Figure of justice beside the supreme courts entrance. He says its the perfect symbol to celebrate the doors of justice opening for his friend, heidi joe castro al jazeera washington. Ah, im cyril, than you are had lines on al jazeera this hour. The lower house of russias parliament has approved moscows claimed annexation of 4 regions in ukraine. The laws formerly incorporate her san done yet clue hands, cons aboriginal regions into the russian federation. This following referendums in these areas, just over a week ago when moscow said people voted overwhelmingly to join the russian federation. Iran Supreme Leader has spoken for the 1st time since mass demonstrations spread across iran, ayatollah ali harmon, a says he feels heart broken by the death of master many. But he has criticized what he called planned protests. How many blames the us and israel for the biggest protests iran has witnessed in years 22 year old. I mean, he died after she was detained by the Morality Police for violating headscarf rules in if they charge that around, it is either this right has been planned. If the death of this young girl did not happen, they would have found another pretext to create chaos in the country and home the Country Security plan that i explicitly say was the us line, his regime at their mercenaries, like betray iranians, outside the country. On the killing of 2 palestinians during a raid by Israeli Forces his sparked outrage in the occupied west bank. 16 other palestinians were arrested overnight. Raids were carried out to be jealous own refugee camp north of ramallah. Israel says his soldiers opened fire after palestinians tried to ram them with their car. And the president of indonesia as arena football clubs says hes ready to take full responsibility. After 125 people were killed in a stamp deed falling a match on saturday. Indonesia, security minister says an independent team will investigate what happened and the British Government has made a dramatic, you turn on its mini budget that was announced just 10 days ago. Chancellor was the court thing is reversing. His proposed scrapping of the top rate of income tax inasmuch of billions of dollars of unfunded tax cuts sent Financial Markets into a spin the pound reaching record lows against the dollar. And those are headlines on al jazeera. The news continues right here. After counting the cost figured ah i, i hello, im rob madison. This is counting the cost on al jazeera, your weekly look at the world of business and economics this week. The u. K. Is governments introduced, big tax cuts to try to boost economic growth. But the International Monetary fund is wanting, the measures could stokes sawing inflation. So whats next for the british economy . Also this week, Central Banks around the world are raising Interest Rates. Theyre trying to attain inflation. But that could come at a high cost for the worlds economy plus from bollywood to normally would. Why 2 of the worlds biggest Film Industries are struggling with buttons prime ministers batting big on a fiscal policy that includes the biggest tax cuts in the u. K. In half, essentially, its all going to be funded by borrowing less trust is determined to plan is gonna kick start the british economy. But a critic say its a reckless gambled man. The plans seem to have back fired already. The pounds fallen to record lows. Financial markets have gone into turmoil in a re, a public criticism of a leading Global Economy. The International Monetary fund is wanting. The plan could increase and equality in the u. K. The i m f is urging the British Government to change its mind. The collapse in the pound has been followed by a surge in the u. K. Borrowing costs britains now paying more than the rates paid by european economies, which are heavily in deb such as italy and greece. The bank of england says it would buy government bonds in an emergency to halt a bond market crash. It has also signaled could raise Interest Rates in response to the slump and the value of the pound. Millions of british homeowners and i braced for big rises in mortgage payments. Me barkers been gauging public reaction to the new budget. A reports from the british time of graves end that is by any stretch of the imagination, a huge economic gamble on the one hand slashing peoples taxes on the other massively ramping up borrowing. But will it all mean . Most people hope that everybody in the United Kingdom will have a little bit more money in that pocket to spend on bolstering the economy. Or will it simply mean as the opposition maintain, that the rich will get much much richer . The plans include cutting, National InsuranceCorporation Tax a tax on buying property, spending tens of billions of dollars on showing up the Energy Sector so that peoples bills that go through the roof. And also controversially on lifting a cap on bank as bonuses. Im in the town of graves and about 30 kilometers or so from london, is neither particularly rich nor particularly deprive, but it could be doing much, much better as got a huge concentration of independent businesses. Many of these owners are looking for the economic space to breathe. Hopefully it will help because, you know, you were in difficult times at my mom every once in a being half we can put them on a just to, you know, pay the bills to fade on the table say. And he said, reaction raising shops like to mind, for example, an east is difficult, but if you look up then high street, you can see all the shops are slowly sand to go. And if we will go in there isnt anybody 30 little bits money that they can then go spend and big shops that theyre gonna make their money out of. And the banks even got money gone through the bank. Youre