tv Boom Bust RT June 16, 2021 7:30pm-8:01pm EDT
in union was low or has the theory fits with corruption, according to transparency international be seen is so widespread, does not raise concerns given that the issue is about to allocate billions of years of post pandemic. we're covering the root cause of the current corruption. i think is the power and order which has been created by the large pharmaceutical companies and the world health organization. this is meant that most resources are being put into mass vaccinations and also everyone being forced to take p c r tests. and this of course, is exacerbating corruption that already existed because this mass corruption, i'm the big company, come up in the lobbying. they pay to brussels in order to keep the vaccinations going magically. it's searching through to the rest of the population. for it, you often hold itself up as a model of integrity. the results of transparency international for romance as
challenges renewed and shows across the block that there is widespread content. so let's see or see paris boom bus coming up in just a few moments time for us us, it's america's lawyer. we're back in office with the latest shortest again. then i join me every 1st day on the alex summon, show when i was speaking to guess in the world, the politics sport business. i'm show business. i'll see you then me the the
this is been that the one business show you can't afford to miss. i'm rachel robbins in washington, coming up the long awaited summit between president biden and president takes place in geneva. we'll discuss later on what the 2 leaders had to say about their talks behind closed doors. plus housing prices are skyrocketing around the world, driving concerns of the building us housing bubble could lead to a repeat of the 2008 financial crisis. then the federal reserve and miss inflation has increased so much that it's raising its expectations for this year. but it continues reclaim the rising. prices won't be around for a long. we have a lot to get to. so let's get started. after all of the international meetings and face to face conversations, president biden has had this week. none has been more anticipated than his summit
with president putin on wednesday following a private meeting bite and opted to hold separate press conferences from his russian counterpart after previously referring to him as a killer and a worthy adversary. it was comments like those that signal the tensions between the 2 countries over everything from nuclear agreements to cybersecurity, while both leaders say they want to work together moving forward. there are a number of differences that remain when asked about the continued accusations that russia is behind reported cyber attacks in the u. s. person said he has repeatedly asked the us to work together on an agreement to eliminate such actions. but he argued the u. s. has a few problems of its own on the matter is america? according to us sources, the majority of cyber tax in the world are performed from us cyberspace. the 2nd one is canada din to latin american states. and then the u. k. only russia is not listed among the cyber spaces where the majority of cyber attacks come from. i see
now during biden press conferences, where no, notably, no russian journalists were allowed to ask questions. he argued that russia should care about its image, claiming the world would never accuse the us of interfering and democratic elections. biden also said he conveyed the following on the issue of cybersecurity . pointed out to him, we have significant cyber capability that he knows he doesn't know exactly what it has been a significant in the contract a violate these basic norms. we will respond cyber. he knows joining me now to break down this meeting or boom. moscow has been swan and christy i. okay ben, start us off. what if anything came out of this meeting? yeah, i'm not sure anything came out of the meeting other than kind of a comparison. i guess it's fine if you're in the media to compare the 2 leaders.
