it's called the work is all puerto ricans. the fact that the police chief of puerto rico would say that one of the clearest expressions of empire. so that was where the story about pedro campos became highly joined with the story of puerto rico. because his life was come his life in fact was defined by his leadership, the leadership role that he played in the agricultural strike. because it was then that the violence begins and it was then that the charges of sedition and spears against the united states, he ends up spending 25 years in jail. from 1936-65 is 29 years. so shortly after the agricultural strike, he's in jail in 1936 completed the math. that leads in far years far years outside. those far years he was surrounded and followed by a platoon of fbi agents for her five around the collector to maintain troop strength get to about 20 fbi agents assigned because it's around the clock. 20 fbi agents assigned to one in october that when of that when he got out of jail in 1948 after having spent the first 10 years in jail, in

in the history of puerto ricans have ever had.r did albizu campos when he was incarcerated, lolita lebrón when they were released. now, to understand a little bit of our history, you got to understand that we have done this before. we have had presidents that have released puerto ricans that opposed the government before, so this is nothing new for president obama to do. >> give us an example of -- >> well, for example, president clinton. president clinton released 13. now, eric holder -- eric holder was the attorney general, and eric holder was also the attorney general for barack obama. so, barack obama is also from chicago where oscar is from, so barack obama is very aware -- >> you think they know each other? >> i am not saying that. what i'm saying is that -- i'm saying that the president knows of the situation because it's been on his desk since he was a senator in chicago. so, it's been on his desk, so he knows about this. i mean, obama can't pass a health bill, so that's how politically this world is for him, but the only

puerto rico cannot turn the lights off in the puerto rican community. his is a time for the federal government to assume its responsibility. they cannot continue to turn their face the other way while all these corporations can to puerto rico, ripped profits, and didn't create the type of infrastructure that was needed in order to get economic growth, long-lasting economic growth. and that is the reality of the people of puerto rico are facing today. section 936 that provided tax reference for american corporations to come and do business in puerto rico, and basically, there was no oversight mechanism to make sure that the promises that were made , happened. and it didn't happen. there was not the type of investment that produced the type of economic growth that was required. amy: what are the companies? >> pharma, the manufacturing sector -- they are gone. juan: and they are gone after the republicans encumbers illuminated section 936 benefit which i think ended in 2006. rodrigo has been in a population decline and economic collapse since then. >> basic

puerto ricans have labor mobility within the u.s. there's been an exodus to actually they call it a brain drain, out of puerto rico to come to america for employment. there is labor mobility for greece within the eu. in terms of currency, puerto rico doesn't have control of its own currency. they use the u.s. dollar. whether greece has control or not at least they have some representation at the bank but we feel that the greek economy isn't very well synchronized with the europe as a whole. fiscal transfers eight big point a difference. about 24 25% of personal income in puerto rico comes from fiscal transfers from the u.s. government. the biggest fiscal transfer to social security but there's also medicaid, medicare, food stamps, veterans benefits many things in the. so that provide some support. and furthermore if you think about it, within the u.s. federal system, u.s. citizens don't really care if new jersey pays more than alabama into the federal government. there's not a huge groundswell of opposition necessary for making paymen

puerto ricans have labor mobility within the u.s. the brain drain out of puerto rico. there is labor mobility for greece within the e.u. in terms of currency, puerto rico does not control of its own currency with the u.s. dollar. whether greece has control or not they have representation at the bank. the economy isn't very well synchronized with the earth as a whole. fiscal transfers is a big point of difference. about 24% 25% of personal income comes from fiscal transfers to the u.s. government the biggest fiscal transfers social security but there is also medicaid, medicare, food stamps veterans benefits many things in there. that provide some support. furthermore, if you think within the u.s. federal system u.s. citizens don't care if new jersey pays more than alabama into the federal government. there is not a huge groundswell of opposition necessarily for making payment into puerto rico. greece on the other hand it limited fiscal transfers and custom transfers her near a period in terms of economic growth or decline puerto rico has had to. that decline that they a

