tv [untitled] May 9, 2012 7:30pm-8:00pm EDT
the capital account is coming up next and i'll see you right back here in a half hour. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. this is your headlines for may ninth two thousand and twelve it's europe day happy europe day at a time when many of the political parties are gaining steam and multiple countries are those who want less europe or want to reject it altogether we'll speak to euro skeptic a member of european parliament leader of the u.k. independence party nigel farage he's making headlines after his party recently saw
it the best ever local election result and he told european parliament today the e.u. is done take a listen. to the titanic has now hit the iceberg it is the european unity zero eight gold it. and on that note is greece the poster child for what happens when the price mechanism of democracy which has been suppressed by tech not prissy finally unleashed is itself or will technocrats bureaucrat central bankers and big money succeed in manipulating it on a much lighter note you may have seen celebrity ventures like this. russell simmons successful entrepreneur joel interest he thinks everyone should be financially empowered sure he developed a rush card. a prepaid debit card is this the kind of quote unquote innovation that too big to fail banks are flocking to now to pass on the cost of regulations right
back to consumers we'll talk about it let's get to today's capital account. so as you know if you've been watching this show for several months since the show began we've interviewed u.k. and european parliament politician nigel farah a number of times about the crisis in europe he's talked about the lack of democracy in europe the rise of tech nakor sea and predicted a country like greece was headed toward some kind of revolution three years though since the early one nine hundred ninety s. when pharaoh's was a founding member of the u.k. independence party he has been a skeptic pushing for the u.k.
to pull out of the e.u. altogether for years he was a lone voice in european parliament calling the eurozone project a disaster and people laughed at him now he says not so many people are laughing and the numbers support that fair raj's party did the best it's ever done in recent u.k. local elections seeing a major rise in support and what we've seen in greece looks akin to some kind of revolt against incumbent mainstream politicians at least at the polls with an increase support of french parties opposed to. austerity now this is increased the prospects that a real government won't be able to form at all and greece will be sent back to elections which we've talked about all week fair raj in a speech to european parliament today talked about his view of what could possibly be a much more dire consequence. in greece what we still last sunday was rather reminiscent of the german election of nineteen thirty two we saw the
status quo sense a collapse of the extremes of right and left rise you know this project could even cause the rebirth of national socialism in europe we are so bold statement we asked him about it and needless to say that aside greece has become the poster child for the e.u.'s political and fiscal medicine but the recent election results and the subsequent rhetoric from new political leaders would seem to indicate the patient is finally spitting up the so-called cure we'll talk to nigel farage today again he's a leader of the u.k. independence party fresh off of a europe days beach and european parliament where he is also an n.d.p. i asked if he thinks this is an important turning point for a country like greece and for the e.u. or if he thinks euro kratz in brussels will just find another way some way working alongside their viceroys and deficit countries to keep greece under their thumb
here's what he said. but a democratic rebellion has begun we saw last year in finland a small and do your own policy getting twenty percent of the vote but it's spreading southwards now what you saw in greece on sunday was truly extraordinary because it's not a forty five policy it has been done by a conservative policy and a socialist policy those two policies that have run the country since the war were reduced to less than a foot of the vote what we saw with voters opting for the extremes of right and left that in some cases very extremes of right and left i want to do something i was reminded of the german election of the audience thirty two when the communists have a national socialists had fifty one percent between them now there is no prospects of a government being formed to greece there will be another election in june a my money says that the that the more extreme passes will do even better second so it doesn't matter what i do the buckle says it doesn't matter what the commission say people are rebelling they do not want to be part of the euro zone they do not
want grinding austerity they g.d.p. these are declining hugely ok i want to get into a number of the things you just touched upon first i want to put this a little bit in an economic terms because we often talk about interest rates on this show because we believe that they are one of the most basic signals in a market economy yet they are constantly manipulated by policy at our various central banks and the us and europe all over the results are always a distortion of the free market price mechanism and it seems that the same has been holding true with respect to democracy and europe the price mechanism of the electoral process of the vote has increasingly been dominated by technocrats or placed in the hands of technocrats who in the case of greece are also not coincidentally central bankers could we say that the greek elections which you say are a rebellion or are the equivalent of market forces overtaking the price fixing of
democracy. yeah i would agree we don't forget that just ten months ago the elected prime minister of greece mr pattern suggested there should be a referendum in greece to decide whether they stated or left the euro right now so the billy boy's in brussels that was like blasphemy and amazing isn't it that elected prime minister was removed by the european commission of my old friend. they put a puppet government in place is it easy any wonder that the peoples of greece are rebelling so then you know we're hearing already mr ferris reports the eurozone officials are debating delaying or withholding the bailout money that is due to greece on thursday because of the political turmoil does this mean that these threats are becoming more and more insignificant. my guess is that the short term bailout money will be provided by the of stations in brussels
listen you've got to understand one thing i'm angela merkel last november and i said to the chancellor wouldn't it be better for the people of greece to leave the euro get the drachma back i would it be kind for your taxpayers who've already spent twenty years paying for the reintegration of eastern germany into western germany you know let's call it quits let's say the whole thing's been a terrible mistake let's divorce the two countries economically and she said but mr farage you must understand that if greece leaves the euro other countries will leave too and that will be the end of our european project and that's what it's about this is about the maintenance of a political dream and even though it's out of date even though the economics are failing that is what they determined to do so there's this real battle going on my guess is for the moment they will get the bailout funds but at some point in time this brick rebellion will go further what will that's my question because when you're talking about the market suppression of democracy and the name of what you
