just saying we told. her what you could trust because now if you don't like to go talk to me about. seven thirty am in moscow these iraqi headlines greek coalition government leaders failed to agree on a package of spending cuts dealing a blow to the country's prime minister who says the measures are critical to restoring the country's stability. america says its largest business delegation ever to egypt with skeptics claiming it's a move to cash in on the aftermath of the country's revolution. russia turns eastward at the apec summit economic and political ties with china growing stronger which some say could unnerve the u.s. and its moves for regional influence. almost a dead heat between republicans and democrats in the race for the white house with both candidates looking to set up our platforms critics call remarkably similar.

coming up peter lavelle examines of capitalism is facing a crisis the first part of apec c.e.o. summit panel that's next. download the official application so choose your life stream quality and enjoy your favorites from on t.v. now a t.v. is not required to watch on t.v. all you need is your mobile device watch on t.v. any time.

a hole only welcome to this important debate on whether capitalism has lost its compass and i would even say moral compass this is the first time russia has hosted the apec said summit it's an organization representing big and small rich and poor countries from the asia pacific area more than twenty world leaders are attending this annual event including presidents from russia and china the u.s. secretary of state was just here and prime ministers of australia and new zealand also here in what about stuck in russia's far east is nearly one thousand business business executives and entrepreneurs' to discuss the important economic financial and corporate issues facing this region and the world and perhaps no issue is bigger than the current state of the global economy and whether capitalism has lost its compass its moral compass let's keep the moral element here i think we all can count so that's what we're debating and i have a great panel right here with me arguing that capitalism has lost its compass

general and there he is the former c.e.o. of the global institute for tomorrow and he's author of consumption omics asia's role in reshaping capitalism and saving the planet. next we have frank you can rictor he's a german entrepreneur and chairman of the russ this group a zero based international organization on the other side of the coin capitalism is just doing fine at least as an idea jim rogers at the end of known distinguished international investor and author of a gift to my children thank you to explain the title of the book and we also have a volley in it here is the. and plus group c.e.o. in one of russia's largest diversified industrial cunt conglomerate so please welcome our panel thank you thank you and i to take a poll here and i want you to be honest and i don't i really don't want people to stand in the middle raise your hand if you think capitalism is lost its compass

raise your hand if you think it's lost it's come ok does that automatically mean all the rest of you think it hasn't raise your hand if it hasn't lost its top ok jim i'm sure you people lost ok it's not scientific but it looks like eighty percent believe that it's still on track and twenty percent of you don't believe that capitalism is lost it's come so jim you say it hasn't why. capitalism is so far the best economic system which has been developed it has many many flaws there's no question about that but everything else is even worse everything else that man time is ever trapped the problem peter in the last few years is not so much capitalism at least in the west in the west the governments have gotten in the way and the governments refuse to let people go bankrupt so we don't have to we don't have pure capitalism that's your problem right we don't have we turning don't have tempers and we have

a governmental and capitalism without bankruptcy is like christianity without help they've got to let people go bankrupt and the government keeps bailing out its friends what happens can wait a minute here and playing up with this goes with the debate going on and they bail them out. well i live in hong kong so.

the stuff you want out of our. perhaps like that you can live something for children and think about the good things we can do with one created but this is the checks and balances in the future now there may be more established in places like united states which but less established in places like russia. secretion and creation of businesses which can care for those consumers some consumption is good because it can create businesses that build take care of those consumers fundamentally we're talking about the way to develop the will to develop the free enterprise and focus on individuals does not surprising visit where the vice president potential as president the candidate for republican nomination is

a key in the middle and right and right because this is this is the center of of what america used to be seventeen used to be frank. capitalism definitely lost its compass feature into it and i would see capitalism is here to stay but this is a team capitalism and your penis you know i based incirlik and when i came here to asia i feel a bit like an outsider a lot of actually europe bashing going on actually you are just it is why i think that to look kind of schools why this europe bashing is going on a lot of dashing of asia by europeans and we shouldn't bash anymore but it was awful in europe in the united states in shop stop lecturing the world as well you know you're right for you should all the time but you know in this piece in. my language we're going to be back but some people see we are bloody capitalist our banks are destroying our financial system. a lot of clues in the system but it's

