of the entire country is ten twelve trillion dollars right the entire g.d.p. of planet earth of the globe is something like fifty trillion dollars so they're saying that the united states alone has more dead than four times that of planet earth. yes so so then if they have populated and colonized a big planet like jupiter. and they put a neo liberal model milton friedman was running jupiter and then today they have two hundred trillion dollars and we need a big planet like jupiter why do you have so much debt on a small planet like planet earth why are you talking like i'm talking like jackie mason was in the news back in the well we're talking about it soon enough not know . any more headlines and now max i don't know ok well thanks for being on the show thank you max when we come back we'll be going to jerusalem to speak oh sure however now benjamin yet no well there is an invitation out this big adventure event at any time standing invitation we will be going to drizzle stay right there don't go. quite significant. is it possible to win the war against. me.

of the entire country is ten twelve trillion dollars right the entire g.d.p. of planet earth of the globe is something like fifty trillion dollars so they're saying that the united states alone has more dead than four times that of planet earth. yes so so that if they have populated and colonize the big planet like jupiter and they put a neo liberal model in milton friedman was going jupiter then they have two hundred drilling dollars and we need a big planet like jupiter why do so it's so much good on a small planet like planet earth why are you talking like i'm talking like jackie mason was in the nose but i could well be talking about it soon enough not. getting more headlines and now max i don't know ok well thanks for being on the show thank you max when we come back we'll be going to jerusalem to speak with cher haver no not benjamin yet no no there is an invitation to speak with benjamin any time standing invitation we will be going to drusilla stay right there don't go. and greet for the full story we've got to. biggest issues get the human voice cease

higher portion of its g.d.p. on defense than any country in the world twelve point three percent of the g.d.p. in israel is government expenditure on defense security and so on there's also a public expenditure on defense which isn't measured so we don't know what portion of it is out of g.d.p. it mean it's just same space a clay i mean i grew up in new york city in a moral last and harlem was a ghetto and the cigarette companies are the tobacco companies and the gambling companies and the supermarkets that overcharged they make a big profit out of a ghetto i mean palestine is israel's profitable ghetto yes or no especially gaza. even more than a ghetto it's a prison camp because. palestinians in gaza are not able to export anything but they can still import and they import using the aid money that they get from the international community and most of what they buy with this money is products from israel so that actually means that if for example one israeli company has full monopoly over selling petrol and petro

product and government spending at the federal level we typically raise about eighteen percent of g.d.p. in tax revenue right now president obama and congress are trying to push federal spending to twenty six percent of g.d.p. our task in this was in the wall street journal just a couple weeks ago can only raise between eighty and ninety percent of g.d.p. if we're going to spend twenty six percent and raise about eighteen nineteen percent we're going to have a large deficit if we brought that spending to the historical levels to twenty percent we'd have sustainable deficit levels however washington is going to if they persist push for twenty six percent they are going to go for for higher taxes and it's not the tax on the rich cannot pay you cannot fill that gap that's why we're hearing talks of tax that's why the push for those that is coming soon ok if i go back to you benjamin i mean can we just apply a means test i mean if we need more money to pay off these deficits the rich have lost obviously have more money to be taxed i mean there's a certain point where you know there how do y

decrease in their input to g.d.p. what i would say what is all this in more screwed your last week is a number of our other come from this in different areas in the bank areas and their service in the trade sector. forced to reduce their work hours and whole series i would say the client activity is definitely very very low in the big cities which are. suffering from these extraordinary weather so i think as a result all. figures should really idea from where these course of this crisis will com but most likely i think and number of sectors will suffer from low economic activity you know and what about if we turn out to inflation what's your forecast for this year well i would say flesh and this is definitely the key indicator which probably will be visible very soon and we have raised our inflation forecast to the level of some point five percent of your so in percent around months ago and just respond the initial responding to their global grain market grain price rather how is it now as we see that condition soon r

