night from our studios here in central moscow this is r.t. top stories now the u.n. arab envoys attempts to bring about peace talks in syria cash from calls for military action from some opposition groups. a test of will russia's opposition hopes to regain its momentum at a rally in central moscow but internal fractures and draining public interest lead many on the sidelines. of physics change a far on the israeli palestinian border moves into its second day but thousands of rockets fired and civilians hurt on both sides of the killing of

a gaza resistance leader. and optimism about the greek debt write down proves premature as happened suffers a fresh downgrade from fitch ratings agency with moody's going even further and declaring greece in a different. that with more on this story in half an hour from now in the meantime we delve deeper into the global economy and politics with laura lister and her capital account from washington that's next. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and here are your headlines for march ninth two thousand and twelve u.s. unemployment remained at eight point three percent it's being touted as sturdy because it was unchanged that's by mainstream media headlines of course but with more than half of those jobs added low paying work by analysts and more than half of the professional services jobs added been temporary ones is this so-called

recovery built on next donalds jobs and piecemeal work we'll talk about it meanwhile the u.s. deficit is expected to hit a record all time high in february we'll break take a break from the eurozone crisis to talk about the u.s. for a minute but not break entirely because greece got more than eighty five percent of private sector bondholders voluntarily on board for the largest debt restructuring in history the greek government will use collective action clauses to push that number up to ninety five percent which if you're wondering works a little like this. shows. too late should we. a little money. which means private bond holders won't be able to refuse the deal they'll be forced to swap their bonds so we'll see the as a trader who is making this decision exactly and what precedent does this deal that's for the rest of europe and after going bankrupt and thus far it looks like

taking more than a billion dollars in customer money that remains missing when i went down and my lowball executives could still get several hundred thousand dollar bonuses look at how it's not even possible we're going to talk about it let's get to today's capital account. so in the u.s. unemployment rate did not change it's still an eight point three percent according to government figures that came out today this is solid news for the mainstream media and for president obama and his photo op earlier where he was the good news we just both know that last more than. two hundred thirty thousand private sector

jobs. however as analyst david ater of c.r.t.'s quoted by zero hedge notes about one hundred sixty thousand of those private jobs which is more than half are low paying work and per b.l.s. of the eighty two thousand professional and business services jobs added more than half of those forty five thousand were temporary the number of part time workers didn't change and remember these are not part time workers because they want to be part time workers it's because they can't find more work that stuck it about eight million people so that is for people who are looking for better jobs then i guess mickey d's types jobs or full time work it seems good news though for one industry take a look. yeah . i'm talking about guns gun makers smith and wesson

stock was of twenty three percent this morning near three year highs this is after the gun maker reportedly hiked its full year sales forecast. higher on a higher order backlog strong demand for guns and rifles temp workers i don't know getting for paired for the worst for the zombie apocalypse we've been talking about lately and speaking of zombie apocalypse all of this amounts to less tax money for the u.s. government to take in while it's still spend spend spend and in fact the amount of this spending and lack of money coming in as an answer to the largest monthly deficit or in history for february that's according to c.b.s. show projections there is more we're going to get to a beloved karl denninger and here he is traitor and author of this book the leverage how cheap money will destroy the world and karl i know you're going to have strong opinions on this so thanks for being on the show this friday let's get

straight to this c.d.o. report that says he was the worst month ever for the u.s. deficit the highest i guess lowest however you want to look at it. before this streak which has been forty one months of deficits the longest streak ever was eleven months so another record there it looks like how can people talk about an economic recovery as we're hearing on the mainstream media and from some policymakers when you have this kind of a budget deficit issue you can't which you have to do is to g.d.p. divided into twelve because they were told once and look at the. throne any given moment is a slice of g.d.p. and when you do that what you're really looking at you stroll stimming and if the government is generating board or with your destroyed you go unnoticed or email you don't have in your credit cards temper. early it makes the guy who builds t.v.'s or cars or whatever. but in the long run it leads to layoffs unemployment destruction

of the current purchasing power and we've been at this now as as you've noted for the better part of four years we're still doing it we started when the banks got in trouble and we're still just really trying to prop up asset bubbles in having some success in the stock market really the world's thinking of asset bubbles and credit card purchases let's talk about u.s. household credit card purchases because another number that came out from the federal reserve shows that u.s. households increased their debt for the first time since before lehman brothers collapsed since things were really really bad now it's up point two five percent which i guess doesn't sound like a lot that was for the fourth quarter annualized but i don't know if it's a good thing that people are charging up the credit cards again or is this just perpetuating the same problem. well they're not charging a credit cards but i do a series on fred report every month when it comes. to chino and chain release and the place the debt has been showing up it has been skyrocketing student loans

