really want a little screwy preferably if. it's much more. if you. are. but i was just there was that i want to before we get too far i want to still go back to i know you were talking earlier about the mossad and we thought last weekend in that investigation by n.b.c. news that revealed those killings of iranian nuclear scientists were carried out by israel's mossad along with the help of the iranian dissident group the emmy kay i want to play for a second something that mohammed lara johnny said he's a senior aide to iran's supreme leader ayatollah ali khamenei and i'll get your reaction what about it comes. close allies of both countries like you know very is involved in the tool used to cyclists. and i would assume has an obligation . to push not to do it.

like us the united nations with different reason. so what do you think about this he says that you know if the united states knows that israel is carrying this out they have an obligation to take action. oh they absolutely do i mean international law is clear us law is clear if you really should be cherishes if your own newsgroup is saying you really must start astonishing i've ordered. it is absolutely astonishing if the new york times challenge was right with. its. roots here are a little. in the use proxies in the over if you also use it to read through east and he just goes on oh it's

all right. we're out of time but i want to thank you so much out a lot of interesting things to talk about important also to give that different perspective than what we're seeing in a lot of the headlines in the mainstream media even one minute writer and host of the progressive radio news hour. but still had on our team ever wonder what it's like to use a bucket to bail water out of a sinking ship just ask great country is up to its ears in austerity measures and the people on board are so not happy about it i'll bring you the very latest next. r t is the state run english speaking russian channel it's kind of like. russia today has an extremely confrontational stance when it comes to us.

what drives the world the fear mongering used by politicians who made decisions to break through. who can you trust no one believes you. with global reach and where are we heading state controlled capitalism is called fashion's we nobody dares to ask we do our tea question more. well it was a make it or break it decision in greece earlier today a vote by the parliament there on whether to approve yet another round of austerity measures and therefore pave the way for euro zone finance ministers to move forward on a bailout plan for greece and the greek parliament did approve the austerity plan in a one hundred ninety nine to seventy four vote that included included in the plan fifteen thousand public sector job cuts the lowering of the minimum wage from seven

hundred fifty euros per month to six hundred euros per month also several other cuts in government spending wages and pensions and these are sure to have some major impacts on the people of greece but the decision was seen as a necessity for the country to avoid default on its debt of thousands in greece are fed up with what austerity measures have already done to their lives and their economy and they made sure that their anger was known. to police estimate tens of thousands of protesters turned up in the streets to protest a set more than forty build buildings on fire and even hurled rocks and fire bombs that police police in turn use tear gas and arrested several dozen people now in the conflict of the plan was seen as a major step in the right direction but the approval of a second aid package will not be decided at least until wednesday that's when finance ministers are scheduled to come together for

a meeting. now we have been following greece for so many months now and a lot of people will be watching what goes on there in the next few days to talk a little bit more about what of these what these few big decisions mean i spoke earlier to the capital account produce urge me to finesse i asked him what message the protestors are trying to send to the greek government and here is his take. i mean honestly i don't know i couldn't possibly hope to answer that i think that there's a lot of rage i think that's one of the things that is clear and you've seen i mean when i was there and also pictures from these protests where you see. again people of all different ages different demographics men women all people young people and they're just all incensed and enraged because you have these politicians in the middle of parliament who are doing. the bidding of their masters and what they want to do which is not what the people want you know so this wednesday from what i

understand there's a meeting from the earth and finance ministers going to be getting together and seeming that this bailout is approved. what do you think i mean is it one of those situations where it's going to get worse before it gets better or is this kind of the beginning of you know good things to come well they're in the fifth year it's the fifth year of a recession that's how they call it they're actually called a depression but that's where the person is if you're if years of recession no one knows when it's going to get better if i was speaking as some kind of financial analyst i would tell you no it won't get better until you default on the debt because investors won't commit the catching falling daggers and that's what if you're investing in a depressed environment where there is such a huge debt overhang and there is no end to when the economy can recover as far as interest payments things like that then you're not going to make an investment because the bottom isn't in that's what i would say so i think that there won't be a bottom until there is a larger resolution and that resolution i think it's where greek people mean when they say they're waiting for a bang they're going for the explosion whether that is in

