all. in india oldies are made to believe the move to join. the gateway hotel the grand imperial truly told us to.

sit don't need to go publicly and run to the kennel was her job as a retreat. the emergency deal to avert a debt crisis has been approved by the lower chamber of the u.s. congress narrowly escaping a devastating before. the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to impart a national crisis. global. self-imposed budget collapse but confidence in the u.s. reputation as the world's creditor has been severely. russia says a u.n. action could help to bring an end to the violence in syria warns against excessive measures that could lead to a libya style intervention but stressed the e.u. and american sanctions being enforced against damascus are only making that as well . and the voices of tens of thousands of anti-government protesters in israel

calling for the prime minister to stand down going on reported by the international media. business the u.s. lawmakers are calling together a deal cut spending and avoid a dead default the process inspiring little confidence in the markets. this is. a global news. welcome to the program. the lower chamber of the u.s. congress has passed a last minute deal to prevent a devastating full scale default after a months long political confrontation the only remaining hurdle now for the legislation is the approval of the senate that's expected later on tuesday. you can find off now is reporting from washington not

a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it averts the self imposed potential crisis of a u.s. default what we do know in this legislation is a does sort of cut spending by about two point four trillion dollars over the next decade what that means in the short term for the u.s. economy is potentially a lot of stifling of growth now we have to keep in mind that the unemployment rates are still astronomically high at nine point two percent and so a lot of economists are saying this is not really the time to be cutting the spending this whole battle over the debt limit is kind of a proxy war an ideological proxy war between the republicans in congress and the democrats in congress and we have to keep in mind that the two thousand and twelve election is coming up for both the congress and of course president obama and a lot of political analysts are saying this is just another way for the republicans to try to embarrass the president to make them look bad the irony in all this is

that neither the left and nor the right really liked what came out of the deal at the end we saw one democrat said that this is a sugar coated satan sandwich you look at the bun and nobody likes what they see that and of course by creating the special commission that will sort of figure out where to cut spending over the next few months that issue is still going to come up right in time for the elections so no one really wins in this deal. from washington while the compromiser greed in the u.s. capital comes just in time to prevent an immediate catastrophe financial analyst mike sky's a believes it won't be enough to persuade ratings agencies to let america keep its precious aaa credit score the u.s. treasury bond market will be downgraded it will no longer carry that simple a rating no matter what they decide and this is exactly what wall street banks want you don't make much money trading aaa rated u.s. government debt most of the economy in america over fifty percent of the economy is

tied to investment banking and wall street trading so they control the g.d.p. for them to continue to make money they need to look for new business new revenue is turning america's aaa rating to junk will make them many many billions of dollars in fees it's just simple economics and simple business just follow the money the folks on wall street have the american public by the juggler and they've got to keep squeezing and so they end up putting another fifty or sixty million of people permanently into poverty and just destroy this economy what obama needs to do if you're working in the interest of the people would be to nationalize j.p. morgan and goldman sachs immediately fire these crooks and start all over again because you've got a predatory monopolist down there on wall street who is interested in wiping out the middle class for a quick buck and that is tyranny all right and for a european perspective on america's a budget struggles and in just

a moment we can cross and live to economics professor patrick me from the cardiff business school thank you for joining us today and just getting your piece in final preparation we just heard the opinion that fat cats on wall street are actually benefiting from the u.s. economic struggles so globally speaking who else could be cashing in on america's pool crisis management. well i mean capitalism is a system whereby people make bad and that's what keeps liquidity going so i've no idea who could be making money people could be losing money people could making money according to the bets they made so i don't think this is a very. profitable line of enquiry really because we don't know now if the criticism of the us a budget deal mainly targets the lack of a long term solution i figure saying that this is only a six month solution when will washington take on the bigger picture in terms of its rocketing debt thing. well you know it's a long term problem of any democracy that it makes

a lot of promises to people and when people get older those promises have to be kept all dishonored you know and that's a long term problem of people getting older and big promises having been made and that's true of most democracies and in fact most countries these days advance countries have this problem of people getting older and having to think about how to deal with that pensions and that medicare and all those things so this will be something that will run and run until the u.s. reaches some new consensus about what level of taxation it can afford and what level of benefits you can afford to give people as they get older so it seems or they might be poised to slash a lot of benefits in the public sector but i let so let's look at the broader scope of what you think today's action in congress means for the struggling economies in the eurozone. well i think the eurozone has its own problems and frankly this whole issue of the u.s.

