france's military is guarding one of the biggest uranium mines in ms yeah one its own is say they want a better mining deal with paris and could be looking for other partner countries. locals from recently liberated parts of miami claimed the france met a fence of against islamic militants as come at a high cost to civilian lives. as america's new top diplomat meets his team we hear of revelations that many in the foreign service but far more than just time to the country. and the opposition in kuwait val's to keep protesting against the country's unelected rulers after another activist is thrown behind bars for criticizing the monarchy.

from a new center here in moscow this is with you twenty four hours a day the president has confirmed that french troops have been guarding one of his country's biggest uranium mines that's in a bid to avoid a repetition of last month's hostage crisis in neighboring algeria. thomas spoke to my colleague. the mine in question is the olive facility a location in which the french company a river has a large stake now it's important to know that this is the second mission in africa completely separate from france's mission in mali which has been going on for nearly a month as neighbors mali and the situation very continues to remain unstable the french government is making it clear that they are ready and willing to protect

their assets in the region and on the african continent as a whole protecting assets in the region. many know that france gets most of its energy from nuclear power hence the uranium is very very important indeed so massive economic concerns are indeed but as you also mention that we've called the french led multinational intervention going going in mali now boots on the ground in nigeria where it's certainly getting a lot of reaction from critics around the world at the moment certainly has been if you ask france they've pointed to the incident that happened last month in eastern algeria when islam ists took over a gas plant there eventually leading to forty eight people being killed thirty seven of those foreign workers france's predicting that more islamist retaliation to french presence in africa is likely and they say they want to prevent a tragic situation like this from happening again but then again is the world's fifth largest producer of uranium a product that is vital to the french economy in fact it's estimated that nearly all or at least seventy five percent of france's electric infrastructure is dependent on nuclear power given this it makes sense that france would want to

protect that resource at all costs the president has welcomed the french presence in the country and recognizes the need for the have and security but has also stated that they want to better deal when it comes to uranium exports meteors economy is also largely dependent on your radio as well critics have already been wary of french involvement in mali claiming that the real motivation is a return to imperialism economic policy and a stronger control of a region that used to be french territory now with france's expansion into neighboring countries compiled with president expressing his concerns those critics now have a bit more that they can chew on. john laughlin who's the director of studies at the institute of democracy and cooperation in paris believes securing natural resources is not the only goal france has in the region the two main factors in this process is that interest to strengthen the role on the international stage in particular piece of being a european. and also the americans. africa. it's important

to know that america which strongly supports france in this mali and intervention has plans for establishing a military presence in the military control over the whole of the african continent some people speculated that used the phrase that this was america leading from behind that america decided to put forward its european allies to do as it were it's dirty work in a continent where as i'm sure many of your you viewers know china has been establishing an economic presence now very successfully for a large number of years so there is a scramble for africa isn't there or is it just to grab the resources yes it's obvious that the securing of energy resources is one of the key factors behind many if not most political developments today and that's why i say that the of course the issue of hydrocarbons and uranium and other energy sources is

a key and may even be the decisive factor in one in north eastern monny french jets have carried out a series of air strikes on the bases and fuel depots of islamic terrorists with the intervention now heading towards the desert and away from the cities or to report on what's left on the ground after the liberating troops move on. francoise hollande victorious trip to timbuktu marked the declaration that three major cities in northern mali have been declared liberated from rebels although the sharia law and islamic extremism the rebels enforced will not soon be forgotten nevertheless this victory is a partial one the militants have merely retreated and fled and the suffering in this war has seems disproportionate to the gains made we're learning what happened in battle day by day in the town of kona we heard stories from the fog of war this is mall settlement in the mopti region was seized by the more yo tribe they fled to

the north when french troops showed up but it's reported that the cost of that victory was high while french planes killed only two rebels the number of civilian casualties was an estimated fourteen he said i wasn't home when the bombing began i started praying when i learned my house was under attack they ruined everything i had my family and my livelihood my wife's name was i mean she was forty my son ali was eleven when adam was ten and so you know who was six they all died. but. people such as this farmer idris ask themselves if the victory was worth it. we also met the campo family who had suffered badly when the bombing began everyone scatter it in the campo lost two of their sonnets unable to swim they drowned in the river while fleeing the fighting. we also heard the story of a young mother who died from shelters leaving three children behind

