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tv   Boom Bust  RT  October 27, 2021 7:30pm-8:00pm EDT

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half partially without partial admitting, there's some new functions. the u. k still says that the advantages of the way the disadvantages were heard from dr. john pantries pediatrician, who believes the government having learned from past mistakes and the test and trace is no exception. i think they'll keep shoving the money at it and say no, no, everything's fine. the commons accounts committee is got it wrong. so you select committee is go to rome and they'll just carry on burying that in the sand, which is basically a kind of common characteristics that run through the government. thinking that if you throw money at private companies, you're going to get something that's effective. and they should have learned by now, since you know the case, they should have invested in n, h, s, laboratories and local public health teams. these are the kinds of things which people have been saying for a month now. very little evidence. they've done that in europe today to moon
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use in about 30 minutes time coming up next, announcing to national is blue bus ah, does year a path to strategic vision for the future? what kind of relationship will it develop with china? europe stands at a crossroads. will remain dependent on washington as a junior partner, or will europe opt to play the role of a great power on the world stage. with with
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this is in by so in business a can't afford to met. i'm ready to love it and i'm ready for it was, it did coming up the united states battle on the text front has taken another turn bar in china, telecom from operating with border great ad we discussed with development. and what it means for relations between the world to largest academy and our to track beginning to show in the red hot crypto trading sector. we'll discuss the new front here with a range of opinion. then paul is making a come back with nations turning to the fossil fuel as the energy current continued to impact the global recovery. we'll take a look at the latest attack here today. so let's get started. can we leave the program with the latest escalation and tensions between the world's 2 largest economy? if you thought that the war between the u. s. and china, over telecom technology and infrastructure ended along with the trump administration? well, think again, in fact,
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the federal communications commission has now voted to block china telecom americas from the u. s. market saying the u. s. subsidiary of china. chinese state on enterprise is, quote, subject to exploitation, influence and control by the chinese government. so what does this vote by the fcc mean and what happens next? let's bring in, boom, boom, coast and investigative journalist, ben swan, to discuss been breakdown this really for us. what does this mean? yeah. why is central, what it means is that this company has 60 days to start up, stop operating in the united states. right. which is pretty interesting. so there's 2 republicans in 2 democrats on this committee and they voted unanimously with a 4 to 0 vote. and basically what they're doing is they're going to revoke, and then terminate china telecoms section $214.00 authority to operate inside the united states, which essentially means they can't operate at all. and you know, we've talked about this for some time. you guys mentioned in the later lead up here . this is something that happened with the trump administration. for several years,
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we saw this happening. there was a build up here. the fcc was looking at this, not just for, for telecom, but also for a while way. and there was a ruling can to remove all the way equipment across the country and not make it eligible for grant money from the us government. so this has been a long time coming. one of the things is fairly interesting about trying to telecom is, is one of 3 chinese companies that operate in this space. and essentially trying to telecomm, dominates the chinese market. they will not be allowed to operate in the united states, and it seems like there's not nearly as much coverage of this under the vine and ministration as we saw under the trends ministration. and so for many, they shut down may appear to be sudden, but it's actually just the latest in a long line of action specifically targeting chinese telephone, correct? yeah, that's, that's exactly right. i mean, it's been going on for some time. it actually was back all the way, like an april of 2020, that the fcc 1st started looking at this issue so well over a year ago, about 18 months ago,
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when they really started looking at this. and they were looking at whether or not they were going to shut down china, telecom america. the claim was that the firm is subject to exploitation, influence, and control by the chinese government. that's what the fcc originally had the claim back in april of 2020. so they've been looking at this for a long time. it's not brand new. but i think what does may surprise they should, they may surprise some people is the idea that as you said, this is something that hasn't really been talked about under the, by the ministration divide. the ministration really doesn't talk about china, but they have continued to carry out these policies that are especially limited to chinese tech in the united states. and now, meanwhile, been an executive at tech tock face tough questions on tuesday during the video sharing apps. first appearance at a u. s. congressional hearing thing. it does not give information to the chinese government and has sought to safeguard us data. what else came from that hearing? yeah, it's pretty interesting. so ted cruz, the republican senator from texas, was questioning, take talk about a couple of issues. one of the things he asked about was there affiliation with bi
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dance, which of course, is that the major owner of tech talk in china. and what was interesting, the statement that was made by, by the ceo of take talk was essentially this. he said that tick tock has quote, no affiliation with beijing bite, dance technology a by, by dance entity, which essentially even chinese government has a board seat on that company. they control that company. and so essentially what they see, it was saying is that we are associated with by dance, but we're not being controlled by by dance b g, which i guess is now a separate company. and so they have created separation. as you guys remember, you know, the trump administration had wanted to break off take talk and the forced by dance to sell the u. s. canadian australian operations that never ultimately went through . so the question was, how are these things affiliated? the other thing that the ceo said, which was also fairly interesting, is he said that all of the servers and the data as either stored in the united states or it's stored on secure servers in singapore. and that none of the u. s.
