the greeks are somewhere else the burden of the crisis but europe is in the cries of but europe is not falling apart and they are scenarios of what might happen i mean one of the scenarios which is widely discussed in europe is a change of the euro zone i mean greece will leave the euro zone but. poland will become a member of this euro zone a stone member of this or a zone sweden will enter the results will no catastrophe i think will happen the problem is that if the aura zone will change and greece will leave and the south some countries will also maybe have problems and staying in the aura zones like italy spain and portugal we will deal with a different europe we are you talking about greece leaving the euro zone is something normal but many other people including financial risk would say this is caster this this is the end of the euro well there are already troubles and i and the markets today here you don't see there's a first of i mean not you personally but german the germany in general greece makes two percent of the european economy. and greece will not suffer badly if they

they're saying europe will do whatever it takes to keep greece in europe regardless of a new government that will reject the austerity measures. will germany sign on to that? >> i'll do it under the following conditions. if you tell me where we get the money from, will we get it from the brits who are broke or from the french who are broke, whose national debt has risen from 35% of gdp in 20 years to 90%? will we get it from the great state of luxembourg or maybe from broke spain? where will we get the money from? if you tell me where the money is, we can talk business. >> can i talk business with him? >> but niall -- >> that's actually a really good question. what's the answer? no, no, where will the money come from? >> the deficit -- the deficit of the country. all the countries are in a big de deficit. the deficit started after the subprime crisis in 2008. spain, 2007, 39% of deficit. and now it is at 90%. >> you are not answering the question. >> it's sinked ee eed linked t subprime crisis. is it true in >> where does the money come from? >> that's not the question. >> where does th

growing i don't want to live in a europe of bureaucracy i want to live in a europe of democracy while said real quick before we go in may addressing european parliament you said you feared this project could cause the rise of national socialism in europe now after two rounds of greek elections we have. neo nazis in parliament how much worse do you fear this could get politically in terms of fracturing and the division into extreme politics. if you take away from people their right to determine their own future is to live under their own rules to take away from them that i should say. that you risk doing something that we stupidly did back in nineteen twenty with yugoslavia but we took diverse different balkan states we forced them together against their will under a new identity and you and i both know since ninety nine say the awful things that have happened as those countries afford to go back to their independence so determination democracy and freedom we mustn't allow the european union to make those same mistakes. you heard of mr nigel farage later of u.k. independence party. let

two three or four europe's. strong states. the. one hand middle states like france belgium and luxembourg on the other hand and then the so-called states but it's nationalism again and you really have a conflict in europe and then there is a tertiary in my opinion that is the rate that give the people's mind the most movements are strong and if they find political translation it's will be possible to go to. something like a socialist europe or a group of so you dirty of corporation or banking system it's public to our energy system it's probably better is democracy and one of the countries of course at this crossroads having to make a choice is greece you talked in your book about a lot of the myths surrounding greece why do you think it's being misrepresented if you have the official figures everyone can benefit and everyone can see that. the. greek people are working. more than two thousand and one or a year and that is for example more than six six hundred i would say year more than that in germany more than five hundred dollars

something like a socialist europe or europe of so you dirty of corporation banking system it's public to our energy system you're probably right it is democracy and one of the countries of course at this crossroads having to make a choice is greece you talked in your book about. a lot of the myths surrounding greece why do you think it's being misrepresented if you have the official figures everyone. and everyone can see that. the. greek people are working. more than two thousand and one dollar a year and that is for example more than six six hundred i would say year more than that in germany more than five hundred dollars a year more than in belgium so the summit of the lazy greeks doesn't exist and so i was asking myself why why are they telling such things on mainstream media. in germany in holmes. in belgium and i think it's very easy to understand because the. establishment who has the most. profits from this story since ten years that is the german establishment and the establishment and so in creating this false conception of the greek people you can say but no it's no not a pr

