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tv   Boom Bust  RT  June 3, 2021 3:30am-4:01am EDT

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acknowledging however, the russian foreign specifically more your region soccer in one hop plan that's closer to asia, to the most dynamic economic region in the world compared to california. so i think the 21st century indeed is going to see the development of the russian parish than the most prosperous and the most dynamic place in russia, which i believe is what kind of for meant to the united states. again, you minister, who does russia, says allies here, partley's and helping all this happen. you talked about the east, so i'm thinking is it, is it china or is it asia who's going to help russia or is it going to go it alone and doing that well, nature really, we have more than 4000 alignment. there is a board there with china in the russian far east, and historically link have been very close. but if you see, i just left the panel discussion the session concerning the development of
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the russian far east. and we had the indian, i'm boss of the present. we had korean, i'm boss of the president. we had chinese guest by the conference. so i would say all of the major economies offer asia very interested then very engaged in the development of the russian parade. that basically, chinese investment is a leading of $1800000.00 ro, both already invested in the russian forest in our special economic zones, close to $75.00. been a little both from china, but they believed that potential remain much, much higher. and yes, i think after that monday make is the has some, we will see a major growth as our aim is to reach $200000000000.00 turnover, trading turnover with china. however, having said that price is growing interest from your in europe in partners as well . we are going to the french business mission in the next couple of weeks,
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and major french companies from my abt sector, from technology sector, from industrial sectors. i'm going to visit both from oil and gas as well. so i was again, as we compared, the ration for is to california. this is meant to be a global and international political, international corporation. open to all partners of the world. wow. that's a huge portfolio. got there, you can have a busy few days and mr. alexi chicken cough russian minister of the far is not tech region. thank you so much for coming on the program telling us about these big plans for the future. live on the international of a good day and thank you for watching it. oh that's, that's not what we're talking about on our tea. this is a sofa, but a heck of a lot more out. don't comments while they're running a socials, if you want to get involved in it here in moscow for know kevin or the team saying thanks for watching and have a great unprofitable day the
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the well, this is the one business show you can't afford to miss. i've been one and washington coming up j. b. s is returning to normal after a massive cyber attack, but the blame is already being placed on crypto currency. we'll talk about that. and amc is searching to new highs as the mean economy as it's called return. then we're joined by professor richard was talking about, the in inequality is tied to vaccines and the 9 new billionaires created during this pandemic. we have a fact show today. let's get to it. we begin today with the story that you had to know was coming just 24 hours after the world's largest meet packer j. b. s is shut
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down by a ransomware attack will now come the calls to ban crypto currency. it is so predictable . so here's the time table, brazil based j b. s has plants all over the world based on sunday that hackers had hit their north american and australian operations according to the company they can't process meet without access to their i. t systems or j b. s cells, beef and pork under the swift brand with realtors like costco carrying the pork loins and tenderloin j. b. s also owns most chicken processor, pilgrim's pride, they saw organic chicken under the just bare brand, but this random attack was very short lived. in fact, j b. s. and now on wednesday that many of its operations would restart on wednesday . that's just 2 days of interruption. but who's at fault, or j. b. s, notify the white house that the hackers are believed to be hiding in russia. in the last a, j. b, as notify the administration that the ransom demand came from a criminal organization, likely based in russia. the white house is engaging directly with the russian government were told on this matter,
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and delivering the message that responsible states do not harbor ransomware. criminals in, quote, boy was only a few weeks ago. remember that georgia base colonial pipeline was shut down after hackers got control a part of the company's billing system. but remember, there it was, in fact the company c e o, who made the decision to shut down operations that lead to fuel shortages along the east coast. which leads us to what i call before the predictable response that crypto currency. yeah, that's the real problem here. according to one study, 2020. so roughly $350000000.00 in crypto currency payments to ransomware attacks, which is triple the previous years take. in fact, a reason op ed in the wall street journal makes the claim that banning crypto would in ransomware. spoiler alert, it would not, and that if you can't bang crypto, we're told the fed should instead ban crypto exchanges. now, recent op, add on coin deaths to this issue on the right or david's, the more it's put it this way when it comes to banding crypto quote. there are many
