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tv   Boom Bust  RT  September 21, 2021 11:30pm-12:01am EDT

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ah, ah ah right now there are 2000000000 people who are overweight or obese. it's profitable to sell food that is fatty and sugary and healthy and addicted. not at the individual level. it's not individual willpower. and if we go on believing that will never change that obesity epidemic, that industry has been influencing very deeply. the medical and scientific establishment, ah, what's driving the vehicle, its corporate, me. ah.
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ah, me a room bus the one visit show you can't afford to mess. i'm racial blood bridge, born in washington coming up, the energy prices in europe are continue to serve just cold weather approaches and fears of unchecked inflation. hang over the continent straight ahead. we examine the factors driving the like and how government planned to respond and press waves of ransomware attack could threaten the food supply in the united states. we bring you the latest on the situation. how president biden is planning to
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a cyber attack. then the chinese ever grand saga continues to leave global markets on edge. well the, what's next for markets and whether this could be the end of the season or record high. we have a lot to cover here. so let's get started. the the really the program with the latest on the energy crisis in europe where gas futures have risen by 250 percent since the beginning of this year with winter fast approaching the region is experiencing the perfect storm as it runs short on supply while demand comes roaring back as a result, the european union's energy ministers are expected to meet this week to discuss how they plan to tackle the skyrocketing gas prices. amid concerned the continued trend will jeopardize europe's recovery,
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while also undermining plans for costly reforms in the name of the environment. while there's talk of the you passing an aid package for the region, individual countries are already taking action. spain and now it's last week. it will introduce new tax breaks for consumers and redirect energy companies, profits and italy is expected to follow rome and introducing a multi $1000000000.00 aid package aimed at providing release to consumers. but how well the latest stimulus measures impact inflation in europe, which had a 10 year high last month. and how could the long awaited nordstrom to pipeline play a role once it is finally certified? well, joining us now, the jobs are too much co host, christy. i and octavio marines, the ceo of over miss l. l. c. christie. let's start with you here. so this crisis feels like it has been creeping up quietly until now. how did we get to this point? well, it's been a perfect storm brewing in the background for some time. now. european gas prices
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had actually accelerated since the start of april, after an unseemly cold winter. so as a result, your gas storage, hardy dipped below pre pandemic 5 year averages. so they struggle to bring gas supply that are necessary for the winter back to where they should be. and then countries like the u. k, they're especially vulnerable because the u. k. they rely heavily on gas for home heating. but despite the obvious reliance on the fossil fuel for electricity, the u. k. has some of the lowest amounts of gas storage capability in europe, leaving the market completely exposed to supply crash. so less than one percent of your stored gas is actually held by the u. k, so now the deficit is making the market nervous. we put winter again. and then finally the catalysts to just tip everything could be china. china's demand for gas has been riding steadily up 8.4 percent again this year. so to satisfy the record demand for gas, china's import the gas work, i could search almost 20 percent,
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meaning that you have fewer shipment traveling to europe from guitar. so as shipments of gas have turn from europe toward china, flows of pipeline gas 2 year from russia has failed to make up that shortfall. russia has been slow to deliver the pipe natural gas to the region, which raises a lot of questions on whether this may be a deliberate move to bolster in case we're starting close the the noise stream to pipeline. and now octavio, there's a lot of concern that the soaring energy prices we're seeing across europe will make inflation even worse now, while proposed aid packages may actually help consumers pay the higher prices. how do they stand impact inflation? well, i think just a mathematical certainty, the high energy price of 9 gas prices have lead to high inflation numbers. and you can see that very, very clearly in the face numbers for all that came out a few weeks. so inflation, you're paying for the set. now if you take energy out of that, you basically hop the european inflation rate c good $1.00. so that mean energy
