holdings into something not a u.s. dollar basis like gold but of course together with debt china would need to have a say in the global financial situation is now. dominated by europeans and the world bank is tell me that about americans china has riveted to say in global financial matters and i think that it will have to change expression lead the u.s. and europe in such dire financial straits if you want china to participate fully in the global financial system i think you really need to bring china into d.c. to organizations. more an hour from around the world in the world update rival militia groups have been involved in a gun battle in the center of libya's capital tripoli witnesses report heavy and light weapons exchanging fire in the city the road along the coast has been blocked and smoke was seen rising from the scene of the fighting former allies who fought

together to oust moammar gadhafi last year now engaged in a battle to influence in the new libya. government of attacked a paramilitary checkpoint in southwestern pakistan killing eleven soldiers and wounding a dozen the troops return fire but it's unclear whether the attackers suffered any casualties shortly after pakistani fighter bombs jet fighter jets bombed the hideouts of militants along the afghan border killing up to thirty one suspected insurgents. also in our world update two people have been killed and five more injured in capital during an opposition rally police there used to gas to disperse a crowd gathered to protest a court room allowing the nation's elderly leader to run for a third term the constitution was revised soon after he was elected in two thousand to impose a two term limit but the president argues that since he was already in office when it took effect it should not apply to him. so benign people have died and hundreds

have been hospitalized across eastern europe after a severe cold and blizzard swept the region drop in temperature also cause power outages and blocked traffic worst hit is ukraine where forty three people most of them homeless died after temperatures hit minus thirty degrees celsius weather forecasters say that the deep freeze is expected to last until friday. united states is home to the second largest jewish community in the world and many american jews feel increasingly alienated from their spiritual home in israel thanks in no small part to ad campaigns funded by the israeli government party's policy here explains. the beckerman is could be the family featured in an advertisement recently pulled from american t.v. the goal is israeli marry to board an american jewish woman but it was saying is that may have been shouldn't have married me but the emotional response was just

out. this is one of three ads sponsored by the israeli government and aid across the united states that evoked more than just an ouch from american jews when who is really grandparents ask what festival it is the american granddaughter happily answers christmas instead of the jewish festival of hunnicutt the implied suggestion was that jewish identity has been diluted in america and that angered many jews who live there you know the. american support you can at the lots of points or to insult them or to this us and so for them. shows a toddler calling deadly deadly to his napping is really expected father who finally wakes up only when he son switches to hebrew american jews felt insulted by the suggestion that israeli jewish identity was more pure than american jewish identity i think that that's really what bothered me about the ads is that they came from a place of almost fear mongering you know they were almost kind of trying to scare people who are living here israelis who are living here the ads were designed to

encourage its radius living in the united states to come home but critics complained they smacked of arrogance ignorance and cultural disrespect for america instead of giving positive reasons for expects to return to israel they failed to address why many had left in the first place i think a lot of american jews look to it's going on in israel was developing in the parliament particular in the feeling strongly alienated from that and they say to themselves this is not the israel that we fell in love with this is not israel that we want to defend american jewry has always been more liberal than israeli society they traditionally voted democrat and often open to a list off the docks practice of judaism then the israeli counterparts. for years a rift has been growing between the two much of it based on the aggressive policies of tel aviv towards gaza and the occupation these really palestinian conflict still shows no signs of compromise and consecutive israeli governments have been unable or unwilling to reach agreement with the palestinians even many american jews

feeling more and more alienated from israel does some of what's going on in the israeli public sphere troubled some north american jews troubled them very very greatly i have no question but that's the case since the late one nine hundred sixty s. israel has built hundreds of thousands of homes here in the west bank more than half a million people now live in settlements television onstott was issuing tenders for thousands more homes to be built across the green line evoking anger and condemnation from the international community as many as a million twenty eight israelis live outside the country in the last five years the number of people who choose to leave the holy land has outpaced those wanting to come and live in israel and although the ads are no longer on the air the reasons that they provoked such a backlash in the first place are far from resolved policy or r.t. television. so that brings up the date for the moment i'll be back with some of our main news stories in about seven minutes from now in the meantime dimitris next with the business.

thanks bill there's also be the most hyped i.p.o. in years facebook is expected to file the paperwork for its public listing in new york very soon as soon as today the social network will reportedly sell a ten percent stake to raise up to ten billion dollars this will be a record for a technology company but as with other high profile internet firms where they would have been costly for more capital says this one looks over. this is a valuation probably based on future cash flow where as we're now more inclined to talk about president bush will definitely facebook is not delivering this much money right now so. might be a self-delusion or might might be deliberate exaggeration of market while you are but facebook is definitely worth much much less than that amount.

