tv The War Room With Jennifer Granholm Current April 17, 2012 6:00pm-7:00pm PDT
ustice lobby. viewer for sister hershey's air delight. accountant >> glad >> the war message created by a current tv viewer for hershey's air delight. has paul ryan responded to your ledr letter? >> he continues to >>mommy, you're so smart, i feel that his budget is based upon like you know everything. catholic principles and even after we >>you can ask me anything, anytime honey. >>mom, how do you say "hello" in grievous errors in the fact that it's
spanish? >>hola. >>hey mommy, how many miles are hasn't responded to us at >>238,854. >> as many catholics know who watch this show, the >>hey mom, are ninjas still a chapter of big problem? >>no, honey. says whatsoever you do unto the least of >>ha! >>hey mom, how do they get the me. i take it your group bubbles into the the hershey's air delight? >>i don't know, but it's paul delicious. >>[both laugh] for maybe >>hershey's air delight milk chocolate. rather than the a lighter, airier, meltier serving hershey's happiness. >> to know what his purposes are. >> sure? >> the man may be sincere. it's hard to believe in the light of the political rhetoric but i do believe what is abundantly clear is that in our nation we value greatly that we all invest in our society, that we meet jesus's command to take care of the least and we also believe strongly in fairness, that those who have benefitted the most from our society should
contrib bacoti accountant but the most innine accountant reinvesting back into that society and caring for the least. >> that's the positive role of government. what message created by a current tv that it's only individualism that viewer for hershey's air delight. teaching the fact that jesus called us to the community, that we care for one another. and that's >>mommy, you're so smart, i feel totally wrong. >> it like you know everything. a good >>you can ask me anything, i was so stunned anytime honey. >>mom, how do you say "hello" in spanish? con sol at >>hola. >>hey mommy, how many miles are accountant there to the moon? letters >>238,854. letter i am just going >>hey mom, are ninjas still a big problem? from >>no, honey. accountant >>ha! >>hey mom, how do they get the bubbles into the hershey's air delight? tough on the bishops for being accountant being accountant accountant being focused. i am giving the bishops applause
on that. so you assume you are happy to see ainited -- a united focus of catholic on this issue. >> bishop blair and his co-chair had sent a letter to congressman ryan before he issued his budget so that while a new release was released t so when congressman ryan says he is preaching it t he was informed this was not true. he continues to persist in it. i am so grateful that the institution of the church has spoken out against it. tas great relief. >> yeah. absolutely. >> so great. finally, finally. >> i am with you, sister. preach it. let me ask you, though: how do you respond to play the devil's
advocate, if you will, how do you respond to those who would say, well, we have a tough budget. how can we afford to be all things to all people? and in fact, aren't we really just, by pulling those supports away, empowering poor people to stand on their own feet? >> well i think first of all, we say, yes, we do have a serious fiscal situation that we have to be responsible about and we believe the responsible way forward is to address the causes of what got us into this fiscal problem. what got us into this fiscal problem was two wars we put on a credit card, afghanistan and iraq and at the same time, we cut taxes especially for the upper class, and that those three items, afghanistan >> iran and cutting taxes were what totally created this deficit. >> that's where the problem started. and then the fact is that in our current economy, we all know how vulnerable this economy is and
all of us know people who are unemployed striving daily to get work but in a weak economy we need a robust safety net because the whole idea of our free market society is that yes, everybody has a chance to be an entrepreneur, but we know there are some casualties in the process and that our society is stronger as long as we are all together in supporting each other and in making sure those who are vulnerable get the chance, get the hand up and are not made dependents but are encouraged to grow and be -- to survive in times that are difficult. if we don't do that, who are we as a nation? we certainly are not we the people of the constitution. >> i am going to let that be the last word from you. >> that's a beautiful think. thank you so much for fighting the good fight on behalf of the voiceless. >> that's sister simone campbell with network, a national catholic social justice lobby. coming up nothing little about big oil.
pain at the pump starts with pigs at the trough. we have the latest on the crack downtown on oil speculators plus for "occupy," there was "uncut." a new documentary sheds light on the origins of the 99%. later brett erlich looks at the not so great dates in congressional history. >> coming up will the show end, or will i filibuster it and talk forever and ever? probably not. but don't go away.
