markets tank around the world today three years since the worst stansell crisis since the great depression is history repeating itself. this is really kind of a bull bit where you might look back and say this is a chance where merging markets finally got their opportunity to become much bigger players and much bigger powers around the world and with that brick by brick five countries step up saying they're ready to help the i.m.f. fight global right so what will their voices mean. racism is on fortunately we regrettably still a lot of them are still about about it so why then is the u.s. boycotting a conference at the u.n.

combat in this issue. it's thursday september twenty second eight pm here in washington d.c. i'm lauren lyster you're watching our t.v. well it was a tough day for markets around the world they basically taint article a to let me and august impact was the worst it's been since spring of two thousand and nine three years after the worst financial crisis since the great depression could it be that history is repeating itself for more than nature coffee and us is here with us the natural journalist and archie contributor i mean i don't i'm doing ok lucky for me i'm not a big investor i don't lose a lot of money today but i have a feeling a lot of people did markets tanked this happened just after the federal reserve announced operation twist yesterday. in action and i actually think it's funny because the markets tanked right after the fed can i was in this announcement that

was supposed to help markets rebound i think in fact it was counterintuitive i think what happened was the markets were going to tank regardless of what the fed came out with because the federal reserve announcement just reminded markets that central banks can. do anything they're out of bullets in my opinion and i think that the fed's q.e. to that not cute i'm sorry it's isn't even a q e this twisting of the curve hasn't really been explained to the markets as to how it's going to help investors how it's going to help banks in fact it eats into the bank's profit margins because it's lowering to yield on long term debt and it's increasing in the short term so are you saying that the that is out of bullets or that the market just expected the fed to do more i think that the fed is out of bullets i don't believe that the fed has the ability that the central banks have the ability to stem what appears to be more and more a systemic bank crisis and i think that that's the real concern that the markets are trading right now that's what they're feeling their concern specifically about europe but this is a global banking crisis because you have debt buildup in the united states you've

had a buildup in the e.u. and also in asia china is in a huge bubble and investors like jim chanos of cynical investors of can it wasn't lessers and short china a lot of other people are you're not hearing people be worried about a chinese banking crisis you hear concerns about a european banking crisis and what impact that could be on the u.s. right because the chinese banking sector is part in part it's part and connected with the chinese government so better no it isn't the u.s. is baking right at the moment of the exactly the more you you combine the two the more you hide mal investment and you hide under performing or non-performing assets so the chinese bank sector is having a lot of bad loans who knows how much this is a point i made before in the late in hundreds in the united states you had a huge industrial boom if you had that in in in china if you had that kind of boom which you had right i'm sorry in the u.s. if you had that boom with a huge expansion of credit i think had in china right. and an export led growth

like you had in china on that level you have railroad tracks crisscrossing every single inch of real estate in the united states so we don't know exactly how much malinvestment china has hidden on its books. we don't know how much malinvestment is on us and european bank stocks i mean we just saw french banks downgraded because of their exposure to greek debt we don't know if greece is going to default we thought to major banks downgraded now today we saw zero hedge post morgan stanley's thank you showing that their exposure to french banks is sixty percent more than their market cap sixty percent more than the company's value so what happens to us banks that french banks go down all right well i mean you make a good point again and that's the that's the debt so the leverage in the european banking system is what's concerning people as far as morgan stanley is concerned and as far as u.s. banks are concerned there are protests around the hook through c.d.'s or other exposure there is a concern because the amount of leverage in europe the amount of leverage in the

united states is still high enough that there's so much debt in the system that hasn't been liquidated that if there is to be some sort of crisis in europe it could feed into the u.s. at the same time that could also cause capital flight from european banks in the u.s. banks that are deemed to be safe but the takeaway is during a banking crisis what happens is that the institutions that are deemed to be the most safe see capital flight come forward that they become much stronger and the rest of the economy begins to collapse and something the nation so great that down in english who wins or loses well it's not clear who wins and who loses but you have when you have a banking system that's over leveraged it potentially can cause a pancake effect which would what is that mean what is the panicky think if it would basically mean that you have this giant vacuum so in an economy the amount of capital is the base and the amount of credit the top of the credit is the top of the vacuum represents the amount of the economy or the financial system can collapse and because credit market for example united states is still higher than it was before the great depression its collapse a little bit but nothing in comparison to where it was in in one thousand and nine

we still have a huge amount of leverage in the system and that's the real concern that's why markets are prone to panic that's what people are concerned about b.m.p. they're concerned about. in brussels they're concerned about swiss banks because they don't know ultimately what the exposure is on their balance sheets even the banks have proven in two thousand and eight that they didn't know so basically are you saying that everybody is worried about when all of this debt is going to explode or employed or cause the banking system to collapse and that we're saying what i'm saying is that we're. in a balance sheet recession or depression that's what we're facing similarly for what your plan was facing in the ninety's except there are much less people that are a lost generation right last decade last decade but in japan they didn't have the funding problems that sovereigns face today in japan the at that time it was the private sector was over leveraged but there were all these nation states with credit ratings were in doubt and also you don't have

