tv Boom Bust RT November 17, 2021 8:30am-9:01am EST
bus next stoke, stay tuned for your mid week business. round up all in one place. get your fill right after the shortest of bricks. ah, when there are problems like the energy crisis, europe, illegal immigration on poland border or even when the wrong political party or politician wins. there is a culprit, always waiting in the wings. and that's russia. scapegoating. russia is the excuse used by failing western leads. ah
ah ah, with the living room, both the one business so you can't afford to miss, i'm been swan. i remember at jaguar in washington coming up, germany had discredited certification of the nordstrom to pipeline, sending gas prices surging and dealing another blow to the project. we'll take a look at how this affects the already strained energy supply in europe than we break down the virtual summer between the world 2 largest economy. president joe biden, and keesing things hawks are raising some hope for better time potential to remain
close bitcoin and other crypto currencies. take a hit is china ramps up its track down on crypto mining, calling it an extremely harmful practice to talk about the future of those digital point. we have a pack show today. let's get to it. where we need the program with the fate of the embattled nor stream to applying it is said to transport natural gas from russia to germany, germany, the infrastructure regulator, the federal network agency, on tuesday, suspended its certification of the project. it's a very big deal because as a se, winter is coming and the cost of energy is already sky high. now, while the pipeline has been the subject of geopolitical tensions between berlin, washington in moscow in brussels, it's bureaucratic red tape has gotten in the way. the german watchdogs reason for delaying the certification process is due to the swiss based company behind nor stream to needing to form a german subsidiary under the country's law to be granted its license for operation and still one certified the project will faith approval from the european commission to begin operation. now, amid the global energy crisis,
european natural gas prices have been rising in recent months and on the news that the latest delay prices rose by as much as 11 percent. and joining us now to discuss this is some other energy related news of the day is ad moyer. he's the senior market analyst at atlanta and david mcelhanney, ceo of mckelvey financial group. great to have both of you on talk about these important issues. now, do you see this spike in natural gas prices on this news? it's something that is just temporary considering. it wasn't clear when nordstrom too, would be approved in the 1st place. well, i think the bass case from any energy traders was that the nordstrom, too, would get in a finalize before the end of the year. so i think you're going to see that this is the natural gas markets are going to remain extremely sensitive to whether or not we have a cold winter and, and right now it's, it's a very tight market and i think you're gonna see politics are going to be at play here in your, in this i think see you probably investors be very,
a skeptical that am i. prices are going to ease. and i think the, the, the pressure is to the upside. and they think, you know, what russia right now is they're, they're holding all the cards. germany, they pretty much destroy their nuclear industry 20 years ago. now. 80 percent of their power is natural gas. so i think you're gonna see that this is going to really force the germans hands if we have a colder winter weather in there. right now, the markets are, i think still poise to possibly go even higher. yeah it's, it's pretty incredible. david, the 80 percent of germany's energy come from natural gas simultaneously, as we said before, winter is on its way. winter's coming, as they say. and yet we're looking at this incredible delay that could mean it's going to be spring time before we finally get to actually see natural gas flowing from russia to germany, into the rest of europe via this pipeline. so how big of a problem is this? considering that this isn't a problem that's in the future, this is a problem right now. yet to add to its point,