♪ >> we have been talking about how the little guy is fighting back, fighting back against alec, fighting back against paul ryan's budget and now we are going to turn to new efforts to rein in the big guys the super powerful wall street banks. today, the president called for more regulation on oil speculators, the wall street
middle men who buy and sell oil futures without ever owning a single barrel. take a license. >> we can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher only to flip the oil for a quick profit. >> the oil speculators have been in regulators' sites for years. the dot frank bill passed after the 2008 economic collapse limits how much of the oil market they can control supposedly but some democrats think that more needs to be done. joseph kennedy, ii the former congressman from massachusetts whoet an op-ed last week advocating a complete ban on oil speculators. he said it could drive down the price of oil by as much as 40% and the price of gasoline by as much as a dollar a gallon. joining me to talk about curbing speculateors and wall street and fixing our economic problems
overall is phil angeledis, the chair of this fantastic crisis inquiry commission. phil, welcome back into the war room. >> good to be here. >> glad to have you here so let's just get right to the oil speculation part because you know so much about this: would more regulation on them actually curb oil prices? >> yes. let me tell you what this is. this is endemic of a much bigger problem which is that wall street has become more of a casino than a place that deploys capital. in the oil sector this has been going on quite some time. yourcally colleague, carl levin raised this issue in 2006, did a very good investigation that showed that the price of a barrel of oil was being raised by 20 to $25. >> explain the mechanics of how that works for people who are not trading. why is the inflation happening of the price of oil because of
trading? >> it's any time you get a lot of speculation in a commodity particularly when the people speculating don't really have to put any money down. they don't have a typical requirements of markin. so they are -- margin. so they are betting with other people's money. >> other people's money. >> poor into that marketplace and you now have a phenomenon, for example, eight big investment banks doing about 30% of the trading in the oil arena, about 90% of the trading that goes on is not for legitimate users, you know. >> they are not holding any of these barrels? >> or airline needs to hedge it t it's speculative activity. we have seen it time and time again where commodities, with mortgage securities. it begins to create volume atilt. >> here you looked at causes of our financial cries and so much had to do with deregulation. is this another element of de deregulation? >> yes, and there is a backdrop here that's political, also. some of the doors of speculation
were begun to be shut by the dodd frank act but the republicans in the house have every opportunity they have had to try to slice the budget the come commodityies futures trading commission that regulates derivatives. >> and oil. >> three years out or four years out almost from the financial crisis and we still don't have all of these comemodityies like oil traded on transparent exchanges. >> so the people -- i mean the dodd -- frank bill put in place what the commodities future trading commission was supposed to do. >> correct. >> they haven't been able to adopt all of the regulations surrounding dodd-frank. hence, there hasn't been any action on this. but the president called on congress to act today. >> yes, he called on them to put up money so there would be more cops on the beat. it's actually the same phrase that carl levin used in 2006, which shows you the power of these financial interests. and what really needs to happen is, first of all, we need to bring this trading into the
light of day. speculators need to be dramatically constrained so we have a market of real users and that's what needs to happen frankly not just in oil, but i think across the board on wall street because if you look at the big investment banks, you know, they used to make their money by lending providing capital. you know, before the big financial crisis which is the primary cause of our fiscal problems in washington, the lion's share of our deficit, these financial houses were making 60, 70% of their profits through this kind of speculative trading. unhealthy for our economy and ultimately crashed our economy such that we now have a trillion dollar plus annual federal deficits, almost wholly attributable not just to the two wars, the massive tax cuts but the economic downturn. >> so you made a bunch of recommendations in this. are you frustrate that not all of these recommendations have been taken up? >> i think we are still in verigrave danger of a financial
system that's not under control. >> you think it's going to happen again? >> well, europe, the financial crisis never really ended. europe is in a very precarious position now. we don't know, for example, which american banks are exposed to european debt because these very derivatives, the same kind of commodities of oil are unregulated. >> yu isn't it happening? >> let me just say i as you know, have been in politics like you. >> yes. i was stunned when i went to washington to head this commission. at the raw crude power that the financial industry has in our nation's capital and in our political realm. in the run-up to the crisis, they spent about $2,000,000,000 on lobbying. they are an enormous force. now that they have their allies in the house of representative. at every turn, they are trying to fight. >> they are trying to curb the speculation. the big wall street firms have brought suit to the prevent it from happening.
