it given that greece is. the position right now it is highly unlikely that there will be a lot of signals. you can't if you want really real interest rate that you're so you'll exchange rate adjustments on the accounts and in other words they will not provide a safety cushion for people against the future devaluation of the setting will be probably at the exchange rate close to the one at which greece went into the euro the first place but that will follow immediately with a devaluation of twenty to thirty percent with them literally hours of introduction of that exchange rate and that will continue to develop a show that it will continue expectation is that drucker would have to devalue by about sixty percent in the meantime before it hits sixty percent it probably will devalue by seventy percent first and then will straight them up a little bit towards the sixty percent this is all of course not exact science because we don't know exactly action it also will depend on how much it is will default on will the

we're looking at this weekend with greek elections now you could say that the political parties in greece have fallen into two categories those in favor of the two hundred forty billion euro bailout loan of course to extreme austerity measures and those against it now here are the major players were looking at sunday's series the party led by alexis tsipras this is one of their rallies there he is ok he's running on a staunch anti austerity platform he stated publicly that he believes greece will not be pushed out of the euro even if they break with the austerity measures tied to the bailout on the other side we have new democracy leader antonio is some of us now he's campaigned on a platform to keep greece in the euro zone but he's been walking a tightrope of promising fiscal adjustments to ease the pain associated with the memorandum now on june first that is the last date opinion polls were allowed to be publicized new democracy lead with twenty two point seven percent syriza had twenty two percent and eleven point two percent but i should mention there is a two point eight percent mar

hellenic republic and the eurozone but are we really looking at a choice between a catastrophic and for greece and lists chaos catastrophe at this point can nothing outweigh the benefit of a default we'll talk about it and on the crisis management side the european central bank reportedly stands ready to act if there is market turmoil the u.k. reportedly will unleash aggressive monetary policy in the face of a worsening euro zone debt storm so central banks are threatening to turn on the spigots. thanks. that's what they aim to do but will they drown us all in liquidity pumping an extra liter of liquidity into a container losing gallons by the day does nothing to change the deflationary dynamic will discuss plus it's friday we'll show you the incredibly creative way one of our viewers came up with to distinguish between a head and a proprietary trade once and for all since jamie diamond says he can't see that more in viewer feedback let's get to today's capital account. all right let's quickly recap what we're looking at this weekend with greek elections now you could say that the political pa

and that's the result of that greece will not have lots of fun. thinks it's over my will to fold effectively on the payment system capital controls will come in political system will become destabilized once again behavior is the greeks oh it is talking about food they're still going to provisions as we know from the reports from athens and from the us through these there is a capital flight going on that capital flight is going to accelerate through the illegal black market channels where people will be withdrawn from the banks the money where they have access to this money so for example the deposit boxes jewelry and things like that will be thrown out the marketplace the whole system collapses and there's a lot of that that is inevitable that you still have to leave you know there is an opportunity to facilitate default the real deal for all this is something that i would call the marshall plan which has to happen across the entire eurozone at certain point in time not just in greece but also in other countries like ireland portugal spain other

but not to greece because greece had the bay every single year of the four point two billion to the european central bank now why why do they see b. they see b. in its wisdom if you recall a year a year and a half ago entered the secondary bond market then bought stressed bonds of these islands on support of the problem up that failed of course. nevertheless it ended up with billions of worth of greek government bonds in its books now in march those bonds for all other bond holders where haircut savagely they said these so this would be wanted to take its money back to have its bonds greek government bonds that it didn't and it hadn't been deemed at face value even though the they say they never bought them at face value the bottom of the twentieth or thirty percent . discount which means that the greek government and that's how i finalize the whole thing. two and a half weeks both for both to billion from one arm of the european union from the epicenter in order to give it wholesale to the e.c.b. so that these could be could profit from the bankruptcy of the greek state where the g

with the micro picture that affects so majorly the macro picture and will european leaders allow greece to renegotiate its bailout terms will different officials are saying different things but we'll talk about how that could work when it comes to wast parity you know that blanket term austerity well it involves actually any number of measures and some are better than others when it comes to helping or hurting growth will break down the hierarchy and look who is using the eurozone to deflect. but europe is a significant event forward but your opinion about this treaty a position. that was jamie dimon back on the hill today before what with out it was a tougher committee we'll show you the best of and talk about what was missing let's get to today's capital account. with the greek elections taking place this past weekend and europe the focus of the g. twenty going on now we decided to devote a bit more time to the subject of europe's debt crisis and specifically the case of greece then other financial woes have and this is in large part because we feel for one the mainstream media produc

