innovation all the developments from around russia we've got the future covered. this is r.t. the international news broadcaster from moscow thanks for being with us kevin over the headline update now clashes in istanbul with protesters angry at hillary clinton's visit to the five and a half million dollars to the syrian rebels as she discussed his plans for a future without president assad. while qatar reportedly tried to bribe syria's ambassador to mauritania to side with the rebels with promises of a million dollars and political asylum. in the u.s. says it. shows there's no nuclear weapon in the works she gets but a leading paper reports that an israeli strike on iran could begin. next insight into how to try to keep the eurozone countries afloat by sending them their

separate ways. today i'm at capital economics talking to roger bootle he's the head of the winning team in the wolfson prize 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 entry i was fascinated by the question that lord will some posed and as i thought about it i quickly became aware that no one of the release 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 to the people of the departing countries 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 most and we suggest that the conversion rate between euro's and direct must 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 one of the perhaps even two to one against the euro

and then the banks open again on the money. choose the 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 the rules now between euro's and drachma because now the euro is treated as a foreign currency and this really they're not going to have some coins available i think a lot of people have 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 for small transactions that require cash then. 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 where 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 to one rate 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 that operate to do currency into pricing system and this all sounds very simple in times of in terms of real 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. but i haven't come back that the change is going to stand in on the greek lore and greek courts but are going to be all sorts of contracts involving known greek citizens where there's going to be a lot of legal argy bargy because let's say a german credit for the sake of argument is not going to want his asset converted into drachma and he's going to argue that the contract was framed in euro's it should still be in euro's and in greece they're going to say oh 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 the contract would be interpreted and which occasions it would be in euro's and that would minimize the scope for legal argument the other major issue is not the complication it's the 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 in completely transformed because in a flash greece is more competitive not the grinding deflation they would tell fifteen years but instant pain is lee 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 greek 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 if you compare that situation to the austerity that the greeks are now

facing which. would you say it's a better plan i think there's no doubt 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 solve the grinding process of trying to bring. takes years decades correct sort of a credit to greece is going through and what's more it raises the real value of debt to greece and the other we can members of the euro face not one key 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 then leaving the euro off to that europe file seem to fear the breakup of the year is they not some kind of ahmed getting do you think that's where listed 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 hang together but i doubt it i think if greece leaves before very long concert countries will leave as well where they 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 france with some northern core remaining so in terms of thinking what might happen i think these people are absolutely right with regard to the consequences though i think they're completely wrong in the sense that you have to ask yourself from the leaders of europe have to ask themselves how can you imagine prosperity and stability for europe

under the current setup one. is the mechanism through which countries are of the moment malard in not just a recession but frankly a depression through which those countries can regain prosperity economic growth and stability 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 what 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 limited 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 continue traveling 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 the output of 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 market for example is so desperate to keep the year is a 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 that 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 completely convinced by any of them but one thing the thing to bear in mind is foreign exchange markets are notoriously short sighted

and the argument against the euro has always been that essentially it will collapse through the weight of 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 feels we could come true 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 investing or are we looking at a return to dollar denomination for example oh i think that. 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 holland greece and. 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. currency area very much presumably the way that the germany used to be run under the doj model and accordingly i think investors will like the currency really very much thank you very much. isolation and prejudice. aging. do it with passion.

to fly. jump to the top. ignore the pain. stage your show.

headlines clashes with protesters angry at hillary clinton's visit over five and a half million dollars to the syrian rebels as she discusses plans for a future without the president to say. well qatar fourteen tries to bribe syria's ambassador to mauritania to side with the rebels with promises of a million dollars in political asylum. and the u.s. says. shows there's no nuclear weapon in the works yet but a leading paper reports that an israeli strike from the b. of an. this is r t next world sport for you. hello and welcome to the latest sports news here the headlines golden girl you get

here and i about retains her olympic gold as russia claims they want to make gymnastics. while gold will russia's gay carryout kinda set a new olympic record in winning the men's fifty kilometer will. and champions for the city to claim their biggest win over spartak in sixty three years with a five nil drubbing of their ten man rivals to stay at the top of the russian premier league. so let's go straight to london where there have been even more medals for russia on day fifteen of the a limp eight games you get to come out of a has become the first wrist make gymnast to win two olympic all around titles the she defended her gold medal on beijing the twenty two year old posted the highest score in three of the four events two points had made that yes we need to have a new ball ny all the rest to grauman's while the each of us was delighted with her

silver medal as a nineteen year old with only added to the russian team earlier this month because of an injury to the examples but cool it. can set a new olympic record in winning the men's fifty kilometer walk the russian broke away with ten kilometers to go and went on to win in three hours thirty five minutes and fifty nine seconds australia's jared talent match the silver medal he won in four years ago in beijing while china is playing this third round on the water you are the guy and alexander just turncoat won gold in the men's two hundred meter kayak sprint battery six silver and great britain problems. while in women's basketball russia is taking on australia in the bronze medal game this is the third time in russia. has been in the olympics third place playoffs and have won the last two. where the runners up at previous olympics thirty eight thirty to australia at the moment. while there was a shot at wembley stadium where mexico won their first ever big football gold at

the expense of now three time silver medalist brazil two one how do you break that also killed the ball home inside thirty seconds after manchester united right back rafael was caught in possession twenty minutes runs on another final third from peralta was offside when the striker made no mistake five minutes later running in on mark to power after he had home his second from a free kick holcomb pulled a goal back in a frantic stoppage time and new chelsea signing also headed over for five yards that mexico hung on for a famous and this is a victory when on friday russia clinched gold in the team synchronized swimming adding to their victory in the u.s. to complete their fourth successive and the big sweep of the medals russia's complex moves gained more marks than anyone else in both the technical and free routines and it seemed finished with a whopping one hundred ninety seven points out of a possible two hundred three points ahead of china and for fear of spain. does a lot of the me. but i think the point difference between ourselves in china tells

