killed by an american drone strike along with three other suspected militants the attack took place close to the border with afghanistan but a monsoor is thought to have killed dozens of people in the country and abroad that comes after the bureau of investing of journalism found hundreds of civilians have died because of similar cia ordered aerial attacks. a criminal court in the mall visas issued an arrest warrant for us to president mohamed nasheed this comes a day after the leader was among dozens injured when rather police used force against protesters as unrest deepened his asking resulted from a police mutiny and popular protest over a controversial decision to arrest a top charge nasheed claims he was forced to resign at gunpoint and promises to return to office. to his troops who killed thirteen kurdish insurgents in two separate clashes in turkey nine people died near the town of bingle and four others near the town of sirte after rebels attacked a military station there it's less than a week since turkish warplanes bombed three suspected rebel targets in northern iraq tens of thousands of died since ninety four in the kurds fight for autonomy in

turkey's southeast. spanish human rights judge baltasar garzon has been convicted as part of a what up in case he's found guilty of ordering the illegal recording of corruption suspects talking to their lawyers has now been barred from practicing for eleven years with no chance to appeal against the decision to spend it gained international fame for his attempts to extradite chile's former dictator augusto pinochet back in one nine hundred ninety eight. self-assertive presidential candidate. has been reportedly been hospitalized after police stormed her headquarters in the capital vile authorities say they wanted her for questioning over an attack on the country's central election committee last year g.o.p. ever was one of the front runners of last november's disputed election which was a null that by the a certain supremes court due to a number of violations had been planning to hold her immigration on thursday despite the fact that fresh elections are due to be held next month yet. head of

the republic called action and attempted coup so officers a former georgian republic gained independence in two thousand and eight following a brief war with georgia. we could always find more news online just log on to r.t. dot com here's what's waiting for you there right now. at the anniversary army why egypt's new government is deploying more tanks and troops across the country just one year after the fall of mubarak's regime. also the painful aftershocks of the war heavily armed fighters carry out a bloody attack on a refugee camp on the outskirts of tripoli you can read the analysis on that online at r.t. dot com. in a moment it's katie with the business but for now join r.t. on an adventurous tour of russia with our close up team.

we've traveled almost a thousand kilometers east of moscow to the early offscreen the main city is best known as the birthplace of let me lenin during the soviet times the region flourished as the center of the country's military and aviation industries but as counteract she's been finding out it has all the potential to win back that reputation. it was in the late seventy's that the riyadh of skin dust real aviation complex was created obvious star is one of the largest manufacturers of passenger planes as well as re modernizing of existing cargo planes that travel worldwide there islam plane is one of the largest operating cargo aircraft originally designed for the russian military but when the soviet union fell a demand did too obvious star has been renovating existing response and are now planning a major comeback. a new construction line will launch which will cover the production and the modernization of unique airplanes in the world that are popular such as the roost one that was long. voted new but airlines have used their roussillon

freighters to assist in un and red cross relief projects but they'll haul satellites yachts and even the sukhoi superjet two can imagine the two thousand killers of those this brother who brought it from africa to north from the europe for a. special celebration with ali also transported one hundred thousand kilos of beaujolais wine from france to japan he says without ever breaking a single bottle many little boys dream of becoming pilots but the path to get there isn't always an easy one here the only one of six civil aviation school it's the only place in russia where one can get a higher education with courses offered in academics meteorology and over one hundred fifty hours of. like time. the students start to train in these models which gives them the complete feeling of what it's like to sit in a real aircraft during flight. and it's

true the images on the screen and vibrations of the simulator made even me feel like i could be a pilot i'm joined today by all the director of corporate communications of the united aircraft corporation thank you for being with us olga since obvious star has been in existence since one thousand nine hundred eighty how do you evaluate the development of the corporation today we are working together was. the new strategy adopted in two thousand and eleven the new strategy comprises the development of two majors segments international space industry it's military aviation its commercial aviation and its transport of a short order the major perspectives the goals of other star an audiologist and russia throughout now we are working over the realization of the program of building of aircraft and we have to get first orders for the aircraft.

coming up to twenty four minutes past the hour here in moscow business update is next for catching. thank you bill hello to you welcome to the business program at this hour we start with the story that's got the whole of the russian market talking minority shareholders and the country's second largest bank vitti bay are to get all the money back they invested in the company's i.p.o. in two thousand and seven that's despite the share price currently being hauled off the list price. business analyst daniel bushell has more. the to be will buy these shares the price investors paid in two thousand and seven so-called people's lives here with thirteen point six copecks it's almost double what the

