjust their domestic policy because previously they were making decisions taking into account all the domestic interests now days they have to recognize that situation has changed and any decision in china affects the rest of the world affects. labor effects employment effects the growth of the quantum in new york when in africa in north america and china needs to become the one of the call police in the global be so and

that is of was in favor of all chinese comparable population of business of the government well the chinese themselves seem to be rather skeptical about the real motives of the us pressure on china here's a quote by being a director our finance call at china's university of international business and economics. to me were as far as america is concerned the slower china response to the exchange rate were better because the us will always use the currency exchange rate as a bargaining chip to make china make more compromises in areas such as international policy and economy which is opening up the chinese market. do you agree that there there there this u.s. pressure is is proceeding rather political and economic i would say i would say that is the normal behavior by american authorities just to establish to create pressure on the porn and and we would see we could see in the years before person

in your corporate and person wattle person chapin with a well known blogs are called to do united states tried to players know the play try to pursue a childless enochian will guys look on the wall more globally you have to recognize that it's not only you're not an isolated island you have to take into account all other dimensions or other channels of influence what you saying means that americans and europeans think they should teach china hard to be cave in the world a lot of it is a neighbor you would better choice there try to learn from the chinese because i'm too little for the local is under there they do not want to teach they want to share their experience yet because being the global conference in the global nation for several decades or was american administration has. a community a huge international experience understanding hall the global economy functions chinese unfortunately he even russia even russia i think will have lost the will of

the something it was isolated from in russia we have more understanding of the global economy how to function in china as well it's it's i would i would you know because any time mind debate with my colleagues from the u.s. administration. because they know more than i know. a director of a macro economic to assess departments that must go higher school of economics spotlight will be back shortly after a small break we'll continue this interview stay with us. wealthy british scientists i'm. right on.

the market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines kinds a report on. morning news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. giant corporations are on the day. welcome back to the spotlight i'm al green of and just to remind germany

a guest in the studio here today is said again alexei a former russian deputy finance minister former first deputy chairman of the central bank of russia i remember those days. well thank you thank you for being with us today once again and we just started talking about china and we just started talking about the bad the u.s. and europe trying to share with children that their experience of leading the world economy for a number of decades which i did not because but will china has been around more than a logo than europe is larger than rockefeller legally and if one of the economy was different but it's still it was economy men haven't changed a lot see a lot a lot of you know even though you know now it is sort of it's sort of if you look all the world he used to realty before nineteenth century you will see that the g.d.p. per capita was good to stable are less industrial revolution took place in the united kingdom due to people cry but i was going where

a very slow and all economies were localized there were natural economies really that was you know not that i chose it is a huge nation listen or the u.s. federal reserve white house is talking to china trying to share their experience while the u.s. federal reserve continues to print billions of dollars and pumping them into the economy isn't it isn't it actually a policy of dollar depreciation while they're voting for appreciation i would say that as a new government in the ward and there are first of all would like to solve all problems the problem of all nations as well as china as well as russia as well as british to go with an. of course of course it is a great danger for the united states that the economy ees facing the double deep economic recovery is not stable is not fast and there are great concerns that unemployment is high enough and the economy milf we may phase the second decline in

the role and of course federal federal reserve would like to help to boost the economy by cheap money so money for a policy maybe is not the best instrument but is the only one remaining in the hands of the most of those social you think there the u.s. will continue the policy are of cheap credit and the price of the dollar will continue to go down of course of course in this nation will continue these unless all other countries within g twenty i don't know how many countries should be but net china of course or should be one of them they should press us administration just to agree up on sort of the rules of the game because you've missed off financially for the sector of director of the united states tim geithner has signed this declaration or congress who was annoyed divination there should be certain commitments on us as well but it starts to backfire i mean i mean more and more countries are starting to cut to country bilateral deals using other currencies then dollar avoiding dollars in these bilateral deals and that means that the u.s.

is actually by its policy undermining the international position of the dollar as. i would say in its wishful thinking up to now approximately eighty percent or foreign she transactions in international markets they have the u.s. dollar on the one side i would like i would like all the world to be more diversified about other fortunately it's not for russian finance minister. is confident that the russian economy is not suffering from a currency war and here's a quote. from the internet remember there is not yet a currency war going on we are talking only about expectations that currency flows will become more powerful instrument. competitions i'm doing today the clearest examples are usa in china the situation between them is unique but we can't say that there is a similar war in any other part of the world. russia's central bank has decided to loosen the rubles floating corridor recently would you

say that it means that russia is somehow teched is somehow influenced by this conflict by this conflict between the states and china no no i would know what is your agree with alex equal to that russia is the outside of this currency wars because of manufactured products and russian expertise not to be with us or russia in north by devaluing is chorus of russia cannot benefit something of the world market because russia is the natural resources commodities that are not affected by the winter you were in charge russia has been very proud of its. courier for the ruble now it's losing it well at least you know its laws and because there was a pressure on the current account russian you propose drawing over this period of more than thirty percent year to year while it's pretty stable and there's of course great suppression of the balance of payments and so starts started to sell their fortunes reserves what you did mean loosening of the corridor will ruble