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prices in particular, natural gas, which was about 15, but just in august, a driving inflation more than anything else in europe. so prices are the price of food and vehicles and men hold something from that. so subdued rate. energy is when you're striving some natural gas. so it's a councilman and place level in the european continent. that's quite extraordinary . and i probably, you know, a lot of times when we talk about cor inflation versus overall in place, and we take those energy and food prices out. and that's because energy obviously fluctuate as demand fluctuate due to different season. but in this situation, when we're actually looking at kind of a shortage, should that be taken more into account in inflation when you're trying to kinda decide policy based on that? well, i think policymakers like to take any price is going to make it look like inflation . numbers are not increasing as quickly as he said, yes, once you take out any prices tend to increase out inflation rate. they accept doing
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that. but no, i think you should remove them or discounts because the shortage isn't it. it might be trans event to they might come back from managing. but i think we are going to see more placement in europe and in the us to, for that matter and things that it's not going to be absent even across different products and services. but we will see increase inflation as a result, all the money, the central bank pumpkins, the economist, and that i think is unavoidable as well. and now chris, you actually mentioned the nord stream to pipeline and how this whole thing could be a catalyst. we're trying to get that certified quicker and get that gas actually flowing . how big of an impact will that have? i think he'll eventually have a really big impact of the route jointly with the existing nordstrom pipeline. they will actually double annual export capacity to about 110000000000 cubic meters. so that's around half of russia's total export to europe a year. but by itself more, it's going to have the capacity to need about one 3rd of the use import requirements. so it will definitely have
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a big impact once it's up and running. but currently, russian and german regulators are currently in a debate as to whether new regulation supply that were put in place after the pipeline was given its final investment decisions. but i looked today, and i don't think that the start of a flow on the really reduce prices and having effect this coming winter. it looks like that you is going to be stuck and locked to do some pretty high prices throughout the winter, particularly once we hit january, february and the reserves get increasingly depleted. now octavio, we know that norway has said that it would increase its exports at the same time. we're looking forward to the north stream to pipeline. but how does that pipeline play a role in this shortage and in it possibly continuing into the winter? well, i think central wilson grew pipeline. bear in mind, this is not really going to bring you gas production online. and the capacity is being cool. and what it's really about is avoiding efficacy through ukraine,
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from russia, ukraine, and then into western europe. and the simple reason for that is ukraine, charged as a huge amount of taxes, tolls the lack of pockets up to be in dollars a year into playing rational gas territory. so the not seem to pipeline is more about avoiding that than we drink classes. so i'm not convinced notion to actually make that much difference. we're just going to see the gas going to ukraine now go to the baltic sea and that differences with a small level. so i don't think will help much. i think gas prices continue to go up and inflation follow it. not to distract us, but certainly spike up people for september. and of course we've got about 30 seconds left for all of this is happening as we've been talking about this massive supply chain shortage is happening as well. how big of a role do you think that's playing in this ongoing energy crisis that we're seeing in europe? right now, i think everything boil down supply chain coal, it looks pretty much the catalyst for this entire thing, whether we're talking about supply chain problems and issues in the energy cycle or
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supply chain issues in the manufacturing and industrial cycle. and even though the tech cycle with all the semi conductor chips, i think that right now with coven, the entire global industry fees, how fragile and delicate the entire global supply chain is. and right now, that's going to lead to a lot of countries going toward protectionism. isolation in order to bolster their own individual supply chain so that if some other global investor strikes, if there is some sort of other pandemic or something like a cobit, that they will actually be prepared and not have to be reliant on external importers and ex borders certainly a lot of daycare as winter is right around the corner boom bus, christy i and octavia mirandi of open this. i'll see. thank you so much. thank you . and another massive ranch where attack has hit and i will grain co op and reportedly could cause major disruptions in the public supply of grain, pork and chicken. if a company cannot bring it systems back on line,
