u.s. president obama urges republicans to reopen the government following the stalemate over the new budget which will see workers lose millions of dollars from their pay packets. the old israeli choose not to be un general assembly as prime minister benjamin netanyahu says iran cannot be trusted after a thaw in relations between tehran and washington. britain considers pulling out of the european human rights convention with senior politicians claiming rights rulings a standing in the way of justice top developments this hour on. live from our studio center here in moscow where it's just turned eleven pm this is r.t.

. the us government has partially ground to a halt for the first time in seventeen squabbling democrats and republicans couldn't find a way to agree a new budget clashing over the current administration's high profile reform of the health system now 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 cost the economy up to fifty five billion dollars now that is as much as the effects of hurricane katrina back in two thousand and five services such as the courts transport and the mail will continue to work but they expect to experience difficulties and delays. as the details for us now from washington d.c. . leadership in the far right caucus in the republican party here in the house

isn't ready to listen to their game planning right now in a meeting to figure out what their next step forward is now that the senate has again rejected their attempts to defund obamacare and curiously budget chairman paul ryan said earlier today that he thinks that ultimately and he's a republican said ultimately the debt limit a few weeks from now is going to be the thing that brings both parties together and comes up with a deal of course the government being shut down for another two weeks until the debt limit could have enormous economic consequences moving forward it's not just people with waltz wages those people aren't spending money taurus aren't going to museums they're not going to parks businesses are cutting back if we go back to nine hundred ninety five in one thousand nine hundred six the federal government shutdowns cost a little over a billion dollars and they were shut down for a week so fast forward today we can imagine that the government continues to be shut down we're talking losses of billions of dollars and moody's predicts that if we're shut down for three to four weeks we're looking at a fifty five billion dollars hit to the economy which would just be

a self-inflicted wound by the u.s. government and that would mean even more a steroids for the americans. right ultimately this does come down to austerity this is the seventh budget battle in the last two and a half years between president obama and congressional republicans and in the last six people who've been pushing austerity have won we've seen austerity spending plan passed after austerity spending plan and you could say that's happened because republicans like to attach extra things to it like defunding obamacare so when democrats negotiate that away the small the austerity spending limit stays in place so whatever resolution we get to the government shutdown in the next days or weeks it's going to be an austerity spending plan and already the middle class in the united states is feeling the effects of this austerity just as working people across the atlantic in the in the european union are feeling the effects of austerity over there with with lower wages and even we've seen suicide rates spike up and deficits are getting any are getting any better over there. well the government has written shut down

a number of times in recent years but lawmakers have always managed to avoid it by the skin of their teeth now let's look back at the close of schools one in two thousand and eleven government closure was averted just one hour before the deadline after a painful legislative standoff a budget deal was finally agreed that ceiling was another nerve racking issue in the summer of two thousand and eleven it made markets in america and around the world tumble but the sky didn't fall in as it was agreed upon a whole two days before the time was up now it's been seventeen years since the last time the government partially ceased operating but it's actually the eighteenth time the u.s. has taken a so-called spending gap in one thousand nine hundred seven the government was shut down three times in as many months for london based market strategists mike ingram has told us that america keeps stepping on the same rate. makes them look like idiots quite frankly. i think previously details. of the government just about

managed to avoid a shutdown two and a half years ago and at that point in time credit agency standard poor's downgraded u.s. debt from its aaa status and one of the reasons they gave was they said all that you know that this country is becoming ungovernable there's no visibility on what your fiscal policy is that politicians are just playing with fire year after year and here we are again now 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 we're probably going to be in the same sort of situation next year . let's get more analysis on this from investment advisor patrick young he joins me live now from brussels well patrick you are an investor so what does this do to the trust of people like you in america now. well unfortunately bill this is just another example of how difficult it is to trust the american government machine and machine it is because truly the thing that's being shut down at the

moment is a massive leviathan even compared to what it was in one thousand nine hundred five but ultimately what do we want to see as investors well we like to see leadership and that's one of the problems we have at the moment in one thousand nine hundred five the shot done there was quite different bill clinton as president did seem to be in charge of the country unfortunately mr obama seems to be occupying the white house but he doesn't give us any confidence that he's actually leading the united states of america ultimately right knowledge investors aren't taking any for their knee jerk action but of course what we're warming up to is going to be another couple of weeks' time somewhere between i think the seventeenth and the twentieth of october when actually the american government is going to reach the point where it has to go and borrow more money and the problem with that is it's been drinking vodka like an alcoholic for forty or fifty years and the bar tab needs to be paid but in the meantime they're hoping to get some more credit table and do you think

