what back door promises are made between us, the imf, and most people need to remember the imf is basedshington, d.c., backed with u.s. taxpayer dollars and that is tim geithner's -- i guess that's what he thinks he has credibility with. he went back to the go-to move of hank paulson in 2008. he said, give the market a big bailout. the market will go higher. guess what, barack obama. when the stock market goes up, so do the ratings. >> it didn't happen that way. we got the bailout. i don't know how much the imf was involved. we had congresswoman rodgers on before. she doesn't want more money to the imf. that aside we didn't get the risk on trade. we got the bailout. what happened, doug? >> for investors willing to accept normal volatility this is a classic buy low opportunity. for a clue of how this is going to play out look at last september. it's not just about the troika. we saw the u.s. federal reserve come in flooding the central banks with dollars. that could happen again. it happened in september, in november. not only is europe committed to making sure the banking system will su

. >> it is the big imf war chest. this is all about the imf having enough funds to try to detain a further -- contain spreading the reserve crisis. the head of the imf has been on a bit of an offensive over the possible of months trying to encourage as many countries as possible to contribute. just as the imf has the funds for the global initial stability. i have to say, she was very impressed with how many contributed. 37 countries contributed. that is a very broad, global commitment. let's take a look at some of the breakdowns. i have created this for you. the original target was 430 billion. but they actually get is 456 billion. the biggest contributor, japan. japan was $60 billion. they are an economy that relies on exports, so it relies on a very healthy global economy. >> it needs people. >> exactly. next in line comes the brics. there was always a debate about just how much they would contribute. there it is. the biggest contributor was china, the world's second- largest economy. it was up $43 billion. $10 bill

why is the imf coming up now? unfortunately, it's another election year type of -- blame it on this, blame it on that. >> i'm not talking about blame. >> but why today. >> i'm talking about solutions to solve the problem. >> why is it a solution that we should bring our tax dollars to help a country who by very -- >> series of countries. >> narrative of the u.s. history doesn't have the type of constitution that the u.s. formed many years after 1776, 1787 to address this very issue? a federal overlay that gives them -- and here's the big word -- recourse. >> go on. >> there's not going to be a lot of will, steve, to have the imf give money to bail out europe when so much of that imf money is coming from the united states, particularly in the situation that america is in right now. >> my idea is that we raise additional imf funds and that they be put into a second lost position after european money and that it's one-third versus two-thirds. hank paulson and ben bernanke understood at least one thing. you put a big

merkel has, the imf has. geithner, everyone has been clear europe has to engage in structural reforms. >> look. i don't understand why we keep raising taxes. to steve's point. take greece, italy. they want to raise the value added tax. they don't make money but it does cause prices to go up. it has a depressing effect on the economy. way why wouldn't you go for pro growth supply side tax growth? >> the european, southern tier european countries are in an unsustainable position. spain's interest rates are over 7%. they don't have an option not to close the budget deficit gap. you can argue about doing it on the spending side but they will not allow them to continue to operate with deficits of that side. >> i agree. but it troubles me that the obama administration has gotten behind the imf and is making austerity worse. this troubles me. to me when they say they want growth they want the ecb to cut interest rates and put more liquidity in. it's not the problem. the problem is fiscal and regulatory and tax obsta

. >> should the imf, u.s. taxpayer money, help to bailout europe right now? >> i don't know that it's needed. >> announcer: the presidential election -- >> the most important thing in this election is what will president obama do and what would governor romney do with the economy? >> announcer: bill clinton weighs in on those hot button issues and a whole lot more in a first on cnbc interview with our maria bartiromo. it all begins on this special edition of the "closing bell." >> and it is 4:00 on wall street. do you know where your money is? i'm maria bartiromo. we're moments away from my first on cnbc interview with bill clinton. you won't want to miss what he had to say about the looming fiscal cliff and how to jump-start this economy in the u.s. first, let's look at what we're following at the close. dow snapping a four-day losing streak after better than expected ism service numbers. can the momentum continue or will fears about europe retake center stage tomorrow? facebook falling another 4% falling below $26 a share. the stock now down better than 30%

but imf chief christine lagarde warned the current measures are not enough. >> the imf believes a determined and forceful move towards a complete european monetary union should be reaffirmed in order to restore faith in the system. as we see at the moment the viability of the european monetary system is questioned. >> joining us now, silvia wadhwa from luxemburg. forgive me if i'm exaspirated with the imf. they were calling for measures. now turning around and saying well, you know, you have to do more to support your economy. >> reporter: and even more so if the now imf chief is, of course, the former french finance minister who child french finance minister was insisting the eurozone finance minister and governments were doing enough to try to tack tell crisis. i think yes, one may be cynical about madam lagarde's demands on heads of state. that is what needs to be done but we know how difficult it is and she herself should know before anybody else how difficult it is coming from where she was and having been throughout this crisis in eurozone and euro group meetings on a monthly basis whe