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the hacking group black matter is demanding $5900000.00 to provide a decrypt or according to screenshots shared online by threat intel analysts. ransomware attacks have become increasingly common in recent years. and us president joe biden even mentioned getting a handle on them. in his address to the un general assembly tuesday, we're hardening our critical infrastructure again. cyber attacks disrupting ransomware networks. the working to establish claire rolls of the road for all nations. as it relates to cyberspace, were reserved the right to respond decisively to cyber attacks that threatened our people, our allies are interested. so how is this latest ransomware attack going to play out? well, joining us now to discuss is blue bus co host an investigative journalist, ben swan, ben. so the hacking group, black matter says they do not attack critical infrastructure,
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but new cooperative inc says that is exactly what has happened. so what do we know? yep. yeah, apparently there's even an online back and forth between black matter and a representative of the company arguing about whether or not the company is actually critical infrastructure. it's a fairly interesting story because this company, you know, essentially what they're saying is there will be huge shortfalls. of chicken and port supplies across the country as a result of this because they provide infrastructure, they say, and support companies that feed the country. and so you're actually harming consumers when you do that. but what black matter says is no, you're not, you're a company that essentially the soil mapping and you work with farming institutions by selling them a product, but has nothing to do with supply chain and your last segment. you guys just talked about supply chain, these guys are not part of the supply chain, but they say that they are. and here's what's really interesting because we saw this happen with colonial pipeline. the same thing is happening again, which is that the company here is this,
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this farming company that was hacked is essentially they are shutting down operations hackers. they're not shutting down their operations. it appears from everything that i've, i've seen about this so far today. they are the ones who have decided to shut down their infrastructure, shut down their, their ability to work with farmers so that, you know, meet product is moving across the country. they shut that down and they said, now we've got it under control. we've cut off access to our systems, but, but it's not actually the hackers being the ones who are cutting off that access. now do we know at all why they would cut off that access? i mean, it's interesting cuz i know we've talked a lot about colonial pipeline in the way that they did it and they were kind of out of what they did is that kind of what we're hearing in this case as well. yeah, it's very similar. i honestly believe that the reason the company is doing this is because they're saying you're not going to get a ransom from us and we can bring the feds in. so the feds will get involved in this because of the fact that again, this is a critical infrastructure. i'm going to read to you guys just very quickly what specifically the hackers took hold of. ok,
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this is important. new cooperative data was stolen, about a 1000 gigabytes worth of files were stolen, invoices and research and development documents. so that's all proprietary stuff. yes. part of what they build their business on. it's invoices. sure that their billing department and then source code for its soil mapping technology. that's what was stolen was what we're going to hear. i guarantee you over the next 48 to 72 hours. we're going to hear so many people the media talk about how hackers came in and locked down this system, which is not able to deliver food until they're going to be food shortages and meet shortages across the country. that's what we're going to hear. that is not what these hackers did. i'm not saying it's okay what they did, but it's not what they did. the fact is they took invoices, files and proprietary information, and the company itself knew cooperative new cooperative is the one that is shutting down the pipeline. the supply chain. so and now saying there will be there words,
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very, very long lines and a public disruption to the grain pork and chicken supply chain. but that's because of new cooperative, not the hackers and ban. finally, we have about 30 seconds left on this, but the lighted administration, which as you heard, he still uses the word cyberspace. just saying that out loud video has new rules. the require reporting, these kinds of attacks immediately do we know of federal agencies are now involved . federal agencies are involved, they are not commenting f. b, i emphasize are not common thing, but the new cooperative says they have contacted them and they've made them aware of this. and again, this goes back to the infrastructure. guys, watch the story. it's going to spin over the next couple of days by colonial pipeline did. and then the end, this is what really bothers me about. the stories is there is no repercussion for the executives of the huge companies that are shutting down supply chains to the public. they pass it all onto the hackers, the hackers responsible because they took our invoices, therefore they bear the brunt of everything. i don't think that's right. boom bus. been swamp. thank you for keeping an eye on the story we will follow up on it.
