here in the russian capital you're watching r t thanks for joining us now higher borrowing costs weakening a business and consumer confidence as well as slimmer chances of recovery well as the potential ripple effect for the united states after its top tier aaa credit rating was cut by one notch standard and poor's took the unprecedented move of dropping america's ranking to a plus in its outlook white house officials are on the defensive saying that there is a two trillion dollar mistake lesson he admitted that but is sticking with its decision which it says is objective well it's despite last minute debt deal which narrowly rescued the country from defaulting but the damage was already done as the political haggling undermined investors' trust economists max. brace yourself for a stock market roller coaster on monday. i do think that sunday night local time here and in new york or monday morning for asia 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 had all dear i was 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 we're going to see another shock wave hit into a global economy and global financial markets that spent the last week fall down a flight of stairs so i think we're in a fairly sensitive vironment here and while there's no good 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 it sets up an environment in which symbolically politically and economically the united states leadership of the global economy has another kind of strike against it does reduce people's confidence i think quite ironically you might see people buying u.s. treasuries and selling all their credits as a general like the quality people get scared that we 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 that we're going to market with a very fragile situation and u.s. housing as well as student loans car loans credit conditions generally and i would remind people too that s. and p. didn't just downgrade the united states they put us on further down grade watch so they're suggesting that this downgrade may be big the beginning of a process and not be am all america's ratings cut has met with a star in a response internationally china's demanding independent supervision over u.s. dollar operations and is calling for a new stable reserve currency third largest economy fine as minister called the situation a grave and singapore based investor and author jim rogers says they're exaggerating is justified. all the asians already know that america's got problems all of us are already moving out of u.s. government bonds we never got out of the first global recession unemployment in

america is still higher than it was in two thousand and eight the american debt has skyrocketed and gone through the dead or through the roof america's 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 it's dead america if you take in that consider the things that they guaranteed they printed huge amounts of money you know the world has gotten worse or hasn't gotten better but vision of the us will default that's why people are moving away from us 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 it took months of political squabbling before the eleventh hour deal was struck to raise america's debt ceiling but it was still a not enough to stave off the credit score drop as many to point ny explains investors are ready to move out of the united states because of its increasingly fractured a fiscal reputation. help us avoid default debt ceiling nation default and this

crisis time's running out the entire world is watching it's been a public spectacle filled with the bickering grandstanding and lack of compromise i devise of debate over raising the u.s. debt ceiling created an unprecedented climate of uncertainty over america's so-called sound economy the damage has been done no matter what happens now everybody really thinks the united states isn't so secure it isn't so safe even if the craziness subsides it seems to have gotten real close and who knows whether the next month next year this won't blow up again since the underlying causes economic problems are getting worse in this country point five trillion dollars of america's borrowing is owed by foreign countries experts say washington's mismanagement may cause investors to abandon the devalued dollar and their partnership with america

it's like being married to someone decide. if they were jerks you want to know what or why do how much can i put up with this relationship the u.s. will be in for a long time the only game in the european community is making noises chinese making noises were you know we're not alone now in our ability to be a repository for financing in the world the result could spark a replay of the two thousand and eight economic meltdown except this time washington not wall street would be responsible it's like the batteries worn out the spark plugs don't work the tires are flat all of this and so what we're trying to do is say we've got a little bit of money in the bank let's pay that down but we're not doing anything to fix the economy and so we're putting ourselves in a bigger and bigger hole not just because of the debt but really because we're not creating any way to get around the debt instead of the u.s. president repeatedly asked americans over the past week to join the campaign to

borrow. and spend more make a phone call send the e-mail tweet keep the pressure on washington and we can get past this while the eyes of the world have been following the heated saga playing out between u.s. politicians the main problem not going away is america's debt and the growing realisation that elected officials may never be capable of agreeing on how to solve it marina port nile r.t. new york well trans forecasts are gerald cement a told r.t. that despite the a last ditch attempt to salvage a debt strategy the us is due for another great depression the american economy as well as much of the global economy is heading into the greatest depression anything everything that they're doing is not going to salvage it the great depression is underway and all they're doing is trying to make it look as though they have a plan to stave it off they're not going to you know what's