and the way they responded to reporters, the way they responded to each other, right? there's, it depends on who you're watching and depending on who you're watching are going to tell you a different story. but i think at the end of the day, if you take a look at what actually came out of this virtually nothing mean they talked about cybersecurity and they both left their private press meeting, which no one really knows what was said in there to hold separate news conferences in which they both fun the outcome of it. and the bottom line is, is that what the president was saying, specifically about the u. s. being the, you know, the leader in cyber attack? absolutely true. that's also by the way, true of hacks and ransomware, china leads the way and u. s. is 2nd in that category. so to act like russia is, the main problem in this space is pretty inaccurate. but i think when we talk about kind of the language going into it, mean over the last couple of days, we saw biden talking about a president who didn't, and he was asked the president was asked, do you still believe he's a killer and he couldn't even find the words to say yes or no,
just standard and some will do the whole thing. and then at the end of the news conference today, as he was walking out a reporter challenged him and said, what makes you think that is going to do anything that you're asking for when he hasn't in the past. and he turned around and said, if you don't know the answer that question, you're in the wrong business and he stormed off, right. and so we came up with very testing. so what actually comes out of it? i don't think a whole lot other than it continues the narrative of these 2 nations being an opposition to each other when they shouldn't necessarily be. and certainly those 2 separate press conferences did battle long with all of the things that the reporters had to say. and the questions that they asked while they were there. now, christie, one of the main issues that we've been talking about is all about cybersecurity. we know that biden has brought it up specifically with russia about concerns of cyber attacks and everything that we've seen reported in the media. is there anything that washington can do to stem the tide of these attacks? i mean, technically, i don't think there's really all that much washington can do, because russia has lined side of the u. s. major computer hacked over the past year
. the big one being solar wind would compromise all big tech manufacturing auto companies, as well as 5 ranches of the u. s. military, the state department, the postal service, nasa, the n h glowing homeland security. so that's quite a list. and the only thing that you can do to ensure is do a better job of safeguarding their own system. like for example, the colonial hack was made possible by a single compromise password. and now the white house had repeatedly said, months ago that it would take aggressive actions both been and unseen against russia. in the wake of the solar wind pac, some russian diplomats were expelled, some russian companies and individuals were sanction. and that's about it. and as of wednesday, the white house may student and economic sanctions against individuals according to bloomberg. but then here's the thing. when you haven't taken any action at all, even after something as massive as solar winds, telling people who have been picking your pocket that there are further actions you'd be prepared to take if they don't change their ways. that doesn't seem all that threatening, especially if you can flush,
don't have the ability to catch the pig longer in the 1st place. so solar one happened back in december, or at least discovered back in december, and it is now june and there has still been no action, so it's unlikely that bite, and we'll actually get a leg up in the doggy dog, ira warfare space. and we know that we've heard us officials say that they want to take the cyber attacks as seriously as say something like 911. so it'll certainly be interesting to see if they come up with actions. and what in the world does look like now. then we've heard from by then saying that he wants a more stable and predictable relationship with russia. what does that look like? especially with all of these accusations out there, even as, as soon as today. yeah, well and just one more thing on the, on the cyber hacking, you know, i agree with christy saying about, you know, what are you actually going to do about it? but i think one of the reasons that the u. s. hesitates to put any real kind of strict sanctions as a result of that is because the u. s. is doing it as well. the fact that the state
constantly does isn't the ca doesn't. we know they say we're talking in the angle of merkel cell phone just a couple of years ago. right. and so if you create a big deal out of punishing countries that spy on other countries, when the us would be right in the cross hairs of their own policies. but you know, to the question of creating a stable, predictable relationship. i was watching the news conferences afterwards, and there was a very interesting question that was asked about ukraine to put in about what, what about creating stability there and you've been the state life and the region. and his response, i thought, was pretty interesting. he says, it's not russia that's the stabilizing. that part of the world is the us. he says in ukraine, back in 2014, the u. s. wanted a new election. they were set to hold a new election and that wasn't good enough. so there was a, a qu, they over through the government, they replaced and installed their own leader in the country, right. that creates destabilization, that's not creating a stable ukraine. why? i think there's a lot of truth to that argument. whether you agree with prudent, whether you think that,
that russia is right in its response to ukraine. let's not pretend that one side. the u. s. is calling for stability, and the other side is d, stabilizing. when clearly, the us loves to overthrow countries around the world. and install their own leaders . there's nothing stable about that. and the last thing i'd say about it is, nato is a big part of this, right? leading up to this particular event in this meeting, it was announced that nate, ukraine is now part of nato. how does that stabilize the region? it says basically that the ukraine will now carry out the policy of the united states and canada and england. there and ukraine is, is that the concept and how does that stabilize the region? it seems to be at another example of the u. s. accusing a country of something that it happens to be doing itself, which we see all the time. now, christie, another big topic here, has been the nordstrom to pipeline. we know that the by the ministration is pulling back on sanctions over this project. so how will that impact the u. s. russian relationship once it begins to move gas to europe?
