welcome this is r t it's eleven pm monday evening here in moscow my name is kevin and first president barack obama has defended the american economy claiming the u.s. is still a aaa country the markets there don't seem to be in full agreement though they followed the rest of the global economy following friday's downgrade of american credit the dow jones in fact has lost more than four percent artie's report myers joins us live from new york with the latest in a good to see you so president obama then unexpectedly i guess defended the u.s. economy but the big question is it too late to restore confidence what's the mood. well the mood right now is still very in secure after president obama u.s. president barack obama addressed the nation and the market continued going down as you mentioned the dow was down more than five hundred points since the markets opened down below eleven thousand the first time it's gone that low in ten months but regarding what the u.s.

president did say he said he didn't need a credit agency to indicate that the u.s. needs a balanced long term approach to deficit to cut its deficit nor did he need a credit agency to indicate that the political gridlock in washington is damaging the u.s. president went on to say that washington is not lacking policy or plans what it's lacking is political will he said to many lawmakers elected officials are insistent on drawing lines in the sand bumping heads we saw this play out for weeks and weeks before there was a deal out surrounding the debt that was reached in the last hour the whole world was watching as this political partisan. grandstanding was taking place in washington and this is something that has caught the attention of the credit agencies that are now trying to gauge how much of a confident and secure investment the united states is the dollar is how we do know

that s. and p. downgraded the u.s. is credit score from aaa to double a on friday that was the first time ever in history that the this country the world's largest economy was downgraded and we did hear the head of moody's on monday that there is a chance that moody's is a second credit agency and there's a chance that they may downgrade the u.s. this credit from aaa to double like if the deal that was reached to reduce the u.s. is deficit does not prove to be very reliable because at this. point we see the u.s. the world's largest economy with fourteen point three trillion in debt and growing and there's many plans that are put in place on how to reduce the deficit but the reality is the u.s. has a pattern of borrowing and spending borrowing and spending the bubble is growing bigger and the world is growing concern not to mention all the millions of americans that

are still waiting for jobs to come about or waiting for their economy to become more secure so at this point yes we did hear the u.s. president speak and address the nation and say that no matter what a credit agency says the u.s. will always be triple a those are just words and i think that people that live in the u.s. and those that invest in the u.s. are waiting for action for tangible results. bring you live from new york give some more thought should be joining us live now from new jersey not too far away to discuss the financial slump is michael pentodes senior economist at the euro pacific capital mr prentice very good evening chu we heard from our correspondent you know president obama saying america still worthy of a top credit rating sounds lovely but it's not just confidence building rhetoric what do you think but what do you think the markets who the president to say what mr geithner going to say obviously the market believes in worse is done in the u.s.

is no longer fortunately a credit country. well obama himself says that any other time republicans would agree to the initiatives that he's been proposing is there enough confidence the left to get anything more done does he have the political authority needed during a time of crisis or is this time just run out. a lot of people want to blame obama for everything inherited a lousy economy under george w. bush the bottom line is a lot of these expenditures and i've seen a budget or the manner of what i'm an extension. for unemployment insurance and welfare food stamps right now our deficits annually are ten percent of g.d.p. our g.d.p. is growing some one percent so doesn't matter what obama says i don't want to blame republicans or blame democrats but i will congratulate the tea party for making this a salient discussion but the fact is that american debt is intractable america is

becoming insolvent and the secret is getting out and once the chinese fully understand it and once the japanese and the europeans and or foreign creditors all the sense of the idea that we cannot pay back our debt with that inflation and monetizing and counterfeiting there will be a. treasury auction which will send interest rates to the moon or at least to the same high single digits and then it will be clear as day that the us is insolvent and that's what the s. and p. is trying to who they should be you look at it and you can graduate. the way they're being in the mainstream media markets a grim picture you're priming. what possibly could happen in the future let's look at the immediate future that the dow jones is down around four percent right now will we see yet another selloff in asia or in europe in reaction when's it going to stop you think the immediate future listen i actually think that is

a buying opportunity and you know i'm supposedly some kind of like herman bear but i'm not actually when one starts in the in december january of two thousand and nine much disagreement most people who follow me but i think it's to be a market opportunity now because the terms of the rally is going to start tomorrow when he gets up and exclaims the beginning of q e three. ok so. we're going to put in a bottle it was like confetti and we have the counterfeiter in chief ben bernanke you enjoy. to that so what concerns do you have just will go up and people will say oh gee what a what a hero ben bernanke he is because of course your money's not going to tell you much but he's a little good on paper let's look at a bit of reality a lot of turmoil over recent years where's it going to go in the coming years we heard everything you've got to say about walking happen in the u.s. economy or about the world's financial landscape how it's going to change get your

