russian anti-corruption blogger ali sina vali could get a last minute reprieve a day after being sentenced to five years in jail for embezzlement the court is now set to consider granting a temporary really nice pending appeal right now you're looking at live pictures from the courthouse. a life sentence looms for u.s. army private bradley manning after a judge uphold a charge that he ate of the enemy in leaking classified documents but washington faces an uphill struggle and its war on whistleblowers. and the e.u. puts a damper there on israel selman expansion plans new cooperation guidelines make the occupied territories it eligible for future funding.

in moscow you are watching r t thanks for joining us and welcome to the program i've seen a volley a russian anti-corruption campaign or a convicted yesterday of defrauding a state company is back in court prosecutors who earlier succeeded in having him sentenced to five years in jail are now asking that the volley be released pending appeal hearing has just started artes and a foreman joins us now live for more on this so andrew what can you tell us about this hearing and specifically what we can expect from a. city yesterday that he was convicted he handed that five year jail sentence he was then. and led the way and detained in both the prosecution and the defense both said that that in itself was against the law because he should remain free until the defense has. had time to lodge an appeal against his conviction they do

actually have ten days to do that and so they were saying during that time he should be a free man albeit on bail so that is why the court has reconvened today this morning and we should hear the results of this shortly we believe another thing we can expect to hear back today and probably from the only himself is whether he will stand this moscow man and his team had said before this trial that if he was convicted he would pull out because he is a candidate in that race at the moment but it now appears that the moscow authorities still have not had official confirmation confirmation of that and we also know that technically he could probably still stand because he would be allowed to do this while he was waiting for the results of his appeal and that could take up to several months and with the elections for them. being in september of course potentially he would be able to stand. well yesterday is

a verdict under us sparked a lot of protests so tell us how big they are where and what was the reaction from the authorities there surely after just a few hours after he was convicted afghans inns of his supporters turned out in the streets of moscow they claim the trial was politically motivated organizers say around seven thousand people turned up while police say the figure was nearer three thousand they had initially intended to demonstrate on a monash nice square but they did not have official permission from the authorities and therefore police prevented them from doing that but crowds were allowed to stand around its perimeter which is pretty close to the kremlin and also the state duma there were around about a hundred arrests and the police do say the bulk of that was cheating people trucked on the highway because this demonstration was actually taking place during the busy rush hour similar scenes were repeated in sim pater's been. but i think it

is wrong to say this was a picture that was painted across russia he does have immense support within social media network sites he gained fame and notoriety and the corruption broader and certainly the his name grew two years ago during the mass protests of the parliamentary elections but a poll has shown that across russia probably only ten percent of people are actually following his case although that said there were also smaller demonstrations in the town a kid of which is about a thousand kilometers northwest of moscow yesterday after his conviction. were entered thanks so much for bringing us the end of our reporting there. is conviction has drawn instant criticism from western governments washington condemn the ruling as suppression of civil society in russia with that opinion largely echoed by e.u. officials however british legal expert and blogger alexander chorus has been

following that evolving trial told that outsiders are jumping to conclusions without looking at the details of the case. as far as i could see. the charges made out the facts were set out clearly and if you want to solve the skin is an opportunity to study the greatest cross-examine the witness should respond to what he had to do and i think if you look at the evidence and i think a lot of people who question the fairness of the trial have not. but i think you can do that at the end of your speech you would decide that he was probably convicted well that's exactly what one gets with the people who have already made up their minds before the case even started until the dryly started simply following their own opinions which they formed in advance of the crown prosecution service here takes the view that in the case of theft which is what this basically is a. property worth more than one hundred twenty five thousand pounds for first time

offender who pleads guilty it's between three and six years five years is exactly in line with that meanwhile on the base russia analyst martin mccauley says that for many in the west the trial is just a pretext to criticize the kremlin if something like this comes up it's very easy then to take a stick to the russian state or the russian government and say that they're behaving like the communists they haven't read improved they haven't really moved to democracy rule of law a liberal market economy and so on so therefore there's a there's a prejudice there's a lovely lovers in the west we turn to russia to the only way that russia can overcome this is presumably by showing that the law is not a place that contract is really a contract law and that you purchased with birth the democracy is in fact practice and so this is a long long hard road. well we've got more analysis and opinion on the issue on our

