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 an actual 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 older 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 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. 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 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 standard ice cores 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 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 allowed 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 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 and 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 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 precautionary savings that's money not spent so you're saying essentially it hurts everybody to have the u.s. dollar is that was our currency that's right and what we describe what i've described in the u.n. commission that i chair your commission on reforming 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 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 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 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 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 table from the u.s. embassy in colombo to talk about here an apparent june seventh incident of extrajudicial executions the military according to the press that on that day filled nine guerrillas in combat the best situation by instructs you including you know that and there are 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. i.

wealthy british. market. happening to the global economy with. no holds barred global financial headlines. this is these are all top stories thousands of police move on to the streets of

london to prevent. three days of over five hundred people have been arrested the rise. of america's credit rating slowdown of the world's biggest economy. and europe's top bankers says the continent is going through the worst financial crisis since world war two european markets day despite the central bank's move from the. time well the riots in london have also not of course an effect on the number of sporting fixtures most of them on one big match in particular case called details about that. i don't look into the smallest of the headlines. first eleven russia stick out the

gulf because strongest so i thought wednesday's friendly against serbia here in moscow a. while became all style all too catches up with inform spartak moscow is aiden mcgeady as the island to make it feel that because this one claims are a. council england's friendly with the netherlands at wembley stadium is called off because of the riots in london. 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 that as any midfielder eager for the nice off the twenty seven year old picked up an injury during saturday's two know when a tabletop was discussed meanwhile serbia are missing top players but is that evanovich from chelsea and into milan's day and stunk of it but despite that of the cult told richard serbia still a strong team russia will need to play well to prepare for september's european qualifiers against macedonia be jointly ireland no other tells in the proposal

because there's only three dollars to go before the final matches. the players are showed. the world to produce on the world well so if you know what are you going to pick the serbian national team to play i mean a very similar macedonian over a very good defensively point serbia. while we are still not doing as you do it is zero goulard two playing alluded to the sos serve you gave them a good look we have a good relationship was there and so. i didn't believe it will play because i missed one of the time for experimentation was it really just trying to solidify your stance and eleven and get into playing together we tried to play. the best. and engineers some people do so for some promises i believe and we don't want to they can do is now not from this club but also for the games who are coming up so we send them back to we still must be feeling very confident something stolen

a very good position going into the small stuff all games we have all we all we have everything in our own hands and all we've got now three home games as well so we have to do that plus the fact that i have the feeling that all the qualification we were the better side so now we have to continue in the fun for god's sake on a question of. the great some friend of mine just recently transferred something you'd be able to provide to my agent how do you explain russia's inability to win for you much as it was last year or so i was happy to be honest was the last one to go against the guy moved in i was dropping that was a very good game with the players who are not normally the regulars who did really well now the stars as a show that they can do it as well. and while russia plan ahead of next month's year thing 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 he's an ankle injury after being widely regarded as the club's player of the season and he

spoke to our own irishman in the mail i'm joined here today by republic of ireland on sports talk moscow winger aiden mcgeady in thanks so much for taking the time to speak to us first things first how is your injury progressing the scottish labor of . about history and i was a bunch of a boy people for it name one should go and legs and. pushed it out of a mystery of course but now it's just the bell. 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 best experience being so far they're over always been good overjoyed. of enjoyed the way of life for your. picture but then your style but. i've enjoyed this will fall in obviously the football was the main thing the football has been going reasonably well. and i say also that the difficult part is so i'm figuring a way for here in the language what i'm getting slightly better about is well not

so that's going to say are you taking lessons or had one western couple days ago enough that my but in this was a well one and a half but i was just as good because i'm a mother and every single day what's your typical day here at fort acma school quesada regimented to be honest. you come in for ten o'clock in the morning normally and then you see the doctor you get with him you will do sports season or you're here and i while using how your body is trained i love him and. after that you know you're told to stay at the best or so tame or you can call. us football is a good life obviously do you believe the team can finally fulfil what they've been trying to do for years now and when the championship going to start the season that was of no one seemed. you know that the way we started the spot the chairmanship was really really probe i mean who's to say no because going out on and of unbeaten games you know of a spot which i'm sure up to christmas and then basically you know second top or

second place princess and since i think there's always there'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 cheese russia in the first place for me it was the chance to go. to complain a bit of a. ploy to get all the charity to tom bowman to say no i'll stay sober for you because i think it's time for the show and move on is best for everyone but do you miss the old firm you the thrill of the the huge game in glasgow of course sometimes i watch the game you know what i see on t.v. and i want to call me you know you're the best thing in football. to know for me it was probably you know a sunny afternoon at parkhead shall be often a pocket. no it doesn't get much better now but i just finally. on a lighter note is there anything you miss about scotland and home you know there the deep fried mars bars are they i am very proud. of of roger other big five balls

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

that 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 phones on the general public at this time the whole squad would like to appeal for calm and an end to this that is older but has been ongoing. back to domestic matters and reports have resurfaced the internet and star strike as some real as it could yet be on his way to angie in the russian premier league into have confirmed they are included in every talks about the possible chance for its thirteen the cameroon striker would become the world's highest earning player taking home a reported fate of seventeen million euros a year while on monday two more experienced dolls were also linked with moves to the deck is done so might also ring andrei arshavin he's also thirty as twenty eight year olds in the forwards danko lots of it both

a sense that the transfer talk is nothing but speculation however angie did sign brazil world cup legends about the calls in february and call from chelsea last week and they use that for that qualified support from his russia team mates. coaching for money spurs to cousin so this is football and any player could find himself in a situation like this isn't the one he joins another club there were good terms and the all of us are very happy for your is your call and it's not only that some of his nearest friends will all say and i wish such would be revealed 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 human that's what we play for little minor. and finally let's take a look back it's all weekends football film the russian premier league tesco moscow still lead the way despite a two nil home defeat to title rivals unease but it was a drawbar in the dog for spots at the rec which stole the spotlight his goals go

lower.

the man. to. come and. to. come and.

and that's all i think.

the old. coot the latest in science and technology from the ground force and. we've got the future covered. hungry for the full story we've got it first the biggest issues get a human voice face to face with the news makers. this is our team moscow at the top stories chaos reigns thousands of police move on

to the streets of london for the new violence and looting after three days of disorder. shops and businesses closes fears rise of another nights of boylan's have all the latest from london in just a few moments. also u.s. stocks head back down are for a frank admission about the american economy spooks the markets. the federal reserve admits the u.s. economy is weaker than originally thought and risks are only increasing more details from new york coming up. to europe's top bankers says the continent is going through the worst financial crisis since world war two as the central bank buys bonds from the region's crippled economy.