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in most instances a way of paying back the last bailout that didn't work for the economy of greece now to be sure obviously greece is a bit of a different situation than the u.s. right and we have our own central bank we can essentially bailout selves out if we need to but do you think that we would ever see something similar if streets austerity measures were to come to the u.s. would we see people writing on the streets in the sense i mean are there are differences but i think the common theme is that you have a class of all of that are getting wealthier and the masses that are getting poorer and that extraction is moving the wealth from the bottom to the top and the same mechanism of what is at work involved. so you just you're just seeing the first symptoms in greece and greece has some of uniques problems that make that just report worse but of course you can see there that you think i think right so this is going to get greece where it needs to be before march right before they would default this time around so they can get this second allowance but is that still by any means going to

be lower. so actually, your loss as a lender to greece will probably be more like 70% rather than 50%. so big losses taken. as a result of this, greece should be able to get this bailout loan, bailout money of $130 billion. now, at the end of the day, that's probably a good thing for europe. for greece, the jury is still out. really, we're not getting any signs of growth coming out of greece. nobody can actually pinpoint a date when we're going to see growth starting in greece. and at the moment, the economy seems to be contracting at 6% or so this year. it's not going to get very much better, and with these kind of austerity cuts, it will probably get worse. however, for europe, it's a different matter, because i think what this does is it solves the problem for the next year or so, and during that time -- and already this is happening. you see the banks which have been rebuilding their balance sheet. there's no more worry about a collapse, because the e.c.b. has stepped in, pumping money into the system whenever it's required, to an infinite degree. and so, as a result of that, one fe

at length about this for many many months but william are you more certain tonight than that greece will be saying goodbye to the euro and the euro. i don't see there's any way that greece can sustain the conditions that the i.m.f. and the e.u. posed for taking the additional hundred thirty and doing the debt bringing the debt to g.d.p. down to one hundred twenty and a half percent by two thousand and twenty it's just not sustainable the austerity cuts on government workers the layoffs the cuts of pensions the lowering of the. economic growth rate to well it's now minus seven in two thousand and eleven and these terms will bring it down to double digit minus and that's just not sustainable how do they work and said that's a greece's exit will contribute to a potential failure of the euro and i thought that was the way you would self would be do you agree with that. well i think she's playing politics with this i think privately she knows very well that greece has got a got to be pushed out ironically the terms that the german government is imposing on greece's conditions for the hundred thi

s to be made greece could default the united states cannot be sold so there is a difference between between those two also when you are allowed between crees and we have to. find actually why and how do you deal with koreans it's not easy to suggest that somehow or other since all the countries in the euro zone who are allowed to borrow the banks were allowed to borrow at the very low interest rates and pile out. on government debt which was very little bit higher so they can make their profits this is not all to return now to say well we allowed this to happen but now it's time that the party's over and therefore the population has to pay for ok do it or a clearly a very significant matter london frankly because i think what's really interesting here is that the greek situation opposed it was like going on in the united states is it big greeks have just lost their sovereignty i mean like it or not it's berlin in frankfurt and brussels they're vanishing their economy and they're in there this is something that's really you know a stark departure from what people called the european union is

plenty of people on your show on the capital account who have varying opinions about what's being done in greece to deal with this nothing seems to be easy or pleasant in terms of this i interviewed peter schiff in the last hour he said you know what these cuts didn't even come close to going far enough the people of greece just agree they say their lives have been disrupted so much and the thought of having even more cutbacks. themes just unimaginable to them what are some of the people that you have on your show say in terms of what's been done over the last few months to deal with the current greater crisis what's more complicated i mean what. peter peter is correct in that greece suffers i don't think even knows how bad it is resurface from a humongous public sector that has been a drain on the economy because it's it's a it's basically a piggy bank for politicians or for everyone else who and all the way down the line and that's how it's been even since the time of the ottoman empire there's been this ingrained mentality and kind of this idea of patronage in the political system so it's not

s expressed outrage at the greek outrage build the german mass market daily is calling for greece to be kicked out of the euro zone i shudder at the thought of an act of violence committed against germans in greece or greeks in germany this is the kind of conflict that could easily escalate. entering into that equation the greek elections are on the horizon the same elections that german finance minister shall want to scrap we're already seen extreme far left and far right parties making huge gains in the polls in greece remember it was economic desperation in europe following the last republican great depression gave rise to extreme fascist governments and eventually world war two right now financial technocrats tentatively have the reins of government in places like greece and italy with an agenda that includes pain and suffering for their own people it may only be a matter of time before those technocrats are shown the door by an increasingly unruly and violent populace again just look at what's going on in athens and who might win the upcoming greek elections is anyone's guess hence

