congress over its plans to impose austerity measures of part of a bid for help from the international monetary fund the i.m.f. on wednesday the argentinean senate voted thirty seven to thirty to pass a bill limiting the president's ability to raise some utility rates mr marson vote vetoed the bill which is economy minister claimed would add three billion dollars to this year's budget deficit the president seeking to impose austerity on argentine finances in order to please i.m.f. negotiators as he seeks a thirty billion dollar loan this week he unveiled a plan to cut the twenty eight hundred physical budget to two point seven percent of the g.d.p. the i.m.f. reportedly may demand an even more stringent limit of two point five percent as a condition of the loan. and the latest episode of the week's political drama in europe has resulted in the fall of one government and a second chance for another in spain prime minister maria rae hope of the conservative people's party or p.p. was ousted as a pro a mentor a vote of no confidence after

a long running corruption scandal involving bribes to politicians from the p.p. in exchange for public contracts in the first the prime minister is the first to be removed since spain became a parliamentary democracy in one nine hundred seventy seven and in italy the president has approved a revised government slate from the alliance of the ouster five star movement and hard right lig president sergio vetoed the first slate because he said the proposed finance minister wanted to abandon the euro the controversy of trying to racial picked for the finance post was then moved to european affairs much apparently reluctant to be to a second time relented and the coalition's prime minister was sworn into office safdar noon and now we take a little economic tour of a few trouble spots to help guide us we are pleased to be joined by an eminent expert the co-director of the center for economic and policy research and the author of what's a books they mark failed what the experts. wrong about the global economy fantastic

mark weiss right mark thank you so much for being here i want to get to a couple other countries that but first of all what about what you think about that headline about italy well i think some of it's exaggerate i don't think there was a real threat even if that finance minister had been appointed and accepted that it was going to leave the euro and the the other thing that i think people don't understand is that this is the brief economic crisis that you had where the tell you the yield on the talian two year bonds shot up and that's what put this on the front page of the new york times and all the business press as well you know the head of the european central bank has control over that if he wants to he can do what he did back in july of two thousand and twelve just say we're going to do whatever it takes whatever whatever to say and that would be in the end of it so he was using that pressure and there are reports in the italian press that he actually spoke directly to the president and said that that finance minister was unacceptable so this is this is part of the problem there of course i mean this is

why the populist made such a huge thing out of it saying you know we get an election and the european authorities once again are telling us what to do regardless of how the voters vote so there's that fundamental conflict but the thing is it's so hard politically for any government to leave the euro they're all afraid to do it and you don't have popular support for it yet either and so i don't think you know the reason they reached this agreement partly is because people were saying that if they went to an election in july or september. which was the alternative if they couldn't reach agreement just now. then this would be a referendum on the euro i don't think that's true the you know italy might be better off leaving the euro but there's no there's not enough popular support for any politician to do that well i you know to some extent you could media gets all freaked out when somebody they don't expect to be elected gets elected not happen

certainly italy let's move across the ocean and go to our argentina in the present was elected there back in two thousand and fifteen. international investors said hey let's put some money in there let's buy these hundred year bonds that's not worked out so well the economy is in a shambles as we just reported. the total shambles but not doing great the investors are going make their money and the government is trying to get this big loan from the i.m.f. what's going on well one hundred one hundred year bond you mentioned that was an active real hubris i mean you know you can't hold a hundred year bond to maturity so what happens as soon as the trouble hit the price of those bonds fall and those investors take a loss but i think you know in terms of the overall picture the government borrowed went on a foreign borrowing spree and that's the big thing you know if you borrow domestically that's you have your own currency but when you borrow foreign and you run a current account deficit which they have about thirty one billion dollars which is

about fifty three percent of their export earnings so that's like a trip it's mostly trade current account deficit and they and then they they increase their foreign debt from like sixty three to one hundred eleven billion in the short time that he's been in office and that's a certain point the foreign financial institutions they were buying the short term debt just said they just said no we're not going to buy this that was around may first and then you got this crisis and the government jacked up interest rates to forty percent to. keep them there and then they also wasted about ten billion dollars trying to keep the peso from falling so there are really mismanaging everywhere and the kicker is to bring in the i.m.f. you've got seventy five percent of the country in the latest polls they don't want the i.m.f. they have something like our great depression from one thousand nine hundred eight to two thousand and two where the poverty rate one figure scared as heck to go back

to that yeah they really are a let me let me just switch i just got a couple of minutes left brazil big truckers strike their people out in the street protesting high energy costs what's going on well there i mean there's a lot going on in brazil i think that part of it is certainly made things worse for the come in they settled with the truckers and so they're going to compensate them for the losses or are there some other union officials or say they may strike yeah there well there was there was the truckers and then there was the threat all right there as well of a strike but i think the government is in trouble in so many ways i mean first of all they put the most popular politician in prison right now. evidence that was really i mean to say it's weak is really an understatement they didn't really have any material evidence against him it was all based on the testimony of a plea bargain witness who was threatened and who was you know the plea bargain