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data is actually stored in china. now, i know when we're talking about how the trans ministration went after chic talk, how they said that they were going to ban it and really turned it into this movement. and then it kind of seem like it just evaporated and the thin air doesn't seem like they're still pushed towards actually banning it from those republicans like ted cruz that could make some traction still. i don't. i'm not sure that it can make traction. look, i think when, when trump pushed for this, it was somewhat shocking. but he was essentially trying to force a cell. as you guys know, i was highly critical of that at the time. and the biggest reason for it was because should a us president, or, you know, any government entity for the company to be sold because its owners are, you know, may be affiliated with another government someplace. i think that's insane. does not make any sense at all, but there was a big push for that. and what was interesting was who we wanted to sell it to. we wanted it broken off so that microsoft and wal mart could ultimately own tick tock
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. which, how, that's better than china. i don't personally know, just because they're american companies doesn't mean your data is safer, and it doesn't mean they don't exploit their users as we know, american companies like facebook and amazon and apple do all the time. and obviously if you want a ban and app or something like that, or even chinese telecom equipment to bring this all full circle, that's one thing. but again, the city united states president not just saying they should sell it, but really trying to broker the deal himself and to take it for the us treasury. that was a pretty ridiculous situation. god bend swan thank you so much for that. we'll keep following the story. thanks guys. and robin hood is coming back down to earth falling an i p o in july that shares more than double in just the last week. the trading platforms own stock has dropped the yearly 16 percent down nearly 11 percent on tuesday alone. the latest earnings report missed the mark showing only $365000000.00 in revenue against the more than $431000000.00 in revenue that was
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expected. it also marked to drop from the 2nd quarter, which the revenue of $656000000.00. now robin hood is placing the blame on crypto currency. that's right. the platform noted in a statement that revenue from crypto trading dropped from $233000000.00 in the 2nd quarter to just $51000000.00 and the 3rd. as a result, robin hood says fewer new accounts were created and funded. so what does it all mean for the future of both retail trading in the crypto industry? well, joining us now. i assume that's co host an crypto analyst, christy i, and michael guy at portfolio manager at toro, so investments and publisher of the lead lab report. it's great to have you both on the show today. michael. let's start with you here. i know robin hood is now warning, but the seasonal headwinds as they call it and decrease retail trading are expected to continue for the rest of the year. so what does that say to investors and where does that put robin hood after the company lost more than $1000000000.00 just in
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the last quarter? i mean, 1st of all, we gotta define what seasonal patterns mean. that's kind of a strange, amorphous statement. church role. busy let's be very clear when you look at what happened with robin. it wasn't really about crypto revenue only entreating there. it was about those coin revenue and creating phone, which was really the bulk of a pretty much everything. i just put a tweet on leave lag report, you know, you live by the do you, you die by the right thing. thing, right? because if, if robin hood growth is predicated on these momentary fat and blips in crypto currencies, then their revenue stream is going to be as involved as the underlying currencies that people are treating through their platform. and i do wonder if that's something that is suitable investors necessarily want to have exposure to, especially given what i would argue or frothy levels or markets or role given where we are here in 2021. and now i just want to follow up on that because obviously we
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focused on the crypto angle there, michael, but there is also, you know, the big retail trading boom with a lot of main stocks which we've seen, obviously kind of seems to be winding down. you think that's also taking a toll on robin hood as well? you know, there's an argument a few months ago that as more and more people go into the office because of delta be largely over there, you'd have less people actually treating crypto. curtis and less retail and less mean treating all that. i think the start to see some of the elements of that. again, it's a little curious me, if a large part of your revenues being driven by the fickle crowd, you're going to very fickle revenue. so everything lined up with this narrative that a lot of people staying at home were bored. so what do they do? they went to the casino and the casino happened to have access through their the robins. and now chris, they want to bring you obviously into this conversation. why are you seeing the difference between what we thought maybe in the 2nd quarter and 3rd quarter for