a bull market in precious metals as you do today so people have other places to hide their money and they they don't necessarily put into sovereign countries so they're so are you saying the u.s. is worse than japan during the last decade and the ninety's oh yeah it's worse and it's not just the united states it's a global phenomenon now because you've had every time every time we had a recession economists and central bankers and everyone else met the depression or the recession by easing interest rates by doing counter-cyclical policies and now interest rates are already so low what else can be exactly so so low of us to talk about the liquidity trap point is each time they had a recession they eased money they eased money and it caused a build up of that and now we're at a point where the fed is has shot all its bullets the only think it left it was just monetize the money all right and eventually they will do that but in order for that to happen you're going to see a real collapse of the economy and economic activity and the banks first most are going to see every interview i've had today everything ends with a collapse in the economy is what it needs to happen in order for things to get

better and to shake out as they should according to everyone i've interviewed and that's unfortunate and that is what to me check a phoenix financial journalist an arche contributor believes as well now just by. all of this turmoil that we just went through with the banks with the markets today not to mention unemployment in this country nine percent for two years the u.s. is growth expected to be much less than expected i.m.f. cut growth estimates just earlier this week despite all of this the rich are getting richer forbes is just come out with this richest americans list just to name a few bill gates warren buffett bill ellison of oracle. the koch brothers that's charles koch and then his brother david koch now the interesting thing is that oh and there's george soros number seven the interesting thing is all of these guys have seen their net worth except for warren buffett you lost a few billion all rest of them have seen their net worth increase kind of a quite a bit by billions of dollars compared to last year how is this happening earlier i

spoke to carolyn hellbent professor of politics at occidental college and i also asked her because it's not just these richest guys it's just executive pay but when you look at a usa today analysis for example executive pay in two thousand and ten the median pay was twenty seven percent higher than the prior year so with that and these rich richest people in the world i asked how it's possible for them to be raking in all this dough which is that. well this is happening because we have a jobless recovery where corporations are making historic profits in most industries so of course the people who had up corporations are going to be making a bigger salary as well as major investors and corporations we see taking advantage of the economic downturn and doing what any reasonable rational profit seeking corporation should be doing which is maximizing profit unfortunately there maximizing profit by not hiring by having existing workers work longer hours for

fewer benefits and stagnant pay so they're really balancing these profits on the backs of every day average americans who again are working longer hours and getting compensated for it less but i think it's important to keep in mind this is part of a larger trend so since one thousand eight hundred sixty four percent of the growth of wealth in our country has gone to the top ten percent and in that same period of time for working americans our wages have gone up eleven percent all our cost of living has gone up one hundred fifty percent which is why we have the biggest gap between rich and poor that we've had in the history of our nation it rivals what happened when manufacturing first emerged so this is an issue of social justice especially when you have so many americans who are living hand to mouth or not not making it because they don't have a job or you say it's an issue of social justice i want to look at just even more recently you mentioned corporations and c.e.o.'s when you look at c.e.o. executive pay just to give everything figure in two thousand and ten you saw those

figures going by how much is it twenty seven percent was the jump in at median c.e.o. pay according to usa today analysis now at the same time you also have interestingly defenses showing if we could bring that up that four of the top five richest counties in the country and there they are viewers can see it are in the d.c. the area just right around the nation's capital i'm curious caroline if you see any connection. well absolutely it's the stimulus package so president obama comes into office and ends up passing a stimulus package that primarily or disproportionately benefits people who are going to have stake in major corporations so whether it's defense or other construction contracts we're talking about very lucrative contracts going to firms and the c.e.o.'s in the d.c. area it's crony capitalism we saw under george w.

bush and you know post katrina we saw it in iraq we see it with defense contracting all the time and the stimulus plan was a big boon for this type of cronyism if you will and we know that you know corporations for every one dollar spent in public for for representing the public when it comes to lobbying in washington d.c. three hundred dollars is spent by corporations so again it's no surprise we have this system where corporations have it rigged so that they can get the teat of government if you will and get most of the milk that's how our system is set up so it's not surprising that president obama hasn't been able to shift this despite his rhetoric during the two thousand and eight election that he would shift as caroline held in a professor of politics at occidental college now has developed nation struggle with debt and a eurozone crisis is probably the culmination of that we're seeing the major emerging nations today brazil russia india china and south africa together they're known as the bricks in an ironic twist they talked about coming to the rescue of