current share price is which is seven copecks the duma putin says the money will come from the lenders profits not from state funds although the government will remain the main shareholder but will buy up to sixteen thousand dollars worth of shares from each shareholder in total the move will cost the bank up to six hundred million dollars that's one fifth of the tepees net profit post today said such buybacks won't happen again. we live in a special time characterized by deep in prolonged financial crisis the instruments that work for decades are failing today otherwise the germans would not be rescuing the greeks the e.c.b. would not be giving interest free loans and of course such moves cannot be the room every investor must understand he's responsible for the shares he bought but in russia this was one of the first share placements and back in two thousand and seven none of us really understood the world was heading towards a global recession one. hundred cost in there some ordinary people do feel tricked

by lavish advertising for the public i.p.o. back in two thousand and seven which suggested big returns with a low risk of losses the buyback will happen within a month in other words before mr curtin stands in presidential elections on march fourth her some see the move as following the voice of the t.v. minority shareholders paid for by the bank's main institutional investors they're being excluded from the buyback and have threatened to sue analysts invest cafe calculate based on the balance sheet the current share price of seven copecks is actually the fair one. the prime minister has also discussed another plan likely to pose to the electorate putin sets a way must be found to close the subject of unfair privatizations in the one thousand nine says he suggested that the tycoons that took control of the country's resources should pay a one time fade he acknowledged that the process of privatization after the

collapse of the soviet union was just honest the exact details of the plan have not been walked toweled houston said there should be done with the public and. the markets stocks in europe closed higher off the deal was struck in greece and as you can see investors were really they finished the day session on an optimistic note that the footsie up around a third of a percent on the downs over hoffa percent impulsive territory. it was a different story though here in moscow the markets closed in the red as you can see the my sex dropped almost a percent while they are. a third of a percent. on the individual moves there let's see how they got on today google finished up a half a percent in the red cross net was nearly two and a half percent in the rads. was a point four percent down following the buyback and now it's. also the business

news when else. the headlines are up next.

well for the future science technology innovation all the latest developments from around russia we've got the future covered.

with you twenty four hours a day r.t. live in moscow top stories now the u.n. is considering a joint mission with the arab league to end the bloodshed in syria but with other conflicting reports of the number of casualties proving hard to get a true picture of events. the greek government plans more sturdy cuts to secure one hundred thirty billion euro bailout amid public anger but the technocrats in brussels say even these measures won't be enough to win the rescue plan. and as europe plans on by going to run their concerns a move could hit countries most dependent on the rain in crude like spain.

but i'll be back with more on those stories and other developments when a half an hour from now meantime we cross to washington to take a look at business and politics meeting capitol account with. you're watching. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. here are your headlines for wednesday february eight u.s. republican presidential hopeful rick santorum won all three republican voting contest last night let me remind you of some of his thoughts on foreign policy. on occasion finances were you know the nuclear program in iran turned up dead. i think

that's a wonderful but. a wonderful thing he's also advocated airstrikes verdun nuclear facilities in iran now as we hear the drumbeat of war from the west towards iran we often see war in politics as separate from the economy they are not putting aside the human cost will look at the price of economic sanctions and any conflict for energy prices currency wars and any global recovery speaking of currency wars the man who wrote the book on the subject is in studio jim rickards after making the rounds to fans on capitol hill before heading to the lion's den of the u.s. treasury he's here to give us the inside scoop and ben bernanke the federal reserve chairman has been on the hill a couple times lately telling lawmakers he does not want higher inflation. but once we were not going to seek higher inflation in order to advance unemployment. the dude said policies belie those words to borrow from jim work

records is burning he the warrants and wealth of our time conducting fed policy with help from the same tricks. and the money would. you get it that was a bubble machine we'll talk about it let's get to today's capital account. from currency wars to actual wars we're going to break it all down for you today first what you could call the war on the us dollar you have ben bernanke the federal reserve chairman testifying

a couple times on the hill recently saying hey we don't want higher inflation at the fed we won't tolerate it but well listen to an example we're not going to seek higher inflation in order to advance unemployment. it's possible that you know because we don't control in the short run perfectly obvious leave inflation unemployment to do you could have shocks that would drive both objectives away from their target it would and currency wars author jim record says in a recent op ed to paraphrase hey wait a minute a higher inflation is exactly what the fed wants inflation to limp dollar an asset bubbles are all in a day's work just think of ben bernanke he is the modern day lawrence welk. with the boys does the show on the way with shuffle rhythm somebody. i do. see that conducting the orchestra with a little help from the bubble machine now if winter is prepare for inflation what

does that mean does that mean by oil and gold well we'll talk about it and speaking of oil this of course brings us to iran a conflict between the west and iran according to some analysts could mean one hundred fifty dollars a barrel oil even two hundred fifty dollars a barrel oil and with the win of rick santorum and three u.s. republican presidential nomination contest last night we're reminded of that possibility. asian scientists working on the nuclear program in iran turned up dead . i think that's a wonderful thing. but i think we should send a very clear message he goes on part of his plan would be if iran doesn't meet u.s. demands there would be airstrikes very public airstrikes on nuclear facilities in iran and the washington post just reported u.s. defense secretary leon panetta believes israel could attack iran as early as this spring so let's talk about all of this soup to nuts currency wars to the actual ones the man i had to talk about is just the man jim rickards the senior managing