of effort to crack down on corruption president medvedev has ratified the o.e.c.d. convention against bribing foreign officials in business transactions this is also a key step in russia's access to the paris based organization for economic cooperation and development with the o.e.c.d. according to a study by transparency international russian business men are among the world's greatest bribe givers second only to chinese. second at the markets this crude is still on the rise of the china's manufacturing index unexpectedly right through six speculation of the world's second biggest consumer is withstanding the european debt crisis u.s. stocks are up as a.d.p. reports one hundred seventy thousand new jobs were added in january in the normal farm sector marking the twenty fourth consecutive month of gains. in europe votes the other acts are also positive and reports the european central bank could help reduce greece's debt by returning gains on greek government bonds of the originally

purchased at a discount here in moscow everything's also positive will be on ts my six dating one of the house the senate wednesday session the main movers on the mind six include a gas problem is no profit rose over forty one percent the first nine months of last year predicts full year profits will be up twenty five percent oil pipeline operator transnet its preferred shares were weaker than the market the company plans to invest thirteen billion dollars into its infrastructure by twenty twenty and. is in the red number of course this russian sales fell twenty one percent in january gears of market starting from i have seen measurable. risk rally in all classes or assets and russian markets is now is no exception in fact this is the high better market so when the race rally begins russian market usually outperform their competitors today we've seen basically growth across all asset classes and across all regions it was a strong p.m.i.

non bought of china then we saw or a bit stronger my numbers out of euro zone and the main reason is that the general opdyke for excusing crazing and that's of course happening against the backdrop of all for there has to be his asian situation in the debt crisis in europe. the news plan to create the world's largest stock exchange have been blocked by the european commission says a proposed nine billion dollars tie up between us and new york. stock exchange would be anticompetitive the head of the ija bosses says that isn't is a black day for your. market players will soon have an opportunity to spend their cash on russian sparkling wine and make a potential return one of the country's main producers are but how do the saw plans to list ten percent of its shares on the my six by april it says the main goal of the i.p.o. is not the money but confirming the value of the company. next up on r.t. the headlines with bill do stay with us.

old means of protection can be used. when global supremacy is at stake. between two thousand and five and two thousand and nine the u.s. has spent fifteen billion dollars in the prostate for the entire program that we

are dealing with right now here in two thousand and eleven is another hundred and fifty billion dollars that's larger than many country's entire military budgets went on things becomes the best for the defense. you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

this is r.t. live here in moscow with you twenty four hours a day top stories now the. back of weapons in bargo on the syrian government because of the opposition groups operating in the country that some u.n. members refuse to acknowledge the pressure is standing firm on its opposition to any military intervention in syria saying it will vote against any u.n. resolution that could aggravate the conflict. is the fate of wiki leaks founder julian the song shoes wanted in sweden on allegations of sexual assault that we can expand the case is politically motivated and a response to his website publishing secrets. and israel's ad

campaign insults jews based in the u.s. suggesting that jewish identity is being diluted by the country they live in but many already feeling alienated by israel's policies of expansion and treatment of palestinians. so that brings up to date for the moment i'll be back with some of our main news stories about half an hour from now in the meantime asks what's the risk of another world financial crisis and how might or how close it might be that is in capital account next on r.t. .

good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and remember this. story it is you know we're going to play a lot of the customers are freaked out waiting to see how low her dow will go. has been more than three years as a financial crisis and we never cleaned up the mess now we're seeing the consequences so just how close are we from having this happen again and why haven't we been willing to pay the price of change and the e.u. has a treaty deal meanwhile banks are set to double prices loans from the e.c.b. oh yeah everything is just fine in europe banks are just fine in europe they just mean perpetual bailouts after all and from bailouts to ballots florida residents cast their votes in the republican presidential primaries consider this we've heard presidents before talk about how bad adding brilliance to the debt is ok responsible. that's unpatriotic. and then they do

a complete about face once they're in office they lie to get elected it shouldn't pay to lie why don't we make presidents members of congress elected officials personally liable for their promises they can't run for reelection if they break them you don't write in the deficit you don't get to run we'll talk about it let's get today's capital account. you know we just don't know how this euro zone crisis is going to play out we do know this though the greek government and a lot of other countries in europe can't afford to pay the totality of their debts you can add the u.s. to that list too but let's stick to europe for now because the same goes for banks

