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tv   [untitled]    August 7, 2012 4:30am-5:00am EDT

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welcome back here with our team here is a look at the top stories turkish and saudi officers are reportedly cooperating in syria a country were now even loose links to the government and is turning our very civilians into rebel targets. the f.b.i. hans high profile data leaders within state agencies the u.s. government and lawmakers are criminalizing certain kinds of information and skills while deliberately planning their own. anna carrazzo trial of anti-porn pong ban anderson filed stage with a woman facing up to seven years in jail for storming russia's main cathedral. next
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artie's laura smith's injury is economist roger bootle who won the wolfson prize for developing a practical plan to dissolve the euro zone. today i'm at capital economics talking to roger bootle he's the head of the winning team in the wealth and price which is the competition to find a nice disruptive way for a country to exit the euro roger bootle thanks very much for talking to us now this wealth in prize the competition why was it important to you to put together such a strong and tree i was fascinated by the question that lord will some posed and as i thought about it i quickly became aware that no one to really satisfactorily even i think attempted to answer is no i thought we could learn a lot as well as contributing quite a lot in trying to answer it and that's what we did and talk me through your winning entry barry briefly country wanting to leave the euro must prepare
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a plan in secret among a very small group of senior ministers and officials pretty much as soon as the plan is agreed it must be enacted in order to prevent news leaking out the banks will have to be closed over the relevant period which is probably a week and during that period capital controls will be in place almost say the friday night it will be announced to the people of the departing countries let's call it greece that from then on all the amounts that were in their bank accounts their pensions or whatever their wages prices which were formally expressed in euro's were now to be expressed in draco's and we suggest that the conversion rate between euro's and direct must be one for one now a lot of people get this mixed up they think well in that case what about the exchange rate on the exchanges there's no connection between the official conversion rate and what the drachma trades as and we're pretty sure it would trade
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at a much lower rate probably around while perhaps even two to one against the euro and then the banks open again on the monday. for tuesday people putting their cards into a.t.m. so they can get your ohs out of their bank accounts which are now expressed in drachma thing only get those out at the exchange rate rules now between euro zone drachma because now the euro is trent's is treated as a foreign currency and this way they're not going to have drachma notes and coins available i think a lot of people got fixated on that we argue it doesn't really matter for the overwhelming majority of transactions particularly business transactions they're done electronically anyway and people use cards debit cards and credit cards they continue to do all that only when they use them it's drachma that they're actually transacting for small print actions that require cash then our suggestion is greece
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carries on using your o's until new track when notes are available but your rates at the exchange rate or euros at the new one on one parity with the with the drachma well what will tend to happen is that a dual price system will develop because people will know that direct more aren't the same as your overall or they've been converted one to one rate they will tend to be a different price for your own cash as compared to crack credit or direct debit cards and that will be to some extent messy but it will be perfectly practical there are a lot of countries in the world operate to do currency into pricing system this all sounds very simple in times of in terms of real people using real money are there other complications the kind of macroeconomic level where there are huge complications and problems on one of the biggest is going to concern the legal position because what would happen at the point of greece leaves the euro is it
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would read to nominate its debt its national debt into the drachma. now as far as domestic greek residents are concerned. not going to have any come back home that's the change is going to stand in on the great glory and great cause but we're going to be all sorts of contracts involving known greek citizens where there's going to be a lot of legal argy bargy because let's say a german credit for the sake of argument is not going to want his asset converted into drachma and he's going to argue that this contract was framed in euro's it should still be in euro's and in greece they're going to say oh it's now in drachma and so they're going to be arguments the courts could be heavily involved but the scope for that could also be reduced if euro zone governments reach an agreement on all this which i think they probably would then have to lay down guidelines under which terms of contract would be interpreted and dragged in which would be in
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euro's and that would minimize the scope for legal argument the other major issue is not just complication it's a reality is that initially this is going to be very far from a magic wand when the drachma falls on the exchanges the price of goods and services in greece is going to go up possibly by quite a lot so initially living standards are going to be squeezed far from bringing relief to the order great person it's actually going to make matters worse initially however going forward things are then completely transformed because in a flash greece is more competitive not the grinding deflation they would tell fifteen years but instant pain is li greece is forty or fifty or sixty percent more competitive and the demand for greek output is going to take off that doesn't happen overnight but in a matter of months that will happen greek exports will start to rise greek imports will fall and that will generate employment and more income in greece so there's
