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tv   Headline News  RT  October 1, 2013 11:00am-11:30am EDT

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the u.s. government shuts down for long and the result is a standoff between democrats and republicans over the new budget workers are said to lose millions of dollars from their way to markets. britain considers pulling out of the european human rights convention or with senior politicians plaguing the rights rulings are standing in the way of justice. and these roles prime minister uses his meeting with barack obama to warn against iran's charm offensive after washington and tehran broke decades of silence with the phone calls last week.
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international news live from moscow this is our city with me hugo chavez thanks for joining us the u.s. government has partially ground to hold for the first time in seventeen years squabbling democrats and republicans couldn't find a way to agree a new budget clashing over obamacare the current administration's high profile were full of the health system the essential elements of the government such as the military and national security will continue to operate but eight hundred thousand workers are being put on unpaid leave and over a million are being forced to work despite their pay being delayed experts estimate the political stalemate could cause the economy out of fifty five billion dollars that's as much as the effects of hurricane katrina in two thousand and five services like the courts transport and the mail will continue to work but they expect to experience difficulties and delays on her from his political commentator sam sux. and around the country there's about eight hundred thousand federal
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employees who've been furloughed who are not going to be receiving their paychecks and most of them are here in washington d.c. also you have parks closed around around the nation in part in particular here in d.c. museums closed and all these things are going to have compounded on the affects it's not just people with lost wages when people aren't getting paid they can't spend money businesses start cutting back so the longer this lasts the more and more the economic effects hile upon each other so we can look back to ninety ninety five and ninety six and look at the total cost of that government shutdown and that was about a billion dollars back then so assuming this lasts for a week we can say ok it's going to be somewhere around a billion but if it continues to last longer those effects keep compounding we're looking at somewhere and moody's estimated things like thirty five billion dollars right woman does that mean for the american people it doesn't mean more austerity for them well yeah it does mean austerity the government shutdown look we're talking about money coming out of working people's paychecks that's that's
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a form of austerity if we get to the debt limit that's an even harsher form of austerity because then the government's going to have to prioritize its payments and only pay certain debt obligations and not other obligations would force even more spending but it's important to keep this in perspective this is the seventh budget showdown between president obama and congressional republicans and each of the last six austerity hawks in congress have one we've had austerity spending resolutions for two and a half years now and this if there's a resolution of this government shutdown in the next few days it's going to be another austerity spending plan republicans have already won on the spending numbers here democrats of cave the only issue here is obamacare so yes there's going to be more austerity coming and we're starting to see the same effect here in the united states that you see in the european union with working people's wages going down public services being cut suicide rates spiking and ultimately deficits getting even worse. the government wrist shut down a number of times in recent years but lawmakers always managed to avoid it by the
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skin of their teeth less knowledge bank and the closest calls in twenty eleven government closure was averted just one hour before the deadline after a painful legislative standoff a budget deal was finally agreed the debt ceiling was another nerve racking issue in the summer of twenty eleven it made nervous markets in america and around the world tumble but the kind didn't fall in as it was agreed upon a whole two days before the time was up and it's been the seventeen years since the last time the government partially seized operating but it's actually the eighteenth time the u.s. has taken a so-called spending gap in mind hundred seventy seven the government will shut down three times in as many months and london based market strategist mike ingram told us america keep stepping on the same brakes makes them look like idiots quite frankly. i think previously detailed the government just about managed to avoid a shutdown two and
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a half years ago and at that point in time credit agency started a pause daryn graded u.s. debt from its aaa status and one of the reasons they gave was they said although you know this country is becoming ungovernable there's no visibility on what your fiscal policy is because politicians are just playing with fire year after year and here we are again two thousand and thirteen in the same situation and i would have to say that even once a deal is finally thrashed out this time around and one must hope that that will actually happen probably code to be in the same sort of situation next year. british prime minister david cameron meanwhile believes the view as shinedown poses a risk to the world economy and jeffrey summers associate professor at the university of wisconsin milwaukee told me earlier the image of the united states as front runner in the global economy is being further undermined. confidence in the united states is beginning to erode because it appears more and more ungovernable
