on the streets of chile's capital fund similar marches are held in a country every september eleventh. but brings up to date here on our team that's not happening in business. one and a very well welcome time for your business update fears a mounting the world is heading rapidly for a second dip of the recession russian finance minister alex seclusion says it's more probable now than before the summer russia's balanced budget means it is reasonably well placed to ride out the turmoil but trying to strategist chris with it says that the offer only limited protection when the mood. in reality russia is in a much stronger position today than it was in two thousand and eight. you know russia is in a much better position to be able to withstand global downturn. you know to to remain fiscally solvent and stable that's the reality it doesn't matter the perception is

that russia is still a high risk environment and most international investors view russia as a derivative of global growth therefore if they become optimistic about global recovery russian asset prices tend to rise higher faster than others and equally when there's a selloff as we saw in august russian dancer prices will go down even faster than the rest increases debt problems just won't go away leaving many believing a default is inevitable but since his chief economist believes the e.u. will draw out the process to avoid shocking the markets. bill be. restructuring. right. over of greece and most likely also portugal and ireland. in one fell swoop you as always europe always tries to be a little bit pregnant but curative. lot right goes all the great pear tree

sixty five eight you should both be those little bugs of. god of course will require you to. both banks are exposed especially in greece but also elsewhere. will come from. that sort of look at the markets will process the low investors big europe's debt crisis will hold economic growth tempering demand for materials whites which is currently trading at eighty five dollars per barrel while branches harboring at one hundred and eleven dollars. in asia the nikkei index fell by more than two percent on monday to end it is lowest level since april two thousand and nine way down by renewed vigor and debt problems hong kong's hang seng is also seeing losses heading for its close close in more than a year. and european debt crisis weighing on the russian markets as well the indices are extending last week's losses and early monday straight they are just my

six to deeply in the red two and a half and choose the central spectrum and that's a look at some of the individual share moves in the my six energy major losing ground with gazprom shedding two percent dropping more than one cent banking stocks also under pressure with russia's largest lender setting twenty percent this hour. the russian approaches ended last week on a low despite president obama announcing a new stimulus package for think u.s. economy looking ahead to the next five days and it's something. capital is not optimistic as expectations of more poor economic data remain high. it's a very interesting sequence of events i say because when the speech will be forgotten it will be everybody understands the problem it was there will be in a situation he just proposed and some measure of certainty for republicans who are blocking some other recent congress republicans will be the republican in this and

that's why the chances for obama presley's legislation will be high but i think that the real market can in fact there will soon be they knew you were a purebred moose which will arise if you are in the next week because we haven't seen them forward to almost like we do it's a pretty long period of time for. the finance to happen. well russia's preparing to ban small air carriers from running both charter and local flights brits will be given to the country's major airlines who will also get state subsidies and a say this could reduce existing passenger traffic by up to forty percent just to keep companies operating in the market the move is aimed at improving russia's for aviation safety records after almost an entire professional ice hockey chain was killed in a plane crash last week. that wraps up the business bulletin with more stores it can head to what site that starts the dot com slash business.

culture is that so much of the mayor's money i mean it was never a real mystery there's no fear of currency in crisis and in among the future what is there a silver lining. louis

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back here with r t here's a look at the top stories the british prime minister is in moscow for talks with the russian leadership after years of strained relations it's the first official visit of a british leader to the russian capital since two thousand and five. iran prepares to officially plug in its russian built bush era nuclear stations the country's first atomic power plant will reach about half of capacity after being connected to the main national grid. due to his disputed fifty four billion euros thirty package the final debate in the lower house of parliament but open protests popular cards

have already started with some areas of the country going as far as seeking autonomy. perhaps more e.u. countries saying in a sea of debt crosstalk debates whether a financial wind boy is on its way that's next on our. oh in the welcome across. the euro a currency in crisis in an unknown future but is there

a silver lining. ok let's stick to the term and 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 when he's a financial journalist ok gentlemen this is cross time you can jump in anytime you want i'm going to be very contrarian we hears all through the media that the of you . 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 that has limited tools now now give it a lot of tools do you think about that guys matthew first just empower it

