you know what's really at stake here and u.s. president barack obama has been pushing in-sourcing with his jobs council just as a new report comes out showing at least one of the very corporations represented on that council are outsourcing more jobs and r. and d. to asia so what is the deal we're going to hash it out let's get to day's capital account. so greece faces get another very large this time around fourteen point five billion euro bond repayment on march twentieth the problem is greece can't afford to service this debt and has been desperately trying to forge some sort of agreement with its creditors that would allow further write downs and an extension of

repayment times so basically let me break this down the greek government is desperately trying to avoid default trying to negotiate with its creditors to seal a deal on debt relief that is going on right now that is the big news but what is really new here the seriousness of the situation in greece has been very clear or at least should have been very clear to everyone involved in these debt negotiations from the start so our european leaders just imposing a bankrupt ideology onto a bankrupt banking system playing the fiddle while the euro project burns at their feet well let's see what yanis varoufakis thinks he's professor of economics at the university of athens he's also author of this book you see there the global minute america the true origins of the financial crisis and the future of the world economy professor verify because it's so great to have you on the show especially on this big day for greece presumably so let's get right to this because it really

seems like greece is in default already it seems that the greek government is really just trying to renegotiate its debt in a rational way that would allow it to continue servicing its payments without going into a total depression it seems like creditors and like the troika investors are really tries at trying to squeeze blood out of iraq here what am i missing. make much of a bird that greece is going to hold. but the whole point of this negotiation is how to find the euphemism which allows you to claim that this is not the fault of this defaulting it may sound cold but this is the state of play. europe has decided to back in october in its wisdom to pose upon the banks

a massive pair that right now gone without since the banks are already being fed by the c b of the european taxpayer the mothers work to get it for this mess that the founders of them but the conundrum here is that. great and good european leaders decided that not only would they impose this haircut on the european banks but they will impose upon them. that that haircut should be voluntary so as to of birds the getting of the c.d.'s concerts that are floating around in the marketplace and that's a great point i want to get to those c.d.'s but i want to ask as you're saying basically they're they're playing at what sounds like a p.r. game here and we were back reporting on this when all this was happening when those voluntary haircuts were announced and we were going to one of the voluntary haircut come on who wants to take that what do you think greece should do at this point. it shouldn't be for the long time ago we should have before the two years ago. well

but the leave the never and what we should do we should call the bluff of the european union leadership and put an end to this vicious cycle of sucking feuds of lies of. and i think it's because what. it took the short term in the other we are going to impose a heck of the banks like stopping the city or something going so we're going to force the banks looks like that this is it want to do. but in doing so. in a burden plea idiotically let me put it partially they've created a new field of global hedge funds because hedge funds that they are that a little to sever the hope that we started but you get a government bent with a very clear start the gym in their mind they were going to say well you want us to be bought and they're going to and ball so the banks can agree to this haircut if you force them to but we're not banks we're hedge funds. and you're going to be

deemed the bonds of the just but just what thirty five cents to the dollar of the europe. or the one percent if you don't if you want to play ball and not to force this in the u.s. is to do that so this is what happens when you're trying to deny the island in the european leaders have been in gaza and another two years the goodness has become insolvent two years ago and so have many of the european banks instead of accepting this situation and dealing with europe is trying to deny that the and to keep finding excuses for not facing it and because you bring up the c.d.'s and we don't know what these negotiations that are going on now if now the credit default swaps would be triggered you're talking a bit about the c.d.'s the role it's played longer term how is speculation in the c.d.r. as markets how is that affecting negotiations now. immensely looking. hedge fund that has that owns a number of c.d.'s is which are going if they trigger they give them plenty of

money and at the same time this is what had fun and stood there. just going to government bonds in case they managed to convince the european union and the i.m.f. to deem those bonds to the full so as not have this the esas figure now these hedge funds are going to play this game between pushing for the fold or accepting a haircut but they will demand their by the flesh for it so europe has given the abundance of the. hedge fund industry as well as the star the gems that have been utilized as a result of the silliness of you to be. has fun so the driving seat of the moment even if the side of this deal is struck between the official sector the european union the member of the one hand and the bankers on the other that this is not

