heidi in the interests of the masses of workers in american around the world our prognosis is this is going to be a year of how will social struggles which american workers take forward far beyond the occupy wall street protests protests and take part in the struggle of the working class which is taking place around the world it of even goes a long thirty seconds per thanks for your thoughts to know what rights are for a world socialist website thanks for being on the line from detroit there thank you . coming up on this channel r.t. from moscow keeping the business world's top tier ticking along the world's economic elites to tackle the euro and the recession and make some profit along the way was those worst hit by the financial troubles for the cell phone log as we report. next though he's exposed some of the world's darkest secrets and soon you'll get the chance to find out even more when the world's most famous whistleblower launches a talk show here on r.t.

during the songes exclusive series will premiere here in march and the world's media is already abuzz about who the wiki leaks founder said to interview our london correspondent laura smith has the details. basically we knew that i thought wanted to wanted to write and host his own interview show and we made it happen the show's going to be broadcast on t.v. it's going to focus of course on us ologies favorite topic control fifty two thousand and eleven was a solid as his name became one of the most famous in the world and indeed became a byword for for explosive control to see when he released the biggest ever set of us the script documents by his web site wiki leaks he's going to be interviewing a series of what he called iconoclasts visionaries and power inside a he's going to talk about how to shape the vision of a brighter and better tomorrow that as i say is going to be focused on r.t. and we are hoping that it will be as explosive as the release of those documents

was via wiki leaks we can't see any reason why it wouldn't be hundreds of articles from all around the world local newspapers international newspapers everybody seems to be talking about this cause to twitter there is a light with rumors about the show. about who might be interviewed by julian assange and of course he is a massive name but that's not the only reason why this will be fascinating it's going to be filmed where assault has been subject to strict bail conditions things like signing in to the police station every day being essentially under house arrest under the spell conditions for the last four hundred fourteen days even though no charges have been filed the first episode is also going to be shot a week before his supremes court hearing to fight against his actual decision to sweden for questioning on a leg sexual assault charges so as i say no use of rumors about what's going to go on he says going to be a new type of television of course he's no stranger to being on the other side of

the interview is table i've interviewed him myself but if you want to find out exactly what's going on you're going to have to stay here on r.t. while it's a sealed stay for all the details and the guests we can't reveal at the moment that the secret but we will be having exclusive trailers and previews here on r.t. so watch this space. but of smith the u.s. is tightening the noose around net freedom but america's former spy chief come clean about cyber snooping and even digital attacks on other countries reporting on via bit later and also online at r.t. dot com big business gets one over on the politicians as around sanctions do little to stop western all giants trading with just a few of our stories on our web sites now you may be interested in. next though as the world's top brass in the world of business descend on switzerland the road to save the financial system to stem the crisis and of course seal a few lucrative deals as well it would be doubles without it the world economic

forum is kicked off by the leader of the european powerhouse germany who once again pledged support for united europe very nice to us with the list as it was good to see you how do the movers and shakers of business and politics see the walls economy going for them this year what is your rapport. well i think you have to look no further kevin then who opened up the opening remarks on this day one of davos angela merkel talking about the eurozone crisis trying to convince this room of some of the most financial elite that she's got it under control that pretty much sums it up she took a real defensive you know let me tell you she said i realize that we're labeled as the headache for the global economy but you know i think there are more headaches to really this was to you could also see it is kind of merkel versus the bond market she was really trying to reassure markets saying if you want to attack us just know that we are promising to solve this crisis of course this is a time where we've seen euro zone bond auctions be a daily news item did europe sell enough has italy seen those unsustainable yields

of seven percent have they seen him spike is greece going to get a deal with its bondholders in order to avert the disaster of a disorderly default so these are this is all the subtext where this speech is coming from and then she gets up there to say you know fiscal solidarity integration is the solution we're promising that even if we don't promise more bailout money or more central bank action which so many of the investment community seem to be pushing for we're trying to substitute that with this fiscal pact and a fiscal union to solve this crisis she also urged patience saying this is going to take a while but i think you know as you can see with everybody so concerned over the eurozone debt crisis patience maybe for some is where the lord nor everyone go to hear what was being served some people. quite literally. yeah and you know occupy davos is here of course in a year where we've seen occupy protests all over the world it's fitting that there

