during a mound anything. to teach me the creation of why you should care about humans in groups this is why you should care only dot com. four thirty pm here in moscow you're just in time for the headlines now. saudi fighters are said to have been captured in syria helping the rebels fight against president assad all of this in a conflict the now sees more civil servants being targeted for simply being employed by the government. three years that's the demand of the prosecution as the trial of the headline grabbing pussy riot has draws to a close here in moscow. two communications satellites lost in space after a russian rocket failed to place them in orbit on monday and then all could pose

a threat to other satellites as well as the international space station. by those are the headlines on our next laura smith interviews economist a roach of brutal he won the wolfson prize for developing a practical plan to dissolving the euro zone that's next here on out. today i'm at capital economics talking to roger bootle he's the head of the winning team in the wealth and price which is the competition to find the least disruptive way for a country to exit the euro logical thanks very much for talking to us now this wealth in prize the competition why was it important to you to put together such a strong and tree i was fascinated by the question that lot will some posed and as i thought about it i quickly became aware that no one to really satisfactorily even i think attempted to answer is no i thought we could learn a lot as well as contributing quite

a lot in trying to answer it and that's what we did and talk me through your winning entry very briefly country wanting to leave the euro must prepare a plan in secret among a very small group of senior ministers and officials pretty much as soon as the plan is agreed it must be enacted in order to prevent news leaking out the banks will have to be closed over the relevant period which is probably a week and during that period capital controls will be in place almost say the friday night it will be announced of the people of the departing country let's call it greece that from then on all the amounts that were in their bank accounts their pensions or whatever their wages prices which were formally expressed in euro's were now to be expressed in drachma as and we suggest that the conversion rate between euro's and direct most be one for one now a lot of people get this mixed up they think well in that case what about the

exchange rate on the exchanges there's no connection between the official conversion rate and what the drachma trades as and we're pretty sure it would trade at a much lower rate probably around while perhaps even two to one against the euro and then the banks open again on monday. or tuesday people putting their cards into a.t.m. so they can get euro's out of their bank accounts which are now expressed in drachma thing only get those out at the exchange rate rules now between euro zone the drachma because now the trend is treated as a foreign currency and this way they're not going to have notes and coins available i think a lot of people got fixated on that we argue it doesn't really matter for the overwhelming majority of transactions particularly business transactions they're done electronically anyway and people use cards debit cards and credit cards they continue to do all that only when they use them it's that they're actually

transacting to small transactions that require cash then gesture as greece carries on using euro's until new track when those are available but you raise the exchange rate at the new one on one parity with the with the drachma well what will tend to happen is that a price system will develop because people will know that. the same as euros although they've been converted to one for one right they'll tend to be a different price for euro cash as compared to. credit or direct debit cards that will be to some extent messy but it will be perfectly practical there are a lot of countries in the world operate to do currency into pricing system and this all sounds very simple in times of in terms of will people using real money are there other complications that kind of macroeconomic level well there are huge complications and problems on one of the biggest is going to concern the legal

position because what would happen at the point of the greece leaves the euro is it would read to nominate its debt its national debt into drachma. now as far as domestic greek residents and. not going to have an income by the change is going to stand in on the great glory and greed calls that are going to be all sorts of contracts involving non-green this is where there's going to be a lot of legal argy bargy because let's say a german creditor for the sake of argument is not going to want his asset converted into drachma and he's going to argue that this contract was framed in euro's it should still be in euro's and in greece they're going to say oh no it's now in drachma and so they're going to be arguments the courts could be heavily involved but the scope for that could also be reduced if you were his own government's reach an agreement on all this which i think they probably would then have to lay down

guidelines under which. a contract would be interpreted and dragged in which would be in your rose and that would minimize the scope for legal argument the other major issue is not just complication it's a reality is that initially this is going to be very far from a magic wand when the drachma falls on the exchanges the price of goods and services in greece is going to go up possibly by quite a lot so initially living standards are going to be squeezed far from bringing relief to the order a great person it's actually going to make matters worse initially however going forward things are then completely transformed because in a flash greece is more competitive not the grinding deflation they were ten or fifteen years but instant pain is li greece is forty or fifty or sixty percent more competitive than the demand for greek output is going to take off that doesn't happen overnight but in a matter of months that will happen greek exports will start to rise create imports

