tv Boom Bust RT November 5, 2021 6:30am-7:01am EDT
devising message to end to essentially destroy personality of an individual by scientific means. this is how one doctor's theories were allegedly used in psychological warfare against prisoners deemed a danger to the state. that was the foundation for the method of psychological interrogation, psychological torture, disseminated within the us intelligence community, and worldwide among allies for the next 30 years. and how to make them say they still live with the consequences today. ah, with this is boom bus, the one business you can't afford to miss on branch a bore in washington coming up level stock. they're up after the u. s. federal
reserve is prepared to roll back them. pandemic era measures will dig into what is waiting on the horizon for central bank and with crypto currency adoption on the rise. the new report from jp morgan has highlighted that digital currency could save billions of dollars. we bring you the latest figures from the report and whether it could weigh use it plus as supply chain issues have taken a toll on the auto sector. car sales were up for the month of october, but in the industry out of the would just yet will bring in or and fix the car coach to discuss what the future holds. there's a lot to get through with it. and we leave the program with a follow up on the u. s. federal reserves move to taper monthly asset purchase. it chairman jerome pol laid out the central bank policy on wednesday afternoon today. the f o m c kept interest rates near 0. and in light of the progress the economy has made toward our goals, decided to begin reducing the pace of asset purchases. with these actions,
monetary policy will continue to provide strong support to the economic recovery. beginning later this month, we will reduce the monthly pays pace of our net asset purchases by $10000000000.00 for treasury securities and $5000000000.00 for agency mortgage backed securities. we also announced another reduction of this size in the monthly purchase pace. starting in mid december as onlookers, worried of a so called caper tantrum, it was apparently nowhere to be found as equities here in the united states were mostly muted on thursday, while global markets pushed higher into the days trade elsewhere and the world's 5th largest economy. the bank of england also decided to keep interest rates near 0 while keeping its quantitative easing measures in place as investors thought it would be the 1st central bank of a major economy to institute a rake hike amid the cult 19 panoramic recovery. so what effect will be the latest central bank policies have moving forward with joining us now?
discuss. boom, but co host chris d i n michael pen. so ceo of pen, tow portfolio strategies. christy, i want to start with you on this. why aren't we seeing that caper tantrum in markets after the fat? and now these cutbacks, it was quite surprising seeing, as most investors and market watchers were expecting a tailor tantrum, but the opposite is happening now. investors are just rather placid, and the market is taking everything in stride. so there's a couple of nations for this, although right now we'll never know the real answer because some are arguing that the fed has done a really great job of preparing investors for a shift and policies than it did back in 2013. and that the market largely agrees with this approach. so with inflation rising, investors are comfortable with the plan to taper off and proceed slowly. so that's a nice rosie explanation. the other explanation is that the fed is going to have to
then shift its policies more abruptly or aggressively than expected, and the market is in for a rude awakening later on. so the market is too comfortable right now with short term interest rates, not going out much in the life cycle, and it's essentially learned from the past. so now the fed, old roadmap doesn't work in this new post pandemic economy. it knows that the fed won't be aggressive and that the fed put is always there. so equity investors are going to remain perfectly content that the major world money printers are in no rush to move the policy punch bowl. so we really don't know which one of the one of the explanations is correct. as of now, we can just say that the fed has done a good job of prime in the market, and nothing in the data points suggest that there should be any higher market pricing than what we have now. so for now, if there's going to be a wait and see game to see if they change gears and turn hawkish like the bank of canada later on. now michael, i mean you've been long been
a critic of the fed policy here on the show. and obviously short of abolishing the fad, you haven't really love to give them any policy ideas, but in this tapering of asset purchases all just too little too late. at this point . what i want you to there is an organization that regularly destroys your currency in the stories the middle class, that is when they're not too busy gambling on futures contracts in the morning before they filled out their money printing talk about insider information. so please don't blame me for not not liking the 13, it's an old organization, but of course it's of course, it's too little too late. i mean, we have the highest rate of inflation. if you measured it prior to the boston commission, we measured the way we did in 1000 me. inflation is running about 14 percent. ok, that's going to shadow statues are into my data. we have home price of their up 20 percent year over year. in the last few months, so there's no doubt that inflation is running amok us. it's too little too late.