. >>> the imf is beefing up its war chest to help contain europe's debt crisis. they have announced that it will revenue contributions that will boost the size of its new crisis fund to $456 billion. the imf said an additional 12 countries made pledges on the sidelines of the g-20 summit. among them is china, promised to provide $43 billion and india and mexico and russia would each contribute $10 billion, while turkey pledged $5 billion. japan has already announced a $60 billion contribution. managing director christine la guard salutes them and their commitment and says the new contributions would almost double the imf's lending capacity. >>> at the g-20 summit emerging economies are joining hands to build a fire wall against the impact of the debt crisis. they are brazil, russia, india, china and south africa. the so-called bricks countries are considering a currency swap agreement in case a financial crisis strikes them. the plan has been unveiled by the managing director of the people's bank of china's international department. he said top leaders agreed dur

so my question, my speculation would be, and we know that the imf is meeting now with a report on the spanish banks, whether he is paving the way for the imf to give temporary loans to the spanish banks in order that further down the line when europe has changed its rules, they can repay those loans to the imf and put their own emergency money in. that's speculation on my part total. i have no idea. however, if that is true and reuters has a number of reports about a spanish bailout this weekend, if that is true, that would lead the way potentially to a major rally in risk markets and probably listening to the words obama used today for his ability to target that america taught europe how to grow. >> but nobody is saying anything of this sort about an imf roll here explicitly. certainly not the administration. >> if you look at the timing -- reuters is adamant with so many sources that something is going to happen this weekend and that the eurozone and finance ministers laid out for a conference call tomorrow. they can't provide the money yet because they haven't changed the rules. bu

secondly, the imf, we participate significantly in the imf, although i don't expect the u.s. to allow the imf to make loans to spain and to associated countries from this point forward. and third, there are swap lines from the federal reverse that have been used and continue to be used. so there is some liability from the standpoint of the united states. but i don't think it's significant. what's really significant is the effect on u.s. economic growth. we're slowing. we're at 2%. we might move down to 1%. if spain basically continues on its path, then we might approach the 0% level, which ultimately is the worst effect of this particular crisis. >> bill gross, thank you very much. we appreciate your taking the time. as bill said, imf may not help from this point forward. up till now, they've provided incredible loans to countries including portugal and greece and ireland. >>> up next, breaking news, the department of justice suing the state of florida accusing florida of not allowing a certain group of people to vote. >>> and a nasty family feud in the kennedy dynasty. detai

economy -- [shouting] they may not want to know what is going to happen from the imf. the shadow chancellor again is not here with his hand gestures but is always said we should take notice of the imf, and they say that in the coming year that the british economy is going to grow faster than the german or french economy. that next year growth in the british economy will be similar to that of the united states, and twice that of the eurozone. and that would not be happening had we not brought the excessive deficits and debt of the last government under control. >> thank you, mr. speaker. in light of the historic signing in china for record investments, also the granting of the turnaround in liverpool and the support of the automotive industries and saving -- would you say this government had done more in two years to expand on this side of labour did in its entire tenure? >> well, yes, i would. i would say exactly that. and i would point out that that success which he described his part in the last two years of british exports to brazil going up 37%, british exports to

needs to jump in through the imf. am i overstating the case?think especially if austan's right that this thing doesn't belong together and ends up breaking up and that's my general point. we can get there a cheaper way or more expensive way. >> austan the politics of mr. liesman's prediction? t >> we know they're terrible. >> if you're going to hold a monetary together without a fiscal union it's going to involve some kind of subsidies from countries like germany and the northern european countries. if they're counting on holding their monetary union together for money from the u.s. and china, i don't think that's a great future. >> rick -- >> austan, are the germans going to hold it together, the finns going to hold it together? how does this play out? from they have to hold it together. >> do you think that's what they end up doing? >> i don't know. i've been publicly probably more pessimistic than most, but i wish the skeptics hadn't been getting proven right as this thing was going along. i think it's going to be hard as europe is going to

