the great depression. unemployment in spain, they're celebrating and things are getting really good, the unemployment rate is only 20%. youth unemployment is only 50%. that's because one of the great things about europe, you can move easily so the reason unemployment rate is only 50% is that a lot of the unemployed young people have moved elsewhere in europe. in greece, the youth unemployment rate is 60% in and the gdp has gone down by 25%. no matter how you look at it, even the best-performing country, germany would be graded a d by any standard if you weren't grading on a curve. if you look at what's happening to large parts of germany, citizens are doing very badly. from an economic point of view, it's clearly not worked. : it had the most poorly behaved financial sectors but they recovered fairly quickly and one of the reasons is they have a flexible exchange rate. and then worse, after they have taken away the mechanisms of adjustment, they tied the hands of the european countries even further and said you can't stimulate the economy to fiscal policy. you can't have more than a 3% deficit. you need to focus just on inf

so the reason unemployment rate is only 50% is that a lot of the unemployed young people have moved elsewhere in europe. in greece the youth unemployment rate is 60% and the gdp has gone down by 25%. no matter how you look at it even the best-performing country, germany would be greeted a d by any standard if you are not grading on a curve. if you look at what is happening to large parts of germany, large fractions of the economy and citizens are doing very badly, their incomes are going down. from an economic point of view it is clearly not worked. the reason is actually very simple. when he he formed a single currency you took away two of the ways economy six set and societies suggest when you get hit by a shock like the global financial crisis from the united states. you can lower the interest rate, you can lower the exchange rate, and that leads to more exports and that helps your economy grow. so iceland for instance where is a very small country, but iceland had one of the biggest crises. it had one of the most poorly behaved financial sectors. but they recovered fairly quickly. one of the reasons is that had a flexi

the youth of employment in countries like spain, 50%, greece 60%. you know, our students sometimes complain about the difficulty of getting a job. but can i imagine year after year. eight years where the youth unemployment rate is more than 50%. you know, so and that's after students leave the country. and so you have some of the more talented people leaving the country. so you're getting a hollowing out. so the growth in these countries won't ever catch up, probably. >> so then in the uk, not part of the monetary union but part of the eu, do they have it rb right? is brexit the acknowledgement of some of these flaws you're diagnosing? you're spotting here? >> yes. as you said, uk was not part of the eurozone. and so it doesn't suffer from the worst of what was going on. but did suffer in a couple ways. one was you know, the migration crisis is all in the news. and one of the problems is that because of the euro, so many of the countries in europe have high unemployment and when there's high unemployment, they don't want to have more migrants. and the migrants don't want to go to a country where there's a 20% unemployment rate. >> and this is really become in many ways germany's problem for the past few year

the crisis countries like agrees -- greece, portugal and ireland. unemployment in spain, things are getting really good, the unemployment rate is only 20% and youth unemployment is only 50% and that's because a lot -- one of the great parts about europe, you can move easily so the reason unemployment rate, youth unemployment rate is only 50% because a lot of the unemployed young people have moved elsewhere in europe. in greece youth unemployment is 60%. gdp has gone down by 25%. no matter how you look at it, even the best-performing country, germany, would be graded a d on any standard if you weren't grading on a curve. if you look at what's happening to large parts of germany, large fractions of the economy are citizens are doing actually very, very badly, their incomes are going down. so from an economic point of view it's clearly not worked. the reason is actually why is very simple. when you formed a single car insurance -- currency, two of the ways that economies and societies adjust when they get hit by a shock like the global financial crisis coming from the united states. you can lower your interest rate, you can lower your exchange rate and that lead

the youth unemployment in countries like spain -- >> tremendous. >> 50%. greece 60%. our students sometimes complain about the difficulty getting a job but can you imagine year after year, now eight years where the youth unemployment rate is more than 50%. and that's after students leave the country and so you have some of the more talented people leaving the country so you're getting a hollowing out so the growth in these countries is not going to ever catch up, probably. >> so then uk not part of the monetary union but part of the eu, do they have it right? is brexit ultimately the acknowledgment of some of these flows that you're diagnosing? you're spotting here? >> yes, i mean, as you said uk was not part of the eurozone so it didn't suffer from the worst of what was going on but it did suffer in a couple ways, one was, you know, the migration crisis is all in the news, one of the problems is that because of the euro so many of the countries in europe have high unemployment and when there's high unemployment they don't want to have more migrants and the migrants don't want to go to a country where there's a 20% unemployment rate. >> and this is really becoming in many ways germany's problem for the past few years a

if you look at the youth unemployment rate, it's so high for young americans graduating college. $35,000 in student loan debt. so there are big problems facing millennials and facing recent graduates. so i think they want to hear about the issues. i think they want to hear about how they're going to turn this economy around and create opportunities. >> i was at the airport yesterday talking to a fox news fan. he was talking about how he's going to vote for trump but his son is going to vote for hillary because he's going to graduate with a great university this year with $14,000 in college debt. the kid believes that hillary clinton is promising to erase the college debt, so that's how she's going to wind up with his vote. >> well, she's been able to at least get some part of her message out with that -- with the college education. >> but it's not true. >> well, she's got a plan. trump doesn't. >> okay. >> but i do think, look, a lot of the frustration here is this is a generation with their whole future ahead of them. they're not feeling very good about that. they're not seeing

the big issue of structural reform. the unemployment rate especially for the youth is shockingly high.t will change without meaningful reform. the question is can that reform happen within the current political setup up. we have our doubts. the anc has been in power for quite a long time. thank you for taking the time to come speak with us. joining us from capital economics. we continue our discussion with gordan. let us stay in the e.m. saudi arabia is facing a bear worst with when of the situations there. youssef: this has been nothing short of remarkable the route that saudi stocks are experiencing. you lined it out. since a financial crisis. take a look at this chart to get a sense of the scale of pressure this market has seen. since april it has lost 21%. since the announcement of the austerity measures. it has been the worst performer globally. ten-day volatility is the highest in the world. what is driving this? the announcement that they would cut back on bonuses and of allowances. government spending is a key driver of the saudi economy on the back of oil revenues in the past.

let's just look for example at the condition of our youth and our younger generation. not only the sky high rates of unemployment they are facing. the incredible skyrocketing of the cost of college education. that 43 million young people are locked into predatory student loan debt with no way out in the economy as it exists with low-wage part-time temporary jobs. having become available since the wall street crash. muchrecovery is pretty limited to the upper 5% to 10%. a few changes around the margins. this has not been a recovery for everyday people. speaking to the climate crisis falling on the shoulders of young people. the only campaign speaking to the endless wars making us less secure and bankrupting our budget. the only candidate that will bail out young people the way and democrats and republicans in congress bailed out wall street. it's about time for us to bail out the victims of wall street. the younger generation trapped in predatory student loans debt. i encourage people to go to my website to be a part of this movement. 43 million young people are locked into debt. that is a winning plurality of th