>> what do you expect outf the imf. anying worse than the local environmen bureaucrats are imported ones from europe. and we should point out that most of the environmental bureaucrats really don't care whether people work or not. they have a sort of straightline view about saving the environment and they don't care what kind of economic damage that would cause. can you imagine if this actually happened? as you said a regressive tax, hurts poor people which they don't care about or the rich people. it really is a sick, disgusting state of affairs. >> dagen? politicians though, give them all credit, right or left. this country knows it's regressiv and this is the tax tt makes every single voter in this country mad and they will not do it, why the president talks about infrastructure spending, never talks about raising gas prices and we know these are imf officials and imposing their will-- i know, they want to impose their will on us, our gas prices aren't as high as in europe. >> ben, where do you think this is going? >

this is the imf. they should have been high when they wrote in. >> neil: we're going to take a break. here is food for thought. stocks may be soaring but food stanltsz are soaring faster. i, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap. >>. >> neil: stocks are setting an all time high so is food stamps. it makes you wonder how the dow and number of folks can effectively double under the same president. dagen, weird. >> not weird because scary. this is clear evidence. i'm frightened by this because this is clear evidence that the government is getting bigger without any new law passed just by tweaking laws that already existed. >> neil: what does it make the policy more liberal that more

pushing the imf do have one or not to have one? should the imf just give the money to egypt? what needs to be done? >> last one and then closing comments. ini'm working with a program cairo. i'm here for a visit. my question stems a little bit of everything people have been saying about the response to the violence and the different reactions and the electorate in everything. my question is like, we have seen a general radicalization of society, both the victuals and the alarmists are becoming more radical. we saw islamists marching. we see it in the fact that they are supporting the vigilante groups now. it is the breakdown of laws that you mentioned. how can this be overcome? how can they reach that point of compromise and consensus. we can say that we need and people can say they're willing to do it, but if they cannot get the support, the muslim brotherhood are losing support. the breakdown of society is just around the corner. they are still getting are there and farther apart. >> why don't we focus on some of the domestic questions first, especially this important issue

imf was clearly more important to the 90s states. president truman had intended to nominate way to be the first managing director in january january 1946. right before he did so, he received a long memorandum from jay edgar hoover is saying don't even think about it. i've got credible witnesses and information that will collaborate my allegations with this man as a soviet spy. truman didn't trust to her, but he had a big political problem on his hands. the u.s. concoct did a new narrative. they said we decided that we really want the world bank to secure the confidence of the american investment community and it would be rude of us to take both institutions. both institutions were in washington despite the fact the british object is how i took this for years, but they decided to renege and miss and wouldn't touch the imf because they didn't want information about the scandal coming out. it lives on to this day. this point i should stop and open up the floor for questions. [applause] >> count the factual difficulty, but how different

i'm not sure what business it is of the imf to say what our taxings ought to be. >> the imf says to avoidhurt the economy, the tax increases could be phased in. dennis? dennis: okay, meantime, who died and made the imf king? thank you, peter. >> you bet. cheryl: next year, close to 2 billion mobile devices access the interpret, and blackberry posted a surprising profit, and position in the marketplace could be changing, and how it survives the tech arm race next. dennis: the shining, a classic horror story, coming up, on the road to the hotel that served as the inspiration. it's making money off it. let's look at the day's s&p winners and a few losers. dennis: blackberry delivers a fourth quarter profit to investors, and that stock is up. special delivery, why your neighbor may end up marching up your driveway with your online order from walmart. steven king, remember now creepy "the shining" was? the hotel that inspired it lets you hunt for ghosts at a price. we are doing it. that's coming up. stocks every 15 minutes. nicole is on the floor at the new york stock exchange with an ipo. >>

