washington takes the first step to approve the long awaited deal to increase the u.s. debt limit just a day before the tensile devastating to fall. the destiny of the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to work financial crisis. highly publicized parts of it struggle legislators to. get it u.s. economy struck as the world's creditor. russia says u.n. action could help bring an end to violence in syria but once against excessive pressures that could lead to great libya style intervention experts stress the e.u. and american sirens being in force against a basket are only making matters worse. the voices of tens of thousands of anti-government protesters in easer all calling for the prime minister to stand or going on reported by the international media. just after ten am here in the russian capital you're watching r.t. thanks for being with us our top story the lower chamber of the u.s. congress has passed a last minute deal to prevent a devastating full scale default that's after months long political confrontati

u.s. government debt.it has really meant that america could live beyond its means for a very long time. and think we need to look very, very carefully at signs coming out of beijing as to whether the chinese are willing to continue to do that. >> okay, liouise cooper joining us live from london. let's pick up on a point that louise was making about a relatively tepid stock market reaction, and in termses of the european market, this is the case. it's less than 1% for the dax and the paris cac 40. they were up. it's like traders have been reading the fine print and listening to each other and talking to each other and not quite so impressed as once they were perhaps an hour ago or maybe even half an hour ago in terms of trading here. only the ftse is up by more than 1%, andrew. >> yeah. here in asia, a positive reaction but i suspect it was much more of a knee-jerk reaction. the initial news, the announcement by the president -- japan had been open for 40 minutes when the president made the announcement tha

china the biggest u.s. debt holder of just can be number two so political leaders are shocked at how long washington just to decide on this debt deal there were some chinese newspapers actually they even called this deal quote unquote irresponsible and immoral ok well this it has been a near miss has it as a what does this mean for the confidence in the u.s. economy worldwide. confidence even before the u.s. debt deal to be in the economy in the united states wasn't that high to begin with this only added to all of that people are worried that a lot of the two point four trillion dollars that is that in this deal to be cut in spending in the united states over the next decade has not been decided and given the fact as i pointed out before that it took so long for this deal to have there isn't much stage when it comes to these asian political leaders that these decisions will have it in a sort of it's timely fashion they're worried but you know there are all these political games when it came to passing the u.s.

yes because the more debt there is in the u.s. the more federal debt the more the taxes are going to go up because remember the government doesn't have any money the government either prints money or it borrows money. or it taxes the people and if the debt overhang continues to increase at a time when incomes aren't increasing and asset prices are going up americans are really going to feel the pinch because all this huge debt which is now looming over the united states has to ultimately be paid by the. people through taxation so any increases in debt obviously affects the american public because they're the ones footing the bill so what consequences willis financial man. have for international investors and their eagerness to bet on the american economy. while the worst loser out of all of this i think is the us dollar the currency is now in a very vulnerable position in my view i think sooner or later more and more people are going to come to the same conclusion that the world's reserve currency is no longer a reserve currency an

u.s. the federal debt now accounts for roughly ninety six percent of g.d.p. and as far as i can see there is no way this that's going to come down and the u.s. has no business getting a aaa rating and when other people come to the same conclusion as i do then i think there could be a rout in the bond market and as mr obama was alluding to earlier we could see seriously higher interest rates and a serious weakness in the u.s. dollar which is obviously very bullish for commodities and precious metals such as gold and silver but meanwhile economics expert max rod wolf says the compromise achieved by u.s. legislators only changes the speed of the debt growth without solving the bigger problem. this whole crisis started as an opportunity of political theater these guys couldn't even choreograph success out of their fake crisis and so now we have a huge international failure which has already done possibly lasting and certainly serious damage to the standing and reputation of the united states of america how hasn't much been mentioned that not a single plant out the

washington takes the first step to approve the long awaited deal to increase the u.s. debt limit just a day before a potential devastating default. destiny of the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to afford financial crisis. russia says u.n. action that could help bring an end to violence in syria but once against excessive measures that could lead to a libya style intervention. the voices of tens of thousands of anti-government protesters in easy calling for the prime minister to step down are going on reported by the international media. and in the business we examine why the optimism from the u.s. avoiding a dead default has been particularly short lived for the markets join me for a warm that another business bulletin. just after nine am here in the russian capital you're watching r t thanks for joining us now to the top story in the lower chamber of the u.s. congress has passed a last minute deal to prevent a devastating full scale default after months long political confrontation well the only remaining h

