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 i raised was that the increase in the concentration of income and wealth in the united states has been enormous. would happen in the

last couple decades is almost a quarter of old income goes to the upper one percent around forty percent you measure it or 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 the 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 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 it 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 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 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 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 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 cautionary savings that's money not spent so you're saying essentially it hurts everybody to have the u.s. dollar is that it's our currency that's right and what we describe what i've described in the u.n. 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. 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. 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 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 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's support it france's support or 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 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 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.

live. just say.

listen this. history of this place runs through the centuries. a paradise for archaeologists. and ecological tourists. one fateful night shots destroyed the harmony of life. how this republic got its my spine. hoping dreaming and reaching in.

for the full story we've got it first the biggest issues get a human voice face to face with the news makers on. morning news today violence is once again flared up. these are the images and seeing from the streets of canada. trying to corporations are offered a. full story smarties nice thousands of police move on to the streets of london tonight to

prevent new violence after three days of over five hundred people have now been arrested after the riots. u.s. stocks losses following the biggest slump in years the plunge was caused by fears that the downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. and europe's top bankers say the continent's going through the worst financial crisis since world war two european markets have remained uncertain despite the central bank's move to buy on the region's crippled economies . it's a forty five pm here in moscow now those riots in london also an effect a number of sporting fixtures one big match in particular it's got details of that . hello welcome to the. first eleven russia case to count the count will pick his strongest side for wednesday's friendly against serbia in moscow. while the emerald

style altie catches up with inform spartak moscow aiden mcgeady as he caught in midfield a recovers from ankle injury. and england's friendly with the netherlands at wembley stadium is called off because of the wyatts in the. first russia coach to god because says he will take his best eleven for wednesday's friendly against serbia here in moscow adding there's no time to experiment ahead of the foster crouch and european qualifiers however the dutchman will have to do with that is a need for that ego denise off the twenty seven year old picked up an injury during saturday's two know when a tabletop is tesco well meanwhile serbia are missing top players but honestly i've evanovich from chelsea and into milan's day and stunk of it but despite that the club told richard so we are still a strong team and russia will need to play well to prepare for september's european qualifiers against macedonia in group b. joint leaders island. the other tells in the proposal because there's only three law weeks to go before the final matches. the players are to show that. the world

to produce on the world will serve you what are you going to do people serve your national team to play i mean a very similar macedonian over a very good defensively going one serbia the old we are still modern as you do is still goulard to playing glinda to the sos serve you gave them a good look we have a good relationship was there. really because you played everything blue glow because i mean one of the time for experimentation was it really just trying to solidify your stance and eleven and get into playing together. in brazil lou tried to play with. the best engineers are some of the diesel for some promises i believe and we don't want to take any risks 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 in our own hands. 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 the qualification game we were the better side so now we have to continue in a fun for god's sake not a question of. come in the breaks and friend of mine just recently come for something you'd be the right margin how do you explain russia's inability to win for the much as it was last year or so i was happy to be honest or is the last wonder again against a come on in our history i think that was a very good game with their players who are not normally the regulars but they do really well now the stars as he showed that they can do it as well. and while russia plan ahead of next month's european qualifier against ireland it's been a tough couple of months for the republic's midfielder aiden mcgeady the twenty five year old has missed almost hall spots at moscow's clashes this year due to an ankle injury after being widely regarded as a club's player of the season and he spoke to our own irishman you know now. i'm joined here today by republic of ireland sports winger aiden mcgeady aiden thanks

so much for taking the time to speak to us first things first how is your injury progressing it's going to slowly bit of it's about history and obviously branch of the boy people doing that for it nine months with broken legs and. push with one of the homes for me of course but now it's just the skin. and just importantly by playing with another two or three weeks now you've been in russia just about a year now i believe the start of august you came last last year how is your russian experience being so far over always been good overjoyed. of enjoyed from way of life a lot here obviously pixel but don't use that but. i've enjoyed this will fall and obviously the football was the main thing the football has been going reasonably well. and i say also the good part is so i'm to get into a way for here in the language what i'm getting slightly better about as well not so that's going to say are you taking lessons or had one western codebase go enough that my but in this wasn't what i want on the half. i was just as good because i'm