a newborn baby. the village was a complete mess it's impossible to describe i'll only discuss things i know for sure and i can say that all we had is god. few proving some kids came running up to us and said their mum had date i brought them to our house their mother died after an hour of clinging to life the children have nobody else but us but. it's a disaster visited every house in the town people reject anything the military claims about victory and say war crimes must be prosecuted under the geneva convention towns like qana want more than just compassion people who suffered at the hands of terrorist groups and drug traffickers are now facing the misery inflicted by warfare about that yesterday without gonzalo one. for r.t. with john kerry being sworn in as the new us secretary of state last week the white house may have been hoping for some favorable coverage of its diplomatic efforts

the revelations that we have to pay to play a role in the foreign service that brought clouds over capitol hill but he's got a has more. as you can imagine the competition for diplomatic post is tough especially in safe and wealthy countries somewhere in western europe and asia a recent study by two professors of international relations at pennsylvania state university looked at available information on president obama's donors direct political contributions and the positions that they received and they concluded that those whose political connections to president obama were measured in dollars for the administration service had an increased chance of representing the united states and western europe and a smaller chance of serving in say central asia or sub-saharan africa donors and advisers involved in the diplomatic selection process say the competition this year has been so tight that those who have raised less than a million dollars are for the most part unlikely to be considered so what is the quote unquote price tag for the highly sought diplomatic posts according to this

study friends and monaco topped the list with a level of personal contributions at six point two million dollars the price was quote unquote the price for a position in the u.k. the authors find appears to live between six hundred fifty thousand dollars and two point three million dollars a posting in luxembourg that tiny but very wealthy european country for example is valued as three point one million dollars dollars in direct contributions and appointment to portugal was predicted to have a value of around six hundred thousand dollars like all modern presidents before him president obama has appointed friends and donors to about thirty percent of diplomatic posts while seventy percent of the posts go to career diplomats so judging by this research career diplomats go to places like yemen while the big donors go to monaco nobody of course calls it bribery here these are just respectable donors who get what they want when they pay the price. the u.k.

is reportedly preparing to test out a brand new drone which could herald a breakthrough in the art of unmanned warfare the aircraft is designed to be undetectable by radar and can even select targets by itself not the sort of first reports now from london. it can fly faster than the speed of sound it can deploy its own weapons and it can go deep into enemy territory now this is the needy british super drone as it's known in the trenches has been under development for many many years now costing hundreds of millions of pounds already but it's thought that this where the legionary niecy project is going to be taking is needed in voyage over the next couple of weeks that's what's expected now military chiefs has said that the trances will pave the way for a whole new generation of these new drones and it's being billed as the future of the air force but experts have warned that this could open the doors to

a whole new type of warfare there's concerns about robo warfare where machines that are able to launch their own attacks could attack humans and of course a lot of control the sea that always surrounds the use of drones as well but they're still there and with the here and now because the controversy surrounding drone warfare has been highlighted recently when the u.n. launched an investigation in to civilian deaths caused by the drones now assisting the u.n. in their research is a team from goldsmiths university of london and i'm joined by one of thirteen now professor. and i thank you very much for joining us this new technology a lot of talk about a lot of excitement but a huge number of unanswered questions that go along with these developments you're taking part in this investigation now we haven't even really got questions answered eight of the legality of these attacks and yet we're seeing technology sort of leapfrogging over the law at this point i think that what. we are

seeing a de facto legislation by practice. of warfare actually creating the law for the problem of the law for use it always lags behind the technologies are full of course because knowledge moves much. faster than the laws of war and the technology change the way in which we conduct our wars when we speaking about drone warfare we're not really speaking about area bomb being we're speaking about targeted attacks and especially the kind of a new type of attack that we've been seeing in the last decade that is called an extra duty juridical assassination these really are based on kill ists and they are compiled by somebody either authorized by the people with the reason or transparency and we do not know how that process is undertaken and of course this is really what your investigation singeing on is gathering that all important data is that absolutely in the forensic architecture project at goldsmiths what we look at is the nature of war in an urban area and the most