defense balance sheet has increased from $800000000000.00 in 2008 to $8.00 trillion dollars. today. there is no way on god's good earth that they can magically and innocuous li extricate themselves from this massive manipulation of interest rates and money supply without damaging the economy and the stock market. and, you know, as we see that they haven't pulled it back very far. i mean, obviously this is a slow taper, michael, and we haven't heard that rate hike, which we're going to get to in a 2nd. but you know, what is that negative implication for the economy if they continue to just drag their heels here? ok, so let's just be honest. i mean, at the peak of the money printing under ben bernanke, they are doing $85000000000.00 a month. well, 2 months from now,
they're going to be doing $90000000000.00 a month. so you're not going to feel this until probably the 2nd quarter of next year. and then you're going to probably run into a huge problem. because you have the biggest fiscal and monetary experiment the world has, or seen the world as ever seen is coming to an end. and when that happens, you're going to have a blow up in the repo market above the credit markets. you can have asset prices meltdown. that's my prediction. and you know, of course i could be wrong. i have a 20 point model that measures and maps all these dynamics. but you just cannot stop printing, look at the flow of funds. the flow of assets for. busy a $120000000000.00 a month. the average, by the way, the rent has been $250000000000.00 a month since cobra broke out. you can go from that figure to 0 and expect the credit markets to remain korea expect the read for mortgage the function
normally expect the commercial paper market. the function normally is just not going to happen. so i'm on siler because, you know, i'm going to say something. the crash is going to be something like we've never seen before. not because i'm being hyperbolic, not because i want to improve your ratings, which i'm sure your guests are answering your. i'll say this, we have never before had a stock market that is 215 percent. it's asked it's acid evaluation, 250 percent of g b. and it has to correct correct all the way down to 80 percent. just to get back to normal, christy, i want to give you your option oppertunity to respond. of course you can leave out my handsomeness and that was well, i mean everything that he said was absolutely correct that the fed literally has not done anything but basically gamble with the market. and right now they're just
trying to weigh and see to figure out what the market is doing and basically trying not to spook the market to too much to make it go into a panic attack. because everything that it's taught the market so far is that the fed will always be that, that the fed put and their hand will always be there to help it out as to the. basically, this isn't really a market, a market, a free market economy anymore. real markets, they have boom cycle, then they have bus cycle that goes into recession, there are crashes. but at this point, the market has learned that crashes are bad and the fed doesn't like crashes. they will do everything in their power to avoid another potential crash and another potential does the after. so basically, it has free reign to do whatever it wants. and right now what it's essentially doing is just bubbling up into new all time highs. new all time highs with very little regard to inflation with very little regard to the fact that wage inflation has not kept up. that the entire validation of the market is entirely unrealistic at this point. and it definitely seems like the fad has fallen for that little trap
of the economy is the stock market when it's not at all their job to boost to the stock market boom bus. christy i and michael pet offensive portfolio strategies. thank you both as always pleasuring you and your support from the private sector is emerging for c, b, d, c's, or central bank, digital currencies. in fact, according to a new j. p. morgan report, a central bank digital currency network could save global corporations over $100000000000.00 a year in transaction costs when it comes to cross border payment to go over the details, but bring in boom, but co host, an investigative journalist been won. now ben, why does j p morgan believe so much could be saved by creating a c, b, c. well, i think the general idea here is that obviously cross border transactions are expensive. there's no question about that in the crypto space. this is the digital currency, the crypto currencies have completely revolutionized banking,
which is not just what they set out to do. they set out to obviously replace the banking system, but they have revolutionized that. and so j. p. morgan actually has been a part of this for a long time. remember a couple years ago, they released something called j. p coin, which was essentially designed specifically for this purpose. because whenever you have any kind of international transaction, you have to use a system is called the swift system, which allows you to be able to make those transactions across borders. it is a process, it's expensive, it's time consuming. it takes a long time to get it done. crypto currencies completely change that. and so what j . p morgan is saying, is that, yeah, if the central banks have their own digital currency, so c, b, d, c's, they will be able to follow the trail that's already been blaze by crypto currencies create a much less expensive prospect for banks to be able to send money overseas, and basically they're bypassing that swift banking system. and that was, that was one of the most interesting things i found about crypto currency in general,