well, i think the us backed off almost as a gesture of goodwill. but in doing so, it locked leverage so too, because if the entire goal was to advance us efforts to counter russia in europe, then it was completely ineffective. so now the project will only deepen your energy dependent on mark gal. and biden's intent was to not risk a transit atlantic risk with germany at the time when he's been trying to reach out to europe and allies. so in plain politics, you had to sacrifice a rope to gain a bishop. not that it was particularly strong leverage point either. i mean, the pipeline was almost pretty much close to completion anyway, so it was more of a gesture than actually doing a real favor. but now we shall be how it all plays out. because if europe becomes dependent on math for energy, then it would actually draw them closer and they'll deepen their tight and perhaps they'll be closer to them then the us who doesn't really offer anything they particularly need at this point in time. christy. i fence on thank you both so much for your time and insight. today housing prices are skyrocketing
around the world and especially here in the us. but while the demand from buyers is overwhelming, the current conditions are sparking concerns that they haven't seen it in over a decade. that's right. bloomberg economics is reporting its property. bubble gauge is flashing warnings that haven't been seen since the 2008 financial crisis. they say it's the result of record low interest rates, unparalleled fiscal, stimulus locked down, savings ready to be used as deposits, limited housing stock, and the expectations of a robust recovery in the global economy. so joining me now to go further in depth on this is professor richard wolf, host of economic update, and author of the sickness is the system professor, despite warning like this one we're hearing from the federal reserve and the treasury department. they continue to say that they believe inflation will only be a transitory and they're not too worried. should there be more concern that we
could be facing and financial crisis, that would be even worse than what we saw in 2008? absolutely, and they're to basically use it with all due respect. we don't know the future. i don't know that you don't know it. j. powell doesn't know it. this notion that we can tell you all, don't worry. we will know what happens in the future. that is the most dangerous kind of confidence because it's obviously inappropriate, too many variables could change. we can predict that, and therefore we can predict what's going to happen to inflation number one, number 2, in the particular issue of housing. we now know that the inflation is very extreme in a number of countries so extreme that you're having price movements that remind
everyone of what happened before the world. housing market collapse back in 2008. so you put those 2 factors together. and if you are not larry, you're not paying attention, it certainly seems that way. and of course we know that when it comes to people like powell, he knows that whatever he says the market is going to react to it immediately. so there is also a lot of weight on every single comment that he makes. now, when it comes to who is buying all of these homes, particularly in the us, it's not always the average american. in many cases it's actually one of wall street top investment firms. so what do companies like black rock and j. p. morgan stand to gain from these purchases? and how will this impact the individuals who now find themselves competing directly with wall street? well, i think you're seeing a market that is now full of speculation. once upon a time, we thought of the housing market as basically being the companies that make housing
on the one hand and the families of this country looking for housing on the other supply and demand. and that they would make decisions based as they usually are on how much they can afford to pay and how much profit the home builders want to get. the problem now is that big speculators, wall street banks of venture capital, outfits, equity investors, all of that are in their buying record numbers of housing, wherever they think they're going to make it killing their gambling correctly. i believe that american inequality is getting worse, that therefore the number of americans that can afford housing, even before you take into account the rising prices, is a falling number and that therefore people will not be buying the way they once did
. they will be renting because they have to, so they're buying these houses and converting them into rental property. but that takes them off the market for people who want to buy a house. you put all this together and you have a market that isn't working the way it's supposed to. and let me make that simple point. the quality, the adequacy of an economic system is nowhere as clearly demonstrated as in the housing market. you know who golding and shelter is what we will need. either you make a housing market at a price that people can afford. or if you don't, then you gotta give people higher wages and salaries paid a higher prices. you gotta do one or the other, because if you don't, you're going to have millions of people that are homeless. we have that. and millions of people that are priced out of the market because they have to now risk