the natural gas is up 90 percent year to date prior to this announcement. so what happened today is kind of icing on the cake. this is chess and natural gas is not the only asset on the board. germany wouldn't do this to themselves coming into the winter if there wasn't more in play. this is geo politics, this is pressure, some of the issues and player on this. i think others probably less so does it strike you as odd that despite your desperate need for natural gas and the politically explosive burden of increasing energy costs in germany, that this new bureaucratic hurdle was erected? now, russia's not going to increase gas flows with the old ukrainian pipelines. that's clear because the quid pro quo for increased supplies has been nord stream to approval. so what else is on the board? it's possible that we haven't sorted out all the geopolitical tensions between t evan dc and brussels and moscow. but i think this is worth considering. maybe
it's the $100000.00 russian troops amassed on each cranium border that has something to do with the german action. think about this, there's domestic political considerations in germany which are being demoted there being sidelined. you get poland and bella, luce, that are, that are something of a distraction at this point. but who are the interested parties and what do they want? why has germany done this now? is it at the past of nato? is it brussels pressure from washington dc? is it really a precondition being set by berlin in this red tape bureaucracy which, which are the guess was describing supplies can be made immediately available if russia wants them to. and if germany wants or needs them to springs your worst case scenario. but i think here's where you're talking about, you know, gaz promise cegna. they come 6 months to take care of the paperwork in question. this is chess and natural gas is, is just one of the assets on the board. yeah, certainly sounds like an added. let's talk about oil for a minute. the international energy agency said tuesday,
it's much oil supplies to rise for the rest of the year. they're hoping that this will kind of ease rising prices. what's the situation there, and by the way, are we nearing the end of the oil? so why issues of economies are supposed to be transitioning out of the pandemic? well, right now, we're seeing demand to sell out pacing supplies. and i mean, we are getting, you know, a handful of accounts at each week, but there's still a severe market deficit that is going to remain in place. and right now i think the, all the drivers right are suggesting you're going to have higher oil prices. i think that the market was under this belief that you were going to have oil prices eventually kind of settle back to the mid seventies or even lower after we get through winter. and now it seems that many traders are anticipating that. now we're going to be stuck with 80 darla oil for the rest of next year. i think this market has seen the impact, you know, the flat slashing of cap backs and the lack of investment in new wells. and i think that you're gonna see supply shortages remain
a big fear which is going to keep prices elevated, going forward. so i think this market is going to remain fairly, i think, vulnerable to any supply disruptions. and you're going to probably see that i think oil prices there right now, little sensitive on whether or not we might get a, an s p r release, but that would only be various or term different prices. i think we're still going to see higher prices here, and traders need to be aware of that impact and eventually how that will impact the overall economy. and david to that point, because opec plus members, they've also been watching the talk of an oil surplus. if that's what it is with the cartel secretary general thing, they must be quote, very, very careful as they decide future output policy. what do you expect from opec here? do you see any change in policy? especially that says, i mean, maybe that surplus really isn't here. yeah, i expect to affect to continue to provide support for a position that protects their interests in the energy markets regardless of outside pressures. some of which is coming from the by did administration. that
means providing ample justification as to why they are not increasing production at the white house requests. so rather than peer appearance, intransigent, they've provided a justifiable concern from all opec members surpluses combined with increasing supplies that could make for significantly lower prices. and so, opec like any other commodity producer wants to maximize price and output in the present without jeopardizing future price and up. so i think this is where a biden's running a tight line. he has to appeal to his environmentally high strung constituents who would like to tar and feather him if he increases domestic fossil fuel production. so he's framing his inflation problem as an opec oil supply problem. meanwhile, you've got opec saying, now we have to tend to our own business, of course, ad moyer, senior market analyst at atlanta, and david mckelvey, theo, of mac of any financial group. thank you both for your insights today. thank you.
