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Former Ambassador to the U.N. John Bolton argues the EU rescue plan won't spur economic growth.
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Past couple of days next subject the former US ambassador to the UN John Bolton.
He fix Europe's bailout will fail and fail soon here's a quote director from them ask them.
-- not entitled to our assistance when they fail as there in the process of doing.
Trying to rescue the European Union's failed political objectives should be off the table in Washington ambassador Bolton joins us now from Washington DC.
I don't believe I'm mr.
-- -- that we in America propose to have any role.
In bailing out the Europeans and that debt do we.
Oh but we do have a role in directly at least through the IMF where.
The Europeans not having sufficient assets on their own are counting on others you mentioned China earlier the IMF.
And other national sovereign wealth funds to trying to come to their -- in the US share.
IMF assessments is a little bit over 17%.
So one way or the other we are involved are fed has helped them out more directly as well I think it's a mistake.
From a political point of view let alone from an economic point of view OK the big announcement came yesterday they've got a debt deal OK we understand that.
You know think it lasts you don't think it'll look along to correct.
Right I don't think they're addressing the real problem and there's no indication that they're gonna get the economic growth need to make -- now they're begging China.
For example to -- ended there insurance facility.
And who knows what conditions China's gonna try and impose if their interest and at all so.
That debt situation.
That I'm not -- rosy outlook for that debt situation but it is predicated on.
X percentage points of growth for the European economy down the road growth targets -- full bad debt -- currently it is and that well it will fail for that because they've not taken mention of markets when they really get -- the amazing thing about that of two years.
Is the way markets have assurance that they're gonna fix this.
As Merkel and Sarkozy say everything markets respond -- -- wrong with that when they -- -- to raise money today to pay over 6%.
Interest they actually -- the highest in trust to bring in the lenders of any time since the eurozone began that's not a good sign I think.
Now this is that this is much anticipated or at least the result of this auction of these bonds was much anticipated -- it was the first.
Substantial auction since the announcement of the deal and as you rightly say.
The yield actually went up so so much for the idea that people think it always on the road.
-- real reform what let alone some of these other countries you know I once called the Europeans a bunch of pagan loses you probably wouldn't go about fall would you -- managers think all -- -- thinking of joining the presidential company you you wouldn't join me in that would you.
Well -- you're sort of -- right for different reasons but but the point really is for America as we struggle with our own domestic economic difficulties.
Why do we allow the IMF to get into the position of trying to bail the Europeans that you know back in the Asian financial crisis of the late 1990s.
George Shultz.
-- Simon and Walter wrist and wrote an op Ed in the Wall Street Journal saying the IMF should be abolished.
And hardly a bunch are right wingers but but look at what the IMF spilling it say it it's performing -- ways -- was never intended to perform.
Without the consent of congress -- it really is quite remarkable ambassador Bolton holds a pleasure thanks for joining us up.