would be one at the world economic forum davos style of course there an igloo but we've seen them have some actions protests they have them planned all week and that is their concern not being part of the conversation it's interesting because at the end of merkel's remarks she said you know the importance of davos too is to hear the input from the financial leaders and from the people that are there for politicians who don't go back and make policy so i think that kind of plays to the concerns that people have a bounce off those which is that these are the world's elite that are networking and talking about these issues these problems trying to claim that they're going to be able to solve them without the voices in the employ of the rest of the world that there aren't the global elites so those are the concerns of occupy davos i went down and i spoke to them then and there are many of the same concerns that we hear in the news about the debt crisis all the time they're valid very well informed they're concerned about debt they're concerned about the current currency system that we're living in and these are all of the issues that they have they

don't think that it's fair that they should be decided or discussed solving them without the input of some of the people that they in fact. put it away frankly i want to report some other than me to laura list of things very much for just a little our audience as well the movie for sure tucker in the u.s. economy and politics show capital account on air on this channel in five minutes time some of the we're now up to twenty five minutes past the. full of money in his money to drink trees with the latest business for you. there frankly kevin thank you so much not a muslim is in the short supply in this was turn of devils though it's the fate of the euro that's weighing heavy on stone minds that the coming form the main theme may be how to create a very world before many in the more pressing question is how to fix this one and

finance it george soros believes european policymakers are not helping it is germany that dictate european policy because at times of crisis the creditors are in to throw a seat the travel is that the austerity that germany wants to impose real a push europe into a deflationary that spiral of economic deterioration and process a process of political and social disintegration real mutually reinforce each other. well those sentiments have found an echo in russia's top banker the head of the bank herman graff believes european policymakers should not focus on keeping all current members in the single currency regime go through. the euro will have a say i think the situation would be improved if several countries left the single

currency this is a key year for the eurozone in terms of making decisions and understanding the new reality separately i hope economic relations between russia and the e.u. become more closely integrated i think the current difficult situation in europe will encourage it to explore the growth potential we are merging markets like russia other former soviet states and turkey. has made to the markets quickly tug of war on the oil market australia said it will join europe in boycotting iranian oil while iran says it may hold supplies to europe ahead of the embargo imposed on the country therefore we are seeing prices pretty much where they were yesterday evening in the u.s. markets also mixed in trading as a pending home sales came in with decline from nineteen month high nasdaq is propelled by apple shares there are more than six percent in europe stocks were trading in negative territory at the close are driven down by pharmaceuticals and

telecommunications company shares of ericsson tumbled fourteen percent of one point as the firm reported sixty five percent profit decline in the fourth quarter and i will take a look at russia where it's all rosy at the close the r.t.s. up more than one percent of my six point seven percent are driven by banks and here's the proof burbank are gaining two point three percent b. to be three point three percent among energy shares lukoil was losing out continuing its decline from the previous sessions down one two percent. and the ruble as said new highs for twenty twelve against the dollar and the euro and my six trading in the critically squeezing the russian banking sector driven by tax payments and a firm of well price have been supporting the currency the euro is down versus the dollar the european central bank was said to be opposed to restructuring it's a greek it's the headlines are next r.t. to stay with us.

we have seen the damage it has done to our environment mark chemicals what we do not want anymore in. our core system is just there was a does more experience and i'm just just appalled but that's allowed to go on. eating this unfortunately because we don't know what's in it there's no labeling there for it being used like the board to experiment to be used as guinea pigs.

we have more questions than we have answers guards. like. you watching t.v. international from moscow and all the top stories for you tens of thousands of egyptians of tahrir square the years since the uprising that toppled president mubarak's thirty years but it's frustration along with celebration because of drug reform. president obama kicks off his campaign to stay in the white house using the state of the union address to pledge saving the economy. he stressed his successes and promises millions of new jobs but critics say he's upbeat tone doesn't reflect

reality. the world's top whistle blowers to get others to spill the beans on t.v. is julian assange has his own interview show right here on this channel see the wiki leaks founder exposed some of the world's darkest secrets in his new series will premiere here in bondage. it's nine thirty one exactly moscow time coming up now laura liston show just talked about a couple of minutes ago called capital account filling you in what to expect from the world economic forum in davos. good afternoon and welcome to capital account the penis in washington d.c. filling in for laura lister who's in davos covering the world economic forum heads of state central bankers c.e.o.'s of multinational corporations and international financier's make up more than sixteen hundred of the business leaders now pouring in from all over the globe to this tiny ski resort town of davos the world economic

forum it's invite only high on the agenda is capitalism itself its problems and its future so what does this mean for the rest of us were there fill you in we'll hear from lauren who just checked in with us later in the show. and back in the u.s. the president's annual state of the union what really is the state of our union. and i must say to you. that the state of the union is not good. gerald ford delivered those famous words during a time of rising trade and budget deficits and expanding national debt and high unemployment america had already started down the road to empire long before that but almost forty years later what do we have to show for our next guest co-writer and coke and producer of award winning documentary io usa and best selling author of the two thousand and six empire of that the rise of the an epic financial crisis joined me earlier to discuss just that. and with the today f o m c meeting kicking