well, virtual summit between president joe biden, the president, using ping of china, resulted in what seems to be a whole lot of lack of clarity over the issue of taiwan. the 3 hour long summer was designed to bring together the leaders of the 2 countries. they were supposed to discuss a variety of issues including supply chains, human rights, and climate change. past is prologue, i am sure that today will be discussing those areas where we have concerns from human economics to ensure in a free and open endo pacific. and i think it's very important, as i've told other role leaders, and they ask about our relationship, is that we've always communicated with one another very honestly, candidly. and we never walk away wondering what the other man is thinking. and i think that's an important ingredient. this relationship to be open and candid when
in terms of our relationship cheap out of how and not only take care of their own domestic affairs, but also assume our international responsibilities promote the noble cause and development of man. gosh, this is the common vision of the people, china, us, other countries in the world. and it is also the common mission of 2 layers of china. but as we reported monday, the center of the summit was a discussion about the future of taiwan and china increased push for reunification . a day after the some of the chinese foreign ministry, spokes person said that president biden made it clear that he does not support taiwan independence during the meeting, president biden admitted again, you know, the united states, and here's the one china policy and does not support the high ones, independence didn't go. ben. what does this mean for taiwan moving forward? i mean, it appears that the white house has basically back anything to protect taiwan and
this. all right, so the question is going to be, who do you believe? do you believe the president, by naturally didn't back taiwanese independence? i think that's probably doubtful, but here's what we do know. we do know that according to the white house, the president was supposed to lay out what they called guard rails that were kind of let china know what lines to not crossover. but apparently those guard rails never came up. and i think that is the key point here. so let's go deeper on this issue when bringing dean john quote to the miami, her business school to discuss these issues with us. i think, well, it's good to have you hear. how will this issue of taiwan impact economic relations between the u. s. and china moving forward? because again, whether president biden conveyed a stronger message to china or not, and maybe that being debated right now. china is certainly claiming that the u. s. has not well 1st, it's very important that the tone for the, from the top was set constructively in this conversation. and that tone from the top will ensure that the negotiations that occur among junior bureaucrats
in various fields, whether they be military trade, taiwan will be construct, will be undertaken and cordial and respectful way. some of the rhetoric over the past year has been pretty intense. as far as taiwan is concerned, i regard this as the most important potential flash point in the us china relationship. it's a flash point because any mistake in tie when he's as space or any mistake in the south china sea, where there is of course increasing naval activity both on the chinese side and on the u. s. side. any mistake can result in a very, very serious diplomatic situation that could disrupt world mark. it appears a president biden as walking back his statement of a month ago that he supported taiwanese independence. he's now
moved back to the traditional posture of what we call strategic ambiguity regarding taiwan. but it's important to note the president sy of taiwan recently announced publicly for the 1st time that us military troops were on tie when he soil training chinese military. and it's also important to note that taiwan semi conductor has under pressure from its customers. i thing to a large degree announced a major plot construction projects in both japan and in the united states to diversify its supply chain outside of taiwan. and because both presidents agreed that there needs to be greater cooperation and this is something we've heard time and time again. whenever we're talking about the 2 sides. i mean, sometimes you get a little more hostile than that. but most the time it's about cooperation. but how
does that cooperation take place under the shadow of military action? while the military action is significant, and we have to understand that within the china, within the chinese communist party and within the red army of the people's liberation army, there is a constituency of individuals who are very aggressive with respect to ensuring that the rise of china and who are, you know, if not trigger happy, a lot more inclined to military action and responding militarily to provocation. and may be the top leadership in beijing. so you know, president, she, his clothes, his colleagues do have to cater to a significant constituency of,
of strong nationalists and militarist within the chinese communist party. so it isn't, it is an important problem. yeah, for sure to doesn't business groups though are putting pressure on the vitamin ministration to consider removing terrorists on china. they say this will help to ease surgeon inflation. not sure it will help with that, but treasury secretary janet yellow and said recently that such a move is under consideration. so here's the question for you. would removing tariffs actually impact prices prob, probably not as greatly as one would imagine. the 1st reason being that a significant portion of the tariff cost, which would have been ordinarily passed through to us consumers was actually absorbed by the chinese manufacturers and supply chain through greater efficiencies and production. so paradoxically, the tariffs have the effect of forcing greater productivity and chinese
