good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are your headlines for april fifth two thousand and twelve u.s. president barack obama signed the so-called jobs act today it's the jumpstart our business startups act. this bill represents exactly the tone of blood we should be taking in washington you know program holds only this so called five partisan six thousand rolled back security laws for companies going public with up to a billion dollars in revenue so not so small and according to critics what it really jumpstart is frog's life wall street pump and dump scheme so how does

a bipartisan achievement is it simply the latest example of the bipartisan commitment to corporate welfare and did he have a semiannual job evaluation and we missed it because fortune had broken the news to us that after public talks in washington for a name he went on to retreat to a private lunch in new york with a laundry list of major wall street executives will talk about it and from doing god's work to criticizing any attempts to rein in the wrists post mansel crisis when it comes to the big banks fix you know their p.r. pushes through the mainstream financial press just help push that he our message right along let's get to today's capital account.

so we hear the rhetoric out of washington all the time parties pitted against each other on how to help the economy grow on government spending taxation who should be taxed more or less what's making the us go broke earlier this week we heard president obama lay into the republican budget which was passed and house of representatives last week he said this is a trojan horse disguised as deficit reduction plans is really an attempt to impose a radical vision on our country it is thinly veiled social norm darwinism. and then on the right you have people like the republican presidential hopeful the front runner mitt romney blaming obama for what he calls european scale unemployment if you add up european policies that it's not surprising you're going to have european unemployment that he he he has adopted european policies with health care

with taxation with regulation with energy policies but then you see the two parties put aside their differences sometimes and come together on something like the jumpstart our business started back to tell it as a bipartisan achievement obama signed us today you heard what he said when i played that at the top of the show and we've seen republican leaders like eric cantor who have been touting it to take a listen the jobs are will do it small businesses and i want to murder entrepreneurs back to doing but removing costly regulations and making it easier for them to access capital ok so everyone's agreeing so what's the catch here there's got to be one right well the problem is critics who have been on our show who work in finance or have worked regulating it white collar criminologist say this is what this so-called jobs act really jumpstart. do you creating

a lot of jobs for people who want to turn to a life of crime everybody that knows about fraud and has said this bill is not as you start they had it is unbelievable if you still wish list of every fraud friendly practice in the world clue to the other end of bill will be advertising bogus shares they don't have to provide accounting statements they don't have to be accountable to investors this is a formula for disaster i've never seen anything like this and in addition it's going to allow people to basically write research reports telling stark's when did we get into trouble were there before with world com with other issues. oh gee it sounds great so it rolls back a host of securities laws for companies going public so i.p.o. rules for so called emerging growth companies which can have up to a billion dollars in revenue ok so that's not a small number that's not exactly how you think of your typical small business and

they'll get out of audits and accounting rules as examples and it also breaks down the separation between research analysts and investment bankers who work for this same firm so it allows banks for example underwriting i.p.o.'s to issue reports ahead of stock offerings opening the door to pump and dump schemes like you just heard janet talking about there now it was recommended by obama's jobs council which has been led by g.e. chairman jeff immelt and includes nineteen corporate chairman and c.e.o. is out of it's twenty seven members so what is this all really about because it doesn't really seem like what it is on its face is this really just the latest example of bipartisan support when it comes to supporting moneyed corporate business interests that are heavily influential in washington we'll here to help us talk about this whole issue is john perkins because he is a former economic hit man and he's author of hoodwinked an economic hit man reveals why the world financial markets imploded and what we need to do to remake them so

we're going to we're going to figure out today how we can do anything about this so first mr perkins thanks for being on the show it's always really a pleasure to talk to you it's great to be with you thanks so when you hear something like this jobs act which has this bipartisan support and sounds the way politicians have talked about it like it's this great thing that's going to reduce barriers first small businesses to raise capital sounds great but then when you hear more about the fine print from a lot of experts it just sounds like wall street interests are going to get their way at peeling back regulation or corporate interests are going to have more leeway that sort of thing does this to you sound like wall street starts using washington's bipartisan support for welfare. it certainly does you know and i'm not familiar with all the details of the effort everything that or heard about it read about it certainly sounds like it will go for business and it's kind of interesting because at the same time obama is and many other politicians are supporting this called the stock pact which is to stop congress from insider

trading or using insider trading to its benefit to get these two kinds of things going on at once which is which is very very interesting to me and why is it interesting to you because it what is it representative of where we're saying on the one hand we're not going to allow for insider trading going on congressman which is which is a very good thing but on the other hand we're also saying that we're going to we can pay as little. for businesses to deceive us and we're using that is a way of saying this is going to create more jobs but it is one of your earlier speakers pointed out you can play that it seems like it's going to create more jobs for you know robber barrons basically for robber barrons so let's take on this issue of proper parents because as another example of this this tran we've seen come out recently and say hey we want to undo the subsidies for the oil industry that republicans quickly gone the way of back in the senate but just before that