and when it comes to credit cards it's been a socially so out the west year there abouts just last month it was actually down very slightly the problem with charging off student loans is that they seem to be the last sucker that's left now that we can't meet people who run up credit produce things we're doing use essentially hosing our young people were you just don't have the life experience to realize what they're signing up or it's terrible thing but it is currently close to a trillion dollars yeah worth of debt that has been loaded onto the backs of our young people yeah when they get out of that school that they're taking out all this gap or not a lot of jobs for them because we know that youth unemployment is high which brings me to the other forms of of employment that we do see a lot of temp jobs in this last job report we got created some analysts saying that the private sector jobs that were created a whole a lot of those are low paying jobs so when we look at the deficit and we look at the kind of jobs that are being created it doesn't seem like the numbers add to me karl and how we're going to get out of this math that's the for unemployment and

the deficit. they go on where the real problem resides we have a labor participation rate that barely moves the west wants a lot of needed all that much of war this morning when the release came out we have a large number back into the workforce in the problem is that when you look at the actual rate of job increase compared to the increase in the population you find that we haven't really created any jobs at all remember that population in the country goes up if we bought this well and so you have to create enough jobs every month in order to cover the increase in the working age population and we're not doing that and what is that number again is it still what is that to in order to just account for population growth and new people and the workforce it's a little over two hundred thousand mostly so when we look at it a. change the labor participation rate it took a couple of turns people looked at density it went up but in fact it has been trolled such purposes are last year's it still is it should be were last year we

checked up a little bit too so there's been no real movement of sorts and yet that makes headlines the anger in the little increase in the participation number range that's been something that i've seen in the mainstream which is interesting because you're saying it's a plan let's talk about the banks though because you did mention them and another report came out from the g.a.o. yesterday which was very insightful cora let's take a look at this because i want to pull out the exact line that was the most interesting to me if we could bring that up because it said as of january thirty first two thousand and twelve three hundred forty one institutions have accident c c p p excuse me and this is basically the part of tarp where most of the banks got their gal out money there about seven hundred participants now. i got half of these guys made that c.p.p. repaying with funds from other bad role programs and aside from that there is more the number of institutions missing scheduled dividend or interest payments had also

in. craze i'm really curious about though the fact that banks have been paying back that's money that they owe with money from other federal programs which really got to the issue of karl how can we know just how much money have been diverted from u.s. taxpayers like you and i to the financial system it's a tremendous amount and that's where the problem is if you look at where the issue and it was of course and more teachers and you look at the decrease in mortgage credit outstanding on the folks the one when dismissed started i said we had about three trillion dollars worth of damage to take in it area in fact we took in about a fifth of it and the reason the banks are still in operation is because they first took bailouts and then they banished to find ways to shift that in order to allegedly repay it but in fact they didn't really repay you he just took a twenty dollars bill out of one pocket differ on it so you'll reach twenty dollars richer this is

a shell game and it's been going on. for quite some time but when you look at the total debt richard what you see is that if you militia is all showing up now at the federal government and so you have to look at this is a systemic issue that is now who we are now we recently passed through that we're increasing g.d.p. which is how we got into this mess in the first place and we've not changed what we're doing we have not changed what we're doing and yet going back to tarp and the government bailouts and you say that all of this money is just getting saddled on to the government that we still hear the talking point that the government made money on target here echoing the mainstream media once i want to play one of our favorite sound byte for you karl. do you know that taxpayers actually made money on the wall street bailout. news i mean not g.m. but they did on the last report about this is i mean you got any differently than moore's law. if i were right in my culture. if you were right sure but if he did

his research there is plenty of information he shows about wrong so how is that still the conventional wisdom if we could just you know kind of laugh about this for a second well you can't tell people the truth about things like that they want your . you out of office and they most certainly won't while you're in the chain or these particular institutions because we are is the choice in common stream media does not really notice that you wrote that you know the truth what else is to say yeah that's all you have to read i wish that that was blasted all over headlines and that was brought to the occupy wall street protesters instead of be hammering them for not knowing that the government made money on tarp according to phony reports but i do want to stay on the banks for a second because switching gears just slightly we do have this news on greece that they got the private sector to commit what they needed to to the bond agreement but there are going to be able to trigger this collection at collective action cost cacs whatever stands for sorry probably to get out exactly right but basically it's