absolutely the next thing is the right beginning of the year is in deep deep trouble and i have to do something to try to save it and i think they will i mean that a man of political capital which our entire generation of european leaders are put into this project means that whatever they can do they will do so in the next that they could do is they're going to come when you're going to try to have a single fiscal majority if you have and yes. but you give the ball a lot more power to go by the bones of the monkey whether that's a good thing is much more debatable whether there's going to work i do think it will it will be it will be a step i mean it's 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 they could basically last few months is just half measures we have lot 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 why 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 notice until 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 to run a 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 merkel ok . with michael on this i mean i think essentially what we see is continued rent

seeking ever since the lisbon agreement treaty what we've seen is really going back to maastricht is an attempt to liberalize into privatized credit creation so we have this rent seeking from the real economy to the financial sector and i don't see things changing now i think all of this to assert. extend is just foam on the water the real problem the underlying structural problem that it's not been fixed is how do you really recycle capital through the system from rich countries to poor countries and how do you do that in a way but. that wasn't the purpose of the euro zone of course it 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 or real european a long trade you need national development or you guys are jumping ahead of me michael you want to have your say if there were a need to have fiscal fiscal 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 the picnic up there and rent seeking means you have a free lunch for privilege right now central but commercial banks can create credit on a keyboard and they say let us know what you're responsible but if a government does it they said look at nineteen twenty one nine hundred twenty one and the hyperinflation happened because of the german reparations and it was international. the europeans who have been have let the commercial bank lobbyists shape the discussion into a kind of fake mission fictitious don't work here let us make a whole killing off the government here we think that's a very good judge a good job but with this i take it or not it's a there's a lot in there but i think you're giving it too much for an american perspective you're talking about you're talking about a lot of the people the world economy in general has a problem its financial sector and its banking sector and that's true pretty much

wherever you look at through the years that was true in the u.k. there's very united states but there's particular problems in the in the year is that which is the currencies being put together in a dysfunctional right because it doesn't it doesn't work and it's not particularly a problem about commercial banks ripping off the rest of automation that may be going on as it goes on in the rest of the world amazing. how about that a bit of currency itself is dysfunctional these economies are not conversion you have too much debt in the political countries have too great you have the finances and in darfur the government is an equal in the different countries and the money as a journalist will physically how did he will be. run by the banking sector you will have the most right wing government you will turn europe into a banana republic if you have fiscal unity run like ecuador and like you want to empower the central bank shouldn't 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 as you just you just hit the core going to want to. call these ads here 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 and the scandinavian countries dump their surpluses into the south and maintain reasonable levels of employment and that somehow they would eventually be able to repay the debts that were taken on the property you know how do you get their message to go to 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 two decades but you would have said he would have us know you know you

don't have it's very slow you have you would have a slippery slope right there so you would have ok find 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 it gives the time is a time frame for the mediterranean countries to get their act together. should someone be paying for that uni i mean it is kind of fast where you can say ok you need the greek economy structural reform of course in the structural form anyone can see that that's been true for a long time it was going to greece and see if you can you can do it at a time when you have an economy contract to get six or seven years to suppress what i you know i grew up i grew up in the u.k. we had real factories and you know the visual version and it was great wasn't that much from a good economy a lot of good economy was a contract you had a couple of years that economy was contracting a bit but on the whole the economy was expanding i thought you really had thatcherism under tony blair we carried out we can't be carried out of it but we still have a we. got it right but my point is you can have that choice if you can have that kind of structural reform in the economy was shrinking at six six percent seven

percent a year 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 problem that you could have an economy that's growing to a victory previous idea it's still a big ask it's tough for people people lose their jobs people have to change the kind of work that way industries have to change it's very very difficult it's easy to sit around a t.v. studio and say you have structural form is actually hot on the ground but to have that kind of intense contraction just because it's not as many as point is a good one though again about diversion 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 you case economy so it's a fallacy to suggest that you can spread all you can get it's a beggar thy neighbor policy in the u.k. has been very good at it one that 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 northern europe so this this is where we actually need to before i mean greece in some respects is far more

democratic and united states the united states only rich people avoid taxes increases 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. no you made the very good point well look we're in a recession now you'd think that for any civilized 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 and have employment but in europe they say no you have a recession give more money for the banks we caused the recession now. you give us the money and by the way we know you don't have it let's sell off the pad but 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 that european voters see this

in america eighty five percent of the voters oppose a bailout for the banks in two thousand and eight and similarly in europe they're going to 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 in shoals for the bank in europe the population of so deafened by your rotten bankers in europe and your rotten media here the thing they actually the banks think they can do whatever they want and the voters are smart enough to say well we can 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 the if you're going to talk a little bit more about it and you go over there we get after the break after the break we'll continue our discussion on what to do with the euro stay with our team .

