you spoke to noble nobel prize winning economist joseph stiglitz on the eve of the bretton woods conference in april but his remedies seems to have 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 you measure it of 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 of old europe as ossified the data. show that meanwhile we see protests taking to the capitals of states like wisconsin so is this 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 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 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 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 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 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 the 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 that allow them to escape taxation and to shape a political process that really we work 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 and unproductive economy and even that one percent will suffer and that is the link between what happened in tunisia and mexico. and in egypt in and other countries where they divide has grown and. it's meant that their economies have 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 or 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 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 the u.k. being the reserve. see 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. britain which failed from his perspective in this respect and didn't do us a 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 and support china supported it francis 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 the 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 china's 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 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 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 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.

please. lists lists. lists. lists. us.

to get. us it's wealthy british scientists. tirelessly. market why not. find out what's really happening to the global economy

with much stronger for a no holds barred look at the global financial headlines tune in to conjure reports . outnumbered and beleaguered police struggle to restore order in major british

cities locked in a spiral of violence and looting over five hundred people have been arrested after riots the british prime minister called pure criminality. pure from bankers says the continent is going through the worst financial crisis since the second world war the turmoil has already prompted some nations to halt plans to join the once watched desired euro currency club. and european stocks tumble following the biggest slump in the u.s. for years the plunge was caused by fears that downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. next to sport with kate. thank you for joining me for the sports update this tuesday afternoon and here top stories first eleven russia coach dick advocaat will pick his strongest side for

wednesday's friendly against serbia in moscow. while council of england's friendly with the netherlands away the stadium is called off because of the riots in london . last home a stanley cup winner elects a couple of joints russian side outland off almost two decades in the n.h.l. . but first russia says he will pick his best eleven for wednesday's friendly against moscow adding there's no time to experiment ahead of the fast approaching european qualifiers however the dutchman will have to do without any feel that denise off the twenty seven year old picked up an injury during saturday's two know when a tabletop is taste but meanwhile serbia missing top players than a sad event of each from chelsea and into my lungs danced on cabbage but despite that of the car told richard found port seat serbia still a strong team and russia will need to play well to prepare for september's european qualifiers against macedonia and we jointly does ireland. no other tells in the

proposal because there's only three dollars to go for the final matches. the players are showed a. great deal to do something the world will serve you know what are you going to pick the serbian national team to play i mean very similar in macedonia no very very good side defensively going one serbia the old we are still modern if you do is or go allowed to play england it's a serve you gave them a good look we have a good relationship is down so we are going to go to every little play because of it's not over time for experimentation is it really just trying to solidify your stance and eleven and get playing together. to play. the best twenty engineers some of the diesel for this is i believe. we don't want to take a new is now not for his club but also for. the games were coming up so. we still must be feeling very confident something stolen a very good position going into the last full games yet. we have everything on hand

so we get 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. the greats and friend of mine just recently transferred something you'd be looking to put right tonight and how do you explain russia's inability to win for you much as of last year or so i was happy to be on this was a loss for a new game against a move in our history i think that was a very good game with the players who are not normally the regulars who did really well now the stars there's a show that they can do it as well. what else where indians friendly with the netherlands has been called off because of the romance in london the teams are due to play each other at wembley stadium on wednesday the f.a. says the decision is regrettable but had to be made after taking advice from the police striker wayne rooney has even appealed for calm on twitter saying this is embarrassing for our country please stop. meanwhile the usa thank you again

klinsmann is preparing for his first match in china much as his side to take on mexico in a friendly in philadelphia on wednesday the german replaced coach bob bradley on july the twenty ninth and has held his first training session after mexico the usa will play costa rica and belgium in two more friendly's before qualifying for the twenty fourteen world cup gets underway. it's never just 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 go overseas to europe and play the best you can in order to improve your program that's what you're trying to do. back to domestic matters and reports have resurfaced that into milan star striker some you could be on his way to entry in the russian premier league the current striker has emerged with a top target for the cash rich club at thirteen he would become the world's highest earning player taking i reported fee of twenty million euros

