over a year of talk about a new global reserve currency is mounting a large he spoke to a nobel prize winning economist joseph stiglitz saw the eve of bretton woods conference in april but his remedy seems to have only gained currency since then. joseph stiglitz is a nobel prize winning economist in columbia university professor and he's pushing for a rethinking of the global economic framework in the wake of the financial crisis now he's come with other economic and policy leaders to the historic bretton woods where decades ago a conference here led to the formation of the international monetary fund and named the u.s. dollar as the reserve currency and they've gathered to rethink some of those very policies he joins us now to tell us more about it i want to thank you so much for joining us professor now you've written recently about the increasing disparity between rich and poor in the united states and you've even compared these conditions to what led to the other us we've seen in the middle east so what do you

think are the factors that led to this and what do you think the consequences will be with the point raised was that the increase in the concentration of income and wealth in the united states has been enormous. which happened in the last couple decades is almost a quarter of the income goes to the upper one percent around forty percent but you measure it all the wealth goes to the upper one percent americans used to think of themselves as a land of opportunity everybody else thinks of themselves as a land of opportunity and the old europe is ossified. the data. don't show that meanwhile we see protests taking to the capitals of states like wisconsin so it's reaching a tipping point i think they're beginning to realize that most americans are worse

off than they were say a decade ago so it's not just that all this wealth is going to the top if everybody we're getting better off you can say well some are doing a little bit better than the others but actually mooste americans are worse off than they were a decade ago. and that is if you include the sense of insecurity the loss of jobs that will it insecurity about health reich's that most people in europe take for granted in the united states people if they lose their job can lose all the access to health care and one of things that i raised in my article was that the put not only the political consequences but the economic consequences that there are many things that any society has to do together. you have to. get education investments in technology. infrastructure roads.

that means there has to be certain degree of consensus for a society to function even economically these are things the government has to do but if you have a very split society there are going to be very different views about what's important if the rich can buy their own parks they don't need to have public parks if the rich can buy their own education we don't have to have public education if the rich can buy their own health care we don't have to have good health care for most americans and that's where we're winding up today so the people at the top that one percent. are using their political power to try to preserve their wealth and meanwhile making sure that the government doesn't do what is necessary for the prosperity the functioning of our entire society we're not seeing an increase in funding for empress structure or education or science and said we're think quite the opposite said you think this country is headed in the wrong direction that's

right and that was what was brought home so forcefully by the what was going to happen in wisconsin here you have people saying over the country we need to improve education. but what are they doing cutting teacher salaries now you're not going to attract the best people into education if you don't pay them i mean that simple economics and it's not a surprise in that context that to day in those standardized scores that rate education all over the world united states is really not doing very well so who's to blame here is it politicians asleep at the wheel or out of touch with reality or other greater flaws in the system it's both i mean there are some real. deep flaws in america's political system. our campaign contributions supreme court said that corporations are people i mean a philosophical i find that difficult but they say because we can't restrain the rights of free speech corporations have limited the ability to contribute and that

means they can use their money to get laws that allow them to escape taxation and to shape a political process that really works for them but not for the rest of the country and what i argued in my paper in my article was this was shortsighted if you don't make these investments we're going to wind up in a divided society in an unproductive economy and even that one percent. will suffer and that is the link between what happened in tunisia and mexico. and in egypt and in other countries where they divide has grown and. it's meant that their economies function and the societies have not functioned

speaking of not functioning well what about the u.s. dollar because you're someone who is calling for a new global reserve currency but why because some say what's the alternative really what i've argued for is a creation of a global reserve currency. reserve currencies are you might think of a store of value. and the dollar has been very unstable. understandable given the. difficulties you might say of american economy you know our performance was not a stellar. but the fact that in a modern globalized economy twenty first century it's an anachronism that a single currency would play the pivotal role that the dollar has played but i argue and i've argued my book making globalization work is that the dollar reserve currency system contributes to inequality. that poor

countries are lending to the united states or close to zero interest rate and then borrowing back a much higher interest rates an equitable increase it contributes to instability. and it actually contributes to a weakening of global aggregate demand a weak global economy because if countries are setting aside. literally hundreds of billions of dollars. saved the cautionary savings. that's money not spent so you're saying essentially it hurts everybody to have the u.s. dollar is the reserve currency that's right and what we describe what i've described in the un commission that i chair the river commission on the reform the global financial monetary system. explains how we can create a global reserve currency as really interesting to be here at bretton woods talking about that because keynes argued for this seventy five years ago. in the