the euro zone the brics said they're considering giving money to the international monetary fund to help european countries in crisis finance ministers of the brics nations met in washington today as i.m.f. meetings are underway and artie's live ball was there and she looked at what this could all mean for the brics. less than a decade ago clear economic world powers she was building is still growing. economy. continue to rule over the coming year but today signs the power scale is tipping toward the brics that is brazil russia india china and south africa the remarkable aspect of this is that these were of course former colonies of the european nations are now stepping up and saying we may be able to help bail out the colonizers not sue long ago last year that the united states and the g seven led the world economy but with the value of the dollars china trillions of our debt and

a stubborn global recession countries want to. be coming to their rescue it's a concept economists even today find absurd why would the. middle income countries. pretty poor actually. come to rescue some of the richest countries in the world bric finance ministers came together today for a meeting at the international monetary fund on the agenda rescuing the eurozone we are in a position to establish greater solidarity amongst ourselves we decided therefore to step up garrity among breaks russia's deputy finance minister says the countries haven't yet committed to bailing out the eurozone by buying euro bonds. we're supposed to discuss. already what we're going to do is to work through armor

. we must have a greater integration amongst ourselves the brics does this union signify the rise of emerging economies and the demise of the us and europe this is really kind of a moment where you might look back and say this is the chance where merging markets finally got their opportunity to become much bigger players and much bigger powers around the world. perhaps the magnitude of brics power can be seen and their numbers the four countries account for forty percent of the world's population and more than a quarter of the planet's land and the recently released report estimates that combined ranks g.d.p. will surpass that of the united states and two thousand and fifteen and while the emerging economies are growing the u.s. and the eurozone are shrinking they're making a mess and the mess is spreading to the world economy and so they think it will

help you clean up your mess and while some question the feasibility of the group rescuing the euro zone the brics once considered the economic underdogs seems to be gaining respects on the world stage from washington liz wahl r.t. to talk more about what this could mean politically for the brics i spoke with asia times correspondent have a escobar to stop and start things off i asked them why the brics would even want to help bail out bigger us i don't know it's no more complicated than that last week the brazilian finance minister did a month ago he launched that bomb shell we're going to discuss today in washington how we're going to help european solve the situation but the fact what the brics want is more participation at the i.m.f. . so numbers are essential europe is still the largest economy in the world around twenty four percent of g.d.p. in the brics they are twenty one percent and reiss. but in terms of the i.m.f.

close to brics have eleven percent in western europe have sturdy supersets so if europe once some help from the i.m.f. and if the brics have a more say and larger quotas out at the i.m.f. you we can see for instance china brazil or india putting more money in the i.m.f. they are more stakeholders at the i.m.f. and then this is the m.f. distribute this this money to european countries but this is not going to happen so more or even maxed year hard i mean it's been a western dominated institution however that's a conception so why would the bracks and want to work through the i.m.f. an order to get more authority within the institution as opposed to just going around it no because that's the problem the way the breath of law it's the system is still in place there's no other replacements there's no plan b.

in terms of economic help and that leads us to the second bric strategy which is they want a reform of the whole world financial infrastructure and that means among other scenes a freer climate for investment china they want to invest in the u.s. they can't first of all because of american protection is one second because the republican party would start calling for a need or strikes on china the next morning but last week in fact or two weeks ago i'm sorry but the world economic forum billion in china top adviser to the chinese central bank he spelled out what the chinese was he said on the record we want to buy shares in intel glory and apple. so key message is happening united states and the chinese i remember when that to buy wanted to buy a few american ports three four years ago so it's out of the question brazil from

europe brazil wants to explore snorkel on it is to europe. it's impossible because the european union's extrude protection is they you know pals in european union believe better than most of the south america and africa and asia so if you thought if the whole system doesn't change is too coarse will even if you try to help in fact that china has been buying urals for years that they are diversifying their they do like. three point two three million dollars so now they have eight hundred billion in europe but still is not enough for europe brazil is also diversify its reserves as well so if you want your rules blown so that's where i happen suppose if greece defaults then you can make a profit well that's one thing i wanted to ask you a these countries the brics fire out of a six seven rank very high in terms of having the most foreign reserves of nations on the globe so certainly they have cash but you're saying something that one of my

earlier guest pointed to a great is the return on the investment for there might not be any return on investment would that be imply that it would be the price they are willing to pay to have more political influence with the i.m.f. . you know out let's let's wait for a few weeks because one of the key problems that european prize there's no political will you don't expect such causey's cameron noriko or global that really is going to sort of disclose its impossible do you only this is what have we discussed it with a european context your only solution will be. less national egoless from specially the north and european countries and a real or a p and central bank in a real in rupee and financial system worked at best of each country would be an european that is so all busily you would have

a central bank that will help the periphery like that be the so-called big strike but this is not what's happening now they have time correspondent have to ask are and also on the world stage today. the sixty sixth annual united nations general assembly continues and the durban three is an anti-racism conference going on at the un but what race issues is the u.s. struggling with at home paul it has boycotted this conference are his anesthetic turkana look at that. a big fat no to an anti-racism meet up at the u.n. from the us and some of its friends with benefits they want to protect each other the united states because of its original sin genocide against americans and slavery and the europeans because of their own going.

