porters dropped america's ranking to double a plus this comes after a last minute debt deal earlier this week narrowly rescued the country from default . on the whole for sure and if it's not changed. in the coming years but the obama administration says the anonymous is way off and will damage and the recovery. in washington for us well it really is more than anything a huge a 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 representations 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 it sends 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 have. ever 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 the economy in terms of any sort of new spending that could boost growth we saw g.d.p. growth 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 well to discuss more on this i'm now joined live from new york by max wolf he's a senior analyst at green crest capital thanks very much indeed for joining us live on your web cam the bad news of course the end of the week but what will happen do you think when it comes in the markets open what can we expect. well thanks for having me it's always my pleasure to work with you i do think that sunday night local time here and in new york monday morning for a.j. when the markets open in new zealand australia and then quickly thereafter in northeast asia we're going to see some of the dislocation that we have all feared as we kind of headed into this disaster over the last month or two complicated

which is actually mentioned in the press release complicated by that complete dysfunction of the u.s. congress no other shock waves hit into a global economy and global financial markets that spent the last week falling down a flight of stairs so i think we're in a fairly sensitive vironment here and while there's no time to be downgraded the timing of this s. and p. downgrade of the u.s. from aaa to double a plus could not be worse. could we actually be seeing the global recession i don't think this is going to have the same kind of effect that we were associated with the nationalization of fannie and freddie in two thousand and eight september of two thousand and eight or the failure of lehman brothers across the fourteenth and fifteenth of september made but i do think this sets up toward a slippery slope and it sets up an environment in which symbolically politically and economically the united states leadership the global economy has another kind of strike against it does reduce people's confidence i think we might see people

buying u.s. treasuries and selling credits as a general like the quality people get scared they run away from riskier assets i mean ron in fact just those u.s. treasuries that were just downgraded i think the bigger risk is to the market with a very fragile situation and u.s. housing as as well. credit conditions generally and i would remind people too that as pete didn't just downgrade united states they put us on further down grade watch they're suggesting that this downgrade may be to be giving up a process and not pm max at the start of the discussion you mention the reaction there in the east now china america's biggest lender and clearly unhappy about this downgrade has already suggested that the world needs a new reserve currency i mean it seems unthinkable but maybe not walk do you think could happen if china does actually abandon the dollar. the chinese have an awful lot of exposure to the dollar and they very much like you dollars that allows them

to keep the renminbi or the want their currency below where the market would set it so to some extent they have helped to aggravate their situation but it is true they're sitting on over a trillion dollars worth of u.s. treasuries if those were to decline in value they would certainly be and by that decline i do think that the leadership of the united states and therefore the dollar has come in for increasing question over the last few years we know the direction of this having him more or less down the problem we have is that there is no other presently position to fill the shoes of the u.s. dollar i mean the euro normally mentioned as a possible replacement is in shape that makes the dollar situation look pretty good right now so clearly that doesn't look likely but you may see regional currencies emerge with euro zone rubles and renminbi and again and even brazilian riyad i taking up some of the position that the dollar historically had in their respective world regions and i think today's or yesterday excuse me the acid p. downgrade announcement might also help to send gold north of even seventeen

eighteen hundred u.s. dollars an ounce and it may be in the process of increased holding so we may see a basket of currencies with some gold become a little bit of a temporary substitute for the position occupied by the us dollar since the second world war just briefly and finally. this crisis being prompted by speculation perception raised by credit rating agencies now of course down in the polls track record has certainly been criticized in the past but now this two trillion dollar miscalculation is actually being pointed out in the s. and p. report by the white house officials of course the agencies defended the decision is reasonable but the question is who's right and who's wrong. we don't have all the granularity of detail as to the alleged mistake it is quite possible that s.b.s. made a mistake and likewise i would rule out that us treasury i was quite a lot at stake here and we also have blown up a disagreement into an actual factual error and the ratings agencies have been

tarnished part because of their own misdeeds and lack of performance all over the world for many decades but the truth remains that imperfect problematic as they are they are the reading and real decisions and real legal contracts are written based on these readings however questionable the source means the max is really going to hear what you have to say thanks so much for your time thanks for joining us live there maxwell senior analyst at green crest capital there in new york thanks always my pleasure thank you for having me. or china as we've just been talking about is the largest holder of the u.s. debt is immediately reacted to the news of the downgrade saying that washington needs to cure its debt addiction also as we just mentioned in that interview with max wolf that beijing has suggested a new stable reserve currency saying it's needed instead of the dollar will concerns are also rising in asia's third largest economy india where the finance minister called the situation grave and reports now from new delhi. 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 think a lot's of decisions not specifically being made when it comes to that two point four trillion dollars and cause 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. the done great came today to europe stock markets which you've already taken a hammering this week being battered by the euro zone and america's debt difficulties meanwhile the e.u. leaders criticize the u.s. rating agencies blaming them of double standard saying they will create a european one in response to what he's done you bushel has more for us now from brussels. we used downgraded trust in the rating agencies to junk. polls 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. furious about s.

