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tv   Boom Bust  RT  January 5, 2022 11:30pm-12:00am EST

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ah, ah with either financially like i don't buy a. i buy a futures. that's not an almost at the friday. at the last time i buy it from the
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future. so crocker want kaiser replace. ah, with this is boom bus one visit you can't afford to miss. i'm ready to 11 the number of born watch been here's what we have coming up here is unfolding and causing done as protests are rubbing over, rising fuel prices in the nation straight ahead. will bring you a full scope of the developing situation. fits as markets are moving in the wake of the latest federal reserve policy states that are the central bank aim to reduce all they will break it all down. then the great resignation continue this week. the us labor market with the record $4500000.00 americans winning their jobs in november. we'll discuss what behind this trend and what it means that the u. s.
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economy will attack so. so let's get started. we began with continued unrest in a country where energy prices are. skyrocketing and residents have taken to the streets and response. there is no question that rising gas prices, it costs frustrations for people around the world. but in cause it's done, not unrest has led to the violent protests, the burning of cars, and even members of the country's government resigning altogether. and the catholic president has declared a 2 week curfew in the nation's western region. and in the country's largest city, the restrictions include a ban on mass gatherings and limitations on movement that i knew such as, dear compatriots, not i appeal to you again. i urge you to be prudent and not to provocation from inside and outside 3 to the fauria of rallies, and her mister appealed to attack the offices, civilian and military department are absolutely. yeah, they are crime and punishment may follow. and joining us that it's got this boom by
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co host an investigative journalist, been swan, ben, this is a crazy situation in terms of detailed how violent have these protests been so far? yes, so far it's mostly been, you know, property destruction, a lot of vehicles have been burned about 120 vehicles according to the country's president. 33 police vehicles were actually burned as well. there have been some public buildings that have been basically destroyed and set on fire. so, so far, that's mostly what they're seeing there. and people taking the streets. you mentioned the curfews that are in place right now. the goal is to try to keep people inside and to prevent them from coming out. but i think we're really feeling how's excited and then i'm not an expert on the region at all. but from what i understand, just researching this today is there's been a lot of pressure in that country over the last couple of years. and there is kind of a pent up frustration among people in that country who feel that being government. there's 2 authoritarian and so when you had this kind of flip the switch in terms of the oil and gas prices there in encourage people to come out and take the
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streets and to start making their voices are. now we know as being reported, that a lot of this unrest started because gasoline, oil, and liquified gas prices in the country have skyrocketed overnight. do we know what all has caused that to happen? and is there anything that kind of led up to it? well, the main thing that cause it to happen is apparently there was a national law that prevented it kept oil and natural gas prices in the country. and the government there lifted that cap. so by removing the cap overnight, essentially what we saw was an increase in about 100 percent in the cost of gasoline. the cost of heating oil that's used in order for people to heat their homes or to be able to cook with that has skyrocketed gone over 100 percent. and so i think what, what the frustration seems to be there is obviously when the government had a cap on these things, there's a certain sense of security in, by the way, a very rich nation target time is people felt pretty confident in that. and when
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you remove that, and all of a sudden everything skyrockets. again, you're looking at the pandemic years over the last, what? 18 months? almost 2 years now. the people have been living under pandemic life. and to now see the cost of living going up so high seems to be triggering quite a bit of quite a very interesting to because as the nation has pushed for natural gas as well, many people have been converted, their cars and cars. it's time to run on natural gas, and as these prices shut up, it just obviously has caused a lot of turmoil. now russia, obviously bad is a close ally because it's done, which is the former soviet republic and they have kind of issued warning thing. you know, there shouldn't be outside intervention going into the nation. is there any indication right now that russia might get involved in helping out to put down these right? yes, so far it does not sound like they are planning to do that. it sounds like from what russia saying, they're essentially encouraging people to not right to have dialogue with the government to talk with the government. you know, the current president right now who's imposing this curfew has
