does the country have a chance a look at the league confidential greek debt document prepared by the troika shows even the best case projections used to justify the bailout don't even meet the minimum threshold publicly demanded during the negotiations will break down the fine print and the u.s. state department host the first global business conference looks like even hillary clinton is a job recruiter these days this is as we've seen u.s. president brought obama touting his manufacturing initiatives he picked boeing on friday as an example of what's right with u.s. manufacturing and job creation. and here at boeing business is boom. boom. boom ng so why then is the air capital of the world dying with the help of boeing that's what my goal says is going on he's back fresh from wichita kansas to tell us about it and one of the most recognizable works of art a version of the painting the scream goes on sale and is expected to fetch eighty

million bucks an apocalyptic depiction of wrong human anxiety and anguish amidst a bloody sky is this a reflection of social mood on a day when the dow broke thirteen thousand we'll debate it let's get to today's capital account. so one of us president barack obama's initiatives that we've been talking about for the country is his goal of doubling u.s. exports in five years it's a goal he set a couple of years ago this is one of the initiatives he continues to push for a u.s. economic recovery to bring back u.s. industry and employment ok here is first one glaring issue with this that one of

our guests an economist pointed out looking at the u.s. economic outlook in the macro economic context take a listen the other really big problem that we're currently planning to do really well over the next few years through exports and nobody to mention that twenty percent of our exports go to the european union which is in the worst recession it's been in years and then another ten percent of our exports go to japan which is also in one of the lower growth periods it's been during its twenty year economic downturn so it's not exactly clear to me what areas of strength we plan to export ourselves into which is not exactly clear to us either that aside obama picked a boeing plant in washington to give a speech on his plans and his goals last week hailing boeing as an example of an american corporation that is doing it right. the dreamliner is the plane of the future and by building it here boeing is taking advantage of

a huge opportunity that exists right now to bring more jobs and manufacturing back to the united states of america. the problem is our guest is a journalist who has just returned from wichita kansas and this city has been an aviation manufacturing hub it's earned it the nickname of the era capital of the world and now like so many other manufacturing capitals in the u.s. its industrial history as one of these capitals may be dying the airline industry could be collapsing and a corporation packing up and getting out why don't you take one guess it's boeing michael because here he staff writer for in these times to tell us why mike thank you for being here great to be on the show let me first let me get because friday when i was e-mailing with you i was it was literally as obama's speech was going on and he was touting boeing is everything that's right with jobs in manufacturing and i emailed you and was asking you know come isn't it get come in as

a guest news that i'm in wichita covering the collapse of the airline industry stoeckel could you just kind of set that up for us what that exactly means yeah wichita has traditionally been you know the aviation hub of america basically you know during the cold war boeing and a number of companies were forced to locate there because the you know the department of defense wanted something very in when the bombing she have a huge aircraft industry but you start to see a lot of problems i mean right now wichita you have tens of thousands of people employed in making claims very high paying jobs about seventy thousand years the average salary a good wichita i would imagine are pretty good and it's heavily unionized there too despite candidates being a right to work state but now in recent years we're starting to see a lot of problems in wichita with companies leaving to go to other places to go to mexico to go to other states where the unions aren't quite as strong to go you know to outsource to nonunion shops right now in southeastern kansas several county

region around wichita you have thirty thousand unemployed. airline aircraft workers in the past you know i was trying with the union leader who said you could. always quit a job in an aircraft maker and go get another one the same week that was the case up until the financial crash a few years ago and a number of factors have led to wichita's demise in the precarious state of wichita and what about because i know boeing last february one very large military contract and promised all these thousands of jobs were going to come to wichita as a result fast forward a year and boeing says never mind we're going to shut down all of our operations here and get out why is that is that the union issue they want to get away from well some of it is they want to do with the union some of it is also they want to consolidate and you know they have a facility in san antonio that they want to use more. but i find it very difficult that they want to move and so it's really interesting that the president would be praising boeing yet while the boeing plant in seattle while not mentioning the fact

