in seeing from the streets of canada. change corporations rule today. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. the euro zone today still appears to be a danger zone as italian bond yields surpassed seven percent for the second time in six days and italy's largest bank tries to raise billions of dollars to weather the storm of exposure or the e.u. also tries to curb ratings agencies are these all signs the euro zone has been one big failure well we speak to a member of european parliament who certainly thinks so and in the u.s. occupy wall street cleared out of zuccotti park by riot cops a day after off you pipe oakland with cleared out by cops too if you were an

investor will you be wishing you could go along police raids well things you can't we'll talk about who is benefiting and on the hill lawmakers meet about obama's policy toward iran now we've heard the rhetoric as the late lately so from weapons sales to lobbyist we look at who's capitalizing on the u.s. as tensions with a country that's got to capital account. as i mentioned the eurozone is still a dangerous zone here is the evidence italian bond yields reached seven per cent i want you to remember that's the threshold that broke the bank for greece and for ireland last year we have seen italy surpass that twice in just

a few days now also italy's largest bank if you're measuring it by assets and one of the more replete capitalized in all of europe it's called unicredit it's announced it's going to try to raise ten billion dollars in capital and cut thousands of jobs it suffered some losses from greece from haircuts now it also sounds like the european union is going out through the credit ratings agencies they want to allow investors to sue them and they want them to warn bond issuers of a change in ratings ahead of publishing it now this allusion to the euro zone's problems the task at hand according to angela merkel of germany is this the task of our generation is to complete economic and monetary union and build political union in europe step by step that's does not mean less europe it needs more europe something she just said at the annual conference of her political party but

contraire said my guest nigel for raj he is a european member of parliament to call him a euro skeptic is to put it lightly he is talking about a year ago and all this in parliament i want to play a little bit of what he said increasingly people are saying we don't want the flag we don't. we don't want this political class we want the whole thing consigned to the dustbin of history. i spoke to him today and i asked him for us to go to the dustbin of history because europe before the e.u. saw centuries of conflict and war and famine the e.u. was the first real attent to unify the continent through diplomacy instead of war so i asked him is there nothing that should be salvaged of the last sixty years of integration here's what he said. well don't forget that communism was supposed to make a lot of ordinary people better and in soviet russia it made increasingly worse and

the european union was based on the fact that france and germany foresee each other in three vicious wars in the space of sixty years and the idea was if you were polish nation states suddenly everybody will be at peace with each other if they unified under one flag we seem to have forgotten we did this in the early one nine hundred twenty s. with the balkans we call it yugoslavia and that broke apart in violent conflict you cannot create a united states of europe without the consent of the people that consent has never been sought so what we should be doing it will make sure that europe is free from wars and free from some of those awful conflicts that we've seen is to make sure that we foster democracy democratic mature european nation states do not go to war with each other and what we are now doing is we're imposing upon people through the euro and other measures but a new political union that is undesired and wanted what's happened just in the last few months is many of the old eminences have flared up again we're headed in the

wrong direction i don't want to get more to that but i want to bring up the another concerned that was the e.u. was born out of that was of course to contain germany after the devastation it caused in world war two you say that mature democracies don't go to war but you as an opponent of federalism are you afraid of germany and when i say that i don't mean literally germany perhaps i need the reemergence of a player like that who tries to use force for control on a continent. there has not been since nine hundred forty five any public up outside or any public figure in germany that has suggested that they should invade other states that has been keen on remove it tries it but actually i think much of this is actually rather insulting to germany yes they did some ghastly things i don't think since not in forty five there's been a more peace loving country in the world than germany ironically what has happened through the euro project because the germans are really rather efficient very good at industry and manufacturing ironically economically they are now taking over the

whole of the eurozone and i think mrs merkel finds herself reluctant the old boss in europe today those are is just i didn't mean necessarily germany specifically but more broadly the reemergence of a player like that who try to use force for control of the continent you're not afraid of that at all if there's disintegration. look when you strip from pretty pulled democracy when you take away from people variability through the ballot box to determine their own future you leave them with only one option and that option is civil disobedience or civil disorder but i am very strongly of the thought that if we continue with this project trying politically to unify all these countries under a government that we can't even elect and we can't even get rid of the people will take matters into their own hands so far from this leads to peace and harmony it's actually doing the opposite out it will see and it's beginning to see already the