because they can buy and we have that too. that's a very dangerous symptom of any company that isn't doing one of the basic tests. all economies certainly seems like a slippery slope. now i have you on here. i also want to ask you about the other point here because it's not just investment firms here in the us home. purchases from foreign investors have also increased significantly with one report noting that suburban families could be sending their rent to ventures backed by canadian pension funds. european insurers, and asian or middle eastern government run funds. so why do you think we've seen this trend increased during the pandemic? and what is it about the suburbs here in the u. s. so there's attracting other countries. while here again, we have something looking a lot like what we saw before to 1000 an age grant. because be common. these are very weak because of coal. on top of it, interest rates, as we all know, are very,
very low around the world, barely above 0, even below 0 someplace. so, big institutions with money to invest, are facing very low rates of return in all of the secure money market lending situations. so they're looking for where they can make good returns in the american housing market. precisely because of its problems, you're getting rising prices that are drawing investors from around the world to put their money here. because they think they can make more money by buying houses or converting them into rentals, charging more rent because there's a population that has no choice but to rent because they don't have the money to buy the pieces and mich that they can get into. and what you're seeing is pension funds, banks, venture capital outfits in europe, asia, africa, latin america, finding that putting money into this market right now is
a clever thing to do. the problem is it's not building the houses and it's not solving the problem. it's taking advantage of a situation to make a quick great insight as always professor richard, well, thank you for your time today. thank you. the time now for a quick break, but when we come back, the federal reserve is preparing to raise interest rate sooner than expected. as the u. s. economy continues to recover and inflation continues to skyrocket. we'll discuss it all next. and as we go to break your, the numbers at the close, the
towards the summit, the bike administration pushed for a summit with russia. moscow agreed what the biden people hope to achieve, remains unclear. we are told the white house wants to restore predictability and stability. what could possibly go wrong? these are the for people who pull the trigger. i survive something and survive football. one of the hardest things that i had the face was not having a face, adult expectation that accepted their accept. the fact that i made that appointment, we have no fears. del change pretty fast for shots. different stories behind the bullets the
the federal reserve has announced that it could be raising interest rates as soon as 20231 year earlier than previously expected. the change was the result of the continued economic recovery and increasing inflation to that in the fed raise expectations for inflation to 3.4 percent. but that is still believes the increasing prices americans are seeing all around will only be transitory. so joining me now to discuss the latest is danielle the martino, booth c o and chief strategist for quo intelligence. i'll see now danielle, it appears that the fed gave the public exactly what was expected in today's statement. but what is the real message when they admitted inflation is going to continue to rise while also saying that it will only be temper well anticipating that inflation is going to be at a high level through the end of this year. would certainly suggest that the
definition of transitory, that you and me would think that to be, to be months in terms of span is actually potentially that a year. and that really changes the discussion. given the fed has said that it was, it was not going to be comfortable with inflation exceeding its target for too long of a period of time. so they're obviously adding flexibility to their ability to make policy. i get that, but that's a very difficult message for many american families who live on tight budgets in the face of not just rising inflation for, for food to put on the table, but also much more damaging li that of rents. yeah, exactly in it, we're watching those prices skyrocket all around as well. and you know, it's interesting because the fed also and now it's that it will conduct to small sell off of mortgage backed securities next week to sort of see how the market react. we've also been talking about those skyrocketing housing prices. so what
role has federal policy played in this housing market, and is it even possible for them to have a hands off approach at this point? so an fundamental level we're seeing people start to come back into cities. we're seeing the opposite on a fundamental level of what occurred a year ago, which was people escaping the cities and looking forward for the space of the suburbs in the excerpt. and that was a fundamental support for the housing market, but underlying that was also the fed, obviously being very aggressive in portraits in purchasing $40000000000.00 of mortgage backed securities every month. but i think i think that when you look at how very expensive home prices have begun there rising at the fastest pace on record that you have to say to yourself, well g, i think this policy is back firing. and i would behoove the fed to, to not to that. and maybe the announcement have been out of the new york said that they're going to be testing selling. and b s is a way to quietly broadcast that they're looking at this as the 1st target. when