aftermath of the great depression he understood. the links between you case problem in the u.k. being the reserve currency down and then if we're going to have global economic stability we needed to move off of the. single currency country being the reserve currency. bretton woods failed from his perspective in this respect and didn't the us say hey we disagree we want to be the main reserve currency and got their way so with the us still have that same power if world leaders got together again today for another bretton woods conference i think at that same meeting we're in bretton woods the world is markedly different china has close to three trillion dollars of reserves about a third of the global reserves about nine trillion dollars you're holding three trillion dollars you have some voice in what kind of reserve currency system you

want to have and china has been very clear that it worries about the current dollar based reserve system right after un commission came out and support china's supported it france's support it russia supported it so there is a wide understanding now you know animists but a wide understanding of the importance of this idea and i think if the economy global economy remains weak i think they'll be more interest as one of the remedies to the current instability and weakness in the global economy has also been critical of the united states for its policy of quantitative easing and if i've read your writings correctly you seem to be saying they have a point so what is that point the point is the u.s. is creating liquidity us work very hard to open up global financial markets and one of the implications of that is when you create with quiddity you can go anywhere in the world it once where is it going not where we need it here in the united states

it's going where it's not needed in china and brazil and other countries that don't want it so it's not only they don't need it they don't want it. we have to fix the banking system the united states our system of getting money. into small and medium sized enterprises is cog and the federal reserve has not fixed it you know they they contribute the creation of a crisis they didn't understand the basic economics and that's one of the purposes the meeting here in bretton woods but because they didn't understand the problems that they were creating they didn't really understand how to fix it and yes they brought us back from the brink they saved the big banks but they have not really gotten our economy going again i want to thank you so much for the center.

it's just so. says. super. wealthy british.

market. find out what's really happening to the global economy with. no holds barred look at the global financial headlines kaiser reports.

just. the top stories on our t.v. britain is on full scale alert as seen some violence and destruction of beyond

london after three days of clashes between rioters and police the prime minister has cut short his holiday to hold of her can see government talks and how to deal with them they have. wall street it's a new low since the year two thousand a financial crisis and that's despite a public message of defiance from president obama but it's fearful investors withdraw from the u.s. stock market sending shock waves across the world and here claims its economy could actually benefit from the situation. plus as the eurozone crisis whether it's economic storm or a hole under shelving of wants to put off a single currency highlights a broader european desire to stay out of the euro crisis. and now it's time for the sports news with andrew. hello there you're watching the sport and these are the headlines. at last former

stanley cup winner a legacy of value always unveiled at russian side outland after nineteen successful gays in the n.h.l. . plus one transfer arsenal star shaaban denies he's moving to russian side angie you were also asked to down caroline city. and after more glory martin can arrives in georgia as he prepares to defend his p.g.a. championship title. but let's start with the ice hockey and with a month to go until the start of the new k h l season last year's finalists atlanta have added three powerful reinforcements to their roster among them a value of he returns to russia after nineteen years in north america he was the first ever russian to be drafted into the first round of the n.h.l. made more than one thousand three hundred appearances in america's top league scoring more than a thousand points however the thirty eight year old stanley cup winner and olympic champion wasn't offered more than a one year deal in the n.h.l.

and decided to move to the moscow region side the value of will play alongside another russian returning from the n.h.l. . the twenty six year old forward returns to atlanta for the third time in his career and there was another last minute surprise signing as former spartak moscow kathleen blanco. boy cheech also joined the blue and yellow face to fade in to extend his deal with sparta. we took it as a business. to accept a little get rid of me but. we shake hands after all and the more i think you call me good luck with all them good luck and go you can i can be happy that i can stay in the most. and you know we find really quick to deal with and i'm really happy to be i just didn't want to wait until all the training camp or you would maybe begin to see these are very grateful what's going to happen and if we're going to sign a contract i'm not going to sign

a contract so i just decided i just wasn't really interested the shoulder be interested they want to do want to have me on their team and you know to give me two years and you know i just there was a no brainer for me. now russia's football is football stars have arrived in moscow ahead of their friendly with serbia with coach to get the car having a fully fit squad to choose from with a crunch game with arlene coming up in the euro qualifiers tomorrow's match represents a good opportunity to find and there's not much between russia and serbia who are ranked seventeenth and twenty fifth in the world respectively the last time they met was three years ago in a friendly when russia won two one goals from public and could have reacted roman public it's expected to feature again tomorrow however the visitors do have injury problems. and stank of each act. meanwhile england's friendly with the netherlands at wembley is still set to go ahead on wednesday despite the riots in london the english f.a.

