greece is the shape the color weekly israelis are explained pretty. tough. abilities know these really turkish relationship what impact does that have on the wider middle east a huge impact huge impact especially you know. so far these arab spring especially the developments in egypt have caused damage especially the israeli egyptian link it doesn't look strong it doesn't look stable anymore without mubarak and israel has lost its closest friend in the region. in the last two three years and since turkey is one of its closest friends so you have to keep there with the normal relations and with the strategic look is now extremely important because the whole middle east is shaking do you think the israeli government learned any lessons from nothing about. this that israel was too prepared really with with. that the fact that it was a very different flotilla this year was a surprise to israel too why do you think turkey did not cooperate with time around i think if you started asking me if greece was a surprise i think it was the big. surprise i'm not su

unexpected is it that athens has come to israel's aid in stopping this year's gaza bound flotilla greece was never so close to israel and the changes the recent change especially on the military mention there to greece to save israel from another public relations disaster. finitely helped but to save israel. because the pullout the biggest of the most important ship of the floor below mavi marmara in to participate in this year's philippine or would you say that the period in relationship between israel and turkey is the main reason why israel and greece have grown closer together definitely or was the only reason. when the relations between israel and turkey were very close and our miss was so close training to the israel supply. would. be it was almost unthinkable to be in the military really with greece but the change was a very dramatic change to a few years ago it will it was almost natural for israel to cry and the response was very positive what's in it for greece but greece is the will shape because of weakly israel is a rich country there is no proof military abilities and no th

point of view it was almost unthinkable to build the military link with greece but with the change was a very dramatic change to another few years ago it will it was almost letter and for israel to cry and the response was very positive what's in it for greece chris is to shape a corner weekly israel is a rich country. with military abilities and no these really cared less relationship what impact does that have on the wider middle east huge impact huge impact especially you know. so for these arab spring especially the developments in egypt have caused damage especially the israeli egyptian link it doesn't look strong it doesn't look stable anymore without mubarak and israel has lost its closest friend in the region. in the last two three years of sr its closest friend so. with the normal relations and with the strategic dialogue is no extremely important because the whole middle east is shaking these people israeli government learned any lessons from last just about this israel was to prepared i mean with with in effect the it was a very different flotilla this year was a surprise to

of equipment and stupid and it was almost unthinkable to be in the middle of the reeling with greece. with the change was a very dramatic change to an era for musical it will it was almost natural for israel to comply and the response was very positive what's in it for greece but greece is in the will shape equal or equally israel is a rich country is a lot of military abilities and know all these really turkish relationship what impact does that have on the wider middle east huge impact huge impact especially in the. so for these spring especially the developments in egypt have caused damage especially the israeli egyptian link it doesn't look strong it doesn't look stable anymore without mubarak and israel has lost its closest friend in the region. in the last two three years and since thirty's and its closest for so behaved. with the normal relations with the strategic there is no extremely important because the whole middle east the shaking these big israeli government learned any lessons from last year's debacle is hopelessly israel was to prove i mean with with him they defect i

unexpected is it that athens has come to israel's aid in stopping this year's gaza bound for tele greece was never so close to israel and the change is a recent change especially on the military dimension didn't greece save israel from another public relations disaster. really helped save israel. it was the pool of the biggest the most important ship of the flotilla mavi marmara and not to participate in this year's flotilla would you say that relationship between israel and turkey is the main reason why israel and greece have grown closer together definitely or was the only reason. when the relations between israel and you were very close and this was so close draining to the. supply. for equipment that. it was almost unthinkable to be in the military link with greece but when the change was a very dramatic change to a few years ago people it was almost natural for israel to cry and the response was very positive what's in it for greece or racism that. equal or equally israel is a rich country has a lot of military abilities you know all these really turkish relationship what impact doe

so my first question to you you cover the protests in greece you were there when people in greece reacted to austerity measures you talked about the toll austerity measures have taken on the economy of greece people have suggested these riots in london two or fuelled by economic issues lack of mobility inequality austerity measures do you see a connection between what is going on in greece what's going on in the u.k. and what's happened in europe you know in portugal and other places as well i mean i think there's a new similarity between these riots and the ones that happened in december. because we had a similar sort of situation where we used to get the and murder of a young man from the road what but but in general they're receiving rights across the developed world and the developing room in part of its food rise other parts of it are austerity budget surplus are trying that we seem to see and it's certainly a trend you would expect to see during a bear market and we're truly in eight markets certainly in the west but globally as well and so in some surprise i mean it all it all stem

