several suicide bombers hit police stations elsewhere in the city and surgeons stormed an occupied a half built high rise building firing guns and rocket propelled grenades from their afghan meet a force surrounded the building killing six militants and forcing several others to fleet u.s. embassy staff were ordered to retreating to bomb and bulletproof shelters texas based dairy brave new foundation think tank says the presence of u.s. troops in afghanistan merely encourages the taliban to keep on fighting. here where you are just as the nine eleven ten year anniversary and major attacks are being mounted in the capital we're just weeks out from petraeus you know kind of crowing about the most recent statistics you want to cite saying that you know violence is coming down but that was immediately followed by august which was the most deadly month ever for u.s. forces in afghanistan and then followed by the spectacular attacks in the capital it shows that the military approach in afghanistan support has worked what's happening is that because the united states didn't respond to their primary just

occasion for the war being achieved which was the killing of a son but that has lent credence to the taliban argument with the local people that if united states has its own purposes in afghanistan that has given the taliban even more recruitment abilities to be able to say that what's happening is the united states is occupying afghanistan my prediction is if united states doesn't change course they're going to see continued slide instability in the country cries of local instability and local powerbrokers who are going to further destabilize the country we're actually generating a situation in afghanistan right now that was much like the situation that led to the political rise of the taliban so unless the united states gets serious about political negotiations with the leaders of the taliban we're not going to see an improvement situation. brings us up to date for an hour remember that for more it now is turn to our left side r.t. dot com alice i'll take a look what's happening and the world of business with elian.

hello and a very warm welcome to our business update fresh concerns about the european economy have caused another wave of turbulence in the global stock markets stocks swing shockley by hundreds of points and while investors are way the chances of the meltdown in europe jacob knell for morgan stanley says russia doesn't have much to worry about so far. russia is actually a much better position and other central european countries and say turkey in the region because it has less strong trade and investment relationships with europe because it's more of a global trading country and it depends on the possible oval commodities such as all which depend on growth in emerging markets such as china and india above all so russia's fate is totally dark with the growth of china and india not at the moment looks reports and hasn't been affected by the downturn in developed markets as compared to other. countries i think russia reasonable with brazil as

essentially a commodity exporter which is exposed to movements in commodity prices which are affected by global growth it's not like china and india which are large enough that they can determine their own fate to make their own economic weather to a great degree because it depends on commodity prices which depend upon global developments. let's have a check on the markets oil prices are heading down pulling u.s. crude off six weeks highs investors concerns about the euro zone are taking precedence over tightening supply lights which is trading below eighty nine dollars a barrel while branches that one hundred and eleven dollars. and asian stocks are mostly low pulled down by weaker financials your of step walls are still in center stage as the threat of greek default continues to loom hong kong's hang seng was setting for its lows close in more than two years has developed this retreat and after the chinese premier's signals china should not be expected to bail out the global economy. here in russia the markets are seeing losses in early trade

tracking asia lower than myself something archie has a both down just one percent what investors are going to be eyeing today is u.s. inflation figures due out at sixteen thirty moscow time let's not have a check on some of the individual index movers on the might since most energy majors are under pressure as you can. we have cars with gas from down point eight percent rolls clinical reversed chooses gave the company has approved tests buyback of seven point seven percent of its shares belonging to minority shareholders it will cost the company one help billion dollars telecom is also down the company has reached an agreement to join to develop its customer terminals with international chip maker intel looking forward to the sun the risk at best polite see believes although investors the general is still cautious russia's stocks looking more and more attractive. different we will be still fall in the europe and also you know

europe goes especially everybody stricken european banks and all the things that are related to. greek and the country has been some of the potential solution of the situation so we will definitely see all the symmetry we will. see but russia still still. kind of we can call it so when we work now we can call it so if someone wants to restore the stool and most of those definitely will be closures some of the investors are seeing some of the cash while some are it will be before they get to be in some new ideas and in some new ideas especially definitely not in the liquid names and everybody is looking at the liquid stocks of the world is looking at the right time to go. and all the news that russia is considering delaying the privatization of a ten percent stake in its second largest bank. the sale planned for next year depends on disposal of another assets seven point six percent of the country's top lenders per pack early it was reported russia could revise its privatization plans

due to the latest volatility in the stock markets. that wraps up the business bullish on the europe for date more news and analysis for you and our website arjun dot com slash business.

liz. let's just say please. click.