say they will take advice from police later today but for the moment expect the game to take place england will be without frank lampard who's withdrawn with a throat infection while arsons jack wilshere united's jamie carragher also injured . tomorrow u.s. asian you know you can klinsmann is pairing to his first match in charge his side play mexico in a friendly on wednesday and the german is held his first training session with them he replaces coach bob bradley and after mexico the usa will play costa rica and belgium in two more friendly before qualifying for the twenty fourteen world cup gets underway. it's never too soon to play a really good team you know if that's what you want to do in order to grow in order to improve your your team and give them the best experience possible you know if you could play mexico brazil argentina those are the games you want to play you know or go overseas to europe including best you can in order to improve your program that's what you're trying to do back to domestic matters and. talk of him being sold from arsenal to angie's all speculation adding hasn't even received an

offer from the russian premier league club in his thirty's any contract to disdain with the gun is for one more season but is thought to be a target for angie we've just. call from chelsea the club have also been linked with any strike and. he also says he knows nothing about a possible transfer. owned by. carlos the beginning of the season. and you've had a good season so far getting it to know when over time at the weekend but still the ones that catch him in case you missed any of the action here's your chance to catch up it is.

and i with the u.s. open starting at the end of the month tennis plays a using this week's masters event in montreal is ideal preparation make a lot of jank has got off to a good start he beat italian qualifier. six three six three sixteen seed when

martin del potro and joe were free to song go also progress to the next round beating your opinion in five years from the respectively also getting past the first round with stanislav wawrinka the swiss he's ranked fourteen in this tournament having little trouble against arjen time david nalbandian six one six for the final score on the day. the cranes alexander focal point of had a harder time of it he was pushed to three sets by canada's volcker whose two hundred sixty nine places below him in the world rankings the local favorite winning the second set seventy five to level the match but of had the measure of him in the decider winning that six four. the world's best golfers are preparing for their last major of the year the p.g.a. championship starts on thursday in georgia in the united states defending champion martin kaymer a masters champion charles waltz will have been out on the course at the atlantic country club it's sweltering at the moment so they were early to avoid the worst of

the hate many big names haven't yet arrived after taking part in last week's world golf championship but it will be a face and strong field although karma says being the defending champion one put any extra pressure on his shoulders. in the end of the day you know it doesn't really make a difference you know we're playing a different golf course if we play the same golf course then of course. i would see myself. or i would expect to to do well again this week always use a new golf course i've played here any tournament it. and i think it doesn't really matter if you're defending champion or not you know you just have to play because you can you you have the same same field unless you have to beat all those players . and i don't put any extra pressure on myself and finally history will be made at the fast approaching world authentic championships in south korea with blade runner oscar pistorius set to become the first ever can paint at the top of bend the twenty four year old's dream has come true after being named in the south african

squad on the run on these carbon fiber legs in the four hundred meters as well as the four by four hundred meter relay the story is called the qualifying time last month it was also his personal best time of forty five point zero seven seconds which is just over a second slower than the sure merits winning time at the world championships in berlin years ago well the story is also eligible to be paid for next summer's olympics. and that is the sport for the moment more a bit later on the weather is next. well. here's the latest in. the future.

looks.

the british. market. find out what's really happening to the global economy with. no holds barred global financial headlines kaiser reports.

in india in the movie the joint people show. the great way to go to the grand imperial. told us to. run to the colonel was her job as a treat. to him as our full scale alert scenes of violence and destruction of. after three days of clashes between

rioters and police. it's a new low since the two thousand and eight financial crisis has fearful investors withdraw from the u.s. stock market sending shock waves across the world. plus as the eurozone tries to whether its economic storm poland's shelving to adopt the single currency highlights a broader state of news of the euro crisis play. coming to you live from central moscow you're watching. now buildings on far windows smashed and shops looted it will these are the scenes devastated the streets of london after three days of violent riots police are deploying thousands of extra officers to contain the situation as.