tv Boom Bust RT August 3, 2021 5:30am-6:01am EDT
will explain, then we had back to decrypt for the cybersecurity sector, as officials from several governments are warning of the top border abilities and systems. we have expert analysis on hand for the facts today for the dive right it . we begin the program at the latest on how the world's top economies are recovering and how their output is being impacted by skyrocketing prices and continued supply chain shortages all as we enter the 2nd half of 2021. let's start in china where the world's 2nd largest economy saw it's factory output grow at its lowest rate and 17 months. now the latest purchasing managers index showed slight growth, with a rating of 50.4 in july, compared to 50.9 in june. now it's important to note that anything over 50 shows, growth, but this still marks the lowest rating since february of 2020. when the index contracted to 35.7. now we're china's economy is seen as rebounding from the
pandemic. it's factories are still battling with supply shortages and the high cost of materials along with record rainfall, which resulted into rental floods, leaving more than $300.00 people debt. now supply chain disruption. they're also a notable factor over in japan where the p m. i rating rose to 53 in july from 52.4 in june manufacturing, and the 3rd largest economy was carried by the output in electronics and the auto sector. as demand for some, my conductors remains high, then gross fueled by increased demand abroad and increased employment at home was also seen over in europe, the largest economy, where it's p m. i hit 65.9 in july, from 65 point one in june. now, notably, this is germany's 3rd highest rating and more than 25 years. however, it's a bit of a different story over in the u. k, where
a factory output dropped to 60.4 from it's 63.9 rating in june. but the economy appears to be coming off of that all time high that we saw back in may. now, as for the world, the largest economy, which i know you're all waiting for, well, we're still waiting on those july numbers for the u. s. after we saw production dip for the 3rd time in 5 months in june, all inflation continues to rise. so what does this mean and what are the greater implications on the global economy? to continue the conversation last spring and boom, less co host chris b, i. now christy, we keep hearing that the record inflation and supply shortages we're seeing right now won't laugh, but do you see anything to indicate that that's actually the case? no, i think that this inflation actually will be persistent and it will be last thing because in fact, corporate are actually anticipating that this is going to be something that's going to be here for at least the next couple of years. and it can only get worse from
here because for example, corporate are now dealing with this phenomenon called shrink playstation. when we actually have commodities on the shelves that are actually being package smaller. so if you go to the store, for example, consumers now they're looking at these walmart, great value paper towels that used to be $168.00, she's per roll, and now it's tricking down to a 120 sheets serial is being being downsized. tubs of ice cream have been reduced by 25 percent from their previous gallons. so consumers now are going to be working extra hard in order to try to protect their dollar value. because every single time they're actually getting less for the dollar, which is going to be the long term cost of inflation. and christy, when we're talking about record inflation, we're saying worldwide, along with the supply chain shortages and the impact, those factors are having on the world top academy. what's the long term impact here? what's the big picture? when we look at this, do you think there should be more concern than what we've seen so far?
