tv Boom Bust RT July 23, 2021 5:30am-6:00am EDT
traps that ever been invented the this has been going business so you can't afford to miss. i'm rachel. i'm friendship or in washington coming up in the united states in germany. have come to an agreement over the nordstrom to pipeline, but not everyone is happy about it. sure it had, we explored the conflict and why germany continued to pursue the project. and tesla has become bullish on bitcoin yet again, because the electric car giant b o says it will likely accept the crypto currency as payment in the future. we bring you up to speed on how the crypto sector is fair and then the federal reserve is preparing for another meeting where they were, where they will discuss whether to pull back on their pandemic era policy. so what
can we expect, and how will the markets react? we have a show today. dive right in. the u. s. in germany have officially signed an agreement on how to quote, prevent russia from using energy as a tool, a political pressure against ukraine. now if you think that sounds like a strange statement to make over a natural gas pipeline between russia and germany, you're not alone. for months, the u. s. has been putting pressure on germany, insisting that the completion of the north stream to pipeline poses a threat to ukraine. germany has finally responded saying that if russia takes threatening actions against the ukraine, it, along with europe, ian partners will limit russia's ability to export energy. so it's not me here, i am glad that we have now succeeded so far. and we also have a whole lot of tasks on some of course, in particular to see how we can also achieve longer treating period you where you can, the congress is the only one really willing to impose meaningful course on russian
malign projects and support our allies face the russian aggression, it's clear that congress in the american people can count on the administration to do the right thing with regard to this war stream is 99 percent penny. the i did today was trying to reset or don was going to stop. it was not possible, but i had, as you know, very, very fruitful discussions on, on merkel. and so why is the us so involved in a pipeline that is being built on the other side of the world? we're joining us now to discuss our boom mosca husband swan and bill hunterman of the syracuse university mac full school and former advisor to the u. s. secretary of energy band. let's start with you here. now, as you might imagine, ukraine is very angry about this agreement. because they demanded formal talks with brussels and berlin on the pipeline, but they didn't get those talks. why is that?
why there's a couple of reasons for the biggest is that, remember all the talk that's being laid out there right now. we heard some of those sound bites a minute ago. right. the president saying, well, we've got a whole lot that we can do and, and there seems to be a lot of wringing of hands of this. but there are really 2 most important players in this. russia and germany, russia once the pipeline and germany wants the pipeline. and so in germany is essentially agreed to was, yes, we will find an agreement and we will punish russia if they harm ukraine. and they try to use the energy to, to make ukraine's life more difficult. but what are you that the ukrainians are really upset about? what they're upset about is $2100000000.00 in gas transit fees that they collected last year. and they're afraid those are going to go away. now they're trying renewal right now that we go into about the year 2036. and that would continue these transit beat bodamer, who by the will, will have those open to continuing to do this. and as part of this agreement, germany has agreed to continue to do this, which to me on the outside. sure. and germany would continue to pay transit fees to
a country ukraine. but they're not moving the gas through simply because the rest of the world things, this is the right thing to do with things. bizarre and now bill, you actually teach a class on the geo politics of energy. you've worked with the department of energy on ukraine. so why is ukraine at the center of this conflict? besides what bend, just mentioned, and the bypassing of the country with the pipeline in this more of a geopolitical statement than an actual energy statement? well, gee, your politics clearly is the primary consideration today. he, it's a us trying to mend it's connections with germany and that involves peers, direct personal discussions between chancellor merkel and president biden. and there are domestic elements to the, the,
the president would like ukraine to not be a front page story for multiple reasons. the republicans are trying to pin this on the democrats and the president biden appears to be trying to pin it on the trumpet administration. so there's a lot of domestic and international geo politics involved here. i think it would be interesting to see the, the concessions that are given to you crane they'll be key or ukraine has a reason to be upset and it sounds like germany in the u. s. prepared to be rather generous and respond in tea crane. we'll see how it plays out. yeah, there is a lot of say, care now, bill, there is obviously a lot of benefit for russia, which has been discussed at length. but what few in the media are political circles
will admit, is that germany obviously wants this as well, correct? how are they playing a role and all of this? well, they play a role in at least 2 ways. first, germany through its reduction of its nuclear fleet and also its plan to get rid of coal as has a need for a solution to moving away from the call, which they haven't been successful as they anticipated. so i expect that they see using the natural gas which has half the emissions of coal as one transit, transitory tight solution. the other is that is a special role of the nord stream pipelines in the german leadership of former chancellor schroeder is the the chair of noise stream. and
i hope that chancellor merkel made some commitments not to also seek employment that noise stream. but there they clearly have an influential voice from the german past that is very effective in supporting the noise stream interest. and now bill, i know this is something we actually talked about. i don't know, maybe even a year ago when we were discussing this particular issue is if say this weren't to have gone through, or maybe you know down the road, there are problem. and they decide that maybe we don't want to go forward with this pipeline. germany doesn't have a ton of other options to get that natural gas, correct? will they make they, if they're plugged into the whole western european network, they should be able to suffice in supply? i don't think this wind is crucial to germany having gas,
but clearly there's something about the economics of the reverse flow that wasn't working for them in terms of getting rid of their cold generation. and they that today important to germany, if they want to be leaders in, in the climate change movement, they need to get rid of all, they're called generation. now been moving forward. are we likely to see more sanctions against russia over this pipeline, or even sanctions, directly against germany? if this agreement doesn't go through the way that the us wants it to? well, i don't think we're going to see sanctions against germany. i think that's the point of these talks right. it was to make sure that didn't happen in germany is as a bill just said has made some pretty astounding concessions. they are considering the fact that they really nothing to ukraine. they don't have a, an obligation to do that. there are agreements between the agreements between nato
