tv Boom Bust RT March 11, 2021 9:30am-10:01am EST
more than half a 1000000 people in the us and has left millions more without jobs the house of representatives is passing the vote on president biden's $1.00 trillion dollar stimulus package and everything in this package is designed to relieve the suffering and to meet the merged most urgent needs of the nation just days before unemployment aid runs out congress has approved a landmark legislation placing president biden on the cusp of an early triumph that the democratic party says will transform the economy and provide much needed financial relief to millions of americans we promised. to send people back to work by helping to revive. the economy mission accomplished the bill includes $1400.00 checks for americans with income below a certain threshold $75000.00 for individuals 112504 heads of household and 150004 couples filing jointly will each receive $1400.00 per person as a direct deposit or mailed check the legislation will also pay up to $3600.00
a year in tax credits per child extend increases in food stamp benefits extend $300.00 a week boost in unemployment assistance and $8500000000.00 to help we're all hospitals it's a remarkable historic transformative piece of legislation which goes a very long way and while the nearly 6000 page legislation does not include the minimum wage increase to $15.00 an hour it does include a $350000000000.00 bailout to local and state governments $220000000000.00 to states territories and tribal governments and 130000000000 dollars to cities and counties to mitigate the fiscal effects stemming from the pandemic but a change by house speaker nancy pelosi to the allocation formula from being based on population to the unemployment rate now $27.00 states will lose more than $31000000000.00 in funding among the biggest winners california texas and new york i think a lot of people have a concern that speaker pelosi took advantage of the crisis to fill the bill with
primarily things that have nothing to do with the bill garnering fierce criticism from republicans who say that it's of course it's clustered that has little to do with them on a virus but is disguised as covert 19 relief this massive spending bill masquerading as comfort relief will bankrupt the country it will not rescue the country. exactly how much pork is in that bill well 50000000000 is going to female 1500000000 to amtrak 7600000000 to improve internet access and 270000000 to the nash. and down for arts a national endowment for the humanities and $50000000.00 for family planning only 9 percent goes towards defeating the virus $1500000000.00 for amtrak which is already sitting on a $1000000000.00 in unspent 8 could someone explain what that has to do with covert relief anybody this is individual when they know that their own problem it is coming they have because now they can pay their room.
meantime republicans say they could have had a bill that was a fraction of the cost but the house speaker a majority leader shut out republicans all of this unfolding in the nation's capital as the country's debt has officially shot up to $28.00 trillion dollars reporting for boom bust trinity child as r.t. . for more on this let's bring in boom bust co-host an investigative journalist been spawn and host of economic update and author of the sickness is the system professor richard wolffe professor all start with you here now of course the issue is whether or not this stimulus package will actually stimulate the u.s. economy do you believe that will happen. well you know it's always the in the details what the words mean would give a boost to the economy in the short run probably yes it's a lot of money it's being pushed in the hopefully it'll be pushed in quickly it will give a boost i'm reminded of what president obama did back in 2009 when he also gave the
economy a boost but we learned with mr obama's boost that it didn't last and it didn't fundamentally transform the economy lot of people said it would just like they're saying it now a lot of promises were made just like they're being made now it didn't work out that way which is why we had such a crash this last year so for me what's the key issue here is the sustainability of whatever boost it gets and i don't think it's a knots and i think it's very late in the day so i'm very worried that the promises and the great hopes that have been generated here will not see fruition beyond that initial boost and we've definitely been talking about stimulus for a full year now waiting for congress to do something and it seems like each time they do pass one of these packages it's months later than it should be and of
course as in this case it includes a lot of different provisions and a lot of spending that many say isn't about covert really now but i want to ask you about that one because we've heard that criticism as was mentioned in trinity's package that there is all this money that it doesn't go to covert relief as it should so how do you see it. yeah well listen i think it's pretty obvious here a lot of this money as was explained very well by trinity is not going to go to covert relief but you really have to make it don't come down to one of 2 ideas either we're going to spend ridiculous amounts of money and yes significantly devalue currency for the sake of putting money into the hands of who into the hands of people you need it if you believe in that school of economics thought fight but then actually put the money there that's not where the money's going when you're when you're giving a $1000000000.00 a 1000000000 and a half dollars to amtrak that's not putting money in the hands of the people who need it so it's this idea that oh we're going to help the people who need it but