what is the imf wanting and why?well, shep, the imf is suggesting 1.40 a gallon increase in u.s. tax gas tax could say help with climate change and help with budget deficit. this would triple gas taxes in the u.s. and send the price of a gallon of gas north of 5 bucks. imf officials david lipton said, quote: the time has come for subsidy and reform and carbon taxation but another imf official says the numbers for the u.s. as well as some other nations are just for their information just recommendations and advise any country that wants to move ahead, shepard. >> shepard: this is the only thing of the day that i'm positive will not happen. >> this idea is in park here in washington. the republican chairman of the house energy and commerce committee fred upton said good grief! higher gas tax also hit those who can least afford it the most and would be disastrous for the u.s. economy though the imf says taxes could be phased in to limit the impact but congress has not been able to agree on higher gas taxes since 1993. t

several hours, president nicos anastasiades has been locked in talks with leaders from that you, ecb, and imf, try to find a way of rescuing his country's economy after a week on the brink of disaster. talks have significantly overrun, adding to fears that the deal is far from certain. we will go live to brussels in a moment. >> president nicos anastasiades left of cyprus behind for a chilly brussels. he is trying to broker a deal with eu finance ministers by monday to secure aid for his beleaguered country. his eu colleagues are demanding the cyprus raise the sum of 5.8 billion euros itself in order to release a rescue loan package. a compulsory levy on savings may be the only answer. but major investors in cyprus's biggest bank, the bank of cyprus, could lose up to 20% of their deposits. not surprisingly, it's an unpopular measure. >> nearly everyone's going to lose some money. of course, the amount will be greater for some than for others. and that's that. >> there is anger at the nation's creditors. >> the germans are only interested in themselves. they don't care about anyone else. >> cy

the eu, the imf, and the european central bank. the german government is getting impatient. >> there are two elements, which we consider essential. first, we are certain that debt of around 6 billion euros is sustainable. second, we want the banks to be restructured. >> the third condition laid down by the german chancellor and her coalition is that a rescue fund has to spare the socially week. angela merkel says nationalizing pension funds in cyprus is not an acceptable way of plugging the holes in the country's finances. >> checking in on the markets, european shares traded flat or slightly to the downside friday as investors waited for clarity on cyprus, and germany's business confidence suffered an unexpected drop. our correspondent sent us this summary from frankfurt. >> still no solution in cyprus. traders had to finish this trading week and this uncertainty leading almost to a standstill at the stock market. traders did not know leader to bet on a happy ending or bankruptcy in cyprus. the german index was slightly down but m

the imf chief economist, the former president of the bundesbank, numerous people are now saying there's a contradiction between the widening remits and central banking dependence. politicians make those decisions, not unelected central bankers. be warned, there's a contradiction, there is a conflict and they are too powerful. >> that's an almost perfect argument if i had anybody idea what widening the remit means. but, boy, you made it really well. richard quest champion of his debating union. whenever it was that he ended up going to school. the banks that are too big to fail before the financial crisis are bigger today. but one person's too big to fail is another's buying opportunity. could the banks that drove the u.s. into recession power your

why would the imf and others suggest they do it? what's behind this? >> larry, i think what's behind this is a continued fixation, which you see coming out of the imf and out of brussels and berlin. about trying to realize sustainable levels of debt-to-gdp over a period of time. i appreciate the need to try to get debt on a sustainable level, this is not the way to do it. this is, indeed, confiscation. i'm afraid they have crossed a line here they may regret. deposter insurance protection is one of the building blocks of confidence in our banking today in the 21st century. overriding that and depriving those small depositors of their fundamental savings could subject a new round of contagion into the euro sovereign debt euro. >> you were so deeply involved in the bond negotiations regarding greece and elsewhere since you agreed we crossed a line, what are the chances this could happen to spain? what are the chances this could happen to italy? what are the chances could it happen elsewhere? >> i think the chances are quite low. if i may rephrase the que

that's why we got to get the imf out of this. once you have an economy that grows again, you develop middle class that will have zero tolerance for that extremism. >> the last word. coming up next, did you know that you are paying for more than 50 federal job training programs? now there is a new republican plan to bring that number down and they say it will actually help the job market. so why are some of the ford's crew against it? >> they cut the job. i got the job! only in america could i get a job !