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thank. now out of the story of a lawsuit that hasn't received much coverage at all lately. well, that isn't hold twitter confirmed it would be paying nearly $810000000.00 to settle the claims that it misled investors. 7 years ago, the class action lawsuit alleges that twitter begin providing unrealistic growth projections to us investors back in november 2014. they say twitter executives took part in a shell game in order to conceal the true state of the key metrics from then until former seo richard castillo left the company in 2015. while twitter isn't admitting any wrong doing here, it is paying up to settle the claims. but if you're wondering how much of a toll $800000000.00 will take on the company, well, twitter plans to pay the fee with its cash on hand by the end of this year. twitter as reported more than $4000000000.00 in cash, and $4500000000.00 and short term investment assets. notably twitters reported
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revenue during the 2nd quarter of this year, was nearly $1200000000.00 up to 74 percent from the year before. well, and you have to remember rachel, that, you know, when social media was really hitting its stride, and that would have been about a decade ago. and this is a little bit after that. but the fact was, we didn't know how facebook, how twitter was actually making buddy. that was the big argument when they were getting ready to go public and people would look at him and go, how was this company even profitable? oh, absolutely. and you can look back at the fact that, you know, yes, this was 7 years ago, but it was almost what is more frustrating is just how much we don't know about the story. i mean, i want to know why a $100000000.00 rather, that is a lot of money for twitter to pay up. and yet it seems like a lot of the details there will be kept secret and just like facebook, they have fine money ready to go. it will never even affect them and time now for a quick break. but when we come back, the ever gram threat continue to loom over global market, as the chinese lending giant faces uncertain waters right ahead. we'll discuss how
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equities fared on tuesday. and that's going to break. here are the numbers at the close. the ah, is your media a reflection of reality? the in the world transformed what will make you feel safer? types, elation. community. are you getting the right way or are you being that somewhere? direct? what is truth? what is in the world corrupted. you need to defend
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the so join us in the depths will remain in the shallows. ah the, i don't know. i mean there's some steps in there were rescuing the food that they were scabbing or, or where were rescuing resources that are still good. this is best by march 21st, which is in 2 days. all of these potatoes, power panels, onions, all of these came from waste round sources. this is great for me because i'm always looking for a way to give things away. dr. because the tax laws, you know, definitely do benefit the wealthier people in our society. so that makes sense for them to throw it out right off rather than give it to somebody who could use it.
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because then that person is not going to buy me when i would show the wrong one. i just don't i mean, yesterday out the thing becomes the after an engagement equals the trail. when so many fund themselves will depart and we choose to look for common ground in the welcome bag. after monday sell off, which so one of the worst days for us markets in recent months, global equities are attempting to rebound while nothing has changed. and the liquidity crisis for chinese property developer ever grand group stocks in hong
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kong saw gaines of about a half a percent on tuesday after dropping more than 3 percent monday. meanwhile, western markets are still keeping an eye on this month's federal reserve policy meeting, which kicked off tuesday, a to europe. the main british, french and german indices, each gained at least one percent. and here in the us, after futures pointed to regaining a good portion of those losses, markets ended up just above flat for the day, with the worry of it ever grand contagion, and monetary policy and focus. where did things go from here? we'll discuss, let's bring it to the metro formerly research and peter ship chief economist and global strategies at euro pacific capital. great to have both the view on to talk about these important issues. tobin i want to start with you. what happened to markets over the last few days? are you seeing a focus on every grant and the fed, or is there something else there?
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well, i think we talked about this for about a month. there's probably 20 reasons why the us stock market survey point where it needed to correct or have a sell off, get the we can write that the people who just bought on thursday can't stand to be down 5 percent on friday. so they just sell. so we're going through that process anyway, every grant, just put a whole nother level of fear and, and, and frankly, i know we're going to talk about that later. but the ever grand fear is not what try and that's, it was just an excuse. i run money, i was a mutual fund guy for a long time. when you want to start taking in profit, you use whatever excuse you have to say, i'm going to take profits. ok, boss. yeah, because i just want to build our cash and i want to be able to buy some stuff when the thing gets done and that was really what monday and tuesday was here, was that that professional money managers were probably holding tight, but the new money guys were saying, okay, i can't stand a pain and that's natural, that's how markets work. for us. we have a list of $25.00 stocks we'd love to buy. we want him to get a little cheaper,
