hello again and welcome to spotlight the in thing the show on r.t.e. i'm going off and today my guest is gate alex session. finance ministers of the g. twenty countries have reached an 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 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 it was as they can boost inflation in the country but use the protective measures like devaluing currencies would 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. and welcome to the show well first of all i would ask you about the about this decision taken in korea at the cheap g. twenty meeting the finance ministers decided that they will refrain from weakening their currencies how do you think they will be able to keep this promise i think at least one week in a week because all promises all promises were reached on. of the meters of course

they're not legal they're not legal commitments and express all good we'll and we know very well their income in days for dollars or for the united states or the knowledge of the quantity of reason in phase two and no one knows the size of the magnitude or of these action so if their action is rather small it's a hundred to two hundred or three hundred five hundred billion dollars of course it's will not affect a chorus of markets but if occasionally as being 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 need to know for finance ministers you have to reach agreement on something 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 further for further five days as. we remember with you without the demand fifteen years ago where there was such a group called to do seventy 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 where really influential they were really important and that group of finance ministers was able to make decisions that are where implemented but situation of the global economy has changed now days even the united states is not as dominant as the counter was fifteen years ago who have new emerging countries like china like india who would like to play there all in international sphere and in fact you cannot discuss the situation of the world economy without china so you may discuss it with our brazil without russia without even or without u.k. but you can discuss without china. resulted in such a global called g.

twenty 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 and by the different countries are less democratic 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 their spotlight demeter 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 tokyo 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 the 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 dampening its you want to make experts cheap the u.s. its long time major pawn and 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 the experts think the temptation might prove to be too strong to see. well observers say that the china of the

recent years have been have been appreciating its currency is that true. yes it's true because china recognizes the value of your news that it will be a law and then move in a step by step a lot of fast but radio 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 d.c. is july china once again started to appreciate their currency is it true that the reason for that is is that the u.s. was actually insisting that china gives and appreciating the u.s. 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 chinese yuan affects the global economy and affects warble imbalances and of course china would not like to be there can't for that to blame by the rest of the war for distorting the global economy of course china is is in

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 kerry expressing the european point of view. given. china's import. we do think. the ordinarily significant boost appreciation of the real be would promote more growth to both of china and the global economy we do think that the success of dupion recovery is in the best interest of china reached over concerns as regards. to asians about this because it's concerned with the possibility of the. world 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 france 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 appreciating the current species years for everybody and yes yes the problem is that until once again ideally a decade ago china was a regional power. draw in contra but still mainly involve it is 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 new situation for chinese leaders and they have to adjust their domestic anomic policy because previously they were making decisions taken into account all the domestic interests now days they have to recognise that situation has changed and any decision in china affects the rest of the world affairs. labor effects employment affects the growth of the quantum in new york when age 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 doing director our finance call that china's university 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 such as 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 on born and and there 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 persuade china seeing archaeal guys look on the wall more globally you have to recognize that it's not only you again not an isolated island you have to take into account all other damosels or other channels of influence what you saying means that americans and europeans think they should teach china heard to

be cave in the world a lot of it is the neighbor you would better troy they're trying 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 conflict between the global nation for several decades or was american administration has. a community a huge international experience understanding how the global economy functions chinese unfortunately he even russia even russia i think will have lost the only something as was isolated in russia we have more understanding of the global economy hollowed function and china as well it's it's i would i were you know because any debate with my colleagues from the us administration. because they know more than i know says. a director of a macro economics department that must go higher school of economics spotlight will be back shortly after a small break we'll continue this interview stay with us. there

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welcome back to the spotlight i'm all going over and just to remind my guest in the studio we have today is said to be a former russian deputy finance minister a former first deputy chairman of the central bank of russia i remember those that . well thank you thank you for being with us today once again and we just started talking about sharing that 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 didn't because but will china has been around more than a logo than europe is longer than not only good if one of the economy was different but it's still it was economy men haven't changed a lot. no no no it's look for example if you look all the world he's thrilled with the before nineteenth century you will see is that g.d.p. per capita was