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and that is directly linked to the issue of the dollar senior so of course for the past thirty five years the united states has been to the u.s. dollar being the global reserve currency because people have confidence in the united states is the most stable country or stable economy in the world that diminishes of course then we have this problem of people choosing to park their assets in other vehicles try to tell us more about the people of america themselves like what kind of the most vulnerable. well for the past really thirty years as well but especially the last ten years the working class and the middle class have taken a beating in the united states financially so they've seen their living standards stagnate or even a road and this will just further that because it takes demand out of the economy so this past march for instance we had the crisis with sequester the nonpartisan congressional budget office estimated that that has cost the united states some one point six million jobs that's really huge in
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a time of this continued. unsteady economic environment so this just further adds to these pressures and again contributes to this idea that the united states is increasingly ungovernable and unstable so it's a very very unwelcome i think development. and standard and poor's rating agency has warned that failing to reach an agreement by mid october could lead to the treasury missing debt payments and possibly the first ever u.s. debt default and for more on this when our children live by a french economist pare mississippi a welcome to our take you to see with us as so from your point to you how long will it take to resolve this crisis. well usually this kind of situation is pretty quickly resolved and we could expect that by next week. to be of nevertheless the problem
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will still be with us and certainly we will have the consequences of the shutdown going on through all october and november so it's absolutely true that there will be a very real huge shock here on the u.s. economy right that will kind of a global contingency plan is in place in case of a u.s. default well the default is very close the nightmare scenario and i think that all people involved will do the best they can to avoid as a default nevertheless yes we can complicate the only denies the possibility of a default if a default is to take place is that the. equivalent of an clinton earthquake and it is. not because of this conflict once that i don't think that the default will be
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possible. there. and then. try from agreements before the mid october before the deadline for the default here but what does this whole situation do to the reputation of the u.s. dollar as a global reserve currency. yes certainly and it absolutely obvious is that all these events the shutdown the possibility even removed of a default weighting of the reputation of the u.s. dollar by so we the fed policy is also waiting of the reputation of the u.s. dollar but on the also hand it is very clear that so far also a currency called pigs of police of the u.s.
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dollar are certainly not the euro which it's a lot of a huge problems and it's not sure that the euro will survive in two or three years certainly a lot so again the u.s. well the decision is in the hands of the chinese government and so far the chinese government is certainly not really to agree to have its own currency becoming an international reserve currency so by default zero us the law used to stay as the main reserve currency right and of course all weakness saying our lot of divisions within congress and also the prospects for the future of american economy than. yes that's absolutely true we have a huge debate about health care. you know that democrats are very very
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pushing pushing very very seriously but the main thing is the obamacare as a republican are highly against that we knew also that the grassroots representative from the regulation party people coming from the tea party movement are all soon waiting in the balance and. probably inclining more and more as the republican party to the right or even to the far right but i think that a compromise is to be found and they will be found even if the next or the next two weeks all the next week now is a problem is to understand first if this compromise will be a stab a compromise and the sit on point until it was a very involved whereas this compromise has to be fought on this point we have absolutely no visibility and this is
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a major cause of uncertainty now in the national finance and international economy all right thank you very much french economist director of studies at its core of the highest studies at social sciences in paris. bring in the analysis on this story after a very short break stay with us here in haiti. this is the media so we leave the media. the same motions that your. party is that the. shoes that no one is that stand with to get that you deserve answers
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from. politics. could you take three. point three. three. three. three. three blog video for your media project freebie deodato party dot com. welcome back and let's now go back to our top story of the partial shutdown on the u.s. government following the failed washington's lawmakers to agree on a new budget unless i get more reaction from nick parsons an expert in foreign
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exchange and the global money markets mr parsons welcome to aussie great to see you so of course as someone with decades of experience in the money markets please tell us how old they said fags the global economy. well i can use the benefit of their experience to remind you what happened last time around the u.s. government shutdown in one thousand nine hundred five in early ninety six cumulatively it was around a twenty day shut down by the side of christmas it had the effect it's calculated of knocking around one point six percentage points off that quarter's g.d.p. growth now if you think the u.s. economy currently is starting at around two and a half percent take away one point six from that and you really haven't got very much at all so there is a significant slowdown in prospect for the u.s. economy and indeed for the world economy if that materializes and the u.s.