i am also of proud -- a proud puerto ricans. don't understand why and puerto rico we have 78 mayors for 3.5 million residents. why haven't political personnel made the adjustments needed to beat this crisis? guest: actually joseph, we do have 78 municipalities, but we have no counties. we should not have counties in puerto rico given that we have so many municipalities. what we have to do at the municipality level, the city level, is to make sure that small cities use resources from bigger cities. that we do not have as much bureaucracy and each and every one of those musicality. that is something that we need to be looked -- to do looking forward. but the central government and the municipal government of puerto rico is too large for the size of our economy. we need to grow our economy grow our private sector, and make sure that our government does not grow. we have to use technology and make sure that we do not have as much bureaucracy as we have right now. but the answer would be to streamline the government of a lot of those

the puerto rican detonated a bomb in a wall street restaurant that killed. several of these groups: a half-dozen a dozen. >> and there was truly awful ask. their cause was independence for puerto rico. >> liberating puerto rico. but the bombing that they undertook this kind of the very much for your tourist attraction that were george washington said farewell to his troops. they did it with a lot. >> propane tanks. >> and killed six people. >> for. >> happy are chicago. seventy-four to 81. the story which i'm fairly sure it is the 1st time i read it in this detail they came out of a high school in chicago. most of them were counselors and teachers. the community activist who got -- the interesting thing about that means also in concert distinction to violent political terrorists today. these folks within the mainstream the left or even the liberal mainstream supporters apologist. the most striking thing in the book and why the story is important is because they had the sort of 80s and betters. what was striking was the response of the episcopalian church. the

there are more puerto ricans in the united states. ironically now the politicians who have ignored themselves, they are having to become independent on the peurto ricans here in the united states. playing a major role in bringing attention to the problem. we have four puerto ricans, who are voting members of congress. they basically full members of congress. racing the issue of people who have a hand on lavan door. they have been going around talking to people, mobilizing, but it's a kind of thing where it's an uphill battle. the u.s. congress has a bill making porto rico eligible. engine happened, people have noted the idea of having a financial control board being established to oversee the recovery of peurto rico, they anywhere. >> stay with me. when we come back, sustainable peurto rico, what should the relationship between the united states and peurto rico look like in 2020, 2030 and beyond, allowing the island to live in dignity in years to come, and avoid a repeat of the crisis. drowning in debt is tonight's "inside story". >>>

so finally, puerto rican debt is unavoidable. he question is what is the mechanism and this is very the bankruptcy debate comes into play. puerto rico ought to be able to do the same name that u.s. municipalities can under chapter nine of the u.s. bankruptcy code. there are some unique aspects of the issue which raise big questions about whether or not puerto rico should be allowed to adjust its debt under chapter nine of the bankruptcy code. make a 10th as it's not going to happen. order rico has to find out other ways through negotiation with its creditors. think argentina. with that thank you and look forward to our discussion. >> thanks bert. whitney. >> thank you very much. it is a pleasure to be here and talk about this comparison between greece and puerto rico. we have heard by now pretty well but the nature of the problem is. in each case we have a large debtor in a currency union without economic growth and a noncompetitive economy and with lots of structural impediment in the economy and the fiscal deficit and many struc

municipal bond funds that have puerto rican debt in them.ns and cities in america where the treasure who are cio has bought puerto rican debt. furif you're a creditor what are your better options? >> earn isly extension would be a more amenable -- >> haircut is the last thing you want. >> absolutely. absolutely. it is clear that right now there is at at g.o. level, meaning the general fund of puerto rico there is a million dollars of debt service. then you throw in other quasi governmental entities it can add up. extension does kind of make sense in this context. >> bottom line is there a way the american taxpayer mom and pop in iowa will be liable for any puerto rican debt obligations? >> congress has made clear there is no appetite for a bailout. >> andrew if the worst case scenario in your views happens, that's a haircut, will that have ripple effects in the municipal bond market? could we be seeing the effects felt on other municipalities around the company with stocks they may own? >> there's concern certainly with illinois which is als

puerto ricans float. right? like a puerto rican float just up and down the i-4 corridor. right? >> i remember you tweeted in 2012 when the results were coming in from central florida. you said, and i almost remember your tweet. and we felt like it was sharing. you tweeted that democrats are popping their cork right now, if you recall. and when those returns started coming in. because as florida goes, very often the nation goes. >> that was a long night that night. >> it was a long night. but the dye was cast pretty quick. >> how about this? what issues should americans be concerned about when they go to the polls this election cycle? with the rise of isis we all know national security is certainly on a lot of americans' minds. but is it the top priority? what do you think, dana. >> it's not the top priority according to the polls. it's always about the economy. it's the anxiety people feel about their children not having as good a lifestyle as they've had. this is feeding all of the economic anxiety. so whoever can convince people that -- >> who is that? >> who is going to be ab

