welcome back you're watching r.t. live from moscow these are the top stories russia's president vladimir putin forms his u.s. parties pulling out of the g. eight summit in the state of maryland next week just days after wouldn't return to the top job instead he'll be sending prime minister dmitry medvedev to. the ford saying rescue teams are looking for bodies of the victims and trying to reach the crash site of a russian next generation airliner in indonesia. too strong explosions rocked damascus with dozens reported dead and injured the capital has recently been struck by a number of black mainly targeted at military installations the u.n.

warns a spate of violence could put its observer mission in jeopardy. while next we talk to the winner of the nobel prize for economics joseph arrow who tells r t how he thinks the eurozone debt crisis should be tackled. kenneth arrow professor of folk and omics americas at stanford university you're also the youngest nobel laureates to have been deported and awarded the prize in economics and ninety seven to two and really great to have you with us today. enjoy being here the global economy is still not fully recovered from the recent financial crisis so now we have an economy saying that we're going to go to another global recession another round or we're going to have another way for of crisis hit

us what's your take on that i think the answer is we don't know. it leave it at that the american economy seems to be recovering on a fairly solid basis slow but i don't see any any particular obvious instability you know. the european debt crisis is not being thoroughly result but at the moment all the media fires have been did damp and i was that they're not put out with their reduced. i am disturbed about the tendency which is partly through the united states but much more true in some parts of europe of too much austerity when we have. a condition of deep deficient demand massive unemployment i think rio the idea that you want to stimulate the economy. through government spending or some other good way tax decreases is pretty clear we could be recovering faster from our problems the

united states but we are we do and we haven't gone to the extremes of say great britain or. france or germany that has maintained a good economy so i move word of the recovery will be slower than need be here absolutely right the recession fears are actually the highest among the european union countries what. future do you see for a crease it has defaulted here weeks ago it really that bad ever was so scared of it so really that bad obviously creates problems for greece and that lenders may say well they defaulted what's the default again. you know there's not much evidence that countries default than we go ahead to quite a nice recovery in the past. people be difficult for greece to borrow money but maybe that's a good thing that will maintain discipline now i think i think they made

a mistake by not the forty year earlier. said that they have to think that would have saved them it would have the look they got themselves into bad trouble. by overspending it was no i think as any conceivable course they ran up with a deficit that was. during times of prosperity that was not. not could not sustainable. they read that goes back to the olympics as a tool for which they probably should never have undertaken it was too much too much too costly for coverage for greece now there are fundamental there are also fundamental long run problems with the greece as there is with a couple of other economies there they have rigidities in these are but these are real problems not that financial problems they add but they are. it into the financial problems they have rigid labor laws we have for greece has what seemed to

be extraordinarily generous social security system in far more generous the united states which could afford it a lot better. there are people retiring very early then of course they have a problem with recent tax. recoveries going to collect the taxes it's good being big problems but you don't think that greece will leave the euro i don't think so maybe they should by the way but i don't think they. throw the euro is that it's very difficult to break away from it it can be done but the big price to pay is going to be paid media. like all these things benefits make her the long run so to greece. well you see it was interesting if greece had had not been in the euro it probably would have been able to borrow the money that it. was going to lead to drachmas because they were. a nobody but they demanded i interest rate so they would have been much worse off well we are better off actually because they have been disciplined i think he's been allowed to run down badly there were some

periods but twenty or thirty years ago when it looked like it was going out but in the short term political advantage led to conceding this one and see that one and then of course the corruption and the lack of trust to have adequate tax collection which is my impression is enormous and i'm not at all sure it's been thirty rectified by the current reforms painful as they are because rich people the privileges of poor people don't do you think they maybe don't you know the fact that we see is hilly and spain default right after greece i really think it leaking it but i don't see the it's it is much better control over its economy. and spain not only the problems of spain really a for school at all they've been very prudent they've not run a big emphasis their problems entirely different they have very rigid labor laws. and these labor laws they could mean. higher unemployment during periods of prosperity so i think we this is really really

a hurdle to do with these euro bond problems that i think it's a credit rating for the sake of just because of the economy which is how. bad labor was but you are still under question because of countries like italy spain portugal greece where do you see time well i think you know there is an argument that you were a big mistake to begin with what do you think is it a bigger stomach i think is probably premature. and there is. having a currency without being of a single state it's got a lot of problems the realise that it's. essentially the central government giving out money to the poor part of the there's a problem if you have money for poor parts people can move one place to another of course they can move in the european union but language is a problem of languages are much much harder to move in europe than does the united