this is europe. [applause] >> ladies and gentlemen, a powerful and heartfelt appeal to the european project. now up next speaking for the resolution josef joffe. [applause] >> i have to start by correcting my friend, niall. he's wrong about the phone number. there is a phone number. the phone number is katherine ashton. you call the phone number then you get a computer voice, for germ press one. for france press two. that tells you where europe is at. but let me say something else. i think europe was a wonderful idea. after all, the god of gods, zeus, risked his marriage with the misses when he was so smitten by europa that he ran off with her. and the roman poet sings, till in the open sea he bores pride, the right-hand grasp a horn, the other upon his back. now, europe was also wonderful idea several years later when it decided to unify after the two most murderous wars in history. what a maffing story. first six nations get together. they integrate, then vote now they are 27. then blow by blow com

obama's big issue now is europe. but europe could damage the re-election. it's here at home and i think he has to solve our fiscal problems and show leadership so the economy won't really tank. anyway, sam, tony and jennifer, thanks, everybody. coming up on "the kudlow report," the ral loin spain's big bailout was very brief. stocks wound up sinking triple digits. more jitters of contagion and a greek exit that could stabilize the world's economy. the architect of the greek debt deal is waiting in the wings. later on, a defining moment for president obama that will haunt him through november. maybe cost him his own re-election. don't forget. free market capitalism is the best path to prosperity. it's true for europe and the united states. we just don't have enough of it right now in either place. tdd# 1-800-345-2550 let's talk about the personal attention tdd# 1-800-345-2550 you and your money deserve. tdd# 1-800-345-2550 at charles schwab, that means taking a close look at you tdd# 1-800-345-2550 as well as your portfolio. tdd# 1-800-345-2550 we ask the ri

over europe. that's a standing recommend decision and we still think that continues to be the bet to make. >> look richly priced and i think the selloff of the markets will probably offer opportunity more in the riskier assets for those who got the appetite for risk and medium term horizon. >> what is not the trade of the day is being long oil. if you look at what's happening with nymex, flirting down with that $80 a fwarl mark thbarrel . and you wonder if thep for consumers comes it too late. >> and if we're looking at more pressure on the price of oil based on the iaea and iran announcing they'll be meeting in vienna on the 8th of june over the nuclear program. whether that's adding to more selling there. and one of the comments that really stuck with me was one of my guests who said that just because something is undervalued, doesn't mean you have to buy. you hear everything is cheap, but it doesn't mean you have to buy. >> and we're learning that lesson the hard way lately. in the u.s., same s

if europe were at 2%, 3%, europe wouldn't have a problem. what are the difficulties? you can trace almost the price of bonds in germany depending on, and italy depending on the progress of monti, who is a very free market guy, had a competition in the commission, you could trace the prices almost in tandem with progress or lack thereof of getting his reform program through the italian parliament. now what to me is the key to all this? i asked this rhetorical question, sort of a trick question when i first went to europe in january of 2006, who was, how many people know this, who was the sick man of europe when i first got there? what? germany, yes, germany's growth was slower than greece, spain, italy, ireland, whatever, and what happened? what did they do? well, they did the so-called hearts reforming under schroeder. he never really benefited from it, chancellor merkel has had a huge benefit from it. this is not the first time, president bush 41 cleaned up the banking system, lost in part because of it and clinton had a great run, you know? but that's life, that's j

you know high speed rail connections in europe they don't exist in most. we did this better than say frankfurt so there's a lot to be done a lot easier if we did this again i think everybody would agree all these things are given but who can do it ok ok there's the european parliament which most people in the they are represented in the european parliament you do not know who represents them there ok i'm sorry it's not a real parliament yet it's got a long way to go we don't have a real we don't have a real president of the european union we have figureheads ok we did how do we get that how do we square the circle is there because a lot of people say there is a democratic deficit in. there let's just forget that the european union is a political union apart from doing this kind of the monday union the main thing that is a political union has its intuitions and it's run. if i may say it's run by twenty seven governments which together and. decide all together that's not i know that is not the united states of here is it yes you know last night you know it w