economy -- [shouting] they may not want to know what is going to happen from the imf. the shadow chancellor again is not here with his hand gestures but is always said we should take notice of the imf, and they say that in the coming year that the british economy is going to grow faster than the german or french economy. that next yeargrowth in the british economy will be similar to that of the united states, and twice that of the eurozone. and that would not be happening had we not brought the excessive deficits and debt of the last government under control. >> thank you, mr. speaker. in light of the historic signing in china for record investments, also the granting of the turnaround in liverpool and the support of the automotive industries and saving -- would you say this government had done more in two years to expand on this side of labour did in its entire tenure? >> well, yes, i would. i would say exactly that. and i would point out that that success which he described his part in the las two years of brith exports to brazil going up 37%, british exports to chin

in 2007 the 108 economists track by the imf, only three contracted. those were fiji, condo, and zimbabwe. who cares. and the history, otherwise, the history otherwise is that in any particular look back about 20% of economists report a negative gdp growth rate in any year on average. around 20%. only about one-third of economies are able to grow at about 5%. that is the split in terms of what we got. 2007, the peak year, three economies out of 180, negative gdp growth rate. we had more than 50 percent of the world economy growing at about 5%. this is really a very exceptional time. the question was, what caused this? and then it led to the history of economic development. what causes exceptions, two or three special factors. one was the fact that these economies were catching up. a very poor performance in 1918 and 1919. and because of the poor performance a lot of the balance sheets had been cleaned out in the economies in terms of macroeconomics finances, put an order from indonesia to russia. pay down their debt. a lot of improvements, the macroeco

was there talk about the imf and u.s. taxpayer dollar going to help the situation? >> well, and that was the basis of the question that really seemed to set off the head of the eu, which was the question simply was make the case as to why north american taxpayer dollars, both from canada and the united states, they of course contributed to the imf, this was a canadian reporter, shouldn't be used and it does seem as they they would like the imf available. they're not saying how much available and they were saying we have the capacity to do this on our own but it's clear they don't want to rule out the imf either. the other part of the g20 the obama administration hopes comes out of here is policy that will come out of the asian countries that members of the g20 because of of the concern of the global slowdown. >> okay, chuck todd in mexico. it's a tough job but somebody's got to go to cabo. >> i haven't dipped in yet. >> have fun, chuck. we'll see you soon. >> heading toward the close, about 50 minutes left in the trading session. the dow is still down about 14 but t

jenna: the imf, there's proposals of a bailout true the imf to european nations.e man who just was criticizing north america is also asking for that money through the imf, and the united states has said, no, we're not going to give any more money to the imf. but some suggest that could be a mistake on our part, steve, that if we don't do it, it's just going to get worse for us. >> no. look, i've been an opponent of the imf for years, and i think there would be nothing more unpopular with american voters to see their taxpayer dollars go to the imf so it can bail out europe. we've got huge systemic problems here in the united states. europe has to reform itself. and one of the things that was interesting about the comments by the leader of the e.u. today is he basically said we're proud of our economic system. we don't really want to change it. well, that was hardly music to my ears. i mean, they have to change these programs or europe will never be the same again. they can't continue down the road of having a declining number of workers and an increasing number of

and ahead of the imf argues the ecb still has room to cut. it's tuesday, june 5th, 2012. now. >> welcome to "squawk box." becky is so assignment today. spain's treasury minister says high borrowing costs means the country is effectively shut out

the imf is a fascinating example. you have saudi arabia who upped the amount of money in the imf. it is politically unpopular in other countries, the idea that their tax dollars could be used to bail out european banks. and the head of the european commission was asked if there should be a role for the imf here, make a case for north american tax dollars. he said the north americans were involved in the financial crisis too, they helped start this. what happened four years ago is part of what's going wrong in europe now. then he backed off and said we in europe have the capability of fixing this ourselves. >> all right, we'll leave it there, i'm looking at that puckture there of everybody, chuck, great to talk to you, get home back safe. >> mesmerizing, isn't it? >> yes, it's funny. many betting the fed will take more action to support the economy. my next guest has been critical and spoke about it in the run that he had late last august. listen to this. >> if this prints more money between now and the election, i don't know what you would all do to him in iowa, but we would treat