crystal ball out we live in the uterus the fall listen. you know the gold is dominated by central bankers that those who run the globe and so look in japan they have a debt and g.d.p. ratio of two hundred percent what do you think the bank of japan did when they saw the end starting to rally well the aggressively sought to destroy the currency and people went in to go so after john slattery she was on record saying. it's because european debt ever ever ever this is not you know the memories of world war one and why more germany still fresh in the minds of europeans we will never rise then and what do you do the next day and how eels went from three percent to six percent and of the printing presses and europeans ran to go and for the markets down to five hundred points today what do you think bernanke is going to say tomorrow we're going to come to the rescue and no one thousand nine hundred thirty seven type situation and we're going to create the printing presses the. fifty dollars

a day. michael pence so good your views on the program signature economist at euro pacific capital as you will all be revealed tomorrow of course thank you thank you very much well europe's stock markets also in the red the footsie in london closing down three percent a brief rally after the european central bank said it was started by a spanish and italian government bonds to restore confidence proved to be very short lived bushell's been following the situation from brussels. greece is in big trouble it's fall into a fourteen year low because if the euro falls as increasing numbers here believe it could do greece will be first in the firing line in fact there's no fun to be an investor anymore i mean investor faces must be read like the markets they're down everywhere and what's being dubbed black monday spain's become the latest state to pledge that it will change that it will reform it will get its house in order is that it will slash billions more of public spending but that doesn't help the mood

the european central bank had it will buy up spanish and italian debt something that no one wants to buy at the moment that hasn't helped either now the g seven g twenty group of leading economies say that they are working together to control the situation but investors are voting with their feet that's when markets are down investors just don't believe the politicians are to europe correspondent in brussels or bushel there you can check out our website of course to get an in-depth look at what's going on in the markets around the world. another big story developing tonight london is a blaze again after all the troubles of the weekend the groups of use are clashing with police in several parts of the city tonight and more buildings are on fire it follows unrest after the weekend when

a man who was shot dead by police let's get the latest cross to r.t. the planet is in the british capital ivan evening again now when i spoke last we were talking about what was happening in peckham in south london because that seems to be a new development now first of all we've seen the trouble in the northeast earlier on then it went out alone we should know it's gone by pekka what can you tell us. well as you say another night of violence seems to be a rupturing here in london just since we last spoke just in the last hour another area that was previously unscathed has now been swept up in all of this and been affected in what is now widespread looting rioting and violence in both north and south london the latest area to be affected is peckham that's in south london the latest pictures showed a building that's been set on fire on the main high street there huge flames coming out the side of it the police there and also in lewisham which was another area south one has been affected tonight with cars being set on fire there in both areas

riot police are trying to secure the area so fire engines and the fire services can go in to try and put out these flames they haven't been able to until now because it simply isn't safe for them to go into what the police are doing actually it seems to be a game of cat and mouse they're playing with the rioters helicopter pictures show them charging down the main therof both in lewisham and peckham and the rioters actually scattering through the side streets they then regroup and charge themselves at the police this time hurling missiles at them and the latest pictures in lewisham actually show the latest ground that the rioters and the use gained that contain the part of car that was left there by an unwitting member of the public clearly they smashed the windows unceremoniously set it on fire just like that and so this is people's livelihoods and possessions just going up in in flames

really in what is indiscriminate violence really earlier today another area previously untouched area of london in these riots was sort of violence last in the northeast called hackney where police fans have been attacked that's pretty recently that's been going on hours all day really all afternoon and police the riot police are trying to control the area. are they having a lot of trouble as the writers try and coordinate their efforts using mobile phones and just today alone actually the police have made over two hundred fifteen arrests and have hand bring in over three hundred more police officers from external units from outside of the capital city that is just how serious this situation is and i've just wind this by the beginning of the weekend it all started it with a peaceful protest got other hand the peaceful protest was over the fatal shooting by police of a gentleman called mark duggan

a twenty nine year old but is what's being blamed for this ongoing trouble. the general consensus now from police chiefs and community leaders who are condemning it actually and even the family of mark duggan they're saying that what we're seeing now and in the last sort of two days since the tottenham riots on saturday night is a different level of violence and unrest this is just kind of copycat violence is being dubbed by the police chiefs from from users who are just jumping on the bandwagon and using this as an excuse to go about looting and causing as much damage as possible is really indiscriminate violence and. just people causing as much havoc as they can and they don't seem to care for people's property they're just setting up setting buildings and houses on fire so on saturday night it was a peaceful process that got out of hand and escalated into violence over the.

