tv [untitled] August 2, 2011 12:00am-12:30am EDT
washington takes a first step to approving the long awaited deal to increase the you was dead letter just a day before the potential devastating default. 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 the financial crisis. highly publicized partisan struggle with young american legislators perseveringly down its confidence in the u.s. economy's reputation as the world's creditor. and russia says you action could help bring an end to violence in syria but more suggest excessive
pressures that could lead to a libya style introduction as some experts suspect damascus is being targeted for regime change by the west. and the voices of tens of thousands of anti-government protesters in israel calling for the prime minister to stand down are going on the supported by the international media. eight am here in the russian capital you're watching our teeth thanks for being with us now to our top story the lower chamber of the u.s. congress has passed a last minute deal to revert a devastating full scale default after months of political confrontation well the only remaining hurdle for the legislation is senate approval expected later on
tuesday let's cross live to washington where the agreement was hammered out artie's lucy catherine i was there for us hi there lucy so what is this a vote mean for the u.s. economy. well not a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it averts the self imposed potential crisis of a u.s. default which would have been the first time this country faced that could have defaulted in its history what we do know in this legislation is a does sort of cut spending by about two point four trillion dollars over the next decade what that means in the short term for the u.s. economy is potentially a lot of us stifling of growth now we have to keep in mind that the united states has grown the g.d.p. has grown by just a mere one point three percent in the second quarter we saw that unemployment rates are still astronomically high at nine point two percent and so a lot of economists are saying this is not really the time to be cutting the spending to be capping spending it does of course satisfy
a lot of the political desire by some of the more tea party oriented republicans but it does potentially threaten domestic spending meanwhile we also have to keep in mind that this deal doesn't actually do anything to assure world markets about the long term direction of where the u.s. economy is going a lot of the big critical decisions are left to a sort of super committee bipartisan committee of lawmakers which is really just another way of saying they're kicking the can down the road so they don't have to make those difficult decisions now those will be made over the coming weeks and months as you we will see what we were watching of this whole saga fold it took washington once to agree on a deal go size presenting their own version of a solution what were the main difficulties you think it achieving a compromise. well really the big difficulty here is this whole battle over the debt limit is kind of a proxy war an ideological proxy war between the republicans in congress and the democrats in congress what we saw with the past election is the rise of the
so-called tea party wing of the republican party and ideologically what a lot of those folks want is they want a lot of major cuts in government spending almost no government spending but the exception occasionally on defense they also want to lower tax rates they believe that this is the way to really stimulate the economy and this is diametrically opposed to the democrats' worldview the democrats argue for closing tax loopholes on for example all cup preparations and other like companies they want tax reform they want social spending for the poor and they don't want middle class americans low class americans to sort of face the brunt of of the economic crisis but really what this is all about and of course we wouldn't have seen this this whole fight connected to the debt limit if republicans didn't want to make a political point and we have to keep in mind that the two thousand and twelve election is coming up for both the congress and of course president obama and a lot of political analysts are saying this is just another way for the republicans
to try to embarrass the president to make them look bad the irony in all this is that neither the left nor the right really liked what came out of the deal at the end we saw one democrat said that this was a sugar coated satan sandwich you look at the bun and nobody likes to look they see they certainly don't like what they see in this deal and of course by creating the special commission that will sort of figure out where to cut spending over the next few months that issue is still going to come up right in time for the elections so no one really wins in this deal looking ahead a little bit president obama approve the plan what can we expect to happen to america's credit rating. well that really is still up in the air now the three major ratings agencies are not commenting until they've had a chance to look at the deal so we can really only go by their past statements. has said that you know it's kind of ok they're probably going to keep the prize tripoli for their reading but they might downgrade the outlook to negative now standard and
poor's is really the one to watch here because standard and poor's has said they want to see deficit reductions of four trillion dollars of course the deal that came out is just half of that so really does depend will have to i guess see in the coming days whether they will actually risk lowering the rating from aaa to double aid which would of course have devastating effects on the u.s. economy increase the amount of cost for the government to borrow and of course those costs will be passed down to to the people of the united states who are already struggling in this seemingly endless recession ok thank you very much for that our correspondent lucy catherine of live there from washington d.c. thank you. now the risk of america's possible full scale default has resonated far wife let's cross lives are pretty a shooter in new delhi for a global reaction to the first. there are so from your end there how have world
