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tv   Boom Bust  RT  October 12, 2021 5:30am-6:01am EDT

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customer's base look now says it is going to do the opposite, promising new content controls for kids. well, it's got an o if cd members have struck a historic deal and a proposed global minimum corporate tax. later on we bring you the details of the landmark agreement and what it means for multi natural firm. we would a lot to cover, look at to it and we leave the program with the global energy crunch. it has been a crazy few weeks for energy as much of the world is suffering a grueling shortage. just take a look at europe, which is currently getting hammered with record high natural gas prices while china is so energy squeeze that it's experiencing blackouts. meanwhile, in the us, consumers are paying the highest price for gas in more than 7 years. as oil prices continue decline. so just how did we get here? from that good archie correspondence sites avager. so brand much of the world is dealing with a triple, a triple whammy right now one, there's
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a surgeon demand for pretty much everything as countries reopen from club in 19 locked downs, which then equals even more energy demand. now to the northern hemisphere is added to freezing winter months, which means even more energy demand. and finally, 3, all energy commodities have reached are highest prices seen in some years. now, let's start out with the world's largest consumer of energy, which is china. and what caused their energy shortage. so because no one was anticipating a global pandemic, beijing had been slowly closing coal mines for years, for both environmental and safety reasons. then to pandemic happen, and now that economies are starting to recover. there is so much demand for chinese goods that china's coal on factories are being forced to shut down, since they're actually running out of coal. and a coal fired power plant still account for about a 70 percent of china's tricity. so while we're constantly hearing the slogan here
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in the u. s, that coal is dead, that's not actually the case. now if you look at the current price of coal, it's actually soaring. so the opposite of eyes happening. so good. well, i guess what china is doing, they are re in investing in cold power plans. so don't expect the world dirtiest fossil fuel to be phased out any time soon. then there is a euro that's battling a record, breaking surgeon energy prices. now for europe and mix of market geographic and political factors have formed into a perfect storm that shows no signs of slowing down. and it all started with use promise of cutting down on his long time dependency on fossil fuels. but natural gas and coal still supply more than 35 percent, or they use total energy production. and while cool is being a phased dad, europe is currently relying on natural gas as
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a transitional resource. why cleaner alternatives are being rolled out, which in turn has made the price of natural gas also skyrocket at a price hike of more than 360 percent in less than a one year. now to give our viewers a better picture of the price spike in natural gas, it's actual equivalent as if the price of crude oil were trading at about $200.00 per barrel. and with europe heading into winter expect natural gas prices to get even higher. now the question on everyone's mind is, will the astronomic energy prices carry over to the u. s? and the answer to that portion will ultimately depend on what winter weather brings . but the good news is that the u. s. is the world's largest natural gas producer, and inventory levels are not as depleted as they are in europe. but that's not to say that us prices won't be volatile. just take a look at the current oil prices,
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which has made gasoline prices, sky rocket, and with old pagan not increasing supply. don't expect gas prices to come down any time soon. brand. rachel? r d corresponded sy fairbetter. thank you so much for following the story. so let's take a further look at those oil prices, which stayed at 7 year highs on monday with west texas intermediate surpassing $81.00 a barrel. it's the latest in the series of skyrocketing energy prices that are now causing concern about how they can impact the state of the global economic recovery . so turning is not the scholars unless co host, christy i, and ad moyer, senior market analysts at atlanta. it's great to have you both on the show today. now add, let's start with you. what do you make of the latest surgeon oil prices? and what will it mean for those who were turning to oil as a source of fuel to get away from skyrocketing coal and gas prices? well, right now, we are seeing the global energy crisis. i think we've been very fortunate this week
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. it seems that we've had some milder weather's, etc, some of the pressure with natural gas prices. but right now, the oil market is heavily in deficit, and you're still seeing opec plus and the u. s. production levels are not really ramping up. and that's really, really, i think this was widening deficit that were seen. and right now there's expectations that if we do have even a modestly cold winter, we're where there's a strong likelihood. you could see $90.00 oil just because we don't have the supplies. and right now you have a markets that, you know, has been an industry that's been ravaged by the pandemic. and i think you've seen big oil, they've really refrained from investing in new wells. and in making commitments to some of this old economy energy sources. and i think you're starting to see that you're going to have a shortfalls. i'm, you know, over the next several years. and there's, there's optimism here that if you're an energy trader, this is going to be pretty much a one way trade or hey, christy,
