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Is There a Lack of Global Leadership?

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    Eurasia Group President Ian Bremmer on what is needed to improve the global economy.

  • Duration 5:29
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The markets are reacting daily to the financial news out of Europe will Greece leave the eurozone will Spain need a bail out.

What will the European Central Bank do all these things affect us here in the US but so don't -- to know exactly what's going on or maybe they don't care.

Eurasia -- he's the president -- he's the author of a new book every nation for itself.

Winners and losers and AG zero world in -- here exclusively to talk.

About his G zero theory welcome to the -- -- is easier.

It's a world without leaders you've heard of the G-20 we have all of these eating not take.

Heads of state get together around these big circular tables and then they leave and that's true whether you talk about climate or you talk about -- -- talk -- monetary policy stimulus or bail outs.

They do not agree they aren't prepared to take we've.

Saying they don't leave or they don't get together and form a consensus I mean are they -- their own nation and not just getting together as a group what do you mean.

Well it has a lot of leadership of individual country some effective some not so effective but what we're not seeing as global leadership -- for very long time the United States was providing.

Global leadership WS is still superpower US still has the world's largest military we're not prepared to provide -- kind of global leadership as the world's policeman.

Or -- the lender of last resort or driving globalization we're not prepared to do that the way we have over the past decades but no one else is either so -- -- -- he's here.

But what people say consensus building this kind of catch phrases to -- it sounds like it's in very short trip from there to imposing your own belief system and other people whether.

You even when it's for what you think is the common good whether it's democracy.

Or you know I mean I don't.

What -- right and we've done a good job imposing our will on lots of countries around the world for many many decades and some would say that's a very good thing right and and Europeans generally agreed with us the Marshall plan as well -- or do you think maybe not everybody out there that that's certainly true that after World War II.

Marshall plan.

We imposed our will on the Europeans we built them up MacArthur in Japan we imposed our will on the Japanese we built them up and together.

We had things like the IMF and the World Bank in the united nations Security Council all of these organizations that we US led.

And that it was US leadership was our values and priorities but it created a global market system.

That's gone.

It's gone as of 2008.

We no longer have that global consensus.

Led by the united and we have the European situation how to -- many things and that the Europeans as well a one way that the European situation is very different.

That used to be that the United States if there was an economic financial crisis US would take the reins and say okay Argentina.

We're gonna bail these guys out because otherwise it's a problem for the international community now secretary treasury Geithner.

For more than happy to get on planes and go to Brussels and go to Berlin and dispense wisdom.

Provide advice but we're not writing checks we should be writing checks and we're broke we have the money for that why why should we be -- -- -- check I'm not suggesting we should I'm saying we won't.

And the Chinese from the French -- to the Chinese to have a helping sell the Chinese when -- in other words.

Historically.

The NC EO wonder about money right you're trying to figure out how shall we should invest.

Historically was important to know that if there was a financial crisis was very -- with the US with a lot of other countries we're gonna band together and provide leadership.

What about Mario Draghi today's standing up -- saying that you know he's going to keep the Euro together provide whatever leadership that is -- Germany it's in their best interest.

There and they're trying to pull the whole thing together -- you think we need to be -- -- I I think the we whether or not we should be.

We won't be in -- -- was there's no one remotely electable either Democrat or Republican it is prepared to say that we should write checks for the Europeans in the same way that they wouldn't say.

We should be fixing Afghanistan where are fixing New Orleans that's just a reality you might be an international you might I don't really care what you preferences are.

My point is we need to know is talking to investors what's going to happen.

What's going to happen is Mario drug is gonna have to fix it himself.

With Merkel.

The only way Europe gets fixed is -- the Europeans do it themselves that says or does not have a 'cause I eventually but takes a very long time and in the interim.

You have European crisis that continues and it affects us the United States.

It affects the global economy.

It's certainly leads to less economic growth more recession in Europe and it means a lot of market pain in these massive spreads it was seeing across -- -- alternative I mean who could step in and and make things better more quickly.

Then the Europeans well then how things are unfolding as they are right now what what would make it -- better -- quicker basis.

-- clearly if the Germans were willing to do it themselves in one fell stroke that's what the markets want to mean they wanna say look you've got to -- these guys out -- you need to crack up the eurozone.

Don't leave us hanging don't drag this out that's one possible outcome.

The second outcome would be.

The Americans with the Chinese the IMF and others do with the Europeans construct some kind of global Marshall plan for the Europeans and bail them out in.

Build the Europeans you know back in after World War II.

10% of American GDP went to build up the Europeans watch that we have markets to invest in European growth is good for us you're saying we shouldn't do that.

That's fair in the -- no miracle I think I would say that my -- Germany's and -- doing exits and their best interest -- seeing Europe is trying to pull itself together.

If we didn't have such an enormous debt and we were -- problems are -- we could do maybe we could do more right.

I don't overshoot or not I don't know I'm not I'm not I'm not totally convinced what I meant love the idea maybe we shouldn't but we will we but the point is really even remotely possible hate eating very interesting thank you so much -- on the cause that is out now is -- We're in a recent get it and thanks for coming on.

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