so often go to portugal. there are 50 boats on route to portugal. 136 containers. there are tents, people, juries, 100 television people. the america's cup world series is a big event. for us to assemble all of this and liz bonn, -- lisbon, starting the world series, major planning and logistical. we will pick up all of that equipment in portugal and transport it and reset it in plymouth some 30 days later. in the world series, today, we have the team that will be participating. the boats are and progress of being assembled, tested. more than just the five people on the boat. each boat will carry up to 25 people as part of their team to participate. of course, this is all about the america's cup coming here in 2013. the america's cup world series provides not only the background for the teams to practice, learn how to sail catamarans, wind sails, what with their sponsors to win the event, but it also allows us to educate us about the role that we raise in, educate the people out there fascinated by these boats, and allows us to bring it to the people, prior to comi

recent ratings have put a lien european countries like portugal under pressure. portuguese treasuries went on sale and they reached their highest yields ever. >> the government is outraged by the downgrading. the portuguese bonds have jumped started even though the government recently introduced drastic austerity measures. moody's is concerned that portugal will need a second bailout despite spending cuts and this has angered the finance minister. >> the reasoning behind this assessment is very hard to understand and even more so that it has come at this particular time. >> portugal's government says they are just getting to grips with the crisis. some economists support that view. >> things are progressing relatively well with the national budget. the deficit is falling. the measure between the eu and imf cannot be assessed properly. the rating agencies' comments are somewhat inappropriate. >> lisbon has received a 78 billion euro rescue package from the eu and imf. in return, they must cut their annual deficit from 9.1% of gdp to 3% by 2013. the european commis

and the bankruptcy of of portugal. so the german nearly is forced to. use its exports more to maintain some of. it which is to maintain some kind of stability financial stability to to be able to cope with this situation of the bankruptcy of. the euro last night and that certainly would seem to make sense to boost exports to make some money when it's having to buy time to support so much of the bailout for the eurozone but you know germany is also considering supplying bomb components and other weaponry to aid nato in libya what do you make of this yes it's a kind of wonder if that's the second what it's going to be under pressure politically because it has this back up or is this a abstained from active military intervention in libya and of course it wants to get also or get a share in it in the oil contracts later on that are expected to happen with. the heat on rebels or germany doesn't want to get too far behind it is race war for oil so it's certainly now showing its alliance to the west or to the to the western powers would this arms deal yet a pe

and the bankruptcy of portugal. is forced. to use its exports more to maintain some kind of. which is to maintain some kind of stability the financials if you were to be able to cope with this situation of the bankruptcy of the. the euro well that's not and that's what he would seem to make sense as to boost its exports to make some money when he's having it happen to support so much of the bailouts of the euro zone but a you know germany is also considering supplying bomb components and other weaponry to aid nato in libya remake of the u.s. it's kind of under it as a board it's under pressure politically because it has. strayed from active military as of engine libya and of cause it wants to get also or get a share in in the oil contracts later on that are expected to have a good record with a legal reference for. germany doesn't want to give them far behind if this race were poor so it's certainly now showing its alliance to whisper to it to the western powers would please arms deal yes a peace activist life from home thank you thank you very much. well activists and romani

replace it with portugal. this is exactly what we started to see in the buildup to the situation greece is in today. we started to hear from the credit rating and they said they promised and pledged to increase taxing and others say how are you going to develop growth off the back of the deep cuts and increases in taxes? so then we're going to turn around reduce your credit rating to junk status. it's exactly the same thing we saw with portugal which was supposed to return to the bond markets. though there's a lot of worry that they may not be able to do it. if they can't return, then we talk about a second bailout forport gal. >> but that is less dramatic, because greece goes before it. if greece can have a resolution, then they know they can have one. >> yes. and part of that is getting some of the private sector to cough up some of the pain. so now we've got the biggest banks meeting talking about the bank plans and rolling over that debt. a lot of critics talking about the interest they would charge greece

is ready to come to portugal to rescue yet again under direction the e.u. and the i.m.f. are taking in solving this crisis may well lead to severe consequences that's according to douglas carswell an m.p. from a british conservative party. i think it would be immensely food dish to have another bailout because what we're doing with each so-called bailout is adding to the amount of debt owed by countries who are already bankrupt if we really want to fix this problem instead of adding to the debts of portugal greece and other countries what we should be doing is three things we should be devaluing the currency is that means leaving the euro we should be allowing them to default on debt restructuring if you prefer that time and we should be forcing them to downsize their expensive public sectors by so-called bailing out greece we're not helping greek people. what we're doing is we're transferring that debt burden onto the shoulders of european taxpayers it's an outrageous scam and i think it will mean that you know my children and my children's children will have vastly high