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a predecessor who was essentially kind of defacto power. he has now resigned and so now the, the current person we keep talking about as the president has kind of assumed full control there. the question is going to be how much outside influence is there really because the guy who is in power right now is essentially saying that a lot of the, the trouble makers in the 3 aren't locals, right? they've come from outside and they are creating the problem. is that true? it's tough to say right now, so i guess it really depends on what we see happen over the next couple of days and weeks. and how heavily does the government cost and kind of crack down on these protests? if it's too heavy handed, we might see more people rise up. we'll see. boom by spend, swan thank you so much for following the story. we'll continue to update things. and now to the latest from the federal reserve, while there has been some uncertainty over how markets would react to the crown variance, the fed has indicated it will move forward with plans to continue pulling back on the easy monetary policies that were put in place. the beginning of the pandemic
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now all the plans continue to paper billions of dollars and asset purchases each month. it has indicated it could start raising interest rates as early as march. now, questions around what the fed will do with this more than a trillion dollar portfolio of treasury and mortgage mortgage backed securities. although some investors expected the fed to wait until 2024 to make any significant changes to its balance sheet. the central bank is now signalling it could start reducing its holdings as early as this summer. joining us out of this guy, chris b. i now christy, we know that the fed is now looking at raising interest rates for the 1st time since 2018. i mean, given how careful chairman power has been with investors and really not wanting to make any moves without warning. do you expect him to still tread carefully when it comes to raising rates, or even making these expected changes to the changes to the feds holdings? absolutely,
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i think it goes without saying that power is still going to be treading very carefully when it comes to raising rates or any changes in fed policy in order to avoid any tape or tantrum so far. he's been doing a very adequate job at communicating, although a lot of the language is quite off and leave a lot of room for interpretation. so the biggest summary of economic projections now sees about 3 hike this year. the timing of the 1st type will be a p important as hawk suggests, it could come as early as march, once the asset purchases conclude. so the latest f o m c meeting saw the fed double, it's tapering of asset purchases to $30000000000.00 a month, which will start in january. but the guy didn't now left the optionality open as this could be adjusted even higher in economic conditions warranty. so right now it seems very likely that march will be the official lift off date for the 1st type. there's again, also the optionality of pushing it back to may the fed strengths, but they'll be taking a data dependent approach once the purchase. so in terms of this data, so far,
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it's been very disappointing as people are not re joining the labor force. well, who is still prevalent? so there's clearly an urgency to hire employment number. but at the same time, how stated with in place to above target, the fed cannot wait too long to get maximum employment. and christy, when it comes to the stock market and all of this the 1st session or you know, on monday we felt record highs once again after the s and p had already saw, gave them at least 27 percent in 2021. now we keep waiting for those record highs to come to an end at some point on wednesday we didn't exactly have a great day for us markets, although wasn't a bloodbath by any means. but does it seem like we could see that correction at some point in the near future and how is best for competence being impacted by fed policy right now? yes, i don't see a very difficult time and i agree that it will happen in the near future as there is no more fee money to pump off the stocks. but the residual effects could last
