tv [untitled] August 9, 2011 4:31am-5:01am EDT
talk about a new global reserve currency is mounting well archie spoke to a nobel prize winning economist joseph stiglitz on the eve of bretton woods conference in april but as revenue seems to have only gained currency since that. joseph stiglitz is a nobel prize winning economist in columbia university professor and he's pushing for a rethinking of the global economic framework in the wake of the financial crisis now he's come with other economic and policy leaders to the historic bretton woods where decades ago a conference here led to the formation of the international monetary fund and named the u.s. dollar as the reserve currency and they've gathered to rethink some of those very policies he joins us now to tell us more about it i want to thank you so much for joining us professor now you've written recently about the increasing disparity between rich and poor in the united states and you've even compared these conditions to what led to the unrest we've seen in the middle east so what do you
think are the factors that led to this and what do you think the consequences will be with the point raised was that the increase in the concentration of income in wealth in the united states has been enormous. which happened in the last couple of decades is almost a quarter of the income goes to the upper one percent around forty percent you measure it or the wealth goes to the upper one percent americans used to think of themselves as a land of opportunity everybody else thinks of themselves as a land of opportunity and the old europe is ossified. the data. don't show that meanwhile we see protests taking to the capitals of states like wisconsin so it's reaching a tipping point i think they're beginning to realize that most americans are worse off than they were say
a decade ago so it's not just that all this wealth is going to the top if everybody we're getting better off you can say well some are doing little bit better than the others but actually mooste americans are worse off than they were a decade ago and that is if you include the sense of insecurity the loss of jobs that will it insecurity but health rights that most people in europe take for granted in the united states people if they lose their job can lose all the access to health care and one of things that i raised in my article was that the put not only the political consequences but the economic consequences that there are many things that any society has to do together. you have to. get education investments in technology. infrastructure roads.
that means that there has to be a certain degree of consensus for a society to function even economically these are things the government has to do but if you have a very split society there are going to be very different views about what's important if the rich can buy their own parks they don't need to have public parks if the rich can buy their own education we don't have to have public education if the rich can buy their own health care we don't have to have good health care for most americans and that's where we're winding up today so the people at the top that one percent. are using their political power to try to preserve their wealth and meanwhile making sure that the government doesn't do what is necessary for the prosperity the functioning of our entire society we're not seeing an increase in funding for empress structure or education or science and said we're think quite the opposite said you think this country is headed in the wrong direction that's
right and that was what was brought home so forcefully by the what was going to happen in wisconsin here you have people saying over the country we need to improve education. but what are they doing cutting teacher salaries now you're not going to attract the best people into education if you don't pay them i mean that simple economics and it's not a surprise in the context that to day in those standardized scores that rate education all over the world united states is really not doing very well so who's to blame here is it politicians asleep at the wheel or out of touch with reality or are there greater flaws in the system it's both i mean there are some real. deep flaws in america's political system. our campaign contributions supreme court said the corporations are people i mean it philosophically i find that difficult but they said because we can't restrain the rights of free speech corporations have
unlimited ability to contribute and that means they can use their money to get laws that evolve them to escape taxation and to shape a political process that really we work for them but not for the rest of the country and what i argued in my paper in my article was this was shortsighted if you don't make these investments we're going to wind up in a divided society in an unproductive economy and even that one percent. will suffer and that is the link between what happened in tunisia and mexico and in egypt and other countries where they divide has grown and. it's meant that their economies have function and the societies have not functioned speaking of not functioning well what about the u.s.