appreciate the notion at looking at some longer term investments because you could not be more right. we're not greece. and the world would not be lending us billions of dollars at very low interest rates if they thought we were even remotely. so that our challenge is how do we move forward over the next ten years to start bending the cost curve. >> yes. >> and i think you've got a number of things here that presumably, even republicans and democrats can agree on. i would like to zero on one, where there's been some support around this table, the chairman and i have worked on some agricultural reforms in the past. and they were even part -- one of the good parts of the budget. the administration proposes reduction in agricultural subsidies. i wonder you could elaborate on that a little bit. >> absolutely. i mean, it is a time of strong profitability in the farm sector. there are direct payments go to some farmers, even though they're not producing. crop insurance, the returns, the irr on crop insurance is too high. so there are opportunities to save about $30 billion by getting rid of these unnecessar

phases may be a decade of austerity and fuel in the political class believe that the plan will work. -- greece faces may be a decade of austerity and few believe the political -- in the political class believe that the plan will work. in the british streets of the port district, you know what it means when you meet one in five people unemployed, cutting health spending, cutting the minimum wage. this clinic, run by volunteer nurses and doctors, was a bridge to set up to treat migrants. now, one in three patients are greek like this woman who is a cleaner that has lost her job. >> i am here to get food and some vaccinations for my children. >> white can't you access the main -- why can't you access the main greek service? >> i don't work and my husband does not work. >> the government has taken another billion euros off of the medicine budget, meanwhile, in comes are collapsing. >> you have the same problems if you come from africa, india, or if you are a greek citizen. this is a whole new phenomenon for greeks because in the past, these people struggled for daily life, they had some problems,

more austerity measures that are connected to them the worse the economy of greece will continue to do which means it will be unable to pay back the bailouts this current bailout is really in most instances a way of paying back the last bailout that didn't work for the economy of greece now obviously greece is a bit of a different situation than the u.s. right and we have a central bank we could essentially bail ourselves out if we need to but do you think that we would ever see something similar if strict austerity measures were to come to the u.s. would we see people rioting on the streets in the sense we're going to. be differences but i think the common theme is that you have a class of all of arcs that are getting wealthier and the masses that are getting poorer about extraction is moving the wealth from the bottom of the top and the mechanism of what is at work in both. the so you just you're just seeing the first symptoms in greece and greece has some unique problems that make exasperate that worse but of course if you consider that do you think all things right so this is going to get greece where it

it's the moment of truth for greece as euro zone finance ministers gather in brussels to decide its future the french finance minister has hinted the outcome could bein athens as favor greece has met all of its creditors demands to secure the second bailout and is expecting to be rewarded with the euro zone's backing the country has already forced a massive new austerity package to qualify for one hundred thirty billion euros of rescue passion but there is now that funds could be paid into a specially set up account athens as access to it would be restricted and if it misses its targets the cash flow would stop the rage of the greek people however is only growing with every new political measure imposed as artie's jacob greaves reports. voting for morse there is something dubbed by greece's caretaker prime minister has a moment of historic responsibility a notion some especially the greek population feel has been lost on eurozone leaders. i feel disappointed and sad because these measures were imposed on us by foreigners and we didn't have a say as a greek people. but there is a wise old greek proverb that the person who borrows and borrows becomes

basically have the rebuilding of greece and it should be the i.m.f. that is running the program now the european banks the i.m.f. how's knows how to redevelop the country recants and to in greece's case they've lost productivity they've lost what we call economists call aggregate demand by just demanding austerity without a plan for recovery it's a plan for recovery that's missing that i haven't seen yet so bailout money then from the i.m.f. would be acceptable and would be effective. well the i.m.f. is the one that knows how to how to construct a redevelopment plan greece is sliding very quickly into being a third world country and the i.m.f. knows how to deal with third world. greeks themselves are very hard workers i mean just in the new york times magazine there were quoted figures that the greeks work about a third more it in terms of hours and the germans do they work very hard but it's very inefficient one number you can look at it did tell you what the problem is with greece is their productivity ratio the output for man hours woman hours work

meeting in november with angela merkel and i said to her look surely chancellor wouldn't it be better for greece to leave the euro to devalue and drag it some growth back into the economy wouldn't it be kind on german taxpayers for them not to have to sign blank checks in perpetuity why don't we let greece go and her response was very telling she said look we cannot let greece leave the euro because if she does leave they'll be other countries that want to leave too and that will mean the end of the european project so the reality here is that greece the country of greece and its people are to be put to the sold sacrifice if you like of the oil at the european olds are all in the name of preserving the european project and this is a project that these politicians have been working on for over half a century and they don't even know it's failing they don't want to let it go now the rhetoric coming from german politicians shows berlin may be losing patience with greece but the german parliament will also have to approve a second belo do you think they're proposing they're preparing for the public