u.s. debt ceiling created an unprecedented climate of uncertainty over america's so-called sound economy the damage been done and what i want to happen is that everybody really thinks the united states isn't so secure it isn't so safe even if the craziness subsides it seems to have gotten real close and who knows whether the next month next year this war and blow up again since the underlying causes economic problems are getting worse in this country for forty five trillion dollars of america's borrowing is owed by foreign countries experts say washington's mismanagement may cause investors to abandon a devalued dollar and end their partnership with america is like being married to someone. of the rich or you want to know what'll i do i'll. quote up with this relationship the u.s. will be. the only game in jail. and he is making noises chinese making noises were you know we're alone now in our ability to be. in the world the result could start a replay of the two thousand eight. hundred seven t

now the u.s. debt resolution will be the main driver of investment sentiment on monday but michael stein from a criticized there's a lot of domestic news to give additional support to the markets going forward investors are going to take cues from external depends to a large extent in any case of the markets likely to remain quite volatile as we head into august as the summer volumes dry up and as we head into months which store clear is correlated with bad news today rosneft will be hosting a conference call to discuss their second quarter numbers which were released on friday. protestors going to release a second quarter operating update in the central bank of russia is likely to make an interest rate decision we expect unlike most houses interest rates remain unchanged for the month of august. and the creation of a russian power generating giant between gasp wrong and i and i guess holding could be blocked the ministry of economic development has opposed the deal saying it goes against the country's

downgrade u.s. debt that will take a look inside defcon we'll see if this is really prime real estate for government recruitment of hackers averageness b. to reason t.v. reporter michelle feels about americans being a fed up with congress and her now infamous interview with matt damon about teachers in america we're going to have all of that and more frater night including a dose of happy hour but first let's take a look at what the mainstream media has decided to make. our it's a day job numbers came out for the month of july and before i give you all the details let me just say in summary that we're still screwed the according to the bureau of labor statistics jobs grew by a hundred seventeen thousand better than may and june combined unemployment went down from nine point two to nine point one percent but as desperately as the white house is trying to spin this is good news it's not let me give you a few more details hundred seventeen thousand jobs that's still not enough to keep up with population gr

in fact, the structure of u.s. debt is far superior to european debt.much of our debt is coming due too soon. it's not like we have a debt payment problem. we have political problems, right, about how to solve the debt ceiling but our issue is one of changing a spending one of changing a spending habit we have been into for 30, 40, 50 years. it's not something we'll change overnight it is a political workout. we as a nation have to decide how big a role government will play and how much we can spend. >> drew, let me ask you -- >> what's going on there. >> we have what could be -- i mean, frankly treacherous politics as we head into december 23rd when this super committee, this bipartisan committee has to decide how to cut another $1.5 trillion. what are you expecting for how complicated that could be for markets? i mean, every now and then you get some kind of reaction in markets to political things. do you think it could be tough going? >> yeah, it is. you just don't know. markets discount good news and bad news but they can't discount what they don't

u.s. government had been addicted to debt, they need to mend its ways, blaming u.s. politicians for the mess they were in. what officials are saying is from the government to government level, as been different, much more cooperative and much more seeking common ground. these touche huge economies know they have these enormous overriding common interests. although there are calls even now in the chinese press during the visit for china to use its holdings of u.s. debt as some sort of leverage to press america to open its markets and sell more high-technology goods which are currently banned from being sold to china, what officials are saying is the tone of the meetings are different. but they're looking for areas of cooperation. >> thank you very much for that, damien. >>> torrential rain in southern pakistan, with nearly 1 million people affected by the rising waters. more than 50,000 people have been evacuated to temporary camps. >> pakistan's rainy season has arrived, and this is the result. families carried to safety, their homes flooded. >> our entire village wa