will fall and that will generate employment and more income in greece so there's a trade off a difficult period to go through first of all in order to secure later greater prosperity so if you compare that situation to the austerity that the greeks the now facing which. would you say it's a better plan i think there's no doubt that greece in my view needs to get out of the euro i cannot see any way in which this current policy of austerity is going to bring any relief or slow the rising process of trying to. take a decade or so to our credit freeze very much more grazes the real value of day to greece and the other we can members of the euro face not one problem but to their own competitive costs and prices are out of line with other countries in the euro and they're also saddled with very high levels of debt the problem with domestic deflation is in principle but the very badly but in principle it deals

with one of these problems namely the lack of competitiveness but at the cost of making the other problem debt even worse and what we're talking about is countries not only greece but possibly other countries that leaving the euro off to that your file seem to fear the breakup of the year is there not some kind of ahmed getting do you think that's where listed as well i think they're right to fear the breakup of the euro zone because. if greece for instance were to leave obviously we don't know how it would all work out suppose it's possible that the rest of the euro would then together but i doubt it i think if greece leaves before very long of us concerts countries will leave as well and will end up probably with the peripheral countries possibly all five of them say portugal italy ireland greece and spain or outside the euro possibly even joined by problems with some northern core remaining so in terms of thinking what might happen i think these people are absolutely right

with regard to the consequence is that i think they're completely wrong in the sense that you have to ask yourself when the leaders of europe have to all stem cells how can you imagine prosperity and stability for europe under the current setup was. is the mechanism through which countries of the moment malard in not just a recession but frankly a depression through which those countries can regain prosperity come across instability i wish they could tell us something along because all i hear whenever they have a summit is they keep banging on about various forms of debt support and never about economic growth now i do think it's possible to imagine return to economic growth in the current setup by contrast if the euro breaks i can imagine economic growth so far from being a disaster i think it could be the major step that leads to the restoration of growth in europe and was about these attempts to shore up the very same that we've

seen recently another bailout for greece cheap money flooding international banks from the e.c.b. they going to have any effect well i suppose it's possible to keep the whole show on the road that way if the northern countries are prepared to carry on shoveling this money into the southern countries although i frankly i think that there will come a limit because eventually the sums involved are going to be absolutely enormous and voters in the northern countries will say we don't want all this but even if the continued shoveling of money does take place which keeps the show on the road again that doesn't actually bring economic growth in the self all it's doing is preventing a financial collapse whereas these are countries that have undergone a very big drop in output and they've got huge levels of unemployment and is what we're seeing just purely a kind of fight between politics and economics is the reason that i'm going to muckle for example is so desperate to keep the areas they together because it's the major political project that germany has implemented over the last thirty years or

say i think the politics of the economics are really very closely intertwined and it's often difficult to work out where one stops and the other begins. i think you have to appreciate the european elites didn't have a pretty firm grasp. of the economics from the start now i think they're getting the economics completely wrong that's to say their opposition to the idea of their fear of the idea of euro break up isn't just about the politics they think that the economics point very strongly that way as well because they fear the financial chaos that would stem from the euro breakup and they don't see the benefits to economic growth so i think they are opposed on both economic and political grounds and we talk a lot about about that the collapse of the year essentially but all through this the currency has been oddly resilient hasn't it only really winding down now from quite a decent race against the dollar what do you put that down to i think this is

a really big puzzle quite why the euro has been so strong there are reasons that one can put forward or are not myself completely convinced by any of them but one thing the thing to bear in mind is foreign exchange markets on the tourist the short sighted the argument against the euro has always been that essentially it will collapse through the way through its own contradictions as to when people trade on able to world exchange markets tend not to like to bet on things like that you know something maybe next year maybe next month maybe in five years time it's not a really very solid thing to go on then there's also the question of what form the euro might take if it survives because it will we could countries leave the eurozone arguably the euro's going to be a strong currency so very far from selling it if you thought that sort of breakup was going to happen you ought to be buying it if the euro does become a current seed that applies to many fewer countries will it still retain its attractiveness for investors or are we looking at