greece has recently forced to take from the f.s.f. this is a perfect example of your ev your schema of a ponzi austerity who exactly forced greece to take the loan was it in the interim government that accept the loan who profited from the loan so go into greater detail in the pond just barely reversed ponzi scheme as it relates to greece and the bass amp loan you will recall about the last number we had this supposed economic about being installed that's what i mean is that i know i'm elected but i mean is that a very famous that probably means one of the worst central bankers in the world given up together with missing initiate increased interest rates a month before human brothers went up when it went down in flames this gentleman mr bob i mean this will happen to be a colleague of mine of university of auckland. effectively presided over the negotiations that led greece to signing a second memorandum of understanding second bailout the right i spoke of that the. second memorandum that mr pope of the most because i thought what gre

inability by the parties to form a viable coalition to govern the country all eyes seem focused on greece at least all eyes in our world of financial media and the results of this time are largely similar though less fragmented with the electorate coalescing around what may appear to be a new two party landscape of new democracy and series they got twenty nine point six and twenty six point eight percent of the vote respectively so new democracy taking first place but very close with syria of course these represent a pro bailout an anti bailout party syriza anti bailout party has refused to join any coalition that is seen as pro bailout which leaves the door open for a possible coalition among the traditional major parties of. new democracy along with the democratic left which could help give the government some amount of legitimacy because we know they need that and legitimacy it seems is the one thing missing in greek politics these days to boot that and a clear mandate by the people on how to deal with the country's collapsing economy and disintegrating social climate because greeks re

just ask greece. for greece and the other troubled economies to recover they need growth. without it the eurozone is in trouble and that could lead to trouble for the already shaky recovery in the u.s. it's no wonder, brian, the world's media descended on this country over the weekend to see how it played out. >> all right. stephanie gosk in athens tonight. thanks. >>> our first two stories here tonight, greece and egypt among the places being watched closely at the g20 summit, which started today in mexico. president obama is there. so is russia's president vladimir putin. there is new tension between those two between the u.s. and russia over syria and the uprising there and you could see the tension between the two of them today. our chief white house correspondent and political director chuck todd reports tonight from los cabos. >> reporter: it was the first meeting between president obama and newly reinstalled russian president vladimir putin. the stickiest issue they discussed? syria. >> we discussed syria where we agreed that we need to see a cessation of the violen

and the question is if this democratic disillusionment is really unique to greece or is this something that is mis metastasizing across the european continent spreading into countries like italy and spain with the eventually wallaby that the tumor will at some point prove too large for the german corps and its surplus brother and to remove without risking a european wide disintegration well earlier i spoke about all of this with a yawn as pelosi is a contributor for the american prospect former editor in chief of free sunday a greek journalist here's his take on the election results. basically the the centered on the issue of. the euro and what it takes to stay in the euro and most people were afraid that the victory would jeopardize which is usually the euro turn to new democracy even. even though they were enthusiastic about the some of us in whose policies then most of the people who are really sick of austerity decided to go for sousa to try to give them the victory and in the end as you say it was a close run thing but the fear of an exit was slightly higher than the revulsion of

bodies and greece in hiding greece's debt to get them into the european union this is a better story that's been around for a while now they're finally getting around to focusing on it the fact that common sacks help greece high debts goldman sachs of course a big player in causing financial disruption around the world your thoughts. well i was reading in the declaration of the head of. goldman sachs yesterday mr blankfein and he was she saying that he wishes to stay on forever so only his bank but he will be staying on forever and this reminds me that when we had our debate unfortunately i did not know that goldman sachs was advising greece not for the sake of greece but for the sake of goldman sachs so it was advise in greece of telling them how to hide some statistics to hide the real bad shape of the economy but on the other hand there was the same time apparently betting against the bonds of greece there would be two types of countries no longer developed and underdeveloped no longer rich and poor you're going to have two types of countries in the world today emerging countries

that ad you just saw the lure tourists to greece was not paid for by the government it was frowned funded to raise money for from all over the world we'll talk to one of the founders of the initiative that made this possible in the second half of our show plus can and should the u.s. tax code attempt to bolster jobs and innovation in alternative energy senators were talking about it on capitol hill today but commodities expert dr stephen leeb is here to tell us if the u.s. is already being left in the dust compared to other countries when it comes to renewable energy development and what this means if we truly do face oil scarcity let's get to today's capital account. so by late yesterday the spanish so called solution the bank bailout had already turned back into a crisis it is evident in spanish bond yields that we saw a spike today to a record dragging italian bond yields with them they they were up to and of course greece is next on the docket we have elections this sunday so uncertainty really seems to be the name of the game and in terms of policy solutions and to what extent the pr

