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tv   [untitled]    October 26, 2010 7:30pm-8:00pm EDT

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to protect our hearts together so yes we can provide such accuracy leads to many forms of modern technology update here on a long sleep we've dumped the future covered. hello again and welcome to spotlight the in t.v. show on r.t.e. i'm going off and today my guest is gate alex national. finance ministers of the g. twenty countries have reached an agreement not to devalue their currency this seems to have saved the world from what's called the war of currency experts fear a war of this kind could cause chaos on the global markets but is it something we should really be cautious about or are these fears of the past we're asking our
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guest who is a well known financial analyst and former russian deputy finance minister. the g twenty finance ministers have succeeded in a standoff against china which has been seen as a major troublemaker on the currency markets the u.s. accusing the gene of purposely lowering the value of the yuan which gave chinese goods a competitive advantage on world markets russia has also been worried about possible targets he was as they can boost inflation in the country but use the protective measures like devaluing currencies would be avoided by the g twenty countries helped calm the markets of those makes but say they still have the amde of the world currencies just peace talks. and welcome to the show well first of all i would ask you about the about this decision taken in korea at the cheap g. twenty meeting the finance ministers decided that they will refrain from weakening
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their currencies how do you think they will be able to keep this promise i think at least one week in a week because all promises all promises were. all the meetings of course they're not legal or not legal commitments and express all good we'll and we know very well that income in days for dollars or for the united states for the knowledge of the quantity of reason in phase two and no one knows the size of the magnitude or these action so if their action is rather small it's a hundred to two hundred or three hundred five hundred billion dollars of course it's will not affect a chorus of markets but if occasionally being almost like said that if me and reach up to four trillion dollars of course these two will. create another two or more on the financial market so let's wait and see if this commitment is not legal and of course. if you have an event or if you have a need to know for finance ministers you have to reach agreement on something all
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this but what's the use of bringing finance ministers of the leading twenty countries together and then talking for for a for two three days discussing coming to a decision that will be that will be kept only further for further five days as. we remember with you without the dand fifteen years of war there was such a group called the do seventy seven and it is over very important it was really influential group of decision makers who decided their financial political destiny of the world and decisions made by their group where really influential they were really important and that group of finance ministers was able to make decisions that are where implemented but the situation of the global economy has changed now days even the united states is not as dominant as the counter was fifteen years ago who have new emerging countries like china like india who would like to play their
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role in international sphere and in fact you cannot discuss the situation of the world economy without china so you may discuss it with our brazil without rational without even or without u.k. but you can discuss without. and that resulted in such a global called g. twenty two years ago for the first time when financial turmoil took place but it's a new group with a different interest with different ideology or with different economic policy and they have no cost to reach an agreement so they're more democratic with less influential there. of course of whether it's more democratic with making taking a call that bigger number of the countries but different countries are less democratic just seven is a global democratic nation and they have a habit to keep the promises in recent months and number of countries have tried to drive down the value of their currencies and their spotlight you know the demeter now explains. japan's intervention has been one of the first episodes of the
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so-called currency wars when the yen heated its fifteen year high against the us dollar to kill started a massive sale of its own currency combined with the purchase of the american backed was meant to boost japan's exports and this will help recover the country's economy that was just one event in a chain of similar actions taken by various countries asian as well as european the process was named competitive devaluation this is something china has been doing for years dampening its you want to make exports cheap the u.s. its long time major point and is now criticizing other countries for fully jeans example meanwhile economists believe it's the united states that currency wars in the first place by printing a lot of money now the chain of currency devaluations i believe to threaten global economic recovery finance ministers from the g twenty countries together last week
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in south korea to try and tackle the problem they have agreed to do it we can in their currencies to boost exports experts think the temptation might prove to be too. two strong stand. will observers say that their china over the recent years have been have been appreciating its currency is that true. yes it's true because china recognizes the value of your news and it'll be a law and then move in a step by step a lot of fast but radio that there's this process was rather fast some way before two thousand and five two thousand and six and then it was frozen for a couple of years and now days since july china once again started to appreciate the bounce is it true that the reason for that is is that the u.s. was actually insisting that china gives an appreciating i would say i would say it is a reflection of the understanding by chinese authorities of the situation that the
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exchange rate or what changes you are an effect on the global economy and affects warble imbalances and of course china would not like to be the cards were there to blame by the rest of the war for distorting the global economy of course china is is early on in is trying to understand how the chinese economic policy affects the rest of the wall and they try to listen to advisors well here now is a quote by the head of euro zone john claude you care expressing the european point of view. given. china's import. mood we do think. the ordinarily significant. boost appreciation of the real be would promote more growth to both of china and the global economy we do think that the success of dupion would come with this in the best interest of china we express our concerns as regards
