contrary to what some folks say, we are not greece or portugal. turns out that our problem is we have cut taxes without paying for them over the last decade. we ended up instituting new programs like a prescription drug program for seniors that was not paid for. we fought two wars and did not pay for them. we had a bad recession that required a recovery act and stimulus spending and helping states and all backs -- all that accumulated, and there is interest on top of that. to underline that, what is required is that the deed to unwind -- we have to clean up our tax code so we are not giving out a bunch of tax breaks to companies that do not need them and are not creating jobs. them and are not creating jobs. we cut programs that we don't need and we invest in those things that are going to help us grow. every commission that has been out there has said the same thing. basically taken the same approach within the margin of error. my general view is that if the american people looked at this, they would say some of these decisions are tough, but the

better solution if germany would draw from the euro many experts say that you have to drop greece or portugalor even ireland of the southern periphery of europe but what does being at the end of the do it would mean that will have their debts in europe and. the local currency is there and will be devalue it or the euro will go up and then the problem is even higher if germany pulls out of the euro then there's some situations totally different then views your debts will decrease or will be devalued and this is exactly that what those countries need i could just make an historical observation here after the second world war greece was among the countries that waged war reparations from berlin so that germany could recover economically isn't it time now for germany to return the favor with no strings attached. i mean this is a very political question we have to deal here with economical fail just for example if. you don't click with the right cards and hired some critical economical figures and then you open your hand and want somebody this is a totally different case i mean a southern power if

is not greece or portugal and the way of basing the tax rate increases and changes in obama care shoulde handled in the election. this is november 2012 issue. i would like to see a short term debt deal and let it be fought out in election time. that's where the voters make the choice . the end game is november 2012 and obama is playing it poorly and poll numbers are showing he's not getting advantage out of being mean and nasty and holding the u.s. hostage. this is not to his political advantage either. >> art, thank you. >>> and we'll make a deal fast or deal with it yourself. lawmakers telling them to raise the debt ceiling right now. dad, why are you getting that? is there a prize in there? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tting little o's made from carefully selected oats that can help lower cholester. is it a superhero? kinda. ♪ but also a caring touch. you learn to get a feel for the trouble spots. to know its wants... its needs...its dreams. ♪call 1-800-steemer. >> the pictures say it all, doesn't it. many of you are

or portugal's credit rating has been deemed junk. and in greece the owner unemployment hovers at about sixteen percent and the debt crisis has sparked anger nearly all of this anger stemming from poverty and failed economic policies in the us as well high unemployment sits atop a mountain of problems like a housing crisis and slow financial growth. this is the world christine legarde inherits as she begins at her new post as managing director of the international monetary fund in her first formal meeting with the press at the i.m.f. headquarters in washington she seemed optimistic in her hopes the international monetary fund is here to serve and to provide services to its hundred and eighty seven members it's not the sexiest of news stories but still the inaugural press conference for the new managing director of the i.m.f. did garner quite a bit of media attention most likely it had less to do with christine lagarde herself and more to do with the reason why she's here. campbell what lessons do you think ought to be drawn from the way the u.s. le

north i mean you have you ever compared the current situation and delivers the situation see in greece or portugal their economic situation is extremely difficult for the way as. you say that the situation in belarus is better or worse yet. globe wish you would show park until you all fish really well the situation on the dollar says better yet of those countries at least this far as i know are facing as systemic crisis we have it's not a crisis it's just some difficulties in certain sectors of our economy. but these difficult just don't affect the manufacturing industries or our social commitments only those areas are working totally as they should you know you know if that we have economic growth which your government provides fons for all the social programs which we even have a slight budget surplus. it's a surplus deficit. by the way those are the obligations that we assumed to get there with the common economic space. to get this moon or yeah from the. anti-crisis fonde you can get there but. what i think i think it is though for them it was a look my final question and another quote of your

it's the best solution if germany withdraw from the euro many experts say you have to drop greece or portugal or you can file and all the southern periphery of europe but what this being at the end of the do it would mean that they will have their debts in europe and. the local currency is there and will be devaluated the euro will go up and then the problem is even higher if germany pulls out of the euro then there's some situations totally different then the use your old debts will decrease or will be devaluated and this is exactly that what those countries need. and now to latin america it's emerged that drug dealers in mexico have been kidnapping computer programmers to force them to hack bank systems experts say the i.t. experts are being also being used for credit card fraud scams one over now two dimitry bester jeff he's a latin american specialist with moscow headquartered worldwide antivirus firm kaspersky kaspersky lab and joining us live now from quito ecuador thanks very much indeed for joining us some tell us in what way could kidnapped programmers be useful to drug dealers. a lo