and the ukraine. but it's not something that germany unilaterally has to do. they've been very generous in this, in terms of russia who knows of, we'll see sanctions against russia that continue in the future. but again, what was the fact that the black recruitment, the russian president is saying that he is open to this and continuing the gas transit fees in the future, at least indicates that he is not planning to pull the rug out from under ukraine. but again, i still have to make the point that russia also doesn't have an obligation to ukraine. the idea that the rest of the world is obligated to send billions of dollars to ukraine simply because the u. s. says so seems a little nuts to me. yeah, we're definitely seeing exactly how much pull the u. s. does and doesn't have year when it comes to geo politics. excellent points to consider here ben's on bill hunterman. thank you both so much for your time in analysis. welcome. and the price a bit coin rose back above $32000.00 late wednesday while
a theory m eclipse. $2000.00. the search comes is tesla ceo, eli must said the e v maker will likely restart accepting bitcoin as a payment for its vehicle during a virtual panel. during the b word conference with twitter ceo jack dorsey and our founder, kathy would, must said he wanted to confirm renewable energy usage in mining was above 50 percent. and if so, quote, tesla would resume accepting bitcoin. i believe he also added, i think we will do that. dorothy and musk also talked about what drew them to the world's most popular crypto currency. it's 1000000 information system. so i think it makes sense to support something that improves the be the quality of information with which we conduct the economy. and quinn is a candidate for the client, per se, is mostly solving for scarcity, or rather solving force. essentially
having no throats to show it would be centralized when i saw bitcoin in 2009, you see a chance to replace the whole commendation and everything that you want was talking about in terms of a t h and the credit card networks or bill. it's very different agendas and a very different timeframe and it's crazy that they still exist and they have scaled, but they, they just are not relevant to today and they're certainly not relevant to the future. and for more on there for bring in boom bus, co host and crypto analyst, christy i. now christy, before we get to all the comments made from musket and dorsey, and to be fair, i feel like dorothy really has a handle on what crypto currency is used for a lot. a lot of that he talks about remittances, very important stuff. but what is behind the movement in price for bitcoin and the theory him over recent days is this all about the love 1st. 2 and test the possibly
accepting base coin payments or is there more to it? i think a big part of it is the love fest between bitcoin and a lot musk unfortunately, which i think is really done because one man's opinion should not have this big of an influence on the network. but unfortunately, i do think those to go hand in hand though bit quite as well as ease and all the other. all points got a really big booth from a long must saying that test will eventually start accepting bitcoin once again. but the other part of that is, i don't think that much too much tweets and his comments are having the outside impact that he once had, which is a very good thing. so if you actually listen to the conversation between them at the conference, i think at times at musk was actually trying to redeem himself into the bitcoin community. and he seemed most interested in convincing the community and the fans that he's actually still on their side. but i don't think that community is fully buying it just quite yet. and then a theory him, on the other hand, they're getting a major boost today, simply impart because of dorsey's comments that he's planning on building on top of
it. but also in part that the major upgrade of their $1559.00 is going to be on board next month. and this is centrally, is going to be the big shift from proof of work to prove a stick, which is going to be a very big deal for ease. because in conjunction with that, there's going to be a portion of the transaction fees which are going to be burned off every single time which could act as a deflationary component to experience, which will also make the entire trip the asset more scarce. as time goes on, yeah, it was interesting to feel and most kind of backtracking on some of those comments that he's made before and trying to make sure he's good with the bit coin community . now we also heard from jack dorsey mentioning that he hope coin could help create world peace. when you hear their comments about what draws under crypto currency, just to show they are more than just billionaires who are lacking on the counterculture. i mean, do they take group or currency seriously? well as much as i dislike musk,
i don't think that him specifically him and dorsey are in big because they want to be countercultural. i do think some other billionaires are such as paul tutor jones, or even i'm ready dally, of bridgewater, and even some millionaires like snoop dog, a con, busta rhymes, etc. they're all in it because crypto currency. and because with the new fad, the new trend, the new thing, everybody is talking about it trading it and making money on it, issuing a con coins and the works like that. so i think mosque and dorsey they come from the technology background and so they come from the mindset that, hey, this is actually revolutionary. and this technology could actually have the potential to change the world. and having that technology background, they understand that it takes a long time to actually build up the network for the network to actually reach a critical mass. and that takes time. it doesn't matter if you're building pay power, you're building twitter, it takes time to get that entire network effect going. so i think that coming from those 2 disciplines, they understand and they see the vision,
especially jack dorsey, on the way that he speaks about the way he speaks about the potential, the, the centralized nature of the coin. i think that he fully grasped that ilan must. on the other hand, he tends to flip flop a bit and we're talking about counterculture. he's actually the counterculture of counterculture because while he's in the crypto currency camp, he supports the doors coin, which is the entire counter opposite of something like bitcoin. so must go. on the other hand, i think he gets it, but he also try to portray the fact that he's a troll in order to stay socially relevant. and christy, i have about 30 seconds here for you. but you know, test those talking about possibly accepting bitcoin. they talk about it being 50 percent more than renewable. is there anything new that's actually showing this is cleaner or the carbon footprint has been reduced and just the last few months? well i think that yes, the current footprint has been renewed simply because of china's cracked down on big point mining. and because of that, you have a lot of these older reg, these older technologies that actually weren't very efficient moving out of china.
