me and use the now way first this hour higher borrowing costs weakening business and consumer confidence as well as slimmer chances of recovery is 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.a. plus in its outlook white house officials are on the defensive saying there's a two trillion dollar mistake as in p. admitted that but is sticking with its decision which it says is objective it's despite the last minute deal which an early rescue the country from default but the damage was already done as the political haggling undermined it investors trust economist max fried wolf says brace yourself for a stock market roller coaster on monday. but 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 have all feared that is we kind of headed into this disaster over the last month or two complicated which is actually mentioned in the press release complicated by the 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 at 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 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 flight to 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 that we're going

to market with a very fragile situation in u.s. housing as well as student loans car loans credit conditions generally and i would remind people too that ason p. didn't just downgrade the united states they put us on further downgrade watch so they're suggesting that this downgrade may be big the beginning of a process and not be am. well america's rating scots has met with a stark response internationally china's demanding independent supervision over u.s. dollar operations and is calling for a new stable reserve currency and asia's third largest economy india the finance minister called the situation grave singapore based investor and author jim rogers says their anxiety 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 dead has

skyrocketed and gone through the dead 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 quadruplet instead america if you take in the consider the things that they guaranteed they printed huge amounts of money you know the world has gotten worse the world hasn't gotten better but they sure the us will depart 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 better and. now it took months of political squabbling before the eleventh hour deal was struck to raise america's debt ceiling but it was still not enough to stave off the credit score drop as were an important imo explains investors are ready to move out of the united states because of its increasingly fractured school 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 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 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 four 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 to serve a year just so many years they were jerks you want to know what i do how much can i

put up with this relationship the u.s. will be in for a long time the only game in juneau but the your immunity 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 dad but really because we're not creating any way to get out of 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's 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. r.t. new york trans forecaster gerald celente told r.t. that despite the last ditch attempt to salvage a debt strategy the u.s. is doomed for another great depression. 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 delivered in ited states can't deliver the united

states can't deliver on its wars that loses wars where the iraq 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 strug 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 next 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 return to the economic woes affecting both sides of the atlantic

a little later for you the worldwide panic selling out asters genesis and bear shares in the worst week for stock markets since two thousand and eight. also ahead this hour ukrainian riot police around a camp set up by supporters of progressive acts prime minister yulia tymoshenko protesters fear police may use force against them. but first egyptians are finally seeing their former president face trial for killing and corruption but many feel they have yet to see the revolution which to post him to bear any real fruit hosni mubarak denied the charges against him at the opening of his hearing where he was accused of ordering the deaths of protesters back in february the trial is expected to last eight days and could see mubarak face a death sentence if convicted they had a three year old was in a hospital bed when he appeared alongside those two songs and top aides were also accused of corruption and mass killing for the egyptian people unemployment is at

an all time high and millions are struggling to make ends meet our jane arraf notion of reports from each of. them 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 it bring 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 aboard one c. . between the economic to the station caused by and rastan political uncertainty mohammad's enterprise has been badly affected now he can barely a food to feed his two trying he says the wind of change may have brought freedom to egypt. brought a survival strong in its way. but you know i love the

revolution when it happened i welcomed it that looked at the time like a light at the end of the time that we see it's not getting better we have nothing to eat just don't tell me about democracy for hungry people again it just doesn't matter. the plight of poverty fuel the revolution your 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 major successful arab spring chapter it took eighteen days to end one of the world's longest dictatorships the five months on there is little satisfaction and dictator free egypt is far from the best place to be and one of the people getting ready. and. ready hopper's the people know about mubarak as well much better than that they. would be a better solution and this in fact is their 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 and 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 protests versus patients and the battle to save egypt from crumbling further grief an optional r t cairo. egyptians are slowly realizing they're a long way from seeing the benefits of their own revolution william and 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 plunged since the events of january. the 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 mubarak 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 youth were brought onto the streets under the illusion that it was and now you have the muslim brotherhood position to become the leading political party in the in the elections when they're held. that doesn't bode bode well at all for you