but i think that mechanism is in place with the imf. ultimately, we are providing funds for this through that participation. >> right. >> so, you know, i think that the bottom line here is there's a lot of pain to be felt, not -- even more than we've already felt already. and that's going to have to be shared. and the question is, who's going to bear the burden of some of that pain as we work through these issues, not only here but abroad? >> bruce, you could make the case that the individual investor is bearing the pain in the volatility that we're seeing in the market. i also wonder whether there's any political will here in the united states to have the imf step up with more u.s. money and help solve europe's problems. i mean, we have a few of our own. you commented on that friday on the jobs report. >> well, let me step back here a second. i want to -- i want to say that i think what steve is dealing with is the problem we had last year in europe where it wasn't clear that governments in europe were going to pull resources together

who is the the biggest contributor to the imf, we are.if you have such a high opinion of them, lean on, let them help you bail out sometimes. >> it's not true, dagen. by any economic measure they might be moving very fast, but a long way from us. >> correct, but they are growing so rapidly. >> the world intermperatures that they're the new "it", they're communist, if you live in europe you're going to love some communists. i'm not going to worry about it, i think back to japan and we were so worried about the power of japan and that country's for the most part's been in a recession. >> we can't get cocky about it. >> he we can't, but they have low incomes in china and they also are losing a lot of their mo-jo, which is low wages. as long as we keep the american spirit of drive and power and being-- >> that's the one problem and i have family in new york, there is no entrepreneurial spirit. this is' no-- when was the last italian entrepreneurial, berlusconi. >> in italy it's the mob. >> the biggest business there. >> and point one thing ou

the imf, certainly, is playing a role. but the only central factor in the policy response -- having said that, it is the world's most susceptible economy to a shock, all the others will feel it as well, so there is an interest to try to step in and put the policies in and put some ideas on the table. but it is also a double edged sword. you do not want to own the problem, and the obama administration has to be careful. >> thank you very much. >> my pleasure. >> more uncertainty for the euro zone as greece prepares for a fresh election next week. the country is on financial life support with the international bella, but the austerity measures that came with it have left people deeply divided. we have this report. >> the land their catch at 4:00 a.m., but these are hard times, as salaries fall and companies close, and this is fertile electoral territory. for the local candidate worth getting up before dawn. they say two years ago, all of the fish would have been sold by this hour. now, much of it has to be thrown away. they

imf first deputy managing director david lipton is visiting japan for the imf's annual review of japan's economy. he met japan's finance minister azumi on monday. >> we are very supportive of what you're trying to do and see this increase in consumption tax as an important step for japan in dealing with its fiscal issues. >> the noda administration is trying to pass a tax bill before the end of the current diet session on thursday next week. lipton and azumi also agreed to try to calm fears about europe's debt problems. they'll press spanish banks to disclose information on any bad loans they hold. they also agreed to urge european countries to use the upcoming g-20 summit to address financial problems and limit the impact of the debt crisis around the world. >>> managers at japanese companies seem to be suffering through a bout of pessimism. officials at the finance ministries say the business sentiment index for major companies edged down 0.4 points to minus 3.1 in the april to june quarter from the previous three months. it worsened for three straight quarters. the index is based on t

imf managing director christine legard made the announcement. such a system is needed to supervise the region's banks and provide liquid id and deposit guarantees when necessary. >> the imf believes that a determined and forceful move towards a complete european monetary union should be reaffirmed in order to restore faith in the system. >> la garde also said a banking union would help head off contagion of the euro debt crise chis is threatening the very currency union. the european commission is expected to propose the centralization of banking control at an eu summit scheduled for next week. >>> the japanese government is getting ready to cope with possible power shortages this summer. it has coming up with basic plans for saving electricity in the country. prime minister yoshihiko noda and other ministers have announced the plans. >> translator: we are sorry for this inconvenience but we'd like to ask users for their understanding and cooperation. >> the government decided last week to restart two idled nuclear power reactors at the ohi nucl