they, when they actually do pull the trigger on tapering purchases, they might keep those treasuries going at 80000000000 a month. but pull back on that mortgage back, security, 40000000000 dollar month 1st in order to try and get a mortgage rates to not be so accommodate of as to make housing prices run off. the rails is another case of the fed talking about talking about doing something and then waiting to see how everybody react. now, one of the biggest parts of this recovery has been all about getting americans back to work. and despite concerns about how unemployment benefits were playing, a role progress is being made and americans are spending more and more money on services. so how big of a concern is the status of wage inflation and really the overall workforce playing right now? so i think it's really difficult to say we, we are seeing, we are seeing inflation on the services side. that's to be expected. now that we can get out and about, we're hearing anecdote of national parks having to close their gates and, and, and refuse entrance because they're so packed as so we know americans are very
excited to get out and spend money on services. but the question then present itself, we are looking into a future that not involve stimulus check for point. we're looking into a future where one state after another is pairing back those supplemental unemployment benefits. so you have to ask yourself the question. given more people are going to be flowing into the wage into the labor force, is that going to have a temporary effect on wage inflation? again, it's a matter of supply and demand. and for the moment that demanded outstripping supply . but we're going to millions of americans flowing back into the labor pool in a month to come. i think that that's one of the areas that j. j power wants to sit back, wait and see what happens before doing anything premature. now speaking of that supply and demand, we're also seeing those rising prices all around. so even as americans do get back to work, is there still a concern about how they're spending power will be impacted?
i think there's a very valid concern. again, what i brought up earlier, which is rental inflation, that is the opposite of transitory. that is the sticky kind of inflation that stays around. it becomes very problematic for the fed. it becomes because it becomes very problematic for households. and again, we've got rental moratorium, rent rental eviction, more times expiring in the month of june. and so you're looking, you know, there was a new deal report out today that showed in the, in the top 8 markets in america. rents are rising 1515 percent year over year. so again, we have to, we have to try and frame networks to the frame household budgets and what they can withstand. giving, given the fact that that housing is the biggest line item in their budget, and the cost of that has run off the rails. this is a big problem for the fed and it needs to be addressed. well, certainly be interesting to see how they address it. excellent points to consider here. danielle g martino booth. thank you for your insight. thank you. appreciate it. that's all for now. you can catch boom bus 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 me ah ah, ah, ah, the global geo political game, as it's called, sometimes rest upon the foundation, us dollars and privacy us dollar a world reserve current. now you've got
a major in russia to the outside of the dollar. that gives them a way to maneuver in a way that no other country can. but all other countries and the late in the end of the ability to maneuver outside the dollar. it's an incredible freedom that they now have nor stream to being completed. bypass the new frame, delivering energy directly from russia to germany is just the 1st of many, many, many, when always be polite, never engage with an aggravated or confrontational office. don't get into any conversation or start answering questions. just ask for an attorney to survive and interrogation. you've gotta be ready to stay around. definitely don't want to be going to try in the jump suit one cups. ah. you're more
likely to walk free if you're rich and guilty, you are, if you're poor and you've got 2 eyes and 2 ears and one mouth. so you should be seen in here and a whole lot more than you're saying. if you don't take that advice, usually going to dig yourself a whole look forward to talking to you all. that technology should work for people. a robot must obey the orders given it by human beings, except when the shorter does that conflict with the 1st law show your identification. we should be very careful about artificial intelligence. at the point, obviously is to great track rather than fear. i would like to take on various jobs with artificial intelligence. real summoning with
a robot must protect its own existence with the flooding and posing as causes optimism last year wraps up his landlord. geneva summit with joe white. and when you can give me, there was no hospitality on the country meeting was very constructive. i have no illusions following the meeting, needs that old nor knew that can't be any illusions. that's all part of those things rather less certain off the summit, even appearance are confused. putin with trump, i caught part or prejudice from the press conference and the end of his post saw it. news conference, joe boston questions the reward is playing.