just said was was the dream of the euro project is the result with their free market takes over what we're seeing in greece the radicalization and the balkanization of a country which you pointed to where mainstream parties their support for them is reduced and fringe parties see larger support and you just have a total fracturing of support for political parties across the spectrum. yes i think that's right you know at some point it out to distant future we are going to get a government in greece who are going to absolutely reject austerity in a way that will make the break between the two happen the differences will become irreconcilable greece is going to leave the euro i can't tell you when that's going to be my guess is it will be in twenty twelve and i would think if we come back in two or three years and have this conversation the eurozone will look completely different it will it will in effect become a norm. in europe. wow and you say you do believe greece will exit the euro zone but you don't have a timeline is there anything that you would pinpoint that you think would be
a turning point or are we seeing a now. let's see if i have a timeline of when greece leaves the euro i wouldn't be talking to you local book because pretty wide body you know you could never predict what these things are going to be. will be a place to boom it was obvious that the bully would fold but who could tell which tell you what happened this eurozone project is a total. disaster it is coming to what i know it's coming to and i was on my own about it this probably four or five years ago i said he was there are so many people laughing at me though and you know i do want to get to the rising support you've seen within the u.k. too but first you mentioned the berlin wall earlier you talked about german elections in one nine hundred thirty two you compare these greek elections to those now of course in german elections in one nine hundred thirty two the nazi party that was the first time that they gained the largest amounts they became the
largest party in parliament in your speech today you said in the european parliament you also said that in this interview that we could see the rebirth of national socialism in europe now is this because you're concerned about the vote that we've seen go to the neo nazi golden dawn party in greece winning of seats for the first time ever in greek parliament they got twenty one out of the three hundred seats. yeah yeah i mean look there is there is an upside to voters rejecting the failed policies that have given them europe that have given them the eurozone is that there is a huge upside to the downside and i mean this golden dome policy that have got all these votes in greece frankly that there's no avoiding it this is a policy and a very dangerous policy and one of the ironies of the european project is that the project that was set up to make us all love each other is actually beginning to make each other and the greeks now slag off the germans they have coliseums of
angela merkel bearing swastikas and the german tabloid newspapers like built say the greeks of all lazy feckless and useless and far from europe coming together europe is being told apart i we are risking stirring up the very kind of nationalism is that the project was supposed to stop in the first place i mean look communism was like this communism was supposed to make the world a fairer place and you finished up with a brand new class system is obvious russia where the party members have even greater rights than the aristocracy that have gone before them it is the law of unintended consequences. more with nigel farage after the break also still ahead celebrities and put their names behind prepaid debit cards now the u.s. is the biggest bank by assets is getting into the business you are three cents on why the first closing market numbers.
what drives the world the fear mongering used by politicians who makes decisions to break through that sort of to be made who can you trust no one who is you know view you with a global missionary see where we had in so. state controlled capitalism is called sessions when nobody dares to ask we do our t.v. question more. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you sure see some other part of it and realize everything you thought you knew you don't know i'm sorry there's a big issue. here
even when you. look in the ilona so you'll get the real headlines with none of them or see the problem with the mainstream media today is that they're completely disconnected from the viewers and what actually matters to those viewers and so that's why young people just don't watch t.v. anymore if they want news they go online and read it but we're trying to take those stories that people actually care about and transfer them back to t.v. . welcome back we're talking to nigel farage today leader of the u.k. independent party who saw a lot of what's happening in europe coming he believes the recent election results we've seen marked a democratic rebellion and countries like greece so we've talked about what this
means for other countries that are heavily indebted and debt and europe and i've also seen their borrowing costs rise take a listen. spain and italy and countries that have seen their borrowing costs rise do you think that you'll see them that will see them put more of their vote behind parties that are anti austerity that are opposed to euro zone solutions. the tragedy of the eurozone it was this if you look at historic long term and you look at portuguese spanish and greek interest rates i look at deutsche mark rates and what you see through the seventy's and eighty's and ninety's is a big gap german rates rose of the low and rates in the mediterranean countries relatively high as they approached joining the euro. they converged and so what you had in these countries and then on to effectively you had interest rates that was three or four percent lower than they should have been for seven years it was like being at
a policy where your glass is being topped up all the time for you it led to the most incredible speculative boom in property it led in greece to governments using this money to pay the public sector more to allow people to retire earlier it was a completely false totally false economy that have been set up by totally artificial interest rates and now of course what is happening is the spread having narrowed has widened out again as the markets say these governments are effectively bankrupt and we're not going to get our money back so that's the tragedy of the euro it should never have happened those of us that warned about this over ten years ago were written off as being we were told that economics have been reinvented as no. people that have been warning about this as you said you have had been gaining more and more popularity in the u.k. local elections you saw a lot of success your party the u.k. independence party the euro skeptic party which wants the u.k. to leave the e.u.
