Soros: The Crisis, Part 3

Transcript:
ZAKARIA: You've been an early supporter of Obama.

SOROS: Yes.

ZAKARIA: Do you think that he would handle this better?

SOROS: Yes.

ZAKARIA: Who would be secretary of Treasury if you had to pick?

SOROS: Well, I don't know if should answer that question.

ZAKARIA: Would you serve if you were asked?

SOROS: No. I'm a little bit old. I would certainly be available with advice. I'm even available to this government with advice. But I'm not going to ...

ZAKARIA: Speculate.

SOROS: No, no. I mean ...

ZAKARIA: People say that you fund the Democratic Party. You've seen the - when you see things like the Saturday Night Live skit, what does it make you think?

SOROS: Well, it was very flattering, of course.

(BEGIN VIDEO CLIP FROM SATURDAY NIGHT LIVE SKIT)

WILL FORTE AS GEORGE SOROS: So, what became of that $700 billion? Well, basically it belongs to me now.

(LAUGHTER)

Actually, it's not even dollars anymore, but Swiss francs, since I have taken a short position against the dollar.

JASON SUDEIKIS AS PRESIDENT GEORGE W. BUSH: Oh, really? That's not good.

FORTE: You're not to speak. I don't like you.

(LAUGHTER)

Yes, the U.S. dollar will have to be devalued sometime next week, either Tuesday or Wednesday. I haven't decided which yet. It will depend on how I feel.

FRED ARMISEN AS REP. BARNEY FRANK: Thank you very much, Mr. Soros. You're a great man.

FORTE: Yes. Could I just add that, even though you know what's coming, you won't be able to do anything about it.

KRISTEN WIIG AS HOUSE SPEAKER NANCY PELOSI: You're a wise man, Mr. Soros, and a powerful one.

ARMISEN: You are better than us.

(END VIDEO CLIP OF SATURDAY NIGHT LIVE SKIT)

SOROS: It was funny. But ...

ZAKARIA: Do you think that you have - that rich people have undue influence in politics in America?

SOROS: Yes. Yes.

ZAKARIA: But given the rules, you're not going to back out.

SOROS: No. I mean, there are other rich people who have influence. I don't - I try not to abuse - I mean, I don't think that I misuse my money.

I don't use my money to gain political influence for my private interests, which is what many rich people do, and what, in a sense, market fundamentalism does, because it is in the interests of people who have a lot of money to have as little taxes as possible.

I actually believe that there is a need for taxation, that this anti-taxation position is actually false, because the government is supposed to provide services, and those services cost money. And somebody has to pay for it.

ZAKARIA: Tell me what you think the geopolitical or geoeconomic effects of this financial crisis are.

Are we witnessing the kind of de-Americanization of the global financial system? In other words, are countries going to not rely on America as the center of finance?

I ask this, because one of the puzzling moves over the last few weeks has been, with all these calamities in the United States, the dollar keeps strengthening.

SOROS: Yes.

ZAKARIA: Because in a strange way, there's a flight to safety. And the only thing people trust is the dollar.

SOROS: No, there's a technical reason. There's a shortage of dollars, and the dollar has been oversold.

ZAKARIA: So, in the medium term, you suspect the dollar will decline and America's central role will decline.

SOROS: I think that, in many ways, this brings home the decline in America's position in the world, because we have over-consumed. The Chinese have produced a lot more than they consume, so they built up reserves. We built up debts; they built up assets.

And the same applies to the oil-producing countries. So, there's been a tremendous power shift.

ZAKARIA: Do you think this power shift is permanent?

SOROS: America will still be a leader - if not the leader - of the world. And in fact, if America uses its position to cooperate with other countries, it can reemerge as the leader, and the world very much needs that kind of leadership.

ZAKARIA: George Soros, a pleasure to have you on. The book is fascinating. Thank you.

SOROS: A pleasure.

ZAKARIA: And we'll be back.