going to be the end of the story because even if this agreement is announced with good fun fair joy and round. those will not be learns that in the next few weeks there's going to be some very hefty bargaining between the hedge funds and the bars of be absolutely sure seems like getting you're saying greece to default in a long time ago greece is going to default you've actually said that the press takes for granted that a greek default would mean that greece accepts the euro so pray go clear it up for us in the press yanis why wouldn't it. we first the question is in the eurozone why would have come get out of the euro zone firstly who is going to push. people still know how will it be forced out of the euro what is the mechanism for doing that there's no legal mechanism it's a question of putting it to the vote amongst the rest of the eurozone that it may

be sixteen members saying ok let's have a vote let's get rid of these big guys they do that there's no legal mechanism of doing this so there is no maybe it is for getting rid of greece once pieces in the you thing stuck there for everyone and even greece wanted to get out firstly it would have to get out not only of the euro zone but the european union this is what clearly stated in that if you release them and that will be suicide the focus to do so greece wouldn't want to get out of the euro zone if they defaulted and the rest of the eurozone couldn't get rid of greece so what is let's talk about the good thing the equation between the before the next of the years and let me tell you what it is it's just an empty not credible threat on the part of the political. greece and outside of greece. it's a blackmail of the using against the greek people took two to have them accept the name irrational and then work up a wall so you are saying the greek people are blackmailed it's interesting you

bring that up because it struck me today i was very early listening to the world economic forum's press conference about davos which is next week and angela merkel is going to deliver the opening remarks so she's presumably i'm guessing going to talk about some of these solutions that european leaders have come up with for the crisis to a room of the heads of state of some of the wealthiest and most powerful business elite in the world in a place that is literally and metaphorically very far removed from the actual people that have been most impacted by the policies of european leaders who is it more important for angela merkel to convince that these solutions are solutions or are working those people in davos or the people all over europe who have been so impacted by austerity. neither members of parliament in berlin. this is mobilise is feeling cheer trembling and the carpet

being pulled from under her feet she's. one of the missions that is absolutely focused on the next few months next year or so leading to the general election germany she wants to preserve the coalition she's good she just she uses the german electorate the glue collective that of the divorce business men and women. against which the project i don't start with you for in meaning by one of the very. very interesting you know let's broaden this out to a little bit because on monday we had an italian columnist on the show who writes for a financial paper in italy and we were talking about the l.t.r. oh because it was one of the things that was supposed to alleviate problems for italy and first spain banks were extended cheap can to buy sovereign debt how is this working in your opinion because we've seen deposits at the e.c. be reach record highs. if

goat is going to go down in history. made of the bottle it has helped to some extent it is true that it alleviated the gray phase when it if you look at especially in spain and the summit then being shorter. bills in italy it herr. europe a little bit of a breathing space and you all have done because we're talking about how to do it in europe now being effectively minted and dumped by the e.c.b. and the best but since you spoke about it alone let me give you an example. of something that it's quite widely known now. banks like unicredit and the united bank integrated that non-human they did they were doing and now and by the e.c.b. two will collect a very large sum of money with which to purchase bonds in order to reduce the pressure on the value in that and in the process to benefit from the catheter

rate that is from the defense of the interstate that those banks would be basically for the money that they're being lent by the right. thinks that they're charging the italian debt right now that was a was what was that they were supposed to be doing so with this unit that another got in banks and some portuguese banks and some spain spanish banks something astonishing in the annals of financial history they've created their own bonds these should new private bonds of their own backs which of course nobody wants to buy because these banks are insolvent more or less so what they did was they went to the government of the technocrat with them wanting and they said prime minister we've got these bonds on our behalf so mr monti said yes. interestingly and bustling really so suddenly there had bones that will go by the guardian state

and then the dickless bones their own bones but bones bones. both of them of that with a c b and therefore borrowed from base to be using those bones that would go by the italian state in order to get their filthy hands on warm. meanwhile because of they've done a good at these of these bombs they die liam public that group. it's an absurd process that you just don't understand how it's any kind of sustainable solution with everything we're talking about so here's the question there really remains for us the honest which is this maybe european leaders maybe bank executives some of these that you're talking about need psychotherapy because it's more than a write down that's needed ok you said that european leaders are in denial and if they're in denial that's a long way away from acceptance there are about seven stages of grief if i'm correct and dials on one and acceptances all the way down on the other what do you think. this is why the excessive i have been complaining now for

a few days. but intensely in the last few days in favor of any media good fold and an end to the b. side of the decisions because this will be the slump that the. disability i was about to start ups. it would have been having very big and been there for two weeks silencing it was starting now a greek default would be. beneficial for europe as a whole it would be a wake up call it will be an opportunity for. all right littlejohn if you're oh it's really your audio is breaking out but what i'm hearing you say is that a greek default would be just a slap on the face that europe needs i appreciate you bringing us that analysis straight from athens greece we always appreciated that was author and professor yanis varoufakis. and still ahead it's been

a top story all over the wiki pedia blackout protesting against online piracy laws but how much of a protest is it when you can push a button for business as usual we'll give you our three cents but first a close in market numbers. you. well see british scientists. it's no time to. go to.

