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tv   Boom Bust  RT  August 24, 2021 9:30am-10:00am EDT

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the really the program with the late us on the north stream to pipeline following talks between leaders from germany and ukraine over the weekend. while the u. s. has said it would publicly drop its opposition to the project, whereas allies in europe are concerned. the buying, the administration confirmed it is moving forward with sanctions against a russian ship and 2 companies involved in the construction of the pipeline. the deal between the u. s. and germany was meant to address concerns from countries like ukraine and poland, which said they stand to lose billions of dollars in gas transit fees when they're bypass with the new pipeline. even so you cranium, president vilicki said he still views nordstrom too, as a dangerous weapon. yes. about the north korean to question i consider that i
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consider that not to notice that it is a dangerous clip and not only for you frame, but also for the whole of europe. i consider that it seems to me, it is wrong, not to notice that it is a weapon, which a crane will not definitely talk about more thing to an economic issue. that's why i think, to angela that even now when the nord stream to is unfinished, we can see who controls gas prices in europe. almost. the deal with the u. s. also forces germany to agree to impose sanctions against russia. if washington determines that moscow is in fact, using energy as a weapon, german chancellor merkel pointed to this part of the agreement to say she believes it will keep moscow in check. as from my letter from my side, i want to make it clear that i see the german american paper as a commission of the german government to precisely prevent, with president de leno, concerned about, namely, the energy would be used as a weapon. that is exactly what is presented in this paper. i appeal and apart from that, i must say that it is not
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a german russian project. there are companies from the netherlands, from franz, from austria, and from germany, connected to the project merkel. also, providence still waiting on more information from europe, but we are ready here and i want to say it again. i've said it publicly and i want to emphasize that we are read, receive an answer, including from our european partner, if the how much gas they are ready to buy. there has been a lot of protest over the creation of the nord stream to pipeline. but one thing i think the market is going to remain content that you're going to see this pipeline opened. and it's probably going to become a key key source of energy for germany. and now when it comes to the smaller nations like ukraine and poland, that have come to rely on gas transport fees. the deal looks to help them out somewhat in the short term. but how much do they stand to lose in the long term? and is there anything that they could actually do about at this point right now, it seems like they're in the tough place because i don't think that they're going
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to be able to, to recover those loss revenue streams. and you're probably going to see that everyone is going to try to be grow independent of gas flows from russia. and i think you're going to see, you know, calls for new alternative sources of energy grow across the you. now while we have you on here, we also want to take a look at the world of oil. last week we saw the 7 days of straight losses for brent crude and west texas intermediate marking their longest losing streak since october of 2019. so why did they take such a head and what fueled today's gains? well i think the sell off was a little bit overdone it's, it's hard to imagine that you have a market that is so heavily in deficit and crude almost phone to bear market territory almost a 20 percent drop. and right now i think what we saw was the, the whole global outlook for true demand. got a pager downgrade because of the delta variance. and i think we even saw with the
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like, for instance, goldman sachs is downgrade a 3rd quarter outlet for the us economy going from $9.00 to $5.00 and a half percent. use us, you know, you know, strong downward revisions globally. and we think that right now, they're just belief that you know, the delta variance was really going to prove, worry, some in lingering. and i think right now at the start of the week, you have the pfizer and announcement on their vaccine getting the f d a approval. you also have strong optimism that the south has seen the peak in this delta variant wave. and i think there's this optimism, you know, we're gonna, we're gonna have to adjust life with congress and you were going to see surges. but i think that the demand is for crude is still going to remain strong. and this market is heavily in deficit because there's a lack of investment in the wells. so you're probably going to see $70.00 oil and probably the next few months. and i wouldn't rule out $80.00 oil by the end of the year. and so you're saying that in your opinion here,
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despite the fact that we are seeing some nations institute new travel restrictions, the you don't see oil dropping off the same way we may be. did you know, last march at the beginning of the pandemic or anything like that? it seems unlikely. i mean, even take a look of, for instance, china, china, they saw cases fall to 0. so i mean, in china was, you know, battling a couple of spikes here. and there, so i think there is optimism that, you know, the rest of the world is finally getting their hands on vaccines. and i think that you're probably going to see their over your opening momentum. is it still? i think we're headed in that direction. land america who has several countries of brazil has struggled in, in really controlling kind of it. things are not looking great, but i mean they're, they've improved dramatically from the, the worst times that they saw just over a month or 2 ago. so. so i think you're going to see the world adapt to how to live with cove it and i think that you're,
