this is one way or another subordinated to a global power masters so to speak to the money powers because in a way all governments whether it's in greece in italy in spain in the u.k. in argentina all governments today have two choices they can either government for the people which means governing against the bankers or they can govern to free will by and growth and that means that they will be always be against the people and it's so sad to see the same sickening scene time and again taking to the streets they are repressed by the police would tear gas they throw stones somebody gets injured hundreds get in somebody always and of getting killed and i always figure that it's the poor people on the streets fighting the police were also poor and i always wonder if there are a cigar smoking perched on the fiftieth floor boardrooms looking down of these horrific scenes and just laughing at it all but you mentioned a pattern earlier and you mention a pattern you said this happened in argentina you mention that this happened in the

asian tiger economies at the same time i eventually they did get back on their feet and if history is just a pattern holds up too well what you say especially including that given the current stability relative stability in argentina and the potential that we're seeing now from these asian tiger countries that eventually things do get better i mean do you think this can continue following that pattern. this is different because a greece is within the euro zone so there are other interest will ensure that greece is mouth leader because one of the solutions that any country has used to work with its own currency however greece does not have its own currency is fear and so you travel from frankfurt our nine european central bank one wheel auction where they saw in greece does have to revert back to the drachma just like a sovereign state should revert back to the pursuit in the saddle and if you should revert back to be our leader however all of this can only happen if we have real sovereign governments in power and i think that this system goes he's in i'm sure that whoever governs the country as we saw with the part of him was i will see it

with both trilateral commission members they will always unfortunately end up governing in favor of the bankers and ensuring that government will bail out the banks or not the people in a way these people remind me a little bit of allowing a monkey to take care of a banana shot you know the projected results can be. already an international course or the author thanks for your insight thank you. r t cross talk also focuses on the greek financial predicament that's coming your way later this hour the kitten cost of the bailout rescue take a look. change is clear germany you give me the cash to survive given my debt problem and i'll give you my sovereignty but will the public actually comply will they agree to accept the pain of this austerity and will they agree to submit the most important sovereign aspect which is your school your pledges to

technocrats in brussels that are not answerable to your population through a means of managing to get going to me there's nothing and that's i might's i might be provocative here but that's all it is the best if you can even imagine a moment at the front. population decline one of the toughest problems facing russia in the long term but the disturbing trend can be reversed according to the country's prime minister and his latest campaign article in his bid to return to the presidential seat what amir putin put forward plans for so sure a poor reform he will significantly improve the demographic situation propose measures include better welfare for families with many children smarter immigration policies including the repatriation of russians living abroad the article entitled building justice also focuses on salary hikes for teachers and doctors as well as making housing more affordable to everyone by twenty thirty putin has stepped up

his election campaign in the light of recent mass opposition protests as political analyst dimitri babbage explains now mainly addresses russia's middle class. and my whole place of that would have known the stance that he said after it right now it's not the reach you know reach seeking people he said encourage these are the real russian media requests and the people who you know they leave in small towns who have a really hard time at that. to their market economy c.d.'s so i hold here economic policy will move a little more to it and you know we had a former finance minister who did we know that different people to the right know if we believe what we have rights he wants to gear the states more but he's really would occur which means you know the mass of the russian people can always find more on our top stories that are to dot com here's what's a political way right now. stripping down to shake things up find out the enemy in

truth behind the message that ukrainian activists in very popular tactics used on a visit to russia was. nothing says i love you like a cockroach find out more about the creepy crawly little valentine's day gift some love birds are sharing with their sweethearts are largely done. corinne is up next with the business news stay with us you're on our team. and welcome to business here in our c thanks for joining me there's been a burst of interest in russian shares since the beginning of the year returning growth in the u.s. and progress with europe's debt is fueling appetite for risk last year more than eighteen billion dollars for the country this year has been an inflow of one