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it's china has been spirit experiencing an ongoing energy crunch as we just mentioned. that has made it worse by massive flooding that has left up to 2000000 people, displays from the countries coal mining hub. how is that playing a factor in the market right now? while it absolutely plays a big part in it, as it is just simple supply and demand, the flooding has disrupted the coal supply chain and says she, which is where the vast majority of china's domestic coal comes from. so not only have hundreds of thousands of people have been displaced, but the floods have also forced the closure of about 60 coal mines and damage more than a 190000 hackers of crops. so this has resulted in the futures for coal rising as much as 11.6 percent on monday on the 10 sol commodity exchange. so last week, the state council also announced that it would allow energy prices to rise as much as 20 percent in order to incentivize power production. and then also order the coal miners to dramatically increased productions in order to curve the energy
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crisis. however, it is expected that the resulting power outages and production disruptions will continue in the near future for an extended period of time. so the big risks to all of this is that the crisis on the china energy market could extend to lower factory output, which will then disrupt supply chains and drive up the prices of all the goods along the chain just in time for the big christmas shopping season when retails and consumer spending is supposed to kick in. and i want to go back to kind of the oil sector, because so far we've seen opec. claus say it won't increase supply more than expected, even with prices soaring. and again, reminder, we always look at this about keeping prices down as demand goes up. but the fact is, the cartel just wants to get it to the point where, how much money will you pay for it? because as you said, energy traders are going to be very happy coming into the winter season. is there a way for cartel members actually make up? what was lost in 2020? is that what they're actually doing right now? well right now they're taking advantage of, you know,
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this is exaggerated move higher in oil prices. i think that we have to remember opec plus was foreign because we needed a coordinated effort to stabilize oil prices. and the reason them, you know, plus is at rushing ramp up production is because they're not afraid they're gonna lose market share to the u. s. the u. s. is firmly committed to the c s g movement and you're not going to see. yes, wells are coming online for the u. s. you're not going to see us return to anything near the levels that we saw to the company ministries. so i think right now, opec plus knows that this current surgeon prices, it's strictly, mainly because there's fears that we could have a lot more demand during this winter in. but that's going to be short term. i think the, you know, the consensus really is that after we get through this search, whether we hit $9000.00 oil that you know, the warmer months in spring and summer will be back rate at those mid seventy's. and i think that opec plus knows that they're still going to have, you know,
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stable prices, and they're just going to take advantage of these high prices for the next couple months. yeah, certainly, especially as we're watching what may end up happening this winter now. christie, i know another topic that we've been talking a lot about, which also deals with the winter months has been the fact that europe is facing this ongoing search and gas prices. a supplies run low. now we've heard that russia has said it's ready to increase supply, but some in europe are saying moscow is just pushing for north stream to, to be officially certified. so how big of a role or politics playing here? when the soaring prices are affecting entire nations? you know, politics, obviously it plays a big part in this. and unfortunately, while these leaders are playing politics, it's the consumer and the people who are left suffering when they have no electricity for the winter. so the north stream to a pipeline was completed last month and still awaiting clearance from german authorities. so given the mountain energy crisis in europe with gas markets now up
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a staggering 500 percent. so far this year, the market breathed a kind of a sigh of relief when russian president put an offer to increase russia's gas supplies to europe. so russia spoke 1st and also reiterated that it can certainly boost its natural gas exports. however, quote, it all depends on requests contractual obligations and commercial agreements. so naturally, analysts suspect that this offer to increase was likely intended to put pressure on germany to certify the pipeline. however, some also suspect that my shop might not be able to deliver on its promises to supply more as production is already at record levels and their own storage was depleted badly. so many doubt if they will even be able to supply more gas even without strengths then this, christy. i and, and why i veranda. thank you both for your time and insight on this one. thank you . and facebook's chief spokesman said the company is willing to subject itself to greater oversight to ensure it's algorithms are performing as intended and are