absolutely should be more concerned. i think consumers are going to be, this is going to be starting to become a very big headache for consumers because the long term effect on this is this guy . he rode on their savings, their value of money. and especially right now when you have still very high unemployment and you have wage growth that is still quite stagnant, even though a lot of people are pushing for higher wages. a lot of unions are pushing for higher wages. higher wages means that businesses are going to have to start upping their prices in order to, in order to be able to pay and afford these higher wages for their employees. and that ultimately is going to shift onto the consumer. so it's going to be a very vicious cycle once you get into it. so you really can't escape. but once you get into this very vicious cycle of inflation, which is kind of what it feels like now, which is why companies corporate, they're all already ready readying for this event, reality in the near future for the next at least 2 or 3 years in order to be whether this entire inflation cycle storm. because once it starts,
it's very hard to get the ball to stop. yeah, exactly. once that snowball starts rolling down the hill, it's hard to get them to stop it yet. we've got federal reserve chairman jerome powell thinking that he can stop it. and i know this is something that we've talked about a lot, which is powell admitting that inflation is expected to rise. but then saying that it will only be transitory and that the fed isn't ready to pull back on those policies that they put into place last year. now when we're talking about all of these warning signs that we're seeing, is there any indication that powell is going to change his stance at all in the near term future? especially when his position is chairman could be up for grabs. next year it's going to be very difficult for him to try to change position because if he were to change his position, that would essentially be admitting that he was wrong this entire time and saying that it's been transitory. and so he's been suddenly been just digging himself a deeper hole, and now he really can't change his kin. and the other big problem is right now, we're in a very globalized world. so inflation in the u. s. isn't going to be contained to
just the us. and as you mentioned earlier in the reporting, our supply chains are worldwide, especially for things like semiconductors, which cross water several hundreds of times before, even landing as a final product out his final destination. so in this very globalized world, inflation and one area will affect other countries and supply chain disruptions and inflation on commodities. that's going to affect things worldwide. and that's going to be everything from consumer goods and household stables all the way up through high tech. and even if, even if the fed manages to rain and inflation in the u. s, which is a very big if, because he hasn't even given any specifics on how he plans to tackle inflation. considering that, according to him, it's no big deal. then you also have to worry about inflation and other countries such as china, where the u. s. has actually exported a lot of their inflation onto in china because essentially the u. s. has the buying goods from china for the good part of the last decade. so that's been export to inflation onto china. so even if you manage to contain there's,
they still have to deal with the upstream inflation coming from china because the u . s. no matter what they still purchase goods from china, they still purchase consumers, tables, and all the commodities and the earth, minerals that we talk about, that store comes from china. so upstream, why? you have to think about that in the logistics term. excellent points to consider here, christy, i don't go anywhere just yet. we'll have you back to talk about the world of crypto straight ahead. thank you. and the united states said it finally released the text of its bipartisan infrastructure bill sunday. aiming to pass the massive measure this week, but this bill does a lot more than just deal with infrastructure. buried within this new legislation are new regulations that could potentially cause serious harm to the crypto currency industry. joining us now to break that down, or boom bus co host, a crypto adult bend swan and chris, the i who i know it's been so long since we've had on the program. ben, i want to start with you here. breakdown for us,
what is in the bill that could be so negative for the crypto industry. yeah, i've actually been talking about this for quite some time as you guys know and warning the this way, look basically in order to be able to do all the infrastructure projects of the u. s. and it wants to do, they want to go out and find a whole bunch of tax revenue. and one of the easy targets for that right now seems to be decrypt job history. the goal here is we're. busy going to go after those who whole crypto currency, those who own it, and also specifically any kind of exchanges or brokers if you will, i guess that's what they want to call them now, is treat essentially exchanges as if they're brokers and set them up with the same kind of regulation you would have if you were a broker for the stock market. the other point of this is that the, the feds are essentially going after. anyone they think is delinquent on paying taxes in the past for crypto currencies. and they of course, want to increase capital gains because they treat crypto currency like it as a capital gain, as opposed to treating that, like it is a currency and all of that combined. it's to bring in something like