a mother and every single day what's your typical day here at spartak moscow quesadillas you went into bonuses you come in for ten o'clock in the morning normally and then you see the doctor you get weighed and fickle do support she's in her urine model while using her body as a chain eleven and then after you die you are told to stay at the base toss and tell you where you can go. most so it was a good life obviously do you believe the team can finally fulfil what they've been trying to do for years now and win the championship going to start the season that was a few ones. you know that the way we started to spot the chairmanship was really really probe i mean it was to see a movie could go not on and of on be in games you know of a spot which i'm sure up to christmas and then be certain you know second top or second place princess and since i think there's always that's a very very young squad we have. you know i think overall with we have the proof

that the just put into practice you could have really gone to your pick of clubs why did you choose russia in the first place for me it was the chance to go. to complain about a. ploy to get all the charity to tom bowman to say no i was the show to show you because i think it was time for me to show and move on it's best for everyone i do miss steal from you the thrill of the huge game in glasgow of course some papers are a must be game you know what i see on t.v. and i want to call me. the best thing in football and for all to know for me it was probably you know a sunny afternoon at parkhead so i'll be off in a pocket. no it doesn't get much better now but i just finally. on a lighter note is there anything you miss about about scotland and home you know there the deep fried mars bars are they i am very right course there are three bars of the roger other big fireballs will. ever of course as well as those home comforts you must share just. offering the mainframe even ice is going to be just

not going this year period show for this but still it's always a part of life. there must you know there are so fresh in shops and stuff for go watch over here and the russian cuisine those are great for me thanks so much for your time pre-show for the show all it shows. well staying with football and the england squad held a training session this tuesday only to later find out that their friendly with the netherlands was called off because of the riots in london the teams with you to play each other at wembley stadium on wednesday the football association says the decision is regrettable but had to be made after taking advice from the police as the f.a. cannot guarantee the safety of either the fans or the players' strike away rooney has even appealed for calm on twitter saying this is embarrassing for our country stop please and his fellow players and officials also joins the course of support. on behalf of the squad we'd like to say that we're disappointed but tomorrow's game

has been called off. but obviously we understand the reasons behind this decision and support it. we've all seen the terrible pictures on the television and the most important thing at this time is the safety of the fans and the general public but this time the whole squad would like to appeal for calm and an end to this traditional order but it's been on going. back to domestic matters and reports have resurfaced that milan star striker some real could be on his way to luncheon in the russian premier li like i were a striker has emerged as a top target for the cash rich club at thirty he would become the world's highest earning player taking home reported fate of seventeen million euros a year while on monday two more experienced stars were also linked with moves to the dagestan sunlight also when the and they are shoving things all sides thirty and twenty eight year old state forward dietary laws of it both have since said the transfer talk is nothing but speculation however and he did sign brazil world cup

legend for better call us in february and judicial call from chelsea lost weight and moves that provoked qualified support from his russian teammates. because of the bodies of mr cousins to this is football and any player could find himself in a situation like this when he joins another club on very good terms with all of us are very happy for your is your golf and it's not a likely that some of his nearest friends will also end up with such a favorable conditions. everybody choose their own way that's why there is nothing left for us other than to be happy for the players who move to new clubs and try to earn money to support their families a human that's what we play for little minor. finally let's take a look back at all the weekend's football from the russian premier league tesco moscow still lead the way despite a to nail him defeat to title rivals in eight but it was a drama in the dog for spots like attack which stole all the spotlight his girls girl.

and that's all this was i think.

in the united kingdom she's available in the house bill and. the old way even if. it gets in the millstone hutto some country house holiday in the pool. halls to remember the groom the chesterfield. the royal the rubens hotel. this is the headline is chaos reigns thousands of police move on to the streets of london

to prevent. looting of the three days of disorder. some businesses close is fear is rising another night simple islands have all the latest from london in just a few moments. u.s. stocks closed losses following the biggest slumping years after america's credit rating downgrade. europe's top bankers says the constant of those going through the worst financial crisis since world war two as the central bank loans from the region's crippled economy. welcome this is just off the nine pm choose the scope. and first some sixteen thousand police officers who patrol the streets of london choose day now.