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harming users. nick klegg, facebook's vice president for global affairs says that the algorithms quote should be held to account if necessary by regulation so that people can match what our systems say they're supposed to do from what that actually happens. joining us now discusses boom bus, co host benz want ben i before i get to what we really got to talk about here, it appears as klegg is basically saying the algorithms are a sent you and being that just does whatever it want to do. the algorithm should be held accountable. not anybody who work for facebook. god forbid. all right, i'm sorry. go ahead. no, no, no, no. can i just come with us? you're absolutely right about the statement you just read. he says the algorithms must be held to account. that's an insane statement. no algorithm is, is running the show with facebook. our gms program by people, people put in that programming based upon what the higher up that facebook and told them. so just let's just start there. the concept that algorithms must be held to account passes all blame for everything we've talked about for the last couple of
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weeks to the side. it brushes it up and says, we're not actually responsible for anything. the algorithm is a pen. he also said that facebook is open to changing a 1996 provision of u. s. law that insulates companies from liability for what users poses something we've talked about at great length. why would facebook now be open to that? yeah it's, it's a, so we just talk about one insane statement about the algorithms. this is another insane statement, right? so essentially saying there's a 1996 law that, that keeps on facebook or any other social media platform. internet platforms are being held liable for what users post on them and what he's saying is, let's get rid of that. let's take away that. i'm gonna read you what he says, contingent upon the platform, applying the systems and policies they're supposed to white. so if you really break down what he's saying here, what he's actually saying is facebook once again, she could be held liable for what users put up unless we go along with whatever
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government tells us to do. so if there's a regulation in our department or some government entity that tells us what we can and cannot put up, or what are algorithms can and cannot do. if we follow those guidelines, then we're not susceptible to liability or lawsuit. and only if we refuse to do what we're being told to do by some government inter agency, then we would be liable and all that is about, let's call it what it is. that's about eliminating competition that about facebook protecting its position in the market place to say we will literally hand over our algorithms to, to some kind of bureaucracy that is now in charge of them. and so we remain without liability, which means we continue to rake in hundreds of billions of dollars, maybe trillions of dollars over time. and simultaneously, government will get to control the algorithm. it is exactly what i warned about with the social whistleblower a week ago. right, and exactly what we're watching facebook do and kind of funny out to the government in some ways. well, there's another way that they're trying to, i guess,
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move over bad publicity. you could call it because before we had talked about how facebook saw teenagers and young children as a way to make them basically lifelong addicts and their products. now on the same facebook, a thing that they're going to 9 teens away from harmful content. what normally will that look like? well, it more lunacy is what it looks like. so essentially what facebook is saying is it, they're going to monitor what teams are looking at. right. and if a teenager looks at content and then repeatedly looked at the same content over and over and over again, and facebook slash instagram decides that maybe this isn't good for them to be looking at this content. they'll begin to nudge them away by sending other content into their feed. what like and yet of this deals with the problem, the problem according to those documents that were released to the wall street journal by the so called, whistleblower showed that facebook knew that its algorithms were sending bad content to teenagers. again, facebook not taking responsibility and saying, yeah, we recognize that our algorithm written by people not writing itself. this is not
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the matrix written by people was actually steering teenagers and young people towards harmful content. and instead of saying, we'll stop doing that. they're saying what, we'll just monitor what they're looking at and then we'll nudge them in what direction, whatever direction we decide. how do we know that's the right direction? how do we know that's going to be helpful to a teenager? there's no evidence of that whatsoever. it also banded, i mean there were reports previously when facebook came under scrutiny a couple years ago. but essentially they had full control of this algorithm that they could dial it up and dial it back however they wanted to. but that's a whole conversation for another day. and maybe while you're sitting right here in the seat for the rest of the week, while i'm on assignment bend, swan of boom bus, thank you so much. thank you. and time now for a quick break. when we come back, can we soon see a global minimum tax of 15 percent will take a look at the latest agreement between over $130.00 countries next. and as we go to break,
