two thousand and seven when this crisis hit is what we used to call trickle down economics the central bank together with the treasury or whatever the government agency is bails out those at the top the biggest banks the biggest insurance companies the biggest corporations and it hopes may be that it will trickle down to everybody else we now know as we enter year five of this ongoing capitalist crisis that the trickle down didn't happen as most of us predicted it would not so now we confront the fact that we've wasted a lot of money bailing out the top keeping them in a place they could call recovery while everybody else suffers through this crisis and now they have the nerve to suggest that having failed in this critical down policy the solution is an austerity that is not just socialism for the rich it's the worst kind of capitalism for them as a see people and they're not going to tolerate steve jump in go ahead steve. i believe the central banks have been major players in causing the booms they were major players in causing the bus and i will agree with professor wolf that what the cen

i'm opposed to the central banks bailing out banks i mean if people i objected to the eight hundred billion dollar bail out when the bush administration did it i did it on public television and i was invited into the treasury too because they said well what would you do and i told him what i would do i told him with a bank needs capital and the capital should be raised in the capital market half of that and then we'll give them concessional aid if they do but if they don't raise the money in the in the capital markets it dead and will take over the bank that's what i think the europeans should do i think the europeans are wasting money terribly to keep protect their bankers and to prevent the greeks from believing the euro i've written a paper column for the wall street journal which says that's a fool's policy we need to do much more tightly in this are right governments are failing all right richard if i know do you want to let me get this whole region under richard here because it's two against one is all but actually it's two against one of these programs gentlemen we have to be fair it

managers have been announced in europe to tackle the threat posed by the debt crisis the european central bank is offering of limited loans to banks for as much as a year to stave off a possible credit crunch. the bank of england says it will pump another 75 million pounds into the british economy. >> this was the jean-claude trichet is last press conference as the president of the european central bank. a retirement celebration it was not. rather, a hard-headed look at mounting problems. interest rates remain the same. he signaled concern about slowing economies, even as inflation remains above the ecb targets. >> inflation has been elevated and incoming information has confirmed our view that inflation is likely to stay above 2%. ongoing tensions in financial markets are likely to dampen the pace of economic growth in the whole area for the second half of the year. >> he said the ecb would take measures to lend to banks that might find themselves in difficulties because they have lent to greece or other countries with public finances in trouble. analysts are already concerned that banks are

greece the central bank said on monday it activated the bank rescue fund to save proton bank effectively nationalizing a small lender that is under investigation for possible violation of the country's money laundering laws but the name is neutrino bank that allows them to go faster than light go backwards in time and undo this mess before it even starts well but it's so symbolic that the very first bank rescued by the f.s.f. is engaged in money laundering out now why are we rescuing a bank that is engaged in money laundering just like we rescued why not just let these drug dealers and money launderers go out of business because i don't believe in competition they don't believe in competition i'm all for free market competition but the operative word there is competition if you've got draconian rent seeking banking kleptocrats fudging up the works with their algorithmic trading in. outright larceny you don't have competition do you know i'm for competition let's see some competition just like the wednesday versus chesterfield like everyone should emulate sheffield wednesday football club

several other major banks such as the european central bank d the swiss national bank do not labelhemselves as inflation target years, however they have inc. and merkel definition f price stability, a central roe about economic outlook, and a willingness to accommodate short run economic stabilization objectives so long as they do not effect the primary goal of price stability. how does the federal reserva fit into this range of policy pre-market? the federal reserve is congress foro the two objectives, maximum employment and price stability on an equal footing. it does not have a formal merl inflation target. as a practical matter, the policy for a marked as many of the elements of flexible inflation targeting. in particular, on the federal open market committee, the fomc, is committed to stabilizing inflation over the medium term are retaining flexibility to help offset cyclical fluctuations in economic activity and employment. also, like the formaln time theurs, over federal reserve has bech more transparent about its outlook, o