strong attacks are launched on inhabited areas areas with a lot of civilians with civilians and militant are in town called in the numbers are very difficult to establish because both israel and the united states would consider every man over a certain age sometimes sixteen sometimes eighteen is a militant by definition we know it is not true the details of that investigation the results are expected towards the end of the year old tabor thank you for joining us today to talk about british steep terrain and of course all the other answered questions that go along with that. when it's not only the latest innovations that are causing ructions in britain but also secrets from a deeply buried possed a new report on the british police have been stealing the identities of dead children for decades and using them during covert operations the details.

of the artistic director of famous bolshoi ballet heads to germany for special treatment to saying you know who is behind the volunteer acid attack on him two weeks ago that's just ahead after the break. well the. science technology innovation all the least of elements from around russia we've. covered.

more news today. these are the images the world has been seeing from the streets of canada. corporations rule the day. i. use continues here in r.t. israel is reportedly considering building a buffer zone with a high tech security fence along its border with syria it's designed to prevent threats from radicals if the assad regime is overthrown dr jamal wakim believes that televisa motivation has nothing to do with security for a nearly two years now. at the time of the surge in c. there were no attacks against israel by the insurgents not by the regime itself so

this is a mere pretext israel wants to take advantage of. a weakening regime in syria to improve its strategic position specially in defense of its claim to the golan heights imposing a buffer zone will make israel in the future to. negotiate over withdrawing from this buffer of the war zone rather than withdrawing from the golan this is an attempt to annex more territories and it's at the same time and at them to threaten . damascus itself if israel expands its domain by another seventeen kilometers this will make it reach close very close to damascus it's trying to destabilize the regime and it knows very well that the collapse of the regime will lead to a probable division of syria which runs in the interest of israel the artistic

director of moscow's bolshoi ballet's traveling to germany for specialist treatment after a violent acid attack against him just over two weeks ago doctors there will be trying to help save feelin's eyesight artesian in addition to reports now from the moscow hospital where he was taken immediately after the attack. he's doing rather well surprisingly well actually he did thank the doctors for doing everything in their power to pull him out of a very difficult situation that he found himself in to did suffer third degree burns and those are very severe to his face and neck he said he's full of hope for full recovery and he is full of willpower and he actually looked very enthusiastic and upbeat about the whole situation of course considering his circumstances actually he did appear to be quieter on his road to. speak about person who is who has been supposedly behind the attack he did say that he knows exactly who it was on this particular day today did not want to talk about the

investigation at all so as not to interfere with the investigation he did however mention. he did to receive threats before but he also mentioned and this is important according to feeling himself he didn't mention that he's continuing to work with everybody who has been left in charge of the bolshoi theater he said that nothing about the boy changing. the performances and everything about the theater will be carrying on as before. in q.h. an opposition activist has reportedly been sentenced to five years in prison for criticizing the countries on the lake to grunow on twitter it's the photon the person has been convicted on such charges in the country and the last two months speaking out against the emir of kuwait is considered a state security charge i'm just international recently. for increasing restrictions on freedom of expression and assembly protests have been raging against the government on its crackdown on dissent since two thousand and eleven

tension flared even more often the symbols parliamentary poll which was boycotted on your position one former m.p. claims the country's democracy has been disfigured. we refute claims that the national assembly represents the people of kuwait seventy percent of the people boycotted the election and the assembly itself was elected thanks to an unconstitutional decree by the government which wanted a parliament which could control its lawmakers have failed to address widespread allegations of corruption democracy has taken a twisted for it is the only democracy which is seeing an increase of corruption we will continue to hold peaceful marches peaceful rallies and we will continue to gather and protest. and now to another monarchy that has its own problems with the opposition bahrain and the regime forces there once again clashed with police in various parts of the country with ortiz used tear gas against the crowds which were