website or to dot com also there are a live updates on the best pictures from the protests against the verdict and from inside the courtroom of course don't forget also to check out our old correspondents twitter feeds for all the latest on this and the other stories we cover here in our team. right see. first rate. and i think you're. on our reporter's. now prospects are looking bleak for the u.s. military with the lower bradley manning a judge has refused to drop the charge against him aiding the enemy that means the

army private who turned over thousands of classified documents to weaken weeks could spend the rest of his life behind bars with no chance of parole artie's liz wahl has been following the case. it is the most serious charge of the private first class faces so that means he still faces the possibility of life without parole now the court took a look at the testimony and evidence we've heard so far throughout this case and found that there is enough evidence to move forward with this charge this charge of aiding the enemy prosecution has cited manning's job as an intelligence analyst they say that as an intelligence analysts he should have known that by leaking these documents to the n.c. secret secrecy website wiki leaks that al qaeda osama bin laden and al qaeda affiliates were going to see this information now the defense has insisted and has maintained that bradley manning in no way intended to aid the enemy they say that he is

a whistleblower and that he leaked these documents in an effort to expose wrongdoing to spark a public debate what is going on in the wars abroad and diplomatically really what the truth is right now trial is wrapping up just a matter of time now before we will hear closing arguments and ultimately it will be one person the judge in this case that will deliver the verdict. kevin zeese an attorney who is a member of the bradley manning subordinate were believes washington is cracking down not only on whistleblowers but also on press freedom. this is a very abusive charge and inappropriate charge and it's very unusual a really raises the stakes are for was the blowers especially in the national security arena because in the enemy in the past has meant that you had to have the intent to a the end of the not just the knowledge that you could be in the room it's a very big difference normally this kind of

a in the enemy would means on really becoming a traitor and and working with the enemy of the united states not somebody releasing material to the media and it's not just a risk it was a blowers it's a risk to the media to journalists to reporters now reporter writes a story. criticizing the media point points out of the military or points out some balls in the military some mistakes of them making it in this ng the enemy and so i think it's a really raises lots of questions not just for whistleblowers but for journalists in the twenty first century when we're also connected by the internet anything that's written on a blog can be perceived as a new enemy so there's a great risk for freedom of speech and freedom of press for the future and bradley manning is not the only whistleblower feeling the pressure from the u.s. government the latest said of course former n.s.a. contractor edward snowden who blew the lid on america's secret surveillance activities and is currently stranded in the transit zone of

a moscow airport as artie's got it she cannot wait for it's the two cases are part of a wider movement for transparency that may be impossible for washington to stop. the u.s. government's relentless crackdown on whistleblowers is sort of designed to scare the whistleblowers of the future but we see that bradley manning's fate as not scared edward snowden for example so despite the crackdown whistleblowers keep coming forward with revelations about the government's wrongdoings as they see them so the us government decided that punishment is perhaps not enough in the wake of bradley manning's lease the government came up with the so-called inside a flight program under which government employees with clearances are basically instructed to snitch on each other so employees have to judge their colleagues each and behavior and determine whether they might might become a whistleblower you can imagine how many baseless and discriminatory investigations the program could trigger critics argue that the obama administration is using mccarthy methods to go after whistleblowers on top of that you have journalists who

sources in the government have dried up the justice department has shown that to track down and on all the rice source they can see quickly seized during this communications records as was the case with a.p. germany's so about this new era of whistleblowers we spoke with them for nix who's been writing extensively on the bradley manning case take a listen you know for forgetting it was virtually to proceed to walk out of the raid corporation with our school documents all of the notes owner seventy two hours and so this is a series of documents on a sort of bradley manning underground. cheater. you know presumably did something so we were just wanting to go to the documents and we were the editor of a president of secrecy and a person who in this these two sources are bound to lie it's interesting poll show that the majority of americans think of edward snowden as a whistle blower not a traitor whereas the majority of americans think bradley manning is a traitor to

