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tv   Boom Bust  RT  July 21, 2021 11:30pm-12:00am EDT

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because we knew from the moment that she is on the, on the, not a monumental charges on top of the this is when someone sure you can't afford to miss. i'm rachel. and i'm brand new born in washington coming up, the global scrutiny of crypto currency continued to heat up as the european union had proposed a ban on anonymous transaction. we'll take a look at the latest attempt to regulate fintech and we turn to us markets where
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stocks. i've seen a roller coaster so far this week. we'll discuss whether we're in frame major, correct, and then we have the latest data on the states that cut off the federal unemployment benefits early. didn't make a difference. and how is the average workers still being impacted by the pandemic? we'll discuss. we have a pack show today, so let's dive right in. we begin the program at the latest attempt to put government control on crypto currencies. the u is taking steps to target what it calls risky financial institutions, with a new governing body aimed at cracking down on dirty money. that includes a new amendment targeting crypto currency users. in a statement, the european commission said, quote, today's amendments will ensure full traceability of crypto asset transfers, such as bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing. they went on to claim the proposals,
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we'll hope the crypto acid industry develop, and it will benefit from an updated, harmonized legal framework. so what is this new legislation really about and can it be enforce? joining us now, this justice co host an crypto analyst, christy. i know christy, who in the crypto industry is the targeting with these new proposals well, according to the use they are targeting any and all crypto users indiscriminately because they're setting the threshold very low. essentially they're saying that if you transfer a $1000.00 or more of crypto currencies, then the service provider will have to report you. so by sending the threshold really, really low like that, they're basically saying, hey, basically if you own crypto currency, you're gonna have to report this. and while they say this legislation is used to target drug trafficker the money loaners and likes, as the real reason has been and has time and time again, it's very simple fact that the
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e u. the entire government is basically bankrupt after having to fight coven 19 for the past year. and they're basically seeing this new opportunity to tax the crypto currency wealth because of this new asset that has emerged from the pandemic unscathed. and this new crop of people that have a big fat while it's, they're essentially setting up new legislation to legally go after them and tax their harder crypto currency money. so while the ultimate goal is to try to encompass any and all crypto users, they are directly targeting the crypto currency service providers. ha, the custodians, the exchanges, people like coin base because if you go through a service appointment, you have to give up your information. you have to go through k y, c a and now you have to verify your identity and the legs. so by doing this, most of retail and the masses, they all undergo this entire process because services i coin missed or just like paypal, they're easy to use. everybody understands how to do it. everybody knows how to onboard. so by doing this, it's
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a very easy gateway to target most of the retail crypto segments. right. and that was the question i was going to ask you, christy because the european commission is claiming they will ensure full traits, ability of crypto asset transfers. but let's be on it. if you really know what you're doing, if you're in this space, is that if this is your life and you work in crypto, you don't go through an exchange. you don't go through a pay, pay power, or even bad mo, who now let's you transfer crypto currency. what you do if you make a direct wall to wall it transfer. so is it even possible to really trace this given the decentralized nature of crypto at its court? no, it is basically an impossible task. and like we said before, regulators and politicians, they like to use these big blanket statements in order to sound powerful, even though they're not really accurate at all. so any competent person and listening to a statement like that, saying that there's going to be full trace ability of crypto currently, like they would that's just laughable. that's simply ludicrous because it's impossible to enforce. essentially, this is
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a technological literacy problem with paul it between politician and the actual users. because when people use centralize exchanges, they have no choice but to go through k y, c and a m l and all that stuff. but as you pointed out, smart contract based peer to peer decentralize exchanges, although called texas, you cannot be forced to comply because there's actually no central organization, no central individual who is in control of this entire exchange. so there's no one to force to comply, to your rules and everything like that. so trying to be anonymized hundreds of millions of currently existing wallet. that sounds like an absolutely impossible task, especially for an organization that is already struggling to fund their current programs and agendas. so while a lot of these taxes and these peer to peer exchanges and was, they won't be affected by this, by this new proposal at all. it will, however, make it more difficult when the time comes that they do actually want to pay rent, buy groceries,
