no way to. respond to your technical videos i made a very professional you can see that a highly paid suresh was did it appeals to primitive responses but works one hundred percent first thought is that there is indeed no future without put but videos from the opposition are just as. an added whole a trend of this election season eavesdropping on politicians and posting recordings online or those taking part in a massive opposition rally in december were surprised to find out that one of their inspirations boris himself described them in a phone as the other person. here from each other of government property or. your property or to your comfort or. naive to expect from any side when we are living in an election year there are no holds barred in this war not even interfering in someone's private life or. a lack of privacy for today's politicians is already a modern day reality and with fifteen million russians going online today about

forty percent of the adult population she's the future is predicted to be filled with them online political other tars pushing the boundaries of a virtual world without borders exceeding the gradual ban party. and another kind of online banking upset the start of the us too as we report on r t dot com tonight the f.b.i. is planning to use information from social networks to prevent what it calls possible domestic and global threats now critics saying the move could in danger free speech more attacks on free speech get involved in the conversation yourself at r.t. dot com also russia's minsky true when they claim in britain it's to clear the best dance company of the season with the never so well for more check out our art and culture section online at r.t. dot com. it's the second day of business in davos as the world's financial decision

makers and top brass politicians make new plans to keep the global crisis said barry were making some profit along the way also on the table at the world economic forum in switzerland the fallout from the arab uprisings and try to find ways to breathe new life back into the struggling eurozone wrapping it all up lauren list is in davos for our team. today we heard from david cameron u.k. prime minister who had a apply different message than what we heard from angela merkel yesterday when she opened up davos so david cameron came out and said that number of things that he believes the euro zone needs he said they need a quick speedy resolution agreed debt issuance is and fiscal transfers and order to deal with imbalances so sounds to me like he's calling for some kind of euro bond said that there needs to be a firewall big enough and said you know really right now the euro zone has none of these things now this is in contrast to angela merkel yesterday we said we're not going to pledge more bailout money even though maybe the investment community wants it we're promising you that that we believe this fiscal integration will solve the

problem along with structural reforms geared towards things like creating jobs so different message from u.k. prime minister today but a couple things i thought were really interesting so he was asked about what all this means for the future of free market capitalism which is a debate going on here at davos and the emergence and rise of state capitalism and david cameron continue to tout free market capitalism and the european model as the best for freedom and democracy but one thing that came to mind is what we've seen with the technocrats installed that are now running the governments of italy and greece and pushing through these reforms that were very much dictated or influenced by germany and what germany wanted today we see the focus shift to the arab spring which obviously is a political geopolitical issue but was very much has economic ramifications as we see reports that davos investors are questioning what is the prospect of the change in the arab spring nations and what the prospects for investment are we've seen

economic impacts of the geopolitical changes we've seen yields in egypt for example search bar and cost be very high there so i think people are looking for answers to that and we have a number of events today that are geared towards discussing that very issue with some prominent leaders from tunisia and egypt here at the forum this year we've seen the occupy movement gather such steam and. and really of course they would be expected to be at davos at the world economic forum the irony is that as i was reading one in hours theirs they were saying it sounds a little like klaus schwab the founder of the world economic forum is channeling occupy and his rhetoric about the problems of capitalism the irony of course is the occupy protesters and activists are part of the conversation here at the forum. well you can see florida coast for davos week take on the u.s. economy and politics in a show capital account in about five minutes time tonight here on r.t. some other news now around the world let me take you through them in brief some top stories in baghdad ten members of a single family have been killed as they slept after the house was blown up by

insurgents two police officers their wives and six children died after explosives were planted around the home and three people also died when a motorcycle bomb exploded in the northern city of the latest in a string of attacks since the u.s. military withdrawal in december. international medical aid group doctors without borders is suspending its mission in the libyan city of misrata because of torture carried out in detention centers they say they repeatedly treated patients who've been interrogated also the u.n. is concerned about the conditions in which some eight thousand five hundred people are being held in the country several detainees have reportedly died most of them accused of supporting the topple gadhafi regime. and attempted mutiny in papua new guinea's been put on a group of around twenty soldiers put the defense chief under house arrest and demanded the former prime minister be reinstated after he was displaced well abroad of a medical treatment the man who replaced him said the crisis is making the country a joke amongst the international community this is the latest development in

a power struggle between the two men both claiming to be the country's rightful leader. two highrise buildings collapsed in the center of janeiro five died nineteen are still missing tonight emergency teams are working to try to find survivors in the rubble witnesses spoke of a strong smell of gas and an explosion just before the buildings collapsed one twenty four the button moscow time as promised more news analysis from davos in just a couple of minutes then but not before we've got across the latest business figures and news from dmitri now. thanks kevin we start the program with an artsy exclusive from davos the head of russia's state funded high tech corporation tells us it's looking for new investors and so we should buy says he's in the alps to meet leading bankers to help turn into an operation that's more like a public company. well

