because the government first of all. not create the conditions at the beginning of the crisis to fight against the crisis it reacts very late. and on the other hand once the government. what to do. the government the snow doing their job properly look it's all good in the node obama who want people to wake up otherwise we'll just become slaves to the system who want to be treated as humans and they believe they can make a difference imo the government has to change things because they don't have a choice. with greece in shambles and neighboring portugal trashed by the rating agencies spain is facing not just a financial but a deepening social crisis members of the so-called indignant marches say they want their dignity preserved but whether their calls will be heard is a whole another issue even those core tea madrid. meantime greece has had its

credit rating cut yet again and its meaning is now hovering just above the level that would constitute a default attempt by the government that you solve the financial crisis saw thousands take to the streets some turning to violence and a financial analyst max kaiser agrees with the protesters who feel that the latest one hundred nine billion euro bailout will only plunge the eurozone deeper into trouble. it increases the amount of debt it increases the amount of debt in the eurozone it is increased of the amount of debt in grace so this is a plan cooked up by bankers to repackage risa characterize. debt that's what they do and it crowds out the real economy so if they think that this is going to help the economy grow their way to a position of paying off this debt or paying the interest on the debt that's not going to happen because by giving bankers more dead to control the productive part of the economy you are eliminating that part of the economy's ability to pay off

this debt so the banking cancer is just becoming worse in the eurozone and worse in greece running out the banks there but not bailing out the workers or the people who are on the ground so to speak that bailing out european banks they're bailing out wall street banks they're bailing out other banks and so doing they're increasing the debt load so it's making the situation much worse and they're crowding out any ability for the workers in greece to generate enough income to pay off this debt this is consigning the population to debt servitude. let's get some expert analysis on the situation in europe from a financial journalist and author of an overdeveloped joins me now live from brussels. thank you for joining us today the downgrading of greece's credit rating it started back in two thousand and nine and it's still going on where does it end for this country. well it ends where it practically arrived at on july twenty first

that is in default because if you read carefully what has been decided on july twenty first being the latest european summit greece is now effectively in default because if you calculate on the net present value of what private bond holders will given you amount to a value reduction of value reduction of around twenty percent so greece i think you're saying effectively that greece is already in effect in default so tell us what is the point of this second one hundred ninety billion euro bailout if it never reaches the man on the street what's the point well indeed that it is certainly not the point that's the point because this package will certainly not help the greek economy the greek economy needs growth and since you're in the midst of a very bad recession you are obliged a country to cut spending to increase taxes then throwing some money at it is not

the solution let me illustrate it if you do the met correctly on what has been decided for greece to. gain in terms of the annual budget for this year and next year in the year after is less than one percent of g.d.p. so if greece started out let's say with a deficit of ten percent before the decisions of last week it will have a deficit now over around nine percent it's nice to have but it doesn't solve the situation in any way that there are some say they are incredulous. that we used to bail out why do we use the word bailout i mean isn't it simply banks paying banks fat cats fat cats. well indeed that a correct analysis of the situation we're bailing out the banks and we wouldn't be that soft i presume with greece if there wasn't the problem of the french and the german banks not only of these two countries but of course they are the major

players in this if they were in that vulnerable to the greek situation indeed we are throwing money at the banks through greece now it's spain looks to be next in line for a costly rescue package while the e.u. struggles as we know to keep the euro afloat with bail out of portugal and greece how much longer can europe keep affording to pay it to pay out. well the limit of all this is of course the preparedness of the major player in all these germany to come to put up the money and from what we read in the german press from what we hear from an increasing number of german politicians it is quite obvious that the limit of what germany's prepared to do. for the euro is coming to an end and my guess is that the end of the day and it's hard to say when that will happen it will be germany that. turns out the light on the euro well as you

were mentioning germany there is a good point you raise germany has been shouldering a lot of the broad all bailouts for the eurozone it's just been shoveling cash out there and also now germany is shuffling cash to the libyan rebels are germany stretching yourself too thin. without beyond any doubt and of course the germany certainly the country inside the european union with the deepest pockets but as we see for example now also in america or in the united states even the deep pockets of countries with very deep pockets there are limits and certainly germany will be approaching those limits those limits quite rapidly go on like things have been going on for say the past two years now spain and italy who are both in trouble much bigger economies than those of let's say portugal and greece now if they go down could they drag the rest of the eurozone down with well let me illustrate that by referring to the s s s the famous stabilization fund if you do the numbers correctly what is in this at the moment then greece ireland and