democrats had voted down bring it forward instead they wanted to move on to talking about postal service reform and obama wasn't complaining too much so that was criticized as a political theater when he when he came out made that speech so is there anybody in washington who is elected official that is who really wants to undo corporate welfare like oil subsidies for some of the largest corporations. listen you know. at this time citizens united is this being withheld you know there's a huge movement in the united states to to have it and when to basically do away with the citizens united rule but that rule gives corporations a tremendous amount of power of financing campaigns it's an election year now and the court and citizens united stand so these protrusions have tremendous power so everybody's jockeying to get corporate money and at the same time make it look as though they're defending we the people but the fact of the matter is politics today

we the people are secondary importance to the big proration speakers the big corporations provide the money for campaign financing and everyone knows that that the campaign with the greatest finances has the greatest likelihood when it goes for the presidency or whether it's sort of senate seat or congressional say right and we hear this this issue come up again it always seems to boil down to citizens united for a lot of people but what is really the answer because say for example and a magical world we did change the law and we made things more fair we do live in a global society today so good businesses just go to where it's more business friendly. businesses go there anyway if you look at it ed palaver moved to dubai and you know today most businesses don't look at themselves as being american businesses big ones they have no loyalty at all to the united states they work on all over the world and they follow whatever laws best suit but

certainly the united states has the largest market in the or less than five percent of the world's population and we consume nearly thirty percent of the world's resources so they really struggle to help and most for a little the united states hey you know they do it wherever they go they're going to want to have laws in the united states that favor them and i think what we need to understand is that we the people must be pippi hence the us corporations right now are there to serve that infamous one percent we're not there to sort of public interest we need to go back to the history the roots of our country were four hundred years probation could not get charted in the united states unless they could prove that they were going to serve a public interest i think that's a good idea you know they can still make a profit they can still pay packet decent rate of return to their investors but we need to come back to this idea that the corporations are there to serve us we the people are there not just there to serve a few screen with a wealthy robber barons but how do you know i'm do that because it's not only these

these are very powerful interests that have a lot of influence over the political system but also it gets to the very root of how the business model is conceived of anti in the u.s. and any business ottawa can say oh you're absolutely right but it hasn't always been that way hey you know when i went to business school in the late sixty's i was taught that a good c.e.o. makes a decent rate of return for his investors and in other words makes a profit but he also case good care of his customers and his employees he gets good health care insurance pension funds for retirement pay and he's a he's a good is. us a good citizen in the communities where it is business operates he's willing to pay good to have the sufficient taxes to support the community and he goes beyond that to support schools to build schools to pay for recreation centers for children they sorts of things and you notice that i'm using the term he and it's because let's face it most programs that is today the most powerful ones are met i think we have

more women and they struggle actually we may have a more nurturing society we have not seen that sometimes with women in charge appropriations and that's because this is true and it's male mentality out there that says some of my indigenous friends say men steal nests women build less and i think we need to get more into this mentality or we need to build nests in these nets need to be for all of the people or for we the people and go back to the basic premise yet all in the united states for the first minute years of our history i hear what you're saying but we just also talk about how these businesses these huge corporations don't see themselves as tethered to any place they don't see themselves necessarily as american companies first who are entitled to wherever it is that their pays their global so how do you get any sense of responsibility over the community that you're existing at. well you look at it as a global community truly but each place where you're doing business becomes

a location and this is always been the case for example of the new car manufacturers back when i was a young man were there in detroit but the dealerships were all over the place and the dealership in the town variety and i'm sure a tremendous responsibility for that community and overall the detroit companies took responsibility for their employees wherever they were and i think we need to look at that today so that a company that operates in one hundred trucks shares its branches in those countries need to take responsibility in each of those countries and countries where it has major fashion implants it needs to take good care of its laborers in those countries give them health care people insurance give them pension make sure they have decent decent incomes and the countries where it's just selling its woods doesn't have the manufacturing plants it needs to make sure it's right it's really good good goods and good services and it provides a really decent market for those who are buying its products so this is you know it

is part of this. business politically and also back locally a sponsor it locally and it's a great idea i want to talk more about how we can possibly get there with all of these issues that exist that we're talking about we're going to get a break and when we come back we will have more with former economic hitman john perkins and still ahead here dining and dashing motorcade style we'll give you our three cents on huckabee and what money the police say obama owes them but first our closing market numbers. thank. you just put a picture of the need for those like nine years old i think it's called the truth. i have a confession i am a total get of that i love rap and hip hop is

a planned trip. but it was kind of the jester. i'm very proud of the world with al-jazeera has played. the game. you know sometimes you see a story and it seems so you think you understand it and then a glimpse something else hears you some other part of it and realize that everything is ok. i'm charging welcomes a big picture to. see . what drives the world the fear mongering used by politicians who makes decisions. who can you trust no one.

