white at bretton woods. the cover jets had no interest in this monetary ark texture except for one reason. the soviets like the reason for the architecture to be founded on gold because the soviets had a lot of it and looked to be on the verge of getting more of it. so the soviets were thrilled for any monetary system that would make their gold more valuable. they really viewed bretton woods as they did the marshal plan initially as just an opportunity to get short-term credits from the yit united states. white fought fiercely within the f.d.r. administration for $10 billion low interest loan to the soviet union. f.d.r. refused to go forward with it. as the main reason that we find why the soviets would not ratify bretton woods because no u.s. financial aid was forthcoming. they said we're not going to get anything out of this financially so it was not worth going forward. white was extremely disappointed. yeah, in the back. >> he was a fellow traveler, that is very clear. it is clearer from your book. it is

this is eight years before bretton woods. the more sterling countries there are the stronger will be england's position around a conference table should an international conference take place. he was determined to make sure we went went into this conference eventually, as he was sure we would, england would be in as weak a position as possible and america would be in as strong a position as possible. he outmaneuvered keynes. keynes didn't see many of the key provisions that actually went into the imf articles of agreement which he would have fought against and fought against for years. one fascinating aspect of the white story was the fact that in spite of his having been a father of post war capital is i'm operated for soviet intelligence for a period of roughly 11 years. there was a little gap from roughly 1939 to 1941 after whitaker chambers threat earned to expose him. the white case until recently i would characterize as a murder case where you have the witnesses, you have the weapon, a handwritten document of white's wi

the world bearing of the so-called bretton woods institutions in the form of the second world war embracing the so-called american washington consensus but the washington consensus based on completely proficient doesn't always work. i want to website at r.t. dot com at the moment you can find details of a potential new arms race analysts are warning that japan's plan to reopen a nuclear reprocessing plant could push its neighbors to boost their own atomic arsenals also online and many houses would you buy for two hundred five million dollars would expect if you wouldn't you but a russian tycoon he only bought one you can find out on our website why that billionaire splashed out so much of his money for a dream house in london. as a new law on data recording and surveillance goes before the british parliament calls from human rights campaigners are becoming louder previous legislation on information security was abolished when the european court of justice recognized it as a threat to previously rights following that ruling mobile phone companies were about to start deleting the day to day h

if you look at bretton woods that lasted three weeks. it was two years of preparation before that but essentially you had delegates from 50 countries that came to bretton woods resort in new hampshire and they decided what the special architecture would be. there was a responsible and very effective and blessed from 44 to 71. in this current crisis we have not really been able to reach the level of international cooperation that has been a slight lack of leadership or hats. people are stealing less confident and there was less of an idea of what can be done. and i ink one of the things about that is in a way i think from a 2008 crisis came at a time when global leadership, feeling perhaps less sure of itself, the was itself is running a huge deficit. which we can talk about later. and the u.s. has been slightly burned by perhaps overextension in foreign affairs, foreign commitments. so the capacity of the used to provide that kind of global leadership is much lower now than perhaps was the case in 44. when all the postwar period. >> host

back and the so-called bretton woods institutions before the second world war and raising the so-called american washington consensus but the washington consensus based on completely paralyzed haitian doesn't always work . and just to recap again our breaking news story sixteen people killed when metro cars derailed in the russian capital this is the first video you're seeing from inside the tunnel the wreckage of one of the carriages it's smashed against the tunnel wall and rescuers have been struggling to get people out this is the latest video we have for you some passengers are trapped by the sharp metal debris that's blocking their paths to safety people are scared and you can see that even getting out on a harmed is a tough task carriage walls torn apart all the electronics torn out of those walls train pieces scattered across the tunnel. will be continuing to follow that updating story for you throughout the day here on our to international but up next our special report music would stay with us. if there's anything we're afraid of in the modern western world is al qaeda or somet

probably the most significant geo political move in terms of multiple areas since the beginning of bretton woods now we know that the brics term that came from jim o'neill's paper or initially that he coined out and there was no s on it was just bric but now twelve years later you have thirteen years later you have south africa joined so the question here is what do you make of this term especially given that there might be new members coming in we have fifteen seconds i'm sorry but i love to get your take i think it was you know he put it together he coined it he never thought in his wildest dreams that those would actually come together politically right now they have because of the need for multiple layers and now we have them to new and now with the more of it that's all for now thank you as always we love hearing from you please check out our facebook page and please tweet us at aaron aid and word and it's from all of us here boom bust thank you for watching we'll see you next time. i'm out the stories we cover here we're not going to hear any other big stories that have turned headlines an