good dog they resell it at the g.d.p. goes up by by the idolaters that is words g.d.p. is not a measure of modes of productive assets it's a measurement of value added and the value added which is the lighting of color and economy of crisis and economy where both a large share of manufacturing has been closed out where some of us is in fact of migrating to developing countries to cheap labor locations so that i really could tell you that china is. both the largest economy it has the largest population on earth its host of productive capability of the seven. the sheer size of its orbit about the country. as compared to other major problems including united states of america well coming up in our financial report later today and as colleagues and his co-host stacy herbert look at the economic sickness and health of the current economic situation well the questions on the table is whether america is heading towards a prolonged economic depression and has the free market capitalism system finally failed. here's a headline about the us us is bankrupt and we don't even know w

rich have one point one trillion in hidden income oh this is like a sequel hidden absent scratching g.d.p. growth. well in fact china's household hide as much as nine point three trillion yuan which is one point four trillion of income that is not reported in official figures this is eighty percent of it is a crude to the very wealthiest of the chinese so in fact also their wealth and income gap could be a lot bigger than what is stated as well. yeah well this is the key that we're talking about here is that there is debt on america's balance sheet that they're counting as an asset as their net worth america if the economy the described. so you comes when you say america is the world's superpower in the world's wealthiest countries because they include on the balance sheet the debt but the debt is no longer serviceable and once you write that debt off which is bernanke is only choice at this point then you go from being in the first world to being in the fifth sixth or seventh world forget being in the second or third world america is going down to the bottom of the heap but that happens

people don't realize it for every dollar of g.d.p. that has been grown in the u.s. economy the past fifteen to twenty years has taken more and more units of dollars of debt to the point where just recently something like ten dollars of debt was needed to just create one lousy dollar of really you can't even call it g.d.p. really because the interest on the debt is now getting to be bigger than any the combined income of the entire country that's correct and you know this also ties in however as alan greenspan is basically suggesting there of the what i call the republican theory of relativity so deficits matter as you see them screeching right now about barack obama's deficit that are spending on population or social programs but deficits don't matter they say when it applies to tax cuts for helping the rich but it turns out in this case it actually does the laws the same laws apply to both sides well they also say that deficits don't matter or government spending socialism is not good for welfare programs for the poor but it's good if it's for a war. which is anoth

iceland to be able to decide you know on how how things are organized here what percentage of the g.d.p of iceland is tied to aluminum smelting may i ask this because iceland has a campaign out of it of iceland it's a geological wonderland it's a beautiful landscape it's one of the most pristine environments in the world great people and right event as a fun town i've been there myself but do you need to have any aluminum smelting at all what percentage of aluminum smelting contributes to g.d.p. in iceland overall a clear i'm not quite sure but the fact is that that i mean they are big you've got this renewable energy source which is different than let's say energy coming out of the ground in the middle east or elsewhere which is nonrenewable it's it's it's renewable it's clean it's why can't i slam use that to drive some other industry then the dirty aluminum smelting business my question exactly and the point is also that the geothermal energy is not sustainable unless it is used with care i mean you can't just. keep it out of the ground without going to go to the area that you're usi

figures they can have a developing ministries keeping their official g.d.p. forecast comparatively low at some two point seven percent despite much higher growth figures four and five percent being floated a key part of that economic growth is investment and global investors keeping an eye on russia's developments with bonds into russia posing over the last week or so . if we're talking about the fund markets in the first week of august we've seen an income of seventeen million while developing countries prove rule receive three point six billion recruit some since the beginning of two thousand and eight so the international investors have taken a break from investing into russia monitoring the situation. and other the impact of the why is and will certainly be reconstruction of building an infrastructure in central russia and support for agriculture that will add to government outlays and is likely to have something impact on the budget deficit but probably the biggest concern at the moment is the potential for grain prices rises to flow through into food pr

to causeation from the government stuff to the g.d.p. he gave me some reason why he thought that was reasonable, particularly invoking this idea that the government has these long decision lags and implementation lags and it really can't move very quickly and somehow that timing is going to be a rational for this assumption. i talked to mark alexandriay who has one of these -- zandy who has one of these mod wilson moody's. he told me he was treating federal purchases. he said state and local purchases somehow were being relate to movements from state and local revenue. and somehow he wasn't treating those in the same way but i couldn't pin down how he was treating -- i don't see how you can identify that. i thought it made a lot of sense that he was treating state and local revenues and when the economy goes badly the revenue goes down. then i didn't know what the source of identification was. i didn't know if it was all being driven over federal-to-state government transfers. i haven't been able to pin that down. i think if i talked wit

