quarter to shrimping both also remain unaccounted for forecasters say the gale force winds have been strengthened as expected and the storms are likely to become a hurricane but shelters have been opened as a precaution. greece will impose a new one of property to make out with a shortfall in its budget this comes after the prime minister vowed to save his debt stricken country from bankruptcy in a key speech on the economy more than twenty five thousand people took to the streets of greece's second largest city thessalonica in protest of a straighter threw bottles and stones at riot police have pushed them back with tear gas and flash bulbs flash bonds so many public sector employees are paid massive pay and a struggle to make ends meet work is a furious as they believe they're now paying for reckless behavior by greek and european banks that reach around their country's political elite and economist patrick young believes that greece should leave the euro zone to survive. what's happening is greece is essentially being salt by. slavery by the way that the euro

mechanism is working is a force for greece it's a farce for the greece people and it's a total complete and utter disaster for the europe of greece should be allowed to go free and it must make its own decisions its own sovereign decisions if greece doesn't leave the cancer is spreading and as we know we reached italy last month it's all really when rooting around the place and speed or to go to ireland so far does the disease google for it finally kills the patient i think the question is it's not a question of how much work is there to get angry side of the year old actually are much chances are that the euro is going to survive with restylane it and the answer is really not. this week marks the seventieth anniversary of the start of the deadliest siege of world war two been leningrad located around and million citizens are thought to have been killed or starved cheering the nearly nine hundred day long paid of the city now called saying it is bad peter oliver has been hearing the stories of how and those who managed to. cancel and

take him to the brink of starvation the blockade of lebanon grassed modern day st petersburg by nazi troops was one of the most destructive sieges in the history of warfare when the german army encircled the city it wasn't the shells and bombs that the inhabitants feared most but was hunger. a good far worse when the famine spread there is nothing much to remove and famine and to be the money and nearest and dearest starve to death. those trapped inside the city had to resort to whatever means necessary to survive or slipped on an icy street in collapsed immediately people rushed out of their houses to chop it up i guaran out with an axe he managed to get something like a roof to the whole family lived off it for a week sometimes they need to eat some people take drastic action on your grown year there were days when i would step outside my house and see dead people lying

in the snow with their books except for me to do this isn't something we should try to cover up with heroic stories that would be unfair to the history of the siege of the people who enjoyed it as it related leningrad as one of its major objectives and from august nineteenth all the german armies going north said about tightening the noose on the people to report this is where the blockade began on the eighth of september nineteen forty one german troops arrived here occupying the city of. the last lun connection to leningrad cutting off the city's supply of food and military equipment with the city close off from the land. the only way to get aid to leningrad was across the lake. in the short summer months we used but in the winter the frozen lake became a makeshift highway known as the road of life be it was one of those he worked on the ice helping to funnel balliol supplies into the besieged city the perils of

living on a frozen lake made the work dangerous enough without the constant german bombardment with the support that one time in jordan from the mainland came to bring us breakfast he noted that one of our times with thinking come out come out two doubles you're about to drown he shouted trying to touch the tension to a truck and pulled it out on to solid ice many of the vehicles bringing in supplies didn't make it across some of those that nobody raised from the bottom of the lake can now be seen in the road of like museum so that seventy years on the sacrifice is not. the new kids are never that interested in photographs or actually seeing a historic really with their own eyes yet they always ask is this thing authentic and when i tell them yes it is that's when their eyes widen they'd sold more than a million civilians died in the crucial eight hundred seventy two day blockade which finally ended in me it's a cold january nine hundred forty three and many of those who survived went

straight into the fight to drive the germans back their experiences during the siege sparing them on a memorable monster we were evacuated we joined the army to take revenge for what the nazis injuns was a polluted city them so many civilians also leinster hunger and shelling so we proudly joined a great army to take revenge on the nazi. usual order. and those are the stories of this hour here on our team stay with us for a recap of the week headlines in just a few moments. the books to. commit to. the.

culture is the same i'll fix may resume its is going to remain below a currency in crisis in an unknown future but is there assuming. you mean. the be limited to just see. the

beasts to. see if the book. the be. wealthy british style. sometimes it's frightening what. the. markets succumb to find out what's really happening to the global economy for a no holds barred look at the global financial head. there's a report on r g. three. million three. three. three. three. three.

videos for your media drug free media oh god r t v dot com. american males and decades in the trenches of nine eleven which united a nation brought about two of the bloodiest walls of the twenty first century. russia has been mourning the loss of one of its top marketing's lookalike love in a plane crash on to the first game of the season. on russia's president calls on the world community not to take sides in syria as a negotiation is the only way to peace and the arab league has announced that they must give the country to open dialogue with the opposition to bring the violence to blow. up next our debate here comes talk and which hospital about his gas explore the future of the eurozone and if its current woes could eventually lead to positive changes for the walls financial system that's next.

