and mantra staying in north west of england with a large group of youths throwing missiles at offices they ransom violence is entering its fourth day although the worst hit areas of south london appear calm lower and. london mayor boris johnson you know riots devastated clapper to a mixed reception delivering the government's message to rioters that they all feel the full force of the law was going to take a few years. but who's going to catch them across england and wales more than eleven thousand police have already been laid off in austerity measures by two thousand and fifteen a total of thirty four thousand will go meanwhile london and other cities are taken over by thugs the police have not been anywhere where the police if the police were hit you think that would have been i think any surprise little bit better i don't

think they're doing everything they can i don't mean to be more violent i think. while police numbers are being cut the estimated cost of the war in afghanistan from two thousand and one to the end of last month was thirty billion dollars all taxpayer cash british forces are also heavily involved in libya despite the ministry of defense being required to lose thirty two thousand stars m.e.p. general patton says money's being spent on foreign wars that should be spent at home i think that the point has come where we have to call in the armed forces what we're seeing now is. criminality across the whole of long what we should do in my view is pull our troops back from these pointless wars in afghanistan in iraq. as money spent on two wars in foreign lands parts of london birmingham liverpool and bristol i sensually get to partly because of high immigration. but also because

young people in these communities have no prospects the bored and disaffected and as the cuts bite that's not going to improve a class youth worker told me four out of eight youth centers have closed since last year it's about investing in our communities we take away the money from the police in the way the money from the youth work. all the art could never imagine such consequences to be only you know but you will get consequences tuesday night so sixteen thousand police officers on the streets of london according to the metropolitan police the force is being stretched more than ever before and increasingly londoners are talking about taking matters into their own hands bringing with it to ation under control is just the beginning of folding this problem it's not just about cleaning up it's about communities coming to terms with the fact that even at the current numbers if violence is widespread enough the

police seem unable to retain control the feeling of insecurity in these communities is likely to remain for some time particularly if police keep disappearing from the be your emmett r.t. clapp and london and journalist ben cohen from london says the riots don't come as a surprise when the prime minister who has no experience of in a city problems. i think you could look at this on two different levels the further we look david cameron of course these these kids who are looting shops and destroying people's properties are committing criminal acts and they should be you know they should be dealt with that's for sure but when you have someone like david cameron a product of of the richest schools in the u.k. he's a he's a white guy with absolutely no experience whatsoever of any type of poverty a type of material poverty what does this guy know about youth culture what is this that i know about the problems facing in a city black kid he doesn't have a clue there's a lot of anger in london about these varieties and rightfully so because they are

committing criminal acts by the larger problem is that you have an entire class of people that feel completely alienated from their society and this the rioting and anarchy that you seeing on the streets of london is is a product of that massive alienation i mean these are some of the most deprived areas you know that i've seen in any major industrialized city and the general sense on the from running into kids on the street is that they did they don't care they have no interest in anything to do with society or community two thousand a crash financial collapse has hit poor people extraordinary hard i mean really really hard and it's made inequalities in far far worse you've got very low social mobility in britain in the first place and then you've got government coming in passing more sturdy measures there's going to further disenfranchise and already disenfranchised generation of kids that just they don't have that we see in the

future for themselves and that was journalist current commenting on this is he. following the deep in the global economy and to america's prized aaa credit rating downgrade many are predicting a power shift in the financial arena and according to international monetary fund projections china could leave the united states to become the world's largest economy by twenty sixteen for some inside an across live to our correspondent priya sridevi new delhi priya very nice to see you so how grounded is this report i mean that china is to become the world's largest economy after the u.s. fall from grace. well yulia many analysts have been thinking that that could happen for quite a while now and obviously the latest news with the united states debt ceiling debate and then obviously more recently the credit downgrading. of the u.s. economy is leading even more people to believe that this is going to happen even

sooner than expected if you look at the way china has dealt with the financial crisis there economy has actually been growing by forty five percent between the year thousand and seven and two thousand and eleven now if you look at the u.s. economy in comparison the g.d.p. there only grew by less than one percentage point and now as you pointed out the latest international monetary fund projections are showing that china will actually china's economy will actually grow bigger than the u.s. economy by twenty sixteen which will be the first time in more than a century that the united states economy will not be the biggest economy in the world. so what's the secret of their success. that's an excellent question yulia a lot of people say that you know china's economy focuses on exports it's obviously seen as the manufacturing hub of the world and in addition to that china has been able to create millions of jobs for their low skilled workers they've also been

focusing a lot on technology which has created millions of jobs for the high skilled workers as well so they've really been able to diversify their economy they also have been focused on retaining jobs domestically and making sure that foreign investors aren't be aren't able to compete with certain domestic industries which many analysts say is something that other countries really haven't been able to figure out a jury in this financial crisis it's also important to note that china's economy is still very much state led the government controlling most of the financial sector there and you know also china's banks have been relatively shielded during this financial crisis obviously there have been more regulations that have been put on western banks as far as lending and things like that not so much happening in china it's quite interesting as we reported yesterday opponents minutes to saying his country's going to benefit from the global crisis is this how agent seize it.

