danger stop and think about where the info is coming from that's going to do it for now we will be right back here and a half hour. wealthy british soil is not. the time to write a. market why not. come to. find out what's really happening to the global economy with much stronger or no holds barred look at the global financial headlines tune in to conjure reports. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought

you knew you don't know i'm sorry welcome to the big picture. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are your headlines for thursday june twenty eighth two thousand and twelve european leaders hold the umpteenth e.u. summit to try to save the euro zone deemed by some in the media at least as cool roof scholz so will anything come of it this time not according to our get our guest not a chance u.k. independence party leader and member of european parliament nigel for raj will tell us why and fingers point at germany to save europe but the core isn't immune to the problems of the eurozone in fact new figures show the number of people out of work

in germany is creeping up by seven thousand in june and pollsters find support for the euro may be fracturing to the core and. fact as of air time it looked like germany was going to exit the euro the euro two thousand and twelve at least and we'll look at how this all impacts the crisis and the supreme court upholds the health care law in the u.s. advocated by obama known more commonly as obama care of corning is the us president . today's decision was a victory for people all over this country was. but who is it a victory for really who really won big today we'll talk about it let's get to today's capital account.

another in you some it is going on in brussels today and tomorrow where leaders will try to solve the eurozone crisis now they haven't been successful in doing so over the course of the last eighteen summits so what you may ask is different this time well now leaders have this plan for a so-called genuine economic and monetary union it's coming out of the president of the european counsel's office that's mr herman van around boy it lays out building blocks for fiscal economic and banking integration but who is herman van rompuy exactly well you're not the first person to ask the question that i want to know when will the last is who owe you the good of you know what are you in europe would have ahead of you. nevertheless van and is friends and some

elected leaders are trying to hold the currency union together as support fractures around them they're trying to hold it together despite protests bailouts the election of neo nazis the deflationary spiral down of the condom ease entered up of bond yields in places like spain and italy and nigel farage who you just heard from has been very frank about the possible consequences he fears take a listen this project could even reach. socialism in europe we'll start prediction more on that later first does the leader of the u.k. and pendants party member of european parliament actually expect any earth shattering decisions to be taken during this summit does he expect anything of substance to come from it that can change the current dynamics in europe

a rising borrowing costs for the periphery and the possible disintegration of the union well let's see. let me tell you what will happen tonight tonight later on after the twenty seven leaders of had dinner with the bureaucratic bosses of the e.u. they'll be a press conference at that press conference mr barroso or mr van room for the two an elected bosses of the european union will put on the table a paper a paper that suggests that we move towards a common european treasury a paper that suggests that the european union becomes a debt union and either mr barroso almost of a room boy all both echo of each other will say that it's but that it's this story document that has been a wonderful meeting that europe has made a huge stride forward and that the eurozone crisis is near the end that is what will happen and you know what behind that they'll be leaders of countries from northern europe who will say we don't subscribe to this and there will be leaders

from southern europe who say we cannot accept the austerity package i believe there is absolutely nothing that will come out tonight from this summit that will move us forward by one single inch so more of the same that we've seen from any number of these summits where nothing has come of them my question about that is this is situation where i don't know perhaps the media circus and the financial market anxieties surrounding these euro zone ministers and politicians is making it more difficult for them to deepen integration or have they not been addressed enough in actually exploiting a crisis this day were an excuse for further union for those who wanted. well there is no doubt this is the birth of the european project over fifty years ago they've always sought to use any crisis as an opportunity to deepen integration and they're trying to do the same thing again and that is what mr van ryn poised papers a night proposes to do but there is

a problem and the big problem is that the electorates of europe have woken up to what the project's about the germans the finnish the dutch they do not want this to become a debt union they don't want to sign blank checks in perpetuity to southern european states whose economy is are not as competitive as theirs and that is why you're seeing this resistance around the merkel i mean she believes in this european project she said two weeks ago we should give allegiance to the european flag while in my case over my dead body but that shows you that she believes in the european project but for her it has to be a german style european project or she will get thrown out by her voters next year so we know the decades where the bureaucrats and the leaders of countries could quietly meet and push forward a project of european integration are over because the electorates simply don't

