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tv   Boom Bust  RT  December 2, 2021 3:30am-4:01am EST

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low as inflation take the poems that nation as well. we'll take a look at how the government is responding to the latest losses and we're crypto currency could come into play. then europe is getting a new insight into his plans for a global gateway project, but will it be enough to compete with china and road initiative? we'll discuss it all next. we have a lot to get here, so let's get started with the program with what has been a bit of an up and down week for global markets as investors way the impact of the latest coban, 1900 varian, while markets elsewhere tended upwards equities. here in the united states turn negative mid afternoon on wednesday, this kansas treasury secretary janet yellen and federal reserve chair j. powell testified on capitol hill for the 2nd day on their institutions hand handling of corona virus release. during his comment to congress on tuesday power said the fed may have to look a that rolling back quantitative easing at a faster pace than originally planned. but at this point,
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the economy is very strong and inflationary pressures are high, and it is therefore appropriate in my view to consider wrapping up the paper of our asset purchases, which we actually announced at the november meeting perhaps a few months sooner. and i expect that we will discuss that at our upcoming meeting in a couple of weeks. and with inflation rising well above the feds threshold of 2 percent . for the last 8 months, the head of the nation central bank finally admitted, rising prices could be more than transitory a word he has repeated over and over recently. so i think the word transitory has different meanings to different people. to many, it carries a time, a sense of, of short lived. we tended to, to use it to mean that they won't leave a permanent mark in the form of higher inflation. i think it's, it's probably a good time to retire that, that word and try to explain more clearly what we mean. and for more on this, let's bring in boom, but co host chris, the i. now christy,
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how did say they will continue to keep an eye on new data, including jobs, numbers, inflation data, and the impact of the crime before taking a decision on q e at next month meeting. but with so much uncertainty, what are they seen that could constitute speeding up this taper? i mean, for one and a good thing that they've now retired, the word transitory. i think it's dragged on way past its expert already. but in any case, there are some very obvious signs as to why they should be speeding up this tapering effort. obviously, we had other control insulation, nominal retail sales, and cor capital good shipments. still remain about 15 percent above and years ahead of their pre coven trends. which means that global policymakers way over shot with their stimulus. so the supply chain broke early on during the pandemic, and then upstream suppliers were then bull whipped by the massive volatility in point of sales force and demand. and now the f. c is finally starting to focus on the problems caused by the money supply chain rather than blaming all of these
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economic imbalances on just supply chain issues. and then secondly, the timing most likely also has to do with the fact that bite in and now it's power reappointment to the fed chair. so his job is once again safe and he potentially feels more freedom to act. and now with the omicron berryanne looming in the background is the perfect opportunity to send a more hawkish policy message. knowing that he can ultimately quickly pull back and backtrack later on. in order to be more dervish tone, if the covert scientific data work. yeah, there always seems to be something to blame there and i know you mentioned powell and his use of the word transitory. and it really does feel like both powell and the said have been a great length about saying inflation will only be transitory. and of course saying that for so long now, of course now he's admitting it's time to retire it and he said wednesday that it may not start to stabilize until the 2nd half of 2022. so do we have any idea
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seeing now that is pushing back these projections? well, power believes that the micro very hands on the recent uptake in covey cases poses a threat to the u. s. economy and kind of muddy the already uncertain inflation outlook. so the new variant now poses another risk to employment, and in case it becomes more severe and businesses need to shut down again. so now you have greater concerns about the virus, reducing people's willingness to work in person, which would then slow progress in the labor market and ultimately intensify supply chain disruptions. and people might also start to hoard products. again, consumer staples electronics, other goods ahead of time. and this will continue to exacerbate the situation and further drive up prices and inflation. especially if we were to see another lockdown, in which case electronic goods that all have all have the already in short supply microchips, they're going to be the 1st to be snatched up. now chris, they want to go back to kind of what we were talking about there with the increase