>> hal: the big banks through the imf.enching -- >> yeah. >> hal: so the imf is the people who came up about this thing about austerity, cut, cut, cut, cut, don't support the weak and down interested toen -- down trodden among you. this week police authorized the home of christine laguard after she authorized a 270 million pound pay out -- the imf chief is going to be prosecuted -- they raid her home -- do you know what it would take to raid the home of -- if you think the o.j. simpson trial was difficult to get them to charge any celebrity with my -- >> this is the head of the imfbring. >> hal: do you know how sure you have to be to be convinced there is guilt in this situation, to raid the home of the international monetary funds chief? >> and they said she paid this money to whom? >> hal: basically she authorized a payment to this guy -- and i'll read about it when we come back. but it ties all together. this woman doesn't think 270 million pounds is -- is money. she just thinks that's what you shuffle around. we'll be

easy way to get money to satisfy the imf. in response to the imf making an effort to bail them out.said this is the best solution for us. we saw individuals on tape saying gosh, you know, violation of my property rights, et cetera. those are small time players in the large game. >> bret: but still getting money out of their account. >> they are. >> there is discussion of shifting that to the wealthier. depositors, in cyprus. this is all about russia. german secret service did a study not long ago that looked at the kind of deposits that were made in the cypriate banks from the russians in particular and concluded a lot of it was dirty money. germans don't want their taxpayers to be funding risky bets from russian alagarks. with an election in germany they don't want to answer to the taxpayers for this. steve hankie from the cato institute had a chart where he looked at the deposits in cypriate banks from june of 2010. longer study. in june of 2010, europeans accounted for 60 billion in euros and today it's 18 billion in deposits. russians increased from $20 billion to 30 billion tod

they need to be allowed to get resources from the imf. we need to continue to help them keep some measure of calm and be able to help with the transition to this difficult time. our role with regard to helping serbian refugees is significant. it is destabilize right now. as senator mccain said, the whole region is in fluid flux. it is difficult. when we visited with president morsi, senator mccain was clear that they have to stop the flow of these weapons through the sinai and gaza. the news that with one to stop the tunnels -- we have to draw more see -- morsi closer to us. they need imf funding. they have to focus on their economy. without a stable economy, you will continue to see a slide toward regimes and leadership that will not be pro-u.s. or pro-israel. >> amos yadlin amos yadlin -- amos yadlin, iran's possibility of getting a nuclear weapon is a bit concerned. you head for the east and even iraq, increasing stability in iraq now that u.s. forces are gone. israeli policymakers and strategists look at the map. how do they rank and

the imf wants you to pay more as -- at the pump.t, what they're trying to do with the new gas tax and how much it could cost you. stay with us. ♪ announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." you know it can be hard to lbreathe, and how that feels.e, copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma,

when the imf came to latin america and when stanley fisher imf came in and said, listen. going go. they want cyprus back to the size it should be and they're willing to take a lot of pain. >> maybe the deposits going out is what should happen to right cyprus' -- to jim's point, you should not have a system that is eight times gdp. ? how could the europeans not learn from iceland? >> they turned back the second rate increase. the europeans are truly pathetic. they are pathetic. >> and i think it is a good time for us to have a friendly household reminder that america, you are the biggest shareholder in the imf so when we say imf, don't think it's them over there doing that to them. it is you. 17% of imf, i believe, weir the biggest stake holder. so when the imf pays all of you out there in america watching us on your barca lounger or your trading desk, does anybody buy barca loungers anymore? are paying. >> this is the imfs steel jack boot which we haven't seen in a long time. >> let's take a look at other stocks out there because there's more than just cyprus. lulugeddon,