billion dollars. from grayson's as acknowledges says the perception of russia is changing. there has been a change of attitude towards the russian made with the market since the beginning of the euro and. demonstrated by the pond but the russian equity market has outperformed the markets in the world so to give you a plate of russian stuff nearly twenty percent think the beginning of the year where the u.s. market has gone up only by seven percent since the beginning of the certainty over the politiques and seems to have subsided very much market pick that patients now and mr putin will come back as president and the one difference which we have relative to this time last year is that there are bigger expectations for reform one. bike and president. let's look at the markets now you're close in the black on monday after greece's parliament approved the austerity bill banks are among the

main gainers across europe mining stocks were also high as the stronger your help boost the price of copper and other metals carry russian markets ended high as well otherwise it's against the most in five weeks energy majors were among the biggest advances let's check on the index most of the markets gas bomb finished in the black hole to use its european market share grew by four percentage points to twenty seven percent last year the worst make us biggest mining company of bats the most in amongst high prices from a cold point is gold and the lower i'll use merger talks between the company after another minor public metal have failed. russia's fast growing food retail market keeps on luring foreign investors seven eleven has won a world renowned food chain thought to be eyeing up the market the company has officially kind of from the rumors last year the retailer said its priorities were brazil and india analysts say that seven eleven will have

a hard time it's developed a food chain in russia alone the most logical move would be to team up with an existing market player this house is senior vice president at wal-mart believes there are just a couple of ways to enter the country's market at the moment. only the way for an from crush market for to be in. the least visible on the market or dragon for loose a position is through the vision of some of existing players or and from just with e-commerce solution when you don't need your store spittal saw i think within the next year some other companies will think about rush market them they way to win for the market and that's all the business is find more stories on our website r.t. dot com. as.

a mother. would be soo much brighter if you knew the song from the funniest impressionists. muslim stunts on t.v. don't come.

technology innovation all the bell against simple around smugly jump the queue jerk coverage. of any. one simply. simply. to turn a cause on single mum. julie old wants to see this on forever.

if. i was. wealthy british style it's sometimes difficult. to. type. markets why not come if why not what's really happening to the global economy in the cosmic war on r g.

c. six. eleven thirty pm in moscow these iraqi headlines israel accusing iran of being behind bomb attacks targeting israeli embassies in georgia india which more people are thought to have been injured. russia says it regrets arab league guiding down its observers work in syria and stresses a proposed peacekeeping mission can only be deployed once government and opposition forces are agreed to cease fire. by the protests in athens followed by chaos and

looting as public outrage escalates after the greek parliament passes a new austerity bill here another round if you catch a crippling austerity imposed on the people of greece also the center of the debate in today's cross-talk program coming up. lists. technology and innovation all the elements around. the future are. low and bulky across time people about in these hard times there's no shortage of austerity in the slashing of budgets and the sweeping of the welfare state generate

jobs and returns to prosperity and is the pursuit of austerity carrot cake a democratic libya. to. live up to cross talk austerity measures around the world i'm joined by people now bring in london she is president and founder of prince a palace asset management also in london we have fragged his cause philippe is he is a senior lecturer in international business at the university of kent and your new york across the dimitri poppy dimitrios he's the executive vice president of bard college try focus is cross talk rose in effect that means you can jump in anytime you want dimitri if i go to you first the new york can austerity bring back prosperity because we have unemployment is right on the crease particularly in the euro zone and the prospects for employment are pretty bleak how can you have prosperity when there's so much unemployment and people would say austerity creates unemployment because of the loss of jobs in the public sector.

linus terry the. climbing moment or declining economy is not the right medicine clearly prosperity can only come when there is an increase in demand an increase in demand if you doesn't come from the private sector you need to come from the public sector so therefore when one talks about us if you want to not be as general this existence can bring prosperity clearly you are an unemployment rate of over eight point three percent as it was in the united states cannot happen by itself the private markets are less the the forecast showing but the economy actually will grow but growth doesn't come with a lot of kony and we have seen that in europe as well or where there would be in the southern tier southern economies in europe or even some of the north of

