experts say the methods used to fight them have spawned even more extremism torture and if that which weren't just put out great we're going to look for thank you if i focus on a curtain call here and that significantly through the fact i'm living there trying to defeat terrorism following nine eleven america did not just go after the perpetrators it unleashed a campaign on a nation that had nothing to do with the attack hundreds of thousands of iraqi civilians have died since the u.s. invasion in two thousand and three america's decade long campaign on terror has created a new phenomena more without borders and as many say without rules torture rape and murder that took place at the u.s. run prison in abu ghraib iraq as well as other u.s. prisons overseas brought global condemnation but key decision makers in the bush administration say what they did was in the best interest of their country and they would do the same again call it torture you think it should still be

a tool yes rendition yes secret prisons yes wiretapping with no approval colonel lawrence wilkerson was collin powell chief of staff when he was the secretary of state under george w. bush he says some of the bush administration members deserve to be put on trial and he would be ready to testify george tenet told dick cheney what they cheney wanted to hear oh yes it's working mr vice president we're getting great information and we're stopping terrorism that is order. the fact that there hasn't been a terrorist attack on the scale of nine eleven on the good wife soil is often attributed to the harsh methods used in the last decade of war on terror but counterterrorism experts say the fact that terrorists are successfully recruiting thousands of new members these days does not add to security in the u.s. and the whole world for that matter we've offered other extremist networks i think for us well. right in response. to that.

so in some ways with the patient and the other organization in pakistan u.s. drone strikes have killed thousands of civilians and maybe it only a handful of actual terrorists many of the victims' loved ones seek revenge by joining radical groups others like this young man who lost both of his legs and three family members in a drone strike gather in protest asking when will the killing stop but experts say those pleas mean nothing when washington needs the chase to go on we have made a cottage industry if not of much more than a cottage industry out of the what my former boss called powers called a terrorist industrial complex lots of people are making lots of money off of this so-called global war on terror our war on terror. begins with arkana.

but it does not in their listening to george bush's declaration of war on terror from ten years ago one is left wondering whether it was the beginning of a vicious circle where the revenge would take more innocent lives and would start a new wave of terror i'm kind of check out reporting from washington r.t. . and tomorrow will assess the effects of a post nine eleven world both on the us and on those in afghanistan where many still don't know the reason why they were invaded in the first place. afghans in this province think. its consequences. but never. know. if i just got here it wouldn't surprise me now for six months of british stone ages where we are. now ways out of america's financial crisis will be of the spotlight in a few minutes but before that though it's a business news with marina and the latest headlines to stay with us.

hello and welcome to business here on our pipelines are sprouting across russia and only the other side of the country from north there brewski gas pipeline provides a new artery to markets in russia and business hours he says and the bulk of our travel there for us. this land is surrounded by some of the most and there are jews hungry and nations in the world consumption in places such as south korea and china is growing rapidly offering great opportunities for gas from to cash in especially now as it has loads of gas close to the region and red to be exported this new gas pipeline which was the most polluted is opening rods from faculty into large of us told it is able to supply thirty billing cubic meters of gas annually lots of the russian seed is the round here just a tiny part of that and that's why gas pump is desperate to find buyers for its

extra gas and doesn't talks with several contras but it's not all so easy as the movement's talks with china are dragging uprise and possible supplies to south korea a complicated by risky transit through north korea why is there reason not a project to make use of the far east and gas it is an alan g. plant and lots of us talk gastronomy is considering building the plant to be japan's a total corporation and if it's on stream in five years as planned the gas from here may be shipped to the world's biggest alan g. consumers south korea and japan. analysts take a look at the markets now or oil is down after posting significant growth in the previous session and that's as weather conditions in the mexican gulf are still far from call with more tropical storms coming to threaten production. europe has slipped back into negative territory as the european central bank cut its euro area

growth forecast the footsie is losing point eight percent while the dax is down over one percent this hour and here in russia investors are following the negative sides rates in europe with both p.r.c.'s and the my socks shirt over a quarter of a percent so let's take a look at some of the individual fare moves on the my set look coral is among them a. losers the company could face a simple deliverable fine as a federal and so long in the service things it's also valued fuel prices in the end of last year and the same store with process and gas for last north nickel is also their own despite reports from a saw is finally starting to talk to sell its stake in the company but bucking the trend is for a bank after it acquired the eastern european arm. and that's all the time we have for the south more stories head to our web site r.t. dot com slash business five for now.