that boeing broke the law and moving work away from that plant to south carolina it's very. you know interesting that he would give that kind of speech and not mention that you know boeing against the wishes of the department of defense the air force has just come out and said that they were against boeing moving to san antonio texas from wichita because air force one is service there was a rigorous have security clearances so boeing is has done things that one have broken labor law and two they're going to the wishes of the u.s. air force including down this facility so they're really not a models and what is it about is it about their bottom line and maximizing profits it's mainly about maximizing profits and being able to run business the way they want to even though a lot of republicans from kansas including pat roberts and senator reid and were promised that they lobbied hard they would get this but let's talk about something else why did it take ten years for the department of defense to decide whether or not they're going to give the contract for these tankers to boeing an american company or air bus or a european company like it's going to my time it's

a great question it took ten years of dealing around and have the have the syllabus ten years ago those tankers would already be made. in wichita right now there wouldn't be this threat of the movie and this gets to the larger problem which is that we don't have an industrial policy in this country to keep high we've made a fashion jobs and well a lot i want to get to that because we keep hearing obama tout his manufacturing initiatives and one of the things he was doing in boeing was exactly that he was talking about the export import bank that's supposed to help financing for corporations and he's talking about new initiatives for that that would help match foreign competition my question is no matter how you feel about the government picking winners and losers this way or having this kind of a program does it do anything to create jobs or does it help huge multinational corporations export more and they use that help with their profits to do whatever they want return to shareholders maximize their bottom line that's a good thing where the export import bank is a minor part of the problem i mean obama talks about in terms of increasing u.s.

exports i mean here you have obama passing treaty treaties with countries like south korea that are going to compete unfairly with push you have been doing all these kind of things opening up u.s. industries to outside competition from unfair competitors and then you also have a policy where we buy u.s. goods that are entirely new in the us i mean look at boeing planes which we buy a lot of great heroes of boeing planes are made in china i mean you know this is a big problem why are our best industries leaving in countries like germany that i pay the workers higher wages are seen treats or pushed while making the same kind of product is some people i've talked to said the issue is quality but i want to play you what obama actually said about quality and competition at that speech in washington on friday. and companies like boeing are finding that even when we can't make things faster or cheaper than china we can make them better our quality could be higher and they actually want to move across the board that's how we're going to complete. so what do you think about that because that gets to the issue we're

talking about which is a lot of these made in america planes whatever are made in america they have parts made in china where it's cheaper so there is that question and then the question of quality can the u.s. compete on quality it seems like people want the best price the u.s. can compete in quality but there's no is the best initiative given i mean the big thing that's hurting the american airline industry is the competition from the brazilian aircraft maker embry air now this is a situation in which the brazilian government has a controlling interest where they can veto decisions made by andrea and they've taken a lot of power to really concentrate in the last ten years and we're has become the third largest aircraft maker in the world this is a brazilian company and as a result of government intervention and helping out now in the case of boeing it doesn't seem in other groups that the u.s. is trying to use its its defense budget clout to create the most jobs and create the most high paying jobs as well as union jobs so i think there's a real problem well but the issue of the unions and the and the wages is this

something that's going to have to be addressed because if if companies are moving to go where it's nonunion labor to go where wages are are lower they have more influence is that just something that people are going to have to accept if they want a job period what was thought with the part of the reason why well an industry had to be export to other countries outsource as quickly was because of the skill big airplanes are basically made by hand they're very delicate things you know if an airplane goes bad it crashes and it gets a lot and unlike you know if a toaster blows up or something like that it's a huge story and so for a long time this work has been able to stay in the u.s. because of the quality because of the expertise because of the investment so that now we're starting to see some of that were leave and the quality is not always better there was says now when the plant based in wichita moved some of its production to chihuahua mexico and they had an f.a.a. inspector go in and fly on one of the planes they were building there and the plane