a political assassination whether it's i mean and that's actually something that's very important because saturday on sunday a huge mass of people were gathered around a very wealthy area of athens around the former prime minister's home the prime minister from the ninety's there was screaming traitor and the only thing protecting him were the police force that were there that we could be for that reprieve the president of the republic the current president had his house throw molotov cocktails on his house clearly some tensions between. governments past and present and the people that are actually so imagine if you had been here in the united states some of the presidents window i forget was a few months ago and we tried to go down with the right few weeks or something i think it was less yeah it was even less of a tract invited me to leave a lot of talk about this to mean you have plenty of people on your show on the capital account who have varying opinions about what's being done in greece to deal with this nothing seems to be easy or pleasant in terms of this i interviewed peter stephan last hour he said you know what these cuts didn't even come close to going far enough the people of greece disagree they say their lives have been disrupted

so much and the thought of having even more compact. seems just unimaginable to them what are some of the people that you have on your show say in terms of what's been done over the last few months to deal with the current greek debt crisis well it's more complicated i mean what peter is correct in that greece suffers i don't think even knows how bad it is pretty separate from a humongous public sector that has been a drain on the economy because it's it's it's basically a piggy bank for politicians or for everyone else who all the way down the line and that's how it's been even since the time of the ottoman empire there's been this ingrained mentality and kind of this idea of patronage in the political system so it's not something new but it certainly was much worse for the hunter so greeks have been many greeks especially be in the private sector obviously been trying to change for a very long period of time however the way that these changes are being enacted now they're not productive it's one thing to cut the public sector and to reform the

government but that's not what's happening here what we're seeing here is just just slashing costs as much as possible with no real sense of of creating a sustainable economic environment or one of the biggest complaints from before in terms of you know how greece got here in the first place is a lot of people seem to think it was an option whether or not to fight to pay taxes will this change in the future i mean will there be a better regulatory system for those. kind of you know the wealthy or the one percent of every who got to avoid you know within a similar situation and what we see in other countries intense like the u.s. so greece that's another thing so again you this is a cultural social thing and it's very difficult to change it there's a huge problem first tax evasion but that's all the way down the line the system is structured so that in greece everything is illegal but everything's allowed. and you can go you know i had actually a friend here that i showed a picture of of a camping site no camping the sign said no camping it was full of camping you know

people camping so they just the way this is site has been organized for all this period of time so you can it's not as simple as people just invading taxes and that's the problem and again if you were paying taxes in greece that money would just come right through because the present government so it isn't that simple it's a culture that has had a very difficult time ruling itself a nation greece is not greece historically as a people very old as a nation state it's very new and it has kind of been pushed into these european model let's take it out of greece in terms of the dealings with the eurozone in the last several months how they're dealing with greece greece is. in the eyes of many the biggest problem but it's also the first problem we're starting to see major issues with countries like portugal and italy do you think this is going to be the model sort of the way things worked out west in terms of you know applying it to those other problem countries so we already have problems in those countries and yeah i agree i think so i think that if there is a commitment to take the bondholders who made bad deals then the business of

a bank is to do due diligence their job is to lend money that's their business and they take the gains and they also take losses and they have to accept their loss of they're not willing to accept their losses and this is this is the medicine they they want to put on the counter then you can expect to see that from portugal in other places all right and of course we know that you'll be keeping an eye on it for us and helping us kind of break down what it all means capital account producer to meet your finance thanks so much. and be sure to turn in for the big picture it is coming up in just a half hour now president obama unveiled his twenty thirteen budget plan today that includes significant new investments in roads and infrastructure education and the manufacturing sector but this plan that might be dead before the ink is even dry tonight host tom hartman the last in your analyst with the green press council knocks chronicle what this means for america's national economy. but for us here that's going to do it for more on the stories we covered you should go to our team dot com slash usa or check out our youtube page it's youtube dot com slash r t

america and that's what i'm doing when i'm not reporting or sitting here on the anchor desk you can follow me on twitter at christine for is out for now i hope you have a great night. wasn't so much larger for the love the look. of the city before the ocean beach of all security the sloshing of luxury to the streets the bankers they generate jobs and returns. to. lead up. to these are the images the world. can best serve. the fortunes around.

download the official policy allocation your i phone the i pod touch from the queues up still. like on the go live. under. the keys my old. presence feeds now in the palm of your. lips to. keep the. lead.

