i've been hockey player wednesdays look at motive yet a plane crash has died in hospital twenty six year old alexander good enough died from severe burns to his body and whisper to retract the plane carrying russia's cage crashed in central russia last week a squad was heading to try to reach for their first game of the season more than one hundred thousand mourners gathered to honor the players and their hometown with ceremonies also held in the native countries of a foreign players the crew member from the plane is now the only survivor of the forty five degree angle to say his condition is serious but stable. well after some other news from around the world this hour the world update us says that he has confirmed it has detained one of colonel gadhafi son saadi is one of thirty two people close to libya's deposed leader fled there in the past ten days news comes amid ongoing fighting between rebels and loyalist troops in body walid one of the colonel's last strongholds get half the supporters of ignored a rebel deadline to surrender which expired on saturday the whereabouts of libya's fugitive leader remain unknown. about

a hundred people have reportedly been killed by far the pipeline kenya's capital of nairobi eighty were injured and rushed to nearby hospitals are said to pipeline passes through a local slum burst on monday morning official suspect some of the victims may have been draining fuel from the public when the fire started. and the president ali abdullah saleh has authorized his deputy to discuss a transfer of power with the opposition follows months of political turmoil triggered by massive protests against the country along. with the thousand people are believed to be killed during the clashes through anti-government activists and security forces. by the way you can access all news at any time on our website it's ality dot com is what's waiting for your line right now should you log on about ninety percent of afghans are unaware of the september eleventh attacks or the reasons behind their country's near decade long occupation by u.s. forces you can learn more about that old line. and russia dominates the london

international film festival with multiple movie entries including alexander the stockyards falls which is just the top award at the venice film festival. and i'll be back with a recap of our top stories for in just a few minutes from now in the meantime a very nearly twenty five minutes past the hour marina's here with the latest news and some. hello and welcome to business here on artsy deals worth more than three hundred million dollars have been signed during the visit of the prime minister david cameron says russia but the legation includes blue chip companies like royal dutch

shell b.p. and british airways british the i want to retailers kingfisher has unveiled appliances opened nine stores in russia with a total investment of could reach one hundred eighty million dollars also engineering firm rolls royce has agreed to jointly developing nuclear power with the russian state energy corporation. and among other notable knows the russian state nanotechnology corporation is buying to forty to fifty percent of the london base probably no bio for an undisclosed amount the financial times describes the company as a new medical company launching the world's first warlike killer scale and that of that knowledge and treatment pro bono by all clients the rest in moscow enlightened within four years. british oil major b.p. wants to continue doing business in russia despite its growing problems in the country and that's according to a senior kremlin a sudden the british prime minister the company is stuck in legal battles with its

russian partners in the joint venture it's named k b p earlier this year they blocked a deal between b.p. and ralston left to jointly explore the arctic and now they are seeking compensation for b.p. for breach of their shareholder agreements meanwhile tony hayward the former c.e.o. of b.p. is stepping down as a non-executive director of. and that is less than a year after taking the post. let's take a look at the markets we'll start with oil prices there are mixed as the u.s. dollar index gave up earlier gains a partial recovery came as the organization of petroleum exporting countries some of its members could lower production as a slow economy weakens demand light sweet is currently trading at around eighty eight dollars per barrel while bryant is approaching one hundred and twelve dollars a barrel in the u.s. markets are trading in negative territory as fears mounts over europe's debt problems that's especially after

a credit rating downgrade of french banks the european markets are heavy losses shares and pay lenders were under pressure after the independent commission told banks it will have to bring friends in their little arms following the credit crisis of course european debt worries weighed on the russian markets as well and this is x. that the grassroots losses in monday's trade in my stocks close over one and a half percent down by the r.t.s. last more than three and a half percent let's take a look at some and that's movers on the my sex and energy majors lost ground with gas wrong shouting almost two percent banking stocks were also on the pressure with russia's largest lender losing over four percent but the worst make all the better ahead of its board meeting on cheers that he applies to this. these are some i know it's a shareholder in michael's. financial corporation says they've also market. global sense and. russian equities are sharply lower today importing both the volatility

and share price weakness from european markets which are down one average three to four percent today it's more concerns about the future of the euro and it's more concerns about euro zone banks instability in the markets we see particular weakness in the big cap highly liquid stocks like gas problem spear being a metals and mining stocks are also weaker as those companies are exposed to the global steel prices and a potential slowdown in demand i'd also note today's weakness in the oil price so with oil now within one percent of its two hundred day moving average it has a few investors concerns and this is one reason why the ruble has also been weak today. but that's all the business news for a while the headlines are next. coming