started leaking to. crashed they got fined two point two million dollars by the f.a.a. so the u.s. can compete on quality but it's got to do those things and by letting so much of this we're leave aircraft work which is highly skilled we're losing the best guarantee of making quality work which is the human capital the knowledge that workers have and so. on quality but you have to keep the jobs and you have to keep the jobs it's something that people high paying jobs the people who invest their careers in the keep it buoyant it's interesting because with so many of the issues on exports and manufacturing you've seen the factories and actual manufacturing leave but with that everything you're talking about the r. and d. the logistics and a lot of those other issues real quickly before we go is there anything in obama's manufacturing plans that lead you to believe that this is going to be the solution to u.s. jobs and a return of american manufacturing in the near future i don't know he's trying to promote some in-sourcing and i think some companies are seeing that it's cheaper to make goods clothes that well the leader might be cheaper overseas there's

a cost you know things about quality about having supply chain close together that make it difficult to have airplanes meet on three or four different continents all over the world that you know companies want to look at it closer so i think he's trying them out in the same time is passing big retreat treaties and he's not calling out the companies that are broken promises with the u.s. government right in studies saying that this is an example of everything that's going right with manufacturing and u.s. jobs never mind all these other issues mike that's all we have time for but i really appreciate you being here and telling us the reality of the manufacturing of the airline industry because you were just in wichita kansas the air capital of the world which may not be thank you that was michael labor journalist. and still ahead we've talked about the hemline indicator than the boob indicator what about the scream indicator we'll give you our three cents on the expressionist painting sale but first your closing market numbers.

you just put a picture of me when i was like nine years old until she told the truth. i'm a confession i am a total ghetto princess i love driving hip hop is a planned trip. but it was kind of the jester day. i'm very proud of the will without you she has played. oh oh oh. oh oh oh. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something

else you hear or see some other part of it and realized everything you thought you knew you don't know i'm charged welcomes a big picture of. what drives the world the fear mongering used by politicians who makes decisions to break through it sort of it being made who can you trust no one who is you know view with a global missionary see where we had a state controlled capitalism is called sessions when nobody dares. to ass we do our question more.

welcome back euro zone finance ministers reached that much hand in heart over a deal for a one hundred thirty billion euro bailout of the greek government private holders and they'll take a deeper loss than they expected that they accepted last month now this is billed as a deal but is it the real news in our view is that this is still all hocus pocus peter spiegel of the financial times obtained a confidential ten page memo distributed to senior officials in europe over the last week a debt sustainability report prepared by analysts in the troika essentially showing that assumptions used to negotiate this deal look really rosy and don't even get greece to one hundred twenty percent debt to g.d.p. in two thousand and twenty as european leaders want and more pessimistic and seemingly more likely scenarios have debt to g.d.p. way above target never mind the language that when decoded basically seems to mean

greece may need another bailout and the debt may become even bigger of an unsustainable disaster dimitri coffee and us our producer for capital account is here we're going to break this all down dimitri let's first start talking about the g.d.p. and these projections for g.d.p. and what this document has somebody believing it's going to do in greece let's bring up that chart and demeter can kind of take us through what this document says about what's going to happen to g.d.p. growth in greece to make sure what it tells about this well this just there are a lot of charge that the all of them have the baseline estimates and then they have more pessimistic scenarios and in this case that's the tail or downside risk is a dotted line so what you're seeing on the left hand side is real g.d.p. growth projections right now we're below six percent negative six percent growth right for the group that is contracting they're projecting with a baseline that will get to zero at ten twenty five thirty and they begin to grow after twenty fourteen. which is just the baseline so this is what they get it based

off of how is greece going to grow exactly year or two where they can so that's it's completely so even the baseline scenario is the baseline growth center is ridiculous there's no way that the greek economy can grow as we keep saying without a major debt write down basically people have to decide at the bottom is in. their past the worst otherwise an archive started investing because that's how you could have a growth happen so it's totally ridiculous but were forced to cover it because the mainstream news has been covering it everywhere so we have to tell our viewers why it's completely b.s. why it's b.s. and not to mention greece has been in a depression their economy is contracting for well five years and years five years they just have passed the toughest austerity measures that we've seen any country pass and who knows how long and they're supposed to grow and a year and a half or two years that's insane let's continue with this because buried in this document greece may have to seek another fifty billion euro bailout after twenty