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robin hood? do you agree with michael at all? well yeah, there was a huge surge of crypto training the 2nd quarter versus the 3rd quarter. and that was pretty much because of 2 things. first off, we had this massive rally in the 1st and 2nd quarter of the year with the coin topping $23.00. 63000 for the 1st time ever. so retail trade are seeing things rise . they get a little fomo and start massively trading. but unfortunately, when the formal dies down and crypto stabilize toward the $50000.00 mark and takes a little bit of a breather, that's when the biggest speculative interest dies down. and that's robin hood's crutch that they rely on. a lot of traders, not long term traders and hardly so one big coin didn't do anything for a couple months and just kind of flopped around the 38000 support line. people lost a lot of interest. and then of course, as a 2nd reason, which was the death of those coin. as michael just mentioned, a huge portion of robin hood's revenue came from crypto training, specifically don't coin. and i think all of you know,
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my feelings on those klein are ready, but those coin had been responsible for about 62 percent of crypto transaction revenue. robin hood in the 2nd quarter, but it has proven itself to be a one time gag token as now. volumes are down about 75 percent. so while there are a ton of great all coins out there that are actually doing spectacularly, it kind of blows my mind why robin hood wants to bet on and actually feed into this retail frenzy by listing such an unreliable and dumb coin and ignore i. some the real projects out there. when i know something we've talked about a lot, right? if you're getting in and you're making money, then life is great until it starts falling. and then all of a sudden you're losing money. so it'll really be interesting to see how robin hood moved forward with that. and if they continue to really focus on some of those mean point. now michael, i want to shift a little bit. i know that when we're talking about really just crypto currencies in general, a lot of those mainstream currencies are facing a tough road and have
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a tough road in recent days. but at the same time, we've also got j. p. morgan revealing that some institutional investors are turning to bitcoin over gold and billionaire investor, paul, tutor jones, is that crypto is winning the race against gold right now? now what do you make of those who are looking to a crypto currency like bitcoin as an inflation heads that could eventually rival gold 1st, g, b morgan a few years back also said that bic, when did that, that would be cautious of meaning that gp morgan says and continue g p. morgan rather narrative follow and falling price. right. and by the way, just real quick on the good point. i think they put some survey about see if they could list ship, you know, the ship we ship, you know, joke of a jo, coin on dish, which i have a lot of fun with on, on twitter. again, it's going from me to me more from fat to fantasy, macau fiber business model. never lined up on this point about became members of
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gold group to courses for school. i don't understand why it's one the other or the other, and i don't quite understand fully the argument that it's a replacement for goal. nothing about gold is in inflation it. let's make that very clear. gold had gone nowhere for over a decade. it's not an inflation and i can go back further in history. gold does tend to do well when you have high volatility in stocks as a risk off asset. bitcoin and other crypto currencies have yet to prove themselves as being capable of doing that when the volatility hits every mortgage. so if you're gonna argue that crypt occurrences in the coin or, and inflation hedge. sure, as to the same extent, the stocks are because olds money is printed, you got to put it somewhere. so it goes into some kind of asset, whether it's real or digital. but to argue that it's a replacement for golden gold really is its own different animal. it does nothing. did that, that prove that? i think a lot of people use these analogies without actually looking at the stats behind correlations cause asians and really what dry this price and chris,
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what's your take on that? because i think that's an interesting take from michael. that doesn't really have to be one or the other in this situation. i absolutely agree with him. and if you're looking to gold as an inflation hedge, it actually makes for a very, very poor one. gold has failed to go up hugely whenever the economy does, it has not lived up to the expectations of many of its advocates of rising. many multiples the fest, it seems to do is to jump a couple $100.00 or 2 if something nasty kicks off somewhere on the globe. and that is because there's just one very simple reason why safe haven investors have more upside and big coin than when they invest in gold. and that's because of issue every year there's another $3300.00 tons of gold produce. that's $200000000000.00 of that must be absorbed every year by buyers, which it does. and most of it actually goes into jewelry, not electronics conductors. and that means, as peter shift mentioned earlier this week, as only 15 percent of gold is consumed by the tech industry annually, that's it. most of it is actually jewelry,
