Skip to main content

tv   Fareed Zakaria GPS  CNN  March 16, 2014 7:00am-8:01am PDT

7:00 am
decide whether to join russia. polls have been opened in crimea for about eight hours with voters facing these two choices to support the reunification of crimea with russia or to restore the constitution of the republic of crimea. i'm christie paul. make great memories today. fareed zakaria "gps" up next. this is "gps," the global public square. welcome to all of you in the united states and around the world. i'm fareed zakaria. today we will bring you the latest on the crimeaen referendum. and on that malaysian plane. also, we know how america has reacted to president putin's moves into crimea. but what about russia's neighbors? i will talk to two high officials from countries that border parts of russia. countries that have been invaded by moscow before. how worried are they?
7:01 am
and a fascinating mystery. how does $20 billion get lost from a nation's treasure. that is what is being alleged by the head of the central bank of an oil rich african country. >> $20 billion that has not come back. >> the result, he gets suspended from his job. i will ask the country's finance minister to explain what's going on. then, the olympics reminded us of the agony of defeat. but is failure actually good for you? that's what a new book says. i will talk to its author. first, here's my take. the crisis in ukraine was produced by two sets of blunders. neither emanating from washington. the european union's vassilations and most significantly, of course, russia's aggression produced the problem. but it will now be up to president obama to show the strength and skill to resolve
7:02 am
it. for years now, the european union has had an ambivalent attitude towards ukraine which produced instability in that country and opposition from russia. ukraine is the most important country in the post-soviet space that russia seeks to dominate politically. if europe wanted to help ukraine move west it should have planned a bold, generous and swift strategy of attraction. instead, the eu conducted lengthy, meandering negotiations with kiev, but let us not persist in believing that moscow's moves have been strategically brilliant. vladimir putin must have watched events unfold in ukraine in february with deep frustration, as a pro-russian government was swept out of power, because the sochi olympics were under way, which limited what he could do. when the olympics ended, he acted quickly. essentially an nexting crimea. it was a blunder.
7:03 am
in taking over crimea, putin has lost ukraine. since 1991, russia has influenced ukraine through pro-russian politicians who were bribed by moscow to listen to its dictates. but that path is now blocked as steve has pointed out on this program last week, without crimea, which has an ethnic russian majority no pro-russian politician could hope to get elected of ukraine. ukraine is divided but not in half. without crimea, only 15% of ukraine is ethnically russian. as important as losing ukraine, putin has triggered a deep anti-russian nationalism around his borders. there are 25 million ethnic russians living outside of russia. and countries like kazakhstan with significant russian minorities, must wonder whether putin could foe meant moments in their country as well.
7:04 am
and then use the russian army to protect them. beyond the near abroad, russia's relations with countries like poland and hungary, that were once warming are now adversarial. nato which has been searching for a role in the post-cold world war has been given a new lease on life. moscow will face some sanctions from washington and almost certainly from the european union as well. and in a rare break with russia during the discussions at the u.n. security council, even china refused to condone russia's moves into crimea. now i have generally been weary for the calls of america intervention in every conflict around the world but this is different. the crisis in ukraine is the most significant geopolitical problem since the end of the cold war. unlike many of the tragic ethnic and civil wars that have bubbled over the last three decades this one involves a great global power, russia. and thus can and will have
7:05 am
far-reaching consequences. it involves a great global principle. can national boundaries be changed by brute force? if this becomes acceptable, what happens in asia where there are dozens of contested boundaries and several great powers that want to redraw them. so president obama must rally the world, push the europeans, and negotiate with the russians. in this crisis, america truly is the indispensable nation. for more go cnn.com/fareed and read my "washington post" column this week. let's get started. i'll be back withp much more later on in the show. for now let's go to cnn's jim sciutto for the latest. >> thank you, fareed. there are two major developing international stories we're following today. the search for that missing
7:06 am
malaysian airlines jetliner and the referendum in crimea and that's where we'll begin. in the latest event in this fight between east and west over crimea, today cry me yan citizens are casting their ballots whether or not to join russia. almost 50% of the region had voted in what the united states and other european powers call an illegal vote. nick patton walsh is in lenin square in simferopol the capital of crimea. as this vote gets under way, lots of russian troops on the ground, questions as to how the ballot is structured. any doubt as to the outcome of today's referendum? >> not really, jim, no. i mean this is like most elections that happen in russia, it's more an endorsement to the political decision that's already been made, that is a choice for the people of crimea. you don't hear any pro-ukraine sentiments.
