greece to hand over control of its fiscal budget as a condition for the next bailout package the further irony is that we've seen capitalism really be one of the topics one of the issues here at this davos questioning of capitalism in its current form is still serving the global and these western nations and i just heard david cameron in his remarks at davos asked about this and he said you know despite the problems i still believe that the capitalism in its current form and in western democracies is the best first serving freedom and democracy at the same time that we see not only technocrats managing it to push through very difficult budgetary reforms in italy in greece these are people that were not democratically elected now to go a step further we have germany wanting greece to hand over control over its budget entirely this sovereignty over its fiscal matters at the same time that the

backdrop where we're hearing that this is the best situation for democracy i spoke to the chief economic correspondent for the british newspaper the had to believe greece has already succumbed to the fold in reality. i don't think you have to be a whiz at math to figure out that it's not just the indebtedness of some countries but also the euro oh the common currency is a single currency for an area where some countries need a devaluation i don't know whether technically greece is going to be in default or not but if your read a thirty or forty cents in the euro your debt and the write down is going to something like that could be for you to say forty if you're lucky thirty if you're unlucky that it any rational sense is a country defaulting on its debts and whether technically that is or whether it take it seems to me to be not that relevant because once you've dealt with greece

ok you try and have to put a fireball behind that but people may say look if i'm not going to get my money back on greece why should i learn to portugal why should i lend to spain why should i lend to italy. from the u.k.'s independent newspaper spring to be a bit earlier on i just wanted to in about two hours from now the kaiser report taking a swipe at the politicians and bankers who are doing enough to reassure the markets and the people that recovery is just around the corner. the governor of the bank of england urged against despair because all crises come to an end eventually he says he looks pretty miserable doesn't think he's a dog like usually very telling people don't despair you don't look like you're about to top yourself you try and have a smile and butter like clown nose on really like a burning look out the clown those are always delivering that economic numbers moving kangas got that british guy in the bag have blitzed gym lark which is not

fooling anybody and of course the u.k. economy is contracting why because the debt in the banking sector continues to expand and nobody's doing anything about that mervyn king wake up. the ski slopes of sochi are in place for the next winter olympics now comes the test of course to make sure they meet world class standards the russian resorts facilities are hosting their first ski is an organizer is hope it's all downhill from here is our teased in this blog ski explains. it's slow and cooled in the caucasus mountains but it's the hardest time for ski for so many like this couple even promise for a superior for the season's grand opening in sochi you can see mrs now that. it's third it's knowing a month ago to know who wanted to write still barely know her. super

this is the rosa khutor brand new resort just off the black sea coast with a number plan to attract ski fans who might otherwise prefer a winter break in france or switzerland kilometers those tracks throws up that will be able to compete with many european resorts means six to ten thousand tourists will be able to ski here to show your work and seasonal warm weather left a few foreign destinations a little high and dry but then staff here it was i who got to became snowed under with work as skiers sort of new resorts just to look around you we can go for beautiful. believed and everyone enjoy a very positive feedback this morning yes that's true i'll do more for us but they're also photos biggest test is yet to come in february and march was just about spoiled two thousand and fourteen winter olympics it will mean two or just will be strictly on this but for now they're making the most of the snow the freedom and even the romance and the russian winter it's greener if there is snow

is too much but you said it was supposed to kiss my window leo so if you'll excuse me. like that dennis bork's keep sochi. the so i slopes may bring skiers together but our fluctuating weather of course continues to divide others in the international community lorie half of those people in new york they're willing to go to cool down global warming. today legislators are introducing more and more bills to help curb the effects of global warming what are you willing to do to help out this week let's talk about that would you be willing to blow dry your hair anymore yes that i'd be willing to that would you be willing to dry your clothes on the line and never use the drying machine i don't know about that though it's about it depends would you be willing to change your behavior like say i walk into any destination that's under two miles

instead of driving like what i'm doing today is a yes yeah yeah yeah absolutely absolutely the best idea i've heard so far but good what about showering for under a minute. i'm always. pretty much broke. dave's moaning about the current opposed to lose the clock on the marker or do you think most people are willing to change their daily behavior even though i'm a little proud to call it selfish you know they don't really care about the planet until until it affects them personally unfortunately that's the world we live in whether or not you're willing to change your energy consumption habits now the bottom line is you might just have to in the future if global warming continues to progress. twenty four hours when it's past my moscow time around the world in brief the supposed leader of the violent nigeria's limits. is threatening to kill more security personnel and kidnap their families in order according elsewhere cusins president