manufacturing, a sort of counter intuitive result. so the, the tower of student flow through, in their entirety to the u. s. consumer. and as a result, if they were withdrawn, it would not have a significant impact. we need to distinguish, however, between the trump impose tariffs, which were on top of the existing base of tariffs and the, the existing base of tariffs do differentiate significantly between one type of product or one class of goods and another. so overall i would say though, the answer to your question is no, no significant impact on us inflation. dean john garage of the miami harbor business school. thank you so much. thank you. and i'm now for a quick break, but when we come back, bitcoin and other major crypto courtesies fell into tuesday,
this is china se planner that it will continue to clamp down on mining operations. we'll discuss what this means with our very own christie. i. that's a good break here. those numbers at the quote with and he really is something they cause right on police report. it's an all cash in december 2020 a group of anti fascist. fill out a film crew access for 3 months. i feel like if people, organization, if an idea that you must be opposed to channel out the gate while they may come with their faces. but they can say what they believe in. we believe in helping our
community. we believe that fascism is one of the major threats to the united states as gotten reuben, this is a chance to see who and t for really are in order for me to extract my 1st amendment right and say that my life matter, i have to be on to the teachers that are all american, we can't trust the police. we can't trust the government. we can't trust anyone except ourselves to protect ourselves in for an hour ourselves to be more efficient, quicker with our transactions. but with that comes a trade off. every device is a potential entry point for security attack any machine because it's an extension of traditional time. the defenders have always been one step behind the attackers with him. this one comes option in the offering. it's not
a matter of, if it happens, it's a matter of when who when i was wrong, when i was just a shape out the same becomes the advocate and engagement. it was the trail. when so many find themselves worlds apart, we choose to look so common ground. ah, and welcome back, bitcoin has dropped again falling below the $60000.00 mark. and once again, that drop seem to be tied to statement by the government of china over what they call quote, extremely harmful crypto mining. yeah,
but there is another factor here as well. the u. s. is one trillion dollar infrastructure bill was signed into law and it includes a host of crackdowns on the crypto industry. those factors may have caused bitcoin to drop by as much as 7 percent. and the theory him by as much as 5 percent. let's bring him to moscow, hosting crypto analyst, christy i to explain. christy. i was talking about this infrastructure bill because one of the biggest challenges, as we've talked about of this law, is it redefines who and what a broker is, how messy is this going to get for the crypto industry? oh, it will get very messy. and the bill is mainly meant for the ira to have this well defined definition, but it ultimately risks asking network actors to behave as note operators in order to report identifying information for cryptic transaction that they have absolutely no way of gathering. like actually no way of getting because there's no centralized database recording your email, your phone number, your social security number, except when you log on to send it to someone. so this bill was clearly written by
someone who has 0 understanding of the technology itself. so this will get very messy for crypto operators in the us, which is why so many already have chosen to abandon us customers. so things like hello yes, next circle. finance. change the just to name a few. all of them already packed up and was like, not worth that anymore. so regulating like this through fear and ignorance is simply going to drive the next wave of web innovation away from the us into other jurisdiction that are implementing more informed regulation. so this provision is going to get very must be and i think there will be a lot of pushback from the industry about it. asking for a clear definition. right now they're just throwing things against the wall to see what it. and i don't think this is going to stick because there's no way to enforce it. and even with the current state of regulation, here in the us, it's just in thing coin base is now pushing for a single crypto regulator saying that they currently have 53 just for the u. s. a
la coin base operates and over a 100 countries and the u. s. is the only one like this. we have the fcc and fcc treasury, all the state regulators and all the money transmission, licensing plus lending, licensing, $53.00 regulators for one jurisdiction. that's insane. so it's only a matter of time before coin missed throw that the chance and gives up on the us altogether. and if you, because you know on friday of last week we had on former c f t c chair. i'd crypto dad if you will. christiane carlo and he basically made those same points which there is such a regulatory environment where there's so many regulars trying to get on this. and meanwhile, we've just been left behind on crypto as a whole here in the united states because we're not ready for it. and it's no surprise that congress doesn't know how to regulate tech in any way. meanwhile, on that mining side, why is trying to claiming it will clean up the crypto mining industry. when most of that industry in china is already gone or, or is it? well actually there's still a lot of miners left in china back in may, trying to crack down hard on mining and trading,
