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tv   Boom Bust  RT  June 10, 2021 8:30pm-9:00pm EDT

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documentary, see it on our to the method boom bought the one business show you can't afford to mit ambridge. born in washington coming up. kinda in the united states have touched base on a host of economic issues including trade and investment. straight ahead. we discussed the future of cooperation between the world to largest academy. then we analyze the latest surgeon inflation and consumer prices have spike to their highest level. in more than a decade. we'll break down the trend and what it mean for monetary policy and l. salvador has become the 1st nation on earth to adopt bitcoin as legal, tender. later on, we're going to bring him true analyst in the field to take a look at this major leap with the facts today. so as i write it,
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we lead the program with news that congress officials from the united states and china have agreed to push forward with pragmatic trade and investment cooperation in their 1st call for the start of the administration of joe biden. now this was the 3rd call about trade involving high level officials of the 2 world's largest academies, a spokesperson for china. the ministry of commerce commented on the importance of this relationship thursday. so me as the 2 largest economies in the world, the essence of the china, us economic and trade, mutual benefit and when, when both sides have their own concern, all trade fields. on the basis of mutual respect, inequality. we can explore solutions on the dialogue and consultation and the call comes just days after the u. s. senate passed sweeping legislation to bolster competition with china. so for more on all the let's bring in boom, but co host christy i. now christy, as i just mentioned, this is a 3rd high level trade talks between the u. s. and china and just 2 weeks as any
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progress actually been made or is this just about politics call right now. the exact details surrounding the latest round remains scarce and washington haven't yet even issued an official response. so there are hopes invasion that a more rational approach from the bite and ministration could lead to a reduction in tears and further easy restrictions on chinese companies. but no, i don't think any real progress has been made here. a lot of it is just smoke screens and politics gives the illusion of work and dialogue and that progress is being made. it also keeps the headline busy, especially in tense. geopolitical situations like what we have here. and furthermore, i definitely think that this was a staged a little pony show, given the timing of all of this right ahead of the g 7 summit which will be held from june 11th to the 13th in england. so high on violence with the priorities is to restore us alliances and transatlantic relationship and to make a show from a position of strength and influence. and what better way to do that than to be
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seen getting a law play nice with a rival. meanwhile, china also sees this as an opportunity to offer sure that they themselves council play nice with the rest of the world and also to expand their sphere of influence. and how is china actually responding to that senate bill that we talked about the u . s. innovation and competition act. well, like we said yesterday, it's less about the fact that the u. s. is trying to increase its tech already budget and more so the fact that it's painting china as a hostile threat. the us wants to spend an additional $250000000000.00 on sundays are the infrastructure green pack go right on ahead. that's it. but that bill will never get past the polar i senate. so instead this bill is basically drafted as a declaration of a cold war against china in order to unite everyone together to pass it. so now beijing has reactive by mocking washington, paranoid delusions and cold war mentality, and is calling for quote, an immediate hope to the legislations progress as it goes to the house. so the u. s
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. is completely distorting the original intent of innovation and spirit competition . and that's the other half of it, right? because on the one hand, the u. s. is calling our open communication and spare competition with china. but then on the other hand now wants to subsidize and grant fund and fund the u. s. tech industry with a free $250000000000.00 steroids injection money. so it isn't really exactly practicing what it's preaching either. and now lastly, china is also passing their own logic counter for and sanctions. what do we know about that? very little right now. the national people of congress has passed law thursday to counter these sanctions, and the pressure is currently facing from the e. you over trade and technology. the details have not been in the east, but it's the latest and most legal set of tools to respond. and it's intended to give chinese itala tory met with jimmy and more predictability. and it's likely. ringback this is in response to the fact that at 4 speed more hurdles up ahead and
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potentially more sanctions that will be coming down. so it's designed to get china predictability since it has an acute trump of being irrational, unpredictable like he's throwing a tantrum. this is to give china a framework and an opportunity now to make themselves look more organized and more rational. boom bus co host, christie. i excellent analysis as always. thank you so much. thank you. and u. s. consumer prices in may, rose at their fastest rate in more than a decade, as the state of inflation remains in focus. now the consumer price index by 5 percent from the year prior. the biggest increase in c p, i jumped 5.3 percent in august 2008, amid the nation's last financial crisis. now, as we've talked about on this show time and time again, the federal reserve has been using inflation as an indicator for whether or not to change monetary policy. but the fed has maintain the rise and inflation, and recent month will be transitory temporary. as the country's economy continues
