libya's new government is being accused of torture and abuse in detention centers from cheers suspending its mission in misrata right now saying it's repeatedly treating patients for injuries sustained during interrogation with thousands of gadhafi loyalist bars it's raising key questions about the people that nato helped bring the power is out his. doctors without borders known for going do their job in the most dangerous and notorious places around the globe but an entity run libya the group has encountered a formidable obstacle they couldn't overcome burns from electric shocks and cigarettes heavy bruising and renal failure all this evidence of the continued torture of prisoners say the doctors and now after two inmates died from beatings the international group has stopped its mission in protest. patients were brought to us in the middle of interrogation for medical care in order to make them fit for

further interrogation this is an acceptable our rule is to provide medical care to war casualties and sick detainees not to repeatedly treat the same patients between torture sessions the news comes amidst rising anger with libya's interim government demonstrations in benghazi last week ended with the resignation of a high ranking member of the m.t.c. in the former gadhafi stronghold of bani walid locals pushed out their traditional council forces claiming systematic abuse it started with the very beginning of the rebellion very beginning of the insurrection the second day of the rebellion. the february so the african migrants were rounded up locked in a detention center and burnt to death and the n.p.c. expressed their support for this time and this is part of the strategy of the west you know divide and rule that was given the green light of the torture and execution that we're seeing now so this is a recipe for civil war meanwhile the nato operation that brought the empty seat of

power is by itself raising question is. a high profile international team of human rights activists has been to leave here to investigate some of the nato that it bears entity of where with that if you go in the friends and there were guiding the air raids and they are acting them and court have been meeting them if you are mandated. that. it is very very accurate in a way that i myself saw the killing of so many people in front of more my eyes i saw the killing of fifty one people in front of my eyes the youngest was fifteen years old and while all sides in the live in conflict are to blame for violence and violations the human rights activists claim not all of them have been held

responsible for their wrongdoings investigating what happened during libya's seven months civil war and the nato campaign to protect civilians this fact the mission discovered again crimes against humanity but the goal was not to charge but to shed light on what happened and not to repeat deadly mistake in recent united nations report has reviewed that up to eight thousand supporters have been held by militia groups in libya right now and with numerous occasions of torture and revenge killings throughout the country hopes of a new beginning for libya are fading quickly rif an ocean or r.t. . the delegates in davos are got the money on the table today as the world economic forum assesses the dollar the euro in the one and the struggling euro zone the future of heavily indebted greece is inevitably on the cards as well of course with cautious optimism and sharp criticism alike laura mysteries in davos for us. we

heard from a number. of ministers and also from vice president of the economic and monetary affairs for the european commission we heard them all speak today in a panel and strike an optimistic note that they believe that things will be resolved now many people would disagree with that but as far as the people on stage . and was confident that the greek bondholders will come to an agreement on greek debt write downs and haircuts this week and that's kind of what made the major headlines and also believing that the fiscal compact the tighter fiscal compact for the eurozone will come together and a meeting on monday and that would impose of course fines for people that are countries rather break the deficit and debt ceiling rules we saw today that spain their unemployment rate came out a seventeen year high of twenty two point eighty five percent the finance minister from spain says that this is the biggest issue facing the spanish economy and we know spain is one of the largest economies in europe also

a lot of disagreement over euro zone solutions we've seen george soros we've seen david cameron we've seen some finance ministers to timothy geithner say a larger fire wall is needed basically saying more bailout funds need to be committed from angela merkel's remarks we heard earlier this week she was trying to convince people that europe would be fine without pledging more money timothy geitner we did hear from today the u.s. treasury secretary i thought was pretty interesting he said that the two biggest issues facing the u.s. economy that will determine its outcome are what happens in the euro zone and whether or not the u.s. congress can agree on some short term solutions for the u.s. economy i thought this was quite interesting because although yes the eurozone economy very much weighs on the united states i've heard from italian economists for example that your and the u.s. they're much more pessimistic about europe and maybe part of that is coming from the fact that it is an easy scapegoat for u.s. politicians to say oh what's going on in the u.s. is dependent on europe when in reality the u.s. has some major problems of its own a major debt overhang. blick the fed has been very active in trying to reflate the

economy but unaffected unaffected does bar high unemployment more than sixteen percent for people that either don't have work or want more work you know these are some real issues that the euro zone has nothing to do it and a congress that is bitterly divided in an election year is not likely to pass much so some real concerns that aren't being addressed here. probably still to be talked about as well from lauren the company accounting just over ten minutes as well as the deals from davos the show has from a former american fed chairman about well he thinks it's time for the federal reserve to go and it doubles to top with a bit of the business no surprise i guess with me treat right now. i would welcome to business r t the devil's economic forum is displaying signs of a split personality this year the likes of the i.m.f. david cameron and george soros warning of potential catastrophes well on the other side a number of heavyweights in dusters who think much of the rescue work has been done

