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tv   Boom Bust  RT  October 7, 2021 8:30pm-9:01pm EDT

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or remain in the shallows. ah, imagine picking up a future textbook on the early years of the 21st century water, the chapters cold, gun violence, school shootings, homelessness 1st, it was my job and then it was my family. didn't was my savings. i have nothing. i have nothing and it's not like i don't trust. i look for resources, i look for jobs, i look for everything i can to make this pass. and i end up doing is passing time, the road to the american dream paved with dead refugees. it's this very idealized image is old, our america makes americans look past the deaths that happen every single day. this is a modem. history of the usa, my america r t a
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with this is boom, bought the one business show you can't afford to mit ambridge, boy washington coming up the u. s. and china officially held national security talks in switzerland, but higher level discussions are being outlined as biden. and she plan to hold a virtual summit later this here. sure that we discussed the talks and what issues are on the table. then we take you back inside the flight over the us, that feeling as the nation stared down the barrel of a default. we'll discuss the implications of such a move and how markets are reacting and with volatility lurking around the corner, the i m f, is spoken out against the adaptive crypto currency in developing economy. later on we look into the i m f warning and what it means for the fate of the digital currency factor vector today. let's dive right and with the us china relations at
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a new 40 year low presidents biden. and she have finally agreed to their 1st summit by the end of this year, though that summit will be held virtually. as i understand what came out of the discussions was an agreement to continue a dialog at a very high level. we're still working through what that would look like when i'm and of course the final details, so we don't have quite have them yet. among the issues that will be discussed is growing tension over taiwan. are concerned that he's at these recent activities. my actually as play and then draw the us into us some sort of great power war with china. and so what are you doing to maintain attention beyond kind of meeting for those you're getting that j. collins, i wouldn't call a meeting with our national security advisor and his counterpart and ad hoc meeting . obviously we raised our concerns to a range of channels. the state department also put out a public statement,
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a proactive statement on this, which is not something they do frequently, and the secretary of state spoke to it today. for more on this, let's bring in boom bust co host an investigative journalist, ben swan. ben, i want to start with this issue of taiwan. president biden spoke about of himself briefly. and here's what he had to say. i agree will bye bye. i would agree that we are and we made it clear that it will be doing anything other than by the group. so bad. where does this leave things? but it didn't sound exactly like a very strong stance there, but a 145 fighter jets. that's the report. 145 fighter jets from china have entered tie one's air space since the weekend over about a 4 day period that took place. it looks like provocation. taiwan is obviously very upset about a china seems to be encroaching more and more. moving towards some kind of military
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encounter, the question is, what will the u. s. do about it? if there is a move by china, a military move into taiwan, or we really going to go to war over china, taiwan. and one of the things that i see for president biden saying is, you know, he, he's on one hand talking about the one china policy, which doesn't really officially recognize taiwan. at the same time, he's talking about agreements that the u. s. has with ty one in order to protect it, so not exactly sure where we stand. he says he talk to president, she and president. she agrees that they'll abide by, by what i mean. the fact is, you can say whatever you want when you're sitting a 145 fighter jets into someone else's, their space. you're certainly trying to ratchet up tension. and i'm not sure the u . s. is going to do much about it. and ben, i mean with trade between the 2 sides remaining contentious. how does that topic play into this biden? she summit as we move forward and these tensions continue to kind of escalate
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whites. it feels like it from everything that i'm reading, every thing that, that seems to come out of the white house. they want to make it seem as if these are bilateral talks right, that the chinese are very anxious to talk. the u. s. is very anxious to talk. it doesn't seem that it's as bilaterals a make it out to be. it seems like jake sullivan, who is the national security advisor, is reaching out to china, talking to his counterpart. they are trying to get some kind of meeting. it's going to be a virtual meeting because present. she hasn't left china for 2 years now almost. ah, he's not going to attend in person. the g 20 summit, he's going to do that virtually. and so the, the responses we need some kind of meeting with, got to have something. and so that the chinese don't seem to be as eager to meet with the u. s. as the u. s. is to meet with china on a whole variety of issues, tie ones, one of them, but also just on trade. and in terms of what is happening with, you know, kind of new carrot versus stick measures being taken to say, how do we keep trying to in life, the chinese don't seem to be anxious. and on that trade note, catherine tie the us trade representative chair. so kind of laid out the whole
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policy towards china ahead of these talks out of the new policies, or how to the policies of the biden administration. that is to say, effect the phase one trade deal made under the trump administration between us and china. yet, well, remember that phase one trade deal between the u. s. and china that was made under trump, you know, had all kinds of cookie things in it, including a demand for china to buy $200000000000.00 worth of agricultural goods, more than what they had paid in the previous year. trenice not doing that, they hadn't been doing it there a 30 percent behind on that and so, but, but what do you do about it? i mean, is the u. s. going to be able to say ok, so here come the tariffs, here comes the punishment. there really is not a whole lot you can do right now if we talk about economies, obviously everything in that, that chinese u. s. trade deal was pre pandemic. it was pre cove, it so all of the, you know, purchase from us this amount. we need better deals in terms of, of products moving back more than the tariffs,