going to be able to force about ninety five percent participation in this is expected to trigger a credit event triggering c.d.'s which the i.s.d.n. has not decided on yet my question to you on the i asked the voting committee our big banks like j.p. morgan goldman sachs firms like pimco i'm just curious what impact that has of their voting. my sense of it i understand that there was a report out this afternoon that the decision has been made that they have been triggered that was not unexpected you really can't say no in a situation like this where force has been applied because if you did then what you would have done is to clear credit default swaps or bogus instruments there with nothing you could go in for those who are frauds but doesn't make a difference so we would qualify them but they if you made such a decision so that they're going to get triggered here is a foregone conclusion the problem be columns the now you're going to shift your speculation from greece into other places that have

a great deal of pressure that's very similar such as portugal spain and while the credit default swaps there are outstanding events reeses a few billion dollars if you see the same kind of attack run against one of these other countries in europe it's going to be an entirely different situation because there you're talking about hundreds of billions of euros and the money just simply doesn't exist to cover it and then you're in a real pickle i can't call we're going to leave it there for today i appreciate you coming on and talking about all of the various things all this really fantastic news on this friday that with karl denninger author and creator. and still ahead bonuses for m.f. global exacts that's a job right big again we'll break it down with a reality check but first your closing market numbers.

technology innovation all the developments around. the future however. welcome back so as i was starting to get into before the break greece's bailout is reportedly moving forward after greece did get more than eighty five percent of private sector investors to agree to the debt swap now this is again to reduce greece's debt so it can take on more debt from international lenders to address the problem of too much debt but that's for another moment today the greek government

also approved using collection act collection action clauses cacs to force more investors to take part in the swaps which is expected to bring that number up to ninety five percent of those bondholders now greek officials hailed the debt deal take a listen. there's a sort. of peace right because for the first time social structure on the floor for there's i mean. a bit more but for now i'm sure markets. is it a unique case for the global financial markets because other countries in the euro zone are saddled with too much debt and coupled with austerity unemployment not enough growth could be a big problem so what precedent does this set exactly zero bestselling author felipe bagus is here to help figure that out he's author of this book tragedy of the euro and he is here to tell us how the tragedy is impacting us today thanks for

coming on to the show welcome back. and you are great to have on because you are a german economist you're sitting in spain you're at the heart of where this is all really going on so before i get to what precedent this sets for greece for other countries as i just mention we do know that the e.c.b. has been doing quite a lot so that the government and banks can have more time to figure out the situation in other countries as a result we've seen its balance sheet explode and we're often very critical of the fed's balance sheet on this show but i want to bring up that you see because it's actually increased very very much and it's expanded more than the feds has in the past three to four years how large is this to you. but it's very wrong. just. and. it's liabilities that is. you wrote it's actually bent over every bit as it is by

loans too and so it's all in governments and banks yeah and just to give our viewers a live in a little bit more context if i could bring up a chart that shows what the balance sheet equals as far as a portion of g.d.p. it's quite staggering it's a third of g.d.p. compared to the federal reserve balance sheet which is nineteen percent of u.s. g.d.p. the bank of england which is twenty one percent and the bank of japan's which is there any percent but moving on from that i want to look at the greek deal because in a report from the think open europe in europe they said that at the start of this year thirty six percent of greece's debt was held by taxpayer backed institution by two thousand and fifteen after this deal has gone through that sure could increase to as much as eighty five per cent so let's go through the scenarios does this mean that this is going to amount to a lot more political and economic strife in the eurozone as we see taxpayers

responsible for all of this debt and greece could have a situation that interior it's even further. yes. we need more bailouts and sooner or later there will be losses. and then mostly by taxpayers this worse on the idea too to move on a little bit was the usual to move the losses but there would be an. experience one rated or number. or fairly riddle me this are we seeing some kind of encourage all your reemerge where the core is essentially taking control of the periphery but this time not with armies they're doing it by settin in a trike and saddling them with debt by another well i think is more the other way around it's hard working so it was say what workers in the courtroom need especially the exploited. mentions at the very