barack obama of waging war on islam a week ago the group killed more than one hundred eighty people during a bomb attack in one northern town. widely enforced wrote nigeria. police in selangor fired tear gas at demonstrators rally against the court's decision to allow their president to run for a third term testers then threw rocks. barricades and started fires the president's candidacy was in question because the constitution changed back in the year two thousand just after he took office to impose a two term limit. way believes the law doesn't apply though to him because he was elected before it came into effect. online at r.t. dot com we've got the world covered plus these stories too the to run a saurus the terrorizing the top this is what greets visitors or than a stray or natural history museum but some of the kids clearly want the history

a bit less believe it or less we've got a pretty story funny online. also. locked up and overlooked the american arrested for drink driving but then held in solitary confinement and denied doctors for two years without trial the stories about dot com as well. remember to follow some facebook to watch our stories and feed back to us what you think about the reminded two of our top stories with me kevin owen following in just a few minutes here on r.t. live from moscow.

well. science technology innovation all the rest of elements from around russia we've got the few jerks covered.

the. heat. the. wealthy brit. silence on. the. market finance scandal. find out what's really happening to the global economy

with max concert for a no holds barred look at the global financial headlines tune into cars a report on our t.v. . cameras. were shot four times in total in the air war as it were and. sort of the bullets are still in my body. and people should be allowed to defend themselves wherever they are guns in the hands of law abiding decent people are not a problem national rifle association person or group of basically retired military police love to shoot holes in her i'm sorry if you know that the bullet comes out here and this makes it go bang and what's in front of here is going to die and that's all the training you really really need raise your hand if you know something's been. ok place to live without one of the philadelphia lawyers or the

streets. you can live without a gun hopefully we will never have to use the weapons for self defense but we should be prepared for the full class including the teacher as a close. seventeen students and six am one of seven or so. this is ati from a. score top stories russia slams a new u.n. draft resolution on syria is unacceptable saying it's targeting regime change and paving the way for possible foreign intervention the arab league's also halting its observer mission in syria over the upsurge of violence that. protesters in poland vowed to continue fighting the international and piracy pact and the politicians who support the tourist trade agreement activists say it allows governments to

police the internet under the guise of protecting copyright. and yet another blow to the struggling eurozone as five nations credit scores get cut including spain and italy e.u. leaders and key finance experts are struggling to try to find a solution to the deepening debt crisis at the world economic forum. and up next it's back to davos too as those with their hands on the billions chew over how it's going to affect the rest of us it's artie's capital account on air after this very short break. well with the. technology innovation all these developments around russia we've got the future covered. good evening and welcome to capital account i'm lauren lyster here in beautiful snowy davos switzerland timothy geitner here today representing for the u.s.

say the euro zone is one of the biggest the rights to the u.s. economy is or is it the distraction that is saving the u.s. right now i'll tell you all about it coming up but first here's dimitri in washington. thanks lauren and staying with europe for a moment the negotiation between greece and its creditors seems to finally be on the verge of a resolution at least that's what you finance commissioner olli rehn thinks beyond just about to call should you deal or no he would stick to involvement between the greek government and the private creditor community. of the kind of deal greece is a deep depression consumers aren't spending and businesses are investing and that's not going to change the most this bad debt underwritten by greedy banks and taken on by generations of the crowds and politicians that take it off the backs of the greek people why should they could do to suffer while bankers like jamie dimon claim as you did in a recent interview from davos that

a greek default would have zero impact on the banking system and getting back to the u.s. g.d.p. numbers for the fourth quarter out of the mainstream financial press is reporting that a two point eight percent growth rate shows that we finally may be on the road towards recovery really if you take into account consumer price inflation and the fact that more than two thirds of the g.d.p. numbers reflects companies restocking their inventories the pictures look so rosy in fact it looks like a country on the verge of another recession speaking with prominent financial blogger. we get his take on this and other economic hocus pocus in a moment but for now let's get to the days capital account. well it's day three of davos and there are lots of headlines out about what

officials are and aren't saying regarding the eurozone and the global economic outlook but how many people there actually care about the agenda and what's missing from it while the host of capital account the lovely lauren lister is there to tell us all about so lauren i want to i want to start off right away well let's start off with with davos you've said that not many people really care about the agenda there it sounds like a typical convention atmosphere do you still feel that way. i feel that way more today because today was where we saw the big headlines come out about some of the remarks that were said that you already talked about your headlines about the euro zone about some of the solutions that are coming. so called optimism from some of these finance ministers and from all the i thought that this would be kind of a dominant agenda day based on what was on it and you know timothy geithner too spoke about the u.s. outlook but going around the conference center the congress center is what it's really called that's where you kind of you know see the forum that isn't on stage