so trying to basically took half of the mind equipment offline, which does contribute to a massive enter, which contributes a massive search in greener tech in terms of big coin money. but i don't think that you must was essentially responsible for that. so he cannot take credit for it, it just happens that his entire tweets about pointing out that big point isn't green or environmentally friendly, kind of coincided with the exact same time that china government decide to clamp down on money. so he happened to very good timing in that respect. what he was absolutely not response was, those are 2 separate events. boom bus, christie, i thank you so much for breaking it all down for us. thank you. time now for a quick break for when we come back, the federal reserve is that to meet once again, next week. so will they announce the policy change, and will it affect j paolo's chances to remain chairman, next year we'll discuss and as we go to break your, the numbers up the clothes shoes
ah ah, it's white, you're walking down a street in a town and in the store, windows are negative. in depression, you tend to go into the store and buy those thoughts and home is just very yours, mindfulness. you walk down the street, you still see the sort storefront with the negative thoughts, but you don't go in and buy those ah. ready ready well, i couldn't crunch class enough
person. i knew often the said that the culture blue book, truly i knew someone from the the because it's always more use to meet the teacher, could contribute usually. so which and practice and what gone yeah. cuz really knew from the moment that she is not going to none of my new middle charge that it's done on
the welcome back. the federal reserve could be closer than ever to talking about talking about rolling back their pandemic policies. but even as we hear from officials who say it's path time to start taking actions that align with the economy, the fed as a whole continues to use the same talking points we have heard for months. so will that change next week when officials me, well, according to chairman power, the discussion is expected to focus on the questions of when to start reducing the fed monthly purchases of $80000000000.00 and treasury securities and 40000000000 and mortgage doc security. and how quickly to do so, but will this be just another discussion and how the market's react? well, joining us now to go further in depth on this. there are tabio marines, the ceo of optimist, l l c, and michael penn. joe, ceo of pinto portfolios strategies. michael, let's start with you here. what are the odds we're going to see the fed actually
pick any kind of meaningful action as a result of next week's meeting? well, i think they're going to announce the plan to start tapering. jack your whole, so it's an august meeting jackson hole, they say we're going to start a, bring in december and probably wind down purchases over the next year. but here's the only point that you guys should all understand is that from the beginning of the federal reserve, in 1913 to 2020 a 107 years of that institutions existence. the best bounty grew to $4100000.00. in the last 5 quarters said belgy has grown to a point 2 trillion dollars. so the entire existence of the reserve, the last a 107 years for quite one julian. and we know that in 5 quarters, so it's going to be very, very difficult to unwind a $120000000000.01 trillion dollars of counterfeiting
this time around. it's going to be even much more difficult than it was in 2013 when the stock market and bond market results. and those are excellent points. michael and octavia. we're already seeing inflation having an impact, especially in the retail sector. consumer goods giants like unit ever and general mill have already warned about being forced to raise prices on consumers. which means that americans will continue to feel the impact at the grocery store. is there anything meaningful and to michael's point here is that the fad could actually do to combat that. what do you think i gave you? well, there's only one thing they can do is a combat, and that is to rein in the money supply, reduce the amount of cash and social ation and increase interest rates. but that's the only thing that that's the only tool in the toolbox that they'll be able to do . so that's a stop all these bottom purchases mentioned that they're buying $40000000000.00 a month in terms of mortgage backed securities. i have no idea why they're doing that. housing prices are really high at the moment that any justification for
driving this price, even higher and spending $80000000000.00 a month and i'm trying to purchase it, is just sizing the u. s. that and basically pushing more cash and circulation. so the only thing that they can do is it raises straight rain in the money supply. but i think is extremely unlikely that i'll do that. i think they can get themselves into court and not be able to do that because they'll crash the market as michael correct it points out. and michael, i want to continue on this kind of inflation situation because we're also seeing shortages that are forcing companies like taco bell and starbucks to limit their menu is their hope at the fed level that they will just get through the next few months. and hopefully these shortages will actually work themselves out. we'll come september 4th when the end enhancer, an appointment completely have the state governors already done. so when you home, once people stop getting enhanced unemployment that they go back to work. but we look at the initial claim today, we saw that the number of little way expectations to the upside. so why,