you guys are actually making out greece as if it's some type of a small problem. it's a huge problem. >> it is, similar effect-- >> it's maryland, for crying out loud. >> you guys are looking at the size of the country and that's it. let me tell you the number one customer for china right now is europe, europe goes down and china is not there to buy our treasuries. >> what about this perspective, guys, the wall of worry, let's get susan in on this one. you mentioned uncertainly, not knowing the next step. we've been following the european sovereign debt crisis for years now, this is a crucial vote this weekend. susan, what do you think if we get certainty about what's going to happen with europe, maybe you disagree with what really is there now, but we'll get a little more clarity and that's got to help sentiment and the markets for the u.s. >> i absolutely think it will help and look, the biggest problem is not the direct economic impact it's the fear and uncertainty. i don't disagree he with the psychology of the markets. you can talk the markets down. what's ha

second memorandum that missed it by the most because i got what greece. was going to commit it was a cd of three things loan installments that it received from the leica. payments that we make to the troika from those loans and thirdly a state of the measures that these screwed up relation to the ground. the government has been the interim government but the economic tactics opposed the government was. a lie and on the. parliamentary support of the major parties cannot by placing these social civil servants sort through this completely so the greek government begins its part of the now let me give you mention of particular pain of the people the people if you meant some too. two and a half weeks ago according to the show journal of lonesome and raymond's greece was was it was going to receive five point two billion euros from the epicenter of which five point two billion is it would have it will be able to keep one billion for the use by the greeks they for buying pharmaceuticals for them for hospitals and grain for schools and pensions and stuff one out

greece exit the single european currency. >> if greece led to the euro, the reaction would be frantic. every government, every central bank and all financial markets would be faced with the immediate choices. the first 48 hours of a greek exit would depend on precisely why the exit happened. politically, it is impossible to expelled breeze from the eurozone. neither of the parties likely to win the election want to leave. driven by economics, driven by capital flight, bank loans and the breakdown of cross border payment mechanisms. correct -- >> you are going to get less money back. there is also a significant likelihood that banks would go under in greece. the last number of companies would be bankrupt as well. there are straightforward forms of default. >> with the far left writing -- riding high in the election, a collapse would spell trouble. and there is already trouble. >> we have total polarization and an economic program the greeks did not voted 4. we have violence in the street and near not seize in parliament. -- near nazis in parliament. it is going to be awful, but it is a

in greece nothing has been work.ow you have to send tax forms out and start collecting taxes and implement more measures. you have to fire 15,000 civil servants. what makes this a problem. >> reporter: how does this play out? ultimately you believe there will be a much greater fracture and it wouldn't just be from the greek leaving euro, whole euro could break up. let's look at greece. four main issues. budget deficit. lack of competitiveness. we import more than we export. our economy is unreformed. red tape bureaucrat and unsustainable debt. yes there was a bit of package that extended the maturity of the loans and interest rates went down but with 160% debt gdp that's unsustainable and nobody in their right mind will invest in greece. it leaves 22% unemployment in greece and 6%, 7% in northern europe. greek believe go to germany but we don't that have labor mobility to support in europe now that we have in the u.s. no levers to relieve the pressure. what will you do with the unemployed. >> reporter: you sound very

can greece afford to do that? >> i cannot tell you about specific economic -- speak about specific economic details, but i think that it's now the time to change things and try to work hard in order ensure the strong position of greece inside the eurozone. >> ok. lydia, thank you very much indeed. in fact, let's go to berlin now. we can go to steve evans. lydia learning her german in preparation for finding employment perhaps with a german firm. as far as angela merkel is concerned, she was saying there was no miracle solution that germany could offer the eurozone crisis at the moment. do you detect any change at all in her position? >> i can't detect any change at all in her position. her position is germany hasn't got limitless resources and there will be no renegotiation. having said all that, she's not lecturing greece's historical baggage here. so she's staying silent on what greece should do, but it's absolutely clear that she was -- she will find great difficulty with a government that had a mandate to rene