off this morning the only thing we've been promised is more transparency kind of interest rate forecasts of individual committee members will now be made public but considering that the fed has already committed to keeping rates near zero as far as the eye can see is this really a concession or just more helpless p.r. by a central bank that has reached the limits of one not so great moderation let's get today's capital account. yesterday i had the pleasure of traveling to the headquarters of a gore financial in baltimore and interviewing best selling author and publisher addison wiggin who along with bill bonner started one of the first online financial

news letters the daily reckoning back in one thousand nine hundred nine a very a veteran of alternative financial media and investing addison not only predicted the current bull market in gold over a decade ago but has also been writing about many of the perils associated with our collective addiction to debt and over consumption imperial expansion and the hollowing out of the american economy for even longer today i will be paying playing a small part of my hour long interview with him i started by address asking addison if he has been surprised at all by the federal reserve's inability to reinflate what he has dubbed the mother of all bubbles addison wiggin publisher of financial . to use the war metaphor because it seems so popular with with the media there is a war between deflation which is the natural de leveraging process that happens at the end of a credit bubble and inflation which is the natural result of trying to reinflate

the bubble and that's that's when we get the federal reserve. meeting minutes that's the debate that they're having they're trying to reinflate the bubble and then we're reassured by mr bernanke the fed governors that they'll be able to measure the moment at which they put on the pedal too much and the and inflation is going to take off and that's the debate. is going to meet this week and we're going to hear more about whether they think they're injecting enough money into the economy or not enough that's the way the system is regulated the danger is that we just enter into a period where people lose interest in the stock market entirely they don't consume as much they certainly don't produce as much as they used to and the entire economy just slows down and you have an extended period of slow growth and low employment and that's what we've been experiencing since two thousand and eight despite all the efforts with the quantitative easing and even purchasing of treasuries and

mortgage backed securities that the federal reserve has done and that period can go on for a long long time and if you're interested in growing your own wealth that's presents a significant challenge and the other thing that we've seen that makes it very difficult for people to understand these big macro trends in the economy is the debt crisis the sovereign debt crisis in europe the challenges that japan has had getting its economy back on track after two decades following their own credit bubble collapse is that the dollar and treasuries remain the reserve asset class whenever the debt crisis begins to spike again in when we hear greece or a couple weeks ago as in p. downgraded nine different. nine economy is in europe. people. treasuries i think as well because historically treasuries have been the safety

trade and the safest place to put your money gold has played a role certainly since one nine hundred ninety nine when we begin recommending it was two fifty three now it's hovering around sixteen hundred it has had a good run but in the financial markets the paper asset that is represented by the us treasury still maintains its flight to safety status and to my mind that just in bold ins. mr geithner and mr bernanke even more because they believe that that that status will be maintained regardless of what happens even if congress can't get its act together and balance the budget the the treasuries and the dollar have asserted themselves as specially you know i was especially shocked in september of two thousand and eight the dollar rallied twenty two percent right after lehman brothers declared bankruptcy in a very real way it reasserted itself as the trade went to some extent of course and

that's also there's a website effect because so much of it is the character that you've written about right many years right and that's that there is that that tension in the economy is something that's our daily bread because when i and i say when not if there is an alternative to the u.s. dollar i believe that people rush for the exits so how do you see that do you see that as something playing out in the near term how do you see that happening in terms of alternative because the one alternative to the u.s. dollar has been essentially precious metals or commodities basically people seem to play hot potato instead of thinking that maybe maybe towards the late ninety's people were thinking more how to make money a lot of people now worrying about how to avoid getting hit and i think it's a big paradigm shift at least among sophisticated as well it's a paradigm shift that we recognized throughout history in financial reckoning day we did a whole chapter on john law and the misuse scheme. will we see these big financial

bubbles in history and then on the down side during the collapse people are more concerned about preserving their capital than they are making money anymore and those periods last for a long period of time and we expect this one to last seven to ten years and we're only three years into it so there's a period of time where people become disgusted with stocks and they get worried more about the return of their capital than their return on capital. and then you have periods of time where treasuries actually go negative people are willing to lose money and give it to the government then put it in the stock market or invest in their own innovative enterprises and that's because the feeding on itself and people are trying to stay there for it because they still have bills to pay because still in the u.s. dollars to pay bills and pay bills and they just lose trust in the system so on the downside of a collapsing bubble you have a period of mistrust and it takes a long period of time before that trust can be reestablished and then people start