reemergence of the very extreme nationalisms the cause the problem in the first place this is not going to work if we want to have a europe of trade democracy cooperation but that being done by sovereign governments hard for but their own people what is a perfectly reasonable proposition but the idea you know that a country like mine that gives over gives away control of its of its of its parliament to people like mr bruce and herman got a room for people we can't go for i'm sorry it's just not acceptable and you think this is headed further and the wrong direction that i want to talk about i did in a gracious scenario and how you envision the next ten to twenty years if that does happen as far as the reemergence of all divides the emergence of new divides and they are kind of touching upon that what would the next ten to twenty years actually look like. well the irony of course is that the euro is making the greeks slag off the germans you know they're burning european flags in athens with

swastikas drawn on them there are cartoons appearing in greek newspapers of angela merkel wearing swastikas over nazi uniforms and in germany you get a tabloid press in germany saying that the greeks are corrupt lazy and useless or actually what the euro is doing it's making us all dislike each other very much more than before what are we going from here i mean look those mediterranean countries were never ever going to fit into an economic and monetary union with countries like the netherlands and germany we are now seeing the price of the countries that are trapped inside a currency that is probably sixty to seventy percent over the island for their needs i mean now being told they've already got an economy that is decreasing at a rate of five percent a year they must take further massive austerity measures the euro zone as it's currently constructed is going to break up the only question is does it break up in a disorderly fashion or does it break up in an orderly fashion and what we are urging here is that if we really weren't good europeans we'd be helping greece to

go back to the drachma to get a devaluation to stop massive capital flight from a country i want to see an orderly break up of the euro but at the moment nobody here can admit they got it wrong and they doing everything they can to maintain this project but it's interesting you bring that up because you're actually one of the few people who are very vocal about actual ways that countries could access the euro so specifically how do you see this happening. well i've been urging the bosses in europe for the last year or more please could we have a plan b. please can we have a contingency plan now you know we started to work on this we held a conference here a month ago with a couple of senior german economists putting forward ideas as to how we can help greece portugal and other countries get back to their own currencies there's been a big prize put out a quarter of million dollars for somebody that can find the right solution but it's still a lot of work to do on this but i think we need to urgently focus on it because it's increasingly clear that what we're doing economically we're crucifying greece

we're leading to a huge level of civil disorder and so on it's got to be done so i haven't yet got a perfect solution but i'm trying to find it is there anything you can tell us because this obviously the mainstream kind of consensus is there any kind of accept from the euro would be very disorderly would be chaotic would be horrible so is there anything you can point us to specifically for an exit from the euro. well what if we carry on the current route we're going to find the markets overwhelming us with questions now being asked about italy a potential questions being asked about france and its aaa rating so the current course without a doubt is the wonderful hope that will lead to real chaos too for greece to get back to their own currency i'm afraid banks in france and germany and the u.k. are going to effectively have to write off their debt and give greece a blank sheet of paper yes it will cost us money in the short term but to give

greece a devaluation of sixty or seventy percent to give greece the opportunity to get back to a form of democratic government that they might have some respect for i think it's the only possible route i just want to quickly ask you obviously are sitting in the u.k. obviously the european and euro zone crisis is top of mind for you but sitting here in the united states obviously a lot of similarities in terms of a lot of similarities in terms of just obviously our economies are very much intertwined do you see any lessons for the united states in all of this. no not really but you made your own mistakes just to see video ways of europe we have people you guys that are under greenspan and cleans and got rid of the glass steagall act we did much the same we've made catastrophic errors with our banking industry we are governments of work on the basis that you can go on boring forever and the day of reckoning is not i. i have to say what i look at mr obama he just

doesn't seem to recognize that national debt is a serious issue in america just as it is in europe we haven't got governments that are realistic we haven't got governments that are being truthful frankly with the people there is worse to come there are very hard times ahead but at least america it's a democratic state in the late least you've got the chance to vote for a different president if you want one the poor people of greece have got nothing like we also have an extended executive powers in our country as well but sounds like a plague on both of our houses i appreciate you being on the show mr fries. thank you very much now our interview did not end there i continued talking tonight authorising you can watch our entire interview online at you tube dot com slash capital account the gap i want to check it out we talk more about europe and also the u.k. where he hails france and but our website. and still ahead right here on capital of count don't go away police may have cleared out zuccotti

park and occupy oakland camp but who stands to benefit from these police raids i'll tell you after the break but first the closing stock numbers. you just put a picture of me when i was like nine years old i'm just over truth. i'm obsessed and i am a total get over friends that i love brad because he's excellent and pretty. he was kind of the jester. i'm very proud of the world without you it's place.

you know sometimes you see a story and it seems so pleasing to understand it and then a glimpse something else here's you some of the part of it and realize that everything is ok and you don't know i'm charged welcome to the big picture. what drives the world the fear mongering used by politicians who makes decisions to break through. who can you trust no one who is you know view with the global machinery see where we had a state controlled capital. school sessions when nobody dares to ask we do our t.