want it and actually what we've got here i think is an unbridgeable gulf between the culture of northern europe and the culture of southern europe and what we do at these summits and remember this is summit number nineteen since two thousand and nine all we do all we do is kick the can down the road there's already talk of another summit in july we reached no conclusions the markets increasingly lose confidence and who can blame them and now we see spanish ten year debt italian ten year debt of ring around this sort of critical seven percent level and the whole thing is headed for a gigantic bust well as there are no yield if there is one thing. one objective and clearly visible symptom of the problem with the eurozone it's in those rising spreads you're talking about between the surplus countries and the periphery and the fact that countries as large as italy with public debt loads exceeding two trillion dollars are on the precipice of being priced out of the credit markets and

spade with this seven percent yield mark again that are considered unsustainable do you think the rising borrowing costs for italy and spain are of adequate concern to policymakers. well remember there are seventeen countries that have mistakenly joined this year so far five of the. of the legalities but the spanish buyout was perhaps only a fraction of what is genuinely needed if the italian buyout comes there is not enough money in europe to bail out italy which has the highest level of debt in the one exceeding two trillion as you quite rightly put in your question i think that the markets are telling us that there is a total loss of confidence the policymakers the people really in charge of this appear to be blinded to the whole thing i mean mr g. twenty of washington just last week appeared to be living on

a different planet you know you can only go on kicking the can down the road for so long i believe there is a very real and genuine risk that over the course of this summer the markets will overwhelm the whole of the european system while a prediction there let's talk about though the plan of those people on another planet that you're talking about the plane you've referred to for the euro zone released by the european council president's office ahead of the summit for your friend mr herman van around boyd now there were four building blocks late now right go ahead with great makes we really. so he laid out for building blocks for further integration it includes proposals such as european bank deposit insurance and debt sharing but interestingly the one that really stuck out to us is this fourth building block which is ensuring the necessary democratic legitimacy and accountability of decision making within the e.u.

based on their joint exercise of sovereignty for common policies and solidarity so what does this mean do you interpret this as an attempt at further political integration. it's just called me to speak isn't it it's the old it's the old the virtues of the language to be the very opposite to what the truth is you know when vadra employed talks about political democratic support for political union it's laughable he doesn't mean it they treat democracy here with absolute contempt the european union as it is is not democratic it's actually fundamentally anti democratic and what they're trying to do tonight what the room point i were trying to do tonight is they're trying to get twenty seven member states to give up the ability through general elections and they're having new presidents of new prime ministers from deciding their own budgetary rules these are very very bad dangerous

people we're the worst people we've seen in europe since ninety forty five the fact that you put in this document under as you quite rightly say point four of the the sop to everybody pretending that it needs democratic legitimacy frankly it is farcical well and is saying the opposite of what they mean it's very nine hundred eighty four to conjure another near or literary reference but just on this note to be clear when in this document then report talks about the close involvement of the european parliament and national parliaments that are essential to this democratic legitimacy are essentially is this document calling for kind of a broader new electoral process and you why i process where the european parliament has more power over the national governments. well they had the chance to do this and i remember these guys wrote a constitution for a political europe ten years ago if ever there was a chance to democratize the european union that was it and if they'd done it and if

they'd put it to the peoples of europe in a free and fair referendum i think people generally would have voted for it believing that somehow now europe have become progress. even forward looking they chose not to do so and i repeat the fourth part of this document the mr van room poise producing today isn't genuine it isn't real he is saying the very opposite of what he really intends and believes there is not a single proposal to democratize this european union not a single promotional to include national parliaments anymore they frankly are trying to hide. by this argument of democracy but i don't mean just to play devil's advocate not to belabor the point i don't do you think that all of this talk from van rompuy about democratic legitimacy could be because he has a chip on his shoulder or a complex that he is trying to get free from for all the things you've said to him over the years mr fair raj about how he wasn't elected and no thank you. but i'm no

good may well i must say i did laugh very loudly at the washington g. twenty meeting when i was up. begin to the budget analysts like you and he said we would take lessons in democracy from you people spoke the other leg of the. should i have your rights are you alright i have been teasing them i have been taking the mickey out of them for years i'm actually right across europe people agree with what you know they do agree with my point undemocratic europe is frankly all full it's a return to some of the things we saw in europe and in forty five they all sensitive to this point they realize it's their achilles heel it's their vulnerability and they're trying to deal with me in terms of rhetoric but not in terms of substance. they'll add more of my interview with leader of the u.k.