has been blown up huge really out of proportion because of this internal debt ceiling that they created in order to make sure that they had these crises and force themselves to confront their problems but actually it was all well known that this would be resolved the longer term problems remain so the euro zone's problems remain just as they where they are that germany and in particular is not willing to pay for the problems of greece and portugal and ireland and spain and italy and those countries really can't afford to pay the interest rates for that germany and france and others have said for the loans they're making them to so called bail them out so their internal contradictions in the eurozone which will take a little time to resolve and i think will be resolved by the breakup of the euro and greece and portugal leaving the euro at least for quite a long time there are many analysts indeed that for see the upcoming graveyard shift of the eurozone that is faltering and has been for some time but let's focus

on america who could replace the u.s. if it proved to be incapable of keeping up with its role as the world's creditor who is next in line. well the question about the us is a question of dynamism i don't think anybody needs to replace it but what we can't afford to lose is america's dynamism as a technological leader and innovate in economics world capitalism that's that's what we can't afford to lose it's not a question of imperialism or things like that it's a question of economic dynamism and growth and i think that america is going through a bit of a crisis in terms of whether it wants to go down the obama road of more benefits higher taxes become a kind of just another social democracy or whether it's going to go back towards its traditional role of a low tax economy with fast innovation and technological leadership that's the big question if it goes the route of obama and more kind of high taxes and

high benefits and sluggish growth then i think the world economy has a problem because it loses its technological leader then with the that the technological leadership will have to shift elsewhere capitalism will have to find a new leader in terms of innovation and dynamism but i don't think i think we're a little way away from that because i think this deal has signaled that obama's strategy is going into reverse and the american people don't want the obama route i don't think this is what's going to come out of this whole episode where you mentioned a moment ago about you know the u.s. needs more growth and diversification but also you're saying that america's financial future is not as bad as some people suggest but so you know about i wanted to raise up some tax hikes on the wealthy and that of course abide by the new you can say neoconservatives and the wealthiest obvious one that was immediately named aid but what about america just simply cutting its defense spending we know that america's defense budget is the size of the entire world's

defense budget combined surely with these awards going on in various parts of the world surely america could save a fortune by cutting back on defense spending and cutting back on his war. well i think that's absolutely true. and that that's really a question of what what what nato will do and what other countries will do in terms of stepping up to the business are policing the world you know if we cannot really afford an america can't afford to be the world's only policeman so what i think we have to look forward to is other advanced countries taking on the sharing of this burden of being the world's policeman with rogue states you know massacring that people or in barking on wars that are very damaging to other nations close by that sort of policeman activity is really what the u.s. has been doing and to be honest it's the rest of the world responsibility to help

the u.s. do this not to kind of undermine them and what we need is more cooperation between the leading nations of the world in this defense area professor patrick meehan from the cardiff business school many things. what are the risk of america's possible self-imposed default has resonated far and wide with global stocks rallying following the house vote but artie's reports despite the immediate economic relief more voices calling to replace the dollar as the world currency are being hurt. chinese newspapers are calling this entire u.s. debt deal debate irresponsible and even immoral so although people are celebrating the fact that this did pass there is a lot of cautious optimism here well it's important to note that asia has a huge vested interest in what's going on in the united states that is held by asian countries china being number one szczepan being number two so confidence has

really gone down here many critics of the deal are saying that this isn't going to do anything to help american unemployment which directly impacts the asian economy as well as you know asia is the manufacturing center of the world so if the unemployment problem isn't solved in the united states that also means that consumer confidence goes down for america and that means that they're not going to be buying exports from asia so that can really impact the people's jobs here in this continent. reporting from new delhi well still to come for you here on the program on our. reported voices. i haven't seen anyone from c.n.n. or from fox news or any other big news channel here and. we also deserve a chance to be heard out. tens of thousands of israelis demanding that their government. say the international media is turning its back on the country's public

. reports coming in of dozens more protester deaths at the hands of government forces in syria russia says a limited un security council action could bring quote good results in helping to stop the ongoing violence in the country however moscow warns that any measures must be restricted to solving aggravating the conflict the security council has held emergency closed session on syria amid reports the government forces there killed over one hundred protesters on sunday moscow has already issued its strongest condemnation of the bought us both sides of the conflict russia has been cautious about international action on syria fearing a repeat of what it calls the violation of the un mandate on libya damascus is already under a set of american sanctions but a former u.k. ambassador told us. regarding the case in syria internal developments in the country will ultimately oust the leader. the economic sanctions are not of