dollar because you're someone who is calling for a new global reserve currency but why because some say what's the alternative really what i've argued for is a creation of a global reserve currency. reserve currencies are you might think of a store of value. and the dollar has been very unstable. understandable given the difficulties you might say of american economy you know our performance was not a stellar. but the fact that in a modern globalized economy twenty first century it's an anachronism that a single currency would play the pivotal role that the dollar has played but i argue and i've argued my book making globalization work is that the dollar reserve currency system contributes to inequality. that poor
countries are lending to the united states or close to zero interest rate and then borrowing back a much higher interest rates an equitable increase it contributes to instability. and it actually contributes to a weakening of global aggregate demand a weak global economy because if countries are setting aside. literally hundreds of billions of dollars. saved the cautionary savings. that's money not spent so you're saying essentially it hurts everybody to have the u.s. dollar is that was our currency that's right and what we describe what i've described in the u.n. a commission that i share your commission on reforming the global financial monetary system. explains how we can create a global reserve currency as really interesting to be here at bretton woods talking about that because keynes argued for this seventy five years ago. in the
aftermath of the great depression he understood. the links between you case problem in the u.k. being the reserve currency down and then if we're going to have global economic stability we needed to move off of the. single currency country being the reserve currency. bretton woods failed from his perspective in this respect and didn't the us say hey we disagree we want to be the main reserve currency and got their way so would the u.s. still have that same power if world leaders got together again today for another bretton woods conference i think at that same meeting where in bretton woods the world is markedly different china has close to three trillion dollars of reserves about a third of the global reserves about nine trillion dollars you're holding three trillion dollars you have some voice in what kind of reserve currency system you
want to have and china has been very clear that it worries about the current dollar based reserve system right after un commission came out and support china supported it francis supported russia supported it so there is a wide understanding now you know animists but a wide understanding of the importance of this idea and i think if the economy global economy remains weak i think they'll be more interest as one of the remedies to the current instability and weakness in the global economy has also been critical of the united states for its policy of quantitative easing and if i've read your writings correctly you seem to be saying they have a point so what is that point the point is the u.s. is creating liquidity us work very hard to open up global financial markets and one of the implications of that is when you create liquidity if you go anywhere in the world it was where's it going not where we need it here in the united states it's
going where it's not needed in china and brazil and other countries that don't want it so it's not only they don't need it they don't want it. we have to fix the banking system the united states our system of getting money. into small and medium sized enterprises is cocked and the federal reserve has not fixed it you know they they contribute the creation of a crisis they didn't understand the basic economics and that's one of the purposes the meeting here in britain works but because they didn't understand the problems that they were creating they didn't really understand how to fix it and yes they brought us back from the brink they saved the big banks but they have not really gotten our economy going again i want to thank you so much for the.
rioters and police the prime minister has cut short his holiday to hold emergency government talks on how to deal with it mayhem. wall street hits a new low since the two thousand and eight financial crisis and that's despite a public message of defiance from president obama but as the u.s. credit downgrade triggers freefall and global markets india claims its economy could actually benefit from the situation. plus as the eurozone tries to whether its economic storm. plans to adopt a single currency highlights a broader european desire to stay out of the euro crisis. more news for you in about fifteen minutes time but first let's check all the latest in sports now with andrew andrew the riots going on in london is having an impact on the football fixtures what could happen in. the netherlands at wembley in the capital tomorrow but that. decision will be made later today on. the build up to
russia's friendly against. hello there thanks for watching the sporting these are the headlines no time to experiment russia. will pick his strongest side for the friendly against. close home at last former stanley cup win a value of joins russian side atlanta after nineteen years in the n.h.l. . and in pursuit of more glory martin arrives in georgia as he prepares to defend his p.g.a. championship title. but. says he will pick his best eleven for tomorrow's friendly against serbia adding there's no time to experiment with crucial qualifiers fast approaching however he will have to deal with that as any
midfielder. he picked up an injury during their win over the weekend serbia will miss a couple of plays themselves. thank you. but despite that applecart told r.t. they're a tough team and russia need to play well to the september's euro qualifies against macedonia and. no other tells them the proposal. to go for the final matches. the players are showed. great people to do something well also if you know what you are going to do people serve the national team to play i mean a very similar macedonian over a very good side defensively point. we are still. playing. because you are going to loop play because of the time for experimentation is it really just trying to solidify your stance and eleven and playing together. to play
with the engine used. to sort. we don't want to take any risks now. but also for the games we're coming up so. we still must be feeling very confident of installing a very good position going into the full games. as well so we have to do would have the feeling that. we were the better side so now we have to continue. the question of. greece and pretty much just recently something you'd be able to watch margin how do you explain russia's inability to win pretty much as of last year i was happy to be the last run against a move and i was dropping that was a very good. players who are not normally. the starters there's
a show that they can. put in the questions then i'll sway england's friendly with the netherlands. because of the riots in london the english f.a. say what they say they will take advice from police later today before making a decision about tomorrow's game striker wayne rooney incidentally has even appeal for calm on twitter he wrote this is embarrassing for our country stop please if they're going goes ahead england will be without frank he's got a throat infection. and manchester united jamie carrick injured meanwhile us asian coaching klinsmann is preparing to his charge his side play mexico in a friendly and replaces coach bob bradley and it's held his first training session after mexico the usa play costa rica and belgium in two more friendly before qualifying for the twenty fourteen world cup gets underway. it's never too soon to play a really good team you know that's what you want to do in order to grow in order to improve your your team and give them the best experience possible you know if you
could play mexico brazil argentina those are the games you want to play you know go overseas to europe and. the best you can in order to improve your program that's what you're trying to do now back to domestic matters and says talk of him being sold from arsenal to angie is just speculation adding he hasn't received an offer from the russian premier league club and he's thirty is only contracted to stay with the gun is for one more season but it is thought to be he is thought to be a target for angie we've just signed a call from chelsea the club of also being linked with any strike at bank allows of each although he also says he knows nothing about a possible transfer owned by billionaire soon carry more of the signed brazilian roberta carlos at the beginning of the season well and you've had a good season so far their fifth after getting a two no when over tom at the weekend but a still the ones to catch em in case you missed any of the action here is your chance to catch up it is gold.