among them is under the course and the head of russia's second largest bank. but there was a practical discussions on for example the introduction of new regulations for. banks and financial sector. on the of course it will take maybe two to three years to implement it but at least there's not just a general debate some very practical things which now being discussed though there's still debate on the future of europe. a lot has been done as a lot of discussions already happened between the politicians and it looks now of the common solution they are much closer than it was one or two years ago. and the sale of a state owned stake in russia's largest lenders burbank may take place this year deputy chairman of russia's central bank says the government is counting on the

price of around one hundred rubles around three dollars a share the same as selling a seven point six percent stake in the. russian government is the mulling raising taxes for business first deputy prime minister says it should be done in a way that will boost regional development while having a minimum impact on corporate growth. you know. say please don't do this because you know each percent you raise them it slows down the economy so we speak and be there. so there is no you know the best recipe so we need to find the proper balance for the system possibly we could raise bt and to split and maybe. where we collect from you know increase tax we would provide for regional purposes. and russia's markets and friday's session on a negative note as even growth in the u.s.

came in short of expectations but overall the week was a very positive with the r.t.s. gaining four point seven percent over five sessions now a quick look at the main movers in friday's session on the my sax is burbank did better than the markets up around half a percent on news about its privatization and you may just losing ground despite strong growth world price gazprom is down and the m.k. is also declining as the market was unimpressed with a seven percent production increase and twenty that. the market was generally pretty flat after quite a strong day yesterday the market in general is up about two and a half percent this week from monday almost as if four and a half percent in the last two weeks things look pretty healthy of the moment underneath general strengthening the market is some secular rotation people who are investors appear to be selling oil and gas names and are buying more banking names

with names like a sperm bank and also you know particular or even second tier banks and so for now i'm back starting the headlines with kevin to stay with us. is he.

keeping up takes neither of our teeth kevin i mean these are our top stories are syrian opposition fighters tightly controlled in damascus just fifteen minutes from the center but says the u.n. has to for a closed door talks about a resolution which backs arab league calls to get president assad to go we'll update you on that throughout the evening other stories we're following for you libya's new leaders face accusations of torture of doctors without borders pulled out of a key city saying the same patients keep returning to new interrogation injuries

it's raising key questions among human rights groups about the people nato helped to bring to power. and crowds gather outside the polish presidential palace as people take there and get to the top over the online anti piracy pact which threatens regular internet users and the french m.e.p. to is also quit over active again story we're following closely more aligned twenty four seven of our teeth dot com now the money merry go round in focus for the next thirty minutes is we get the lowdown from the mountain tops in davos and a former american federal reserve chairman questioning whether the fed should still be around these days is artie's capital account just moments away.

good afternoon good evening for me and welcome to capital account i'm lauren lyster here in davos switzerland at day two of the world economic forum if you're watching our show you've already seen the barrage of headlines coming out of davos but here find out what's really going on on an off day gerri davos all have that report for you but first here's the trick of venus and washington holding down the fort. thanks lauren and back in washington former fed chairman alan greenspan is out with an article in the financial times today titled meddle with the markets at your peril a direct warning to the world's policymakers and government officials when he was fed chairman many argue the total was already floor of the market model that sounds like a punk loser don't worry we're a former fed governor alan blinder in studio with us who was under the chairman greenspan to help us on tires and why we're busy on time the mystery of the temple

men in europe are busy tying the continent closer together billionaire investor george soros had his own op ed in the financial times today where he proposed a plan that would allow the bond market to keep governments on a quote short leash plus they risk losing precious u.c.b. facility access warren with a buzz on this other special interest from davos in a moment so let's say that there is capital account. well it's day two of davos and the eurozone crisis remains a main focus george soros was recently out with an editorial advocating for more europe as a solution all david cameron who also is in attendance at davos has been portrayed as a foreigner in the side of bureaucrats who want to use

a crisis as an opportunity to make the dream of ever closer union a full fledged reality joining me now to discuss this from davos is the host of capital counter self the lovely lauren lyster. so lauren i want to start off with with europe because this is top on the agenda in davos george soros is out with an op ed in the financial times today calling for more integration as a solution to the crisis i know is there in davos with you what do you say to the folks down there. yeah he's here in davos and after reading that financial times headline that is very much the identical rhetoric that he is pushing davos very pervasively he's spoken to participants he spoke at a press lunch to reporters on the sideline about many of the things outlined in that plan in that article that you cited in the financial times which is also he evidently also the book new book this is all part of that but you saying you know a lot of some of things we've been talking about on the show specifically when it