fourteen right so they still need money and even on the right side this is the primary surplus that's referring to that's that's what critters have water from the beginning they've wanted to grease to get into position where the only thing that they're running a deficit on is interest payments and that's what this shows it's saying well this is how we can get greece quickly above the zero is where we can get them quickly to a point with the government doesn't need to borrow money for its functions and the only thing that they're already money for is the payback that's a perpetual state of serfdom but even that's ridiculous the rosy wall that's what's going to cause them all of a sudden to get to that level all right and this also takes into account there are a lot of assumptions to take into account privatizations selling off state assets i think to account all sorts of things that are really only someone sitting there with the calculator and the pencil can go in with this in his head and in reality you have to be on the ground have to make a decision to invest in the future and people aren't doing that and this brings me to another point to dimitri this isn't a fed accompli greece has to go back and pass more things more reforms pass another

by. you're right this is not the end of the deal this is there's still more to be determined in the near term by what happens in greece politically and the opposition the major opposition leader in greece is calling for elections in april there's all sorts of things that can happen i mean the way it's presented in the media at least in people's heads is that there is this group that there is for this foreign creditor troika side and that somehow they're all these moving parts you have on the one side it's all the politics all the social aspects everything business is greater than like that on the other side you've got protocol editors in each one of those critters has to make a decision if they want to be part of this deal or not so they haven't even figured out what the private sector participation rate is there any fine if ninety five percent but i've seen numbers over sixty six percent so it used to no one knows exactly who is difference no one knows exactly another thing i want to point to you speaking of no one knows so the baseline scenario which is what they negotiated off doesn't even get greece to that one hundred twenty percent debt to g.d.p. in two thousand and twenty which european leaders previously set right which is which the i.m.f.

said was was the sustainable of the who told the guy that one hundred percent that the g.d.p. in eight years is stable i don't know i don't know but dimitri the more pessimistic scenario in this report the lead to report which is probably the more maybe the more likely scenario you could argue has debt to g.d.p. peaking at one hundred seventy eight percent in two thousand and fifteen it would be one hundred sixty percent in two thousand and twenty what is that even look like i mean is that that's a disaster again the all the numbers are are are hocus pocus no one actually knows like we're reporting on numbers and even the greek g.d.p. numbers no one actually knows ok no one knows although we may look at it's probably going to be worse things are there. but what we do know is that people are leaving the city on fire what we do know is that politicians are scared to have elections all right of the creditors are because they're afraid to give them the rope to hang . and really quickly a couple of really trace terms that are fun to point out is prolonging financial

support. it may be necessary that there is a fundamental tension between reducing debt and improving competitiveness i mean these are some of the choice words in there that basically sound like we're looking at perpetual bailouts that the debt is going to be even more unmanageable and that this all could blow up in everyone's face is nothing when you're is that we're what you're taking away from this yeah the dimension of you know labor costs they did us the best one of all that's basically we're going to make you poor and we're going to be competitive it's ridiculous yeah we're going to make you boring and that it doesn't happen well it's just my point is that the entire formula for growth is absurd doesn't it doesn't work and we're we have to report it because it's being talked about but nothing is changed here and there's nothing you hear greece will default and the more that they continue to push these measures on they're risking their personal revolution in groups ok right i mean could you argue it's already a default with private sector. and i think that is a default ok but that's not i don't know why unilateral default talking about some sort of political revolution where you particles of power and then you just all

hell breaks loose right but we will continue to bring you the breaking down of the fine print and the reality we'll talk about the hocus pocus nature of all of this that was immature to fantasy's our producer. all right before we go let's bring dimitri back and let's bring shannon donahoe in from the control room to talk about a couple of lighter stories the lighter side of things that we want to hash out here last year utah was the first state to legalize gold and silver coins as legal tender we've talked about that before a number of other states have tried to put similar initiatives and at least back up plans if the dollar just collapses now colorado wants to join in.