question morning. welcome back time now for word of the day where i breakdown a financial term or concept for our very smart viewer but maybe not the financial expert in our audience and today it is technocrat and we've been talking about how technocrats are in charge now in rome and athens and here's one other reason why you need to know about what exactly this means here's a headline we thought it a let's see it. letting technocrats run europe is bad politics and bad economics ok whoa so just what is a technocrat that this guy is railing against while here is the definition it is someone who is selected through bureaucratic processes and that's a key on the basis of specialized knowledge and performance rather than

a democratic or popular election and a tech not receive decision makers would be selected based upon how knowledgeable and skillful they are in their field so let's talk about technocrats and who these guys are in europe right now so in italy you have this guy mario monti he's the new prime minister he replaces berlusconi now he's not a politician like berlusconi he's an economist and former commissioner of the european union and he's also the current european chairman of the trilateral commission and in greece who was replace prime minister pomp and rail as the head of the unity government technocrat lucas it lucas papademos this guy here he is former central banker he was a vice president of the european central bank and former governor of the bank of greece so these guys were elected by the citizens of the countries to serve in parliament and that's the key as to whether countries are better off being ruled by

unelected bureaucrats which are technocrats or democratically elected leaders you can decide that but now you know what a technocrat is. occupy wall street after spreading across the country over sixty days which we have covered extensively on this show of course they're protesting in a call. d. in this country bank bailouts other economic conditions to advice that after sixty days they've seen a crackdown zuccotti park home of occupy wall street itself was cleared out this morning by riot police and yesterday hundreds of police and riot gear dismantled

occupy oakland camp a resting protesters there to now despite all this the movement continues here you can see we're going to show you some protesters in new york which have continued marching on canal street so their stand out there and in northern california the action today is on the campus of u.c. berkeley where they have continued to hold protests and actions but if you're an investor would you wish that you could go long police raids right about now i mean looking at these factoring in the militarization of local police forces across the country since nine eleven well we're pretty sure you can't so we'll ask who does stand to benefit from this and will speak more extensively to with just the man to answer these questions lou rockwell he's chairman of the ludwig von mises institute and it's really nice to see you thanks for being on the show mr rockwell group agree with you now we always talk economics for very obvious reasons but you have

a political history so i'm really curious to get your insight on this because you were politically active in the one nine hundred sixty s. so i'm curious how would you compare the climate then to the climate today with these occupy wall street protests. but we have as you indicated a growing police state in this country and we call these people riot police they're actually rioting or we use them and they're the ones who are inflicting the violence and they're doing under the direction of the central government exactly what the u.s. always criticizes other countries for that is beating rousting jailing anti-government demonstrators so these kristen stewart is not only anti-government but they are anti bank and since the american government is sort of a bank ocracy. they you know that's who benefits from arresting these people out i at least in the short term i think that the economic conditions of this country are going to dictate even though the core occupy wall street people don't know much economics i think the conditions are going to dictate we're going to have many more

demonstrations and much more civil war disturbances much more civil disobedience and it's because of the way the government handles things that they're going to be more crackdowns so already you know if he were even potentially in a pretty revolutionary situation if the economy gets worse as inflation is going to go through the roof everything the banks around the central bank the federal reserve the obama administration the congress the republicans to this not just a partisan they're question these people most of these kids you know occupy or recent college graduates they can't get a job they also got huge huge debts and made into debt slaves by the government and by the banks they are scared for their futures who can blame them it is scary looking to bring up these are victims and you bring up some really good points and you brought up their understanding of economics which today for the first day that i've seen on some of the mainstream news networks that dedicate all of a sudden a lot of coverage to occupy wall street with this campaign and wall street being

brought up and i so you saw the opportunity of some of these wall street guys to respond and they were just kind of parading the protesters as not understanding economics as they thought. getting on wall street or not understanding wall street my question is ok i'm not judging a protest because i've heard them say some very very knowledgeable intellectual things and shown an understanding of the situation in this country but regardless of that does that matter does what matter the fact that they are out there and that they're that angry and upset and affected by the economic conditions in this country. well first of all what the what the the it's banking nomics the as the mainstream media and the wall street economists the bankers and so for propagating it's no more real economics than what the occupy wall street people say so it's just you know they're what the bankers sort of and all their allies are saying is how dare you try to shrug us off your shoulder it's our our right to ride you to control you to run your life take your money and make you do whatever we want so

