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tv   Americas News Headquarters  FOX News  June 17, 2012 10:00am-10:30am EDT

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result and the celebration that followed, could be the thing that keeps greece in the european union as a full functional member and here's why. a lot of young greeks, stayed up really, really late last night partying to mark their team's big win and a lot of those folks are more likely to vote for the left leaning syriza party, that wants to cancel the bailout and all the harsh austerity measures that come along with it and, most greeks have to vote at ballot boxes in the area where they were born instead of where they live now and, the more conservative new democracy party might have a leg up because today, like the day after the super bowl in greece, it might be tough to get a lot of young, potentially hung over citizens to drive a long way to vote but if that left-leaning syriza party does well today it could trigger a financial earthquake in europe, because, the bailout, if it is candlesled the imf said they will cut greece off from funding. and if greece is cut off they'll likely ditch the euro for the
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old currency, the drachma and if that happens, one drachma will equal about 1/2 of 1 euro and so, as the greeks try to prank their way out of debt, because they'd be shut out of international lending markets, inflation would skyrocket as high as 35% the first year and there is nothing in the charter that lays out how a member would go about ditching the euro. there are a lot of moving parts and we'll know which way they turn very soon, eric, the first results are expected today. at about 2:30 eastern time, here in the states. >> eric: all right, peter, who knew a soccer game or match could potentially impact a global financial situation s thank you. >> reporter: all tied together. yes. >> jamie: a big deal there. let's get more on the potential impact on global markets now, from john fund, the national affairs columnist for ""the national review."" good morning. >> thank you. >> jamie: it is a big morning and a lot of people who work at the financial industry are at work today, on sunday, like we are, keeping an eye on things and preparing themselves for the
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worst-case scenario. what is that scenario? >> well, the worst-case scenario would be a greek government that comes in and repute -- repudiates the international agreements, starting with italy and spain and would, perhaps, launch a domino effect in which increasingly we have a financial crisis and, something similar to that happened in the early 1930s, with bank failures in austria and germany. i don't think that that is going to happen. but it is wise for these people to be at their desks on sunday, making sure that it doesn't happen, or, at least monitoring it. >> jamie: was it predictable? >> well it is predictable that the euro was going to be in trouble because it was a political venture, not an economic venture and it was designed to grind all of europe together in a european super state to compete with the u.s. but it still left the greeks and all of the other countries with their own fiscal policies and frankly they drove their economies into the ditch and now are having to pay the price.
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i was in greece last month, i spoke at the university of thesolonica and, it is a sad story, they were betrayed by politicians of all parties and what they face today, the same parties that got them into the mess are basically asking them for their votes today. >> jamie: but their problem could, easily, become our problem, john and there is such a concern about contagion and it will not just affect greece. the question i have is, if they move from the euro and the value of the euro decreases, does the value of the dollar increase? >> let's make it clear. i don't think the contagion will happen, because i believe that any party that is elected today is going to have to govern in coalition with other parties and i don't think there will be a consensus of leaving the euro. i think the europeans will still maintain the bailout terms but loosen them a little bit and, remember, the real problem here is not a banking run, i think that is maybe a 5% chance, the
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real problem is, i think we are seeing europe is in stagnation for the next 5 to 10 years and that does affect us because it reduces our exports, and, our dollar may actually go up in value, depending if we get our fiscal house en ordin order buts the problem, because we're trying to avoid the pain of trying to pay for the mistakes we are basically sentencing europe and indirectly ourselves to a long period of economic stag nation which makes our presidential election this november more important. >> jamie: as if it wasn't important enough. >> if we don't change the policies, we will not improve matters. >> jamie: and is there an opportunity here where the dollar is concerned? what should the financial institutions that are here that have money there, be doing? because i understand there is light of u.s. dollars over there. that need to be protected. >> there is going to be no sudden collapse of the euro. it is that simple. there will be a gradual depreciation as people lose confidence in the euro, but none of the european countries,
