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tv   Boom Bust  RT  July 13, 2021 11:30pm-12:00am EDT

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the, the, the, the, the, the this is been bus going business, so you can't afford to miss. i'm ready to 11 and i'm bridge born in washington coming up in place. it is continuing to rise the united states at the fastest rate in 13 years. coming up, we'll take a look at the numbers and discuss whether this is transitory as the federal reserve continues to claim. laws tesla, theo you on must be in court this week defending the evie makers purchase of solar city, will break down the issues at hand. then the fight on the track accountable is ongoing
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from the us to europe and beyond will discuss why it is taken so long to get to this point. and what can be done to stop the most powerful companies in the world. we have a tax shows dive right in the we be in the program with a topic that many of you know all too well. inflation continues to take a toll here at home as consumer prices skyrocketed at their fastest pace in nearly 13 years just last month. the latest cpi report knows a 5.4 percent annual jump marketing, the fastest increase since the u. s. was on the verge of the 2008 financial crisis . so what does this mean for the country and how is it impacting the ongoing economic recovery journey is this guy is octavio marines, the ceo of optimist. i'll see now, octavio. this increase is largely being driven by the prices of gas, food and cars, which considering that americans are not sitting at home, is to be expected, right?
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or is there more to it than that? why i think there's certainly a return to a certain level of confidence amongst american consumers. they, they didn't save a lot of money during the pandemic. so the american consumer put a lot of money way. they saved over 20 percent of their income during that period. so this is a lot of cash at the 1st things to spend money on, i suppose all food cars and vacations and holidays and travel things about. so i think as this recovery carries on, gaining steam and cars on when people feel more comfortable, they're more likely to spend more money and take on more debt and spending more. so i think we're going to see, continue to increase in demand from the us consumer, and that's going to affect prices right across the board. i don't think the questions are simply a transitory phenomenon. i think is going to be here for a good long time to come. and as you're not sure if this increases just about americans getting back to normal life after a year of locked down, then it could play into the fed claim that it will be transitory. of course you said right there, you don't believe that. but when comparing today to what we saw in the 2008 financial crisis, is there concern that we could be on the verge of
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a bubble bursting and creating an economic downturn? well, i certainly think we're in a bubble. so we've seen asset prices all time highs. equity markets are the bond price is a huge home home prices are enormous. everything seems to be very, very high in terms of pricing. so we're very much nosebleed level fit. and the question is, is the fed going to prick this bubble and burst it and the way it would prick it is by increasing interest rates. but in terms of being trans tree and the fed trying to sort of talk inflationary expectations down. i think this is something that central banks always do it. i'm not aware of any central bank. simply come out and said, yeah, we call them inflation with, sorry, we'll fix it. it's always, they always sort of claim is transitory. will go away and. and then when they really can't avoid anymore, they try out to use as the suspects and those of foreigners and speculators. so i think as it becomes undeniable, there's really serious inflation, the federal sought to do that and it's not office hedge fund speculation as the chinese or the russians, or who knows who else likes pickles, could go through that kind of process here. and i tell you,
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i want to follow up on that because i feel like when we talk about the 2008 financial crisis in the realm of what's happening today, it was such a different scenario. this is obviously the inflationary pressures are brought on by a number of factors including a global pandemic, but in 2008, it was about bad loans. was really that the catalyst for what turned out to be that . so how do those 2 play together? well, i think if you go back to 2008, someone remarks back then if you go back even further to sort of 200-2001. when we saw the that nasdaq index crash, some economists said that the fed needs to do not replace and that, that bubble with the housing bubble. and that's instance what they did. they pumped a lot of money into the markets again. and a lot of that money found its way into housing, into the housing markets indirectly. and then they started to tighten interest rates again in 20082009 that led to a crashing housing prices and in the market overall. so i think we will look into a similar situation here, but there is a major difference in the sense that