. to the movies. just sleep. just see to. see.

another thirty pm monday night in the russian capital kentucky with its top stories now this hour stronger relations for mutual benefit russia and the u.k. agreed divided opinions on the. resolution of the syrian crisis to stand in the way of the political and economic hardship. generating iran towards its first nuclear plant. to the national grid the facility at bushehr was built with the help of russia and will reach its full capacity at the end of the year. italy moves closer to the center of the eurozone debt crisis as its crucial austerity package

enters the final stages triggering a new wave of protests and tough spending cuts and much debated fifty four billion euro program is aimed at balancing the country's budget and triggering growth. has more e.u. countries sink in a sea of debt peter byrne and his guests are discussing whether there are any positive sides to the crisis cross-talk is next here on r.t. and i'll be back with more news in off an hour from now.

oh in the welcome across. the euro a currency in crisis and an unknown future is there a silver lining. ok let's to determine 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 in 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 cross not i mean you can jump in anytime you want i'm going to be very contrarian we hears all through the media that the the obituary for the 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 has limited tools now now give it

a lot of tools what do you think about that price matthew first just empower it absolutely the next thing is the right beginning the year is in deep deep trouble and i have to do something to try and save them i think they will i mean the demand of political capital which i generation of european leaders are put into this project means that whatever they can do they will do so i mean the next time they could do is they're going to. try to have a single fiscal authority and yet. if you give the c.b. a lot more a lot more power to buy bones in the market whether that's a good thing is much more debatable whether they're going to work. it will it will be it will be a step i mean it's a 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 pick and particularly 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 want to and fro 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 will be the central bank is not to create employment not to run the government deficit not the help of 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. i have to concur with michael on this i mean 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 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 and i think all of this to a certain. 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 the 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 or real european 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 thinking and your audience may not be familiar with that because it's a technical term rent seeking means get a free lunch for privilege right now central bank commercial banks can create credit on a keyboard and they say let us do what we're responsible but if a government does it they said look at nineteen twenty one one hundred twenty one and the hyperinflation happened because of german reparations and it was international. the europeans who have let the commercial bank the lobbyists shape the discussion into a kind of fake mission fictitious don't work here let us make a whole killing off the government ok we think that's a good judge i think. with the state of i take or not as he said i think there's

a there's a lot in there but i think it giving it too much for an american perspective you're talking about you're talking about a lot of the world economy in general has a problem its financial sector and its banking sector and that's true pretty much rev you know that through the years down the street the u.k. there's very united states but there's particular problems in the year as i did which is that because he's been put together in a dysfunctional way because it doesn't it doesn't work and it's not particularly a problem about commercial banks ripping off the rest of the population that may be carrying on as it goes on in the rest of the world i mean it's. how about the fact that the currency itself is dysfunctional these economies are not convergent and you have too much debt in the ethical countries to great you know the balances in the dust about what is on the when the different countries and the money comes the journalist will physically. unity is 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 but i really 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 i don't vision to do what's good for the commercial bankers and the few of us some pro 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 assure you it will be 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 over a hundred years you do see at the point that i want to go back it was called is actually risen 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 maintain reasonable levels of employment and that somehow they would eventually be able to repay the debts that would take it on the property you know how do you get there that's going to you ok matt factionalism 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 the same you would have this guy we know you don't have a slippery slope you have you would have a slippery slope right there that you would have ok five over the next twenty years you're going to help us clean up our debt our infrastructure problems issues can you change their cultural attitudes i mean i agree with that he gives the time was a time frame for the mediterranean countries to get their act together. should someone be paying for that uni i mean you know it's kind of a facet where you can say ok you need the greek economy structural reform of course any structural for me one can see that that's been true for a long time it was a merry christmas if you can you can do it at a time when you have an economy contract here 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. and we had real factories and you know the visual version and it was great wasn't that much from a to the economy a lot of good but the economy was a contract you had a couple of years that economy was contract you paid it on the whole the economy was expanding quite fast i think you had a head that's risen under tony blair we are you know we can't be carried out of if