$28000000000.00 for them to be able to push forward this infrastructure plan. and of course, they're finding a way to roll their latest agenda into this infrastructure package. it always seems to have happened that way. now christy, because this bill is so large and there really isn't a lobbying effort on behalf of crypto currencies. what will the effect be on the industry if these new rules become law? well, if they come law, it's mainly going to have an effect on all of these big players in the industry, the very specific li, brokers at the broker dealers and the people who manage the exchanges. so this is gonna have a huge effect on the very nascent industry because essentially people forget that the crypt the industry is still in its infancy and at the end of the day these are start up. so when you see these i seos or any of these coin go doing their coin offerings and raising billions, sometimes billions of dollars. you think that oh hey, this is all going to the company. they're very well funded. well, no, because the end of the day,
these are start up and that money doesn't go into the pockets of the principals or the developers. it literally goes into the actual company to extend its runway for the to push the project forward in order to create the project. so that money is supposed to be locked up for at least a good $5.00, maybe 8 years to extend their runway. so people thinking that, oh, these are very greedy, greedy, c e o 's who make a lot of money out there. i feel know that is simply not true. and so if we were to do this, you're essentially choking off the very nice and start up industry and legal problems are something is very big. no, no, that's essentially the death knell in a start a coffin. so if this does get past has been done, i don't think that they will actually collect the 28000000000 that congress things because essentially ill just push the entire startup industry away and it will basically see american leadership in the crypto industry. and i mean, you should have just learned from china because china literally just did this entire song and dance with the crypto industry. and what happened? they all left china, they all love china to more crypto friendly countries,
crypto friendly faces. so i really don't see why the us things that it's going to be different this time around. yeah, there's really a lot at stake here now been, we also want to bring up the future of a possible digital dollar here in the us. we heard from the governor of the federal reserve, say on friday that chief, among the reasons the us needs to have a digital dollar is that other countries are racing to issue their own central bank back digital currencies. so is it inevitable that the u. s. will create its own digital currency eventually. yeah, i think it absolutely is inevitable. it's definitely on its way. it will definitely become a reality. so this goes back to what kristi was just talking about. i believe the reason why congress thinks that they're going after crypto currency to raise revenue. that's what they would call. and i don't believe that's revenue, but they will call it raising revenue. we're going to go after this, this industry and we're going to tax it heavily and we're going to be able to take revenue from that and use it. but i think there's another force at play here or and
more so it says, let's clear the deck. let's get rid of the competition because a u. s. central back digital currency is on its way. there's no question about that. and when it arrives, the fed doesn't want any kind of competition for that. they don't want to think that there's going to be big coin and the theory him and like coin and bitcoin cache and the other 100-2000 crypto currency is out there to be competition. they want to clear the deck, so the more that you can create problems with the crypto industry right now, the more you can get people to move away from it. in their belief system, the more likely it is that people will sign up and pursue a central bank back digital currency. i don't believe they will, but that's what the fed, i think, absolutely believe. and it's interesting because that's the way they look at the us dollar. that's why so many things are traded in it. is they say, hey, you can't move away from the us dollar and that same way. christie. lal brainard,
the governor in question went on to say that a digital dollar could also help people without a bank without bank account to get government aid, such as crow virus pandemic relief payment. but how is that any different than what currently exists in the crypto market, which is often looking at people who are on back? well, there really isn't any difference except for the fact that on one side, using anything like tether or u. s. b, s or u. s. d c coin or even makers. dow, that's actually controlled by the coalition and the creators who actually issue it versus this one, the us dollar that's issued by the fed. obviously that will be controlled by the fed and that's what they want because that's literally the only difference they don't like sharing their power. they don't like another organization having the authority to issue something like a monetary instrument. so this, this point of the bill is actually quite disturbing because it states that the federal reserve will have be explicit authority to issue the digital version of the us dollar. and on the other hand, the u. s. country will actually have the authority to permit or prohibit us dollar