that isn't in these sessions and that's where i talk to people and say you know what is the value of davos you know what do you think about the thing that happened today what's your take on the eurozone and the responses i get to meet three are about the euro zone. whatever and as far as why people are the same thing you know today i tracked down larry summers who did not want to talk to me and was looking over my shoulder and trying desperately to like talk to other people but he said he's never networking that you get to see all the people you want to in one day you would in one year and that is the value of davos is the same thing i heard from darrell issa who is a u.s. congressman who i asked about that he did say that this isn't a good thing i don't think he said that also it's one stop shopping for you know finding out where the global economy is going you know if you want to figure what's going on with greece you just hear what the people up there are saying which i think dimitri speaks a little to that a herd mentality we talk about because everybody out there is having a debate but they're debating from what then what feels like that same range of a stablish many viewpoints not

a lot of contrarians that i've heard at least and the way that a lot of our guests are so that's the concerning but it's the same thing c.e.o. saying they're here and the benefit is is the business you know i spoke to bill gross who has a new not the pimco bill gross but the c.e.o. of idea labs bill gross who has a new company said it's amazing you know he's telling pre-fab houses in india and he comes and he talks about it he has all of a sudden book buyers and hooks up with you know the u.n. and that is the dominant agenda from the perspective of all. i have on the sidelines warming asking people what they care about and sounds like me at a convention i don't go to any of the events but why but there are there are fish or agenda item was watching on t.v. dimitri what are but there's one official agenda item that they do want to bring it up it was in the briefing papers that you had and it shows what the top concerns are for the people at the conference this year there's the ones who tell you the events and top on the list is income inequality now this to me. on the rest and i would i would say venture to guess is that is that is

a possible greece say that social unrest is now a tail risk for the davos. i like that and maybe that is why it's on the agenda because they've seen the actual change that this kind of income inequality has created in some of these countries and they are spring for example and there's protests in western democracies so maybe they're concerned but do you have that chart that you showed me for viewers because read the title it says something like the risks and their likeliness and income inequality is top for two thousand and twelve is another ready here isn't don't we already have income inequality and i want to back up a little bit because you said that this reflects what everybody at the forum believes is the biggest risk but i'm not sure it does this is something that the world economic forum which is the organization that puts this on puts out with kind of their small group that's their risk assessment group of yes some risk us as there is that do this for their lives and their business. but that's just the world

economic forum that reflects what they've come out with is the rest and what i found is the world economic forum may have its agenda but so do all of the twenty six hundred other people that are here and those twenty six hundred other people their agendas aren't necessarily aligned with the world economic forum's agenda well i think it's also telling that they call it a risk it's not a concern like we need to help help solve the equality issues more of a risk and it's also funny that before the and before that with the exception of the of the right before it was asset price the leveraging and i don't know if they if that if that this social inequality just yet but but we'll see but when we spoke yesterday you told me that you spotted j.p. morgan c.e.o. jamie diamond with mysteriously walking around with a pair of running shoes he may have actually used those shoes to run to an interview with c. and b. c. that he did later and i want to play part of that interview for you right now and the e.c.b. to sell to euro thing is it was a significant thing that we took in my opinion took the major risk off the table which is that a bank level liquidity problem is now lauren you not talk talk about this before

and you and i both know that the l.t.r. was presented as a plan that would help governments by giving banks cheap loans so they could buy higher yielding government day all right but that money was just hoarded by the banks and went right back to the deposit facility so i'm shocked that jamie dimon is openly admitting that this plan was never to fund government to begin with it sounds like like the way they used tarp they said we're going to buy a liquid assets but they did a buying bank equity what do you think of this. why are you shocked dimitri you can lead a horse to water but you can't make him drink we see not time and time again with bad policies we know the drill jamie dimon has very much the banker perspective and i knew you were interested in this because you sent me this interview earlier and were really excited about it so i did a little bit more due diligence and i actually stumbled upon the chairman of society generale the french bank and so i was asking him about l.t.r. and he had a very similar response he said hey this of verted a credit crisis and

a liquidity crisis for banks and that's great so i doesn't sound like he was concerned at all about the countries and the funding of sovereign debt you know just because that was the intention of the people that created l.t.r. o. does that mean that that's in reality what banks are going to do or what they can force banks to do or even expect them to do so you know i'm hearing that same viewpoint from from other bankers about how that's very funny you know these guys always call it a liquidity crisis you can do that and you can have a liquidity crisis the last four years liquidity crisis is supposed to be short term if it's years it's a solvency crowd. there's no point but look at that in that same interview the other thing i want to bring up was that jamie dimon talked about zero risk to the banking system if a greek default were to happen now you said people aren't that concerned of these out so the conference the agenda yeah but the people outside the conference aren't that concerned about the europe of the euro zone but the people that you've spoken to are people that are interested in the official agenda are they concerned at all about about europe and the risks that are going on there and the fact that countries like greece are in a depression. ok let me touch on all the things that you just talked about are they