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the by the administration doesn't seem to like the tariffs as much, but can they really afford to do that? the u. s. economies hurting an awful lot right now. and so if you were to put tariffs on china who's going to absorb the cost of that u. s. consumers are, they're the ones who are going to pay the price for it. so there's not a whole lot you can do right now. and that's why i mentioned the caring of the stick. at this point you got to pull out a lot more carrots than you do sticks and not to a to mention if, if we look at the supply chain constraints that we are seeing worldwide with ports being backed up and the like, especially ahead of what is going to be a busy holiday season as inflation ramps up. i mean, it's hard to see how adding any more tariffs or any more economic woes into that is going to help the american people. right. oh i'm know about it in that of course also includes this gina semiconductor and what happened from there. and now ben, before we go, i went ahead on one more topic the as far as talking about us china relations, we have seen some de escalation of tensions between the us and china with the
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deferment of prosecution gets may 1 joe of why way is that helping improve the relationship, how much, how important is that for the child chinese counterparts here? well, i think that's very important. login with all the issues that have taken place. we're that we're talking about with what's going on, what i want, what's happening with us and chinese trade and, and you know, the, the phase one deal and who's buying what? but the idea that that the trumpet ministration had ratcheted up to the point of having mean long though detained in canada. they wanted to bring charges against the f. b. i had gone to this whole process of entrapment of trying to get her to sit a with canadian authorities talking to them while they search your laptop and there's a whole mess associated here. and so the idea that they have a deferred prosecution there, i think that's a good sign. china released a couple of political prisoners. they were holding at the same time, sent them back to the united states contractors who were in china. that's a positive you want it, you want to move past those things. because when you start ratcheting up to the point where people are being held against their will by one country in order to get
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some kind of economic response from another country, it only gets worse from there. so to, to step back from those issues, i think is a pretty important step boom bus, spend swan face. so it's re analysis on all of this. thank you. as politicians and business leaders warned of catastrophe of the united states were to fail to raise its debt limit. the senate has reached a barb, bipartisan agreement to temporarily avoid default. senate majority leader, chuck schumer announced thursday he had reached a deal with his republican counterpart. mitch mcconnell for an extension. moving into december during a conversation with president joe biden, wednesday the chief executives of 2 of the nation's largest banks. some of the alarm over the economic impact of failing to raise the debt ceiling. we need to resolve this issue very quickly. every day of delay right now comes at an increasing price as we become to see and the market. so right, a starting last friday,
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america simply cannot default on the debt because the us treasury market is the bedrock of our financial system domestically and globally. actual default, actual default would be unprecedented. we the things we know that it would do a very bad and it could be potentially far worse. the effects would be cascading. so day one would be bad, but the cash gain infection is showing weeks to go anywhere from a recession to a complete catastrophe. for the global economy, and i don't know why anyone would take a chance, like the temporary deal now sets the stage for a contentious holiday season as congress will have to come to terms with an extension to the debt ceiling and to fund the government to avoid another shut down . meanwhile, as news of the proposed deal broke us equities were up for thursday. the 3 major indexes the tao s and p $500.00 and tech heavy nasdaq, we're all up around one percent looking at 3 straight days of growth. the consumer
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discretionary industrial and financial sectors, each saw significant gays. jody is now to take a look at thursdays. market movement is michelle schneider. she is a partner and director of trading research and education for the market gauge group . always a pleasure to have you on michelle. now, market seemed to be popping, especially earlier on this deal. but in reality, it seems congress is just for lack of a better term kicking the can down the road here. does the set up market for a roller coaster at the end of the year as we look into november and december? well, definitely it does set it up. we've already kind of been in a bit of a roller coaster. and if you just step back and look at the markets over the last few months, we've kind of been range valley hit july lowes and bounced a little bit particularly in nasdaq. and yet we still have a lot of overhead resistance. but stepping back, i think the timing on december is so interesting because we have a lot that's going to happen between now and then to add to the roller coaster we
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have the holiday season upon us will be through black friday, which of course is always telling and we're entering the winter where many people are predicting we can see yet another surgeon, the virus. so it's going to come down to these politicians, whether they want to be the hero or the villain were still airing on the side of some level of negotiation. and some kind of deal that will be met in advance. but it's really, we know that all politicians have a little bit of both hero and villain, so it'll be interesting to see what happens by them. but i would certainly be i don't want to use the word cautious because price rules more than anything, but i would be frosty one and you made a great point is that after the black friday season. but if, say your one of the hundreds of thousands of government employees who is concerned about a shut down as well, you may not want to be spending big money when you're moving into black friday. when you know, in just a couple of weeks the government could shut down. now we also heard from the ceo's
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of city bank and j. p. morgan, there are, are there concerns valid about a possible debt default even if it is pushed back into december? but it was always a level of hyperbole, but basically their jobs, both diamond and jane fraser that biden's spoke to them about is to put pressure on the republicans to not wait to the last minute so that nobody, including the market is going to be particularly nervous about a default, and whether or not they're going to be successful on that is remains to be seen. but what's interesting here is that the republicans want to avoid a filibuster by the democrats, and what they want is what they call a budget reconciliation. which basically means that the democrats are want that issued settled now, and the republicans want to wait. so as they go into next year, they have a good talking point for the mid term elections. so it's really kind of up here. we are united states, it's people and the markets and the economy sort of caught in the middle. and we'll see whether or not these ceo's have any kind of influence for public sentiment to