one of your big concerns is about u.s. debt and you told me right before when we have this whole debt debate was going on in washington you and i talked and you said that the real problem was not as much to fall as the debt that the country faces that the government is insolvent need to cut entitlements medicare the article that we have welding every day through exaggeration and we agreed to raise the debt ceiling by two trillion dollars and cut spending by twenty one billion in two thousand and twelve and forty two billion in two thousand and thirteen so we're careening right words greece of the year about three years graduate so do you think that's why we're staying as volatility in the market today and the sell off yesterday how much of it do you think has to do with concern over u.s. debt and deficits well we're looking at the ghost of christmas future and we're looking at three d's and italy and spain are looking at their bond yields soar and the case of greece their two year note was thirty percent and then italy it went

u.s. president announced the debt limit deal. find out how markets are reacting to this and entitlements time. world news and much more twenty four hours a day this is a table straight to our top story now u.s. lawmakers have finally reached an emergency deal to avoid a disastrous debt default after weeks of political bickering and stalemate if passed by congress the two step compromise will put american borrowing to continue after tuesday's deadline. in exchange for more than two trillion dollars in federal cuts over the next decade it was struck off the barack obama held last intensive talks with democrat and republican leaders on increasing america's debt limit however the political struggle is far from over but the key issue of how to balance the budgets being put off for they to date but as marina point now reports the torturous and then think to reach an agreement has damaged america's reputation so from. help us avoid the fall debt ceiling nation default and this crisis time's running out the entire world is watching it's b

treasuries and any downgrade may affect japan's decision to purchase more u.s. debt and more so the china. >> japan survived a downgrade in debt and lived to see another day. markets and all sort of limp along. but are they passive about this or will they think twice about whether they would be a big buyer of u.s. debt. is that shopped around in >> i mean, officially japanese and government authorities are remaining committed to massive holdings was dollars . securities and will continue to buy. it is ironic, the japanese government intervened in the currency market to try to sell yen and get it cheaper. it is way over valued and so the idea they would be selling dollars would contradict their own policy. clearly, we have a case here where countries around the world that need to invest the surpluses, probably china more than others are going to take a thought. over the weekend, we have had commentary out of the beijing, they are looking to diversify the way they invest their money, away from the dollar and whatever. euro and gold and other currencies away from the do

so you've got, basically, debt issues both in europe and the u.s. that's dragging the markets lower. >> reporter: a big concern for the stock market is whether the s&p downgrade will be a tipping point for a global recession. investors fear a lower debt rating for the u.s. will eventually raise borrowing costs for the federal government, many companies and consumers. against that backdrop, it's understandable investors are seeking safety. but it may surprise you they're finding it in u.s. treasuries, despite the credit downgrade. interest rate strategist eric van nostrand says investors don't see a meaningful increase in the risk of default. >> this downgrade was very likely priced in for a long time by investors. the timing may have been a little bit surprising, but we knew that, given the rancor of the political debate over the sovereign debt issues, there was very likely to be a downgrade by either s&p or moody's. >> reporter: but treasuries were not the only safe haven. gold topped $17,000 an ounce for the first time and j.p. morgan is predicting

they overcounted the u.s. debtcit would be $2 trillion more than this administration believes it will be because of some of the recent deficit reductions. bottom line is that at this hour the administration has made its case, s&p saying they are going back to the drawing board. they are waiting here at the white house to see what's going on next. >> harris: that had some sort of impact on receipt today. it will be interesting to see what happens next if in fact they walk back that threat of lowering our credit rating here. >> absolutely. because if s&p were to move forward this weekend and say look we are standing behind our matt or something like that. you can bet monday morning's markets would have a huge impact because of that on the other hand they are going back to the drawing board. they have may sit on in this weekend and have to decide something and wait on it a few days. but just that waiting and worrying could still have an impact on the market shares. >> harris: as we have seen uncertainty can do its dam

of this and i don't think that there is going to be fundamental change following that american debt and u.s. currency is too big presence or invest cafe analysts are going to go to the bottom thank you very much my pleasure. well i won a small debt for about one giant black hole for a government later on in the program we are in new york to ask what's the difference between our debt and those of. you much worse for a government to be in debt why because we trust the government to do the right thing and they're doing absolutely the opposite of that but don't you trust yourself to do the right thing and within your means i do but i mean dad so that i can pay off. a quarter past the hour here in moscow you without see israel is bursting itself for a fresh wave of massive government protests activists are planning a third weekend of rallies all across the country one street has already been renamed by really a rear after the square where the egypt uprising took place. they said today saturday tens of thousands of protesters will be taking to the streets here in tel aviv as well as in several ot

