income that is until they directed their criticism to the new military leadership lehmann scaff for the slow pace of reform some of them are used by the other because. they are quoting people of the world. and they are the ones that evolution they have. won the radicals who live there this is very much a dangerous world the rhetoric this is fiction led to prosecutors really seventeen offices and advocacy groups forty three activists including americans germans and egyptians are now facing trial for illegally using foreign fines to promote and arrest in the post mubarak country activists however claim they are the victim of scarves reluctance to give up power with reading the people about the rights of the scaf looking for enjoy. some agent against the regime and all the mind the round up of activists has also noted the sun if you asked mr takes the secretary

rain further fueling tension between cairo and washington. isn't simply because. of them in a sort of plans for. i don't think that. anything at all so this is a game and there it was military aid to egypt to reduce one point three billion dollars annually has been very serious there is a big week to condemn this car when in the days of blank checks are over or they condemned mubarak tons of times but at the end of that the continued on flowing that the provide the support also continued on flowing. or washington's so-called support for democracy here in the middle east and washington wants to step in or is this. as much as possible in order to get in to its interests they don't care about democracy meanwhile even those on the streets protesting against car share the council's concerns about the motives the usa has had a hand in tips policy making for years but the whole n.t.

and your campaign has become the first serious disagreement between america and the countries your story takes cairo wanted to send washington and message that it's no longer the silent dog it was under mubarak but an independent state which will last so the right any outside interference some doubts though they really minute the end to military movement growing have a bigger you can see it over there this is in council of the armed forces or scaf now running egypt is in a very vulnerable position and this nationalistic pronouncement may just be a nationalist show put on to calm the people down and to win back a shred of credibility. here if you are to cairo. remember we would have more stories news and comment on our web site on t.v. dot com in store for you right now the notorious anonymous group packs and clean city officials and publishes their personal data online in retaliation for what it

calls the violent crackdown on occupy protests. plus it's reported that the british government may consider sanctioning. the use of nerve gas by riot police despite the chemical agents being banned in warfare those stories available right now r.t. dot com. in a recent report london based independent news agency the bureau of investigative journalism i covered countless deadly drone strikes carried out by the u.s. in pakistan and also highlighted several quotes from president barack obama claiming the strikes only target terrorists and not civilians whether the report found hundreds of civilians have in fact been killed by these cia led aerial attacks compile the report thinks it won't be long before the legality of using

drones in that way is tested in court. the cia has been saying for some time that it hasn't killed a civilian in pakistan since at least two thousand and ten every news agency out of pakistan every credible news organization of its looked at this is fine but that's not the case we know that civilians are being killed pakistan is clearly very unhappy with the strikes there's an interview in a british newspaper today with pakistan's high commissioner to london describing the drone strikes was in effect extra due to show execution a state sanctioned executions does seem to be an indication that these drone strikes are happening at this point what not not because of what pakistan wants united states court has ever looked at the legality of these drone strikes and there's a reason for that every time a case has been brought in the united states that has attempted to look at whether these strikes are legal or not the united states is claiming something called state

secrets privilege but that's where they say actually this is a covert operation and we can't discuss it really does need to be an accounting here and it. a motion by the u.s. courts to use drones for example various additional legal questions that the rows are about time i suspect it's coming quite close given the pressure. because you'll be here with the business news very shortly but first let's check out some other world news stories this hour supporters of the maldives for the president are taking to the streets of the capital to demand his reinstatement demonstrators have seized several police stations comes hours after the new leader called for a unity government to be formed the ousting of previous president mohamed nasheed was triggered by a police mutiny and popular protest over his controversial decision to arrest a top judge. a man from the debris of a factory in eastern pakistan two days after it collapsed the number killed in the incident currently stands at twenty one with most of the victims women and children

the building was reportedly destroyed when several gas cylinders exploded the factory was set up illegally continue to operate even though authorities would close it down three times. israel's largest labor union is in the midst of a nationwide strike shutting down government offices banks and public services radio technicians also took part in the strike leaving only silence on state run airwaves union leaders are protesting against the use of contract workers significantly less than direct employees officials or call for an end to the strike saying it will cost the economy more than one million dollars each day. brings up take for the moment as promised kate is next with the business update. thank you bill hello. world renowned scientists futurist an entrepreneur as are most discussing the russian economy and its prospects of becoming a global financial hub most of them believe russia has the results is to succeed in