7:07 am
you hear they're boycottsing the vote but no sense of contest or equal campaigning here. we've seen a tweet from the de facto prime minister here sergei aksyonov, he thanked people for 65% turnout so far. you hear officials say about 80% of the vote will go their way. probably past the halfway mark to declare this referendum a success. that was never really in any doubt at all. >> nick, quickly here, you have russian troops on the ground, entered an area part of eastern ukraine. yesterday more clashes between pro-russian forces and some pro-ukrainians there as well, some of these militias. what is the tension on the ground today? is there concern of that boiling over into violence? >> well, certainly in crimea i think everyone feels it's a done deal. there's an outstanding question what happens to the remaining ukraine troops still on bases here. i met one leader of a bunch of holdouts, 15 soldiers on base were worried about what happens
7:08 am
next because pro-crimean and russian forces in control of that ukraine base. the east is more worrying too. hearing from our colleagues in donestk that protesters have broken into the prosecutors a office there. that's a substantial move. as this violence continues in the east it adds increased fuel to the russian foreign ministry constant statements they may intervene to help what they refer to as compatriots there. that's troubling for a new front in this. >> how europe and the u.s. react to this vote, sanctions, et cetera, we will be watching for that this week, nick patton walsh in simferoposimferopol, c >> it's been nine days since malaysian flight 970 disappeared. despite a major search effort including 25 countries there is still no sign of the wayward plane. there is something new, though, that investigators hope will shed more light on just where the plane is now. and that is a flight simulator taken yesterday from the home of the plane's captain, the pilot,
7:09 am
zaharie ahmad shah. we have atika shubert in kuala lumpur following the investigation today. what's the significant of that flight simulator and why are they taking it just now, nine days after the plane disappeared? >> well, we don't know the significance just yet. they've only just taken it and looking into it. it's not a secret he had a flight simulator. he posted youtube videos of himself showing the fact he had a homemade flight simulator he seems to have been able to build basically at his own house with some software. so what the police are now looking at is what exactly he used this flight simulator for, did it, for example, follow the path that the plane ultimately seems to have taken. >> so that's what they're going to be looking for. we don't know what they have found at this point, but it does seem that they are now focusing on the pilot but not only the pilot but other crew members, passengers, and even ground crew that were helping to get the plane up because they're looking to see who could have been
7:10 am
responsible for directing the plane as it went. we don't have any answers from them as to why it took so long to search the pilot's homes. but they say now they know the plane appears to be deliberately led down this way that's why they're looking at everybody on board. >> we also know they're looking at passengers, the co-pilot, et cetera as they try to figure out who took this plane on this route. thank you very much, atika. the intermittble delay has brought frustration to many around the world but perhaps most of all to china. almost two-thirds of the people on board that flight were chinese citizens. today, xinhua, china's state run news agency ran an english run editorial that accused ha lay shah of a -- malaysia of a dereliction of duty. cnn's david mckenzie live from beijing. david, that's very strong language. where is it coming from here? is it coming from that frugs stration that the families at
7:11 am
home are feeling now? >> i think it comes from two places, jim. one is, yes, those families that have been stuck in that hotel, hundreds of them, who are already boiling over in frustration. today they had a major argument with the airline which is taking care of them in beijing. they're telling the airline they refuse to go back to their homes, they're not taking any kind of stipended and also comes from the chinese government which appears to show its limit of influence in the situation. though china is far more powerful than malaysia, at least privately, it appears their pressure hasn't been bearing fruit. they've gone public with the bold statement saying it's a dereliction of duty and more needs to be done by malaysia to solve the situation, jim. >> looking at that editorial as well, it wasn't just malaysia they directed their criticism at. they directed it at the u.s., calling the u.s.s intelligence super power and wondering in effect why the u.s. hadn't used
7:12 am
all of that, you know, satellite capability, et cetera, to help find the plane. why target the u.s. now and how severe is that anger against washington as well? >> well, it seems like the chinese are pointing their finger at everyone, other than themselves. rolls-royce, malaysians and the u.s. as you say. china is a growing military power, but this has shown their lack of influence and investigative capability. of course the u.s. agencies are the ones taking the lead in this investigation and jim, we have to look at this also domestically. china is potentially going to face a lot of criticism from its citizens as people travel abroad, can they protect those citizens and if something goes wrong, can they investigate that. so really, china is beholden to malaysia, to the u.s. and other countries, to solve this mystery and that doesn't look good for the communist party, so it makes sense for them in a way to point the fingers. >> no question. chinese government is extremely
7:13 am
sensitive to perception of limitations of its power, ability and we can see that playing out here. plus certainly some understandable frustration from its citizens. thanks very much to david mckenzie, early morning in beijing, very late night rather in beijing. lots more ahead on "gps." fareed will be back next with a look at how russia's neighbors are responds to moscow's aggression. the president of estonia and poland's foreign minister after this. ♪
7:14 am
♪ turn around ♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing really good around ♪ ♪ turn around ♪ every now and then i get a little bit tired ♪ ♪ of living off the taste of the air ♪ ♪ turn around, barry ♪ finally, i have a manly chocolatey snack ♪ ♪ and fiber so my wife won't give me any more flack ♪ ♪ i finally found the right snack ♪ ♪ but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair
7:15 am
or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron.