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

and the euro's woes take a turn for the worse as portugal's debt gets downgraded to junk status with panic spreading over where it will end. and a diplomatic dustup between russia and france moscow reportedly hits out of the french libyan rebels saying it was a violation of the un resolution on the conflict details on that just ahead. international news in comment live from moscow this is. almost four months since the massive earthquake and tsunami tore through japan's northeast the daunting task of rebuilding homes and lives continues efforts have been boosted by the passing of a second emergency budget of almost twenty five billion dollars as well as financial assistance traumatized survivors are also in desperate need of emotional support as thomas reports. as the waves crash against damage to sea wall on the japanese coast volunteers work tirelessly to clean up the degree in bring some sense of normalcy back to the area. and i want to tell people we need more help more supplies and things are still kind here beyond the physical destruction and there is a distressing psychological

dollar unfortunately execution has not been very good they brought in people like greece and and portugal and ireland who weren't paying they aren't paying their bills and who weren't paying their bills and that's led to the problem i'm like dennis i cannot conceive of why honest hard working all austrians and dutch and fans should have to pay for a bunch of greeks are sitting on the beach drinking too so and greek banks often this is outrageous because if i go to you in washington ok we have two euro skeptics here you get a bounce and i don't little bit. i'll try to the bottom line is this this this was a good project to begin with if the membership had been correct greece portugal ireland spain were never supposed to join and if it was a reasonable six countries bedded down we would have had a pretty successful project but in the you know we've got. in the eurozone at this point this is not healthy and i agree with them that this situation is now but it's done it's legalized and no one can step out and no other people can you know sort of change the rules at this point so the germans ha

purposefully targeting these countries for destruction because they want their assets for nothing well portugal's new premier pedro passos coelho said moody's downgraded was a punch in the stomach at a time when the new government has done everything demanded by the e.u. and i.m.f. inspectors well that's part of the rocket motors is a publicly traded company warren buffett's one the biggest shareholder they manipulate that stock price they manipulate their ratings they telegraph what the regs are going to be before they make them so the insiders can profit from the inside information inside information is legal in washington they are lining their pockets they're disenfranchising the people who live in these countries who are led to the austerity measures imposed upon them for things they never did and debts they never incurred and this is continuing unabated because nobody stepping in to represent the interest of the people the government like puppet joy in greece is in the pocket of the terrorist puppet dry oh you are a terrorist if you are a financial terrorist do your country a favor and top y

right now we're in a death spiral in greece ireland of portugal because of all the austerity measures that the economies are just spiraling into nothing they were chumps these irish are because remember when they were the first to go into the sterett butchering they didn't revolt in any way and then when athens started to revolt in the street the people in ireland are very proud of themselves oh we're in the greek yeah we are thinking that we're not out there actually defending our interests and you see that there are no plans anywhere where the greece portugal or ireland to develop a real economy at all irish finance minister michael noonan has pleaded with consumers to replace their clocked out refrigerators and tumble dryer so where are these tumble dryer is the refrigerator is made probably china or germany it's not going to help their economy at all consuming does not help their economy producing helps their economy the companies that the irish government is encouraging to relocate to ireland and in dublin now are companies like that create virtual currency which is a backdoor wa

politicians loudly condemn what rating agency moody's decision to downgrade portugal's debt to junk status threaten possible retaliation send shock waves through financial markets and triggered worries that portugal could follow greece down the path of a possible default. in georgia for high profile photographers have been arrested on suspicion of espionage just days after nine people were sentenced to lengthy jail terms for spying position has attacked president saakashvili as we've seen for targeting mass media saying he's whipping up russian hysteria. in greetings from the outskirts of the center of moscow this is r.t. certainly glad to have you with us let's get right to those top stories billionaire media mogul rupert murdoch is pulling the plug on britain's the biggest selling newspaper the news of the world the decision to stop the presses for good came after a phone hacking scandal and golf the tabloids and a storm of public outrage and revulsion the papers accused of hacking into the phones of murder victims dead soldiers families and bribing police for help detectives leading wha

from it no you're right of course when moody's downgraded portugal by for not just to junk. spreads on irish debt. irish begged to buy fridges to boost the economy so the yield on ten year bonds rose to record amid increasing speculation that the nation's credit rating may join greece and portugal and being downgraded to junk and the only thing that could rescue them they're saying is consumers but the consumer savings rate is over twelve percent look this is a complete disconnect between what is sound economic policy should be and the benefits or harm it may impose upon the population to people in ireland should not be out incurring more debt to buy consumer nondurables and white goods like refrigerators and washing machines they want to save money and they want higher interest rates and they want higher wages so why is the government or whoever at the club to credit class encouraging that they go deeper into debt oh let's see because it allows the policymakers to legitimize more quantitative easing which keeps interest rates artificially low that helps to oh the speculator

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

moody's today cut its rating on portugal to junk, with a negative outlook. moody's fears portugal, like greece, will have trouble cutting costs and will need a second bailout. >> susie: meanwhile, an important meeting tomorrow to hammer out a bailout loan plan for greece. things were looking good for a deal until standard & poor's ratings agency warned the proposal to roll over greek government debt was in effect a "selective default." joining us now to explain what that means for investors, kenneth rogoff, professor of economics at harvard university. >> nice to have you with us tonight. >> thank you. >> susie: so the deal that was worked out between international bankers. europe officials and the government to roll over. >> a new long term package and a soft restructuring, reprofiling. a voluntary rollover. but s&p says no matter how you look at it, this is a selective default. is this semantics or a default? >> it's a default. when you don't pay your debt on time and have to go to the lender and stretch it out and get new terms, this is a default. the bar