then there is the european central bank. despite resistance from german banks, the ec be has been buying bonds from troubled countries. should this prove worthless, germany could part with more taxpayer money. in addition, the issuing bank of greece, portugal, italy, and spain are getting tax infusions from the eu, known as target loans. these are also put by germany for 113 billion euros. all germany's stakes currently add up to 379 billion euros. this is far more than the german federal government have budget for the entire year of 2011. >> our business reporter is with us now for more input. we are talking huge sums of money. the german taxpayer is not happy about putting this bill. what does this mean for the german economy? it is horrible for the taxpayer. the burden for the german government is very tight. some experts already expect a recession. >> why is it so crucial for banks to accept this severe hair cut voluntarily? >> it is very important but the rating agencies keep their current ratings. if they see the hair c

some central banks provide for a guidance by releasing projections. this has been adopted by the reserve bank of new zealand in 1997 and swedish bank in 2007. each of the central banks use the projections to indicate there is likely to keep rates at a low level for least one year. in united states, the introduced language in march 2009 statement indicating that the rates will remain there for an extended time. they would remain low through mid 2013. they continue to explore ways to increase transparency about the forecast. they use changes. in particular, the federal reserve has increased the holdings and brought in the portfolio to include agency debt and mortgage-backed securities. these actions served to improve the functioning of some stress markets. especially 2008 and 2009. other central banks have also used their balance sheets more actively than before the crisis. some differences in motivation. there a medium and long-term security. it expanded the size of the program earlier this month. the bank of japan has acquired a ride range of assets in

that's why it comes back again to that european central bank.europe is going through liquidity crieses and liquity crisisan be solved by the right application of good monetary policy. >>ose: so what is the supercommittee going to do in the united states? the largest question is of course the direction of u.s. fiscal policy. d unrtunately the news is not very good. you know what we do in america is that when this year's crop of congressman are not courageous enough to make the right decision they ask never year's crop of congressman to do it which is more or less what the supercommittee is supposed to do. come up with mechanisms or we'll have automatic triggers take care of it. >> will it come to that, though. thanksgiving is the deadline s it not. >> i think you can get to halfway, to 1.2 trillion. call it 600 billion. that basically means you still have the triggers coming in saying okay, well, the law says that we that did you didn't reach the targets the triggers have to do the rest. that means january 1st, 2013, you get these automatic cuts

is now considering sanctions on iran's central bank promising even more pressure eli clifton a national security reporter says the details will lie in the response washington gets from the international community. the types of things that have been discussed thus far would be quite powerful and would be potentially devastating to iran's economy promoting multilateral sanctions on bank markazi the iranian central bank now that could have the effect of affectively collapsing the iranian currency and devastating their economy if it's anything that like what happened in iraq as for iran's response i think there's a lot of variables there and a large part of it i believe will go back to how large of an international group and coalition. the obama administration can bring together at the united nations to sign onto to a response which is seen as provocative and potentially undermining both the iranian economy and the government. now let's have a quick look at some other news in brief from around the world and first to libya where fierce fighting continues in colonel gadhafi as hometown of sir

because they don't allow their central banks to actually create money oh just kind of looking at this banking model for a second because we've talked about this before and you've talked about the existence of paper money or money is ok given that it's very very. controlled the supply of money is controlled. versus let's say a gold standard where that would be a moral us implied however as you're saying here the. the loans made by any bank of course they not only create the money to circulate the family but they must also create money to pay the interest on the money that they've just created so there's a built in to perpetually create money but you're saying that there if you put a cap on that money creation and very vigorously oppose that cap you can do fine with a fee out money system correct i would predict cap and then the money that the banks create banks create credit in reste theoretically banks create credit in response to the demand of the people for credit so it's a very fluid organic system it's a good system the only thing wrong it is the interest the only thing that's not

