removing chips ok dr davis founder and director of nato watch her speaking to us live from scotland i think it's. ok well we've got many more stories for you on our website of course dot com do log on to check it out there is not much is third richest man his political career after a little over two months of ahead of the right cause party it's on the verge of a split so over some of his more controversial decisions it's. facebook's hiring for more white house employees find out why the social network seems to be doing some networking one of its own with the powers that be. as a look now at some other international headlines this hour and separate attacks against

iraqi security forces have left nineteen people under the fifty injured across the country in the deadliest incident a car bombing outside a restaurant was killed fifteen in southern iraq officials say the bomb went off by local police were eating breakfast also in baghdad gunmen opened fire on a security group troll killing a two policeman and in western iraq of bomb exploded on a minibus that was carrying songs to a training area two of them killed. the top commander of nato and u.s. forces in afghanistan has said the latest attack from have left twenty seven dead including afghan police and civilians and insurgents coming from light on the u.s. embassy and nato headquarters and from a partially built high rise block at the same time the several suicide bombings hit targets throughout the city the twenty hour assault ended on wednesday morning the u.s. ambassador to afghanistan has a pakistani big network was behind the attack. an appeals court in france for the

question former prime minister dominique de gaulle flaunts again the last couple see because brianna want to fake a list of names was released linking the then presidential hopeful to secret bank accounts allegedly holding bright money for military deals that was before the presidential vote of two thousand and seven but the real power he was prime minister at the time was accused of failing to stop an investigation even though he removed the list was a sham the acquittal now allows him to stand against the in next year's presidential election. part of our headlines in just a few moments before the game is going to business update with money now. to business here on our fresh concerns about the european economy has caused another wave of turbulence in the global markets and while investors are worrying the chances of a meltdown in europe jacob welse of morgan stanley says russia doesn't have much to

worry about so far. russia is actually a much better position in 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 pains when the price of commodities such as all which depend growth in emerging markets such as china and into europe. so russia's fate is truly don't we've the growth of china india and not at the moment looks reports and hasn't been affected by the downturn in developed markets and 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 trying to remind you which a lot you know if that they can determine their own fate to make their own economic

weight or to a great degree because it depends on commodity prices which depend upon global developments. on the second look at the markets now will start with oil crude is maintaining its sources after the u.s. energy department reports that the final inventories in an unexpected gain in gasoline stockpiles over the last night that's over the course of the sad story of standing gains for a third day as investors round up the nets there about a resolution of nerves that crosses the dow though has slipped a little bit since then as that point three percent european stocks are higher after european commission president boston one of ourselves said the commission will soon present options for the introduction of common europeans but some believe can help resolve the debt crisis. these has got the ratings of c. france banks out of them as credit agricole and the other sites in general. and then zone that's the french banking sector is the biggest holder of the sovereign

obligation. and here in russia markets. and that's right in session mix that comes after the central banks for finance for a decision which was last on changed up eight point two five percent let's take a look at something that's movers there on the my sex gastro morning all just over one percent the company has increased this twenty eight up without some forecast by for sends it to five hundred and twenty being cubic meters of gas if this is the only game for two and a half percent and drug maker video pharma lost a little bit this spied stronger than expected results its first half net profit growth slowed supersized since ninety nine million dollars and only that's got so from with a b capital wraps up today's trade films. the indices in the major polluters following europe in the us upwards as the market is expecting some news from from them is the press conference has to be held including anything under america because there is he and the prime minister of greece the boss the reaction of the

market it reflects both groups of patients or some sort of resolution and solution would be found out i'd like to point out that there's been a number of occasions when the market's been expecting some concrete measures through european authorities that would solve the crisis and so far all of them have failed judging by the never come the bond market and they have a rise in yields on both greek and other periphery european darren's. considering delaying the privatizing of the ten percent stake in the second largest bank lead to be the sell plan for next year the plans of the stows over the other assets the seven point six percent of the country's top lender spurred on earlier was reported to us that could revise its part if i was a some clients due to the latest volatility in the stock markets. plus all the business news from the headlines are next.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. china for asians are relieved a. mug.