shooting of mark duggan this is a different different ballgame altogether because it was happening then the last two nights people were the violence is really happening night time only this afternoon it's been very severe violence and writing has been taking place in broad daylight people in full knowledge that is being covered by being covered by media helicopters television helicopters and police helicopters that are doing in broad daylight with this regard for being identified and they just want to cause as much violence as possible so it's not really on the same scale as you're saying i have a really disturbing pictures of the shoulder the as you were describing the folks bringing you know there from the. well but earlier on i spoke to nathan john these from the young person's charity youth unlike limited he had another idea of what this is about he said these riots represent the level of public discontent at the government's policies in britain right now. these riots are really. coming off the

back of years of communities being ignored or communities being handled incorrectly by the police the gun was for me to point it was you know the icing on the cake and we've seen so many different examples like this over the last few months over the last few years and i think people have had enough now to take to the streets the police wasn't prepared for this whatsoever similar incidents of happened where people were being murdered in suspicious circumstances nothing happened and i think they just expected this to be another time where nothing was going to happen but unfortunately something has happened and it's spreading for our capital and it's going to continue to spread because there's a lot of hatred there's a lot of tension that's been building up well out of corresponds of course in london keeping up to date with the latest laura it is one of those correspondents she's dating the twitter feed you can follow everything that she's seeing going on

around r.t. underscore common inhalators comments she reveals the more disturbing side of the riot she says she's just seen three ten year old boy committing vandalism kicking in a shop window apparently just for fun we've been hearing a lot of young people are involved in what's been happening across the weekend if you want to catch up today with the latest from our team of correspondents in the log on to our to underscore com to find the latest on this and the other developing stories as well we're covering here on r.t. . it's eleven seventeen pm moscow time let's bring it to them some other news now in syria there's been fresh attacks on anti-government protesters across the country gunfire and explosions have been reported in the city is. more than three hundred people have been killed in the past week it's been the bloodiest in the five month uprising against president through now kuwait and saudi arabia are pulled their ambassadors from syria adding to the international condemnation of the

crackdown on protesters i spoke to patrick hasan from the online political magazine spiked in london he told me bashar al assad is a party at a loss as to how to deal with the situation. if assad is serious about promising democracy and sweeping constitutional reforms they has now promised thing clamping down on freedom of speech and freedom of expression which is the cornerstone of any democracy is not sending out a message to the syrian people that he can be taken seriously or trusted in his promise is a tool there is a sense from assad really that the ease by which he is started to say this is the end of a single party rule and he will start to think about elections and the way in which he previously portrayed himself and his party as the only guarantee guarantors of syrian stability but is now talking about major constitutional reforms means that really there's

a real uncertainty about what he's trying to do there very isolated they don't really know where they go and they don't know what's really the position of the u.s. is on this which i think is making them very uncomfortable and i think as a result they're kind of stuck between a rock and a hard place in a sense i guess it is a seems very tired that she almost willing to relinquish power at the moment because i suspect he is very worried it's the same treatment that some of barack is now seeing. force there of publication on my political magazine spiked in london to talk to be a little bit earlier on of course an awful lot more coverage full coverage on our website r.t. dot com of everything that's going on across the middle east all the discontent there for the past six months or so if you want to avail yourself with all the details. three years ago georgia launched an attack on the people of the small republic of south a five day war in which georgia tried to reclaim its old territories claimed hundreds of innocent lives next artie's medina cochon of in the south are set in capital city still struggling to come to terms with the losses. attacks suddenly

around midnight and the first trikes happen hand of the russian piss keeping base and now what you can see behind me what's left of the base there were around two hundred fifty soldiers and they forced. the russian troops to iraq russia sent in troops to protect the republic citizens many of which were russian passport holders and we also were hiding in basements and bonet out buildings overhand twenty three soldiers were killed and many injured and some we managed to talk to they told us that they want to keep this building untouched and of the memory of what happened han meanwhile the morial service began last night or will be held throughout the day these are many starts at eleven thirty five pm that's exactly the time when george opened fire over the such hundreds of people came last night to light candles and to pray for those who were killed three years ago in

a brief but destructive conflict many came with a small children people were listening to the rag and they also released white balloons into the sky and the memory of what happened three years ago that will last it will follow but hundreds were killed and many. was mostly destroyed. and as all of the face of the city has changed within these years still the locals are trying to restore their lives and we managed to speak to some of them who are still struggling to bring their lives back to normal. i come here almost every day . and talk to my son. next to my dear boy. for the last three years. has come to this cemetery where her son is five days. her life into a before and after. her son