a culture of polls not with our full. the auditorium was jam packed with business owners and exports hungry to get an outside view on russia's investment climate a walk can be done to improve it all the foreign specialists agreed on the one thing and that is that russia has a lot of potential but the problem is how to realize it more investors are in emerging economies like russia right now because they're seen as the best place to support cash given the economic uncertainty in europe and the u.s. at the moment of russia locks the global competitive edge and many of the russian experts here today said that the country has many internal problems which need to be fixed and a symbol of the government should join forces with the business elite to make the changes required they believe that it's important to convince local businessmen to invest in russia rather than abroad and keep specialists in the country as well as

create an atmosphere where on supreme yours are appreciated another one of the main points they will see in the vacation russians they companies have significantly increased investment towards that so the foreign specialists here say that russia has all the potential to produce the next generation of entrepreneurs and become the next silicon valley but it needs to act fast and start implementing the changes required now. time to look at the markets will start with the exchange rates the year is high against both the on the variable investors are keeping an eye on the great debt talks and agreement from athens to impose new spending cuts will allow it to receive the next along. amount of rescue funds are the ruble of all to its highest level in five months against the dollar lot on the back of those strong oil prices now the u.s. markets they opened up in the black but have since arrived those gains as you can

see the dow jones is over a quarter of a percent in the red and the nasdaq is flat to negative there they two concerns about the greek situation. and over to europe that let's see how they're getting on and they are both down now as a say that greek situation is relying on investors sentiment as you can see the footsie is a quarter of a cent down on the dax is flat to negative. on the russian markets they are indeed. now they had a bet today they closed in the black the my six finished a third of percent by the r.t.s. was a point six percent in positive territory. we're going to take a look at the stocks and see how they got on most of the blue chips to all the world today sperm bank going to almost two percent to call finished higher supported by stronger crude bucking the trend i was a food retailer seven continent i did the course well the company made an offer to

buy back shares at a discount to the market price. for a car from a troika dollars says investors are a lot ahead of chinese inflation figures due out. investors are expecting. important news from china which will be released this night this is a number you for we see that inflation is slowing down. that's will create very good sentiments many will be rules will be sinking the central bank of china. lending rules and we can see more liquidity from china. american energy john x. so my bill wants to sell his gas and. vaal sack no one filled to gasp wrong as according to the gulf in our second region the thirty percent stake is estimated at around one billion dollars say the deal could be financed with cash or a share swap exon earlier wanted to export lease gas how is

a gas from says it must be sold on the domestic market which should be far less profitable for exxon. interesting stuff ok i'll be back shortly in the meantime get over to our website www dot com for trash business feels more in the.

top stories this hour rusher insists that an end to the bloodshed in syria will only be found if both government and opposition forces lay down their arms and talk as well western gulf countries keep up regime change rhetoric and recall their ambassadors from damascus. also if you're in the u.k. is on a tourist terror suspect dubbed al-qaeda spiritual leader in europe is bailed and allowed back into the streets of london after the european court of human rights blocks his deportation. and the first signs of a rift between the u.s. and post mubarak egypt caro's says washington's threats to. change its position on the so-called crackdown on western n.g.o.s. i'll be back with an update for you in

fifteen thirty minutes from now in the meantime we cross to washington to take a look at where business and politics meet in the capital account with lauren lyster this is. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and ben bernanke testified on capitol hill again today the big question from the media how would last week's good u.s. jobs report affect monetary policy while bernanke he actually said the numbers understate weakness in labor but is the debate over the monthly jobs numbers simply moot ronald reagan's former budget director says the numbers are made up so is the b.l.s. the emperor with no clothes and if so why are markets in the media going along with it and greece has agreed to lay off thousands of public workers as talks are scheduled to continue over more cuts over meeting more terms to get its next dose

of troika money politicians and media are bracing for the market's reaction to any development what about the reaction of greek citizens to more austerity without any light visibility and it is dark tunnel. those protesters were chanting out with the nazis not exactly a sign of european brotherhood we'll look at the bailouts cost to society and the u.s. forty eight states have signed on to a twenty five billion dollars settlement with the five biggest banks guilty of foreclosure abuses such as robo signing but who would this provide relief to exactly homeowners or big banks author and former goldman sachs managing director nomi prins will give us the real scoop let's get to today's capital account.

so federal reserve chairman ben bernanke he testified before the senate today last week remember he testified before the house and the media that i saw today was wanting to hear if the good u.s. jobs numbers that came out since bernanke he had last spoke in would change anything about monetary policy or about what he said now remember the jobs report has been deemed good because the headline unemployment number went down a little bit to eight point three percent now bernanke he actually said this understates the weakness of the labor market in that hearing today but here's the thing do these monthly numbers even matter people who crunched them seem to say maybe not david stockman reagan's former budget director in an e-mail that's come

out says you basically can pick and choose what you want from the reports to support your thesis or the trends that you want to highlight he says in short if you spend a little time with these numbers you'll know that they're being made up and this kind of echoes what others that i've been talking about this week john mauldin a financial expert was writing about saying that these numbers are subject to larger visions up or down so taken with a grain of salt and if that's the case and the bureau of labor statistics who puts them out is then the emperor wearing no clothes coming out with these meaningless numbers each month why are markets in the media hanging on them and speaking of news that the markets and the media hang on greek leaders are still in talks over a debt deal that actually got postponed a little bit but then before that they did agree to some more public cuts to workers there's more to come but forget the market and look at the reaction on the streets of greece ok.