is you deal with the global machinery see where are we headed state controlled capitalism is called sessions when nobody dares to ask we do our t. question more. welcome back with the signing of the jobs act today in the u.s. which critics say simply opens the door to massive fraud wall street pump and dump schemes allows companies to report a lot of accounting and audit rules or adhere to them when they go public companies that make up to a billion dollars we're talking about how to deal with this issue of entrenched corporate interests and corporate welfare in washington which really garners

bipartisan support these are the bipartisan achievements plans that don't necessarily benefit the people that they say they're benefiting so john perkins is talking with us he's former economic hitman and author of hoodwinked an economic hit man reveals why the world's financial markets imploded and what we need to do to remake them because we're talking about how to remake them and before the break we were talking about global companies that need to serve local interest and we need to rethink what a company's priorities are but i guess the question i have the biggest question is how do we ever get that to be reality because we see all of these issues whether it's regulators that fail to regulate even what's on the books whether it's the entrenched money interest in washington that influence every law or get subsidies or whatever you know how do we really change this. right that it's a great question and i think that's fairly easy answer a little bit necessarily easy to implement to that and but before i get into that

just very quickly you know it strikes me as i travel a lot in latin america asia the middle east and we talk about banana republic some corruption ways countries yeah i mean away i think where the biggest banana republic out there we've planted got a knock on monoculture of culture of the economy that's pretty much based on the military to a large degree right and then providing a bunch of junk to very rich people and we have tremendous corruption in this revolving door thing that we have you know the the the watchdog agency is over the oil companies run by for a company executives who are going to go back to work as executives that oil companies it's an incredibly corrupt system and we have to recognize that politics is extremely limited because of this corruption and because of the money politicians receive so we need to get out of love as directly with the corporations and you know when when i was a in college we got rid of apartheid in south africa because we boycotted corporations that supported it some of our laws reversed were terribly polluted we

went after the corporations we refused to buy from corporations that were polluting let rivers until they clean them up we did the same saying with corporations to get them to open their doors wider to women and minorities i think we have to recognize that as a consumer if we want to us has a tremendous amount of power whenever we buy something or decide not to we're casting a ballot and it's probably more important than the ballot we cast to be two years or four years of election polls so we need to be really aware of how we shop and we need to pressure these corporations so for example i love making products i hate the fact that a lot of their goods are still made by slaves and sweatshops in places like indonesia and it's not enough for me just not to buy their products i need to send an email every time i buy something that could be about your product i sent an. can i take it and say hey i love your products i won't buy them start paying your people in indonesia you know screw fair wages give them health insurance and retirement funds and i'll buy your product i wonder and i wonder if mr perkins if

this is shifting a little bit the power that the u.s. consumer does have because they need the merging economies we see consumer class is growing and that's where a lot of is not a national corporations are looking at their growth so how much does the u.s. consumer really have and is this more of a global consumers getting out where we are still less than five percent of the world's population consuming about thirty percent of the world's resources the american consumer has a tremendous amount of power maybe getting watered down a little bit but we've got tremendous power and we get to also remember that a lot of the other parts of the world people are kate you know actually europeans have much more proactive than we are they really been fighting g.m. woes and their food very successful leader we've got another battle coming up now but they've been pretty successful and i travel a lot it just came back from the middle east two weeks ago i go to china go to europe i go to south america and all over the world we're soon people rising up and taken control we've seen in places like russia with enormous tributes who would

have heard of this a while ago so we're all alone of this and i think people really take take the united states and as the leader so we start to really develop consumerism and consumer movements the rest of the world will fall or so there's a possibility of people because as you said corporations and government are so close you cannot count on elected officials i just have to ask you this because you're talking about we don't have a lot of time left we're talking about how you're traveling around now you used to travel around in a different capacity going to these countries as an economic hitman and you've been very critical of the world bank in those processes where they saddle countries with debt in order to garner resources that were benefiting foreign companies that would come in and buy them i'm curious we've seen a lot of coverage of the latest nominees to the world bank president and now there are more than one it's a u.s. nominee also one from not colombia and also i do. gary i believe i'm wondering if you think that anything could change with the world bank perhaps a little bit the world bank has a mission statement that says its job is to reconstruct at a stated parts of the world but then that mission statement was formulated back at