oh in the welcome across. the euro

a currency and prices in an unknown future but is there a silver lining. ok let's get it that's the german if there is a silver lining to the euro crisis and i'm joined by jeffrey summers he's an associate professor at the university of wisconsin milwaukee also we have michael hudson he is president of the institute for the study of long term economic trends and matthew and he's a financial journalist ok gentlemen this is crosstalk that means you can jump in anytime you want i would be very contrarian we hears all through the media that the of your picture. the euro is already been written we're waiting for the funeral ok let's turn it all upside down let's take a look at some virtue out of tragedy number one this crisis could actually create a real european central bank it has limited tools now now give it a lot of tools do you thing. about that guys matthew first just empower it

absolutely i'm not in the next thing is germany has the right beginning the year is in deep deep trouble and i got to do something to try and save it and i think they will i mean the demand of political capital which our entire generation of european leaders have put into this project means that whatever they can do they will do so i mean the next they're going to do is they're going to come with your bones they're going to try to have a signal for some authority and yeah don't you give the c.b. a lot more a lot more by bones of the market whether that's a good thing is much more debatable whether there's going to work i don't think it will work why do it will be it will be a step i mean something needs political will to do it but if you're going to keep the euro go all the way because what we've seen over the last two years because basically last few months it's just half measures we have lots of political leadership no one really wants to make a political move but that's what is necessary political leadership. there's a false way of looking at the problem so far of course europe should have a central bank that can create credit commercial banks create credit all the time

on a computer keyboard the central banks were founded to create credit to fund government deficits that's where the bank of england was founded that's why the federal reserve was founded but the banking interests in europe crippled the central bank they didn't want to central bank to create credit they say we want governments to come to us and pay us interest and we want to rip off the economy don't have a central bank don't have a public option let us raise your cost of doing business give us the business so of course there should be a central bank unfortunately the way in which you just mentioned the central bank to be perform a function is what it looks like it'll be the central bank is not to create employment not through on the government deficit not to help the people but to give more money to the banks to bail them out that is rotten that is central bank lobbyists and that shouldn't happen and if that's so they create a central bank then good for the europeans for saying to hell with angela. merkle.

concur with michael on this one i think essentially what we see is continued rent seeking ever since the lisbon agreement and treaty what we've seen is really going back to maastricht is an attempt to liberalize in the privatized part of creation so we have this rent seeking from the real economy to the financial sector and i don't see things changing and i think all of this to a certain extent is just the water the real problem the underlying structural problem that has not been fixed is how do you really recycle capital through the system from rich countries and poor countries and how do you do that in a way. that wasn't the purpose of the euro zone of course that was it should be now we need to go back to keynes and we need to understand that in order to have any kind of meaningful either international trade all real european trade you need national development or you guys are jumping ahead of me michael you want to go where you want if you're going to have your say if there were a need to have fiscal school unity we have to have one fiscal policy for the entire

euro zone that's the only way that's going to happen should that happen jeff used the word rent seeking and your audience may not be familiar with that because it's a technical term rent seeking means get a free lunch or a privilege right now central bank commercial banks can create credit on the keyboard and they say let us know what are responsible but if a government does that they said look at nineteen twenty one one hundred twenty one and the hyperinflation happened because of german reparations and debts it was international. the europeans who have what the commercial bank of lobbyists shape the discussion into a kind of think mission fictitious don't work here let us make the whole killing off the government ok we think that's a good judge i think i can tell you. i take. the there's a lot in there but i think you're giving it too much of an american perspective you're talking about you're talking about. the well. the economy in general has

a problem of its financial sector and its banking sector and that's true pretty much we have you know that's true in the u.s. there mr in the u.k. this very united states for this particular problems in the year is that which is the currency is the put together in a dysfunctional way because it does it it doesn't work and it's not particularly a problem about commercial banks ripping off the rest of population that may be carrying on as it goes on in the rest of them it's a problem by the fact that the currency itself is dysfunctional but the bees economies are not convergent and you have too much debt in the ethical countries have too great you know the balance isn't off the development is on the when the different countries and the money as a journalist will physically he will be. run by the banking sector you will have the most right wing government you will turn your append to a banana republic if you have fiscal unity run like ecuador and the like but i really don't want to empower the central bank should it be isn't it better to have fiscal unity here's the problem the central bankers are brainwashed with tunnel vision to do what's good for the commercial bankers and if you have