states even apart more now you've said in the beginning of the interview that the united states is getting itself out of the mess slowly but securely from what we know u.s. step now stands at almost sixteen trillion us dollars exceeding d.d.p. . will that continue to create instability for the global financial system and how will the us exactly cope well that well of course i think of it greatly exaggerated for political reasons we have got we have apparently a big debt problem of the moment that the interest rates the way they are and how this is easily better for. not a great strain of course we assume good faith sort of at some point rise and that as you turn over that it's going to be going to has to what you borrow one percent of attempting to borrow. look. the basic problem is medical costs our medical care system is extremely inefficient

very expensive we have pretty well most twenty percent it's seventeen or eighteen percent of national income goes to a medical remember half that's private by the way but half of that's public and this is squeezing everything. so security is a bit of a problem i think as such here is a minor issue. the things that are not health the not. social security first thing i think would be cut in a very unfortunate way because many of them were point factors for example our education systems is under attack financially we can california we have a we have been cutting. education is right now because of the as a recipe for disaster my goodness i know that you were in your teens when the great depression happened in the state of member very vividly love each other but you don't feel like anything like that is to is happening right now in america now you know oh there's no comparison this is the i mean this is this is the worst thing

since the great depression ok question people feel like the government has preferred banks to them at this point and they're asking where where where is my bailout do you think they have a point where all this is of although there's a certain amount of sense of how they believe is true that the we have an economic system a financial system to be more precise which has led and i think. through the rather directly led to the very large negative value of the american people these people in the incomes of these people are now getting back to the. recession levels. there is there is a sense in which the inequality of income has the inequality has gotten a lot worse whether that is not to do the recession that was going on well before the recession and people were noticing that the inequality of income inequality i

think up there do you think it will grow in the united states will last i don't know very part of it is a question of taxation course that's not the only reason there is also a problem of foreign trade a manufacturing jobs have gone overseas china now we still strong and great many industries our exports are going to manufacturing jobs are rising today but the manufacturing was that was the way by which you have high growth with high income jobs i mean you know middle middling but middle income jobs for people who are not very successful educationally. and that this is a has gone down greatly what do you make of occupy wall street what do you think it feeds off well first i thought it was ridiculous that seem to have no they have no proposals no but it has changed the national attitude you have you big company quality has become on the political agenda and i must do that i think very well of that professor thank you very much for this interview frederick.

wealthy british style. markets why not us come to find out what's really happening to the global economy

with max cause or for a no holds barred look at the global financial headlines tune into cars a report on our cheek. use. want. to get an. odd. but.

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the. russian president what are important for his u.s. counterpart he's pulling out of the g. eight summit in the state of maryland next week it comes just days after put in return to the top job instead he'll be sending prime minister dmitry medvedev. reports a rescue teams are looking for bodies of the victims and trying to reach the crash site of a russian next generation airliner in indonesia. and the two strong explosions rocked damascus with dozens reported dead and injured the capital has recently been struck by a number of blasts mainly targeted at military installations the u.n. warns a spate of violence could put its observer mission in jeopardy. as the headlines here in our tale go back to the top of the hour with more updates for you in the meantime let's see what's happening in sports with paul.

thank you very much marina welcome to the world of sports here is what's coming up european masters athletico madrid athletic bilbao three nil in bucharest two in their second europa league title in three years. it is all flown peterson's world title rematch with i'm a colony is cancelled after the light welterweight champion sailed around and drugs to. the sky's the limit and sky running spaniard louis handle it sets a new record as he reaches the peak of martel horse in just three hours and forty one minutes. before us athletic or madrid have won their second europa league title in three years they beat fellow spanish side athletic bilbao three mail in bucharest it was a rather one sided contest from start to finish with striker falcao scoring twice in the first half to put his side firmly in control if you go in the first place in

history to win the competition with two different clubs in two years in colombia and also now has twenty nine goals in the tournament in twenty nine appearances diego completed the scoring with five minutes to go down and to pick themselves up out of the company all right final later this month. words can't express the joy that i feel now after everything that was said when i arrived at athletico madrid some people say to that it was a mistake to sign me and i would like to say now publicly that those who criticize me they made the mistake we've had ups and downs and difficult moments but i think we really deserve to finish the season like this and let me sit on this i feel personally responsible for this result the difference between the two teams is not as great at what we've seen tonight on the pitch so as i say i feel totally responsible for this result very well action on the pitch was marred by trouble off it in the spanish capital. clashes broke out between police and fire and

celebrating our place because when several thousand people poured into a city center square where police were fences up in a failed attempt to prevent the crowd from blocking traffic the violence started when a small group of fans started throwing bottles and other objects out police reinforcements entered the square to try and push the crowd back several of the rest were. meanwhile there's a brand new name on the russian car celebrating the first ever win in the competition following victory over it in a moscow it was a cagey a faggy catalan bug was looking like extra time before rubin's romano out and then carry on the way that twelve minutes from time one nil the final score as the numbers raised for a cup conquest now stretches eight games. elsewhere canada has moved top of the ice hockey world championship after a narrow three two victory over switzerland in helsinki the reigning olympic champions had come back from a goal down catamaran gets laughs called the win in the third period in the other