director of tangent capital partners an officer of this best seller currency wars and we're so thrilled to have you in studio nice to see you thank you are nice to be here first i just have to thank you for being so sweet in your support of our coverage of davos that was really just very sweet where we were following it closely you were on the ground and you were getting firsthand reports and it was great reporting thank you thank you let's move on to your fantastic reporting and i have this great op ed for i mean you and i want to start with the burning because he's been on the hill a couple times and people really focused on the dual mandate because some are really interested in inflation and some are really interested and poignant and there's really this idea that one has to do with the other is their relationship between the two as maybe economic models would imply well historically it's been very actually very little relationship between inflation and unemployment we've seen examples in the late seventy's early eighty's where we have high inflation and high unemployment we had to invent a new word for it called stagflation the old phillips curve trade off where

inflation could be lower but unemployment could be higher that was the theory it never worked out in practice the fact is you can get bad results from both gauges that was the misery index that ronald reagan talked about and i think we'll see something like that again you know when the chairman says he doesn't see current place and with regard to the unemployment mandate he does see car inflation with regard to cheapening the value of the dollar this is what the currency wars are all about this for. little doubt they're talking two percent inflation what they want is four percent inflation they want to shock people into thinking that inflation is coming like a runaway freight train so will do what about borrow spend and get their refrigerator get the t.v. set by whiskey sets the senator to try to get the economy moving the problem is just creating another bubble another bubble and just to confirm so the phillips curve is just not even relevant very little have high unemployment and high inflation as the seventy's show very little in purple support for that ok let's stick to inflation because i want to bring up this chart that we saw in zero hedge

it shows the growth and the size of the b.o.j. the e.c.b. and the fed's balance sheet over the past year and a half increased by thirty two percent i'm curious how much you think this is driven by these banks trying to prop up asset prices as we've seen in the u.s. and europe certainly and how much is competitive devaluation of the kind that you write about in your book that well i think the answer is it's both i mean you've got to prop up acid valuations to protect the banks you know if housing and commercial real estate and stocks and others found their true non-manipulative level the level they would reach without money printing about the central banks they'd all be in trouble so that's part of it but then they're also trying to kind of inflate their way out of that that make the debt cheaper as i've said before it will say to china here's the trillion dollars we owe you but it's not worth you know you can't buy a car with a phrase that is we're going to we're going to print our way out of it and store clear that's what the united states has done so again i just the by the way two percent inflation the chairman of the press conference answering reporters' questions he made it sound and on the go we can live with two percent two percent

will cut the value of a dollar by seventy five percent in a normal life time it's you know thirty five years that's a half and then thirty five more years it's in half again four percent inflation will cut the value of the dollar in half by the time you're young children go to college the value of the dollars cut in half so if two percent of four percent are cancerous these are not benign rates of inflation i'd like to see zero which means price stability and you know we speak about that too i want to talk a little about zero percent. interest rates because you have to talk about currency wars you have a really poignant part in your book where you're talking about how couples actually committed suicide by putting their heads in ovens to have you know the garbage monoxide poisoning right and why margarine many when there was hyperinflation i'm not at all comparing the united states to that situation but there is a situation of zero percent interest rates of savers not being able to save and it being dismissed as oh ok you know the economy is bad so savers should be able to say but isn't this the backbone of. the economy that's exactly where one of the economist paul krugman and others remember doc you talk about consumption and

government spending and they have this notion this kinsey and notion of get demand and they said we're not buying enough stuff the consumer is not there so we need government spending to make up the shortfall in consumer spending but there's another component of g.d.p. it's called investment why they would forget the investment account let's have savings because i think they like a consumer driven economy they like inflation they like to belt the banks why not have an investment to have an economy encourage savings instead of forcing savers to go out buy riskier assets one that rewards savers when we raise interest rates make us a magnet for savings from around the world and by the way while we're germany you know economists like to say well we cheapen the value of the dollar but so what your wages went up so it all comes out the wash that may be true on average but it's not true individual by individual there are winners and losers but we know the winners are their heads funds their bankers people who buy gold people buy the hard assets the losers are you know teachers firemen people a lot of the pension insurance policies and nobody's any one of the fixed income