absolutely you know the sense here in india is that people are actually quite optimistic about the way india is going to react to this global financial crisis obviously initially we were seeing asian markets falling but people are saying that there really is only a short term impact and that in the long run that asian countries are actually better equipped at dealing with this financial crisis obviously as i pointed out earlier asian economies including india china and japan have actually been growing since two thousand and eight while obviously that's not really happening in the west as significantly also you know foreign investors if they start following the path of risk aversion and moving away from u.s. treasury bonds many people are saying that they could start investing more in asian markets like india and china so many people over here are actually seeing all of

this as an opportunity for that shift to really happen for more of the international community to get on board and move away from the dollar as the reserve currency obviously of the rear dollar have been falling in recent weeks and many people are saying this is a great time to move away from that to some sort of basket currency that could include a lot of the asian powerhouses like japan and china. reporting that denny priya many thanks indeed. and the u.s. federal reserve has admitted the u.s. economy is not as strong as it could force it to keep interest rates at record lows for the next two years to help calm investors the commons pushed u.s. stocks into the red but some late trading markets recover then doses. of details from. before the federal reserve did release a statement many traders investors were anticipating that the fed would do

a bit more to help reassure nervous investors but it doesn't seem to be the case the federal reserve met for the first time on tuesday after the u.s. is credit rating was downgraded from aaa by standard and poor's so this was a meeting that came right after that happened and the federal reserve announced that the u.s. interest rates will be kept at record lows for another two years through twenty thirteen we should mention that interest rates in the u.s. have been near zero since december two thousand and eight. the u.s. and you know infested the rest of the world a lot of a lot of experts believe that it is actually hurting the economy by keeping interest rates so low bank banks are squeezing lenders for more profits and then it becomes a systemic kind of web where everyone squeezing one another and stocks initially

fell after the federal reserve did make its announcement the fed did use some kind of somber language to describe the america's current economy saying that this year the economy grew at a much slower pace pace that the fed actually anticipated you don't have to pay attention the dow jones or the s. and p. to understand that with fourteen million americans out of work and six point six additional americans so discouraged from finding the jobs they stopped looking there is a problem when you have more than forty million people. food stamps when you have one million americans that have lost homes last year and another one million expected to lose homes this year you understand this is a significant crisis and this is a crisis i can tell you from what i've seen reporting in different states or of this country it's a crisis that's not being tended to in a way that it's supposed to it's not going away if anything it's deepening it is getting worse and a lot of cuts that are now being made by the federal government are cuts go into

social programs such as. food stamps so you don't have to be an economic expert to understand that the situation right now is very tense tense and confidence clearly is declining. and nicole neatly of the independent women's forum believes the u.s. is no longer a safe bet and the young and the poor growing to be those west hated by the effects of excessive government spending. when s. and p. downgraded us stands and poor's which is one of the major radiations they actually weren't the first one to do so there were three minor ones who had done so before and one of the minor houses actually has a really good track record of having predicted a lot of the market trends so that being said this is something that i think the tea party has been cautioning about and that a lot of people were concerned about would the debt compromise actually address the underlying issues because that was one of the complaints about the boehner bill that it actually would not address a lot of structural problems as you said there are still major spending going out

of the compromise really doesn't touch entitlements which are the biggest driver of cost we're really we're not out of the woods yet because if and when the interest rates to rise when brink he is not allowed to print more money perhaps what's going to happen is that banks will be forced as interest rates rise banks will be forced to increase their capital reserves and so liquidity is going to decrease because they'll just have they'll have to sit on more money and americans will have less access to credit this is going to hurt the poor most it's going to for young people most people who who need credit want to start businesses and i think this is we are we are going to see a continued decline what we need is we really need to address our long term entitlement problems we need to restructure social purity we need to start to restructure medicare and medicaid and we need to talk about how to scale back some of the obamacare provisions that continue to expand the size and scope of government because without doing that we still are with us quite frankly on credit worthy. european markets bounce back after last week's heavy losses but the u.s. central bank she was that financial system is now in its worst state since world

war two meanwhile the banks start buying government bonds from spain and italy to pull them out of the financial crisis something that germany strongly opposes trading has been a fickle with fears eurozone and u.s. debt could hold growth already struggling economies and dr christian right from the front for technical technical university says the european central bank's move is actually doing more harm than good if you look at the mere size of a country like italy and i am convinced that it is not possible to do just let's say straightforward as a matter of fact what the e.c.b. is doing here i think is perhaps to do it quite strictly is a breach of trust they encourage certain behavior so that some countries can free ride on the expense of others and this is something which in the long run rather threatens the euro area than strengthen it is. we should be aware if you look at