downgraded u.s. debt it has nothing to do with it i agree with jim rogers and i also agree with alan greenspan that great fear has called everything wrong that he says it with all this called but it's well united states could just print more money yet god it outlives they see that's why gold has gone from two hundred and they're roughly seventy five dollars an ounce on your watch to now we are seeing thanks to your quote loose money policies over seventeen hundred dollars an ounce lauren i've been saying it over and over again that devaluing our currency in front of our eyes the united states is going into the greatest depression and the world is following ok and you and you said you've been talking about that and protecting not so i want to go back further i want to go back to two thousand and eight and ask you you said this isn't a cover up so was this an additive wall when the u.s. by bailing out the banks and investors and not allowing them to fail not punishing actual risk takers when when that was t

in fact, people have piled into u.s. debt. interest rates on u.s. government debt are at their lowest point since january 2009. what the downgrade did is it made people think that the u.s. government is now going to be ham strung, not able to take action, to prop up the economy not because it can't actually finance the debt, the spending, not because it's in real fiscal trouble but because some guys at s&p by calling that downgrade have bullied the u.s. economy, have bullied u.s. government into taking actions that are going to be the wrong thing to do. so this is is not, you know, the narrative which says that we have is a fiscal problem and that's the source that source of difficulties is not at all right. what's happened is the same people who have been urging us to take the wrong policy have now upped the ane. that's making the economy look worse. similar things are happening in europe so we have a global downturn based not on-- again not on real fiscal constraints but on bad ideas being enforced by bad agencies like s&p. >> woodruff: as long as

and this threat that they may indeed downgrade the u.s. debt as early as tonight is what they're saying what that actually mean what would that look like for the u.s. economy if that went ahead. this is the big debate people have been having for the last couple of weeks months i have to say i'm sort of with those who say we'll see if it has any real impact there could be contagion effect immediately from funds that are forced to shed debt or do otherwise but the fact that this won't be a surprise it's been well telegraphed may not be a move from say aaa to double a it may just be a place on outlook negative or something like that means that number one we may not necessarily see any real immediate effect and number two remember there are three rating agencies and a lot of investors when they're making decisions about u.s. government debt or otherwise take the average of those three ratings so while it does matter and certainly will be a huge political move it will affect sentiment it won't necessarily actually change the average rating of u.s. d

may downgrade the u.s. debt as early as tonight and the administration is rumored to be preparing for it but what does all of that tell you about attitudes towards the economy is s. and p. wrong is the inmate administration wrong is there any in between joining me from our studio in new york to discuss this is kelly evans the head of the tape columnist at the wall street journal thanks for being back on the show and i want to start with this news that we're waiting for in terms of the s. and p. and this threat that they may indeed downgrade the u.s. debt as early as tonight is what they're saying what that actually mean what would that look like for the u.s. economy if that went ahead. this has been the big debate people been having for the last couple of weeks months and i have to say i'm sort of with those who say we'll see if it has any real impact there could be contagion effect immediately from funds that are forced to shed debt or do otherwise but the fact that this will be a surprise it's been well telegr

the uncertainty of the u.s. debt resolution to be the main driver of investor sentiment on monday meanwhile michael stein from what curtis says there is a lot of domestic news to give additional support to the uk it's. going forward investors are going to take cues from external dividends to a large extent in any case the markets likely to remain quite volatile as we head into august as the summer volumes dry up and as we head into a month which historically is correlated with bad news today. will be hosting a conference call to discuss their second quarter numbers which were released on friday. protect is going to release the second quarter operating update in the central bank of russia is likely to make an interest rate decision we expect like most houses interest rates remain unchanged for the month of august. that's all for now i'm back with more updates about forty five minutes. in the middle of it with. a man of the.

