a five thirty pm moscow time these are the top stories on our team new york police get tough on thousands of occupy wall street activists furious their taxes are be used to prop up corporate america protesters have staged their biggest rally in three weeks after being joined by unions. a syrian woman seen as the symbol of the regime brutality against own people reappears alive and well after reportedly being beheaded is for several media interbank tracking after giving her supposing

death saturation coverage. and eurozone finance sheaves look to help out banks that may suffer a blow from greece's versioning debt crisis meanwhile in athens violent protesters opted against ever toughening austerity measures and now with american citizens increasingly seeing the power of the big banks have over them are to spotlight now looks at who's to blame for global instability which is again reaching critical levels.

oh yeah welcome to the spotlight they enter the show and i see another not today my guest on the program is william h. . markets are depressed by the fear of recession which put very weak and economists crowds of angry americans are protesting against the policies of the wall street sharks and while some economists are looking for a financial crisis there's others are digging deeper into the reasons of the fever so who is to blame and eventually what's there to do to get back on track to answer this eternal rushnell question his political analyst and author of a book called. well you ain't got. none should be economists see the reason of the current crisis is purely financial but really and also as the evil lies deeper he argues the global fiscal system based on the influence of the dollar is to blame on the dollar he says his power concentrated in the hands of

a tiny elite. this power is hard to overthrow because of taxes by america. and welcome to the show and to be here thank you thank you very much for being with us first of all the world financial center wall street is in the grips of mass protests which are called occupy wall street i mean this this is the motto of the protesters do you think the influence of. financial policy or american government can afford to target all of these problems so i don't think they'll influence the obama financial policy of the obama financial policy has been drafted by street wall. his cabinet is all those key financial advisors or handpicked you could buy citigroup or goldman sachs more so even than the bush administration so it's a wall street president so you can start to finish. after the collapse of the

soviet union which we both witnessed the us conservative strategists say they dreamed of the twenty first century being the century of american dominance of the american century but a your recent book is titled clouds of money wall street and the death of the american century so can we say that the dream didn't come true and it's not coming true well it's. the world is still out when i say the death of the american century i refer to the phrase used by henry luce in one nine hundred forty one. editorial and life magazine where he proclaimed the american century time hitler was proclaiming the german thousand year reich. we were a little bit more modest perhaps but the idea of this system that was set up in one hundred forty four with bretton woods i.m.f. the world bank and so forth as the projection of american power that is what began

to come to an end in two thousand and seven two thousand and eight with the financial crisis and you say in the book that we are in the midst of an apocalypse tectonic shift meaning the shift of power from from from the west to the east. am i right there are people right to interpret it as china do you mean china though i said this earlier today in a presentation at moscow state university the shift is toward the east but you raise it as a totality china alone is not capable of being a counterweight to american superpower country many rivulets. russia alone is not capable certainly economically and otherwise. be. the way the combination of all your asian nations working in cooperation economically and otherwise is one possibility could it wasn't the e.u. including the e.u.

perhaps country by country i think that you as an entity is a dysfunctional and it country by country certainly germany italy perhaps france so it means the whole world against america is there watching ok well america's capability to preserve its leading role in the global economy has recently been questioned and one of the questioning was you know the media spotlight. generates a quarter of the world's g.d.p. and is home to was third of the world's millionaires how decades the united states has enjoyed the status of the largest economy in the world the image of the superpower has been marred by this year's drought ceiling crisis the danger of a technical default and the country's economy having been downgraded by a ratings agency meanwhile the world's manufacturer and the u.s. his biggest creditor continues. konami call their chain

a supervised chip pan to become the second largest economy this year and this chase in the us fast a few analysts predict a u. one could overtake the dollar as the principal reserve currency and china could become the world's largest economy with their cage others say it would take much longer while the u.s. criticizes china for keeping its currency artificially low to make its cheap goods more competitive in world markets the gene state control works in china's economy has been growing at nine percent a year and satisfied by the status of the world's manufacturing china has been developing its in the very difficult to build you throughout the last decade after it has already borne fruit. in a year when the u.s. has wound down its space shuttle fleet china has students first to research more into orbit and plans to eventually construct a fully fledged platform to launch has been described this chain as new milestone