the yeah it spreads on government bonds they are now almost back. to the pretty euro levels and i would say this is something which shouldn't amaze us too much and it shows that in the whole entire that isn't the time for the success of the euro and nothing very much has changed if we enter a direction at least be encouraging more and more selfish behavior by individual countries i would say this is a real threat for the whole euro area. either the government has accused nato or killing dozens of civilians in the west of the country tripoli claimed at least eighty five people died during recent as trikes officials say nato bombed south of the city of his return to allow rebels to enter the area the alliance says the targets were military meanwhile the head of libya's rebel movement has sunk the entire executive committee which fact functions as a cabinet that follows decimation of the commander of opposition forces last month

and steve in london author and blog with says it's all because there's no agreement on the rebel government and nato is losing the war. the rebel camp isn't this really easy to keep of camilli was this they were unconfirmed reports that the rebels would sit in such disarray that they were literally contesting among each other some people call it the stay only others say may always last is no class always going to win this war militarily but they certainly can win by imposing its really hard shifts on the libyan people legal claims when i start getting used to billions with known killings the billions they've made it one quarter call mistake new york is targeting civilians there is part of the strategy when we ask what all those bombing school was only universally if there's like killing civilians i don't

know what is. so other stories making the headlines this hour at least five people have been killed and eighteen injured in a quiet show over unlawfully seized government land in the afghan capital kabul around two hundred people took part in a gunfight between local residents and guards the old conflict left several houses destroyed and key roads blocked security forces resorted to using water cannon to try and disperse the crowd. at least fifty people including children have died after a passenger boat sign called the indian ocean archipelago coloreds the bus so was ferrying over one hundred people one both its engines failed causing the boat to capsize those with serious injuries were rushed to the main hospital in the capital while others were treated in local health centers accidents like this are relatively common in color is often overcrowded. the hotel maid who accused dominique strauss kind of sexually assaulting her has filed

a civil suit against him never said tode accuses the former i.m.f. chief of launching a violent and sadistic attire against her while she arrived to clean his manhattan hotel suit and lay trials can has pleaded not guilty to the chargers and been released on bail amid doubts over the maid's credibility for. syria's neighbors are increasing the pressure on the government to end the ongoing crackdown on protesters several arab nations have recalled the ambassadors from the country turkey has also joined the growing chorus against president assad it comes as government forces intensify their sort of opposition stronghold with time and artillery fire over three hundred people have reportedly been killed in syria over the past week the bloodiest of the five months writing. that's how the news looks tonight with the current financial turmoil in the u.s. and europe there's more talk about the need for a new global reserve currency and archie spoke to nobel prize winning economist

joseph stiglitz on the eve of the bretton woods conference last april and his words now seem more relevant than ever. 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 a 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 a raised was that the increase in the concentration of income and wealth in the united states has been enormous. what's happened in the last couple decades is almost a quarter of the income goes to the upper one percent. around forty percent but now you measure the wealth goes to 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 europe as ossified. the data. show that most americans are worse off than they were a decade ago and that is it 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 with a loser job can lose all the access to health care and one of things that i raised in my article was that 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 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 really 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 works for them but not for the rest of the country

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 argue and i've argued my bookmaking 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 time 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 worked very hard to open up global financial markets and one of the implications of that is when you create with quiddity you 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 clogged and the federal reserve has not fixed it you know they contribute to creation the crisis they didn't understand the basic economics 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 really gotten our economy going again i want to thank you so much for this interview. 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 order to press that on that day that killed nine guerrillas in desiccation by instructs young couldn't 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 these actually encouraged paramilitary collaboration this is

a cia document central intelligence agency they knew about these activities they knew they were happening about links to paramilitary groups and yet. usaid continued to. we're telling us

. please. please more news today violence is once again flared up. these are the images before all has been seeing from the streets of canada. operations are all today please.

oh.

hello again this is all see coming here live from moscow the headlines. rioting breaks out in central and northern england at sixteen thousand police have deployed what's so far been a quiet night in the british capital and it six hundred people have been arrested so far with that number expected to increase with large numbers of c.c.t.v. pictures of riot has to be released. europe's top bankers says the continent suffering there was financial ordeal since world war two as the central bank moves to show that crippled economy. and u.s. markets recover their loss. in a turbulent day of trading despite a cool response to a petrol and osment on the lower than expected economic growth the federal reserve says it will keep interest rates at record lows for the next two years too commonplace. and up next on the kaiser report amid the debt ceiling downgrades as stock markets falling mark says.