, in particular on the ground in athens in order to enis that your greece to ensure that greece that is means to carry it out. the troika will reinforce its presence in athens in order to be able to -- with the task force for greece will also be reinforced. greece has announced that it will introduce the concept of absolute priority of debt service payments in its legal framework in the next coming two months and later on in its constitution. this is something that spain, for example, has already done and this should encourage to return of investor confidence. in the meantime, a mechanism will be put in place to service greece's debt. to this effect, debt service should be paid directly to a segregated account of greece's paying agent. on the basis of these elements and subject to -->> make sense of international news. bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu newman's own foundation and union bank. >> at union bank, our relationship managers work hard to understand the industry you operate in, working to nurture

scheuble to dare insult greece?nt has caused tensions in relations between germany and greece. >> on our part, we will try to do everything to help greece. but in the end, it is agrees that most want to take this road and implement reforms. we cannot do that for them. there's no way around reforms. >> despite all the hurdles, chancellor merkel says she is confident that greece will comply with the rules and the tough fiscal measures needed. >> for more, let's go live to our correspondents brian williams in athens. at times like this, they look for scapegoats. is there a feeling in greece that germany is to blame for the country's economic misery? >> well, probably, naturally, germany is seen as the leader of the group that is pushing it greece for these austerity measures. but to be frank, i would say the biggest worry that agreed's have is about their own politicians. they're the ones that most greeks are directing their anger at. in the last week, ever since mr. scheuble's comment about a bottomless pit, chancello

how did greece get into this mess? step forward goldman sachs, the company that helped make the books of looked balanced. -- books look balanced. 130 billion euro bailout for greece which means that they will avoid defaulting on their debt. the money comes with stringent conditions. make sure that athens sticks to the rules. the country's previous round of tax hikes, cuts, and job losses are taking their toll on the people and now they face further austerity measures. if we report on what austerity feels like from the inside. >>>> there will be a revolution against the government. >> people say that if we continue this, we will back revolt. >> do you back austerity, the greek parliament voted for it, the streets erupted. in the aftermath, greeks were stunned. it is not the scale of the violence but the scale of the uncertainty. nobody knows how the economy can be rebuilt and that the politics are fragmenting. in a normal crisis, a decisive parliament, and massive riot, and the torching of 17 buildings might bring catha

is greece in a position to deliver.here are two key issues that also seem to be perplexing, let's say, greeks. the first one is this idea of stronger surveyians that was mentioned, or if you like, possibly a permanent task force in greece. the greeks think this may sort of infringe on national sovereignty in some capacity. we don't know the details of exactly how that monitoring is yet going to take place, and the other one is to do with this whole idea of an escrow account. people in greece are worried that if the money -- if priority is given to servicing the debt and interest payments to that account, that maybe if the requirements are not met in the way that they should be, that there be no money to then pay salaries and pensions and for the everyday needs that they have. >> what are the political parties likely to take by way of their position on this deal? presumably it's going to be a major element of the election campaign that must be getting under way. are there those political voice that is are being raised, i

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 enough to you i mean do you think some people out there would just say that greece should exit the euro zone because he wants to happen it was put government and people in the government to where they need to be there's a group of people where the people are in a depression the people who are pricing in a depression which is why they're not investing the money isn't circulating that's not want to change so i don't think that respects the thing is i think that well i think the question is the thought well do they want to continue to use the euro not is a complete separate question entirely in my in my view and i don't see any reason why the euro you have a lot of contracts written uro's i don't see why priv

greece has already defaulted. the euro banks have more money in reserves than in the past 15 years so everyone has already anticipated this. the u.s. banks have an extra trillion in reserves than a year ago. this is all anticipated so there's a total buffer zone now. >> and we look at the private default, the private creditors there and the default they are going to take, the haircut, we were expecting around 70% but it did come in higher than 50%. so is there some upside actually is this. >> there might be. this is more than just a hair t haircut. this is like they cut their body in half. it's worse than a default. >> let's get more on that. charles dallara is managing direct director for international finance. charles, thanks very much, indeed, for joining us. it has been a long night for you. we appreciate you joining us. we just ran a clip from you saying if there's broad agreement from the private sector this will make a major contribution. how much of an if is that? how much support do you generally think th

