great effectiveness as a defense against official threats which don't even exist just not enough to send your kids will not send a message to the likes of north korea and iran or is it just an empty message is it . concerns a message that it does is the jury if you will not eat you turd. north korea or iran acquiring long range ballistic missiles possibly with weapons of mass is a nuclear warheads event i think it sends a message of you know hard moment of a hard stance against north korea or against iran but i think if the iranians or the north koreans start to take that seriously i have a different sense of believing that it's just in part actually. it's what's needed missile threats in the future to be able to you oh oh already against the united states i think there's some chance that they might think we believe it or were. foolish enough to go to war with

a plan for you to have this number of ballistic missiles that could reach the united states with say nuclear warheads ok but i mean i think. i think we have to stop because the salad isn't burning here but would you like to stay there and we'll try and do this interview again a little later when we're going to sort out a bit of a about a communication so apologies so that and we'll close it later but in the meantime i got him thanks very much. apologies for that and as i say we're trying to that interview and a bit later the business news is next now right. hello and welcome to business here on r t the leaders of greece france and germany have reportedly reaffirmed their support of greece and making sure it remains in the euro zone fears the country said in two words a default have some the interest rate on the stockmen bonds to record highs but

it's of russia because that much to worry about as straight about the morgan stanley explains. russia is actually a much better position other central european countries 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 price of close commodities such as always all which depends on growth in emerging markets such as china and india europe of all so russia's fate is totally dark with the growth of china and india and 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 is of course with brazil as essentially a commodity exporter which is exposed to movements in commodity prices which are affected by global growth it's not 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. like look at the markets that will start where the oil prices are max crude is maintaining its losses after the u.s. energy department report so the decline in this was an unexpected gain in gasoline stockpiles in the u.s. markets are gaining as investors fill color for the now about a resolution of europe's debt crisis both the dow and then as that are allowed standing gains for a day and european stocks closed higher after european commission prize that also might offer also such a commission will soon present options for the answer that question of one of your bonds but some believe can help resolve the debt crisis meanwhile moody's husk operating banks credit agricole and society in general as there to dependent on that's the french banking sector is the biggest holder of european sovereign that

obligations. and here in brussels markets and the servants us in the mix that comes after the central banks for finance or a decision. what's was left unchanged at eight point two five percent let's take a look at some and that's movers on the my sex gas fraud went up one percent the company has increased its once a love of production forecast by three percent to five hundred twenty five million cubic meters of gas if this is them again two and a half percent and drug maker visit a pharma lost a little bit despite stronger than expected results its first half that profit post tons of percent to twenty nine million dollars. grocer is concerned the lay of the privatization over ten percent stake in the second largest drug v.z. be the sale of plans for next year depends on the supposal of another assets a seven point six percent of the country's top lenders burbank earlier it was the order of also could revise its cards as ocean plans the latest was that it's the

end of the stock markets. so this is news for now you can head over to our website artsy that's called business for most stories but in the meantime stay tuned for the headlines with carol. back in. one thousand miles from the north pole. the mystic you know on

a trip to spitzbergen non-controlling go. where twenty years after the u.s. is harsh. to read life is still a gloomy. i'm struck. by the world's northernmost statue of lenin presides over and goes. to see it. has become a tourist site for those overcome by the cold war and the sell. the close up special edition on our t.v. .

stumbling. blocks like millions of americans i've lost thousands of dollars in retirement funds and i haven't had as bad as many so it's not just about them it's about need still. missing. the. need. but now. since this is my film i get the last word

this financial crisis will not be for golf like a light. if you just joined us for a warm welcome this is all t. live here in moscow time to update you on a main news stories not half past the hour putting a stop to stop and search the british government faces pressure to curb exceptional police powers intended for use in counterterrorism that's another new polls and british normal terror suspects to be locked up for years without charge or trial. hillary clinton voices america's concerns over a surge in sectarian violence across the arab world following a wave of washington backed uprisings and how a new report on religious freedom the u.s. secretary of state urged arab nations not to trade one form of oppression for

another. thirty troubled schools on its tally and streets as prime minister berlusconi wins parliament's final approval for measures aimed at tackling the country's deepening debt crisis. he continues with three and half an hour from now in the meantime artie's debate program cross-talk discusses the future of western capitalism in his driving force the once mighty now shrinking american middle class . bringing you the latest in science and technology from. the future covered.

hello and welcome across town. emerging countries in an ever changing world but what does it mean when a country is finally emerged. in. 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 of 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 gold window in other words to cut all links between the dollar and gold the whole world has lived in the dollar dominated a regime of yet 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. we know see in the eurozone in the banking committee but we have for somebody else being all right these are we connected with

debt we have everybody else paying for it so when the us makes a mistake when the european union makes so much legally the eurozone is all but a privilege it's alien i mean it's you know the indians are. actually the brazilians are very upset because there's no way you are exporting your inflation to us. i think there is definitely doubts 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 benefited from the few sort of economy the chinese in a way have because they've been able to keep down their current teams who are 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 at least that 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 big problem the global system is 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 out of this not in the west not in the east not in the north not in the south so i think it's a global problem which i don't think with real solutions that will result from countries really political i think the 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 thought of the work of radical 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 this nation's a vanishing not a coming about 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 play with