check out this headline bank set to double crisis loans from e.c.b. all right there you go and anyone who wants to dispute that should go back to two thousand and eight and take a long hard look at this speech is being made back then by george w. bush by people like hank paulson at the height of the financial crisis take a look at this this was when the house first rejected the seven hundred billion dollars bailout bill and the dow plunged seven hundred seventy eight points the largest one day drop in history. we've experienced significant turmoil or from natural markets in the last few days including the collapse of washington mutual and wall culture year and the failure of two major financial institutions in europe. that prices show the emperor has no clothes and still the us has too big to fail banks zombie banks propped up by the federal reserve we still just see u.s. public debt getting racked up by the trillions as unemployment is still depressed

while our addiction to debt has been fed by the public purse the government stepped in to borrow and spend when the private sector collapsed and there's just so much we didn't learn and didn't change in the u.s. after the financial crisis despite all the promises of house leaders made on the floor during the debates you can go back and look at nancy pelosi john boehner they were all saying that for example we didn't pass regulation that really changed the way banks operate ok we have basil capital requirements but how long are they going to take to implement and the vocal role in the u.s. yeah sure they're looking at it but you have all of these contingencies fighting against it and no one in power seems all that concerned not really least that's how i felt at davos listening to these guys and that's not even taking into account just how fragile our economic model is we were looking back at videos from two thousand acres that's what we like to do in our spare time during the financial

crisis let's just move wind a second for you watch this. concerns continue to be the leveraging that we are seeing around the edges but other investors are recessionary fears that were brought to the board today by the fact that the economy right to for the first time sixty years. listen did you listen to just how vulnerable our entire economic model is vulnerable to the realities of life in real life prices don't rise forever and economies don't grow every quarter year over year over year forever but that's what we expect that's what we're obsessed with growth propping up the system to keep it going at davos speakers were harping about growth no differentiating between good growth and bad growth just come on we've got to grow and we've seen how it ends so what we have to look forward to let's talk about it is here he's blogger and radio host of the market taker is also author of this book leverage how cheap money will destroy the world so he's got plenty to say on all of this carlos

nice to see you thanks for being on the show thank you for having me absolutely so the video i don't know if you could see it that we played from two thousand and eight the the cut lines were wall street expects collapse and nasdaq drop below october tenth low but what was really interesting to us was not that but the ingrained expectation that price is always had to rise and economies always had to grow and the moment that wasn't true all hell broke loose it really seems like our very models aren't equipped to deal with reality do you agree. you know there's there is a fundamental disconnect between the fact that any time you have a system where capital can be went out of interest you are inevitably going to get recessions and in a recession the people who are the most imprudent both in london and borrowing go bankrupt that's basically what a recession is that you have too much stuff being produced for the economic demand

the problem is that when we have governments borrowing that is their make political promises to spend money they don't have then the government can fail and that's much more serious than joe's car dealership down the street going under which shoes shortly going to be replaced by another car dealership because somebody will step in to provide that service or that good when the government goes under of course it's much more serious and this is what everybody fears right as we see sovereign debt crises going on right now which i know you've been talking about i want to get to that but really this conversation we're having about the very system is that at the core of the problem still today we're just running around dealing with symptoms without really dealing with the disease that we've built an economy and a financial system on a faulty set of assumptions. we never took care of the problems in two thousand and eight and the biggest issue we have in the united states right now is that we still have financial institutions that are holding various debts on their books and on

realistic prices and this is one of the reasons that dollars in market will clear because we have banks that are holding houses and loans values that have no representation to reality but if they were to mark those things that reality that you show big losses or possibly be rendered insolvent and until that problem goes away and we stop propping these institutions up we can't have an actual economic recovery we've got the same problem with the sovereign level but it all boils down to the fact that we have these people who have gotten so powerful politically of the largest contributors to both republican and democrat candidates both sides of the aisle are these very same banks that caused this problem and are holding these loans and properties that are unrealistic valuations and i want to talk a little later about the politics but let's stick to the mortgage crisis let's go back in time to two thousand and eight i want to play you a little snippet have a report from the mortgage crisis meltdown during two thousand a. right now the banking system is so clogged with mortgages there's no credit available and so ok

so now fast forward let's bring dimitri and dimitri get in your ask your question a call we thought was really interesting about that was that that sam b.c. anchor was talking about how the system was clogged in other words it wasn't clearing the mortgages weren't clear into the pipes but all that happened was the private sector debt was transferred onto the public balance sheet and now three years later it looks like sovereign debt the backstop of the fee up money system is now clogging the pipes and there is nothing else to roll that debt into so where do you see this going from here where it's the sovereign debt that's the issue. recognition of the problem is going to come whether we like it or not and so you're seeing this over europe but it's also true here in the united states we just got done with another year with more than a trillion dollars being put on the public balance sheet the cvo was out this morning saying that there was going to be another trillion for the next fiscal year this cannot continue forever. as long as we continue to allow these institutions to