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reason to asians about this because it's concerted the base of the of the. world this would be destructive as would be in the form of great protections. here's a gentleman trying to express the interest of china well every time i hear interests of china from people like you from france from financial tycoons i always ask myself interest of chinese business chinese government chinese people so what really do you think is in the chinese interests decreasing or increasing. the kind of saying people business government in the long term in the long term of course appreciating the cost issue years for everybody and yes yes the problem is that until once again and he only a decade ago china was there with general powell one. fast draw in contra but still
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mainly involved it is the mystical problem in the recent decade china became the second global economy and the situation in china affects the rest of the water this is a new situation this is a new situation for the world this is a new situation for chinese leaders and they have to adjust their domestic policy because previously they were making decisions taken into account all the domestic interests now days they have to recognise that situation has changed and any decision in china affects the rest of the world affects labor effects employment effects growth of the quantum in europe when in africa. you north america and china needs to become the one of the call police in the global game so and that is of was in favor of all chinese comparable population of business of the government well the chinese themselves seem to be rather skeptical about the real motives of the us
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pressure on china here's a quote by doing director our finance call that china's university of international business and economics. to me were as far as america is concerned the slower china response to the exchange rate were better because the us will always use the currency exchange rate as a bargaining chip to make china make more compromises in areas such as international policy and economy which is opening up the chinese market. do you agree that there there there this u.s. pressure is is proceeding rather political and economic i would say i would say that is the new the normal behavior by a medical authorities just to establish to create pressure on their own born and and there we would see it we could see in the years before person in europe a person person wattle person chapin with well nor blogs or court today the united states tried to players know the play tried to pursue in china saying ok look guys look on the wall more globally you have to recognize that it's not only you're not
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an isolated island you have to take into account all other dimensions or other channels of influence what you saying means that americans and europeans think they should teach china heard to be cave in the world a lot of it is a major you would better choice there try to learn from the chinese because i'm too little from a local is under there they do not want to teach they want to share their experience yet because being a global conflict between the global nation for several decades or was american administration has accumulated a huge international experience understanding how the global economy functions. chinese unfortunately even russia even russia i think will have lost if you listen you know it was an isolated conference in russia we have more understanding of the global economy how to function and china as well it's it's i would i would you know it would have to should because any time mind debate with my colleagues from the us administration. because they know more than i know says said again exceptional
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could direct to our macro economics department that must go higher school of economics spotlight will be back shortly after a small break we'll continue this interview stay with us. there is not enough space for them on the ground. zero down to. get things nonexistent under the sun. fill the gap of adrenaline. discover deeply hidden secrets. they are seeking.
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and even. talking to god. from the. underground. wealthy british science. markets find scandals find out what's really happening to the global economy for a no holds barred look at the global financial headlines tune in to gaza report on our. welcome back to the spotlight i'm al green of and just to remind germany a guest in the studio here today is said to be alexy a former russian deputy finance minister former first deputy chairman of the
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central bank of russia i remember those days. well thank you thank you for being with us today once again and we just started talking about china we just started talking about the bad the u.s. and europe trying to share with charring that their experience of leading the world economy for a number of decades which i did not because but while china has been around more than a low then europe has learned there's a lot of what we get if one who is now economy was different but it's still it was economy men haven't changed a lot see a lot of love full of you know evil you know noise is sort of it's sort of if you look all the world he used to realty before nineteenth century you will see is that g.d.p. per capita was good to stable are less industrial revolution took place in the united kingdom did you people could have it i was going where a very slow and all economies were localized there were natural economies ri was
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yellow not that i am sure there is a huge nation listen or don't hear as federal reserve white house is talking to china trying to share their experience while the us federal reserve continues to print billions of dollars and pumping them into the economy isn't it isn't it actually a policy of dollar depreciation while they're voting for appreciation i would say that as a new government in the war american government first of all would like to solve all problems the problem of all nations as well as china as well as russia as well as the british to go with and of course of course it is a great danger for the united states. the economy he's facing the double deep. economic recovery is not stable is not fast and there are great concerns that unemployment is high enough and the economy milf only phase the second decline in the role and of course federal federal reserve would like to help to boost the economy by cheap money so money for
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a policy maybe is not the best instrument but is the only one remaining in the hands of the most of those it's a show you think there the u.s. will continue the policy are of cheap credit and the price of the dollar will continue to go down of course of course and mr there should will continue these unless all other countries within g twenty i don't know how many countries should be but china of course or should be one of them they should press us administration just to agree upon sort of the rules of the game because you've missed off financially for the sector after every of those states tim geithner has signed this declaration or congress who was ignored divination there should be certain commitments on us as well but it starts to backfire i mean i mean more and more countries are starting to cut to country by larry will deals using other currencies then dollar avoiding dollars in these bilateral deals and that means that the u.s. is actually by its policy undermining the international position of the dollar as.