markets responded to this a long awaited deal. well actually world market here in asia are rallying the stocks here are rallying people are obviously happy that this deal finally passed and many leaders here are actually shocked at how long it took chinese newspapers are calling this entire u.s. debt deal to be irresponsible and even immoral so although people are celebrating the fact that they did pass there is a lot of cautious optimism here people really don't want to jump the gun and they're worried that things you know aren't finalized yet ok well what does this a near miss you know we've been watching this mean what does it mean for the confidence in the u.s. economy worldwide but it's important to note that asia has a huge vested interest in what's going on in the united states three trillion dollars of united states debt is held by asian countries china being number one
japan being number two so confidence has really gone down here but another thing that a lot of people are worried about is the fact that two point four trillion dollars that's to be cut in the united states funding but a lot of that haven't been decided and the thing is how long it took for that jet fuel to be finalized a lot of people are worried about whether or not the spending cuts will actually become another sort of political game over in washington ok all this financial talk is bringing down a bit. more about ordinary people how would have an average family in india for example or china be affected. well obviously many critics of this deal are betting that it isn't going to do anything to help american unemployment which directly impacts the asian economy as well as you know asia is the manufacturing center of the world so if the unemployment problem isn't solved in the united states but also means that consumer confidence goes down for america that means that they're not
going to be buying force from asia so that can really impact. people's jobs here in this continent so people are definitely worried there's also been a lot of talk about that but the dollar has been at some of the lowest rates we've seen and in the past year and so there has been a lot of muttering here in a.z. . perhaps an alternative reserve your for have looking into about it current including japan and china well ok thank you very much for that report priya shooter reporting live from india. and staying on the same topic while the u.s. debt agreement awaits approval by the senate and from the president let's get further analysis on the deal from professor of political science joseph chiang from the city university of hong kong professor try thanks very much for being on the program and imo the house passed the debt ceiling agreement but still it still has a few hurdles to jump before tuesday's close of play so is the u.s.
out of the woods here do you think. well it is generally p.b.s. . given the person agreement between the two parties the slot terms before it's crisis basically has been resolved that people are worried about various issues a head including the you media the issue of perhaps the united states who loses triple a rating then of course in general people are very worried that the united states this in no position to solve is a long term problem and that we create further crisis here there's also a very that the. obama administration has certainly been weakened and it will have to face more pressure from the republican party and the tea party people in the fact that it has no control over the majority in the house of representatives the
countries in asia in general i worried about perhaps the prospects of a couple good recession in the united states and the desirable outcome or perhaps a kind of spent nation affecting them here you mentioned worries a nation about a double dip recession while the u.s. has been raising its debt limit for years i've seen that before why are we seeing such a crisis this cyber round is it because of such fears that it's all the wing of the crisis and here is another one around the corner. well you know i use the most asian countries there is first of all of worry that the united states me loses double its triple a rating then there will be some pressure for the venting sector and there's also a general worry about the chain reaction that you neal of the weakening of the
american. kaname the european economy the chinese economy and perhaps even the indian economy cannot be in very good shape as ours growth rates are slowing and if the us dollar continues to deal. with perhaps the prospects of another q.e. free quantitative easing free then there may also be inflation because of the rise in the prices of the resources out there by contributing to a kind of state for asian situation and this is their main concern on the part of the asian pacific countries we're talking about the impact on the asia pacific countries what about for the u.s. so what's the worst case scenario for the us up the moment. well i think for the moment the obama administration's certainly has been weakened
and the major concern of course is that the whole international financial community is that disappointed with the fact that the lowering of the long term debt has not been resolved rating agencies earlier. at least the reduction of long term debt of ten years by the amount of these four trillion us dollars and now we see only a reduction of two point four trillion dollars or so and is also expected that the deficit for you are among to about one trillion dollars next year about seven hundred five percent of the g.d.p. of the united states so there is a certain loss of confidence on the part of the united states that you cannot. you cannot have the political will and the political consensus to
seriously deal with the long term issue and of course next year you have the president really lecturing you also of the congress you know your actions and there will be all will be more purpose in fighting mr chang thank you very much for your insight there joseph sharp professor of political science at the city university of hong kong thank you. well russia keeping a close eye russians have split ical struggle to resolve the crisis prime minister very very putin says the american economy stays at risk despite the deal which means washington could no longer be a symbol of economic stability around the world. and. actually there's nothing good about it it just goes boom a few more systemic decisions this colossal debt fourteen trillion normal means of the country has been living on credit which is really bad for one of the world's leading economies this means they live beyond their means and put upon the entire
