already under investigation by off com the british broadcasting watchdog back to do with news corp seven in the company and with the phone hacking scandal news corp tried to downplay it to begin with they said that the illegal activity only extended to one rogue reporter at that newspaper however that was soon proven to be false it was a lot more widespread than a originally let on and that will be the question i ask now sky news was this really a one off or was it is it more widespread. i had to endure for now back a half hour. wealthy british soil the sun. spot on the right of the money.

market why not. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars a report on our key. he used to. be he. used to. say. good afternoon now while going to capital like how i'm lauren lyster here in washington d.c. it is your headlines for april fifth two thousand and twelve u.s. president barack obama signed the so-called jobs act today it's

a jump start our business startups act. this bill represents exactly the kind of bipartisan action we should be taking in washington to help our economy. only this so-called bipartisan six thousand rollback security laws for companies going public with up to a billion dollars in revenue pay so not so small and according to critics what it really jumpstart is frauds like wall street pump and dump scheme so touted as a bipartisan achievement is it simply the latest example of the bipartisan commitment to corporate welfare and did great he have a semiannual job with valuation and we missed it because fortune had broken the news to us that after public talks in washington bernanke 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 risk host mantle crisis when it

comes to the big banks sticks 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 and who should be taxed more or less which make in the us go broke earlier this week we heard president obama laying into the republican budget which was passed in the house of representatives last week he said this it is a trojan horse disguised as deficit reduction. is really an attempt to impose

a radical vision on our country it is thinly veiled social norm. 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 it's not surprising you're going to have european unemployment then 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 start up act it's tell it as a bipartisan achievement obama signed yesterday 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 get small businesses and entrepreneurs back into the

game by 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 criminal or just say this is what this so-called jobs act really jump starts to creating a lot of jobs for people who want to turn to a life of crime everybody knows about fraud as this bill is not just you stop they have it is unbelievable it is the wish list of every fraud friendly practice in the world. and the bill will be advertising gold the 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 touting stocks when did we get into trouble with that 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 first 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 the 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 have a coolie talking about there now it was recommended by obama's jobs council which has been led by g.e. chairman jeff immelt and includes one thousand corporate chairman and c.e.o.

is out of it's twenty seven members so what is this all really about you know 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 jumper because he is a former economic hitman and he's author of lincoln economic hitman 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. banks 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 do you sound like wall street starts using washington's bipartisan support for pork or welfare. it certainly does you know and i'm not familiar with all the details of the air but everything that or heard about it read about it certainly sounds like a boondoggle for business and it's kind of interesting because at the same time obama is and many other politicians also pretty much called the stock which is to stop congress from insider trading or using insider trading to its benefit so you get these two kinds of things going on at once which is which is very very interesting and why is it interesting because it what is it represented about where we're saying on the one hand we're not at all 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 compose this. for businesses to deceive us and we're using it

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 broker barons basically are robber barrons so let's take on this issue of robber barrons because as another example of this strand we've seen come out recently say hey we want to undo the subsidies for the oil industries and republicans quickly gone the way of that in the senate but just before that democrats had voted down bringing it forward instead they wanted to move on to talking about postal service reform and obama wasn't complaining too much though 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 if we are at this time when citizens united is being withheld you know there's

a huge movement in the united states to to have a. people amendment and basically do away with the citizens united ruling that ruled his corporations a tremendous amount of power who are primarily campaigns it's an election year and the am citizens united stand so these corporations 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 or the fact of the matter is politics today we the people are secondary importance to the big corporations because the big corporations provide the money for campaign finance they and everyone knows that the campaign with the greatest finances has the greatest likelihood when it weathers for the presidency or other 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 paper example and a magical world we did change their lives and we made things more fair we do live

in a global society today so when business is just go to where it's more business friendly . businesses go there anyway if you look at it as palaver moved to dubai and you know today most businesses don't look at themselves as being american businesses but they want to start but they have no loyalty at all to the united states they were all over the world and they follow whatever laws best suit but certainly the mad states has the largest market in the we're 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 have the most friendly laws in the united states you know they it wherever they go they're going to want to have laws in the united states that favor them and i think we need to understand is that we the people must speak up we have this corporations right now are there to serve that infamous one percent they're not there to sort of public interest we need to

go back to the history of the roots of our country where four hundred years corporations could not get charted in the united states unless they could prove that they're 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 back a decent rate of return to their investors we need to come out of this idea that the corporations are there to serve us we need people that are not just there to serve a few extremely wealthy robber barons but how do you i'm do that because it is not only these these are very powerful and trying to have a lot of employment over the political system but also if that's to the very root at how the business model is conceived have been tied into us and any better concert i can still believe you are absolutely right but it has always been about 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 in other words makes a profit but he also takes good care of his customers and his employees he has good

health care insurance pension funds for retirement and he's a he's a good thing. us a good citizen in the communities where his business operates he's willing to pay good sufficient taxes to support the community and he goes beyond that to support schools to build schools to pay for recreation centers for children the sorts of things you notice that i'm using the term he and speak as let's face it most corporate executives today the most powerful ones are mad i think we had more with inmates actually we may have had a i don't wonder to a society we have not seen that sometimes with women in charge of procreation since that's because this is true men don't smell mentality out there that says he is a son of my indigenous friends say men steal nests women build nests and i think we need to get more into this mentality that we need to build goodness and these nest need to be for all the people for we the people and go back to that basic promise yeah you know in the united states in the first hundred years of our history i hear

what you're saying but we just also talked about how now 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 they're based 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 each place where you're doing business becomes that location and this is always been the case for example that the new car manufacturers back when i was a young man were in detroit but the dealerships are all over the place and the dealership and the. tremendous responsibility for that community and overall the detroit couple days to responsibility for their employees wherever they were i think we need to look at that today so a company that operates in one hundred treasures its branches in those countries meatspace responsibility in each of those countries and countries where it has made

their factory plants it needs to take good care of its laborers in those countries give them health care different insurance give them pension make sure they have decent decent incomes in the countries where it's just selling its goods and doesn't have the manufacturing plants it needs to make sure provides really good good goods and goods services and provides a really decent market for those who are trying its products so this is you know it is part of this. business for locally and also act locally a chance of 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 but when we come back we will have more with former economic hitman john park ends and still out here dine and dash saying motorcade style we'll give you our three cents how much of what money the police say obama owes them but first your closing market numbers.

it's. free. free. free free. free free. free. free. free. for you to see our teacher.