and other fee ought to be stable court currency. so that's very disturbing to me because at the end of the day, a stable klein is essentially just another derivative like any other derivative in the market. giving the government authority to allow or disallow a stable coin. i mean that's just a joke because this derivative on everything on oil on cattle, natural gas grain, betty, on mcgregor versus poor. yeah. i mean stock on the real estate you name it. so why not have a derivative on the dollar? why is this? why can this possibly be considered illegal? so if a stable coin is backed by a bank, or say any other reserve that the people trust that the people actually chooses, then the trust and should have no part in deciding its fate. because nowadays, the government just likes to sticks its nose into where it really doesn't belong. so that is kind of just very disturbing to me because it's an expansion of their power. excellent questions to consider. boom bus been flawed and kristi,
i thank you. thank you. time now for a quick break, but when we come back, cyber security officials from the u. s. the u. k. and australia have issued a new advisory calling on the private and public sectors to catch up before they are targeted by hackers will discuss. and as we go to break sure the numbers out the clothes shoes me in the old days before breaks it because the u. k. was attached to you. they could do it. other countries do, which is to take all their debts and dump it into this giant shadow banking system that covers the world's largest trading block. and you could kind of buy time there
because the sci fi is printing and buying and monetizing debt by the trillion. so christine the garden, literally just buying trillions and trying to garbage debt, but now post brag that they don't have that way to wash the debts into the greater he, you laundromat. and so that is going to, for the 1st time post bracket. debts are going to start to cause a lot of pain. i really wish it was nice to have off the field. but all the people that actually use them shape which is a big me put your budget that i would continue to
ah, the popular videoconferencing company zoom has agreed to pay $85000000.00 and a settlement over claims that have violated the privacy rights of its users. now you may remember last year when there were reports of zoom calls that were being held for company meetings or elementary classroom that were then hack and infiltrated with races, language and pornography that led to the company being hit with a class action lawsuit. amid allegations that it wasn't doing enough to protect its users. now zoom has also been criticized for sharing personal data from its users with the likes of. 8 facebook, google and linked in the settlement is seen as a low for a company that has made $1300000000.00 and subscription fees. but the plaintiffs
are expected to seek more than $21000000.00 in court costs. as a result, zoom has promised to enhance security measures by alerting users when meeting host and participants are using 3rd party app. the company says it will also provide specialized training for its employees on privacy and data handling, moving forward. and cybersecurity officials from the united states, united kingdom and australia, published in advisory last week, calling on private and public sector companies to fix the vulnerabilities in their systems and software that could be exploded by hackers. now, the advisory by the u. k. national cybersecurity center, australian cybersecurity center, and the u. s. f. b i and cyber security and infrastructure security agency states cyber actors continue to exploit publicly known and often dated software vulnerabilities against broad targets, including public and private sector organizations worldwide. however, entities worldwide can mitigate the risk vulnerabilities listed in the report by
applying the vailable patches to their systems and implementing a centralized patch management system. now that statement seems particularly technical. so let's get some insight with morgan, right? dirty off adviser to set no one and former senior advisor to the us state department, anti terrorist assistance program, morgan, always a pleasure to have you on the advisory says 4 of the most targeted vulnerabilities in 2020 had to do with bpn, cloud based services and other protocols that essentially allow people to remotely access network, obviously many were forced to work from home amid the pandemic. but right, we are seeing so many companies saying that that's going to continue likely does having tell work capabilities make private and public organizations more vulnerable to attacks? britain simply having the capability isn't making verbal, but when you fail to secure it, you failed. implement the right control to fail to patch the systems that what's
makes you vulnerable and yes we are, there's a lot more tell work remote working going on and track, you know, work is no longer a place you go. it's now something you do, for example, west virginia, i believe last 3 percent of their population. why? because people could work remotely. so i think they moved to florida. so, you know, we're seeing a huge shift in this and the real big impact the spread is the lack of people, the lack of skills in this area we cannot hire, are we out of it. and it, quite frankly, with the amount of this out there in the amount of technology this out there, there's just simply not enough people to keep up with it. now morgan, one of the other things that this advisory mention was it stated that 4 of the top former abilities range from 2018 to 2020 but had yet to be fixed or patch. and i mean, frankly, we tend to hear in every major cyber attack that they have been warned by experts of issues within their system. so why does it take so long to get the appropriate fixes in before something happens? i mean, is it just about funding here?
