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tv   Boom Bust  RT  October 1, 2021 5:30am-6:00am EDT

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ah ah think is boom bust when business or you can't afford to miss. i'm rachel blevins and a bridge born washington coming up the time is ever grant has missed yet another bond payment stoking fears over its debt. liability straight ahead. we take you back to china. shaky property sector,
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plus the lease from facebook show the company had described children as quote and untapped source of wealth. we'll discuss the latest controversy. then civil semiconductor shortage continues to impact the auto sector as price is stored while buyer backed off this month over you, the latest we have is half. so today, fullest dive right in. we leave the program with the latest on the ever grand saga, as the chinese company misses its offshore bon payment deadline for the 2nd week in a row falling an 83500000 dollar payment last week. ever grand owed a $47500000.00 payment on thursday. now, in addition to being one of the largest property developers ever grant is also one of the most indebted companies in the world. owing more than $305000000000.00, it's attempts to restructure its debt came as the chinese government was taking measures to stop housing prices from skyrocketing creating the perfect storm for the embattled group. meanwhile,
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factories across china have been forced to pull back on production as they were hit with unprecedented blackouts in recent weeks. the latest purchasing managers index well below 52, a rating of 49.6 in september, confirming that china's factory output contracts for the 1st time since february 2020. so what does this mean for china moving forward and how does it stand to impact the rest of the world? but joining us out with that i've been less go. christy i, and octavia moran z u. c. o. open miss o l. c. kristi, let's start with you here. now, of course there have been a lot of questions about when and how the chinese government should be stepping in . why do you think we haven't seen more from beijing after another missed payment here? well i think beijing does a want to create the safety net mentality that. d we have here in the states that there's such a thing as too big to fail and that the government will always step in to cushion the fall. i mean, does the mentality of the market here in the us,
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we just keep on floating up and up thinking that there's always going to be easy, money, more stimulus policies, government bail out of fairly industries like we've seen previously in banking. and then the airlines with coven and then hotels, and the leisure sector. but beijing is trying to not create that dependence and expectation. thus, it's willing to have a hard landing here in order to teach a lesson to the market, not to be widely speculative thinking that there will be absolutely no repercussions, because it's not like beijing is doing absolutely nothing. is doing just enough to contain the fallout. but it will not be doing a full on bail out when we 1st started talking about ever grants. default the 1st headline to appear were too big to fail. that was the markets 1st instinct calling something too big to fail and just expecting a bailout. basically, you're calling these venture is completely riskless. if you can't ever fail, so no, not the mentality. now, the mentality has completely changed, and analysts do not expect to bail out. however,
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beijing is pressuring government affiliated companies and developers to buy at the giant's assets and all the proceeds will be used to pay off their debts. however, as it gets repaid and restructured, investors will definitely be taking quite a big haircut on their money. it's very interesting on that point, christy, because you hear a lot of analysts say, oh yeah, we expect china to step in and do something about this. but again, as rachel mentioned in the beginning there, the chinese government actually had a hand in these measures. curbing skyrocketing housing prices, so octavio that brings me to you. there is also an argument that because beijing has such a tight grip on the markets, investors have lost a healthy fear that comes with getting into the market there. what do you make of what we've seen so far with ever grant? well, i think the healthy fair and the chinese market is very present. and anyone who looked at where the stock not went in china off 2015 basically lost a ton of money. so if you're lucky enough to buy chinese talks in 2015 or 16, you took a boss. and that's not the case in the west,
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in the west. we're basically seeing regular prices week to week, day off today, almost a new thing to slow down a bit in september so far. but i think the healthy field that you describe exists very much in chinese equities markets and doesn't exist in west markets and doesn't exist in japanese market. so, i think perhaps exactly the opposite is true, the chinese up to suit in the past. that doesn't bail out investors, nixon marcus, nor the housing markets. i don't know. i don't, i will last. i mean, the head of the governor, the people's bank of changed recently wrote an article you guy here in article, criticizing western central banks for their asset purchase. the same china is not going to follow that example. so we'll see how long they stated that they hadn't was done that in the past. in the past the p o b p p s, he's been very active in markets. so we'll see how that will remains convenient for them to do at the time being that holding back. and now, christie from the thousands who are relying on ever grand for business and unfulfilled contracted those in the manufacturing sector. are these latest crackdowns affecting them and is the assumption that it may be uncomfortable for now? but eventually things will work out in the months to come. all construction manufacturing