not gonna, theyre not gonna make money anyway. Alex, so youre saying that to the economy needs to be driven, not just from the top, but from the bottom and the middle to i think it is denisa, so sorry about my work up. The truth is that years of austerity the pandemic. And now of course, the highest inflation in 40 years and most certainly the highest amongst g 7 countries. Mean people are very, very reluctant to part with their cash. Battling this economic downturn for the government will most certainly be an uphill struggle in the months and years to come or to discuss all of this, im joined from london by office sterling, the Research Director and chief economist at new economics foundation. Think tank off. Thank you. Very much indeed for being with us within a few hours of this policy being revealed, it was already being criticized by investors. The list appears to be getting longer. Is this likely to work how much like gamble is this particularly financially for those truss . Well, i think the unfortunate thing here and actually ive been guilty of this myself in the past, is that this really isnt a gamble in so far as we actually know how this is going to turn out, that there were warnings before the budget that this would cause you know, or uncertainty at best in market because when you announced billions of pounds a government spending, but the not a company that even with an Economic Forecast or a plan of how to pay for it. The market start to wonder, are you credible . And that was predictable, and we are seeing that play out. But actually probably an even deeper level. This isnt a gamble because the u. K. A spent 10 years now the best part of a decade. Certainly prior to coven 19 doing exactly the same thing. You know, cutting taxes for business is a private individuals taken away the benefits, the richest, fastest net one out than everyone else. And because weve been doing that for decade, we know how it ends and ends in stagnant earnings growth. The u. K. Still got lower average re learnings done it had in 2008. It ends in crumbling public services. You know, we have grossly under resource education hospitals. People, i have to wait hours for an ambulance, they have to wait potentially weeks for g. P appointment. And ends in stagnant Life Expectancy there, there has been this very blunt warning thats come from the i m f in using language that it usually only uses for emerging markets as an indication of just how concerned the i m f is about this. Yeah, i mean, you know, im not to reach the point of view on these things, but it is striking that theyve chosen to comment on the u. K. Economy in this way. And its just another indicator that the u. S. Bending acquired rapid pace, its institutional and political credibility. And you know, you see that now with government ministers coming out and talking about government ministers and Government Supporters and government outright is coming out and talking about it financial institution. Beyond that, now the left wing economic bastions. When, of course it was quite the opposite. A few years ago. Theres almost now, no one left. The government hasnt accused of being left way. I think the only thought of the homes that credibility, you can govern whos got to borrow billions of dollars in order to be able to pay for this. Its openly admitted that how difficult is it going to be able to talk to the funders . What kind of structure could it possibly use that is going to allow for the tax cuts and other elements of this policy . Because its not just about tax cuts, thats going to make this work. Well actually entry point to government is desperate, of course not to borrow in dollars. So you can describe the amount of, or in one of the currency. We like to be very keen to make sure the borrowing is issued in pounds and captain pounds as much as possible because that means they can keep control to some extent of the economic effects. But in essence, boring like this has to be painful in one of 3 ways. You can either leave that as an increase in depth and work to make sure that pilot, that full time gradually as a portion of the overall economy. And you can raise taxes to pay debt or to speed up the process by which fools relative to the economy, or you can do the same in terms of cutting public spending. Govern has to do one of those 3 things. And it looked like at the moment, the 1st of those, letting it to full naturally is it is increasingly problematic, specially well as my forecast, governments dont leave attorney while markets dont believe that a viable plan. So that does then leave us the remaining to discover certainty. Its about to raise taxes. In fact, you know, the whole point of this budget was to cut taxes. So you are left with a final possibility which is a cut in public services, and the government has already told department to prepare for efficiency savings. Now the extent to its possible the political economics is its hard to tell you, take a decade of cut public spending. It looks at this government is about to test. So the i m f is warning against it. Were seeing an increasingly long list of investors who are very cautious about this. Even the bank of england says its going to have to step in, in order to try to fossil if you like, some of it. Why say, describe it the excesses the way that this is going to pan out . Is this policy actually going to be able to be put in place when there is so much negativity against it . And there are so Many Organizations who are prepared to work against it. I think the government is, is struggling toward coming up against that pressure in the end, its political pressure that will shape this. There is no sort of constitutional mechanism