hurling bombs the gulf kingdom has been cracking down on pro-reform demonstrators for two years arresting including prominent activists the government claims it's taken steps to address the brutality of the security forces but opposition campaigners say daily assaults continue unabated. the number of dead from a suicide bomb attack on a group of fighters is risen to nineteen more than forty others were wounded the incident took place as men gathered to collect their salaries outside an office in the town north of baghdad the blast comes a day after several suicide attackers targeted a provincial police headquarters in kirkuk killing at least fifteen and wounding dozens. a skeleton found under a car park in the city of leicester in the u.k. has been confirmed as that of king richard the third looks and on it was the last english king to be killed in battle back in fourteen eighty five but his grave was

lost in the sixteenth century after the demolition of the church he was buried next to the remains will be reinterred unless to complete all the details of the burial ceremony yet to be released the south korean the u.s. of kicked off a three day joint naval training exercise it comes after north korea's recent threat to conduct its third nuclear test and it can be an international human rights lawyer and co-founder of the national campaign to end the korean war believes the saber rattling is not exactly going to help to ease the tension. the worst thing you can do under these circumstances is to inflame the situation to conduct these military exercises that always inflame that use live ammunition up and down the border with north korea this is inflammatory on a lot of levels and we need to step back these naval exercises it's like a race to the bottom if you will when are we going to get more creative in the way

that we resolve conflict in this world this conflict gives us such an opportunity with a new secretary of state new leader in south korea we should be pushing for peace suspend these naval exercises and go from there yes there should be non proliferation of nuclear weapons on the korean peninsula but we don't even recognize north korea as a nation have a peace treaty or formal relations to deal with these matters what do we expect an investigation by the guardian newspaper has revealed britain's largest police force stole the identities of dozens of dead children for use by undercover offices the scheme went ahead without informing or consulting any of the parents of bristol based investigative journalist tony goals and fills the metropolitan police's methods a completely unacceptable. wondering if i live in a democracy or not we're talking about the identities of eighty dead children stolen by the police i mean you do want to tell you where else these infiltrations

have been taking place as well do they have police agents within our political parties where are the lines being drawn because it doesn't seem like there are any laws being drawn are absolutely behind the former director of public prosecutions mcdonald who is now saying there must be a public inquiry into these kinds of police practices let's not forget these are crown servant does her majesty know that they're up to this does she approve and i mean there has to be really deep inquiry here the guardian have done up a real can of worms and there's absolutely no accountability it seems why these things that have been authorised through through scotland yard the idea that people haven't complained about it therefore it's ok well of course i'm not going to complain about it if they don't know about it it's almost like the scotland yard is being run like some kind of secret cult we've got to break that cult if we're going to have justice thousands of people in america forced to undergo polygraph testing every year in the name of national security that's

a minute expose ringing the alarm over the us federal agencies exceeding their legal ethical limits to determine who can be trusted what is marina portnoy has for us now. for more than three decades john sullivan worked as a polygraph examiner for america's central intelligence agency today the retired cia employee is offering some strong opinions about the nation's lie detector policy too many honest people are too many people who should be passing their tests aren't and i and there's no there's no accountability for that. last year more than seventy three thousand americans were reportedly required to undergo polygraph tests in order to get or keep jobs with the federal government according to an investigation by mcclatchy newspapers a growing number of u.s. agencies are asking employees and applicants intimate questions that extend way beyond the realm of national security probing matters such as sexual conduct

financial matters and past personal relationships a woman was pressured to talk about her experience being molested as a child and when the polar bear for said that he refused to go on with the interrogation he alleges that he was pressured to go back and continue interrogating or a decade ago the national academies an organization advising washington on scientific matters urged the feds to stop using polygraphs as a screening technique scientists found that polygraphs aren't reliable enough to prevent innocent people from failing and deceptive candidates from passing i think it's important that the polygraph is not just. for screening it's an interrogation tool. there's no question that the trip that leads to. the drilling down. question

the past may well be quite true over the past ten years. at least fifteen federal agencies including the n.s.a. and f.b.i. have reportedly continued or expanded their polygraph screenings with nearly five million people having access to classified information washington maintains that polygraph testing is the most effective way from preventing secrets from being leaked lisa ribicoff is an independent polygraph examiner and investigator who uses the polygraph program designed by homeland security she contends that it's ninety eight percent accurate i do think that there are some questions pertaining to some emotional aspects and personal situations should not be included but i do understand why they're included on the basis of that the government needs to see how exactly what their breaking point is what are they willing to discuss what are they not willing to discuss however applicants who are denied