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 here 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 i partisan support these are the bipartisan achievements the ones 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 interests 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 you know 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. rice it's a great question and and i think that's very easy answer the masel easy to implement to that end 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 often when out of republics and corruption in these countries in a way i think we were the biggest banana republic out there. we've kind of got a real monoculture culture economy that's pretty much most on the military to allow to very bright and then providing

a bunch of junk to very rich people and we have tremendous corruption in this revolving door thing that we have where you can you know the the the watchdog agency is over the oil companies run both home or economy 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 teletext is extremely limited because of this corruption and because of the money politicians received so we need to get our luggage 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 rivers were terribly polluted we went after the corporations we refused to buy from corporations that were polluting the rivers until they cleaned 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 concern as a consumer every one of us has a tremendous amount of power whenever we buy something or decide not to work

testing of ballots and that's probably more important than the ballot we cast maybe two years or four years of the election. 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 but 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 in a product i sent an. can a key in say hey i love your products i won't buy them start paying your people in indonesia you know elsewhere 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 them urging economies we see consumer class is growing and that's where a lot of these multinational 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 well 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 but we get to also remember that a lot of the other parts of the world people are taking action europeans have much more proactive than we are he really been citing g m o's in their food group success the leader they've got another battle coming up now but they've been pretty successful and i travel around a lot of 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 seen people rise up and taken control we're even seeing in places like russia where they're demonstrating it's a herd of that's a while ago so we're not alone in this and i think people really take to see the united states and as the leader so we start to really go consumerism and consumer movements the rest of the world will fall or 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 and 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 my colombia and also that. gary i believe i'm wondering if you think that anything could change with the world bank well absolutely the world bank has a mission statement that says its job is to reconstruct at a state parts of the world but then that mission statement was formulated back at the end of world war two and did 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 soviet union has pretty much collapsed in terms of the huge economic power but in that process the world bank became very big france

the corporations it can exert a lot of power over these progressions i have hope for the rollback i wish you would step back into its mission statement and do what it's meant to do which is to to reconstruct goes through parts of the world but let's face it our corporations to police huge role in that you know we've got people starving throughout africa how about getting on something or and dole and kids sometimes company companies that have been destroying the earth's. a recall for resources which i'm not so fertilizers get into science better ways for starving people to grow food more efficiently storage and distributed are the great bulk of the great solution you propose i wish we had more time to talk about it but i'm glad you've given us a little bit of hope here and that was john perkins i wish we had more time i'm going to leave it there part of a it's a calmer economic hitman thank you. thank

you. all right let's wrap it up at least 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 bet you can guess with it he complains about new government regulation he's been this has been 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 simon's complaining listen to this. i think he's become what club you for us work or maybe yeah he's a warner you like. all right that's not a good thing or you get copies of it and then all the stuff that the government means oh. i mean just to. 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 the scene with him listen to melissa lee. why can't he speak out without being a why are we 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 don't need to have the courage appetite to go out there on a limb and express and that's something that other other anchors were saying too so jim cramer says jamie dimon the whiner which he is come on and everybody jumps to jamie 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 are to listen to inform selves obviously pump and dump of the most elite. pretty much or apologist for the banks so it's not even just about every time who and i just want to bring up the along this on this note i caught this picture that was chosen by

the wall street journal to illustrate a story about goldman's newly director they put the story of him with a nun ok are they buying into this doing god's work thing i mean this is not just a p.r. thing they actually do 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 have a holy decree and that's just not for profit any kind of legal legal right well let's move on because decree and legal right let's talk about president obama's right is to overcharge police so to private campaign events last week president obama had a seventeen her motorcade secret service police 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 costing them thousands of dollars and have not been repaid your name prone and we still have. two thousand one hundred dollars. 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 what is that 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 of local police as the police you have created these gangs of people wore lead allegiances only the federal government as long as they can provide the money once they can they're going to go rogue are going to start talking off every different principality i mean it's a polity you know this entire united states and you want to. abolish the stunning and dash if you 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 i don't question here what kind of message is this singing have fun at work day but work like a dog ok are people that dumb working like a dog is having fun at work bugs are lazy ok. i don't know what this is about working like a dog this expression right goes over near a lazy dog to sit on the sun ok and there are some like a working industry because they're great dogs either way i don't have. the time you know does not mean you know i was away so i feel good reporting it's had there that's not my dog is a pretty poor guy like cripples if i had a dog you'd be a cripple now ok i don't think anybody care about the guy or don't is 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 at lauren lester give us feedback on the show at youtube dot com slash capital account from everyone here thanks for watching and every.

wealthy british style. market why not. find out what's really happening to the global economy with mike's cars or for a no holds barred look at the global financial headlines tune into a report. you know sometimes you see a story and it seems so you think you understand it and then you've lived something else and you hear or see some other part of it and realized everything you thought you don't know i'm tom harpur welcome to the big picture.