an imf report saying spanish banks needed 50 billion.man ben bernanke warning the economy could go off a cliff if a new tax plan isn't reached by the end of the year. he said the potential expiration of the bush tax cuts is the single biggest item that needs to get done. finally, a ton of chinese economic data due to hit the market over the weekend, possibly setting up a very volatile trading session on monday. we'll get chinese industrial production, retail sales and inflation data. that's all second to come out on saturday. i imagine we'll be talking about that early on monday morning. >> the supreme court is expected to rule on the president's health care overhaul, they'll rule on obamacare. barbara, remind me, when this was pending and it was a couple years ago, still pressure in people's mind, a lot of industry groups entered into what some called a fausian deal to try to prevent something worse from happening. the drug companies were blamed to some, tent for doing that. they would benefit with the deal they made to sign off on this

imf saying china's gdp to grow around 8% this year.perhaps on the higher end of what some would expect at this point. and that it's the chinese currency is moderately undervalued. perhaps more importantly, what's happening with you in spap. >> the spanish government is stating now no comment on possible bank aid. the requests that we were talking about earlier on come this weekend, they're reiterating no decision automobile after the bank audits. >> and imf bank audit monday, but a couple more weeks for the others to come through. until the pafall before the big four complete those. >> and internal, too. so a whole host of audits that they were indicating that they wanted to get that you first before it they told us how much money the spanish banks would be receiving. >> and yet reuters report that there will be a call for spain -- >> one german source saying spain expected to make an aid request for its banks this weekend. again, according to reuters. unnamed sources. so we'll be watching will weekend. >> still to come, we'll be speak

she also denied the imf had opened aid talks. and a new business survey showing all the major economies in various states of decline. may pmi indicating the economy shrank at the fastest pace. and the international energy agency warning that oil prices near $100 a barrel, yeah, that's still a threat to a slowing global economy. the iea saying the word is likely to consume less fuel than the agency had last forecast. >> starbucks is buying a san francisco bakery chain. the 100 million dollar cash deal the biggest move yet. howard schultz calls the dig a significant opportunity and catalyst. he says the artie son bakery goods will attract more kus and bol ser both food and bench sales. >> they just bought that energy drink company. >> this is a french bakery. it's not like a paris baked bakery, but -- >> will they bring the products into star buck everywhere or will they expand the bakery chain? >> my understanding is both. do you know the drink company? >> yeah, but i don't remember the name. >> you're a dunkin man now. >> did you

the imf, what role should they be playing in this? are they doing what they are supposed to be doing? >> reporter: well, they are part of the international financial organization that put up $170 billion for the greeks to prop up their currency and they obviously are saying you have to stick with the terms of the agreement that you signed with us. but i believe they probably will loosen that a little bit and christine la gagaard dead we cat let greece go down, because, clearly it's not about greece, a small country but spain and italy which are next in line. >> jamie: and teetering, as well, john fun, thank you so much, much more on greece throughout the hour. 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

but just on the face of it, i mention in my remarks that the imf system is now over 85% complete. when the inf system was looked at back in 1999 it was barely off the ground at that point. so just if you look at the -- what physically is available now to verify the treaty, there's just so much more there. the other major issue of course was the stockpile stewardship program and the efficacy of stockpile stewardship in comparison with nuclear explosive testing. again, in 1999 the stockpile stewardship program was barely off the ground. you may recall i was working in boe at that point as the assistant secretary responsible for nonproliferation programs so i was watching the process of getting stockpile stewardship off the ground and it was a very, very good process but it was still a baby. now we can say that the baby's matured into early adulthood and i think that it has proven its metal in terms of showing that it can reserve the -- so those are the two big changes that have occurred. of course the nas study was focused on the vare fieblt and it basically accords with what we cou

we got in the situation with the imf to back stock, and we have nobody to lend to. why did you have nobody to lend to? the united states ran up the human deficits, and everybody else was -- it's obvious to somebody that this cannot last. should be ringing out there. i was very clear, you know, india's 9% was unsustainable. you in africa went from 2.5% to 6%. it's no great deal. we are under performing everything. i was not prepared, and what number -- you wrote the book a year ago almost. had he made the predictions about the world slowing down, going down at that time it came out, and sometimes it's all progress, and we discuss the slow down, the commodities as predicted already happening, very clear. this presentation seems to be left out important things, which are in the book, and i think, you know, it's worth mentioning some of those. most interesting prediction that he makes is that of the two guys who are going to be the breakout nations, very important ones, are going to be islamic democracy, indonesia likely to be the break out nations in the next few years

