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tv   Boom Bust  RT  November 24, 2021 11:30pm-12:00am EST

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oh yes, the queue moments, she slightly, as she shared with the boon, but though one business show you care subordinate branch bore and i'm rachel blevins in washington. coming out of the u. s. continued to grapple with skyrocketing inflation and supply chain shortages president by that has reiterated the need for the autonomy as a federal reserve. we'll discuss what is the new era for germany as a nation? is that to inaugurate a new chancellor for the 1st time and yearly 2 decades, will bring you the latest from on the ground in berlin. and later the i m f is once
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again pushing back against el salvador. this is the you'd bitcoin as legal, tender. we'll talk about it from fact show today, look the right to it. and we lead the program with the majority of american thing. they are now feeling the impact of inflation. as the holiday season begins. the pressure is on for the federal reserve to combat rising prices and to take more action now that president joe biden confirms he will re nominate j pout. and in addition to the political divide, feeling like it is growing more than ever at times, divide between the poor who are struggling to survive. and the rich who are watching their wealth multiply continues to have an effect on the nation. but while americans get back to work and weekly jobless claims hit their lowest point in 50 years, workers are entering a world where they are forced to comply with vaccine mandates in order to survive. yet, even with the roll out of coven vaccines, the u. s. has actually lost more lights to the virus in 2021 than it did all of
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2020. as it becomes clear that cove it isn't going anywhere anytime soon. and americans are now being told that they need booster shots. all of this as the pharmaceutical companies behind those shots are making unprecedented profits with pfizer bio tech and mcdermott. i'm making a combined $1000.00 per 2nd off of their vaccines. joining us now to discuss it all, which is will posted economic update, and peter shift chief economist at euro pacific capital. it's great to have you both on the show today, professor wolf. let's start with you. what do you make of the current political divide as the average american is being forced to pay more for just about everything they already couldn't afford, while the riches companies in the country are profiting more than ever? well, it's an amazing thing to do to the american people put you through 3 crashes in the, in the 1st 21 years of this century, put you through the worst public health disaster probably in american history. but
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at least in the last century, you come struggling through that with all the pain and all the suffering that so many of us had gone through. and then you hit us just as we thought may be. we were coming out of it. you hit us with inflation in which the prices are rising faster than the wages. this was already a problem. this will drive people in even more debt. busy if you're able, in fact, to run it up a bit more. so it's an economic disaster, it's a sign of an economic system to be blunt. that really isn't working very well. and that now mr. biden latins to be the president, stuck with the inflation that look is been coming down the pike for quite a while. now, given the amount of money being printed relative to the amount of goods and services not being available for sale, he has to react to the inflation. but if he dares to raise interest rates,
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which is what some are suggesting. well, them, the debt that is higher than ever in this country is going to become an unbearable burden. this is a system that is rapidly reading, reaching multiple that ends at peter. what's your take on all of this? every we've watched officials claim inflation was transitory per month. and now of course, the bio ministration is continuing with this business as usual with the renominated of j power out of that plan to the divide. well, you know, i actually agree with a professor. i don't think that the current socialist economic system works, you know, central government planning, manipulation of interest rates, the constant creation of inflation. inflation is not new. that's how the government has been bailing alpha markets from the crisis is it created with its subsidies and artificially low interest rates? i. so now the inflation is moving from financial assets into real goods in
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a way that governments statistics can no longer hide. because the actual rate that prices are rising is probably twice what the government admits. and this is not a transitory situation. this is the prick the tip rather of an inflationary iceberg . and what we need to do is abandon the system we have now and go back to free market. capitalism lays a fair sound money. that is the only path back to prosperity professor. well, but i want, i want to respond to that because, i mean, peter kind of started that comment out by calling basically the by the ministrations agenda. a socialist agenda, add you as somebody has written extensively about socialism, i would say you would strongly agree that biden's policies are a socialist agenda and he more in line with what would be free market capitalism? correct? certainly by putting mister powell back in there, mister powell has been,
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susie asked, a supporter of the capitalist system, a very vocal opponent of the socialism. one could argue whether he understands what it is he's against, but nonetheless, he's clearly against that. there's absolutely nothing in mister biden's portfolio that has anything to do with socialism. he's proud of having been the senator from delaware, which is the home of most of our large corporations because they're so favorable. but i don't want to get into debate about what the words mean. i think the important thing is that if they were to go backwards and i agree with peter ship, what he's proposing is that we go backwards, which is a position i wouldn't be so eager to support, to be as polite as i know how i want to go forward, i want to ask and to answer that question, what are the real causes of being in this debt? and i know it's fashionable to blame the government. but, you know,