a certain extent the public support for this or that whistleblower depends on the subject of their revelations bradley manning revealed the us governments were crimes abroad. aps not surprisingly many generates more sympathy abroad than at home but one can argue that americans are more sympathetic to snowden because he's where relations are about their rights their civil liberties so they care more when it's some iraqis rights they apparently care less. both still around for you this hour here on our authorities in belfast block a loyalist march week after a celebration for a turned into days long violent clashes with police that's after the break. we'll talk about language as well but i will only react to situations i have read the reports for. the police no i will leave them to the state department to comment

on your latter point. to carry out a car is on the job here no. thank you no more we say. what you need a direct question the proof for a change when you when you should be ready for a. print of a speech and. now the freedom to. build. its technology innovation all the developments around russia we the future covered.

welcome back this is r t how the european union has cut off funding to disputed israeli occupied territories in the west bank and these drucilla it's part of e.u. pressure on israel to keep inside its original borders before their expansion in nine hundred sixty seven the decision will affect more than half a million of settlers and has caused an angry reaction from tel aviv but europe says it's merely formalized a position that had been stated many times before our disposal your reports. the israeli prime minister benjamin netanyahu is furious with this new european union directive and a number of leading israeli officials have called it an earthquake what it states is that in any future agreements between israel and the european union the needs to be an exclusion clause referring to settlements in the west bank and east jerusalem now i'm standing in the israeli settlement of aureole behind me is the university

that was founded thirty one years ago and which today has a student population of fourteen thousand degrees that awarded here are recognized by the israeli higher council for education but this latest move by the european union is bad news not only for settlements like this one but also for universities like the one you see behind me what it states is that they need to be a pretty big on all grants scholarships prizes and money that is awarded and unless there is this exclusion cause now it is estimated that this will affect some forty percent of the israeli institutions including large corporations and banks that have in direct ties with the settlements palestinians and their allies have congratulated and welcomed this move saying that it is an important political and cultural boycott on the stairs on the movement but these raids are angry particularly the right wing elements in the town yahoos government who say that they're now going to step up their cause to end any kind of gestures for resumption

of peace talks with the palestinians policy r.t. in the aerial settlement west bank peace activists here are the open heimer believes this is the first step in an effort to push israel to give up its expansion ambitions. i hope that what we just saw coming from europe will be and the way to pressure the israeli government to make very clear to these very public that their world is supporting israel but their world will not so called days when the accumulation in the west bank and these one has to find their way to stop the occupation in the west bank otherwise we will find out right the mood more sanction and even maybe a boycott about the against israel that i'm against but this is maybe the next step so i think that today more israelis understand the need. to restart the negotiation and to find a solution to the conflict i hope to together with the american pressure and the

european pressure there will be some kind of for a result and we will see the restart of the negotiations in the next couple of days washington is considering whether to use military force in syria and i was revealed by u.s. army general joining us out of testimony who said the options for a military intervention are already on the table. that's a serious faces the prospect of terrorist forces gaining overwhelming control over the country's north reportedly plans to create its own state near the border with turkey forcing a rival rival groups out journalist neil clark believes the syrian opposition will use the al qaeda threat in a desperate bid to secure western intervention. it's interesting that when president assad was warning about syria from twenty eleven overs he was dismissed by the west scaremongering etc he was saying that al-qaeda was coming to her in syria and now we're hearing this from the f.s.a. it was interesting isn't it that those of those who did want these were half were dismissed as the colleges for

a sad all of us the syrian government now the west has got to wake up to what's really going on and that i think having said that it's very important jointly study this a strategy in armies very keen to get western intervention right now change their strategy their sense look to take unless we do need and help out. and i think now they're lost and say look you've got to help us out and to try to put. the moderate rebels but i'm not a pool right because terrible crimes are terrible terrorist atrocities so it's i think it's a kind of faux division to say that there are bad rebels about his election to do in syria next year twenty four you know there's no excuse for anybody to be using violence now to achieve beautiful change in syria going across to elections are available to people so i think the interesting this is a sort of desperate last chance that really. well the situation in syria has been under the spotlight and debate show crosstalk and can watch the full show later today at seven thirty g.m.t. here's a preview. if you are

