tv [untitled] October 5, 2011 10:31pm-11:01pm EDT
talks between the country's warring factions. damascus would support one side over the other would lead to a wider conflict footage has now emerged showing some apparently pro democracy demonstrators armed and didn't gauged in fighting with government troops. global financial instability seems to have reached critical levels with thousands of people protesting in the us speaks to political analyst william engdahl to answer the question who is to blame.
hello again on the welcome to spotlight the interview show on our t.v. time out there now and today my guests on the program. global markets are depressed by the fear of recession which but very weak and economists proud the bank real americans are protesting against the policies of the wall street sharks and while some economists are looking for a financial plane others are digging deeper into the reason to feel or so who is to blame and eventually what's there to do to get back on track to answer this eternal russian question political analyst and author of a book called the money. most of the economists see the reason of the current crisis is purely financial but really and also as the evil lies deeper the argues the global fiscal system based on the influence of the dollar is to blame on the dollar he says his power concentrated in the hands of
a tiny elite. this power is hard to overthrow as it is protected by the american military. and welcome to the show. thank you thank you very much for being with us well first of all the world financial center wall street is in the grips of mass protests which are called occupy the wall street i mean this is this is the motto of the protesters do you think they will they will influence. financial policy or american government can afford to to ignore these protests but i don't think they will influence the obama financial policy the obama financial policy has been drafted by wall street. his cabinet is all his key financial advisors are hand-picked either by citi group or goldman sachs more so even than the bush administration so it's a wall street presidency from start to finish. but after the collapse of the soviet
union which we both witnessed the us conservatives thrived strategists and they they dreamed of the twenty first century being the century of american dominance of the american century but a your recent book is titled gobs of money wall street and the death of the american century so can we say that the dream didn't come true and it's not coming true well it's. the voters still out when i say the death of the american century i refer to the phrase used by henry luce in one thousand nine hundred eighty one in an editorial in life magazine where he proclaimed the american century at the time hitler was proclaiming the german thousand year reich. they were a little bit more modest perhaps but the idea of this system that was set up in one thousand nine hundred four with bretton woods the i.m.f. the world bank and so forth as the projection of american power that is what began
to come to an end in two thousand and seven two thousand and eight with the financial crisis and. you say in the book that we are in the midst of an apocalyptic tonic shift meaning the shift of power from from from the west to the east. am i right that our people are right to interpret it as china do you mean china i don't know i said this earlier today in a presentation at moscow state university the shift is toward the east but you regime as a totality china alone is not capable of being a counterweight to american superpower germany or dominance of. russia alone is not capable certainly economically and otherwise. be a. or wait the combination of all your asian nations working in cooperation economically and otherwise is the one possibility that could be easy here including
the e.u. perhaps country by country i think he was an entity is a dysfunctional entity and country by country certainly germany italy perhaps france or so it means the whole world against america is that what you mean big chunk of the well america's capability to preserve its leading role in the global economy has recently been questioned and one of the questioning was in the media spotlight. kenya rates a quarter of the world's g.d.p. and is home to was third of the world's millionaires for decades the united states has enjoyed the status of the largest economy in the world the image of the superpower has been marred by this year's debt ceiling crisis the danger of a technical default and the country's economy having been downgraded by a ratings agency meanwhile the world's manufacturer and the u.s. his biggest creditor continues. konami. chain are supposed chip
bend to become the second largest economy this year and this chase in the us forced a few analysts predict the u. line could overtake the dollar as the principal reserve currency and china could become the world's largest economy with decade others say it would take much longer while the u.s. criticizes china for keeping its currency artificially low to make its cheap goods more competitive in world markets they didn't state control works in china's economy has been growing at nine percent a year unsatisfied by the status of the world's manufacturing china has been developing its in the vein of capability throughout the last decade the effort has already borne fruit. in a year when the u.s. has wound down its space shuttle fleet china has put its first research more into orbit and plans to eventually construct a food for aged between platform the launch has been described this chain is new