many people wanted them to abandon that but actually a lot of the countries to tell you know paraded as paradigms of new liberalism like it's 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 hung on all the things you told us not to do the things that are going to stir you and maybe you shouldn't say that it would. west is more ideologically driven than any of the countries where we're you know it just has 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 channel 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 of the 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 dissembled and 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 historically true and certainly true today just look at how the states had to bail out finance and if they didn't bail out the banks everyone was going to go down has been a collusion of the free markets and collusion of the strong state since the late nineteenth century at the very least possibly going back further than history and so really what we are talking about is states and markets colluding at the expense of civil society to release later and actually have enough works for me wages property and so on to make ends meet that's the real situation where we square the circle we have the tea partiers in united states don't want to raise any taxes they just want to slash slash slash version is very interesting this last jobs to be slashed 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 narrative brought rising as it was dubbed and turned out i'm told this anecdotally but i trust that two thirds of those people participating declared their affiliation as tea parties 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 you know the debt ceiling and people realized that meant cuts social spending tea party support dropped from forty percent to twenty percent in the polls. i don't think from what i've seen 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 any way because nobody's given them leadership well that is 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 is just been guided in remains that way i mean

right now we had. unemployment figures in the united states i mean 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 over below and i think it's committed all sorts of abuses that debt has become obviously a commodity that people there's a sort of simple didn't the responsibilities ation 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 and in a situation where as edmund burke wrote everyone is forced to play the game although nobody understands the rules or very few understand the rules these people . are not denying they've committed abuses 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 but we didn't that's a saying that we need a banking system over the economy i mean a real economy i think that's what we really happen here and that's what causes so much rage i mean i would i'm the first to agree you need a banking system is john's 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 basically salute and the big problem is that we solve in the interest of very sad. which is overblown and i entirely agree with john bates 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 for profit and somehow everyone will benefit it's just not true it's not true in the us it's not true me ok it's not true anywhere i mean except for maybe a city state like singapore or hope small country or luxembourg i can survive on on the proceeds of a farm state 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 that i was sure it doesn't

happen if it can be productive productivity but if you just in. china or in russia i mean you don't have to do it in the u.k. you have a very major of the new the us but hang 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 vastly expanded the capability of humans to interact and 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 up early turned five 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 don't fall in and west london is reopened is the apollo that's the way to go the trouble there 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 but 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 so i think what we also need is to diversify 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 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 change services which in the end can be also very uncool fortunately with good financial life all right gentlemen we're going to go to a short break and we turn from the break we'll talk about the fate of western

capitalism and globalization stay with r.t. . ok. well when one deals with water a customer realize that this tremendous amounts of damage that are done not just human damage but damage the physical environment in which them belfield takes place tremendous amounts of damage done by aerial bombs by napalm boy coming from saddam's whether it's on a sonic boom some factory marine mammals or it's the burning oil field syria in the iraq or egypt's destroyed her. search for planning purposes the list just goes on and on the geneva conventions of nineteen forty nine states that care shall be saved and in war to protect involved against

widespread long term and severe damage the united states although it is accepted almost all of the provisions protocol one has taken exception to that. from.

welcome back to cross talk our people were discussing the fate of capitalism in the age of globalization right shift gears 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 the mentality and we mix it in with election cycles here too you know where it will be election cycle going on in the united states nobody wants to touch these entitlements are 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 power 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 kitchen as well provided in other words the state the state's role as a political community has a lot based community has 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 eight he's one of the course is one of the many causes of a looming 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 melissa if we look at the history of political economy this is a relatively new phenomenon and it came about after the second world war we before

that people didn't expect so much from the state you were lucky if you got basic education but nobody promised you would job nobody you. promising job opportunities it's gone too far but it's going into the election cycle know it but very few people a few mavericks can fight it and most people just go along to get along i think that's right but i would probably add this. to one chief of the the welfare states after the second world war was that it did provide universal standards or at the very least people were left say to die a horrible you know 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 that 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 it's the arrangements all the reciprocal arrangement among workers and then in fact were quite advanced things like friendly societies things like hospices they were actually all community based

or based on professional association or guilds essentially and if we not privatized welfare but turn into something community based user base that people can participate in the services that they receive then i think we're doing the right thing as you know will either not looking at the state or not leave you to decide to say you look at your model which still exists in front exactly you still have thousand pashto you think it could be linked to local governments it's not anti status it's just saying the central state doesn't know what we need local authorities might 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 moment you say i want to and 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 this is scientific right simply means we should all have it with the curious thing is that you need to update life

liberty and the pursuit of happiness because nobody says life liberty and the pursuit of education but actually if you look at what's happened as society has progressed the low. 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 school to produce the services to the basic ones basic infrastructure is needed in order that you can have those intellectual functioning the creative city has to be continually redesigned to be the locus the place where this sort of thing happens so actually you need this huge infrastructure investment and you need what i call social investment investment in civilization because it's going back to the role of the street right here in this is we're not really impede 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 big really needs a lot of repair you can do privatized that 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 are 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 cards how capitalism what we need to break is the illusion of the central state and big multinational corporations and essentially decentralized 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 it comes to economic decisions what i think we should it isn't a simple question is the b.b.c. a state institution it's a public. exactly that's sort of the state republican issuing star of the day ok but for the same you know whatever press one should rephrase yes the state has to come by but in

a diversity diverse one of the things we have to do is reinvent the state actually going to the public realm based on entitlement based on the fact that if the private investors are going something else that is publicly. council 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 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 has because it has to give the pretense of making promises and entitlements and a 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.