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support it passing sooner rather than later. of course, we know that senate republicans at a certain point also wanted to make sure that the debt ceiling was disconnected from the budget was disconnected from extending averting the government shut down because they want an up or down vote strictly on that. so like you said, they can go back to their constituents, come the mid term elections and say, well, we didn't vote for that. they did. that's the way it works. now, going back to the concerns heading into the holidays, we're seeing a record backlog of container ships off ports here in the united states. do investors have this on their radar as well? oh, well, definitely. what's, what so interesting is that, you know what's going on, right? now is that we have the whole notion of oil, and this really smacks a lot of what's happened in the 19 seventy's and that oil was sort of the x factor . we had lots of different disruptions including the oil embargo. and from there,
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we also had some political unrest. yes, we know nixon wound up resigning, we had the vietnam war winding down. and at the same time we had easy monetary policy which of course and fuel this hyperinflation. so if we, if we fast forward now to this time, we have the co bid as sort of what's really here, a new x factor because oil is rising with the supply chain issues. and natural gas is rising, which is affecting food prices. so we think that this could really affect the bottom line for a lot companies in terms of their profits going into queue. we 3 raising prices and also with the labor, even though we have jobs number coming out tomorrow. i don't expect a huge surge in the labor forces we're going, but we can talk a little bit more specifically on the supply chain. if you ask, michelle said margaret, we will do it next time. because unfortunately, we are out of time michelle side of the mark again, thank you so much and time now for a quick break. but when we come back,
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as el salvador continues to tinker with its adoption of big point as legal, tender, the i m f, has warned a further crypto adoption in developing nation straight ahead. we discussed the latest concern coming from the institution as we get a break for those numbers at the clothes with the policy makers, the federal reserve bank and joe biden. the president thinks america is so freaking stupid, that they can make them believe that picking up a work las shiny round object and going hocus pocus over it magically turns it into
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a trillion dollars that they can deposit at the, at the federal reserve or the treasury to somehow mitigate that $300000000.00 debt crisis. ah, the lose ah, i'm in the see on the internet. the allows only
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b programs and which was a to invite everybody's lloyd. that wasn't a glitch. that was the feature that the people who does on the internet does always i in as a feature and welcome back. in the wake of a wave of perceived crypto currency, scams and illegal activities. the department of justice has launched a new bureau to tackle crimes in the space. the office named the national crypto currency enforcement team will use its experience in the field of money laundering and asset recovery. according to the d o. j. b announcement comes as crypto payments are becoming the norm for ransomware tax and have rocked the u. s. in recent months, although the agency has been officially launched as of this week, still searching for someone to had the task force. meanwhile,
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the international monetary fund recently took issue with what they call a crypto with zation of local economies. they say the implementation of crypto currencies in emerging markets could eventually affect financial stability in the already teetering economies. crypto has grown in popularity and emerging and developing countries over the last year, with the biggest story being of course, el salvador is adoption of bitcoin as legal, tender the i m. f, likens the so called crypto ization to those economies using a foreign currency. typically the us dollar, this is called dollarization. in addition to or instead of the nation's domestic currency, the fund says these practices stand in the way of the nation's ability to implement affective monetary policy. the i m f instead suggested these nations look at central bank digital currencies instead of traditional decentralized crypto. for more on this, let's bring in, we might have a managing partner with the block chain founders fund ali. always
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a pleasure to talk to you about these issues. now we've talked about the maps concern about crypto adoption quite a bit, especially in the wake about salvador. but what do you make the assertion that this could destabilize these for lack of a better term, already to stabilize the economy? absolutely brands. so 1st off, thank you for having me back on the show. and the i am ass concerns the stem predominantly around 3 items, control volatility and security. these concerns come up specifically when adopting a 3rd party privately issued currency or a public currency such as bitcoin block chain technology in the long run can replace national monies and conventional financial intermediation. so in short, it can provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers and facilitate cross border payments. so alley, and that's
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a good point because i think that was especially important. know in el salvador, those cross border payments, the remittances, because there's huge fees when you're wiring funds through say, a western union. but when you do it, they're bitcoin, it's not as much correct so, so yes, bitcoin is a solution where it can be substantially lower. of course, there are still fairly significant gas these at time. so depending if you're actually doing it on the bit coin network versus say, using wrapped currencies of the coin on another network. but you can still see some significant fees with big coin. but over time we do expect that to become more efficient. and of course, there's things like the lightning network that help to actually provide low cost, very low cost, essentially transactions on the big point network. and are these central bank digital currencies that the i m f suggest instead? are they really the answer or do they kind of defeat the purpose of having a decentralized currency that isn't really tied or tethered to the nation's economy?