is committing suicide our central bank is committing suicide on the one hand helping banks with billions and billions they're buying junk bonds billiton billions i mean where does this lead to it's one of the last confidence of the nail the last nail of the coffin of our central bank. house around the world tonight in world news in brief millions mourning the death of apple's co-founding genius steve jobs the man behind the iconic mac i pod i phone and i pad he died peacefully aged fifty six after years spent pathing pancreatic cancer led apple to its positions the world's biggest computer firm and presided over an empire that revolutionized computing mobile phones and even listening to music the sad news the biggest online we have is reaching ten thousand tweets a second. nobel prize for literature is going to swedish poet thomas transformer was praised by the academy for quote his condensed translucent images which give a fresh access to reality surreal books explore the nature of life and that can translate to more than sixty languages the eighty year old literate master will see a lo

the european central bank has called on national governments to do their part to ease the debt burden to appreciate spoke ahead of a key meeting of world finance ministers who have gathered in paris to hammer out solutions to the crisis europe correspondent daniel bushell has more. the patience of european central bank does seem to be running out it says that it can't really take the whole burden on itself it really needs the governments to come through the european governments come through and take some actions because the latest country problems with spain it's seeing problems with its solidarity or failure solidarity has had a great of its rating a game which is going to make it even harder for it to raise money and pay off its debts we're expecting protests tomorrow perhaps the biggest protests so far over you will start to measure in spain now russia's prime minister has come out and said that europe's governments could solve this problem if they wanted to. the crisis is more political than a financial issue according to different estimates between one and one and trillion dollar

of the european central bank says it's don't care and it's time for governments to take the lead in saving the continent economies the top stories this hour. around the clock around the world of this is r.t. live in moscow the total number killed in the syrian conflict now stands at one over three thousand activists at least twelve of died in fresh violence our security forces opened fire on protesters were calling for nationwide demonstrations in support of army defectors who joined the opposition and government insists they're not revolutionaries but armed gangs that threaten the public so that syria has more. about one hundred eighty kilometers north of damascus is a city under a stone a site of five days of recent deadly clashes between security forces and protesters in which at least thirty died it's close of the cities of homs and hama where most anti assad protests have been seen in place evidence of fighting in oliver stone it's plain to see there was an air of suspicion it turns mood only broken by children now smiling but only two weeks ago these youngsters were witness to violen

inflation was moderate, which is the central bank or role of a central bank to keep inflation under control. also during the first half the financial system was stable. no doubt that will be overshadowed with the sovereign debt crisis. all eyes are on the italian who has been viewed with high regard how he took charge of the italian central banks. it will be interesting to see if keeps the eurozone on the same path. > we are quick to say he is italian when there is something they don't like. >> you have a example of a bit a casualty. >> we will touch on this on the world business report but m.s. global a u.s. financial brokerage firm could be the first u.s. casualty of the eurozone debt crisis. they could be filing for chapter 11 bankruptcy protection. they made some bets on the debt crisis and those bets have gone wrong. they lost about $6 billion. i will have more on that. that.nks for you could say unseasonably cold, more than three million homes are without power in the united states after a snowstorm blanketed the northeast of the country. nine are counted to have died in accidents rel

first the european central bank has enormous capacity to provide liquidity to european banks. swap line with the european central bank they give us ewe roes, we give them dollars and on their own response lt and credit risk they relend dollars as necessary to european banks that need dollars. we are doing what we can to cooperate with ethe european central bank and other central banks to provide dollar funding for global dollar money markets. that's the first thing. domestically, i think our main lines of defense would be to make sure that there is first adequate supervision of our banks, which we are very much engaged in, and i would have to say that the good news is that u.s. banks have substantially increased their financial basis since the crisis three years ago, but second, we would make sure we stand ready to provide as much liquidity against collateral as needed, as lender of last resort for our banking system. you -- congressman you mentioned earlier, the lender of last resort policy regarding ample i.g. and other individual firms and i basically agree with you and jus