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a lot of stimulus checks been circulating. and so the monetary policy that is sort of pumping money, direction to people's pockets, and they're spending that money. and as a result, we're seeing more inflation, sort of consumer staples and consumer everyday. good. because if the consumers directly get that money. so this is really an application of sort of central bank helicopter money theory saying let's press the money directly into the consumers hands and see what happens. and we can see what happens. prices go up and consumer prices go up. now i know we've been in a time of watching prices go up and up watching the stock market hit record high after record high. but is there any concern for what happens when those prices go back down? i mean, surely it can't just be up and up forever, right. why? i'm going to happen sort of sequences of subtle hyperinflation will, yes, prices keep going up forever and the value of money beta goes down to 0. and at which stays the central bank that says ok, we're going to start printing money of this right now, and we're going to get back to normal. so i think there's a, there's,
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there's basically 2 different directions that can go. one is the fed can continue to print money, can continue to monetize the us government that it continue to, to put money money in, push it, and consumers pockets or it can sort of prick the bubble of the fact that we're going to start to interest increase interest rates to get inflation on track, and that will lead to a theater, as correction and the equity markets. and i don't think there's any other alternatives at the moment for the central bank in terms of those 2 exit possibilities. so either on doing what you're doing and risk really serious run or a runaway inflation or increase interest rates and prick the bubble in terms of the market. so those the 2 exit doors, i think the fed his face with this stage. yeah. excellent point to consider here. octavia mirandi of optimist. l. l. c. thank you so much for your time. thank you. ellen mark was in court on monday and tuesday defending tesla's purchase of solar city. now in order to understand this case, you have to go back to 2016. when musk was the chairman of both companies and both
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were essentially unprofitable, must decided, are much better to say cited that to save the companies, he would combine them into a $2000000000.00 tie up to establish a single, clean energy business. so what's the problem here? well, mosque is accused of having combined the companies to benefit only himself and to bail out a home solar company that was about to become and solve it. joining us now to dig deeper on this story as boom, bus co host investigative journalist, ben swan, ben who's making this charge against you on moscow. why? yeah, so essentially the plaintiffs are our funds that own tesla stock, right. and so what they're saying is that back when this deal was made, as you said, back in 2016, the law must was running to companies running tesla and he's running solar city. and neither of them were profitable. and that in order to save solar city, eli mosque, who by the way, only on 22 percent of the time talk the board to be able to purchase solar city for
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about $2600000000.00. and it saves the company. you say both of them, the problem is they say it wasn't intentional. the best interest to do this. it was only just saved the other company and that it didn't benefit tesla. ala must be arguing on his end, but actually no, it, it not only save his company, but that solar city was worth a whole lot more than $56000000000.00. it was, it was worth much more he could have raised the money. otherwise, this was just one of the avenues that he chose to take. interesting and now we're seeing it all sort of play out in court. but as for the other shareholders here, i mean, their behavior is part of the equation as well, because it sounds like they might have had their own conflicts of interest as of the case. yeah, that's, that's a believe as if they did a lot of numbers. all in both company were also been by the way some people like brother was on is on the board of tesla and own stock in the other company as well. so both of these companies were able to benefit from doing this,
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and the board members were in, by the way, we should mentioned that some of these board members, actually they had a settlement agreement where they agreed for a combined $60000000.00 that was paid out by insurance, essentially, because they were already sued over this and they said that they had the right to do it. so they've already made payments on it, even though they admitted no wrong doing and doing so. but it's always interesting, whatever. we have a big court case of c, e o. we saw this in the apple versus epic, and google versus epic disputes quite a bit. you always learn something very interesting about the business angles. and one of the most interesting statements made in court by you on mosque is that he really dislikes running tests. well, what about that? yeah, he actually said that it was kind of interesting. he said this, i rather hate it. i would much prefer to spend my time on design and engineering, which intrinsically i like doing it. i think there's not like running template. now i don't really necessarily believe that is the case. i might be telling the truth that he prefers to do design of the creative work. but the truth is, what he probably saying is responding to
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a question. because the argument that the point i have to make here is that ela must force this cell, even though must only had 22 percent of the socket tesla. so he couldn't do it by vote, and that instead he use something what they call the force of will, but he used the force of his, of his will and his ability to influence the board to get them to make this purchase that was not in the best interest, the tesla, so to counter that, he's like, why would i do that? i'm not using force and will over tesla. i don't even like running test, essentially what he said, oh, interesting to hear that one of the richest men in the world is now saying that he's not happy with his main company that you know, he's got a lot of fame for. okay, so ultimately what could happen in this case? well, a couple things could happen. one is if the judge in this case, and by the way there is no jury is just the judge is looking at it. if the judge in this case says, look, tesla made this purchased, it didn't harm tough lead to do so. and this company was as much as arguing worth more than what mosque was saying, right? been no harm, no foul, it's all fine. and the, the plaintiff is eventually,
