the imf is for the rich. host: and back to the imf report on the u.s. this is available at imf.org in case you're interested. it's -- it doesn't read quite as easily as the newspaper article in "the washington post." but you can follow along here. since 2007, the debt held by the public in the u.s. has almost doubled to 64% of gross domestic product. host: another suggested lifestyle change by the imf. oklahoma city, michael, republican. hi. caller: good morning peter. want to insect squect a little bit of conversation. the first lifestyle change we need to do as a people. is give up socialist government. the decisions that have been made by this government are atroshese. i guess i'm considered -- host: name one. caller: well, not respecting the will of the people. the health care debacle. the stimulus that hasn't worked. bowing to foreign leaders, not enforcing border control. the foreign disaster he is not controlling. host: but given what we're talking about lifestyle changes, i.e. economic. caller: i guess i'm one of the wealthy. i make over $500,00

the imf is for the rich. host: and back to the imf report on the u.s.is available at imf.org in case you're interested. it's -- it doesn't read quite as easily as the newspaper article in "the washington post." but you can follow along here. since 2007, the debt held by the public in the u.s. has almost doubled to 64% of gross domestic product. host: another suggested lifestyle change by the imf. oklahoma city, michael, republican. hi. caller: good morning peter. want to insect squect a little bit of conversation. the first lestyle change we need to do as a people. is give up socialist government. the decisions that have been made by this government are atroshese. guess i'm considered -- host: name one. caller: well, not respecting the will of the people. the health care debacle. the stimulus that hasn't worked. bowing to foreign leaders, not enforcing border control. the foreign disaster he is not controlling. host: but given what we're talking about lifestyle changes, i.e. economic. caller: i guess i'm one of the wealthy. i make over $500,000 a year b

on monday the imf and european union broke off talks of the country's bailout package, saying hungry need to cut spending more. >> hungary's economy is in the doldrums. over the past two years many have lost dropped and default on mortgage payments. taxes have been raised as part of the government's austerity drive. making matters worse for of the ca-strapped population. thglob financialrisi almost brought the economy to a breaking point. in 2004, hungary registered 4% growth but then the economy nosedived from a shrinking dramatically in 2009. the current government in budapest this as further savings are not acceptable and is now trying to raise funds by implementing a bank levy instead. in a television interview, economy minister said the bank levy will prove to be a hard sell with the eu and imf but that hungary will continue talks. whatever strategy, its budget deficit must fall to a maximum 3% if it wants to join the eurozone as planned in 2011. >> ireland and hungary were non- stories for the european stock markets, but equities fell on the u.s. report showing sentiment among

europe and the imf, which came to its aid with the three-year loan package on condition that greece raise taxes and cut state salaries. this month prime minister also pushed pension reform through parliament, raising the retirement age while reducing benefits. >> these are very difficult measures. obviously that's why people are unhappy and feel the pain. even though there are demonstrations we also have a large support of people who understand that this is a patriotic duty, that that we must move forward, change our economy, do not default and deal with our debt. >> reporter: the government boasts beating its deficit targets, refinancing its debt at cheaper rates. but how much support for austerity is there in greece? will the reforms succeed? eventual default be averted? no more crisis? >> a cab driver who asks to be called by his adopted name . he came from cameroon as a student in 1973 at the end of greece's military dictatorship as a long-time observer of greek society. do the greek people understand that part of the fault is theirs for having spent more than they earned? >> no. defi

as you know, they -- together with the imf have provided a financial program for greece and they have collectively developed a stabilization fund of 500 billion euros, together with additional funds potentially from the imf to be used to ensure that countries under fiscal stress will be able to make their airport paimts tonight finance their governments. and indeed, in the last few weeks, we have seen some of the troubled governments being able to go back to the market, which i think is encouraging. the federal reserve liquidity swap lines were a relatively minor part of that effort but i think they have provided some assurance at dollar funding markets will be sufficiently liquid and have reduced the risks to our own financial system. the other thing, of course, the europeans are doing is trying to duplicate the success of the american bank stress tests of a little more than a year ago by conducting a set of stress tests whose results are supposed to be released later this week. of course it remains to be seen how effective those stress tests are but it's clear that the europeans are

the imf came out and reported that they were focused on getting the debt back down to pre-crisis levels rather than allowing it to hover post-crisis that it makes a big difference for returning to fiscal flexibility we need to have when future cris arrive. but it will not be enough to do medium term target to strengthen the economy. a longer-term plan will have to be adopted to control federal spending and clo the gap between spending and revenue and to alleviate the uncertainty about what is down the road when we note the road we are on is currently unsustainable. over the longer term the pearson commission strongly adcates further gradually reducing the debt closer to its historical averages of below 40% of gdp after 2018. i think it is likely what we will look at is doing that with an aspirational goal of etting the budget into balance over the business cycle to allow the flexibility you need for changes in the economy. the fiscal futures committee recommended changes to ensure low revenues and spending are closely aligned come again getting back to balance of flexibility for changes