you know, no, it's not, it's a lot of it's about priorities. it's about people. it's about the ability to scale and it goes back to there's just simply not enough people. so you know what they've really got to do. there's a reason microsoft, cisco, you name it or oracle, there's a reason they release patches because something's wrong in their apple release patches when they found out that there were 0 de vulnerabilities. and there safari browser that was being used by the israeli organization in a. so to target things, there is a reason to patch things, but look, it's one thing for consumers. i can update my phone but, but if we're an enterprise and you've got 510200000 in points, you know, i'm not trying to mitigate it. but i'm simply saying it is a complex issue, but look, there are priorities and the people to your point have to prioritize these things, especially things around security, remote access and like you say, cloud services we keep getting hit by the same things i mean, the playbook is there, we know we've seen this movie, we know how it is. we just got to start cutting off. you know, what happens here. so this is a situation like when i get
a windows update and i say remind me, next week. anyway, i want to move on to other cyber security issue here. last week, president bite inside another executive order on cybersecurity aimed at protecting critical infrastructure. the order mostly calls on companies to voluntarily meet a series of criteria, like encrypting data and require to factor authentication. the vital ministration has made a lot of moves over the last few months. as you know, cybersecurity becomes a hot topic, but that is actually going to make a significant impact. you know, if i knew that answer, i'd be rich sitting on an island somewhere. i just, you know, it is so hard and you know why, because we're dealing with people at the end of the day. you can have executive orders, you can have laws, you can have policies, you can have regulations. but at the end of the day, things change, in fact, the problem is technology evolves faster than the ability for law and policy to keep up with it. why i think i may have told you this before the original wire tap law was written in 1928. i mean, we're now nobody knew about the internet back then. except al gore had invented it
yet. it all. but this gets into an issue, executive orders are only as good as long as the president, the next administration, if it's a different one, keeps that executive order in place. so yeah, this is going to be, this is a long haul. the problem is with this infrastructure bill, you all have been talking about, there's not enough money in here to to, to improve our ip infrastructure. we have to overhaul the entire i t infrastructure if you really want it to be secure. otherwise, we're just putting patches and we're glowing things together, and it looks like a patchwork instead of a seamless integrated system that it's supposed to be. now before we go, i want to bring up one more comment that bite and made when he reportedly told intelligence officials, quote, if we end up in a war or real shooting war with a major power, it's going to be as a consequence of cyber breach of great consequence has the situation really gotten that bad. you know what? not because if somebody breaks into my computer and it starts to war,
i don't want to be responsible for this. but this is what gets into this really defines a clear problem, which we know we know about the release of nuclear weapons. every nation class nuclear weapons has a set of protocols. it says, this is what we'll do. we don't have clear policy yet on. when does a bit and a bite to get a bomb and a bullet? i will tell you, a breach may not cause a war, but i will tell you that the use of cyber offensive cyber weapons offensive cyber technology will absolutely be part of the hybrid war in the future. if, if there's to be one in taiwan out between in places like that, even the philippines, i think hybrid cyberg or like, has been done in the past will be absolutely an essential element of any future console. and that was exactly the point i was about to make was that it seems like that's actually going to be the next front in those types of work rather than it would be maybe the cause of the next thing. but i'm not the president united states . he is so he can make those decision. alas, we're out of time. morgan, right, cybersecurity advisor with that one. thank you so much. you bet brent. thank you.
and that's it for this time you can catch boom bus on demand on the portable tv app tv app, which is available on smartphones and tablets through google play in the apple app store by searching portable tv, portable tv can also be downloaded on samsung smart tv and roku devices or simply check it out uh portable dot tv. well see you next time. ah the know what would you love you to give them
and you can measure can while we're on by now, i know i should know moment the age mon deals on miles like one and then that will allow you to go for have an initiation and with much i should be a bit off the so give me a shout and i will send one out. my in my name is c l look forward to talking to you all that technology should work for people. a robot
must obey the orders given it by human beings, except when the short or conflict with the 1st law show your identification. we should be very careful about artificial intelligence. at the point, obviously is to great truck rather than fear like will take on various jobs with artificial intelligence, we'll summoning the theme in a robot must protect his own existence. with the new gold rushes underway, him gunner thousands of ill equipped workers flocking to the goldfields, hoping to strike it. rich, give the children a torn between gold and education. my family was very poor. i thought i was doing
my best to get back to school, which still it will have the strongest appeal. the headlines his shoes for moscow. millions and cash strapped americans risk being kicked as an eviction. imposed to try to help the spread of coven comes to an ad at the same time as congress which failed to extend. it goes off on a summer holiday. i have been evicted before myself. i have had to sleep in my car myself, and so as a sitting congress woman, there is no way that i could just allow congress to recess and go on vacation. covering this to a former british, i'm boston, turned blogger has surrendered to police to serve a prison sentence for contempt of court. it's a case that says, shot ways through the germ this community. because national l service said curtly, apparently, while the draw.