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to reopen after it was decimated by the cobra. 1900 pandemic. joining disgust is octavia miranda. he's a ceo of optimist. l l c. octavio, there's a lot here, but i want to start with prices for march through may. so over that 3 month period actually jumped by nearly 10 percent compared to that same period last year. what is the takeaway here and how concerning is all of this data? well, i think it's very troubling. it's very concerning. i mean, we've seen the consumer price next jump quite significantly. we've seen commodity prices right across the board jump as well. so this is very concerning. seems to be gathering steam with anything else. and i don't know how policymakers are coming to the conclusion that this is transitory phenomena. this is going to go away and sometime in the not too distant future, i don't know which models they're relying on to make those kinds of forecasts. to me, it looks like they pumped a huge, huge amount of money into the markets, and now it's coming back to haunt us in the form of inflation. i don't see an easy way out for them. i wish i understood the models they use and predict that there's
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going to be transitory, but i just don't see that. and do you think right now is the time for the federal reserve to change their monetary policy? well, i think j powell is petrified. i mean, you go back and think about what happened when he took over the fed. he joined in early 2018. just as the fed was back then sort of thought and type monetary policy as well. and the markets equity market sort of greeted with a slight crash. i mean, you went down 15 percent, not even 20 percent, but some of the 15 and 20 percent and they sort of persisted and try to raise do more and then the market is crashed. even further between september of that year and the end of the year and then responded by that by stopping the increases and going back and like i want to decrease again, equity markets and like that. so i think j power, in particular, been chastened by this. his ability to increase interest rates, i think he knows inflation just around the corner. but he also know, and the only way to deal with it is to raise interest rates and tight managed policy. he also is acutely aware of the fact that if he raises interest rates, the equity markets are going to respond very,
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very badly indeed. so he painted himself to it into a cold, and i wish him luck in terms of getting out of it. but it's unclear how he's going to do that, and i want to get a little bit of economics. what are one here? because how does raising that interest rate and removing all the q e that's been done by the federal reserve. how is that going to help inflation just for our viewers today understand this thoroughly? well, what if it's straightforward, inflation is going to be tied to the amount of money that's out there to get to the demand for money. and that sounds a bit weird amounts of money think is always about the same, but so, so people that the, the fed as tom liquidity in the market. so the, the supply of money is increased enormously and was having the same time as always, seem to be demand demand increase of money. so in times of uncertainty, like we've seen during this pandemic, the public's demand and corporations demand for money increases. you hold on to cash balances, as soon as you start to feel a bit easier about the thing,
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you don't demand cash as much. and so you start to spend and say, i don't need to hold onto that cash. i can move the money into other things and then the value, the money falls as a result like any other commodity would. so as the value, as the demand for that then then false and it becomes worthless. and that is what inflation is, is basically money becomes worthless. so it's all the question if you would have demand supply, like economists always say about everything is always on supply. that seems to be the answer to m b economy problem. let's turn to your neck of the woods a little bit. the european central bank also waiting on inflation in the block thursday. inflation has picked up over recent months. largely on account of based affects transitory factors and an increase in energy prices. it is expected to rise further in the 2nd half of the year before declining as temporary factors fade out. and other se be also said it would continue its emergency by purchasing at
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a significantly higher pace in the coming month that it had during the 1st quarter of this year. is this the right move for the economy and how parallel are what the f c b is doing and the fed is doing at this point? well, i think christian god, explicit wonderfully. when she said, inflation is picked up because of bass facts and i think that was beaut report. i wonder what base fact she's referring to. maybe that's the translation of the french. but yes, based driving prices up and it's a direct response to the monetary policy. the d. c p has been pursuing, which does that look mildly insane? i mean, it make interest rates on german government bonds been negative for as far as i can remember now. so the 10 year bonus, a minus 2.25 percent and doesn't look like it's been has any chance of going above into it and supposed to territory. so you got this very weird situation. europe, where on sort of the lead indicated bomb prices, interest rates are actually negative and they're talking about pushing it down