saw its best ever local election results averaging about fourteen percent of the vote where you had candidates stand candidates standing by. accordingly at the expense of conservatives so to what extent do you think the increasing your party support is based on its stance on europe versus other aspects of for example your domestic platform. well i think the debate on europe in the united kingdom used to be about something called sovereignty it used to be about who governs britain and necessarily as a policy in the early days we talked about these things and we warned how bad the european union would be for british democracy. much as that was a very important argument it didn't necessarily always appeal to them out in the street but now what we talk about is not just who governs britain but how britain should be governed because out there across the united kingdom the remove the ins of people who now realise that the laws that are made in europe directly impact their lives we've got over four million small businesses who are drowning in
employment regulations and health and safety regulations and environmental regulations we've got an open door immigration policy a total open door to the whole of eastern europe anybody that wants to come to britain from poland can and into the bargain if they fill in the right forms they qualify for housing benefit within two weeks you know people are getting very angry we ourselves have got economic problems we've got you thought employment running at twenty one percent all the while we have this open door immigration policy so you keep is not seen anymore to be a policy talking about some sort of you know high faluting intellectual idea we're a party addressing the everyday concerns of ordinary people and we're offering solutions we're not just saying europe's awful said to protest we're now saying vote for ukip because we're putting together a plan of how an independent britain could and should be run so there are these for example a conservative m.p.
was quoted in a british paper saying that the games your party has seen aren't just about europe which sounds like what you're saying suggesting that this was a protest vote against conservatives so are those all of the issues that that they're protesting against if his this and he's damon is true to an extent. whatever new force of politics emerges the mainstream or hold the mainstream at that moment in time will always try and write off that surge in support as it being a protest vote well the risk quite a lot in britain to protest about it at the moment so i wouldn't blame people for voting ukip as a protest vote but just look at our manifesto you know where the people saying we don't want to pay fifty billion pounds a day to be a member of this club we're the people saying we want britain to be a self-governing democracy where the people say we want to stop open door immigration we're the party saying we want to reopen the links that we used to have with a couple well in the english speaking world we're the party saying we want children who come from poor backgrounds to get the best possible educational opportunities
about used to be afforded by the grammar school system that we had and above all with a party saying we are a party that believes in enterprise we're a party that believes in the hard work we're a party that believes that you can't have schools and hospitals and the good things of life unless you've got people out there working making profits and paying taxes and so i think really to write off the rise in the u.k. vote it would up about ten percent since the last general election all these recent local governments goes to write it off as simply being a protest vote frankly smacks of people in the establishment of the moment sticking their heads in the sand i'm just not recognising that there is a massive massive political change that is taking place in the united kingdom and i would add across the rest of europe today fair enough i hear your point it sounds like it's also part of a broader european trend now i also want to note that you are the party mr for rise opposed to non wine i suppose at least you had
a non wine party today this is tasting of a fruit derived nonalcoholic beverage from one of the u.k.'s leading wine producers sounds a little odd tell us what this is about and why this is a political issue for your party. let me give you the story in my home county of kent we have a wine producer called chappell down and they make very good sparkling wines of white wines and they want to warn them of doing terribly well they were contacted by an argentinian company who said the seventeenth of april is well malbec day what if we ship you across a container of argentinean well back grapes and you turn that into wine and we do a joint venture and we sell that product in england and the chapel there winery said yeah that's absolutely fine no problem but told until. the mad bureaucrats from the commission in brussels intervened and they all that the company that they could not sell this product as why they had to sell it as
a fruit derived alcoholic drink made from produce imported from outside the european union i think it is just about the most bubbly absolutely in such a piece of meddling from bureaucrats i've ever seen in my life and today the ninth of april sorry not the bank is europe day where we're all supposed to celebrate how absolutely wonderful leader opinion is so i've just read a passing to celebrate the total absurdity of this european project and it's rather like the people that run this project you know they're in the temple the walls are crashing down all around them and all they can do is telephone been kept that they cannot sell a product they've made as wine it is total house and old sons and it and really is a serious point here is it gets to the heart of much of what is happening across the west the world the real battle that is going on here is a battle of democracy versus bureaucracy and what we want to do with ukip is get back to living in a democracy we may well vote for governments that are absolutely useless but at
least once every four or five years we'll get to turf the last out and to replace them with somebody else but to think that here we are paying him to flee fifty million pounds a day so that a bureaucrat can tell a kentish one producer that his product is not why it absolutely beautifully from a on europe sums up all europe day sums up what a complete nonsense this whole thing is. new are intitled to elections a coing your whine whine i obviously was misspoke if you didn't catch it when i called it and nonalcoholic fruit beverage i obviously meant an alcoholic one as i don't care as much more eloquently explain why that was fair as he's a leader of the u.k. independence party. yes.