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i look at the american government and i see something that's a creature of the private capitalist system and always has been that that creature doesn't do his job real well. that in fact, the government can sometimes make it worse than what it was. doesn't change the basic relationship, which is the people with the money control, the government, and they have in the history of this country. and they are at least as in, responsible for the end as anything the government every did. if biting were a capitalist, he would be advocating for less government, not more. he would want to cut the government spending not dramatically increase it and power was not part of capitalism. he is the antithesis. this is central government planning. this is price fixing of interest rates. the federal reserve has nothing to do with capitalism. under a capitalist exist on the market. we've said interest rates, not the federal reserve, and under cap close them. we would have found money, not the money that's manufactured by the better reserves. so your problems are not
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with capitalism. there were the socialists, institutions that are creatures of government, professors go ahead and respond to that. well, you know, it used to be a private capitalist economy early on and because it had so many problems it couldn't solve. it created the very institutions you not want to see as having drop from the sky. they didn't, they created the federal reserve back at the beginning of the 20th century because the monetary system of this country produced a panic every 15 minutes that couldn't be coped with these in his jaws. very look, wait a minute, let me just finish the point. it's like every corporate, when you will destroy economy paper, let professor will finish and then we'll get right back to your response here. right? well, you know, this is an old conversation. well, let me, let me summarize it by and by the following. over the last 30 years,
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the most rapidly growing economy in the world is the people's republic of china. the united states doesn't come close, they grow their average g, d p 6 to 9 percent a year. we do 2 to 3 percent. there's no question that they are a socialist economy. they call themselves that we call them that they're able to grow way better than the united states is. and you have to face these realities rather than redefining your language, to kind of try to get out of the uncomfortable position that these realities represent the problems of american dollars. and not only could the government, this demon ization of the government relieves corporations from all their responsibility as if all the mistakes and all of failures come from the government . peter, professor communism failed in china. that's why they abandoned it. yes, it's still a communist party, but there's actually more free market capitalism happening in china than there is
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in the united states. that is the problem. it's when they went away from cap, from communism and embrace private property and profit and unleashed entrepreneurship. it's private capitalism that is striving in china despite the communist government. what we need is more capitalism. here in america, the problem is we're moving more in the direction of the policies that the chinese abandon pick up. yes or what? by 30 more seconds for you on this segue here. the chinese didn't abandon anything . the chinese continue to control their economy. a huge public sector, much larger than anything of the united states, no prospect of that going away. and in the last 5 years, when they've had more private capitalism, their economic growth has slowed down. so the logic of your argument doesn't hold and hasn't done so for quite a while. you want to go back and check. all right, i'm going to jump in here really quick. we're going to continue this conversation
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on the other side of the break professor richard wolf, and peter shift. thank you both for your time and the world's 4th largest economy is preparing for a new era as olaf shows as that to take the role of german chancellor from longtime leader angle and merkel, merkel who has served for nearly 2 decades in a row. will we replace a swearing in ceremony at the beginning of december, but just who is olaf shoals and what effect will his newly formed center left coalition have on the nation's economy and foreign policy? while for a full scope of the situation, arches, peter, all the brings of the latest from berlin. as being stroke, it would seem between the social democrats, the green party, and the free democrats that would see all up schoultz, replace anglo merkel as the next chancellor of germany or lap sholtes, the as social democratic candidate for the job in the last election in the government, that angler merkel headed before this vote, he was the finance minister also the vice chancellor in not group there and the
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talks have gone on for quite a while. it been, it was 8 weeks since the ballot here in germany. and they've been in these negotiations since around october time. it will be $73.00 days if it is announced later on as we're expecting that this deal has been struck. that's a lot better though, than the last time around germany had to form a coalition back in 2017 to 171 days for anglo merkel to come to the grand coalition that she ruled under. and when it comes to finalizing this though, what we're going to see is the social democrats of having a extraordinary party conference that will be held on the 4th of december, where that members will get the chance to vote. the green party said they're going to be putting it to their membership, and the free democrats have said the 5th of december will be the date that they will be looking to rubber stamp. they steal. but what does it mean for germany? well, olaf sholtes will be the new chancellor in terms of who's going to be in what job
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and how the, the cabinet is made up. there has been a leaks coming out. it seems likely we can expect christian linen, that of the free democrats to be the new finance minister. that's a job he has coveted for a long time. also coming out of these meetings, there's been very few leaks, but the leaks that have come out of suggested that honestly in a bad bulk of the greens would be the new foreign minister. and that would be a big, big policy gain for the green, sad to achieve that type of ministry in the new government. the green party, though of been the ones to come out the soonest. in fact, to say what they think of the announcement that there has been an agreement on this 3 way deal. they seem very happy with it. indeed, in fact, a green party source is saying that there was a new dynamic on climate policy that's being agreed during these coalition told that climate protection would be built into every facet of german government policy