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nuanced reasons to reject this argument. you could compare it to demanding a ban on cheese because your house is infested with rats. you could say that it is a massive category error, that mistakes a tool for a cause. and that, of course is the right point. and here's the biggest reason for it to pretend that banning crypto would in ransomware attacks is nonsense, largely because ransomware attacks pre date crypto. and let's be more precise here . the one biggest battle that we have with hackers is really not over ransomware. in fact, the biggest tax and recent history have nothing to do with ransom or crypto. in 2013 hackers sto credit card data and other personal data of 40000000 target customers in 2017 equifax, which holds financial data on a huge portion of american adults with rob, the 147900000 consumer records and the terrifying solar winds hack in which allegedly russia backpackers spied on dozens of us entities where they, by the way,
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still may have footholds was revealed just last year. by the way, none the facts involved, crypto currency ransoms, and of those examples solar winds may be the most important one. state back espionage has no strategic overlap with ransomware. in fact, the entire point is to remain undetected. also, the target is equifax breaches. they're similar to ransomware attacks in that they were aimed at accessing data, but that data was ultimately most likely monetized via identity theft and loan or credit card fraud, not crypto ransom. so coming back to j. b. s. and colonial pipeline. the real question surrounding all of this is, is the problem crypto currency, or is the real root of the problem. the automation of society, township cybersecurity, expert, a president of dark until he joins us now to discuss tod, it's good to have you here. you know, you get set up here, it appears that a lot of these recent high profile kind of claims about these crypto attacks in
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a lot of these, the wrong question is being asked. the question always seems to come back to how do we de monetize the incentive here instead of looking at the security issue, how do you see it? well, i don't think you're wrong and that i think, you know, we had all taken the position with paris and kidnappings, in general, from you know, 2030 years ago that we don't pay them. and, but now this whole ransomware problem, they've opted to pay them. and so now we've encouraged the behavior by the bad guys, the people that are out there, whether they're in rush or not, that are doing this behavior to do more of it because they know they're going to get paid. so i think that's part of the problem is that they end up paying them, well, they do end up paying them. but we know that with colonial pipeline, they paid almost $5000000.00 in right. and ransom colonial pipeline was the authority though, that actually shut down operations. so we were led to believe in the beginning, it was indicated to us that the shut down happened because hackers got into the system and they were holding the pipelines hostage. essentially that's,
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that isn't what happened there. j b s was down for just 2 days. i'm not saying that it doesn't have an effect, but they were down for 2 days. and yet all of a sudden this is a national security threat, but none of the concern that i'm hearing seems to be over the security systems that are in place to protect these companies, as opposed to the crypto currency issue. why you're corrected and we saw a j b s handle this much differently than colonial pipeline did. colonial pipeline came out and started screaming immediately. oh my gosh, there's this problem and we're going to do all these things. j b s was far more reserved about it, notified the officials and never said who, it was very different when we knew that on colonial pipeline, it was dark side that did this. we're not for sure who did this one yet. so g b s has handle it much differently and i think is calmed everybody and they were able to look back in handle it much quicker on their n. colonial probably could have done the same thing, had they not reacted the same of you know, frantic way that they did. the colonial story seems so bizarre to me because of the
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way they handled your. you're mentioning the right there. they handled it in such a strange way because it wasn't unlike j b s where j b says listen, they're in our system. we're going to take a couple of things offline for a couple of days, get them out and restore service and start processing meet again. that didn't happen with colonial. in fact, colonial did the opposite. they came out and said, we are deciding the shut down operations and they kept everything offline. i've heard a lot of people question whether or not there was a financial incentive. in doing that, i don't think you would necessarily have the answer to that, but it certainly seems bizarre in the way they behaved. it was, it was very different in that behavior. and i think that example of what not to do as a company when these things occurred. because once we found out what actually happened, then it was their billing department that got hit, not the pipelines, the whole thing changed rapidly. but initially we all thought that the pipelines were being hacked and, and we were not going to be able to get gas or gas was going to be, you know,
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open up in flooding, you know, communities. and that's not what occurred at all. and that's why i think j b s did much better job of handling this and they need to be the positive example. now we don't know if they paid the ransom or if they're going to, but they're handling the media much better then colonial pipeline did. and then j b s, this case, it seems like whatever has happened here, it doesn't have a long term effect in terms of the me processing because it took 2 days to get everything back up and running again. and again, it was a voluntary decision correct by j b. s. to take the meat processing i know here in the united states and in australia, offline for a couple of days. well, i think part of that has to do with a c, e o in a, in a c o at the top that had a concept of how to respond to this kind of problem. they probably learned the past 2 weeks over what happened colonial and may have had some other training regarding technology issues. but they were able to respond to a so much better manner and made sure that they probably had the backups in the