we still have if we look. at a party kind of white about wages you can have factories and you can have that kind of structural reform and economy was shrinking at six six percent seven decide to you know i just i just think it's impossible it's too but it's too much to our compilation you can have it could have an economy that's growing trees to 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 better they industries have to try just very 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 just because it's not the best matthews point is a good one though again about diversion development but the problem is that unlike england you can't have all of eastern 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 well you can't it's a beggar thy neighbor policy in the u.k. has been very good at it london has been exceptional at it but not everyone can do it the other problem that 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 and united states only rich people avoid 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 civilized country not europe but america or latin america or africa for a civilized area they would say with a 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 to the banks we caused the recession now. you give us the money and by the way we know you don't have a let's sell 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 that 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're leaving to the average american does 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 is so dead and by your rotten bankers and 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 or i'm going to 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 water it has 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 on a sonic boom say factoring in mammals or it's the burning oil fields on the rock or a good story corps in the pacific for planning purposes the list just goes on and

on the geneva conventions and in forty nine states that there shall be. in war to protect some votes against widespread long term and severe damage to the united states although it is accepted almost all of the provisions of protocol from one has taken exception to that. particular.

welcome back to crossfire crime peter lavelle to remind you we're talking about the fate of the euro or a gentlemen we've talked a lot about finance and banking let's talk about the political angle of this how is this your crisis affecting political discourse do the extremes and those look at the left first than it. is the leftist party a lot of the c been taken out of their wins because of what austerity is supposed to mean or does it in energize them we think that well you know the key critical problem is that is that what happened what needs to happen economically is to have a much more powerful european central bank and a common fiscal policy but there's no there's no political support for its leaders are absolutely stuck that you know you could say they were your economic advisor ok so you do think it's necessary but it's politically impossible it's going to be the journey here all the way so it's not but if you believe there's a political desirable because this may have little control come when you know

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 are sure i'm sure i'm sure americans will make most of criticisms as i would have the u.k. the political system but it's you know it's roughly speaking. the democracy whereas you have just just just is that there is no mechanism by which for example the european central bank or european treasury ministry and you have to find if it's resetting coming fiscal and tax policies can have any kind of any kind of democratic leaders honestly don't know yet is it going to feel that there needs to be more consensus here but is 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 different possible right now because it seems that the inclination is to go in reverse with the problems even worse yet i mean unfortunately the social democrats whether it's in germany or any other european

union country operate under thatcher's max unless there is no alternative they're not acting as social democrats are 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 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 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 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 if the they have somehow been taken over by the banking sectors in their socialist and 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 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 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 with an european union countries between social democratic governments and conservative governments the electorate is just terribly confused and they just don't see and also what you know you know i remember watching a report about a woman in iceland who 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 at all and 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've 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. so i disagree with the perspective here but i think you want confuses people as you have you know the financial crash you guys are in a bad. credit cards and all that stuff which was a global problem and then you have the euro which kind of came along soon off with 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 regardless of whether you have the financial the credit crunch with financial pressure to fascinate i think the euro because it's a dysfunctional cards because it was badly desired would it would have would have created a with all of these problems i just you know i don't really greta the same problem the only way they were really made was because you got a massive increase in budget deficits to deal with financial crash which kind of exaggerated parts of yours i but i really think i think that different problems i

think after analyzing and lies and separately just you know your political point 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 it's a dysfunctional because it's a bit like the gold standard in the one hundred thirty s. it was created massive deflationary forces that austerity which i conduct which opened up a lot of a lot of a competition for the right and to some degree the same thing is happening to see in finland where the true finns i mean that although not a fascist party they are nationalist party marine le pen influence is the only mainstream voice that one has that mainstream one way street may not be. you know a baby she's on twenty two twenty three percent of what you are and it is pretty you said it about who would evolve and change would be nice he's not mainstream in the sense of except movies but it but the crisis he's 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 which is a bad idea if you want to go for your point about iceland is absolutely correct look at the situation where the flow szell 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 and the president who only has a function of signing off said if you're going to bankrupt the cum country for fifty years there should be a vote ninety percent of the people 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 he 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 some true independent central bank is the hallmark of democracy where the independent something nobody votes for him is going to hold by the only guarantee it means drop your democracy let's seven oligarchy that's what an independent central bank means in the long as you have a some throw by a run by right wing bankers who will say we want to bring in an anti labor economist like the lady in france who said of.