again being questioned by doctors coming up al gore and of speaks to watford amaryllis professor michael hudson about the outlook for the u.s. economy stay with us. for the full story we've gone to. the biggest issues get a human voice face to face with the news makers. hello again the no come to swap live the interview felt an artsy a mother's love and today we're going to talk about money but other people's money and what's more important than our money. politicians and the columnist from i round the world have gathered in the russian city to. take part in the global political front the decision makers are going to discuss among other things how to avoid future economic crisis but does it mean the path out of the current economic recession is already clear and where does it lead here's the participants in the forum to wall street financial analyst professor michael. one of the goals of these two years here is love the little balls for us to find out how to reduce the gap between the rich and the poor the economic crisis doesn't shake europe and america is still a serious threat to the future

and next on our speaks to wall street analysts professor michael hudson about america's growing financial fears that's coming up next. hello again the welcome to spotlight the interview on r.t.e. a modern love and today we're going to talk about money about other people's money and what's more important about our. politicians and economists from around the world have gathered in the russian city to. take part in the global political front the decision makers are going to discuss among other things how to avoid future economic crisis but does it mean the path out of the current economic recession is already clear and where does this leave here's a participant to the forum wall street financial analyst professor michael. one of the goals of this year's euro slathered little policy forum is to find out how to reduce the gap between the rich and the poor the economic crisis in this country europe and america is still a serious threat to the future of the euro zone his or you can doubt just recently america was facing the threat of a technical default that would have had a knock on effect worl

welcome back to spotlight i'll go another just a reminder that my guest on the show today is michael hudson professor and wall street financial analyst michael well we've been discussing this situation in a world economy first of all in the american economy and it's a. looks like that the economic problems so far have. led to a run of popularity of right wing ideas in their heads as will the tea party for one year and does that mean that the us left today is incapable of offering the society offering business any any breakthrough ideas ways of overcoming it certainly is capable in what. the representative from ohio has often said however it doesn't get much of a hearing and the left is so confused by the fact that it's a democratic president obama that is leading the move to the right mr obama is known to the right of the republican party the tea party people such as michele bachmann voted against the bank bailouts the republicans voted against the bank bailouts this is a democratic program and the democrats are very much like tony blair's labor party in london moving to the right of margar

morgan at the expense of equity holders michael hudson points out to the homeowners and corporate america on how even to the debt machine many corporations are effectively in negative equity or in and technically insolvent position headed by the financial sector by the banks themselves. maybe sympathy for the demonstrators in the bill. i don't know if there was a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps only one had life preservers the fact the government now is funneling money to a major bank and saying if you can do that with a bank why not do it strapped homeowners facing foreclosure as democrats. over. the crisis increases desperation sides hutcheon says mainstreet is leading the moron in the street in a battle for survival we are seeing a second class war in this country such as you've never seen in the entire history of the united states a class war class war except in this case the class war isn't the kind of war the marxist some socialist talk about it's enough between employers and employees

being questioned by doctors coming up al gore and of speaks to wall street analysts professor michael hudson about the outlook for the u.s. economy stay with us.

if if nigeria starts trading in yuan well this is that while we've talked to economists like michael hudson or catherine austin fitts they say we're back to the dollars war and war and oil are para pursue so to speak so yes as the warfare state of america collapses then that puts additional pressure downward pressure on the dollar it's holding up relatively well and my theory there is that ninety percent of the dollar buying is done through high frequency trading algorithmic trading computer trading in this is all done really through the shadow banking system and this is why the u.s. death keeps pulling off balance sheet to the hundreds of trillions of dollars because they're out there supporting the dollar it's also time as they can support a dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people wall. up and paul krugman of the new york times will be like lou. well tom foley of reuters says that despite nigeria's bold move china's currency still has few of the qualities of a credible reserve currency and here are two of the qualities he

for debt forgiveness has to do with arguments that have been brought up by your you know guest michael hudson and myself and others and not simply that debt especially when interest is attached to it goes goes on indefinitely and it goes up eventual even if it's a small interest invention goes up exponentially now actually economies don't follow that trajectory they they usually plateau out a little bit and even decline at points and if you have debt that will go on come hell or high water and the economy is that fall off or even out after a time what's going to happen is that more. more of the productive capacity of those economies are going to have to go into servicing the debt to the point where the fruits of labor and the fruits of production will be entirely consumed at some point and then assets have to be cannibalized to pay off for the debt and clearly you know people the only way to get around that is to just try to ignore it but at the point we are at now especially when it's compound by fraud and debts that are just thrown into the system of tens of maybe even hundreds of trillions

jeffrey summers he's an associate professor at the university of wisconsin milwaukee also we have michael hudson he is president of the institute for the study of long term economic trends and matthew and he's a financial journalist ok gentlemen this is crosstalk that means you can jump in anytime you want i'm going to be very contrarian we hears all through the media with the of you. the euro is already been written we're waiting for the funeral ok let's turn it all upside down let's take a look at some virtue out of tragedy number one this crisis could actually create a real european central bank it has limited tools now now give it a lot of tools what do you think about that guys matthew first just empower it absolutely the next thing is the right beginning the year is in deep deep trouble and i have to do something to try to save it and i think they will i mean the demand of political capital which our entire generation of european leaders are put into this project means that whatever they can do they. i mean the next are going to do is they're going to call me your bones that are trying to

how is keeping banks from gambling with our money anti american hero offer his take on this is michael hudson staff writer on business and financial investigations of the center for public integrity and author of the book the monster a gang of predatory lenders wall street bankers fleeced america and spawned a global crisis michael welcome. thanks for having me tom. michael what exactly are these regulations that diamond is calling anti-american. well these are international regulations that have been agreed to by the united states and many other. large countries it's called hazel it's basically a compact and a treaty that. developed nations have come together and these are basically global rules on banking safety the idea is essentially i'm simplifying it a little bit too much of a central you need to have a little bit more money in the vault that in order to protect against a bank around the bank and the larger the institution the higher capital cushion the higher capital requirements that they need to add and that has got jamie diamond upset and that's why he's he's sort of you know you ca