7:16 am
smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq. mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. nutrition in charge™. we've always been on the forefront of innovation. when the world called for speed... ♪ ...when the world called for stealth... ♪ ...intelligence...
7:17 am
endurance... affordability... adaptability... and when the world asked for the future. staying ahead in a constantly evolving world. that's the value of performance. northrop grumman. this week, poland's president marked his country's 15th anniversary in nato and used the occasion to ask for more u.s. troops to be sent to
7:18 am
poland after a dozen american f-16s and 300 u.s. troops had already been promised. a little further north bordering russia sits the baltic nation of estonia. last weekend toomas hendrik ilves told president obama that what putin is doing in crimea follows the same script that the soviet union used in the 1940s to take over estonia. president ilves joins me now from estonia and poland's foreign minister radoslaw sikorski joins me from warsaw. mr. president, let me start with you, you have a substantial russian minority in estonia. there have been tension with that minority. does what is happening in ukraine make you worried that russia might follow a similar strategy with your country or with other neighbors of russia? >> well let's be clear, europe is full of substantial numbers of minorities, far more than we
7:19 am
have in estonia. we as one of the more liberal democracies in the world, shouldn't have to worry about these things. i would say, however, that once you start using the argument used in 1938 to annex the sue day tan land, no boarders in europe are secure anymore. the crimea has not been annexed yesterday but the argument is really the same. >> radoslaw sikorski, poland borders the area of the russian enclave that is russian and, in fact, is the home to russia's baltic fleet. do you think that the european union will act in a united and firm manner with regard to what is happening in ukraine? that is to say, to continue to not recognize any annexation and to impose sanctions on russia? >> well, i don't see any freedom
7:20 am
loving country recognizing this patently illegal, unconstitutional referendum being carried out in hayes and und underer the gun of foreign army. but, of course, facts on the ground are being created. >> but will europe act in a united fashion? do you believe? >> well, we are all reluctant to impose sanctions because russia will probably respond and we'll all suffer as a result, but russia is leaving us no choice. and the european council has decided if there is no movement on russia's part to correct the position, i'm afraid we'll have no choice on monday. >> radek, regarding nato, what would poland want from nato and from the united states in
7:21 am
particular in response to this? >> well, you've alluded to some of the u.s. response, which we are glad of that. remember, we are not feeling militarily threatened as yet. it's just that we are concerned for ominous developments on the territory of an important partner of nato and that's why it has been important and correct to raise nato's situational awareness and, of course, the question remains whether crimea is the limit or whether it's phase one and then, of course, it could get much more serious. >> president ilves, when you look at this problem of the russian minorities, it is not as you say all over europe but near russia's abroad. there are 25 million russians living all over places like kazakst
7:22 am
kazakstan. is it your impression those countries will be more wary of russia, because after all if i were in kazakhstan, all of a sudden you would be worried that if there are tensions between with the russian minority there, moscow could decide in order to protect its russian speaking compatriots, it needed to take some kind of military action? >> let's -- i mean, i think that there are a number of countries that are quite worried if we look at the numbers. they're rather large. there are 8 million russians in ukraine. there are about 11 million ukrainians in russia so it's not really an argument you want to be using too much and that's why countries have long abandoned this kind of argument because they saw the disastrous results of world war ii. >> what would you like to see nato do, mr. president? >> well, i think the focus of nato has been for almost two
7:23 am
decades, conflicts outside of the nato area, based on the premise that nato members, alliance members themselves, don't feel that their territory is under threat. of course, that assumption with the kinds of actions we have seen, have disappeared alas. >> radek sikorski, do you think that the annexation of crimea is now a kind of de facto reality and while you may not confer upon it, ledge plasy, we will have to live with the reality or do you believe it is possible that mr. putin will actually reverse course? >> i hope he will reverse course because as president ilves was saying, the precedence are terrible. i hope we've learned something from the first world war, from second world war and from the cold war. europe is a patchwork of
7:24 am