market why not. find out what's really happening to the global economy with much stronger no holds barred look at the global financial headlines tune in to conjure reports on our. all right at a time now for word of the day when we break down a financial term or concept for our very smart viewer but just perhaps not the financial expert and to the u.s. now today it is proprietary trading why well for one it was a center of a heated debate over regulation at a hearing on capitol hill this morning when as some of the headlines that came out of that regulators defend volcker rule ban on proprietary trade there it is right there and at the same time volcker rule shredded by republicans wrote another

headline if we could bring that up and it pointed out again that the volcker rule asked the government to distinguish between banned proprietary trading and legitimate market making so what does that mean exactly what is proprietary trading let's see the definition is here it is when a firm trades for directing instead of commission dollars essentially the firm has decided to profit from the market rather than from commissions from processing trades so a bank is betting for its own account as opposed to executing trades on behalf of its customers that's really did the distinction so why is banning banks the receive government backstops from trading their own account part. the volcker rule well it's supposed to realign risk at some of those too big to fail banks that were you know reasons for the financial crisis now the idea is banks have been using their taxpayer provided safety net of deposit insurance to make riskier bets the ban on

proprietary trading would allow banks still to continue short term trades for market making or for hedging but it's really that proprietary trading using its own money that is at stake here and it could put banks like goldman sachs and j.p. morgan chase at a competitive disadvantage of according to some which is why banks are complaining about this and the comptroller of currency john walsh at the hearing today said banks without u.s. operations could benefit because foreign jurisdictions have not adopted a similar ban now of course as i said big banks are worried about losing money they are lobbying against this according to the lobbyists three hundred fifty billion dollars for companies and investors is the claim of what they could lose that of the costs now this is obviously by some economists and analysts disputed but nonetheless banks are fighting through lobbyist against the proposal with of course a little help from their friends. close was your jamie dom and this is psychology

he talked about and i don't think it's the news every trader is going to need a shark. along. bring in the psychiatrists and lawyers because anyone watching this show is a little suspicious of anybody who's quoting jamie dimon as the expert on whether this regulation should be effective or not that was chairman of house financial services committee at the hearing today saying that now the volcker rule is part of dog frank regulation and it is supposed to be in place by july twenty first so we've already seen the comment period extended because of some of the lobbying and interest that we've talked about so we'll see where it goes but now you know what is at the center of this debate is proprietary trading.

all right let's end with some loose change we're going to give you are three cents on some of these stories coming out that affect the financial and business world as our producer is here to help me out so is shannon donahoe in the control room holding down the fort we start with some issues for the president of the united states so yesterday president obama met with his jobs council saying you know i'm really proud of the action we've taken on a majority of the council's recommendations on issues ranging from insourcing to clean energy and we've seen this push recently from obama's speeches about insourcing now of course the jobs commission is headed by g.e.'s jeff immelt the chair of g.e. now in the same breath literally yesterday report comes out the wall street journal reports on it today basically saying the national science board has reported the u.s. is rapidly losing high tech jobs as american companies expand r. and d.

labs in china and other places in asia companies such as three yam caterpillar and can you guess the other one named in the. report to me terry. g. . ok so come on is this another big loss for obama this is just ridiculous that people don't see through this how does anybody think that a council on jobs and competitiveness that is outsourcing is going to help obama's insourcing initiative i mean obama is a joke only taken seriously i don't think anyone i mean there are some people that are suckers i think obama seriously going to be one of those people i said i voted for obama to give money never again i'm not going to vote for mitt romney but i certainly will go for broke here but come on channing you don't think that there are people in all over america that when they see this report obama has a jobs council he's working on jobs on insourcing that they don't buy that he's actually doing something for jobs. i think some of them but others are a little more skeptical do you buy it i don't think he's doing anything all right