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the bottom with affiliate with that sort of looks like you with luck with nice seems some of them when he's got the west. when, according to the show, cost of for philip, keeps them from, from the means are kind of what the stuff that the same i'm giving you. cisco of logo slid 3 years of senior to one wonderful. said little squiggly. ah, unfortunate, but are one. why do you think that us them, i mean, on i, besides that we still live b o
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or come back after years of contentious negotiation to the organization for economic cooperation and development on friday. announce a major agreement on taxing massive, multi national companies. more than $130.00 nations agreed to a minimum corporate tax rate of 15 percent. as many of the world's largest firms have avoided taxes by moving profits, donations with lower tax rates, forcing these companies to pay taxes where they operate. not just where they are. headquartered french finance minister, brutal lemaire, discuss the action on friday. so 4 years of negotiation. to put a, you'd called agreement that we found this summer at the level of the g 7. and the g 20 finally has transformed into an agreement on all the technical parameters of the new international taxation system for the 21st century. these agreement is absolutely key for or economic models,
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or we can fight with greater efficiency against tax optimization. and thanks to the minimum corporate tax rate, which has been set at 15 percent. see, this is a tax revolution for the 21st century because it allows us to tax the immaterial activity looks good on which is going to generate the most output and profit in the coming the years. and there are still many details to work out as part of the global corporate tax rate, including the approval in the united states before it goes into effect in 2023. joining us now to discuss is for record member of the british american business association, and president of straw mark business development consultants. now hillary, we heard it right there. boomer says this is a tax revolution and we've heard a lot about this about them dodging taxes by putting money in countries with low tax rate. but we've also talked about this on the show before. and really a lot of experts are saying this goes nowhere. nobody's going to pay up. what do you think? well, yes, i would actually the pleasure to be back with you brent. i would say that don't forget, the global corporations, the find stocks in particular the facebook's amazon, apple, netflix, google,
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microsoft, et cetera. they be modeling this for years, and it was interesting to see nick klegg, the global affairs had facebook say. will they glad to have some certainty where the pessimist in this old could probably say the certainty is because now they can really plan how to get around. and i think one of the most egregious examples was that amazon made over 50000000000 in profits in the e. u in 2020, and paid no corporate taxes because they filed in luxembourg and had 1200000000 losses. so they're always going to have smart tax attorneys these funds. yes, and i think they're going to find a way to get around it. however, i do think the intention is good. i do think they also want to avoid, of course, very importantly that digital services taxes. and i think they know that if they kind of cough up at this juncture, they can avoid more pressure and more debate as to how to get money out of them. so i do think you will see yes something, but don't forget, this has to be ratified to all these different nations. and even on the head of the
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tax international services at video, she said nothing to really even happen til 2023. so it's going to be a while, even if something does happen. now we know that whenever it comes to these talks, of course, there are some concessions along the way in order to try to get everyone on board. and with this specific deal, for instance, we have the tax rate will not be increased at a later date, and some, some small businesses will be spared. now this actually help to get ireland on board, which has been one of the nation's attracting tech companies with low rates. so how much did ireland play a role in this where you are right? it did need to get island on board and pleasure to be back with you. rachel. a couple of things are island, whole island, hungary and estonia with countries that had really held out. and so yes, island had to get on board. so i am played a role because it's a tax haven for so many u. s. companies. and of course, that's help keep a lot of stability in ireland. the robot on them played was that as the catalyst
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for other countries to follow since, because they know that if island gets on board, this is more palatable to them. there are some countries that are still holding out kenya, for example, on sri lanka and pakistan. and they won't do, they're not still not on board. so islands roll, very importantly was to put their foot down until the wording was changed. that it would be up to 15 percent. and that that global minimum tax wouldn't go higher than 15 percent. so there ro, really did hold it at that threshold. well, it's something we've heard a lot about during this debate was countries like ireland say, well that's how we attract business. yes. well, i hate to be a pessimist heared towards a country like ireland. but in reality, if you want to attract this, this is the only way you could do that is by being tax friendly and basically a giveaway that's going to hurt other nations where they're doing business. i mean, to me, that seems a little bad on their part. well, you know, you can settle about on their part. i'm not going to pass judgment,