independent party and nigel for raj will continue to take the mickey out of any words we talk to him about what happens when poor support for the euro breaks down when everyone's looking to that core to prop it up the first or closing market numbers. download the official location of your own phone called touch from the.

lights on the go. video on demand. world call. an r.s.s. feed now in the palm of your. question on the dot com. welcome back let's talk more about in germany because after all that is a country people are looking to to say that the european project but it is germany

even in the position to well let's say more with nigel farage. i do want to touch on germany you talked about germany's role obviously all eyes are on the court to try to solve this and bridge these gaps but germany is not immune to the problems of the eurozone not at all and just today we had new unemployment numbers out that indicate the number of people out of work in germany is creeping up interestingly i thought a poll suggests germans are more concerned about unemployment then inflation and we know that country's history with inflation so do you think this puts more political pressure on merkel to make concessions on something like euro bonds which she has been firmly against or does this make germany more likely to say hey you know we cannot keep shouldering the burden of this crisis. i'd be cautious about of the opinion poll that shows right now germans are more concerned about unemployment than inflation because actually inflation is not seen by people to be

a threat at the moment indeed in many parts of the deflation is the problem not inflation so i'd be a bit cautious about reading too much into that one particular opinion poll i mean what is clear is that for your average german worker a man or woman that is paying a mortgage that is bringing up children that is being very law abiding and very german in the way in which they are they've just spent twenty years paying for the reintegration of eastern germany back into western germany since the fall of the berlin wall they've paid a huge cost to do that but they haven't resented doing it because ultimately they were all germanic people now what do you say to a country that's just picked up a huge twenty year bill could you please pick up a bill for greece portugal ireland spain and possibly even italy owen by the way your commitment to this is indefinite is it any wonder that all the new german

focus saying we just want no part of this i think what's really interesting is there is a real wake me in germany of a sense of german identity you know you've got to remember that history hangs very heavily over the german people their sense of guilt for what happened in world war two has dominated that country's international relations ever since the new forty five but there is a younger generation growing up who do not feel the guild in quite the same way that their parents or grandparents did and they are saying we want to be a modern democratic country that is nice to people we are happy to be co-operative across europe but we are not going to be the bugs of this game we are not going to go on. bailing out failing southern european countries who frankly should never of joined this eurozone in the first place. there was no fool there was

a very astute politician knows that if she says yes if she blinks and gives in to euro bones she will lose the election next year and i believe that angela merkel will not blink and i don't think there's any chance of the germans dutch will finns excepting the european union becoming a day of all that means is that in the end whatever poil barroso proposed is frankly irrelevant there is not going to be agreement and we are headed. towards a breakup of the eurozone in my opinion ok and that's also a really important point i think you made about the different generations it's something that isn't always top of mind for people definitely plays an important part as you point out i know you weren't on board with that poll you're cautious about about one point i do want to bring up about it the financial times reported on it it showed that if there were a referendum on the euro on membership to the euro in germany today forty three

percent would vote to keep it while forty one percent very close would favor a return to the mark and similarly a very small majority would vote to stay in the e.u. while twenty eight percent would vote to leave and if fifty one percent would vote to stay is that a piece of evidence though that supports something that you've been saying all along and in this interview that that support for the eurozone is fracturing even at the core where this of poor is most required. yeah i mean look in a sense the euro is the embodiment of the whole european project the criticisms that people like me have had for the euro actually are the same arguments as the bigger criticisms of the attempt without the consent of the peoples of europe to form a new state with a new flag and a new anthem and a new police force and a new army of herman van room ploy because all of it and what those figures show you is that right across the european continent from north to south to east to west