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things that we talk about, you know, from the technical point of view to have in place in place. and they're able to go, okay, you know, we've got this done, they've got a bad on us. but we're able to recover fairly quickly because we had the right stuff in place from the beginning about 30 seconds laptop. and i want to ask you is a part of this problem, the automation of society, that there is too much time being spent trying to automate everything. because as long as you don't allow people to be in charge of machines are someone can always hack them. well, that's always going to be the problem. i don't know that there's going to be a solution in the next in the near future because everything from your refrigerator to your car, to you know, the phones are carrying your pocket are automated and we're going to have this problem going forward. it's just a matter of trying to figure out how we can forestall and prevent some of these problems. and it's a challenge. it is a challenge township li, president of dark in tell, thank you so much. thank you. remember just a few weeks ago the whole game stopped amc read it,
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crowd trading story. it was everywhere. well, guess what? it's back wednesday. a frenzy of buying of amc entertainment stock triggered several trading halls with mean stock traders fuel in search of more than 100 percent. in fact, trading was halted several times. for brief periods shares changed hands that are pretty brisk pace more than 500000000 shares were exchanged on wednesday. so what's going on here? that's good analysis. so michelle, schneider partner and director of training research in education and market gage dot com and boom, boscoe health. christy i, thanks for meeting with me michelle, let's start with you. what do you make of this mean stock trading? is this going to become the new normal for the market? do you think? well, certainly has become the new normal over the last year. and yes has may be hard to justify evaluations for stock like amc or game stop. but amc actually had some real news in that they were able to actually sell $230000000.00 worth of stock to an investment firm so they are raising money. now the,
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i think the biggest problem though, when you're looking at these is, are still been nothing done with the fact that these hedge funds can go short. they have very little regulation. they can kind of do it under the wire. and they pay very small fines. if they actually get caught and it seems, the regulators are kind of helpless and powerless when it comes to all of this. they haven't really been able to do anything about it. so as long as that persists, then i think that yes, i think this is the new normal that you have this crowd coming in and they're able to send these fox flying. not just amc today and game stop it, also pets when crazy as well. so maybe it's a free top of popcorn that you get with a m c. i don't know. maybe it is a m. c, christie kind of balloon to a record market cap here of $33000000000.00 and this training prince. he, it's lead just as we mentioned, several trading holds as it serves more than 100 percent health wall street feeling about this. and honestly, why shouldn't mean traders be doing this?
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i mean, if they have the ability to wall street does this kind of thing all the time, why can't the average joe do it? exactly. there's absolutely no reason why they should and right now whether they're just getting a kick at sticking it to wall street and basically popping all the short sellers. but at the end of the day, it doesn't make any sense because it has a market value about 30000000000, as he said. and the theatre has been closed for most of the pandemic. they're expected to lose money this year and next. so most people short the name feel that it's overvalued and right now, even with the economy reopening, that still doesn't change the fact that the company has about $5000000000.00 in debt and need to defer about 450000000 in lease repayment. so right now, while she has very, very low price targets credits with the target at a $1.15, the party had that $5.00. the most aggressive call comes from like chad, who says it's worth about that target siding. that movie going habits have permanently change with hollywood, crushing the theatre industry by releasing new movies on streaming services the same day as there's the article release. so things like consumers have actually
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embraced streaming from home and are likely to be far more selective in what they have to pay to sienna theater going forward. but all those on mental reasons why and they should be short, it is kind of law on the read it crowd. and as a result, wall street parasol, about $1200000000.00 in real life. and unrealized losses last week and short positions helped him to the start of the year when it stopped for nearly $6000000000.00 mark market and losses. so now, right now, retail investors, they're having a kick, but i think their time in the sun is going to come to an end because it costs them incrementally more in order to buy additional stock. and the higher the market cap balloons do. the more cash it will take to keep it afloat. so michelle, with this idea that trading gets halted. is this something that happens often, or is this something that's been especially reserved for the the mean crowd when they get involved? because i don't remember hearing this happen very often when wall street traders go