as you know, they -- together with the imf have provided a financial program for greece and they have collectively developed a stabilization fund of 500 billion euros, together with additional funds potentially from the imf to be used to ensure that countries under fiscal stress will be able to make their airport paimts tonight finance their governments. and indeed, in the last few weeks, we have seen some of the troubled governments being able to go back to the market, which i think is encouraging. the federal reserve liquidity swap lines were a relatively minor part of that effort but i think they have provided some assurance that dollar funding markets will be sufficiently liquid and have reduced the risks to our own financial system. the other thing, of course, the europeans are doing is trying to duplicate the success of the american bank stress tests of a little more than a year ago by conducting a set of stress tests whose results are supposed to be released later this week. of course it remains to be seen how effective those stress tests are but it's clear that the europeans a

by recent surge in the dollar. ebay gets more revenue overseas than any large internet company and imfd from that devastating earthquake in january. i'm jane king with the bloomberg business report. >> in concord, health officials are giving away free whooping cough and vaccines this evening. whooping kouv has been on the rise in the state. public officials say it's very contagious and be serious to young children. they want to make sure that children are vaccinated for whooping cough. free clinic is being held from 4.to can the p.m. through a music and market program on willow pass road. >> museum of modern has chosen a firm to design a new wing. company is involved in designing a museum at the world trade center site in new york. they are celebrating a 75th anniversary. it's been at the location next to yerba buena gardens for 15 years. the planned expansion is expected to be open in 2016. including 1,000 paintings and sculptures from the collection of donald fisher. founder of gap clothing chain. >> we'll bring you the latest on the fatal bus crash that has a highway shut down inclu

as i said we have the report by the troika and the imf and the central bank and it starts to bear fruitwe can give to anyone who is expressing skepticism, you know, we do it, we agree wel do it and we are recall ahead having some results. a crisis like that cant be faced in one or two or five months or 8 months, that we have been in government but just the fact that from the nose-dive that we were going we are starting now to go upwards, and i believe if we play it right and we maintain our course for the development side of the equation, greece is not only on safe ground but is becoming an important country for the development. thank you. >> i'd like to continue in that line of thought if i might. minister kouvelis and talk about w it plays out in democratic politics. the greek people have been asked to endure very difficult you a ta -- austerity measures, and there is an ambitious environmental program your government is now looking to implement. is this a program that is being supported by a broad swath of the greek populace? do they understand or has this been part of a program to -

the imf stated that this will consolidations that focus on the expenditures and transfers of government wages are more likely to succeed in reducing the public debt ratio than tax-based consolidation. the oecd concluded that an emphasis on utting expenditures is associated with overall consolidations and increased the chances of stabilization. the harvard economist found in a significant number of cases that budget balancing based on spending cuts provided immediate stimulus to the economy. this counterintuitive from a traditional economic standpoint where fiscal consolidation pulls demand and might hurt growth in the short run. it makes some sense if we believe financial markets and the public might have increased confidence in the economy if they believe the government is truly committed to getting on top of the financial problem. that is one reason why focus on government pay and social transfer programs might be most successful. those are very tough nuts to crack. if the government shows it is willing to attack these are problems, people get more confidence that the government is tr

the imf is also warning that the european debt crisis may stall the rebound and that governments needn cars and trucks starting last october. finally, a french surgeon said today his patient is doing well after getting a full face transplant including eyelids and tear ducts. the doctor says the operation took place at the end of june at a hospital near paris. the patient is a 35-year-old man with a genetic disorder. those are some of the latest headlines on c-span radio. >> before the senate judiciary committee votes up or down, what's the entire confirmation hearings for supreme court nominee elena kagan, including her testimony, if senators' questions and comments, and witnesses, online at the c-span video library. to purchase a copy of any part of the hearing, click on the buy now button. >> prime-time "book tv" continues with politics. president obama, year one. newt gingrich on stopping obama's socialist machine. also, attend a book party for bill press with his new book "toxic sac." and boston radio talk-show host michael graham defends the tea party movement in his new book. al