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further. so i don't know how sensible that is, but that's the policy that they're committed to. octavia ramsey of optimist. l. l. c. thank you. thank you. so you want the cobra 1900 vaccine, but what if it's not yet offered to you in your country? well, if you can get a us visa, travel agencies are now operating, offering trip packages to the united states to get inaccurate. it all in an effort to boost a tourism our de correspondence side, cavender joined us with the details. so brandon from mexico all the way to our ginger and brazil, thousands of latin americans are booking flights to the u. s. for the opportunity of getting vaccinated because in their own countries, they have no hope of getting a vaccine any time soon. so as you know, latin america is one of the world's worst affected by the pandemic. with the death toll of over 1000000, people in almost 89 percent of the deaths occurred in these 5 countries. now, as a result, many don't want to wait any longer for their turn to get vaccinated. so where are
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they turning to places like new york or miami who are using a vaccine as an opportunity to blue tourism and their state. welcome to new york city. your vaccine is waiting for you. that's what new york city government right here announced on twitter, where they'll administer the johnson and johnson and vaccine to tours iconic sites across the city. so think of times square, you get the corporate 19 vaccine, or statue of liberty. you get the over $900.00 back same plus the u. s. embassy in peru, brazil, and mexico have already even advised residents that travelers could visit the u. s . for medical treatment including cobra, 1900 vaccine and as far as south as origin, tina travel agencies are selling vaccine tourism trips. now take a look at this breakdown from a travel agency in when us iris, which details estimate costs of getting vaccinated in miami. now, airline ticket,
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$2000.00, hotel for one week, $550.00 food $350.00, car rental, another $500.00 to cover 19 vaccine. 0. so all for a total of $3400.00, you could get your vaccine. now these vaccine tours have also cause such a huge jump in air travel to the u. s. with fairs between line american countries, the u. s. even tripling since january. now that even as airlines have increase capacity, now it's not just latin america, brand travel agencies in thailand. i will also started selling vaccine tours to the us. inside of the u. s. isn't alone here, right. other nations are actually offering these types of vaccine tours, if you will know. absolutely. the u. s. is not alone and offering the vaccine tours right now. the russian government is putting together a plan to bring back in tourism to russia, which should be implemented by late june. now, fine,
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i was looking to travel to russia for the vaccine should be ready to sweat anywhere between $152500.00. not including air for now. additionally, the mile beaver has said plans to vaccinate visitors upon arrival to help drive up their tourism. now lastly, guam, this tiny little island which is close to the philippines there, close to japan, still korea and taiwan is also jumping on vaccine tourism wagon and tourism is huge and crucial for guam, which relies that i for one 3rd of its jobs. so they're also hoping that this is going to jumpstart derek economy and i must say not everyone things that vaccine tourism is a good idea. now the world health organization is calling this a scandal is inequality of vaccine distribution concentrated mainly for the rich people. they also think that it will prolong depend demik and also threaten and well backs and over countries with the risk of new drug resistant strains. brent
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r t correspondent sites avager. thank you so much time now for a quick break. but when we come back, i'll salvador has become the 1st nation on earth to adopt big pointed, the legal tender. we'll discuss what it means for the world's most popular crypto current, the, and el salvador as a nation. as we go to break here, the number of close driven by adrenal shaped control. those with the in me
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thing we dare to ask me here was our annual summer solution where we know not a problem. but on the solution, the one of the persian gulf, the wealthiest country as has spend billions of dollars on state of the art stadiums. well, look at this, the stadium is really taking shape. you can see the bowl and most of the stands now, when we were here a little bit over a year ago, at the same construction site, it was just a foundation and a few metal structures. so it seems that time why this idea to use shipping containers as building blocks has definitely paid off. i mean,
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they're easy to assemble and easy to dismantle, just like playing with lego the for the 1st time in world history, the stadium will be billed from shipping containers and what's more, it will be completely dismantled after the tournament. mm. welcome back with all the bad news happening. bitcoin recently, there is some especially important crypto currency news coming out of el salvador, the central american country on when they passed the law to become the 1st in the world to accept bitcoin as legal tender. the designation allows bitcoin, the world largest crypto currency by market value, to be used to buy goods and pay taxes and bank lows. businesses would be required to accept