milestone on its road to what superpower status. our reporter seems to be more impressed by the chinese miracle than you are so there's it makes sense what we've just heard well the chinese economy is a highly impressive thing i've been there five times in the last three years and traveled extensively across china it's astonishing what they've accomplished in the thirty years it's incapable of challenging the u.s. might well simply because its military capacity is incapable of challenging the u.s. might that's that's the key economically they're quite strong the vulnerability the achilles' heel is their energy import dependency on oil and natural gas and that the u.s. knows why do you need military capacity to challenge that country. canonically well because they're up against a superpower which is spending more on its annual military outlays than the next fifty two nations in the world combined and there's
a reason that all these american bases are being set up in afghanistan and iraq in countries throughout the middle east and now in probably in libya still you think that that the transition power i think power at from the united states to what we call the rest of the world has started how long will it take. no one can say whether the american elite will will stop their denial of the loss of erosion of their power as the british elite it took them two world wars to admit it finally between nine hundred fourteen and forty five zero is the first step to acceptance finally like ok except fairly soon because it's it's bad for the united states and it's certainly bad for the rest of the world the policy of full spectrum dominance and. and being the sole superpower it's just disproportionate but maybe this shift of power well let's suppose it happens maybe the shift of power to the east led by
bye bye bye here asian and chinese economies doesn't mean there's that mean. threats to democracies well why because when we say democracy when people in the state say democracies they meet america and the anglo-saxon oriented countries. you know this word democracy is a word that gets sore on iran very lightly by people governments who. don't really have much concern for it. i think it's a loaded word i would rather. directed toward the concept of representative government was some kind of checks and balances on power and the influence of private lobby groups in the united states congress and in the election of presidents is such today that you can't speak of a democracy you can speak of. such a concentration of private power that the president has bought as actually a special interest will the east soon done in the world of east and mineta world economy. will it be less comfortable for europeans for people used to the the
order that we have now i don't think it is i don't think you need be less comfortable it could even be much more comfortable simply because. china india russia eastern europe and central asia require the kinds of goods and manufacturing products that the european union countries especially germany still manufacture united states doesn't manufacture anymore. we've outsourced everything over the past thirty years and now it's been manufactured in other places we have been reading in the news that u.s. senate leaders are considering legislation that would that would threaten sanctions against china if it if it does. something currency manipulation and do you think this is a measure that may help revive u.s. economy that will help at all not at all know the u.s. economy is a basket case economy right now the official government data that's released every
every month by the labor department the commerce department has been faked essentially so systematically and so long that the real economy is running at a level of best estimates of economists friends of mine who monitor this of twenty to twenty three percent of the employable labor force so a twenty three percent unemployment is as levels of the great depression of the thirty's so so. the language x. of sanctions. he isn't some isn't a language understood by countries like china here you know it's saber rattling by by washington and they're dependent on china buying. more than two trillion dollars of u.s. government debt and the debt situation of the federal government this is different from the great depression because today the debt of the federal government is simply growing exponentially it's out of control this is the this is what makes them made me wonder by the way u.s.
and chinese economies are so into dependent they have become so into dependent over the last decades so how can they fight it all i mean they should be best for all the chinese i think are proceeding extremely cautiously they're not dumping their treasuries but what they are doing is diversifying they're focusing more on the regional asian markets currency stability with between its major asian trading partners i think the shanghai cooperation organization as c.e.o. with russia as as a key member of that is going to become more important in the future for china as a diversify their markets also in the last three years the chinese have gone more and more toward the european market and less. the u.s. says william and political analyst and author of a book called good spotlight who shook me right up to stay with that.