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but every grant is his sideshow. and i'm sure peter will tell you why. all right here, we'll on that. every situation we're hearing a lot about the contagion effect taking a toll on the overall economy. while some see this is women, 2 point oh the start of a real estate collapse in china. what's your take there? well firstly, i have to realize that the entire global financial market right now is one gigantic acid bubble. it's been inflated by coordinated easy money policies throughout the world. and so that's why everybody is on edge for any sign of a in that might prick that bubble. and i think that's why the markets had reacted the way they did the ever grant situation. you know, remembering what happened with leman, but if you actually remember what happened, they let leman fail, which was probably the correct decision that we made. but then after lehman failed, that's when they rolled out the tar program. that's when the fed, you know,
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started with quantitative easing. and so i think that the same thing would happen again. this time in the central banks haven't learned their lesson to the extent that anybody thought that this was a lehman situation. they would diffuse it beforehand because everybody wishes they could have a do over on the way they handle lehman the 1st time. so i think they are going to keep the monetary spigots open. i mean, this is another excuse as if the fed needed one not to move forward with the taper . i don't think they ever actually planned on doing that anyway. there's certainly never going to raise rates until there's a currency crisis that forces them to do it. so i think this is going to blow over, and i think you're going to see the markets continuing to rise due to the irrational, reckless monetary policies that have been driving the bubble all over guys. all right, well i remember ever ever grand. so we just had a bailout in china a month ago, you're wrong, which runs about $5600000000000.00 where the bad debt they got from the ninety's
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into 2000 for quite out loud. but, but remember, you know, i've been to china a lot when you go into town like sions, and they call it the crane city because you see 200 cranes building 5060 story real estate projects that chinese, by when chinese people buy stuff, however they buy it for cash are very little debt construct. strangely enough, they said like 10 percent of their income, those people must be insane. right? so we're not so much worried there. what we were to worry is, is that look at the bottom holders in and you know, this new debacle. they're going to get wiped out $0.70 out a dollar for sure. but, but it's the people who, it's the 26 percent of the g d. p in china, that's related to real estate, which is just an unfathomable number that they're going to have to protect that. and what that will do is they'll cut up all these bad parts. and given the other big developers and give those developers little paddled back at some cash wider to their accounts. but it is, it is not too big to fail,
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but it is too big an industry to fail. and that's what's trying to get to do in trying to do it the 1000000 1st time i ever support peter, because they actually the people save money, the money in the bank, they own. and so, you know, it's a different society guys. well, go ahead. i remember look the, the real estate stock going away, i mean, some of the people who loan money, gallup, it might lose their money card. the real estate itself is still there. and those are assets for the people that have and the losses will be borne by those who made the loans of the government does the right thing about it. but everybody wants to focus on how unstable potentially the chinese economy may be. because it's 25 percent or so whatever it is, our real estate. well, the us economy is 70 percent consumer spending. what could be more unstable than that guess the consumers are spending out of debt, not out of income. and so our tire economy is based on a bunch of bank, rob consumers being able to continue to borrow more money to buy stuff. they can't
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afford money, they don't have and so much of what we're buying is imported. and a lot of it is made in china, so it's the chinese economy that's viable because they're producing all this stop. it's the american economy, that's not because we depend on what china produces for our consumption. so i would be a lot more. we're having a flashback to but it doesn't have the same warning because the same problem tobin fight over 30 seconds. all right, right. this is the, the key issue is that their debt is in r a, b and one their own debt. it's not in dollars, 900000000000 dollars. if it was an $800.00 trillion dollars, we'd be in big, big trouble. and peter for once and let's say 15 years could be right. not so. so, you know, let's, let's not get to twisted here, so that the forward rate that at euro pacific capital peter ship didn't need us
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very much of the 2nd. thank you so much. as i said, for this, you could catch boom, but the bad of the portable tv app available on smartphones and tablets through google play and the apple app store. by searching portable tv, portable tv can also be downloaded on samsung smart tv, then roku devices, or simply check it out portable dot tv. well see you next. me i the moon. the one thing we don't talk about america is class or other countries from class war like great britain is
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a prime example. but in america typically, you know, to take step now. yeah. who want to make sure, you know, board is under the blind number t's as emerge. we don't have authority, we don't actually the whole world needs to take action and be ready. people who judge governors crisis and we can do better. we should be better. everyone is contributing each in 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 it feel very proud that we need together
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in the ah, you as president joe bought and sons already and called to america, eyes and talks peace like you and i made an unprecedented dispute with nato, led from side accusations of a cold woman from china and shoes that a petrol station cassia in germany after being off to where martha walked, horror and debasing the country's media. frustration grows cobra restriction and poland refuses to comply with any green order. the stopper crucial coal mining facility. meanwhile, brussels continues it.


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