these kids say no it's not and you know one has to be with them and that i wish they would really read a living going beezus and some of the other great austrian economists listen to ron paul and people of that sort but still i think the whole thing is healthy we need protests we need people being angry anger is good when you're being ripped off and we are all being ripped off by the banks by the government and by the by the federal reserve and the whole complex the financial industrial complex whatever however to describe it and of course the warfare state and all that many other horrible things the government engages in killing people in mass and so forth so this is not an economic leader decides all the corpses that the government generates around the world is economically disastrous for the american people the rich of course are doing fine they're good government connected rich they they always do but the rest of us are being crushed there but there are there are glued

on our throats and the fact that people are trying to remove that boot i think it's a good thing ok and i put that the financial industrial complex but just to ask you one more thing because you bring out your assertion of that as a police state i want to know how you compare the reaction of the police now to what are peaceful protests these occupy wall street fights at to the pleats reaction to violent riots of the sixty's. well i don't think the police have ever been a bunch of the preparing for that that we're. in ever since really began to do with the nixon administration in the early one nine hundred seventy s. there's been a gradual federal takeover and federal militarization of the police and today virtually all police forces by federal edict and subsidy want to hire veterans from iraq and afghanistan and then you know and the other american wars that are going on people who are trained to think of civilians as you know terrorists or potential terrorists no sympathy for them and tend to a pullout of the nightstick of the taser of the gun rather than trying to settle

disputes they're not peace officers they live. but they are there you know pro riot pro it's very very different so this is another alarming situation. the cops are much more brutal than they used to be the tasering and so forth will eventually we see some of these demonstrators who shot and killed they're using rubber bullets already will they start to use metal bullets i must say i'm terrified of wow and speaking of tasers and stating i have the weapons and the rubber bullets and the increasing police force does the benefit there capitalize on that because as i mentioned if you're and that's or maybe you'd want to and that's in this kind of action you believe in the a long police raid which obviously you can't but i got imagine something benefit there. well sure i mean the good the government benefits and all the economic interests associated with the government and the you know malcolm x. used to say that at least forces are occupiers of their own current persons in effect occupying military forces i think that's correct i mean they are they are

there to enforce the will of the government and its associated economic interests against the rest of us and if anybody protests why they want to take care of you take you out so you know that that's who they're working for but not working for the people they're not and they're not in favor of peaceful cooperation and that sort of thing they want beauty and fear humiliation control it's the same thing they do with the x. ray machines of your porton feeling people open sore throat this is they want to humiliate us control us and you know make us just because their feet some people are not really because they're feeling and speaking out kissing their feet the federal reserve's fear certainly some that you do not care so i have to ask your question about this because we saw the federal reserve bank of chicago as president say that the fed should commit to near zero interest rates until unemployment either goes below seven percent or inflation goes above three percent so let's

assume that inflation remains below three percent could this help unemployment. first of all inflation is way above three percent you can't believe the government statistics they lie in that is and everything else i'm employing it is far higher for example than they say it is and this is just crazy keynesianism is the most vulgar ridiculous form of keynesianism that sees the economy as unable to run itself government has to be in charge of everything and they can fool everybody by just manufacturing all those newly created money so all it does is make us poorer or some of the banks benefit the government benefits but the vast majority of people are made poor by monetary depreciation this guy's of course calling for even more monetary depreciation and bernanke is already the biggest inflator in in the entire world for more for example than the european central bank or the bank of japan so he's saying well realty should just print out that money more and depreciate the dollar let's have hyperinflation let's all be weimar zimbabwe that's

what this guy's position is and then of course he'll be for price and wage controls capital controls and the financial totalitarian state so this is the corporate state or the combination of big business big government together or fascism as we can also carla an operation cracking heads cracking down on our standards of living making things much worse and we definitely need some opposition and i think as i've said before i think we're seeing some opposition it may be in very imperfect opposition but boy the what is wrong with occupy wall street and the people who oppose the federal reserve beyond the fed movement and so forth and i don't think there's anything wrong with the end the federal money but there's so much there though so much more virtuous than the government i mean the government that's the stuff that's around my age i'm killing people all the time you may bring up a really good point i want to get around we don't have time unfortunately president the end of the show but health we'll bring on again to talk about that because we sat face to avignon that was in iraq the chairman of the left the gun uses institute and that is all we had time for but please feel free to call me on

twitter at laura lichter and check out youtube dot com slash capital account to keep it going. and you can see the rest of my interview with nigel fries there until next time have a great night. for . the. ride to cleveland goes to. one hundred morning.

what are. your new sixty square kilometers or the move from the mistakes. and those who are still suprising. i'm finding we're just there so it's getting bad out here. but not saying hardly any birds squirrels you know. you know i don't know what's going on here. concrete on the marquee.