over its mounting debt problems sparking concerns it could be on the path to greece stalled by. supporters and opponents of hosni mubarak clashed fatally outside according caro where the deposed an ailing president of egypt faces trial. the charges of conspiring in killings of almost eight hundred fifty people something that categorically denied the cookie of the target from the would be kept a catholic unit. also reporting this our divisions in the u.n. security council western countries pressed for an outright condemnation of the syrian government for violence russia says that could damage the road to peace and calls for more. international news in comment this is r.t. live in moscow just on a.p.m. in the russian capital good to have you with us this beleaguered europe is caught in stormy seas once again as italy has held crisis talks with the e.u. over its surging borrowing costs and countries have reached their highest level since the euro was adopted prime minister silvio berlusconi has stopped short of asking for a bailout well let's get more now from europe correspondent

we have a fundamentally different monetary system of greece greece doesn't control its own currency they're suddenly borrowing and someone else currency they have to build up a surplus of them pay it back we're a fundamentally different system than that and it compares to greece or ireland or any other trying to comparison just then i think look this is something that politicians freak out about yeah you know as the other guest said all the sudden it's become a political issue but if you actually i look at the market i look at what the market is reacting to america's debt and everything is known and all the math is known and everyone's figured out about how we're bankrupt the market doesn't seem to care and is not concerned so i really tend to think the issue is mainly a lot of ok well if i go back to martin i mean the market of the the market didn't isn't particularly concerned by it but it seems to me when everything gets goes sour the markets are the ones that are saved the bankers are the ones that are saved i mean if there is a crisis they're going to come out on top like they did in t

quite like greece it's not people don't necessarily think. it's. the interest rates that have been used it's only could be expected to repay its debts i want to happen it's a relatively thin trade i think and. this sort of paranoia sets in and they're pushing this with a great amount of debt the city has to. yes some sort of bailout well that's what's worrying is now here you can see something that's what's worrying is. italy's debt it's really quite significant when you compare it to the debt ridden country so could actually afford to bail it out. that is that is the issue i don't think that the i think you know even if the whole possibly could i don't think politically that would be possible in terms of the german taxpayer you read the german tabloids where you look at the average german in the street and it's you know they were keen on bailing out greece certainly not going to be you know bailing out its cities so i think you know it's going to be don't think that americans coalition sort of house the the political capability to do that talking

from greece, new unsettling news came in about the rescue plan. very few investors desire to buy stocks this friday. then this from the denied its dates -- from the united states, reserve banks still had tools to stimulate the economy, lifted the mood of the trading floor added little, but not very much. >> we can take a look at the closing numbers. the dax closed lower. the dow finished at the top of the hour and it had a nice little rally, finishing the day and week with gains. on currency market, the euro is trading at the value of $1.49. citing economic prospects in europe and north america are dampening expectations in brazil. reports said the government there is set to lower its growth projection for the current year to 3.7%. brazil still expects the economy to grow by about 4% this year. even that is substantially lower than growth last year. its biggest expansion in 24 years rapid growth also fuelled inflation, which prompted the centl bank to raise interest rates to over 12%. japan is facing the prospect of a seventh prime minister in fiv

can greece which was the problem is the start of this in greece because you see hillary clinton and obama finally decided that they have no influence on netanyahu i mean they could tell the nationality please don't shoot a piece americans alice walker new york times correspondent please don't shoot him up and netanyahu do what he always does thumb his nose at the president say we're going to build settlements we're going to let these people try to break our blockade we're going to deal with them just like we did last year or so of us do us need to really heavily on the greeks so please don't let him go don't let him out of port kick the greeks a sea faring nation so so wasn't israel but leaned on greece it was more the united states we mean on greece that's my analysis because israel doesn't have that kind of doesn't have a kind of which in greece they have more than before but it was the u.s. that said look you guys are really good shape economically you know bailout guess what this is a team favre we had a right we had at the i.m.f. you want to be want to be favorable to you at least yo

estimated by most analysts that greek greece will have to do it basically and some form of default or debt restructuring or very very high inflation in respect of currency to bed really out of this step so we say stay out of the u.s. dollar stay out of any form of medium to long term u.s. treasuries but by the way also eurozone doesn't look better again so the rest we are very optimistic on it ok jeffrey in cambridge i'm going to you is that too bleak of a picture there i mean cut the past the point of no return i should morning sir. well absolutely not and i'm not sure i heard that right there is there's no chance we're going to have a restructuring of the debt i mean we have a very serious long term debt problem we've had it for quite a while it's on its long term in two ways one that the problem is the deficits the moment the problem is the retirements and the rapidly increase in. health spending medicare and social security that are going to come over the next few decades that's the problem it's also long term in the sense that we we've been facing this problem for thirty years ma