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as a whole is slowing down. manufacturing has contracted for the 1st time since coven 19. and now they're battling high commodities, prices, power crunches, coven, 19 outbreaks, and parts and material shortages. so construction in the ever grand properties, they have resumed on nearly 20 development areas. worker's attention had accelerated since ever grand needs to either repay the homebuyers or deliver the homes. but i think here, even if let's just say the people look to the government to make things better. the question is how there is a power shortage which stunned from a coal shortage, which then causes upstream material shortages like steel and aluminum, which then affects all the downstream manufacturing. and all of this compounds into rising prices for the uses of these materials. and then the final consumer of the finished product. so the government can't just magically make more power. they can certainly loosen regulations on emissions and allow coal to come back to the market . but that's going to take a while and that's not
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a long term solution. so right now it's uncertain how long the situation is going to last for. yeah, there really is a lot of play there now. octavio when it comes to the latest power cuts in china, how do they stand the impact of global supply overall? i know we've been talking a lot about the supply shortages a lot about winter now, fast approaching, how do you see all of that flying out? well, it's going into the world's supply. very bad in china is a very major in put in terms of manufacturing globally and books that are coming to the christmas season. the winter season, where energy demands gonna go up even higher. i think this kind of power shortage will remain as long as beijing decides to regulate electricity prices. the real problem in china a is of beijing, has regulated interest. prices has not allowed us to float in as kept as would you tightly kept. and so there's a lot of appraisal co, how, how prompts in china basically can't afford to coal, to interested and shut down the product as a result. because it was going to cost more to buy the cold,
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and they can get in return for the electricity. so as long as power prices remain, captain china, do, they will have this, congress hope shortages as soon as they lift those caps and allow the price of electricity float freely. these kind of suitable to will disappear as it always do it all markets. because marcus, who was clear eventually and are probably what you're saying, i mean, i know we've talked about this a lot, but they're also saying, you know, as europe is also facing energy issues as well, that we have a global power current. i have about 30 seconds to give you the final word. there was to, we've seen natural gas prices in york, go through the roof only in europe. so that's not been the case as much in north america with asia, the gas price very much, much more mutually. that's a do was sort of the local demand supply in europe. nothing that will work itself out. the tick is more stream to the pipeline comes on line that should work itself out eventually. but yeah, we're seeing basically power conscious shortages all over this place. i think we're re seeing is sort of all this call to say to reason that was in pumped in the market leading to much, much higher price is right across the board for everything. and people just
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starting to adjust to that and they're not willing yet to pay that much higher prices for the input. so trying to hold back, i said, i'm not willing to pay 20 percent more 30 percent more from stuff i used to get much cheaper in the part of that's contacted change. you're gonna have to buy the bullet. basically in the accept the inflation is just gonna be part of the landscape of time to come. yeah, really does in that way, especially after this truly unprecedented year and a half been thus chrissy i and octavia mirandi of openness. i'll see. thank you both for your insight on this one. thank you. and a mid recent scrutiny over how facebook's products affect the young people, the social media giants, global head of safety was grilled by us senators at a hearing thursday. facebook knows they know it, children struggle with addiction on instagram, and they didn't want to admit it. this seems to be a recurring theme with this company. do everything and anything to mould the world
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into your own image. for your own profit without any regard for any harm that is going to be done because your focus is on your pocket busch. let's be clear. the problem isn't that instagram hasn't developed a safe product for kids. the product, the problem is instagram itself. and meanwhile, there's new information surrounding facebook strategies to certain strategies, routing to affect and monetize children between the ages of 10 and 12 years old. internal documents now show that facebook views, children as an untapped source of wealth, and even thought to turn, play days into growth drivers. joining us now to break down the semi bizarre story as boom, but co host an investigative journalist, ben swan. i bet i say it's bizarre and were surprised by it. but really,
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we almost aren't surprised. we're kind of surprised that they would put it into writing really more than anything. because earlier this week we talked about instagram, kids project being put on, hold this research part of that project. no, this is actually separate research from that. so the instagram part of it was specific to instagram and the effect it was having on young people. but in this case, it's actually facebook's internal documents related to facebook as a property itself. how do you get kids to begin using facebook? because as you guys know, only old people use faith from right and even the old people who use facebook or facet declining. in fact, you know, the internal document show by the year 2023. they're expecting to lose about 45 percent of younger users on facebook. so as an enormous number of users who are going away. and so what this was really about is facebook saying, how do we create a system that targets kids lures lores as it sounds like a creepy word. but a lot of the language they use was actually kind of creepy lores them in my word, not theirs. and then keeps them as kind of customers for life, because it sees them as an untapped financial market or an untapped financial