>> europe is troubling right now. unfortunately europe has a bigger hangover affect arm the world. i use a couple key words. in the u.s. we've had ceos and businesses resilient but the overhang is putting a dampening effect. the second thing is variablity. >> where you seeing the strongest area of business especially when it comes to possible future hiring? >> we'll we've done a survey the strongest hiring was around the area of technology, health care services, professional services and communication. those were the big industry trends where they'll be hiring on a global basis looking ahead. that's probably waned because of the overhang but that's what ceos were telling us. >> a little financial literacy with robert morett chairman of pwc. >> thanks, tom. >> tom: after a morning sell- off, we saw steady buying into today's closing bell. the low of the day was hit in the first 20 minutes of the session with the s&p 500 slowly climbing from there. the index was able to end close to its highest price of the day, helping make this the best week for the index this year. volume was very

ok we'll talk about the democracy deficit in europe later keep going i mean the solution for europe is quick and radical action pain saw it with abandon finally from. virtual worlds of talks and negotiations and get back to reality. ok if i can go to you do you want to see you know the leaders rushing the something like the year we had a presidential candidate that said. russia should join the euro while i think i will have a discussion in russia to thrash satisfaction relationship with the european union and then i heard a loud crash go away can i say i don't think anybody wants to join me at all that you have no option like an invalid clearly expressing. your will get why don't you jump and there are several countries that actually are now still wanting to go on the euro one of them is poland and not today not today exactly so we need to fix the euro first but how do you fix it so i mean only to i think we've had about this topic how do you fix it jacob has the idea but i don't know if it's politically feasible so i think we will start from another place i think we will start from th

and europe. one is exports to europe. the good news is at the national level they're actually not that big. we only expt 2% of our p to europe, basically. to the yurdz. compare that with 70% of the economy, this consumer spending. so it's fairly small. that's one link. the other is the banking system. here the vulnerability is a little bit bigger. any kind of pullback by european banks or credit tightening in europe could have global ramifications including for u.s. banks. again good news is u.s. banks are reducing their vulnerability to europe and the european credit situation. but still that vulnerable is there. >> brown: drew greenblatt are you in the business, you make the linkment how specifically dot economic trouble notice europe affect your company? >> it's to the good. when the europeans are slowing down that means they're buying less. and that's to the good for us in terms of growing our business and hiring more people. however, south america, canada, mexico, asia is still plugging away. the american economy is

and that's the pattern that europe is in danger of getting into. you know, some countries in europe right now have an unemployment rate of 15%, 20%. if you are engaging in too much austerity too quickly and that unemployment rate goes up to 20% or 25%, then that actually makes it harder to then pay off your debts. and the markets, by the way, respond in -- you know, when they see this kind of downward spiral happening. they start making a calculation, well, if you're not growing at all, if you're contracting, you may end up having more trouble paying us off so we're going to charge you even more. your interest rates will go up. and it makes it that much tougher. so, you know, i think that what we want both for ourselves but what we've advised in europe, as well, is a strategy that says let's do everything we can to grow now even as we lock in

northern europe is not as cheap as southern europe. if you go for ten years you have one trade to do you wouldn't buy bunds when you have treasury. you look at southern europe and say there's value. >> how did you buy europe when we don't know how much money the spanish bank needs to recapitalize. >> the valuation speaks for itself. imagine a large forest fire. it recovers. how you look at it. there's a bullish line you can put on these things. it doesn't matter how big the national disaster, it will grow back. the ten year view it will grow back. >> the attention is off of greece. now we're look at spain. i was speaking to someone last night who said i bet you anything that if yields go 7.5% ecb will be forced to step in and do something and if we see that you have to question whether the italian yields will start as well. >> i think long term, value is a different statement. thailand was in that situation in 1998. >> when you look back at the asian financial crisis they were able to adjust via their exchange rate. in this case these