when i started to learn about it was the importance of those cross border payments where remittance is, are so expensive, take so long when it can be done so quickly. and easily traceable through the block chain. now, a separate report indicates that one of the biggest beneficiaries of cross border cbc networks could be the association of south east asian nations. why is that? yeah, because you essentially have about 10 different nations that are constantly having to change curves and they all have their own currencies. so there's a couple of things that happen. you were mentioning that when you think about the process right, that money goes through when it transfers across borders essentially has to not only be moved from one place to the next. but you also have to deal with the actual currency itself and the differences in the pricing in order to make those transactions work. and that involves basically trading dollars for dollars trading, any kind of currency for another kind of currency and it becomes complicated. so the way you simplify that is you actually do it through the ledger that's built into crypto systems by going into those crypto systems and saying ok,
we all agree on the price based on our currency of this digital currency. then at the point of purchase, those issues for the currencies themselves are dealt with and then you don't have to deal with it. and basically it's moving from one place for the next and, and you mentioned a minute ago, but it's so simple. but you have to ask the question why it hasn't been done before? why did it take the, the private market through crypto currencies and digital currencies to bring this? why didn't central banks do this in the 1st place on their own? now they're running behind crypto currency and trying to, to essentially catch up with it and mimic what's already been done and we're working. and when we talk about this regularly bad, because when we talk about c, b, d, c, and you hear, you know, j. p. morgan embracing that idea, why so much toward c, b d, c is rather than any other traditional crypto currency. is it all about the volatility there? now it's about, it's about being in bed with the powers that be, listen, it is cvd, sees the central bank back digital currency. what does that mean?
it simply means that governments that can print their own money will soon be printing their own digital currencies. course i don't have to print them, right? they'll be mining them, mining their own digital currencies and all the concerns they have by the way, about the mining process and the cost of electricity. suddenly they won't care about that anymore when it comes to their own currency. but here's what will be happening is now you have a again, limitless supplies that are created. because unlike a crypto currency, like a big coin that has a set market supply that will ever be mine, central banks won't do that. they'll have limitless supplies of digital currency because that's what they do right now with the theocracies though, they will be able to mine those. and essentially, if you're a j. p, morgan, or if you're a mastercard, if you're any kind of big player in the space, that's who you want to be aligned with. you want to be aligned with the entity that not only has the ability to mine coins into infinity, but has the military power behind it to enforce that. and you just mentioned mastercard, because their ceo said on a recent call that the company is making plans to support c. b c's. is that
different of an approach supporting been supporting the traditional currencies like we just mentioned? well, it is a little bit of a different approach. one of the reasons for that is because you don't have to decide which currencies are going to be winners and losers. right? so right now you have thousands of crypto currencies out there. if you're mastercard, you're looking at that same or i which ones do we want to support who we want to support bitcoin, ethereal ripple, which? which ones do we actually one of the top 10 criminal courtesies out there? we're going to adopt all of those. it's kind of the same process that you have with companies like robin hood right when they're trying to decide which currencies will they carry on their platform. well, mastercard has the same issue. so what they're saying is, rather than even worrying about that, let's just plan for the inevitable because it is inevitable. the, the cdc, the central bank backed federal reserve backed digital dollar. and that's, i'm going to put all of our money behind. but what's really interesting about that to me is that mastercard is preparing the what a mean mastercard is helping to actually drive forward the creation of that cdc,
even though the federal reserve says we'll see if it ever happens, it will definitely happen. boom bus been swan. thank you so much for clarity on that story. you got it. and after the united states pentagon abandon plans where it's 10 year 10000000000 dollar jet cloud computing contract earlier this year, google is reportedly preparing a bid for its replacement. the head of google parent company, alphabet, cloud division met with pentagon officials earlier this week to discuss why the company would be a good fit for the contract, according to people familiar with the situation. google's interest in the project may come as a surprise after employees raise concerns about a pentagon contract, which would have provided its imaging tools for use in drones. a few years ago. they later promised not to use it's a i products in military weapons. the new 3 year contract is called the joint war fighting cloud capability, and will be split across multiple bitters. you will remember the jet, i contract was embroiled and legal wrangling between microsoft and amazon,