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resource that they can access that right now they're failing to access. and i love out one of the documents actually says that a facebook owes it to itself to do this and not ignore this market though. do they really? yeah, and it is interesting. we have facebook used to be the thing that had, you know, billions and billions of people on it. and now i know my little sister is a teenager, and she has no interest in getting on facebook because she sees it as something is for the older generation. now of course, a lot of this focus seems to surround the success that other apps like tick tock of hadn't attracting younger users while facebook and shedding younger users at a rapid rate. is that a fair critique? oh, i think it's, i think it's a kind critique right to say that they're only shedding those older users. and by the way, rachel, have to say, i'm sure is not just your sister who does not used facebook. right. and again, this is for older people, but what, what was interesting about the way the documentation was laid out is facebook was trying to now position the, the original traditional facebook as adult teeth as part of their adopting process
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. so when you're really young and you're on these kids apps that are targeting children and, and play dates among kids, which again, super bizarre language. right. and. 4 then they say that over time they want to see them transition to instagram and then adults into facebook. and so it's really just setting up a pipeline to say, how do we know harvest data for life the entire time and, and some of these documents by the way, are broken down from kids from 0 to 5. and then 62101212, as tweens 12 to 15. so they have it all broken down at demographically, of who they're trying to target. and they're literally wanting data on you and to end to do this from cradle to grave, quite literally. and i think that alone is, is a bizarre way that facebook looks at the world and been there. they're trying to spin these reports and even say that be played it language. it used was an insensitive way to pose a serious question and doesn't reflect its approach to actually building the app.
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how did the lawmakers respond today? and i have about 45 seconds for you been. yeah, well as you heard, i mean they're, they're not buying that. and by the way, for facebook to say this is insensitive language to, to pose a serious question. what was the serious question? serious question they say is that they have some kind of responsibility to the world to create a product for kids. know you to not, especially when remember this and i and i always have to remind people of this. i know our time is short. you are the product on facebook. facebook is not selling advertising facebook. their primary job is not to influence elections. their primary job is not to, to shape the world's thoughts. their primary product product is you as a human being and to sell you to advertisers. so the idea that they want to come further expand that, not just to adults, not just a teenagers, but to sell those children's data as part of their kind of plan for world domination. i've, it's dystopian on every level and, and congress should get involved. been swan, i don't know about you, but i'm old enough that i'm still on my space. thank you so much. i know you are. i
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think the united states senate has approved a bill to avert a government shut down. that could have had a major impact for the ongoing economic recovery in the nation. the deal announced by majority leader, chuck schumer will keep the government operating through the 3rd of december. if no deal had been reached, hundreds of thousands of federal employees would have been effected starting on friday now beyond extending a deadline for a shut down. the bill includes disaster aid for states that have faced extreme weather and funds to resettle african refugees. the legislation, however, will not have a provision to raise the debt ceiling. earlier this week. senate republicans blocked a procedural vote of a house pass bill, which included an extension of the debt limit claiming they want to stand alone legislation to make this happen over the last few days. treasury secretary janet yellow and had told law makers the u. s. will no longer be able to avoid breaching that limit as of the 18th of october. and rachel,
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this is literally just kicking the can down the road the, the definition of that. oh, absolutely. i mean, the 3rd of december. so what they're saying is that they are going to have this exact same argument all over again, just a few weeks from now. and as federal employees who are reliant on this, what they're basically to do is moving into the holiday season. you get back from thanksgiving and then you have about a week where you're going to be looking at it and saying, am i going to be able to afford buying christmas present? because i don't know if they're gonna extend this and then they're probably kick the can down the road for a couple more weeks and we'll see what happens. that's exactly how they do. and we also have to remember here that while those federal employees have significant consequences, as a result of this, those members of congress who did not do their job and passed funding, they still get paid. interesting how that works. time now for a quick break. so when we come back to semi conductor shortage continues to wreck havoc among all tech sectors, including the auto industry. we'll discuss, follow with an expert in the field next. and as we go to break, here are the numbers at the close.