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now i think this really depends on the specific implementation of the c, d, c and the goals of the nation developing it. so most nations, in my view, wouldn't necessarily be looking to a fully decentralized currency as their implementation of a cbc, and hints or hinder their central bank monetary policy toolkit. now they're been burying proposals on implementation. a common one that we're seeing is that of a 2 tiered system in which commercial banks issue the cdc to the public and would then offer a wallet to the account to interact with. in this way, it resembles a paypal account, where the c, b, c is used as a universal unit of account. now there's still plenty of benefits to this such as access that instant settlements. however, there's also downside such as privacy concerns. so keep in mind that this doesn't really address the expansion of the money supply. and i want to actually,
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i know there's a lot that we can actually discuss in that particular topic. but i want to transition a little bit here because i know you and i have actually talked about this quite a bit off the air. so often we get caught up in talking about crypto currency price movement and don't focus on the underlying technology of block chain and how it can be used across so many industries. and recently there's actually been a movement in what is called plate earned. i know you're involved in this space. so 1st of all, kind of explain this to the audience for a solid. yeah, absolutely. now this is been one of the most popular areas in the block chain space today. and we're talking about inclusive business and gaming model that provides financial benefits to all of the players who add value by participating and contributing to the game ecosystem. gamers have ownership over in game asset so they can increase their value by actively playing the game. we can look at this in the context of renting a home versus buying a home. so if you were to rent a home,
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you would spend significantly last, perhaps a 1000 or $2000.00 per month renting a place. however, if you buy, you might actually spend $500000.00 or a $1000000.00 to purchase the home. so this is actually similar to gaming where you don't own the asset versus if you actually own the asset. so you might spend 10 times or $100.00 times more to own a gaming asset that you can generate rental income from and have asset appreciation . and so i explain this, i'm a gamer and i even have a hard time wrap my head around this. what type of assets in a game are we talking about here? so it can be all sorts of things that could be your storage, your potions, you know, your cards, like if it's, if it's sort of a card based game, it could be, you know, any sort of rare, legendary, any of those types of items. and imagine being able to own it, you would actually spend a lot more. so in your typical commonly played games,
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you don't actually own those assets. they're owned by the company that created it. and therefore, you would maybe spend $1020.00 when you're playing the game. but if you actually own that asset and then you could rent it out, you might actually generate pretty significant income from that asset. and, but you'd be willing to spend a lot more in the game to actually acquire that asset and how, you know, why is the block chain so important for this is just the immutable ledger where you could actually keep track on. so i think the immutable ledger is, is one part i think it's, you know, ensuring that you've got assets that are tracked that you know, it is the original asset. you know, it's, you know, accepted by, you know, whatever game you're playing, for example. and this is really been a seismic shift, i think, happening in the space that we're seeing today. and do we see this, you know, with gaming becoming increasingly popular. i mean, over the last several decades is just exploded. why haven't we seen or what they're
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going to take for a block chain base game, or even for the big aaa developers to actually bring in a block chain to use in their games? i think we're already starting to see this go mainstream and i'll explain this, right. so in the past decade we've seen free to play gaming, gain massive market share in the gaming industry. now we're seeing it with play to earn lead by companies like actually infinity and split our lives. i'll give you an example in free to play gaming 2.2 percent of users ever actually pay to play the game in play to earn for example, in splinter lines, we're seeing that number closer to 80 percent, and they are active every single day. so we're seeing over 350000 daily active users. and recently, when our lines became the top block chain game, according to leading ranking site sap radar. absolutely. i apologize. i have to cut you off. we have 50 seconds left of the show. i appreciate it,
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so i will finish this conversation. 3rd, i might have the block steering found is fine. thank you so much. thank you for having me. and that's it for this. you can catch bo bus on demand on portable t v. we will see you next time. me. i ah, the by did ministrations decision to leave afghanistan was correct in long overdue . however, the way america's longest war ended as a different question. it was a botched affair. the generals will most likely never be held to account. put alone marine. we can, colonel does face court martial. is this justice?
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