markets dropping heavily and with that the debt crisis spreading over europe talk about a new global reserve currency is mounting to spoke to a nobel prize winning economist joseph stiglitz on the eve of bretton woods conference in april but his remedy seems to have only gained currency since that. 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 unrest 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 in wealth in the united states has been enormous. would happen in the last couple decades is almost a quarter of older income goes to the upper one percent around forty percent but now 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 they think it's 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 little bit better than the others but actually most americans are worse off than they were a decade ago and that is that 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. put 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 em for 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 are there 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 meet

a philosophical i find that difficult but they said 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 that allow them to escape taxation and to shape a political process that really we 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. serv 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 at close to zero interest rate and then borrowing back in much higher interest rates an equitable increase it contributes to instability. and it actually contributes to a weakening of global aggregate demand a weak lobel 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 the u.k. being the reserve currency down and if we're going to have global economic stability we needed to move off of. a 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 where l.t. are 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 in support china's supported it france is supported 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 liquidity it can go anywhere in the

world it wants 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 and 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 the meeting here in britain works 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.

this is a cable from the u.s. embassy in colombo to talk about here an apparent june seventh incident of extrajudicial executions the military order to express that they killed nine come back to the situation by instructor and. strongly suggest however that the nine

were executed by the army and then dressed in military fatigues. explain how you know this kind of phenomenon where bodies are dressed up as guerrillas and presented as killed in action and this and this idea that you need to produce bodies actually encouraged paramilitary collaboration this is a cia document central intelligence agency they knew about these activities they knew they were happening they knew about links to paramilitary groups and yet u.s. aid continued to flow. the. party's top stories britain is on full scale alert and scenes of violence and

destruction flare beyond london after three days of clashes between rioters and police the prime minister has called for his holiday to hold an emergency government talks on how to deal with the name. european stock markets are driving up to wall street hit the low not seen since two thousand and eight as the pound i think after the abandoned global deepening euro crisis is fueling antagonism towards the single currency. and america's latest economic slump comes despite a public message of defiance from president obama but as the u.s. credit downgrade triggers a freefall on global markets india claims its economy could actually benefit from the situation. at the latest from the world of sports andrew farmer joins us now understand the london riots are having quite an impact on the football fixture of. england's football team which you supply the netherlands at wembley in the capital tomorrow but that is being called all of the law and that plus the build up to

russia's friendly against. hello there you're watching the sport and this is what is coming up over the next few minutes. no time to experiment russia. will pick his strongest side for the friendly against. us counseled england's friendly with the netherlands at wembley stadium is called off because of the london riots. and how much loss for miss stanley cup one leg sick of value all joined russian side after two decades in the n.h.l. . but first russia coach dick advocaat says he will pick his best eleven for tomorrow's friendly against serbia adding there's no time to experiment with crucial euro qualifies fast approaching however he will have to do without any midfield ego at the knees so he picked up an injury during their win over the

weekend serbia will make a couple of plays themselves. but despite that applecart told r.t. there's still a tough thing i'm russian need to play well to the september's euro qualifies against macedonia and. tells in the proposal his desire to go for the final matches. the players first showed. to do something well also if you know what you are going to pick the serbian national team to play i mean a very similar macedonian over a very good side defensively point serbia. we are still. playing. the game they have a good look we have a good lawyer should lose their. ability to play because of a reasonable time for experimentation is it really just trying to solidify your stance and eleven and playing together. to play. the best long. and

engineers. do so for. i believe and we don't want to take any risk now not for his club but also for the games who are coming up so i sent him back to say that he still must be feeling very confident something stolen a very good position going into these last four games we have all we all we have everything on hand. we've got now three home games as well so we have to do that plus the fact that i have the feeling that in all of qualification we were the better side so now we have to continue in the final for both the question of. how to integrate some friend of mine just recently conference need to put right to margin how do you explain russia's inability to win for you much as over the last year or so i was happy to be on this was a loss for new again against a move in our history i think that was a very good game with the players who are not normally direct who did it really well. for starters there's