nationalities, both in the east and in the west, and we found ways of resolving these issues. giving maximum rights to minorities and dissolving borders so that people can happily go along as, indeed, they have been doing in crimea and eastern ukraine. remember, not a single russian or russian speaker has so far been harmed. so there isn't even a pretext for everything that is being done. >> president ilves, do you want something in particular from washington, from president obama? what do you think washington's role in this should be? >> well, i think we have received assurances from president obama and from vice president biden and certainly i think what has come home to all of us is the idea that it is now time to fix aate or rebalance o pivot, whatever the term wants to use, on areas outside of
7:25 am
europe was unfortunately premature. that, in fact, the security situation in europe is not resolved in the way that we thought with the peace dividend in the 1990s. >> mr. president, mr. foreign minister, thank you very much for joining us. up next, what in the world? why venezuela's protesters seem to be taking orders from a man in miami via twitter. i will explain. all 5 of you f. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business. you stand behind what you say. there's a saying around here,
7:26 am
around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. plays a key role throughout our lives. one a day women's 50+ is a complete multivitamin designed for women's health concerns as we age. with 7 antioxidants to support cell health. one a day women's 50+. [ chicken caws ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. heartburn relief that neutralizes acid on contact and goes to work in seconds. ♪ tum, tum tum tum tums! heartburn relief that neutralizes acid on contact nascar is about excitement. but tracking all the action
7:27 am
and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. ♪ ♪ [ female announcer ] cheerios. with flavors your heart will love.
7:28 am
7:29 am
now for our what in the world segment. the progress in ukraine and russia's response to them have mow noppized headlines but there is one other uprising that could have a big global fallout. i'm talking about venezuela. where for weeks now, demonstrations against the government have been met with violent and sometimes deadly force. keep an eye on that country because what happens there could have consequences across the continent and all the way to cuba. i was surprised to read that one
7:30 am
of the guiding lights of these protests is actually not on the ground in caracas but more than a thousand miles away in miami, florida. rinaldo desantos is a self-proclaimed prophet from brazil and claims that venezuela's president will soon be out of a job. for whatever reason, his pro fesies have resonated with his 1.3 million twitter followers as he embolden them to fight the good fight. a fun fact venezuela has the fifth highest twitter penetration in the world. it's a bizarre sideshow to what is a serious situation not only for venezuelans but the global economy. venezuela has the world's largest oil reserves and it is the fourth largest exporter of oil to the united states. despite those riches venezuela is a basket case. there's hyper inflation, food shortages and energy crisis
7:31 am
violent crime and unfettered corruption. venezuelans have a number of reasons to protest, but the protesters don't really have a clear sense of direction. that's why they're following tweets from a brazilian a thousand miles away and it's unclear whom they represent. on the one hand you have a moderate wing of protesters, a group whose leader narrowly lost out in the last elections. these protesters are looking for minor concessions from the government as they bide their time for the next national vote. but a more vocal, even radical wing of protesters has emerged in recent months which have been calling for the overthrow of the president nicolas maduro. these calls have, of course, been the perfect excuse for brutal government crackdown. the background to all of this is venezuela's silent and suffering majority and in an essay in the new republic the mexican intellectual points out that protesters on the street are
7:32 am
comprised mostly of the middle and upper classes. he points out that the far greater threat to the maduro government could come from the poor if they rise up. for year's maduro's predecessor the popular america bashing hugo chavez populated income voters with subsidies and handouts. but as the economy has collapsed even they have suffered greatly. if those silent poor rise up, we could see greater turmoil. you see, maduro represents the policies of chavez, but he does so without the late president's charisma and populist touch. if serious cracks develop perhaps even the army could question its loyalty. as always with oil economies if prices fall all bets are off on the survival of the regime. if venezuela implodes it would trigger a massive regional crisis. cuba, which is essentially bank rolled by venezuela would
7:33 am
collapse. other regimes would also suffer a loss of aid. if under pressure venezuela somehow moves toward real democracy, that too would have ripple effects across the region and in cuba. while you watch the crisis in ukraine, think about the protesters in venezuela, who are demanding the very same things as those brave soul. up next, a mystery in another oil economy. tens of billions of dollars are alleged to have disappeared from one african nation's coffers. what happened? i will ask that country's finance minister. fareed's take brought to you by century link. data, voice, cloud. managed services. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on.