on here it's a better solution if germany would withdraw from many experts you have to drop greece or portugal or even island of the southern periphery of europe but what would this mean at the end of the do it would mean that they will have their debts in europe and. the local currency is there and will be devaluated euro will go up and the problem is even higher if germany pulls out of the euro or some situations totally different then do the euro all debts will decrease or will be devalued and this is exactly that what those countries need. whether still ahead in our weekly program today the nightmare returns a powerful earthquake hits japan shores once again bringing a frightening minded people. to pieces from watches the sounds. of a french ship that's part of a god aid for today has been permitted to leave greek waters several vessels remain blocked in port patellar with palestinian activists tearing a book a gaza stopped by a group of forty said this about this then tried to reach the place on their grief but israel asked european authorities to block hundreds boarding planes increased

it's a solution if germany would withdraw from the euro many experts say that you have to drop greece or portugal or even island or the southern periphery of europe what would this mean at the end of the day it would mean that they will have their debts in europe and. the local currency is good be devalued the euro will go up and then the problem is even higher if germany pulls out of the euro or some situations forty different then the use ural debts will decrease or will be devalued and this is exactly that what those countries need. well as most of the coming our weekly program including the end of an era. u.s. shopping list sets off the international space station many believe the closure of the program would have been painful consequences. for french ship that's part of the gaza aid flotilla that's been permitted to leave greek waters. wessels remain blocked and not effectively protesting that this area paid for locating was stopped by greek authorities or. activists then try to reach the palestinian territories. but israel asked european authorities to lock hundreds of planes increased secu

many experts you have to drop greece or portugal or even ireland of the southern periphery of europe but what does mean at the end of the day it would mean that they will have their debts in europe and. the local currency is there will be devalued euro will go up and then the problem is even higher if germany pulls out of the. situation is totally different and then do zero debts decrease or will be. evaluated this is exactly that what those countries need. well still ahead in our weekly program today the nightmare returns of a powerful earthquake hits japan shores once again bringing a frightening reminder to people who really picked up the pieces from march's disaster. a french ship that's part of a guard aid has been permitted to leave greek waters but several more vessels remain blocked in port the fertility with pro palestinian activists monetary aid for catered gaza was stopped by a group of thirty seven of the smart activists then tried to reach the palestine to achieve by their own autonomy but israel asked european authorities to block hundreds from boarding planes increased

euro zone's are third largest economy and saving it would require more cash than bailing out greece or portugal at this point i mean our partners are ready for a rescue operation on that scale it might seem there's quite a lot of a bailout fatigue going across the region. well look i mean this is really a crisis because i mean greece is only what two and a half percent of the entire eurozone economy something like but it will give the first serious heavy hitter is everybody who's ever bought a designer italian or an italian car in august but in engineering and it's ultimately going to be hugely difficult i mean the germans only two days ago have issued a fairly rigorous now the whole idea that they are going to manage to involve themselves in some sort of a rescue it's a huge crisis and actually i don't really know that the euro zone has either the stomach politically to manage to rescue this economy or indeed that they've got the funds to do it. and it's perfect of italy needs to launch a bike they need to issue about one billion u.s. dollars. trillion u.s. dollars in the course of their six t

in say germany are far lower businesses and households and they are in the periphery say for greece or portugal so a lot we do although it's raise interest rate increase does mean higher rates across the whole of the euro area unfortunately the areas that need least the tightest management records that are going to have the most tightening as a result of this decision. now tell me if it's so hard for the for all countries why does the e.c.b. choose tightening policy is the risk of overheating that height. of the z.b. is always been absolutely clear that it focuses on the euro as a whole. and for the negative headlines you get coming out about europe at the moment have to remember that greece portugal and ireland combined together only account for around six percent of your area output much larger economies such as germany france russia performing relatively well here obviously capital markets we expect europe of this for the region as a whole to increase by around two percent this year and a similar pace next year when inflation is not to fall back below two percent and still march or april nex