so ok we all agree one last for obama then we've got news that obama will accept the democratic nomination at the bank of america stadium and charlotte north carolina couldn't they have figured out a better place that doesn't have an optic that like literally says wall street owns washington i mean literally there is washington and wall street together in that shot i'm sure when i heard it was a competition between between bank of america stadium and citi field where the mets play in new york. yeah. the could be true for exactly this amount of point is the competition who is the bankers competing with each other for who's going to have more influence in obama's ear but the fact that the financial sector overwhelmingly supports it and i think they've given more money than mitt romney they've given more money to the ira way yeah i mean wall street owns the administration and the stadiums. even. delving in financial dirt so i mean even the firms that are supposed to be financial powerhouses in finance and for the national powerhouses to top it all off

let's just leave you with this story and nonprofit company in iran wants to send obama some gifts they want to send him miniature sized drones after asking iran to return the u.s. drone remember that crashed there now this area is i guess playing with his toy drones in the bathtub but this is actually the one place he is winning because obama does follow through when it comes to killing people drone attacks is about a civil liberties in the name of the war on terror so i mean this is you know so the laugh here like put it wasn't right bush certainly like laid out the carpet he did a lot he moved he created the structure the static energy to get the block moving but obama said no problem just go in killing people continue wars. the war in libya he loves you or no problem he enjoys it yeah i mean. that's the operative. platform but he's a big a warmonger and you can get i mean bush was worth of bush said he wanted to kill

people who love freedom and obama wins in the battle with the drones just not against wall street wall street is all powerful then our rights let's switch gears because there was a pizza place that opened in d.c. today and we thought that it was worth seeing what happened because fuel pizza said that they were going to give the first fifty customers free food for a year we figured times are really tough to be interesting to see what kind of a turnout this gets you can see the opening there we sent john called by our photographer out there to check it out he caught up with one lucky lady who is forty eight in line for free pizza and thought much like we a couple account did when we found out about the story watch i'm surprised i didn't see you know i thought about the homeless maybe you know actually be more homeless people out here trying to get the. that's exactly what i thought i thought there was going to be a long long lines of homeless people you know forty six million people are on food stamps a record number in this country not the case it turns out because only people have

learned to fend for themselves this point they don't want free food because i heard i heard most of the people that food i heard most people in these three want to starve for the pizza i've heard that they want to know what they're waistlines know was a good thing this is pure storage crap actually to be fair i did see a business insider article about food in homes could be very hard carbonneau get away but that's my point i've heard that the vast overwhelming majority of people in this year lock was intolerant so that might explain why they were there you go really quickly before we go this is a big day for blackouts over stop online piracy act those so-called laws really quickly we were looking at this morning was up at five am watching a press conference i was checking out google would get pedia i was tweeting about how the week of p.t.o. blackout was going on and what do you know someone tweets me saying there's a way around it you can just had escaped it to not have the blackout so whatever protest is that if you can just get around the black out there i think

a lot of the. you got her right here so i can say go go take it from me so just you're going to check it out you let us know what you think about a true protest that allows you to get around because that's all we have time for thanks for tuning in and i'm lauren lyster you can follow me on twitter at lauren lester give us feedback at youtube dot com slash capital account and come back tomorrow for another show.

one did it but some electronic spy rock found by the f.s.b. in moscow six years ago belonged to her majesty's secret service the u.k. you have vehemently denied involvement in the scandal till now. for tougher sanctions against the syrian regime they are in the pipeline and the arab league observer mission prepares its vital report on how to stop the deal we did we violate. federal mania gripped by mass protests as frustrated crowds demand an end to the government's austerity measures and corruption call for the president to go . join us for more on these stories and more at the top of the next hour but first from our washington studios artie's alone a show with more on the protest against a disputed internet anti-piracy bill stay with us.

welcome to the ilona show where we get the real headlines with none of them or see or can live out of washington d.c. now today is a day of protest against sopa and protect ip at we're going to give you a breakdown of who's taking part and how and we'll speak with alexis ohanian founder of reddit about whether online activism and the tech industry i can be able to beat the entertainment industry on this legislation then there's feverish debate amongst the left over president obama's record and his policies so well they still choose him in two thousand and twelve in order to keep republicans out of executive power or will the president find himself in trouble come november how sparks is going to be with us and then rolling stones michael hastings had the rare opportunity to sit down with wiki leaks founder julian assange for a.