in two thousand one greece didn't meet either requirement so how do they get into the e.u. well they called the banks toure's over goldman sachs and said hey kalpa south goldman loaned them a billion dollars. here's billion dollars guys and then they took three hundred million dollars in fees and backloaded future payments to sir likely just more rate mortgages that they are giving people the united states exploding mortgages greece signed off on this by giving goldman stuff like future airport and lottery income their times reported back in february two thousand and ten when this loan came to light in two thousand and one just after greece was admitted to the europe's monetary union goldman help the government quietly borrow billions people familiar with the transactions in that deal hidden from public view because it was treated as a currency trade rather than a loan helped athens to meet europe's deficit rules while continuing to spend beyond its means as b.b.c. investigative journalist greg palast told us here on this program breach exploded people should know that it w

in the last several months how they're dealing with greece greece is. in the eyes of many the biggest problem but it's also the first problem we're starting to see major issues with countries like portugal and italy do you think this is going to be the model sort of the way things worked out west in terms of you know applying it to those other problem countries so we already have problems in those countries and yeah i agree i think so i think that if there is a commitment to take the bondholders who made bad deals then the business of a bank is to do due diligence their job is to lend money that's their business and they take the gains and they also take losses and they have to accept their loss of they're not willing to accept their losses and this is this is the medicine they they want to put on the counter then you can expect to see that from portugal in other places all right and of course we know that you'll be keeping an eye on it for us and helping us kind of break down what it all means capital account producer to meet your finance thanks so muc

we talk about greece. everybody is talking about greece, pointing their fingers at greece. but when you look at the press in europe, everybody in europe talks about this crisis in a different perspective. and we need a europe with the mobility of workers. it also means that we need transfer possibilities so that everybody can have portable pensions, for instance. if you work in five different countries, you need to be able to take your pension with you. and also we have to harmonize the retirement age. in some countries it's 55. in germany it's 67. we have a lot to do. that is to say the social dimension is one of the aspects. but it's far from being the only one. but what we have to create is of course as students you are more together than our workers, for instance. but we need more of a european public. we have to know that we all belong to the same area, for instance. >> translator: thank you. now i have a question about the relations between germany and the others. what about the image of germany abroad? from france is going to ask the question. >> translator: no, you

greece can pay back its debts on march 20.ut of course, the greek problem as such has not been resolved, and it will still take some time. >> the fact that it has not been resolved and that greece will remain exposed to default for quite awhile now, how much of a concern is that in brussels? >> welcome to it is a fact that this deal has put the country back on the right track towards growth. that is what the head of the imf, christine lagarde, said. but there were also some words of caution here. the european commission said that the greek economy is not expected to grow again until 2014, and unemployment is still going to be at some 15% in 2015. so these are very disappointing figures, of course. and it means that greece is looking ahead to some more difficult years. what is vital is that the greek government in athens stays committed, and that is what the europeans have been stressing as well. but what the deal was it doing was this sent out a signal that the eurozone does believe that greece can do it and that it can reduce

a reprieve in greece, but the risk has not been removed. european policymakers signed off on a $171 billion aid package for greece early this morning. now, private investors have to approve the deal, susie. >> susie: tom, there are some doubts about getting that approval, but investors here on wall street were relieved that greece will not default on its debt. the news powered u.s. stocks, helping the dow break through the 13,000 level, briefly. but by the closing bell, the rally fizzled-- the dow was up by only 15 points, the nasdaq lost three, and the s&p inched up a point. >> tom: this new agreement to save greece from going bust focuses on getting lenders to forgo loans, and for greece to stick to its budget. this deal is called both ambitious and long-awaited: 130 billion euros-- about $170 billion-- to make sure greece doesn't default next month. it's the second bailout in less than two years. private lenders to greece have to agree to take a bigger than expected loss. for every dollar these lenders handed to greece, they have to agre