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for a bit. but as of when you see a lot of people rotating from tech, hydro momentum to these values, cyclical and income stock. so this is one liquidity that's driving this, not necessarily the interest rates. so when there's liquidity, you go for the momentum because it's fed is essentially forcing dock and bond to route. but it's a fit, it's going to pull that liquidity out. want to rotate out into the cheapest and lowest risks name, which right now have been under performing values. so us docs right now, they're struggling for direction right now after this hearing this message that the fed could potentially unwind monthly bond buying programs at a faster clip than expected. if inflation continues to persist and creep up. but i don't think investor confidence is being that heavily impacted by the fed right now . if anything, i think investors have learned that if they throw a big tantrum than all the tightening will stop. so the spent in listening to the market and that's a good thing,
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but it's almost like the fed is now being pulled into the market and that's where we can get some issues because that's the tailored flight to the dog. yeah, that's a great way to put and that's definitely something that has been sort of a landmark of chairman problem time in office. now when we're talking about record highs, we also have to mentioned big point here and had a landmark year in 2021. and now analyst from goldman sachs are saying they feed bitcoin, taking more market share from gold as a store of value, which could lead it to hit $100000.00. do you agree with that prediction? absolutely. i mean, we've been calling in digital old for years and years now, so it's actually great that goldman sachs is coming out to reaffirm that belief. so big flying currently takes up about only 20 percent of the store value market with the flow adjusted market cap of under $700000000000.00 compared to the $2.00 trillion dollars worth of gold that's being held. and so that number is estimated to only grow for bitcoin as there is
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a broader adoption of digital assets. the big plane will increasingly steal market share from gold. as people start to realize all the benefits of that, make it better than gold of the store. as a global store of value, i should say. so this includes scarcity value, the fact that it has a fixed and limited supply, the visibility, the security level, the portability, and increasingly it's decreasing correlation to the broader stock market. so in all of these categories that point out chinese gold, which is no more now than a relic of the past. it's great for making jewelry and goblets and necessary for high tech and semi chest, but as a store value. not really. you know, certainly be interesting to see where that digital gold goes from here and when it does end up putting that $100000.00 mark boom bus. christy, i thank you so much for your insight. thank you. and the port of los angeles has been in the new quite a bit over the last year as images showing hundreds of container ships waiting days
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and even weeks to dock became the picture of the supply chain issues that have impacted rising cost. here in the united states now the 4th executive director says that all of that demand lead to a record 10.7000020 foot containers passing through the ford of all a last year. that's 13 percent higher than the previous record, which was set back in 2018. and as for the traffic nightmare for the ships trying to get to the dock officials, they're say they have cleared up a lot of the problems by working to optimize their efforts. and by directing larger retailers to be more strategic about the cargo. they said, while the buying the administration did get involved back in october and president joe biden himself directed the ports of l. a analog beach to move to a 247 schedule. that is yet to happen and officials are saying it isn't needed. however, they did know that the threat of a container dwell fee, which would it be imposed on retailers who let their container sit at the port for
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more than a week has led to a 50 percent decline in their backlog. that right there, that last point, rachel, that is fascinating. but all you had to do is say, hey, you have to pay more. if you don't get this out of here. one is interesting because the fee was only supposed to start out at around $100.00 for each individual day that went over 6 days. so it is funny that as soon as they run money into the mix, you would think that some of those retailers really wanted to get the containers moving in order to get that product moving on once they've brought a penalty in and all of a sudden not made the move and with all of the things that we heard so much about during that time of, you know it's backlog. it's a trucker shortage. there's, there's not enough coming in, but it's like, look, they broke record. so obviously they were doing something. there they go. and time now for a quick break, but when we come back to great registration movement is weeping. the united states as the labor market balance has shifted in favor of workers. on the other side, we'll discuss it in depth. and as we get a break here, those numbers are the clothes shoes.