and p's double standards they held with the white house before this decision they briefed them about it when it would take place what would happen and that's allowed the white house to prepare a smooth response to the media and even question the 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 agency is rigged to say the very least and as a result the european union is creating its own agencies will do this. for americans who will see themselves having to pay more more interest on their loans and having to pay more on that is bad really for everyone around the world who lend money to america because it raises the risk of them not getting that money back. and a bushel level one small debt for a man one giant black hole for

a government later on in the program we're in new york to ask what's the difference between our debt and those of our leaders. much worse for a government to be and why because we trust the government to do the right thing they're doing absolutely the opposite of that but don't you trust yourself to do the right thing and live within your means i do mean. that i can pay off. a wave of mass anti-government protests is underway across israel the biggest run is taking place in tel aviv with up to a quarter of a million attending one street there has already been named by some as is really tough here after the square in cairo where the egyptian revolution took place. is there for us. the military is electrified with protested a mixture of jubilant and defiant they say they're not going anywhere until the israeli prime minister benjamin netanyahu meet their demands now practice

organizers have been warning that some three hundred thousand people will take to the streets not only of tel aviv but also jerusalem and several other cities tonight and in the time it took me to pass through the security checks that cost hundreds of protesters holding up banners no united and of the slogan office demonstration which is the peaceful demond social justice and that's what they sing in quiet now we hear now this is logan also that people will take better than one tree here tonight also making the numbers are large groups of wives of policeman a social workers our teachers our doctors all of them throughout the course of the day saying that they were mobilizing the communities and ordering them to come to the streets not tonight's protests also comes in the wake of controversial housing mr slater that was passed this week by the israeli parliament a strange message according to protesters here it again allows for only be wealthy to buy housing putting affordable housing out of the reach of ordinary people so

that is why you're hearing israelis incredibly angry they say that netanyahu is not only not listening to their demands he is completely out of touch with what people here are thinking now he never to believe the comparison is being made between what he's seeing here in israel and what has been happening in neighboring egypt this demonstration is sainted around a main street in tel aviv known as was child boulevard and there are tens upon hundreds of tents on that street people have been sleeping there they've been eating they've been holding discussions and meetings they've been playing instruments essentially they've been living their lives on the street that some people here have dubbed tuffy a square to hear corner of course being a reference to the heartbeat of the egypt's revolution so certainly that is a comparison we also are seeing young people. this is a demonstration. the same ways that. people. would be.

people all to former ukrainian prime minister yulia timoshenko continue to protest against her arrest her supporters have set up a tent camp in the center of the capital kiev she was arrested on friday for contempt of court and auntie's. has more now from the sport that. several dozen supporters of you are protesting here believing that the case is politicized and being orchestrated directly by the president several hundred more people are stationed in the. main main street and give the street that's where the court building is we're hearing off constant clashes between the supporters of. the law enforcement officers. being accused of serious economic crimes including

striking unlawful gas deals with russia and unlawful usage of money which ukraine received from signing the kyoto protocol several years back now it is interesting because there have been already comments from russia's foreign ministry which urged ukraine to hold a transparent and fair case on yulia timoshenko as well as saying that all gas deals which ukraine and russia signed in two thousand and nine were completely legitimate and were signed in full accordance with the two countries laws and also been a very sharp comments coming from the european union with almost all of the organizations in europe criticizing the current state of affairs the fact that. has been placed under arrest and they demand that she must be released immediately and that the trial must be held in a transparent way. reporting there thirty one u.s. special forces personnel and seven afghan soldiers have been killed in a helicopter crash in the eastern province the taliban has claimed responsibility

for the incident that marks the biggest single loss of life for american forces in the country well for more on this some joined live from washington by medea benjamin she's co-founder of the organization code pink thanks very much indeed for being with us here on our team the taliban has claimed responsibility for this latest incident last month and also killed the brother of the afghan president so if there is still this deadly should the u.s. really be drawing its forces from the country in the near future. well i would say just the contrary that it's time to really think about it during all the forces because what we have seen in these last ten years of endless war is that the presence of u.s. troops is it strengthens the taliban it gives the taliban a reason for being and the more that the u.s. troops continue to be there the. violence will continue if there's a question of the afghan security forces on able to protect citizens from the