you have europe looming. any thoughts how these big events play out that will very likely dictate where these markets go? >> i think there is this stealth res resurgence that people are not appreciating. as we see poor headlines in europe, a lot of people lose sight of the fact that that is the other side of the coin. it's remarkable to me that air bus, for example, is now opening up facilities here. we have much better wage and labor situation, and of course natural gas prices here, so i will see a huge courage in capacity, moving from the developed countries like europe, canada, and i'm hearing capacity to china. i expect that to continue and we expect to hear more of that. >> that's good for the u.s. from a economic perspective. if people believe those are fundamentally responsible in general for lower ratios than might be realized, while that will benefit us economically, that does not drive stock prices higher. >> while correlations between the u.s. and europe are remarkably high, we can't lose sight of

or less europe as a result of the crisis and we we all know increases the country that's been hit the hardest since the euro crisis started yes indeed greece has been the heart of this this was the first to be hit and to be very hard i have to say. now we had two elections in a role in maine to june and that people voted good people voted and voted i think for the you will stay in you will and i think that this is a distinct unit if they vote for a stereotype as well are those two different things the no more or less it goes with it goes together it goes together they know that's thinking you know he's a difficult boss but it's a path for them for perspective in the future and that's why i think personally that. the decision that was taken several years ago to enter the you and the decision late to do and the yunus on it was a very serious decision national decision is thirty six for us and that's why we think that they also the people want to stay if you will it seems to me you know. a lot of people have criticized the greeks because of the of their monetary and fiscal policy it's ok

loans are in europe and so the u.s. treasury department will defer to europe for matters that are focused on europe but in the rest of the world in all the developing world where the u.s. still where the i.m.f. still makes the loans it's the u.s. deciding so they control both really of the mess in the world bank which is two out of the three international institutions that have any power the third one is the is the security council and there they have the veto as well so this is this is the world after world war two and the global governance has not changed that's one of the reasons they created the g twenty but it's still the g. seven making all the solutions because and mainly the g one you know here in washington because that's who has power in these institutions of international governance that actually have power you don't see that change saying. not only when it comes to voting rights but the policies of these international organizations are talking about the i.m.f. and the world bank now there is change it's slow

so has europe failed? i would say it is just too soon to know. could europe fail? of course it could. but must europe fail? absolutely not. thank you very much. >> well done, gentlemen. a very strong opening to the debate. and i think you've flushed something out which is important which is how this audience chooses to define the european experiment. is it the euro? is it a larger civilizational project? that's going to be up to you to decide when you pick up your second ballot at the end of tonight and for those of you voting online right now. our next phase of this debate is to have these debaters engage each other directly. neil, you were the first to speak, so i'm going to come to you. what have you heard from the opposing sid here that you just fundamentally disagree with, that you think they've got wrong from a to z, and then i'll have them rebutt. >> exactly as i predicted, he fell into the trap of contributing the peace to the process of european integration. he did it in an emotive way which has played well for him since 1968. it didn't work for me when i

so is europe history now? we don't know but we know one thing, that the experiment has failed in the sense that the wonderful dream of the 50s, up up and away has collided with the nasty reality of the nation-state. that will not fade away. and if truth be told, how many french germans and poles etc. will want to part with 2000 years of history? let me conclude if i may end this audience that has given victory to hitchens when they talked about god. let me conclude with a prayer nonetheless. let's pray that the inevitable crash of europe, the most ambitious part of the experiment will not very the rest and let's plead with zeus to save europa from the addressee's in the cozy little harbor because europe, one more sentence, europe cannot conquer the sea of that is the nation-state but if she drowns, canada and the united states will not flourish. amen. thank you. [applause] >> so, time now for our final debater, speaking against the motion, lord peter mandelson. sir, you have six minutes. [applause] >> thank yo