welcome back these are the main stories here on r t the world's eyes hockey community is united in grief after russia's locomotive team was almost entirely wiped out in a plane crash in the city of yet as level forty three people are confirmed dead while two survivors are critical condition both have been taken to moscow for specialist treatment. the u.k. government faces legal action as doctors do that a new inquiry into the shady death of a weapons inspector who was the man who would be a good a new iraq had no w m d's ahead of the invasion of. the middle east and build up

the palestinian start of peaceful campaign for statehood ahead of the u. webb vote while it eased wrote tensions grow as police clashed with protesters calling for a better government. also twenty years in an american jailed a russian pilot detained in the u.s. sting operation in liberia his son turns for conspiring to smuggle drugs and moscow slams is arrested rendition as in the book the next of our good of speaks to wall street analysts professor michael hudson about america's growing national fears that's coming up next. hello again the welcome to spotlight the interview shelf on our take a mother's love and today we're going to talk about money other people's money and much more importantly our money. politicians and economists from around the world have gathered in the russian city to try. to take part in

a global political farce the decision makers are going to discuss among other things how to avoid future economic crisis but does it mean that path out of the current economic recession is already clear and where does it leave here's the puts us up and to the forum to wall street financial analyst professor michael. one of the goals of this year's us love also forms to find out how to reduce the gap between the rich and poor the economic crisis in this country europe and america is still a serious threat to the future of the euro zone his or her doubt is treason for the america was facing the threat of a technical default that would have had a non-tonic back worldwide the american government managed to avoid it it's experts say the measures taken only temporary threat is still there.

welcome to the show thank you thank you thank you very much for being with us well first of all standard and poor's downgraded well we've all been a vacation on television it's downgraded the u.s. in the u.s. craigs ranking is it only the beginning. of a process of downgrading the united states or the investors still have faith in american economy the standard and poor's downgrade it had nothing to do with investors it was a political stunt given efforts. when there were negotiations on how to balance the us budget the obama administration and the republicans both want to cut back social security and use the budget basically to subsidize wall street and the standard poor was a public relations act to convince people that if they didn't impose a cutback social security cut back medicare back social spending and give more

money to the creditors and a wall street that somehow there would be a danger investors ignored all of this because the united states government and the central bank can print all the money it has there is no way that the united states government can be fault on its there because it controls the printing press so of course it's impossible to downgrade it so the downgrade was only political nothing to do at all with finance well since you mentioned expert so you're going to burma will have to make a very hard maybe an impossible even choice right now what should be his economic reality tackling tackling the the sovereign debt or unemployment he should of course tackle unemployment his policy is to increase unemployment his objective is to lower wages by ten to twenty percent because he believes the neo liberal no he actually believes that

a race to the bottom is how to win but if you cut back the living standards if you lower wages that will make the economy more competitive actually it makes the economy less competitive but his loyalty really is with wall street he believes that wall street is necessary to make the industrial economy work when in reality it's just the opposite of the liberal myth the movements have been calling liberal myth all along but it's been alive for. it's why is the why do you still call it a myth the you mean by that it. just means you going back to believe the neo liberal media gets burned alive because the. akademi or the neo liberals led by the chicago school have controlled all of the prestigious. academic economic journals i teach at the university of missouri and kansas city and my students in

order to get promoted from assistant professor to associate professor need to publish in these journals the neo liberals make sure that if you don't believe the myth that they've told the travesty of economic history that somehow you're not able to get a job and this is. shown for instance when the neo liberals came to russia after nineteen ninety one russia believed that it was being told how the west developed and the west wanted it to develop the way it did in reality the neo liberals told russian to do exactly the opposite of how america rich. tax labor not real estate and finance not to have progressive taxation and indeed to focus on finance rather than an industry and you've seen the disaster that happened in all of the poll soviet economies and it was completely unnecessary to