germany are far lower than businesses and households and they are in the periphery say for greece or portugal so although we do hope those raise interest rate increase does me higher rates across the whole of the euro area unfortunately the areas that need least the type system and requires that actually have the most frightening as a result of this decision. let's look at the markets european indices extend their rise up to the european central bank grazes main interest rate to one hundred percent the bank of england has kept its key interest rate on tanks as worries about the economy is recovering overweight concerns about a block target nation efforts in the dax are pointing upwards in london hedge fund manager mangrove rally two point nine percent through pouring record sales of nine billion dollars. the russian markets are trading strongly in the black tracking games in the u.s. and asia investors globally are keeping an eye on the post office called fresh clues as to its handling of policy itself. that's the business for this hour i'll be back with more at forty five minutes from now. i

best solution if germany would withdraw of the euro many experts say that you have to drop greece or portugal or even island or the southern periphery of europe but what what this being at the end of the day it would mean that they will have their debts in europe and. the local currencies then will be devaluated the euro will go up and then the problem is even higher if germany pulls out of the euro then the sum situation is totally different then these ural debts will decrease or will be devaluated and this is exactly that what those countries need. we've got plenty more pictures of the unrest surrounding the bailouts at our website is dot com online all the time including dramatic footage from athens of one of our correspondents becoming caught up in the fun and showdown between testers and police and continuing to report through clouds of tear gas. on the web site how to find the secret to eternal life we've got all the advice you need if you want to live forever all that and more at altie dot com. the russian government has published a list of all individuals and organizations proven to b

in say germany are far lower businesses and households and we are in the periphery say for greece or portugal so although we do hope all those raise interest rate increase does mean higher rates across the whole of the us unfortunately it's the areas that need least tartus movements across russia to have the most heartening as a result of this decision. stocks in the u.s. are higher the start of the trading session boosted by better news on jobs the government reported thursday that the number of people making first time claims for unemployment benefits the lowest in seven weeks target corporation costco all sales corp and other major retailers are also reporting stronger sales produce and european indices extended their rise after the european central bank raised main interest rate to one and a half percent and hinted more increase in coming months the bank of england has kept its key interest rate unchanged as worries about the economy's recovery outweighed concerns about above target inflation the footsie on the dax up pointing upwards and london hedge fund manager martin group rallied mos

america should not be a deadbeat the we should not be like greece or portugal and it should not be annd to hold the nation hostage because they want--. >>neil: wait, wait, wait, they are house taking to stop spending but liberals are not if they want to keep spending where it is? >>guest: no, liberal dozen not, we understand we need cuts in the budget but not in areas where we are costing innovation and infrastructure investment. we should, the hedge fund folks making billions and billions, there is another steve cohen paying $1 billion and he pays 15 percent so that is why he has art pieces and cars and homes. the average american cannot stand that. oil breaks. tax breaks. >>neil: the average american cannot stand this. i guarantee 70 years from now democrats will still be talking about the evil george public, it is time to move on, it is time--. >>guest: like you said the american people do not want do see this and we do not need the boehner plan that continues this with another vote. >>neil: all right. okay congressman, thank you very much. >>guest: thank you. >>neil: what could be

contrary to what some folks say, we are not greece or portugal. turns out that our problem is we have cut taxes without paying for them over the last decade. we ended up instituting new programs like a prescription drug program for seniors that was not paid for. we fought two wars and did not pay for them. we had a bad recession that required a recovery act and stimulus spending and helping states and all that accumulated, and there is interest on top of that. to unwind that, what is required is that we have to clean up our tax code so we are not giving out a bunch of tax breaks to companies that do not need them and are not creating jobs. we cut programs that we don't need and we invest in those things that are going to help us grow. every commission that has been out there has said the same thing. basically taken the same approach within the margin of error. my general view is that if the american people looked at this, they would say some of these decisions are tough, but they do not require us to gut medicare or social security. they do not re

adjustment side so speaking about the probability of default well what about countries like greece or say portugal are they closer to default than the is much closer it has problems of course. it it's much more realistic. or alist the development of this creation in that countries not only technical about some kind of. political economical default i mean interest that. it's dangerous but it could could be managed what do i mean by a managed it's not just i will not pay my debt is me as you know the problem the country will talk with my creditors about the solution of what could be the solution some kind of arising on the debt exchange of my obligation to some of the better conditions with some haircut it means that the creditors will lose some money but just some ten percent fifteen percent twenty percent that is the point of discussion of a second so it's a lot of countries a lot including russia. you know by that situation and after that they have some chances for recovery for new developments some of them use the chances go out. but the targets then before people today start talking about withd