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or do some sort of activity that still requires currently or be more difficult for them to. hence make that extreme back from the currency to of to a legit currency. yeah. those but the median crypto and my government want to try to crack down on it in some way. now, another thing we've heard from politicians is that if they introduce some kind of regulation for crypto, it will help to read out money, wandering and tourism financing. but of course, in this case, the claims that it will all be possible as long as crypto exchange is played by the same rules as the bank. what's your response to that? well, i say that banks have to play under one unifying rule and one unifying body because all banks around the world, they're reliant on the swift network in order to make transfers. and that is why all of these banks are so careful to not break any these rules, because if they get kicked out of network, essentially their business is over. they can't really do anything after that. but that's what's so powerful by crypto currency because it is peer to peer,
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and there's absolutely no way to stop a transfer such as that. so there's nothing really forcing an exchange to play by the rules and comply. why do you have to do that? back in 20. 17 china made exchanges illegal. so immediately after that you have finance. you had ok x. you had to be immediately leaving. try it out, fleeing to friendlier jurisdiction such as hong kong, such as japan and malta. places like that because why do you have to stay in china to do business when you can go outside of china's chinese dirge, diction and still maintain your entire customer base. you're not losing anything at all. so essentially, these exchanges really aren't losing anything at all. and they aren't forced to comply by any jurisdiction, and they can simply just take their business and move elsewhere without losing anything. so it's really up to these crypto exchanges, how they want to play it. you're definitely going to have some that are more willing to comply, such as the coin bases such as the gray scale. but then you have other more creative guys who are say, hey, let's go to a more friendly jurisdiction. yeah,
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they will always find a way great inside as always, boom bus. kristi, i thank you so much for your time today. thank you. and after the dow face, it's worth days in october on monday, losing more than $700.00 points. the industrial average rebounded 550 points tuesday and continued to see games and wednesdays trade. now, monday fell off, which affected nearly every major index worldwide, was mostly attributed to rise in cases of the covered 19 very it delta. while rising inflation remains in focus, of course it should be noted, the dow is actually up more than 15 percent so far this year, and 30 percent over the last 12 months. so it raises the question, are we due for a market correction? when you look at those numbers or the discuss, let's bring in tobin smith. he's the ceo of transformative research tobin always the pleasure to have you on the show. how much, how much does monday's sell off have to do with concerns over this increase in
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cases of the delta barrier? well, you know, i always tell you the truth, but there's a lot of things that happened on monday. and you can't just take one dot to say, well gosh, it was the delta variance and raising rates, and u. k. in the united states with all the boneheads won't get vaccinated. it's a whole bunch of stuff. and one thing that happens in a bull market is, you know, we sort of taken notes on the fraud about 30 years. and it's when you're in a bull market, particularly road, only 2 years into a new bull market. there's typically a point where everybody's is one side of the canoe and everybody is a little bit too long and they need to readjust. and while you need the skill, so yeah, it's the marion, let's just sell $50000000.00 for this. and $20000000.00 of that and it sort of bills at each other. and then there's all this electronic trading. remember 95 or a 98 percent of the training on monday was electronic. there's no guys down in the pits. go and, you know, get me for the vibe of that. so, the whole combination of this, me that, hey, it was a day to come out,
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but you know what? it was a buying day because we came right down to support it by 50 day moving average, which is what a healthy bull market does. and we were buying going into that close because you know what, we made money doing that almost every time. now we want that cash and marches, you know, in february of last year, that was a whole different thing because the pandemic was coming. but now we're in the sort of the pandemic of the, of the non vaccinated it. we're all amateur immunology now, but the guys, i follow my mena at harvard, etc, are here, like we're not going to see this. this is a normal deal in immunology, you know, the, the virus needs to find a new host and need a new way to get in there. so they mutate. this is sort of going according to plan . and from a business standpoint, we're never going to shut down that, but no more ever again, not only united states, but france and the u. k, because there's no political will to do it. and there's certainly no public well to do it. so guess what? we made money by and on monday and please. so me more stock if you're afraid the
