possibly arming the rebels documents weapons are all tarred and militants are already pouring across the border. spanish police planes are teachers and students angry that there's no peace in their classrooms thanks to austerity cuts and a major credit rating agency downgrades creature death again saying a default is unavoidable. and iraq's nuclear program must be targeted with a military strike that sleek reported view of israeli intelligence following your inspection the failed to resolve but there. are more on those stories in less than half an hour with me. to washington for some economic insight from capital account is next on r.t. . good afternoon and welcome to capital account i'm laurin mr here in washington d.c. and here are your headlines for february twenty first two thousand and twelve greece has a bailout agreement but 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 person 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 hear a growing business is booming. domingue so why that is the air capital of the world dying with the help of go away at least that's what my gal 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 in the screen goes on sale and is expected to fetch

eighteen million bucks an apocalyptic depiction of wrong human a gaiety and anguish a mist of 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's the 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 could imagine 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 of spam during its twenty year economic downturn so far exactly clear to me what areas of strength we plan to export ourselves into 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 carey 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 it's friday when i was e-mailing with you i was it was literally as obama's speech was going on and he was telling boeing is everything with this right with jobs in manufacturing and i emailed you and was asking you to come in and get time in as i guess news that

i'm in wichita covering the collapse of the airline industry could you just kind of step it up for us what that exactly means yes which has traditionally been you know . america basically you know during the cold war boeing and a number of companies were forced to locate there because the owner of the apartment of defense wanted something very in when they see a huge aircraft industry but you start to see a lot of problems i mean right now wichita tens of thousands of people who are being claimed very high paying jobs about seventy thousand a year is the average salary good which 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 so the eastern kansas several county

region around wichita thirty thousand on an. airline aircraft workers in the past you know what i was trying to do you need to said you could. always quit a job 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 that led to wichita's demise in the state of wichita and what about because i know boeing last february one very large military contract and promised all of 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 about the boeing plant seattle but not mentioning the fact that

boeing broke the law 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're against boeing moving to san antonio texas from wichita because they're forced want to service their level of security clearances so boeing is has done things that want to broken labor law and to they're going to the wishes of the u.s. air force inclusion don it's so they're really not about sins 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 robertson senator lobbied 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 takers to boeing an american company or air bus or european company like i said i mean it's

a great question it took ten years of doing around and have had 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 job and we will not i want to get to that because we keep hearing obama tout his manufacturing initiatives and one of the things he was doing in going was exactly that he was talking about the export import bank that's supposed to help finance and 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 to help with their profits to do whatever they want return to shareholders maximize their bottom line. with the export import bank is a minor part of the problem i mean obama talks about that in terms of increasing

u.s. exports i mean here you know bamma passing treaty treaties with countries like south korea that are going to compete on fairly with what you have been doing all these kind of things or putting 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 u.s. new planes which we buy a lot of great hills of boeing planes are made in china i mean you know so this is a big problem why you are a person in the shoes weaving countries like germany that have to pay their workers higher wages are seen treats of course and brought me some kind of problem 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 out that even when we can't make things faster or cheaper than china we can make them better our quality could be higher and that's one of the back that's a we're going to complete it. 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 are 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 interest given i mean the big thing that's hurting the american airline industry is the competition from the brazilian aircraft maker embry air now there's 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 year has become the largest aircraft maker in the world as it was doing 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 of 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 we do part of the reason why it is well an industry how today exported to other countries outsource quickly because of the skill big airplanes are basically made by hand a very delicate things you know if an airplane goes bad it crashes and it gets a lot in. life 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 the u.s. because of the quality because of the expertise because of the investment now we're starting to do some of that work we've got a court is not always better there was says no it's based in which it's on its production to chihuahua mexico and they had an f.a.a. inspector go in and fly in one of the planes that were building that and the plane

started leaking. 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 going to do those things and by letting so much of this we're we've aircraft which is highly skilled we're losing the best guarantee of quality work which is the human capital the knowledge that workers have and so. you have to keep the jobs here and you have to keep the jobs something that people high paying jobs people will invest their careers in the future when 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 them i read that you're talking about the are indeed the logistics and a lot of those other issues real quickly before we go is there anything in obama's manufacturing plant that leads you to believe that this is going to be dissolution to u.s. jobs and a return to 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 clothes that while the lever 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 planes meet on three or four different continents over the world you know companies want to look at it closer so i think he's trying them out in the sometimes passing between true treaties and he's not calling out the companies that are broken promises with the u.s. government right and so he's saying that this is an example of everything that's going right with manufacturing and u.s. jobs never mind all these other issues 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 my go labor journalist. long and still ahead we've talked about the headline indicator of the end of the globe indicator but not the screen indicator we'll give you our three cents on the expressionist painting sales but first the closing marketers. blah. blah blah blah blah blah blah blah blah

blah blah blah blah blah blah. blah blah blah it was the so much i'm going to use music as the announcer legends and you're right is the drumbeat towards more now inevitable as the chattering classes discuss the possible dangers. of. lists technology innovation the elements so i'm sure we've gone to the contrary. the way. welcome back euro zone finance ministers reached that much and in hard over a deal for a one hundred thirty billion euro bailout of the greek government private holders