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but i would say it's not just island, it's a little country's look. i mean hungry in estonia, they have to find a way to attract businesses to those nations on luxembourg, of course is the one that's been doing a lot of this dealing. these tax havens have been offering this. so i don't know that it's nefarious. i guess they're trying to get on an eva keel on an even pall with some of the big nations that's want. i mean, this is a lot of this is about i do think what is very interesting across the you though, is that the e u has tried to get and same thing with the u. k. has tried to make sure that more tax is a paid west, so this is actually delivered than the headquarters on i do think that's the biggest deal about this corporate, this corporate global tax that you're going to see more of a playing field in terms of where those, so this is a sold versus just the headquarters. i'm not don's benefit. everybody. now we've got about 30 seconds left. i know we've heard from the government here, but how we heard anything from the companies that will end up being affected by this new tax? well, they beat well you did hear yes, a nick like facebook. him say that they glad for some certainty what you'll seeing
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is you're seeing a lot of modeling. and what i'm aware of is they've, they've been through extensive planning for this. they've planned for the worst case scenario. they plan for the best case scenario to brands point about being pessimistic. they been very pessimistic that this could be was so they will be modeling this and they're getting ready to get around any way they possibly can really afford which of the british america is association. thank you so much pleasure. and finally, the man, the myth, the legend and the host of i don't understand here on our t, america is still heading the space, but his launch has been postponed for a day. blue origin says the delays are due to weather and the flight is now expected to take place on wednesday morning. william shatner, who will be the oldest person ever to reach orbit at the age of 90, is suited up and ready to go. arriving at blue origins, astronaut village and west texas, over the weekend. this comes nearly 3 months after jeff bezos himself made his 1st trip to space. shatner will also be one of 4 passengers lifting off on a new shepherd rocket. his crewmates include blue origins,
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vice president of mission and flight operations, along with to customers who are estimated to have paid over $250000.00 for their tickets. for the roughly 10 minute flight readiness. see what happens here. going to be a good. i absolutely agree about it. be famous for being the captain of the starship enterprise and you're going to really do it. it's amazing. i get back at this moment at 9 years old, and that's it for this time. you get both both on demand on the board, apple tv app, build on smartphones, tablets to google play in the apple app store by searching portable tv. portable tv can also be downloaded on samsung, smart tv, and roku devices, or simply check it out at portable dot tv. will see you next time. mm
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oh ha. ah, ah ah ah ah, what else was the most? i think i could, i still not believe go, he did, who bought, i bought a dial to them all. come with white, but i know from politicians to athletes and movies, don't musicals, does it seems that every big name in the world has been here? let's see. okay, but you can look up the good i see below. ah, what do i see
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a button when you get the call, but i need to nashua booklet. what does not give me a gloved new sport but she said basil makes dreams. come true that every one who falls in love with that people look like. mm. is your media a reflection of reality in the world transformed what will make you feel safer? isolation, whole community, are you going the right way? where are you being led somewhere? direct. what is this is faith in the world
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corrupted, you need to descend, have join us in the depths or remain in the shallows. with these people learn from their own experience, how vulnerable a business is to the bank. so he pushes my business over, the age, pushes me right to the edge, bankruptcy now i realize we were good. this isn't just the back that may be involved in this is the concept. see, firms is, is the lawyers. these people have got you want on their stories at ward kind of whistle blower. tell people's marriages have broken up and lost their family homes . it is spectacularly devastating for people's lives. they have committed suicide,
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but left behind, nor the explicitly state that it was the constant intimidation and billing by bank officers. that late them to i took the spear, it's obscene. these people up nor saw a u. k. power plant, one slower is a super green, turns out to be the country's biggest carbon dioxide emitter, made a blistering energy crisis in the country will tell you more covering this to fit to test a new feature in a bit to make conversations more healthy by warning uses things could get in ted, so he said we pull that plan up for debate. they long ago lost control of their product. this is just another laughable way that they're yelling into the breeze for a horse that has long ago, left the bar and they can kick you off. they can put up signs they get throw
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