a medical college grad. heard the republic's capital teen vall was under attack from georgia she rushed home to help the injured he died in her arms as they lay trapped for days on to the rubble of their apartment block that was in the georgian alterian firing line. as the only thing that makes her life worth living now is her twenty year old daughter they now live together in a newly built house to rounded by families with similar tragic stories. of this area where we're live with specially built to those families who lost loved ones and we're left with nothing in the touts across the street lives of women who lost two children and to the house opposite lives a man who lost both his wife and his child. all these people are victims of georgia's military aggression in august two thousand and eight when they try to

retake control of the breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire nursed my abuse dive i was on duty with them and witnessed average thing that happened that night for kids i saw in violent fire when you know it was going to be our last night but was still carried out peacekeeping mission and tried to be calm. most cool santry enforcement to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks late so russia recognized the sacha's independence. the last three years have changed the face of this thursday a new residential air where new roads jobs and have been burst and have been built but still signs of the conflict remain behind my back are all that's left of the russian peacekeeping pole. for those who lived through the horrors of the brief but

dadley conflict the memories are still there we roll. in the question will i see reporting from south or sacha. i'll be back with a recap of our top stories very shortly here on r.t. the may would of course tonight the world's market may hear them with a report on a volatile day for global finance caused by the debt drama in america and europe. thank you kevin sorry for no graphics on nobody in my section of the rundown russian markets took an enormous hit on monday the r.t.s. is down almost eight percent to my six higher five and a half the biggest one day fall in three years the reverses have been mirrored in markets around the world traders have been reacting to the downgrade of american debt on friday and concerns of europe's ability to get out of its debt mess. the situation is clear in nothing short of a panic we have seen a somewhat panicky mood in the market last week and luckily we had forty eight

hours today just the s. and p. downgrade over the weekend we seem quite volatile session this morning expectedly the market opened quite sharply down then recuperated for its part of the losses and clearly closing still lower and especially is visible plus the blue chip universe which is the easiest to get rid of and what we have so we have what they observe at the moment in terms of trying to charity is that we seem to hedge funds trying to get in the chip names and one of these situations trying to pick up some value plays in the second tier universe. they're going to the markets now in moscow they did this slipped in very deep into the red as we mentioned seven point eight percent on the r.t.s. my six five and a half percent below the fifteen hundred point level on the my six while marriages were losing as long as telecom stocks along with them they were down more than ten percent is whether your eyes liquid stock on the market was down six point three percent and among the few gainers was. just

a launch point four percent on higher gold prices we'll look at them in the second . noun to the mayhem in the u.s. markets where the dow jones is now free and a half percent nasdaq for a half this is as president obama expresses hope that the credit downgrade will give urgency to solving debt problems traders are looking ahead to ben bernanke in speech on tuesday closing picture in europe the footsie down three point four percent dax five percent not even helped by the pledge the european central bank will be buying the silver bed newsweek and it's bank. and gold has been surging record highs on monday as seventeen hundred and ten dollars per troy ounce this hour silver also up one point three percent pretty logical was a business run to the safe stocks with less risk. such as precious metals. and crude prices are showing record drops to light sweet down almost six dollars

there brant more than six dollars this is on worries about the future of demand for crude oil as the main consumer of crude has had its rating downgraded. russian markets indeed nosedive on monday jacob mel from morgan stanley says the country's economy will not be hurt unless oil prices go below eighty dollars per barrel the key thing to watch for russia is the oil price if the oil price goes below about eighty dollars a barrel then rushes in trouble and if it stays above eighty dollars a barrel russia's following because the oil is so crucial for both the parent balance of payments and exports and for the budget. we don't expect a repeat of two thousand and eight when you had a funding crisis in developed markets which hit growth and then hit commodity prices and then hit russia at the moment we still see the support for commodity

prices is still there so although we see expect some volatility some choppiness in looking ahead it looks like russia is reasonably well supported with oil at around one hundred dollars a barrel at the moment all right kevin is next with the headlines you can join my colleague marina course or she'll be here in the studio a moscow time joiner if you get.

wealthy british style. markets. find out what's really happening to the global economy for a no holds barred look at the global financial headlines. because a report. hello

this is our team from moscow. to you want to head global markets u.s. stocks had some from the first trading session for america's credit downgrade this comes on top of wallets all treading elsewhere in the world to the spreading european debt crisis. and tonight too in the u.k. london suffers another round of rioting the new clashes between youths and police in the boroughs of being lewisham after a weekend of violence across the city. and war stories three years after georgia's attack on south of setia we talk to the people still bearing the scars about how they are rebuilding their lives. next the latest round of the bait on people's cross talk show this week talking about what the future may hold for libya so i are just a few moments hungry for the full stop.