all right let's wrap up with loose change dimitri and shannon let's talk about executive compensation at banks because what's going on well bank of america had their shareholder meeting ninety two percent of shareholders approved the executive pay package it's interesting because this went on amidst protests both inside and outside the shareholders conference meanwhile you may recall that last month citi voted down their executive pay package the shareholders did on the say and pay vote only want one it was nonbinding it's not binding according to dog craig meanwhile and consequently there was no big up people at citi bank group own contraire though possibly in the u.k. where shareholders are actually revolting against executive pay in the case of
which is an insurance company take a look investors rebelling in london against the c.e.o. of insurance giant of iraq they don't like his play so today they force c.e.o. andrew moss out. so force him out by resignation about a week after the vote moss resigned and viva didn't get any explanation but he resigned so is this. is there anything to pull from this that the too big to fail banks of shareholders vote against their pay it doesn't matter in the u.k. maybe in different countries or with different industries that it does matter i think this is a case where in the u.k. and in europe there's still some cultural and moral integrity left because regulations wise you know i'm a global one through london so i was just going to say regulations wise there is a huge gray area that allows for shadow they will have worked on london profits off but i see that in the us we try to regulate morality because there's a moral decay so we need to kind of put the clamp on with everything we've got and
the kitchen sink is there to put these bankers in shackles and prevent them from running wild in the economy when you get in there ok so you're saying regulation is the attempt to legislate morality with bankers right because and because i mean to us for exactly i mean in the u.k. they've got some rock only in police laws and if you go there the cops are really nice it's only here that like there's been a cultural shift and there's been a wholesale looting whether it is the military or the or there's the police for the bankers so i think that's an interesting and i think one of the i think it's interesting that they're willing ok say this is kind of p.r. where some of these big c.e.o.'s that catch a lot of bad press where they actually do get taken down or get their knighthood taken away but yet these regulations that allow these horrible practices do continue and this is kind of this p.r. thing or this sham at least the big guys that maybe you know are untouchable in the u.s. get taken down and that's a sure thing satisfying about that and shaming to have your money taken away but in the u.s. get a little shame these god there is no show like let's lou i know you lou speaking of looting guess what j.p.
morgan chase is doing they may be taking a cue first of all for muscle simmons reportedly get off that offset the cost of new regulations take a look russell simmons successful entrepreneur jewel interest he thinks everyone should be financially empowered so he developed a rush card to repeat visa card to critique everyone here which will decide do you really need a bank account. so prepaid debit cards russell simmons is doing it has done it now chase will start doing it selling them more than five thousand branches and what's reportedly a push to generate revenue with new fee based consumer products these are typically ones in this case that target people that can't afford checking accounts to offset the regulations that make them not overcharge people so much for overdraft protection don't allow them to overcharge merchants for using debit cards which is another way to lower i like from the i like this i like this you know you don't know i'm sure russia time on it's not going to court it's a debit card ok it's prepaid basically this prevents people from getting racked up
and turning to serve their put their preparing to a card so basically all the service that you need now you are asking for i think this is a no this i think is just another way to for banks to rat rack up fees to have a bit of this really consumers debt ok they're still issuing credit cards so that hasn't gone away but also we have time for let's wrap it up sorry shannon we'll hear from you tomorrow thanks so much for tuning in don't forget to come back tomorrow from everyone here thanks for watching and have a great day. there hasn't been anything yet on t.v. . it is to get the maximum political impact also. the for the source material is what helps keep journalism honest we were able.