it's a setback for imf.hose reforms require congressional approval because they involve shifting ads 65 billion contribution to an imf treasury fund. the u.s. tried to send that bill. congressman paul ryan is set to unveil the federal today. ryan says his plan will build approval for the controversial keystone oil pipeline. the proposal will privatize medicare and it's certain to face opposition from senate democrats. paul ryan will be talking to larry kudlow later in the day. gina sanchez is still with us. gina, i want to go back and -- well, before i do that, let's talk about the u.s. since we're on the news. do you buy into equities here inspect do you think the s&p 500 can be next to claim that level? >> he think it's hard to want to buy in here. and if you look at forward earnings, those are going to have to rationalize. average expectations is somewhere around 108. >> i kraelz this is a redeck yuls mart, but you've done well. i think the jobs report is a little behind. is it the fed who is dictating th

behindcould not unify one candidate to lead the world bank or the imf. they're still a force to be reckoned with accounting for 45% of the world's population and predictions of a 45% slice of real gdp by 2013. >> it is possibly the biggest development. now is the opportunity for us to influence this before becomes sandstone for what we have had the last 50 years. >> the expectations for this summit is high. russia is pushing hard to go beyond the economics and find a common political purpose during the fifth summit. al-jazeera, south africa. >> before they get there, those leaders in the bric nations are l.e.d. capital of south africa for it luncheon hosted by president zuma of south africa. jinping, the new president of china, and a lot of investments in africa. on this occasion of him becoming the new president, a luncheon in his honor. i want to give you more on the bric's themselves. some of the most populous countries in the world. think about china with their 1.3 billion people. india, 1.2 billion there. brazil, about 200 million in population ther

jared, the point here being -- and by the way, this move in denmark endorsed by the imf.aching a point where countries have to be more straightforward about some banks needing sovereign support if they fail? >> well, i certainly hope so. i mean, you know, we really shouldn't have been taken by surprise by cyprus. they were very much exposed to greece, and everyone knew that. and so, the idea that these things kind of flare up in ways that surprise investors and politicians and markets is something we would very much like to avoid. i continue to believe that we over here will sort of slog through as our recovery begins to gain strength. i don't think that europe is going to shave too much off of our growth in that regard, but i do think the kind of transparency you're talking about can only help. >> well, and bill, just a quick word? >> yeah. i think this thing about denmark's very interesting, because while the cypriot bail-ins and bank closures demonstrate how we should have bank resolution going forward, remember, the danes were closing down, bailing in senior debt-hold

, we are all so imf asked.announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine. >> neil: this is a nice spright. eight days now falling, the national average on gas prices. but that could change if the international monetary fund gifts it way. they're proposing to pay here a tax to help save the environment. >> i laughed the first time i heard it. i laughed again. because something about -- some things you got to say, are you crazy? >> neil: they're serious. and majority of their members are for it. >> oh, yeah, the majority of the members are for it. but they're in nuts. they're the the reincarnation of -- the idea that somehow this is the w

meanwhile, at the finance ministry, the government has been holding talks with the imf, european central bank, and the european commission. progress on details of the bailout is slow. the majority of the issues on that paper to not call for any further work. there were two issues which will allow me not to go into any detail calling for greater quantification. >> the european commission books prepared to compromise. the biggest banks face a hair cut of 20% on deposits rather than 25%, a breakthrough that may be key to securing parliament's approval. >> we are following the story in cyprus and we are joined on the line. nathan, fill us in on the details of the possible deal. >> as we just heard, we understand there has been agreement between cyprus and the e.u. and imf at a 20% levy will be slapped on deposits of over 100,000 euros at the bank of cyprus, the biggest blunder in this country. 4% levy on deposits, the same amount as other lenders, which would include the much talked- about lackey bank. these pension funds, which we have heard so much about, which we also know were opposed by