just so i don't think young people have more democracy i think perhaps they have even less. well things are firing up in neighboring israel television see its biggest ever reform rally with up to a quarter of a million people gathering as well as similar protests nationwide israelis are angry at the soaring cost of living and on affordable housing on sunday morning the finance minister announced a special committee to deal with the problems has now been set up in mali one tel aviv street has already been relabeled by some as the hardier corner named of course after the site of the uprising but i suppose there are reports they're concerned it's taken this much pressure to get any kind of reaction. tens of thousands on the streets of israel angry and protesting for change but is anyone listening when it comes to zero a lot of the foreign media want to see more of an action movie and this hasn't been

a very violent it's been very hasn'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 young a woman set up the tent lobby editors of france twenty four b.b.c. and sky coughed up just a few meager seconds perhaps not even that interesting to the back you know back in the studios ok there's a protest well what exactly is the protest a social protest for the river lucia it's not the same kind of story that they're used in as 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 there's really lebanese and syrian conflict and anything that doesn't kind of fit into that. is immediate time full 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 called 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 on the streets has been cornered 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 with. us what is the cameras there nonstop here they push ups and. but artie's polis there reporting from tel aviv coming up

in a few moments here in r.t. carrot and stick syrian style the government promises people a free and fair election while launching new attacks against towns sympathetic to the opposition. it's been a bruising week for the world stock markets the worst since the credit crunch first hit home in mid october 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 about the market turmoil has been discussed in an emergency phone conference of the g twenty finance chiefs earlier this week the european commission president joined the fight to plug the financial hole calling for the e.u. bailout fund to expand and help deal with that doesn't mean go broke so also wants the funds to be able to buy government bonds the crisis is now involving two of the largest economies italy and spain both on their borrowing costs shoot up again but

a kind of like economy economics journalist i should say patrick young says the banks have to stop passing him on the 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 spin or 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 a bold 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 the play is over governments need to step in they need to restructure the market and we actually

need to see that demon the word default in other words some of the balls have to go bust or the bomb tough to be restructured and ultimately some pay in must end up with the banks. economic analyst michael ross says it's not the euro debt which triggered the market panic but the political wrangling in washington 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 to get all these problems the illness is called debt all western nations over debt they 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 debts in euro this is of course

a problematic issue it was the discussion about the debt ceiling in united states that triggered of this mess. well we've got the world economy on watch for you at r.t. dot com with analysis from around the globe and if you follow our twitter feed you can hear straight from our worldwide correspondents with the latest news updates that's our team underscore calm on facebook search for our team news you'll find out video stories ready and waiting for you and where you can also join the discussion on what you've seen is also our rapidly expanding and extensive channel on you tube our reports and programs available when you want them described to watch and explore news from russia and around the world. mission. critical three storage. arrangements three. three. three. three broad

video for your media project free media r.t. dot com. riot police in ukraine's capital house surrounded the tent camp set up by supporters of former prime minister yulia tymoshenko who was arrested on friday the protesters fear officers main storming the camps after the court where her trial is taking place banned gatherings outside parties alexy yourselves the reports from. ukraine's former prime minister yulia timoshenko still remains in detention center in kenya following the decision by according to based on the arrest before that you would have been forbidden to leave the country now she was put behind bars as the judge just explained because of her bad behavior during the trial now. he's being accused of several very high profile economic crimes including striking unlawful gas deals with russia back in two thousand and nine it's interesting because there has already been

a comment coming from the russian foreign ministry saying that. the old these. signed in two thousand and nine were completely legitimate and were signed in full accordance with the two countries legislation and urged ukraine to hold a fair and transparent trial over the country's former prime minister yulia timoshenko besides the times when these agreements were signed between moscow and kiev were described as political chaos in ukraine with constant political infighting between. the former president before you should go so we understand according to many experts that if there were any violations in the signings of these contracts they happened mostly because of the political chaos in the country back at those times they've also been very sharp remarks coming from europe in regards to the detention of you with many organizations in europe with the parliamentary assembly view of the council of europe all criticizing this decision and urging the authorities in ukraine to release you to machine going to hold