the united states has control over the world bank and the imf. it is obvious. they hate government. they want to get in there and look as incompetent as they can. or do nothing. this is their record. i cannot imagine anyone who loves government and democracy voting republican. i tell you what, the definition of fascism, the classic definition, is when business overtakes government. that is exactly what they are attempting to do. privatization of everything. i would hate to live in a completely privatize the world. host: who is your representative of their caller: tolzman -- out there? caller: shultzman. and i never get off his back. i lived in sweden, their brand of government, i love that. people do not realize. host: we will leave it there. more from the article, "white house adviser, david axelrod, said that the president's decision to give a recess appointment to the chief of the medicare program was needed to lift the issue above politics, blaming republicans for stalling nominees." we will talk more about what is in store for congress with susan ferrechio of "the washington ex

nowadays, if you look at imf or oecd that were originally cost file to reagan, they have now come around to the free market point of view. i am just saying, let us not lose that in the usa. let us combined a safety net with a real pro-growth entrepreneurial policies. that is why i am worried that there is too much taxing and too much regulating in the air. how these things ultimately develop, we will see. but that is not the past -- the government cannot punish but reward people who do well. host: one last caller, nagy, a democrat in new jersey. caller: the reagan economic policy took us from being the largest lender nation in the world to being the largest debtor nation in the world and as far as your corporate tax policy, yes, highest tax bracket, 35%, that is what i am paying but at exactly did exxonmobil pay, less than nothing because the corporate welfare that our taxpayers gave them? you want to change the situation and bring jobs back here and lower the unemployment, why don't we fix the crazy trade policies and bring back the good old days of terror so we do not have any more mer

nowadays, if you look at imf or oecd that were originally cost file to reagan, they have now come around to the free market point of view. i am just saying, let us not lose that in the usa. let us combined a safety net with a real pro-growth entrepreneurial policies. that is why i am worried that there is too much taxing and too much regulating in the air. how these things ultimately develop, we will see. but that is not the past -- the government cannot punish but reward people who do well. host: one last caller, nagy, a democrat in new jersey. caller: the reagan economic policy took us from being the largest lender nation in the world to being the largest debtor nation in the world and as far as your corporate tax policy, yes, highest tax bracket, 35%, that is what i am paying but at exactly did exxonmobil pay, less than nothing because the corporate welfare that our taxpayers gave them? you want to change the situation and bring jobs back here and lower the unemployment, why don't we fix the crazy trade policies and bring back the good old days of terror so we do not have any more mer

intermediate-range forces signed in 1987 but my recollection is one the samet received the record to th imfd i think this was a republican senate this should be not the standard. it should be a very rare event. now the negotiating record when you talk about it and i served on the intermediate nuclear forces negotiation in the early 1980's and this is hundreds and ndreds of cables. literally every conversation that this had gets reported back to washington and having to make sense of his and also because sometimes you see things taken out of context. i think it's difficult to see how that is going to add more to the understanding as opposed to the administration saying this is the agreement and this is what it means. >> i think it ought to provide the record. i think the senate has a constitutional rule that is equal to the president deciding whether the united states ratifies the treaty. i think that yes it will provide opportunity for people to find one sentence and complain about it but it's a political matter that is was not to get and i think it is a costitutional matter we ought to set

five with the backstop with preferred shares with the two entities but through a commitment to the imfnd the $65 million increase in support for student loans and asset-backed securities. obviously those numbers add up to a lot more because those are offset by the reduction of t.a.r.p or let the liquidity programs spread that would-be entirely? >> how much is real? >> it is all real. >> did this all actual expenditures and guarantees but not unit assays government is at a loss. >> almost entirely most of these and not collateralized so there is some double accounting some way ample is that the fed buys an agency mortgage-backed security guaranteed by fannie and freddie it is guaranteed by fannie and freddie it is not really at risk of loss but fannie and freddie them. >> of course, standing behind that is the house which as collateral so that is the protection is doing it there is a default, again there is recourse to collateral summer movie go for the asset-backed security program. >> there are laws that underlie as a but the man he was if you may were secured by the actual houses and

in addition, loans worth 250 billion euros were available by the imf, the international monetary fund. in spite of the success of these short-term measures, recovery will be slow and painful. the financial and euro crisis made it clear that both the financial system and the european monetary union need to be reformed last week, the u.s. congress adopted president obama's reform package bringing the biggest changes in banking regulations since the world financial crisis in the 1920's. what is being done in europe to reform the financial markets? the democratic party in the european parliament has requested the reform of financial markets and regulations with financial supervision calling for guidelines and principles. there has to be more transparency on the markets. to many credit default swaps are traded over-the-counter and not in the public trade market. the second is responsibility. all markets must take responsibility for their actions and take corrective measures. third is the sustainability, market stability must be restored in a sustainable and long term basis to allow growth