>> well the indications we have are the imf suggested a levee on the larger depositors, not on people who had deposits below 100,000. and that will be in keeping with standard practice in other situations. the deposit insurance is on the deposits below 100,000. the problem is the greeks bank don't have the kind of subordinated debt that you need in order to write that down as part of a recappization. what they have basically on the liability side of their balance sheet is deposits. going off to the bigger deposits is dramatic, but not unprecedented. it's spreading it cross all deposits really quite shocking and i think unfortunately, they'll end up backing everyone, backing away from that part of the proposal. >> rose: in terms of all the deposits on 100,000 euros. >> my guess is they will redraw that line in the sand around 100,000. there's already been some modified proposals. was the problem is the cyprians don't have good alternatives. the europeans are not going to provide them with more than a 10 bib you're -- billion euros they've offered. they need 17 euros total. the russians

. >> representatives of the troika of -- the eu, imf, and ecb -- were in cyprus for emergency talks, but they failed to find a solution to the island nation's problems. the cypriot finance minister was in moscow asking for help from his russian counterpart. that was not forthcoming. for the time being at least. >> there were no offers. nothing concrete. we are continuing discussions. we are happy with the beginning, and we look for to continuing the discussions. >> cypress has long been a tax haven for russian companies who have billions of euros in separate banks, but many russians who live on the island are outraged at the proposed levy on their savings. >> this country has cheated us and stolen our money. yes, stolen. it was not their money. we brought it here. we did not earn it here. >> for now, a separate account holders are relieved that parliament shot down the proposal. >> it was time to take a stand. they are sure to find a solution. the separate people are strong. we can take a lot. we have proven that before through many tough times. >> the cypriot government is still sea

that's why we got to get the imf out of this. once you have an economy that grows again, you develop middle class that will have zero tolerance for that extremism. >> the last word. coming up next, did you know that you are paying for more than 50 federal job training programs? now there is a new republican plan to bring that number down and they say it will actually help the job market. so why are some of the ford's crew against it? >> they cut the job. i got the job! only in america could i get a jobbbbbb ♪music plays thank you orville and wilbur... ...amelia... neil and buzz: for proving there's nowhere we can't go. but, at some point... giant leaps gave way to baby steps... and with all due respect, you're history. if you taught us anything, it's that you can't cling to the past... if you want to create the future. that's why, instead of looking behind... delta is looking beyond. pushing u.s. aviation to new heights. all 80 thousand of us. busy investing billions in the industry's boldest moves. it's biggest advances in techn

. >> the use/imf bailout is coming under attack, including from the outgoing chairman of the bank of cyprus. >> the crisis is creating unlikely allies. workers from the bank of cyprus protesting at company headquarters proclaimed solidarity with their boss. earlier, the bank chairman tendered his resignation, reportedly in protest over the terms of the eu bailout. bank workers now fear the worst. >> everything hangs in the balance. it is all about destroying the banking sector in cyprus. we will do what is necessary to fight for the rights of bank workers. >> nearby, a crowd of mainly young cypriots vented their anger in front of the presidential palace. they are blaming all politicians and bankers for the country's plight. thousands are now threatened with unemployment. at the moment, we do not know what the future holds. >> we wanted to go to jail for it. >> politicians are doing little to dispel those fears. the labor minister has warned cypriots to brace themselves for a sharp economic downturn and a steep rise in unemployment. >> let's get more now from correspondent nathan morl

. >> the use/imf bailout is coming under attack, including from the outgoing chairman of the bank of cyprus. >> the crisis is creating unlikely allies. workers from the bank of cyprus protesting at company headquarters proclaimed solidarity with their boss. earlier, the bank chairman tendered his resignation, reportedly in protest over the terms of the eu bailout. bank workers now fear the worst. >> everything hangs in the balance. it is all about destroying the banking sector in cyprus. we will do what is necessary to fight for the rights of bank workers. >> nearby, a crowd of mainly young cypriots vented their anger in front of the presidential palace. they are blaming all politicians and bankers for the country's plight. thousands are now threatened with unemployment. at the moment, we do not know what the future holds. >> we wanted to go to jail for it. >> politicians are doing little to dispel those fears. the labor minister has warned cypriots to brace themselves for a sharp economic downturn and a steep rise in unemployment. >> let's get more now from correspondent nathan morl