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whole world's going to hell again and there. well, there's only as a lot of fear out there and that. and so whenever it comes to things like this, now i want to bring up another point that brent made during his opening, which is the fact that when we look at the 3 major indexes here in the u. s, they are still sitting near record highs. all gaining around 30 percent over the last 12 months. so are we in for a correction? let's say you well, we're always going to get a corrections in a bull market. that's by definition, what a bull market is a bull market. they're going a straight line and it has a temper to pull back on fear or you know, something or an election or whatever. but then at the end of the day that people like me who run money, have to have new money come in to our shop. and we said, well gosh, what are we going to do here? are we going to sit on this cat? so that's 12 months and under perform the market, or are we going to buy things that we think are going to go up in value because they're, they're not correctly price. so yeah, please, we're going to have temperature correction. but if you're an investor in stocks and
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you're afraid of a 10 percent correction, that then you're never going to make any money in stock. because there's only really 5 or 8 days out of the 20 days in a whole year that provide all the gains. everything else is sideways, up and down. and if you're out of the market on monday or excuse me, on tuesday, you missed 700 points. that was, that was the largest move in almost a year. you can't play that game unless you have a trading service like we did where we trade in and out during the day. but if you're gonna be an investor and you're part of 10 percent, you know, go buy bitcoin or, you know, invest in then dollars or something. so it's a treasury of, they bounce back a little on wednesday with the 10 year rate. nearing 1.3 percent, but well below where we were prepare demik levels and even in march of this year, what is the bond market telling us about the state of the economy and inflation currently? yeah, it's very confusing. so let me just bring it on very simply, if you're a big pension plan and you got
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a huge boost in your equity performance over the last 12 months, which they have a lot of pensions are believe in our over funded these big ones. and so they want to keep their money where it is because they're paying out pensioners. so when you get a chance to come in and buy bon, when they pick up, when you buy those bonds, when there's a bid, the price goes up, the yield goes down, that's what we saw on friday and monday. but again, that's a blip. the overall issue is the bond market. it is telling us that sincerely arbiter of all, all knowing inflation that we're going to have inflation come back. maybe not till the 1.5 percent because we have higher salaries, but it's telling us don't fall for this markie. we're going to have 5 percent inflation. oh jeez. for the next 1218 months can't happen and it won't happen. and we know that because if we, if the people really felt that in the bond market, which remember, is $25.00 times bigger than the stock market, then we would have 2 percent rates right now at the 10 year. but, but if we don't,
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because it's not going to be there. tobin met the transformative research, the only person to join, boom beth, who may agree with the federal reserve on inflation. thank you so much. my good. the u. s. and germany have agreed to a deal on the north stream to pipeline months after threatening sanctions against one of his closest allies. the binding administration has agreed to drop its opposition to the project, but it was only if germany pledges to take action against russia. if it quote, uses energy as a weapon against ukraine. now the u. s. has repeatedly warned about the power, the $11000000000.00 pipeline could give russia over europe. so as part of the deal, germany will agree to spend $70000000.00 on bilateral energy projects with you praying for us in germany. we'll also work together to promote $1000000000.00 worth of investments for a green fund aimed at helping ukraine transition to cleaner sources of energy. the
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construction of the north stream to pipeline is to be completed by next month. and it is expected to be opperation by the end of this year. as for the specified action, germany is expected to take against russia if it violates the agreement, it is not a part of that remains unclear the time now for a quick break. but when we come back, a middle worker shortage in the united states, many states have pulled back extended unemployment benefits in hope of charging the labor market. did it work? we'll never get a break here. the number that the quote, the me join me every 1st on the alex simon show. when i was speaking to guess in the world,
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the politics sport. business. i'm show business. i'll see you then. me. oh right now, there are 2000000000 people who are overweight or obese. it's profitable to sell food. that is pricey and sugary and the under the victim is not at the individual level. it's not individual willpower. and if we go on believing that will never change that to be economic, that industry has been influencing very deeply. the medical and scientific establishment, ah, what's driving the mac, it's corporate, me. ah,