the way hello and welcome across time people about these hard times there's no shortage of austerity came a slashing of the budgets and the shrinking of the welfare state generate jobs and returns to prosperity and is the pursuit of posterity and caring in the democratic . process sturdy measures around the world i'm joined by people now bring in london she is president and founder of pensacola's asset management also in london we have fred kids close the loop a is he is a senior lecturer in international business at the university of kent and in new york we cross to dimitri poppy dimitrios he's the executive vice president of bard college cry folks this is in effect that means you can jump in anytime you want to meet if i go to you first in new york can austerity bring back prosperity because

we have unemployment is right crease particularly in the euro zone and the prospects for employment are pretty bleak how can you have prosperity when there's so much unemployment and people would say austerity creates unemployment because of the loss of jobs in the public sector. blindness stary the. good. climbing moment already climbing economy is not the right medicine clearly perspective can only come when there is an increase in demand an increase in demand if it doesn't come from the private sector you need to come from the applied public sector so therefore when one talks about you want to not be as general and suggested we can bring prosperity clearly an unemployment rate of over eight point three percent as it is in the united states cannot happen by itself on the private market unless the forecasts sharyn but the economy actually will

grow but the girl doesn't come automatically and we have seen that in europe as well where there would be in the southern tier southern economies in europe or even in some of the northern economist france and germany he's actually experiencing some decline in trends ok people what do you think about that i mean i mean we see our sturdy it with with a vengeance in europe and we even go to southern europe my all the way up to germany the french are be experiencing it as well how can what is this the right formula and dimitri says it's not right for me and to bring us back to prosperity because a lot more and more people are just being a misery. yeah well i think look the bottom line is it's really interesting people don't agree to us territory or comply with us terry if things are getting better you kind of need to be in bad times to get people to understand how serious a debt problem is and that it needs to be addressed i mean nobody was interested in

addressing the debt problem during the boom it's only during the bust the people start to understand why but it is true that austerity doesn't alone create price prosperity what does create prosperity are small entrepreneurs and this is really important two thirds of the net new jobs in all industrialized economies are created by companies that employ less than fifty people now when government is shrinking this actually does create some opportunities for the private sector and new york city recently announced that they can't afford to keep the public buildings clean anymore so they privatized the contracts so some private company got a five million dollar contract i'm all for that but it doesn't create prosperity overnight no and doesn't create prosperity by itself definitely not it's what creates it is innovation and change but the fact is that when you have spent and you earn you can't make your way back to prosperity until you fix your debt problem that's one

of the reasons we can't fix the debt problem by adding more debt to it it just pushes the problem into the future so it's not the key to growth that doesn't make growth happen but you also can't have sustainable growth if you don't do it ok if a sailing break is close what do you think about it what is to formulate and where disaster you play in all of this here dimitri things we're doing at the wrong time it's very very interesting observation what do you think. well i think i think both speakers hearts some points were very very important yes dimitri made the point about growth and obviously we need to always remember that that is not just an absolute number is basically as a proportion of the gross national product of its country and then i think people mention one word which is really really crucial which is innovation i think what we're seeing though at the moment and the main problem that we're seeing at the moment is the austerity is not equally distributed amongst the different parts of the population so effectively you get some people paying more than others without

necessarily deserving than and the other thing is you you you apply austerity always on telly and this is going back to what people said about innovation in appliance territories on telly you achieve nothing in the government we still need to build infrastructure the government will still need to educate people because that's that's the basic role of the government and this is how the through the upgrade of human capital you can actually create people that small and medium enterprises can then employ and innovate and create new knowledge and take the economy forward so i think the problem is not as simple as you know we need to spend more money or we need to. allow small in these small or medium enterprises to to grow i think what we like ing at the moment he's two things this fair distribution of austerity measures that's one and the second thing is this strategy direction which i don't see happening anywhere in the world at the moment we're all talking about cuts which is fine yes we need to send all governments need to send

a signal to the different markets financial markets primarily who look like they don't need the world at the moment but on the other hand you need to think how you spend your money in a more effective in more efficient way and where you spend your money is the key question that we need to address i think that's a key question we know about it dimitri that's a pay you think ok people go ahead that's a political decision that's very interesting it's a political decision not necessarily for the common sense go ahead. but that is the point that all these decisions are getting rid of and that's why i want to follow on from a comment to say look austerity is one way and which a state defaults and the real issue here is the burden of debt is so we norma's the human beings can't bear the pain of paying it off so what are the ways in which a default can occur well you can do the argentine style we'll just never pay back then you don't have to do us terribly or you can do it the greeks are doing which is well we'll pay you back but a little later and a little less that's the haircut option we're going to see a lot of that in europe the third is austerity the state thought so new the citizen