welcome back if you just joined us you're watching r.t. live from moscow here's a look at the top stories italy prepares for you wife of a stereo as a government sits down to approve a range of major tax hikes and spending cuts while downplaying fresh outrage over its own web page budget. the u.s. and remediate seal a deal paving the way for america to build new military bases in the former communist state brings to fruition a bush era missile interceptor plan for you are. the taliban here afghan capital kabul with a wave of attacks killing at least seven people and sparking

a nineteen hour a long firefight gunman targeted the u.s. embassy and nato headquarters while suicide bombers hit throughout the city. this week top stories i'll be back in about thirty minutes time for that oh we bring you our debate show cross-talk that discusses the future of western capitalism. the latest in science and technology from. the future. to keep. a low in welcome crosstalk i'm here with emerging countries in an ever changing

world but what does it mean when a country is finally emerged. to keep. the fate of western capitalism and globalization i'm joined by john laughlin the director of studies at the institute of democracy in cooperation he's a lecturer in politics at the university of kent and allan friedman he's a former economist working for the greater london authority and i'd like to point out predicted the second wave of this great contraction all right gentlemen let's look at capitalism as it stands today we have china we have brazil we have india we have russia lecturing the west now west lecturing the united states and the european union john is a case where the west says do what we say but don't do what we do budget deficits fiscal policy the mess in gridlock all around well the reason why these countries are lecturing america is that for forty years america has had an exorbitant

privilege in the international financial system the dollar is the dominant reserve currency and moreover since a decision taken by president nixon exactly forty years ago in august nine hundred seventy one to close the gold window in other words to cut all links between the dollar. and gold the whole world has lived in a dollar dominated regime of fear paper currency that is to say of currencies which are expressions of debt that will never be reimbursed and it's that basic fact that the monetary system is based on debt which nobody has any intention of reimbursing which in my view has generated the problems that we now seen in the eurozone in the banking committee what we have for somebody else being all right these are all we have connected with debt we have everybody else paying for it so when the u.s. makes a mistake when the european union makes an absolutely eurozone it's all but the privileged elite i mean it's you know the indians are in the question of the

brazilians are very upset because they're saying we're exporting your inflation to us. i think there is definitely doubts and and that's why you know you have to look at global imbalances and see exactly where these huge distortions and. valances come from but i would say this. everyone in a way has benefited from the few sort of economy the chinese in a way have because they've been able to keep down their currencies are already defined in a certain way isn't it i mean at the end of the day you can't have an entire economy running on debt to police that there's no you can't but the fact is i think there's been too much complacency in the global system that is that for the big problem the global system is not even just state that it's the fact that we have too much debt corporate private and public and the fed of the that the real economy is in undermined by all the kind of hot money circulating around the world so we really need to do is tie finance to the real economy no one has really come up it's not in the west not in the east not in the north and also in the south so i think it's a global problem which i don't think we've heard real solutions. least not from countries

very political i think political will is actually from the very countries that you say are now starting to say why should i listen to the u.s. and the reason is the spin i follow the work of radical whom explains very clearly that these ideas about globalization and free trade that everybody took as being this must be true were actually very carefully fostered myth and you can trace it through the the liberations of the people who invited the president were fostered by the u.s. in this three minutes and truth of gone ok the first myth is the usa is the greatest power in the world economically and politically the second myth is this nation's a vanishing coming about the third myth is that the state cannot play any role in the economy and in particular it cannot invest well the developing world never they were many people wanted them to abandon that but actually a lot of the countries that will tell you you know paraded as paradigms of new liberalism like india actually thirteen percent of the indian economy is in state

hands the banks are still controlled are still capital controls and that was never allowed as part of the explanation for their success i think they're just now starting to say hi on all the things you told us not to do those things that got us through and maybe you shouldn't do. west is more ideologically driven than any of the countries there were you know it just as the west is more hypocritical because i think one could make the same point about the american economy which after all depends to a very large extent on the money that's channeled through the pentagon whose budget level let's forget is two billion dollars a day and that money goes to factories all over the united states and represents a considerable part not only of the american economy but much more importantly of the american power in the world you know the invisible hand is guided by the iron fist of american military power so the idea of this to simple to american supremacy based on free markets and so on is completely wrong but it's certainly the case that there is not and cannot be a free market economy without

a strong state at historically true and certainly true today just look at how the states have to bailout finance because if they didn't bail out the banks everyone was going to go down there has been a collusion of the free markets and the collusion of the strong states since the late nineteenth century at the very least possibly going back further in history and so really what we are talking about is states and markets colluding at the expense of civil society to be easily don't actually have an eye for ptolemy wages property and so on to make ends meet that's the real situation room is where the circle we have the tea partiers in united states don't want to raise any taxes they just want to slash slash slash it's a very very interesting job students are spread all jobs local jobs create more unemployment there's a very curious poll which went on when the events of madison wisconsin were going on the sort of the american arab brought rising as it was dubbed turned out i'm told just anecdotally but i trust that two thirds of those people participating declared their affiliation as tea partiers there is just people feel betrayed