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and welcome back. as the united states continue to transition out of the cobra, 1900 pandemic, we have continued to hear about a so called worker shortage. now surely, you've heard an anecdote by someone close to you about how there are people who would rather collect the increased unemployment supplement, then go to work. in fact, the latest jobs report showed there were 9200000 job openings. as of the last day of may. the data also showed there were 3500000 fewer people in the workforce for that month, than in february of 2020. just prior to the onset of the pandemic. recently 26 states stop those enhanced unemployment benefits early before they were set to expire in september with hopes of stoking the labor market. so did it work? well, some would say yes. as those 26 states saw an additional 174000 people joined the workforce in june by taking jobs, restarting their search for employment and clip thing. the 47000 people added in
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states that kept the benefits in place. but many economists quoted by reuters, see that this difference is negligible with no real proof that pulling back benefits is actually forcing people to take jobs. especially when you look at the numbers of new jobs added against the 9200000 job openings. so what is behind this worker shortage? well, let's get an economist take on this with professor richard wolf. he's the host of economic update and author of the sick. this is the system when capitalism fails to save us from pandemic for itself, professor wolf, i, what do you make of all this? yes, we're seeing some job growth in those days. that ended benefit. but it doesn't seem like very much why is this working at those data plan? well, the reason is not very much, is that there isn't an honest conversation in our society about what's going on. so let's be clear about that. number one, i was glad you used the word forced workers back to work by early ending their
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supplements of $300.00 a week. let me remind everyone, those $300.00 a week extra the unemployed people were there in order to help them through the worst combination of an economic crash and viral pandemic that had ever happened in american history. that wasn't a gift. that wasn't anything other than helping people through to take it a way to force people. because then now desperate to go back to work, you know, in other countries that's called forced labor. were supposed to be against that. but let's put it aside. why hasn't it worked? why hasn't it produced that tremendous explosion of job hunting? that was promised? and here's the answer. over the last 15 months, it wasn't a quiet time for businesses. what do they stayed open? whether they move to distance employees, or whether they shut down, they lost a lot of profits. they want to make those profits up. i understand that that's how
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our system works. but they have made the decision to get those profits back by changing the job, either cutting the wages or cutting the benefits or the one that i find the most interesting is a calling back for people for a work or a department that used to have 5 so what happens is the workers now forced to look go, and they spend a day or 2, and they discover that they are being ripped off one way or the other being made to do more work without being paid more, etc. and so we see this wonderful statistic that we have a quick rate that is government keeps statistics of how many people quit their jobs off the chart. and there's no mystery. it's because there's a struggle going on between what workers need and want and what employers need and want to pay. and that's being fought out now, and that's much more important than the $300.00 unemployment. yes or no. yeah, that sure goal seems to be as all this time, especially in
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a year like this one. now we know that wages are a huge part of this discussion, as workers demand more and many companies from fast food chains like mcdonalds to big banks, are being forced to offer better compensation to new hires. is this a unique case? were workers are learning that they can actually ask for more because the demand for their position is higher. do you see this continuing? now i think that they know that there's still quite a bit of unemployment out there. they know that there's a risk. most workers do that the employer can find others. yes, they're talking a lot about labor shortage bought. they're also willing to do without and i think what you're discovering is really a more long term phenomena. real wages in terms of what wages can afford, hadn't been going up for, for decades. and it's accumulated a problem. and the working class of americans, they want more,
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you're absolutely right. and they're not going to be turned down very quickly. they're going to continue to push, you know, the $15.00 which sounded like so much. we're currently going through an inflation that's raising prices 5 percent or more per year. that's going to eat away the extra money you get in your wage. almost as fast as you get it. so with the opening gun now of a long term historical push, that's going to be conflict in our workplaces much more normal and much more intense than we've been used to. and professor wolf, you know what, i had something else plan, but i actually want to ask about that point that you just made. because if this a problem without organized labor, where they wouldn't be, they're not able to fight for this the same way. you know, you mentioned that workers can now kind of make it, they could, you know, demand more to a certain extent, but without an organization. can they really do that or does this all fall by the wayside? because eventually,