normally in other crisis particularly in greece and our debt back and forth problems in this country they wanted to get gold and they continued to advance the gold prices but not today. what was so different today? >>guest: the sign of gold setting a new high and coming off to be a negative tells you that there was absolute panic in the air. with the dow doing what it did the last half hour. >>neil: for people who have been betting on gold and wondering up wonderful advances on gold, is that telling you something, that maybe, maybe, the air is coming out of that? >>guest: i don't think the air will come out of that. we will try to inflate our way out of the problems and we have bigger problems than a gold bar. right now, what we have to worry about is growth. if we spend the time we spent with the debt ceiling or the debt downgrade debate and worry about our g.d.p. we are basing things off of g.d.p. figures and all we have done is look in the rear view mirror and take the numbers down, we are only going to grow our way out of the problem. so, today, with gold and part of that growth

which means that greece is de facto not. able to pay the bills anymore and secondly we don't have the bailout funds as it is put on the table now which is quite important for the european central bank to be able to continue its present policy of supporting the countries like spain and italy on the bond markets so is this enough facts and economic suicide pill per se first states such as greece any to spare the euro zone the shame of kicking someone out. well everything is done at the moment to indeed arrive at such a situation where it would be like you say rather shameful to accept the exit of the country the first possibility of course being greece but that should not lead there's a strain in terms of what is the real focus or what should be do real focus of the discussion and that is that we don't have the commissions met to have a structurally healthy monetary union and unless we do something about that we will have one crisis country after another the european central bank has been credited with lowering the intensity o

the rioting in greece shook greece from the country's economic crisis were felt across the european union shaken international markets worldwide. i while parts of europe have been teetering on the edge of economic abyss poland has remained stable in the storm along with this currency. there is a widespread belief in the country that being outside the euro has helped keep poland well out of trouble. if we were part of the eurozone and we would have been obliged to help countries like greece and portugal help out someone else without solving our own problems it's almost guaranteed that prices would go up and join the euro zone which would damage my business recent opinion polls suggest that more than sixty percent of balls want to keep their own currency a dramatic turnaround from just a few years back a few years ago the euro was seen as the euro club was seen as something very exclusive polls aspired to that they wanted a country that. now the name of the euro has been sought. by the troubles in greece and italy polls don't want to be dragged into this crisis if the government forced the

greece wants to hear from all of its creditors by mid-september. it says it needs 90 percent of them to take part. analysts say if the scheme fails, the whole bailout package could unravel. m in some good news monday, shares on the athens stock exchange skyrocketed, rising by 14% after two of the country's largest lenders announced a friendly merger deal. shares in the banks themselves rose by 30%. the 7 billion euros tie up would create the country's largest bank and at the same time create an institution more capable of dealing with the problems in the greek banking sector. lenders in the country have come under intense pressure recently from the government and the country's central bank to consolidate of the mounting difficulties in this -- difficulties in the sector stemming from greece's ongoing debt crisis. market action in german shares started the trading week with a strong rally after signs that the global economic recovery is stabilizing and widespread belief that hurricane irene did not hit quite as hard as forecast. our correspondent sa

greece go. they have to let it leave the euro. they have to let it restructure, which is basically a nice way of saying default. >> tom: a look at what europe can do to get the global economy back on track. it's "nightly business report" for monday, august 15. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone. a big stock market rally today, making it three days in a row. after a tumultuous week of selling, investors swooped in to buy stocks today, thanks to a batch of mergers and other deals. tom, traders here on wall street are already calling it a winning streak. >> tom: susie, the dow is now back to where it was before standard and poors downgraded america's credit rating. today, all the major averages were up by 2% or more. by the closing bell, the dow gained 214 poi

we should have amputated greece from the euro zone long ago. so the greek drain has started to affect spain as the country prepares for the worst over its credit rating exacerbated by fears over the new european deal to rescue the unstable euro zone so we're reporting on that in a few minutes. and right now we also has a debater's that pilot error led to the polish presidential plane crash in western russia which killed ten then president lech kaczynski and scores of the country's top officials but the government commission still laid part of the blame on russian air controllers but the disaster in april last year. reports now on how a national tragedy has become overtaken by politics. another day another blame game poland's very own probe into last year's presidential plane crash in smolensk all but confirmed the findings of russia's investigation that the crew was almost solely responsible for the tragedy. at this point there is an obstacle a tree that the aircraft collides with a fragment of the left wing is detached the aircraft begins ther

partners in the global crisis several countries like greece ireland and portugal are on the brink of disaster partly due to a boring binge allowed by your membership and associated low interest rates being outside the euro zone meant to poland could not join the party but now it does not have the hangover poland was meant to have the euro. by next year at the time when the country is co-hosting the twenty twelve european football championship but with the latest developments these plans may be shelved for another four years e.u. rules say poland is obliged to adopt the euro once it meets the economic rules for joining but polish politicians are now much cooler on the idea with ministers saying the eurozone needs to get its house in order first place very important for us. the need for institutional changes. in the euro zone konami governance of euro zone. crisis management we see some need for action in the euro zone before. the target date will be. set up the game has changed and the euro club everyone once wanted to join may now be the invitation no one wants to accept. now to some