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a trade off a difficult period to go through first of all in order to secure later greater prosperity so if you compare that situation to the austerity that the greek the now facing which. would you say it's a better plan i think there's no doubt that greece in my view needs to get out of the euro i cannot see any way in which this current policy of austerity is going to bring any relief or stop this grinding process of trying to bring prices and wages down takes not years but decades to correct the sort of on competitiveness that greece is going through and what's more it raises the real value of debt so greece and the other weaker members of the euro face not one key problem but to their own competitive play their costs and prices are out of line with other countries in the euro and they're also saddled with very high levels of debt the problem with domestic deflation is in principle but the very badly but in principle it deals with one of these problems namely the lack of competitiveness but at the cost of
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making the other problem debt even worse and what we're talking about is countries not only greece but possibly other countries that leaving the euro off to that your file seem to fear the breakup of the year is there not some kind of ahmed getting do you think that's where listed as well i think they're right to fear the breakup of the euro zone because. if greece for instance were to leave obviously we don't know how it would all work out suppose it's possible that the rest of the euro would then hang together but i doubt it i think if greece leaves before very long of us concerts countries will leave as well where they end up probably with the peripheral countries possibly all five of them say portugal italy ireland greece and spain or outside the euro possibly even joined by problems with some northern core remaining so in terms of thinking what might happen i think these people are absolutely right with regard to the consequences though i think they're completely wrong in the sense that you have to ask yourself from the leaders of europe have to
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all stem cells. how can you imagine prosperity and stability for europe under the current setup what is the mechanism through which countries are of the moment ma heard in not just a recession but frankly a depression through which those countries can regain prosperity comic growth and stability i wish they could tell us something along because all i hear whenever they have a summit is they keep banging on about various forms of debt support and never about economic growth now i do think it's possible to imagine return to economic growth in the current setup by contrast if the euro breaks i can't imagine economic growth so far from being a disaster i think it could be the major step that leads to the restoration of growth in europe and what about these attempts to shore up the very same that we've seen recently another bailout for greece cheap money flooding international banks from the e.c.b.
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they going to have any effect well i suppose it's possible to keep the whole show on the road that way if the northern countries are prepared to carry on shoveling this money into the southern countries although i frankly i think that there will come a limit because eventually the sums involved are going to be absolutely enormous and voters in the northern countries will say we don't want all this but even if the continued shoveling of money does take place which people to show on the road again that doesn't actually bring economic growth in the self all it's doing is preventing a financial collapse whereas these are countries that have undergone a very big drop in output and they've got huge levels of unemployment and is what we're seeing just purely a kind of fight between politics and economics is the reason that i'm going to muckle for example is so desperate to keep the air is a together because it's the major political project that germany has implemented over the last thirty years or say i think the politics of the economics are really
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very closely intertwined and it's often difficult to work out where one stops and the other begin. i think you have to appreciate the european elites didn't have a pretty firm grasp of the economics from the start now i think they're getting the economics completely wrong that's to say their opposition to the idea of their fear of the idea of euro break up isn't just about the politics they think that the economics point very strongly that way as well because they fear the financial chaos that would stem from the euro breakup and they don't see the benefits to economic growth so i think they are opposed on both economic and political grounds and we talk a lot about about that the collapse of the year a century but all through this the currency has been oddly resilient hasn't it only really winding down now from quite a decent race against the dollar what do you put that down to i think this is a really big puzzle quite why the euro has been so strong there are reasons that one can put forward or are not myself completely convinced by any of them but one
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thing the thing to bear in mind is foreign exchange markets on the tourist the short sighted the argument against the euro has always been that essentially it will collapse through the weight of its own contradictions as to when people trade on able to say world exchange markets tend not to like to bet on things like that you know something maybe next year maybe next month maybe in five years time it's not a really very solid thing to go on then there's also the question of what form the euro might take if it survives because it's the we could countries leave the eurozone arguably the euro's going to be a strong currency so very far from selling if you thought that sort of breakup was going to happen you ought to be buying it if the euro does become a current seed that applies to many fewer countries will it still retain its attractiveness for investors or are we looking at a return to tell the gentleman nation for example oh i think that the euro could
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continue to be a very attractive currency indeed for many people it might be even more tragic. if you could imagine what's going to happen is the departure of the week of peripheral countries portugal italy holland greece and spain. perhaps even problems that the euro is as it were a great to do it markets germany and it's close satellites and it's going to be rob that car like currency area very much presumably the way the germany used to be run under the deutsche mark and accordingly i think investors will like the currency really very much thank you very much.