will. bring you the latest in science and technology from the realm for. the future coverage. this is aussie putting a stop to stop and the british government faces pressure to exceptional police powers intended for use in courts of terrorism that has all the loopholes of british rule out terrorist suspects the law is without charge or trial. and hillary clinton voices america's concerns over a surge of sectarian violence across the arab while following the wave of washington but it's not rising now a new report on religious freedom the u.s. secretary of state owes arabs not to trade one form of regression for another our.

hopes of salvation for the euro coming from asia fade as china makes it clear the stakes responsible steps to tackle its own economic problems just days after italian officials report to be attempts to convince the chinese delegation to buy a share if these debts. next artie's debate cross-talk discusses the future of wresting capitalism in its driving force a once mighty shrinking american middle class. you delete this in science and technology from. the future cover. it.

hello and welcome to cross talk i'm people of all emerging countries in an ever changing world but what does it mean when a country is finally emerged. it. discuss 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 we i say but don't do what we do budget deficits fiscal policy to mess in gridlock all around but 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 the decision taken by president nixon exactly forty years ago in august one thousand and seventy one to close the cold 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 a military system is based on debt which nobody has any intention of reimbursing which in my view has generated the problems that we now see in the eurozone in the

banking committee but we have received your spirit all right that 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 so much they look like the eurozone is all because. adrian i mean it's you know the indians are. actually the brazilians are very upset because they're saying we're exporting your inflation to us. i think there is definitely doubt some and that's why you know you have to look at global imbalances and see exactly where these huge distortions and. imbalances come from but i would say this. everyone in a way has benefitted from this fuel economy the chinese in a way out because they've been able to keep down they've got a temporary defined in a strong way isn't it i mean at the end of the day you can't have an entire economy running on debt at least if there's no way you can but the fact is i think there's been too much complacency in the global system that is a problem the big problem because systems not even just state that it's the fact that we have too much that corporate private and public and the fed of the that the

real economy is being 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 with is 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 advised the president that were fostered by the u.s. in this three minutes and two of them have gone ok the first myth is the usa is the greatest power in the world economically and politically the second myth is that the nations are vanishing they're not coming back but the third myth is that the

state cannot play any role in the economy and in particular it cannot invest now the developing world never they were many people wanted them to abandon that but actually a lot of the countries that are totally you know paraded as paradigms of new liberalism like this 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 be. west is more ideologically driven than any of the countries where we're you know 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 disembodied american supremacies 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 as historically true and certainly true today just look at how the states had to bail out finance because 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 state 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 would really be slowly but surely have an awful ptolemy wages property and so on to make ends meet ups the real situation where we square the circle we have to keep our ears and united states they don't want to raise any taxes and they just want to slash slash slash the very was very interesting these last jobs students are federal jobs local jobs create more unemployment there's

a very curious poll which went on when the events at madison wisconsin were going on the sort of the american arab brought rising as it was down to turnout i'm told this anecdotally but i trust that two thirds of those people participating declared their affiliation as tea party is 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 it 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 state feel cheated by the politicians they're expressing intern in co-write why because nobody is giving them leadership over not only leadership i mean if we look at we go into this a 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 is just been guided in remains that way i mean right now we had we just got the unemployment figures in the united states i mean the word is 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 of a blow and i think it's committed all sorts of abuses that that has become obviously a commodity that people there's a sort of dis important there's a 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 the sense attacking the finance industry is only shooting the messenger because their job the job of banks is to safeguard people's savings in to invest it and in a situation where as. everyone is forced to play the game although nobody understands the rules the very few understands the rules these people i'm not denying they've committed to be used it but ultimately they are presented with an

unbearable situation in which they have to provide for a rich suit which is generated by the unstable monetary regime but military that's just saying that we need a banking system over the economy i mean a real economy and 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 or not bailing out greece or bailing out french and german banks that's what you're because there were three and the big problem is that we're solving the interest of a second. which is overblown and hollywood targets 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 and profit and somehow everyone will benefit it's just not true it's not true in the us it's not true in the u.k. it's not true anywhere i mean except for maybe a city like singapore or hope small country luxembourg i can survive on on the proceeds of with nowhere else is the truth of what we need to do so channel money