a return to tell the gentleman nation for example oh i think that the euro could continue to be a very attractive currency indeed for many people it might be even more attractive if you could imagine what's going to happen is the departure of the weaker peripheral countries portugal italy and and greece. by. perhaps even problems that the euro is as it were great to dodge markets germany and its close satellites and it's going to be rob that car currency area very much presumably the way that germany used to be run to the doj mark accordingly i think investors bought a lot that currency really very much thank you very much.

good old started here. for going global and now it's cooling myrow. low again. choose your place take your stuff. to. make your statement. spread the word. you like street money. wealthy british style. that's not on. the. market why not come to. find out what's really happening to the global economy

with mike stronger for a no holds barred look at the global financial headlines tune in to kaiser report on. the headlines on r.t. turkish and saudi fighting. said to have been captured inside syria helping the rebels to fight against president assad it's in a conflict that now sees more civil servants targeted for simply being employed by the government. three years behind bars the demand of the prosecution as the trial of the headline grabbing pussy riot is draws to a close here in moscow. to communication satellites are lost in space after a russian rocket failed to place them into orbit on monday they now pose a possible threat to other satellites as well as the international space station. are now a time for the latest up to the made a big news with paul. thank

you very much rory welcome along to the sports headlines here is what we've got for you. best of seventeen year old allie mostafa goes for a second gold medal at the london olympics this time in the women's floor of. keeping up the pressure come from behind to be vulgar and move up to fourth in the russian premier league. and horse power combined once again at the russian wave surfing championships. but starting at the olympics and the russian pole vaulter yelena isinbayeva looks set to call time on her career after failing to retain her limb pick title the world record holder forced to settle for bronze in london however there was success

for russia on day ten despite the disappointment for it and by eva three former reports the russian pole vaulter failing to make it in historic three olympic golds in a row having to settle for bronze after failing to clear for me to seventy five the usa genesys did make that height to claim gold ahead of the silver byron standard the russian will be desperately disappointed before the game she did say this would be her last competition bringing to an end incredible career for the former olympic and world champion who has set twenty seven world records but while she was struggling did light up the track in the women steeplechase the russian claiming gold with a personal best of nine minutes six point seven two seconds the fastest time in the world this year adding the limpid title to her world and european cranes and there was a bronze for you can you claude in the women's shot put. joke and della reese got the gold elsewhere there was a tremendous gold for us. in the gymnastics seventeen year old staff and claiming

that the uneven bars beating the defending champion haye kicks in from china with an impressive score of sixteen point one three three and completing a fairytale comeback from a staff and paralympic dring pay to be in tatters just over a year ago when she repeatedly ligaments but she has balance back in style giving russia their first gold in artistic you mastic since sydney two thousand however former soviet great olga korbut says the country still needs more coaches. to pursue. their interests than. that which. will go away. with well tennis albion's in was doing his best to restore russian pride after a bronze in the floor exercise he got a silver in the vault behind korea's hexagon yak russia's artistic gymnasts now have seven medals compared to the two bronze they got in beijing elsewhere there was a second gold in two days for russia's greco-roman wrestler's this time is alan cooper

who's been in pick champion beating egypt cutting you put him in the final of the eighty four kilogram section the russian is ranked number five in the world in his previous best was a silver at the european championships but he showed a real step up in class to claim gold in london while saw quite a game of golf got bronze in the sixty kilogram section finally the fallout from russia's poor performance in the shooting continues the head coach had resigned in ny the head of the shooting union has said there was a bad spirit in the camp we had little. choice but i must admit psychology was a factor the team spirit was far from good but we have a lot to do this respect however they give their all of the impacts and i am proud of them all our team are still one of the best in the world we were very close to claiming much more podium places but luck wasn't on our side too. well elsewhere off the chances of success for russia on choose day out of qualified in second