portugal we are already at the limit of what this fund can do at the moment if spain falls you need at least a three fold increase i repeat the three fold increase of the amount that could be raised by disunity instead of as asian films and i'm not even mentioning now italy so this gives you an idea of what is. volved here and indeed the fall of spain would beyond any doubt also mean the fall of the euro you have written a book called the end of the euro do you really believe that a common currency has failed in europe and if so then where did it all go wrong well basically it all went wrong from the start because there is a substantial amount of good economic theory and practical experience the united states is a well functioning monetary union that shows you the conditions that need to be fulfilled to have a well performing monetary union you need to have

a political union and you need to have flexible markets certainly flexible labor markets in europe we don't have a political union and we don't we certainly don't have flexible labor market so from the beginning. there were huge weaknesses in the whole construct of the monetary union in europe and my big surprise is that it has lasted ten years before through this kind of crises these weaknesses came to the surface of what felt editor in chief of trends a business magazine live in belgium many thanks indeed. well i mean i'm in the us the republicans and the democrats failed to strike a deal to resolve the nation's debt ceiling crisis over the weekend but secretary of state hillary clinton who is in hong kong during a tour of asia says she has no doubt an agreement will be reached before next week's deadline economic analyst martin indyk says that the u.s. is so deep in debt that america's a global influence is being undermined. the united states is essentially bankrupt

in any case if they increase the debt ceiling actually as the chinese rating agency dugong has been saying even if they find an agreement and then increase the debt ceiling where it's going to be as a result more debt so the u.s. are starting from five trillion of debt and that's just the nominal national debt but it's not even the fiscal deb including all the unfunded liability is really a looking at two hundred trillion us dollar of it's absolutely beyond control and all timidly it appears that the united states will be facing a sovereign debt crisis and we suggest that the investor should stay out of the region and look for a look for gold silver commodities to help protect against what's going to come there's a lot of talk always in the rest of our the dangers of china china's military growing and how much of a risk this poses to asia and the rest of the world but if you're looking at home of the united states is spending on military versus china it's totally disproportionate the u.s. is spending a lot more the only difference is the u.s.

is doing that is borrowed money and they can't afford it so they have to end soon but if you're just looking at the plain facts who has been attacking more third countries clearly it's europe and the united states who are meddling and a lot of other countries is far more serious consequences so far. on the way for you shortly fighting the onslaught of a deadly drug but the crackdown on the substance known as crocodile could also affect innocent painkiller users here in russia. the man of facing a twenty one years in jail for carrying out friday's twin attack on norway is due to make his first appearance in court to explain his actions the session will be closed to the public and to the media thirty two year old or under is a battering i believe it has admitted responsibility for a bomb attack in the capital and a massacre at a youth camp however he denied any criminal killed ninety three people reportedly lost their lives but police say that number could be revised downwards the bomb and

also targeted buildings connected to noways governing at labor party and they used camp on the toy island was also run by an investigative journalist tony ghosting tells us that the case highlights and new brand of terrorism. anders breivik thought he was some kind of teutonic knights from medieval times because he's echoing the kind of crusader attitude and it's a very strange version of christianity that he. is he says he's a christian i don't think he is maybe the same kind of strange version of christianity that bush and blair have been coming up with over the last ten years or so so i think that this is actually the tip of an iceberg is actually quite a lot of this neo nazi activity out there and now i think the antiterrorist or thought is right across the world we're going to have to take this brand of terrorism much more seriously and particularly worrying is that he was a freemason and but even as declared that he was a freemason i would imagine that the norwegian police are now going to be talking

to other all the other members of any masonic lodges that he was in because this seems to be the place where this kind of fake christian rather nasty racist ideology was cooked up i would also add that it was interesting that the police said they never come across him before the norwegian police but i wonder very much i wonder if the secret service in norway has been watching him because it was very strange that when he was first arrested on friday the police actually called out his name to him now it was very i would be amazed if they would have actually known as they first approached him what his name was i would have thought that from the arrest point that's where the investigation would have started from. and this afternoon norway honored the memory of those killed with a minute's silence the solemn ceremony was attended by the prime minister and members of the royal family here in moscow meantime hundreds of laid wreaths and lit candles at the norwegian embassy condolences and messages of support also being

sent to oslo from all around the world. all of a more in depth report and video footage of friday's double atrocity just head to our website when you're there you can actually take the time to tell us why you think the attacks like this take place the minutes of a look at the stats now are the majority believe that no society is protected from the acts of mentally ill people thirty eight percent think the killings are a result of failed cultural integration policies twelve percent blame the right to bear arms and the rest of you say that it's down to the performance of the police show your opinion at r.t. dot com. germany has decided to weigh in on nato's campaign in libya despite abstaining from a u.n. vote on military intervention back in march but lynn says it's loading eight hundred million euro to the rebels for quote civilian and humanitarian purposes the germans initially opposed action in libya but chancellor angela merkel has since expressed hope that the nato mission succeeds collins also recognized the transitional national council as the legitimate government of libya alone comes as