then the u.s. could actually suffer a default if this crisis continues. oh absolutely there's no reason why it can't end up with a default i mean what we've got is we've got a president in mr obama who is affectively happier to go often to go see it and have a conversation on the telephone with the president of iran than in years to talk to those who are after all democratically elected representatives in congress ultimately there is a problem that's not to say that those in congress aren't being remarkably stubborn at the same time but then again one has to say everyone has been driven to extremes we know is that the last time we reached this sort of hiatus america lost its wonderful glittering top tier triple a credit rating why did it lose a lot stuff because a mr obama does not seem to be in charge of the country and b he certainly not stewarding the finances in any way that's remotely coherent going forward

ultimately the american nation the government needs to go on a diet at that point in time investors will be happier and of course there will be much less risk of a default petry there's a lot of overreaction here isn't it if this crisis may not last very long and of course the u.s. economy is showing signs of recovery so it's not looking that bad for the future is it. oh gosh you know it's very important to understand where we are in this perspective and that is of course that in the little bubble which is washington d.c. and the capitol politicians love to try and make a drama out of anything that they possibly can we're seeing this incredibly amazing entrenched standoff and you know what's really happening is actually ultimately while obviously there are problems for those million people who aren't getting paid at the moment and indeed the eight hundred dollars and who ultimately have been furloughed for the time being actually what people may end up seeing is that really the long arm of government doesn't do that much for them private enterprise can

still manage to carry on and let's face it private enterprises being the engine of growth in the united states economy the economy is returning to growth there are opportunities in the world economy but at the same time we don't like to see particularly as investors the idea that the government is willing to play with fire and sap what we have here ultimately a dispute between what looks like frankly a few needy pain agers but instead they're the government of the united states of america bickering over something in their backyard of which we really shouldn't need to have an argument whatsoever and just briefly patrick as an investor what are your thoughts on the dollar that some are saying this should lead to a call for more alternative reserve currencies to be investigated is that really true to to challenge the dollar over this crisis. we have reached a point where we are not the copernican revolution in finance things like bitcoin

crypto currency and other alternatives possibly something like say the chinese renminbi or the indian repay or anything is going to become a much more important reserve currency going forward the u.s. dollar has had an incredible vaunted position as the economic and indeed the military superpower of this age ultimately over time that is gone to a road and therefore we are going to see more alternatives people want to hold assets that they can ultimately trust and to that end of in bitcoin we trust in the future rather than the u.s. dollar or just briefly again the the impact on the european economy and then you are in the heart of europe other alarm bells sounding there you talked about the global implications earlier but what about for europe itself. well i think truly the implications for the european economy right now aren't particularly considerable they've got such an absolutely scintillating mass of their own creation here three incredible government spending mouth of unemployment all sorts

of other crises that ultimately a little blip in the u.s. budgetary discussions it tends to be a degree of well early punk of mind for christmas but is it ultimately going to be really european economy oh goodness no profitable ready to all by itself. great to talk to you as always investment advisor you know live in brussels thank you very much good to see here and i'll take thank you very much one of the view on today's developments from james go break he's a professor at the university of texas and will save his. school economics is the fragility of much of the global economy even more pronounced now in the mid this current shutdown with singh in the us well the events of the last few days or will not make a material difference to a world economy over and over in a substantial period of time no we are looking here at what is principally a political drama inside the united states and the issue is whether the congress

would agree to delay the implementation of the health care law that was enacted two years ago three years ago and that congress in the form of that of the of the senate has refused to. concede to demands on the part of the republican leadership of the house that they do that the result of it is that. eight hundred thousand federal employees have been siloed and a number of government services have been interrupted but to it it is you know the business of the country goes forward and the notion that this is going to have some cataclysmic effect on even the u.s. economy let alone the world economy is is belied by the performance of the financial markets today which of the norton charlie on exceptional entirely work mary so for example the brics countries the likes of china brazil and indeed russia have nothing really to warn about what's happening at the moment well i think one