not a school of thinking people see we are not capitalists anymore maybe you are. we all socialists or even marxist europe usually only works thirty five hours per week we have seven weeks of vacation maybe you're complacent we're complete and few choice of course we like to go to our mountains and lakes in what we believe to do is to reposition capital smith to preserve capitalism but we have to get rid of the short term profit take it with to recreate a link between the social the public and the capitalist short term like we are germany is going to people who fail should be allowed to fail and go bankrupt what's happened now in the west every time somebody gets in trouble they call up the government save bail me out safely save me but they captured him and nothing and after jim they did that to the banks they did that they didn't he didn't even have banks if you consider the article the only one of our architects preschool bankrupt we're not going to remarry bankrupt like i say why in the united states

the government bails out the banks for instance and it wasn't just the banks the banks are us coming out of a failed at least for a sham and keep going keep going tell you why i think. first you've got you have to provide for that wisconsin that's not socialism agenda where you have to to promote relentless consumption you have to do two things you have to control constantly other prize externalities resources and underprice externalities when you do that you have to do something else you have to fight any attempt at regulation this has become the mantra of business fight regulation this is not that healthy that regulation is no good except that when you eventually get to the stage where there's interest. at the moment that you have something else that happens you begin to have this interest usurping the state. the state it's a good one a very that we're in. some ways distinctly in all this with the state of being one

of people both sales lot of people say that the big capitalists and that's what i'm going to call them is captured. the state is in the wrong place and shouldn't be where it is because they're currently in europe the problem is not since this was underlined companies the problem is a bunch of government officials who couldn't agree on a single thing right. let states lock my door into the affairs and consumptions ways it was good because it was the size of supply and demand equation you need to have to market to create supply not to create supply you create companies that produce products of people who consume and let's say enough about them do you know anybody who didn't want a better standard of living for themselves for their children and grandchildren you know any human being in history i has i want to live there i think that's a false question of course i don't know anyone who knows what is entitlement to you know free just to buy another house. instead of living that's not that's not the point i'm talking about i agree they should leave for your good i think we

constantly use these cliche terms i'm sorry to suggest that anyone to say that there must be limits but i want to talk about the asia pacific region that is the way five billion people can live like americans so we're going to have to think about it very differently one billion asians getting richer has already rocked the world and how does it will do him a thing thanks to circulation and if this franchise is the majority i am saying if you want to address the poverty issue in creation for stability we are going to need to try stick still so your saying that the one billion asians should always be poor because you said they should be poor your your i have to say you oversimplify just got through saying one billion asians can i say remove one i don't like you i'll start with you.

it's easy to just six fifty two feet. i said to execution dates in believe me or just a one to two the execution date is enough for anybody to go through more life tests . you know more than fifty percent of the people who are if you didn't texas or not . why you know live in north darfur is larry oh. this is like you know we execute our convicted capital murder we have the highest execution rate in america we're not afraid to do it we do it well this becomes a point when death becomes. all i ever knew i hope. i

will get a letter your dad is due to be executed next week then as a fierce scary moment for you to know you can loose here i want to be appearing at the in a manner of minutes and that's the time to go. and i would lead them into the to the best chamber. come and stay until after they were dating. well see british science. sometimes. markets. find out what's really happening to the global economy for no holds barred look at the global financial headlines you need to concentrate porch.