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nuclear photocells sorry. radioactive fallout of a government betrayal of the government. everything lauded and lauded and claude how can the truth be revealed if there's no official evidence there was a need to use a very great danger to the servicemen concerned who will give them no problem. and to the people of this country generally because already like the full. the secrets of the u.k.'s nuclear tests exposed. it's leave. you to believe. it's.
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service and saudi officers are reportedly operating in syria country words now even a little slangs to the government turning ordinary civilians into rebel targets. yet the icons high profile data leaders for the stations of the us government and lawmakers are going to ising certain kinds of information spells while deliberately planning their own. way on the controversial trial of an anti poets enfant bad anderson's final stage with a woman facing up to seven years in jail for storming russia's main cathedral. time now for sports updates and events here with the latest of course and finally now dore gold for team russia at london two thousand and twelve yeah not before time on
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day ten in london marina we got a goal in the women's steeplechase to add to those judo wrestling gymnastic gold so yeah good time to get this with a week left in london. thanks for joining us this is for today we have got plenty ahead few including all this this our. best seventeen year old stuff tonight claims gold on the most successful day yet for team russia goes along with the olympic games. keeping the pressure off the road being blocked from behind to be bold move up to fourth place in the russian. ruling on the reverse surf on the course power combined once again at the russian week surfing championship.
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russian pole vaulter yelena isinbayeva looks set to call it a day on her amazing career after failing to retain her olympic crown the world record holder forced to settle for brawl in london the spy thought relatively low there were plenty of highs besides on day ten of the games. reports. well behind me on the houses of parliament images of great sporting moments from a lympics gone by but unfortunately london two thousand and twelve will be again julian is in by over will want to forget the russian pole vaulter failing to make it in the store at three olympic golds in a row having to settle for bronze after failing to clear four meters seventy five the usa genesis or did make that hike to claim gold ahead of cuba's silver by own standards the russian will be desperately disappointed before the games she did say this would be her last competition bringing to an end incredible career for the former olympic and world champion who has set twenty seven world records but while
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she was struggling did light up the track in the women steeplechase the russian claiming gold with a personal best of nine minutes six point seven two seconds the fastest time in the world this year adding the limpid title to her world and european crowns and there was a bronze for you kenya in the women's shot put ops to choke from bellary use got the gold. elsewhere there was a tremendous cold for russia in the gymnastics seventeen year old stuff and claiming that in the uneven bars beating the defending champion haye kicks in from china with an impressive score of sixteen point one three three and completing a fairytale comeback from a staff and paralympic during the period to be in tatters just over a year ago when she repeatedly ligaments but she has bounced back in style giving russia their first gold in artistic gymnastics in sydney two thousand however former soviet great olga korbut says the country still needs more coaches. fifty percent to seventy percent different from. that which
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a lot of coaches go for. which while tennis are bans in was doing his best to restore russian pride after a bronze in the floor exercise he got a silver in the vault behind korea's had shown yak russia's artistic gymnasts now have seven medals compared to the two bronze they got in beijing elsewhere there was a second gold in two days for russia greco-roman wrestler's this time is. in him pick champion beating egypt's cutting you put him in the final of the eighty four kilogram section the russian is ranked number five in the world in his previous best was a silver at the european championships but he showed a real step up in class to claim gold in london while saw a game of golf got bronze in the sixty kilograms section finally the fallout from russia's poor performance in the shooting continues the head coach had resigned in ny the head of the shooting union has said there was a bad spirit in the camp we had little. but i must admit psychology was
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a factor the team spirit was far from good we have a lot to do this respect however they give their all of the olympics and i am proud of the mole our team a still one of the best in the world we were very close to claiming much more podium places but luck wasn't on our side. so not a perfect day but still the best day so far for russia at these games it is just a great shame he leena isn't by over couldn't bow out in style andrew farmer for london. her purse to depart the olympic scene a new rising star has emerged karami james no doubt smiling from ear to ear today after the canadian claim the carbon island's first ever gold medal the nineteen year old storming to the top of the podium in the men's four hundred meters well clear fellow teenager dominican well and some toss second along the course of trying to be gold who came bronze with the display james becomes the fastest modern