what candy said about deflecting attention to europe. the president has very little influence on job creation and less influence on what goes on in europe but the reality is this is 20 months of job creation for the president. this was going record that he was going to run on. all he needed was about 100,000 jobs a month between now and alaska to be able to say to republicans every job lost on my watch because of a recession i didn't create has been returned. now that actually is in jeopardy because, in part, of what is going on in europe. so now he has to come out there and say our mission was working, europe is messing things up for us. china and india to some degree are messing things up for us. he has to deflect some of the responsibility because he's been riding high on the idea, job creation the most important thing in this economy has been doing well. 20 months of job creation in the private-sector as opposed to the government sector which is actually more important. the president now has to find some pivot point to say we have be

but can today's optimism last now that there's hope for europe. suzanne pratt reports. >> reporter: european leaders have kicked the can down the road 18 times, holding 18 summits that resulted in little progress. this time, however, investors feel is different, with concrete steps being taken to avoid a financial meltdown. part of today's bounce was technical in nature, traders reversing bets that the summit would result in more failure. still, veteran floor trader art cashin said there's no question investors were caught off guard by the results of the 19th summit. >> the expectation level for this summit was so low going in that if they left without punching each other, we probably would have had a rally. to have something that was almost concrete turned into a big deal. >> reporter: it also turned into big gains for gold and for oil prices. traders in the energy pits are betting help for europe will remove a major drag on global economic growth. but investors dumped treasuries today, pushing the yield on the ten-year higher. with progress comi

and europe. we have never had the emerging markets slowing down at the same time the other two had problems. that is what we're facing. it is very scary. >> not 3 optimistic. you are watching "bbc world news america." piling on the pressure for chinese students. exam time is here and so is the stress of competing for few coveted spots. as we have been reporting, economies around the world are hurting. when to buy's property boom went bust, many investors got into trouble. katie watson reports on the serious consequences that some have been forced to face up to. >> i know that when. >> family chats after-school are an important part of the day for this mother. her children have given her great support center husband was sent to jail after being found guilty of bouncing checks, a criminal offense here. she, like many, came d toubai to take -- came to dubai to take advantage of the property boom. there have been dozens of foreign businessmen on hunger strike to put pressure on the government. many s

because of strong demand in europe, they're delaying the closing of their plant in europe. supposed to close in october. looks like it will stay open to the end of the year. stronger demand for solar panels in europe, stock up 18%. >> analyze this where we cast a somewhat skeptical eye on the analysts. here to break down the biggest calls. let's talk about the buy rating an urban outfitters and the differentiation of urban's brands and loyal customers. stock flat on the year. is now the time to buy it? they say yes. >> as the father of two evening daughters, i know the wind can change in fashion apparel quickly. that's not antidotal. lack of saturation leads to a long term. if it can trade at 28.10, looks like a strong to medium trade but only at the end of the day. >> maggie shops at urban outfitters. we'll find out. my wife used to like anthropology. >>> changing a buy on apple, and we believe. the next generation, mac pro with retinol display, means b better glass what do you think? >> people like better glass. i want other people to drive that price to 588 and feel comf

>> our problems cannot be attributed now to europe, our exposure to europe is limited. trade with europe has been growing and europe is an objectless son in the failure of a welfare state. >> if we should have europe going on its own, and maybe stop giving them bad advice. spain has 18%, and what's the advice. raise value added tax. income taxes in spain are among the highest in europe. capital gains taxes went up under the the socialist government and further under this government. let's give spain good advice. >> stuart: as a former european i could talk about this for hours. i haven't the time. thank you, everybody, when we come back our hits and misses wake up! that's good morning, veggie style. hmmm. fohalf the calories plus vgie nutrition. could've had a v8. >> time now for hits and misses of the week. you're first. >> stuart, a big hit to emanuel who this week is standing up to the chicago teacher's union. and the teachers union is annoyed because the mayor has basically said he's not going to agree to demand. and 20% pay raise in two years and lengthening of the