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corruption. san antonio ways. you can involve in a community where you have one large corporation controlling the daily newspaper radio stations television stations the cable outlet that you told me that that sounds like democracy in the public opinion versus f.c.c. broadcast blues marching. welcome back to the spotlight i'm often just to remind. my guest on the show today is william and down political analyst and author of a book called gods of money. you mentioned just a couple of minutes ago in the first part of this interview the united states keeping the u. i'm pretty loud enough to make
a price competitive do you think that a us. as one of the measures may may devalue the dollar in order to make its products more competitive because some people say it may be it may be a measure the n.s.a. never heard of the dollar if you look at it over the last several years has devalued quite dramatically. and what they're trying to do i think in washington is do a slow motion devaluation to make the repayment of american debt to foreign debt holders like china or japan to make it much more palatable for the u.s. . but the problem is lower dollar for boosting american exports nobody wants to buy detroit automobiles anymore if they're german or even chinese cars are better manufacturer than the the american car america doesn't produce things that the world wants to buy anymore they've outsourced that they've they've done that they've left the by and large left industry behind in the silicon
valley is an exception hollywood hollywood is you know hollywood is a huge expert after that ok so they can export double as many hollywood films ok now but. you say the process is the devaluating of down this is going on and it's done purpose you said but slowly what can it mean for the future of the dollar as a world where the reserve currency well this i think is the background to the situation between the euro in the dollar in the last two and a half years the in my view the greek crisis was. a ticking time bomb that was detonated precisely at the time the chinese government spoke of diversifying out of the. dollar into the ural the euro right now is the only potential contender for reserve currency status for the u.s. to the u.s. dollar and where that to happen that the u.s. loses reserve currency status that would mean that the u.s.
would lose one of the major pillars of wall street financial power worldwide and they would you levers major levers and also they wouldn't be able to finance their wars given the budget deficits are running. ironically the chinese with their investment in u.s. treasury debt and the japanese are financing wars against chinese national interest in afghanistan and iraq and now in libya so it's a very diabolical situation that wall street and the treasury of manufactured if they lose that they lose a huge one of the two major pillars of american post-war power when you mentioned challenges the u.s. will dominance you said it may be china only together with other countries and together with russia when you mentioned i mean you mentioned that there are that that china is very. it's scientists dependent on natural gas when it gets from russia so that do you mean
that in this new construction this new world situation russia will still be. a roll material producer and provide either for europe for china for whoever rules the world well i think for the near term there's nothing wrong with that and that's a very constructive thing that russia can use and the putin diplomacy in the past decade has used that quite skillfully to build economic bridges to germany and other european countries and that it was sensible for russia i think russia has something far greater to export once once its infrastructure is up to western european standards rail and. other infrastructure and that. it is the export of it's intellectual powers it has intellectual capital that's barely been tapped on the in the in the world in terms of science and engineering capabilities of its education system and that that is above world class that is beyond what american
universities are turning out but many people have asked many critics inside inside russia say that's russia's intellectual powers is that the russian but the heritage we got from the soviet union and i think it goes further back i mean i think the heritage goes back to the german classical education system of the nineteenth century the late nineteenth century which was very much the model that was used in czarist russia so but they've held on to it and during the soviet era. i know from russian friends of mine who are academics that that was the one area where you could excel is academically and not in a moneyed way the american system you excelled in money and that defines your value but i prefer the russian system frankly. you see the revolutions in north africa in your book as i quote careful strategy of controlling one of china's most strategically important oil and raw material so it isn't you just he just said
mention an interesting thing that china has actually been financing this thing but doesn't it sound sound like another conspiracy theory is it possible to control such massive protests that we've been seeing use over the arab spring it's well documented that this was coordinated an organized by a human rights n.g.o.s that are working very closely with u.s. state department hillary critic clinton hosted some of the leaders of the egyptian . protest movement the twitter folk and so forth they were trained by old poor which is financed by by the us historically in belgrade and then sent back to egypt to tunisia to these other countries in the case of libya it was a. pure military operation. u.s. intelligence pumped arms with the help of the french into the eastern opposition the so-called transitional national council the french brought them up to paris and offer them. deal on the on the oil revenues if they if they work with the french so