a science group on the other side the russians the iranians it would be better to get this to a bargaining table stop arming the rebels so that assad would continue maybe getting the momentum on the battlefield and feel as though he is in control enough to come so the talks if he is in control of those. talks and there are no perfect preconditions for him to go. that is you know that would be there the best scenario on that side but the united states wants to see him go so i mean it is a huge mess you know it's all from your point of view why you should have to be all about just one. that's ridiculous it's got a lot and how this one way to look at this piece of perhaps one way to look at this perhaps one way to look at this is not to look at syrians as assad's people of the opposition's people as outsiders it is just for a moment look at all syrians if the stalemate continues what we call the stalemate

of this war is frozen between two sides what happens as more syrians die so to place the emphasis on assad's exist is to prolong this war. he. is. now sick look at some of the stories from around the world and egypt's capital has seen yet another mass rally by supporters of the ousted president mohamed morsi denouncing the newly formed government the rally in cairo following a televised speech given by interim president adly mansour or who said the reason our throw the muslim brotherhood cannot be reversed more protests are expected to sweep the country with egypt's military already a stern warning against islamist factions seeking to stir up the empress.

spain's largest cities have been hit by a wave of over nine protests in madrid police clashed with protesters and several were injured on both sides tensions also flared up in barcelona angry crowds demanded the prime minister mariano rajoy step down following accusations that he received secret cash payments from a slush fund in two thousand and eleven the allegations come any time of public frustration. soaring unemployment and severe austerity cuts. police in the u.k. have launched an investigation after one of the two man accused of fatally stabbing soldier lee rigby outside the woods barracks in may was attacked in prison several officers were reportedly called in to help after him i go out of a logical began acting violently and was injured during this subsequent brawl in the prisons high security wing. and his accomplice are expected to stand trial on the vendor of the eighteenth in a case that triggered outrage and a series of protests across britain. and staying with the u.k.

more than six hundred people many of them pensioners have died due to a heat wave over the last nine days officials issued a level three alert after scorching temperatures on wednesday reaching thirty two degree celsius in two thousand and three extreme heat that affected large parts of europe caused the deaths of two thousand british citizens. now in northern ireland authorities have angered unionists by rejecting their plans for a parade following recent street riots the orange order was to march along a route in belfast separating the rival loyalists and nationalist communities artists are first has the details but first there's a city of flashpoints and interface is still a large extent very much divided along sectarian lines with loyalist and republican communities living right next door to each other and then finds a tension it's all too easy for violence to break out as we've seen in recent days

but away from that nighttime writing and it's a completely different story that we've come to gain a different perspective on what's happening in belfast. the titanic's and the odyssey arena and the waterfront welcome to moe's in belfast but as well as taking in the sights along the more glamorous was a front regeneration area visit is a rule say given a guided tour through northern ireland's past troubles at the tool to avoid certain parts of the normal two rates bringing us sharply back to the here and now to the belfast that in the days following the twelfth of july or in july to unionise parade has once again been plagued by scenes of violence these tourists they financial remain unafraid i first came here in one thousand nine hundred one and of the time it was a very difficult period to because i remember it was the time of the hunger

strikers so we used to going to town and we were checked so now to see that there is this peace process in you know the narrative that there are things have changed so much and very fast has become such an attractive place to be seen i think it is i mustn't be the latest you know it was the right thing might be a later life impact. it's far reaching is estimated the last is rising a big issue with how many days the union flag can fly close businesses in belfast millions in the trade this time around the riots sparked by a decision not to let louis gray past the nationalist area with the arrival of the former u.s. government peace envoy richard haass to chat. it take that a new reach can be stated to keep the peace process progressing every year that we had this time of year. to try says mode and that's why you know it's very welcome

development of the drug is agreed to the chair and all party talks to look at some of the very thorny issues that of. the peace building here for a number of years saturday looks like belfast next week has nothing controversial ruling by the parades commission another for a yes move potential we know that great series price a search on. a look at the movers and shakers in the financial world is up next in prime interest. you want is something truly baffling the u.s.