into productive capacities that can even include i was told i was reproducing they have been if it into productive productivity but it is in. china and russia i mean you don't have to do it in the u.k. you are very 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 is seventy eighty percent of jobs in the advanced world are service jobs and we have to think through what means because the internet has lost really expanded the capability of humans to interact with the curious thing is they've reacted to that by actually being much more interested in things that 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 close a famous dance all in and west london this is the apollo that's the way to go the trouble though is it's a very interesting example is 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 and great for me which is a global change and does benefit from. this kind of globalization has brought about the current crisis so i think what we also need is to diversify our economies and not just have services even though they can be better more productive services and less productive ones but also high tech industry high tech manufacturing that is also in even i would culture i mean there is still from 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 unprofessionally with good

financial lives all right gentlemen we're going to go to a short break and we return from the break we'll talk about the fate of western capitalism and globalization stay with r.t. . ok. well when one deals with war for a customer realize that this tremendous amounts of damage that are done not just human damage but damage the physical environment in which the battlefield takes place tremendous amounts of damage done by aerial bombs by napalm boy chemical sims whether it's our sonic boom six factory or a mammal zoo or it's the burning oil field syria and iraq or against stroy coral reefs in the pacific for ramming purposes the list just goes on and on the geneva

conventions nineteen forty nine states that share shall be taken in the war to protect the involved against widespread long term and severe damage the united states although it is accepted almost all of the provisions protocol and one has taken exception to that. i. am.

welcome back to cross talk 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 call this age of entitlement where people believe that the state owes them something i'm looking at the baby boomers here i mean is this a mentality and we mix it in with election cycles here too you know where it would be election cycle going i mean i would states nobody wants the third season title meant just the kiss of death when you want to be elected ok but that mentality has

to start changing yeah 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 and 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 has been completely bastardized. and has become instead a mere 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 eight he's one of the courses one of the many causes of ballooning state budgets people as you say no question expect the state to provide for them and they regard the state as a cake i don't know almost 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 but nobody promised you were job nobody you promised your job opportunities it's gone too far 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 be. the one chief of the the welfare states after the second world war was they did provide universal standards at the very least people were left say to die in horrible conditions and that was the whole reason why it was created in the first yeah 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 any kind of welfare we need to revisit and what was destroyed with the centralization of welfare was all the mutualistic 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 on professional association on guilds essentially and if we not privatized welfare but 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 if you know we'll either not looking at the state model with you or if you decide to say you look at your model which still exists in france for example you say you have thousand pashto you think it's it could be linked to local government so it's not anti status is just saying the central state doesn't know what we need and 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 or new york or washington d.c. good to see i would distinguish between a sense of entitlement and a sense of right and the difference is this entire treatment you say i want to and nobody else is going to get it and i particularly will suddenly actually take it you can't take it away from me because that is very important i think this is

scientific 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. education but actually if you look at what's happened as societies progress the one thing that's 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 camp opposing the advance go to produce the services to the basic ones because their basic 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 into civilization because it's going back through all of the states right here in this is we're not really in big us i mean in 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 bit 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 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 capitalism what we need to break is the collusion of the central state and big multinational corporations and essentially decentralized the economy we all believe in local democracy or at least most people we never believe in democracy when it comes to the economy we don't believe in local participation it comes to economic decisions well i think we should begin with a simple question is the b.b.c. a state institution it's a public. exactly that said of the state publication star of the ok but for

the same you know what approach one should rephrase yes the state has to come back but in a to perri diverse one of the things we have to do is reinvent the state actually in the public realm. entitlement based on the fact that if the private investors are going something else that is publicly accountable it is going to have to step in it doesn't have. all the exterior 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 if we set a certain point or make promises that you can't keep ok and this is one of the problems that the industrialized west house 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.