a reputation a reputation is by what you deliver the united states can't deliver the united states can't deliver on its wars it loses wars where there are rock afghanistan the war on drugs the war with libya they're losers the government did everything that they touch look at all the trillions of dollars the tens of trillions that have been pumped into the system since the panic of zero eight struck by the federal reserve by d.c. with the stimulus bailouts too big to fail everything they do they turn to failure why would any thinking adult look at the republicans and the democrats the inept and the incompetence to come up with a program that's going to salvage the nation investors having confidence looking to the same people that caused the problem to resolve it that's called insanity the business of america when i used to be a young man it used to be business now the business of america is war. well we'll

return to the economic woes afflicting of both sides of the atlantic a little later the world wide a panic selling as the best years jettisoned their shares of the worst a week for stock markets since two thousand and eight. well egyptians are finally seeing of their former president face trial for killing at a corruption but many feel they're yet to see the revolution which deposed him bear to bear any real fruit hosni mubarak denied the charges against him at the opening of his hearing where he's accused of ordering the deaths of protesters back in february the trials are expected to last eight days and could see will barak face a death sentence if convicted baby three year old was in a hospital bed when he appeared alongside his two sons and top aides who are also accused of corruption and a mass killing for the egyptian people unemployment is at an all time high and millions are struggling to make our days but if an ocean of reports now from egypt

. this quaint cairo is now one of the most famous in the world many around the globe even those with little knowledge of arabic know its name means liberation well the revolution of january put this part of the globe on the map but apart from that what else did breed the people of egypt. this man has been running his own business for thirty five. it used to bring him enough money to send his son to study to canada and take his launch family abroad once a year between the economic devastation caused by and rust and political uncertainty mahomet's enterprise has been badly affected now he can barely a food to feed his tutoring he says the wind of change may have brought freedom to egypt it is broad and survival strong in its wake. you know i love the revolution when it happened i won't come to that looked at.

time like a light at the end of the tunnel we see it's not getting better we have nothing to eat just don't tell me about democracy for hungry people it just doesn't matter. the plight of poverty fuel the revolution yet growth has dropped from five to just one percent some thirteen million people live below the breadline unemployment has hit twelve percent. egypt's revolution was regarded as the most successful arab spring chapter it took eighteen days to end one of the world's longest dictatorships but five months on there is little satisfaction and dictator free egypt is far from the best place to live in a free the people are getting very tired and they are getting ready hoppers the people now talking about mubarak as well much better than the day is today a better solution and this in fact as they're very sad that is our people are indeed tired even those who back the changes this young man is from the revolution

youth caliche and he tries to remain optimistic because he says sounds a lot like south conviction that i get out of it and i say we've been living under mubarak for many many years too many i'd say but it's great what we did but we do need to be more patient and this is difficult we have a lot of problems right now but we do need to wait for a little longer. recentre need demonstrations in africa square show that this toy system has been pushed to the limit and its trade tests versus patience and the battle to save egypt from crumbling further duration optionor r t cairo. all egyptians are slowly realizing they're a long way from seeing the benefits of their own revolution while demand all who's written extensively on egypt's uprising says they fell prey to a political game. there has been no revolution in egypt i said so and in our

t.v. interview in late january i believe exactly that would be the outcome because this was incited from the outside it was designed to get rid of mubarak who was a thorn in the side of the obama middle east policy and put the same people in there with it with a different face at the top a lot has changed and it's largely unfortunately changed for the worse the economy as you noted has plunged since the events of january. that tourism is not going to be bombed back any time soon but even even still there was a rather healthy growth curve in the last several years even while mover iraq was still in power and that that has dramatically changed for the worse this never was about democracy in the first place a lot of youths were brought onto the streets under the illusion that it was but it never was and the military command was sitting in the pentagon all these events were unfolding getting coaching from the joint chiefs of staff of the u.s. and now you have the muslim brotherhood positioned to become the leading political

party in the in the elections when they're held. that doesn't bode well at all for egypt this is a country with the diverse secular tradition and the. economic situation is getting more so i don't think young people have more democracy i think perhaps they have even less. but things are firing up in neighboring israel television seen its biggest ever reform rally with up to a quarter of a million gathering as well as similar protests nationwide israelis are angered at the high cost of living and on affordable housing want to live the street has already been relabeled by some as a corner named after the site of egypt's uprising and us policy reports they're worried that their peaceful protests will go on because the government of mainstream world media are looking the other way. 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 back you know back in the studios ok there's a protest well what exactly is the protest a social protest for the revolution it's not the same kind of story that they used and 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 the israeli lebanese and syrian conflict and anything that doesn't kind of fit into that is not the immediate type of of news items. which is unfortunate that just makes hundred reyes 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. in lebanon they've decided to say we've had enough the media was all over there i haven't seen anyone from c.n.n. or fox news or any other big news channel here and it's really sad we also deserve a chance to be heard out in the streets has been dubbed the corner by some of the people here an optimism perhaps that they can bring down the government in the way