themselves going to bring down but what will undermine him over time is the fact that the economy is collapsing it is a truism of syrian politics that if he loses the sunni middle class support from damascus and aleppo to a lesser extent. he will not be able to maintain his hold on power and when they see that the road he is leading them down is leading to economic disaster then they are more likely to turn against him the moment he has talked about reform but not done anything he's talked about checking the security state but in fact as unleashed it i don't see that intervention militarily would be anything other than disastrous within syria all syrians would object to that would be the one thing that might unite all syrians behind the government in fact. so i

don't see any prospect of it meantime western officials have ruled out military intervention in syria but economic sanctions against a massacres are being stepped up middle east expert joshua landis things these measures will eventually backfire on the syrian people. all of the syrian opposition leaders who have met and elected executive committees have all demand that there be no foreign intervention now of course foreign intervention is a very broad and gray area there is the alternate dimension like libya but there is also economic strangulation which could come along the united states already has sanctions fairly severe sanctions on syria the west feels it needs to do something it doesn't want to stop trade you know we've tried sanctions in iraq in iran. they haven't worked very much and when they have work they starve the people not the government and that's the danger of sanctions they feel good because you feel like

you're doing something and you could tell the opposition you're on their side but they in fact they often hurt the people you don't want to hurt and we're following all the events taking place in the middle east where the unrest continues and you can follow our events that are people can get the latest news updates and videos of course i waiting for you there right now on our web site. the police clash with activists over the long lasting demonstration on cairo's to or square trying to disperse those angry at the interim government probably lack of political improvement. also on our web site altie dot com a hacker group who hijacked the twitter page shortly norwegian mass murderer and there's a pretty big claim in the breach was an attempt to undermine the killers of online posts and ideological standards. and a wild west meets the east in russia where people turn into cowboys and indians for the start of the annual cowboy fest.

with r.t. live from moscow now the suspect arrested in connection with an explosion that took place at a kindergarten in eastern russia which left one girl injured has confessed to the crime the blast wounded a five year old pupil who noticed a small box decorated with a ribbon on the terrace of a kindergarten in the city of moore reports say the bomb was packed with nails and other small metal objects leaving her with multiple cuts and severe burns the local authorities are treating the incident as a terrorist attack schools and kindergartens across the region are now being inspected by police the twenty eight year old suspect is still being questioned or it's all well on the way if you hear and are back to the front line after two decades find out why the u.s.

sealed a multi billion dollar deal to supply russian helicopters to afghan security forces . in israel a main stream media are being accused of burying their heads in the sand over coverage of the biggest antigovernment protests the country has seen in decades tens of thousands of people fed up with deteriorating living standards of staging demonstrations calling for prime minister binyamin netanyahu to stand down but. reports from tel aviv protesters voices are simply going unheard by the rest of the world. tens of thousands on the streets of israel angry. and protesting for change but is anyone listening when it comes to a lot of the foreign media want to see more of an action movie and this has been very violent it's been very hadn't been violent at all it's been very positive. well into week three the largest demonstration in israel in over

a decade and how did a.b.c. c.b.s. and n.b.c. cover it they didn't a younger woman set up the tent while the editors of france twenty four b.b.c. and sky coughed up just a few meager seconds perhaps not even that interesting to. you know back in the studios ok there's a protest well what exactly is a protest a social protest for the revolution it's not the same kind of story that they used to it's not as big and dramatic as some of the bigger revolutions happening around the middle east and i mean isn't surprised by the worldwide lack of media interest he's worked in the israeli press for decades reporting from media both foreign and local there is a box that the international media has put israel in and that is the israeli palestinian conflict or so they're israeli lebanese and syrian conflict and anything that doesn't kind of foot into that. type of of news item

which is unfortunate that just makes hundred wayas and others angry for nine days she's been camping here furious that she can't make ends meet as a university student it makes me feel sad that when egypt decided to stand up and say we've had enough and when in lebanon they decided to say we've had enough the media was all over there i haven't seen anyone from c.n.n. or from fox news or any other big news channel here and it's really sad we also deserve a chance to be heard out on the streets has been done. cornered by some of the people here and optimism to bring down the government in the way they maybe didn't tell his. boss where is the cameras they were rolling nonstop here they. want to see on t.v. . more news now incoming

from israel where the prime minister has announced he is ready to discuss israeli borders with palestinians when you minute netanyahu has agreed to negotiate a possible return to pre-one nine hundred sixty seven territory lines from has been occupying land in the west bank where palestinians hope to build their own state since the six day war over forty years ago peace talks over borders have been stalled since last september due to construction of jewish settlements in the area . afghan officials say at least four people were killed and ten wounded in a suicide bombing in northern afghanistan when an attacker blew himself up at a local guesthouse two other insurgents broke in to police in a two hour shootout this comes just. two days now after eleven people were killed in an assault on police headquarters in the south of the country. twenty six people were killed and dozens more wounded in pakistan city of karachi in the past twenty four hours during ongoing political and ethnic clashes identified many were reported setting fire to houses and vehicles police say about two hundred people