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i would say in its wishful thinking up to now approximately eighty percent or foreign she's transactions in international markets they have the u.s. dollar on the one side i would like i would like over the world to be more diversified about other fortunately it's not true russian finance minister couldn't is confident that the russian economy is not suffering from a currency war and here's a quote. from the internet remember there is not yet a currency war going on we are talking only about expectations that currency flows will become more powerful instrument for competition some day today the clearest examples are us. say in china the situation between them is unique but we can't say that there is a similar war in any other part of the world. russia's central bank has decided to loosen the rubles floating corridor recently would you say that it means that russia is somehow text is somehow influenced by this
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conflict by this conflict between the states and china no more i would know what is your i agree with alex equal visit russia you stay outside of this currency wars because share of manufactured products and russian experts is not to be a russia in north by division is chorus russia cannot benefit something in the world market because russia is the natural resources commodities that are not affected by the winter you were in charge russia has been very proud of its. corridor for the ruble now it's losing it well at least you know its laws and because there was a pressure on the current russian even those drawing or the speed of more than thirty percent year to year while it's pretty stable and it of course grades pressure all the bells of payments and so starts started to sell their fortunes reserves what you did mean the loosening of the corridor will ruble start falling or rather rising over stillness a little will be for fall and will be falling in the not fast not continuously but
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their general plan for the coming years he's a loser. so what should be my preference in the currency when my salary here is in rubles so there will be following your say so what should i do what should i buy there lose pounds easy and low lying i'm going to first of all you should not change your strategic everybody if you talk about savings if you talk about savings decide what is what is the purpose of your savings in just ordinary expenditures then the problems because you live in russia and you need rules for current expenditures if you plan to why i don't know how. does your how do you have that they will roubles. starts following people say what should i do what should i do any one once again it's not a continuous process and that doesn't mean that will we lose i don't want to do three five kopeks every day one datable may lose another will may gain well let's see which currency do russians trust the most spotlights. on the other has tried
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to fight that. how they're all in the global financial crisis many experts have been changing their mind about the world's leading currency some even said that gold might become one today i'll try to find out which currency did people in this country trust the most euro dollar yen. i trust the russian ruble because i live in this country you trust because it is a united european currency and i think it is more stable than others i do trust i think that there's an opportunity for growth in russia. i think that the demand for that currency will be strong as the country continues but i was a trustee in the most because japan has the strongest economy there is nothing better than the un. i trust the russian ruble the mongst i think the dar the currency is a very shaky russia is the wealthiest country and that's the reason why i trust the
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rubles because i live in russia and i think that our currency is very reliable and trustworthy. so do you think this trust in the ruble is justified yes yes i think that in any country of the world you should assume because that is the country where you live and that's equal in the me where you. can and the wealthy you are benefiting so national you should be proud of it but a woolly are the russians a you just mentioned why the russian soap's s. by trying to analyze what is their best stay current see for their savings it's not because any other country in the world i think. we. we together we remember the soviet union we remember empty shelves in the shops and we remember the total cost not media by any you know years and after after the war the remember the fires devaluation over there over the beginning of the ninety's in ninety eight and of poland they saw russian russian ruble has no long history of ever really it's like
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i remember he had barely read paul who had their savings in dollars they they managed to save something at least they may look here in wales as well because eve your family says dollars let's say somewhere in two thousand and three by two thousand and eight you have lost approximately twenty percent ok now listen in two thousand and ten according to the press russia's exports slow down while the imports keep on rising and they still keep rising is that a sign that the ruble is too expensive from the point of view of russian producers that this is one of the explanations of these folks yes because russian russian produces they should compete not in international markets but in domestic market with chinese products for example and i'm with a lot of companies of from oil industry for example gas industry who said ok it's cheaper for us to buy chinese products rather than russian because they're cheaper chinese ear and visa impaired to you door and that's why the prices are stable while believes it was appreciate and seen since march of two thousand and nine ok
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now if currencies will be devalued eighteen years and there including the ruble going to go down maybe slightly but it will what's going to go up. the paper shares are straw men you know i guess i don't i think i think if all causes will go down that means that all the world will be in high inflation high for years and that will dear the best and there are for a new one i believe that it's in the more dangerous situation of this why ministers of one is try to avoid this situation because if any counties depreciate hundred. that music have to adjust this in your local economy by high inflation. if this happens of course goods like gold gold will be for the best value he will come back to jersey source yeah if inflation is high please buy gold. you have no choice so but but many people say this is what soros has been driving at since he started
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this thing around gold yes yes yes yes but ok easy for if us is printing cash is the european central bank is printing gashes russian central bank printing gas like a certain port that's will grow in value and you should do find some limited products with a limited supply what kind of the world's have you guys built that one me you know do we get a lot of man like jury sardis is able to. cause no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and former russian deputy finance minister and that's it for now from all of us here spotlight we'll be back with more first time comments on what's going on outside russia so let's stay in r.t. and take it from like. i said.
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to russia would be so much brighter if you remove the sun from steve kruschen. stock totty dot com.
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the official. from the. video. and. the palm of your.
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wishes. you don't want to be german but want our benefits the harsh message from the politicians. country of. blown open the divisive debate on the sensitive topic. of saddam hussein's it. sees has been sentenced to death for persecuting islamic parties however some say the verdict is to distract from the exposé of secret american farms showing widespread killing and torture by the us regime which were placed on. the russian security services its international. terrorism in the north caucasus he said the monies have been behind a surge of recent terror attacks in the region. now debate with the gloves off
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peter lavelle asks his guests whether the concept of corruption is being used inappropriately in both rich and developing countries that's all and cross talk next right here on our. hello and welcome to cross talk i'm peter lavelle corruption in one form or another .


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