this year we will sell ten percent share of course at the private place but that's very very sensitive for enforcement in our way from the state corporation into the business like corporation and this terrible dude was so concealed so from my middle to ensure and we could be and that's why i meant here was a middle range president and we could be in the we were discussing this steps and just saw the bill and the strategy how to increase the approach here holder's participation. in major way should be all that you do show investors and i think that we need to what we need to hear is more will potations russian investors e.-m. the famous for in their investor who are able to invest in high tech companies. look at the of markets and the oil is still off there was a big boost on wednesday is another jump to light sweet up of one dollar twenty

four cents as the fed did i mean remind you on wednesday made a decision to keep interest rates low for at least another two years now this has also been supporting major currencies versus the u.s. dollar as you can see there the euro is up but one the thirty one sixty one the ruble strengthened by one point seven percent in my six trading by fifty two copecks. stocks in the u.s. this hour on mixed and some stocks are correcting after a strong session on wednesday night from the high tech good nasdaq is down point two percent and europe the markets are more a big decision the footsie is up at the close one percent and of course the dax almost two percent and this is the closing picture in the russia another positive session for the r.t.s. gaining two and a half percent m i six just one percent because of the difference in the car and

see. because of the strengthening of the we will check out the main movers on the my six and these are mining stocks service saw a very strong performance in the morning and at the day three percent up not bad nor snicko quite a liquid stock they're a big player in the market up almost two percent and the second to banking stocks both of those did and here is one of the outstanding traders of the day but the volumes are both low but still thirteen and a half percent in just one session. of the market seems to be very active. couple of days in terms of volume terms of quotes. it's really positive for the banks although when russian banks and basically all of them are extremely active growing it's also supported during the day by the news from there was from several of the species of european leaders there of course some more positive guys always in case of fungal american there are always some more cautious men like for example they

would cameron. anyways they seem to be closer and more on the same side in terms of their positions on the ways to solve the crisis than they have been in the end of two thousand and eleven. mirrors of policies golden polymaths talks to merge the russian gold miners think goes ahead it would form the world's ninth biggest producer of the matter with a captivation of about twenty billion dollars at a premium listing in london the companies involved have played down the prospects of a deal saying talks have not involved management even xhosas and jumped eleven percent of one point in london to a four month high only matter was a certain amount to post a record since it's a market debut in october the headlines are next on our city.

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on the go. video on demand tease my old calls and r.s.s. feeds in the palm of your. question on the dot com. this is our team from moscow it's up os nine pm here my name is kevin i mean take you through our top stories then i must march in poland as the country signed up for global partners to take down internet piracy it covers everything from movies and music to fashion pharmaceuticals but it's fear the deal will give big corporations too much power to take web users all fly. i. have a crashes in syria as troops storm a densely populated damascus suburb after a confrontation with opposition fighters last week he would security council could

vote in the next few days on a resolution aimed at stemming the escalating conflict. in the battle for russia's top job goes viral with creative thinking the new weapon in the arsenal of politics internet campaign is a you tube videos that fast becoming more powerful tools than conventional t.v. debates. coming up loyalist on a cause to me true the latest straight from the world economic forum in davos the program is called capital account it is on air next year on r.t. . good afternoon good evening for me and welcome to capital account i'm laura lister here in davos switzerland to bring you the latest and greatest or where i can get

to and who i can talk to at the world economic forum also in unrelated news i found out they do you know was is joining our team will have more on both the first years to me seen it all down the fort in washington. thanks loren and back and watch them last night was the president's annual state of the union address and although there might have been a lot of good rhetoric it was the substance. and that's why i'm sending this congress a plan that gives everyone sponsible homeowner the chance to save about three thousand dollars a year on their mortgage by refinancing at historically low rates no more red tape no one around from the banks. who is the program really benefit the average american which cost of living has been rising for the financial industry by helping to roll over more debt onto an already bloated government balance sheet and speaking of bloated balance sheets the f o m c concluded its two day meeting this

morning and you know what they say about the buck stops with the president what's often forgotten is where that starts and it starts quite literally at the federal reserve. the committee decided to keep the target range for the federal funds rate at zero to one fourth percent and currently anticipates that economic conditions are likely to warrant exceptionally low levels for the federal funds rate at least until late two thousand and fourteen. operation twist continues and sort of the financial repression of zero percent interest rates at least i'm told twenty fourteen but how low will the bond market he will submit to the whims of policymakers and the fed's policy is just moving us from zombie banks to his zombie economy let's get today's capital count.