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you're probably not going to see the demand too much of a hit. now even with that, ongoing slow down in fuel demand due to the delta variant. as we've been talking about, asian refiners are buying more crude oil from the u. s. since it's much cheaper than buying it from saudi arabia. do you see oil exporters in the gulf of mexico following their lead and raising prices as well? i think i think you're probably going to see very marvelous increases, i think right now with, with the outlook for, for i think energy in the us. i think there, there's this firm belief that you're going to probably have studied demand from up abroad but, but i think what we have to remember, oh, we're really kept oh here capture. yes, i apologize. go on. i, i apologize. i thought i lost you there for hours. no, it's not was i think that there's this, this, i think belief that right now,
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opec plus has had to take quota and they've been even with the market and deficit by over 2000000 barrels. they announced last month that they were only going to increase my $400000.00 in august so, so this is going to work itself out. opec plus does not want to lose market share. and you're going to see that opec plus is going to deliver more barrels of crude in the short term. and i think the violent ministration made that plea so. so i think you're gonna probably see that us producers are not going to have much. i think power and as far as demanding much more higher prices. great. and that as always, add more of a landa. thank you so much for your time today. thank you. and after a sobering, last few months, bitcoin is headed back up with the world's largest crypto current fee hitting $50000.00 on sunday to reach a more than 3 month high. bitcoin hit an all time high over $64000.00 in april, but sold off heavily in june and july,
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even dipping below $30000.00. this as so many people in places like afghanistan are making a real world experiment of crypto currency. jonathan, discuss those story that boom bus co host and crypto analysts, ben swan and chris, the i. christy, i want to start with you here. what is driven bitcoin latest rise back about $50000.00? several things. big coin initially dropped from the all time highs, mid a slew of bad news. so we had the crackdown in mind from china, which caused the hash rate to drop more regulation. eli must trolling bitcoin and while several of those factors still exist, the future big one looks a lot more positive. we are now in the aftermath of the china crack down. and once again, the unity realized that, hey, was just a whole lot of talk from a special, but no matter what they do, they can't really crack down. this is only the team's time to try to try to ban bitcoin. and once again, it has failed. this time though,
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all the minors just picked up and left, which caused the hash rate to drop slightly while in the world in the midst of the move and hash rates dropped bit. coins also sold off at the miners need to funds to relocate. but now all that shuffle is done and the network is back to operating business as usual. again, highlighting the power of decentralization. and then of course, the other big piece of news to help push bitcoin back above $50000.00 was the announcement from coin base announcing that they will buy back $500000000.00 in crypto on its balance sheet and allocate 10 percent of its quarterly profits into crypto acids portfolio and the seo armstrong announce that this percentage will likely keep growing over time as the crypto economy matures. so that was also a big boost to the industry. now on this topic of more and more people getting into crypto been there is a pretty interesting experiment taking place enough, dana fan where the taliban have re taken the country. and simultaneously there has been a run on banks results. central bank officials literally fleeing the country, but some people in this country have turned to bitcoin. is there
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a real world experiment here? what say you? yeah, absolutely. various look, there's a, there's a lot going on and i'm going to stand right now, aside from the political turmoil aside from all the americans who were trapped there. right now you have the issue of the, as you mentioned, run on banks where there's no cash in the country right now. there's long lines outside the banks for people trying to access money. western union has now halted all service to the country, so you can't send money into the country from outside and you can't get money out of the country and send it out. and then of course, you have people trying to convert to other currencies like the circus mirror. so all these different things are converging at the same time that makes for a huge mess as the, you know, afghan afghanistan's currency itself is also dropping. and so you have a lot of younger people, country who have turned up the currency like big coin. why? well, number one, it doesn't lose its value, even if your national currency is being the value you hold onto your value across the borders. obviously, as we talked about so many times, and so there is a huge advantage to being involved in the crypto space right now for people in this
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country. is it a real world experiment? maybe not an experiment so much as a real world use case for the, for all the reasons that those who have advocated crypto currency, like chris christie and myself for many years. all the reasons that we've said it is superior to any central bank. currency is being proven right now and absolutely it certainly could have a very rural world impact. now, christy, going to another part of the world, we're seeing that paypal is launching as crypto currency service in the u. k. and the u. s. online payment giant said monday it was what british customers buy, hold and sell digital currencies starting this week. so what does that mean for the continued expansion of crypto? it means that the expansion as well on its way and bitcoin is truly behaving as a real borderless currency. and this is the 1st international expansion of pay pounds, crypto service, beyond the u. s. and another hint at the wider adoption of the entire industry. not