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on the taper. you know, now we've been seeing the last couple of days, markets here in the united states. they've been kind of up and down the last 2 days . we're actually seeing them go down. i mean, are we looking at, if they increase, you know, pulling back that queue, if they pull it back faster, that is to say, are we worried about a tape or tantra? right now, i don't think we're going to be worried about a tape or change because there's already so much volatility in the market. and the messaging has been very clear, half of the market has wanted them to taper earlier. so i think that they have successfully sidestepped this entire tape or tantrum risk. and the market right now is in a very volatile state because they don't know how severe this mike, i'm very is going to be. i think that there is a lot of uncertainty in the market, which is going to play onto volatility in the market of itself. that's a very natural thing. but i do think that as far as paper tantrum goes, i think that we've successfully managed to sidestep that. now when it comes to rates, i know we've heard powell say the fed is looking for maximum employment before we
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see a rate. but considering the unemployment rate keeps falling with weekly jobless claims hitting their lowest point in 50 years. meanwhile, we have a worker shortage out there that is left and 1000000 open jobs just in september. what's the takeaway? when you look at those 3 data points altogether, i mean, what does it seem like balance looking for there? well, i think it says that the fed has quite the dilemma on their hands. because right now the labor market has gone a search, so unemployment has fallen. however, the one thing that stayed the same is the labor force participation rate. that didn't budge. so this measure include people who don't have jobs, but are actively looking for jobs. so it is quite concerning because it could highlight a lack of skill and talent required to fill these job openings that we have in america. so with all these close borders and travel restrictions, america is no longer attracting for talent to come over. but then other reasons for this could include things like early retirement, lack of child care, fear of contracting the virus,
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etc. and neither the economic reopening nor rising wages are goofing any of these workers back in significant numbers. so this might actually force the fed to rethink its views on how far away they are from the maximum employment objective. definitely things that will continue to keep an eye on boom bus, christie. i thank you so much. thank you. and the turkish lira continues to slide is inflation is not only impacting us here in the united states, but economies around the world. in the case of turkey, the lira slid to a new record low on tuesday, after fresh statements from turkish president erred one opposing any interest rate increases. the currency had a lower $13.00 to the dollar, and late afternoon trading, surpassing its previous record low last week. roughly 13.45. so could crypto currency or bitcoin be part of the answer to helping? sure up the finances for those in turkey? well, joining us out of the jobs, it has been best co host an crypto analyst been font. now been,
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let's start with what is driving the d value ation of the lira here. why is this currency crashing? yes, so here's a crazy idea for you guys. just imagine in a world where money is incredibly cheap and government just prince money rather than having any value attached to it through, i don't know your g d p through products through even war. you just decide you're going to print money into an oblivion and that it should remain the same value, right? that is the insane concept, which by the way, we do in the united states on a regular basis. so let turkey stand as a warning that turkey is going through right now. president or the one essentially has this belief that keeping interest rates basically as 0 and printing money, the lira into infinity should have no consequence for the economy. and he goes as far as to fire, anyone in his administration who says otherwise, anyone who's contradicts this idea and says, maybe we should stop printing as much money. maybe we should slow this down. maybe
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we should raise interest rate though. you gotta be gone. and so as a result of that, the lira is crashing. as you mentioned, it's doing horribly right now. and there's no chance to recover that, that slide, if you continue with the same policies, again, let us stand as a warning to the united states that this is what is on its way when you just print money out of nothing. and we know this has been a problem that has been ongoing in turkey. and right now we're actually seeing turks a band and the layer of $4.00, golden, even big incorrect. yeah, absolutely. they are. and what's fascinating about that of course, is that you would expect, obviously as, as a currency declines, right, people will go and though purchase dollars with it because the world's reserve currency, it's more stable, certainly than valera is. gold makes sense to some extent. but if you're the average person in turkey, and how do you really get access to gold, right. it's much more difficult to do. but big coin crypto currency a lot easier to get ahold of. and that's what we're seeing right now. a waiver of people who are essentially going after crypto currency and bitcoin specifically
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because they see it as a hedge against inflation. and it is a hedge against some place that i know we talk about this a lot of michelle guys, and i know you've talked to christie about this. is it always a hedge against inflation? when we see big coin what may may be slides or drops even as we're watching inflation rise. yes, it's still a hedge because long term people are looking at bitcoin and other crypto currencies, as a long term bet that hasn't, even though it's a volatile market, it has long term stability. look at the long term of bitcoin life and where it's gone. and how it's risen versus long term for any kind of a federal reserve note, any kind of feel currency, including the lira. and so one of the thing that's important about that is that when turkey looks at the lira and says, what are we doing with this? and people in the country look at it. what they're looking at is big coin is the answer to exactly this problem. when governments run amok with the way they treat their currency, your money, bitcoin and other crypto currencies become a balance for that they become a way of kind of weighting against that. and certainly another reason that the u. s