policies are mad now greece is not alone in this situation we have a double dip recession now in portugal italy back in recession is the e.u. ready or even able at this point to be able to battle out all the states that are in dire straits briefly what i think the point about greece is that this is the second biologicals that we're talking about but she only comes to choose three percent in terms of size of the eurozone economy if we get to insulate we get to one of the biggest countries in the eurozone and in the european union and i don't think then we can print or invent another money to buy out italy italy is where this will end all right we have to leave it there nigel farage m.e.p. leader of the u.k. independence party thanks for your insight. take a look now at some other stories making headlines across the globe beginning in honduras a disaster at least three hundred prisoners killed by a fire sweeping through a jail tuesday night they were either burned or suffocated to death some inmates managed to escape breaking through the roof jumping out from the building an electrical fault is thought to have caused the blaze. in turkey police use rubber bullets

being a quick fix. it's a band-aid, buying time for greece. eir problems are so deep that it's going to probably take decades to rebuild the economy. christine lagarde and the imf, she was saying what this is about is increasing their scope to be more competitive. things that need to be sorted out, they need to reform the retail and financial sectors. they need to overhaul their wage systems. they really need to make their primary industry. we're talking tourism, shipping, trying to make those more internationally competitive. that's not something you can do, even in putting in an all-nighter over a 13-hour meeting. that's going to take decades. >> there's big massive reforms still to come. juliette mann joining us live from brussels. >>> still to come, the deal may be done. we'll look at how greece's bailout is playing out on the currency and bond markets. that will be next. [ male announcer ] lately, there's been a seismic shift in what passes for common sense. used to be we socked money away and expected it to grow. then the world changed...

deteriorating economy which is now contagion is sort of skipped the border and is sending a signal greece is clearly being made to punish as an example to other countries and the idea here is do what you're told you're end up suffering what greece is suffering so it's a demonstration of fact it's nasty on a human level and it's an efficient in an economic policy context from our maxim thanks so much for being with us tonight. my pleasure thank you so much for having me you know this budget fight is just beginning and of greece is any indication the direction republicans want to take us could get very very. white the rican reason mortgage settlement deal struggling american homeowners are still screwed questions are still swirling around last week's mortgage fraud settlement to force the five biggest mortgage lenders in america to cough up twenty six billion dollars pay for their high crimes in the robo signing scandal in exchange the banks are off the hook for future investigations into at least the robo signing part of that massive foreclosure fraud scandal that's not so bad but many are questioning the

e're >> and we're n not going to be greece. this budget achieves a sustainable level of debt as a r percentage of gdp. be a and we'll make sure this countrv continues to be a good place toe invest in. i believe in our workers, our e competitiveness. >> so does everyone in dghere. so the rhetoric, i wish your i budget matched the rhetoric thae you put forward. but i do appreciate you being here, you have a tough job. inte >> it's interesting for me, just as i have two points of reference as i listen to my colleagues go back and forth. one is to look at what is proposed on this by the the presidential candidates running for the republican nomination in terms of more defense spending, no revenue adjustments.ments, and even people like george will pointing out that it's just an absolute fantasy land and will t be fun to watch in the circ unfortunate circumstance if you have a budget reconciling what he was talking about with this impassion impassioned rhetoric. when the republicans were in charge, the bush administration, the repub

result of the austerity measures that are being taken that the only solution i see as probable is a complete. removal from the euro zone because let's look at greece as an example you stay in the euro zone one thirty six to the dollar is that going to be the sort of thing though is going to get your current account imbalance is that the sort of thing that's going to stop you from having more government deficits in the future no of course not what you really want is you want to devaluation and the only way you can get that is by leaving the euro zone and so ultimately when the time comes after huge austerity that these politicians are going to it's not going to be the politicians that we see today is going to be much more extreme politicians much more nationalistic politicians they will have amended to do what's necessary for their people to stop twenty percent unemployment and they're going to say we want a devaluation and they're going to get go for the you know this is interesting because now we're talking about the political and the social and you know in the past when we've talked about this at work it's always been the banking crisis the fina

deteriorating economy which is now contagion is sort of skipped the border and is sending a signal greece is clearly being made to punish as an example to other countries and the idea here is do what you're told we'll end up suffering what greece is suffering so it's a demonstration of fact.