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which is pretty useless. so let's look at bitcoin instead of staying the same in supply. when actually has roughly every 4 years, which means that supply actually goes down, not only does supply goes down, but the total number of big coins will not exceed 21000000 ever. and so that makes it not only a store value, but there's other use cases for the technology. what email did for transmitting messages block chain is doing for data. it is the only thing today that is truly decentralized, borderless, uncomfortable, and censorship resistant. and then lastly, we really are a gold hoarder and you think it's the end of the world and you need to flee. good luck logging all the shiny blocks of gold around without getting spotted and mugged . meanwhile, bitcoin is actually completely portable. are i taking the bacteria that really are this week? i like it, michael. give you the final word here. i mean, 1st i think jewelry is very useful. i just want to say that real quick so. so
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keep in mind that yes, all those are true organs about the coin, but be very careful in your sizing of something that is that voltage. i think that's something it's missing a lot of these conversations around crypto currencies is how much you meet in a portfolio. and if you're gonna believe it to store value, that means that it's a safe investment. i would caution anybody because the black swans a funny way of appearing and digital watching l. i'll certainly be interesting to see where all of this trends go. but thank you both so much for your time. michael guy out of the lead live report and boom bus christy, i think it and time now for a quick break. but when we come back, we'll take a look at the latest and the global energy crisis and what steps are being taken, taken to ease the pain. and as we go to break, here are the numbers with
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mm hm. and you say this statistic that 90 percent of the well the cell by 10 percent of the population and they added millions of dollars to their network. since the pandemic one would look out onto the american landscape and look at all the wonderful innovation. these folks have brought people to their lives. oh wait, hold on to life expectancy is down into mortality is up wealth and income gap is widening to genie coefficient. looks terrible. death of despair are exploding. so i think it's natural to conclude that all this money printing is not feeding. meritocracy is back that fading, attack us dr. see rule by the least qualified a
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shape out the same becomes the african and engagement equals the trail. when so many find themselves, well, the part we choose to look for common ground the welcome back. as the global energy crunch, rages on china is planning to set a ceiling for the price miners consult thermal coal and it tend to rain in skyrocketing energy prices. bloomberg reported the news, citing people familiar with the national development and reform commissions
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proposal that plans still faces approval from the state council. and with last until may of next year. for its part, the n r d. c, which handles the nation's energy prices released this statement late wednesday thing had met with the coal. busy industry to discuss measures to stabilize prices in the market. as we've discussed on this show, surging prices have cause a power crisis in the world's 2nd largest economy in turn, affecting manufacturing, causing more strain to the already struggling global supply chain. joining us now discuss this and some other energy related news of the day is david towel. he is the president of pro chain capital always a pleasure to have you on david. what do you make of these price caps we are seeing in china? do they help considering much of this issue is due to a shortage in coal. so now the price caps do not help the supply demand equation in any way. you schwartz men, terminal,
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blackstone in saudi arabia earlier this week spoke about the energy crisis. and by the way, energy can include call it, concluded oil include natural gas, and all of those are independent markets. and all of those are very regional as well. but to go ahead and echo what the schwartz man said is, he is most concerned about social unrest. if we have an energy crunch and an energy crisis, and i think price gaps help a lot in terms of welding any sort of social unrest goes ahead and allows businesses and consumers to be able to bank on a certain ceiling at which you know, price will reach and exceed no further. however, the n r d c has also said that it's going to be something giving a subsidy to importers. so that'll help with supply. and not necessarily, you know,
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bring up the price at a time. but clearly, the, the issue of energy and coal is at crisis levels inside of china. and now we know to go back to your last segment, frankly, one of the reasons why china went ahead and shut down all of its coin mining operations. because frankly, country doesn't have the luxury of spending power on mining bitcoin and i know talking a lot about this energy current, this is something we've covered heavily. and at the same time, the you in climate change call brands referred to as cop 26 is being held in scotland starting on sunday. now as many nation throughout the world, including china, have made floaters to reduce reliance on fossil fuels. how does. 6 the energy crisis play into this when it appears that the world needs to ramp up production across coal, oil, and natural gas ahead of the upcoming winter. so rachel, you put your finger on it. this is an impossible quandary. clearly everyone's
