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Former Fed V.P. Gerry O’Driscoll sizes up the latest in the crisis over whether Greece will depart the European Union over their defaults.
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Thank you -- Tonight we'll democracy die in the place where was born.
Greece's socialist prime minister said he'll throw out his plans for -- national referendum on the latest measures to bail out Greece.
If -- obtain support from opposition leaders Greek opposition leaders the prime minister bowed to pressure from socialist than Greece.
And from other.
For some this smells like -- road to serfdom to one world government and in the -- on a potential explosion on the streets of Greece.
Here to discuss is former Federal Reserve vice president and Cato Institute senior fellow and good friend of the show Gerald -- -- -- it's a pleasure welcome.
Back to freedom watch.
Thanks for having me -- -- -- why should people watching this show now.
Be concerned about what happens in the Greek parliament with the Greek government and on the streets of Athens.
Well it headed to Greece is a canary in the mine shaft if this is gonna spill over to other countries in Europe in at least one possibility.
And that our banking system our financial system or economic systems are linked.
But also would pay as you saw the previous segment the violence is spreading as well so I -- there's a lot at stake.
How about American banks.
How about the Federal Reserve how about the International Monetary Fund to which the United States.
Makes an inordinately large a percentage of contribution.
You might those be tapped depending on the outcome of this -- financial crisis.
While yes to all all of that as a possibility.
I mean American banks are really exposed there not to do different banks to different degrees in different ways.
And the Fed is already exposed through.
Support to the European Central Bank.
And the IMF looks like it's gonna be brought in the IMF doesn't have any fun to just hedge funds -- the governments give them which means the US taxpayer.
Want you to take off your economist hat and put on your hat as a.
Very astute political observer of the European scene.
As I see this can go on one -- two directions either the federalization.
Of Europe where.
-- national borders are broken down and some central government in Brussels tells everybody what to do or the breakup of the European Union.
Where these countries go back to having their own cash which -- on central banks can print -- well and that instead of -- we -- -- will.
Yeah it could go either way I think it's 5050 at this point.
They've they've started down a road -- -- -- informally either strong countries of -- France and Germany are dictating to weaker countries.
And -- the next logical step -- that is is is a centralized government but on the other hand.
They've set up.
Incentives or created fear in these -- countries it may -- they need to get out from under this.
And of course the German -- taxpayer may want to get out from under it may be -- solvent countries that leave rather than the insolvent countries that we.
So there's a lot of forces for centralization.
And for breakup.
I notice that -- prime minister Papandreou wanted to a referendum and plebiscite perhaps other monkey would be off his back.
And those folks gathering and -- -- one a little maps will be the president the United States I don't know don't know we cannot let the great people to determine their own fate.
Destroying democracy in the cradle of democracy what do you think.
Well that's essentially what's going on the political elites and in Greece and in Europe.
We were fighting over this decided the one thing they could agree on is the Greek people would not settle this -- right.
Right -- -- -- it's a pleasure thanks for joining us.
Thank you.