so those are some protesters burning the german flag that you just saw chanting out with the nazis so how long will greeks continue to bear the weight of austerity with no end in sight and of policies being pushed by people they don't know working together with politicians they don't trust and these talks that go on with greek leaders and detroit international lenders we wish we could have insight into what goes on behind those closed doors but we can't so we'll just have to imagine help us. are they just talking to themselves making it seem like they're having a fight when really they're working as one to push through these reforms and again at what cost to society well here to talk about it nomi prins author of black

tuesday. the vocal put it right there she's also former managing director at goldman sachs. and we're so happy to have her again on this show know me welcome back to capital count nice to see you thanks for being here i know you were tweeting earlier today about this situation in greece what would be your message to the private sector and to the i.m.f. as we're seeing pain inflicted once again on greek citizens at the mercy of international lenders and a government led not just by a technocrat in charge but by leaders of political parties that become deeply unpopular and are trusted. it's tremendously sad and what i tweeted was something to the effect of if iran greece or someone with any form of true humanity and feeling for the population and the economy of greece was actually running greece then the decision would be to forego paying bondholders to forgo making arrangements with the international banking community with specific

private means or through the i.m.f. or the e.c.b. and so sorry we're actually going to take care of our citizens the ones that are in the streets the ones that are losing jobs the ones that can't afford homes the ones that have inadequate health care and so forth those are the people we'd actually be trying to boost rather than external foreign lenders bond holders and derivatives players and what is so sad and so unfortunate is that the people in power that includes in greece that includes throughout the central entities these major banks obviously don't care and continue to make the situation worse for the population agrees and what i don't understand me is it seems like the conventional wisdom doesn't even allow that there would be these other options some like what you're talking about i want to play a little bit of what ben bernanke you said on the hill about it today and then i'll get your reaction countries like greece and portugal have really no option they

have they could not borrow. they were excluded excluded from the private market they're relying now already hundred percent on the i.m.f. and european union for funding in. it order to qualify for that funding they've got to show they've got to play to restore fiscal balance. so he acts like you know something like default isn't even an option but yet putting greece into this trajectory they just will continue this depression where any kind of of the money that the country makes is just going to interest payments under the weight of this huge debt that is the best option why isn't default or debt forgiveness even on the table or part of the conversation well ben bernanke of course is one of the bailout architects for the united states banks and he along with treasury secretary tim geithner and the administration here have made it very clear that they want bailouts to continue because bailouts mean that banks get paid the bondholders get

paid that money markets in the united states or are kept whole that there's no crazy losses going on in the financial community and that's what they know that's where they come from and that's what they support the idea of forgiving debt the idea of even allowing a population to heal itself rather than have from it extracted its future its economic future in order to pay bailouts isn't on the table because that's not in their philosophy because they don't feel the pain they're probably not watching the people in the streets and if they are they're thinking hey you know these people ran up their own death they were like people wanted pensions and they had to be paid in greece was all out of bounds and so now we need to rein it in and that's basically what ben bernanke he was saying in different words in a speech this morning that's what the leaders across europe have been saying that somehow greece needs to restrain itself as opposed to all of the banks the derivatives players the bond holders that bet on greece. and in doing so made the cost of running greece higher for greece and by coming out and wanting their money

back and wanting it extracted from the future or economic livelihoods of the population they feel they'll be made whole or even accept a small loss but that's better than than nothing and they want to accept as little a loss as they possibly can and i totally the philosophy yeah i totally hear you know me and because you mentioned money market funds let's bring this to the us because investors have been fretting over how a greek bond default would affect money market funds in recent months reportedly firms have moved to reduce their exposure to european banks but nonetheless the s.e.c. is now reacting and there are reportedly close to a proposal to regulate the money market fund industry a two point seven trillion dollar industry i know know me that it's easy for us to be cynical rightfully so over these kind of regulations and we're not fortune tellers but i'm just curious if you think that this could be a step in the right direction. well this is the one thing one of the things that