to africa and asia which is original sin all there is to it more skeletons in the closet maybe to blame for america's refusal to participate in the durban three conference big tent racism or hatred for jim crow type of racism it's very much racism and racism is unfortunately regrettably still alive in america there's no doubt about it segregation between black and white is long over happy spectacle staticky admission but after and not for people in neighborhoods like this one i definitely believe racism is alive and kicking racism is is a situation where. one individual or group of people make decisions to control the destiny of another group of people based on their race to check a member i try to spread the word because merchandize we live in a capitalist system all right now in order for capitalism the function you have to

have haves and you have to have have nots right so thieves that the have nots in a capitalist system operate dominantly black one in six americans live below the poverty line for african-americans and latinos it's one in four black employment is twice that of the white population over sixteen and how percent a white job applicants eight prison background that is right. and it's more likely to get a callback for which there are then eight black applicants less no prison record. whatsoever to sit back start from early on write write a blank look at the future of black children in her earliest play if you look at the achievement gap and a number of black children graduating from high school going on to college compared to those of bright children. it's very despairing. the dark chapter of slavery has

closed the u.s. now have the first black president in its history and the present remains disturbing look at what we have inside the united states we have young african black and brown. community colonial. history and an obsessive kind of fifty shots sixty sets laying on our stomach in our back even in terms of. the racial disparity in capital sentencing you know there's so much so many more black men on death row only twelve point six percent of the general population. blacks make up nearly half of the prison population in america the way that works out globally is that nearly one out of every eight prison inmates. is an african american is not prima facia evidence of the. problem in the united states i don't know what. percent in some cases what lands

them in jail is f.b.i. entrapment the nephew of elisa mcwilliams is serving twenty five years behind bars he wouldn't be she says were he not lured in by official provocateur or looking at what our government be doing no one was you know look at what this. is doing you know and they want to justify. is that pisses me off or honestly the incarceration pandemic has ripple effects many states than excellence from voting sometimes for life to the one point four million were thirteen percent of black men can't vote because of the laws what if it were in a white women with red hair. you know what if it were jewish. it's an astonishing kind of. gulag gulag there discussed once their history the us is apparently not prepared to admit to today's truth here america

wants to put out its face there to disguise that they're all this benevolent is going on here and we take care of our people here when in actuality they don't out of sight out of mind as an approach to get what seems to be taking when it comes to racism or who are sending an anti resubmitting would be the simplest way to begin taking action but with domestic details too embarrassed to reveal america's true thing to turn a blind eye instead of the future can our hearts. now as us also treat iran like enemy number one at the un with protests on the streets the u.s. delegation walking out of the president's speech and it is that they're looking to iran as a savior arcade kalen for explains. this is the mississippi delta. sylvester hoover has run the only remaining grocery store here for decades right here the baptists are. the lowest in call in

the whole united states and most people right here can afford to go to the doctor and they're here to get better. as work dried up on cotton plantations in factories and employment steadily rose to ninety percent here poverty toes a color line the ghouls into the. wheel of fortune the table don't. just sixteen percent of whites live in poverty compared to fifty percent of blacks but with a we always. surviving. and we will be ok. larry smith works at the hospital told the people they go to the hospital when they get. you know when

a. president hears c.b.c. family and neighbors die young is bringing or and some people are falling. because they are not treating their diabetes or high blood pressure many of the result of obesity says clifton williams who runs this clinic because the fact is state of the nation. why we have certain of these problem i really don't necessarily know they are number of factors but not everyone can afford the ten dollars williams clinic charges which is why act as town is looking to an unlikely source word here to its health problems community clinics inspired by iran and advocates say these health houses are most needed here in mississippi which has the highest levels of childhood obesity hypertension and diabetes in the united states twenty percent of people here don't have health insurance. called health houses the seventeen thousand clinics in iran cover ninety percent of the rural population and

have cut child mortality rates by sixty nine percent after visiting iran pediatrician aaron surely has led the movement to bring health houses to mississippi and staff them with welfare recipients. also. proving that you know coming surely in dr mohamed shirazi who came to the delta from iran decades ago tells the savings mississippi spends an average of fifty thousand dollars per patient per year in iran only if out. iran has seen greater health improvements if you notice social justice because of wear you out if you're going to have a human being so suffering in mississippi is the same as people are suffering in villages in iran therefore that social concept and working together in order to redress that but not everyone has embraced their plan we have a girl from the who had declared our run of the greatest threat to national security so he's speaking you know people listen to the road rather than some mississippi.