a coveted position after failing a polygraph are prohibited from accessing the records of their interrogation and are often barred from contesting the results were filing complaints in federal court in two thousand and four the cia veteran who conducted lie detector interrogations for thirty one years failed his own screening there was absolutely no question in my mind the test was wrong. was a terrible test sullivan lost his security clearance and was denied a job with a federal contracting agency he claims his examiner falsified the results possible retribution for sullivan book detailing america's polygraph system subs are coming in for a polygraph test now are guilty until proven innocent and i think that's. a corruption and an abuse of the process the obama administration is now promising to draft a new national polygraph policy that would prevent agencies from pushing legal or ethical boundaries during screenings but at the moment the program has no oversight

or eligibility meaning tens of thousands of u.s. citizens will continue getting personally probes in the name of national security bring up or not our team new york. time now full of the business update with natasha let's watch is it true that the sochi winter olympics in two thousand and fourteen and to become the most expensive games ever well it's certainly truth you believe the official estimates of a fifty billion dollars price tag i'll tell you all about that on the whys and hows and the business but after a short break if you put it thanks to. secretary of state hillary clinton recently testified to congress in regards to the attack on the u.s.

consulate was killed an american ambassador in benghazi libya during the testimony couldn't rather calmly said things like that the revolutions that sprang up during the arab spring like in libya where the events in bali have created instability and safe havens for terrorists and she made it clear that there is no doubt that the algerian terrorists had weapons from libya so the us secretary has basically admitted that the actions of the usa and nato have caused a mass instability that has allowed the seeds of terrorism to grow when the justification for most of the actions in the muslim world is to stop evil dictators who harbor terrorists or spread shouting democracy if libya would have been left alone algerian terrorists wouldn't be getting any weapons from it now this is like an exterminator accidently or maybe on purpose actually feeding the roaches in your basements that there are ten times more of them and then saying that he has to keep working because he's the only one who can get rid of the roaches people like hillary clinton who support funding brutal jihad it's rebel groups to overthrow

governments to somehow bring about stability and democracy are either dismally stupid or consciously running a very brutal con game but that's just my opinion. my . guess. it's thirty minutes past the hour you're watching business r.t. while come over russia's president vladimir putin is flying to sochi this week to mark the one year to go free anniversary of the sochi olympic games but the sochi games can already claimed the first place in terms of cost it's setting

a world record as the most expensive eleven picks in history according to the state commission overseeing the preparations for the games its price tag will read fifty billion dollars that's more than ten times higher than that of the last what our games and vancouver canada a correspondent andrew former has all the details of the story. well with a year to go the work continues and so does the rising cost sochi will be the most expensive olympics in history with the final price tag thought to be around fifty billion dollars that is ten billion more than the summer games in beijing and ten times the amount of the last winter games in vancouver so begs the question why is it so expensive and the answer is quite simple pretty much everything has had to be built from scratch i'm standing in the krasnaya polyana region which will host the sliding in skiing events that wasn't much here before the olympics came along and

they've had to build the bobsled track for example the ski rams prepare the slopes and create the hotels and the cafes and it's a similar story down at the coast where there is the olympic park around half a dozen venues there they will host the skating and the ice hockey and on top of that you've got the impression truck has something like five hundred kilometers of road and rowlings that had to be laid when we talk in general terms like they she can probably see why the price starts to mount so another question is well is it all worth it financially the answer is simply probably not it's pretty rare that the lympics do generate a profit vancouver for example has generated something like a billion dollars since it's hosted the olympics and it's thought the figure for saatchi could be around maximum two billion dollars so what is the point of all this well socially sort she will benefit afterwards they've got all these facilities to enjoy after the. leaves secondly you could argue well is there not a better place to invest this money in russia are there not more areas in need