regardless of what our political class say the peoples of europe are saying no we don't want this we don't want centralized bureaucratic control we don't want our democracies and our birthright to be stripped away we don't want to be rum by these people who mostly are domestic political failures we actually are rather proud of who we are and what's wrong for goodness sake with having a europe of diverse different countries proud of who they are but sitting around a table agreeing to cooperate you know we can cooperate across border crime we can cooperate on the environment we can have reciprocal deals you know people from britain working in paris and vice versa we can do all of this without the european commission without the european parliament without the european court without the massive cost and bureaucracy and i am not you know i am not i don't see

a replay and please don't think that you know i'm married to a german i work for french companies i love europe i love the cultural diversity of europe but what i'm fighting against and what i'm finding support is growing i don't want to live in a europe of bureaucracy i want to live in a europe of democracy while said real quick before we go in may addressing european parliament you said you feared this project could cause the rise of national socialism in europe now after two rounds of greek elections we have. neo nazis in parliament how much worse do you fear this could get politically in terms of fracturing and the division into extreme politics. if you take away from people their right to determine their own future is to live under their own rules to take away from them that i should say. that you risk doing something that we stupidly did back in nineteen twenty with yugoslavia where we took diverse different balkan states we forced them together against their will under

a new identity and you and i both know since ninety ninety the awful things that have happened as those countries afford to get back their independence so determination democracy and freedom we mustn't allow the european union to make those same mistakes. you heard of mr nigel farage later of u.k. independence party. let's wrap up with loose change dimitri shannon let's bring it back to the u.s. because big day here the u.s. supreme court upheld obama's health care law today here is what the president said about it in a speech. whatever the politics today's decision was

a victory for people all over this country because of this war. is it a victory for the people or is it a victory for some of these medical companies if we could bring up the winners today hospital operators companies that own hospitals medicaid providers also some medicare providers their stock price is up big today up eight percent ten percent you see a couple of them there those are one of the largest hospital providers another hospital provider and medicaid medicare provider so is that the real winner in this in that health care will this health care has never been about people because if they really want to socialize medicine they could actually go ahead and do it with this is with this effectively it's a boon for the insurance industry they're not addressing the underlying factors

like medical malpractise insurance and the costs of unnecessary procedures that doctors go through in order to protect themselves from liability and it doesn't deal with the fact that technologies are coming online the cost a lot of money that people want but that cost money for the service right so so if this ruling was to affect doctors stock price if they had one would doctors stocks be down today doctors know that that would have been already price than they would have been. a long time ago well maybe that explains your current company is because insurance companies there was mixed results with with with docs and insurance companies a lot of them fell today it was negative on no one else as with that there is concern about them dealing with all of these new regulations but for those that piece out the public purse looks pretty good always whenever the government gets involved this country it's always for the big the big corporations that feed off the government purse and off the taxes of ordinary citizens like us guys shannon you want anything before i move on. in the words of vice president biden it's

a big deal. he said that not about this but he said it before nice reference and let's move on speaking of a big f. ing deal sources revealing today that j.p. morgan's two billion dollars trading loss may be a lot more of a big deal than that the new york times citing people who have been briefed on the situation say losses in the trade could total more than nine billion dollars i want to point out though terry bill who has been on this show she had the scoop she reported on it on her website tuesday two days before the new york times f.y.r. but viewers of this show should have been expecting that the story of j.p. morgan's loss would not end at two billion dollars all eyes remain fixed on that two billion dollars trading loss on a position that could grow much larger in the coming days weeks or even months how big do you think that loss could get well it could could easily go to forbes is it

conceivable could be twenty billion you know it is. so this is so whatever nine billion dollars we could've seen it coming and called then it is really sort of morrow so you know i like that we had it on that we're going to ask you to do the twenty billion but j.p. morgan and the media how do you know you're going to want to show them to watch and see and to see that's basically mental masturbation ok it's for if you have no you know better do you watch c n b c s i where you get real information watch travel call or list or no one is better no one does a better unless you want to you know and with that plug i don't even need to go by but it is all we have time for spoke thank you so much for watching and be sure to come back tomorrow and in the meantime you can follow me on twitter at war in this or give us feedback on the show or catch any mistake youtube dot com slash capital account check us out in a studio on hulu and come back tomorrow as dimitri said crawl denninger will be in studio have a great. there

hasn't been anything yet on t.v. . it is to get the maximum political impact. before the source material is born hopes he journalism on us we. we want to present. something else. to.