world economy to some extent they sponge on the world economy and on and on a political position this means that firstly on the reserve currency should show up in the world not just the dollar and the euro should be consolidated. with the regional reserve currencies the ruble can become a regional reserve currency. and coming up ahead on the program are reported voices. i haven't seen anyone from c.n.n. or fox news or any other big news channel here and it's really sad and we also deserve a chance to be heard out tens of thousands of israelis demanding that their government stands down say the international media is turning its back on the countries. and moscow says a limited e.u. where the security council action on syria could bring quote good results in helping stop the ongoing violence in the country or russia's
a un envoy vitaly churkin a warns that any measures must be restricted to solving a not aggravating conflict with the security council has held a close emergency session on syria and the reports government forces there killed over one hundred protesters on sunday moscow has already issued its strongest condemnation of the violence yet calling on both sides of the conflict to refrain from using force or russia's been cautious about international action on syria fearing a repeat of what it calls the violation of the un mandate on libya well on monday the e.u. slapped a fresh round of sanctions on damascus russians also calling for action against president bashar al assad's regime all of former pentagon officers believes moscow's worries are well warranted because syria is a clear target for regime change. this opposition seems to be more cultivated from outside and and i think that that is one of the problems that assad
is facing it's not just internal unrest although he's promised reforms but you have a concerted effort by forces outside of syria to topple the regime but i think it's a combination of the united states saudi arabia and israel they see. here is why and so with iran iran to them is the big problem they see the spread of iran. traditionally arab the arab world and iran has scored heavily not only in iraq but also in lebanon and iran has that made it very clear that it's going to support assad there's a lot more at stake with syria given iran's relationship we've looked upon buffering for example of basically a proxy war between saudi arabia and iran and i think you might say the same thing is actually occurring right now and in syria but no one's going to see that openly
. and we're following all the events taking place in the middle east where the unrest continues on our website will go to our g dot com to get the latest news updates and videos and waiting there for you right now egyptian police clash with activists of the last step lasting demonstration on cairo's star very square trying to disperse those angry at the interim government for a lack of political improvement. but also on our website how could a group of hijack the twitter page of the region mass murder anders breivik claim the breach was an attempt to undermine the killers all my posts and i did what i did a logical statements. out of wild west meets the east in russia where people turn into cowboys and indians for the start of the annual how boys first of all.
in israel foreign media are being accused of burning their heads in the sand over coverage of the biggest anti-government protests that contrie has seen in decades well tens of thousands of people fed up with the tear reading living standards are station demonstrations calling for prime minister binyamin netanyahu to stand down because policy reports from tel aviv protesters voices are simply going on heard by the rest of the world. tens of thousands on the streets of israel angry today and protesting for change but is anyone listening when it comes to a lot of the foreign media want to see more of an action movie and this has been very violent it's been very hard and been both also been very positive. well into week three the largest demonstration in israel in over
a decade and how did a.b.c. c.b.s. and n.b.c. cover that they didn't a young a woman set up a tent the editors of france twenty four b.b.c. and sky coughed up just a few meager seconds perhaps not even that interesting to. look back in the studios ok there's a protest well what exactly is a protest a social protest for the revolution it's not the same kind of story the pollution is not as big and dramatic some of the bigger revolutions happening around the middle east and i mean isn't surprised by the worldwide lack of media interest he's worked in the israeli press for a decade but pushing for media both foreign and local there is an international media has put israel in the palestinian conflict also israeli and syrian conflict anything that doesn't kind of fit into that. type of of
news item which is unfortunate must be it has been done to your corner by some of the people here an optimism perhaps that they too to bring down the government in the way the neighbors the toughest square. that was the plan was they were willing nonstop here they were pretty upset and that just makes hundred wayas and others angry for nine days she's been camping here furious that she can't make ends meet as a university student to make sail said that when egypt decided to stand up and say we've had enough and where eleven. they've decided to say we've had enough the media was all over there i haven't seen anyone from c.n.n. or from fox news or any other big news channel here and it's really sad we also deserve a chance to be heard out but according to independent media consultant jeremy rudin the protestors need to be patient with our has really reached international proportions yet it's out of the government. this is like an inside trauma world