yes no i don't think they have anything to worry about now. and in terms of the u.s. dollar itself just talking to patrick young a little this is adding coals now to question whether other reserve currency should come into play or again is that just too premature and it's very much an overreaction about what's happening at the moment in washington but it's a zero on a reaction and it's very clear that the bank of japan the people's bank of china the other large holders of u.s. treasury bonds and bills hold them for a very good reason and that the alternative which might be let's say the euro denominated bonds of the italian state are not going to become relatively speaking or magically more attractive because there is political drama in the united states so it's clear i think that nothing is happening on that front and i think it's a reasonably good bet that nothing will happen on that front but as a. shorty this couldn't come at the worst time as the u.s. economy is showing signs of recovery once you have some sort of impact on that

recovery process if it goes on for a long time then you might expect that the. federal employees who are not getting paid will have to curtail some of their purchases and that will that might have a noticeable that but i say noticeable that you know the numbers are in the tenths of a percentage point on the growth rate and the difference between say two point five and two point three which is something that you know it will show up in the headlines but it will be very hard to isolate speak specifically what its impact is on the on their on the on the population as you've been with the timing of this is that if it doesn't go for particular long time just how long could something like this go on for because the last one was what a three week period where the government might shut down the banks and i could be comparable i wouldn't be surprised if it goes on for a very long time and the reason is that. some point.

there will be a number of republican members of the house who will begin to feel that. the political price is rather high and as soon as the leadership in the house. bring could be persuaded to bring a clean continuing resolution to the floor of the house of representatives without the d. the delay in the implementation of the health care law then that resolution will pass with democratic votes and a handful of republicans but the problem here for the house leadership is that this would be very bad news for speaker boehner and the leadership team because the majority of their own caucus would be enraged but from the standpoint of the political impasse should they choose or should they see a significant defections in the what remains of the moderate wing of the republican party and then this could be over with all right forget about the politicians what

about those poor people who are being paid to them i mean you say well this could go on it could be comparable to the last three week period where there were no funds coming what does that do for people they're going to go into for the debt make an effort on the savings i got bills to pay and a lot of people are affected by this only well that's true but i think your your viewership has had plenty of experience with much more severe conditions. so i you know i i don't think it's a mystery what happens when your paycheck is delayed by a number of weeks it's not good news on the other hand federal employees are not generally people who are living hand to mouth either so that is a. i think what that overstate the degree of hardship that's involved here james galbraith thank you so much for tom great to talk to professor university of texas a member of such as if in fact one thing and the most cost going to be cannot make life altering thank you. much more government must now shut down until congress funds it again.

more news after this short break. so we leave the. potions to cure. that no one is with to guess that. this is from. politics. could take three. three. three.

three. three. three. videos for your media project. continues here in ulti the israeli prime minister has called iran's new president hassan rouhani a wolf in sheep's clothing insisting the country is still committed to israel's destruction and then you know he was talking at the u.n. general assembly to urging u.s. president barack obama not to fulfill what he called sweet talk. they really prime minister addressed the world body saying that he does not believe all of this optimism and conciliatory words that have been brought to the united nations by iran's new leader hassan rouhani he believes that iran is continuing to use its

nuclear program to eventually build a nuclear bomb he says that if iran nuclear program is only being used for peaceful purposes why would they continue enriching uranium at such a high grade why would they continue having hidden underground nuclear reserves benjamin netanyahu also pointed the finger straight president rouhani saying that he was the mastermind of a. strategy to advance iran's nuclear weapons program and he urged the entire international community to keep up all the sanctions against iran and he says that if israel is forced to stand alone it will stand alone if it has to make sure that iran does not develop nuclear weapons just four days ago when president obama and rouhani had a historic fifteen minute phone call that was the first time in thirty four years that the nation's leaders have spoken and president rouhani when he came to new york he did generate a lot of buzz

a lot of reaction and positive reaction from the media from the international community there was also a successful meeting that took place between the five permanent members of the security council in germany and iran's foreign minister and u.s. president barack obama when he was meeting with with the israeli prime minister benjamin netanyahu on monday at the white house reassured netanyahu that when it comes to u.s. u.s. interests in the middle east that all options including including military options are on the table but the u.s. leaders did say that the iranians are ready to negotiate and diplomacy has to be put to the test so here you know israel now finds itself in a position where the u.s. the europeans are engaging iran are taking the run up on its offers of being more transparent or working out a deal on its nuclear program and israel of course is not happy about this. international inspectors from the netherlands have crossed into syria to oversee the destruction of the country's chemical weapons stockpiles