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especially germany have an incentive to have it collapse and they'll, if necessary pour in their own taxpayer resources in order to prop it up to some extent and that probably will mean lower growth in the future. i don't see any real chance of a euro collapse. i do think the dollar will gradually appreciate and the problem is europe will have a slower economy which means we don't have as much to sell. >> jamie: it doesn't look like the crowds are hoarding to the voter polls, which we're looking at now, a picture for our folks from athens. the imf, what role should they be playing in this? are they doing what they are supposed to be doing? >> reporter: well, they are part of the international financial organization that put up $170 billion for the greeks to prop up their currency and they obviously are saying you have to stick with the terms of the agreement that you signed with us. but i believe they probably will loosen that a little bit and christine la gagaard dead we cat let greece go down, because, clearly it's not about greece, a small country but spain and
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italy which are next in line. >> jamie: and teetering, as well, john fun, thank you so much, much more on greece throughout the hour. thank you. >> eric: jamie, from greece to iran. the u.s. and five powers meeting in moscow tomorrow for yet another round of talks aimed at trying to stop iran from building a potential nuclear bomb and the latest negotiations come weeks before the sanctions kick in, an oil embargo go from the european union and with iran in turmoil and the currency lost 50% of its value, prices sky rocked 40%, will more economic sanctions finally force tehran to give into western demands or will the iranians continue their brazen abject defiance? john bolton, a former ambassador to the u.n. and a fox news contributor who joins us every sunday at this time. good morning, ambassador. >> good morning, eric, glad to be with you. >> eric: there were zillions of
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meetings in vienna and istanbul and tomorrow, moscow, why would we expect any different result from the meetings that start tomorrow than before? >> well, i think it is very unlikely there will be a different result. we have seen a lot of coordination in the past few weeks, between russia and iran. every prospect that iran will try to insist that for it to do anything, the europeans and the united states have to back off their new economic sanctions. and i think given the potential economic turmoil in europe, there is a powerful incentive for the europeans to do something to find some kind of deal with iran, i'm worried the obama administration will agree to that. but, i would be extremely surprised if there is any progress at all unless the west makes a compromise. >> eric: how does what is happening today in greece, what is also happening in spain and italy in terms of their financial system, how does that impact the negotiations with tehran? >> well, these european
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countries although they have reduced reliance on iranian oil have been relatively large importers in the past and, given the turmoil, if there is more tension in global oil markets and prices rise again to above $100 a barrel, where they have been until recently, obviously, increasing the cost of energy anywhere but, particularly, in europe, is a break on economic growth which they desperately need. i have a feeling in any event that the sanctions will be winked and nod the at as the iranians being a creative, entrepreneurial sort of country find ways to sevade the sanctios and oil will come in from country x. >> eric: look at the list, the administration issued oil exemptions from countries they say have or promised to reduce oil and that is a pretty impressive list from india to belgium and britain and fans and germany, there is greece, and italy as well as japan and spain but, look at this number:
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china. 22% of iran's oil is going to china. and there are no signs they are turning the spigot off. what does that mean? >> well, they are still in discussion, the u.s. is still in discussion with china about whether they'll grant a waiver. i think it is almost inevitable that china will not be brought under these sanctions. the waivers are for six months to take us just past the american elections in november, how convenient and that means the american sanction will not kick in despite the reductions in purchases of iranian oil, at least in official statistics. our sanctions will not take effect. now, when you combine that with the weakening of europe's resolve because of its financial difficulties, i think iran is in a pretty strong bargaining position for these moscow talks which means they will be intransigent. >> eric: you talk about 6 months at a time, is it some time of a