story and that is a bit of a problem when you're looking from overseas trying to figure out what to cover it's not there you know the economy is collapsing but long before the economy collapses the protesters here might have to throw in the charm because as demonstrators have learned to run the world without the international press and without the permission of foreign governments the protest can go only so far for c.r.t. television. blogger danny schechter says that the reality of life in israel often go sunday otis because the country only attracts coverage for its role in conflicts. many americans think somehow the israeli government is very popular the leaders of israel are to get a lot of attention in the american media israel is presented almost as a model with the country when it's actually an extremely divided country
a massive protest of the kind we've seen in israel about you just the economic realities that people there are experiencing something americans have no understanding of because there's no context in the reporting israel's only reported in a context of its conflict with iran or its conflict with palestinians the actual reality of life in israel what's happening to people there and how this right wing government in israel is handling the economy is something that we never really hear about whatsoever it's a very unstable situation the economy there is very unstable as well you know when you look at the middle east generally speaking they talk only about the arab countries only they have internal discord never hear about israel's internal discord and the fact that this uprising essentially is taking place in israel while the same time as one going on in syria is one going on in egypt you know shows that
the same pressures are you know being experienced by israeli people as well which is inflation economic pressure food prices rising oh all kinds of economic uncertainty. more news is coming in from these rebel or the prime minister has announced he's ready to discuss israeli borders with palestinians binyamin netanyahu has agreed to negotiate a possible return to pre-one nine hundred sixty seven territory lines well israel has been occupying land to the west bank where palestinians hope to build a state since the six day war peace talks over borders have been stalled since last september due to construction of jewish settlements in the area. afghan officials say at least three people were killed and ten wounded in a suicide bombing in northern afghanistan where an attacker blew himself up at a local guesthouse two other insurgents broke in and engaged police in
a two hour shoot out this comes two days after eleven people were killed in an assault on police headquarters in the south of the country. than seventy operator tepco has detected the highest level of radiation at the fukushima nuclear facility since the march earthquake and tsunami hit the plant the reading of taken between the first and second reactor buildings registered at levels considered fatal to human health by the company and government say they remained on target to bring the reactors to a safe state of called a shutdown by january tens of thousands of people remain in temporary shelter after a no go zone around the complex was in force. more top stories ahead but first let's head to business with kareena. good morning and welcome to business update here in r.t.
the optimism created by the u.s. avoiding a debt default has been particularly short for the markets instead investors are focusing on the poor state of the world economy the fact that washington will be cutting spending by to help trillion dollars over the next ten years so the concern . and we do see you in plays we're going to see some significant cuts in public spending in the second half of the year exactly at a time when the u.s. economy is slowing down so obviously i can use to imply some good old divisions double digits in green growth united states and united states will be using economy in the world i think that we're going to see some growth down dollar divisions in the world and such kind of environment usually russia doesn't do very well and we have democrats who are calculations we estimated if. you want united states for example it's very easy to do by one percent growth you in russia actually suffer by two percentage points which is not non-trivial nontrivial impact. and that brings us to the markets or process the downfall of a disappointing report on u.s.
manufacturing that concerns over cool demand light sweet is currently trading below ninety five dollars a barrel while the brand is a one hundred sixteen dollars a barrel and precious metals again this hour as investors look for safe haven gold is trading slightly in the black while silver is over half a percent. in asia stocks are in the red investors are concerned about the slowdown in u.s. manufacturing japanese exporters away by strong yen with tender got over three percent and banking stocks are among the worst performers in the hong kong industrial and commercial bank of china three percent and it reports of the nation's share placement. now here in moscow the markets will start trading in two are signed on monday both the r.t.s. and the my six rows over a percent energy stocks among the main gate. hey did this call may have been avoided in the u.s. but mark rubenstein and i have seen measurable believes investors will remain
focused on the other side of the atlantic for key indicators of the health of the world economy. a lot of this was going on sidelines taken the second june the second part of the week. anticipating the u.s. labor market rate on friday morning and this insistence that it's been coming out as sage is being painted the mixed picture and that's why i think a lot of into investors are going to be trying to stay in the sidelines until at least this number comes off then consider this is going to coupled with a pseudo slowdown in august so. a lot of investors given all the uncertainties in the market prefer to sort of stand the sidelines and take conservative positions but i mean we're still in the bull market and this is just a pause and i think now when we pause in the good time to look at their winners or rather maybe losers that's it for now more coming up in about forty five minutes or .