u.s. stock markets are dropping heavily and with debt crisis spreading over europe talk about a new global reserve currency is mounting r.t. 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 and 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 increase in the concentration of income in wealth. united states there's been enormous. happen 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 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 were 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 but health rights 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 then out 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 a 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 is 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 em for structure or education or science and said we're think quite the

opposite so do 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 the 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 their 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 unlimited ability to contribute and that means they can use their money to get laws the. 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 have function and their 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 or 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 in much higher interest rates an equitable. 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 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 room 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 the u.k. being the reserve currency down and if we're going to have global economic stability we needed to move off. of the. single currency country being the reserve currency. britain which failed from his perspective in this respect and didn't the u.s. say hey we disagree we want to be the main reserve currency and got their way so in with the u.s. 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 l.t.r. 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. support china supported it france is supported russia supported it so there is a wide understanding not unanimous but a wide understanding of the importance of this idea and i think if the economy global economy remains weak i think will 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 us 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 it can go anywhere in the world it was where's 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 medium sized enterprises is cocked 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 of 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 this interview.

just. the history of this place runs through the centuries. a paradise for archaeologists. and ecological tourists. what one sees all

night destroyed the harmony of life. how this republic got its life by. hoping dreaming and returning. to eat. up stories on our team britain is on full scale alert the scenes of violence and destruction afraid of beyond london after

a three day supply specifically the rioters and police call the prime minister has cut short his holiday to hold emergency government talks about how to deal with the case. of wall street hits a new low since the two thousand a financial crisis this. a public message of defiance from president obama but as the u.s. credit downgrade triggers a freefall one global markets india claims its economy could actually benefit from this situation. plus the eurozone crisis and whether its economic storm of poland's shelving of plans to adopt a single currency highlights a broader european desire to stay out of the euro crisis. and up next the latest words of andrew you know there's always a healthy splattering of rumors when it comes to transfers and football makes it

interesting and today is the exception i absolutely not so we've got knowing he's on his way out of with angie being linked to the russian star who is in moscow for the friendly against more on the sets. hello there welcome to the school was plenty of chance to talk coming up. last fall the stanley cup when a electic a value always on by old russian side apps and after nineteen successful gays in the n.h.l. . what crimes they're asking stars shaaban denies he's moving to russian side angie who are also out of the bank as of age. and institute of more

glory martin karma arrives in georgia as he prepares to defend his p.g.a. championship title. let's start with the i saw him with a month to go until the start of the season last year's finalists atlanta have added three powerful reinforcements to their roster among them a value of he returns to russia to nineteen years in north america he was the first ever russian to be drafted in the first round of d.n.a. i made more than one thousand three hundred appearances in america's top league story we're going to point however the thirty eight year old stanley cup winner and a limpy champion wasn't offered more than a one year deal in the n.h.l. and decided to move to the more skilled region side value of will play alongside another russian return from the n.h.l. nicholai year death the twenty six year old forward returns to atlanta the third time in his career and there was another last minute surprise signing branco. also joins to take the fighting to extend his deal spot that moscow. look at as

a business and. you have to accept you know. get rid of me but. we always shake hands after all and you know i think you call me go. like i told them good luck and i can and i can be happy that i can stay in the most cool and you know we find really quick deal with it 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 great for 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 to go do this deal was i'm really interested to shoulder the interested they want to do want to have me on their team and you know they give me two years and you know i just there was a no brainer for me. in other news russia's football stars have arrived in moscow ahead of their friendly with serbia with coach dick africa having a fully fit squad to choose from my with the crunch game against coming up in the

euro qualifies tomorrow represents a good opportunity to find she and there's not much between russia and the ranks seventeenth in twenty fifth in the world respectively the last time they met was three years ago in a friendly when russia won she won the gold coming from good up new york roman pavlyuchenko who are expected to feature again tomorrow however the visitors do have injury problems branislav event of each and asian stankovic and. meanwhile england's friendly with the netherlands at wembley 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 gang to take place england will be without frank lampard he's withdrawn with a throat infection while arsenal's jack wilshere a man she knights and james carrick injured. and us a new coach jurgen klinsmann is preparing for his first match in charge his side will play mexico in a friendly on wednesday and the german has held his first training session with his

take he replaces coach bob bradley after mexico the usa will play costa rica and belgium in two more friendly before qualifying for the twenty fourteen world cup gets underway. is never too soon to play a really good team you know 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. well back to domestic matters and says talk of him being sold from austin to angie is all speculation adding he has received an offer from the russian premier league club and he's thirty years only contracted to stay with the gun is for one more season but it's thought to be a target that angie we've just signed your b.g. a call from chelsea the club also being linked would send each striker danka laz of age although he also says he knows nothing about a possible transfer by billionaire son among. the saunders anymore because at the

beginning of the season. but i have had a good season so father fifth getting it to know when over to tom at the weekend but still the ones to catch and in case you missed any of the action here's your chance to catch up it is go school.

i. the u.s. open starting at the end of the month tennis players are using this week's masses event in montreal as ideal preparation and russia's make a lot of agenda has got off to a good start at the road just cup beating italian qualified in straight sets there are also wins if you were free to tsonga on juan martin del potro to tsonga is the thirteenth say that this is the only thing go past these fabulous after winning the first set six ball you want to tie second run like right for the my. condo portrayed joins him last year as rogers cup after being sidelined with a wrist injury for most of the season he's coming back to full base and finished

six four six love. and the world number one novak djokovic is in action later this week he received the number one try for years the tournament began his first since claiming top spot and he's aiming to be the first player to win five moss' titles in a single season. while 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 . a masters champion chel swartz will were out on the course at the atlantic country club it is sweltering there at the moment so they were out early morning to avoid the worst of the heat many big names haven't arrived yet after taking part in last week's world golf championship but it will be facing strong field although i says being the defending champion one put any extra pressure on his shoulders. in the end doesn't really make a difference you know we're playing

a different golf course so that we would play the same golf course and of course. i would see myself. or i would expect to to to do well again this week always is a new golf course here any tournament it. doesn't really matter if you're defending champion or not you know you just have to. be can you have the same same field unless you have to beat all those players. and i don't put any extra pressure on what's up and finally history will be made at the fast approaching world athletics championships in south korea with blade runner oscar pistorius set to become the first ever amputee to compete at the top of the twenty four year old dream has come true after being named in the south africa squad and will 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 show merits winning time at the world championships in

berlin two years ago while the story says also eligible to be picked for next summer's london and limpid. good luck to matt is that the sport for the moment we've got more into our start. we'll. bring you the latest in science and technology some of. the future are covered.

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in india g.'s availability in the move to the joint be the children's village the gateway hutto the grand imperial truly the george weston. let's go to. sedona to go and. run to the colonel was her job as a treat. written is on full scale alert scenes of violence of destruction the flare beyond london after three days of clashes between

rioters and police. wall street hits a new low since the year two thousand a financial crisis as fearful investors withdraw from the us stock market and set the shock waves across the board. plus as the eurozone tries to whether its economic storm of poland's shelving wants to adopt the single currency problem once a european desire to stay out of crisis. eleven am here in the russian capital you're watching are now buildings on fire a window smashed and shops looted these are the scenes devastating the streets of london after three days of violent riots well police are deploying thousands of extra officers to contain the situation seems a lawless.