there's a rage against the government now it's misplaced it's chaotic actually tea party support once they started going on about the debt ceiling and people realized that meant cut social spending tea party support dropped from forty percent to twenty percent in the polls. i don't think from what i've seen the american people are one hundred percent behind this you know dismantling what is left of the social state to the contrary they feel cheated by the banks they feel cheated by the politicians and they're expressing it in in co it why because nobody is giving them leadership not only leadership i mean if we look at we go into this the great contraction the great recession we look at wall street has recovered handsomely very handsomely we can talk about the eurozone a little while here but main street and just been guided in remains that way i mean right now we have we just got the unemployment figures in the united states i mean the when there's no good job growth at all you have no recovery from a recession when you don't have job growth well i think like many people that the

financial sector is grossly overblown i think it's committed all sorts of abuses that that has become obviously a commodity that people as a sort of this important deal responsible isolation and so on and so on but i repeat what i said just now which is that the fundamental problem is the debt generated by the monetary system and in a sense attacking the finance industry is only shooting the messenger because their job the job of banks is to safeguard people's savings and to invest it in a situation where as. everyone is forced to play the game although nobody understands the rules of very few understands the rules these people i'm not denying they've committed to be used but ultimately they are presented with an unbearable situation in which they have to provide for a risk which is generated by the unstable monetary regime that we live in that's just saying that we need a banking system over the economy i mean a real economy i think that's what we've really happened here and that's what causes so much rage i mean i would i'm the first to agree you need

a banking system as john pointed out to have an economy but it seems that the economy has been sacrificed for so long in favor of banks because when you're bailing out greece you're not bailing out greece are bailing out french and german banks that's what you're be absolutely and the big problem is that we're solving the interest of very second. which is overblown and i entirely agree with draw on this and in fact whose growth and profit if there are any never trickle down to the masses it's a complete myth to say generate financial wealth financial profit and somehow everyone will benefit it's just not true it's not true in the us it's not true newquay it's not true anywhere i mean except for maybe a city like single poor hope small country like luxembourg i can survive on on the proceeds of life with no wealth as the truth of what we need to do so channel money into productive capacities i can even include i was told i was reproducing they have been everything to productive productivity well it is in. china in russia i mean you don't have to do it in the u.k. you are a major of the new the us that hung on the very nature i mean to get out of a crisis you have to obviously preserve the jobs that are being destroyed but what

you actually have to do is get out of it by investing in what's new now the interesting thing about the economy now it's seventy eighty percent of jobs in the advanced world all service jobs and we have to think through what means because the internet has vastly expanded the capability of humans to interact with the curious thing is they've reacted to that actually being much more interested in things that are locally produced locally used the nature of services the person effect means that actually you can rebuild an economy on the basis of advance services in london i really saw this because people were getting absolutely terrified by the collapse of revenues from compact discs and so on and what happened is all the money was being spent on life performance and we were just about to dismantle our performance venues and i said hold on no we're going to need it and actually the apollo which was threatened with closure framus stance all in and west london is reopened as the apollo that's the way to go but trouble is it's

a very interesting example as i think it does show that people have a desire for you know real in this case real service they can participate in and benefit from a complete virtuality which is what global finance after all is the same time as you say it's now owned by the which is a global chain and does benefit from. this kind of globalization has brought about the current crisis i think what we also need is to diversify economies and not just have services even though they can be. more productive services and less productive ones but also high tech industry high tech manufacturing that is also in even i could culture i mean there is still food shortage russia has huge resources in this respect that's where the money needs to go not into finance and not into services which in the end can be also very fortunately would give financial lives all right gentlemen we're going to go to a short break and when we turn from the break we'll talk about the state of western capitalism in globalization stay with r.t. .

well when one deals with war for a customer laws of this tremendous amounts of damage that are done not just human damage but damage the physical environment in which the battlefield takes place and tremendous amounts of damage done by aerial bombs by napalm boy come from saddam's whether it's hard sonic booms extract to bring mammals or it's the burning oil fields here on the rock or it's stroy coral reefs in the pacific for a grammy purposes the list just goes on and on the geneva conventions of nineteen forty nine states that there shall be stages in the war to protect funds on against widespread long term and severe damage from the united states although it is accepted almost all of the provisions political one has taken

exception to that. from. its.