charlie rocked me a pool dealer says he sees more and more people are firing precious metals as investments that's why the colo solution is looking at something like gold and silver that will hold its value it's always been true to you so there is a senate bill and supporters of the senate bill in colorado in the legislature are worried about the dollar they're worried about quantitative easing they're worried about what could happen they want to use gold and silver as legal tender the bill is already clear the senate finance committee it needs a vote from the full chamber. this is growing i mean i am we've seen it in utah we're seen it in colorado we're seeing people take actual measures because they're genuinely concerned about what's going to happen with the dollar well here's the thing i'm not on your parade or my parade yeah but the reality is that. this is really token legislation because what really puts

muscle behind the high and the dollar circulation isn't isn't actually freeing up in the line for competing currencies it's the income tax and it's tax in general if you have to pay taxes to pay them in dollars and that's what the number one thing the government always does if it wants to legitimize the currency that issues is that it creates also some of the. tax revenue right so are you saying that even though the states are doing this it doesn't really do anything it doesn't really give them any insurance doesn't this at least put something on the books that if things got really bad they'd have some kind of a back up no what i'm saying is that the i.r.s. will say at the end of the day there are some who are for you and say show me all your bills i don't believe your income statement and they'll say well i've been trying. to figure out the exchanges what was the dollar value so it's basically that's the problem the problem is that you still to be taxed and that is what necessitates the use of that's the number one thing that puts the muscle behind the dollar yeah that's a good point shannon and you know you and i were kind of confused how does this even work as there's this whole issue of the exchange rate and the value of gold and it's very confusing i don't really understand quite how it could work so i

guess you talk. i don't know it's call the colorado what they are wanting to get here but in utah it is. the true value of gold as opposed to what is originally marked ok we're going to have someone on to explain it all to us so for now let's move on because we've been talking a lot about social mood recently we talked about the hemline indicator more recently the group indicator as reflections of social mood and indication of the economy so what does this indicate about where we are. we supposed to do something like that. so that movie was scream the mask and it was inspired by a painting that everybody can probably recognize called that scream and it's one of the versions of it is being auctioned off and could get as much according to an expert as eighty million dollars so you know this is a very quintessential depiction of anguish of an apocalyptic setting an internal

hell that the artist was depicting a person i mean my question we have the dow breaking thirteen thousand today we have the scream going on sale what do you think is a better gauge of social mood is our feel but this sure i mean you know when i saw this i was to be honest i thought of you when the work crashes when we could if i was. ok but we're trying to get a gauge of social mood dimitri going to say my game shana what do you think. i'm sorry i truly didn't get one question because michael it just freaked out and i screamed face. fell out of the letters because i was going to nobody cares we only have a few seconds that's how we do our scripting but basically i think that i don't know we were i was just seeing a movie and every a preview was an apocalyptic and of the world movies so i don't know i think that i go for what robert rector was kind of saying this that we're going between extreme optimism and pessimism we're almost out of time but us judge ruled to us excavation

service must return treasure they found in a spanish sunken ship they spent a lot of money trying to get it i just think this is b.s. finders keepers are group why should they give it up that's ridiculous yeah the british sunk the ship anyway yeah there's been more sleep at the wheel it's all very murky it's all very murder a water is murky literally no pun intended we're going to leave you on that because we're out of time but thank you so much for watching go free to follow me on twitter at lauren lyster until our next show and you can give us feedback at youtube dot com slash capital account but for now from me and from everyone else here thank you so much for watching and have a great night. it's

all designed to keep you close in your own small world as a prison. you know you leave somebody in there for a couple hours like in a stress position. you have this fear of the unknown and this stress sort of building and. i've seen interrogations go on ten twelve hours they chose songs i remember from marilyn months. in the current slayer the two songs to be angel of death and raining blood to kill the enemy going through war coming up here into iraq coming up into baghdad. johnny poured the bodies to the floor just a rock n roll there who is fighting for the job we were doing.

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