by these means, we seek to increase the safety of europe and all the world. but, we must remember a crucial fact. east and west do not mistrust each other because we're armed. we're armed because we mistrust each other. [ applause ] and our differences are not about weapons but about liberty. when president kennedy spoke at the city hall those 24 years ago, freedom was encircled. berlin was under siege. and today, despite all the pressures upon this city, berlin stands secure in its liberty and freedom itself is transforming the globe. in the philippines, in south and central america, democracy has been given a rebirth. throughout the pacific, free markets are working miracle after miracle of economic growth. in the industrialized nations, a technological revolution is taking place. a revolution marked by rapid, dramatic advances in computers and telecommunications. in europe, only one nation and those it controls refuse to join the community of freedom. yet, in this age of redoubled economic growth, of information and innovation, the soviet union faces a cho

the other is europe. and this should take europe off the table i think as a negative thing for the economy. for at least the rest of the year. >> i'd like to think that's true, that europe has passed -- that the worst is behind them. i don't believe that. look, erin, the problems with europe are not so much monetary. even in the banks, as bad as the problems are in the banks. the problem is they have a regulatory structure, a tax structure, that isn't competitive in global markets. nobody wants to start a business, open a factory. we had a piece in "the wall street journal" this week about how in some european countries they now have a policy if you get sick on your vacation, you get another week of vacation. there's not enough people working in europe. >> wow. >> great policy, right? >> a lot of americans are saying where do i move to get that? >> it is just symptomatic of a kind of culture in europe that cannot give up these entitlements that are driving the country down. >> it's interesting, before we

and europe prevent economic disaster? i'm john harwood sitting in tonight for gwen ifill on "washington week." >> i will priorityites efforts that strenten legal immigration and make it easier. we may not always agree but when i make a promise to you, i will keep it. >> your speaker from yesterday has a different view. in a speech he said that when he makes a promise to you, he'll keep it. well, he has promised to veto the dream act and we should take him at his word and i believe that would be a tragic mistake. john: dueling philosophies and dueling pitches to latino voters. did president obama's bold move settle the fight or convince hispanics that romney has a better plan m the ayes have it and a contempt order is ordered to the house. joongs a -- john: a showdown between house republicans and eric holder. and the countries of the euro zonal keep struggling to resolve their debt crisis. >> because of the crisis in europe and the softness you're seeing in growth outside europe that means that in the u.s. we're not growi

welcome back before the break we were talking about europe let's talk about responses to europe from u.s. presidential candidates or their proxies mitt romney's economic adviser recently wrote an op ed in a german newspaper applauding germany's austerity measures advising germany not to bail out greece and on the other side larry summers who worked for the obama administration was one of obama's advisors in that his presidency early on in response are not exactly in response but in similar timing in the washington post wrote his own op ed proposing of course the opposite a bailout and massive spending plan for europe so is this at the end of the day just a political election year strategy disguised as economic analysis and economic advice and what does that do for the presidential hopefuls we're going to talk about it also while we're on them we know that mitt romney is a little weird we know that maybe americans have a hard time relating to him for evidence just look at his saturday night live version of his sons let's watch that. well we connect with the younger voters are over thi

for europe for the u.s. to keep talking about chubby checker and twist and shout for europe the song i keep hearing is promises, promises. we never get the solution. they have the tools that could be used but they never actually use them so we'll have to wait and see on that. >> susie: we certainly will. hopefully you'll come back and talk to us more about it. thank you, randy. randall krozner. >> tom: our week-long focus on the federal reserve continues tomorrow, as we look at the differences between the goals of the federal reserve and the european central bank. >> susie: the spanish government said today it does not need a bailout, despite the rising cost of ensuring its i.o.u.'s. the nation's budget minister said spain has the support of its european partners, and european institutions. an independent audit of spain's financial system is due out tomorrow. many worry it will be a far worse than expected. earlier this month the euro-zone offered spain as much as $125 billion, to boost its battered banks. >