taliban and indeed from from other. terrorist organizations then surely do you think the afghans really want the u.s. forces to go. well the u.s. and the nato forces are not able to secure the afghans either report recently came out from the international crisis group that showed that despite billions of dollars in international aid and over one hundred thousand nato forces the afghan people are not able to be secure everybody knows that this crisis has to end through negotiations the sooner it happens the better and i think this crash is really a time when we should say to ourselves in the united states how many more of our soldiers' lives are we willing to sacrifice for an unwinnable war when it comes to your hours ago and she spoke to an afghan expert there in kabul he said that life in afghanistan has actually improved since the invasion so would you agree that the ten year operation is now reach its goal and it's time for the troops to go. well

you know we can declare victory and leave it that's usually nicer than declaring defeat and leaving but whatever the case we know that al qaeda is no longer in in afghanistan they have moved on to pakistan somalia yemen the u.s. has no reason to be fighting the taliban the taliban never attacked us in the united states and only attacks our soldiers because we are occupying their country so i think with the financial crisis in the united states and now this tragic death of thirty one of our soldiers it is time to really say if you want to say victory and pull out or whatever but it's time to get out of course one problem is that afghanistan is a source of illegal drug trafficking that is threatening the entire world indeed is a major concern for russia how do you think this problem should and could be resolved. will once again ten years of the u.s. presence has not made that problem any. better in fact it's made it worse one of

the few things the taliban did while it was in peril was eradicate a lot of the opium production so i think that. the present course of events whether it's for the security of the night. or whether it's for the well being of the afghan people is just not working and you really do believe negotiation is the way for because many may say that the state of the country at the moment it just wouldn't be right for those troops to go because the country would descend in to further chaos but you do really believe a negotiation is a way for them all the different factions will actually talk to each other well i think it is the only way for it and i think the presence of u.s. troops actually contributes to the instability in afghanistan not only from the. point of view of strain in the taliban but i also think it adds to the corruption that just tremendous amounts of money flow into storage the economy and i think that in order to have the sound economic footing to improve the wellbeing of the afghan people we have to end the war and the only way to do it is through

negotiations it's very interesting here what you have to say thanks so much for joining us live there medea benjamin co-founder of the antiwar not ration code pink joining us live there in washington thanks for your thoughts thank you. when next we travel thousands of kilometers east of moscow and also millions of years back in time. when the far east and originates are remote but rich area holding russia's largest reserves of precious metals but artie's alice has met one team whose treasure lies not in gold but bones this week the russia close up team is coming to you all week from the far east and more region now to many this region's distinctive juice to its proximity to china and the smallest reserves of war materials and natural resources but one paleontologist and his team it's the bones of ancient dinosaurs

discovered deep within the ground here that will put this region firmly on the. u.t.v. lot ski is a man obsessed with the promised a bygone age when dinosaurs rule this part of russia he may have been born in the country's new western areas but it's the far east on tap jurassic history in the region 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 that would have been unbelievable number of bones of buried here and i think will be digging for at least another two years or so they're literally everywhere here the ammo region is looking up one of the few functioning archaeological sites only here can a site boast of having a reduced a complete dinosaur skeleton that discovery made a decade ago led to the full recognition of a new breed of dinosaur an order to town or giant swan at twelve mr long had of all

found almost exclusively here and it was merely some of the first stops that a fragment of tail bone sticking out of the father and son went on to make paleontology history about his sins 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 far euthanize if your hold your hand and a show where a girl who are slow because zero can be more bones 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 duckbilled planted unique to the region

and named in its on the more saurus is another previously undiscovered breed credited to team the lot skee 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 paved logy the poetry and museum each new discovery missed be carefully catalogued and examined the aim is to inspire the next generation of dinosaur homes this morning with you not one ensuring the family's feeds don't do i manage but the writing hearing about what go on up here you can see a photo of your blog ski at the excavation site and here you see photos of i'm going to soras this is the skeleton of and i was sorry it's quite a strain hooky reptile isn't it and so learn from the follies of history chaz maz and this is charles marsh an american poly and all just 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 place in the history books as one of the world's foremost sites for paleontology it was their determination a new small amount of digging that revealed a dinosaur jungles alice a bit r.c. regions. or back to the us and the drama that seen its top credit rating take a knock and if you or i get into debt and of course the bank is on our backs without delay yet it's only now that america which owes trillions is seeing its credit score decline online talk show host people in new york why americans are so keen on boring. why do you think so many people allowed 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 you call the lifestyle and that's what they want is so much advertising and people just want you 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 in debt personally than it is for a government to be into that. is much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely we 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 such that i can pay it off debt is dead it's bad for governs 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. and i'll be back with a recap of our top stories for in just a few minutes stay with us live here in moscow this is all to.

for the for. the biggest issues get a human voice face to face with the. top

stories here in. the u.s. and its highest credit rating. with china suggesting it's time to. replace. thousand people on the streets of israel in another round of unprecedented mass protests. and they. especially forces personnel and seven afghan soldiers with. it's the biggest thing an american military operation stuck to. a place that's fit for a queen in his final summertime trip to some.