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the companies which have the money which have the power can kind of just keep pushing them down the road. you're absolutely right, brand that is going on and the labor movement is weaker. i mean, we're literally at the end of about. 8 a 50 year period in which the membership of union in this country has declined. let me give you a startling statistic. the private sector of the united states, the biggest part of our economy, the percentage of workers represented by a union as less than 7 percent. in other words, the vast majority have no union. they have no organisation. but here's the irony of it all. it's leading workers to read think they're isolated as individuals and to begin to rethink about the need for unions, and you're seeing the pressure to get together and build these organizations. it's not the that's the way it works in the history for a long time. you squeeze them, you reduce them, your shrink them until workers finally realize what this all means. and then you're
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going to see the push back. we had that in the 19 thirty's. the last time unions exploded. if things continue the way they are, we're going to see it all again. as a professor was point, the fact that you can't collectively bargain as a workforce right now, when you say only 7 percent of the workforce is unionized. that puts the power solely in the employer's hand at that point. professor richard watts, right, thank you for just laying it out for us today. my pleasure. thank you. can finally, chinese electric car maker ex, paying has really sportage of its next generation flying car. and a recent post on chinese social media site, we bow the company's chairman shared a video of the 5th generation flying vehicle, the voyager x to the aircraft. that is roughly the size of an electric sedan can vertically take off and land has about 35 minutes of flight time and can travel up
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to 80 miles per hour. according to reports, the previous generation x one has been on numerous test flights and plans to begin real world test in the country by the end of the year. now, rachel, do you think this is going to take off, please? but i do think that we know we've heard a lot about flying cars as we've heard about all of this technology growing, are we really going to see flying cars be the next thing? oh. 7 absolutely, i mean this is something we've been talking about for decades is imagining flying cars in the future. we're finally getting up to it. we've seen drones, we've seen all different kinds of technology. we've even got space tourism going on and under space. so, i mean, i think this is just the next frontier. wow, i'm saying that there's a lot of federal aviation and other regulation to be had here. when you start talking about people who drive and flying cars through the street, or i guess through the air, through the alleyways, i don't know how you would say though ever. this is the best for the time. you get boom, but odd demand on the portable tv app available on smartphones and tablets,
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google play and the apple app store by searching portable tv fordable tv can also be downloaded on samsung, smart tv, and roku devices, or simply check it out at the portable dock tv, well see, next time me, i the whatever the
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the, the war on drugs noted as a way to combat a great problem. what's the one, it's part of the attitude of the nation, not just of north dakota. and it got to be something that you could get elected. this time, the fight against drugs took a check and told us that andrew was competing short form. this is way too dangerous for him to be doing. clearly they put him in harm's way. a rural college student does interest get shot in the head and found in a river like something else to be happening. ah ah. ready ready well,
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i just couldn't cancelli class enough person. i knew crucible often the song said, well, not just the blue book truly. i don't want the the because it's always more you can contribute usually. so which one on. yeah. cuz we knew from the moment that she needs to bring it up on the none of my new middle charges. welcome to
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join me every thursday on the alex salmon show and i'll be speaking to guess in the world, the politic sport business. i'm show business, i'll see you then. me. the eastern half of the united states were going to have billions, if not trillions of periodical cicada is interacting with tens of millions of human beings in their backyard. oh my god. obviously some of the cicadas do not have very high tolerance for alcohol because they are already passing out on a 6 minute to 400. i mean that's very satisfying
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in the us in germany, strike a deal on the nord stream to pipeline. but val action on russia over the ledge, the threat to security posted by the energy project. moscow in the pipeline is purely commercial, the worst flooding in china in 1000 years. it has caused depth wiped out transport infrastructure breach down and sparks. a huge blast have an aluminum plan and the situation is said to be getting worse. nobody suggestion is unchecked to explanation on the way. no sir.


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