finally, let's go over to europe. we have a stationary low sitting over the british isles producing stormy weather. we have wind warnings in place in the southern portion of the uk. conditions will finally improve over the weekend. the associated front will move quickly over the western continent and head into central europe. we can see pink showing up. that means heavy rain will target parts of poland and austria in the next 24 hours. as for the highs, central europe, temperatures are on the warmer side. 24 in berlin and 27 degrees expected in vienna. out toward the east, looking mild in moscow with a high of 21 degrees and 23 in warsaw. here's your extended forecast. >>> our lead story this hour. japanese prime minister yoshihiko noda is making another push to restart a nuclear plant. he'll speak to the public later in the day. all of the country's0 reactors are now offline. noda will stress that the ohi plant in western japan is safe and he'll tell people that companies need it as a source of power. noda needs the

we face headwinds from europe. we have faced shocks last summer and again this sprig from oil pries shooting up, although, fortunately, now they've been receding. some of the mild weather that we had in parts of the country probably brought some work forward over the winter. >> reporter: we've tried a lot of tax cuts. we've tried big stimulus spending. at this point are, we kind of out of ammunition? >> first of all, i think what we've done has helped. we knew this would be a challenging recovery. given the over-borrowing that households faced, given the shock to confidence, the weak demands in our economy. there are more things congress can do right now that would strengthen the recovery and help job growth. the president is in minneapolis today talking about his checklist of ideas, commonsense ideas that would help strengthen this economy. >> reporter: polls show people are losing faith in the president's handling of the economy. what would you say to them to convince them that the president is up to the job? >>

europe would not have a problem. you can trace almost the price of bonds in germany and italy depending on the progress of a free-market guy who was a competition in the commission. you can trace the progress in tandem with getting his reform program through the italian parliament. what is the key of this? sort of a trick question. who was the sick man of europe when i first got there? germany. what did they do? they did the reforms. schroeder never benefited from it. this is not the first time president bush 41 cleaned up the banking system. president clinton had a great run. that is life. part of the reform was not adopted until january of 2005. within 18 months -- what angela merkel wanted from the rest of europe -- we can do this deregulation. a little welfare reform. relaxing their rooms on hiring and firing. if we can do that, you can do that. the price of the bonds go up. interest goes up when it is up on the notion that he will eliminate the requirements without court approval. this is one of the more liberal

you also have to have some inflation in europe. instead of spain having to cut its wages -- it is not through cuts in spanish wages. we will have a rise in german wages. all of this means a tremendous change in the german vision of what their policy will look like. instead of having price stability, they have to have something that is much more liberal. they have to have a party. >> inflation and more debt. is that a solution? >> i do not believe about the debt. i believe in writing down debt. i do not think there is a way to go forward without having some kind of political union. this is not just about germany being stingy. it is about not wanting to have an open wallet for the rest of europe in perpetuity. i am not saying what they are proposing is the end of things. i really think that the only way this is going to end is either europe starts to look like a real country -- and i mean france and germany part of the same country with a central government -- or it splits up. unless they start moving that way enthusiastically, i do

now while europe is the u.s. is the largest trading partner he pointed out there to detailing the threats posed from the trouble brewing across the atlantic but is the euro zone crisis also helping the u.s. perversely we'll explain finally from bunker timeshare plans to deflation two customers down under from m.f. global australia we'll hear from our viewers all around the world and respond in your feedback let's get to today's capital account. let's see what's new in the euro zone crisis saw good at a zero spain needs a bailout the country may ask for one as early as tomorrow now there are conflicting reports and comments coming from spanish officials some refuting that spain will ask for a bailout or way but come on trouble is a bruin and different estimates put the money needed for a spanish bank bailout recapitalization whatever you want to call it from twenty seven billion to one hundred billion euros overnight the head of the eurozone finance ministers commented on it said spain will get the green light tak