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tv   Boom Bust  RT  July 29, 2021 9:30am-10:01am EDT

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with the international space station, these are the live pictures we're talking send to me to this still moving and if you can quite tell but it is. and it's just going into the docking position. now this is all automated this process. don't worry. no one's hands shaking on the controls. this module is called now science. if you translate it from russian and it's intended for just the module long way to by the scientific community and it will function as an on board labord tree. 13 special experiments already planned with the equipment that's been put on board, that it will take the best part of another 8 months to properly be integrated module into the rest, the i ss. and there it is. it looks like he's completed the docking procedure. the extra bed on there as well. so potentially you could put now another permanent russian cosmonaut on board living on board the international space station in theory. and that brings it up to date. thanks for staying with our cl return with
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more than half and me the the, the, the, the the the bus one business. sure you can't afford to miss. i'm rachel. whenever it's board was coming up, was chinese stock. they're trading down as the nation government continues to crack down on business, will discuss the ongoing uncertainty. meanwhile, the united states has seen its trade deficit expand by record numbers in june. we bring you the figure that what's behind the growing invalid that the federal
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reserve wraps up its latest meeting for the scots, how the uptick in both cases and inflation are playing a role in the central bank policy. we have a package here today for di, right, and we begin the program with huge news and chinese market as a sell off led by text docs continues to impact the chinese view on and hong kong dollar. in fact, those 2 currencies slid on tuesday to lowe's, not seen since april. so what is causing this regulatory fears are spreading to other parts of the chinese market after beijing stepped up restrictions on his education sector late last week and continued the crackdown on its internet companies joining us now to break all of this down for us as boom, bust co host, an investigative journalist benz won. now ben, let's start with this so often currencies just how bad is it? yeah, it's pretty bad guys in terms of just how bad. let me give you a couple numbers here. the hang thing index. not doing well at all,
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drop more than 8 percent in the 1st 2 days of this week. and overall it's down 13 percent for the month. that is it's worse performance since september of 2011. so it's been a long time since the hang thing has seen a week like this in terms of the shanghai composite. it's not doing well either down 5.5 percent for the month on pace for its worst month since september of 2020 . the shanghai composite, by the way, loss about 6 percent so far this month on pace to see its worst month since october of 2018. and as you guys mentioned off the top here, all of it comes down to a couple of things. it's of fear about regulatory controls and a fear about what's going on with the chinese government in 2 particular areas. we're talking about the education sector, and of course, the crack demo company. and better, let's break it down a little bit. what's happening in the internet sector in china right now? yeah, it's kind of interesting because we chad temporarily blocked users from being able
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to sign up, which is kind of a stunning development here. it's one of the largest chat out in the entire world over a 1000000000 users in china alone. and they had temporarily block any new users from being able to sign up because they say they need to be able to follow along with, with the new government regulations. are so this is obviously happening it's, it's had a huge impact and there's a lot of money that's pulling back. alibaba shares are down. a lot of the things are down. we're seeing a lot of these companies really struggling right now because investors are afraid they're concerned. what's going to happen next. and again, what is the alternate price that they're going to pay as a result of these new regulatory rules that are coming into place that the chinese government is pushing? yeah, we're definitely seeing that track down have an impact our ready. now we have also mentioned that part of this off is related to the education sector. so what is happening there? that is spooking markets right now?