here cut net present value and greece is use only statisticians or at least i.m.f. have come to the conclusion that a minimum of anything. under seventy five percent would probably language spec and the. bella table alone calculations actually calculate at seventy four percent and p.v. loss within four to five years they'd have the need to go back to the market. amount that would be prohibitive but you could take the best case scenario the best case scenario gets what it wants suppose it does get what it wants with seventy five percent haircut exactly what do you think all the other nations such as portugal ireland even spain and italy would do when for support strange austerity measures paying twice the taxes would have the benefits gets away with it everybody stands in line and i want no way around this is that the structure ok debt destruction that's an interesting point and i want to get more into contagion and what other countries are going to do but basically are saying this isn't a bailout so is there anything you see that is going to get greece out of this d

the recession while greece is still the gum on every one shoe our guest has been warning that greece is headed towards default for two years now and for anyone billing this latest greek deal as a solution kung-fu analysts reggie middleton is here to karate job the accounting shenanigans math being the real story. it's. he will set us straight news here to tell us why more than default the word of the day on everyone's mind should be contagion meanwhile in the u.s. uncle sam may be getting ready for a fire sale dumping millions of foreclosed homes many that u.s. taxpayers own sounds like a good investment deal only if you're an individual investor forget about it say thank you to crony capitalism for that one we'll explain and japan and the u.k. are fighting the volcker rule why are foreign governments getting into this fray over u.s. regulation we'll tell you why it appears j.p. morgan and morgan stanley may be to blame for that let's get to today's capital account. they use executive branch expects the eurozone to suffer a recession this year now the european commission in its lates

so should greece have ever taken that first i.m.f. loan bailout package i made myself in credibly an ocular in this country when even april to may two thousand and ten i was i would gauging taking the bailout loan was the equivalent of collective suicide and these would constitute one of those instances in world economic history that would be taught and of example to be avoided in economics departments for the next hundred years how about the air race and. there's an oil iran oil embargo going into greece the same like really another for us for us take away your thoughts alice the greek prime minister of a year or two years ago mr george papandreou who was responsible for getting us into the bailout mark one disaster nevertheless it's one thing before that happens which was quite ahead of its time and i think correct he said that if we are ever to fall into the bosom of the i.m.f. and the european union we lose our national sovereignty and this is precisely what has happened greece has that it is not in control of its fate anymore not

greece play of the arrow or germany leave the. us where you know if there were no opinion poll back in just before the industrial revolution and people were asked whether they want the industrial revolution. most of them would have said no that installed the dust of the regime similarly even if all the germans and all the greeks want greece out of the euro and. let me inform you that most greeks would like to get out of the euro now we've had enough of being treated like the brightness of the euro zone. is immaterial this is that currency which is never have entered into neither us nor the germans for that matter but tragically it is a guarantee that once you enter you cannot escape. if we get out of it we're not going to return to where we would have been had we not constructed it and instead the way that this currency has blocked them used together has created this because of its offices we didn't banks and states if greece pulls outlets they were thrown out of the whole edifice will collapse germany is going to end into a huge

in greece look what's happened in the u.k. is austerity what we need right now it's not working out so well there look you know those dreams addiction put it isn't going to start tomorrow you know we've been hearing this since the financial crisis and we're going to hear this for as long as we keep electing irresponsible people if you think that the debt and the deficit or important if you think that we're risking. flirting with catastrophe then this is not a responsible budget we have to cut spending spending has increased when obama took office it was two point nine trillion it's three point eight trillion the new budget proposal it keeps it at three point eight trillion in this fictitious world of a budget but we have to cut government period and you have to do it from military spending you have to do it from medicare you have to do it from social security have to do it from the department of commerce which got the biggest boost of any department in this fake budget being smart is kind of where we have to go right now and b

the last thing greece wants is a high euro. if they need to regain competitiveness, they need a lower exchange rate. part of that would be leaving the eurozone. you don't know what the effects of that would be, the contagion within the the banking sector. look at the french banks and their exposures to greek debt. the french dpoft would have to bail out those banks. it could lose its remaining aaa rating with fitch and moody's. the esfs could lose its aaa rating as well. then you look at portugal, the list goes on. i could go on. >> michael houston, we'll have to leave it there. even if you could go on. we could debate this topic ad infinitum. >> absolutely. >> you're hearing a bleak prognosis about what's going to happen from here on out with greece. >> it's quite understandable the way things are going right now. there's a lot unknown. here in asia, investors breathing a sigh of relief. there are the numbers for you now. although looking pretty muted so far as the gains go. the big news was coming out of japan this session. w