their savings or wrote it by the fed's policy so it's really a wealth transfer from everyday americans to the elites have a really good point it's a while transfer windows way when you know people don't often frame it in that way and it's so important to do i want to ask you about one currency wars related story that's just recently come out because we were talking about the g three central banks new data shows that japan has used what they're calling stealth intervention in november to stem yang. gains because earnings are getting hammered with some of their export from cars to electronics is this a kind of covert special ops currency wars with stealth intervention sure we've seen it in china with stealth purchases of gold and now in japan with stuff intervention they're all just variations of the currency wars and remember the thing about a currency war it's a zero sum game not everybody can chip in at once if somebody is going to get cheaper somebody else is going to have be more expensive see the winners and losers lately you know that we've been trying to fend the treasure been trying to cheapen the dollar which by the way implies the stronger your own the stronger yen but you

have an extra export driven economy they need to achieve and to promote their exports so looks like the focus a lot on the u.s. china currency were those u.s. japan currency were going on also when you see the u.s. come out and criticize japan's move but isn't the u.s. doing the same thing the u.s. is the biggest currency manipulator in the world look all major countries manipulate their currencies in this big can of the chinese do it the japanese do it the europeans to the u.s. just better than anybody else because we would bigger printing press and we sort of say hey you want to print money we'll show you how to print money we'll print more by the way this is the key to q e three if you see a weak dollar there might not be easy but if you see a stronger dollar a dollar holding its own that's the green light for q three and i think the fed chairman has signaled that in the series of reach we've seen speeches and interviews and you can see these in coming probably in may or june and may or june is your prediction rex you'll probably be right because you're not with the mainstream economic economist pack that is often wrong about come back even though we'll see you do over that's how that's how it looks from home and i want you to

just to back up quickly when you said you think the fed is creating a bubble where do you think we're going to see that. sure well the place you see is in gold that's the ultimate cross trade and you know gold did have that many boom in august and then backed off a little bit but now it's back up into the mid seventy's fifty's i think that will continue to get stronger we're seeing in oil prices so that's really a geo political factor because of what's going on in the persian gulf but remember . if you can see and that's a bubble of surprises just hold their own if they're supposed to go down if we need lower prices to clear markets and create new investment but they were up here even if they're not skyrocketing that's a form of inflation based on the difference between where they are and where they should be normally if the if it was not being manipulated and so that's a different kind of that's a bubble but the fed we're seeing in the stock market i've actually said this will be a good year for stocks not not based on fundamentals but based on money pretty wall street loves free money yeah they sure love easy money speaking of geopolitical issues let's talk about iran with rick santorum winning several of the primaries

last night i was going back through his sound bites at the saber rattling at iran and he's certainly not alone i mean there are reports that there could be an israeli attack this spring i'm from multiple sources first let's talk about the currency war aspect though because you were telling me that there's a whole financial warfare aspect of this and there was that report that like looking back at ron has been diversifying out of the dollar and into gold and then we've seen economic sanctions which have frozen the central bank and them from trading in gold so there seems to be this whole currency war aspect there too so maybe you could speak to this there is i mean iran has been trying to get out of the get there in dollars in world markets by selling oil now the sanctions are tightening up lately but they have a they have a lot of dollars to their account they've been trying to buy gold they buy a lot of what's called scrap and scrap it's just a jewelry and so when it's gold in a lot of that smuggled in through dubai it can be melted down and turned and it gets that's one source of gold for them but what's going on right now they're sort of two kinds of currency were sort of the currency words we've been speaking about

us and china we are currencies to promote exports a value goes inflation but there's currency wars actual were fair and that's what's going on with the ram what the united states to the president post sanctions on the central bank of iran back more k.z. cut them out of the dollar system suddenly if you're a merchant in the rand and you need dollars to buy imports they had to double their local currency prices things went from two hundred thousand reales to four hundred thousand reales because they needed more realistic dollars on the block. market so they could get the dollars to import goods so their currency dropped forty percent against the dollar in one day then they imported hyperinflation and we injected hyperinflation into iraq because they had to raise the local currency prices the running banks raise their interest rates to twenty percent to stop a run on the back as people were pulling the reality out to dump them into hard assets so we gave them a trashed currency hyperinflation a twenty percent interest rates for weeks before the elections and this is not a coincidence in my view is what we're trying to do is generate regime change so this is sort of trying to reboot the green revolution part to put there are economy

to talk turmoil so that when the elections come in they will be rigged and people will be disappointed again maybe we'll get the green revolution to get all designed to get regime change to stop the nuclear program so it's a massive play i want to keep it continue on this conversation because of course there is the alternative of what if there actually is some kind of warfare a conflict i want to get your take on that we have to go to break quickly but we will be right back with with currency wars author jim rickards. and still ahead do not go away with money and ammunition what will be the only bite or less standing in the currency wars we'll talk gold with jim rickards but first your closing market number. well. it's technology innovation all the developments

around russia we. covered. welcome back we are here with jim rickards senior managing director of tangent capital partners author of currency wars before the break we were talking about financial warfare that is already being committed against iran in jim rickards view now let's talk about what would happen if there were actual warfare because first i want to know obviously you have g.o.p. saber rattling and some of these are.