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yeah, the education part of it is, is fairly interesting because in this case it all started actually last week. bloomberg did a report in which they essentially said that they was going to start asking tutoring companies to become nonprofits. then earlier this week, the chinese government made it official that tutoring companies would all become nonprofits in the country. and there was another thing they added to which was for drivers, they want delivery drivers to be paid above the country's minimum wage, and they want to give them access to labor unions. so when you hear some of this is happening, it might sound like, what's the government doing here? well, it sounds like they're trying to better in some ways. and of course, in china, the very top down, a top down approach to everything. but they're trying to better the lives of people who are delivery drivers, which is making up a larger part of their workforce and also trying to get people better educated and so making tutoring, companies nonprofits, and been, you know, we've talked about the regulatory scrutiny that we've seen in china over the last
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several months. i know we've had you talking about it. we've had experts on it as well. and some analysts claim that china is recent action suggested the country is increasingly turning inward. do you believe that is true and how does that apply to what's actually going on? so i, i think that the country is turning inward in many ways, but i'm not sure that's necessarily a bad thing. i mean, what does it ultimately mean for a country to turn inward? it means that the country is focused on its own people and better in its own people . now listen, i'm not advocating for anything. the chinese government is doing them or saying they're making the right decision, but it certainly seems like they're making decisions that would benefit their own people. so when we talk about tutoring companies, it gives more access to morse students to be tutored to have a better education when you want delivery drivers to be paid above minimum wage. what you really saying with that you're saying we recognize that service industries and delivery industries are becoming a massive part of our economy. we don't want those people to be the lowest wage
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earners in the economy. and so you can look at it and criticize and say what the government again its top down. but it appears that as they turn inward there, it's not just a he left sell off to the biggest corporation that comes in. and that's not that the biggest corporations, just run rough shot over the people they do seem to be focused on trying to make lives better for the people we can debate whether it's right or wrong. that seems like what, that's what they're doing. a bad one last point we have about 30 seconds for this, but you know, when we talk about them expanding all of these things, especially when you get education with the delivery driver that only affecting urban metropolitan areas rather than the rural areas which actually have had some of the lower wages in china. well it's, it's going to affect, i think, the whole country, right? but when you think about the urban areas in china and in the united states, we have a hard time imagining this, right? because their cities are so massive, just absolutely massive and very compact in terms of didn't city so highly dense areas. obviously the biggest effect would be in those areas, but rural areas would be effective as well. and again, i think
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a lot of this comes back to the idea because it's, it was 2 issues we talked about. i know i'm sure here on time jewish is that we're talking about if the education sector and the internet sector, china is very concerned that across the country that tech companies will become too powerful and they're doing everything they can to prevent that. and i think we can take a page from that book, the investment fund. thank you for your time and insight on this one. thank you. and the united states is facing another record. trade deficit as data from june shows the imbalance growing by 3.5 percent and $91200000000.00 digging into these numbers, released by the us commerce department on wednesday, the importance of goods grew by 1.5 percent to $236700000000.00, while exports rose by under half a percent to $145500000000.00. now there are several issues contributing to this growing trade deficit. the u. s. is recovering faster than most countries as the economy fully reopened from coven related restrictions with americans essentially
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having more money to spend on import than those and other nations. the rising price of oil imported into the nation is also affecting the trade balance as well. and as we've talked about inflationary pressure, the price of imports has risen 11 percent over the last year. so let's dig into what all this means with john well to the dean of the miami herbert business school . the quote to always a pleasure to have you on the show. now this trade deficit has a lot to do with boom, booming us economy. but it should be noted that the deficit takes away from overall economic growth. when we see a record number is that concerning or just what comes with the territory for an economic recovery in the united states. i think it's more the latter brand, the us says consistently run trade deficits as the engine of the world economy. and so it's to be expected, i would say that investment data and productivity date are much more relevant to the, the health of the economy than the one month of trade data. now we know that rising
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prices for imports are a big deal here. and as we talk about getting a hold of inflation, how do rising import cost play and all of this? well, certainly, there is supply, train supply chain disruption underlying some of these import price increases. and that supply chain disruption applies to the, the basic raw materials that go into manufacturing production in, let's say china, a major export to the us. it is concerning, but i think most economists believe it as temporary. and once the supply chains are restored to normal operation, that the pressure for pricing increases will abate. the one thing i would say is that when you have the increase in prices,