they are the ones who are lining the pockets of those in congress and preventing another crisis or i should say facilitating potentially another crisis from happening. have you know shame? i mean, really, it's just so utterly frustrating. >> but on our side frankly, we need to be stronger and we need to be tougher because not much has changed on wall street. we need justice in the wake of this crisis. that means real. >> in what. >> real investigations and prosecution of wrongdoing. >> didn't the attorney againgeneral get changed with doing that? >> candidly the obama administration nights to do more. it's four years almost after the collapse of bear sturns and layman brothers and a lot of the things being enacted by congress are being gloccedblocked. >> do we need a greater separation between conventional and investment banks? >> absolutely. when i undertook this job, here
is what i saw. i thought i was walking into my local community bank. i opened the door and i looked in and what i saw instead was a casino floor as big as new york new york. it's enormously unhelpful for the american economy. >> hang on. you are not going away. we have more to cover. phil is going to make our endhair stand in on end some more. follow us on twitter and like us on facebook and connect with us online. you can do all of that and more at current.com/thewarroom. we will be right back. >>the bottom line is we need an amendment. >>now it's your turn. connect with "the war room" jennifer granholm. >>it's a call to arms. make your voice heard.
me and stephanie miller in the morning what a way to start the day. >> you are watching the war room where it's david versus goliath. joining me is phil angeledis and the chair of the financial crisis inquiry commission. there was another story today that was sort of the david and goliath, the past couple of weeks actually where the president was acting for tax fairness in the closing of the buffett loophole if you will. do you think our tax code is an example of giving stuff away to the big spenders, the casino? >> absolutely. and in many ways, for example, on wall street there is this thing called carried interest which you can be like every other worker but you are on wall street, you are at a hedge fund
you pay capital gains. >> making 400 million a year. >> not occurred income. so the code is rife with that if you look at tax codes around the country, $15,000,000,000, many for the wealthiest and large corporations. >> in california? >> in california, alone. it's really quite stunning, and take a look at where we have been. there was a great article in "the new york times" about a week ago simon johnson has an article called: how the big banks endangered medicare. it points out that how did we end up with an enormous deficit today? obviously, two unpaid for wars massive tax cuts but $7.5 trillion of our national debt, about half our national debt, is attributable to the collapse on wall street that sent our economy into a tailspin. who will pay the price for that? what paul ryan would have happen is that 4 million seniors and disabled would pay $6,000 more a
year in prescription drug costs, 14 million families would lose medicaid under his plan and we see this kind of shifting of responsibility and accountability to the people who -- >> need the support most. >> and frankly no correlation, no penalty no consequence for those who drove this crisis. >> right. those who drove this crisis and those who need the help the most have nobody speaking for them. >> for people who watch and for independents and for conservatives, this issue of our looming fiscal deficit is very well real and the question is: who sacrifices in order to be able to resolve that and at what point does that sacrifice occur? paul ryan would have it occur today and he would have the vulnerable be the ones to pay for it. the president has talked about making sure we solve the fiscal crisis long-term but having it shared appropriately. obviously that's where you are, too. >> i will tell you, i am even
more concerned about this austerity doctorine haw hear from romney, from ryan and from the conservatives all over europe. >> all over rope. >> if you read your history, you know austerities plunked the depression deeper. 21% unemployment in greece. ireland, the poster child back up to 15% unemployment. it is a disaster. >> but on the other hand, everybody understands that long-term, the kind of deficits cannot continue. so there has to be -- i mean politically -- i ask you to put on your political hat. the president and the democrats have to acknowledge that long-term that has to be addressed while saying short-term it would be a disaster. >> more than that. the way you start addressing it long-term is rebuild, clean energy and infrastructure and get the engine going again. >> investments in education and human capital. >> human capital, get the engine going again and, yes, you deal
with the long-term problems that we have as a demographics of this country change. but let's not let, frankly, the right and the big corporations use the excuse of a financial crisis that they caused to now devastate a whole set of social insurance programs that you need most in these kind of tough times. >> i think everybody should go to our website. we are going to have a link to the fiscal crisis inquiry report that phil angeledis, the former california state treasurer and the chair of the financial crisis commission and an awesome educator, telling us like it is. so thank you very much. >> good to be here. >> up next in one door and out the other, taxes and pork barrel spending, the highlight of a busy day on the campaign front. we will get to that and more in the war room and it's only on current tv. we will not settle for easy answers. (vo) the former governor of ny eliot spitzer, joins the new news network.