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are going to not be able to go anywhere with it. if the judge looks at, it says, well, actually test i shouldn't have made this purchase, must then influence board members who also had a conflict of interest. it wasn't in the best interest of shareholders, and they did this essentially to bail him out. so they could save this other company. and the company was pretty much worthless at the time. if that is what the judge decides, then ultimately you must himself may have to basically pay back the entire purchase price of what took place. you're about $2600000000.00. i think he has it bad. i'm pretty sure of it. boom won. thank you. so much for following the story. they said it's time for a quick break, but when we come back, global regulators have had their eyes set on big pack and reap it month. we'll dig into what is happened and the world of anti trust is gonna break here. the numbers of the quote, the oh,
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i me, the the the
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the, the, the, the summer solutions where we focus on the solutions. not so much. the problem, stacy, right. we are joined by jeff booth author of the price of tomorrow. when i see black america, i seen myself. when i was growing, young, black america spoke to me when white astray dia did not say black lives matter is a movement we are importing from america. no, nothing. if i lived in a world where wide lives mattered,
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i was not wise. like ms. newman and i wasn't new from black america. i learned how to speak back to one of the regional people in the police were at war with statistics. i'm scared that my children are going to grow up in the country. that thing says no racism, but they're more likely to end up in the criminal justice system. then there are other fellow friends in daycare. mm welcome back girl was just hit with a 593000000 dollar fine in france because the countries anti trust watchdog says it
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did not follow through on orders to go sheet with news publishers. now back in april 2020, the tech giant was ordered to carry out negotiations with french news outlets in order to follow the latest copyright directed from the european union. while google did reach agreements with certain publishers, it did not agree to a page deal with a f p. google has agreed to pay the char, but in a statement, as spoke, person said quote, we have acted in good faith throughout the entire process. the fine ignores our efforts to reach an agreement and the reality of how news works on our platforms. so to go further in depth on this was bring in elinor fox, professor of law at new york university. now, professor, this fight to force tact giants to come to an agreement with news publishers is one that we have seen from europe all the way to australia. so how does this fall under the anti trust umbrella, so to speak, when it comes to sites like google and facebook? hi, rachel,
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nice to be here. the big companies are exploiting the news company. they're just, in effect, you could say they're dealing the news. they're appropriating, they're not paying for it, that might not be illegal. this is the problem. australia is now making it illegal and friends has made it illegal, is simply another string in the bow of trying to call the tech to help for exploiting where ever it can. and now we've recently really seen the fight to enforce anti trust laws heating up in recent years. but given that the top tech giant have spent over a decade, skyrocketing and growth is even possible. the rain them in at this point, or is it just too late? it's not too late. the companies can still be brought to account. the law is very slow. the u. s. law especially is very,
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very slow. many of the things they do that most of the people of the world think are very abusive. the companies have some kind of claim or conservative law let's than do it. so it's really falls to the antitrust agencies and especially the federal trade commission to make rules. we know what they're doing. we know how they are abusing and there have to be rules that say they cannot do x, y, and z, and they cannot acquire their competitors and their potential competitors. yeah. yeah. ok. well, it all comes back to those laws that are actually on the books and we did see president bite and also just signed an executive order aimed at big tech mergers and acquisitions, such as facebook's purchase of instagram and what's up. so is there any teeth to this order and does it stand to have an impact on those check giant? this order is really amazing is very important. the president has just come out
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with national policy. he calls it doing a whole government attempt to put competition back into our system. he looks at virtually every area like regulation that keep your your friends, i'm sorry, i've been hearing aids all over the counter market. occupational licensee that requires licensing of people, but in skills don't need the licensing. there are so many barriers across the whole economy that keep people down and, and keep corporate power in. and he's made a special effort to address the federal trade commission and the justice department to call for a stronger boost rained in big tech. and you know, nothing good can happen without something a little bad. because here in the united states, we've seen tech giants like amazon, they've hired hundreds of former government employees, including several former anti trust attorneys,