i worry, are we be not so directly going to have to chip in, and imf. do you think that the republican position should be, and i don't know whether this is your position, not another dime? or is it in our interest to keep them stable? >> no, i think the latter-- the former is the correct position, neil. not another dime. we cannot afford to be bailing out europe. we need to take care of our own problems right now. the united states is still in a position to fix what we're facing. if we do the right things, we'll take the right steps, put the right policies in place now, we can avoid the result that they're facing in europe right now. but, it would be a big mistake in my view, for the united states, the american taxpayers through the imf or any other institution to try and bail out countries that really are right now just sort of kicking the can down the road a little bit further. i think that would be a huge mistake for our country, for the american taxpayer. we need to be focusing on right now is addressing the concerns that we have right here at home,

in the end, if you could give strength to the imf and give the imf and the funds to help in a worst-case scenario to assist in bailing out certain countries, it would not be a bad thing to do. i think the fact that there is impatience on the u.s. side is probably helpful, because it leads to a speeding up of the process on your. the only thing which people have to understand is, we are somewhat in a different ball game. the tarp program was primarily strengthening the bank's because of the real estate exposure or the toxic assets exposure. in europe, banks so far have not had a major exposure to toxic assets any more. they were marked down or liquidated. nor in most countries is it real estate, because we did not have the real estate bubble, with one or two exceptions. the problem is the exposure to the sovereign risk and the correlation between sovereign risk and bank balance sheets. you can now recapitalized banks, but if you have a sovereign risk restructuring, as i said before, the capital is melting away. it is more important that we stabilize the sovereign risk issue and not so muc

bailout. >> if you've seen this all the way through with every government that comes up against an imf loan package in the part. they talk about the fact they're going to rip it up and the international policymakers go in and explain the facts of life and the reality and they accept some kind of oversight from either the imf, the troika, et cetera. >> we get a third bailout. >> and we get another bailout. because the politics are here. thinking about investment rather than, you know, mice economic theories. the investment conclusion here is that you want to bet on the euro staying together. and that means it has to be a weakened euro. >> you talk about investment. no business -- which international investor, whether business or fund or anybody else, private equity group, women put money into greece until they really know where greece is staying in euro? >> that is why the whole rest of these packages that we're going to be talked about at the end of the month have to be in place. you have to have bank resolution process. you have to have the deposit insurance in place. you know, and so

over the weekend the imf says no more than 40 billion euros would be necessary. but if you watch what the ecb says the other night, it is calling spain to review its plan to create bad bank for toxic assets in the banking sector with perhaps more provisions and in the end perhaps more money necessary for the banking sector. we will not have a clearer picture until the 25th of june. on that day the two independent auditors appointed by the government will publish conclusions and we will know more precisely how much money is necessary for the spanish banking system. the second question is about who will pay for the bill. who will provide that money to spain? will the money come from the esf or the new esn, the eu commissioner promised yesterday before the european parliament that some clarification will come soon. but we don't know that yet. >> all right. thanks for that. our apologies for the disruption on the last bit of that. >>> ken, you talked about political clarity in the u.s. where is the mrpolitical clarit in europe? >> i think what's happening in europe a

>> reporter: well, the united states is a major contributor to the imf and so if the imf steps up andction, that is an indication that, you know, american money is implicated but i would be very surprised if the administration commits new money for this purpose given our own economic difficulties and fiscal difficulties at home. >> okay. john, thanks so much. john harwood with us at the white house today. want to thank kayla coming here, as well and walking through issues. >> happy weekend. >> yes, thanks. simon, you will be here for the next hour, as well, helping us through the european close in little less than half an hour. let's get to the cme group and rick santelli. good morning, rick. >> good morning, carl. you know, we're going to do something different today. we're going to do a segment periodically. i used to love technical analysis when i was a trader and the reason i liked it, even though there's so many that aren't respectful of technical analysis is an aggregate behavior model. you know, alan greenspan said if you have 12 bright people in china making bright decisions,