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debt is growing how close is america to default. oh about two and a half weeks it appears that the money's going to run out somewhere between the seventeenth and the twentieth of october and no amount of fiscal juggling and accountancy tricks are going to hide the stark reality that the u.s. simply will not be able to pay on bonds as they mature and it would be in default if the debt ceiling is not raised at some point over the course of the next three weeks so this really is verging on a crisis and what worries me in terms of the reaction of financial markets here is that almost everyone we speak to expects that a compromise will be reached no can tell you what it is but everyone says surely surely they would not let it come to this well actually the politicians probably would because they're utterly hopeless they can't this is no way to run
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a lemonade stand let alone a democracy of three hundred fourteen million people and i think the real fear is going to be that this will drag out for some time to come and talking about the dollar how big a blow is that international standing. well i think it is a serious blow to its standing already over the course of the last four weeks is this deadline has approached we've seen the dollar lose four percent against a basket of currencies that pressure probably continues unless and until we get an absolute collapse of global equity markets because ultimately the u.s. for the moment at least is still seen as home which which benefits in terms of flight to safety so as long as we just have asset markets and global stock markets forming a little bit the dollar comes under pressure paradoxically it's only if those markets collapse and we get another crash in october that the dollar then begins to
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do well so in the absence of the worst case of a huge ten fifteen percent decline in global stock markets the dollar is going to remain under pressure looks like the global economy is held hostage by a group of lawmakers failing to reach agreement isn't this another sign that their world currency order needs major change. well i think it is undergoing some change but the problem is that no one who might ultimately be in a position to see their own currency perform that role is actually able or willing to do so you can't have a global reserve currency that isn't fully convertible so that rules out the chinese one you can't have a global current global reserve currency whose very existence is brought into question on a monthly basis so for the moment at least that rules out the euro so it is only the default for the feeling has got to be that over the course of time and that
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might be years rather than necessarily decades the u.s. dollar is really seeing the last of its the last of its power we're coming to the end of an era here. mr parsons thank you very much indeed for sharing your views but as we appreciate it nick parsons an expert in foreign exchange and global in money markets thank you. much more government must now shut down until congress funds it again. we're trying to slow drift away from the rest of europe continues prime minister david cameron said the u.k. may well withdraw from the european convention on human rights reading such as allowing foreign criminals to remain in the country and definitely has long irritated big government and public outreach point to buy a car explain. british home secretary theresa may told the conservative party conference that the current immigration system in the u.k.
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is like a never ending game of snakes and ladders and that questioning the european convention for human rights might be a route that the government chooses to go down david cameron has already endorsed that option that the opening of the tory party conference now the reason they are so worried about this is that at the moment suspected foreign criminals well they have seventeen different routes to appeal if they are meant to be deported under the proposed plans the home office would first deport suspected foreign criminals and then hear their appeals often they've been deported the witness foreign criminals and immigration lawyers while the loses all the victims of these crimes to the public where there is no risk of serious and irreversible harm we should deport foreign criminals first and hear their appeals later now the conservatives view is that the european convention for human rights simply prevents them from dealing with famous cases like that of radical hate preacher abu qatada who
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famously avoided extradition from the u.k. for over a decade because his lawyers argued that it was against his human rights to return to his native jordan where he could face torture there now that was an extremely embarrassing case for the u.k. government and gives you an indication of why they want to tackle the issue but this is a country already that hasn't been immune to accusations of human rights abuses itself only recently the u.k. government was criticized for detaining glenn greenwald's partner david miranda at heathrow airport glenn greenwald is of course the guardian journalist who uncovered much of the n.s.a. scandal and his partner was held by police that he through our ports and most of his documents all of his documents was seized and human rights watch called it a shocking act that was aimed at punishing or intimidating journalists and in terms of the reaction. to the conservatives latest proposals well they're already there is highlighting that these plans courage may well be illegal under current laws and
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that ultimately they could be the first steps towards the u.k. government simply ignoring the human rights of people as and when it suits them. and of course there's more news ahead including leaving a disastrous legacy as the pull out of nato troops for afghanistan approaches we take a look at how the drug industry in the country is now spreading across the globe. israel's prime minister has urged the u.s. president barack obama not to fall for what he called iran's sweet talk benyamin netanyahu is adamant to run remains committed to its nuclear program and the destruction of israel is being spurred into action by the saw in relations between washington and tehran after the leaders of both nations finally talk directly to each other in a partner i reports. he will be the last speaker wrapping up the united nations general assembly debate but israeli prime minister benjamin netanyahu will likely