if there's 14000000 people still collecting unemployment or people still being laid off, i mean there's record number of job opening soon, so i don't know if they're going to get a reprieve. but i can tell you this, that in the 5 quarters leading up to you on virus tend to make breaking out. the national debt in the united states increased by 2 points. the total law financial that increased by $21.00 to $3.00 in the 5 quarters post the pandemic. the total bomb financial debt increased by $7.00 trillion dollars. so here's the point. they couldn't. draper bond purchases in 2013 if they tried to drain the balance sheet in 2018 and again in 2019. when the recall market rose and the rustle, 2030 percent of its value, you know a week, they couldn't do it back then. how can they do it again this time? how can we not essentially the notion that they have permanently monetize that?
because when they stop doing it last time, they blew the stock market. and now we adding an exacerbated situation as to our concern, as far as the bubbles are concerned. you know, octavio, i want to look for a 2nd at moving forward with the federal reserve. we know that there's a lot of pressure not only on the side, but also on j. powell. and we also know that his term ends at the beginning of next year, and he's expected to be re appointed by president biden. but is he at risk of jeopardizing that at the fed either acts too soon or not soon enough in the eyes of the stock market? well, i think that's going to be exactly the major goal for us monetary policy of the course, the next half year. and that is to get j pow reappointed. so i think the fight is going to act in that way. j. powell time pushing is the right direction. the question is, what does he need to do to make that happen? i think the only thing he can do is basically stay the course and that's going to maximize his chances of being reelected. if he increases interest rates is going to
crash the stock market and the bond market, and he's going to make it very unpopular. if he injects even more money in inflation up even faster, i think the only thing he can hope for is over the course the next half year, that inflation doesn't get out of control. but i don't see how he's really going to do that. inflation is going to karen creeping up is, can become a political liability and he's not going to know where to go. so his only hope is really that he can carry on pumping money into the market, but inflation doesn't get really out of control by the end of this this time, and that will lead to his re appointment. otherwise, he's in big trouble. i michael, i got 30 seconds for your final thoughts on that exact point. what do you think? j pal? stay in there. is that good, bad, or indifferent? well, he's a millionaire. i don't know why the hell he needs to be in that job anymore. and she just, li, willing to head like you have to disaggregate q lead from raise the interest rate. i think they will engage in ending the chamber. and i think that they start to abraham birches, and i mean, that ends an absolute disaster for the past mr. powell, the stock market,
especially in the u. s. economy green inside as always, micro pinto, and octavia ramsey. thank you both for your time. thank you. you're welcome. and that's it for the time you can catch boom bus on demand and the portable tv app available on smartphones and tablets. google play in the apple app store by searching portable tv, portable tv. you can also be downloaded on samsung, smart tv and roku devices or simply check it out portable dot tv will see next find me ah, ah, is your media a reflection of reality? in a world transformed what will make you feel safer? type relation. community you going the right way?
where are you being that somewhere? which direction? what is truth? what is faith in the world corrupted. you need to this end ah, in china's raising prices. they're the ones who are dictating prices. so we're creating a monster here. we created a brick and monster. we've got china, economy zooming, they can raise prices at will, in no matter how high china raise prices for americans to buy their good biden's, going to print more money to send to china. this is worse to still be in chinese finger traps that ever been in the
i lose me right now. there are 2000000000 people who are overweight or obese. it's profitable to sell food that he's fancy and sugary and faulty and addicted. not at the individual level, it's not individual willpower. and if we go on believing that will never change as obesity epidemic, that industry has been influencing very deeply. the medical and scientific establishment, ah, what's driving the reason?
it's corporate, me. ah, this is our national well protests and t stadium going to copeland infected acne, pillage not quite the opening ceremony. they were hoping for coco give up for delays olympic games also had the ben and jerry ice cream gets frozen out and his ropes off to the company stop sales and off your life policy, the entire tree economic terrorism will support for human rights. we debate the issue an american company caving in to, to, to a mob demand. they can take a moral stand and say, well i'm, i don't want to do anything with that point.