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to mention this also shows what a profitable division crypto is for paypal. very similar to robin hood for it to be expanding so quickly to try to establish market share in the u. k. pay powell rival that of establish crypto current. the exchanges such as coin based global as well as resolute. so making such a heavy investment into the crypto industry, really it by the giant. it really is giving this conviction that crypt those will play in the future of global finance and commerce is not just the fad as so many of the haters continue to preach and been finally here. a chinese high court has now and now it's that crypto currency is not protected by law. after reviewing a case involving virtual token, how will this impact bitcoin and other digital currencies, which have been outlawed in china? yeah, i mean it's certainly not good news, but i don't know that if it's anything different than what we already knew, look, china is a country where is the high court is not going to say anything different than what the national government says. right? so the government says, big coins not allow the high correspond to come and challenge that and say it is
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allowed there say no, you don't have a right to it essentially. meaning you don't have a right to anything that the, the central government tells a you don't have a right to. so it's not really surprising. that's the case. does it change anything for china? no, absolutely not. a china, as we've talked about, is simply clearing the deck for its own national central bank back digital currency . and that's what it's doing right now. that's not going to change at all, but the positive of it, if there is a positive here, is that the people in china who are still believers in bitcoin are finding ways to access that they're still going to be able to access it. and any central bank back digital currency is only going to encourage more people to get into what, not fewer, but definitely with the decentralized nature of crypto currencies. in general, it's hard to imagine how you can really outlaw them. boom, but it's been swan and the i think you both are breaking it down. thank you. thank you. time. now for a quick break, the only come back chinese markets. i've seen
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a rollercoaster as a nation has ramped up its efforts to crash down on big sack. well, there's just the latest developments net and as we go to break, here are the numbers at the close. me. ah
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ah ah, i use let's take a trip down memory lane through the history books talking about geo politics as it was 100 years ago, 150 years ago from some big brain sewer to looking at the big map and how that's relevant today. me make notes of borders and
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a number please and you emerge. we don't have authority, we don't actually the whole world leads to take action and be ready. people are judge, you know, crisis we can do better, we should be better. everyone is contributing each of their own way, but we also know that this crisis will not go on forever. the challenge is paid for the response has been massive. so many good people are helping us. it makes us feel very proud that we are together in the
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welcome back. the us food and drug administration has given its official stamp of approval to the cobit 19 vaccine created by pfizer. and by on tech. this makes it the 1st one to surpass the emergency use authorization grant, which has been used for the over 200000000 doses of the shots since december. the, the 8 noted that this process to grant the final approval has been truly unprecedented. all around working around the clock, f d, a staff were able to complete the evaluation of this biologics license application and just over 3 months. this is an unprecedented timeline, given the volume of review in the meticulous manner in which it was done. but we want to underscore that our efforts to move as quickly as possible have in no way sacrificed scientific standards for the integrity of our process. approving the vaccine as rapidly as possible, while ensuring
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a rigorous and thorough review has been our top priority. while the full approval for pfizer vaccine has been given individual 16 years and older, the emergency youth grants still remains in place for those 12 to 15 years old. and those who qualify for a 3rd booster shot and china continued, it's moved to tighten regulation of domestic firms on friday, passing the personal information protection law. now this new law, which goes into effect in november will make it harder and more expensive for chinese tech companies. to access and use consumer information, a significant portion of the industry. now, while the full tax that the law has not been released, it has been reported that it will give users the ability to turn off targeted advertising as well as making tech companies get individual consent to obtain sensitive information. for those users. the p. p l comes as china has ramped up scrutiny on tech giant in that it has fostered in recent years. the passage follows
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new cybersecurity and data security laws. the increase in regulation has seemingly spooked investors as the shanghai composite. it was more than 5 percent since february hiv, while the hung song of hong kong briefly entered bear market territory before rebounding slightly on monday. for more on all of this, let's bring in john. well, she's the dean of the miami, herbert business school. always a pleasure to have you on the clouds. now, this tri fact of laws aimed at chinese tech firms has gotten a lot of attention recently amid the increase in regulation. what is the chinese government hoping to accomplish with all this? i think there are a 3 objectives. brent from a governmental point of view, one is to send a signal to the private enterprise sector in china that they are not out of reach of the government. and that as they become more and more wealthy, as these private enterprises become more and more high valued,
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the government is going to look at this from a distribution of wealth point of view. so that that's point number one. point number 2 relates to data privacy and data protection ostensibly to protect the individual consumer. but i think when we're talking about china, what we have to understand is that the, the communist party of china is going to ensure that it is the data manager of china. and no private enterprise is going to be permitted to have a bigger and better database than the, the party and the government. and then thirdly, i think there's a little bit of social engineering mixed in with this in the sense that some of the, some of the regulations beyond those, you mentioned some of the regulations recently have curtailed, online gaming and other activity online. that might be