puerto ricans float. right? like a puerto rican float just up and down the i-4 corridor. right? >> i remember you tweeted in 2012 when the results were coming in from central florida. you said, and i almost remember your tweet. and we felt like it was sharing. you tweeted that democrats are popping their cork right now, if you recall. and when those returns started coming in. because as florida goes, very often the nation goes. >> that was a long night that night. >> it was a long night. but the dye was cast pretty quick. >> how about this? what issues should americans be concerned about when they go to the polls this election cycle? with the rise of isis we all know national security is certainly on a lot of americans' minds. but is it the top priority? what do you think, dana. >> it's not the top priority according to the polls. it's always about the economy. it's the anxiety people feel about their children not having as good a lifestyle as they've had. this is feeding all of the economic anxiety. so whoever can convince people that -- >> who is that? >> who is going to be ab

the puerto rican authorities recognize they may have overstepped and back tracked. all puerto rico's debt due today was paid almost unthinkable three days ago. china's government wasn't going to let its stock market fall too quickly. i don't think the decline is done there. i don't want you to be in china. it's a lot less disorderly. suddenly the woods had sunlight. the market opened sharply higher today. just like monday morning when i said it was overdone i'm not crazy about huge openings. buyers who pay up think we are out of the woods. again, you are never out of the woods when you own stocks. there is no all-clear for stocks. never has been. i've been doing this since '79. there is no all-clear. they don't morph into cash when things get clear. frankly i thought the euphoria of this morning was as foolish as monday's negativity. i look at openings as the mirror images of horrendous closes. there are times you want to go against the crowd. even if this was a situation where we had real systemic risk meaning the global financial order was at stake, which it's not,

there is a puerto rican flag on the other side. >> i am not sure the i-4 corrid >> there is a puerto rican float, right? just up and down the i-4 corridor, right? >> i remember you distinctly tweeted in 2012, when the results came in from florida, you said and i almost remember your tweet. we sounded like we were sharing it. you tweeted that democrats are popping their cork right now, if you recall, and when those returns started to come in because as florida goes, very often the nation goes. >> that was a long night. that night -- >> it was a long night, the dye was cast -- >> and with the rise of isis, we know that national security is certainly on a lot of americans' minds. >> it is not the top priority, it's always the economy and about the anxiety that people feel about their children not having as good a life-style as they have had. this is feeding all of the economic anxieties, so whoever can convince people that -- >> who is that one -- >> who is going to be able to convince them? it remains to be seen, none of them have been very specific. all of them say let's bring our coun

i am also of proud -- a proud puerto ricans. don't understand why and puerto rico we have 78 mayors for 3.5 million residents. why haven't political personnel made the adjustments needed to beat this crisis? guest: actually joseph, we do have 78 municipalities, but we have no counties. we should not have counties in puerto rico given that we have so many municipalities. what we have to do at the municipality level, the city level, is to make sure that small cities use resources from bigger cities. that we do not have as much bureaucracy and each and every one of those musicality. that is something that we need to be looked -- to do looking forward. but the central government and the municipal government of puerto rico is too large for the size of our economy. we need to grow our economy grow our private sector, and make sure that our government does not grow. we have to use technology and make sure that we do not have as much bureaucracy as we have right now. but the answer would be to streamline the government of a lot of those

the puerto rican legislature hasn't approved the money.y're also trying to apply for chapter nine bankruptcy just like u.s. cities. puerto rico is $72 billion in the red. and those are your top headlines. google's second-quarter earnings or topping headlines. large coryditor at johnson has more. ory: first of all, the quarter looks really strong and business is growing at a really nice haze and getting more and more profitable. a lot of the numbers look really good and one of the numbers that really demonstrate how much people are using google and how good it is to be google is that cost per click number, so the click growth. so the this is increasing at a pretty dramatic pace, actually. cliques have been increasing in cks have been increasing in the 26% rate, but this quarter shows an 18% growth in clicks. joe: and another news -- and in other news. ♪ and they are getting worse, a lot worse. when we shifted from desktop to mobile, the value of the clicks would go down, that once we had been a mobile for a while, we saw the degradation of