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and owings mills from young america jump on on shove, i can learn dealing with, i mean, i the and welcome back. in december, us business is hired employees that their facets clip in 7 months after a disappointing showing in november. now, payroll processing firm 80 p reported private job growth of $807000.00 for the month doubling expectation. the company's chief economist pointed to the economy
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hitting a sweet spot. as the delta vary of cobra, 1900 impact began to wane and the current impact had yet to be felt amid the holiday season. however, as we have discussed here on boom bust, pandemic effects on the workforce are continuing to be felt. in fact, a record number of americans quit their jobs in november, fall open jobs, continue to search. the labor department says that most of those leaving jobs come from the services sector. so what is behind this mass? exodus archie correspondent, trinity chavez has the story. oh, it's been called the great resignation. a record number of americans are telling their bosses, i quit newly released data from the labor department. it says a record breaking 4 point. 5000000 people quit their jobs in november voluntarily with the majority of those employees being women, primarily in the industries where you have to be there in person to work like the restaurant and hotel, industry,
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warehousing transportation and health care sector. where we have seen doctors and nurses overworked, especially since the start of the pandemic. some of the biggest losses were in lodging and food services, which sol, 920000 workers, walk away retail and trade with 686000 defections. and the health care industry, which last 598000 employees, the number of people calling it quits in november, representing a nearly 9 percent increase from october and broke september's high watermark. a 4300000 americans quitting their jobs at the fastest pace ever seen the reasons for so many resignations very. but most of it is due to lack of child care services and health care concerns about coven 19 mainly impacting women in the workforce. other reasons include burnout, a search for better job opportunities, self employment, or more pe, the masses leaving their jobs only exacerbating supply chain and staffing shortages . seen in virtually every sector in the us. but at the same time, it's also
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a job seekers market one and a half jobs are available for every person who's looking for work a total of nearly $10600000.00 job openings right now are currently available, especially the hotel transportation and health care industries. for boom, bust trinity chavez, our teeny york for the deeper into the issue with steve burbridge. the host of the steve gruber show and forgotten america and professor reachable host of economic update. and author of the sickness is the system of capitalism fails to save us from pandemic or itself. great to have both of you here for this conversation that roosevelt. i want to start with you on this. i know we've talked obviously about this great resignation in the past on the show. but what the takeaway when we're seeing such strong job growth at the same time we're seeing we're record number of people quitting jobs. well i think we have to begin by being clear that the one month of the december is very screwy in terms of the importance of christmas. and as you put it, the, the late arrival, if you like, in that month of the,
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the effects of the omicron area. whereas the quitting has been going on now for a rising number of months. it's the more stable the more secure thing to talk about . i would like to bring to everyone's attention that in february of 2020, at the beginning of the pandemic, we have 5700000 americans on employ. today, we have 6900000. i checked the numbers literally 5 minutes ago. in other words, there are more people on the employ. normally that would make workers more worried about quitting their jobs because there are so many others. lucky i think therefore that we will have to face the fact that there's a sea change going on in the american working class. it came back from that and then from unemployment over the last 18 months. and it didn't like the kinds of jobs being offered. it didn't like the pay packages, the benefits, the insecurity,
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all of it, and being called essential for 18 months and being sent back into a job where you're not treated with a minimum that essential ought to imply is leading workers to have a whole new attitude that i think is going to change the economy of this country in very profound ways in the months and years ahead. yes, certainly raises a lot of questions about what that long term impact is going to be. as we continue to see a new record, it feels like almost every month and workers quitting their jobs. now steve, what is your take on this? and when it comes to sort of this mass exit is, do you see this is a changing workforce and brought on by the pandemic? or is there more to it? i think it's brought on by bad governance more than anything else. i mean, milton friedman wasn't the 1st to point out, but i will cite him here that said, if the government pays people not to work in it is you're not doors, you get a paycheck. and guess what, when they're offered
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a chance to work and it's more difficult, they don't work, they'll stay home to collect the government check. meanwhile, you have $80000.00 people that are truck drivers that have left the industry all together. why? because of all the regulations, all of the roles in the way. and they finally said, you know what, it's not worth all of us and don't underestimate the impact of the mandates on people leaving fire departments, police departments, m tease, doctors, nurses, you've got people leaving industries all over this country because of mandates in places like new york in california, they say, you know what, i'm close enough to retirement that i don't want to go through this. so people that are maybe late fifty's, early sixty's maybe had a few more good years in them. they're walking a way of saying, you know what, i don't want the headache. i don't want to deal with it. i'm just going to go ahead and cash in my chips right now, and you're seeing it on a mass scale professor. well, what's your take on that? i mean, how is the government playing a role in this shifting workforce that we're seeing? well, our government has been bought and paid for by the corporations that run this society