we'll probably guess but the russian government will say this this is a chance to improve russia's image around the world this is all about prestigious and sought she represented the opportunity to host the olympics they went for it they won it and now they want to put on the best possible lympics whatever the price andrew farmer for r.t. such a. now let's now take a look at the markets to see where we stand this monday on wall street stocks are retreating from wost weeks five year highs the dow is losing more than. around a quarter of a percent this hour investors once again worry about europe namely spain which is in the midst of a corruption scandal and the domestic data is not helping either the commerce department said factory orders in december came in weaker than forecasted on the european bourses let's see what's going on there we're also seeing inevitable correction following several weeks of extremely robust growth one of the biggest

losers in europe is a dutch infrastructure company it's called a royal m. tech and it's dropped forty eight percent in one day after it said it would have to write off one hundred thirty six million dollars on a project in poland and on the currency markets the euro is feeling the pressure against the u.s. dollar on all the bad news from europe the ruble ended the day mixed as you can see here it weakened against the dollar as crude prices dropped on monday and following a ten week rally the russian equities lost value on monday then my six on the r.t.s. finished today three quarters of a percent and almost one percent in the red respectively. moscow's stock exchange the main platform for trading equities in russia is trying to revive the country's capital markets by setting a personal example it will offer

a chairs to the public next week exclusively within the country the r.t.s. my sex plans to raise about fifty million dollars the announced price range values the exchange between four and five billion dollars it's a largest shareholder is central bank its stake is just under twenty five percent a correspondent that explains why the stock exchange decided to stick to a domestic offering. the most can just planning to float shares exclusively on its own platform to boost their appeal of moscow as a financial center how to courage more russian companies to go public at home that goes in line with the government's battery arctic intension president putin recently said that russia's a massive privatization should be a match to capital markets and not to overheat for in both of this year russia plans to offer investors massive stakes in three state companies including ten to

twenty five percent of russia's second largest bank need to be seven to fourteen percent of the diamond produce our growth and up to fifty percent of the shipping giant lot analysts say an exclusive domestic placement could hurt the months for the russian multi-billion dollar offering there is a lack of long term investors in russia last year most co boards have just over one million clients registered that's compared to over ninety million individual investors in the u.s. and china. the most could exchange is indeed taken steps to become more attractive to investors it introduced a central securities deposit and shortened time to federal trade so far however these reforms have not been enough to convince russian companies to forsake longer and leaf soul in moscow last year for example all major russian companies that

completed public offerings chose to do it in london while three of them issued in london exclusively russia's fertiliser billionaire dmitri ruble of live reportedly paid twenty million dollars for hawaiian mansion of a famous hollywood actor will smith smith who is a father of three and one of the wealthiest americans performers bought the property in two thousand and nine he paid thirteen and a half million dollars for it but when it comes to a low believe he apparently has a weak spot for expensive real estate he recently set a record by by the most expensive new york city apartment for eighty eight million dollars also acquired donald trump and palm beach florida for one hundred million he has the cash to spend for sure after he made six and a half billion dollars in two thousand and twenty by selling his stake in russia's largest fertilizer company we're all collie and that's the latest from the business

team up next on our t.v. after a short break sophie shevardnadze speaks with laurence kotlikoff an economist professor at boston university about the roots and the repercussions of the global financial crisis. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought he.

was a big picture. good luck. was able to build a most sophisticated. fortunately. anything mission to teach me the creation of why you should care about humans and. this is why you should care only. there are twelve cities in the united states in which half of the people with hiv aids lives within a year. this is a problem that. substantially preventable it was like the big elephant in the room and nobody wanted to talk about there were really good public health campaigns that people were really focused on this problem and you certainly should be able to.