the s. and c. has has said or proposed that actually makes some kind of a sense to make sure that the money market industry that is. not supported by the government although it had to be supported by the federal reserve in the treasury department back when lehman was falling apart and people were extract in their funds quite quickly and there was sort of a run on money market funds and they wanted to stop that run so they basically backstopped or or guaranteed for certain losses which they then took away a couple years after that so what's being proposed in the i.c.c. is a combination of do we ensure that if there is a run on funds if investors want to take money out of funds there's a stop on that i disagree with that i don't i think of the festers want to take their money and investors include you know regular people and people with pension money who is allocated to money market funds and so forth they should not be stopped out of taking their money out if there's a loss on the other hand i believe that there should be restrictions on the types

of securities that money markets can invest in they were they were created to supposedly invest in safe securities and what happened in the wake of lehman brothers and leading up to that run was that money market managers were investing in pieces of c.d.o. is and pieces of other types of securities that might have been rated aaa but as we know clearly didn't have that zero kind of a risk so there can be restrictions on money markets but i think that's going to continue to be debated now between the money market managers and the f.c.c. to see what really comes out of that discussion right of course that's where we really see these things fall apart but you made a really interesting point which is that these money market funds are designed to be safe yet we've seen them take risks why do you think we've seen them take these risks on europe do you think this is an unintended consequence of the fed keeping interest rates so low as zero percent in the u.s. . you have to keep in money of zero percent means that anyone who's in a money market fund that's investing in safe securities the treasury and so forth is getting very little return on it so the money market managers are saying well if

we can't return money to our customers we need to go somewhere where it's more risky the interest rate is higher in order to provide them a return so that they will give us their money so it's kind of this catch twenty two rates are low so they look for higher risk that's exactly by the way why the subprime catastrophe started happening because rates were so low in the beginning part of the two thousands of banks look for other ways and other places to extract high interest rates from and hence we saw what happened from a fourteen trillion dollar toxic asset scheme that was based upon that situation right now if they're looking towards europe for higher rates that's that's the reason but what is they're doing is really betting on european countries and then when money markets come out of that bet it hurts the countries even further so it's it's a negative catch twenty two in that respect and what about the impact of dollars lines that the fed open for european banks is that kind of a backdoor bailout for these money market funds. it's more of

a bailout for the banks themselves to some extent for the money market funds that are customers of the banks in other words the managers that buy their securities from the banks that are really the bigger players in europe and so forth and it was definitely a backdoor bailout for those banks and a lot of it in the fed even said this is the time when it made the swap loans available went to helping the united states banks who had by their own choice exposure to your and that exposure was not simply lending money to greece but it was a wanted to privatize contracts an immense amount of speculative risk that should not have been backstop but of course was ok and then i just i want to touch on this because of course ben bernanke the big question of him was how is he going to respond to the new jobs numbers that came out on friday for the united states and then there's people coming out saying who cares these jobs numbers are so massaged so subject to revisions up or down don't put a lot of stock in them do you agree. yeah the reality is on the one hand ben

bernanke he wants to play both sides he wants to and will keep interest rates low so the banks will continue to get cheap money so they can continue to look solvent so they can continue to grow their derivatives books and other types of trading and he can ignore that so that's why he's kind of saying you know take these jobless claims these jobless numbers which came out on friday and had the appearance of a lower unemployment rate with a grain of salt playing both sides and i guess those numbers can be interpreted in a lot of different ways and the reality is we still have a tremendous number of people unemployed the participation rate the number of people who are even bothering to keep looking for jobs is at its highest rate in thirty years the nature of the types of jobs and the amount of money that they provide when people can find them is right slower relative to the cost of living so there are so many qualitative measures that still have to write those numbers no matter how you debate that absolutely such a good start meaningless and know me i want to ask you one more follow up on that

we have to go to a quick break but when we come back we will have more with author nomi prins. and still ahead relief may soon be on its way to homeowners who have lost their homes to foreclosure fraud but it's a settlement that would require banks to provide these billions of dollars to good to be true we'll continue our conversation with nomi prins first your closing market numbers. here is that so much. in which of course on a. facebook initial public offering is being called a very big deal and many homes are people believe the entire tech sector but is the . old.

technology innovation all the developments around russia we've got a few jerks harbored. welcome back let's talk about another aspect of the u.s. economy that is it healing or is having a hard time in the u.s. it's housing and forty states have signed on to a twenty five billion dollars settlement with the five biggest banks that are guilty of foreclosure abuses such as robo signing of documents but who would this really provide relief to homeowners or is this kind of a good deal for the big banks that are part of this settlement will no mean prince is back author of black tuesday to talk more about this know me before we get to that i just want to follow up with one thing on the b.l.s. numbers because if you're.