and time now for a quick break. but when we come back, auto sales have begun to come back from a summer beating, but has the sector completely rebounded just on the other side, will break down the latest figures. and as we're going to break here the number that the book, the me wayne la adult is always built on a structure that was created 1st in childhood. so without understanding of childhood relationships, it becomes very hard to understand adult relationships. and that's why it's incredibly important to be able to have
a basic understanding of what motivates you as an emotional b as a korea professional sport is much tougher on some than others. mission with my, by everybody here. so why would somebody believe me? i was just a little girl to price to to, to achieve really was, was proud to read on the paper this morning. usa swimming coach, arrested, allegedly had sex with a 12 year old girl. this happens almost every way we get calls at the office. i get informed about one of my greatest fears is someone is gonna start leaking all this together is going to be a 60 minute documentary about youth coaches in sports like gymnastics swimming here, is that documentary. i see it on our tea. it's
been 30 years since the soviet union collapsed, long miss global, other literature well the one to what the problem yet nuclear annual took so so shown where you swore trust on one coil or thumb. ukraine was one of the independent states that emerge from the ruins of a super bow. i'm doing awesome. good. would you also get on google greens? come a little more. surely, confusion must be acting less lucian with better lung or law. or else what is a is there is for so for the view, this is for so this, for the to scribble for finishing, it does ship a for apple. watch the past 3 decades been like the ukraine. eyewitnesses were, well the events, this will be more or less of judiciary, vicinity, tissue, chipotle, unusable. to know that ownership as i'm not sure, but i did that for months with no idea what else and what other forces with whom you shoot inch and machines im you put on the kid. woodard americans.
when is it shows us the most of us until at least take a look at you claim that he is out the gaining independence organism. gift with us again, unless you mean like unity retorted, live literature led to confusion ok of lush williston moment. so i welcome back as supply chain constraints have caused major issues in the auto industry, u. s. sales for the month of october, ticked up, showing signs that things may be getting better auto sales in october. we're up to 13100000 for the month compared to 12300000 from the month prior and september. now, along with the number of cars being sold, prices are also up. the average price of
a new vehicle is 20 percent higher than in october of last year, sitting around $45000.00. while the price of a used vehicle in the u. s. is up nearly 30 percent year over year to $30000.00. while this may seem like great news for the industry, many analysts believe that global chip shortage could last well in the next year. joining us now disgust is the car coach herself, lauren fixed lauren, our pleasure to have you on. what's the take away from these latest numbers? it all seems really good for the industry as majors, including toyota, are able to squeeze out a profit, but consumers are just being forced to pay more, aren't they? right, and that's gonna be across the board. you're gonna start seeing increase in prices on everything and with this chip shortage, you're going to see some impacts to the economy that people aren't thinking about for every vehicle that doesn't roll off the line, whether it be south career or stood guard, or even anywhere in the united states, that's going to be lack of money going into the economy and it could potentially
cause a lot of other repercussions. and plus we've got oil going up and everything else. it's just going to add up now and for consumers, we've got gas prices that are high, even though the cost of fuel is high, higher car prices are higher, like you just said. so you start adding all this up and for the consumer you have to be very aware to buy a new car. does it make sense? it makes more sense to maintain the vehicle you have because like you said, prices are just going to keep rising. and with the average price of vehicles continuing to rise, our automakers moving away from those lower priced volume vehicles. the honda civics, the toyota camrys that way we saw years ago. the key is whatever key is a little lighted and pushing it more is real, a control doing pushing towards more higher price vehicles in luxury vehicles. right. you're going to see more luxury vehicles that are fully loaded and also pick up trucks. and you're looking at the domestics, that's where the profit margins are. those are their cash cows. where there before g m were ram. that's where they're making their money. so you're seeing