four puerto rican borrowers are due to make debt payments tomorrow.ther they can all do it is not a sure thing. some $700 million is due august 1st to creditors to the island's tax authority. just hours ago we learned that the government development bank which owes $169 million tomorrow is posting that money on time. but questions linger over its subsidiary unit the public finance corporation which is widely expected not to pay on time. if the corporation doesn't make its debt payment as expected by early next week ratings agencies are likely to throw it into a state of default even though technically speaking it is merely a non-payment due to lack of available funding. but it is bad for the island citizens who make up three-quarters of the ownership of the bonds most likely to go unpaid. what they'll do from here not clear. lawsuits are always possible but in the meantime a restructuring in which the borrower gets a debt break and the investors get something for their money may be the more viable option. in terms of the bigger picture, there is talk

when i showed this number to our colleague, thank you he said that the puerto ricans don't have to pay federal income taxes so they can pay more to service the municipal debt. nonetheless, there is a huge level of government debt in puerto rico. as of today something the greek and puerto rican government have in common are standard & poor's come in with standard & poor's on the panel, so using their ratings are asia ratings of ccc- with a negative outlook for the government of greece and ccc- with a negative outlook for the puerto rican government. of course, when you have a negative outlook, there's one step down is the fault of various kinds. and it is important always to remember that although people talk loosely about the death of greece and the debt of puerto rico, in all cases -- debt to russia were talking about the death of the government, it's the governments of debt that is at issue. and in these cases it all boils down, ladies and gentlemen to alex pollock's law of finance, which is loaned which cannot be paid will not be paid. so the debate, therefore is really about how to

puerto ricans hold this debt as well. governing involves making difficult decisions.ime for governance. there are ways to get to liquidity here. matt: the concern is if they are not allowed to file chapter nine, they could end up the puerto ricans, like the greeks right now. you are saying they will also be hurt if they do because they will lose their ceiling. >> the rule of law is the distinction. we had a federal court struck down a regime. we have opportunities here to show that this is the united states protected territory that can handle restructuring regime in an orderly fashion. that is the distinction or the parallels between greece and argentina, are not important -- appropriate. this is a united states protected territory where the rule of law, no one wants anything other than the rule of law to prevail. matt: fascinating. stephanie: indeed it is. thank you. some scruff today and glasses and a whole lot to say. we have got to take a break. matt: when we get back, we will turn to another situation. forget about the break. let's turn to a very different debt s

. >> reporter: the puerto rican economy so dire he lost his business. >> you work for a lifetime to build what you have and all of a sudden you have to start all over again. >> reporter: now his family's uprooting to florida, joining a growing exodus to the u.s. mainland. governor alejandro garcia padilla says the island cannot pay its $72 billion in debt and is facing a financial death spiral. the unemployment rate already tops 12%, more than double the continental u.s. because it's a commonwealth, puerto rico can't declare bankruptcy like detroit did. the white house says no bailout. the crisis would also affect people outside the island. much of puerto rico's debt is held by unsuspecting investors. >> millions of americans without even knowing it own puerto rican bonds, and when they look in their bank accounts and in their 401(k)s they are going to see a number that is lower than it was before. >> reporter: trying to raise money, tomorrow the government will impose a sales tax higher than any u.s. state. 11.5%. as lawmakers debate a new budget. >> the problem is so big and has been go

there are nearly 340 muni bond funds here in the united states with exposure to puerto rican debt. 60% of puerto rico's debt are owned by muni bond investors here. these are household names. oppenheimer is a big player in puerto rican bond debt. american century, franklin temple 10, spdr nuveen, high yield municipal bond. this w3ll sort of be a rolling crisis. talking to muni bond investors if you see high yield, you want to see if puerto rican debt is in there. you will have whipsaw action and volatility. it will feel nerve-wracking as we go into this as they restructure the 72 billion-dollar in debt. doesn't count the 50 billion doll in health care liabilities. adam: some have 30 to 50%. unbelievable. a lot of retirees with the funds. emac, thank you. >> sure. liz: new chapter for the united states. historic deal with cuba after 55 years of contention. the impact on americans and american business. we're the business channel. coming up. adam: and the case of hillary clinton's missing emails. what new documents are he revealing about the presidential candidate. liz: plus those reruns