to prevent electric government from doing what it wants to do, of them losing Political Support and wants to see that plan. But i think its quite important to just reflect on the reason why is different institutions, both both in the u. K on abroad are worried about this. And its quite remarkable because in many, in terms of the economics, if you cut taxes, that is, that is refinery. That means it should increase inflation because increases money in spending in the economy. That tends to mean Interest Rates can rise, which should actually mean that the pound get stronger. What weve actually seen is the pound crashing as a result of this is the inverse of what the object should kelly. And the reason for that is because the u. K. Is paying a premium if you like for competency and competency premium when market dont buy literally, the idea of these tax cuts are going to lead to higher growth in g d p. And therefore, theyre selling pounds not buying pounds, and you pay investors are investing abroad not at home, leading to class in the currency. You mentioned that the government was determined to keep the borrowing in pounds. But what is the risk . Do you think that whatever future economically the britain is facing, could spill over into all the markets around the world . What kind of influence do you think that could have is having an effect already . Weve seen that over a fax and bond market outside the u. K. Most notably in the u. S. So its, it, it is certainly a bad thing, the Global Economy and it will become a drag on the Global Economy, the worse it gets. But it is certainly not a crisis, a Global Economy in the way that it is a crisis locally in the u. K. And for our neighbors, asi selling, thank you very much. Indeed for being with us. Many facts, ah, the u. K is new fiscal policy comes as Central Banks around the world, a shop the increasing Interest Rates to curb inflation from washington to jakarta. And nearly every major bank is making borrowing more expensive to try to cool down prices. The most widespread tightening Monetary Policy on record is raising fears about possible harm to the Global Economy. The u. S. Federal reserve has been by far the most significant player in this shifting Global Economic policy making. Its raised its Interest Rate by 3 quarters of a point for the 3rd time last week, and signaling the more large rate hikes are to come. The european Central Banks expected to continue increasing rates in october fe cb is now seen taking its own Interest Rate to almost 3 percent next year from 0. 75 percent. Now, the Swiss National bank carried out the biggest height ever to its key lending rate. Ending several years of negative Interest Rates in switzerland, indonesia, taiwan, the philippines and the south africa are also among the countries where rates have been lifted. But unlike the rest of the world, china has cut Interest Rates twice this year. Inflation in the country is far lower than in the u. S. And other countries, all the dollars surged to a new to decade high after the Federal Reserve raised Interest Rates last week. Its mainly against europes single currency, the euro, which fall below polity with the green back for the 1st time since 20 o 2, the dollar is up more than 19 percent against a basket of foreign currencies. Japans the latest to have taken direct action in Foreign Exchange markets to show up currencies. Well, joining me not from boston, massachusetts is james mccann. James is deputy chief economist at aberdeen standard investments. Faith good to have you with us now. Central banks around the world. The use Interest Rates regular to control inflation, but its unusual to see them doing it almost in synchronization. How do you think this is going to play out . Well, i think it just creates more headwinds to the Global Economy. I think when you have this coordinated or perhaps not, or they spindly, synchronize tightening policy, i think you get ripple effects that the not just through for individual economies, but 3 more broadly. You know, i think absolutely. Thats why were expecting growth to slow very significant to 2023. Because i think some of these tightening cycles are seeing places like the u. S. In europe, a range of emerging markets to as they try to match what theyre seeing in developed market financial conditions. And i think those are already so the a headwinds, global growth. And i think the riskier aggregate even more so. And if i understand correctly, one of the things that the Central Banks are constantly working against is time scale. Because although they make these announcements, they actual bad the trickle down effect, if you like, all of the kind of tightening and controls that they put in place isnt really seen for months. And yet of course, theyre trying to deal with an inflationary situation, which is a media and what kind of problems does that cause . I mean its, its extraordinarily difficult to Central Banks, especially when the, all, in a long way behind the curve. And they feel that they need to go really quickly in the summer urgency behind this tightening. So they need to just straits rapidly. That difficulty, as youve mentioned, theyre not going to see the full effect of that for a long period of time, potentially 6 to 12 to 18 months. And so in some ways that flying blind, they can look at leading indicators of activity, especially an Interest Rate sensitive sexes like the housing market, like turbo goods, etc. But the difficulty really isnt for bankers, they know they need to get a policy type. And they know they need to slow the economy, but they dont really know in real time when that happens. So i think the risk for them is that they deliver a degree o