and it will take a deeper loss than expected that they accepted last month now this is billed as a deal but is it the real news in our view 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. and twenty 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 kovtun is 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 kind of take us through what this document says about what's going to happen to g.d.p. growth in greece to be sure what it tells about this well there's just there are a lot of charge but they all don't have the baseline estimates and then they have more pessimistic scenarios and in this case that's the tiller 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 rate for the hardest contract we're projecting with a baseline that will get to zero at ten twenty or thirty and then begin to grow to twenty fourteen. which is just the baseline this is what it is based off of it dimitri how is greece going to grow exactly year or two will be here so that's it's

completely so even the baseline scenario is is the baseline grossinger is ridiculous there's no way that they were you can we can grow as we keep saying without our major debt right now basically people have to decide that the bottom is in. their past the worse otherwise the market started investing because that's how you could own the growth so it's totally ridiculous but we're forced to cover it because the mainstream news has been covering it everywhere so we have to tell our viewers why it's complete b.s. why it's b.s. and not to mention greece has been in a depression their economy is contracting for about five years and years five years they just have passed the top austerity measures that we've seen any country and who knows how long and they're supposed to grow any 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 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 got to from the

beginning of one of greece 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 a will with this is how we can get greece quickly above to zero is what we can get the point with the government doesn't need to borrow money for its functions and the only thing that already money for is the payback that's a perpetual state of serfdom but even that's ridiculous he rose with all this what's going to cause them all of a sudden to get to that level all right and this also takes into account a lot of assumptions it takes into account privatizations selling off their assets i think to account all sorts of things that are really only someone sitting there with the calculator and a pencil can come with is 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 is an f.n. accompli greece has to go back and pass more things more reforms that's another by . 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 in 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 for a greater troika side and that somehow they're all these moving parts you have on the one side and all the politics all the social aspects everything business groups are going on the other side you've got the issue of those partners 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 different if ninety five percent but i've seen numbers zero six or six percent so if you don't know what moves are getting huge 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 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 sat right which is the i.m.f. said was was the sustainable of the who told that one hundred twenty percent that this would be you know eight years is i don't know i don't know but dimitri the the

more pessimistic scenario in this report the leaked report which is probably the more needy the more likely scenario you could argue has debt to g.d.p. peaking at one hundred seventy 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 our focus no one actually knows we're reporting on numbers and even the greek g.d.p. numbers no one actually knows ok no one knows when you look it is probably going to be worse things are there oh yes but what we do know is that people are leaving the city on fire when we do know is that politicians are scared to have elections all right of the creditors are because they're afraid to give the go this was the rope yeah and really quickly a couple of really trace terms that are fun to point out is prolonging financial support. it may be necessary but there's a fundamental tension between reducing debt and improving competitiveness i mean these are some of the choice words and they're basically sound like we're looking

at perpetual bailouts that the debt is going to be even more and manageable and that this all could blow up in everyone's face is not really here is that what you're what you're taking away from this yeah the dimension of your labor costs i guess the best one of all that's basically we're going to make you poor and competitive it's ridiculous yeah we're going to make you boring that it doesn't happen what you just 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 has changed here this is 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 and ok right i mean could you argue it's already a default with private sector or absolutely didn't notice anything that is if thought ok but i unilateral that all right looking about some sort of political revolution where you particles of power and then you just hell breaks lose 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 in your campaign is 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 before i 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 rose bowl dealer says he sees more and more people

firing precious metals as investments that's why the call of 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 have seen it in utah or 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 but the reality is that the. this is really token legislation because what really puts muscle behind it's behind the dollar circulation isn't isn't actually freeing up in

a life with the bigger cities it's the income tax and it's taxes in general if you have to pay taxes you think of dollars and that's what the number one thing the government always does if it wants to with the currency that it issues is that it creates also some of the. pressure of the 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 that at least put something on the books that if things got really bad they'd have some kind of a back up you know 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 then they'll say well i've been trying. to figure these changes what was the dollar value so it's basically that's the problem the problem is that you stop the pretext and that is what necessitates the use of that's the number one thing that puts muscle behind the dollar yeah that's a good point. 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 there i don't know if the colorado they are wanting to get here but you target 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 nudity recently we talked about the headline 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. 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 is 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. and i mean my question we have the dow breaking

thirteen thousand today we have the scream going on sale what do you think the better gauge of social media is i feel you know our soldiers are to be honest i thought of you in the lead crashers are we going to fight with. ok we're trying to get a gauge of social mood to me to understand my game chan or what do you think. i'm sorry i truly didn't get once question because my collections for the screenplays go out of the letters because i was a 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 end of the world movie so i don't know i think that i go for what brought her character was kind of saying this that we're going between 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 this is not

a lot of money trying to get it i think this is b.s. finders keepers our crew why should we give it up that's ridiculous the british sunk the ship anyway yeah they should be more sleep at the wheel it's all very murky very murky to waters working 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 both of you to follow me on twitter al gore and lister to our next show and you can get a speed back at you tube dot com slash capital account but for now for me and from everyone else here thank you so much for watching and have a great night. i'm

. going. home.

for. lunch. look for this on r t the us prepares to pull the strings of the syrian conflict but possibly having the rebels weapons and al qaeda linked militants already pouring across its border.