on its road to what superpower status. our reporter seems to be more impressed by the chinese miracle than you are so there's it makes sense what well the chinese economy is a highly impressive thing i've been there five times in the last three years and traveled extensively across china it's astonishing what they've accomplished it's incapable of challenging the u.s. might well simply because its military capacity isn't capable of challenging the most might that's best to keep economically quite strong the vulnerability the achilles heel is the energy import dependency on oil and natural gas and that pat us knows why do you military capacity to challenge countries. canonically well because they're up against the superpower which is spending more on its annual military outlays than the next fifty two nations in the world combined and there's

a reason that all these american bases are being set up in afghanistan and iraq in countries or throughout the middle east. now and probably in little you're still here think that the transition power i think the power had from the united states to what we call the rest of the world has started how long will it take. no one can say whether the american elite will or will stop their denial of the last erosion of their power the british only it took them two world wars to admit it finally got to him i think fourteen and forty five zero is the first step to acceptance and i totally accept fairly soon because if it's bad for the united states and it's certainly bad for the rest of the world the policy of full spectrum dominance and. being the sole superpower it's just disproportionate but this shift of power well suppose it happens to be the shift of power to the east led by.

your asian and chinese economies doesn't mean there's that mean. threats to democracies worldwide because when we say democracy when people of the state say democracy they mean america and the anglo-saxon oriental countries. you know this word democracy is a word and so on or on very lightly by people governments. don't really have much concern for it. i think it's a loaded word i would rather. directed toward the concept of representative government was some kind of checks and balances on power and the influence of private lobby groups in the united states congress and in the election of presidents and such today that you can't speak of democracy you can speak of. such a concentration of private power that a president is walking essential for special interests. of the east done in the world at east and them in the world economy. would be less comfortable for

europeans for people used to the order that we have now i don't really i don't think you need less comfortable it could even be much more comfortable because. china india russia eastern europe and central asia will require the kinds of goodison manufacturing products that the european union countries especially in term of the steel manufacture united states doesn't manufacture anymore. we've outsourced everything over the past thirty years and now it's been manufactured in other questions we have been reading in the news that leaders are considering legislation that would that would threaten sanctions against china. at this. currency manipulations do you think this is a measure that may help revive us me that. you know the the u.s. economy is a basket case economy right now the official government data that's released every

three months by the labor department the commerce department has been faked essentially so systematically and so long that the real economy is running at a level of best estimates of an economist friends of mine amounted to this of twenty two twenty three percent of the employable labor force twenty three percent unemployment is as levels of the great depression of the thirty's so so. the the language x. of sanctions. he isn't isn't a language understood by countries like china here nor saber rattling but by washington and they're dependent on china buying. more than two trillion dollars of u.s. government. debt situation of the federal government this is different from the great depression because today the debt of the federal government is simply growing exponentially it's out of control this is the this is what makes me wonder by the

way u.s. and chinese economies i was so interdependent they have become so interdependent over the last decades so how can they fight at all i mean they should be best for all the chinese i think are proceeding extremely cautiously they're not dumping their treasuries but what they are doing is no versifying we're focusing more on the regional asian markets currency stability with between its major asian trading partners i think we showing our cooperation organization a c.e.o. with russia as a keep member of that is going to become more important in the future for china as a diversified their markets also in the last three years the chinese are go on more and more toward the european market and less. the u.s. says williams and our political analyst and author of. the spotlight will be shook me right off the streets stay with.