a central bank who wants to screw the economy to help the commercial banks then you don't want them to have power you want to take them out in the backyard very politely say there's nothing personal but we've got to ship it leave very personal jeffrey with just getting back to matthew's point he actually inadvertently return to my point which is that we have this divergent development you're absolutely right between the south and the north for the most part and the only way that you're going to address that is to figure out how you're going to meaningfully develop. the point that i want to. call these ads or is that on the mediterranean ok they thought they could solve this problem by just ignoring it by looking the other way and have germany and france in the scandinavian countries dump their surpluses into the south maintain reasonable levels of employment and that somehow they would eventually be able to repay the debts that were taken pretty well how do you get their message to go to you know ok matt thatcherism on the mediterranean i think we all would agree with that here but i don't know what the time frame would be a decade to date. but you have said he would have resigned you know you would have

is going to slow you have because you have a slippery slope right there you would have ok five over the next twenty years you're going to help us clean up our debt our infrastructure issues can you change their cultural attitudes i mean i agree with that he gives the time because in time frame for the mediterranean countries to get their act together but should someone be paying for that many i mean it is kind of a facet where you can say ok you need the greek economy structural reform of course any structural reform anyone can see that that's been true for a long time it was very very greece and see if you call it you can do it at a time when you have an economy contract six or seven percent a year is just across what i mean i you know i grew up i grew up in the u.k. when we had real factories of needed a visual version and it was a great wasn't that much family to the economy a lot of good economy was a good track you had a couple of years but economy was contracting a bit on the whole the economy was expanding quite fast i think you really had thatcherism under tony blair we are you know we can't be carried out of if we still have a. party kind of white but my point is you can have factories and you can have that

kind of structural for women in the economy was shrinking at six six percent seven percent yeah i just i just think it's impossible it's too but it's too much to ask of a population you can have it a part of it you could have an economy that's growing trees through three percent a year is still a big ask it's tough for people people lose their jobs people have to change the kind of work the better way industries have to change it's very it's very difficult it's easy to sit around a t.v. studio and say you have structural form is actually hard on the ground but to have it in that kind of intense contraction it's just because it's not going to let these point is a good one though again about virgin development but the problem is that unlike england you can't have all of east and southern europe turn into an offshore financial zone which essentially london wasn't london drove your case economy so it's a fallacy to suggest that you can spread the small where you can it is a beggar thy neighbor policy in the u.k. has been very good at it wonder has been exceptional at it but not everyone can do it the other problem you have with southern europe is that actually in terms of the percentage of g.d.p. the rates of taxes collected are exceedingly low unlike more than you. so this this is where we actually need to before i mean greece in some respects it's no more

democratic and united states the united states only rich people of way taxes in greece everyone. so this is what we have to stop and insane as well. all these problems greece spain portugal these all used to be dictatorships and the dictatorships are left a legacy of not taxing the rich no you made the very good point look we're in a recession now you'd think that for any civilised country not europe but america or latin america or africa for a civilized area they would say with the recession you would want to have the something bank create credit to run a deficit to build infrastructure have employment but in europe they say no you have a recession give more money to the banks because the recession now. you give us the money and by the way we know you don't have it so off the peg of the parthenon sell off the water systems privatized everything and let us rip you off all over again now it's time for the big rip off and that's what their idea of

a central bank is and this is wrong and it's evil and the european voters see this in america eighty five percent of the voters oppose the bailout for the banks in two thousand and eight and similarly in europe they really do the average american is the average american have a lobbyist in congress no but the republicans in congress knew that the polls were so negative that they couldn't get elected if they ended up with roles for the bank in europe the population is so dead and by your rotten bankers in europe and your rotten media here that they actually the banks think they can do whatever they want and the voters are smart enough to say well we can't have a referendum like they had in iceland over whether to bail out the banks the only way we can do is throw angela merkel out and if they had a real election over this and say let's have if you're going to talk a little who are i mean are you going to really get after the break after the break we'll continue our discussion on what to do with the euro stay with our. it.

took a. while when one deals with war for us to realize what this tremendous amounts of damage that are done not just human damage but damage to the physical environment in which the battlefield takes place tremendous amounts of damage gone viral bomb squad napalm boy coming from the city whether it's hard sonic boom six tractor marine mammals or it's the burning oil fields here in iraq or it's strong breeze in the pacific for ramming purposes to list just goes on and on the geneva convention says nineteen forty nine states that there shall be state governments in war zones to protect one involved against widespread long term and severe damage to the

united states although it is accepted almost all of the provisions protocol one has taken exception to that. morning's today while and says once again flared up. these are the images go horribly and seeing from the streets of canada after. trying to cook for asians are today. we'll. bring you the latest in science jim thanks so much from the ground floor.