welcome back to crossfire i'm peter lavelle we're discussing the fate of capitalism in the age of globalization right here's here i mean one of the things that's happening in western economies is this what i called is age of entitlement where people believe that the state owes them something and looking at the baby boomers here is this the mentality and it's mixed in with election cycles here too you know where the election cycle going on in the united states nobody wants a third season title meant just the kiss of death when you want to be elected ok that when kelly has to start changing jobs i mean the welfare state and the abuses that are committed against it is a massive problem and. just to give an anecdote recently a few years ago in london the bar of hammersmith was won by the conservatives and

they won it by going around all the council flats in hammersmith and promising people a new kitchen if they voted conservative and they did and presumably the new kitchens were provided in other words the state the state's role as a political community is a law based community that's been completely bastardized. and has become instead a vehicle for providing material goods and naturally that is open to abuse it's open to abuse by indigenous people it's open to abuse by immigrants and it he's one of the courses one of the many causes of ballooning state budgets people as you say in your question expect the state to provide for them and they regard the state as a cake to be somebody on our more so if we look at the history of political economy this is a relatively new phenomenon and it came about after the second world war before that people didn't expect. so much of the state you were lucky if you got basic education and nobody promised you were job nobody you promised your job opportunities it's gone too far in it's got into the election cycle no it's very

few people a few mavericks can fight it but most people just go along to get along i think. i would probably add this. one chief of the the welfare states after the second world war was that it did provide universal standards at the very least people weren't left say to die in horrible condition that was the whole reason why it was created in the first exactly so i think the idea of universal standards is still one shouldn't entirely abandon but i think it's the mode of delivering any kind of service any kind of wealth that we need to revisit and what was destroyed with the centralization of welfare was all the mutual lyster arrangements all the reciprocal arrangement among workers and then fact were quite advanced things like friendly societies things like hospices they were actually all community based or based on professional association on guilds essentially and if we were not privatized welfare to turn into something community based user base so that people

can participate in the services that they receive then i think we're doing the right thing because you know we'll either not looking at the state model we don't you know you decide to say you look at your model which still exists in front exactly you still have thousand passion or you think it's it could be linked to local governments it's not anti state says it's just saying the central state doesn't know what we need local authorities minds regional authorities in some cases but especially to the community of users and providers that should really be empowered not some bureaucrats in london paris or new york or washington d.c. i would distinguish between a sense of entitlement and a sense of right and the difference is this entire movement you say i want nobody else is going to get it and i particularly want to take it you can't take it away from me because that is very important i think a society of right simply means we should all have it but the curious thing is that you need to update life liberty and the pursuit of happiness because nobody says life liberty and the pursuit. you cations actually if you look at what's happened as society has progressed the one thing that has never happened is the leaving age

for school has never gone down it's always gone up simple proposal universal education that's what the workforce of tomorrow will need to be like if it's going to produce the sort of stuff that we can sell and it's not by the way council posing the advance course of produce or services to the basic ones because their basic real infrastructure is needed in order that you can have those intellectual functioning the creative city has to be continually redesigned to be a local it's the place where this sort of thing happens so actually you need this huge infrastructural investment and you need what i call social investment investment in civilization without going back to the role of the street right here in this is a very imperfect us i mean and almost to the point where it's a self-inflicted wound because who can afford to do huge infrastructure projects i know the united states freeway system for example that really needs a lot of repair you can do privatized i hopefully not but

a lot of people you can have structures other than the central state and its agencies you can have infrastructure banks for selling to local investment trusts and all sorts of ways you can deliver on the same goods and services we're talking about without involving i did the central states or cartel capitalism where we need to break is the collusion of the central state and big multinational corporations and essentially essentially lies the economy we all believe in local democracy or at least most people do we never believe in democracy when it comes to the economy we don't believe in local participation when it comes to economic decisions what i think we should use it is simple question is the b.b.c. a state institution it's a public himself things exactly that's sort of the state's public exaggerating star of the. day but for the same you know the press one should rephrase yes the state has to come by put in a diverse diverse and one of the things we have to do is reinvent the state actually going to the public realm. enticement based on the fact that if the private investors are going something else that is publicly accountable is going to have to step in it doesn't have. to or all roads lead to rome but it's about

democracy too i mean when you have an election cycle you have to deliver the goods at least at a certain point or make promises that you can't keep and this is one of the problems that we the industrialized west has because it has to give the pretense of making promises in entitlements and it's very short limited basis but when you have india brazil china russia they think very long term i mean everyone in russia talks about putin's twenty twenty five project ok and slowly but surely they're working away at it but there's a longer vision and it's not tied to the election cycle how much of the problems in the economy in the west is tied to elections the more the state provides material goods and the more that it's seen to be that then inevitably the more it will fall prey to election cycles but i want to use that what we would spend said about higher education and other social goods provided by the state to illustrate or.