angela merkel kicked off davos today by taking on the bond market and promising more europe as a solution to our problems and what we've heard public concerns are the ills of current capitalism don't you worry that was found just the man to defend it here tell us about this and other palace intrigue from that snowy hamlet atop the swiss mountains is our own lauren lyster so lauren look i do a bunk bundled up there as it is a cold. call all right this is no wintry resort so i don't want to waste your time lauren i heard the news a joyous i will be broadcasting i say no because that's what you think of as you think the let him down in davos there with you and cover some of the fact as the snow. as the million dollar question right or maybe the billion dollar question so that's exciting news that julian assange is joining our t.v.

that's very exciting i mean he's been such a prominent whistleblower and made such a big impact will be really exciting to see what you'll do in the show and an exciting extension of r t what i think is kind of shocking is the mainstream media reception that i've been seeing i've been looking at the headlines here about a saw engine kremlin t.v. and kind of that spin on things i just think that that's so weird that the press wouldn't be more focused on what does that say that a song or a whistleblower who's committed to telling the truth is able to do so on r t it just doesn't seem to go with the spend they've taken and along those lines when you ask if they will welcome him at davos or if they will grant him many interviews i think that the answer to both i would venture to say i don't know if they would credit him but i don't think that many people would talk to him because i'm having a hard time getting interviews and i haven't blown the whistle on the establishment the same way that he has well. there's a bull market in dissent so they walk amongst the rest of us as max keiser said exactly so it's very hard so i don't want to start with you on the official agenda what are you hearing i know germany's angela merkel gave her opening remarks i

presume the eurozone as all the top of the agenda. yeah but whether they like it or not the eurozone of course is on the top of the agenda because it's on top of everybody's mind and whether or not that is the theme of the conference this year which it's obviously not i think the fact that merkel made the opening remarks shows the significance of this to everyone that's attending here sixteen hundred some business leaders here probably very concerned maybe possibly because of their investments and what's going on in the euro zone what i thought was interesting about her speech is that she's not really promising no more there's been so many demands from probably many in that audience for bigger bailouts more money pledged and she basically said i can't give you that what i'm going to give you is the promise of more stability the promise of more integration as a solution because i promise you more than that in the bond market say the bond market and the markets attacked us we would be able to deliver and we would just have an open wound so here you kind of see even though she's not going after the

bond market you can see that this is really kind of the she's at war with or has been through out of the bond market the bond market's been hibernating for decades so but i want to ask because i've heard. there's a debate going on in the future of capitalism what exactly are you hearing about this. well dmitri obviously the irony we don't need to point out of a bunch of capital is talking about the future of capitalism and if it's outdated what i did think was really interesting was that it of course found a very fitting defender and brian moynihan the c.e.o. of bank of america there were some tough comments about capitalism or some concerns about capitalism from people like david rubenstein the c.e.o. and founder of the private equity group the carlyle group who we know because we've talked about that investment he made the washington monument to fix the cracks but he was criticizing capitalism some others were too and brian moynihan was saying ok policymakers don't go too far though you know banks really have reined it in and

you know western capitalism is all about boom and bust that's part of the deal when come on that's not the only deal dimitri you and i talk about every day on this show and i just heard yesterday in that great interview you did with addison wiggin him saying we're in year three of what he predicts is seven to ten years of people being worried just about the return of capital not the return on capital and how difficult that's making things and that is the consequent of this consequence of this credit bust and i don't hear him talking about that so you know there's the debate on capitalism that's being had there plenty people have but i want to ask brian moynihan more about that i did approach him for an interview i did i was able to grab him but his handler quickly was like no way well people always want a way up but down the way his credit for socialism that's that's that's your social lauren before you go out officially in our herd you tweeted oh so kind of got a picture of you climbing out of a of an occupy igloo this is like one of your tricks for getting you know getting getting interviews like what are the tricks the true over there you care a lot of cinema. i don't think that it was going to help me get interviews with

morning to hanoi or any other people that turned me down in there but i do have news for you because you say people want socialism on the way down and i think that people think that is what this occupy movement it capsulated and i want to tell you what discussion i had with the occupy protester out there at the igloos who in fact is an american ex-pat dimitri guess what his concern was one that he's really been studying debt currency the problem with the fact that debt has to be created in order to issue money i said hey you said a lot like an austrian he said you know i've been listening to a lot of they've been coming through zurich where he lives quite frequently so i think about something important because we talk about really what the ideas are in the occupy movement and you know it's not a giant massive call for socialism he probably watched the show lauren just wanted to impress or didn't tell you that's why he said oscar is a code word. so i went out we got to go we are a lot about we got to go lauren sawyer stay warm and that was lauren lyster host of capital.