system has been the central banking fee dominated system over the last forty years since post bretton woods and here's a tweet from in fraser he says markets are totally rigged in the biggest rigors of all of the central bankers this is a quote from charles good heart and he told us to camp alphaville which was took place here in london at four at the financial times and charles goodhart used to serve on the board of the bank of england and so he's talking about quantitative easing is causing market rigging that this is the central banks rigging the markets but he also mentioned here is charles goodhart talking to the financial journalist and i call ha ha ha he said and this rigging by the central banks least the other rigging good heart ads citing the allegations of four x. rate fixing again but people are just sick of it this is a way to alienate people into lose friends to lose market participants to lose faith to lose trust so what we have then but nothing. every single such a bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major

bretton woods system designed in 1944 works perfectly well but by then the idea of using monetary policy to guide and economy, using the government to guide the economy was so prevalent that they didn't know how to preserve the system which is why we blew it at the 1971 gratuitously and we have been floundering ever sent. as imagined in the 80s and 90s, gold average roughly $350 an ounce. it had some fluctuations but gave it a c+ for monetary policy and so we got growth from it but it was still not what we could have done. and in the early part of the last decade we went off the rails again and we still haven't dug ourselves out of that one. so coo -- two catastrophes world war i and the great depression but now it's beginning to reverse. it's still below the radar screen. a number are saying hey maybe this funny money which was tried before adam smith came along and demolish the idea of funny money may b. smyth had it right. maybe we should re-examine things again. this is what the book is contributing to getting back to basics on money, getting the conversation going so we can get get

many be institutions are from the bretton woods times. we have not adapted that quickly. be more global. i think we all need to help each other. the issues of climate change and poverty alleviation and hunger -- issues of such dimension they can be solved but need to be so the by responsible people working together, including business. >> do you feel the businesses such as your own, shell, heineken should be leading special leaning on the european leaders to act quicker when it comes to russia? >> we work together on many of the issues. one is getting out of the geopolitical complex. itng best conflicts, be ukraine. best the issues of the middle east or africa, you can trace that back to climate change. there are drugs where people do not have access to food. when people are starving, they become desperate. we saw that in the arab spring. .e see it in central africa the middle east. all the refugees coming to syria. hard toto work very attack some of these issues. we have a unique opportunity. global climate change agreement. this is the year where we can put in the new s

of the economy, especially in the world bank and imf, there's going to be defections from the bretton woods system. people exiting out of it. there's been a series of crypto imfs. when egypt had problems that gulfis played imf, russians said we'll bail out your banking system if you give us a naval base. there is an asian self-insurance imf. there's a world bank side to this bric bank and imf side to this new bric bank. a lot of problems, what currency? they want to create some new currency. good luck. i don't think they are going to use yen given the participants involved. don't think they'll use euros. hard time imagining they will use the dollar. i'll be curious to see if they will do this in rubles. don't believe it. i know there's lots of press releases about this. i don't think it's real. i would say the other interesting things are the agreement that talked about human rights. lots of words about human rights in that declaration. maybe it's me, i'm thinking russia, china, human rights. figure that one out. i'm highly skeptical. it's great, but i'm not going to hold my breath. finally

because we weren't playing by the rules in the bretton woods system. $35 an ounce. nixon was worried about re-election. the economy wasn't he thought responding quickly enough so the theory is out there that if you devalue the dollar that will boost exports which will help the economy, boost the economy and everyone will be happy. for a year in 1972 they put in a the wage price controls, devalue the dollar for a year and he was reelected in the economy crashed. so, it was a bad intellectual theory that brought it about, not any real crisis. any of the economic problems we had in the 50s or 60's, small beer compared to some of the crises we have had in the past. there is no sensible reason to do it and in terms of industrial uses of gold, it's a small fraction you have out there. in fact we don't use gold anymore for fillings in our teeth. once upon a time we had gold and silver in our teeth and so we don't use that. in terms of most gold is for stored value and ornament. it has some industrial uses the nothing that would say oh my goodness we need 5.5 billion ounces

of the con, especially with the imf and the world bank, there's going to be defections from the bretton woods system. people exiting out of the. there's been a systems of -- when egypt had problems, when cyprus had a problem, the russian said hey, we'll bail after banking system if you give us a naval base, playing imf. there's something called -- and asian self-insurance imf. so that both the world bank sides to this bric bank and a imf side to this bric bank. a lot of problems. the first is what currency. they said they want to great new currency. good luck. i'm not going to hold my breath. i don't think they're going to use the yen given the participants involved don't think they would use euros. hard time imagining that we use the dollar. if they do not use that all of the church to see if they'll do this in rubles. don't believe it. i'm not holding my breath. i know there's lots of press releases about this. i don't think it's real. i would say that the other interesting things are the agreement talked a lot about human rights. really interesting but lots of words of human rights in that