makes you pay more taxes makes you work harder makes you retire later all that stuff doesn't pick up your rubbish anymore the fourth option is inflation and that's what the u.k. is doing and i would argue that's how the u.s. is going to vote on its debt ultimately and then the last option is devaluation which you may or may not be able to do depending on the situation but the point is a spirit is only one way of achieving a default and so it is correct you have to think where does the burden of pain fall on the citizens depending on each of these choices and that is a political decision i mean if you want to jump in there go ahead. but you know yes i think or stated these are very loaded word and i think it's very difficult for us to get through i mean how do we define those thirteen clearly horizontal is third is not the appropriate measure to apply it one has to determine why is it that we were brought to the position to apply those stereotypes you know it was stated in

the united states is different than was stated in greece a true greece does not have its own currency probably its being the united states it has its own its own currency so there is one k.'s to be made greece could default the united states cannot be sold so there is a difference between between those two also when you are allowed between crees and we have to. find actually why and how do you deal with koreans it's not easy to suggest that somehow or other since all the countries in the euro zone who are allowed to borrow the banks were allowed to borrow at the very low interest rates and pile out. on government debt which was very little bit higher so they can make their profits this is not all to return now to say well we allowed this to happen but now it's time that the party's over and therefore the population has to

pay for ok do it or a clearly a very significant matter london frankly because i think what's really interesting here is that the greek situation opposed it was like going on in the united states is it big greeks have just lost their sovereignty i mean like it or not it's berlin in frankfurt and brussels they're vanishing their economy and they're in there this is something that's really you know a stark departure from what people called the european union is supposed to be about go ahead the the problem the problem is that germany and france are not managing the greek economy are just managing the big bed and over the last over the last couple of days i haven't heard anything about how we can return the economy to growth we're still looking at very some very deep recession figures for the greek economy for the rest of the year last night the indication was that the economy will sink another five percent until the end of this year and someone made the scenario about that if anything goes in twenty thirteen which i don't necessarily see happening and the just thing the geisha that germany and france is going to

create this new fund where all the money that they're giving to greece are going to go in order to pay that the. basically the greek debt off instead of money being spent on the economy to no develop the infrastructure it's there not managing the greek economy there's nothing and that's why they are mites and might be provocative here but that's always the. it has to be. on the buddy front wheel but if you get people to go to you i mean that's what i mean if you're right you should go ahead dimitri and i will go to the break i had you yes i think i think you should know that greece does not have an industrial base that is basically a consumption economy so you're absolutely correct the hundred and thirty billion euros are going to be used to actually rule over the dead already exists and there are forty to one lead to anything in terms of the growth establishing a growth paths for the bigger economy to grow so you're right in two thousand and

thirteen is a pure fantasy to expect greece is going to grow it is not possible for greece to actually step too big to actually develop budget surpluses so they can actually service instead the deficit is going to be very high and it's not going to be salvaged with this new bailout that people find out even more if i you know. before i'd like you before we go to the break or paying off the debt let's be clear it's paying banks ok this is their game. this is this saving the banks a banking system i mean that the average person in the right has nothing to do with the average person in athens correct and that is why it won't be enough for greece to default they have to actually exit the euro and get control of the current seeing all right we're going to go and sure are you going to do a short break here and after that short break we'll continue our discussion on our story stay with our city.

for. a few. welcome british.

market why not. find out what's really happening to the global economy with much cause or no holds barred look at the global financial headlines tune into a report. you know sometimes you see a story and it seems so you think you understand it and then he lives something else you hear sees some other part of it and realize that everything is ok you don't know i'm sorry. the book . the official policy of location jiang phone called touch from the choose option. on the go. to undermine the teasing line the old costs and r.s.s. feeds in the palm of your. mission.

the bigger. the budget all the time can't live up to my job we're talking about austerity in troubled times. the big. the big. i mean to new york and i to go to you i'd like to read a quote from anglo-american she said in this crisis we have reached a whole new level of cooperation. we have arrived at a sort of european home affairs europe is to mesquite policy that's a remarkable statement because that's that's a very incredible political statement because we're talking about fiscal and political union to the max now because greece has lost its sovereignty at law it's

lost its economic decision making ability and if trends continue others small countries within the euro zone will also follow suit this may be a remarkable political statement but not inspiring because you think that with one talks about it fiscal union or. one has to be able to understand what this means the united states of europe need to be thought is the united states of america he understands america has a central fiscal fiscal agent that's called the united states treasury that does not exist in europe what exists in europe is that every country can have a budget deficit above the three percent and to that and also for a good mile or so from now on every continent in the euro zone should not give in have three percent reduction have a constitutional amendment but it should be even much lower than badly.