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focus in terms of the future is on renewables, are moving away from fossil fuels. however, the here and now is all about fossil fuels. as matter of fact, us energy information administration came out today and said we will not reach peek conventional vehicle usage in the world until 2038. that 17 more years of growth of gasoline needs increasing during that period of time. and frankly, you know, being in the united states, our legislators, our regulators here, have not bought long and hard about what the transitional period is going to be. as we see it right now, opec is going to be in huge control for at least the next 10 to 15 years. and that can affect things far beyond the energy market. it can go ahead and effect political relations. you know, potentially, you know,
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worst things can happen because of this strangle hold of the power is that have energy and are willing to continue with carbon emissions as opposed to those countries around the world that have pledged to make huge cutbacks and will make good on their pledges. absolutely, that seems to be a prevailing thought here is that obviously, you know, you can't do with this quickly when you're trying to make such a big step there. and especially when we're having these issues that we're facing right now. now i want to quickly before we go, look at europe there and obviously facing issues with natural gas supply. and a lot of it has been made of certifying the nordstrom to pipeline from russia. while much of it has been made of the power, it will give russia in the reed and germany, the economy minister says granting certification will not threaten security of gas supply in germany or the rest of the you. what's your take on that situation? i don't see it cannot read in you know, stability in the region. certainly russia sees the guys itself getting
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a fair amount of leverage is just the question of whether they decide to use that leverage at some point in time in the future. and frankly, i don't think anybody knows exactly what will come to pass, but certainly this will give another lever for russia to go ahead and pull if the chooses to do so. if it doesn't well then it won't. and every single be exactly how the german ministry went ahead and said, but things could go the other way as well. and certainly there are other countries around the world warning about that. but isn't that the case with any, you know, energy situation we have, and you just mentioned, even in the previous question there about how opec and opec has leverage over oil markets. so, i mean, couldn't that be be said on both sides or? absolutely not. no doubt, i mean, we have the issue right now in the united states where our president is calling on opec to increase production. i mean, we have the ability in the united states,
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go ahead and drill for more oil. we've made a conscious decision, not necessarily myself. lawmakers clearly have made that decision. so as the, you know, the government and so have special interest groups that we need to go ahead and fully get behind environmental concerns. and therefore, you know, promote renewables and move away from oil production. and we see that happening all around the world. excellent chevron shell bp, have all gone ahead and pull back on their production. they're taking their cash flows, their dividend, your shareholders, they're not putting it back in the ground. well, it's the majors are going to drill is going to be left up to the sovereigns. and, you know, frankly, opec, which you know, is gonna continue to drill for oil because that's what the mission of the consortium is. right. and so therefore, just by definition alone, they are going to have control in the energy conversation. absolutely. david towel, thank you so much. unfortunately, we're out of time president of pro chain capital. and that's it for this time you
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can get, boom, bizarre, portable tv app, portable dot tv will see you next time it states, it has to be ready to be able to afford and sign in front of the luxury that for sure, despite having the most expensive health care system in the world, we have poor life expectancy. we have higher infant mortality. we have more deaths from treatable causes. so americans are suffering every day from it. it's as if these people don't count. i saw how they can choose are customers and dump a sick so also they can satisfy their wall street investors. no
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parents should have to see what i saw. so if you're denying payment for someone's care, your make life and death decisions and determine who gets to live and who dies to me, that's best getting away with murder and inviting shaped bankers and things with ah, who dares thinks we dare to ask
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ah, european gas prices for civilization periods and tells russian and i do try and gas problem to roger top supplies. americans are losing faith. and joe biden is the ability to turn the economy round up to cove it with new putting, showing it's the same across becoming disillusioned with freedom or possible. 175 year prison centers, judith sanchez, the fate arrests on behalf of the u. k. court has an appeal hearing on a u. s. x. traditional request and gets underway. the orders, poland to a 1000000 years every single day until it m bonham's a controversial form.


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