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it's important to understand that the increase in imports overall depends in part on prices. as well as on the quantity of goods and services that are being imported . and in this particular data, the principal culprit if you like, is the, the price inflation rather than an upswing and the quantity imported well. and i was asking you to follow up on that exact point because, you know, when we look at that, sure, the supply chain might be worked out, but we still have much of the world as we mentioned in the, in the 1st, in the interest of this segment that still isn't in the need for those import. so as they start to need those important, even if the supply chain, they start to recover. if they're concerned that inflation might still take hold and might keep those prices high. yes, i think i think there is, i mean the certainly are 2 schools of thought at the moment on this topic. there is the school of thought that's really represented by the current federal reserve
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policy that the inflation of the day is temporary and contain a ball. and adjustments will naturally occur as the pace of economic recovery slows down. there's a 2nd school of thought that says that the substantial deficit spending and fiscal stimulus on the part of the us government has created an environment where inflation could take hold for the longer term. and now i want to transition to, to you, and i know you alluded to china, we talked about obviously in the 1st time with today. data from the peterson institute for international economic. the china is still falling short of imports from the u. s. province during the phase one trade deal under the trump administration. now despite overall imports from the u. s. rising, looking at data for both countries, china had bought less than 70 percent of the year to date target according to peers . that why is china falling short? when it's seen as the country with one of the fastest recovery. well,
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i think it's partly because china doesn't necessarily care at the moment to make an extra effort to achieve the full 100 percent. but so i was promised. but secondly, in addition, the imports that were guaranteed was sector by sector guarantees. and there are some sectors where the chinese import rate has been pretty good relative to the promise. but there are other sectors where it has not been as good . and in those cases, the chinese have been able to find alternative sources of supply. but i think fundamentally the chinese on to motivated the moment to bend over backwards to achieve full compliance. and frankly, the biden administration is not really that motivated to go
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hell for leather to enforce a policy that was inherited from the previous administration. now when it comes to those talks between the us and china, we've got about 30 seconds less. but how do you see those progressing under the binding ministration? well, i think the recent talks have been an assertion by deputy secretary of state, wendy sherman, an assertion of determination to hold the line in terms of a tough us stance, not just on the economic issues, but on the whole range of political issues. taiwan, hong kong, the week as the islands in the south china sea. all of these issues enable us to embrace other interested countries in the asia pacific region and bring them on board to take us off stance against china. so at the moment we're not seeing much progress, but at least as dialogue at the highest level. and that's important. john calls
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jane of the university of miami herbert business school. thank you so much. thank you. the northern stream to your pipeline is 99 percent complete and then during its final month of construction projects, c o says it expects the $11000000000.00 pipeline to be complete. by the end of august, he confirmed the plan is to begin delivering gas from russia, germany by the end of the year. he also pointed to the recent agreement between the us in germany and said it paved the way for the final completion of the project. but not everyone is happy about it. in fact, there were a flurry of op eds published this week in opposition to the agreement, such as this one from the hill, which argues that by dropping its opposition to a pipeline that was already almost complete. the binding administration is displaying a lack of coherent strategy towards russia or this one from politico which claims that germany shows russia over the us and
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a deal that notably benefits germany directly. and that the agreement was made with moscow in mind, even though it includes vague threats of action to be taken against russia. if the u. s. teams is necessary or how about this one from the bloomberg editorial board, which claims the deal leaves little to celebrate because they allege it damages national security and threatened you can ukraine with little benefit for europe in return. it's bizarre that it took a number. what it took these guys a week to collect these thoughts, which clearly they have every single day of their life. that if you allow anything positive for russia, it apparently positive for germany that somehow the u. s. administration is weak on that, but why? you know, it also raises the question of what do they expect the us to do here? i mean, we've seen the trump administration was against this pipeline since day one. the buying and ministration came in. they threatened sanctions against one of their closest allies. germany said that they weren't going to back down because this was
