'This Week' Transcript: Tax Deal

AMANPOUR: What seems to be gripping, though, everybody, whether here in the United States or in Europe, is the idea of debt, and so everybody is talking about trying to -- trying to rebalance and pay off the debt.

BROWN: I know, but you've got three problems. You have got a fiscal deficit, which is inevitable, because you lost revenues during the recession, but you've got massive bank liabilities, as well, which is spilling over into being the fiscal problem, as well. But a lot of banks are still not properly capitalized, and the financial system globally is not in the best condition.

And the third thing is you haven't got is enough growth. So you will always have high unemployment if you can't actually have the growth that is necessary to keep people in jobs.

Now, I'm saying that America's future will lie not simply in serving its own market here in America, but there's going to be a rapidly rising billion-people-strong middle class developing in Asia wanting to buy the brand goods we produce here in America, wanting to get the most sophisticated products where the innovation is greatest in America, and America should be looking outwards so that the exit strategy from this crisis is actually benefiting from the Asian consumer revolution.

AMANPOUR: And you think it's not? You think it's looking inwards right now?

BROWN: I think the danger at the moment is that people cut back in education, which is vital for the future, that people cut back on their international contacts, because they think the solutions lie in national answers to their problems, when they lie in global cooperation.

And I think the danger is, you have a '30s-style protectionism where people relapse into currency wars, as we're seeing, or trade wars or banning takeovers that have got cross-border ramifications, or simply a protectionism in of the mind, where anti-immigrant sentiment gets to the point that we're not really talking to each other in a way that means that we have a coordinated world.

AMANPOUR: The Federal Reserve did something and released some evidence that something -- quite extraordinary, that British banks were amongst those which were basically bailed out or partly by the Fed. Is the Fed a global central bank? Should taxpayers here be doing that?

BROWN: I don't think that America uniquely was helping banks in other parts of the world. We were in Britain. I mean, we had just...

AMANPOUR: But it did do for the USB, Barclays, RSB.

BROWN: Yeah, but -- but we did for banks that were operating in Britain, as well. So -- so the Americans and Britons played a global role, there's no doubt about it. But America and Britain were both doing similar things. They were helping foreign banks that were based in their own countries.

The question for the long run is, how can you have global financial markets with only national regulators? How -- how can you solve the problems where there are instabilities in the global flow of capital, when all you have is a regulator sitting in Britain or America or somewhere not knowing what's happening in the rest of the world?

So the real answer to this is to have proper global financial supervision so that people have some certainty that there is not a race to the bottom in financial standards, which is really what happened over the last 10 years, a race to the bottom in financial standards. You know, we have all these terms, CDSs, CDOs. It's really jargon for banks that were betting and speculating with other people's money, and you really have to have proper supervision.

AMANPOUR: Gordon Brown, thank you very much, indeed, for joining us.

BROWN: Thank you.

AMANPOUR: You can see more of my interview with the former prime minister on abcnews.com.

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