by the way the imf is not new money. it is money already within the imf, international monetary fund. it is just changing from one account to the other. melissa: hmmm. >> you about even so we're talking about a really, a lot of foolishness going on. we have not settled down here in washington to look at program by program and what could be cut, what could be delayed, and what really --. melissa: why? why? why aren't you guys sitting down doing that? >> i don't know. do you want me to lash out with a whole series of frustration? melissa: no, i think the american public watches all of this go on and they sort of rip out their hair. i understand you feel the same way seems like it whenever we talk to politicians individually they seem like they're so frustrated. so what do you think could be done to sort of stop the nonsense and move on to doing something productive? >> it's the hard work. it is hard work of committees. it is works of sitting down an going through each of the individual expenditure items, line item by line

that's why we got to get the imf out of this.nce you have an economy that grows again, you develop middle class that will have zero tolerance for that extremism. >> the last word. coming up next, did you know that you are paying for more than 50 federal job training programs? now there is a new republican plan to bring that number down and they say it will actually help the job market. so why are some of the ford's crew against it? >> they cut the job. i got the job! only in america could i get a only in america could i get a jobbbbbb this is $100,000. only in america could i get a jobbbbbb we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, we d

that's why we got to get the imf out of this. once you have an economy that grows again, you develop middle class that will have zero tolerance for that extremism. >> the last word. coming up next, did you know that you are paying for more than 50 federal job training programs? now there is a new republican plan to bring that number down and they say it will actually help the job market. so why are some of the ford's crew against it? >> they cut the job. i got the job! only in america could i get a job ! >>> hi, everyone. we're live from america's news headquarters. i'm jamie colby. we have new information for you on the scare on the runway at new york's jfk airport today. two planes clipping one another. we're being told that a jetblue plane carrying about 150 passengers heading to florida was hit by a landing air india jet. fortunately, no one was hurt. both planes did suffer damage and the faa is investigating. we'll keep you posted. don't forget as well, you're going to lose an hour of sleep tonight as we spring forward into

tyler, i have a call in to the imf. i'm awaiting their response. >>> 40% of the deposits in the cyprus banks belong to foreigners. many of whom are russian investors. robert frank here with the fallout on this. i guess it's easier for the cyprus officials to say let me take the money out rather than lay the whole cost of this bailout on cyprus' taxpayers. >> but the way they did it is surprising. cyprus is not just a tax haven for russia, it is the tax haven for russian millionaires and billionaires. russia has invested $119 billion, that's with a "brks" in cyprus in 2011 alone. that's by far the largest recipient of russian investments in the world. equal amount of investment came back to russia from cyprus. funny how that works. russian investment is five times the total economic output for cyprus. russians account for $20 billion of total bank deposits or, tyler, as you mentioned, more than a third among the top russians in cyprus is the fert cider magnet now the biggest shareholder in the bank of cyprus. he has a lo

the fed has done all three. >> you know the folks at the imf.his? >> i can't. i can't, andrew. i think this was a compromise, negotiated, really late at night. nobody stood back and thought, what are the consequences. they had a number they needed to meet, the 5.7 billion. they had to meet that number. and they said the details, you work it out. and no one looked at the details. and the problem of the details are really problematic. >>. >> you don't think this was part of the conversation? >> i think the big conversation was about the big burden. how much should be shared by the imf and the eu, 10 billion euros. and how much should cyprus come up with between a bank levy and privatization. >> how much do you think was supposed to be a stick in the eye to the russians? >> i think part of it is -- i think it's more a stick in the eye of all those who believe cyprus is a safe and lax jurisdiction. in terms of off-shore banking. i think europe had a different agenda also, which is, hey, look, we no longer are going to allow money laundering. and the