so the 5.5 g.d.p. growth for russia for this year is relatively the worst, but, still, on a global basis, quite strong. >> susie: i understand that russia's unemployment rate has been coming down and it stands at 7%. and the inflation situation is also improving. so how would you describe the health of the russian economy? >> i think the russian economy is in very good shape at the moment. in particularly in compared to the very specific construction of the economy's experienced last year. >> susie: half of russia's growth comes from oil and gas. given that the oil prices are hovering around the $70 a gallon price, how could that impact the economic growth? >> indeed, russia is an economy that depends on natural resources, particularly oil. we estimate that half of the very impressive growth performance that russia boasted between 1998 and 2008 is due to oil. so if oil prices were to go to the downside, we do expect to see some down effect on the economy. in our estimate, a 10% decrease in our prices m

and ten slightly worse than expected of russia's ministry of economic development to the estimated g.d.p. of five point four percent. and those high inflation figures are likely to leak into the banking spat with the refinancing rate and therefore the lending rate appreciating. ports. russia's inflation rate has been sliding lower from fifteen percent two years ago to well under six percent at the end of the first half of this here but those days are on a missy with the economic grip bounden drought f.x. food prices meaning the road ahead is. water more widely below six the sound thought they may or may it's true that russia. doesn't have enough time to allow its quite near the full benefit of this favorable mancow conditions because right now with excel written. it would there. well we'll see some upward pressure on really interest rates which in a way will have to the fall of the inflation the drop in inflation has give the central bank room to slash their refinancing read fourteen consecutive times to seven point seven five percent in the last year and a half to rescue this should hav

european stock markets have opened high on friday after stronger than expected g.d.p. data from germany and france the commodity sector is in the lead europe's largest economy saw g.d.p. growth growth of two point two percent in the second quarter beating forecast by a hefty margin and showing the fastest pace of growth for germany since we've unification. aging markets have seen a sharp move this week of global growth but the nikkei finished higher after a choppy friday's session gains were modest though on uncertainty as to whether the japanese authorities will act to curb the answer we saw. and strength. also hampered gains that follows will street overnight decline stops extended losses there after the release of claims data which is at the highest level since february . the russian markets are trading high here in moscow on friday the r.t.s. has climbed behalf of the sun so far having been the worst performing sector on the my sex on the first day banks and now leading the blue chips higher by spike and bt be up around one percent this hour. american fast food cha

let's check look at those stock markets now down on news the second quarter g.d.p. in japan rose just no point four percent that's much less than expected exporters also being hurt by the strong yen sony is down more than three percent. more than two percent. in the heart of the holiday season meant a quiet ten to the trading session in brush up with the bosses continued last week's to the slide and rolls in the shed some said on friday as the price of law suite slipped below seventy six dollars a barrel. after last week's uncertainty on the stock market the head of analysis at forex club says investors or expecting gains this week. in russia they expect rebound on monday but mend our investors our clients to invest in a liquid blue chip for example just from looks attractive some other oil and gas stocks like look paul and ross nafta also could be quite lucrative for investing. markets should grow but it will depend on the general economic environment in the walled it remains quiet moods it's still there are certain problems for example g.d.p. all to us. most proba

stocks shrugged off the weaker g.d.p. number and seemed to be assured by the federal reserve chief's comments. still, the indices lost ground this week. the dow closed back above 10,000. still, it lost 0.6% this week. it's down three weeks in a row. the nasdaq saw more volatility, slipping 1.2% over the past five sessions. and the s&p 500? it fell 0.7%, its third consecutive weekly loss. investors ignored some disappointing intel news. it cut its quarterly revenue target. computer sales are less than it expected. just last quarter, intel reported record revenue. here's today's trade of intel. trading was halted twice, once when it announced the lower outlook-- that's the flat line on the left side of the chart-- then again when shares hit the circuit breaker-- the violent swings just after it re-opened. trading is halted if a stock moves more than 10% in five minutes. the trades that triggered the breaker were eventually canceled. here's the past 12 months of intel. today's rally comes after the stock hit a new 52-week lo