a fair and transparent trial on we understand that the protesters are picketing the detention center that's where i'm standing right now and the court building in downtown here are determined to stay there twenty four hours a day and when their stand that they are trying to garner more people are asking people from all over the country to come to kiev and voice their their protest against the decision to place the rest. returning briefly to more of today's world news a police officer taken to hospital and seven others have been injured after why it's flared up in north london protesters angrily attacked police over the fatal sooting of a twenty nine year old man last week riders through petrol bombs at officers as well as towards buildings a boss and police patrol cars shops were also looted more than three hundred were involved in what began as a march to demand justice for the killing. typhoon we front has swept

house shanghai and is continuing its way north along china's east coast there are no reports of casualties as a heavy rain so the city about four hundred thousand people have been evacuated to safety as the port of jintao braces itself for the storm air travel over eastern china was disrupted overnight but it's getting back on track. syrian opposition activists say at least twenty people have been killed in a government tank assault on the city of daraa zoar in the east which has been the site of strong antigovernment protests the attack came as the country's foreign minister promised a free and fair general election at the end of the year bringing a part of the mint that represents people's aspirations but government forces have also been besieging the opposition stronghold city of hamas but human rights groups say twenty four people were killed in the latest bout of fighting there and up to two hundred overall during the week protesters earlier the boss president also pledged to allow opposition parties saying the violence must stop first the un

security council is considering harsh measures against also while russia is calling for a balanced approach middle east watchers say targeting regime change in syria as nato did with libya would devastate the country. the russians the chinese feel that they were betrayed by the west in the the people who pushed for security council resolution one hundred seventy three they thought it was about humanitarian protect . and 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 in lebanon a state collapses led to a very weakened sectarian a tense government that constantly collapses and is released and is unable to really address the political challenges of the day what the syrian opposition would hope for is that the regime the regime doesn't bring down the state with it that it chooses the path that mubarak and ben ali took to some degree of. moving off into the political wilderness and allows for the government to essentially implement the

democratic reforms that have been promised over the last five months in the three asaad speeches that he's made that would of course be a lot more attractive for them. in our special report coming up later today for you we uncover the background of the u.s. invasion of iraq. the people of the united states and their friends and allies will not live at the mercy of an outlaw regime that threatens the peace with weapons of mass murder is a regime as an actor program to acquire and develop nuclear weapons and let there be no doubt about we know for a fact that there are weapons there. this were just being carried out into the direction of dr david kay respected scientist and former u.n. inspector was leading the weapons search in iraq we are determined to take this apart we have a tremendous a group of dedicated american men and women involved in this with the best assets of the intelligence community can provide. data cheney is not going to be done with

this for quite some time david kay wants more time and he says it could take another six to nine months to make a definitive finding ministration is asking congress for hundreds of millions more six hundred million dollars to fund the continuing search we have not yet found shiny pointy things that i would call a weapon before we can draw from conclusions we need to let the iraq survey group complete its work. we were all wrong probably in my judgment. and that is most disturbing. sometimes the true patriots takes the unpopular course that helps the country and for the stakes and even if they come this way at least from patriotism is the last refuge of scoundrels and i think these are scoundrels they have no argument now they have no defense for what they did the country is in a terrible international security situation that i think is perilous so they're

attacking the patriotism of others. be. full report coming your way at one thirty and three thirty pm g.m.t. we're going to take a short break and i'll be back with a recap. our week they have binds in just a. line

in motion to much brighter than the few new moon about sun move from funds to impression the sun. starts on t.v. dot com.

it's two thirty pm in moscow the week's top stories on our t.v. the aaa that's now america's accounting anxiety its credit crowd has taken down a wrong in the ratings as investors shutter over how the debt ceiling raise was handled. and it rounded off a rocky week on global markets with wall street's worst week in over two years worsened by europe's debts and fears of a second possible american recession. as egypt's 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 the reform rallies swelled to a quarter of a million people in tel aviv angry that the government's let living costs get out of hand. on the eve of the third anniversary of the south set your war president medvedev spoke to our to me and other broadcasters about why he too.