finance ministers my own at least a portion of the next round of aid to greece. and here's europe where most markets advance on wednesday on better than expected growth data from germany and france and also amid signs of support from the region china and in other news the world bank president robert zoellick will step down at the end of his five year term which expires on june thirtieth. there were some markets closed in the black lifted by heart prices for oil both. six and it even let's check on the index well versed in the my six as i've said most of the blue chips were higher oil majors were in the front line supported by stronger crude oil finished up under a percent spread bank ended higher as well the company finalized a deal to buy east european bank international truck make a buck the trend stocks fell over three percent after an unexpected thirteen percent jump on tuesday here's your getting which was are from alpha capital who is wrapping up the day for us. positive news today was the chinese pledge to hold asses denominated in europe so it's ruled the

greece r.t. athens. and it's now talk to harlan green who is the editor of popular economics dot com greece says it's met all the e.u. demands but now the dutch finance minister is calling for constant monitoring of greek finances does that suggest there's a suspicion that greece can't really fulfill all its pledges once it's got all that money. i'll tell you this they're using the wrong vehicle for this all. 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 in

it is but the pain is already there because after all this is not the first time that greece has been asked to cut spending it's been cutting spending now for eighteen months and in that period it's fair to say that the greek economy has entered a death spiral in other words there has been an economic collapse in greece when the first plan was mooted eighteen months ago the e.u. and the i.m.f. suggested that the economy might contract by three percent well in fact it's contracted by six percent in the last year unemployment has gone up to twenty percent sixty thousand small businesses have gone out of business since the summer so we are watching an economy now in free fall and certainly if the new measures which have just been voted are implemented then that free fall will continue and this isn't just a matter of figures percentages and fractions of g.d.p. and so on this is people's livelihoods people are going out of business people are going hungry pensioners will not have enough to live off this is a very very dangerous situation in greece at the moment how does that freefall what

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 fears europe's probably going to be ok. just putting it to the extreme position, but in a year or so time, if greece dwaults, people might start saying, well, fine. that's an extreme version of it, but that may be the way they

absurd to imagine that greece is going to stay in the euro but the loss of greece to the euro zone at this point would not be a dramatic event for the financial markets it's already been largely free discounted moody's rating agency doesn't believe this thing is going to stick and all very serious money is betting that greece will get will exit and in the end that that would leave the remaining eurozone countries. somewhat more stable than they are right now with greece and what amanda thanks so much political analyst and author of the gods of money and the death of the american century thanks been on the program. thank you but while euro zone leaders are hard at work to ensure greece remains within the euro their attention may soon need to shift to spain the country is feeling the pinch of deep cuts there too in public spending particularly in education and the protesters even this last weekend out on the streets again sarah firth reports from impoverished valencia. if you were a sentiment was riding high off to spain during the year as a back in two thousand and two but a decade on

greece athens. tell us what you think about greece's financial woes at r.t.dot com we ask what more rescue funds will mean for the country if the bailout is handed over half of you think athens is already doomed and more cash will make no difference a lot of you also believe the bailout and the cuts needed to secure or it will only make people's lives harder just six percent of you say the e.u. will not let greece collapse and even fewer believe bailouts are the only way for greece to stay afloat let's now talk to your home van overtveldt who is the editor in chief of trends and belgium's leading business publications we've been asking our viewers how they think the next bailout will impact on the greek economy what do you think. well i think to put it to summarize it's very briefly that it will make things worse for the greek economy the greek economy is in a deep recession at the moment the austerity program that is imposed on the country will worsen the recession which in its turn will worsen the budget outlook and so the negative spiral in which we breed