economies france and germany is actually experiencing some decline in trends ok people what do you think about that i mean i mean we see our sturdy it with a vengeance in europe and we even go through southern europe are all the way up to germany the french are be experiencing it as well how can is this the right formula and dimitri says it's not right for me and to bring us back to prosperity because a lot more and more people are just being a misery. yeah well i think look the bottom line is it's really interesting people won't agree to us territory or comply with us terry if things are getting better you kind of need to be in bad times to get people to understand how serious a debt problem is and that it needs to be addressed i mean nobody was interested in addressing the debt problem during the boom it's only during the bust the people start to understand why but it is true that austerity doesn't alone create price prosperity what does create prosperity are small entrepreneurs and this is really

important two thirds of the net new jobs in all industrialized economies are created by companies that employ less than fifty people now when government is shrinking this actually does create some opportunities for the private sector and new york city recently announced that they can't afford to keep the public buildings clean anymore so they privatized the contracts with some private company got a five million dollar contract i'm all for that but doesn't create prosperity overnight no and doesn't create prosperity by itself definitely not it's what creates it is innovation and change but the fact is that when you have spend and you earn you can't make your way back to prosperity until you fix your debt problem that's one of the reasons we can't fix the debt problem by adding more debt to it it just pushes the problem into the future so it's not the key to growth that doesn't make growth happen but you also can't have sustainable growth if you don't do it ok if

sailing procures course what do you think about that what is to formulate and where does all sturdy play in all of this here dmitri things we're doing at the wrong time it's very very interesting observation what do you think. well i think i think both speakers have some points were very very important yes dimitri made the point about growth and obviously we need to always remember that that is not just an absolute number is basically as a proportion of the gross national product of its country and then i think people mention one word which is really really crucial which is innovation i think what we're seeing though at the moment and the main problem that we're seeing at the moment is the austerity is not equally distributed amongst the different parts of the population so effectively you get some people paying more than others without necessarily deserving done and the other thing is you you you apply austerity always on telly and this is going back to what people said about innovation you apply austerity result only you achieve nothing and the government will still need

to build infrastructure the government will still need to educate people because that's that's the basic role of the government and this is how the through the upgrade of human capital you can actually create people that small and medium enterprises can then employ and innovate and create new knowledge and take the economy forward so i think the problem is not as simple as you know we need to spend more money or we need to allow small small or medium enterprises to glow i think what we're liking at the moment is two things this fair distribution of austerity measures that's one and the second thing is the strategy of that action which i don't see it happening in anywhere in the world at the moment we all talking about cuts which is fine yes we need to sense all governments need to send a signal to the different markets financial markets primarily who look like they don't need the world at the moment but on the other hand you need to think how you spend your money in a more effect even more efficient way and where you spend your money is the key

question that we need to address i think that's a key question we go back to dmitri that's a paperweight ok people go ahead but that's a political decision that's very interesting that's a political decision not necessarily for the common sense going here. but that is the point that all these decisions are just are and that's why i want to follow on from that comment to say look austerity is one way and which a state defaults and the real issue here is the burden of debt is so we normally us that human beings can't bear the pain of paying it off so one of the ways in which a default can occur well you can do the argentine style we'll just never pay back when you don't have to do us terry or you can do with the greeks are doing which is will pay you back but a little later and a little less that's the haircut option we're going to see a lot of that in europe the third is austerity the state defaults on you the citizen makes you pay more taxes makes you work harder makes you retire later all that stuff doesn't pick up your rubbish anymore the fourth option is inflation and that's what the u.k. is doing and i would argue that's how the u.s.

is going to vote on its debt ultimately and then the last option is devaluation which you may or may not be able to do depending on the situation but the point is a spirit is only one way of achieving a default and so it is correct you have to think where does the burden of pain fall on the citizens depending on each of these choices and that is a political decision i mean or you want to jump in there go ahead. but you know yes i think or studied these are very loaded word and i think it's very difficult for us to determine how do we define clearly horizontal was thirty years old to appropriate measure to apply it one has to determine why is if it were brought to the position to apply it was there it is you know it was thirteen the united states is different on those thirty greens nature greece does not have its own currency only aids in the united states it has its own its own currency so there's one k.'s