billions of dollars of colonel gadhafi has assets remain frozen in offshore banks despite the coalition's pledge to give the money to rebels german government consultant christophe horst all things berlin has a vested interest in cashing in on the war. it is really a big question of what this money is being used for first of all who controls that then next nato ever cared for the civilian population in libya i don't think so a group of countries bombing libya and using you really a weapons of course is a group of countries not caring for the civilian population abstaining being. neutral in this case of course was not enough because nato has used the security resolution is a you know free hand to do just anything they want in effect they are fighting on the side of the rebels they're fighting the libyan government nobody knows when nato will decide to you know protect some civil populations and then kill the

government more than twenty billion dollars in freeze assets this money is going to be used to help the rebels but of course that is in a way totally illegal you can't just take money away from from governments and give it to rebels germany wants a piece of the cake to be to be clear germany wants to maintain its fifteen percent of the libyan oil as a percentage of the total oil imports of germany right now eighteen minutes past the hour here in moscow the bodies of all the victims who died when a pleasure cruise just sank in russia's top stand republic two weeks ago have now been recovered the ball gary i went down in minutes on the volga river with one hundred and twenty two people perishing in the disaster seventy nine of world rescued the ship has now been lifted from the river bed and so to shallow waters the hole is to be drained to help investigators establish the cause of the tragedy the captains of two ships that sailed by the bulgaria face criminal charges for

failing to offer help to people have already been charged with violating safety regulations. are now let's get to some other headlines from around the world for you this hour and syria has approved in more allowing the formation of political parties other than the ruling baath party opposition groups have been banned in the country since one thousand nine hundred sixty three military coupe but a four month national uprising calling for the president to step down put pressure on the government to reform the political system however the army continues its operation to crush dissent against the regime detaining scores of people in the capital and in its suburbs. mexican authorities have arrested more than. one thousand people in a crackdown on human trafficking and sexual exploitation the arrests were made throughout the weekend in a mexican northern city of ciudad juarez police say they also rescued a few dozen under-age girls the city is known as the deadliest in the country with over three thousand murders committed there last year alone. pirates have

hijacked an italian diesel tanker with twenty three crewmembers on board in western africa the attack was carried out on sunday in the gulf of guinea off but mean whose navy is currently pursuing the vessel most of the crew are from romania and the philippines with two italians incidents of this kind are more common off the east coast of africa usually carried out by somali pirates. the last a suspect on the international war crimes tribunals list of one hundred sixty one fugitives is to face the un court at the hague on monday. was arrested last week in serbia after seven years on the run he's accused of atrocities during the conflict between croatia and yugoslavia in the early ninety's ranging from murder to religious the prosecution are going to join up on. cheapness and availability have turned a highly toxic coating based drug known as the crocodile into rushers second heroin

in an attempt to stamp out the use of the deadly substance from next year painkillers will only be available by prescription but as r.t.e. go to all of their reports the new law could lead non addicts to suffer instead i must warn you may find some of the following images disturbing. you know why they call that crocodile because its users skin turn scaly before it falls off virtually unknown ten years ago it's a mixture of petrol solvents phosphorous and most importantly cheap medicines containing the painkiller codeine it's now become russia's second most popular drug after heroin to which the cheaper and more easily available alternatives injecting this lethal cocktail will rot a user's flesh in months most die within three years i have only been using it for two months i wish i never started ticking it the government's come up with a simple solution for now i can still buy being containing drugs off the shelf but for next year on words i'll need

a prescription to do that statistics show that nearly half of russians use these drugs on a regular basis the vast majority of them for completing the bottom of treasons so in their fight against drugs is the government going too far as in throwing the baby out with the bathwater. coding is sold over the counter in most western countries but its sales have doubled in russia in five years and many say this is not a coincidence i think it was a mistake to start selling coding without a prescription in the first place by making it the most easily available opiate it spawned this problem yet expert opinion has been divided some believe that this doesn't do enough to tackle the social cause of addiction and punishes innocent consumers. and there is no efficient system in our country for issuing prescriptions so the people who will suffer for the ordinary pensioners and housewives who need those medicines. the drugs then and the moscow suburbs we came

here to ask what the users themselves think about the new law. i don't believe it would change anything those who want to take drugs will take drugs we will buy them from the right pharmacies and if we don't get them to use something else we will always have something to inject. either other of nerve r.t. moscow. all right for more news updates and exclusive video shows go to our website www dot com here's a few of the items we have lined up for you online today. in the cockpit of a plane to see how with lasers risk blinding the pilot and of course in the disasters or possibly disasters during landings. also online today on this day twenty five years ago soviet astronauts. became the first woman to walk in space spending more than three and a half hours outside the ship. and