. >>> it's the final countdown in greece. people prepare to head to polls on sunday potentially deciding their fate in the eurozone. >>> very good morning to you. welcome to the program. major central banks have begun outlining their positions after coordinated action to support markets citing g-20 sources. if the greek election result triggered a market rout, central banks would step in to prevent a credit squeeze. >>> the bank of england will restart its emergency liquidity facility or extended collateral term repo facility next week on the 20th of june. the bank of england says it will hold one august shun per month until further offering 5 billion pounds at each auguction. >>> and mario draghi said he is ready to support europe's banks. he says the ecb will provide liquidity to solvent banks where needed. >> the ecb has the crucial role of providing liquidity in return for collateral. this is what we have done throughout the crisis, faithful to our mandate of maintaining price stability over the medium term. >>> silvia is

surrealism already ahead of the june eighteenth elections thanks to this fear campaign bankers in greece say that as many as a billion euros a day are being withdrawn from greek banks and used to stock up on food like pasta and canned goods but cirus a party leader alexis sapir us pushed back on tuesday saying that the e.u. will be forced to renegotiate with greece once his party takes power saying if one of the seventeen countries is brought to collapse the fire will become unquenchable and will not be limited to greece and the southern countries it will break up the eurozone and that will not be in anybody's interest sapir as well not to detail some of the reforms he will push through once elected saying if we are elected we will move swiftly swiftly to recapitalize banks with common voting shares what we call socialization of the banking system put them under public and social control so the greek depositors feel safe so this is the right way forward for greece and how might the technocrats and banks toure's who are ramming austerity down the throats of working people in greece and al

again at the end of the week the fate of the greek economy and society looms large if greek you have greece decides to leave the euro what kind of a shock waves will that decision have on the rest of europe also another secret government document was leaked today revealing new information on president obama's free trade policy beliefs what exactly did the report say what is the why is the white house standing up for foreign companies and not the american workers and what ever wonder what america would be like with a fascist government a bit romney becomes president former vice president may well have suggested we'll find out very quickly explain why and how into that steely take. in screwed news of an election looming at the end of the week greeks are preparing for the worst case scenario an exit from the euro and is suing economic crisis polls show that the leftists are is a party which is against austerity and wants to cancel the greek bailout is winning by a slim margin heading into sunday's election a series of party victory could mean greece leaving behind the euro and going back to th

>> well, it is true that greece is a very small economy in europe, so many policymakers outside greece are making plans. they have their firewalls now and they are playing with idea that they are leaving but it's basically the litmus test of what the eu can do. if greece cannot be rescued we will see a banking run in ireland, portugal, perhaps spain and that would be a huge, huge challenge. >> speaking of spain and italy in particular, they are of course struggling with very high bond yields at the moment. how much more would a greek exit impact this. >> there would be a major impact. the situation in greece would deteriorate tremendously. all banks would be bankrupt. that would have an impact on all banks in europe, particularly in spain and italy. we would have seen companies going out of business, almost all of them with euro credit. the rescue plans would be really squeezed and being pushed forward. >> i know that markets have really been looking for some certainty to come from somewhere. what does the eu need to do now to ensure that these problems don't spread as some markets are

welcome back you're watching r t here is a look at the top stories of the week people of greece had to the polls for the second time in two months to decide the country's future with their choice impacting the entire euro zone we are left with two options to side with a stereo or to revolt against a move which could ultimately spell greece's exit from the euro. the united nations' peace plan for syria is near collapse as observers say it's getting too risky for them to continue their mission and escalating violence this as moscow denies u.s. claims that a russian military cargo ship is on its way to syria with weapons and troops. and in egypt activists say the revolutions in jeopardy and are boycotting the on going presidential poll after the military claimed all branches of power for itself as long as is facing off against the bards last prime minister with great ease saying neither man's a champion of change. now our t.v. chats to the person who predicted the global economic crisis the consequences of which are still being felt across the world. mr b. thank you very much for your tim

i max keiser this is the kaiser report so what's going on with greece did they put a gun to their head and they did the right thing. max keiser markets finance chaos. yeah you know i want to look back at some of the headlines preceding the sunday vote that happened in greece to remind you as we go forward because you see spain and italy are also now you know their cost of funds are increasing it looks like chaos will follow there perhaps france as it got downgraded so let's look at the lead up to the greek elections world bank warns that euro collapse could spark global crisis you're facing lehman's moment says outgoing head robert zoellick as greeks are warned over key election the telegraph warned greek election catastrophic vote to leave euro would cause bank run. well you know if it was like a lehman brothers moment billows remember what the lehmann brothers moment was all about the stock was down sharply and then a false rumor was started and attracted naked short sells that is this a counterfeit stock sales of lehman brothers stock flashforward to greece greece also being attacke