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not offer the same harmonious tone heard last week from iraq's president who is expected to argue that israel and the world at large should continue to be on guard against tehran's nuclear program even insisting that the international sanctions which have been crippling iran's economy not be eased now just seven days ago iranian leader hassan rouhani delivered his debut address at the u.n. g.a. proclaiming that his government was ready to resolve any and all concerns about his country's nuclear program even promising more transparency and engagement with the united states during a meeting with u.s. president barack obama at the white house on monday israel's prime minister insisted that tehran offer immediate concessions by suspending sensitive nuclear projects or else face even greater international pressure now obama shorting
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netanyahu that all options including military options are on the table when it comes to protecting u.s. interests in the middle east or hope is that we can resolve this diplomatically bush as president said before i would prefer that we take no options off the table including military options while televisa of has been ringing alarm bells over tehran's alleged and nuclear program it is simultaneously even ignoring calls from iran syria and other countries to join the nuclear nonproliferation treaty that's aimed at keeping the middle east free from weapons of mass destruction israel has also not confirmed or denied if it has its own nuclear arsenal reporting from new york. bahrain's decision jail here to share his shocks the human rights community on our web site find out why opposing the government. the gulf kingdom is labeled terrorism and read about the international outcry over the accusations. and also an article called hundreds of
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thousands of unemployed in britain would have to work for free or lose their benefits had a line for more details on how london is planning to tighten the screws on welfare . the u.s. and its allies plan about buying sand had out of afghanistan next year but they'll leave behind a deadly legacy since the start of the war on terror twelve years ago the drug industry has thrived and it's not only for internal use made. hearing the world over all she is going to check out investigates. a war that kills without weapons silently with harrowing is production has increased forty times in the. nato started its war on terror in two thousand and one before that the taliban as brutal as their war heading forced the ban on poppy growing they declared it was against their religion so hereon production was very low when the u.s.
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and allied forces invaded the country they allowed afghans to grow poppies they saw it as a way to win locals hearts and minds the u.s. and allied forces have maintained that opium production provides a livelihood for afghan farmers but it's been destroying their lives the lives of thousands of children around three hundred thousand afghan children are now drug addicts my colleague visited one family in afghanistan three mothers all three addicted to opium heroin and marijuana they blow opium in the face of their children to make them fall asleep so that the grown ups can cater to their own addiction they give marijuana to their very young children they buy drugs before they buy food here's what their daughter said. fearful of the night my mother told me let's go to the bazaar i want to buy something for you i said really we went and my mother said to this man do you want to buy these he yelled out to give you and
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give us a hundred f. so we went to buy some dry bread another day my mom needed money and took my sister we were crying soo much then she tried to sell me again i begged him not to and she said that if i go to people's houses and beg then she'll keep me so that's what i do the u.s. and allied forces have been doing little to stop opium production in afghanistan is killing more and more people and not just in of gunston but far beyond its borders of ghana's that produces around ninety percent of the world's opium supply the bulk of the eight hundred and twenty tons of heroin that comes out of afghanistan every year ends up on the streets of russia and europe. the drug money feeds organized crime all over the globe kossovo drug dealers for example have become a predominant crime group in europe that is because seventy percent of heroin that goes to europe goes through the possible channel in the meantime opium production is growing in afghanistan last year they expended poppy cultivation almost twenty
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percent compared to the prior year and also what kind of a nation building was that when it's clear with these afghan children it was anything but that in moscow i'm going to check out and breaking the sad looks at the latest snowden revelations and other stories missing from the global media headlines daily. recently the ministry of internal affairs of russia declared that they're going to dress to increase operations in and around the moscow subway system with a major emphasis on illegal immigration there's an odd paradox when people talk about dealing with illegal immigration in terms of what the police should do people want the police to deal with it but any means of trying to actually do anything are generally taboo any form of asking people to see ideas viewed as an invasion of
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privacy or racial profiling well i don't know how exactly anyone can prove they are or aren't a citizen without id and if you're looking for people who are foreign and thus different then how can you go about looking for illegals without looking for people who are different profiling if you were looking for a criminal of slavic origin in uganda when the police be wrong to stop me do the standing out from the crowd i don't think so that's not racial profiling it is just common sense obviously it is best to fight the causes of illegal immigration rather than asking for id in moscow subways but they have to do something so i guess id checks are here to stay but there's a big difference between looking at someone's passport and doing stop and frisk or involved. very blood and urine tests that is one immigration control goes over the line but that's just my opinion.
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hey guys i'm out here martin and this is breaking in the set so it's a government shutdown even if everyone in d.c. is counting down the hours until the panda cam goes black while we wait our do nothing congress here let's take a look at the latest intelligence agency leak snowden's newest revelation expose a program called mean away the n.s.a. turns that into massive grass that break down all of our social connections yes details of everyone you work and travel with are now compiled into graphs resembling massive spider webs let me repeat the people that are linked to you through friends or friends of friends or friends of friends of friends can make you a red.

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