>> there is a belief that it is the province of shady busimen and rich folks who set up offshore bank accounts and cheat on their taxes but largely people who we have never heard of. that belief is false. basically every major technologico company every major drug maker in the u.s. relies on the off-shore world for a very significant portion of its profits. >> that's a clip from the new documentary film, "we're not broke." the film reveals how u.s. corporations have avoided paying billions of dollars in taxes by
exploiting loopholes in moving money offshore profits off offshore. it's another example of potentially the little guy fighting back the film makers against big and powerful interests. so joining me from washington, d.c. are the producers of that film victoria bruce and karen hayes. thank you for joining us inside the war room. let me start with karin. why did you feel it was important to make this film? it's a departure from films that you have made together before. >> it certainly is. our last film dealt with hostages in colombia as one of the, you know. what happened was our executive producer came to us, and he actually brought the topic to us and he approached us and said would you like to do a story, a film about offshore tax havens? at that time, we really had never ventured into that realm. but the more we learned about the story and what was going on and how that was affecting the global economy and the u.s. economy and specifically for our film as well, it's something we saw that was a story that needed
to be told. >> i am going to play one more sound byte one more clip from the movie and victoria, i have a question for you after that. take a license. >> we have about $12,000,000,000 overseas. >> like other global companies, we favor repatriation of our foreign cash back to the united states where it can do good. >> i want to bring that money back. >> how much does your money have overseas that could be brought back. >> almost $40,000,000,000. >> so u.s. corporations have about a trillion and a half in dollars overseas, and some have said that if you just lower that tax rate to 5% rather than the 35% tax rate that that would cause the money to repatriate to domcome back and create jobs. so i am curious, victoria, from your perspective, is that going to work? >> well, like our film shows, actually, it is not going to work. we have this experiment. we have actually run this experiment in 2004, same
corporations. there are even more lobbying for it today but the same corporations were say, we are going to create jobs. this was ford, citi-group pfizer. pfizer was a big one. they said, you know, we want to bring back this money. we are the job creators. we are going to create jobs. they brought in, in 2004 was $300 billion. our country lost $100,000,000,000 in revenue and as soon as the money came back every one of those corporations laid off thousands of employees. so it was just a scam to get the money back in the pockets of the shareholders. this is the type of thing they are lobbying for. it's just that clip you just played just makes my blood boil because that is money that they owe taxes on. >> right. that's money that could be invested here for our citizens and for our education system and our viewers who would want to know: what can they do about it? is something being proposed in congress that they might be able to contact their senators or representatives about?
>> well, one thing that's going on right now is senator carl levin has introduced the cut tax loopholes bill and that's something that would take a dent at closing some of these loopholes and it's a first step in the larger picture of beginning to close a lot of the loopholes that are allowing corporations to do these things legally. >> and there's a way that we provide on our website which is we are not broke movie.com. we have linked right to one of the petitions basically to get your senator to back this. you know, when the buffet rule didn't pass, it's so obvious there is so much corporate money in politics that, you know, we can say, oh, you know rich courses shouldn't have to pay taxes. it's ridiculous. >> we are going to link to that website at current.com so that viewers who are watching here who want to know what the call to action is that we can make sure we support this effort and i encourage people to watch the documentary as well. thank you so much, both of you
for joining us and for doing this really important work. coming up we are brett erlich is going to be with us. his unqualified lecture series kicks off with a look at the history of the filibuster. you are watching the war room only on current tv. ♪ now let's hear yours. >>the war room needs your help. >>the only online forum with a direct line to jennifer granholm. >>our goal is to bring you behind the scenes with access to stories that you've never seen before. >>politicallydirect.com join the debate now.