that goes years were cut off until he said what they wanted to say this is a little of the silver though who left office with eighty seven percent approval and he's in the polls he would win the presidential election in october so nearly half the country thinks this is illegitimate and he's being railroaded by the media and the and the in a very partisan politicized judiciary that's a real problem they're going to have because they're it's not clear that that election is going to be seen as legitimate and then you have this very weak economic recovery which now that for the economists are lowering their forecasts for after they had a very deep recession done. digit unemployment and so this is again another example of a right wing government that is unpopular for so many reasons but they're also messing up the economic policy in ways that will make them even less capable of winning an election in the fall mark weisbrot boy what great information i hope you come back we could dig into this a lot deeper we need to we need to spend more time on it thank you so much for

being here thank you for appreciate it. and before we go in true but unfortunately troublesome form this morning president trump tweeted the news about the jobs report ahead of the official release and some say it may have violated federal regulations prohibiting government officials from disclosure in advance of the official release and let me be clear that by notice it is a violation of the office of management and budget systems to kill policy directive number three i dealt with this sort of thing for many years in government and they lock these types of numbers down there and secured rooms and the reason is a pretty simple there it's super sensitive and the release can and do impact markets and here's what occurred today everyone was waiting for the release which

takes place at eight thirty am eastern time but the president tweets at seven twenty one writing looking forward to seeing the employment numbers at eight thirty this morning and as predictable as the sun rising in the east the bond markets reacted and yields on the ten years increased by just over a percent it is a percent a big move nope but there were winners and losers people lost and won money and the president violated the law and as a guy who worked in government for thirty years that was my career i mean it always upset me that when a fellow government colleague did something stupid much less violated the law but what is even more disconcerting in this is to ensign also true to form is that the president's press secretary sarah huckabee sanders defended it by poorly tap dancing on the head of a pin get this to direct the directive which the president violated by just a typical policy directive number three says quote employees of the executive branch that's him he's the president shall not comment publicly on the data until

at least one hour after the official release time and miss sanders says all. the president was allowed to tweet because he quote didn't put the numbers out but guys he did comment publicly on the data by tweeting that he was looking forward to the numbers and that let traders know that the numbers were good right so his staff should simply insist sir step away from the numbers or don't let him have them in the first place and the inspector general the labor department should be right in there certainly looking at some of these security issues and what they call the lock downs of three hold all these numbers i want to be positive on the president is good on things and doing good things for the country and there is some that we talk about on the program but jus slow which is you shouldn't violate the law and he can't pardon himself. that's it for this time thanks for watching be sure to catch boom bust on you tube you tube dot com slash boom bust party we'll see that thought.

well you know the cars they were kind of adopted because we were called pirates for so long. i've been there in the small boats next to the harpoon ships and it's. not. the little self to be told fish already ninety percent of the dot and it won't become a. concept if things groups. pashtuns try to do it several times a day with a big fleet oh you get an idea why. we have to understand we can no space to just. be with this the deal for you ground. i'm doing this because i want the future

world to future generations to have and enjoy the ocean we have. who'll be the next to get the treatment that greece got from the troika the i.m.f. d.c.b. the e.u. they gang up they destroy a country for profit it's a it's a smash and grab and greece was destroyed they had a referendum and then they didn't pay any attention to the referendum they didn't want the troika to run and look at happened agrees to turn it into a pit it turned into a shelter into garbage. now the same bankers are getting together because they need like a shark always something to destroy to eat consume so we were trying to figure out would it only be next or spain and i think were the two likely candidates so i

guess as we've been saying that for five years that this was coming and i guess down italy will be the next meal for the i.m.f. . and in many european countries several companies believe that the shed should get out of this was sanctioned then come to something that was due to take months let's be honest and book about to do the see the final decision on d.c. sure. has to come from watching. those. fees utilizing weened utilized you'll do three rules. of. radially reinforced rammed earth bricks is what they really are.

this more than seventy houses about one hundred forty people with families living here. it's really a way of forming say a man. police their sons coming in and heating their house and being stored in massive walls. sagebrush is the natural environment here but as we're containing the sewage and using the plants sort of to process the sewage we create our own little way system here. international in the headlines this morning the u.s. blocks a u.n.

resolution calling for the protection of palestinian civilians on the gaza border after months of deadly clashes with israeli soldiers. letter was given to me by. foreigners would you like to see what was in that letter. with how much how much how much. money from the leader of north korea donald trump says that a much anticipated summit between washington and pyongyang will take place after all. the story about a florida jury awarding on a four cents compensation to the grieving think the family of a black man who was fatally shot by police. good morning live from moscow this is our international.