u.s. house of representatives swings behind the debt limit to avoid default amid criticism that america still faces. despite the last minute compromise deal. the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to avert financial crisis. nato members press for tougher u.n. action against syria's government in response to escalating violence but russia. any resolution leading to a libya intervention. seized by a tidal wave government of protesters demanding sweeping economic reform but demonstrators complain that some of discontent is largely being passed over by the international media. welcome to you this is live from moscow the lower house of the u.s. congress has done its part to prevent a devastating default by supporting an eleventh hour deal to raise the country's boring limit after months of stalemate and a political squabbling the bill could be signed into law later on tuesday if the senate also gives the go ahead. across the latest in washington. not a lot of good news in terms of the big picture for the u.s. economy of course the only

u.s. house of representatives swings behind the debt limit bill to avoid default amid criticism that america still faces a harsh economic recovery despite the last minute compromise to. the destiny of the bill is now in the hands of the u.s. senate after months of political bickering will it be enough for a financial crisis. nato members press for tough for you when syria's government responds to escalating violence but russia to block any resolution leading to libya style interference. and israel is seized by a tidal wave of anti-government protesters demanding sweeping economic reform but demonstrators complain that some of discontent is largely being passed over by the international media. plus own business and we squabble over gas prices for gas probably as a turn on and then to takes not only for it but have more on that end business in twenty minutes. just after five pm here in moscow this is with me received the lower house of the u.s. congress has done its part to prevent a devastating default by supporting an eleventh hour deal to raise the country's barring limit after months of st

covering it coming in from india and from china what are the chinese official news agency school this u.s. debt addiction now as the concerns and a lot of anxiety over exactly what will happen in a couple of hours' time when the markets do a pin and that's continuing calls the u.s. to get its financial house in order my colleague moving up or not it's been taking a closer look at u.s. spending. comedian george carlin always spoke frankly about his nation the only true american value that's left. by people spending money they don't have on things they don't need today country long driven by borrowing and consuming is in desperate need to cut it spending it was defense and security spending has remained untouchable soaking up seven hundred five billion dollars were twenty percent of federal funds every year since two thousand and one for the one point two trillion dollars have been spent on the wars in iraq and afghanistan but now with fourteen point four trillion in the hole some economists say it's time for the u.s. to compromise world domination for domestic stability also probably have to see

move to china and other asian governments that hold such vast amounts of u.s. debt and piles of dollars well we've seen already comments from some of the chinese economists about. they are concerned about the downgrade and what they do expect. is steps from countries such as china to more actively diversify their reserves towards other currencies to some degree yes we can say that what happened with the yes and p. downgrade is to some degree the undermining of the role of the dollar as the world's reserve currency now some of the experts we talked to today believe that the u.s. never made it out of the first crisis let alone out of a second recession how do you see that but i think the key criterion here has to be growth performance and in terms of growth performance we've seen pretty strong we bound in the u.s. and i think. really fundamentally there was enough for it to address some of the underlying ills in the corporate segment but some of these ill some of these problems have now. gone into the sovereign segment towards the sovereign balance sheet towards the b

precious metal prices are in the red as investors turn to risky assets on a positive news over the u.s. debt ceiling gold is losing around point eight percent. down over a percent asian markets bounced back from last week's losses as investors gain confidence that the u.s. will that the u.s. will avoid a default japanese nikkei is adding almost two percent of our exporters among them a. gain is there with car maker honda up almost three percent and dragging stocks are among the best performers in hong kong h.s.b.c. holding climbed one point eight percent after announcing a deal to sell almost two hundred of its u.s. retail branches to first niagara financial group told one billion dollars. here in moscow the r t s m i six started president of august trading in two hours' time they closed down on friday with financial and energy stocks among the worst. there's the uncertainty of the u.s. debt resolution should be the main driver of investor sentiment on monday meanwhile michael's time for what creates he says there's a lot of domestic means to get additional support to the uk it's. going forw