according to "morningstar" more than half of american bond funds own puerto rican debt. several dozen people stage ad protest yesterday. in front of new york hedge fund blue mountain capital over the firm's involvement in the puerto rico crisis. the group which is called hedge clippers claim hedge fund purchased large amounts of puerto rican debt at a discount which drove it into economic chaos, nicole. >> get you caught up on the markets. global markets, shanghai composite index got hit so hard, falling most in six years. here is the nikkei, kospi and hang seng all to upside with tune of 1 1/2%. shanghai down 1.1%. european markets and ftse, dax pulling back ever so slightly. that is up 1/3 of 1%. futures we're watching all morning long for hours. they have been sitting around the unchanged line. slightly to the downside. dow futures down about eight points. >>> bond investor bill gross warning that low interest rates could have negative impact on the u.s. economy. gross telling our own trish regan there is potential harm to capitalistic economy and the fed needs to act

erik: $.60 on the dollar could be what puerto ricans end up paying? peter: roughly. n ideal world for puerto rico basically. peter: that is the bottom line. they have all this debt that you cannot afford. how do you get out of debt? you either grow your way out or you were structure. from the point of view of citizens, it is the best route. erik: is there a opportunity here? in other words, what is the incentive for creditors to negotiate with the commonwealth as opposed to just being a hold up? peter: that is the interesting question and that is why i think it will be protected. there is no mechanism for puerto rico. they cannot utilize chapter nine. that's what you saw in detroit. they cannot force it down. can they really get creditors to the table and a very diverse set of creditors to the table to negotiate what everybody expects to get? erik: what do you think? peter: i think it will take a lot of time but if you look back at new york in the 1970's, i don't know if it's the analog but if you look at the federal oversight board being appointed, many things happen

>> that is what he is calling for. >> there is a huge puerto rican population in new york city. >> hee pandering but not saying hand the mullah blank check. the question is this. states don't have chapter 9. he is giving to puerto rico extraordinary powers. >> let me point out the hedge fund will benefit from this. get them available for some sort. a benefit. we are going to see you at the top of the hour, thank you. the obama administration wants prisoners to be eligible for federal pell grants and hold your taxpayer money following them to jail to educate criminals. both sides of this issue after this. your taxpayer money following >> how do you like this? the obama administration is set to announce a new initiative this week that would give free college age to prisoners in the form of pell grants which don't need to be repaid at all. free money. how much more money will this cost you the taxpayer? will this initiative actually work for the image we are asking david of the heritage foundation and michele of the center for american progress. starting with you, i don't like the idea o

the puerto rican situation factoring enterprises already.ould suggest that an investor want something relatively safe, it's a good example. >> let me ask you because you said something in an earlier conversation, that these markets are dependent on investment. you are absolutely right. hillary clinton live. she has proposed an increase in capital gains, making it so the investors would have to hold on investment for as long as six years in order to get the beneficial 20 percent tax rate, otherwise they pay a much higher rate. what would that do to the markets? >> i don't thinki don't think it would do much. it would encourage investors to hold their investments. and the investment problem is one in which corporations themselves have very little opportunity to invest money at an attractive rate of return. most corporations are buying back there own stock. a trillion dollars worth of potential purchases by corporations which help to elevate stock prices but don't go into the real economy. the economy and some type of incentive. >> you are talk

even in cases like medicare where puerto ricans pay full medicare taxes with their paycheck.ld say there is uncertainty tied to investing in what is and you described it very well. it is not a sovereign nation, not a state. somewhere in between. those are disadvantages and on top of that, the jones act. legislation that requires all shipping between two u.s. sports be done on us-made affects an island a lot more than the mainland. the situation seems to have gotten lost in this conversation about what is going on in greece. are there similarities between the tuition increase in what is going on in puerto rico? governor: in both cases there is a need for fiscal controls and transparency. having said that, greece is a sovereign nation where is puerto rico is a u.s. territory and in that sense, there are major differences. the sheer size of the greek thantion is much larger the puerto rico situation. humala securities have sold at distressed levels for two years on concern that puerto rico will let be able to repay its debt on time. what message might you have for investors who

i can't say wait, stop, i'm puerto rican. [laughter] you got the wrong guy right?ughter] that wouldn't make a difference, right? and so the only thing i'll say the historical backdrop against which it occurs is people are separated psychologically by those of power and how it plays out. that's all i'll say, throw that comment out there. >> i think the immigration of large numbers of well-educated people from africa and to a certain extent from the caribbean is going to make a big difference in the ethnic -- i mean already makes a difference in certain places like my new jersey your new jersey that immigrants are less burdened by the tragic side of african-american history. and i think more able to take advantage of the tremendous opportunities of american culture. i mean, this has been true of immigrants no matter where they come from. they tend to say well, here's something i can do, and i'm not going to deal with all this other stuff. let me just go do what i need to do. so there's an advantage in energy terms for immigrants no matter where they come from. >> alt