and this is typical of this sort of a reaction people dumbed down the conversation this is dumb dumb conversation i have not said people should be poor the reverse will happen because the majority of asians will be left behind and if you want to get the majority at a minimum level and car ownership is not the basic rights of life i'm sorry i want frank to germany and we got to singapore people don't get european of capitalism i think that's maybe the first thing to do will you let me tell you let me tell you you know i'm a i'm a liberal not indian maybe american definition but in the old british tradition in the last year or so actually i looked a bit wafa sultan i think we have to go against speculation speculation is really at the heart of all this market failures happening right now think about the whole scandal in europe right to european matters we know that is my program line more ok

ok this is a bit too that's good and you know what a lot of flights in the air and what we really need to do is to think about the public get on the noose of course to make money you know that's we all make money and it's a good thing we have you even spending this money and it's good consumption but we have to say goodbye but all those people with all the chops this to create employment fifty percent of unemployed spanish people it's really a shame you know i'm really it's awful and maybe what we need maybe let me know what do you sing to me. we need better governments in europe usually most governments are in the pockets of the banks and tom and i think that the radicals that head to head for a civil discussion really at the moment we are in the country which was seventy years tried to implement the very simple to that everybody equally poor and a little bit a little below average i'd never said so please be very careful because that is a simplistic you know but when i was missing what you did say was does one say you

did say that you and mao tse-tung and joseph stalin should decide who gets why did you say that. but it's a great line. please be very clear this is the oversimplification that takes place the twenty first century cannot have this rhetoric of the twentieth but the fact that because their economic growth will last ten years primarily because come this million chinese move to one of the villages where the leave them agree to the city and they now want to live with less they want to have life they want to have a car so i think there is a perhaps in the car that will drive the gentleman i'm going to be a bit authoritarian is my pen ok i want the audience to produce paid i want questions it's go like with what jim rogers how to plan because. when they decide well disparate. parts of put although there was huge wealth disparity under the communists did you ever come you're not old enough to remember but if you had gone

to moscow and leningrad i know it was the beers you cannot believe the disparity most russians were standing in queues all day long while the leaders of the communist party branch have had twenty five and now he had a hundred cars he had one hundred automobile ok thank you talk about how to leave them in it's not about capitalism in russia if you have a critique of that it won't bring in lenin because that's long gone and nobody wants that again nobody ok i enjoyed and. i'm a communist the boy educated in china is the definition of capitalism sure ok so i can. bring back to my digital comics who in question who wants to just don't want to feel the cold i was told i would give me the definition but i'm not life always i want i can ok want a definition from both sides both sides i want to feel that i'm going to approach that's good for grazing i would tell you that in china you're the best capitalist in the world even though you call yourselves congress. right on this side of the

panel so that's not a separate issue of capitalism i want a definition from a wise man what is capitalism but if you go you go what is happening now ok i think you know we need to want to nurse open or squeaky wheel to. open the heart of capitalism making money right in the things we don't need less capitalist but more capitalist in the ideal world everybody should be a capitalist not depending on the state but unfortunately they're not living the ideal ric's so i think capitalist should be back to society should pay taxes to secure a very traditional i don't mean you're going the route of all those trying to hold things some points of cornell's of trying to make money and well to start the model telling them what these should be doing and so there's a lot of them to do with the bus which creates companies jobs twelve ok as long as more and more people behind us always keep the moral compass here that i have and i answer your question very briefly again i will try and answer it by saying this is not about whether we have a new definition of capitalism the definition from

a chinese point of view i would say one point two billion people in china cannot have access and dream of having a car that you and i know that i go to time listed as a great leader in the fine story it doesn't capitalism will be how do you provide access to the most basic needs of people which is food water housing public health and education all right we have another question question a. what's the alternative if where is saying capitalism is lost companies wanting to rank first go ahead because you get a traditional view it's social capitalism right so we have to get back to the site we actually begin to think i'm trying to run but i think i disagree on one thing the chinese should own their cars they know that to do it because you know we come because every one point or is going to like that's. called the americans the russians or the chinese shouldn't well you're living on the populated another question here over here a very quick question how do you name your said john. how do capitalists balance

the confrontations with corruption good short question good when jimmy body has corruption where christians buddhist socialist communist everybody has corruption now yes they should all go to jail if you ask me they had lots of people in the street and then the banking industry should be in jail right now the president of the new york stock exchange should be in jail right now but. that's. what we have a young lady a parent could figure out a way not to. have a beautiful russia the i mean i think you want to ask and ask the question go ahead when we look at capital as a very traditional model of capitalism where the company is responsible for its shareholders now and the car companies and not just to show that we have the concept of corporate social responsibility should we change to a mode of capitalism that is reliant on the corporate contract where a company is all stakeholders involved and that would be sustainable. i mean i