we're not going to be greece and we're not going to be chicago. thank you. yes, not chicago. absolutely not. we're going to win this! let's go! >>> former alaska governor and 2008 republican vice presidential nominee, sarah palin, was the keynote speaker at the closing session of cpac's annual meeting in washington. her remarks run 40 minutes. >> thank you so much! thank you, cpac. thank you so much. what an honor. thank you so much, cpac. thank you. i appreciate it. thank you so much. i am so honored to get to be here. thank you, cpac. ♪ happy birthday to you >> thank you for the birthday greetings. you are wonderful. thank you so much. and to millie and all of her good work at the nra as a lifetime member of the nra i so appreciate her efforts there, protecting our second amendment rights. thank you, millie. she's not just a mama grizzly, but a mama grizzly who's probably packing, so didn't mess with millie. truly, i thank you so much and i am honored to get to be here. the last time i was in d.c. my family and i were here cruising on harley-davidsons with rolling thunder w

case really a financial sadism in other words there are a number of ways to extricate greece from this problem one would be for example to prosecute the bank the bank or say fraud certainly god greece into the air out to begin with but none of the obvious solutions are being pursued instead they're going down the path of very slowly. beating greece to death in a very sadistic way is it the i.m.f. about christine legarde is it just a case of sadists. having fun with grace is worse than that might think it's a case of subtle masochism you always need to do with greece is to allow to default to face the truth of the it's a bankrupt state. and then to find out what to do about the banks and who got it allows them if they want to do that but of course they're not doing this because it could be delays ation legally speaking means that. the current owners of these banks will see their holdings their shareholdings of beings they looted the european state and so that about the bankers don't want to hear of this one receiving free money from these he and from the dark spears of germany and holland zones of world so

remain hostile to the euro zone's message and how it's being delivered i think it was such type of message as brussels of helping to european forces in greece. and all of the austerity measures don't solve the problem they make it worse we need development we need development for the survival of the greek economy is going to be among both the public and the teachings that he's doing that using his art and that. well. there's more people as we say very lifting so this is jason because it's rewarding greece cover way to the way they're ready to last sunday's mass demonstrations and continuing uproar sent a message to those in athens and brussels that though voting through austerity may have been an historic moment as one of the likely to put the nation's problems to bed meaning rather than being resigned to the past scenes of anger likely to be.

greece. and it needs to be resolved. >> hang on just for a second to both of you, when you think that greece could be about to unravel, and the market has been expecting for some time now that no matter what happens at the 11th hour some deal will come through and greece will be saved. it will not be allowed to go into a disorderly default. so why is the market taking a different stance on this, louise? >> i think the market's been taking this wrong for some weeks to be honest. if you look at the rhetoric, i love the quotes. i like to look at what the key players are actually saying in the quotes. and the quotes have changed dramatical dramatically. you've got a german minister talking about criticizing greece for constantly missing their targets. we've got a quote today from the greek np talking about they don't want the german boot over them telling them what to do. and you have jean-claude saying that the greek economy's in real trouble. look at what the players are saying. and if you look at the quotes, they have been pretty worrying for some weeks. it's just the markets have ignored them

that's who's in charge of the world like to be in charge of greece of italy of all the other countries that are having trouble and it's true in this in this country too it's the big banks and they are the ones being bailed out we hear about you know the greeks being bailed out the greeks have never been bailed out this is been the big banks that hold the greek government debt the government should never have issued that debt the banks never should have bought it but given both those factors why should the average poor guy in greece who is whose standard of living is falling because of the greek government and bank policies why should he be further have a boot put on his throat by the i.m.f. and similar organizations the federal reserve the european central bank and can society general and all the all the other big banks where do they get off making him poorer so they can be richer that's an outrageous system morally politically economically and let's hope that greece is only the beginning default is a wonderful thing these debts who are the people who don't have to pay for these debts

be. the solution for greece if we think that the other countries of the eurozone even though greece gets out so far. they will months to find the solution for their economies they will be expected of course but they will survive in a way for greece it will be much much more difficult but i seized on that our politicians should have reacted earlier ok thank you very much indeed for that live update. journalist in the greek capital well that's all for me for though i'll be back with main headlines when just a few minutes. after all special report cowboys in paradise in fact that comes after the headlines very shortly so stay with us about. if you just showed is a very warm welcome here in moscow top stories now the arab league is calling on the u.n. to create a joint peacekeeping force for syria as the group aims to meld pressure on president assad also reporting that these five buildings have been set on fire and mass protests in athens as lawmakers debate new austerity cuts in return for one hundred thirty billion euro bailout with a vote expected in just one hour now these are live pictu

we will not decrease and wheat -- we will not be in greece and we will not be chicago. [applause] ♪ >> we're going to win this. let's go. ♪ --ladies and gentlemen ♪ >> ladies and gentlemen, good afternoon. good to see you. [applause] this exciting three-day conference. we have two main events left. we have been exciting results of our polling numbers. and then we will hear from gov. palin. [applause] great power in store for you. let me get started right away. these polls are sponsored by the great washington times, an institution that we care for and respect and is part of our conservative movement family. i will introduce to you its president. [applause] >> thank you very much. hello, everyone. that was a great boxing match we had earlier today. congratulations, the eyes of the nation have been on us this last three days. all of you are part of that historic occasion that is done much to clarify the heart and soul of the conservative movement. where we stand and where we are going. thank you and -- the washington times is marking its 30th anniversary this year. our fo