the end of world war two and get a pretty good job in europe of doing that and then it became a representative of capitalism against the rising power of the soviet union and it stayed with that even though the daytime the soviet union is pretty much collapsed in terms of economic power but in that process the world bank became very big friends to corporations and it can exert a lot of power over these preparations i have hope for the world i wish you would step back into its mission statement and do what it's meant to do which is to to reconstruct us through parts of the world and let's face it our corporations complete huge role in that you know we've got people starving throughout africa how about getting on something or and nolan should give some of these trampoline companies that have been destroying the earth's. a recall to resources with a moko fertilizer get them to better ways for starving people to grow food more efficiently store it distribute it to bring about the great solution you propose i

wish we had more time to talk about that but i'm glad you're giving us a little bit of hope here and that was john perkins i wish we had more time i cannot leave it there for today he's a former economic hitman thank you. all right let's wrap it up with we have dimitri and shannon to talk about the banks because it wouldn't be a day on the show without that because j.p. morgan c.e.o. jamie dimon is annual shareholder letter came out yesterday if you haven't seen i but you can guess with it he complains about new government regulation he's been this has been his shtick for a while he says it'll cost three billion dollar he's upset about it this morning on squawk box jim cramer actually had something to say about diamonds containing

listen to this. i think he's the conduit quarmby you arrest warrant or maybe he's a warning are you. all right that's not a good thing or you want to preserve it and to stop the government oh. i mean just do. so he hammered and we've got to give jim cramer credit for that but the most interesting part is look at the reaction of the other people that were on sandy's you with him listening muscly. why can't he speak out without being a winery why do you call him a whiner just because he's raising a lot of issues that a lot of other people in the industry. if you have the courage the appetite to go out there on a limb and express it and not something that other other anchors were saying too so jim cramer says ok me time in the weiner which he is come on and everybody jumps to jimmy i'm defense so are the actual press in the mainstream are they just kind of doing the bidding of these banks in terms of their p.r.

procedures of the traders have on their for white noise and who actually listens about to inform selves of this would be something both of them so. pretty much for apologies for the banks so it's not even just about everybody who and i just want to bring up to along this on this note i caught this picture it was chosen by the wall street journal to illustrate a story about goldman's new leads. they pick a story of him with a nun ok are they buying into this doing god's work thing absolutely i mean this is not just a p.r. thing we actually do we believe it's the divine right of the sea ok and that's what this whole thing about religion is and when you when you give divinity when you give divine right to decision making they have a holy degree and that's just not for profit any kind of legal legal right well let's move on because making a decree and legal right let's talk about what president obama is right is to overcharge police so at to private campaign events last week president obama had

a seventeen her motorcade secret service police they were from the counties where he was in vermont but it seems reportedly the campaign didn't pay the bill ok and didn't pay the police that the state provided this isn't the first time it's happened the same thing happened when michelle obama visited in june police provided extra security constant them thousands of dollars and have not been repeated here we are prone. to. so it's happened in vermont it's also happened in springfield illinois reportedly there is a bill that they still have from the obama campaign in two thousand and eight for fifty five thousand bucks so come on what is this obama goes and doesn't pay his bills and just you know uses the city's resources but i think the real concern here in a very serious is the militarization of police with local police as they police you have created these gangs of people war whose allegiance is only the federal government long as they can provide the money once and care they're going to go

rogue are going to start sucking off every different principality. in this entire united states and you want to have you know. obama's just stunning and daschle if he can get away with illinois and he's going to do it. he's going to do it again repeat offender before we go we just have to say today is international fund out work to day and to celebrate this year's theme which is work like your dog we have our dogs throughout our life taking our place my big question here what kind of message is this thing have fun at work day but work like a dog ok are people that dumb working like a dog is having fun at work day those are lazy ok. i don't know what this is about we're going to dogs expression right now who are those who are a lazy dog to sit out in the sun ok and there are some like a working industry they're great dogs by the way i don't have. the time you know it's like me going by the way so i feel going cover putting it there that's not my dogs are people ok i like people's i have a dog

a beautiful no ok i don't think anybody care how they're going to miss that we have to leave it there because that's all we have time for thanks so much for tuning in don't forget to follow me on twitter or lester give us feedback on the show at youtube dot com slash capital account from everyone here thanks for watching and have a great. wealthy british style. sometimes. market finance sunday. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines tune in to kaiser report on r.g.p. . the nation free credit station free transport charge is

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