we've got the future of coverage. welcome back to cross talk i'm peter lavelle remind you we're talking about the fate of the euro all right gentlemen we've talked a lot about finance and banking let's talk about the political angle of this how is this euro crisis affecting political discourse do the extremes and look at the left first i mean it is the leftist party a lot of the steam been taken out of their wins because of what austerity is supposed to mean or does it in energize them rethink matthew. you know to keep political problem is that is that what happened what needs to happen economically is to have a much more powerful european central bank and become

a fiscal policy but there's no there's no political support for it so leaders are absolutely stuck but you know you can say that with your economic advisor ok so you do think it's necessary but it's politically impossible it's going to be this really it's not going to be completely there's a politically that desirable because there's no political control there's no common you know european political culture you know it's the united states you have you know a common country you have a common language of a color media i mean people vote on issues are sure i'm sure i'm sure americans will make lots of criticisms as i would of the u.k. the political system but it's you know it's roughly speaking a function in a functioning democracy where you have just just just isn't there is no mechanism by which for example the european central bank or european treasury ministry of finance basically said incoming fiscal and tax policies can have any kind of it any kind of democratic leadership. that is going to thought that there needs to be more consensus here but as this crisis continues there's less consensus because the germans will say hey we've done enough more than our fair share but what is really

necessary is for some kind of political consensus i'm going to stay away from the union right now we can get there later but there has to be a political consensus jeff is that possible right now because it seems the the the . the inclination is to go in reverse the problem is even worse i mean unfortunately the social democrats whether it's in germany or any other european union country operate under thatcher as max unless there is no alternative they're not acting as social democrats and are not imagining any different policies moreover when the public actually does begin to engage these issues they're charged with acting in populist ways and they're just absolutely dismiss the level of arrogance of our policymakers in this particular issue is extreme and it's not even permitting any kind of meaningful debate to take this course that very well when you think about it this is exactly the problem how imagine one hundred years ago nobody could imagine that the social democratic and the labor party are now to the right of the conservatives the left wing is now the right wing it's the left wing parties that have led the fight for privatization and to turn over power to the

banks and. they've somehow been taken over by the banking sectors in their socialist the name only we have to call them fascists in america if i can just interject with one more follow point what it's resulted in both in the united states and in much of europe is to confuse the electorate massively so for instance the united states president barack obama who actually voted for and gave money to has acted in a very center right even right wing fashion when it comes to find out it's what's happened with the electorate is because he's often charged with being a leftist by murdoch media and they assume that he's very leftist and now they need to go very far right and that's why i think you see this oscillation back and forth within european union countries between social democratic governments and conservative governments the electorate is just terribly confused that they just don't see and ultimately you know you know i remember watching a report about a woman in iceland that had a wonderful small business of her own she made designer clothes specifically

tailored clothing and then she would during the crisis in iceland she suddenly woke up and found out she was bankrupt and she didn't do anything wrong. all she did everything that she was told to do well what i'm getting at here is that there is understanding this crisis and how it is how we dodge to it because i think michael's getting right here is that it's more like baking fascism here but it's been taken completely out of the economy we don't this is not an economic crisis it is a banking crisis it's a financial crisis and how we the european currency the euro fits into. a so i disagree with a bit of perspective here but i think what confuses people is you had you know the financial crash of two thousand and eight you had the credit crunch and all that all that stuff which was a global problem and then you have the euro which kind of came along soon afterwards about two thousand and nine because they haven't happen at the same time people sort of figure out the same problem but they're not really i think i think a god this is where you have a financial the credit crunch with a pressure to that's made out of the euro because it's a dysfunctional currency because it was badly designed would it would have would

have created all of these problems i just i don't really agree that it's a problem the only way they were really league was because you got a massive increase in budget deficits to deal with a financial crash which could accelerated problems if you're there but i really think i think a different problem is i think after analyzing and lies and separately just on the political point i think you know one of the big worries about a year of crisis is that it opens up to really problem present far right parties because they've been amazed because here i was a year ago because it's a dysfunctional because it's again like the gold standard in the one nine hundred thirty s. it was created massive deflationary forces of austerity which opened up which opened up a lot of a lot of the opportunities for the right and to some degree the same thing is happening in say in finland with the truth and i mean i know that i'm a fascist party but they are a nationalist party marine le pen in france is the only mainstream voice that one has that mainstream one way street may not be what you pick me up to be she's on twenty two twenty three percent of what you're in there is twenty three percent of the vote who would have a ten would be maybe she's not mainstream in the sense of except movies but the crisis is making

a very right wing parties you know allowing the means into the mainstream and that's quite worrying and it's one of the aspects in which it's a bad idea if you want to go for your point about iceland is absolutely correct. look at the situation for the social democratic government of iceland the prime minister wanted to repay all the bank that making ice on bankrupt for fifty years turning iceland into what ireland became the president who only has a function of signing off that if you're going to bankrupt the cum country for fifty years there should be a vote ninety percent of the people of opposed to what the social democratic government is doing because they didn't want to be plunged into the bankruptcy that you were just being described she tried to do it all over again and again was rejected now this is in a nutshell what happens with the a central bank because you're told in europe the big lie that essential independent central bank is the hallmark of democracy where the independent some nobody votes form is controlled by the.