u.s. house of representatives the swings behind the debt limit failed to avoid default amid criticism that america still faces economic recovery despite the last minute compromise. the destiny of the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to avert financial crisis. nato members press for the tough u.n. action against syria's government response to escalating violence but russia to block any resolution leading to a libya style industry. and israel is a seized by a tidal wave of government protesters demanding sweeping economic reforms but demonstrators complained that summer of discontent is largely being passed over by the international meeting. a very warm welcome to you this is r.t. live from moscow with me. the lower house of the u.s. congress has done its bit to prevent a devastating default passing an eleventh hour bill to raise the country's borrowing limit after months of stalemate and political squabbling the bill could be signed into law later on choose if the senate also gives the go ahead. across the latest in washington

u.s. and lawmakers are finally reached an emergency deal to avoid a disastrous debt default off two weeks of political bickering and stalemate if paulse by congress the two step compromise will permit american boring to continue after tuesday's deadline in exchange for more than two trillion dollars in federal cuts over the next decade well the deal was struck off a held last ditch details of talks with democrats and republican leaders. on increasing america's debt limits however the political struggle is far from those over key issue of the house of salads the bottles being put off pro and made to date but as marina point ny reports the two. roots reach of the cream and has damaged america's reputation. help us avoid the fall debt ceiling nation default and this crisis time's running out the entire world is watching it's been a public spectacle filled with bickering grandstanding and lack of compromise i devise a debate over raising the u.s. debt ceiling created an unprecedented climate of uncertainty over america's so-called sound economy the damage been done no matter what happens now

and u.s. debt woes and the market's reaction to them at our team dot com also if you follow our twitter feed here straight from our worldwide correspondents for the latest news updates our team underscore tom on facebook search for our two news find our top videos stories ready and waiting for you and you can also join the discussion on what you've seen and there's also more rapidly expanding an expensive channel on you tube from our reports and programs available when you want to scratch off and explore news from russia and around the world in the. mission. critical three days for charges three. months three. three stooges free. old free blogs chancellor video for your media project a free media oh god archie john tom. riot police have surrounded tent camps set up in ukraine's capital by supporters of former prime minister yulia tymoshenko was arrested on friday but protesters fear officers may storm the camps after the court where her trials taking place ban gatherings outside parties alexei your

and u.s. debt world and the market's reaction to the mccartney dot com if you follow our trader fee you can hear straight from our worldwide harvest planets with the latest news updates on our g underscore come on facebook search for r.t. news you'll find our top videos stories ready and waiting for you you can also of course join the discussion on what you've seen there is also our rapidly expanding and extensive channel on you tube our ports and programs available when you want them to subscribe to us and explore news and. didn't take three. three. three. three. three. three volunteers to be your story your media project a free media. time. riot police have surrounded tent camps set up in ukraine's capital by supporters of former prime minister yulia timoshenko. who was arrested on friday the protesters fear officers may storm the camps after the court trials taking place and gatherings outside parties alexei has more now from kiev. ukraine's former prime minister yulia timoshenko still remains i

china the largest holder of the u.s. debt has immediately reacted to the news of the downgrade saying washington needs to its debt addiction beijing also called for a new stable reserve currency instead of the dollar concerns are also right being raised in a third largest economy out of india where the finance minister called the situation grave it's pretty true the reports from new delhi asian markets are tumbling they were tumbling on friday obviously we don't know what's going to happen on monday in specific reaction to this news but many analysts many financial analysts here predicted this especially after the u.s. debt ceiling debate that took so long and in many ways is what people are saying led to these lower approval ratings i guess you could say so the markets have tumbled here people are losing confidence in the american economy obviously there are things that soaring there is think a lots of decisions not specifically being made when it comes to that two point four trillion dollars and cause a lot of people are wo

concerns of u.s. debt and european debt and that is weighing on the market.>shepard: the european central bank, and our fed has a conference call, their bank got together and said, among other things, it was confusing to people would understand this stuff and that does not include me, they said with the market it was described "you are on your own," and the free fall happened. now what? >>guest: the ecb is like a fed for europe. but these are all a group of countries that are in the euro monetary union going their own way with spending and taxing so you have countries like greece and portugal that spent too much and now italy and spain, the markets have decided they, too, are in the same position, and what has happened? the nations of the euro have come together with a bailout program and that bailout program is going to buy up some of the debt, it will take the pressure off of the countries and say, you going to lend to us to pay bills until your fiscal house is in order and you put down the spending. but this process is an incredibly political process in eu