and lower countries greece, portugal, spain. reason for that that goes so deep, it's not just even about economic policy, it's about, i think, i think what you saw in london exemplifies it, the western world basically got lazy, confident, arrogant and now we're paying a heavy price for it e and do you think we're going into a recession? >> i think that we never came out of a recession for a large swaths of the country. listen over 6 million people who are permanently unemployed, unemployed six months or longer, unlikely not going to get a job or never before, not paying that salary and those are lost souls and listen they'll become dependent on the government a record amount of people on food stamps. whether they technically call it a recession, i think they called the last three recessions too early. unmroement would peak, in the last three recessions unemployment peaked at 12 months later. i don't know what's going on. changed the metric. i don't understand, but it's great for the presidents, for both parties, all presidents h

because that's my next headline max greece begins fifty billion euro privatization drive so the gun for one of the biggest fire sales in western history was fired as greek officials began appointing advisers for the country's ambitious privatization drive but greece lost its sovereignty and now they are selling the pieces of the corpse and the greek people need to understand that they no longer have a country there's a fire sale at grace they're selling off the family assets family jewels but the greek people are no longer free they now are slaves for the i.m.f. and the global bankers good job greece and here's a great quote after years of resisting privatizations the break neck speed at which athletes has agreed to conduct the sales nearly one in every fifteen days has received that state jewels will be sold at rock bottom prices that was the point that's the point of getting moody's and s. and p. to ground downgrades or that that's the point of paying off a son of the table he's a corrupt world leading slimeball that's the point of having had funds like paulson work with all the.

greece fears that state jewels will be sold at rock bottom prices that was the point that's the pointf getting moody's and s. and p. to drownd downgrade their debt that's the point of paying off under the table he's a corrupt world leading slimeball that's the point of having had friends like paulson work with goldman sachs in your country last year to meet up to decide how to sell off your state assets that's the point of having steve forbes of the international chamber of commerce having a meeting over there at the hotel brittania a couple of months ago to decide how to sell your state assets that's what happens when you lose your sovereignty that's what happens when you sell your soul to the devil that's what happens if you let the i.m.f. india home if you ever see a banker on an airplane report of the middle of the pilot it's a dangerous situation don't let bankers on airplanes they're going to countries and they're going to blow those countries up with weapons of mass financial destruction no bankers on airplanes if you sit back on an airplane report it immediately to the t.s.a.

, we can actually stop us from becoming greece if we make the right steps.greece was already down that road. >> sean: this is the most predictable financial crisis in mankind. >> it's not a financial crisis. >> yes, it is. >> we could easily print another trillion dollars and put people to work. >> it's that serious. >> it's relevance. we owe $6 trillion of that to ourselves, to the government. right? there's another $3 trillion owed by the american people. the entire foreign ownership of this debt is $2.4 trillion. >> from ancient history on, whenever countries die, it's for financial reasons. >> sean: didn't obama say the worst economy since the great depression? he's saying the economy is awful. you're saying we can print money? >> you're not saying the economy is better than when he took office? >> it's way worse. >> it's been a long day, i'll let it go, but you all have gone to oz and lost your mind. >> sean: 4.5 trillion in new debt. unemployment still 9.%, real unemployment 18%. >> let's hope this crisis inspires candidates sittings on the sideline, c

if we were part of the eurozone then we would have been obliged to help out countries like greece and portugal how can we help out someone else without solving our own problems it's almost guaranteed the prices would go up if we join the euro zone which would damage my business recent opinion polls suggest that more than sixty percent of paul's want to keep their own currency i dramatic turnaround from just a few years back a few years ago the euro was seen as a euro club was seen as something very exclusive polls aspired to that they wanted a country control now the name of the euro has been sullied. by the troubles in greece and italy poles don't want to be dragged into this crisis i think government forced the euro issue try to bring poland. could be political suicide poland has fared much better than many of its e.u. partners in the global crisis several countries like greece ireland and portugal are on the brink of disaster partly due to a boring binge allowed by your membership and associated low interest rates being outside the euro zone members poland could not join the party

my flashing and exposure to the economy and government said as well as to other countries such as greece ireland of course because a really investor the same we don't have confidence in your ability to slash your unsustainable debt level i'm here in the euro zone find a cheap safe that also is a call to literally we will continue our mediation in our investment show includes a hundred really and the interesting thing is to say here is an interesting internal e-mails that are a way out because when greece went down they went to asia to close for investment and they had a big treasury car on a tour of asia trying to get those cars growing economies to buy italian bond now i need to claim that my world or of the hive describe baka treatment of the course but the can. well for more on what's facing italy we can now talk he's an economist with the independent think tank open in europe joining us live now in london thanks very much for being with us here on r.t. well as we just heard silvio berlusconi hasn't asked for a bailout yet but has he succeeded in calming investors today or do you thin