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from agriculture to transport, the construction and beyond. it also seems likely that we can expect to hear that the, the phasing out of coal power in germany being brought forward 8 years had originally being set for 2038. this new government, it would seem, would want to do it by 2030. it's. i'm now per quick brag, but when we come back after logic, but quite a legal center and el salvador, the i, m f, is once again warning against the practice. just on the other side. when to bring back our expert economists to discuss the prospect that's going to break those numbers with mm. with
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oh, the wrong one. 0. just don't hold. any world to shave out. disdain becomes the attitude and engagement equals the trail. when so many find themselves worlds of horn, we choose to look for common ground. ah sure don't seem an official. i'm with the spiritual someone at the school to check with
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the wash of the discussion with people yet the makisha posted in this. there's actually a lot, i'm giving you. besides bexla me at the within and other sheets i can usually sit almost by you. so what i'm going to look up in cities. it took us once and she lives right? yes, the key moment sich, shes leeway asher. i saw a message from an unknown account, it had a self re with my passport as its profile page. i saw pictures of my documents. it was they also sent a credit contract. i had just 3 days comply with their demands. if the, if i didn't send money i, they sent up an online hate campaign. i was supposed to be
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a very dangerous man with welcome back. just days after the president of el salvador announced plans to build the world's 1st big coin city, the i m f is once again pushing back on it's moved to use the crypto currency as legal tender in the country. bitcoin eventually became legal tender along with the u. s. dollar in el salvador. back in september, the nation has touted the crypto currency as a means to help millions of its citizens who sang remittances from abroad and its ability to bolster tourism. while the map has been critical of the move from the start, the central bank double down on monday, writing quote, given bitcoin high price volatility, it's used as a legal tender tail, significant risk to consumer protection, financial integrity, and financial stability. it's used also gives rise to fiscal contingent liability,
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adding that because of those risk bitcoin should not be used as a legal tender. so let's go ahead and bring back our expert panel professor richard wolf and peter shift to discuss. now i think you gentlemen might be able to find some common ground on this, but then again, i've been wrong in the past. peter, i do want to start with you on this one. we have you on the show pretty regularly, and we really appreciate that. and i believe it's fair to say you are exactly a fan of the us dollar, a fan of crypto currency, or even central banks. so what is your take on the situation? well, you know, i usually don't agree with the i m f. but in this circumstance i do you know, i'll salvage or has a lot of problems now? it has another one midpoint. i think this whole thing is a gimmick. i think a lot of the big coin wales were able to influence l. salvatore, in order to help drum up more enthusiasm for the crypto currency to soccer in more buyers. so the larger holders of big coin who got in earlier at much lower prices,
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can sell into the hysteria that they're creating, partially because of this idea that, oh, it's legal, tender, salvador. and this is just the 1st step of many, and that every other nation is eventually going to follow in el salvador footsteps . and it's all the hype that they're using, but you know, it's going to be cost, salvador, a lot of money. people are going to lose money. the government is going to lose money. it's going to just be a disaster. now professor wolf, i want to get your take on this. and i know we don't head on crypto too much with you, but where do you stand on all salvatore's adoption of bitcoin as legal tender as well as the i m. s. push back against it? well i, i guess i'm a little bit close to peter on this one which may surprise him and it certainly surprises me. but i think for different reason, the way i see this is that el salvador with all due respect, is a country for whom this bit going. gambit is like a hail mary pass in
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a football game. their country is an economic disaster for many reasons that are not there for, for some that are, they are desperate as are many countries in what we used to call the 3rd world, but certainly many and central america around el salvador. their situation is horrible because nomic lee and their prospects are not much better. so they're desperate. they're trying to see whether may be something could come out of this. but think of the less as a considered policy looking into the future. it isn't that whatever they say, what this is is a hail mary pass, hoping that by some unimaginable coincidence of bounces, what they are doing will make their situation a little bit worse. but as the i am f correctly says,
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they're taking an enormous chance, the volatility of this thing that they're willing to base their economy on is by itself a cautionary sign that you're taking enormous chances. but you know, you do that when you throw that pass up in the air because no other thing could possibly save you professor. well, i mean to that, no, i guess it feels like the math is pushing back against this because the math only likes a developing country. what you said was the former 3rd world. they like that country to be beholden to them. and that's kind of the way i tend to see this. yeah, it's beholden to them, but more typically, it's beholden to the whole system that has been set up going back at least as far as bretton woods, after the 2nd world war, the global financial system. first with fixed exchange rates, now with variable exchange rates with a few central banks controlling pretty much everything in