take it with. the use of the consensus to. choose the opinions that you. choose the stories that impact your life choose. to. laurence kotlikoff economics professor at boston university it's a pleasure to have you with us today it's great to be with you and great to be in russia so you're the one who states that america is broke and is even in

a worse state that greece and ireland how so what exactly do you mean by that well we have congress look at all the bills the government has to pay and and in the us case we have enormous bills that have been kept off the books that are not official debts but they're very real for example paying me my social security benefits my old age pension that's a real obligation. it's not part of official government debt. but it's you know very important because there are seventy eight million baby boomers who are going to get these social security payments. and in addition medical payments from the government if you look at all those payments they're about three trillion dollars a year so we have these huge bills nobody has thought about paying for them and congress and the presidents over the years are just focused on official debt and

basically have not told the public about these big bills he said the amount of the fiscal gap in the united states is in your estimation two hundred twenty two trillion dollars that's right two hundred twenty two trillion and this is like an astonishing number it's like three times the world city it is this is more than what the world makes twenty times higher than the official debt in the hands of the public which is eleven trillion so if you add all the spending obligations into the distant future and you compare them with all the taxes and you include in the spending all the interest payments and principal payments on the debt and the official that you have two hundred twenty two trillion present value now this is twelve percent of g.d.p. on an ongoing basis in other words we need to get twelve percent more of g.d.p. . either in tax increases or spending cuts in order to have the fiscal gap is zero we're doing far too little too late it's. like

operating on a person with cancer and you say well there's a big tumor here we're just going to take a little bit out today and we'll come back and in five years and we'll take out some more but maybe in five years the patient is dead because of the term got bigger so this is why we are in worse shape than greece and greece it's about ten percent of g.d.p. . they need on an ongoing basis we need twelve percent it only it's about five percent germany it's about five percent so when you look at it from this perspective. it's a whole different story then when you look just at the official debt because these governments are making choices word choices about what to call official obligations and what to call unofficial so are they intentionally hiding many ride on this they have been spending in our country six decades running

a massive ponzi scheme taking from young people giving to old people and then telling the young people don't worry you'll get yours when you're old promising pensions promising healthcare benefits and you know this is happening in all countries even russia has a pension system but it doesn't seem to be in as bad as shape as ours in terms of paying for its benefits in the future but i mean this number two hundred twenty two trillion i mean. what exactly is this where is this money going quit spending it i mean certainly not the average american what is it like the one percent of the super rich or the military what is where is it going here's a where's all the spending. well you have again very big you've got a lot of old people now they're getting very high benefits about thirty thousand dollars per person it's scheduled to go up to about forty thousand when i retire which will be about fifteen years so you can see that. we're just very

generous to the old people in our country what do you suggest like cut spending raise taxes that will be suicidal to any american president well we have to be adults of running the country we have to act like adults because i mean right responsibility as adults is to make sure our kids have a good future so we have to reduce the birth rate of the benefits to the elderly. and that requires. cutting the growth you know being much more careful about how much we spend on healthcare. because the health care benefits have been growing at twice the growth rate of per capita g.d.p. for forty years. these are the government health care benefits for the so it can't continue because it's going to kill the country so we have a huge problem it's being hidden it's not being described and discussed disclosed

and we're in very bad shape you just mentioned that you need to take care of the future generations clash of generations this attorney use to describe what future awaits for american children paying up the deaths of their fathers but the united states when you look at it really has lived on death ever since world war two and increasingly so in the past thirty years and they have somehow managed stop to collapse you know and. they have no problem getting new debt why do you think that the new generation won't be able to manage it well. over time the official debt will become bigger and bigger as this year of g.d.p. and at some point the chinese and other people will stop. lending us money and our interest rates will go up dramatically we'll have a bond market collapse and at that point. the deficit will get even bigger the debt the official debt will accumulate even more rapidly and our government is

also printing a lot of money to pay for these bills so inflation can also take all very quickly so i see the problems and they may not be in thirty years they may be in five years or two years that the chinese and other people start to understand how bad the situation is and then we'll be in the situation of greece where people won't lend us money. and then we will have to make big cuts and everybody will be injured. so if you mention china and i know that china and japan are they top the list of america's lenders in ways or one trillion should they just get used to the idea they're not getting their money back i mean they can't just come out and say hey i want part of the american g.d.p. . if i were anybody whether i was chinese or japanese or russian i would not be buying thirty year us government treasury bonds that are yielding