the story you need to know who are the better team and of course we are delighted. you will know what while the world champion cup the analysts saying go to god of the women's hama the russian broke the olympic record with their first throw and then again with a fifth of seventy eight point one eight meters. and russia also clinched their fourth gold medal in wrestling jamal out also part of becoming the latest olympic champion after beating georgia's. really two rounds to nail in the freestyle fifty five kilogram category denise took the bronze in the seventy four division there are six more finals to be contested. while in the boxing ring your mark on serve is russia's only hope for gold and is guaranteed a silver after going through to the final of the light heavyweight division however three of his teammates have to settle for bronze flyweight world champion. lost in the semifinal as a delight flyweight i had a pet yan and welterweight. and in the meantime russia's men are guaranteed at

least as over in volleyball their ranks number two in the world and beat ball garia three sets to one who will face top seeds of brazil in the final however the best the men's basketball team could get is bronze after they lost to spain sixty seven points to fifty nine in that semifinal russia will now play argentina to decide the third place finishers and spain will take on top seeds the usa to decide the gold medal. haul in other news the usa won the women's four by one hundred meter relay in a new world record the quartet of tianna madison allyson felix bianca knight and commonly to g ticket time a fifty point eight seconds shattering the previous best of forty one point three seven set by germany twenty seven years ago the jamaicans took silver with a national record of forty one point four one while ukraine two bronze tending champions russia expelled. to qualify for the final. while the bahamas spectacularly beat the usa to win the men's four by four hundred meter relay the

americans were the hot favorites but the team of chris brown demetrius pinda michael materia and ramon miller edges them by point three three of a second to win in two minutes fifty six point seven two seconds trinidad and tobago change the brits. and in the meantime russia are targeting medals in the men's and women's events of the modern pentathlon which is celebrating one hundred years at the olympics and robert but i'm young but the sydney champion dimitris about russia's chances of a repeat performance in the. with a more than contestant advance at the london twelve summer olympics getting underway on saturday we're joined by the two thousand olympic champion russia's meter is what go ski three things were done first of all do you think the sport has changed dramatically over the last twelve years and become more competitive with death was becoming tougher to bit simply tougher to bit. the last twelve years of

the double change so much and two. major issues changes during can last last years the first was the eevee united. running and shooting right now calling combined when its last event a result of old age and it will be the final final step for the four medals and the second one the worse allows a piece of it will be very interesting and of course the for last two years the. the us these four months it's very interesting for t.v. force because haters for anybody and because you have absolutely always on expected result. yes for russia's chances we get number one is soon and two time olympic champion under namely see if sounds very impressive. yes of course for the last. few olympics we got some medals of course the expect and some medals here

and because good great athletic at least like you and they may save two time olympic champion the up you're absolutely right and alexander was so on there's a young generation who is there will be next. on the big period by two thousand and sixteen two thousand and twenty and of course we expect good results expect just medals began during we see if he's a very experienced their foot while. he's making his olympic debut do think he's go it takes to handle that psychological pressure on him for alexander of course and some pressure before lympics because he's a young kid youngest at least usually of course in the morn there was before lympics there are the other which are on strike on the day that's a v. expect in the. union of experience in the young as for the women's of and we've got to have the gear. and you can get in the rest can i what do you think about their chances. the chances for some medals and. our

video interview will be wrong so bronze medal very very well by the way to close to get you give goals will be good fans and the right so it turns out that we can hope for gold medal in the men's of around and maybe probably bronze medal in the women's libber on bronze yes but that's a podium but. they expect it's a combination of course that it will be anything but the one thank you dmitry thank you so much thank you. is the man who's already been there and done that and he's prediction for russia sounds very good keeping my fingers crossed robert for the new m r t london. now into football and run should all cough struck twice as in a try out five nil it's time to ten man spartak moscow to maintain their one hundred percent record at the top of the russian premier league wasn't dominated an

uneven battle of the needs top two with maxine can only call putting them head to quarter of an hour but the decisive action came in the second half of the me of the straw for maybe two nil off to fifty two minutes and then within ten crazy minutes the out believe that did not have a chance to pull it all back but missed his spot kick. immediately made it three nil then a spot aiden mcgeady saw straight red for what seemed an innocuous challenge and it defies united for nil victory one assured shock of wrapped up his brace up to the death as an eight and a spot at one hundred percent record but kept their own to get three points clear at the top. while then he's pushed off mistake penalty in the seventh minute of stopping. time is lucky for twice paid back in the first half and had to settle for a two two draw at home to promote a deadline yet after have sent off seven minutes from time walter reich are

currently host involved in the late game which one of the head. how funny twice hockey where the russian and the twenty's thrashed canada six three and jaroslav all to tie their exhibition series and one or after losing the opening game three to the home side we're back with a vengeance after the sold out arena two thousand and local board to deal cup which didn't send the fans into a frenzy i scored three times to be rushed to a sweet six three when the tournament next moved to how i fax in canada for the final two matches and the walls talk to use dave's applying to each other to commemorate the fortieth anniversary of the summit series between the u.s.s.r. canada russia are led to point fast rising going forward now and the n.h.l. top draft pick says he's happy to be captain. i don't feel any pressure though it's just it's who persist for me to be captain it was my dream and i just want to help my team win every game and. just. play hard work hard and

that's it. that's all from this was desk bike and.