it was just a crass intervention from outside a lot of youthful protesters may have been naive enough to think that they this was real democracy that they were risking their lives for but it was a manipulated thing you know egypt is a good example nothing actually happened in the future just a group of generals moved mouton and then the other group move lower and that some of that flee the country and you know that's it yeah i mean nothing changed. ok now you mentioned the problems in the end european mentioned the european and the e.u. you know actually being and then tittie these problems inherent problems with the euro yeah as a as a major pain currency do you think it's also a conspiracy is this also also a result of a war of the us against the euro what with oh i think they want to fight sure i think there's a huge tug of war going on behind the scenes it's not a conspiracy theory it's actual coordinated action between the federal reserve the
credit rating agencies moody's standard and poor's the treasury treasury secretary tim geithner who's very close to wall street. and they were the ones who in two thousand and two actually showed the previous greek government how to hide their actual debt in order to get into the euro and have a bonanza in terms of your membership for greece and the greek economy. and they were the ones who pulled the plug on greece under the pump and came into office just at the time the dollar was under threat. the rating agencies downgraded the debt standard and poor's on the day that the european. union heads of state agreed to a print in principle to a greek bailout they downgraded greece three notches which is unprecedented for sovereign debt downgrade down to a level of junk and that meant that all pension funds around the world had to dump
greek government sovereign debt immediately by you know by rules and regulations and that triggered the crisis into a whole new dimension so just as the crisis was nearing a solution. the rating agency stepped in people who are conservative bankers who never think in terms of conspiracy told me in europe that this if there ever was doubt before they didn't have any doubt now so there's an interesting interview we're having here. as your answering my question i think about what you said previously i think coming out with me when new questions about about china financing were against itself well we remember that a war against afghanistan was actually the beginning of the end of the british empire once it was the beginning of the end of the rise of soviet empire and now america recently said we'll be there until victory so do you think this may be the beginning of the end do you think that the american budget will withstand this war
for a long time. well china i can tell you realizes that the presence in afghanistan has nothing to do with combating the taliban or certainly not with al-qaeda which some u.s. military officials questioned whether it even exists anymore. so the question is what does it have to do and in my view it has to do with a permanent us military base in directed at two major powers potential opponents one is china and the other is russia and for the first time the pentagon is able to position itself directly in the heart of central. against those two potential opponents of the future so i think that's what we're looking at and a victory is possible i think not absolutely not. do you welcome china's china's intention to bail out the e.u. problems problem economies. i think the chinese are talking about helping some of
the e.u. basket case economies like greece and portugal but how far they're willing to go and on what terms i think the chinese are very shrewd bargain when it comes to that and it remains to be seen how far that will go what about africa do you think the africans will welcome china replacing the anglo saxons as the patrons of the continent up until now it's been mixed but the chinese have done one thing that's extremely clever in terms of their african diplomacy since about two thousand and four two thousand and six and that is they've come in they've ignored the international monetary fund they've come in with soft loans they'd built schools hospitals highways dams and so forth across africa and they said our interest is quite simple we want long term secure raw materials oil gas minerals and the africans are quite happy to have that kind of arrangement the american approach was similar to the british kind of colonial looting of africa which the africans
certainly are not wanting to continue so this offers an entire new kind of economic diplomacy for africa thank you thank you very much for being with us and just to remind you that my guest on the show today was william and hal a political analyst and author of a book called gods of money that's worth an hour from all of us here if you want to have your sound spotlight grab someone in mind to think i mean to me in my next show just jump in the spotlight will be back with more face time comment on the what's going on in and outside russia until then stay on r.t. and take care thank you.
our top story at this hour police in new york reportedly make dozens of arrests and use that pepper spray as they try to stop anti wall street activists from storming barricades blocking them from the stock exchange the demonstrations have been peaceful but turned violent after midnight local time demonstrations are multiplying across the u.s. against the banks that are blamed for leading the country into financial crisis new york is currently hosting the largest rally involving trade unions and students. and now we are heading to our washington studio for a look at u.s. current affairs the all the other shows coming up next. lack of a loan or shall we get the real.