three and a half percent or something right now because the prospects for us to print we have printed so much money since two thousand and seven it's really unbelievable we have the federal reserve has tripled what's called the base money the money that basic money supply it's called the monetary base it's actually gone from about eight hundred billion dollars to about three trillion dollars now and so. almost more than for so we have a basis in place for a more than tripling of the price level right now we have created the the foundation for hyperinflation already and the baby boomers have yet to retire. so right now. twelve percent of all the federal spending is based is being financed paid for by just printing new dollars. that's what's going on so we're acting very much like a developing country in terms of our actual finances and i've been. concerned

about this and writing about it and speaking about it for since the late eighty's. but and other economists have as well and paul and also some politicians but it's getting worse it's not like anybody is actually. looking carefully at these numbers the politicians are looking at the official dead numbers and not really discussing the magnitude of what's coming a lot of people who think like you who are critical of the current american financial system have come out in the street and they occupy wall street movement and they've voiced their concerns and their protests do you think a movement like this is actually capable or able to solve real issues there isn't just a red herring well occupy wall street was concerned about inequality and they were concerned about what wall street was actually doing and i think we need to gradually change our financial system because we have two big problems and this is

true in every country including russia. the traditional banking system the model is one of very high leverage banks borrow a lot of money promised to repay and then there's opacity they they take the money and they do something with it but they don't tell you what they're doing with it so people get very concerned at some points about whether the banks actually can repay and then you can have runs on the bank just overnight so it's a very unstable situation when you promise people things and then you don't know what you're doing with their money and then and that's what happened in lehman brothers and bear stearns and. merrill lynch and all these companies that one on one under one after the other everybody started worrying because they couldn't see the assets so. what we need to do is. get rid of this faith

based banking we need to have. no leverage and we have to have transparency the government has to disclose what the assets are the government has to do verification and disclosure we should have a government agency verify that somebody has mortgage is actually. a reasonable mortgage that that person has a job that person has an income that person's house which is collateral to the mortgage actually has this value so we should not have any liar loans and then we should also have all the. the banks be become what are called mutual funds which gesture sell shares. to these funds so that they've taken all the money on an equity basis they don't borrow money they just sell shares of stock the money comes in and then they buy these disclosed assets the mortgages for example and then if you have equity based finance and if the mortgages don't work out somebody

doesn't repay the shareholders take a loss but the financial intermediary which is a mutual fund never fails it never goes bankrupt so you have a banking system that can never fail if it's made out of equity finance mutual funds who are buying transparent fully disclosed assets that's what we need. and that's what they're you know the protesters a wall street didn't know what they wanted but this is really what they need what they wanted now what we need is also protesters among the young about their fiscal treatment that's a different thing that's the thing that fiscal cliff and the possibility of america defaulting that we hear a lot around it's a symptomatic agony or is it maybe artificial political crisis here young people don't fully understand how bad they're being treated in the in the debates in the entire camp. payne not a single one of these two candidates talked about the magnitude of the problems

president obama said that our search and security system our basic government pension system has a small problem that needs to be tweaked is what he said well if you actually look at the system at the trustees report the thing is thirty one percent under finance so it's not a small problem according even to the actuaries it's a huge problem. so you know he's on a different planet from the reality. romney. felt that we could just lower taxes and get more revenue so he was equally. you know crazy on this. and unfortunately we have children whose futures are at stake here and they're also under a lot of pressure on in other ways because they're competing with a lot of people all over the world and they're also competing with these new start

smart machines that are taking people's jobs away so in our country when you go to a grocery store or a drug store. the checkout person is a machine there's nobody working there it's just a machine these days there's actually maybe one person to help you use the machine . and so that's replaced lots of jobs so we have young people. who are are having trouble finding jobs even college graduates are having trouble for a laurence kotlikoff thank you very much for a very interesting insight you gave us on the ongoing financial crisis and it's great to have you with us again my pleasure my group. list.

please please. little. lead . player . play.

live lead. you. live.

lance.

with the speed. with. all of the damage so good. and. a normal run of a low. the. good government no longer represents the people and the people are going to take such a. sweet. deal revolution the judicial system moves to the money. the

way our economic system currently runs he's not going to. play. download the official. language stream quality and enjoy your favorites. if you're away from. your mobile device you can watch r.t. any time.