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tv   Boom Bust  RT  January 6, 2022 8:30pm-9:01pm EST

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a feeling that you have to deal with so hard practice who you putting in a uniform. a powerful thing is sometimes like money. it played tricks and people mind they think they got the bad news. the wolf is out the door very bad. johns are coming. good news. you have job security because the world desperately needs that you have a good thing with this is been by phone business say you can't afford to miss. i'm racial blood and lab bridge word washington. here's what we have coming up. the united states just not a load and it's inflation struggle that europe largest economy is seeing some of its highest rates in nearly 3 decades. straight ahead will bring in will be joined by
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a panel of voices to discuss the issue. and there's been a slumping bitcoin price in recent days, hitting at the lowest level december last craft welfare was important. we came away with a record $14000000000.00 in crypto currency. in 2021 will discuss, then in the wake of the essay is drive to the labor rise in an 80 p. from depleting their 5 d roll out. airline companies are backing the governance position. we have all the details with an expert in the field that we have a lot to cover today. so let's get started. we leave the program with the state of inflation in europe's largest economy. germany is consumer price index rose by 5.3 percent year over year in december, the highest rate in nearly 30 years. now this remains a slight increase from the 5.2 percent in november. but it marks and easing of inflationary pressures, which have been surging over the last 6 months. now the nation statistics office chalk this up to lower prices in a 20, during the height of the pandemic,
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pointing to a temporary reduction and its value added and a chart or value at attacks and a sharp decline in oil prices like the u. s. federal reserve, the european central bank maintains a target of 2 percent inflation and expect inflation to hit 3.6 percent this year at a rate of 2.2 percent in 20232024. so what does this mean for one of the world's major economies? well, joining us now to discuss is room bosco home ban swan and chris the i, i want to start with you ban. what's the take away here? is it a positive sign that we are seeing prices rise by a huge amount, month over month? i guess if you're looking for a silver lining, that would be it in terms of the price is not going up as dramatically month after month after month. however, if we're looking at overall where we were a year ago to where we are now, it is not a good place to be. certainly the amount that people are spending right now is
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obviously significantly higher than they would like to be spending. that number does not seem to be dropping, even though it may be, it's not writing as quickly as somebody expected. so there is another issue here to inflation is one issue. but there's also, as we've talked about in the show, many times before this issue of supply chain issues. and that is significant as well because the supply chain issues have not been resolved. we have not seen an actual quickening of products, making it through ports. and in the stores, in fact, if anything were starting to see even more of a slow down, now go into your local grocery store or even a local restaurant right now. and you're seeing more and more items that are off the menu, more and more items that are off the shelves because they're simply not being able to stock them because the supply chain issues. so those problems have not been resolved. and obviously that institutes its own supply and demand economics, where the supply is too short, the demand is too high and the price will continue to rise on those items. yeah, and that demand certainly isn't going anywhere anytime soon. the supply chain
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issues continue to persist. now, christie, here in the united states, we know that the federal reserve finally backed away from the idea that this inflation is transitory acknowledging it may be here longer than they initially anticipated. but for the e, c, b, they are sticking to the idea that the spike in inflation is only temporary, even though it's gone on for several months. now. what say you? well, the easy b a certainly taking a different stance here. they basically double down on the asset purchased program in 2021, and has still given no indication of an interest rate hike. so the bank is keeping a monetary policy flexible around the unpredictability of coven. not wanting to slow economic recovery just as inflation is rising. so they believe that the inflation outlook has been revised up, but it's still projected to settle below is 2 percent target over the project fries in which means 2024. so right now it's a fascinating battle to see who's right. the fed basically surprised the market
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with comments about inflation and wage growth that might lead to higher interest in response. so these comments appear to us that the fed believes that these prize heights and inflation pressures across the world which have been made worse by supply chain shortage offense, and also huge demand for labor. and that all might be here to stay. so this in turn brings into sharp focus supplied by christine le guard for them to keep their key rates at a historically low level. because basically maintains that global inflation is only transitory and doesn't require these interest rate hikes to defeat it. and she has already pledged at the a will not hike rate this year. and that these increases were unlikely up to 2023. but that conviction will be under very heavy scrutiny in the next few months. so the stakes are high because it's the e. c. b is wrong and the fed is right, then the rates will likely increase earlier than expected. and that would in turn push up the cost of borrowing for all the household, including loans, mortgage,
