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Former U.S. Ambassador to the U.N. John Bolton on the uncertain outlook for the European Union.
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Well John Bolton former US ambassador to United States is -- and Washington.
John.
Europe's debt crisis is threatening the global economy we've got Germany's Angela Merkel blocking an EU bail out is is this European Union gonna collapse.
Well I don't think the European Union itself isn't any danger that I think the Euro -- that seventeen EU countries that use the Euro.
Is going to change fairly dramatically and whether that involves kicking some of the more profligate countries out.
Or restructuring it anyways.
Centralizing power in Brussels for example hard to say at this point but the Euro zone we see today is not going to be here much longer.
You know a lot of people say it's sort of like -- that's sweater with a little threat hanging.
And when you pull -- the entire thing falls apart -- you know.
Because it would be so much resentment -- animosity and it would be very expensive to unwind the Euro.
That maybe all of these countries is just say let's -- we're gonna go our separate ways.
Well I think Germany obviously is the key here I think German taxpayers are fed up with the bailouts to date and I think that's -- chancellor Merkel.
Has basically been saying the only solution is -- really long term solution.
Centralizing fiscal policy in Brussels are we gonna have a currency it be nice to have a government that sets.
Fiscal policy to go along with -- I think that's gonna cause enormous part burn in a lot of other parts of the European Union and in any event.
It's not gonna happen any time soon enough.
To stop the continuing financial.
Catastrophe that's unfolding here.
Ambassador yesterday.
Sarkozy said he would stop trying to pressure the ECB -- the printing money Angela Merkel is against the Euro bonds they gotta come up with cast from somewhere and has been a lot of talk about the may be China had ponying up some money.
Russian given up some money.
Are we entered into possible that we can answer to some sort of new.
Cold War of economics and other -- -- to these countries and -- raise money what kind of pressure would have put on America.
Well the Chinese have already signaled that any interest they may have been investments in eurozone sovereign debt is gonna come with a political cost to it and that's a very significant potential development I I think the Europeans are leery of that.
I think what they're gonna try and do is get the I and they have to come in and take additional steps I think that will run into significant opposition in the US congress.
I really see the EU's maneuvering room here politically and economically as being very limited so so my advice for what it's worth is get out -- European sovereign debt.
Get out of equity holdings in European financial institutions rebalance your Euro portfolio.
Anybody who's looking at what's happening in Euro in Euro zone territory today and is not taking those steps frankly deserves what they get.
What's -- -- -- here ambassador violent riots in Egypt dozens of people being killed the middle east of course still erupting.
What does this mean for us in fact as -- speak we're gonna have we'll have a live shot.
Egypt right now -- to -- square in Cairo.
What does this all -- for us here in America.
Well I think it means decreasing as strategic stability in the region and obviously in Europe in Egypt in particular.
You know the demonstrators here are are really playing with fire the is this so called pro democracy.
Students middle class people and so on and yet listen to what they're saying they want the military to appoint a civilian government.
To their liking but they don't want to hold parliamentary elections on Monday I mean this is a dangerous game here.
To say we want civilians but we don't want elections because in competition with the Muslim Brotherhood.
If it's -- people you can put into the street at any given time the pro democracy forces are gonna lose out -- that kind of confidence.
Ambassador John Bolton thank you very much a lot to talk about we'll have you back real soon thanks banks.