7:34 am
multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.
7:35 am
oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tasting little o's made from carefully selected oats that can help lower cholesterol. is it a superhero? kinda. ♪ [ male announcer ] she won't remember this, being carried in your arms. but after a day spent in the caribbean exploring mayan ruins and playing pirates with you in secret coves, she won't exactly be short on memories. princess cruises. come back new. [ female announcer ] plan your seven-day cruise from just $549. call your travel agent or 1-800-princess. but when we put something in the ground, feed it, and care for it, don't we grow something more? we grow big celebrations, and personal victories.
7:36 am
we grow new beginnings, and better endings. grand gestures, and perfect quiet. we grow escape, bragging rights, happier happy hours. so let's gro something greater with miracle-gro. what will you grow? share your story at miraclegro.com.
7:37 am
if $20 billion were to go missing from the united states treasury, people in washington would certainly sit up and wonder what happened and heads would roll. now imagine if that sum of money disappeared from an economy that is just 1.6% the size of america's. that actually happened in nigeria. there's a twist.
7:38 am
so when nigeria's central banker, chairman of the fed and a well-respected economist sounded the alarm that $20 billion had gone missing, what really happened was that he got suspended. why? well, that's what i asked nigeria's finance minister when she came to new york this week. she knows him well. she's also a former managing director of the world bank and is the author of "reforming the unreformable, lessons from nigeria." listen in to our conversation. i began by asking her why the central banker was suspended for blowing the whistle? >> i believe that when you find problems, you should also find solutions. i think the problem began the first time when he said that the amount that was -- he never said it was stolen. he said it was unaccounted for, was $49.8 billion and he wrote a
7:39 am
letter to the president, he called me a couple of days after, to say i've written this letter. my first reaction was that's not possible. we couldn't be missing $50 billion as finance mip ster in this country. we wouldn't be able to function. that's too high a hit. everybody would know it and feel it. >> there is substantial gap. >> oh, yes. >> the bank i think when you were one of the managing directors issued a report on the nigerian economy which it said hundreds of billions of dollars over the past 30 or 40 years have been siphoned off. this would be an example of this kind of siphoning off. >> no. i think we should hold our horses a little bit. he never said the money had been siphoned off. he said it was unaccounted for. hold on. there's a difference. when he alleged $49.8 billion and this was looked at, it was found some of that money had really been remitted to the tax
7:40 am
agency directly and his people were not aware of it. so $16 billion was immediately accounted for. that, you know, they didn't seem to know the accounting mode of the agency, so that's what i'm saying. but there has been -- there's no doubt that nigerians feel suspicious of the oil sector that it has been regarded as opaque over the years and this is not an issue, you know, whether it's $10.8 billion or $1, you know, we can't afford to lose any money from the treasury. >> why fire the central banker? respected central banker? >> you know, fareed, what i would like to do is perhaps focus on the economy, because i don't think i want to get into this issue of firing, not firing. he's still governor of the central bank. he has been suspended. he hasn't been fired. we need to focus on the central issue, which is no one dollar should be lost from the treasury. any money that belongs to it must be remitted.
7:41 am
and the president, we pushed, he has ordered one yesterday, that there should be a forensic audit to determine where these moneys, what is unaccounted for, is it the $10.8 billion that we are saying from the accounts? we've been working on this for two years. you know, is it $50 billion? is it 20? is it 12? what is the amount. we need to know for the sake of the nigerian people and he has ordered that. so we want it to be independent, we want it to be well done, so that we can lay it to rest. >> how do we -- how do you solve the problem of corruption? you've been in government twice. you have a reputation for being extremely honest. what would you do if you had a magic wand, you were president, what would you do to get nigeria to get this cancer out of its system? moo we >> well, you know, fareed, there are no easy answers. there's one thing i want to say and repeat.
