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tv   Boom Bust  RT  June 17, 2021 3:30am-4:00am EDT

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what the 2 leaders had to say about their talks behind closed door plus housing prices are skyrocketing around the world. driving concerns of the building us housing bubbles could lead to a repeat of the 2000 a financial crisis. then the federal reserve and miss inflation has increased so much that it's raising its expectation for this year, but it continues to 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 conversation, 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,
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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 attacks 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's 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 was never accused the us of interfering and democratic election . biden also said he conveyed the following on the issue of cybersecurity. i
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pointed out to him, we have significant cyber capability and he knows he doesn't know exactly what it has been a significant and in fact, 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, they're 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. i mean, they talked about cybersecurity and they both left their private press meeting,
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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 president hooting was saying, specifically about the u. s. being the, you know, the leader in cyber attacks. 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 biting, talking about a president who didn't, and he was asked president biden 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 stumbled through the whole thing. and then at the end of this new 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, we stormed off, right? and so we came up with very testy. 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
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opposition to each other when they shouldn't necessarily be. yeah, and certainly those 2 separate press conferences did. that'll long with all of the things that the reporters had to say, and the questions that they asked while they were there. now, christy, 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 blind side of the u. s. major computer has, over the past year, the big one being solar winds 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,
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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 seen 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 soon 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 parker 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 will actually get a leg up in the doggy dog warfare. and we know that we've heard us officials say
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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 biden and 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. 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 of the u. s. is doing it as well. the fact that the in us, they constantly does isn't the ca, doesn't we know in a say what's happening 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,
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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 in the us. he says in ukraine, back in 2014 the u. s. one of the 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 is 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,
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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 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 will last leverage so too, because it, the entire goal was to advance us at 1st to counter russia in europe. then it was completely ineffective. so now the project will only deepen your energy dependent on moscow. and biden's intent was to not risk
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a transatlantic risk with germany at the time when he's been trying to reach out to europe, ian allies. so in plain politics, he had to sacrifice a rope to gain a bishop. not that it was particularly a 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 mouth for energy, then it would actually draw them closer and they'll keep in their tight, and perhaps they'll be closer to them than the us who doesn't really offer them anything they particularly need. at this point in time. christy i've been fond, thank you both so much for your time and inside. 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. an over a decade. that's right, bloomberg economics is reporting its property bubble gauge is flashing warnings
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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. 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 a 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
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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're not worried, you're not paying attention, it certainly seems that way. and of course we know that when it comes to people like powell,
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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.
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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
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point. the quality, the adequacy of the nico nomic 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 tasks all in common. these have certainly seems like a slippery slope now i have you on here. i also want to ask you about this other point here because it's not just investment firms here in the us home. purchases
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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, one being situations. so they're looking for where they can make good returns in
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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 a niche 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, killer grain insight, as though is professor richard. well, thank you for your time today. thank you. the time now for a quick break,
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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 global. busy geo political game, as it's called some time rest upon the foundation, us dollars primacy, us dollar a world reserve. and now you've got a major in russia to the outside of the dollar. it gives them a way to maneuver in a way that no other country can like all other countries or any late in the end of
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the ability to maneuver outside the dollar. it's an incredible freedom that they now have nor stream to being completed, bypassing ukraine, delivering energy directly from russia to germany, is just the 1st of many, many, many, when who know certainly know borders and the blind number please. as emerge. we don't have authority. we don't, the whole world leads to take action and be ready. people are judge crisis, we can do better, we should be better. everyone is contributing each of their own way. but we also know that this crisis go on forever. the challenge is paying for the response has
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been massive. so many good people are helping us. it makes it feel very proud that we need together in one of the worst ever 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 owners. the dangerous shooting revealed what? the l v m p d really is. and now it's part of the spin machine to the american public barely remember that happened, that just shows you the power of money and las vegas. the powerful showed that true colors when the pen demik had the most contagious contagion that we've seen in decades. and then you have a mayor who doesn't care to, here's caroline goodman, offering the lives of the vegas residence. to be the control group. to the shiny
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facades conceal a deep indifference to the people vice gonna be saved if they were to take an action. absolutely, keep the registering and keep the slot machines doing. this is a money machine is a huge cash register that is ran by people who don't care about people's lives being lost. 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 raised expectations for inflation to 3.4 percent. but said it still believes the increasing prices americans are seeing all around will only be transitory. so
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joining me now to discuss the latest is danielle the martino, booth c o and chief strategy for quill 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 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
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the face of not just rising inflation for, for food to put on the table, but also much more damaging. like that of rents. yeah, exactly in it, and 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
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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 of the 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 the mortgage rates to not be 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
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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 in about where we're hearing anecdotes of national parks happen to close their gates 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 questions been present itself, we are looking into a future that does not involve stimulus check 4.0. we're looking into a future where one right 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 out shipping supply, but we're going to millions of americans flowing back into the labor pool in
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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 bill report out today that showed in the, in the top 8 markets in america, rental 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
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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's the 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 your question more me i
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she does her best to fight for women's rights. i am not able to get that done as you would. i do know that she's not here by her nickname, the king and the other. the other guy reco much other, that was really a good one day i i is your media a reflection of reality in a world transformed what will make you feel safe for tyson lation community?
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are you going the right way, or are you being that somewhere? direct? what is true? what is faith? in the world corrupted, you need to this end. ah, so join us in the depths. will remain in the shallows, ah ah, these are the 4 people who pulled the trigger. after 5, something on survival was the hardest thing that i had to face was not having a face. i had a low expectation that accepted the accept the fact that i made that appointment. we had no fears. del change pretty fast for shots. different stories behind the bullets. the.
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the news a diplomatic, when the 1st us russia submitted the bottom presidency, seize the sides, agree to return their respective ambassadors to that post. so ad caution. i have no illusions following the meeting and these the old no new. there can't be any illusions at all. the u. s. president was apparently left somewhat confused by the some mixing up his counterparts with his predecessor i caught part of prejudice, threat press conference, and his migrants arrive in the hundreds de.

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