comes to the l.t.r. o. which is something we've talked about the lending facility which has gotten cheap money out to banks they were supposed to use it to buy the debt of these indebted nations and as we've talked about dimitri a lot of that has presumably ended up at the fed or excuse me where my what country man at the e.c.b. where we've seen at the deposit facility reach records while george soros is take is that the l.t.r. o. has worked as far as getting funding to banks helping the liquidity issue with banks relieving that but it hasn't helped in the issue of these indebted nations turning some of these into what he calls developing nations at the mercy of a foreign currency that they are indebted to so he of course has his own plan it's for italy and spain to refinance with some kind of treasury bills at one percent he says it's a complicated plan it's got a lot of parts but he promises that all of the t.'s are crossed and i's are dotted i'm sure you could read about it on his book of course he's writing about it as you said authorities reject it and consequently he thinks that's a wrong thing and that the eurozone is going down

a bad path he's not trying to but trying to obviously but kind of undercutting angela merkel and kind of jabbing at germany saying that journey's acting as taskmaster of fiscal discipline he has a very different solution and doesn't think that this is the right one is worried about a deflation spiral in europe brought on by austerity has been a big proponent of the euro zone of integration for as long as i can remember so he's a big proponent of europe but someone who hasn't exactly been european lets loose amongst the crowd as you could probably mr david cameron how has he been received infringers are given the kind of icy cold stare down there. yeah i don't think he's making friends in brussels or in germany when it comes to angela merkel or where some of these technocrats or bureaucrats are trying to push push for further integration as the solution to the eurozone crisis without more money in the terms of been a form of bailouts because david cameron basically just hammered the euro zone and

said that the eurozone needs to do a lot more an order to preserve the single currency that they need a central bank they need it way more economic integration they need to be able to have some kind of way what sounds like euro bonds in order to address the imbalances he said it's not that the euro zone doesn't have all of these that it doesn't have any of these so hammer of a hammer angela merkel and germany's saying that basically this is a trade deficit problem and that surplus countries have to bear more of the weight i'm pretty sure is talking about germany there in the case of the eurozone so i guess is to be expected from david cameron because we have heard some of these. ideas from him in the past but he very much made those statements heard on the stage in davos today and a very packed auditorium a long line to get in everybody hammering angela merkel whether it's david cameron and oratory they've got their own plans but both of them say that the eurozone crisis is not headed in the right direction that a lot more needs to be done in their views well so it's pretty brutal of this on the official front but what about about networking we hear though

a lot about people going out to davos to network is one of the best place on earth for top c.e.o.'s fund managers politicians to strike business deals do business what are you seeing. yeah you know up until now i've been reading more about the unofficial and official davos but now that i've spoken to more people at the forum you really do see that today i spoke to actually a governor from the states this is a half of the davos you sit down and you think you're just sitting next to a random person any of these a governor so he's their first year at davos talking about how basically he's been in business meetings the entire time that are very beneficial in terms of networking and business for him getting them in the same room with c.e.o.'s he never would ordinarily meet or around a table with c.e.o.'s that could possibly invest in his state and so he can make his sales pitch but they get to be at a single session saying i spoke to some delegates that are diplomats saying that this is all about bilateral meetings and that that's really beneficial for them so they have their own agenda and that's very separate from the roubini that you see

quoted and the klaus schwab that you see quoted and kind of all of these newsmakers there making news for the official agenda kind of these big economic stories but there really is to use two different davos is and yesterday was a little bit saying you know i don't really see all of the kind of star power davos today a little bit of a different thing today you did see you know jamie diamond running by with his running shoes in his hand don't know i knew. anybody can guess play people on twitter dead and you know nobel laureates getting a drink at the bar sitting with their wives in the case of two that i saw michael spence and joseph stiglitz so you do see more of that they won't talk to me to the press but they're here. so what is there with a running shoe or we should be worried i mean what are we going to make of it as you're running from you what is in the running shoes. i don't know why has the running shoes but i'm sure my approach to me probably was in the run from me because none of these guys want to talk about that or the none of them want to talk

on the sidelines really as far as what i'm saying. thanks thanks a lot for the report obviously we're going to keep checking in from you our follow your tweets as usual i hope everyone else those that was host of capital account the lovely lauren lyster who is most. profusely here recover workhouse. earlier i spoke with formal former federal reserve vice chairman and professor of economics at princeton university dr alan blinder about the federal reserve system and what he thinks the role of the central bank should begin setting interest rates i start the question by playing a short clip of him speaking at the woodrow wilson astute about just that. the end