then you don't and that is what we saw back in 2008 that's what we've seen for the last few decades in the united states and it's happening not just in the u.s. by the way it's happening in europe it's happening all around the world where massive amounts of money is being generated and spent and it's going to crash the economic system and maybe that's not even the sara lee a bad thing because the reality is this economic system is barely hanging on by a thread as it is and right now the u.s. isn't the only one relying a lot on stimulus packages improviser i want to ask you about that too because we know that countries around the world have been passing a large stimulus deals while holding down interest rates what is the chance that we will see global inflation and the near future. well you know there's a lot of the moves talk about that there's no excuse for that is it possible or we can stimulate the economy without an inflation that's why absolutely is it possible that this kind of money creation on a massive scale to try to save the economy will provoke an inflation of course the
answer is yes too many other factors will determine which way it goes nobody can see in the future the idea that you want to pass this bill and i would disagree slightly it's not just for coal the stimulus is what it's called for. good reason you want to stimulate the economy and i agree with that as a purpose but then is absolutely right if you keep giving it to the same corporate leaders government bureaucrats who have sailed the myth to that mass program for the people who need it why should you believe they're going to spend it now and that's true in other countries we had a century of giving foreign aid to countries who need it only to discover that it went into the hands of the few who and it never quite trickles down that happens at home as well as abroad and that's a serious problem and then there's right that it's the economic structure we have
that's the frustrating problem here yeah that's a really good point and it seems to be business as usual right back here at home not much change even though we're dealing with these new issues over the last year now ben what are your expectations for the economy i mean there are predictions that by the end of the year they could be economy will come back in a major way well this stimulus bill help in the process you know so the stimulus bill will do nothing to bring back the economy but will bring back the economy is allowing people to go back to work allowing people to reopen their businesses when when that happens and either because you know politicians allow it to happen or because people get sick and tired fed up and say we're just going to do it on our own either way that's the only way that the economy comes back. am i right well that same question to you professor wolf how do you see this this economic stimulus impacting the economy here in the u.s. in the next year. well right now it's having a kind of euphoric effect with these enormous promises that it's going to solve our
problems and bring us our economy back here's the irony this constant message of bringing it back back to what the what it was before mr trump became president the way it was before that's why he became president and if we can't do markedly better than getting back to where we were which is the best we can hope for with this stimulus if we don't make basic changes we're going to have a repeat but just like this crisis is worse than the one under obama the next one will promise to be yet worse and we don't have that much more slack in what we can tolerate as a society. i call on points to consider here bans on professor richard well thank you both for your time. weeks after australia and facebook went to war over a new law aimed at forcing tech giants to pay news publishers for their content the
u.s. could be next in line a bipartisan group of lawmakers say they want to give news organizations more protection with new antitrust legislation that would make it easier for a group of publishers to negotiate with facebook and google senator amy clover charges that she is sponsoring the proposed bill because tac has no mercy and it would allow negotiations on everything from advertising revenue to access to information on subscribers this is just the latest in an ongoing campaign by congress to enforce antitrust laws and to hold tech giants accountable. time now for a quick break but when we come back they game stop saga isn't over yet we've got the latest on what reddit investors are up to next and as we go to break here is a numbers that the globe.
some control for a middle. of the night most of them are very hardworking people who want to get ahead that is either have some some health issues or have some of those trick about luck a full time job moon told me he's paying for a place to live and missing just a month's rent can get you a victim to gunpoint if anything bad happens to any thing that just throws your budget off slightly. you better catch up real quick or you're going to have a judgment of possession against you and get addicted anyone that's homeless is treated like garbage people look at you like a monster or someone bad or you chose to be there most of the time it's not the case see how it is to be pull in the world's richest country.
