state's prized top aaa credit rating has been cut for the first time ever standard and poor's has dropped america's ranking to double a plus the destructive force is the crippling debt which congress has struggled to agree on how to tackle with only an eleventh hour deal to raise the amount allowed s. and p. says that's just not enough and falls far short of what's needed to stabilize the government's runaway borrowing but the obama administration says the analysis is way off and will damage any recovery parties at least you can find off as more from washington. well it really is more than anything a huge or symbolic and unprecedented blow to the united states to its status as a safe investment basically what this credit rating lowering does that it is it really raises questions about the validity of the united states and the ability of the u.s. politically to get its financial house in order so to speak the record here for the american people for the u.s. government could be severe now while this only takes it down from aaa to double a

plus with a negative outlook threatening in fact that the rating could get lowered even more in the next two years what it does is it potentially is that is the message that the united states is a risky investment that could send interest rates going up for the federal government and because other borrowing costs are tied to that that means mortgage payments could go up mortgage interest rates can go up car interest rates can go up and really the rest of the u.s. economy could be severely affected now one thing that we do have to keep in mind here is that the obama administration had pointed out that the s. and p. had made an error of about two trillion dollars in. projections in releasing that information now the s. and p. doesn't make these decisions based on any sort of special information they really it really is a political reaction based on facts that are available to just anyone and so the other thing we have to keep in mind here is that these same credit ratings agencies essentially allowed top ratings to continue in the united states at

a time when we were investing a lot of money in these mortgage securities that essentially in the poll lapsing and pulling down the u.s. economy with it so they don't really have all of that much credibility in the eyes of the world market still however we don't know what will happen come monday when the markets will open and if those interest rates do rise there could be a root ball at this very unstable economic time here in the united states with the passage of this debt deal the u.s. government's hands are essentially tied in terms of stimulating. economy in terms of any sort of new spending that could boost growth we saw g.d.p. growth had stalled to almost a crawl in the second half of the year we saw on top of that the jobs report that came out on friday for the united states while it was somewhat positive but actually showed negative growth because it means that more people here in america have given up looking for work so politically there's really not that will in washington to do what's needed to stimulate growth and financially they simply do

not have the tools in their possession in order to improve things here and so while these credit rating agencies may sometimes be accused by some financial experts of having missed the mark long ago these small tiny effects in terms of higher interest rates could really really cripple what's already seems to be a worsening recession here in the united states. reporting right meantime the u.s. based business expo george crew he told us that the critical reduction is due to political bickering on capitol hill which is bringing everybody else down. it's a strong message to the politicians in congress as well as the white house said they better deal with this problem seriously and nap play politics it's really matter a matter. can the u.s. afford to pay that debt because us it always paid a debt by printing more money that's been historically the case what's different

about this time is that the members of congress choose to strong and hold the debt ceiling hostage to other issues which are other issues having to do it with taxation and spending and title amendments and so on so forth and they're not able to reach any of coal or on those other issues and therefore they decide to play chicken or traits you know play brinksmanship on the element national debt and i don't think they fully appreciate the damage that this move has done to to the prestige of the united states and of the ripple effect is spreading fast to china strongly demonic the united states sorts itself out and thus time soon beijing's got a major interest because it's america's biggest creditor by a long margin even so china is making it clear that maybe it's time for a new reserve currency instead of the dollar. is an asian third largest economy

india with more on the region's concerns. asian markets are tumbling they were tumbling on friday obviously we don't know what's going to happen on monday in specific reaction to this news but many analysts many financial analysts here predicted this especially after the u.s. debt ceiling debate that took so long and in many ways is what people are saying led to these lower approval ratings i guess you could say so the markets have tumbled here people are losing confidence in the american economy obviously there are things that soaring there is thing a lots of decisions not specifically being made when it comes to that two point four trillion dollars and caused a lot of people are wondering if it took the u.s. this so long to come to a decision just to raise the debt ceiling how much longer could it take to actually figure out specifically where to cut and asia has a very vested interest in this if you think about what these ratings actually means that means that the united states won't be able to repay

a lot of their loans in asia actually hold three trillion dollars in the united states alone so people here are watching what's happening in the united states very closely. it's pretty shrewd reporting right what i mean talk about asian investors are getting on the back of what's been a tough week for america's economy jim rogers says the. all the asians already know that america's got problems all of us are already moving out of u.s. government bonds everybody in asia knows that we never got out of the first global recession unemployment in america still higher than it was in two thousand and eight american debt has skyrocketed and gone through the debt to the roof americans in worse shape now than it was before america spent a lot of money and the people who got that money are better off but the overall situation is much worse america's quadrupled instead america if you take in that consider the things that they are guaranteed they printed huge amounts of money you