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. i always find it amusing to blame the government. it's a little bit like getting angry at the puppet and forgetting that there's a puppet here that's right behind that. our corporations don't want to pay higher wages. they never have. they want these workers to come back after 18 months of real suffering and simply accept the conditions under which they worked in the past . they are not willing to do it. and you can blame whoever you want until that issue is addressed. you're going to see not only workers quickly, but you're going to see workers changing their attitude, not to walk away from a job. but to now think about joining the union, making a union much more militant so that they can improve the job, rather than have to walk away and live without the income, which they are loath to do in a society where prices are going up 70 percent, a year and i mean, steve, i know it's easy to, to make the argument that people are collecting their government checks and they're
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just sitting on their couch and they don't have anything better to do. but i mean to, to ritual support. i mean, there's a lot, there is, you know, workers have been taking advantage of it in this country for many, many years. and to have it seems that this is actually putting a little bit of paper in their hands. actually, capitalism has created more freedom in the history of this world than any other single item. adam smith's desire of this country economically created more freedom, more free people, more free ideas, more free opportunities. the fact of the matter is these people are working with a contract and when the government weighs in, this particular puppeteer is actually coming with cash in his hand to offer those puppets as, as he put it to deaths. but to their tune with other people's money, that's what's truly happening here. it's easy to blame the government, the government wage and makes huge mistakes with policy like they continue to do. here. we see that there are 1200000 more people employed today than the were in 2020. as he pointed out. the fact of the matter as people are leaving because we're
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being incentivized to leave, whether it's more money in their hand or they just don't want the headaches of the mandates. again, do not over look the mandates and the impact. they're happy if job biden's mandates go into effect in the next few weeks, it will destroy rural health care in america. the reason being small hospitals in this country, those with a $110.00 beds and last have a vaccination rate of less than 50 percent of the staff and faculty. think about that. they can either take their 70 percent reimbursement from the government and their c. m. s checks, or they can say we're not going to do that. they'll lose that money or they lose half their staff when mandates come in for vaccination requirements. rural health care is paid a very high price for this pandemic, and very poor policies in the government of this country. and people are seeing the impacts all over beyond the coasts. if you get to the center of this country in what i do call, forgotten america, you'll find that health care has been impacted in a negative way that is absolutely breathtaking. and generational steve,
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i don't want to ignore those back by any means, but i do have one more question because i have about 45 seconds left here, which is, you know, you could talk about the, the government incentivizing people not to work. but at the start of this pandemic, there were also a lot of companies capital in companies with their hands out saying we'd like our government jack as well, right? i don't like corporate. i don't like to call it crony capitalism. i could call it crony socialism. i don't like that either. there's no question that a lot of companies, the individuals that did not need the paycheck protection program as a very easy example, got tens of millions of dollars handed to them when they had no intention of scaling back or getting smaller. and that's the problem with the one size fits all government program. people that don't need the money, get it anyway. and they go on by themselves, new buildings and new boats and things of that nature. people that really need it might not get as much as they need to stay in business. yeah. a one size fits all government. the, the definition of inefficiency and well, resource is,
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is government is i'm sorry to cut you off the but we are out of time in the show, steve grover and professor richard, what we can talk about this for our thank you so much and that, that for the time on boone, but you can catch us on portable tv at portable dot tv will see you next time. mm hm. it has to be rash to be able to afford and sign in front of the luxury good for sure. despite having the most expensive health care system in the world, we have poor life expectancy. we have higher infant mortality. we have more deaths from treatable causes. so americans are suffering every day from it. it's as if these people don't count. i saw how they can choose their customers and
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dumped the sick so also they can satisfy their wall street investors. no parents should have to see what i saw. if you're denying payment for someone's care, your make life and precision and determine to get to with the 10 who dies to me, that's best getting away with murder. and you know, we recorded this episode in the past and this was our future. when are we record it in an hour ago to predict what's gonna happen in 2022. so it's a real time war. ah
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ah, we start with breaking news serial. now to international reports of the shoot down between security forces and armed protest isn't as it stands, largest city monte. after the government lost an anti terror operation and deadly rod spoke by sorting fuel price. sounds busiest airport that's in our mouth. he's one of the sites that was still by produce clothing, max travel disruption. we've spoken to a russian citizen who was that the hub when bryce is broken. the military employee left and put in a hurry, not really trying to evacuate its class. we were just trying to stick together.

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