they neighbors in tough to square. bus with the cameras there will be no one stop here they push ups and. television as a matter of. alltel of a base journalist sami kaufman blames stereotypes about easer all for leading the news media to ignore the anti-government protests. i think that a lot of news editors abroad kind of take certain things for granted when it comes to israel they almost go on a sort of autopilot if it's not anything to do with the israeli palestinian conflict it's just not a story news editors are just so trained to see israel through one prism and in a way they take the phrase if it doesn't bleed it doesn't lead to a certain extreme that goes a bit too far first of all you have to have an understanding a bit more of what these demonstrations are and how they affect the israeli political system. it's true that most socio economic stories across the world

aren't big stories that's the case in most countries when they reach a certain threshold for example of huge numbers of people that participate in a protest and also when they. affect have the potential to stir up the political map as these protests do then these things should be should be mentioned in the press and they should be covered seeing as how israel is in the news so often but when it comes to something that could affect the political situation and it isn't covered this is actually in my view bad journalism. well coming up in a few moments carrot and stick syrian style the government promises syrian say a free and fair election while the week long siege on the opposition stronghold continues leaving protesters lives. well it's been a bruising week for the world's stock markets the worst since the credit crunch first

hit home admitted to over two thousand and eight this time it's over fears of a double dip recession in the u.s. and the e.u. is mounting debt concerns now the european commission president joined the fight to lift the region out of its financial hole calling for the e.u. bailout fund to expand and help deal with the crushing debt shows a model but also also wants the bailout fund to be able to buy government bonds if the eurozone crisis is a call to two of its largest economies italy and spain both saw their borrowing costs shoot up again but economists journalists economics journalist that is patrick says it's the banks who have to stop cashing in on the region's troubles. the european union's be a light fund is on the verge of running out of money as soon as one of those major economies such as spinner italy defaults and every day the market is saying it is terrified of the debt that has been built up in the system and it's appalled by the fact that nobody in the euro zone wants to actually lead

a side of this problem i think the public is being kept in the dark and it's been sent a lot of smooth messages from the political classes that don't really hold up to the stark reality of markets i think the problem is that ultimately banks are going to have to lose money as part of this entire play they originally bought a lot of these bonds thinking that would be an endless nerve of cheap interest rates for all of these countries and effectively the game is up but players over governments need to step in they need to restructure the market and we actually need to see that demon d word default in other words some of the bonds have to go bust or the bomb tough to be restructured and ultimately some here in ma stand up with the banks economic analysts michael ross says it's not the euro debt which triggered the market panic but the political wrangling in washington to tell you one thing this is not a normal crisis and this was not the normal crash that we had this week. it was the

beginning of the end what is the illness that has triggered all these problems the illness is called debt of western nations over debt don't lose their credibility and what happens when they lose their credibility then banks are going bankrupt and i tell you another thing only in a short time all banks all of the most important banks worldwide in the western world will be taken over by government by the government and another thing it's not the discussion about the euro and the debt in europe is this is of course a problematic issue it was the discussion about the debt ceiling in united states that triggered of this mess. got the world economy on watch it r t v dot com with analysis from around the globe and if you follow our twitter feed you can hear straight from our worldwide correspondents for the latest news updates that's our underscore calm now on facebook you can search for our team news and you'll find out top videos stories ready waiting for you where you can also join the discussion

on what you've seen on the air and there's our rapidly expanding an extensive china lobby you tube our reports and programs available whenever you want them or you can subscribe to us and explore news from russia and around that we're. going to take three. three. three. three. three blog video for your media. free media r t v dot com. a serious foreign minister says the government is promising a free and fair general election by the end of the year well during a meeting with our bed afforded basters in the capital damascus he said the new parliament will represent people's aspirations well even so government forces tight