know the world has gotten worse the world hasn't gotten better we will either inflate people back in worthless money we will in trade it away we would change the rules we would put an exchange controls over insure the us will default that's why people are moving away from u.s. government bonds because everybody knows that the us is in serious trouble and the debt situation is getting worse and worse not better and better well the downgrade came way too late to hit europe's stock markets which operated taking a hammering this week being battered by the eurozone and america's debt difficulties don't you bushnell is now a monitoring all the events on the phone out in brussels. we used downgraded trust in the rating agencies to junk status. as the agency admitted a two trillion dollar miscalculation when deciding this downgrade they claim to have the world's best minds working for them hasn't really surprised people here because most know that america's has had unsustainable that for many years now well

everyone apart from the rating agencies it seems and the day before firms collapsed in the credit crunch they still had aaa ratings on those companies now that made the agencies lose their reputation but people lost their whole savings and triggered the world recession that followed e.u. leaders are also furious about s. and p's double standards they held long talks with the white house before this decision they briefed them about it when it would take place what would happen that's allowed the white house to prepare a smooth response to the media and even question the agency's judgment none of that happened last week when the agencies graded the european union countries and their ratings now that suggests that the agencies are to say the very least and as a result the european union is creating its own agencies will do this downgrade for americans who will see themselves having to pay more more interest on their loans

and having to pay more on their debts is bad really for everyone around the world who lend money to america because it raises the risk of not getting that money back . all right now to gain more insight on this i'm joined live in the studio by the chief economist from a daughter bank in russia you got to love want to thank you for joining us today how would you assess the standard and poor's reading of america's financial credibility are the ratings of the rankings rather they were liable for investors well i think there were certainly a lot of questions posed to rating agencies about the reliability of the ratings during the crisis after the crisis and i think one of the reasons we're seeing this downgrade is precisely the effort of the rating agencies to bolster their credibility and really fundamentally if you look at the economic foundation of the problem yes there are causes for concern both in terms of the

level of u.s. debt and the outlook on the path of u.s. fiscal deficit but when you talk about credibility back in two thousand and eight before the big crunch on wall street some of the credit rating agencies are still saying that a funny way of freddie mac. were double triple a at the time pretty much knowing that they were going to crash exactly so they were behind the curve and now to some degree we're seeing that some of the european countries we're seeing to some degree with the latest these of you the u.s. . the rating agencies want to be a bit more ahead of the curve and to be whistleblowers not. only we act to the crisis situations that have already happened ok so we've seen some piece reaction here what about moody's and fitch is it possible they could now change or change their ranking it is a possibility because we know that some of the rating agencies do have

a negative outlook on the current waiting for the u.s. so that implies potentially within within. a year or so they might revise. the reading for it it's possible that some of these rating agencies could be in bed with the government for example this s. and p. report it came out late on friday night right into the weekend it came out late enough not to have an effect on one of the worst weeks in two years on wall street is it possible that some people went to the white house and said we are going to downgrade you and the white house said well ok fine but then delayed the announcement until the weekend so it kind of goes under the radar well i don't think something like that really can go under the way here clearly we're seeing a lot of commotion in the markets across the well. in terms of the comments from much of us across the globe so i really think that probably there was some rationale for the timing of this to be after the markets close for the public for

the observers today just. the stuff on the part well then well then you come and you know what's what's the next step after digestion because as you say you know the worst week in two years on wall street so they delayed the delay the announcement of the end of the week it doesn't affect the stock markets so one day what happens on monday well on monday i think we will see quite in the fabric reaction in terms of stocks and i think also with regard to the currencies we will see pressure on the dollar i think for sure and then the next question then the next possible round of response from financial markets is what happens if countries such as china for example start to diversify their reserves and earn well that just did you bring me to my next point the other biggest boy on the block china the biggest holder of america's debt what threat does the s. and p. move to china and other asian governments that hold such vast amounts of u.s.