wealthy british style. sometimes like. market finance. come to. find out what's really happening to the global economy which might stronger the no holds barred look of the global financial headlines tune into cars report. on. a very warm welcome to you this is your news today protesters on wall street since

they have. a. decent chance a good chance to choose says it's a good move for exactly the status of the human experiments good. businessman music awards expose the beazley twice since the company and its on change things as finance attempts. to meet a no confidence in song kids and. wants to be seen trade imbalances with looks peevish and close to collapsing a subprime loan foreclosed homes. to bail circulate banks again feel like the getting us crash smashed seeing. just like the flood. in absence three. months maybe i'm just commenting. that some economists. of. the book the

butler. welcome back to the spotlight. just a reminder that my guest on the show today is william came down political analyst and author of a book called gobs of money. you mentioned just a couple of minutes ago the first part of this interview the united states keeping the you are pretty low to make this price competitive do you think that a u.s. as one of the measures may make the dollar to make its products more competitive because some people say it may be it may be a measure the other say never of the dollar if you look at it over the last several years has devalued quite dramatically. and what they're trying to do i think in washington is do is slow motion devaluation to make the repayments of american foreign capitals like trying over japan to make it much more palatable for the us.

but the problem is a lower dollar for american exports nobody wants to buy detroit automobiles anymore if they're german or even chinese cars are a better manufacturer than the american car america doesn't produce things that the world wants to buy anybody they've outsourced that they've done that they've left the by and large left industry behind me the silicon valley is an exception hollywood hollywood is here hollywood has a huge x. factor that has a lincoln exportable that many hollywood films ok now but. you see the process is the devaluing of dollars going on and it's done purposely said slowly what can it mean for the future of the dollar as the world's. reserve currency well this i think is the background to the situation between the euro the dollar in the last

two and a half years the in my view the greek crisis was. a ticking time bomb that was detonated. at the time the chinese government spoke of diversifying out of the dollar into the euro the euro right now is the only potential contender for reserve currency status for the u.s. to the u.s. dollar and where that to happen that the u.s. loses reserve currency status that would mean that the u.s. would lose one of the major pillars of wall street financial power worldwide and they would you leverage here are the major levers and also they wouldn't be able to finance their wars given the budget deficit so running. ironically the chinese with their investment in u.s. treasury debt and the japanese are financing wars against chinese national interests in afghanistan and iraq and now in libya so it's a very very diabolical situation with austria and the treasury of manufacturers if

they lose that they lose a huge one of the two major pillars of american post-war panel when you mentioned challenges the u.s. will dominance you said it may be china only together with other countries and together with russia when you mentioned i mean you mentioned that there that china is very. honest. and. natural gas from russia so do you mean that in this new construction this new world situation russia will still be. a raw material producer and provide either for europe for china for whoever rules the world well i think for the near term there's nothing wrong with that and that's a very constructive thing that russia can use and the putin diplomacy in the past decade has used that quite skillfully to build economic bridges to germany and other european countries and it was sensible for russia i think russia has

something far greater to export once once its infrastructure is up to western european style. and it's real and. other infrastructure and that is the export of its intellectual powers and it has intellectual capital that's barely been tapped on the and in the world in terms of science and engineering capabilities of its education system that is above world class that is beyond what american universities are turning up but many people with many critics inside inside russia say that russia's intellectual powers is. russian but a heritage we got from the soviet union i think it was further back from a i think the heritage goes back to the german classical education system of the nineteenth century in the late nineteenth century which was very much a model that was used in czarist russia so they've held on to it and during the soviet era. i know from russian friends of mine who are academics so that was the

one area where you could excel is an academically and not in a in a moneyed way the american system you excel in money and that defines your value but i prefer the russian system frankly. you see the revolutions in north africa in your book as i quote careful strategy of controlling one of china's most strategically important oil and raw material sources and you just here you just said mention an interesting thing that china has actually been financing this thing but this sounds like another conspiracy theory is it possible to control such massive protests that we've been seeing of. the arab spring it's well documented that this was coordinated and organized by human rights n.g.o.s that are working very closely with the u.s. state department hillary clinton clinton hosted some of the leaders of the egyptian . protest movement really put her folk and so forth they were trained by old poor

