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tv   [untitled]    August 7, 2012 10:30am-11:00am EDT

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thanks for joining us here on our just in time for the headlines now. and saudi fighters are said to have been captured in syria helping the rebels to fight against president assad all of this in a conflict that now sees more civil servants targeted for simply being employed by the government. three years behind bars the demand of the prosecution at the trial of the headline grabbing pussy riot draws to a close right here in moscow. to communication satellites aloft in space softer a russian rocket failed to place them into orbit on monday and then i'll pose a threat to other satellites as well as the international space station. smith to
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interview economist roger bootle he won the wolfson prize for developing a practical plan to dissolve the eurozone and that is next right here on our. 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 the least disruptive way for a country to exit the euro logical 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 lot will some posed and as i thought about it i quickly became aware that no one of really satisfactorily even i think attempted to is not 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
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winning entry very briefly country wanting to leave the euro must prepare 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 those 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
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conversion rate and what the drachma trades as we're pretty sure it would trade at a much lower rate probably around one of the perhaps even two to one against the euro and then the banks open again on monday. well tuesday people putting their cards into a.t.m. so they can get euro's out of their bank accounts which are now expressed in drachma thing only get those out at the exchange rate the rules now between euro zone the drachma because now the euro is treated as a foreign currency and this way they're not going to have 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 that they're actually transacting for small transactions that require cash then gesture as greece carries
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on using euro's until new track when those are available but you raise the exchange rate at the new one on one parity with the with the drachma well what will tend to happen is that a price system will develop because people will know that. the same as euros although they've been converted one to one right they'll tend to be a different price for euro cash as compared to. 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 and this all sounds very simple and in times of in terms of will people using real money are there other complications at that kind of macroeconomic level well there are huge complications and problems and one of the biggest is going to concern the legal
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position because what would happen at the point of the greece leaves the euro is it would read to nominate its debt its national debt into a drachma. now as far as domestic greek residents are concerned. but i haven't come back on that change is going to stand in on the great glory and great cause but we're going to be all sorts of contracts involving non-green this is where there's going to be a lot of legal argy bargy because let's say a german creditor 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
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which. a contract would be interpreted and in which occasionally it could be in 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 a 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 were ten or 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
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will fall and that will generate employment and more income in greece so there's 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 slow the rising process of trying to. take. hold of our credit very much more it grazes the real value of day to greece and the other we can members of the euro face not one problem but to their own competitive 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
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namely the lack of competitiveness but at the cost of 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 europe file seem to fear the breakup of the year is there not some kind of ahmed getting do you think that's where listed 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 together but i doubt it i think if greece leaves before very long of us conses countries will leave as well and 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
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regard to the consequences though i think they're completely wrong in the sense that you have to ask yourself when the leaders of europe have to all stem cells how can you imagine prosperity and stability for europe under the current setup one. is the mechanism through which countries are of the moment malard 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
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from the e.c.b. 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 keeps the 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 we'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 michael for example is so desperate to keep the year is a together because it's the major political project that germany has implemented
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over the last thirty years or say i think the politics of the economics are really very closely intertwined and it's often difficult to work out where one stops and the other begins. i think you have to appreciate that 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 essentially 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
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one can put forward or are not completely convinced by any of them but one thing the thing to bear in mind is foreign exchange markets are notoriously short sighted and the argument against the euro has always been that essentially it will collapse through the way through its own contradictions as to when people trade on able to the 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 will 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 investing 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 attractive if you could imagine what's going to happen is the departure of the weaker peripheral countries portugal italy greece and. by. perhaps even problems then the euro is as it were a great to do it markets germany and it's close satellites and it's going to be around that car currency area very much presumably the way that germany used to be rounded up and accordingly i think investors will like that currency really very much thank you very much. world. science technology innovation all the latest developments from
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around russia we've got the future covered. in the news a secret laboratory to mccurdy was able to build hundreds most sophisticated robots which on fortunately doesn't give a darn about anything tunes mission to teach music creation why it should care about humans and we're going to see this is why you should care only on the dot com .