a group of twenty came from neighboring lebanon to find and dismantle about a thousand tons of toxic materials this comes after another group of u.n. experts completed an investigation into alleged gas attacks on monday u.n. security council approved the probe last week as part of an agreement hammered out between moscow and washington following an attack in august russia's ambassador to the u.n. to tell the trick and told r.t. that this could have a positive effect on the whole middle east of elimination of chemical weapons and syria would behave the way into tackling the very difficult problem of work creating in the middle east is own free of chemical of weapons of mass destruction and their news of delivery and this is that it will create a political momentum which will allow us to move off wrong from an agreement on chemical weapons in syria to agree to an agreement on a political settlement of the crisis in that country and convening the geneva two conference and you can watch so if you have an out as full interview with russia's

u.n. envoy on sophie co this friday. it is. britain 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 rulings such as allowing foreign criminals to remain in the country indefinitely as long irritated the government and the public coachman's british home secretary theresa may told the conservative party conference that the current immigration system in the u.k. is like a never ending game of snakes and ladders and that quitting the european convention for human rights might be a route that the government chooses to go down david cameron has already endorsed that option at 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 fast deport suspected foreign criminals and then hear their appeals often they've been deported the way those 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 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 that 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. 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 were seized and human rights watch called it a shocking act that was aimed at punishing or intimidating journalists and in terms of the reactions to the conservatives latest proposals well they're already there is highlighting that these plans courageous may well be illegal under current laws and 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 some other international news making headlines this world up for senior members

of greece's far right wing golden dawn party have appeared in court on charges of being linked to a criminal group stabbing him and he racism activist almost two weeks ago public outrage at the government's failure to contain violence by golden dawn supporters the link to numerous attacks on immigrants and the young rest has pushed the government into preparing a bill which would outlaw racist hate speech. a suicide bomber killed five police officers and wounded more than seven others in iraq's northern city of tikrit the attack came a day after a series of blasts in around baghdad killed at least fifty five people and al qaeda linked group claimed responsibility for violence in iraq has reached its highest level since two thousand and eight. brings up to date for the moment i'll be back with more news with the news team in just over half an hour from now in the meantime let's kaiser and stacy her but blast the bankers in the latest edition of the closure report that's after this break.

recently the ministry of internal affairs of russia declared that they're going to drastically increase operations in and around the moscow subway system with a major emphasis on illegal immigration there is 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 or generally taboo any form of asking people to see ideas viewed as an invasion of 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 for it and thus different then how can you go about looking for illegals without looking for people who are different i.e. profiling if you were looking for a criminal of slavic origin in uganda when the police be wrong to stop me due to 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 involuntary blood and urine tests that is what immigration control goes over the line but that's just my opinion. welcome to the kaiser report imax kaiser a new study has revealed the negative side effect warnings can increase sales the

study found that consumers tend to buy more of a product that advertises potentially harmful side effects like weight gain and heart disease than products that do not yeah it seems the warnings have the paradoxical effect of creating trust in the consumer pig this could help explain why david cameron has brought forward by three months the conservative party ponzi scheme marketed under the name help to buy the ponzi scheme comes with economic health warnings from mervyn king bank of england the i.m.f. and from economists around the world that the program will destroy the u.k. economy despite the warning greater fools are lining up to put just five percent down on a property worth up to six hundred thousand pounds so that they the taxpayer chump will put down the remaining fifteen percent. pop open the bubbly or is a perhaps

a bottle of maggie maggie stacey what's going max it's called our maggie it's a beer being sold at the conservative party conference they're tearing the return of the housing bubble pm triggers new house sales spree two hundred thousand get chance to buy as cameron starts twelve billion pound mortgage guarantee scheme next week prime minister yesterday announced help to buy scheme will start from next week three months ahead of schedule quote i will not stand by while hardworking people struggle to get a mortgage but critics say dangerous scheme will inflate the market well there's a couple things here one is as you point out in the opening people tend to gravitate toward things that are bad for them so when they advertise drugs that have negative side effects people tend to gravitate toward those things you know on cigarette packages the more cancer ridden long as they put on the the package.