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in heavy on a stock. but all of a sudden when the read it crowd does it's, it's a, let's pause everything and make sure that this doesn't interfere with the systems that are already in place. well, there are breaker systems in the market, as we know, certain on big down days. we've seen that happen. we've seen stocks halted in the face of big news coming. so it's not something completely new. back in the day when i was trading commodities, we with the commodities get haul date as well. and then there was a natural limit limit, upper limit down as far as you could go. so this is a highly unusual today the robin hood firm was the one that 1st was rumored to be the reason why was halted. and then they said no was just to reset with the volatility going crazy. so it's just there isn't. i really listen to what christie 7 and yes, may not be a forever thing. but i do believe that there is now going to be the targeted stocks that get over shorted by firms. and the fundamentals may or may not agree,
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but like she said, it's true. we're going to see the stocks continue to fly, and it may not necessarily always be the ones that we've seen recently, but i think we can see some new ones emerge. i think cannabis now is a target. let's watch for till ray went up crazy today. we'll see what happens tomorrow in christie, in terms of this, this mean stock kind of phenomenon, the mean trading phenomenon because it's also true of don't corner as well. right? doesn't necessarily have value except for the value that the buyers decide that it has. they're the ones you choose to invest in it, but when we're watching kind of these mean stocks go up, is this a fad or do you think it's going to kind of redefine the way the market's run based upon how the crowd views it? i think right now crowd trading is definitely the same because people have this mentality that they can band together make money together, stick it to all of the big institutional. but the problem at the end of the day is still the same because size at the end of the day matters and the bigger and market cap that don't coin our amc or gain my new when these things 1st started,
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all of their market house were in the millions they are now in the 1000000000. so the bigger the market cap gets, the more capital is going to take to keep it propped up or move it forward and keep the raleigh going. and if you can't keep the rally going, then every single read it or every single trader is just going to keep on dropping out because they're going to be like, i'm going to take probably here, i'm going to take profit here. as soon as people start taking profit, that's going to be a don last down because it takes incrementally more buyers and more dollars. so it really can go on forever and there will be a tipping point that the entire structure will come crashing down is going to come one after the other because the market cap has are surprised that of game stop when game stop had its moments spotlight. so retail will feel short on cash soon, but the thing is, unfortunately, there are rumors that of a puzzle, 4th and 5th round of direct stimulus checks. and we've seen these proposals come through and although they're supposed to be going towards helping the people get food, get their life back. in order after cobit, it seems like the stimulus checks are more toward given into whether it's don't
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coin or read it. i mean start going more towards gambling now, so it's not really having the effect it was intended to have. well, that, that definitely happened. i think a lot of new investors, especially into that crypto space don't understand the concept of taking profit. there. they think everything's diamond hands stick with the diamond hands, and we say it's not there are folks who are going to take profit at some point room, but kristy michelle schneider of market gauge dot com. thank you both for your time but i'm now for a quick break, but when we come back, vaccines continue to roll out across north america and across europe. but there are still there's a staggering gap of shots for the southern hemisphere. we're going to discuss economic implications and professor richard walk. and as we go to break, here are the numbers. quote, the ah, ah,
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ah, me the well, the number of people contracting corona virus in the united states is falling fast . in fact, sunday, fewer than 10000 americans tested positive for corona virus. but while a handful of well off nations have reached the 50 percent vaccination mark, at least $41.00 countries have yet to provide at least one dose to 2 percent of
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their population. that's according to data from the new york times. in fact, according to a recent report, the worst off of the nation's reporting vaccine numbers is the central african republic. but the population of close to 5000000. just 667 doses have been administered according to the guardian as of may 30th, only one percent of the 1300000000 shots administered around the world have been in africa though the continent represents close to 17 percent of the world's population. so why is this aps, professor richard wolf is host of economic update and joins us now to discuss. professor glad that you're here. that's breakdown what's happening with these vaccines because it seems that the reason for such a profound inequality largely breaks down to 2 factors. here, rich nation stockpiling vaccines and the difficulties developing nations have faced and distributed them. how do you see it? well, i think it's your right, it's those things. but i would add a couple of pharmaceutical companies, many of which got public money in the form of subsidies to develop the vaccine. and
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all of which were promised enormous purchases by rich government, which took away the risk of doing it on their own. and so they went into that direction, they want to make money, and to make money, you gotta be able to sell these vaccines either to a governmental authority or some private system. poor countries don't have the money and it's very ugly. but it's very simple. they don't have the money. that's not where the money is. you're not going to get the prime prices there for it. that's why we saw wealthy people from 3rd world countries flying into europe or north america, often misrepresenting who they were to get to vaccines. i think we're seeing something which we will look back on as a horrible moral and ethical lapse because we are giving life