7:42 am
no one can fight corruption for nigerians except nigerians. everyone has to be committed from the top to the bottom to fight it. i think there are two key things that need to be done all along and it's not just in nigeria. many developing countries you need to do this. in our country you need by all means pursue those who are corrupt, punish them, you know, make sure there's no impunity. that has to be coupled with something that doesn't get as much attention which is building institutions. it's unglamorous, it's work that takes time, but we have to do it. we have to put it in place. >> i have to ask you a question that is not part of directly your portfolio, but it is your government. nigeria has always had laws banning homosexuality. you have basked a further law which criminalizes it so somebody who is gay, would have to spend 14 years in prison. you also have passed the law that says people who are in some
7:43 am
way promoting gay clubs or gay discussion would be imprisoned for ten years. this seems an assault on a minorities rights. it also seems an assault on free speech. why is nigeria doing this? >> well, let me say this fash, n fareed, we're here in the u.s. and it took 40 to 50 years or more under conversation of, you know, the gay community to get where the u.s. is. i think that, you know, we need a conversation in the country. we need -- 96% of people support these laws, but i think we need to unpack the laws, for them to see, you know, between being a gay person and between same-sex marriage. because the two are compounded in people's mind and there's a
7:44 am
strong sentiment against same-sex marriage just as you had here and it's still evolving. i think it's a question of conversation, discussion, evolution, education, and engagement over time, just as happened in this country and in europe. it's not something that happened overnight. i would say withhold judgment and let us work on this. >> madam finance minister, pleasure to have you on. >> thank you. >> we will be back. ♪ ♪ turn around ♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing really good around ♪ ♪ turn around ♪ every now and then i get a little bit tired ♪ ♪ of living off the taste of the air ♪ ♪ turn around, barry ♪ finally, i have a manly chocolatey snack ♪
7:45 am
♪ and fiber so my wife won't give me any more flack ♪ ♪ i finally found the right snack ♪ ♪ you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. relieving the pain quickly. life's an adventure and it always has been. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis.
7:46 am
side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. nutrition in charge™.
7:47 am
7:48 am
we often talk about how to be successful in education and our careers and lives. well my next guest says it's all well and good but the most important thing right from childhood is to learn how to fail. why? meghan is a columnist for bloomberg view and the author of a book "the upside of down why failing well is the key to success." listen to what she found. >> the idea is not just to fail at things for the sake of failing. the idea is to take calculated risks and then to figure out what went wrong because that's actually the most valuable piece of information that you can
7:49 am
have, right? there's a great story about thomas edison asked, how does it feel to have failed to make an incandescent light bulb about halfway through his journey to making a light bulb. what do you mean failed? i have found 10,000 things that don't make good filaments. that is a how a surprising number of things get found out in the marketplace. >> you think what's important is an atmosphere which allows that failure to happen? you contrast the united states with denmark which is interesting, because it's a european country, you think of as being this is northern europe, that's always successful, and portrayed as such, but you say there's still a big difference, that there is a stigma attached in denmark versus the united states? >> in europe, it varies by country, but there's less of a thought that when someone has been the head of a company and it's gone down, you know, that could have happened to anyone, that the important thing was to try and we admire the resourcefulness of people who strike out on their own.
7:50 am
what they see in europe is lower rates of entrepreneurship and an institutional problem. i looked at a danish entrepreneur who ten years ago had a business setback and because of denmark's bankruptcy system he can't get rid of the debt he accumulated that time. it's the same size as it was ten years ago. instead of starting a new venture starting over he's struggling to pay off that old debt. it might be good for his bankers, i question that, but it's not good for him and the economy. >> you point out in the united states, there is one troubling thing, which is the long-term unemployed seem to be long-term unemployed in some significant cases, because they're not taking the risk of taking a job that doesn't seem right for them. they're not -- they're waiting for the perfect job. >> yes. what we've seen in america over the last five years is long-term unemployment rates that are looking a lot more european long-term unemployment rates have been. people who when you look at studies of these people what
7:51 am
you're seeing they're not spending enough time on their job search, not willing to lower the wage they'll accept and not moving as much as americans used to. those are huge mistakes right now. what we know from surveys of firms and doing studies with reses sue mays once you've been out of work six months it's hard to get back in. employers really discount those resumes. a better strategy is to lower your wage early, lower the amount you're willing to accept and say i can work up to it later. that's what i did ten years ago when i was laid off after a business school, i basically took a job that paid a third of what i was expecting and worked back towards, you know, i'll probably never make big management consulting money but back to where something i was living pretty comfortably. people are reluctant to do that. humans are what economists call -- once we've had something it's hard to admit it didn't work. that's why you see gamblers going back trying to double down at the casino and win their money even though they of all