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history over one's. surprise to win the men's four hundred metres hurdles final with felix sanchez turning back the clock to claim his second unpick gold in the event the thirty four year old american who did the business are often two thousand and four edging american michael tinsley well the fastest man this year in the discipline javier kusin from puerto rico not drugs. history was made meanwhile back indoors out the artistic gymnastics men's rings final twenty two year old after a number of things in it to becoming the first gymnast from brazil to win a medal of any color in the rings out there and she goes. defending olympic champion on favorite weeping all show. so let's have a look at how the medal table stands currently right behind france in six position with seven gold seventeen silver and eighteen bronze medals while china have again overtaken the u.s. at the summit with team britain and northern ireland sitting very pretty empty just
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behind the. let's get an update on sport from outside the olympic spectrum in a russian football move being. from behind to be vulgar two on monday moving up the fourth in the premier league and the process alexander hardy told off the man hoping the spring for the host a quarter of an hour in. the hole believed would last until eleven minutes after the break dennis part of dina's leavening moderation people put on a mission shot. and soon afterwards the men secured all three points for a minute to make it with a strike so blistering it was too quick for even the camera to on rubin the final score a second win in a row for the title hopeful it's. not result seems to be moved up to fourth just a point behind the new force in russian football on g. well it's a perfect three from three for the two sides of the top sports and reigning
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champions and eat some petersburg sure to have a considerable say in where the title resides the seeds. of the cream of the golfing crop are gearing up for the p.g.a. championship this thursday the top one hundred three players on over one hundred fifty in total in for glory in the final major of the season stifling heat on the possibility of gusty winds just some of the challenges tiger woods has to contend with if he is to win his first major since the us than eight u.s. open. his first p.j. title in almost two years on the second major championship to his twenty ten u.s. open trophy where number one luke donald has never experienced success in any of the big four being explained clearly though with his homework done on the car line of course. it's a great golf course. you know reserve after last week akron feels like it's reasonably generous are pretty you know if the wind doesn't like it it was pretty
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mild today with in terms of wind conditions it's does give you some opportunities greens are perfect you know it's very typical pete dye lot of grays greens alone for. the miscreants is going to be tricky. finally the second ever russian week surfing championships were held in moscow over the weekend plenty at stake for the adrenaline chasers not least their trip to the world finals nicholai chills takes up the story. it was bound to happen sooner or later surfing with the help of an engine this elixir for a new sport is the lights in france here in moscow wakes up in the new heat among lovers of water sports with waves it's a premium throughout most of russia riders must make do with the ones they create themselves why the help of a boat after getting up on the wave using a tow rope sofas then discard an attempt to ride the wave in the fashion reminiscent of the sport's more famous cousin while the president of the russian wake surfing federation says the new style is certain to be
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a winner among watersports innovators the amount of participants our supporters as been growing every year and that is the objective of our work so we'll continue doing these championships every year or train our athletes and improve the level of competitions which i believe will make things even more exciting. vishy and moscow hosted the second day of a russian wake surfing championships as well as handing out medals the aim was also to produce more professional roi it is as many contestants were only starting to get to grips with the sport but there were plenty of experienced riders king to show off their skills one of them. who came third at the fourth annual world championships in arizona last year. last year i went there without any expectations i just wanted to see the real world championships to get to know the world's greatest writers so i could talk to them and watch their talk last performances basically that was my goal but i managed to finish third as well.
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vichy around that was another of the country's top performers young the gloomy enough who was crowned queen of the waves are two highly aaron was in no mood to relinquish his crown win in the men's title for the second straight year so through some spills aplenty as the russian finals come to a close the next stop for the top riders here though is the twenty twelve wake surfing championships in arizona that's where the best of the best will gather to do battle for the second year running nicholai charles i ask of. all your sports
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fall be back in just under two hours time with more weather is next.
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you know how sometimes you see a story and it seems so for like you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know what i'm charging welcome to the big picture.


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