pretend we're going to continue to have this system where in the united states for example we are representing in g.d.p. in our economy approximately ten percent more activity than there is actually private demand to fund that cannot keep going on and that's what led to the crisis over in europe and it's what's leading to the crisis here in the united states and yet governments are still trying to make up for the collapse in private debt by substituting it with public spending and just to give an example of what this looks like i was speaking to a governor of a state and davos and he was talking about how his medicaid costs have soared in the last couple of years because of he said in one part it was inflation it was prices going up and he said the other part of that was just a lot more people on medicaid and he said his staff literally does not have a solution for him for how much these costs have exploded for their state so does this really get to the problem of the unsustainable system that we can't deal with ever rising prices yet the attempt is to keep propping prices up. there's the

medical problem is all from cost shifting and attempts to sustain a system that has been designed on the back of the unsustainable we all want the perfect heart bypass and all of these advanced technology and treatments and yet the fact is that medical costs at the federal government level have gone up over nine percent a year for the last thirty years last year the federal government spent about eight hundred twenty billion dollars that means that in about eight more years we will spend one point six trillion dollars in fifteen sixteen more years we'll spend about three trillion dollars well three trillion dollars is awfully close to the size of the entire federal budget so that's obviously not going to happen and yet without addressing this issue head on and saying ok we cannot have a system that has a nine percent growth in expense when our economy is growing at two percent or we will all go bankrupt is that the root of what's going on and it's not just in the

medical area it's also in other parts of the budget but the medical is the most acute and the first one that will fail and you know with what we're talking about with an economy if we want to use an analogy you know you can train athletes and you can give them steroids but at some point both the natural you know training and coaching and the artificial stimulant is going to reach the end of its rope it's going to reach its limits and the athlete is going to stop winning and will probably have bad side effects too from the steroids maybe you know baird if you're a woman or some breath if you're a man but is that where we are as western economies where does this go if we don't bring in a new athlete and keep trying to push the old one instead. if we don't stop what we're doing we will end up with either a sovereign collapse or an economic collapse or both and we are running out of time to deal with this in the united states in globally the simple fact of the matter is is that governments cannot promise to their citizens more services than they are

able to tax in the present day in this is something that just showed up in a recognition over in europe they've now got this new deal that supposedly is going to go in effect where they can't run deficits of more than one half of a percent but over in the united states we are currently running deficits of about nine percent so you know they may be kind of figuring it out over there in europe but we better get on the stick over here in the u.s. as well what about people who are all that would say you know the stock market looks pretty good january was just poised to have its best month in a decade until it kind of took a dive today the u.s. dollar is looking pretty good relatively speaking to other currencies i don't know what you're talking about are you crazy well that's what everybody said after bear stearns went down in two thousand and eight and the stock market took a little dive and then it recovered and everyone said happy days are here again in ben bernanke he told us that subprime was contained it was all going to be ok and six months later everything went right down the toilet yeah and yeah when i was a loser is then at the end of the day is not everybody is going to be

a winner who is going to be the major loser here just real quickly i think at the end of the day what you're going to see is those people who have become dependent upon the government cheese are going to end up being the biggest losers and it's not going to be by choice it's going to be by force which is an unfortunate result and i want to talk about some political solutions when we get back we're going to go to break real quickly but we will be back with more with karl denninger. and still ahead drivers start your engines because bidding is now open for obama is old chrysler on e.-bay the price may not be getting a break so we'll give you our three cents on the up and first or closing market numbers.

wealthy british style most of the time to buy stocks because. of the. markets why not. find out what's really happening to the global economy in cars a report on. the substance. in a time like the world trade army. religion ruins. the land where time stands still. all becomes a scene of nothingness. the mysterious sons of russia.

welcome back so it is the republican presidential primary in florida so let's talk now about attempts of elected officials to rein in the debt and the spending let's look at how it's gone ok here's then us senator barack obama back in two thousand and eight president george w. bush adding four trillion dollars to the debt we know now over moen trillion dollars over. there but we are going to pay burke. dollars for every man woman and child ok responsible. unpatriotic yeah it sure is only the problem is that obama has added five trillion dollars to it that's in only three years into his term annualized that's almost three times what bush spent we have fifteen trillion dollars in debt national debt.