i'll be back with a look at the day's headlines in just a few minutes but first let's check the business with dmitri. thanks rory hello and welcome to the business update on r.t. there's only second largest utility at us on has renegotiated the pricing of its long term gas contracts with russia the italian guy but he says it might be able to save up to two hundred eighty million dollars now in history and this believe the agreement could have a wider impact on other european operators many of them to renegotiate long term gas contracts with supplies from russian analogy. russia's resuming vegetable imports from italy and hungary in the past few russia's consumer watchdog has

lifted restrictions on eight other e.u. nations including france belgium and that the ban on the verge was imposed early in june after a deadly outbreak of e. coli in germany. u.s. lawmakers are racing against the clock to forge a deficit reduction deal the agreement would clear the way for congress to raise the fourteen point three trillion dollars debt ceiling if the politicians talks are stalled the u.s. may suffer a damaging default but this could in turn spurred demand for u.s. bonds as the chief economist at burbank explains why there was a high probability around as a result of the default in their states is increasing the demand for your state's treasuries because you is treasuries is in the largest market for a low risk that so if you increase closer souses right you basically increase the risk of all in the overall system in all three many

institutions which are requiring by law do increase the number or low risk for us it's in the park follow. second of the markets now is the climbing for the first time in five days that some concern a failure to reach a deal in raising the u.s. debt ceiling may cause the biggest consumer of crude sort of fault light sweet is down almost a dollar brant down one dollar thirty one said it's. gold prices on the contrary have surged to record highs as investors are seeking safe haven assets amid dead just as on the exchanges gold is trading at sixteen hundred seventeen dollars the joy ounces silver is just below forty one dollars. european markets are trading flat this is of course on the failure to reach a deal in the united states on lifting the debt ceiling and a further downgrade of greece's rating that this is all preventing the markets from extending their winning streak and the footsie on the backs of down just marginally

. moved to the russian markets now and negative picture all day long pretty much at the opening of my sixth on the r.t.s. saw a drop of more than one percent may come back from those slightly paring those losses . on the main move as well stocks are down no other stuff like gazprom actually losing one half percent telecom however this better than the market's up one point six percent still despite trading on its own the past couple weeks ignoring all good trends and most depends on the rumors surrounding just how much of the company's been privatized polymath still is up two point seven percent because the gold mine is enjoying it another record high price for gold. as the new trading week kicks off mark rubenstein for metropol i see gave us some names for investors to pocket cash. having seen strong commodity prices i don't expect

that to change in the near future. i think gas from now a is a very interesting name immunity for all in the correction in the past two weeks and with their oil prices back where they had been i think gas promising even then room to run without a name we alike short term and meter armies i think this is a variance opportunity right now and it has had a run up full in their government funds really or given to the bank of moscow and but i think it's going to continue it's still trades at about twenty five percent below has been a bank robbery is next with the headlines on my colleague could either merely come to be here in fifteen minutes going to bring in update.

culture is that so much given to each musician on the market five months on is the condition of the egyptian revolution as it lived up to expectations but just. wealthy british style it's time to retire.

the. markets why not. find out what's really happening to the global economy in these kinds of reports on our. welcome back it's also if you a live from moscow a quick summary now of the main headlines spaniards unite in anger over the government's failure to deal with the country's economic war thousands rally in the streets of madrid spain and meantime has the highest unemployment rate in the eurozone with over twenty percent of the. out of work. the u.s. is struggling to strike a political deal over its own debt crisis with a possible default looming next week hillary clinton has attempted to reassure

asia's markets promising an agreement will be found. the first court appearance of the mastermind behind the worst peace time massacre in norway's history is closed to the public and media on the judge's order. and germany makes a one eighty turn in its stance on nato intervention in libya and approves a hundred million euros to the rebels the campers also in line for a multi-billion dollar cash injection from the international community if and when they hand over the libyan leader's frozen assets. months after hosni mubarak was ousted in a revolution in egypt and discussed whether it has achieved any of the goals the people were really hoping for coming up next in crosstalk stay with us.

and you can see. the only unwelcome to cross talk i'm peter lavelle five months on what is the condition of the egyptian revolution as it lived up to expectations what does people's power mean there today and could the revolution be hijacked during upcoming elections live. cross-talk what's going on in egypt now i'm joined by rula jebreal in rome she's a journalist and author of miral in london we go to now el saadawi she's a writer and political activist and often referred to as the mother of the revolution and in zurich we crossed the lower end zone but you know he's an.