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straight from the justice department. is there concern about a sort of government to tech pipeline? because these people know the inner workings, they know how to get around this, and they're going to know how to fight this if congress moves, or even the regulator start to move. yeah, so this is the re involving door problem. it's always been a problem. it does make you question the commitment to some people, to the issues, the things they, they're really committed to and they were a government agent. however, there is still very great people in the country who have not on the side of representing big corporate. and we have a lot of talent left, so i'm not worried. well, great insight, as always, and we will keep falling this one, professor elinor fox, thank you so much for your time today. thank you. and meanwhile, there was an under reported aspect of president biden sweeping executive order aimed at anti competitive practice. and that's the right to repair for years
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advocate. the bright to repair, have called on tech companies to release schematics and sell parts to repair shops or even straight to the consumer. so they can repair items like cell phones, tablets, laptops, the bite, administration's order addresses the issue. thank quote. tech and other companies impose restrictions on self and 3rd party repairs, making repairs more costly and time consuming, such as by restricting the distribution of parts, diagnostics and repair tools. the order also calls on the f t. c, to quote issue rules against anti competitive restrictions on using independent repair shops are doing the repairs of your own devices and equipment. for more on this, let's bring a highly, he's a right to repair, advocate and ceo of i fix it a company where you can actually get those tools to be able to open up items and things like that. so called doing great work. now i want to start with this is part of the anti trust executive order. what's happening with the lack of right to repair is actually the definition of anti competitive practice. is it not com?
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it sure seems that way to me. i mean, we have products where it used to be able to fix it. now you've got local businesses going out, going out of business, west and right. manufacturers are abusing their monopoly position of being the one who made the products. they can control the entire lifespan. what happens after now i do want to clarify one point because i mean, let's say that i need a battery or a screen replacement from my iphone and i take it to a local repair shop. what is currently the risk where i mean, is it going to take it out of warranty? j won't take it out of warranty. your warranty is actually protected by something called mangus a mock warranty act that says that you can do anything you want with your product as long as you have damage it. it doesn't the warranty. but what can happen if you put a battery in your iphone, the i phone will show a warning saying that it was a 3rd. busy party battery that may damage your device. it's kind of like having
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your oil and your car change, the jiffy lube and they can't reset, check oil light after doing more and more anti competitive like that, push people toward their repair shops. and how important is some sort of right to repair legislation as a whole for small businesses because they thrive on things together. like you said, you're seeing them go out of business more and more. and for that matter, how is this going to help the consumer? you know, we used to have camera stores in every neighborhood in the country. you could go down, you can, you can buy a new camera, you can get your loans fixed, and mercy. shops have gone away and they kind of disappeared with it with a whimper, not local bank. and i am afraid that we'll see that happen as well with our computer and cell phone repair shops. it's critically important to sustain just to make sure that these businesses can continue to exist and thrive and be part of our communities that we protect. we have legislation on the books to protect our local mechanics. that's why if you have a brand new ford explorer, you can think of your local mechanic and fix it. we don't have those protections
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for other industries and it's high time we get going on. yeah, we know that all of the small businesses are incredibly important, and i want to bring up a comment from the other side of the spectrum here we heard from apple co founder, steve wozniak recently, and he made comments in support of right to repair, saying in a cameo video quote, we wouldn't have an apple had i not grown up in a very open technology world. now obviously was hasn't been with apple for decades, but with apple being one of the biggest offenders, how important is him weighing in on the situation? this is so important, i'm an engineer and i got into this, i got passionate about because i like taking things apart. i've got this is inside of a samsung device. it's fun taking these, seeing how they work and use the lenses on the camera. that's how we're going to inspire the next generation of engineers. so we want to be a culture that inspires the next generation technology. we want to increase. we want engineers, we need to make sure that they can exist open world where we can see inside our