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considered to be socially dysfunctional. so those are probably the 3 principal met, motivations behind this package of legislation. now as the regulatory environment continue, the heat up, we're seeing that the 10 largest u. s. listed chinese stocks was more than $150000000000.00 and market value just last week. is there any concern that this could do harm to the ever growing chinese economy and the massive companies that has fostered? i think the, the government of china has read the us economic situation as indicating the us as in a weak spot at the moment. and therefore, they may be willing to sacrifice a little bit of upside growth in the chinese economy in order to
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take time out to rein in the eval wealthy private sector. but long term, i think that, you know, those stocks and the companies in question are, in many cases, extremely good bets. and particularly given the size of the china market, it would be probably an advisable for advanced investors and chinese stocks to run for the exit on the basis of last week's natural response to any increase in government regulation. chinese companies must deal with government regulators on a daily basis as part of their lives as a company. and as a result of that, i think there's likely to be a rebound relatively soon. and the course you actually kind of alluded to this
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a maybe month or month and a half ago when we had you in the program. but how much of all of this is about cementing president shooting pains, legacy as the leader that shape the future of china's economy? i think that's a very important point brand. there are many comparisons that are being made by the chinese commentators and chinese people between don shall ping and president. she and i think president, she definitely wants to be someone who's remembered as an individual who both advance the prosperity of china. but at the same time cemented the political power of the communist party. and remember that significantly fewer than 10 percent of the chinese people are actually members of the party. so the maintenance of the supremacy of the,
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the party is extremely important given that its membership is a, is a minority group. and it's interesting to keep an eye on that to, along with the 1st point that you made about that you know, narrowing the wealth gap in the country. if he's able to bolster business shape the future of the economy. and do that all the same time that that seems like a pretty good resume for any president, john quotes dean at the my american business school. thank you so much. thank you. and finally, richard branson's virgin orbit is planning to go public via a spec merger. later this year. the company and now it's monday. orbit is a spin off of virgin galactic which actually focuses on watching satellites into orbit using a modified boeing $747.00 during an air launch as they call it, the aircraft carrier, the launcher one rockets to roughly 45000 feet and releases them before they take off into space, the company had completed 2 successful lodges this year alone. and as part of this
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back lifting virgin orbit will merge with next gen acquisition core. and list on the nasdaq, with an estimated valuation of over $3200000000.00. now the technology behind this is absolutely fascinating, but i'm curious to see if it gets as much attention as richard brandon himself going up in the space. i'm telling you if i see a 737 or 747, just dropping. what looks like missiles to go into space, that's very scary. for the time you can catch boom bus on demand on portable tv or see next me americans love buying homes. ah, this was a funded mental part of how our political leadership and our country,
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large understood the bargain. you get a whole and then you know, rebel right, as the things you don't revolt if you have a stake in the system. be really interesting to dial back and think about the longer, deeper history of what housings meant in the united states. not just that old question of the american dream, but the bigger question of who the dream has been for this is your media a reflection of reality in a world transformed what will make you feel safer? type relation for community you going the right way?
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where are you being somewhere which direction? what is truth? what is in a world corrupted, you need to defend the join us in the depths. will remain in the shallows ah military mission again stay, we'll conclude. on august 31st. one santa who did a good to us all the quote unquote, a young girl who will be on the roof for me and you got to be subtle. company the cut the cut over the whatever the more but i bet i'm going to get things alicia mix very good. this was the right weapon.
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local. no, no, no, but i keep somebody go out to reveal the, the signing of the us to all about agreement. and i've laid the groundwork for the road ahead toward a lasting peace in afghan stamps. and i know we still need that mcdonald and he the ah,
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in the, in the wake of the taliban shock take over. if i've got to stand the white house says it didn't evacuate people earlier to avoid a complete crisis of confidence in the afghan government. but admit that it's related response failed to stop that from happening anyway. now the un food agency wants of shortages in afghanistan within weeks. the organizations 18 for the country tells us that the looming humanitarian catastrophe needs are enormous new to population. and most important thing right now, eastern wide so that we can provide partial assistant people, gartner stuff. i was also former,
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i've got interpreters who worked with nato forces during the 20 year campaign.

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