7:52 am
people should know the house always wins in the end. >> what's the most important failure you've learned from? >> there's so many. i would say the biggest one was being unemployed for two years. in the first place it wasn't my failure, i got laid off with my whole associate class. i didn't do the right thing. i had a temporary job working down at the world trade center disaster recovery site and while i am very glad i did it, i didn't -- i let that job take over and i didn't start looking for a job quickly enough. which put me in the same position as a lot of today's unemployed people. eventually i did the right thing, i started flailing. i tried a lot of things. i had a small business consulting group, doing i.t. consulting and a blog i started while working down there. and i started freelancing economics articles and got a job as an economist and had the most amazing, luck career for the last 12 years. that is what you see from people who get back on their feet, is they just kept going. >> well, here's hoping that was
7:53 am
the last time you have to learn from failure. >> probably not, but let's hope i learn from it. >> pleasure to have you on. >> up next, miracles come in many forms. this one appeared as a tree. yes, a tree. i will explain. tall the building is, or how ornate the halls are. it doesn't matter if there are granite statues, or big mahogany desks. when working with an investment firm, what's really important is whether the people behind the desks actually stand behind what they say. introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services,
7:54 am
we'll refund your program fee from the previous quarter. it's no guarantee against loss and other fees and expenses may still apply. chuck vo: standing by your word, that's what matters the most. [ chicken caws ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. heartburn relief that neutralizes acid on contact and goes to work in seconds. ♪ tum, tum tum tum tums! heartburn relief that neutralizes acid on contact alright, that should just about do it. excuse me, what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able t post from the breakroom. great! did it hurt? when you fell from heaven (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network.
7:55 am
ido more with less with buless energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. ♪ ♪ [ female announcer ] with five perfectly sweetened whole grains... you can't help but see the good.
7:56 am
7:57 am
president obama traded insults with zac galifianakis on the funny or die internet show between two friends. >> what is it like to be the last black president. >> seriously? what's it like for this to be the last time you ever talk to a president? >> that brings me to my question of the week. which of the following countries has a law against insulting its leader? is it poland, turkey, the netherlands or thailand? stay tuned and we'll tell you the correct answer. this week's book of the week is "the leading indicators, a short history of the numbers that rule our world." this is a clever, entertaining and intelligent book that dissects the many statistics that we all rely on. gdp, unemployment, deficits and shows us how unreliable they all
7:58 am
are. a very fun read. for the last look. three years ago this week, a 9.0 magnitude earthquake struck the coast of northern japan. unleashing the largest tsunami in the country's history. traveling as fast as a jet plane, the wave reached an astounding 132.5 feet high. that's roughly the height of rios's christ the redeemer statute. over 18,000 people lost their lives. coastal communities were decimated. and the most serious nuclear crisis since chernobyl ensued. in one town on japan's northeast coast only a handful of buildings remained standing when the water rereceded. a forest of 70,000 trees, trees that protected the town for hundreds of years were lost. all that is, but one. this pine tree was the only one to survives the massive wave. it became known as the miracle
7:59 am
pine. a symbol of hope for the devastated community. when saltwater threatened its life in 2012 the 270-year-old, 88 foot tree was cut down hollowed out and preserved. it was then erected in the same spot, now serving as a memorial to the tsunami victims. radioactive water from fukushima is still said to be periodically leaking into the pacific. 100,000 people are still living in temporary housing. and japanese prime minister shinzo abe said this week he would not let the disaster fade from memory. this tree won't let it. the correct answer is actually a, b, c and d. in poland, publicly insulting the president could land you in prison for three years, in turkey you could face up to four years, in the netherlands believe it or not insulting the monarch could land you in jail for five years. all of those punishments are
8:00 am
preferable to the 15 years you would receive in thailand. perhaps these leaders should learn to take a punch. traffic to healthcare.gov increased by 40% the day after obama's appearance. thanks to all of you for being part of my program this week. i will see you next week. good morning. i'm candy crowley. "reliable sources" with brian stelter starts after this check of our top stories. malaysia is revealing more information about the investigation into the disappearance of flight 370. authorities say they're now examining a flight simulator taken from the home of the pilot. no word on what they've discovered but they will be looking to see if pilot practiced the same path. a u.s. official tells cnn u.s. intelligence is leaning toward the theory that pilots are responsible. the search area has expanded to cover large areas of land includingxt