well when one deals with war for us to realize that 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 done by aerial bombs by napalm boy chemicals that whether it's hard sonic boom cigarettes or a mammals or it's the burning oil field syria or iraq or egypt's stroy coral reefs in the pacific for ramming purposes to list just goes on and on the geneva conventions nineteen forty nine states that there shall be changes in warm to

protect one vice 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. more news today violence has once again flared up. these are the images the world has been seeing from the streets of canada after. china operations are all today.

welcome back across the uk i'm peter lavelle remind you we're talking about the fate of the euro or a gentleman 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 mean energize them we think nothing but you know to keep medical problem is the is that what happened what needs to happen economically is to have a much more powerful european central bank radical fiscal policy but there's no there's no political support for it their leaders are absolutely stuck that 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 very it's really it's not but if you could actually put it to play to be desirable because there's no political control. you

know a european political culture you know is the united states you have you know a common country you have a common language a common media i mean people vote on issues i'm sure i'm sure i'm sure i'm sure a very busy or but most of criticisms as i would have the u.k. of a political system but it's you know it's roughly speaking. a functioning democracy whereas you have just just just is that there is no mechanism by which for example european central bank or european treasury ministry of finance ministry said income the fiscal and tax policies can have any kind of any kind of democratic leaders and that is it's going to thought that there needs to be more consensus here but as this crisis continues there's less consensus as 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 with get there later but there has to be a political consensus difference that possible right now because it seems that the . inclination is to go in reverse for the part of the problem is even worse yet i mean unfortunately the social democrats whether it's in germany or in any other

european union country operate under thatcher's maxim that there is no alternative they're not acting as social democrats and they're not imagining any different policy moreover when the public actually does begin to engage in these issues they're charged with acting in populist ways and they're just absolutely dismissed the level of arrogance about policy makers this particular issue is extreme and it's not even permitting any kind of meaningful debate to take place the discourse 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's are now to the right of the conservatives the thought 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 if they've somehow been taken over by the banking sector is an associate with the name only we call them fascist in america if i can just interject with one more power 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 i actually voted for and gave money to has acted a very center right even right wing fashion when it comes to finance 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 left they need to go very far right and that's why i think you see this also lation back and forth within european union countries between social democratic governments and conservative governments the electorate is just terribly confused and they just don't see it often you know you know i remember watching a report about a woman in iceland who had 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 what i'm getting at here is that they're

understanding this crisis and how it is how we got to do it because i think what 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 would the european currency the euro fits into. a slightly disagree with the 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 stuff which was a global problem and then you have the euro which came along soon afterwards about two thousand and nine because they happen to happen at the same time people sort of think that the same problem but they're not really i think i think the goddess of whether you have the financial the credit cards or the matter preciously 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 these problems i just i don't really agree that it's a problem the only way they were really legal because you got a massive increase in budget deficits to deal with a financial crash which kind of exaggerated problems of yours that i really think i think that different problems i think i have realized i like them separately just

on the political point and i think you know one of the big worries about a year of crisis is that it opens up to really quite unpleasant far right parties because they really made because here i was here because they're so dysfunctional because it's a bit like the gold standard in the one hundred thirty s. it was created massive deflationary forces of austerity which opened up which opened up a lot of a lot of that patrice for the right and some degree the same thing is happening you see in finland where the true finns i mean i know they're not a fascist party but they are nationalist party and they really are paid influences the mainstream voice that when i was at mainstream when they strip may not be what . you believe you should on twenty two twenty three percent of what your interest rate he said of the value would probably tell you would be nice he's not mainstream in the sense of except movies but the crisis is making very right wing policies you know allowing them into into the mainstream and that's quite worrying and it's one of the aspects in which it's bad if you want to go for your point about iceland is absolutely correct. look at the situation with the social democratic government of iceland the prime minister wanted to repay all the bank that making iceland

bankrupt for fifty years turning iceland into what ireland became the president who only has a function of signing off said if you're going to bankrupt the come on tree 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 all be plunged into the bankruptcy that you'll just be 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 the essential independent central bank is the whole market put markets they were independent something nobody votes for him it's going to hold by the i'll make our case it means drop your democracy let's have an oligarchy that's what an independent some troll bank means in the long as he will to something bank run by right wing bankers who will say we want to bring in an anti labor economist like the lady in france instead of the i.m.f. .