supreme court has ruled that generic drug makers cannot be sued for bad reactions to their products only the original branded creators of the drugs can the court's decision was five to four overturning a multimillion dollar award for a woman who was horribly wounded by taking a medication which gave her toxic epidermal necrosis which is basically the equivalent of getting third degree burns all over her body and of course have. or winning the case mutual pharmaceutical company is demanding their millions of dollars back from the woman who they naturally blame for having side effects from the medicine they made themselves remember this is not just a ruling about one drug but ruling about all generic drugs which are eighty percent of the u.s. market all of them will not have any accountability i cannot wrap my head around the logic of only punishing the creator of a product and great a community to anyone that later reproduces said product i mean would any sane person say that if you shoot a person with a colt forty five pistol that is a crime but if you use

a copycat made in mexico to blow your neighbors it off well that's ok because it's a generic copy no no sane person would allow drug producers to have no liability for their product but that's just my opinion. that afternoon and welcome to prime interest i'm perry i'm going in a big wish and it's today's headline. i don't understand gold yet that's what our beloved fed chairman actually told congress today maybe that's why jerry wants three hundred tons of it back that would be called the fat is all being on its behalf we have just one word for you finance minister sharon tungsten but don't worry chairman bernanke he assured the s. and p. five hundred now it all time highs that the monetary q.e. stimulus will continue until the economy can stand on its own feet such

anthropomorphization is quite quaint for an economy tradition isn't it we debunk the likes of bernanke you can talk about the mortgage if you believe with economist stephen king later in the show and jamie diamond can't seem to find it's hair that isn't in the hot seat j.p. morgan is about to shell out a few hundred million and a settlement with the federal energy regulatory commission that would be for allegedly. a nephew waving energy markets in california and iran style hard lines already settled for four hundred thirty five million dollars and a similar settlement for j.p. morgan what amounts to well just one sixtieth of a twenty six billion dollars in revenues reported last friday no word yet on how much it actually profited from allegedly bilking americans by only subprime is back the consumer financial protection bureau just strengthen mortgage underwriting standards but if you don't fund fall under the new rules don't worry that's because the guy who helped write the rules at the c a p b just went private and he started

a company that will service the very market his old regulatory body now excludes and yes even providing an interest only financing because that worked out so well in two thousand and eight you can't make this stuff up period breaks down the boom bust cycle later in the show. and here is what's in your brain interest. when it comes to economic textbooks and economic schools of thought we hear a lot about keynesian ism but there are actually many more flavors available in the economic marketplace earlier i spoke with professor steve king author of the

banking economics and i started out by asking him what he describes as the different economic religions. i'll start with the dominant one which is called neo classical and that school of thought includes people who in the media would be cold kind and want to pull krugman and at the other extreme cold what is termed freshwater economists. as opposed to salt water law chrisman they're also on a classical by start from the same basic idea of how the economy operates and how people behave in the economy and they simply have different nuances of want to strangle the other when they call themselves kinds ian these are people who've been told kinds as he was interpreted by polls samuelson and there was such a reaction by the aca lots of kinds to samuelson's but as far as complete distortions of kinds that another group broke away completely in the call themselves post kinds again and i buy some souls much more on the original works that kinds did and they see had upon uncertainty as neoclassical which is the

thought i thought the largest group in which is a protest group that goes back to the kinds talking about uncertainty and being out of equilibrium and then is an austrian school of thought which comes out of people . mazas and so on. and right and wrong and they are actually close in since the theory of value to the new classical holes but they're closer in terms of how they talk about instability and capitalism and disequilibrium and the behavior of finance to the post kind so there's a quite a quite a mess there and a very very hard to get reconciliation across that the austrians they they talk a lot about the ordinal value of various things ordinal value preferences and the marginal in the marginal person how does that fit into the kinsey and world or the post keynesian well well that's quite consistent because the new across the coals and the austrians both believe that people are out there as utility maximov those