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shell game. >> in part, remember the obama administration opposed these sanctions which were legislated by congress and they are very afraid that it will jeopardize their long-sought goal of getting a negotiated solution to iran's nuclear weapons program. now, i think that is fancifcifu but the iranians play on that concern of the obama administration which means if the europeans are feeling weak at the knee i'm afraid the obama administration may go along with them. >> eric: and we find out today, there may be one bright spot, ambassador, we will not have mahmoud ahmadinejad to kick around any more. the iranian president, saying this weekend, he's going to retire from politics, next year when his two terms are up. what is your reaction? >> right, well, term limits came to iran sometime back, so he couldn't succeed himself and i think he recognizes that once he leaves office his opposition as the supreme leader left him in a very difficult position. but i wouldn't take this as a sign of good news, because his
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likely successor will be more hard-line, more attuned to the revolutionary guards and supreme leader khomeini. >> eric: that is not good news. >> is not at all. >> dave: ambassador john bolton, good to see you, as we do every sunday. >> jamie: thank you, and next hour i'll talk to former israeli ambassador to the united nations, dan gillerman and we'll get his take on the upcoming talks and whether sanctions are until still the way to go and meanwhile we check in on egypt. another key election unfolding there. egyptians are going to the polls, to choose hosni mubarak's successor. but, many voters say they just aren't happy with the options they have. leland vittert is streaming live from cairo. >> reporter: hi, jamie. the arabic saying for that situation translates to, i have two bitter choices and both of them are not so good. here's what you have, you have ahmed shafiq, the former hosni
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mubarak prime minister up against the leader of the muslim brotherhood and most aren't excited about someone from the old regime coming in and a lot of folks don't want someone from the muslim brotherhood, as many egyptians, who are secular, fear that he'll create an islamic state and it is leading to interesting things at the polls. fathers brought sons to vote in egypt's first attempt at democracy. >> i bring my son, to know how to bring his voice to who he wants. >> reporter: the idea of a free and fair election has taken a lot of work here in egypt. the privacy screens where people vote still have the shipping labels on them and they've had to figure out how to design the ballots. look, right higher, illiteracy is so high they've put pictures of each candidate to issue the party symbol and, their name and 40% of women can't read or write
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and the other thing, they had to figure out how to design ballot boxes. it didn't matter who people voted for before and now they have to figure out how to count all of these and announce the results. >> before, we were standing at the tip of the president's finger and, now he's on our finger. >> reporter: in poor neighborhoods, the muslim brotherhood, a powerful political machine turned out dozens of fully veiled women to line up under the hot june sun, a vast contrast to cairo's wealthier neighborhoods, where voter turnout seemed low. at best. you walk in for the first time ever and 18 years old and voted. who did you vote for? >> shafiq. >> reporter: how did it make you feel? >> guilty? i don't know, really. i mean... the less from two worst choices. >> reporter: and, that is not how a lot of the young revolutionaries, many of whom spent weeks in tahrir square
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behind me wanted to feel coming out of the election. the polls close in four or five hours, this is an inexact science here, in egypt and they'll begin counting the votes and we expect results sometime the middle of the week but if you look at how things are breaking down now, 50% of the egyptian population will probably be very unhappy with their results and as we have seen when egyptians are now unhappy, they return to the streets in protest. back to you. >> jamie: you have shown us all of that so vividly, thanks so much, great reporting. >> eric: back at home we have an extreme weather alert in colorado, where powerful winds are fanning flames from a deadly wildfire in fort collins but authorities say it is now 45% contained. that fire was sparked by lightning, just over a week ago. and, it has been raging ever since, flames have so far scorched at least 85 square miles, and one person, so far, has been killed. at least 181 homes have been
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destroyed. that is the largest number of homes destroyed in a wildfire in the state's history. >> jamie: more than a year after a devastating tsunami in japan, evidence of the deadly day, still washing up. thousands of miles away, on our shores. we'll show you where and what they have discovered. >> eric: and do you like to spray tan? it is billed as a safer alternative to baking in one of those tanning beds but now there is a new stunning report and warning you will not want to miss about spray tans, the doctors will be here, on "sunday house call," to explain it all to us, in 14 minutes. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios what ?