were killed in karachi in july alone the city which has a long history of ethnic and religious violence has deployed additional police and paramilitary troops to tackle the unrest. japan's energy operator tepco has detected the highest level of radiation at the fukushima nuclear facility since the monster quake and tsunami hit the plant the reading taken between the first and second reactor buildings registered at levels considered to human health the government and the company that say that they were. on target to bring the reactors to a safe state of shutdown by january tens of thousands of people meantime remain in temporary shelters after a no go zone around the complex was in force. a legendary russian military helicopter which has been in service for decades is coming back to the front line in afghanistan the u.s. has bought over a dozen choppers from russia for the afghan security forces. reports on this.

i'm done it is the nickname soviet soldiers gave to the strong sending wind over afghanistan over twenty years ago they regarded as their main enemy as they struggled through air missions over high mountains in extreme weather and now it's you see these the soviet designed and my seventeen which made its name as afghani survivors. do you consider the engine if this helicopter i mean not to be the most advanced but it's well protected from the destructive sounds unlike many of its alternatives is very powerful and perfect for the extreme climate of afghanistan it will be able to operate here for a very it's twenty five years so if you. the u.s. led mission in afghanistan will end soon when nato troops go the only seventeen will make it come back to face the afghan is when it's once again russia will ship twenty one helicopters to afghanistan to help the country's security in years and

pilots work together to perfect and ease operating of m y seventeen and while it seems quantum physics to me afghan pilots already familiar with the machine many of them trained under soviet air force instructors even now twenty years later speak perfect russian you know. i graduated from a pilot school in the russian city of christendom in one thousand nine hundred four when i got back to afghanistan to serve in the army we only had soviet aircraft those machines were the best to get to the most difficult and isolated parts of the country with. the u.s. will be for afghanistan's m.-i seventeen's something which put american helicopter manufacturers in a spin with congress using russian military aircraft the countries had plenty of helping hands after the soviet invasion russia provided millions of dollars worth of military hardware and wrote off a ten billion dollars to the us or so are now that the deal was sealed russian

engineers are working to assemble the helicopters the m.i. seventeen is proof that military might doesn't always mean advanced technology as long as it's got the tough stuff for the terrain and they've beaten they have got it's wins before and then we go r.t. doesn't. start another twenty five minutes past the hour here in the russian capital time now for korea the latest in the world business. our current financial news here now to thanks for joining me but as you major in all this taking gas from to court to get a lower price for us and gas the company are you spot prices are up to fifteen dollars cheaper or one thousand cubic meters than the current long term contract it has with gas probably that's about a quarter has a modest. gazprom says it already revise the gas price for last year at that time and persuaded gazprom to sell a part of its gas at a price linked to support prices which will lower the gas pumps contracts now eon

is asking for further reductions the company's suffering had a losses due to the gap between the gas problems price and that's all the european markets which serves the gazprom wants to stick to its long term contracts which it says provide security for customers at only a small premium to support prizes the talks have lost to the for more than a year now without success so now iran is taking the matter to an arbitration court lawyers we've spoken to suggest it is it will be in the courts power to instruct gazprom to decrease what it charges but it would need a contractual reason to find in favor. lawmakers in washington are still calling together a deal to cut spending and avoid a debt default while the plan seems to set to go through the process is inspiring little confidence in the markets investors are concerned is just a short term fix and the ratings agencies will see through it. i think that the

market today focus its attention all. being taken by the rating agencies right what will the rating agencies do now some of them for some pretty poor use the rating agency because be more vocal about back. to dry and they say that if we don't see a credible long term plan for. great deal with a really great speech about it i'm not quite sure that we can. really. that's why i said it is a fifty fifty chance that's the that's the most important thing for us. let's have a look at the markets now european stock markets a lower with banks leading the declines. two percent after reporting a one percent rise in second quarter profits banks are also lower with. four and a half percent in london shares of xstrata tumbled over two percent after the mining. profits more than double a similar picture in moscow where both in the

cities are negative territory the r.t.s. is down over one percent while the why six is down point seven percent let's have a look at some individual. energy and banking stocks that had gas from is losing almost a percent while the t.v. is a quarter of a percent down. is supported by positive results the company has almost doubled its profit in the first half of the year reaching two hundred forty three million dollars. but you can always find most stories just log on to our website. headlines up next oh. you're.