a show that they can do it as well. richard damn porfiry putting the questions now elsewhere england's friendly with the netherlands has been called off because of the riots in london the teams were jewed to play each other at wembley stadium in the capital on wednesday the f.a. says the decision is regretful but was made after taking advice from police striker wayne rooney has even appealed for calm on twitter he wrote this is embarrassing for a country stop place. meanwhile u.s.a.'s new coach jurgen klinsmann is preparing for his first match in charge his side play mexico in a friendly with german replaces coach bob bradley and has held its first training session after mexico the usa will play costa rica and belgium in two more friends before qualifying for the twenty fourteen world cup gets underway. it's 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 in or go

overseas to europe included best you can in order to improve your program that's what you're trying to do back to domestic matters and says talk of him being sold from arsenal to angie is just speculation adding he hasn't received an offer from the russian premier league club and he's thirty is only contracted to stay with the gun is for one more season but is thought to be a target ranji but also after is in each the right as of age one man they have just signed off and chelsea as billionaire owner suman carry more continue to splash the cash he also brought in brazilian roberta carlos at the start of the season i will angie have had a good season so far their fifth after getting a two no win over tom at the weekend but iscar still the ones to catch and in case you missed any of the action here is your chance to catch up it is.

coming. up. i. there is only a month to go until the start of the new k h l season and last year's finalists atlanta have added three powerful players to their roster among them

a legacy couple years of he returns to russia after nineteen years in north america he was the first ever russian to be drafted in the first round of d.n.a. chelan 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 when i and the limping champion wasn't offered more than one year deal in the n.h.l. and decided to move to the mosque a region side devalue overall play alongside another russian returning from the n.h.l. . the twenty six year old forward tends to atlanta for the third time in his career and there was another last minute surprise signing but i'm. also joins they say after failing to extend his deal with spartak moscow. he took it as a business and. i have to accept it will get rid of me but. we we we shake hands after all and you know i think. good luck i

told him good luck and. i can be happy that i can stay in the most and you know really find a really quick deal with and i'm really happy to be i just didn't want to record your training camp or you would maybe be getting cs are very grateful what's going to be for going to sign a contract i'm not going to sort of start so i just decided to go this year was really interested to be interested you want to do want to have me on the team and you know to give you two years you know just there was a no brainer for me. with the u.s. open starting at the end of the month tennis players are using this week's masters event in montreal as preparation and russia's nicoletta junker has got off to a good start at the rogers cup beating italian qualify for poland in straight sets there also wins visual free to tsonga and martin del potro stronger is the thirteenth seed at this tournament and got planned for nini after winning the first set six four he won a tight second honest eyebright for the match. portrayed joins him in the origin

time its last year's rogers cup after being sidelined with a wrist injury for most of this season but is coming back to form because infinity are in yemen and six four six locked. down the world number one novak djokovic is in action later this week it will be his first tournament since claiming talksport was given a trophy to mark his new status djokovic is aimed to be the first to win five narcisse titles in a single sings. the mall the world's best golfers are also getting ready for their last major of the year at the p.g.a. championship starts on thursday in georgia in the united states defending champion martin kaymer a masters champion charles sports will have been out on the course of the atlantic country club it is sweltering there at the moment so they were early morning to avoid the worst of the hate many big names though haven't arrived yet after taking part in last year's world golf championship but it will be a fiercely strong field although karmas says being the defending champion won't put

any extra pressure on his shoulders. in the end of the day and doesn't really make a difference you know we're playing a different golf course if we would play the same golf course and of course. i would see myself. well i would expect myself to to to do well again this week all this is a new golf balls i haven't played here any tournament yet. and i think you know it doesn't really matter if you're defending champion or not you know you just have to play the shit if 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 that is the sport for the moment so we've got more when i. will. bring you the latest in science and technology from the ground for.

the future coverage.

in india oh geez availability in the movie the joint the photos the violence the gateway photo the branding period truly told us to. you can a letter to. say don't need to go and. read this the colonel was no joke as a treat. britain is on full scale alert as

scenes of violence and destruction flared beyond london after three days of clashes between rioters and police. here and stock markets are diving after wall street hits a low not seen since two thousand and eight as panicked investors abandoned global stocks. and as the u.s. credit downgrade trigger a freefall on international markets india claims it's a car that may could actually benefit from the situation. it's three pm in moscow this is r t coming to you live from new sanaa with our top story this hour buildings on fire windows smashed and shops ransacked these are the scenes devastating the streets of london police officers in their thousands are deployed to tackle the wall listeners that's now.