probably the biggest worry for me is the idea that the imf and the european central bank signed on tos deal and the appearance that they were not thinking about potential contagion effects. >> right. >> that really causes some concern as to how aware they are of how markets function. i think there's a reason for bigger concern of all the other ones from that. >> rick santelli, what kind of an impact are you seeing today? >> i look at 10-years, basically mid 190s all day. opened up. yields were lower. it's pretty much planted itself in that area. many are amazed we didn't see more action. whether you're looking at the cac, the dac, the boons, the oats, all markets are basically the same which is what people are talking about here. we really didn't see the black swan appear. we didn't see the lines in europe appear. and maybe that's the most disturbing aspect of all. bail in so you do the creditors versus taxpayers is understandable six months away from a german auction. but the way it was done, even if they don't pass it and they pull the idea, once it's out there as being considered,

the solution is to find a solution outside from imf and stand on our own because it looks like our friends in europe are not supporting us at all. >> protests continue in cyprus against what critics describe as an economic world war iii, a bailout deal forcesyprus to freeze all accounts over $130,000. there will limit prank withdrawals to about 1 1/3 dollars and closed its second largest bank this covers a harbinger of things to come in europe and even the united states? we will speak with economist richard wolff, author of, "democracy at work: a cure for capitalism." >> fundamentally, this is a struggle to take a crisis caused by the business community and make demands of people pay for it. that is what austerity means. the real test is whether the people will absorbent and accept it. >> all of that and more coming up. >> this is "democracy now!," democracynow.org, the war and peace report. i'm amy goodman. the government of cyprus has brokered a last-ditch $13 billion bailout deal with european officials to stave off the collapse of its banking sector. under the deal, on deposits above a

as you know, la guard is the first woman to head up the imf. keep you posted. >>> today the state of colorado is going to do something the federal government has not. sign new gun legislation into law. colorado's governor will sign bills that require universal background checks for gun sales, make buyers pay for those checks and limit the size of ammunition magazines. but today's historic signings come as colorado warns the death of the executive director of the department of corrections, the man in charge of colorado prisons. tom clements was shot and killed at his home last night and right now police have no suspects. colorado state representative rhonda fields is in the newsroom. welcome. >> thank you so much for having me. >> thank you for being here. you know, i want to start with the shooting death of tom clements. when you heard about it, what went through your mind? >> i was very shocked and saddened. our director is such a kind leader. he was very competent. i'm not quite sure why someone would do that. my heart goes out to his family.

working off of an imf report.ntifying the same thing, but i think we need higher capital standards as protection against failure, instead of the taxpayer versus just some big tax. david: what about access the federal reserve pipeline? they didn't have an open window to the fed, that was reserved for the commercial banks, the one that held steady loans and deposits. that window was open during this crisis through tarp, should that window be closed? >> yes, that should be scaled back as well and wish you get back to the tradition of having fdic insurance for what it was intended for, protect deposits. david: two other democrats agree with you on that? >> i david: the reason they were together, talk about federal reserve policy and banking regulations, what do you think about the federal reserve and its policies in terms of trying to dissuade them. it is working or not? >> in terms of the policy, i think that ratio of benefit to risk his way out of whack, have thought that for quite a while. in terms of too big to fa

you -- essentially are told you are helping the bail-out, not only cyprus but in terms of the imf dealbout the european union and the imf and the ripple effect we heard from nina and charles about the potential impact in places like spain, you start to think wait a second. they are the number one trading partner to the united states. if apple or somebody else said we don't have a market there. the european economy is collapsing. if that clashes, what does it say versus state of the global economy? we are not insuelated against the global impacts. this could have a terrible impact on the fragile recovery. >> shannon: meaning if this is a last minute deal and they talk about negotiating through the night. sigh of relief. what is the downside? >> let's go back to what could have happened and the banks would collapse anyways. they were feeling the renallal effects. part of their problem is holding the greek debt. so you see a ripple effect. you will out in some other countries like spain. i think it continues to move out. this is a threat for the u.s. u.s. economy. we went through a period