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. should be paying attention. now, if the government intake is going after officials who aren't happy with the way that they're handling this crisis than it certainly does make sense that they would try to go after anyone who's using bitcoin and try to stop that coin transaction. but that doesn't appear to be working right now. why is that? yeah. why it's not working. of course it's not working right because you can't really stop a thing like big coin even though the country is outlawing bitcoin transactions there, outlined the purchase of it right now. the can you really stop it? no, because as long as you have a mobile device, you can access and find ways to purchase crypto currency and as long as governments please pay attention, janet jaelyn and jerome pow, as long as governments are devaluing the currency that belongs to the people, people will find a way to abandon that currency and find something that has more value, whether it be property or whether it be crypto currency or whether it be gold. they will find a way smart people will to get into something other than the currency that you as
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the treasury secretary, president of the country, whoever it might be, central bank that you have the ability to destroy when you have the ability to destroy my well, i'll find some form of wealth that you don't have the ability to destroy, as certainly a lot of the lessons that can be learned from the scenario. investments on thank you for your time minutes. i and now to a dire warning from space x founder you on month, he says the company could be on the verge of bankruptcy if it is not able to meet its quota of starship flights next year. now the goal is to complete a starship launch every 2 weeks and 2022. but the problem is that the company isn't producing enough of the raptor engines needed to keep up with the schedule. in a reported company e mail much, chris 1st to the current raptor situation as quite frankly a disaster and said he would take to the engine production line over the holiday weekend as he encouraged other employees to do so as well. space act is under
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increase pressure after it was awarded a $2900000000.00 contract from acid develop the next lunar lander by 2025. the company is also planning to conduct the 1st orbital launch of the starship. as early as next month, which would require a whopping $39.00 raptor engines in order to take off. now you mentioned at that pressure that they are under there. they got that contract from nasa. and at the same time, we also know that jeff bezos is filing lawsuit, often as he can, it gets even most so you can tell from this reported e mail, that he is feeling that pressure to do something. and to make sure to keep up with that quote, and you have to wonder how much of this is you know, how much that you must know about publicity for space x. this is what he does. he's a great public figure for a company in the way of actually bringing it to the people. and in this scenario, he knows that having to watch every 2 weeks put them in the news. every media outlet throughout the world covers those logic. so he knows that big time for him. absolutely. it'll be interesting to see what comes out of this. and if they're able
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to make that quote, i know we'll be talking about it next time now for a quick break. but when we come back to your b and it has laid out more details for its global gateway project, there are some se is meant to compete with belt road. we'll talk over the 300000000000 euro plan. and as it break here, the number that the quote, the ah ah oh, postal service delivers a 155000000000 pieces of mail every year. approximately 40 percent of the world's mail right now the us postal service is in the fight of its life. the survey that
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is really bad financial shape now facing default. the postal service is a cash cow and there was a way to pull money out of the postal service to put in the federal budget. there was a mandate that you're bringing a $100000.00, new revenue every month. the nature of privatization in the us postal service is very much hidden from public view. it's privatization from the inside out. why? that's a big business in money. it's not about the public and given them a service that they deserve. it's not about quality train work there. it's about the money problem. there is no pinnacle of evolution. everything's flat. a bacteria is a product to 4000000000 years of evolution in
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a specific environment. so a week, so in our sense where we are, the few survivors within to vote along a long process you. so as in to the springs yellowstone, we will not do very well. we'll do much better in that sense. to separate them being a you all know what they did a high a no. well on my bed a bit a well i mean a heartbeat. galatians, corbett, i we tonia headlong out in the banana. ah
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well oh, come back. the european union is giving new insight into its plans for the global gateway project that was announced earlier this year. officials are saying the price tag would be around $300000000000.00 euros between now and 2027. and the investment would include funding for infrastructure, education, health, and digitalization, president of the european commission describe the plan as a different approach to global investment. coming from a democratic perspective. no, the gateway is the european union's plan, nor you may college road map for major investment and infrastructure development around the boat. we want to take a different approach. we want to show that