to be made in greece could default the united states cannot default so there is a difference between between those two also when we're allowed to did to increase we have to. find actually why and how didn't koreans it's not easy to suggest that somehow or other since all the. counters in the euro zone were allowed to borrow the banks were allowed to borrow at the very low interest rates and pile up on on the government debt which was then a little bit higher so they can make their profits this is not all there is to turn out and say well we allowed this to happen but now it's time that the party's over and therefore the population has to pay for the ok do it regularly a very significant capital london franco's and what's really interesting here is the big the greek situation opposed it was like going on in the united states is that we greeks have just lost their sovereignty i mean like it or not it's berlin

in frankfurt and brussels they're vanishing their economy and they're in there this is something that's really a stark departure from what people thought the european union was supposed to be about go ahead the the problem the problem is that germany and france are not managing the greek economy or just managing the great beds and over the last over the last couple of days i haven't heard anything about how we can return the economy to growth we're still looking at very some very deep recession figures for the greek economy for the rest of the year last night the indication was that the economy will shrink another five percent until the end of this year and someone made the scenario about the returning to growth in twenty thirteen which i don't necessarily see happening and the just thing be cation that germany and france are going to create this new fund where all the money that they're giving to greece are going to go in order to pay the the. basically the greek debt off instead of money

being spent on the economy itself develop the infrastructure it's there not managing the greek economy there's nothing and that's i am i it's i might be provocative here but that's all those be. even allowed a monetary fund. if people find out to you i mean that's what i mean if you're right you should go ahead dimitri and i will go to the break i had you yes i think i think it was you know that greece does not have any industrial base and it's basically a consolidation economy so you're absolutely correct and your hundred thirty billion euros are going to be used to actually rule over the dead or the ready exists and there are forty two and need to do anything in terms of a girl establishing a girl's palace for the greek economy to grow so you're right in two thousand and thirteen is a pure fantasy to expect the greece is going to grow it is not possible for agrees to actually set to actually develop. surpluses so they can actually service instead the debt is going to be that high and it's not going to be salvaged with

these new gallup that people find out even more i you know you are right because before i die before we go to the break here i mean that paying off the debt let's be clear it's paying banks ok and this is their game. and this is this saving the banks a banking system i mean the average person in the right has nothing to do with the average person in athens correct and that is why long the end now for greece to default they have to actually exit the euro and get control of the current seeing jack all right we're going to go to insure all right we're going to go to a short break here and after that short break we'll continue our discussion i stared stage with our city.

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you seem. to talk about the magic we're talking about austerity in troubled times super. super. dimitry new york i'd like to go to you i'd like to read a quote from angola merkel she said in this crisis we have reached a whole new level of cooperation we have arrived at a sort of european home affairs europe is to mastic policy that's a remarkable statement because that's that's a very incredible political statement because we're talking about fiscal and political union to the max now because greece has lost its sovereignty of law it's lost its economic decision making ability and if trends continue others caught

small countries within the euro zone well also follow suit. this may be a remarkable political statement but not an inspiring state because you think that with one talks about it fiscal union or one has to be able to understand what this means the united states of europe need to be thought as a guy just states of america you know just as america has this center of fiscal fiscal agent that's called the united states treasury that does not exist in europe what exists in europe is that every country cannot have a budget deficit above the three percent and to also furthermore that from now on every county in the eurozone should not give in have three percent reduction have a constitutional amendment but it should be even much lower than bad even a one percent except in some difficult times this is not what i would call the fiscal union this is it is not possible for every member of the eurozone

group to create surpluses so that it is possible to vend the euro the euro zone to be in a and even keel based on the definition of the odds. of america believes and presidents are going to make immediate pain stay with you when you're i mean i can say with you when you're given a but when countries join the european union i'm sorry the eurozone he didn't sign up to this kind of economic policy at all did they i mean this is turning into a straitjacket i mean people didn't vote for this they voted to have a common currency the end these were talking about oh you're rationally correct because the euro goes a euro project is an incomplete project you cannot have a monetary union without the fiscal you know and along the same lines in the united states and you can have a political union where you know all of the powers that be was created by the euro zone.