looking for alternatives that's the phase that we're in right now but if you look at countries like china russia brazil they're all holding in massive amounts of u.s. dollars and u.s. that china i mean japan india south korea these countries are all dependent on their their reserves their dollar based reserves. and they're fearful too so they're looking for alternatives they're trying to figure out ways to trade with one another using their own currencies we've had announcements from russia and china brazil trading in things like oil but settling those accounts in their own currencies rather than the dollar and every time a major announcement comes out. i remember specifically one time i was sitting in a hotel room in dubai and there was a headline story in dubai which is twelve are twelve hours ahead of the markets open in the us where there are. some finance ministers from saudi arabia

and the gulf six countries had gotten together and suggested that they might put together one currency back it partially buy gold and then begin selling oil in that in that new dinar i remember it was going to be in the dollar index before the open in new york got whacked for two points because the fear is that some kind of alternative to the u.s. dollar would get created and people would rush for the exits because all all of these reserves are being held in what. what most people recognize is a risky asset so what is preventing the diversification why wouldn't they just move away right now because there is no alternative right now and if you ask big money managers or people that are managing the reserves of the central banks they have no alternative they've been trying to accumulate gold we know that china is buying

gold and storing more of it but there's not enough. of an alternative. to move into that wouldn't also crash the dollar at this is it or is it fair to say that the people that investors are looking to take the lead looking for central banks to take the lead they're waiting to see what the people bank of china is going to do with their reserves what what global central banks that are trading partners with the u.s. would do because the reason i ask that is because it would seem to me that there are not written right in our place they've experienced help pump this bubble up so high this point that they depend on the consumer they can't afford their own goods so they have a political problem which is a plate is that's exactly right it's a political problem because. investors in banks around the world are dependent on a currency and a bond that unanimously people agree is unsustainable because of the

deficits that the u.s. government has been running and the you know the entitlement problems that we foresee but are unable to address addressed politically and also just the mounting interest that we need to pay on the the existing debt these are problems that have been politically impossible to even discuss and yet you have all these reserves around the world waiting to see what's going to happen and so it's pretty goes back to what we're saying which is that people are just waiting to see which way the wrecking ball is in the swing and they want to head out of the way so everyone's playing the same game and does that mean that eventually think at some point something completely unexpected will happen that it will that the deal leveraging will occur unexpectedly in some form or fashion that's what we're expecting will happen and is very difficult as you know to forecast when that is going to happen or in what form it will happen and it's fair to say that a reason

a very strong reason why the deal leveraging hasn't happened yet is because there are other crises around the world that are even more egregious than the ones we're facing and people are still fleeing to treasuries and the dollar in the meantime. because you know the central bank of brazil is holding them because china is still holding in china still holding them because japan is still holding them there there is no alternative on a scale large enough to accommodate a. flight from the dollar. and still ahead more from my interview with best selling author and producer addison wiggin where i ask him how long he thinks it will take for this credit bubble to finally be flayed and what he thinks the american economy will look like when it does but first their closing market numbers.

are sure is that so much given to each musician on the mark with egypt's unfinished business a year on the revolution that you have to do spirit appears to have stalled the military rulers who replacement. with. this month by the particles that make up the fabric of the universe find what you're looking for in the deep siberian forest fire it was the help of lasers in fibers pull out your tablet of a new gaming religion and what do you think should be given all of that here in dover severe sputnik knology on stage here on along with the future coverage.

welcome back in this second part of my interview with addison i ask him what he has timeframe is how he sees the bursting of a decades long credit bubble playing out and if you think that this depression will get so bad that the american government will stop at nothing to prevent the economy from bottoming out as americans agree to forfeit whatever liberties they have left for the promise of ever more security. history shows that on the down side of a big asset bubble big credit bubble the government. gets more aggressive and they start looking for ways to bounce their own books off the backs of the producers and i think we're in a period where that hasn't really begun yet but. that's what makes people fearful that's why people are sitting on the sidelines waiting for the next thing the next

the next moment where they can jump back in and begin deploying their capital and making money again i know again the one of the things we spoke with before is having rather they reckon i know that you have a very human very humble theme to the work of theirs and you never want to say this will happen or this will not happen would be your guest your best guess if you just play it out theoretically in terms of how this will develop and the timeframe do you have a general idea yeah i think the history shows that there's a long period of malays after a credit bust and we saw one in two thousand and eight we could expect that to go on for ten years twelve years so it's if you put that into perspective we're only three years into it we're only in the the initial shock of the collapse because stock market still reasonably high people are still watching the housing numbers expecting somehow there to be a resurgence in activity in new homes in construction.