debt and piles of dollars well we've seen already comments from some of the chinese economists about. they are concerned about the downgrade and what they do expect. is steps from countries such as china to more actively diversify their reserves towards other currencies to some degree yes we can say that what happened with the yes and p. downgrade is to some degree the undermining of the role of the dollar as the world's reserve currency now some of the experts we talked to today believe that the u.s. never made it out of the first crisis let alone out of a second recession how do you see that but i think the key criterion here has to be growth performance and in terms of growth performance we've seen pretty strong we bound in the u.s. and i think. really fundamentally there was enough for it to address some of the underlying ills in the corporate segment but some of these ill

some of these problems have now. gone into the sovereign segment towards the sovereign balance sheet towards the budget. and this is the potential second round . which may be a second phase potentially if no corrective action is taken by the u.s. by europe visa via their budgets but i do expect that in the coming years we will see more corrective action and i think this is the only possible feasible path for for the developed world bar and finally as i'm running a bit low on time here with the down grade in the rating of america's our credit performance here aaa was down to double plus now any implications for russia i think we will see negative implications in the short term in the short term certainly a downward pressure on the stock market and to some degree given the fact that this downgrade will exacerbate fears and risks in the markets this will lead to outflows

from emerging markets and russia as an emerging market this will have a negative effect on the short term i think russia's assets most notably on the stock market. of all of our chief economist of torture bank here in russia many thanks. well i one small debt for a. black hole for a government. difference between. those. much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely the opposite of that don't you trust yourself to do the right thing and within your means i do mean dad so that i can pay it off more views on why people on government's credit. and a painful. top secret document shows are british officers were encouraged to how much

they torture prisoners depending on how much information they could get. discontent in israel is showing no sign of abating with protesters planning a third weekend of social protests one street has already been a renamed by. square that was the site of the uprising in egypt and. reports the number of protesters is steadily on the rise. today saturday tens of thousands of protesters will be taking to the streets here in tel aviv as well as and several other cities around the country where they'll be holding mass rallies against the government they're hoping to top of the one hundred fifty thousand nationwide who took to the streets last weekend this is the third saturday in the road that protest all be held they are united under the ban that the government has abandoned the people and the central message coming from organizes is that the people are taking the country back now the plan tonight is for demonstrate just a monster of what's top would have all the way to the british consul maybe

a tent city has been established they final destination is not far from here at the curia defense compound and they will be holding a mass rally because into a number of demands on the government of the civil speakers several popular singers also plays and in the last week there have been a number of smaller demonstrations that have been held full civil law was earlier this week taxi drivers block told a number of main roads they were protesting against the high cost of diesel there was also another protest among teachers university professors and students and they were united under the banner we education for all and another demonstration just yesterday we hundreds of parents with strollers took to the streets and they were protesting against the wizened costs and behind costs of having children failing as well as many prime minister binyamin has been surprised by the massive support of these demonstrations and his government is still struggling terms of how to deal

with them essentially what you can hear some people here in israel saying is that in the tanakh it was so obsessed with gathering intelligence for the first solo from the mediterranean that he missed the opportunity to see what was happening here under his eyes. see tel aviv. meantime the knesset member daniel says that prime minister netanyahu doesn't realize the protests are rooted in public right and not from political life. people here are yelling shouting are sleeping in the street i'm talking about tens of thousands you won't see the police shooting or beating the protesters it's very polite it's very strong vested very polite as to how to change the policy of the government and how to have a better life in israel for the time being they have not been any wounded in the last three weeks i don't think it will be different in the coming weeks this is a strike of history professionals it's not of unemployed people we have almost no

unemployment but you do everything and see if you cannot have a decent life this demonstration has no right wing or left wing views it is most of the mainstream israelis who feel so bad about how they live and they go to the street like tonight and maybe next week and i don't think mr netanyahu gets the right view of these demonstrations he thinks that political parties are behind it and he's wrong. and on our website dot com get more reports right from the epicenter of the demonstrations in israel activists and journalists with hardly any global media attention the government can easily ignore the pressure to improve living standards much more of the story online at r.t. dot com.

all right now twenty one minutes past the hour here in moscow you with arts he predicts intelligence services have allegedly been violating international law for almost a decade a leaked top secret document suggests agents were permitted to use information taken from prisoners under duress overseas offices were asked to balance how much they expected detainees to suffer against the value of the information they could get they were also given a political protection from prosecution human rights activists are demanding an open and fair inquiry but any questions will be met with a wall of silence. from amnesty international explains. that there are a few key reasons why the inquiry is unable to do its job properly the first of these is the rather shocking level of secrecy that surrounds the inquiry much of the inquiry is going to take place behind closed doors and no information will be released to the public without the say so of the government which is it's very

worrying for an inquiry they're supposed to be getting information to the public about what's been going on very much they will say that there will still be an inquiry which is open and thorough and transparent and i think if there is a full open inquiry and lessons are learned from that then the u.k. can restore its reputation in the world by then making sure that what it does in the future and the lessons of the part. it's a good to have you with us on this saturday watching r.t. live from moscow and next we travel thousands of kilometers east of moscow but millions of years back in time. and the time we're in the far eastern are more reaching its rich geology has an abundance of pressures valuable metals which is of course driving its industrial expansion but artie's alice habit has met one team whose treasure lies not in gold