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saving vaccines to people who are rich and depriving that same like saving vaccine. depriving people who are poor. and i don't know of any ethical or moral or religious commitment that could justify doing that. it is really extraordinary. and if we believe, as i do, that eventually the time will come when we will have needs here that they in those countries will be able to help us meet. they may be hesitant to do so. remembering what was done around the coven situation. the thought whether stockpiling issue, because it is fascinating to me that the buying administration is pushing for vaccination campaigns here in the u. s. are trying to in something that they're referring to as vaccine hesitancy. in fact, president vitamin spoke on tuesday and talked about being at 51 percent of the population being vaccinated and he wants to see more of the 70 or 80. the problem
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is there are a large portion of people who don't want to be vaccinated in this country while simultaneously, there are people in other countries who desperately want to be vaccinated, and yet they can't get access to the vaccines. it seems like a huge problem to hoard, if you will, vaccines here, and try to convince people to take them here. when there are people around the world who were waiting for them. you know, it's even worse, had been a number of officials here in the united states who have said that they expect to be an added states will now export vaccines because they can't find americans to take them. i mean, literally your point, but let me, let me stress something we know enough about this illness. we know enough about the variance, the different forms of this virus. it is very short sighted and self destructive of the united states not to make up priority. recent vaccinated all of the front line medical workers around the world. because if we don't, then they will be in
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a position to get the disease to spread the disease, to give the opportunity for new variance to emerge that will be resistant to the actions that we add. this can come back and give us here in the united states, all know the problem, all mother surge. so it strikes me as bizarre to give the low risk population in this country, a vaccine that you're not providing to frontline, medical workers who want to be in a position to help their own people cope better. this is a global virus, it's not going to be contained in one country when we have global air travel and all the rest. so i think this is not only morally awful, but it is a very dangerous activity, even for the most self interested kind of perspective yet. and even the fact that we keep pretending that some groups aren't low risk. there clearly are,
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are different levels of risk here. but i want to ask you quickly about this new report from oxfam. it explains that at least 9 people, 9 people have become new billionaires. since the beginning of the coven pandemic, thanks to the excessive profits of pharmaceutical corporations with monopolies on the coven vaccine. and especially when you consider you mentioned this a moment ago, fact that every one of these vaccines was heavily subsidized by taxpayer dollars. this seems to be the worst kind of cronyism that there is that you're taking advantage of a medical moment to become billionaires and it's happening at an incredible rate. every one of those 9 new billionaires is an idea or a major shareholder of a major pharmaceutical involved in the production of vaccines against college. so it is crystal clear. and as many commentators have noticed, if you add up the 19 or so 1000000000 that they have collected these 9 folks, that would be enough to vaccinate 780000000 people on the old.
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so that money flowing in that range of $9.00 individuals deprived $800000000.00 of vaccine, which that money would have paid for. i mean, these kinds of comparisons are going to come back and haunt us in the years. richard was host of academic update. thanks so much for your time. that's it for now, but we'll see you back here tomorrow. i'm pretty me the when our show the wrong. when all just don't the rules. yes to see out the same because the after kid an engagement, it was the trail. when so many find themselves, well,
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the part we choose to look for common ground in the we're segregated, all right. social class, last class. people also want to convert by 1st name. if you're born in to a 4 family, you're born into minority family. if you're born into a family that only has a single parent that really constrains your life, chances people die on average. 15 years old, born as a generational poverty. it's a, it's a fight every day to meet your needs and the needs of your family. the the, the the
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you are saying are change nationally, not headlines this thursday morning rushes signature business event this and petersburg international economic form was into each 2nd day. all going well with an array of high level guess lined up this thursday. and the can tell you were expecting russian foreign ministry spokesman or is it how does the next few minutes hope she'll be talking to his life? us look forward to other headlines today. supporters and opponents of a new government of rallied in israel with a coalition said to ed benjamin netanyahu the 12 year reuben. c for you, because we have been betrayed, totally bennett and gideon saw have betrayed those shocking proof emerges in france, confirming that.

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