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good for them. and then now all of a sudden we have all of these up as claiming that the u. s. should have been doing more when we have to remember that this is a point on the other side of the world that has nothing to do with the united states. and i think if you ask the germ, if you check chancellor anglo merkel, if you asked her, i think she would say, and the united states did a little bit too much here. probably though time now for a quick break. but when we come back, we take you back inside the federal reserve as us central bank is urging patient on its cobra decision. and as we go to break here, the numbers at the quote, ah, the ah, the
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ah, ah. the new gold rush is underway, and gunner thousands of ill equipped workers are flocking to the goldfields, hoping to strike it. rich children are torn between gold and education. my family was very poor. i thought i was doing my best to get back to school, which still will have the strongest appeal from
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germany, where a long steady find that the the biomass of fly inside the weight of flying insects fell by 76 percent in the last 26 years. so instead of just becoming much, much less common, which means all the jobs that they do are not being done anymore, and that that is the real danger. and that's what's going to impact on the welcome back. the federal reserve concluded at the latest meeting on wednesday, and chairman jerome powell delivered an address that was very similar to what we have heard from the fed for the last several months. he continued to claim that not enough progress has been made just yet. and not of course, the record inflation we're seeing will only be transitory. resting vaccinations and unprecedented fiscal policy actions are also providing strong support to the
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recovery. indicators of economic activity and employment have continued to strengthen and real g d p this year appears to be on track to post its fastest rate of increase in decades. much of this, rapid growth reflects the continued bounce back and activity from depressed levels . joining us now to discuss is jeffrey sector contributor to real clear market. now jeffrey, we continue to hear more of the same. so how is the fed justifying this lock of action at a time when inflation is having a very real impact on the economy? are they claim that they're not yet where they want to be in terms of recovery, but you know, we should be clear. but our terms here, this is, this is my major problem. i have that address today. i'm wanting, he claimed that you know, all the comic depression of 2020, but through the pandemic, which is clearly not the case, was due the locked downs. and he somehow can't say the elbert are very you got
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propaganda there. and that rubbed me the wrong way. like if you don't even know the cause of the problem, then it's not clear that you know the solution and of course, or their proposed solution. but it's infinite amounts of credit expansion and accommodate a policy to give it congress. you know, everything wandered by just writing checks on the federal reserves account, which basically amounts to creating money, which no surprise then leads to this problem. i can inflation, which is partially monetary and partially due to disruption science by change and so on to what he's waiting for is to discern, to what extent the tradeoffs there are in place to me, how much of it is due to monetary factors. how much is due to just say the economy recovering from from lockdown? and he doesn't really know. i don't think anybody really knows we're going to it's looks like, but he know for a fact that he can't keep up. the continual purchases of whatever kind of junk is out on the street today, which is what they've been doing for the good part of the year. so he signaled that
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at some point, maybe perhaps they're going to consider the possibility of maybe taking away the pencil at some point later this year he says, although we know now that back to the reverse itself, that of course he says all of his jibberish with the usual scientific impose and the blather of if you know exactly what he's doing, i can promise you this. he has no idea what he's doing. i mean, jeffrey, i guess here's the question i, i think this is the probably 3 trillion dollar question. if you have one is what happens if they, you know, slowly taper off interest rates. i'm not saying go to 3 percent today. i'm saying, you know, you do it by quarter, 25 basis points, maybe 50 basis points at a time. you start pulling back some of that q a. what's going to happen to the economy? are we really going to falter so much? they're not going to play with interest rates before they stop these purchases. they're going to their, their method is going to be to,
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to stop supporting the dead markets gradually, before they ever started touching the actual federal funds rates and that sort of thing. so i think we're looking at, you know, probably middle of the next year before we start talking about like, actual changes and interest rates are going to try anything they can do that because you know, that could really vastly backfire, is going to tremendously increase the cost of borrowing, not only for private markets, but then, but for, for government to. so they don't want to do that. they're in love, it's as low rates. somebody else who love low rates has wall street. so there you have a real problem because you have the financial markets utterly and completely addicted to credit a credit from the federal reserve, the likes of which we've never, we haven't seen this in a century. and farmers have can be very cynical. i mean, i don't care if it's real prosperity of fake prosperity or printing press prosperity agend when wealth. all they want is something to inspire prices to go up