a year while two more experience stars were also linked with news to the dogs downside on monday arsenal we know and they are shopping who is also thirty and twenty eight year old is a need for done for last of which both have since said the transfer talk is nothing but speculation however and he did sign brazil world cup legend for a better call us in february and you should recall from chelsea last week. moving across the ice now and with less than a month to go until the start of the new k h l season last year's finalists atlanta added three powerful players to their roster among them alexei cover you off who returns to russia after nineteen years in north america he was the first ever russian to be drafted in the first. the n.h.l. made more than one thousand three hundred appearances in america's top league for more than a thousand points however the thirty eight year old stanley cup winner and a limp dick champion wasn't offered more than a one year deal in the n.h.l. and decided to move to the boston region side you also play alongside another

russian returning from the n.h.l. nikolaus you have to have over twenty six year old forward returns to atlanta for the third time in his career and there was another at last minute surprise signing void which also joins the team after failing to extend his deal with spartak moscow . they took it as a business and. you know i had to accept it and you know so they get rid of me but . we shake hands after all and you know i think. he called me good luck i told him good luck and i can i can be happy that i can stay in the more school and you know really find a really quick deal with it and i'm really happy to be i just didn't want to wait until the training camp or you would maybe begin to see these are very grateful what's going to operate and maybe for going to sign a contract i'm not going to start it up start so i just decided on just this year was really interested in 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. tennis now with the u.s. open starting at the end of the month the world's best players are using this week's masters event in montreal as preparation rushes nickel i'd have a tank i made a good start at the rogers cup italian qualifier flavio in straight sets while there were also wins which i will fight song at one. song that is this thirteenth seed at this tournament and managed to get fabio fognini after winning the first set six. point second the tiebreaker to take the match. out of form martin del potro also triumphs the argentinian missed last year's rogers cup after being sidelined with a wrist injury for most of the same. but he's coming back to four beating in new york and name and six for six of. the new world number one novak djokovic is in action later this week it will be his first tournament since craving top spot just given a trophy to mark his new status which is aiming to be the first player to win five

masters titles in the single season. now the world's best golfers are also getting ready for their last major of the year as the p.g.a. championship starts on thursday in georgia and the united states defending champion boston climat and masters champion charles schwartzel have been out on the course at the atlantic country club temperatures there are currently in the mid thirty's so the players were early in the morning to avoid the worst of the face many big names come to ride to get around to taking part in last week's world golf championships but it will be a fiercely strong field climber says being the defending champion put any extra pressure on his shoulders. in the end of the day it doesn't really make a difference you know we're playing a different golf course if we play the same golf course and of course. i would see myself. or i would expect to to do well again this week i always use a new goal for the day here any tournament that. i think it doesn't really matter

if you're defending champion or not you know you just have to play you care and you have the same same field unless you have to beat all those players. and i don't put any extra pressure over them. and let's finish where we started and take a look back on the football weekend that was in the russian premier league test the moscow are leading the way despite a two male defeat by title rivals in eight but it was a drama in the dark for spots like attack that stole the spotlight his goal is going to.

and that's all i've been. we'll. bring you the latest in science and technology from around plus. we've got the future covered.

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india oldies are made to believe the move to join the victims of violence the gateway to the ground in syria truly torturously. you can a letter to. say don't need to go. run to the colonel was a job as a retreat. chaos reigns outnumbered and beleaguered police struggle to restore order in major british

cities locked in a spiral of violence and looting. europe's top bankers says the continent is going through the worst financial crisis since world war two prompting some nations to halt their plans to adopt the crippled euro. and european stocks are volatile following the biggest slump in the u.s. for years amid fears the downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. it's five pm in moscow this is archie coming to you live i mean you see now with our top story this hour the random violence which is gripped london for three days spread like fever across the u.k. overnight leaving a trail of destruction smashed windows.