a puerto rican agency has failed to send funds needed for bond payments. the island's legislature has not appropriate the money. chuck schumer and richard blumenthal propose that puerto rican agencies be allowed to file for chapter nine bankruptcy protection like u.s. cities. puerto rico is a whopping $72 billion in the red. goldman sachs posted profit that fell 49% from a year ago. the firm has much higher legal costs tied to a potential settlement of mortgage-related investigations. revenue at citibank fell, but so did operating expenses. ceo michael corbat has been selling businesses and getting out of consumer banking in more than one dozen markets shares are up 3.5%. mark: ebay is selling its with a price tag $925 million. the online auctioneer reported second-quarter sales that be analyst estimates on the of its breakup from transaction business paypal. investors are eager for indications on how ebay list of on his own after paypal starts trading as a separate company monday. ebay has suffered with user growth after a major debt of the last year. --

pimm: if you happen to hold puerto rican debt, what do the experts tell you to do? they holding on to it? it will be worth something maybe sometime or as part of a restructuring. laura: mutual funds will be shy to go in. the people who are interested in buying are people who look at recoveries and figure out a distress play. they can say, based on this probability i think i will get back this kind of recovery. olivia: what is the role for the federal government? laura: they could guarantee the debt, i think the biggest question we are seeing is congress coming in and saying, let's look at this and see if we want to do a chapter nine. and investors want to know if he should do a super chapter nine. it would allow puerto rico to do more than states are allowed to do in a gutsy court -- bankruptcy court. olivia: we will have you back on in the next couple of days, the story is not going away. pimm: we will be staying on order to go ahead. democratic senator richard blumenthal is pushing for a bankruptcy option for the commonwealth. backs the justice department probe in

heidi: they are caught between a vital constituency, the latino vote, the puerto rican vote in floridawhich is becoming a force of its own. on the other hand, wall street. folks like the koch brothers who hate this. they think it is a reward for financial irresponsibility. mark: there is some principle here, not unlike the situation in greece. do you want to let the people have a bailout? in the case of puerto rico, it is a quirk in the law. hillary clinton supports the move, but does say we cannot have a bailout. heidi: she has had to walk a finer line. o'malley and bernie, this is an easy one for them. for hillary and a lot of the republicans, the big donors watching this, and for whom this matters more for, it is so close to home. mark: chuck schumer is driving a bill pretty hard. heidi: absolutely. yesterday on the education circuit, marco rubio whipped out the pump. he wants students to pitch themselves to investors who can pay for their education. which claim will be a bigger winner? mark: i give rubio credit. he is making efforts to be a reformer on education. i think both of th

. >> three men and women believed to be members of the puerto rican nationalist gang that in november 1950 attempted the assassination of president truman opened fire from the visitor's gallery of the house of representatives. >> five congressmen were hit then jenson, davis, bentley of michigan who was seriously injured. the gun wielders goes the evil distinction of having perpetrated a criminal outrage almost unique in america's history. >> it was one of the most violent act that occurred in the chamber, and they were debates right after that. we can't let this happen again. we need to wall off the visitors gallery with bulletproof last so that this can never happen again again. and the more the members talked about that and thought about it, they said that's a bad idea this is the people's house and the people can't be walled off from the floor and from what's going on. the capitol building is a simple and that makes it a target. imaging the british burned the building in 1814. there was a bombing toward world war i by a professor who is opposed to american support for the allies. t

three to four years ago we looked at a puerto rican bank and didn't. vonnie: why not?of all the bad debt and the economy. it is hard to invest in an economy continuing to go south. of the other thing that is very important as the political situation and the government has not faced up to all of the problems. they haven't taken the steps that ireland did of cutting and laying off people in the government sector. a lot of things they needed to be done they have not done so it is hard to invest in a company like that. tom: greece has to get to a referendum on sunday, what does puerto rico have to get to or what does washington need to get to to get through the talk shows on san juan? >> the beauty of it is washington is not really here this week. one of the problems we're having right now is speaker john boehner is overseas on a trip with a congressional delegation so according to his staff he hasn't had any time to look at this. right now just to get took -- sunday you will not have congress weigh in on this one way or the other. republican leadership is not committing a