but in burns. this week the rustic lace up team is coming to us all week from the far east and more region now for many this region's distinctive jews who its proximity to china and its smallest reserves of war materials and natural resources but the one paleontologist and his team it's the ancient dinosaurs discovered deep within the ground here that will put this region firmly on the map. u.-t. beloved ski is a man obsessed with the power of a bygone age when dinosaurs rule this part of russia he may have been born in the countries that western areas but it's the far east untapped jurassic history in the end to which he has devoted his adult life to mr necker very near to this side to be known since about nine hundred forty eight i mean there would have been unbelievable number of bones are buried here and i think we'll be digging for at least another two years or so they're literally everywhere here the ammo region is

looking at one of the few functioning archaeological sites only here can a site boast of having produced a complete dinosaur skeleton that discovery made over a decade ago led to the full recognition of a new breed of dinosaur a lot a ton or giant swan a twelve metre long herbivore found almost exclusively here and it was you the son who first stops at the fragment of tail bone sticking out of the father and son went on to make paleontology history a van has since followed in his father's footsteps it's painstaking work requiring patience and skill in equal measure one who discovers along the way we begin to remove the ground around it probably forage for your your hand and a show where a girl for very slow because zero can be more balanced in the ground around it. well i visit. yuri and his team have been excavating this site for the past three

years and already they found well over one thousand dinosaur bones approximately sixty five million years old but they believe that the bones of hundreds of more dinosaurs i get to be found within this small plot alone i'm told that these will most likely be fragments of another giant duck billed planting unique to the region and named in its on the hour more saurus is another previously undiscovered breed credited to team the lot ski which includes natalia also as scientists it was she who came up with both dinosaurs names as well as taking day to day charge of running the region's only paid to the board tree and museum each new discovery mist be carefully catalogued and examined the aim is to inspire the next generation of dinosaur how much of this was not on ensuring the family's feet don't go i'm remembered for that. line up here you can see

a photo of your blood ski at the excavation site and here you see photos of i'm going to source this is the skeleton of an m r saurus what a strange looking reptile isn't it and to learn from the follies of history charles miles and this is charles marsh an american poli until august in one thousand nine hundred seventy he visited moscow and announced that there were no dinosaurs in russia and everyone believed him yet luckily u.-t. belong comes from a long line of scientists who chose to follow their own instincts and secure a more as place in the history books as one of the world's foremost sites for paleontology it was their determination and no small amount of digging that revealed a dinosaur jackpot alison r.c. the more regions. this is are to you now back to the u.s. army truck driver that's seen its top credit rating take a knock if you or i get into debt the bank is all over us without delay yet it's only now about about which of those trillions is seeing its credit score decline

online a talk show host laurie harvest asks people in new york why americans are so keen on borrowing. why do you think so many people allow themselves to get so far and that is the is the age that we live in everybody sees the person next door that they've got the brand new cars the lifestyle and that's what they want is so much advertising and people just wanted to spend money so i think that's the difference between americans and europeans but you have advertising in europe are you just you don't pay attention to it or. i think we pay less attention to it and we probably think a little more about what we need and what we can afford it's all about thinking yes i think so is it worse for you to be into personally that it is for a government to be in that. it's much worse for

a government to be and why because we trust the government to do the right thing and they're doing absolutely the opposite of that we don't you trust yourself to do the right thing and live within your means i do but i'm in debt that i can pay it off debt is dead it's bad for governments bad for individuals and the government should show leadership show they've got to clean it up do we really expect our government to get its act together if we can't get our act together for small families we can only hope that individuals and the government will step up and make a difference whether or not you're in debt personally the bottom line is we've become a planet of debtors so it might be time for all of us to rethink what it is to live within our means. i don't want to stay with us here are coming up your way shortly the aviation world's high flyers will be in moscow later this month party looks ahead in just

a few minutes that's after a recap of the headlines with me in just a moment. the history of this place runs through the centuries. a paradise for archeologists zoo ologists and ecological tourists. what one fateful night shots destroyed the harmony of life. how this republic got its life back. hoping dreaming and retreating.

welcome back you with r.t. and live from moscow on the stuff of a recap of the headlines just when that the u.s. thought it was dealing with its debt it's dealt a blow by a credit score and loses its hallowed aaa crown now china is weighing in america.