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a democratic value driven approach can deliver on the most pressing challenges. we want to show that it can on one hand, meet not local needs, but also on the other hand, to tackle the global challenges we have. now the has been careful to call the global gateway project. a true alternative to china is bolt and road initiative. without saying and aims to actually compete with it. and as it stands, china is europe largest trading partner. and it's also a top training partner for the us. but as the binding administration continues to keep the trump administration's tariffs in place while also calling on its allies to put pressure on beijing, it raises questions about how the newest project will be implemented. so joining us on discusses professor richard will host of the economic update. now professor b u has already been criticized for not having enough of a concrete plan,
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given that it's a blueprint for the project doesn't include plans for immediate projects. while china already has 13000 projects in 165 countries. sure, we'd be expecting more of a plan from europe at this point. no, because this is not really serious. and the speech that that woman gave really takes your breath away. i mean, it says if she didn't remember that for 300 years, europe colonized asia, africa, and latin america rip these countries off from here to tomorrow. they will remember the europeans on a, remember, they're not going to be able to compete. the chinese started in 2013, they have nearly a decade on them. it's much larger what the chinese are doing. the chinese don't want to have a history of being the colonizing country. you know what this looks like to most of us around the world watching. this is using words, because you can't do the deed. you haven't been in those parts of the world,
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helping them with infrastructure. china has, and maybe history can help us at the end of world war 2, all the old, colonial empires. how upon the indians broke away from britain, africa, vietnam broke away from fred. i mean, i did, states kind of moved in because it didn't have that colonial history the way those parts of europe bid. now we're seeing step to the united states is losing its abilities. that's what the warranty afghanistan means. that's what all of the shrinkage of american power, and there's a new game in town. the chinese, that's the reality and the poor europeans, they don't want to be left out, but they're late to the game. and they are very little that they are offering. if you look closely at this statement, they're committing $18000000000.00. now the other big number is what they hope to
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get to over the next 5 years. this is really kind of sad to observe. yeah, and i mean, i guess professor wolf to your point, why then why do this, why make this pledge of 300000000000 euros when you said there's no realistic plan to actually be able to compete with belton road, which is also a one trillion dollar project at this point, at least, so why, why even go this route? i think what's going on is a political dance in europe. the reality is that the europeans, and there's lots of evidence for this, are wondering whether they are alliance with the united states, which is traditional, which is counted on, can be sustained in view of the enormous importance of their dealings already with china. and the reality which they all know that the chinese economy for 20 years has grown 3 times faster than the american. and they're wondering which way
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to go, but they don't want to make a very difficult choice. so they cut the deals with china to keep that going, and they go through this little bit of theater. we just saw about competition and lots of money and we're going to do it. they're hoping thereby to keep the americans happy. but it's a temporized kind of action. i think you're going to see it does integrate in the months ahead. is certainly does seem like with kind of trying to perform some sort of juggling act. and it's interesting because you hear from some of the officials, they're talking, they're arguing that their plan will be more attractive because quote, unlike china, the e u is not ordering businesses, it is partnering with them. however, obviously the e, you would still have its own set of requirements for the countries and businesses it partners with. so if they're going to roll out some sort of global gateway, why don't you think that they've had more of an actual strategy that would be attractive to businesses and countries to get them to sign on if they actually want
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to compete with anyone, namely china? well, you know, if they didn't, i think harsher they did anything real then they would have to either deal with the fact that they're going to be competing with the us. and there hasn't been about bad or that they're going to be competing with the chinese. and frankly, no one thinks they can do that. you can call them names, you can call them ordering and we're partnering again. the history of european colonialism is not partnership. it is ordering and ripping off most of the rest of the world, and every one who's ever looked at it, including the people who live there, know very well. so this is, this is pure verbiage. it has no real purchase on anything. no european country is cutting off its links to china. if anything they are encouraging them, they're making more contracts. and i think that's the reality you're going to see