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mm mm. mm. oh yeah, i for a suze
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with of course after 40 years of fed interventionism by simply expanding and pretending and printing a lot of money, they got into this cargo called, you call it mentality where simply waving a flag, you know, essentially printing more money is going to make all the problems disappear. meanwhile, politically, what we've seen in america is really remarkable. the, the liberal left and their cohorts in the media. even though that this policy is caused incredible human suffering in america. they effectively marginalize those people as quote, deplorable and really made scapegoats of the victims of japan. and they've often said that this is a victimless crime, money printing and extortion that's practice at the fed. and yet, i look at those 90000 dead americans last year from opiate overdose. i'd say j pal, you've got blood on your hands because that's a direct result. now, investment money printing and ro acknowledge that you're practicing as a charlatan. the
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the air welcome back supply chain issues related to the global chip shortage would likely have a major impact on car sales in the coming month. automakers likely sold roughly 12300000 new vehicles in the u. s. in september, according to bloomberg, but going out of 6 market research are forecast. the number is considerably lower than the 13 point. $1000000.00 cars sold in august and down 25 percent from september of last year. so just how bad are these supply chain constraints? well, as some major brands have been forced to ramp down production market research, a true car says u. s. dealers only had 17 days worth of new car inventory on their lot. compare that to the same month between 20152019 when dealerships average 64 days worth of inventory. so just how long can these issues last and how is the industry dealing
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with it or the discuss? let's bring in some other auto news. let's bring in the car, coach lauren, fix moore, and always a pleasure to have you on the show to talk about these issues. now, analyst that l m c automotive. believe it could take all of 2022 to get ahold of this chip shortage and have things returned to some sort of normalcy. as we've seen sales and inventory struggling. how is the auto industry going to be able to deal with this? well, the auto industry is trying to go what's called vertical. they're going to try and build things with in their own companies. if they need chips, they're gonna, they're going to use their old chip factories to try and produce some things. they get product out the door because you're talking about such a huge hit in sales that affects the profits that affects the unions that affects jobs all the way up and down the pike. and then also affects local communities of dealers, not selling. as many vehicles, they're not going to be using as many services in the local area. and of course that means employees. so there's a lot of people that are impacted by this global chip shortage. although it seems
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like it's right on the surface. there's a lot more to it. there's also a shortage in steel is a shortage in wiring harnesses. and there's a shortage in rubber. and a lot of that still sitting on ships that are waiting months, literally out in long beach, long boat or long beach and other areas waiting to dock. and once they dock, they still need workers to unload those ships and then drivers to take them to their destination. so there's a lot of things in the logistics side of this that are also causing part of this chip shortage. wow. and it's certainly, i know we've talked about shortage after shortage here, but at the same time us dealers have been able to weather the storm, making significant profit as prices for vehicles were up due to those supply constraints. so are we going to continue to see that trend moving forward, or will all of this eventually come to a head? what say you? well, the dealers are franchises, so we know that right away. so when there are franchise, they can put whatever price they want on the window sticker for you to buy it. and sometimes you'll go to a dealer and tell they've got the vehicle i want. that's great. and you look at the
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window sticker has something that's called a d m, that's additional dealer markup translated is pure profit from the dealer. and they have every right to charge that and you have every right to pay it or not to pay it . so keep in mind if they can't get vehicles, it's supply and demand economics one on one, right? if you don't have enough supply, but you have a huge demand, we can charge a higher price for that. and that's not always going to be the case. but in the near future and possibly up to in the next year, like they are saying from l m. c. it's entirely possible that you're going to see additional dealer markup on a lot of vehicles right now. if you want to vehicle your best friends to order one, don't take anything off the lot because you will be paying a premium price. there's very few incentives and that means more profits in the dealer's pockets in lauren, i was going to ask about this, this market that you just mentioned. how common was that say before we had the supply contracts? did you did dealers regularly do that? because we know we see a lot of deals come through where they're, they're actually knocking money off the price. right now your am or additional dealer markup as things like the 2021 portion, 911. you want to g
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t 3. you're going to pay for it, and i, i actually call the dealer on what it was, $40000.00 over sticker, but you're finding as much as $10000.00 over on something as simple as a key is sell dose, which is something that is a pretty mainstream car, but it's about supply and demand. so you're seeing it was always common unlimited production vehicles that there was a high demand for such as the t rex for the truck or a shelby mustang or corvette. but now you're talking about this a d. m being added to just average cars, and i don't think this is going away in the near future. now i want to bring another aspect into all of this, which is the earlier this week we discussed a fuel shortage in the u. k. as a nation faces a truck driver shortage to get the product to the pump. and as that happened, online searches for electric cars in the u. k. serge, 1500 percent according to google search data. so as we look at oil prices going up, do you generally see more e v 's being sold in the future?