which is financed by the us a story in belgrade and then sent back to egypt. these are the countries and the case of libya it was a pure military operation. u.s. intelligence pumped arms with the help of the french in into the eastern opposition the so-called transitional national council the french brought them up to paris and offer them huge deal on the on the oil revenues if they work with the french so it was just across intervention from outside a lot of the youthful protesters may have been naive enough to think that this was real democracy that they were risking their lives for what it was so you know manipulated things you know egypt is a good example nothing actually happened in the future just a group of generals moved higher and then the other group move lower and some of the flee the country but nothing changed. ok now. you

mentioned the problems in the in europe you mentioned the european. actually being an entity these problems inherent problems with the euro as a as a means of paying currency do you think it's also because piracy is also also a result of the u.s. against the euro what with what i think they want to fight sure i think there's a huge tug of war going on behind the scenes it's not a conspiracy theory it's actual coordinated action between the federal reserve credit rating agencies moody's tattered and poor's the treasury treasury secretary tim geithner was very close to wall street. and they were the ones who in two thousand and two actually showed the previous greek government how to hide their actual death in order to get into the euro and have a bonanza in terms of your euro membership for greece and the greek economy. and they were the ones who pulled the plug on greece under the looking at office just

at the time the dollar was under threat. the rating agencies downgraded the debt standard and poor's on the day that the european. union heads of state agreed in principle to the greek bailout they downgraded greece three notches which is unprecedented for a sovereign. down to a level of junk and that meant that all pension funds around the world had to dump greek government sovereign debt immediately by you know by rules and regulations and that triggered the crisis into a whole new dimension so just as a crisis was nearing a solution. but rating agency stepped in people who are conservative bankers who never think in terms of conspiracy told me. in europe that this if there ever was before they didn't have any doubt it's interesting interview we having here. as

you're answering my question i think about what you said previously again coming here when you quote since i doubt about china financing work against itself well we remember that i war against afghanistan it was actually the beginning of the end of the british empire. it was the beginning of the end of the rise of soviet empire no america recently said we'll be there until victory so do you think this may be the beginning of the end do you think the american budget will withstand this war for a long time. well china i can tell you realizes that the presence in afghanistan has nothing to do with combating the taliban or certainly not with al-qaeda which some u.s. military officials question whether it even exists anymore. so the question is what does it have to do and my view it has to do with a permanent us military base in directed two major powers potential opponents one is china and the other is russia and for the first time the pentagon is able to

position itself directly in the heart of central. against those two potential opponents in the future so i think that's where we're going out and a victory is possible i think not actually. do you welcome china's china's intention to bail out the e.u. you have a problem economies. i think the chinese are talking about helping some of the e.u. basket case economies like greece and portugal but how far they're willing to go and on what terms i think the chinese are very shrewd gardeners when it comes to that and it remains to be seen how far that what what about africa do you think the africans will welcome china replacing the anglo saxons as the patrons of the continent up until now it's been mixed but the chinese have done one thing that's extremely clever in terms of their african diplomacy since about two thousand and

four two thousand and six and that is they've come in they've ignored the international monetary fund they've come in with soft loans they've built schools hospitals highways dams and so forth across africa and they said our interest is quite simple we want long term secure raw materials oil gas minerals and the africans are quite happy to have that kind of arrangement the american approach was similar to the british kind of colonial looting of africa which the africans and certainly were not wanted to continue so this offers an entire new kind of economic diplomacy for africa thank you thank you very much for being with us and just a reminder that my guest on the show today was william and political analyst and author of a book called gods of money that's worth an hour from all of us here if you want to have yourself spotlight grab someone in mind who you think i mean in my next show. spotlight will be back with more face time comment on the what's going on outside

russia until then stay on r.t. and take care. thank you.

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