this is crude oil. so they need to actually physically pump it out of the ground you would have well well. there's a lot of money with your oil and with that comes. a lot of a lot of people from all over the country. if you don't make a $100000.00 a year. as a. prison issue. here in the. they were told $50.00 a day it's hard work for the workers not easy work and so they want to relieve their stress and how do they relieve their stress these men that outweigh that
comfort many. people have been murdered up here people been raped their massive drug issues up here you have a boom you have everything else that comes along with money. one of the worst mass shootings in america was in last vegas in 2017 the tragedy exposed a little of the real last big women who say elected officials are controlled by can see you know the dangers shooting reveal where v m p d really is and now it's part of the stand the sheen says to the american public barely remembers that it happened i just shows you the power of money in las vegas the powerful showed that true colors when the pandemic hit the most contagious contagion that we've seen in decades and then you have a mayor who doesn't care so here's care i goodman offering the lives of the vegas
residents to the control group to the shiny facades concealed deep indifference to the people could have been saved if they were taken action absolutely keep the roads shrinking machines doing base is a money machine is a huge cash register that is ran by people who don't care about people's lives being watched. by the pandemic no certainly no borders to nationalities. as much time with the we don't look like seeing the whole world needs to be. judged as commentary crisis what is missing to want. we can do better we should. everyone is contributing each other own way but we also know
that this crisis will not go on forever the challenges create the response has been so many good people are helping us. it makes us feel very proud that we are in it together. secretary of state tony blinken testified before congress wednesday on the biden ministrations plans for u.s. foreign policy amid questions over tensions with china and iran the house foreign affairs committee also brought up one of its favorite topics the north stream to pipeline a thorn in the side of the trumpet ministration republicans have accused biden of allowing the project to be used as a political win for russia in a letter a bipartisan group of representatives argued that if completed nordstrom's to would
enable president putin to further weaponize russia's energy resources to exert political pressure throughout europe however blinken noted to congress that the biden ministration will likely be limited in trying to stop the north stream to as it is already over 90 percent complete it violates the european union's own energy security principles it jeopardizes the economic and strategic situation for ukraine for poland as well and so he opposes it we oppose it will continue to do so . i've been on the job i think 5 weeks the pipeline is 95 percent complete and started construction started in 2018 so i wish we didn't find ourselves in a situation with a pipeline that's virtually complete. u.s. stocks were up on wednesday as inflation fears continue to be tame for now with many watching both oil prices and of course that ongoing saga surrounding game stop
as the stock was halted several times due to volatility so joining me now the chance at all is co-host christiane i and david mckelvey any c.e.o. of mckelvey any financial group david all start with you here now last week opec and russia shocked the markets by not raising oil production at a time when oil markets are signaling that they need more supply given that tightening supply why has the oil rally died down slipping below $68.00 a barrel. you know great question for those up over 13 percent in the months and gasoline is over $24.00 and a half percent in one month there is a little profit taking among strangers that's the easiest way of looking at it there is a lot of supply can come back to market from both opec so. i think it's important to recognize that some of these decisions by opec are political as much
as they are economic we do as you mentioned we've got to keep an eye on inflation and not just c.p.i. and p c e these are convenient and very tortured statistics and certainly a lot of countries are watching exactly what oil is doing right now and that carries a lot of weight now kristie u.s. equities are continuing their rally on wednesday following the c.p.i. report cannot really be sustained and what's pushing equities higher at this point . well right now the data wednesday showed the february consumer prices increase point 4 percent which matched expectations actually so the biggest concern that the market had over the last month and contributed to the nasty sell off with saw last week was the fear of inflation running hotter than we estimate so that concern has been put to rest for now the yield on the 10 year has ceased going parabolic as a result easing the concerns of the country's growing debt burden will be too much for the market to bear and as for what's pushing equities higher we have the house democrats passing
a 1.9 trillion stimulus bill wednesday sending it on to president biden for signature approval and that means that checks of up to $1400.00 will start going out this month so the combination of the stimulus and the rise in rates have kind of divided the market recently largely favoring stocks leveraged a recovering economy over tech and growth stocks that has led during the pandemic is taking a bit of a breather today after the comeback rally we saw in the previous session yesterday so we expect there to be a lot of pent up demand and consumer spending with the incoming stimulus and we've all been talking about stimulus for weeks and weeks now and it's finally here finally approved and finally headed to the oval office but there's another topic that we've also been talking about for weeks and that's this ongoing game stop saga david i want to ask you about that because as we saw the game stop stock popped 40 percent before quickly falling back down what is behind this crazy activity when it seems like all of the short squeezing has been done already. well
a real solid study of fundamentals i think investors are moving there because you get a huge dividend yield improvement in revenue year on year improvement in earnings very attractive return on equity of course i'm kidding this is a trading sardine and you still have 20 percent of outstanding stair shares short today you had 50 percent more volume trading and it's really interesting to look at this sort of abnormal highly speculative behavior it's the kind of trend that you see which is indicative of excess liquidity in the system we're back to stimulus both monetary and fiscal and often characterized as long term market tops given the loss of leadership from your high flying tech stocks you nasdaq $100.00 and this very strong rotation in the dow we appear in our view to be putting in a top speculation of the sort with game stop is characteristic of the kind of manic behavior that you see a stock market has gone too far right now kristie i want to get your insight on