time running out before greece undergoes a messy debt default. chris no, sir sent this -- chris norris sent this report from brussels. >> as protesters took to the street to protest the new austerity measures, the pledge from brussels is uncompromising. you have to do more. what's been agreed to so far isn't enough. they sent out three conditions for greece to meet by next wednesday when they'll meet goen decide whether to aprove a second huge international bailout. the ministers are demanding the parliament vote in favor of the austerity measures on and sunday say an additional $325 euros in spending cuts have to be found and want written guarantees from those in athens they won't try to rewrite the deal after elections. european officials have been growing frustrated on greece making promises on which it doesn't deliver. that now has to change. >> no disbursement without this because we can't live in a system where poor decisions are made and repeated and repeated and if imply menation measures are time after time we are insisting on implementa

but that is not the point greece can't be let out of the e.u. simply because it will be considered a default on the bonds and triggering c.d.'s there is seven hundred seventy trillion dollars of derivatives and c.d.'s in the market and ninety five percent is by the five largest u.s. banks if the c.d.s. is triggered it will cause a global meltdown and you know about this we think that everything that has been done since the first greek bailout in may two thousand and ten has been to quarantine greece so that a greek default and a euro zone exit could be managed by the troika and the banking clients buying time essentially now moving on runic angel one on you tube said everything is allusion when it comes to the i.m.f. and everything is presented in a fashion that it is perceived to be eventful and substantial but is only a means to an end for an agenda with defined goals and i just wanted to say that this is something we talked about yesterday with reggie middleton and if we could bring this up he talked about how the i.m.f. has a history since t

that there are mainstream media is actually starting to report what is happening to greece in the real terms of what has happened there right well my media thought was my god did britain still the elgin marbles again. apparently it's a new band of thieves and they're taking everything but the elgin marbles and of course you find this at the nexus of any wholesale devastation that's occurred in an economy that's been gutted by thieves and bankers in the city of london or on wall street it is a financial war and it's a financial attack. on greece happening as we've pointed out here many times so i went to the expert on war i went to donald rumsfeld and i asked him what he thought of this looting of the museum in greece some here it is from friday and freedom going. on. yes the oversensitive donald rumsfeld and of course the you know this is a continuation on the theme of banking fraud so what did alan greenspan actually intentionally allowed wanted fraud to flourish and bank robbery to flourish because he said it would help the banking system so perhaps these robbers are just trying to u

time to go to athens greece and speak with a. professor and author dr yeah vero thank you yes welcome to the kaiser report thank you delighted being here arianna here's the headline no we formed nobel up what's the latest drawing in the greek belle drama. very simple story this deal is. going to fail just like the previous one in may two thousand and ten because you have the entity the group stage and you keep buying you debts wanted. on condition that these countries need to shrink its g.d.p. national income which was this will have to be based both and some blinded german taxpayers have had enough and this is the problem that germany and the german political elites. qantas the general the german elected and all of this drama enough insists completely besides the point it's aims like a case of financial sadism and other words. there are a number of ways to extricate greece from the problem why not would be for example to prosecute their bank their banker say fraud certainly god's grace over there are to begin with but none of th

do you care about greece? >> i'm exhausted by greece. i have to say. markets are like teenagers, i kind of think the thing you missed out was moody. because i look at these financial markets and think they're in the mood for love. here we are a few days before valentine's day and actually the headlines on greece have been terrible, terrible, for weeks. and yet equities and credit, to be fair, have both rallied significantly. and today is really the first kind of negative day we've seen. so i actually think like a petulant teenager, maybe we're swinging from a mood to love to a little less love because we finally noticed that greece could be about to unravel really quite quickly. >> do you agree that greece could be about to unravel really quite quickly, peter? >> absolutely. i mean, clearly the stage is set for a showdown for all intents and purposes. the second tranche of support from the imf is supposed to be coming in next month. and this weekend it looks like really all hands are on deck. this has got to be resolved inned very, very near-term. if i

people forces in greece. and all of us that the measures don't solve the problem they make it worse we need development we need development for the survival of the greek economy the growing fear among both the greek public and politicians appears to be that eurozone leaders. aren't all that bothered about their well being there's more people as we see. things of this situation because we were in greece cover way the way there really since last sunday's mass demonstrations in the tin uing uproar has 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 are likely to be part of greece's future. jake greece athens. tell us what you think about greece's financial woes at r.t. dot com we ask what more rescue funds will mean for the country if the bailout is over will have you think as we can see here on screen that athens is already m