but we called the great mining migrations. so they went to texas, switzerland, canada, anywhere with cheap renewable power. that's also the friendly. so while the actual data for the global distribution of mining power is still unavailable, as soon as our that 50 to 60 percent of trying to minors have left. but a good chunk still remains. just like when trying to try to ban google fit of quitter, you have about 60 percent population complying. but the other portion is really crappy, a finding, an alternative. so as of now, only government electricity plants have restricted mining because those are being monitored. but private ones are continuing to service finance. so this is just like the us trying to track down on the brokers making brokers the bad guys and requiring them to verify their customers. private electric company aren't going to verify what you're using as power for. they don't care, they're just like brokers, as long as you're a good customer, you pay your fees, your bill. they're happy to service you. so in fact, given this crack out,
i'm betting that the private electric plant are having a blast charging premium rates to the miners. we don't want them, so it's actually a win win for them. the private company gains an invaluable customer and the miner doesn't have to relocate. it's perfect and yes, the government will try to crack down again. but i think the focus will start to shift away from the miners and a good portion have already left. you know, christie, china, when there's a lot to say about them and what they've been doing with the miners, but this going back to this infrastructure bill and something you said a minute ago. you said that the u. s. is regulating with fear and ignorance, and i think that's such an important point, right? that it just doesn't make a lot of sense what they're doing and it seems like there is an intent here to destroy the crypto industry in the united states. about 30 seconds left. where does the industry go from here? is it, is it going to be abandoned ultimately in the united states? you believe? i think right now is heading that direction because coin meant, as i mentioned, 53 regulators. and even if we think about it, even though they are listed,
are publicly traded company and they're huge. now technically they are still kind of the they and they have to pay all the fees to get all these licensing fees, money, transmission fees and everything. so it's absolutely insane for a company like that to survive and thrive. and do this is even bro, in the there's absolutely no worth available if you keep on throwing regulation. so eventually i do think most companies will have to leave you a short discontinued the bearer of bad news. boom, bosco hope, christie. i thanks so much. and we finally, we all know that a contentious divorce can be a costly affair. but in the case of real estate, mobile, harry mac, lo and his wife, linda, the proceedings were highly lucrative in the end back in 2018, a judge ordered the couple to sell are they acquired during their more than 5 decades of marriage. and the collection fetched more than $675000000.00 according to the other be making it the most valuable single owner option ever. ok, so what exactly was sold? well 1951 number 7 by mark roscoe garnered $82000000.00. how about that?
the auction house says that the item was created as rothko developed his signature style of abstraction and mature mode of artistic expression for all you are, but you know what? that means. any war holes 9 marilyn's the sold for $47000000.00. you know what this one is? it may be one of the most iconic pieces in the auction. it was created in 1962 shortly after the death of marilyn monroe and jackson, public number $17951.00 from a series known as black paintings, which when for $61000000.00, who was buying this stuff, fun fact, it was the 1st public to be acquired by the metropolitan museum of art in new york . and that's it for this time. but the catch is that boom or portable tv will see next time me
when there are problems like the energy crisis, europe, illegal immigration on poland border or even when the wrong political party or politician wins. there is a culprit, always waiting in the wings. and that's russia, scapegoating. russia is the excuse used by failing western league or new york. it's really what america is about ah, when our mayor took our place, he was elected because of his campaign on our city, being a tale of 2 cities, the haves and i have not. and those who have not are usually the ones who wind up being buried on hard. i. the city is always wanted to forget about hold island. city is wanted to forget about the people who are buried there. it's wanted to
forget about the fact that there is a potters field, that there is a place where difficult stories are hidden. the fact that we're using inmates to maintain this active burial site, where 1000000 souls are buried. where so much of new york city history is buried is documents of the inequality that has existed in the city for centuries. ah, ah.
ah, turning off the taps bella roost temporarily shut, send oil pipeline, which runs from russia to poland and into the e. u. on schedule maintenance is the stated reason for the holt, but comes at a time of heightened tensions between men scan brussel. on not latter issue, a sharp divide emerges over poland tactics with front slumming plans for a massive wall to be built on the border. we look at the tough line being taken against people crossing from belarus, while migrant boats are freely crossing the mediterranean. and germany considers imposing drastic kobe rules on the unvaccinated, joining a growing list of countries to do so. as the government struggles to coordinate, it's pandemic response. i made up power truck.