this when it comes to game stop why do you see it playing out this way and where do you see it going from here. i think as we said like there is going to be a lot of all its short term volatility with a lot of the records they don't think that the frenzy is over there is going to be a continued attempts squeeze us from here as for fundamentals there is absolutely no one of the summer name right now this is just one of these stocks that are going to take a really big rollercoaster ride so as as for where it's going. no one really knows from here yeah it certainly seems that way right now and kristie i also want to ask you about another topic here which i never thought that we would we talking about but it seems like all of the young kids are talking about it and that's a roadblock it made of stock market debut on wednesday through a direct listing meagan's trading at $64.50 so how is the name being received so far. it's actually being received quite well today with the name popping up well
over its referent price of $45.00 so at $72.00 a share roadblocks would have a fully diluted valuation of 46800000000 and a market cap of $39600000000.00 so the gaming tax revenue has surged last year as millions of kids were stuck at home due to the coronavirus shut downs and on average 37100000 people globally log on to robots daily to connect with friends and play some of his most popular games so this basically fueled 85 percent year over year job and robots daily active users and 2020 across more than $180.00 countries so it actually looks like robots are set to join the ranks of these mean stocks like game stop and amc because we have dozens of posts on social media platforms and reddit suggesting that the company's shares will draw a wave of buy from the army of the small time investors who support the brand so while roadblocks has enjoyed oppressive growth streaks were out cold and into a community of more than 8000000 active developers the valuation is going to be
a very difficult pill to swallow for investors because roadblocks is particularly difficult to value there is no telling what will happen when schools reopen and kids return to playing with their real life friends the company has been adding content for older audience the 13 to 15 year old however the virtual concerts the media's educational experience is they're still primarily very reliant on using their parents' money i mean i david i want to get you in on this topic too because i know chip ecclesia we talk about gold in oil and all these commodities but the same time now we're also talking about reddit game stop and robots all of a sudden do you see this is being kind of the way of the future to get younger kids hooked on getting involved in the stock market. yes certainly the game of occasion is a part of the trend and it's one of the things that the new c.c. had is going to pursue to see if this is a healthy thing or not a healthy thing so i would look for some sort of regulatory control to be in place
within 12 months and that's going to be a defining factor for other aspects of investment that become game of fide gensler's very very keen on that and he's made clear that he's not particularly happy with the trend in volatility the vulnerability that the small investor has not necessarily understanding what's at stake when real money is invested great points to consider here kristie i david mcelhaney thank you both so much for your time. thank you. the very 1st tweet ever posted is now up for auction and it could be yours for just $2500000.00 here's that tweet from 2006 quote just setting up my twitter see jack dorsey is putting it up for sale as part of the and then craze or not unfundable tokens and the process will go in the proceeds will go to give directly which fights poverty in africa and if she
ownership is recorded on a block chain making them unique and rare by design artist or selling and i think she's in other ways you can buy and if she's for music albums or highlights he sports moments and even christie's is getting to the trend sewing a collage of $5000.00 pictures by digital artists be people right now the highest bid is $3750000.00 so if you have a little bit of extra cash hanging around that's all for now you can catch a boom bust on demand by downloading the portable t.v. out for your apple or android device we'll see you here next time and as always don't forget to question more. viewers.
this is. essentially a little bit of the direct you know well well well oh whoa whoa whoa whoa whoa whoa whoa. a lot of money your deal and with. a lot of a lot of people from all over the country. you don't make a $100000.00 a year. as. there is an issue. here in india. they were told 16 hours a day of hard work for the work was not easy work and so they want to relieve their stress of how do they relieve their stress these men move back out like he's men that comfort these many. people have been murdered up here people been raped there are massive drug issues up here you have
a boom you have everything else that comes along with money. some control for a middle class. muslim are very hard working people who want to get ahead that is either have some some health issues or have some of those trick about luck the whole time joel moon told me he's paying for a place to live and missing just a month's rent can get you a link to the gunpoint if anything bad happens to any thing that just throws your budget off slightly. you better catch up real quick or you're going to have a judgment of possession against you and get addicted anyone that's homeless is treated like garbage people look at you like a monster or someone bad or you chose to be there most of the time it's not the case see how it is to be pull in the world's richest country. join me every thursday on the alex salmond show and i'll be speaking to guest of
the world the politics sports business i'm show business i'll see you then. when you have a government to print money without. without any accountability whatsoever. market reaction. in the form of the bond market. oh my god. the gold bugs would say oh my god going to go higher because the government's out of control but both of those have been. we don't have. any more. to do. you know what.
one of the worst mass shootings in america was in 2017 the tragedy exposed a little of the real last big women who. control. the. reveal. really and now it's part of the machine. american public barely remembers that it happens just shows you the power of money and lost. the powerful showed that true colors when the pandemic hit the most contagious contagion that we've seen in decades and then you have a mayor who doesn't care. to control group. deep indifference to the people. to take an action. is a money machine huge cash ran by people who don't care people's lives. in
the headlines this hour on are the czech president says his country needs to start using russia's. vaccine and calls for the health minister to be fired for refusing to approve the drug. italy norway and denmark suspend the use of the. vaccine after reports of blood clots. among those who receive the shot. written shuts down for brand new coded emergency hospitals built at a cost of a half a 1000000000 pounds. boils over a mere one percent pay rise for frontline health workers. the most this is that equates to around 3 weeks and in many homes just right.