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a bit coin for payment with the bit coin dollar exchange rate set by the market. so what does this mean for salvador and for bitcoin? well, joining us now to discuss is blue bus coast crypto currency analyst bend swan. and jeffrey tucker. he's an author of liberty or lockdown and calmness with real clear markets. thank you both for being here. ben. i want to start with you, and this is kind of odd to set it up this way, but the 1st question has to be about the volatility of bitcoin. because on wednesday, i heard an analyst on another network asked the question, what happens if you order a pizza? by the time it arrives, bitcoin has dropped 30 percent. now this seems a bit wrong headed and not quite in reality of what happens here. but how do you have legal tender that has such volatility? i think, is the question he was trying to ask. yeah, it's, i think it's a fair question. obviously a lot of i personally and that example, right. it's quite a good fall that fast. but if it went up that fast enough would be great order a pizza, my time, it gets there. your, your delivery driver gets a great tip. here's the thing, is that
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a lot of what makes bitcoin volatile really has to do with the volume in transactions, right? so when people go and buy bitcoin, large groups like mastercard tests, but they come in and they buy a $1000000000.00 for the big coin. obviously that's in the price, skyrocketing, and then when you have big sell offs, obviously the price drops. but one of the reasons that we don't see a lot of stability in bitcoin is because it's not treated right now by governments as the currency. it's treated as an asset. so the more people buying that asset, the more the price rises, the more people selling the asset, the more drops. the problem is, is that if you turn it into legal tender like they're doing in el salvador, you'd actually resolve some of those volatility problems. and the reason for that is because right now there's nothing is priced in bitcoin, bitcoin is priced in dollars, that's how we determine the value of bit coin it and it's still attached to the us dollar. but if you instead said, we're going to use bitcoin as legal tender, and so you're utilizing it on a regular basis in the countries around the world and markets around the world and, and shopkeepers and merchants around the world are utilizing bitcoin as the form of
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legal tender, it would alter some of that, that instability and it would create where your, your pricing things now in bitcoin as opposed to pricing them and dollars and then big coin as a reflection of that. and jeffrey, i'm going to ask you a question about that. i want to have one quick follow up on this because when from the merchant and when they receive a payment, when the pizza place in that scenario received that payment is it then settled pretty much immediately back to us dollars. so you don't have the volatility in your coffers where you're trying to say, figure out your book at the end of the day, you might have made 30 percent over what you actually sold. well, not, not really with big coin so that one of the problems with big coin is a legal, tender. and there is a problem with this is a big point really too slow to be legal, tender for, for shopkeepers and merchants because it takes so long to process those transactions. so there are other crypto out there, which would be much better suited for this because they do have instantaneous transactions. so the price in settle at that moment, bitcoin is not exactly the same and that it takes much longer to settle. so the
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value of the big coin while it would be settled upon that transaction might be different when you actually receive it than it was when you made the transaction high. and jeffrey, is there a major issue here with a country attempting to bring such a volatile assets, such as bitcoin, into the national economy? and if not, then why just pick what i guess the bank point because otherwise it might be faster . where are these are all legitimate questions the legislation and have it passed by the president is a very interesting guy actually. and and super incident. crypto is like super intelligent and passe about this. i think they've tried to build in a system that deals with the volatility which has to do with their own central bank, which will be holding a lot of dollars and is willing to exchange them at the market rate for bitcoin. and so what that means is that government into accept amount actually that's a very interesting issue for the volatility of, of the big claim itself. so the merchants can hold it or send it back and have it
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cleared by the, by the sub dorian central bank. back to dollars and i have to have it orient central bank holding back by and then it crashes then you know, that's on the government to it's not on the merchant. so they, they kinda got that worked out a little bit, you know, in terms of the processing fees and, and, and so on that $1.00 credit that's a little bit of a complicated issue. because on one hand it's, it's strange that a government re favor bitcoin over all the other 10000 encrypt. those are out there and some of them are much more suited as has been correctly points out for, for hand to hand training because that really good for that. i think the average processing fees now are like $5.00. i'm actually more expensive to use and credit cards. you know, however, the president is working with the while a commercialized is in the 2nd layer technology called light needs. so i see this
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as a to some extent, as an, as an experiment and the plain lightning technology, which has been washington development like 6 years and still i don't think it's quite ready for prime time. i may not be correct about that. you know, i'm not sure i'm ready for it, but nonetheless, i think tablet is going to be playing with a lightening network. look i, i have plenty of problems with the way this thing has come down, but i'm also agree with the crypto community is very exciting. developments and it's the 1st iteration of many and it's a blow against a dollar, which is why the i m f and the world bank are making frederick calls with are trying to stop it. and then you know, to, to a lot of what jeffrey was just saying, you know, out of it, or is one of the poorest nations in the world. so this seems very, very risky to again, jeffries point there. well, it is one of the 4 nations in the world, and that's why i think this is actually not a risky move. i think it's a, it's