happen so the neo liberals in america no longer have a history of economic thought being taught in the academic curriculum you no longer have economic history being taught you have textbooks that is if the whole economy operates on parter and there's no understanding really of finance except in the business schools where they actually teach students how to take over a company empty it out increased stock market failures by borrowing money to pay oh to stay victims or to buyback. your own stock which of course helps the managers with exercise their stock options but the financial ization process that neo liberals push end up stripping the economy of capital for tangible investment and the neo liberals in the united states the problem is not merely unemployment going up it's that wages have been going down for over thirty years. a

chance to be really stupid if he if he doesn't tackle it doesn't solve the problem and so there is no question but he will be reelected nobody in the democratic party is going to challenge him because he already has his constituency locked up the urban constituency the minorities the liberals and the republicans want to make sure that he was elected does not mean he doesn't have to solve the problem he doesn't have to solve the problem at all he has no intention of so really any will no no no he will continue to aggravate the problem he in the task of a politician in america or england or anywhere else is to deliver your constituency here campaign backers his campaign finances are wall street his job is to make sure that the constituency does not protest well he does exactly the opposite of everything that he promised we all watched this through.

the news with the congress trying to trying to come to the agreements on the debt and so why did it take so long why was it so hard for the democrats and republicans to to come to disagree because it was organized like a wrestling match you know dramatically to make people think that the fight was all about how much to lower wages how much the lower. that was they might buy obama by the book and the republicans the intention was to focus. to make americans believe that you need lower living standards in order to survive and you need to cut back social security that you need to pay me economy and send the economic surplus into the banking system in order for the economy to survive that's the myth michael how do you think it's with so you can see me we expect to see the debt ceiling. again but the debt ceiling you mean relieved

there is no way in which the ceiling cannot be raised because of the degree of military spending the off balance sheet the question isn't about the debt ceiling the question really is what changes are going to how is the government going to cut back spending on labor and on social security and on social programs in order to increase the military budget very substantially in order to give more bailout funds to the banks so so you sound pretty optimistic if i was a banker i would be very optimistic if i were an economist and this means that the economy will be moving into a depression for about five ten years to finish the question that's what it was to be next as you want and it isn't a painter nor a banker nor any economist at so you do your what makes you happy.

understanding what's happening and my identity is basically a bit of a professor. is to tell people what the future is going to be not to represent any particular interests and so i like it when i can analyze and look at the economy as a system unfortunately the world is going into a depression and it's completely unnecessary and it's because of following a. policy that is unrealistic really getting into the depression i mean i mean i mean the problems in the united states are the shadow whatever we call the what happens in portugal in italy and some other country is similar problem in europe and the united states the governments are taking the bank losses on to the balance sheet and adam smith said over two hundred years ago that no government has ever repaid it steps there's a natural tendency for pets to grow at compound interest in an obsolete but

economies are growing in an s. curve and what makes the economy shrank is that more and more of the economic surplus is going into the financial sector normally the function of a recession this to wipe out that there's a bankruptcy people lose the savings and then you begin with a lower debt but right now mr obama has broken his promise and not asked the banks to write down the debts to the mortgage debts to match the actual value of property so one quarter of american real estate has a higher mortgage than the property is worth until we start quoting karl marx let's take a short break now just a reminder to michael hudson is my guest on the show today a wall street analyst professor spotlight will be back shortly after the break some steam.