and the firms are out there as profit maximizes and we have to work from the individual level up to understand the economy and that's how they think about it the post kinds against aren't really. i have a coherent theory of value like that but in fundamentally the saying is objective fact as in the economy costs of production determine processes profit the whole idea that you can maximize the same as being a naive view which which doesn't take account of uncertainty about the future and you you can't maximise what you've done and therefore you have to behave in the face of uncertainty and therefore you'll take rules of thumb and you'll extrapolate current conditions and so on and you'll go with the hood so that is much more an idea of being able to follow i'm sure in your how you slot into society in the classical and the austrian view we're supposed kinds of much more lock it aside it's an uncertain world out there and people go in group behavior much more socially class all right and how they think they will behave and people behave in

the face of fundamental uncertainty about the future so they will extrapolate they want they won't be behaving behave sensibly given what they know but what matters most is what they've done let's talk about the role of banks it seems that they are excluded in a lot of these models and this is something that you talk a lot of yeah this is not being able to do the point which would you would think the crazy people would be the ones who say you can analyze capitalism without including banks state money if you're right and the classical they dominate the professions so the standard theory the bank used to the crude ones to crimes and so on and why back in samuel's and as well said you can model capitalism as if there are no banks no did and money and we all do bottom and we're saying that i capitalize on you know what if you're analyzing interesting little fictional world but it's not the real world so you must include banks state and money in the way a model of the economy and when you do that of course that what banks to has dramatic effect upon how the economy all price and that's what i fundamentally analyze what we actually have a chart here of yours and it is a u.s.

private debt to g.d.p. ratio that has five years in private debt reached record highs starting with this graph in one thousand twenties so are you. bill expecting to see a private debt deal leveraging what would trigger those that should have been just working with richard by the gov woods foundation right now to reveal all of those figures because we found them actually including some bank that i shouldn't include in the profit at this we're going to be changing that child has some point but yes there is we have got to a level of debt in terms of the private sector which are probably three times the level which i think is sustainable in the long run so we're going to see a deal a bridging which is roughly equivalent to one is sure to driven out of the economy but there can be periods where you'll go back into borrowing money again and one reason we actually seeing a bit of a boost to the economy right now is people really were trying to clean businesses are borrowing money again so does this have anything to do with policy i think the fed policy is encourage people back into debt again i mean for fundamentally don't realize this but a major reason why the economy's recovered to some it's very very monitor great

growth is that by all the stimulus that the gov the states pumped in it slowed down the road to private sector do labor during and then and charge people back into big debt to buy shares and bought property and so on and that's actually giving a debt finance boost to the economy that is making things better than they would be without the debt finance boost but of course we're getting back into the assignments territory again yes and what do you think the trigger event will be if any that causes this actually to leverage is that a crisis of cons for confidence in the u.s. dollar is it in europe is it trying to it could be because the real goal of the whole of external thing but can also be the internal one that. because when you're borrowing money and you are spending additional borrowed money is stimulating the economy but at some point people stop to worry about the difference between their income and the level of that they've got and so if you get over locked in so people to take on more debt than that can cause a downturn and that itself can happen simply out of things like that as it did during the property bubble people borrowing money to buy houses and lots of people

losing money on that tried they only managed to get out of their cars they could refinance as a camera gave a vehicle to arizona. once once you get a full training that right of birth and how to process that can trigger people to stop losing money and then the borrowing the accel the russian of borrowing which is necessary to keep it going on slows down and so simple to slow down the right of growth all the change and it can be enough to trigger a downturn that's what happened back in two thousand again in two thousand and six with the housing market it took to two thousand and eight before the right of change of debt went from free rausing to fall down and then when that happened that's when the downturn it could right and especially we saw with the fed in two thousand and four two thousand and five keeping interest rates really low record almost record low at the time one percent for over a year and now we're almost five years into zero interest rate policy what effect where can we go from here is the fed stuck in a perpetual cycle well because the fed want to which i think they should have done should have actually got in there and rescued the debt is not risky at the