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while the problem is still the same with the electric vehicles, there's even more chips used in electric vehicles, but what is showing is interest in electric vehicles. so people are researching and deciding. does this work for my family, for my lifestyle? remember that the insurance rates here in the us are twice as much as they are for a vehicle that is a non electric vehicle. so it may or may not work for you. so you have to do your research on the cost of ownership because there is a cost for electricity. and that's also getting more expensive because the shortage of electricity. and that leads us into other conversations of countries like poland producing nuclear power because there's a shortage of power as well as a shortage of gasoline and diesel. and so people are that are considering electric vehicles are now starting to think, you know, this might work for me, or maybe i'm just going to work from home, which we're also seeing a higher increase of also. well, that's interesting because i think we saw that at the beginning of the pandemic, 2 of the work from home, people were kind of like that. we didn't need cars, but then there were also people who were like in major cities who said, now i maybe do need a car which device. it's been kind of a vicious cycle for pretty much everything. since the start of the pandemic. lauren
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fixed the car coach, thank you so much for your inspected it. thank you. and finally, amazon has created a robot than it describes as its own version of our 2 d 2. but league documents war in the robots own developers say it has some serious issues and is not ready for release. so amazon describes the new astro robot as a domestic assistant, which is essentially alexa on wheels. however, an anonymous team of developers is warning about the robots pattern of memorizing each member of the house saying in his program to follow around anyone it identifies as a stranger. and they're saying that the facial recognition technology uses is flawed at best, and a privacy nightmare at worst. and on top of that, the aster was described as being well, not the smartest with the report saying the robot will throw itself downstairs if presented the opportunity. and if that's not enough,
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and you want to find out more for yourself, well, amazon aster will soon be available for $1000.00 each. all right, you have a $1000.00 to spare, just to try this out. but it sounds like there are a lot of privacy concerns in this. i mean, it seems like alexa beyond here is, you know, with bad enough that these device, they're listening to us, finding out everything that's going on in our life now they can follow you around to figure that out. absolutely. and what i want to know is where does that information go? ok, they've got everyone in your house memorize well then what, when now i'm wondering if it can drive around your house, see if you're out of toilet paper. so i can tell you to order or whatever it might long as you know, i'm stairs, you should be good, and that's it. for this time, you get to bust on demand on the portable tv app available on smartphones, tablets, through google play in the apple app. store by searching portable tv where we'll see the can also be downloaded on samsung, smart tvs and roku devices, or simply check it out portable tv will see you next time. mm hm.
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ah ah ah ah ah, ah, with 2 ah. is hi now where we receive so many inputs on a daily basis that are completely i'm related to reality. so think about how in social media were not there. and they basically were present themselves in
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a very unrealistic way. is what we come down fomo. there is any involve more than that. it's about being sort of envious of something. it may not exist. and it is also really tied to the fact that as humans, we want to be part of the crowd who no one? no, no, no, no, no, no, no. what door, more shrill than what they should end up unit 73. 1 was a unique organization. in the history of the world, what they were trying to do was to simply do nothing short and build the most powerful and most deadly biological weapons program that the world had ever known. and real,
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no to production issue or she'll book a dinner. good, good. good on sun, new quarter. she'll keep on moon. my general manager thought this meant new. a new i'm. i got the much sale. i got ya. i go on monday. i wish to know about dory. whole new food in august or more polished enough, jr. let's i had to put a couch nice. oh boy. oh boy, to go with. oh, want on this to well, she might new on it or i can send more. oh said mon, good student, i love the you. your love on all of them are going to give us a little she
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with a top stories this. our concerns drove for a u. s. had to business gone on hunger strike. martin got his belt the serving time for launching cyber attacks against the hospital. he says severely mistreated, a teenager, we hear from his one the last time anyone heard from him is september 23rd. that so scary. i spoke to a lawyer the other week that told me that it's the worst president in the united states. i. g stands for instagram, but it also stands for instagram. exploiting kids for profit us lawmakers roast facebook after the company's own research shows it's instagram platform.

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