thank you. >> eric: jamie, from greece to iran. the u.s. and five powers meeting in moscow tomorrow for yet another round of talks aimed at trying to stop iran from building a potential nuclear bomb and the latest negotiations come weeks before the sanctions kick in, an oil embargo go from the european union and with iran in turmoil and the currency lost 50% of its value, prices sky rocked 40%, will more economic sanctions finally force tehran to give into western demands or will the iranians continue their brazen abject defiance? john bolton, a former ambassador to the u.n. and a fox news contributor who joins us every sunday at this time. good morning, ambassador. >> good morning, eric, glad to be with you. >> eric: there were zillions of meetings in vienna and istanbul and tomorrow, moscow, why would we expect any different result from the meetings that start tomorrow than before? >> well, i think it is very unlikely there will be a different result. we have seen a lot of coordination in the past few weeks, between russia and iran. every

more than greece, portugal, irish and spanish debt together. how do you stop it at greece? >> last time you were on, we talked about the risk of systemic events based on whether or not greece stays in the euro and firewall greece. and at the time, you thought that the u.s. financial system could handle it and you were pretty confident that, indeed, we'd kind of moved through this. but when you look at what happened yesterday, after that reuters story about the central banks and the whipsaw, it seems the volatility and fear trade is moving back off the table. >> i think systemic risk is always there to some extent. the u.s. is not completely isolated from what's going on in europe. i think in terms of exports, surely we in the u.s. withstand a slow down in economic growth in europe but if the issues spread in to the rest of europe, if greece leave it is euro, i continue to believe that has an affect on our capital markets here in the u.s. for that reason, we continue to talk to investors about the need for including noncorelated asset classes. >> okay. for the rest of the ye

and no is an opportune time to mention silver for greece i want to get into that and because this is really an incredible moment in history everyone is talking about a greek exit from the euro you believe there is an opportunity for greece to introduce a silverback currency it's a five step plan i've seen this work already it's fantastic let's walk through it well it's a very it's a very simple plan and in mexico. was had great support from politicians but unfortunately or fortunately we have not arrived at a hopeless situation and that is a favorable aspect of the present situation in greece that is hopeless and the situation for europe is hopeless and when there is no hope is a moment. when a new thought can be introduced a new thinking can come into the picture because the the the leaders the leadership of europe has been going around in circles for months you know with meetings one after another and now we're going to find a solution in the final solution is coming at the next summit and time goes by and there's more and more talk and nothing they're going around in circles becau

but greece has obviously been in the news and everyone's eyes have been on greece and then you still have italy and you still have spain and spain is the fourth largest economy in the euro zone and so you know what happens there right because we keep asking these questions of what are the referee caution is how it can affect the global economy if spain does exit or if it doesn't regardless i guess it's been ok for the u.s. for now because everyone's just buying up you know our government bond but this is spain what kind of you know what kind of a shock that they like you know the euro could never make it. they can't even bill it's been spain's two laws you were saying they're the fourth largest economy in the reality is their bubble was monumental we're not even halfway done with the write downs and need to be taken property prices wouldn't go down much for the the whole spanish banking system is installed basically so the question is how do you deal with that the right thing to do would be to write down the debts you have to hold his wife. take subordinate write that down as much as

twenty but also that of greece and of greece's victorious new democracy party planning to renegotiate the current austerity package with the e.u. which second place wanted to scrap all together political risk consultant john holzman says whatever greece ends up doing the calm before the next storm will not last long. it's been an alice in wonderland election on the one side you have surprised with the far left party saying we can ignore all the bailout terms and they'll still love us and give us money which is a fantasy it sounds like the mock turtle or the mad hatter and on the other side you have present to designate probably some are saying once i win because the europeans like me i can renegotiate the bailout terms and there won't be any problems that also will be proven i think to be a fantasy and so although this buys us or respite the reality is that this mad hatter's tea party doesn't change anything in the long run greece is going to have to live up to these terms they may get a little bit more time to do so but the terms themselves as the foreign minister of germany made ver

the move which could ultimately spell greece's exit from the euro. the united nations' peace plan for syria is near collapse as observers say it's getting too risky for them to continue their mission and it's claimed violence this is moscow denies u.s. claims that are russian military cargo ship is on its way to syria with weapons and troops. and an egyptian activist say they're revolutions in jeopardy and are boycotting the ongoing presidential poll after the military claimed all branches of power for itself as long as it is facing off against mubarak's last prime minister with critics saying neither man's a champion. of time in sports now and enters got the latest from your twenty twelve and beyond. welcome to the sports these all the headlines all right should you crash into the european championships after one will defeat to greece he reached the quarter finals against julio. while the czechs also made the quarter finals off to a one zero win over poland. and. number three roger federer beats russian rico youzhny to reach the final for the. first