a big push to selling the pickup trucks and also toyota with the tundra and the front tier, which is help them raise their profit margins. and then you're also seeing the fact that if it's fully loaded, like a mercedes or an audi, you're watching all those more. heavily loaded optioned vehicles. that's what consumers want because it's all it's left on the lot. you're not gonna find a lower margin, like you said, a key, a rio. 1 or a honda civic, they are selling them, but they're obviously the manufacturers need to sell those big profit margin vehicles 1st. and now the chip shorter has obviously weight on the auto industry as we said there. now we keep hearing analysts push back the projection for when those concerns may actually be able to ease. is this going to continue to be a problem well into next year or beyond, or do we have any idea at this point lower? it looks like it's going to be the end of 2022 for the chip shortage. there's really nothing we can do right now. we've got every manufacturer trying to come with another way to make this work. and what they're doing is they're focusing on bringing whatever they can get and moving that to like you were saying trucks and
luxury vehicles. but at this point, i don't guarantee a relief at all for consumers until the end of 2022. but my concern is there's going to be a huge glut on the market. once they catch up, everybody's going to be dumping products. so if you can be patient way to the end of next year, there will be some deals available. and that's what it said. the price is actually come down at that point if there is that glut vehicles because you know, when we talk about inflation throughout all the sectors that we've been talking about it in, in the last year. you know, what we notice is those prices don't come down when you talk about a 4 percent in place right now, like things kind of stabilize and within the deflation. it's just they stop rising at that point. but we're going to see in the auto industry, we probably will see the price is going down. well, i think we're gonna see more incentives at some point once we can get some production into the dealer. lots. once you see those empty, lots get full again with new products. they're gonna want to sell them. after 30 days, anything that sits, they have something called floor planning, and those finance charges can add up very quickly. and obviously, dealers want to sell cars and get more cars there as long as that pipeline
continues to fill. and that will take some time. you're going to see some potential deals coming on those more mass volume vehicles that we've been waiting on it and consumers have been very patient. but i also know they've been very impatient at the same time. and i want to hit one last story before we go, because there was that big story about hurts entering an agreement to buy $100000.00 tesla's to add to their fleet with a plan of being, being to rent, half of them out to ober drivers. but earlier this week, test the seo ill on mosque actually said there isn't a contract in place and they essentially are just buying these at the same price consumers are. and for that matter, right? demand, oh, go ahead. right, right. mark fields used to work at ford, i'm surprised, they actually didn't get the mach e. i was actually talking to afford executive about that over the weekend. and it's funny because what you're seeing is these tests are coming in and they're going to rent them out. and if over driver's want to work a deal with hertz that's between them, but there is no contract in place from what we hear. so and of course, deal on must, and he's not gonna offer them a discount because he's got inventory and they're going to get
a break from the federal government. absolutely, and this is a fascinating one too, because generally those rental car companies like hurts they do get a deal. they work out the deal with the manufacturer to be able to, to get them at a lower price. and they're paying the same price that you are. i will maybe not you because i know you got the inside track there, but i think it for it as well. lord fix the car codes. thank you so much for joining us today. thank you. and what began as a pipe dream of supplying the world with internet access is slowly changing, but it could soon become a reality. well, the latest approval from the federal communications commission, boeing is looking to move things for the aerospace giant has been cleared for entry into low or an earth orbit, satellites, or leo. this week the decision was cheered by boeing, but the measure was not without its own controversy. eli and musk space ex has filed a complaint, citing interference in the sector. it is as it has long been developing its star
link satellite constellation. those complaints, however, were swiftly rejected by the fcc boeing is currently planning to launch more than 100 satellites in the coming years to cover the u. s. and some of the caribbean territory. and that, that for this time, you can catch boom bus on the bat of the portable tv app available on smartphones and tablets in the google play. and apple app store by searching portable tv, portable tv could also be downloaded on newer model. samsung, smart tv and roku devices or simply go to a portable tv with the next time i me ah ah
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american nourish is suspended from work after refusing to take a cobit shots on religious grounds that comes as the biden administration. that's the date for monday. treat jobs to be extended to workers in the private sector. i. unfortunately, they deemed that my religious beliefs were not sincere. it's kind of surreal, honestly, because i love my job, and i have been a coven nurse for since the beginning. well, so i had in the program, germany per, per se that titan restrictions on the on vaccinated daily co bid cases, the word to all time records pushing the health care system to the limit a russian