the latest was that puerto rican --ools close endocyte schools and fire teachers. it would be devastating for puerto rico. former employees are suggesting that puerto rico cuts its minimum wage by one., a country that already has 40% poverty. no one can survive on $2.13 minimum wage. amy: and the international olympic committee has chosen beijing as the host city for the 2022 winter games. beijing beat out the only other candidate city almaty, kazakhstan, in a vote friday. the four other possible cities -- oslo, norway, stockholm, sweden, krakow, poland and lviv, ukraine -- had all pulled out of the running. beijing hosted the summer olympics in 2008, amid a flurry of allegations over human rights abuses tied directly to the events, including forced evictions and labor abuses of migrant construction workers. and those are some of the headlines. this is democracy now, democracynow.org, the war and peace report. i'm amy goodman. we begin today's show in portland oregon, where law enforcement officers have whoved greenpeace activists spent 40 hours suspended from a br

senators suggest that the puerto rican businesses file for protection like u.s. cities. to rico, $72 billion in the red. and those are your top headlines. well, google's second-quarter earnings topping analysts, stock is up over 7% in afterhours training. cory has been dissecting them for us. you are focusing on that c.p.c. number. cory: the quarter looks really strong as businesses are growing at a really nice pace and getting more and more profitable and traffic acquisition costs are falling, numbers are looking good. one of the numbers that really demonstrates how much people are using google, how good it is to be google is the cost per click number, the click growth. the clicks on google's ads are increasing at a pretty dramatic pace actually, accelerating pace. so clicks have been increasing in the 20% range, 26%, 25%, 17%, and then they started picking up here, down at 13%, which is good, bam, this quarter, 18% growth in clicks, that's really good news for these guys. except -- joe: here is the catch. cory: the value of those clicks or ads are getting worse and a lo

you have got the puerto rican economy -- what is amazing to me, i did not know this, we had a 10% on rate when greece had a 10% unemployment rate. mike: and puerto rico still has over 10%. what is even more remarkable is the labor force participation rate in the united states, it is in the 60's. in puerto rico it is 40%. tom: why is that? is it the wage differential. mike: probably the fact that puerto ricans can move to the united states easily, so they cannot-- you can't find a job you leave. vonnie: you know who has done research on this? mike: alan krueger. tom: when you and i talked to chuck todd and he talked about the politics of orlando which completely affects the state of florida with a very large puerto rican population there because of the ease of coming to the united states. i look at that chart and i learned, i did not know the persistency of unemployment in puerto rico versus the united states. mike: the economy has not grown there since 2007. tom: this would be the number one story we would have if we did not have greece. let's get the top photos. a jobs thursday. von

but it's also true that is government safety net programs some puerto ricans -- it's not clear how bign effect it is. but puerto rico is part of the united states. it is an economy that doesn't have a good justification for having as many people in it as it does. they use special tax advantages which are largely gone away. in a world of supply chains to bring something to it and move it, that's how manufacturing is done -- puerto rico is an island with not great access and shipping expense because of the jones act is not a great place to manufacture. came along, you see what's happening in the dakotas and west virginia with the erosion of the coal economy. to see this is happening in some part of the united states, which puerto rico is, the problem is they did over borrow and as young working be believed for job opportunities elsewhere, they leave behind a lot of people who need benefits and they have not got a good fiscal answer. greece is not on the same scale. still ahead, how does greece actually make money? we will look at greece us both potential and the astonishing ratio of debt

amy: members of new york's puerto rican community rallied monday to protest a meeting between puerto rican officials and creditors over possible austerity measures to address the island's financial crisis. among those the meeting was former international monetary fund official anne krueger, who has backed sweeping austerity proposals, including cutting the minimum wage below $7.25 an hour and slashing subsidies for the university of puerto rico. protesters gathered outside the manhattan offices of financial giant citigroup, where the meeting took place. >> i live here in new york city. my parents and my family live in puerto rico. i am here with a bunch of others from different parts of the city and solidarity with the people of puerto rico, saying in one clear voice no, to the austerity plans been proposed by a former imf official by the name of anne krueger and no to the yesterday plants being pushed by the hedge fund owners and the managers in the banksters the created similar situations in greece, spain, and even in this country. amy: the saudi-led bombing campaign against houthi