start falling or rather rising stillness a little will forward fall and will be falling in the not fast not continuously but their general plan for the coming years he's a loser. so what should be my preference in the currency when my salary here is in rubles so the ruble will be falling your say so what should i do what should i buy there lose pounds easy and low lying and i'm going to first of all you should not change your strategic everybody even if you talk about savings if you talk about savers decide what is what is the purpose of your savings in just ordinary expenditures then the problems because you live in russia and you need rules for current expenditures if you plan to wife i don't know house in. now you you have to . start following people say what should i do what should i do any one once again it's not a continuous process and that doesn't mean that all will lose i don't want two or three five kopeks every day one datable may lose another will my game well let's

see which currency do russians trust the most spotlights. on the other has tried to fight that. how they're all in the global financial crisis many experts have been changing their mind about the world's leading currency some of instead the gold my big one today i'll try to find out which currency did people in this country trust the most euro dollar yen. i trust the russian ruble because i live in this country you trust euro because it is a united european currency and i think it is more stable than others i do i think that there's definitely opportunity for growth in russia. i think that the demand for that currency will be strong as the country continues with a trustee and the most because japan has the strongest economy there's nothing better than me and. i trust the russian ruble the mongst i think the currency is

a very shaky russia's the wealthiest country and that's the reason why the transfer of most of the rubles of course i live in russia and i think that our currency is very reliable and trustworthy. so do you think this trust in the ruble is justified yes yes i think that any country of the world you should assume because that is the country where you live and that's economy where you are participating in this the wealth you are benefiting so national choruses you should be proud of it but why are the russians a you just mentioned why the russian soaps s. by trying to analyze what is the best currency for their savings it's not because in the us. country in the world i think the local we we together we remember the soviet union we remember empty shelves in the shops and when a member of the total cost not hearsay every year for years and after afterwards we remember the fires devaluation over there over the beginning of ninety's in ninety

eight and of poland they saw russian russian ruble has no long history religion ever really it's like a memory and there are only read paul who had their savings in dollars they they managed to save something at least they may move here in a males as well because eve your families are dollars let's say somewhere in two thousand and three by two thousand and eight you have lost approximately twenty percent ok now listen in two thousand and ten according to the press russia's exports slow down while the imper it's keep on rising and they still keep rising is that a sign that the ruble is too expensive from the point of view of russian producers that this is one of the explanation of this fact yes because russian russian producers they should compete not in international markets but in domestic market with chinese products for example and i'm with a lot of companies of from oil industry for example gas industry who said ok it's cheaper for us to buy chinese products rather than russian because they're cheaper chinese easier and visa better to do you door and that's why the prices are stable

while believes it was appreciate and seen since march of two thousand and nine ok now if currencies will be devalued eighteen years and there including the ruble going to go down maybe slightly but it will what's going to go up. the paper shares are stronger you know i guess i don't know i think i think if all causes will go down that means that all the world will be in high inflation high for years and that will be a the best scenario for a new one i believe that it's in the more dangerous situation of this why ministers of one is try to avoid this situation. because if any counties depreciate in that music have to address this in your local economy by high inflation. even this happens of course some goods like gold gold will be for the best value he will come back to george soros yeah if inflation is high please buy gold you have no choice

so but but many people say this is what sars has been driving at since the start of this thing around gold yes yes yes but ok efore if us is printing cash is the european central bank is printing gashes russian central bank of british gas like a certain port that's would grow in value and you should do find some limited products with a limited supply what kind of the world's have you guys build that one than me you know do we get a one man like jury sorry this is able to be laid out or do you have of course no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and former russian deputy finance minister and that's it for now from all of us here spotlight we'll be back with more first time comment follow what's going on in and outside russia until then stay in r.t.

and take it from. crisis.

dear mom i'm sorry that i had to do this i've been in so much pain in the past year that i can't take it anymore the stomach and chest pains have been getting worse and no doctor has been able to help me please know that i'll finally be at peace and with no more pain i wish i could have had a life with elizabeth always pictured her being my wife and mother to my kids i love you all see you all in heaven when your time comes i'm going to meet jesus christ. thousands of u.s. troops in iraq received one of these drugs a drug called lariam and it may have prevented many soldiers from getting sick the question tonight is whether or not soldiers were adequately warned about its rare side effects serious life changing side effects.

to ask a combat soldier who served in the occupied territories where he was palestinians as human shields like to ask you to drink coffee in the morning kids on the front line two israeli soldiers may face up to three years in prison for using a nine year old palestinian boy as a human shield during the gaza war almost two years ago. talking trash ecologists in moscow one city may soon find itself suffocating under its own rubbish unless a proper strategy to deal with its garbage is found. and iraq's prime minister is under pressure following the massive leak of secret american files revealing torture and massive billion deaths in the country with critics asking if he's fit to be in power. now the explosive what we call leaks revelations are the top news in the alley on the show today as well as a multibillion u.s.

arms deals with saudi arabia and a global currency wars hosted today in washington is a lucy confident. for the full story we've got. the biggest issues get a human voice ceased to face with the news makers. welcome to the i want to show we'll get the real headlines with not at the mercy we're coming live out of washington d.c. and i'm lucy catherine of in for alona now wiki leaks is at it again we're talking torture executions war crimes these are just some of the allegations in the latest slew of documents released last weekend on the.