based on ant was institutions,ree the commission, the ec be, and the imf.he commission has been working hard for many months to facilitate a sustainable i recallto help cyprus i raised the issue of financial results -- assistance program novemberirst time in 2011 with the finance minister of cyprus because of concerns about the sustainability and financial stability. been a particularly complex process in the most challenging of circumstances. already last week, we found ourselves in a situation where there were no optimal solutions ,vailable, only hard choices and that has been even more true in recent days. lagarde said the deal would restore trust in cyprus and banking system. >> it has been a laborious and could result. i would also like to salute the courage of the separate authorities -- the cypriot authorities who are taking on the challenge of putting into place and implementing in the days to, something that will number one protect the injured depositors, number two, treat the two -- the two troubled banks, and limit the treatment to those two bank

pushing the imf to have one or not to have one? and should the imf just give the money to egypt or what needs to be done? >> okay and the last one. why don't we just take this last one and we will have all of our closing comments. >> i am working with a program in cairo actually. i guess my questions stems from everything that people have been saying about the response to violence and about the basic reactions of nsf and the electorate and everything, but my question is are you seeing a general radicalization of society both the liberals becoming more radical and we see that in the fact that we saw islamists marching military style towards the protesters and we see it in the fact that they are supporting and promoting vigilante groups now. it's all over society, the breakdown of law that you mentioned. so how can this be overcome and to reach that point of compromise, because we can say that people can say they're willing they are willing to do it but in general it has to have support from the population. the muslim brotherhood are

discussion and a lot of focus, as well, on the strained relations now between parts of the troik, the imfopean commission. where are there disagreements? and how problematic is this going to become? >> it's a great question, ross. the commission perhaps trying to go for more delaying tactic, perhaps, that we've seen in previous bailouts, whereas the imf far more detailed about making sure their debt sustainability is in place and we don't have to go through this whole process again. so that was what we were looking for at the press conference. and to be honest, there did seem to be a bit of tension, but we caught up with them after the meeting and just asked them how these two key elements of the troika are managing to get on. listen to what they had to say. >> we have a very good working relationship. like in all human relations, there is sometimes friction as you have a very difficult -- as we have had now. but very friendly terms. madam legarde and we continue to work. >> can you tell us about the future of the troika with regard to future bailout? >> the troika is doing fine. actually

treasury to support the imf.he put in reform and told the people of turkey, look, you have to take this austerity for x period of time. we will lead you to growth. he did. look where turkey has come after that. i use these three examples. one in the middle east, one in latin america, one in asia where they were able to do this. it was an example of leadership to do what is necessary. i mean, in korea, we got this done in a couple of months, and four months later they were raising five $5 billion in the international market which is lot of money. they took a decision and went tat. >> there's a lot of things you were talking about the leadership, the political leadership, the timing, and the banking union getting the banks back to the lending and the fiscal pack in those components on that part. you know, just as a side. in talking about another country, russia. you know, russia desperately wants reintroduce itself to the rest of the world and not some of the ways they have been. they have the opportunity with the

john make con, former consultant to the imf.ia coronado, chief economist with bnp paribas and former economist for the u.s. federal reserve board. of course that is the "wall street journal" steve moore. steve, their track record not so good. >> it is pretty dismal. they're not good forecasters all they ben bernanke is looking pretty good right now. the economy is picking up steam, no question about it. we're seeing really good stock market obviously. the one thing that i worry about,hat ben bernanke doesn't worry about, those esther george, the fed chief, that kansas city bank basically said we have to worry a little bit about inflation when we keep putting $80 billion into the economy every month. i agree with that concern. melissa: julia, what do you think about that. he was asked that question directly a number of times t was also in the statement. very mch shrugged it off. he basically said we could use a little bit more inflation right now? >> absolutely. >> he should shrug it off. i completely disagree with that. what the