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a for thought for thinking forward moving move, right. it's not a, hey, we're in a position where we can't do anything, you know, outside the door is so poor that it uses us dollars. how poor it is. meaning that it doesn't even have its own currency. it's simply uses us dollars as the national currency. there, which makes it actually in many ways the perfect testing ground for this, if you want to turn the coin into legal tender to try to do it in a small country that has its own currency, actually wouldn't be a very good experiment. this is a much better experiment. and to the point about the president of the country he's, you know, jeffrey says he's, he's an interesting guy. he has a twitter profile picture where he has laser eyes, which for those in the community know that's a part of being in this community. he is an interesting guy. he has also reduce crime by the way, in that country by 75 percent in the last year, which is pretty remarkable. and also what was the most violent country in the world just 2 years ago. so what i would say about el salvador though,
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my prediction is watch the hit pieces that now come out about the president of l salvador, claiming he's an autocrat, claiming that he is cracking them on the country and terrible wait, i will bet you in the next 6 months to a year, you're going to see one hit piece after another in mainstream media. talk about how terrible this man is on a whole variety of levels because he is messing with the banking system. and for sure, we're out of time because i know we can talk about this for, for quite a while here. bo, bus ko, it's been swan. and jeffrey tucker. com with, with real clear market. thank you so much. thank you. and finally, crypto currently is setting records once again, and this time it's in miami, the hot real estate market now, according to forbes, a new $5000.00 square foot house. so for 2 point or $22500000.00 in crypto right now, the buyer and the type of crypto use are still anonymous. but this is thought to be the most expensive residential crypto deal in the united states. and the most expensive price per square foot miami beach,
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the new resident will enjoy $360.00 degree view of miami, shoreline and city. the suite also features 4 bedrooms, 4 baths, a wine tasting bar, and a nearly $3000.00 square foot wrap around terrorist deal. only took 10 days to close with crypto broker, solid block, and that's it for this time, you get blue bus on demand on the brand new portable tv app available on smartphones and tablets. google play and the apple app store by searching portable tv, portable tv can also be downloaded on newer model, samsung, smart tvs, as well as roku devices, or check it out at portable. that tv will see you next time. mm. ah. as a career professionals point is much tougher on some than others year old myers by everybody. so why would somebody believe me, i was just
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a little girl. the price paid to, to, to achieve that really was, was how to read in the paper this morning. usa swimming coach, arrested, allegedly had sex with a 12 year old girl. this happens almost every week. we get calls at the office, i get informed about one of my greatest fears is someone's going to start linking all this together. there's going to be a 60 minute documentary about youth coaches in sports like gymnastics, swimming. yeah. we're here in saint petersburg at the international economic form. and the topic of our program is the global economy. how is it changed since coven, for the winter, for the loses? what are the challenges and what are the opportunities? this is your media a reflection of reality?
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in a world transformed what will make you feel safe for the tycer lation community? are you going the right way or are you being that somewhere? which direction? what is truth? what is faith in the world corrupted. you need to defend the join us in the depths or remain in the shallows. ah, one of the worst have a mass shootings in america was in las vegas in 2017. the tragedy a close a little live in real life vegas. where many say elected officials are controlled by casino, knows the dangerous shooting. revealed what?
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the l v m. p. d really is and now it's part of the spin machine. most of the american public barely remembers that it happened just shows you the power of money and las vegas. the powerful showed that true colors, when the pandemic had the most contagious contagion that we've seen in decades. and then you have a mayor who doesn't care. so here's caroline goodman, offering the lives of the biggest residents to be the control group. to the shiny facade, conceal a deep indifference to the people might have been saved if they were to take an action. absolutely, keep the registering and keep the slot machines doing. this is a money machine. it's a huge cash register that is ran by people who don't care about people's lives being lost. the, the
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ah, a thing investigation reveals that many of america's richest billionaires are avoiding taxes. but the u. s. revenue service seems more concerned with finding out who leaked to be information your way for backtrack on its previous fall approval of ukraine's controversial kids for the european football championships, saying a slogan on the player shirts must now be removed and on the eve of the delayed euro 2020 tournament, the world health organization ward and the 11 host nations to stay vigilant and prevent a repeat of the covert up 13 last summer. ah .


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