concerned that greece is in a depression not that people i've spoken to people are optimistic and kind of excited that there were there was a run up there today saying that greece is probably going to reach an agreement with its bondholders this week and you know that was a big headline we saw in the financial papers and that's also what the chairman of society general said you know there's some optimism as far as the depression scenario which is brought of brought on because of austerity and part no people are concerned about that we've heard people reiterate again and again in this conference that austerity is necessary for these countries in the euro zone and i think is really interesting to hear how timothy geithner played that one because he was asked about it today about the debate between stimulus and austerity and he was very careful in his answers because of course there's a little bit of a different perspective when he's talking about europe where he says austerity has to be part of the solution for some of these countries which is obviously not something that i don't think timothy geithner necessarily champion for the u.s.

where in the u.s. you see a lot of politicians calling for stimulus even though it's you know they're still talking about a problem with the economy and so it's you know different medicine for different people so he was careful about it so i think that content design gathering is austerity for greece good thing deal bondholders good thing also really interesting the vibe i'm getting from the people that i'm talking to is that people aren't as concerned about the euro zone because it's a lowering of the bar people are comparing this to normal times or to good times they're comparing it to the disaster of two thousand and eight and say compared to that you know this looks better this isn't so bad the chairman of the society general again to talk about that conversation he said you know things aren't as bad as they were looking two months ago so i think that's good you know people are looking at this short term and they're looking at it in comparison to two thousand and eight when things were horrible and it was the biggest disaster ever so that's against that backdrop it looks better so it's. a pretty good go grocery was that is the new normal and. you're going to. true and actually going to cover that later

with i guess my catalog but sticking with him because he is an american. azhar whatever you want to call these guys now is a cabinet member it's not a politician though and last time we had the g.o.p. debates another one and i know you couldn't see it but are people talking about politics there are they interested at all about american politics and what's going on today of opinions and i think. you know i think that people are quite happy that the eurozone crisis i mean i bear it from the american perspective are quite happy that the euro zone crisis is such a big headache because it distracts from the problems of the united states i haven't had the political discussion about the elections with a lot of people but i did talk to a couple of u.s. senators and i was asking them about ben bernanke is zero percent interest rates and why we have them if the economy is quote unquote improving which is something we talk a lot about and you know what they said they said you know we haven't because things aren't as good you know they're they need to get better and they agreed that

will corker agreed that i don't think chambliss really knew what i was talking about i don't want to presume but that was the oppression i got order on the other hand he said that yeah the fact that interest rates are zero he doesn't think the fed is putting in there to incentivize congress to not cut back on spending or to attack the debt but he said that he thinks that that is one of the reasons why he basically said if interest rates were higher congress would be more serious about tackling the problems because that would amount to a lot more money paid in interest on the u.s. debt so that was interesting and then i said well what about when that you know runs out or what about when something happens you know what he said he said the eurozone i think is saving the u.s. right now because the u.s. is not as bad so there is a demand for u.s. treasuries which is something that we've talked about he agreed and he admitted that so the eurozone crisis is the headache that you know is maybe saving the u.s. right now but it's interesting not the threat that timothy geithner says is the biggest threat to the u.s. economy that's funny well it's not surprising so they're not really concerned about

the economy anymore they're looking at or more from a perspective of financial markets what's happening euro u.s. dollar what's happening because of the credit markets the markets and things like that so lauren on a lighter note is there anything anything you've been up to the been doing ever spoken to go party with sean parker and he's he's the facebook one of the facebook founders are profound of their. to be here why do you ask this question is this fair to ask me about my after hours. activities at davos know i've been working very hard around the clock but people do know that part of that is you know going out to network and that sort of thing and no i wasn't shown parker's party but i did you know have some sightings last nights and jamie diamond schmoozing with chelsea clinton kind of stuff where you're better you're better personally and i think i think i would have been our partner and i but thank you so much that was host of capital account a lovely lauren listserver was missed profusely a couple of as i've said many times before you get

a great job dimitri. go ahead we'll speak with popular blogger investment advisor microblog to get his take on on the recent g.d.p. numbers of the u.s. as well as what he thinks of the muddle through scenario that we'll be hearing about we've been hearing about lately but first we're closing markets. well with. technology innovation all the developments around russia we've got the future covered.

welcome back we spent the first half of the show speaking with lauren about davos and what the people there are saying about the problems in europe but what about the united states well joining me to discuss this is mike shad lock investment advisor for sic a pacific capital and popular financial blogger otherwise known as mish so michelle let's let's get started right off the top with the recent g.d.p. numbers i want to bring up a chart for you that you had for your for your audience on your blog this morning you made the point that the g.d.p. number of two point eight is grossly misleading in that if you look at it in terms of real g.d.p. growth year year over.