so earlier i spoke with peter schiff c.e.o. of euro pacific capital about the fed's latest rate decision some of the president's economic proposals during his state of the union address and what all this means for the broader economy take a listen. well it's a bad decision and you know it shows that president obama when he gave his state of the union address he said that we can't go back to the same policies that created the housing bubble the financial crisis well we never we never discontinued those policies we had a financial crisis in part because the federal reserve kept interest rates too low and they're making the same mistake now interest rates are much too low and now the

fed is saying they're going to stay low through pretty much the end of two thousand and fourteen this is massive inflation that the fed is going to create or to try to artificially prop up the housing market prop up government spending a phony economy all of this is going to come back to bite us it's going to lead to a bigger disaster than the two thousand and eight financial crisis or will i want to talk about that because when people talk about inflation there's obviously the consumers recognize inflation when they go to buy everyday goods but there's also the inflation of the broader monetary aggregates and we actually have a chart of average monetary base increases from it's up right there and it actually shows a spike in the monetary base we've shown variations of that graph before in the show and you see it also in the in the fed's portfolio it expanded over three times since the crisis but we haven't seen that same level of inflation in the broader aggregates of the word in the broader money supply what's your take on that because

that's kind of what we saw in japan right the japanese central bank tried to inflate the economy but it really just created zombie banks that were living off life support and they succeeded in preventing a healthy deflation which would have been beneficial for the japanese economy we're not going to be quite so fortunate we're in much worse shape than japan was when their central bank embark on this foolish policy and their government but inflation is that increase in the money supply when americans feel the effect of inflation when they go to the supermarket or the gas station that's what happens as a result of inflation prices are going up at. prices are going up for american consumers unfortunately they're going to go up a lot faster in the years ahead i mean this is the consequence of the fed trying to inflate the housing market to try to prop up housing prices it's not working but what is happening is the price of everything else is going up instead but quickly

things that americans have to buy on a daily basis of food and energy. and it's not just the housing market everything is being propped up but there's something else though that we saw the fed i wouldn't describe this as quantitative easing in the same way that we saw previous q.e. one in q two maybe it's whatever you want to call it but the treasury market has been really resilient and surprised a lot of people has it surprised you at all in the way that it's behave because the fed did stop that large scale action asset purchase program that it was doing for the first two years after one thousand people doing stupid things doesn't really surprise me anymore because it's been going on for so long i mean i saw it in the internet stocks i saw it in the housing market and you now see it in the government bond market but of course a lot of this is manipulation central banks around the world including the federal reserve are buying all these bonds and a lot of the u.s. banks because of the regulations are basically being forced to buy these bonds so there is a lot of phony demand for treasuries that's out there but eventually like all bubbles it's going to burst treasury prices are going to plug interest rates are

going to skyrocket i mean it's a huge disaster that is waiting in the wings and if you watched the president say the union address you would have no idea you know it's kind of the equivalent of the captain of the titanic sounding the all clear from the bridge even after they've hit the iceberg i mean we're headed for a real financial disaster yet he's talking politics as if this is business as usual and i want to get to the president but is there something that's counterintuitive there though that that does support the treasury market in the short term before rates will eventually rise because banks let's say they have no really good place to put their money especially with what the fed is doing twisting the curve which also doesn't make sense to me right because they're traditionally banks make money by borrowing short and lending long so it isn't there if they potentially see a recession or depression coming along don't they want to try to remain liquid for the foreseeable future before they have to know that. they think they're liquid and in fact they are borrowing short and lending law they're borrowing short for the

fed and lending a lot of the treasury but you know this spread there is. pretty narrow and the risk is enormous for the banks when interest rates eventually rise which is another reason why the fed is committed to keeping rates so low for so long because it knows the minute it pulls a rug out from one of the banks there are going to fail again a so it but in order to keep interest rates this low the fed has to create a lot of inflation they have to print up a lot of money to buy these long term low yielding assets that nobody in their right mind would buy you know if they understand the fundamentals. still had i continue my discussion with peter on the fed the state of the union as well as a recent claim by columnist paul krugman that we may be headed ever so slowly towards recovery but first for closing market numbers. the big.

wealthy british scientists are. right on. the. market. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines kaiser reports. for the. science technology innovation all the latest developments from around russia we've got the future covered.

welcome back in this second part of my interview with peter i ask is the american economy recovering even with the fed stepping away given that we've been on life support for so long. so what do you see is the endgame here or the the strategy for the federal reserve because normally if we compare this we've heard a lot of comparisons one is that the economy went to in effect of li intensive care after the two thousand a financial crisis and if you're in i.c.u. as a patient the ventral go to the doctors to get you out of i.c.u. and they get you home but the way that the fed is approaching this it just kind of seems like this is prepared to zero interest rate policies for the different future is essentially like being on a drip or for an indefinite period of time how do you think the fed is going to eventually try to take their hands off and can't even take it's actually worse just like we're in intensive care and what the fed is doing is simply garrett.