the official tea allocation i phone oh i pod touch from the i choose our. life on the. video on demand r.t.s. my costs. are as is feeds now in the palm of your. com. welcome back to spotlight lovely just to remind you that my guest on the show today is michael hudson professor and wall street financial analyst michael while we've been discussing this situation. in the american economy and it looks like

that the economic problems so far have. led to the rise of popularity of right now we. will be the tea party for one year and does that mean that the u.s. left today is incapable are offering the society our free business any any breakthrough ideas ways of overcoming good certainly is capable in this concern of the representative from ohio has often said however it doesn't get much of a hearing and the left is so confused by the fact that it's a democratic president obama that is leading the move to the right mr obama is known to the right of the republican party the tea party people such as michele bachmann voted against the bank bailouts the republicans voted against the bank

bailouts this is a democratic program and the democrats are very much like tony blair's labor party in london moving to the right of margaret thatcher that's the irony of this the labor parties and social democrats throughout the world are moving to the right of the old great wing parties and what you call the right the tea party which is backed by the billionaire koch brothers in america are actually using a populist rhetoric their job isn't really to get elected their job is to make sure that a crazy person is nominated for the president who everybody will think is so bad that they would vote obama seeming to be the voice of reason and of course he is nothing voice of reason he's an ultra right wing. pro-war story and democratic republican but how do you make him look as if he is a democrat you have somebody so bad that people will vote for him as the lesser alternative in reality people in america will vote with their backsides you can be

sure that in this election the voter turnout will be way down compared to the last election. what is behind the you gov decision that mistake they want to sue the banks responsible for the current economic situation is it because a bomber once it demonstrates that he's serving the people not the only guy here who know there is a law in the united states a three year statute of limitations bank sold a hundreds of billions of dollars worth of fraudulent mortgages to me and freddie mae which were the federal government is guaranteed basically the bank of america citi bank j.p. morgan banks you should think of these as the gangs that made their money off planet huge financial fraud and by financial fraud i mean the mortgages that they gave just like an england when they look at the property the property is only worth

twenty two cents on the dollar in other words there was massive fraud no documentation loans fraudulent appraisals it is what my colleague professor bill black in kansas city calls a criminal genic environment with control fraud and finally the financial sector in america the investors realize we can't let crooks right handle our money because the crooks are stealing our money the money of the rich for themselves and the idea is that the american banking you have a situation today when the american banks are not opening credit lines to europe or the other it's the banks in america believe the other banks are just as crooked as they are and if that's the case they are calling back all the credit on. autonomy's falling apart and until under the savings and loan crisis in the 1980's two thousand bankers were sent to jail in america's case only one financial fraud has

gone to jail bernie made off and he walked into police headquarters with his hands up and thought i surrender there has been no prosecution of angela nissel of countrywide and the reason is they realize that the bank lobbyists have decriminalized crime the neo liberal say crime is part of the free market it's all how to get ahead and all of a sudden the pension funds and the others and wall street realize we've turned the economy over to crooks and we have to start but in the three year statute of limitations for hundreds of billions of dollars of fraud ran out so the banks are trying to legitimize and say fraud is us it's all legal it's all. for the government is saying look when you have thirteen trillion dollars' worth of bailouts remember they're saying that they have to cut back social security because in fifty years there will be a trillion dollar deficit but they've just given thirteen trillions to the banks for the fraudulent loans obviously this is

a crazy situation and even the wall street people realize there has to be some limit on crime at least when it's against themselves all you said he increased banks are essential bankers dentists and lawyers is it is something maybe also car mechanics america these these for example. this is not the issue with of course banks are essential the bank depositors in america are insured by the federal deposit insurance corporation and it's manager said look we could have we we could have closed down citibank everybody's deposits would have been protected the what was what would have been wiped out of citibank. and chase and bank of america would have gone under would have been their gambles their casino capitalism their bets the wealthy would have lost the winners of the bets by goldman sachs wouldn't have been able to get trillions of dollars and the economy would collapse

but the real economy everybody's insurance would have been all right and she looked at our week we could close them down so they may see the banks big nothing will happen no no no no business nothing is changed because of the financial do you think do you think you do you think europe can can do the same thing the e.u. has confronted seat it looks to me like the e.u. is being torn apart by the fact that angela merkel there are two models for europe one is the irish model where the european central bank told the irish government bailout the banks you can afford it and now they took so much of the bad irish bank debt that ireland is in a depression for ten years the other alternative iceland iceland so there's so much money we can't possibly play sue us we're not going to push ourselves into feudalism in order to help you.