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the headlines on r.t. turkish and saudi fight is said to have been captured in syria helping the rebels fighting against president assad it's all in a call for analyses more civil servants talk you did for simply being employed by the government. three years behind bars that's the demand of the prosecution and the trial of the headline grabbing pussy riot has draws to a close right here in moscow. and two communications satellites lost in space after a russian rocket failed to place them into orbit on monday but they don't pose a threat to others as well as possibly the international space station. or those in my news headlines for now though it's poll and the latest up to the minute elim
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pick news headlines. thank you very much rory welcome to the world is what we go out best bar none seventeen year old. second gold medal of the london olympics this time in the women's floor of a. keeping up the pressure being come from behind to be vulgar and live up to for the russian from the other. horse power combine once again at the russian surfing championships. but starting at the olympics and russian pole vaulter yelena isinbayeva looks set to call time on her career after failing to retain her limb pick title the world
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record holder forced to settle for bronze in london however there was a success for russia on day ten despite the disappointment for isn't by over pharma reports russian pole vaulter failing to make it in the story three olympic golds in a row having to settle for bronze after failing to clear for me to seventy five the u.s.a.'s genesis did make that height to claim gold ahead of the silver byron standard the russian will be desperately disappointed before the game 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 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 cranes and there was a bronze for you can you in the women's shot put. joke from bellary use got the gold
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elsewhere there was a tremendous gold for russia in the gymnastics seventeen year old staff 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. to pursue. their interests and different from. that which a lot of people just go away. with while dennis are bans in was doing his best to restore russian pride af. a bronze in the floor exercise he got a silver in the vault behind korea's hexagon yak russia's artistic gymnasts now have seven medals compared to the two bronze they got in beijing elsewhere there
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was a second gold in two days for russia's greco-roman wrestler's this time is our own cool guy who's been in picture beating egypt 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 quite a game of golf got bronze in the sixty kilogram 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. choice but i must admit so i told you was a factor of the team spirit was far from good but we have a lot to do this respect however they give their all of the olympics and them proud of them all our team are still one of the best in the world we were very close to claiming much more podium places that butler wasn't on our side at all. meanwhile there are further chances of success for russia later on cheers de anya's account
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of qualified in second place from the semifinals of the mainstream media springboard diving competition he'll be going for gold in the final of a little later on his compatriot you have gaelic which nets off as a result of the defending champion the chinese hey sean qualified in. the mean time in the women's volleyball it's the quarter final stage rush hour in action right now against brazil and the set there has just started still no mail so let's look at the very latest medal table then on russia notoriously slow starters at the olympic games are working their way up the table now up to six and just behind france the top five and then as you work with china and the usa leading the way. now staying on the olympic theme and serena williams says she has no plans to retire after completing a career golden slam she's now won all four grand slams plus gold at the olympics in the singles and doubles this after she beat maria sharapova in the most one
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sided final ever and the american says she intends to defend her title in rio in four years' time. right now i feel like i'm competing with with everyone else out there pretty solid i am i feel like i belong i'm not tired i'm enjoying myself so much. i don't see indrani. i plan on being there. simply doesn't allow me to. i will be. well elsewhere english premier league side arsenal have strengthened their ranks by completing the signing of spanish midfielder son think of all of the twenty seven year old following in the footsteps of olivier giroud lukas podolski in arriving at the emirates this summer the spanish international help his country to success at the european championships in two thousand and eight and two thousand and twelve a versatile midfielder who can play on either flank so as his arrival from la liga
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side malaga is a huge step forward his career has agreed what's been described as a long term deal for an undisclosed fee. meanwhile in a russian football we had to battle from behind to be vulgar to want to monday moving up to fourth in the premier league in the process alexander kind of tone of the man opening the scoring for the hosts a quarter of an hour into the match. vulgarly could last until eleven minutes after the break got down i scouted dennis levering matters after the goalkeeper could only pari an initial ruby shot soon afterwards the cause and manner secured all three points are among the other main car with a strike so good that even for the camera man to want to be in the final score a second win in a row for the title hopefuls. well that results in israel being moved up to fourth just a point behind the new force in russian football and jake well it's a perfect three from three for the two sides at the top spot arc and reigning champions innings short have a considerable say in where the title ends up with things that. now the cream of
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the golfing crop are gearing up for the p.g.a. championship this weekend at the world's top one hundred three players and over one hundred fifty in total aiming for glory in the final major of the season stifling heat on the possibility of gusty atlantic winds just some of the challenges tiger woods has to contend with if he's to win his first major since the two thousand and eight u.s. open while graeme mcdowell is aiming to add his for us p.g.a. ties with almost two years on a second major championship to his two thousand and ten u.s. open trophy while world number one luke donald has never experienced success at any of the big four the englishman though clearly with his homework done on the south carolina course it's a great golf course. you know reserve after last week feels like it's reasonably generosity you know if the wind doesn't like it it was pretty mild today with in terms of wind conditions it does give you some opportunities greens are perfect you
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know it's very typical pete dye lot of grays greens a lot of fall off. the miscreants is going to be tricky and finally the second russian awakes i think championships were held in moscow over the weekend plenty of stake for the adrenalin chasers not least a trip to the world finals like charles takes up the story. it was bound to happen sooner or later serving with the help of an engine this elixir for a new sport is delighted by its even more weeks in the new heat to mung levels of lead to schools with grades it's a preview throughout most of russia riders must make do with the ones they create themselves hope of a boat of the getting up on the way of using a toll road so it was then discovered an attempt to ride the wave in the fashion reminiscent of the sports. famous cousin while the president of the russian break certain federation says the new style is certain to be a winner among voters sports innovators the amount of participants our supporters as been growing every here and that is the objective of our work so we'll continue
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doing these championships every year around fleets and improve the level of competition which i believe will make things even more exciting. vishy 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 reuters as many contestants were only starting to get to grips with the sport but there were plenty of experience for it is keen to show off a skills one of them and us this year. 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 well essentially that was mangled but i managed to finish third as well as.
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the sheer around that was another of the country's top performance yellow glow millionaire who was crowned queen of the waves as well hi larry was in no mood to relinquish his crown when the main starter for the second straight year so through some spills aplenty as the russian foreign minister come to a close the next stop for the top riders here though is the twenty twelve week surfing championships in arizona that's where the best of the best will gather to do battle for the second year running nicholai joel's nascar. well that is all from the world of sport for now although i'll be back with plenty more just on the two hours time here and i'll take
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a wild weather is next. well for science technology innovation all the moves developments from around russia we've got the future covered.
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bittner. pearls . her are little league little little .


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