of their week long siege of the opposition stronghold city of hama human rights groups say twenty four people there were killed in the latest bout of fighting and up to two hundred overall during her testimony of the president assad's judge to allow acquisition parties saying to violence must stop first at the un security council is considering harsh measures against assad while russia is calling for a balanced approach middle east washer say targeting regime change in syria as nato did with libya would devastate the country. the russians and the chinese feel that they were betrayed by the west and the people who pushed the resolution nine hundred seventy three they thought it was about humanitarian protection it turned out to be about regime change they didn't sign up for that we've got a lot of examples of state collapse in the middle east nowhere but it's look to the east and west of syria itself and lebanon stay collapses led to a very weak sectarian a tense government that constantly collapses initially and is unable to really

address the political challenges of the day while the syrian opposition would hope for is that the regime regime doesn't bring down the state with it so that it chooses the path that mubarak invent to lead to some degree of. moving off into the political wilderness and allows for the government to essentially implement democratic reforms that have been promised over the last five months in the three speeches that he's made that would of course be a lot more attractive for them. in the next hour on r t or in london where a group of hardline muslims want to lay down the law hardline shari'a law that is no drinking no loud music or women covered up we hear their plans to change the capital's code of conduct. now in french the word more means love but in russia it has a slightly different meaning as we discover next.

well in russia it's the name of a far eastern region which borders china it's a remote but rich area holding the country's largest gold reserves as artie's alice who has been fighting out a war also lives up to its name with its tender relationship with china. high heels and a hard hat it's not a look many women can pull off but then lilly while on a restaurant she prefers to be called in russia is no ordinary woman having first arrived in a more as an interpreter in the early ninety's she and her family worked their way up from running a small cafe to owning this large construction company. and spread across the region's capital blagoveshchensk no fewer than four large chinese restaurants full most nights and serving up the taste of the orient to russian diners it's an impressive pool failure and one that the mother of two says she

couldn't have built in china if you. use the word of yet i saw an opportunity to create something here russia needs skilled laborers and with china being so close and easy access to chinese goods equipment and a ready workforce a new receiver is just one of a growing band a successful chinese entrepreneurs operating in russia's far east where a river is all that separates the two countries easy proximity coupled with favorable visa regulations continues to inspire thousands of chinese workers people like sunshine to flock across the border every year his is a tried and tested business model selling cheap chinese clothes. so whether it's a pair of a trendy train is that your raft or perhaps the design a fungal thing if this is where the people have like a better head. we're in front of the chinese market which then the sense of town

and of course everything inside here bears the label made in china and all the sellers also come from something that let me tell you it's absolutely packed inside here and the party is like this every single day so clearly business is booming. i've been here for three years i left china as they want to know jobs things are going well him you can get things really cheap here which is great if you've got a large family the quality varies hugely but on balance i think we're lucky to have chinese traders here russian goods just can't compete on pricing. and by hopping on one of the many packed ferries that cross their more river every day rushing consumers can enjoy an even more authentic chinese shopping experience out the edge with a slight slavic flavor back here for a bargain and in the process help to fuel the chinese economy it's led some to fear that russia's far east is being exploited by its entrepreneurial neighbor.

pessimists revel in self pity at the sight of china forging ahead to miss think of ways to develop like a version of the same pace using chinese expertise capital and labor but i believe our region is hugely fortunate to go to china if we compare our city to others in russia we're much better off in almost every respect i was told of extensive plans for more joint ventures and grace integration between the two countries as far as government is concerned its relationship. you're standing here on the a more coastline it's a mere five minutes by boat across to china so close you always feel that you can reach out and touch it and people living here say that they've been witness to the phenomenal pace of development along the high pick representative of the growth of the chinese economy as a whole and its influence hair in russia alison bit. of a back with a recap of our main news headlines after

a short break stay with us. back

to this week's top stories from r.t.e. the aaa that's now america's accounting exile its credit crowd has taken down a wrong in the ratings as investors shudder over how the debt ceiling raised was handled. that round of golf or rocky week of global markets with wall street's worst week in over two years worsened by europe's debt said fears of a second a possible american recession. seizures former president goes on trial for mass killing and corruption a weary public see the replacement regime failing to meet the revolution's demands . but in neighboring israel of the reform rally swell to a porter of a million people in tel aviv angry that the government's lead living costs get out of heaven. all the eve of the third anniversary of the south set your war present.