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>> jamie: more debris from the japan's tsunami, are turning up again on the west coast, a fishing boat washed up on puget sound, a few feet from the beach and attracted a lot of attention. well, there is trash and other wreckage that had been spotted in alaska, oregon and california. oceanographers say more debris is headed towards the u.s. but most will get caught in ocean currents and never make to it shore. >> eric: national security leaks causing lots of heartburn in washington, critics suggesting
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the obama administration intentionally leaked the information to try and beef up the president's national security credentials, this morning on fox news sunday chris wallace questioned the president's senior advisor, david plouffe, about the controversial allegations that have point the finger directly at the white house. >> these are the folks who waged just a relentless and effective effort against al qaeda and its leadership and decimated most of the top leadership including bin laden and the national security information is so critical for a president and the administration making the right decisions and, no one takes it more seriously than the president. >> it is a yes or no question, did the president declassify this information. >> of course he didn't. >> he did not. >> no. >> okay. serving but the chairman of the homeland security committee, joseph lieberman told chris a special investigation is needed. >> frankly, i think attorney general holder would do the administration and himself a
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favor if he appointed special counsel in this case and would remove any appearance, the administration was trying to block a full scale investigation and protect anybody in the administration who may have leaked. >> eric: joining us now is the anchor of fox news sunday, chris wallace. good morning. >> good morning, eric. >> eric: these are quite serious charges and could lead to a political power keg. what is the administration's view and what did david plouffe tell you? >> it is interesting, i had to go at him 3-4 times, and the president used a careful phrase, saying we'd never disclose classified information but the president can declassify any information unilaterally and so i asked did the president or a top official declassify it and he said no, they did not but i asked him, like george bush in the plame case, are you calling on every member of the administration who knows anything about this to come forward and he wouldn't go there and i asked would the pit sit for an interrogation as bush did
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in the plame case and he would not go there and he said, despite the fact that obama called for a special prosecutor in the jack abramoff case, he said no we don't want a special prosecutor here and i think the two u.s. attorneys appointed by attorney general holder are sufficient as you heard, and this is news, first time that any nonrepublican has said this, joe lieberman said he thinks they need a special counsel just to remove any doubts about independence and probity of the investigation. >> eric: how significant do you think is lieberman's call. >> well, look, he's kind of -- he's an independent, not a democrat. i think it's not dianne feinstein, for instance, the chairman of the senate intelligence committee calling for it but it is the first nonpartisan step, the first person across party lines to call for it and keeps the story alive. and i don't think the story is going away and we had not only lieberman but mike heyden,
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former cia director and they said the leaks are damaging and go to sources and methods of our intelligence operations and all the information about our cyber war fare against iran invites retaliation by iran and i don't think this is going away. >> eric: it is a shocking list. chris you are a venerable washington reporter many, many years, where did they get the stuff from, a birdie flying around lafayette park and lands in the reporter's office. >> obviously it came from people and there are quotes in some stories about members of the president's national security team in meetings with him in the situation room. that is a very limb groited gro people and either they or people they told had to know about it and look, there are always leaks and what struck a lot of people was the drum roll of leaks, two huge front page stories, one about the president and the kill list of terror suspects for drone strikes and the cyber war fare, also another story about the fact that we had an agent who had penetrated al qaeda in
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yemen and foiled a bomb plot. it is the succession of details on highly classified operations that have gotten people's attention here in washington. >> eric: yes. and it is not going away, chris, always good to see you, looking forward to it. thank you so much. >> thank you so much. >> eric: hear more of his interview with senior advisor david plouffe and tune into fox news sunday later today and they also touch on the topics including the president's executive order blocking deportation of some young illegal immigrant and, he sits down with joseph lieberman and general michael hayden, on the fox news or check your local fox tv station where you live. >> jamie: and the doctors will join us for "sunday house call" and they'll talk about cat scans that can detect brain injuries in children but they can also cause illness, we want you to know about, "sunday house call" right after the break. and crowd cheering
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♪ >> jamie: grab your coffee, you are about to get healthier, we have "sunday house call" and joining us dr. samadi, the vice chairman of the department of urology, chief of robotics at the mt. sinai medical center. >> eric: and dr. marc siegel, a doctor at langone smell center and author of "the inner pulse". >> happy father's day to you. >> eric: thank you to you and to all the dads out there. we begin with a shocker that came out this week, considered pretty safe, the tanning booth, spray tans and a new report shows spraying on the golds en glow, well, they say it may not be risk-free after all, doctor samadi, it is supposed to be a safe al

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