creditors to try to keep the banks alive that would lend to the lousy dead rather than getting the debt is out of a debt i should never have been tossed to in the first place and so so long as there are just thinking i can do it by increasing the reserves of the of the banks and by not directing money to main street rather than wall street we're going to continue falling back into this crossers and they don't only way that there has would just by inflating asset crossers that was a deliberate policy yes and they have them and we see rising stock market prices we actually have a graph here it's the ratio of margin debt on the new york stock in to g.d.p. as well as the dow jones industrial average and you might recognize this. one. because you can do in the back to the one hundred twenty s. and it was a similar story this will go by as i think this goes back to late forty's or fifty's but it's the same story exact the margin did drop to the level of stock prices and it's a positive feedback loop if you if you see the stock market willing to tack on. to

gamble on it because you tack on the modern day to leverage up the asset process but the positive feedback loops just like it was a sound. where somebody puts the mark too close to the speaker and what happens is goes when and then a bright lights and that's what we see happening in the roses in the folds of the positive feedback between the level of leverage and the level of asset process it's all about the liquidity it's all about leverage and unfortunately we have let the banks get away with dramatically excessive levels of leverage which works for a while and then causes a collapse and that's not my way to run a capitalist society what is the right way to run a couple of go to constrain the banks and how do we do that from a regulatory perspective i think regulators can do it i think regulators are too slow moving. to get seduced by the banks of it's obama certainly happened with the regulators and since the great depression what i would prefer to do is to set up rules that a quarter of them about the maximum amount of leverage that a bank can for a particular type of push or so i have what i call one thing

a cold pill which stands for property income limited leverage over. and that is that rather than banks being lending supposedly on the income of the bodies for a property than that some of the land is also controlled. between the income of the property itself and the amount of money in the land so i give you a preview right now you're not competing over some property insurer in washington somewhere and the property of. fifty thousand dollars a year in ranch that's irrelevant to us and the e.u. and i will fight over it by getting trying to get high leverage with the same income and the one of us would win with the one about the high level of leverage from a bank which makes us want hard leverage what i want to do is change of the side the banks can only end up to a maximum of sight ten times the rental income of the property so they're probably on fifty thousand dollars a year most either of us could borrow is five million dollars but then if you want to get them all the knowledge of what you've got to do is save more money. so

that's that's what i want to do all i want to stop the positive feedback between the leverage and asset process and you can do a similar thing on share markets as well. steve kane this has been fascinating thank you so much for joining me you're welcome. coming up herion breaks down the boom bust cycle so pour yourself a tall glass of animal spirits then i do all steve keen on an ancient tradition with a new twist called the mortgage jubilee. i would rather add splashings to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t.

question more. syria and reversed momentum rebels are now killing one another in alienating the people they claim they're fighting for the assad regime has regained lost ground and is on the offensive in the meantime western powers are showing we lucked into to provide arms to the rebels is it now time to consider a process to stop the violence and talk peace. or do we speak your language anytime of the law or not at the end. when music programs and documentaries and spanish more matters to you breaking news a little too negative angles couldn't stories. you hear. that try to alter the spanish find out more visit actuality all tito is calm.

right from the scene. first street. and i think picture. on our reporters. and. senators warren mccain they can't well in king recently introduced the twenty first century glass steagall act to rebuild it the wall between commercial and investment banking this bill would reinstate regulations that were repealed in one thousand nine hundred ninety that some have finger as the cause of the great recession

senator warren was recently interviewed about this legislation and feel strongly that these regulations need to be put back in place. going to have a fifty nine feet and sure right you're going to have savings account and checking account they really do have to be rolled off remember we have these three years following the passage of one stiegel in which we've had eight hundred number of bank failures the whole boom and bust cycle from seven hundred ninety seven to one nine hundred thirty three when away and. so let's break down the boom bust cycle that senator warner referenced the boom bust cycle as a time period characterized by sustained increases and several economic indicators followed by a sharp rapid contraction some schools also call this business cycle theory and there is debate among a what spurs these peaks and troughs in the economy the austrian school.