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more and more of. yeah, certainly be interesting to see where this project goes. and if we actually get anything out of it more than just the sound bites that we saw so far, professor richard, well, thank you so much for your time and insight. thank you. and finally, it's the scourge of the holiday shopping season. so called boss, you know what we're talking about here. say you're looking for the how does the video game console a brand new graphics processor or the freshest pair of kicks out there? any hard to find holiday gift you get online, you log in with all of your information just to have the item ripped from your graph by some automated system run by a narrative. well, that will just flip the product for a profit on the secondary market while there may be a reprieve in the future after a group of lawmakers here in the united states to introduce legislation on monday to stop the practice is called the stopping grinch and box act which was rolled out by senator richard blumenthal, a democrat from connecticut and co sponsored by
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a group of democrats, including senate majority leader, chuck schumer, who said of the issue quote, the average holiday shopper is unable to compete with the flight speed of the all too common grinch bought and then how that ransom by scalpers and 3rd party retailers when trying to buy holiday presents. and i know a lot of us are shopping online right now, and i know you've been through this specifically finding that you go, you get ready to get that new pair of shoes and then it's not there. well, exactly, or you might have mentioned exactly 3 things that i tried very hard to get over the last few years, which are of course, sneakers, video tools and those graphics processes that are sorry to get. but the fact is is, you know, now we've also seen people haven't actually resort the boss because if they want to get, say, a present for their child for christmas. and they are not able to get it because they thought about their site. maybe i take that same short cut and that's where i go. but this is a huge problem. and when you look at like the retailers,
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for instance, a best buy here in the say, the target when they're selling something like this, they don't have, they don't really care who's buying it because they get the money either way, whether goes on the secretary market and doesn't reflect poorly on them exactly as the average consumer who ends up spending more. and a lot of times they do it to get that item to get that parents sneakers, all about getting ready for the holiday season. so we interesting to see where this one we're going to do more on this on the show here in the coming days, and that's it for this time. you can catch boom boss on demand on the portable tv app available on smartphones and tablets. people play in the apple app store by searching portable tv, portable dvd can also be downloaded on samsung, smart tvs, and roku devices, or simply check it out at portable dot tv. well, see you next time in a
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a warm drugs started as a way to combat a grave problem. what's the warrant? it's part of the attitude of the nation, not just of north dakota, and it got to be something that you could get elected. this time, the fight against drugs still good to try and shake. tom told us that andrew was a confidential informant, is his way too dangerous for him to be doing. clearly, they put him in harm's way. a rural college student does interest get shot in the head and found in the river like that. something else had to be happening. ah, ah, maximizes financial survival guide. stacy bless, learn about feel out. let's say i'm a true, i get any are great. com grease on base of the fight wall street prod. thank you.
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thank ah joy. 6 that's right, fell out it will dest slavery ah ah you were told it was bad for your eyes in your post yet, that it would stop you from having real friends and finding
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a go friend. the while they fail to men, is that you can make thousands of dollars over the weekend by simply playing video game with our dentist, they should be using a couple of them for the go. we wanted to push that. well, we would focus into a little under, for, for you personally, thought georgia was me. it was because much because american multiple reduce operational soon. of course, to make video games a high paying job. you have to be gifted and quick witted and young to open up with conference. thank sir to parents to little bit. mr. lithonian brought him in this santa webpage, but here from youngs produce park even started yet. glove, boy, when you mouse storm you my video it are all you me. i was at news few. are you guy of the order but i would that be circle? it was still just defeated. odd to do. i also use with
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that on snotty on the chrome spreads to 24 countries with the united states becoming the latest is w h j. you sense the alarm? we look at how different countries are responding to the new strength of cognitive . also this as we visit a child care came in, came moscow is more more young. the patients are needing treatment for the virus. our children are age from one month to 17 years that conditions vary in severity. the children harris, severely l, and in the intensive care unit, and american face is the highest rates and inflation in decades while corporations are enjoying record profits. we look at new concerns for the economy though, following the l micron. ag, bright and students, protested university in arizona for and against the quicken adrift car. rittenhouse is bright to attend classes.

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