don't twenty years with some of the biggest companies in the world in corporate social responsibility it's all very good but much of it is flimsy it doesn't really deal with the core issues i've talked about that essentially companies need to produce more to produce more they will need to use resources externalized costs etc much of corporate social responsibility has become a p.r. exercise and flimsy argument so i don't think that's really the reshaping of capitalism on this side of the panel where i was just going to say yes that's wonderful everything you just said and most corporations stay in business have to satisfy everybody but in the end somebody has to pay for this the main from it is a form of how it's. one to. hang on one second as someone else said the problem is socialism you eventually run out of other people's money somebody has to pay for this. ok yes the taxpayer will pay for this how how you

got a question right here we're going to go to the break when is that right there when i was discussed voices of future russia my question to you familiar with greg smith resignation letter to the new york times from goldman sachs in the letter he briefly describes the money is more important than clients in the bank business and do you think that that's the case with capitalism in american other parts of the world people put money ahead of the consumer i'm sorry this is a case of the failed model of the investment banking because if they wanted more money i would think you're very close so. i think it's to move on i think we need to move away about from a dozen banks i agree i mean that's just one element the discussion we should be having is how do we should we shape. capitalism to fulfill the needs of a constraint planet not an environmental discussion where the greatest proportion

of the population are going to be living in the asian pacific my argument is the current month of externalizing cost and pricing things down will not deliver on that prosperity which we want to share it's not about c.s.r. it's not about investment banks it's a much wider political question how do we deliver that and that is the discussion because it's a political discussion from moscow based on entrepreneur are we not confusing confusing terminology actually capitalism in the economic system based on private ownership of means of production and what you're referring to is really is are matters of spirituality and moral duty why are we burgeoning in an economic system with these with this liability should it not be the other part of life and social activity that should be taken care of the spirituality and morality whatever you can i. have to agree with jim is the best system there is for what it should be

which is an economic system it's a system of how my argument is purely economics argument about externalizing because i was not talking about morality of religion at all and this is the problem the moment you talk about something against the status quo then you must be a hippie you must be some angry person or you don't understand or you must be on a higher moral ground most of this is not about morality it's about pricing capitalism as its side stands today thrives on underpricing my argument for asia is we need to reject this will need to reshape it if a compass is to be found for capitalism it will have to be made in asia there's a good point genuine interest in the center and it's clear you don't understand you're right how are you going to prevent one billion asians from having a better standard who's going to decide what is a better. just tell me what most people want to lexis if they want to so i'm not trying to say i'm against that but i know i'm saying but

a better standard of living is not a car ownership you and i live in asia mode asian cities need more cars like i got last night most patients are different enough that it would result in a visit they want because they want to they want to they still have it it's a huge said they can have it no. i'm not saying it i'm saying the reality will be they can go together because they can of course the can yes they can i suppose there's a site for them right out yells the consumer is available at maruti we have to talk about maybe that american what have you on mars but the asians will have no idea marriage we have everyone in the world will have a car but the americans if they continue down the path they are now frank we have to talk about morality i think i like the of australian friend to move from shareholder value to a speaker level you including everybody today actually president calderon talked about principles and he talked about principles in the governmental context but we need also principles and drilling of on benefit capitalism and if we stick to

principles to go today to washington d.c. or to profit you feel i feel those little screw ups actually we call it corporate africa see all of it. all in a hole in your pocket maybe there's a certain void so i think it's pretty important but we're really going to happen so if you tried to regulate big businesses small businesses and a business to install a lot of things on top of them which tried to extract money in a way which is which is not in the market system let the businesses don't let them bait texas and let the government distribute the money to what they were unprivileged isn't that what the state is fundamental to making the rules otherwise we have chaos i mean let's take car ownership i'll bang on about cars the roads are not made by the car companies it's made by the state. i mean will and all of the is all done by the donald all right dumbass j. all right i need to change gears here ok i think that we we finessed this what is wrong with couples and.