of the criticisms of the greenspan said it was after they lowered the nominal interest rate to one percent creating a strongly negative real interest rate in two thousand and three they held that there too long that's probably right i consider it a forgivable or a but it's probably. so the point i wanted to make with that is i i agree with you i think was probably the wrong idea to have a rate that low but isn't that really a problem the fact that neither i nor you nor anyone really knows what the interest rate should be and i say that because we have we have that it with prices and talking a lot about that it's a huge problem i mean. it would be a better world if the people at the federal reserve had perfect foresight and had a perfect model of how the economy works so they knew exactly what to do at exactly what moment that's a fantasy now what it means is they should try to keep learning learn from

experience try to improve their forecasting methods they're. the models by which they understand how monetary policy works they've got to keep working and getting better at that but perfection will never be achieved and so it will always be the case as you just said that they don't know exactly where the interest rate so be the this is my question why should the fed be in the in the business of setting the interest rate before with the federal reserve we had free floating interest rates and right to some degree or another what is it that why is it that we should have a federal reserve and open market committee this determining what the rate should be going into the market buying and selling securities in order to effect that rate as opposed to what as opposed to what you had said before you had a federal reserve which would be before the federal reserve ok markets around the rate independently were joined me as making a trade i'm a saver and i lend you money you borrow it happens. before we had a federal reserve we had a national banking system who decided how much money and credit there would be in the whole economy a bunch of banks making individual decisions there is

a clear history that comes out of the national banking system that we lurched from one boom to one panic after another historian's the lame out by date it was just a whole succession of them until we got the big one in one thousand nine hundred seven the panic of one thousand that led to the national monetary commission which did a lot of studies of what was wrong with the u.s. system and that in turn led to the federal reserve the conclusion which i think was a correct one was that the national banking system was inherently unstable and we needed a central bank well that again of the national bank system was some level of centralization and understand that those banks had to keep. a short amount of treasuries but before the national bank act there was more i get what you call the wild wild card banking what it was what about a period like that period where where it's determined again by private issuers well i'd say maybe the best way to answer this is that we didn't call it the

wildcat banking era for nothing wild cats are wild. and they sometimes produce very dysfunctional results and they did. this debate over whether the united states should have a central bank went from the convention in philadelphia all the way to the establishment of the federal reserve act in one thousand thirteen you could argue it still exists today i mean ron paul if we could imagine president ron paul he'd want to abolish the reserve i think is a terrible idea well the thing about the abolishing the federal reserve has a lot of functions right so i can understand the argument for a lender of last resort although there is a lot of moral hazard relate to that as we've seen with that question but i can understand that in terms of you've gotten the critique crises and ideally there if you could identify what banks are solvent what banks are insolvent then it makes sense to step in and help bridge the gap first solve institutions but again sticking with the market the market rate for a second even when we had free banking when you you know when you had banks

determining interest rates between themselves did we have a period as bad as the the pression and i think thirty three or even the depression of eighty seventy or eighty ninety three that was with the the national banking right well the eight hundred seventy three and it lasted a long time was horrible to the one nine hundred thirty s. it was the worst that we've had in terms of the economy there isn't any doubt about that but you know the historians of that period prominently milton friedman by the way. blame that in large measure on the passivity of the federal reserve that the fed did not step up to the plate and prevent the private banking system from collapsing but could have. should have done. so i continue my conversation with the former vice chairman about federal reserve policy and what options are left for the central bank given the already precedent amount of stimulus that the central bank has provided the first your closing market on. the be.

the better. world for the. technology innovation all the latest developments around russia we've got the future covered. wealthy british style it's time to. go. to. market. find out what's really happening to the global economy cars a report on. the book.

before the break i played the first part of my interview with former vice chairman of the federal reserve alan blinder in the second segment i asked him what if anything the fed can really do at this point given that it's already created so much new money and that pulling that money back into the central bank would create the exact type of depression that the fed is missing desperately trying to avoid basically a rock and a hard place. wasn't the fed's role in creating the bubble in the first place in other words creating help helping to create massive amounts of credit to the bigger issue before instead of stepping in to fill the gap thing so i think it's much as i was saying before you can you can look back and you know you can look back to ninety nine as we were just doing and say well the federal reserve should have been a little tighter than probably of should a bit you could look back to one nine hundred twenty nine and probably make the same case of the federal reserve wasn't doing much of anything then. but it's a question of magnitudes what the fed did or didn't.