place from the semifinals of the met men's three me to springboard diving competition will be going for gold in the final a little later on his compatriot you have game because nets off is a result of the defending champion chinese hey sean qualified in. the very latest medals table there and russia notoriously slow starters out a little bit games are slowly working their way up the table now in sixth place and just behind france the top five remain as you were with china in the usa leading the way. of staying on the olympic famous arena williams says she has no plans to retire after completing a career golden slam a she's now won all four grand slams plus gold at the olympics in singles and doubles so after she beat maria sharapova in the most one sided final ever and the american says she intends to defend her title in rio in four years' time right now i feel like i'm competing with with everyone else out there

pretty solid i. feel like i belong i'm not tired i'm enjoying myself so much. so i don't see indrani. i plan on being there and listening to something doesn't allow me to. i will be there. now way from the olympics and in russian football rubin had to battle from behind to be vulgar two one on monday moving up to fourth in the russian premier league in the process alexander kind of tone of the man opening the scoring for the hosts a quarter of an hour into the game. last until eleven minutes after the break got there is kind of dennis leveling matters after the goalkeeper could only parry an initial rubin shot and soon afterwards the carson men secured all three points. with a strike so blistering it falls in the camera man to want to be in the final score

a second win in a row for the title hopeful as. well that was all saying rubin moved up to fourth just a point behind the new force in russian football and j. well it's a perfect three from three for the two sides at the top spartak and reigning champions in it sure to have a considerable say where the title ends up this season. while the cream of the golfing crop are gearing up for the p.g.a. championship this weekend the world's top one hundred three players and over one hundred fifty in total aiming for glory in the final major of the sayings that stifling heat on the possibility of gusty atlantic winds just some of the challenges tiger woods in cairo have to contend with woods is to win his first major since the two thousand and eight u.s. open while graeme mcdowell is aiming to add his first p.g.a. title in almost two years and a second major championship to his twenty ten u.s. open trophy well number one a look donald has never experienced excess at any of the big four the englishman though clearly with his homework done on the south carolina course. it's

a great golf course. you know reserve where you have to last like it's reasonably generosity you know if the wind doesn't like it it was pretty mild today with in terms of wind conditions it does give you some opportunities greens are perfect you know it's very typical pete dye lot of grays greens a lot of. miscreants is going to be tricky. and finally the second the russian awake surfing championships while their moscow over the weekend plenty at stake for the adrenaline chases not least a trip to the world finals nicholai charles takes up the story. it was bound to happen sooner or later surfing with the help of an angel in this electrifying new sport is the lighting fires here in moscow wakes up in the new heat among lovers of wool to schools with waves it's a premium throughout most of russia riders must make do with the ones they create themselves by the help of a boat of the getting up on the wave using a toll road surface then discard an attempt to ride the wave in the fashion

reminiscent of the sport's more famous cousin while the president of the russian wake surfing federation says the news though is certain to be a winner among water sports innovating as the amount of participants our supporters as been growing every year with it and that is the objective of our work so we'll continue doing these championships every year but will change erath leads and improve the level of competition which i believe will make things even more exciting i work. most co-hosted the second day of a russian wake surfing championships as well as handing out medals the aim was also to produce more professional reuters as many contestants were only starting to get to grips with the sport but there were plenty of experience where it is keen to show off a skills one of them and us this year. and came third at the fourth annual world championships in arizona last year. last year i went there without any expectations i just wanted to see the real world championships to get to know the

world's greatest writers so i could talk to them and watch their talk last performances were basically that was my goal but i managed to finish third as well . what. would. you. that was another of the country's top performers young the gloomy enough who was crowned queen of the waves was like whoa oh it's from highly erin was in no mood to relinquish his crown when in the men's title for the second straight year so through some spills aplenty as the russian foreign minister come to a close the next stop for the top riders here though is the twenty twelve quakes i

think championships in arizona that's where the best of the best will gather to do battle for the sick and the running nicholai chills most of. all that is over from the water's pole for now but i'll be back with plenty more in just on the two hours' time here on off to join me that. oh. oh my. god. 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 harvey welcome to the big picture.

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