the first will be the imf to its board on friday.y the fact that you have big pockets of liquidity in europe and lack of liquidity in others, you have a bik safety net that does have cash, that imbalance is not a monitoring policy problem. i don't know if you can infer from that this the ecb doesn't need to injury excused money overall. >> for more, you want to bring in our senior economics reporter who can champl touch on what happened this morning and what we might can want to happen tomorrow morning, too. >> i think bernanke was living large right now. you saw that sell out and then it came roaring back. and there is growing markets concerning about spain in the wider banking system. but these comments are being interpreted by the burden of fiscal policymakers to solve europe's problems. robe, the central bank has a single mandate. so his comments were key to how the street interpreted them. >> while ine in ib flags rates are likely to stay 2% above the remabder of 2012, we kpcht price developments to remain in line with price sta

still to come, china says it will keep supporting europe and contribute more to imf coffers. but of course there are conditions. [ male announcer ] this is genco services -- mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ >>> welcome back. equities in europe extending asia's losses. but peripheral bond yields staying steady. >> and the ibex has turned positive, jobless rate has dropped a bit in may and investors are intowing back into banking stocks. reports suggest policymakers working on a master plan for a new european union. george soros warning authorities they have three months. >> and portugal is propping up its troubled lenders to strengthen the sector. >> friday we saw a blood bath. no other way of put

imf officials this morning have made it clear they are for any further aggressive measures by the bank of japan to ease monetary policy. they've also mentioned about favorable position if there should baositn in foreign currency markets. that should really effect the markets today. but maybe see a bit of a range trade. also separately on a brighter note if anybody with kids the tokyo toy show is going to be kicking off. toyota is coming out with a car model which actually goes up to 40 kilometers per hour. however, you need a parent in the back seat controlling the brakes and the steering. that could be interesting. >> sure does sound interesting. thanks for the heads u ran mellegar from the tokyo stock exchange. >>> now, the president of the european commission has called for bold measures to boost banking and fiscal integration within the eurozone. made an address to the european parliament in france. he said the eurozone has reached a decisive moment that will determine its fate. >> our economic relations members and not euro members alike. our futures are linked. >> he said member

the imf point owed ut that japan's net public debt is higher than other advanced countries and is expected to rise further unless they take steps to put their fiscal house in order. >>> the currency is somewhat overvalue educad indicated it i. japan is aiming to make its next generation tv technology an international standard. the ministry of internal affairs and communications unveiled its basic strategy at a symposium on new generation tech tvs on tuesday. about 300 people from broadcasting stations and i.t. firms in j pan and abroad attended the event in tokyo. it prioritizes emergency news. it also has a feature for a tv program for smart phones so people can continue to watch the program. nhk showcase edit hybrid cast technology at the symposium. it can display a map on the screen of a tablet computer to show where a place mentioned on a tv program is located. broadcasters and content providers plan it work together to conduct experiment. they are hoping to commercial their product by 2013 when an international standard will be decided. >>> children in japan aren't just dressing up th

back on greece's bailout would mean that the country's international loan money from the eu in to the imf gets turned off. that would probably mean that greece would enter into a messy default on its debt and be forced to leave the euro. greece can cancel, renegotiate, and it changes the bailout, and yet stay in the euro. the problem is that the strong voices in all of this come from berlin and other eu capital. if they turn off greece's international lifelike, than their days could be numbered. this has become the referendum on greece, the continuing membership in the euro. it is an election that will be watched so closely beyond greece's borders. what happens could have implications, really, throughout the global economy. >> many thanks. we will be talking to you throughout the day. now, someone who says age is just a number. she is the oldest female bodybuilder. she is 75 years old with no signs of slowing down. she's in the u.s. city of baltimore, maryland. >> if ever there were an anti aging pill, i would call it exercise. >> let me know when you get tired. look at my man. >> i enjoy

imf expects growth of 1.5% this year.course that is far from the number needed to really create jobs and help the country recover, also government borrowing costs are at unsustainable levels. they are struggling to secure external financing to address the budget deficit, foreign currency reserves are under pressure. the road is still a very long one. >> thanks, yousef. what does all of this mean for price loyal? >> it's interesting, isn't it? it's not clear to me that egypt is going to be stable as a result of this election. it's been one of the great rocks of stability and what's interesting in terms of oil we've seen so much of the bid come out of the price. it's almost as if the whole uprising geopolitical risk has been bid out. so i think oil is arguably attractive at these levels. >> what's it going to do for the global economy? how much of a nice offset is this? >> this is fantastic for the global economy, a stimulus of $800 billion in three months in terms of purchasing power. it's enormous in terms of support -- >