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a coordinated game that benefits some countries of course, at the expense of most others, of course, because that's the way capitalism has always worked. they are in el salvador are on the wrong end of this game. they want to upset the game because it isn't working for them. and you're quite right. the i in that is simply part of the apparatus of the status quo that wants to squash this. and will use whatever arguments they can, as they have argued against the whole host of other steps that countries like el salvador have taken once you're in that game, once you play with the big guys the way they've organized the system, you're either desperate at the bottom like el salvador, or desperate at the bottom, throwing hail male, hail mary, passers, which is what salvador is doing with the bit toy game. now here i do want to get your take on that. and i know a lot of times when we talk about crypto, it's often as a store of value, but i'll, salvador has made
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a point of the savings off of cross border remittances. so is there a chance it could be a good utility? absolutely not. there are much better ways to do these remittances without getting involved in bitcoin. look, i agree with the professor. this is a hail mary. unfortunately, it will be incomplete. you know, i also agree that you don't want to get into bed with the i m f. they've got a horrible track record of making big governments, bigger. el salvador isn't a lot of trouble. what they need is a dose of free market capitalism. they need massive deregulation. they need the less government. they have to free up the entrepreneurial spirit of that country. and instead of embracing bitcoin, they should have brace capitalism. that is the way out of this mass is, you know, don't deal with the i a math, just go for sound money, not big coin, and be a bastion of freedom. you know, in a sea of socialism down there in south america,
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i mean there's some countries that have seen the light and moved in the right direction. and el salvador has to join them to come back full circle to our 1st segment, professor wolf. i give you the response to that while very simply, for me, el salvador needs to radically alter the distribution of wealth and power inside that society. that's what's kept it in the doldrums. it's been in the refusal of the few people who own and run that society to give up any power at any time to the mass of people. that's the problem. and those people stay on top because of the capital is private enterprise economy that they have always run there using whatever institutions of government they can to keep that system owing. peter, we've got about our doors, not too much capitalism, too much. capitalism is never the problem is government. if you really want to see
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a more fair distribution of wealth, only freedom is government that is responsible for the problems that you're concerned about. and government will never solve the making government bigger is not the solution to government created problems. all right now, professor, well you have the final work. it's got about 32nd book. while i hope, as i've said to peter before, i hope he gets paid well by the corporations for deflecting the criticism that they deserve onto the government. who all after all, are the puppets for which the ceo of our country are the puppet tears. gentlemen, i know we've got a corporate. i don't we try to have all the world's problems here. but unfortunately we're out of time. i appreciate you guys being such a good sports here. professor richard, well, host of economic update. peter shift, chief economist, the global strategist with euro pacific capital. thank you so much. thank you. and finally general motors. and now that will begin deliveries of it. electric gmc
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hummer in december of this year. now the development of the all electric truck was huge after gm stopped making the gas guzzling su, be back in 2010. now edition, one of the hummer will have a range of around 300 miles where they starting price above $100.00 grand. meanwhile, the global head of gmc said reservation for the new vehicle increased by 7 times after president joe biden, and visited the plant making hummer. last week he added that website traffic was also up to 130 percent after that visit. so as hum are going to make a come back at that price. my goodness might be, but i don't think this is an odd thing because the president of the united states, obviously, you know, you go out, you talk about american companies, american manufacturer, american jobs. that is, your job is the president united states, russia, your job is to get behind the wheel and start selling these things for him. yeah, that's a good point. i'm interesting to see if they start calling at the bite and hummer once they finally get it rolled out. for this time, you can catch boom bus on demand on the fordable tv app available. smartphone
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tablets, google play in the apple app store by searching portable tv. portable tv can also be downloaded on samsung smart tv, roku devices, or simply check out that portable tv. well see you next time me . ah, ah, is your media a reflection of reality? the in the world transformed what will make you feel safer? tyson lation community, are you going the right way or are you being that some with direct?
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what is true? walk this way. in the world corrupted, you need to descend a join us in the depths or remain in the shallows. did you know that this is the 400 year anniversary of the very 1st bank, steve? and think about that 400 years of thanksgiving in north america. really an incredible miles down it really is no thing the cars right on police report, if you can in december 2020, a group of anti finishes. fill out a film crew access for 3 months. so like if people organization, if an idea that it must be opposed that channel out the gate while they may kill
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a case of unrest and looting gripping the french caribbean territory of guadalupe. it's sort of a tough new coven restrictions. it's ultimately fueling local hostility to be authoritative in paris. germany is next counselor, olaf sholtes calls for compulsory co feedback seems as daily infection skyrocket to double the spring peak and politicians class with eco activists in canada. after a leading campaign of warner, that oil pipelines could be blown up. if the government doesn't take action on climate change with.

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