a good sort of stable less industrial revolution took place in the united kingdom g.d.p. per capita was going wherever slow and all the quantum is well localized there were natural economies re it was yellow not that i chose it is a huge nation listen all of the u.s. federal reserve one of the houses talking to china that's. 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 the dollar depreciation while they're voting for appreciation i would say that as a new government in the war american government 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 the british government and of course of course it is a great danger for the united states that the economy ease 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 it will be only one remaining in the hands of the most of those social you think that 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 years and missed there and will continue this unless all other countries within g twenty i don't know how many countries should be but net china of course should be one of them they should press us administration just to agree upon sort of the rules of the game because you've missed off financially for the sector after every of the states or tim geithner has signed this declaration or cards it was of no 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 it is i would say in its wishful thinking up to now it proximately eighty percent or. and she's transactions in international markets they have the u.s. dollar on the one side i would like i would like over the world to be more diversified of either fortunately it's not true russian finance minister aleksey couldn't 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 for competition some day 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 floatin card recently would you say that it means that russia is somehow text is some are influenced by this conflict by this conflict between the states and china no no i would know what is your agree with that russia is stay outside of this currency wars because of manufactured products and russian expertise not to be and thus russia can not buy division is chorus russia cannot benefit something of the world market because russia is the natural resources commodity is that north affected by the winter if you were in charge russia has been very proud of its. courier for the ruble now it's losing it well the reason it's laws and because there was a pressure on the current russian even those drawing or the speed of more than thirty percent year to year while is pretty stable and that of course grades pressure all the bones 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 over stillness a little will forward fall and will be falling you're not fast not continuously but the general plan for the coming years he's a loser. so what should be my preference and. my salary is in rubles so the ruble will be falling you say so what should i do what should i buy dollars pounds easy and. first of all you should not change your strategic everybody even if you talk about savings if you talk about savings just decide what is or what is the purpose of your savings in just ordinary expenditures then keep problems because you live in russia and you need doubles for contacts but just if you plan to wife i don't know how. does your how do you have the. stars for you people say what should i do what should i do with the one once again it's not a continuous process and that doesn't mean that will we lose i don't want two or three

five kopeks every day one datable may lose another with my game well let's see which currency do russians trust the most spotlights. or never has tried to fight that. they're all in the global financial crisis many experts have been changing their mind about the world's leading currency some of 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 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 is nothing

better than me and. i trust the russian ruble the mongst i think that are the currency is a very shaky russia's the wealthiest country and that's the reason why i trust 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. to find yes yes i think that in any country of the world you should trust your parents in because that is the country where you live and that's economy where you are participating in this the wealthy you are benefiting so all national conferences you should be proud of it but why are the russians you just mentioned this why the russian soaps ists by trying to analyze what is their best currency for their savings it's not because any other country in the world i think. we we together we remember the soviet union here will remember empty shelves in the shops and we remember that all

the cost not hearsay and you know years enough after the war the remember the fires devaluation of the robot in the beginning of the ninety's in ninety eight and of poland they saw russian russian ruble has no long history going to the memory it's like a memory and they only read all who have their savings in dollars they they managed to save something at least they may well here in wales as well because each year from races of 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 its 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 exploration of these folks yes because russian russian produces 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 you door and that's why the prices are stable while all these it was appreciate and seen so the march of two thousand and nine ok now if currencies will be devalued eighteen years and they're including the. ruble going to go down maybe slightly but it will what's going to go up. the paper shares are strong but you know i guess i don't i think i think if all causes will go down that means that all the world will be in hind flexion high yes and that will dear the best and there are for a new one i am i believe that it's in the most dangerous situation of this why ministers of one is tried to avoid this situation because if any council is depreciating 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 he started this thing around gold yes yes yes yes ok efore if us is printing cash is the european central bank is printing gashes russian central bank printing cash like a certain port that's growing value and you should do find some limited products with a limited supply what kind of the world's have you guys built that one that me you know do we get a one man like jury sardis is able to lay their own horn 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 a former russian deputy finance minister and that's it for now from all of us here

spotlight will be back with more first time comments on what's going on in and outside russia until then stay in r.t. and take it from. crisis.

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clash of cultures in germany rising nationalist sentiment causes immigrants to insist they are being discriminated against even when they do try to integrate. the details of the latest wiki leaks exposé make front pages around the world but the us media are accused of diverting attention from the revelations of torture and killings. and young couples tying the knot in overpopulated india are paid by the government not to have babies despite the long held family traditions. could make water a major export the idea comes as alarming figures show that the world's population is poised for short of that and more coming up with.

it a study out of the russian gavel you're watching r t with me marina josh welcome to the program now in a. brinson germany accused of failing to integrate into society say they face discrimination at all levels if they do but the german government says it is making moves to bring foreign born citizens and to the mainstream just days after the chancellor said multiculturalism had failed sarah first reports on an issue of splitting the country. and. then the language of an excess. we need to have a place. the message to immigrants in germany integration tough talk from the german chancellor controversial speech recently branded multiculturalism a faith. that it to date on an extremely sensitive issue. which is also called gaza strip because.