i. know there is only a month to go until the start of the new k.h. l season and last year's finalists after and have added three powerful players to their roster among them i don't think a value of who returns to russia after nineteen years in north america he was the first ever russian to be drafted in the first round of d.n.a. chela made more than one thousand three hundred appearances in america's top league scoring more than a thousand points however the thirty eight year old stanley cup winner and in pick champion wasn't offered more than a one year deal in the n.h.l. and decided to move to the mosque a region side value of will play alongside another russian returning from the n.h.l. give the twenty six year old forward returns to atlanta for the third time in his career and there was another last minute surprise signing to branco without evil average also joins the same after failing to extend his deal with spartak moscow. we took it as a business and. i have to accept a little over the get rid of me but. we shake
hands after all and the more i think. you call me good luck i told him good luck and go you can i can be happy that i can stay in the more school and you know really find a really quick deal with the atlanta and i'm really happy to be i just didn't want to original training care for you really really you see these are very grateful what's going to be for going to sign a contract i'm not going to serve the church or i just decided to do was really interested. to do want to do want to have me on the team or you know to give me two years you know just there was a no brainer for me you know be great to watch now with the u.s. open starting at the end of the month tennis players are using this week's masters event in montreal as preparation and russia's make a lot of agenda has got off to a good start at the rogers cup beating italian qualifier five year topola in straight sets there were also wins for you. no we're free to tsonga martin del
potro to tsonga is the thirteenth seed at this tournament and got past the winning the first set six four one a tie second on a tie break for the match and juan martin del potro joins him the argent time missed last year's rogers cup after being sidelined with a risk injury for most of the season but his form is coming back. in and six four six love. and a new world number one never joke about cheese in action later this week it will be his first tournament since claiming top spot and was given a trophy to mark his new status djokovic is aiming to be the first player to win five masters titles in a single season in ma the world's best golfers are also getting ready for their last major of the year the p.g.a. championship starts on thursday in georgia in the united states the bending champion martin kaymer and masters champion charles schwarz will have been out on the course at the atlantic country club sweltering there at the moment so they were out in the morning to avoid the worst of the heat many big names haven't arrived
yet so after taking part in last week's girl golf championship but it will be a fiercely strong field although i must says being the defending champion one put any extra pressure on the shoulders. in the end doesn't really make a difference you know we're playing a different golf course so that we would play the same golf course and of course. i would see myself. or i would expect to to to do well again this week which is a new golf course here any tournament it. doesn't really matter if you're defending champion or not you know you just have to. be can you have the same same field unless you have to beat all those players. and i don't put any extra pressure but so that's still a sport for me for the moment so i've got more feel in. live . live. live. bringing you the latest in science and
a flare beyond london after three days of clashes between rioters and police. european stock markets are diving after wall street hits a low not seen since two thousand and eight as perfect investors abandon global stocks. plus as the eurozone tries to whether its economic storm of poland shelving to adopt the single currency highlights a broader european desire to stay out of the euro crisis. it's one pm here in the russian capital. now buildings on fire windows smashed and shops looted these are the events devastating the streets of london as police officers and their thousands are deployed to tackle the lawlessness now spreading to other cities and it is keeping a close eye.
Uploaded by TV Archive on