transfers. in form of informal bailouts e.c.v. fine looks but felipe didn't jeremy benefit for a really long time from the periphery being able to build out credit and especially subsidizing the exports of surplus country like germany. well if you look at it from the individual it would really want is not to export them just the way your stuff but we import like if i sell my goods or work for other people i'm exporting if i buy castigating up importing so what's more interesting for me well i would prefer only to import and that is what the delivery did just consume more than the sender winkled this is very american comfortable position the they have been in and they want to continue this and this can only be done by continuous

transfers. from the court of law so then how come germany is going along with that why isn't germany saying hey forget this you don't need to get out of the euro zone . well you know germans have. complex the they think they have to make up. for the second world war etc they have been reeducated after the second world war the political class of of of of course has very strong in favor of this you deny the ideal of ever more centralized european organization there and there's pressure over states so there are many reasons why germany has gone along with along with it of course the jumble relation would probably not if it would be asked what they are not what i think they're saying because i think the last time we talked you thought that the german population was still on board for all of these solutions are you saying the sentiment has changed. yeah the sentiment.

was changing but it was ok it was a but the problem is that you're never you know big. oil stocks but it's these books on full strongly support the euro is jones would have been the first place it's you should have introduced then it would just and that's and they would know too that we bellow example well and that's interesting because that's an issue you have from germany to countries like italy and greece where technocrats have been put in to impose these measures such as austerity and a lot of people have blamed the problems that these countries are experiencing economically on austerity and this vicious cycle but at the same time is the one component of this that you need the private sector to invest again and don't they need to feel like there is a bottom and order for them to invest again and one that involves liquidating more of the debt and i just need a quick answer there please this quickly additional steps in the and in the forward

would be the best fit for for greece or for more countries. i would recommend all of. governments to. actually all of them to just to just liquidate all the debt yes and then probably no one would them any more. so and there you go start from ground zero start from scratch thanks so much for being on the show and bringing us your perspective from spain that was the lead bagus author and or best selling author i should say and professor.

ok it's friday which usually means viewer feedback but today there was a story that caught our eye and we could not over look at something to get you infuriated before the weekend sorry but it is mandatory ok m.f. global is at stake here john for a science firm remember that went belly up becoming the eighth largest bankruptcy in the u.s. with a reported one point six billion dollars in customer money still missing and it's allegations it was stolen by the fur investigations of course are ongoing we have been reporting on it a bunch and will continue to but what do you know that deal for customers not a bad deal for exact look at this headline and global still set to pay bonuses three top executives about now full holdings when it collapsed could get bonuses of as much as several hundred thousand dollars each under a plan by a trustee overseeing the securities firms bankruptcy case people familiar with the

matter say come on you have got to be kidding me ok who are these people the c.e.o. the finance cheat the general counsel i think we have pictures if you want to see him but we don't but you can google one they've been on the board helping the guy in charge of unwinding m.f. global maximize payouts for creditors hey that's what they're getting rewarded for you know creditors banks like j.p. morgan who have made out pretty well in this bankruptcy as opposed to the customers who can't get their money back but the thing is this is all too familiar we have seen this before let's look at. ai g. bonus is deemed outrageous but legal we've seen this before a.j. got bailed out approximately one hundred eighty billion dollars worth of taxpayer money then they gave out a billion dollars in bonuses including four hundred fifty million bucks to employees and that very division that was largely responsible for driving the company into the ground they were the ones that wrote insurance that could never be

paid you could call it fake and to give an example joe cassano who was in charge of it all of that division pocketed two hundred eighty million dollars in cash and an additional thirty four million in bonuses under a retirement agreement marked confidential because on also got a reported one million dollar a month consulting fee now i do subsequently cut off those payments because son i'm still walked away with more than three hundred fifteen million dollars according to media reports and government documents the fact that they had him on retainer for a million dollars a month after the collapse was probably because he knew were all the bodies were buried which is out rageous since he helped to put in there but this is what we see people when they're criminals they get paid off when you're a customer you get screwed you're a sucker so what is this going to stop we don't know but as far as i'm a global goes we're going to talk more about this with futures and options industry veteran mark in the lead next week he's been investigating m.f.

global so be sure to stay tuned for him among certain lineup of other great fantastic guests but for now that's all we have time for that's it for our show thank you so much for tuning in do you not get to follow me on twitter out lauren lyster and give us feedback on the show at youtube dot com slash capital account but for now from everyone here at the show happy friday thanks for watching have a great weekend and a great night. home .