limits to see a slideshow middle of the magic has better players in the sky and seeds of hope to protect our hearts the ever so here we can provide such accuracy leads to many forms of modern technology update here on. the future covered. 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 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 it was as they can boost inflation in the country but used the protective measures like devaluing currencies would be avoided by the g twenty countries helped calm the markets overall some experts say the still of the and of the world currencies are 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. on. of the meetings of course they're not legal they're not legal commitments and they're expressing good we'll and we know very well that income in days for dollars or 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 or 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 the chorus of markets but if occasionally is being almost like said that if we 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 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 trial for five days as. we remember with you without the safety and 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 that 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 the 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 emergent conference like china like india who would like to play their role 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 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 i do all the jail with 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 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 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 peanuts if you want to make experts cheap the u.s. its longtime major pawn and is now criticizing other countries for formal invasions example meanwhile economists believe it's the united states that caused currency wars in the first place by printing a lot of money now the chain of currency devaluations are believed 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 stand. while observers say that china 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 and it'll 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 policy is it true that the reason for that is is that the u.s. was actually insisting that china gives an appreciative r.

i would say i would say it is a reflection of the understanding by chinese authorities of the situation that she's read or what chinese yuan affects the global economy and affects warble imbalances and of course china would not like to be the card where they're 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 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 dupion

recovery is in the best interest of china we express our concerns as regards reason to worry about this because it's concerned with the possibility of the co. this would be destructive as would be in the form of trade 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 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 constancy of 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 exhaust their domestic anomic policy because previously they were making decisions taken 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 affairs. labor effects employment effects the growth of the quantum in new york when asia in africa in north america and china needs to become the one of the call police is in the global game so and there is of pause in favor of all chinese comparable populations of

business or 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 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 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 a medical authorities just to establish to create pressure on porn and and there we would see it we could see there in the years before person in europe a person person wattle person chapin with a well known blogs are quote today united states tried to players know the play try

to persuade china saying ok look guys look on the wall more globally you have to recognize that it's not only you'll go not an isolated island you have to take into account all the other day missiles 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 maybe you would better choice there try to learn from the chinese maybe as a bank a little bit of a local is under there they do not want to teach that 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 how the global economy functions chinese unfortunate he even russia even russia i think will have lost little. comfort 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 us administration. because they know more than i know. the director of the macro economics department at moscow higher school of economics spotlight will be back shortly after a small break we'll continue this interview stay with us. wealthy british style. market why not. find out what's really happening to the global economy with my next concert for

a no holds barred look at the global financial headlines tune into cars a report on our. welcome back to the spotlight i'm al green of and just to remind germany

a guest in the studio we had today is said to be a former russian deputy finance minister 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 china 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 large there's a lot of very good if only with the american to me was different but it's still it was economy men haven't changed a lot since the lokpal of yeah even you know no no it is sort of it's ok it's not if you look on the wall hughes the reality before nineteenth century you will see is that the g.d.p. per capita was good to a stable less industrial revolution took place in the united kingdom due to people

cravat i was going where very slow and all economies were localized there were natural economies really there was no not that i chose or here's a huge nation listen or the us federal reserve one of the houses talking to china trying to share their experience while the us 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 you go into the war american government first of all would like to solve all problems that. problem of all nations as well as china as well as russia as well as british to go with 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 really 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 stations so you think they're the us will continue the policy of cheap credit and the price of the dollar will continue to go down of course of course years of missed there should we continue this unless all other countries within g twenty i don't know how many countries should be but net china of cause or should be one of them they should press us administration just to agree upon certain rules of the game because you've missed or find those with a sector of director of the united states tim geithner has signed this declaration or congress who was ignored divination there should be certain commitments on us as well but it's also backfire i mean i mean more and more countries are starting to cut to country by a little deals using other currencies then dollar avoiding dollars in these

bilateral deals and that means that the us is actually by its policy undermining the international position of the dollar as is i would say it's wishful thinking up to now approximately eighty percent or foreign 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 by unfortunately 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're talking only about expectations that currency flows will become a 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 floating corridor recently would you say that it means that russia is somehow teched is some are influenced by this conflict by this conflict between the states and china no more i would know what is your agree with that russia is the outside of this currency wars because share of manufactured products and russian experts is not to be a russian in north by division is corus russia cannot benefit something in the world market because russia is the natural resources commodity is that not affected by the winter you were in charge russia has been very proud of its. courier for the ruble now it's loosing it well at least you know its laws and because there was a pressure on the current russian you propose drawing or the speed of more than thirty percent year to year while it's pretty stable and that of course grades pressure on the bones of payments starts started to sell the functions reserves

what you did mean loosening of the corridor will ruble start falling or rather rising. will forward fall and will be falling in not not fast not continuously but the general trend for the coming years he's a loser. so what should be my preference in the currency where my salary is in rubles so there will be following your say so what should i do what should i buy there lose pounds easy and low lying and i'm going to avoid those who first of all you should not change your strategic everybody even if you talk about savings if you talk about saving 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. doubles for context but just if you plan to why i don't know how. does or how you know 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 will we lose i don't know two or

three five kopeks every day one datable may lose another will may gain well let's see which currency do russians trust the most spotlights. on the other 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 that the gold might become 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 think 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 is the wealthiest country and that's the reason why i trust the rubles because 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 in 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 congress is you should be proud of it but what are the russians you just mentioned why the russian soap's s. by trying to analyze what is. is their best currency for their savings it's not because in the other country in the world i think the local we we together we remember the soviet union we remember empty shelves in the shops and we remember that all the cost not hearsay and you know years enough after wars we remember the

fires devaluation over there over the beginning of the ninety's in ninety eight and of poland they saw russian russian ruble has no long history of ever really it's like a memory and there are only read paul who have their savings in dollars they they managed to save something at least they may look here in wales as well because eve you have simulated 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 ear and visa impaired to 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 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 don't 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 dear the best and there are for a new one. i believe that it's on the move. dangerous situation of this why ministers of one is try to avoid this situation because if any council is depreciating that musique have to address this in your local economy by high inflation. eve this happens of course some goods like gold gold will be for the best value yet here we

come back to jury service 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 but ok easy for me if us is printing cash european central bank is printing gashes russian central bank of printing cash like a certain port of screwed grow in 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 me you know do we get a one man luxury sorry this is able to lay there own 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 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 like. i said.

in india. the. president. beatriz. taj mahal hotel. motel. hotel. believe the. sheraton hotel. collection. made.

in germany. trying to change the country. used to fund terrorists in the north caucasus some. foreign money was the region's recent violence and washington. cia says the u.s. is on a mission to discredit the publisher of the. i don't the top government official. plans to make. a major exports but some pouring cold water on the idea and what's more in twenty minutes time.

live from the russian capital. welcome to the program. immigrants in germany are failing to integrate such is the view of many locals who say foreigners are taking advantage of the country's social benefits and refusing to follow state laws a lot of immigrants raise their children without teaching them german the debate reached boiling point after the chancellor's damning statement that multiculturalism had utterly failed in the country sarah furthur ports on the issue that's dividing a nation. then the language of get an excess. taint had to place. the message to immigrants in germany integrating tough talk from the german chancellor clinch of the.