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. and that addiction on the part of all true. that is a serious problem, pals aware of it. he's not gonna let the markets falter, especially because he's going to be facing reappointments, sued, is all about that and timing there now when it comes to the asset purchases. i mean, we've heard from multiple fed officials who say they believe it's past time for the central bank to start rolling back those policies. but what kind of movement is it going to take to actually get that to happen? so some who's going to have to change because, you know, you've got to figure that, you know, the fed as we've been waking up, you know, every single day worried that you know, everything is going to fall apart in this house of cards they've built. so they're afraid to make any changes. i don't know what the effects, especially given the housing boom and everything else. what are the effects of the fed just leaving, leaving that market? you know, we don't know to what extent this boom is sustainable and playing around with their asset page purchases and any sector is going to have some kind of profound impact
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whether it's real or pretty psychological. so i would say pal right now, it's just extremely cautious to act. and that could be ultimately doing because something to somebody, something how to change the liquidity that pumped in over the last 16 month. gotcha . we stopped up. some things got to change in the federal reserve isn't quite ready for it. yeah, great inside is always jeffery tucker. thank you so much for your time. it's pleasure to be here. thank you. and finally, a one of a kind album by legendary hip hop group wu, tang clan has been sold by the united states government. that sentence needs a bit of explanation. rachel, the album once upon a time and shower was initially bought by the infamous farmer, bro martin, squarely, prior to his conviction for securities fraud. no scully, who was widely criticized for obtaining the manufacturing license for the anti parasitic drug dara prim by $56.00 times bought the item at auction in 2015 the
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buyer and seller the sale price of the album have not been disclosed by prosecutors, but they say it was enough to cover the remainder of the $7400000.00 forfeiture against the farmer, bro. he was also forced to hand over other assets he had collected as part of the judgment, including an engraving on paper by pablo picasso, and an unreleased version of will. wayne's album, the carter 5 now the contract for the original sale of the duke wu, tang clan album, stipulated it could not be sold for 88 years, but could be released to the public free of charge as a streaming and shared listening parties. but you couldn't sell any of it. there were also quite there. there was also a clause stating that the seller that would be the woo could execute a heist to steal back the album one time. and for some reason, if that only original members of the bad could participate and or actor comedian, bill murray. ok, i don't think you could have come up with a more bizarre story if you try to. and bill murray, how to be less of this,
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put this in together. i mean, 1st of all we had farmer brown, which you don't hear too much about him these days. the wu, tang clan, i mean there's a lot here. and i remember when the sale happened in 2015, i believe kelly bought it for about $2000000.00. and it was absolutely crazy when you would hear these clauses in the, in the contract. also to be fair to tech land. they weren't particular happy that he bought it. so what they did was they don't do a lot of the proceeds, the charities of their choice. i know there were some education related charities in brooklyn where they're from, and i hope they're from brooklyn. i hope i didn't misstate that, and now the u. s. government got for this type. can bo buzz our divan, the fordable tv app available on smartphones, tablets to google play in the apple app store by searching portable tv. one tv can also be downloaded on samsung smart tv using roku devices, or simply check it out at fordable dot tv will see you next to me. ah,
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ah right now there are 2000000000 people who are overweight or obese. it's profitable to sell food. that is fatty 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 because it's corporate, me, when i would be wrong. why don't, i just don't get to see out the thing because the after an engagement equals the trail,
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when so many find themselves world apart, we choose to look for common ground algorithm. so neural networks have been following us every where we look online, because our relationships are what matters most of us. and that's how we find meaning and how we make sense in our place in silicon valley see, don't mention in the slick presentations. however, i think ghost workers who train the software human, they're involved in every step of the process when you're using anything online. but we're solve as this miracle of automation behind your screen is the rubble workforce. the scenes algorithm is for next to nothing on a very good day. i could do $5.00 now. a really bad day. i could do 10 years where
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there's removeable by design, it's about labor costs, but it's also about creating layers of western responsibility between those who solicit the kind of work and need if and those who do it on a sporting hero or weak willed in the face. of adversity opinions divided over and help us gymnast. he's quit to in the finals of a mental health concern while german competitors in toe kit made it sound sexism. debate. what's already been done? the woke games are becoming increasingly dominated by policy. i think it's a great opportunity. we've seen so many changes already. i'm not where we should be confirmed because we don't want to be just a vehicle for the latest 5 that comes along the radius. tackling an influx of illegal migrants for this course is that we allow measures to stem the flow,
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the full violent on the issue while at the same time plumbing other states, the similar.

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