group a game slovakia big kazakstan a fourth. in the meantime in stockholm co-hosts sweden have kept their one hundred percent record for their fourth straight victory this week with germany five two while norway which we face russia play their next game in group b. later on thursday against denmark. now to the news that boxing fans had feared the light welterweight world title rematch between long peterson and i'm a card has been called off the bows scheduled for may the nineteenth has been cancelled after the world champion failed a random drug test pages and tested positive for synthetic testosterone in march where he was negative in a follow up test last month the twenty eight year old i.d.'s and w.p.a. belt holder can't get a hearing until four days before the flight forcing its cancellation card when i'll fight for the vacant belts against an unnamed opponent on june thirtieth. in the n.b.a. playoffs miami heat of reach the sec. around at the expense of the new york knicks

their one hundred six ninety four when on wednesday and sure enough for one victory in the best of seven series the star man in game five of bron james he finished with twenty nine points eight rebounds and seven assists they now face indiana pacers in the eastern conference semifinals series begins on sunday while the memphis grizzlies are still alive in their series with the los angeles clippers they want to game five ninety two eighty game six in the series is on friday as for the hits while their attention now turns to round two. every time you advance and a series you grow because you go through adversity you go through some tough times and you have to learn how to make adjustments but stay true to your identity the whole time and learn how to put a team away now to tennis and both roger federer and rafael nadal are through to the third round of the madrid masters although the world number three federer was given a scare along the way he lost the first set six four games canadian. his experience

to avoid his earliest tournament in two years sixteen time grand slam winner eventually claiming second set seven five for winning a title. yeah you know i knew it was going to be extremely difficult match for me already played thank you clay court tennis to do is really quick and it really you know is a great serve so it worked well for me here and for a long time it looked like i was going to come out of it and i just hung in there got a little look at time served well the times and a really good tie breaker and in the third i'm extremely happy well there were no such problems for clay course specialist rafael nadal however he came through his second round match with russian in straight sets six two six two by the comfortable nature of his victory the spaniard echoed concerns from novak djokovic about the slippery call i always had my best would be to be ready to play. good conditions when i'm playing in madrid when the term in the was in in the in

the tournament is now we now do so. right here. knowing the conditions will be difficult so you never arrive before you know when tournament in the women's event number four seed agnus cover advance guy needed just an hour and five minutes to dispatch sort of army of italy six love six one of the dominant schooling to tell you the winning streak he won in miami earlier this year looking in on this form once again. the running where a new record has been set here in russia where we have hundreds reaching the peak of mt albert in just three hours and forty one minutes are a mountain a constant to top off was their. montiel bruce is playing host of the sky running world series for the first time europe's highest mountain has always been one of the most sought after climbs for dead air belts around the world and the inaugural

sky race where their fleets ran not walked to speak turned out to be a great spectacle. starting from thirty five hundred meters above sea level human simply couldn't absorb oxygen properly that means breathing is hard work in itself but this guy runners and letting that get in their way they're just a nation the summit of mt ill bruce the more experienced runners started from two thousand three hundred meters with this summit touching the sky at five thousand six carnew it and forty two they quibble and off fifty football fields italy's market i guess perry won the first race of the season at the vertical kilometer event and was eager to repeat his success but it was his fellow reigning sky run a world series champion luis i'll bet at their demand outsider who braved the snow and moved mountains to stop the clock at three hours and forty one minutes. the

race was a little longer than i'm used to and the altitude makes this something special it was very hard to get to the finish line but it's really great we had a chance to compete at such a great course. while six time world mountain running champion the guess perry was second to the top a minute behind the thirty five year olds been. fantastic for me is a great experience today and you know happy because when i left from my town you know and. to get to the. to go to the top of the europe you know and i did it not too many runners dared to challenge russia's call that their opening stage of the world series but those who did will surely remember their missing year for it's leaving the event to become a significant stop on the sky running map because they about. bruce

now finally international cyclist mark victory day in style here in the russian capital the last one hundred thirty kilometers stage of the five rings of moscow right stop traffic on the usually gridlocked garden ring russia for team to show was the overall leader after four days of competition. advantage on the final day claiming overall victory even step which finished second. rounded off the podium in place. i'm happy with the second place because today. you showed that at the first hint for the bonus. i do you lose because i made mistakes just because you were stronger here fresh legs at the end. but did you do i want one. which was really important for me that. i got happy. well that is all this poll from gallup poll for you in a little under two hours time joining that.

good news a secret lover a tour to mccurry was able to build the news most sophisticated robots which unfortunately doesn't give a darn about anything tunes mission to teach music creation why it should care about humans and world this is why you should care only on dot com. you know 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.

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