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things and understand how it works. otherwise, as, as was said, we're going to be on a path or people that just don't have the skills and the motivation to develop the next way. the technology. and i think there's something that i don't believe the by an executive order. it addresses at all, and that's a way explain to us how this will help with weights and how big of a problem it's going to be. kyle: it takes an absolute huge amount of raw material dug out of the ground to make a fall on like this. it can be $250.00 pounds of raw material elements in it. everything from what the into the new guinea and the magnets in the speakers. so they're not recoverable. and recycling and you see the talk to you way straight around the world. this is a huge environmental problem and it's not just just the waste itself. it's also the carbon impact if you, if we can extend the lifespan of every phone in america by just the year, it would be the $600000.00 cars. so there's an environmental imperative to making these products last longer. and at the same time, we have to build
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a local here. and how are advocates like yourself going to keep pressure to make sure something actually happens on this. the next step is for the fcc that they've got next week. they have scheduled a meeting where they're going to vote in a policy on rates repair and then we're looking forward to the f b c. following up on the, by the administration, asking the executive order, which is to do a rule making and make it to the race repair is the law. right to repair api cow wins. thank you so much. thanks for having me. and finally, the federal aviation administration said monday and approved a license for jeff basis is blue origin to send humans to space. now the amazon founder and 3 other passengers will had to the edge of space on the 20th of july were the company's new shepherd rocket. the license will be good through august approvals, blue origin, to take off from its launch site. one location in texas. now of course, the upcoming launch remains in the shadow a fellow billionaire richard branson and virgin galactic which completed their 1st
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space tourism flight on sunday with branson himself on board. now i know there is a lot of criticism in these billionaires in space, but we also have to remember just how incredible this innovation is. i mean, over the last few decades we've seen people kind of get bored with nasa and everything that they've done and everything that they've accomplished. well, now the idea of being able to go into space yourself truly is incredible. and yes, it's starting out at a price tag like $250000.00, but the hope is that it will keep going down as we go along. well, and yeah, and if you remember, when governments were doing this, when this whole started, especially here in the united states, i mean, we've seen the movies, we've seen the documentaries about everything. they were doing it without even calculators. they were doing math by hand with technology that are cell phones dwarf today, and they got to space and were able to do that it's, it's quite amazing and look, i mean those innovations are going to continue it and we're going to see it. and we've seen technology over, over the last 3040 years, really,
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really expand. so it's something we're going to need to keep an eye on it. and i for one, i think it's fascinating to watch them do this thing. and that's it for this time. you can catch boom bus on demand on the portable tv app available on smartphones, tablets, google play in the apple app store by searching for portable tv, portable tv. you can also download it on samsung, smart tv and roku devices, or simply check it out. portable tv, well see you next time. mm. the look forward to talking to you all. that technology should work for people. a robot must obey the orders, given it by human beings, accept where's the shorter the conflict with the 1st law show your identification. we should be very careful about artificial intelligence. the point obviously is to great track,
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rather than fear i would take on various jobs with artificial intelligence, real summoning the demon a robot must protect its own existence with existence. long when i went to the wrong room, just don't move the rules yet to see out. the thing becomes the aptitude and engagement equals the trail. when so many find themselves will depart. we choose to look for common ground in ah, no,
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you don't do it. you know it nice number didn't, but when we got home, i don't, i don't gonna don't go down the upper limit of all using the 40 on it and then i get like, i mean with that, i think we're pretty good for me to have it on the front of it and then we can just go to the middle, who was nice with those who knew all along the plan. the postal initials going to separate, kill me. ah,
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freedom is not a state and we must act. we were last president biden to chooses republicans. the last thing that a landmark bill, he said, would broaden black voters participation in elections. the claims of the test results, no checks and no math sat the euro 2020 final. the world health organization says london football showdown was devastating for efforts to control the pandemic. as us leaders to open the back what they call it, cubans protest against decades of economic suffering. havana points out to be a major role. washington has played through decades of sanctions and now legibly. social media manipulation.


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