that's when the markets won't buy our debt anymore, when we become like griese or portugal -- greece experts believe we're three or four years away from that. we need a lot more reform than what we'll wind up in the next couple of days. we'll have to solve it before we ever get five years out or six years out or we'll have a much bigger problem on our hands. we're still in the first inning of fixing our debt and deficit here and frankly, i don't like -- i'm sure i'm not going to be very excited, i don't know whether i'll vote for it or not, about whatever compromise comes out here, but we need to immediately get to work on tax reform, entitlement reform, and other things that can get our hands around this debt and deficit going forward. >> gregg: you've been a fiscal hawk. thank you for taking the time to speak with us. orange county, california congressman, thank you very much. >> heather: let's break down into plain terms what congress is doing with the debt debate. pretend you have a credit card, it's almost maxed out. next month you will not have enough cash to pay your bills. the

there actually defending our interests and you see that there are no plans anywhere where the greece portugal or ireland to develop a real economy at all irish finance minister michael noonan has pleaded with consumers to replace their clapped out refrigerators and tumble dryer so where are these tumble dryer is a refrigerator is made probably china or germany it's not going to help their economy at all consuming does not help their economy producing helps their economy companies that the irish government is encouraging to relocate to ireland and in dublin now are companies like zynga that create virtual currency which is a backdoor way into gambling they just figured out a way to go around gambling laws this is what the irish government wants they want horseracing they want gambling and they want to collapse. i get it i know the government can do this they can press a law that allows people to cash in their dollars forgiveness this way you keep them a bread and broke good going so over in the us a response to deficit has been an attack on workers as well union workers replaced with prison labor

countries run into trouble that would be brazil and mexico would be in the ninety's greece ireland iceland or portugaltaly spain now in europe you can the united states you see the same pattern coming time and again and when you see the same pattern it's because there's a model and when there is a model a somebody is planning it and b. most important a model is predictable so it's very important to start to understand how the model works so it can become predictable and we can see the necessary measures to mitigate and even to compensate. all these all coming. tomorrow will be great you know even america all right adrian somebody thanks so much for being on the kaiser report thank you max my pleasure already that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert if you want to send me an email please do this at kaiser reported r t t v that our year went on ice time to the max guys are saying by al. home. from.

every one of the italy greece portugal spain or belgium. all of their debts are going up over the next few years and none of those countries have declining debts their current deficit this is just getting worse it's not getting better and five years from now we're going to look at each other and say my god now the world is coming to an end because the debts are too staggering for anybody to deal with issues one of the biggest problems that is the biggest criticisms of the of the euro zone is that it doesn't really promote a lot of fiscal responsibility because you can there's moral hazard out there or you could just see you know just wait for the for the lifeboat to be you know to rescue you because you don't have to be responsible i mean is this something that needs to be changed where people are meeting held accountable because like you said when the middle class is gone who's going to be paying taxes. look you're absolutely right and you know they they believe that peer pressure and public pressure could keep these companies in line but

or c. all of the above well let's stick back here with italy because greece ireland portugal are gone or is but those countries are less than four hundred billion dollar khana means now we're going we're seeing spain and italy attacks italy is a two trillion dollar economy with two thousand tons of gold. twenty four hundred tonnes ago italy it's the second biggest position in the euro zone and if that's the mother lode bethink that's been the target all along the greece the ireland portugal those are side shows there are little micro-cap countries not much of a deal there but italy's got actual gold at the i.m.f. and the people who support the i.m.f. the terrorists as i mentioned like eric cantor they're helping to facilitate the thieving of that twenty four hundred tons of gold because that is meaningful yeah of course because they need that gold because of course is the i.m.f. going to get the airport landing fees from naples or sicily. no but italy is a little foreign country to look at it i mean it's kind of berlusconi is a media tycoon he owns ninety percent of the media there he's the

contrary to what some folks say, we are not greece or portugal. turns out that our problem is we have cut taxes without paying for them over the last decade. decade. we ended up instituting new programs like a prescription drug program for seniors that was not paid for. we fought two wars and did not pay for them. we had a bad recession that required a recovery act and stimulus spending and helping states and all that accumulated, and there is interest on top of that. to unwind that, what is required is that we have to clean up our tax code so we are not giving out a bunch of tax breaks to companies that do not need them and are not creating jobs. we cut programs that we don't need and we invest in those things that are going to help us grow. every commission that has been out there has said the same thing. basically taken the same approach within the margin of error. my general view is that if the american people looked at this, they would say some of these decisions are tough, but they do not require us to gut medicare or social security. they d