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car, payments, business loans, etc. so they can both be right. so the easy be continued describe this problem as transitory. whereas the u. k. a u. s. central bank, they're creating more long term solutions are better. we're going to move to some other topic here and just one second. but i did want to hit on one more point about german inflation. how much of this has to do with e c. b policy for me? yeah, i think a lot of it has to do with easy the policy just like here in the i think it has to do with bed reserve policy. listen, central banks are driving inflation right now. there are not many other factors that are doing it. it is cheap, money being printed as a resolution to the fact that economy suffered under not unnatural conditions through the pandemic. but government impose condition, government imposed conditions, government, and post solutions. and now you have high inflation. i think it's entirely the responsibility of the e. c. b just says, here's the responsibility of the federal reserve on i'm glad you bring up central banks because that's the next topic we want to get into. and i know when we're talking about inflation,
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we can't mention it without. of course. also talking about the federal reserve right here in the united states. now, right now, the expectation is for the fed. you raise interest rates to the 1st time since 2018 as early as this march. and you then began to reduce it's more than a trillion dollar balance sheet in the months after that, that is all comes as fed officials have spent months saying that it's past time for the central bank to pull back on their easy money policies that were put in place nearly 2 years ago, at the start of the pandemic. now ben will come back to you to start this one. now we know that the bud policies, as we've said, had flooded the economy with cheap money. so what happens when they finally start to pull back and do you see them sticking to this current schedule? so, so my honest belief here is, i don't think the federal pull back, i think they are indicating that they might, i believe i would hope that the fed does actually want to do that. i'm not sure that they do, but i would hope that they do. here's the problem. that the moment the fed decides that they want to do this, if they actually do,
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and they begin to make moves to raise interest rates again. wall street doesn't want that. the banks don't want that, the cheap money that's floating around out there that the markets are eating up and gobbling up. they don't want that. and so what i believe will happen is that wall street will respond with a tantrum. that's what they've done in the past. every time there's any kind of an indication whatsoever that there might be an effort to even slightly raise interest rates. there is a response from all walter and it looks like, oh no, there's problems on wall street and then the fed back. so i think that's what happened again, the markets like the conditions right now. they like that cheap money. they don't care that it's bad for the economy overall. that ultimately these policies would crash the dollar very likely. and yet, they want to keep things as they are. so i don't think there's enough of a backbone in the federal reserve bank. actually see this group are and i want to bring in peter shift into this conversation. he is the chief economist and global strategy at euro pacific capital in our friend here on boom. but i don't know how
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much of that you heard peter, but what do you think when it comes to the federal reserve actually pulling back on these policies? what's actually going to happen here because of all, even though the federal reserve follows the route with what is indicating it made, do, and gradually raises interest rates over the course of the year. so that by the end of the year, they're all the way up to one percent. one percent is a highly stimulative rate. remember that's the same rate that they slash interest rates to in 2008 to deal with the financial crisis and the great recession. you are not going to fight inflation with that type of stability. monetary policy. you're just gonna make inflation worse. so the inflation problem is going to get worse, not better. the cpi is going to be moving up and even faster rate at the end of 2020 to that it is. now, if the fed actually follows through with its time table, so what we actually need if the fed is going to fight inflation,
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we need to go lose money to type money. and that means interest rates have to be above the inflation rate. well, even if you buy the government's inflation rate of 6 or 7 percent, that means they got to go up to 7 or 8 percent. what percent is nothing? so everybody is making a big deal about about nothing. imagine what the market would be doing. it had to factor in that type of interest rate that would actually be necessary to do something about the inflation problem. yeah. then certainly doesn't seem like they're going to do much more than that one percent, at least at this moment. no. be interesting to see how the markets react to that. now, christie, we've got about 30 seconds left in the segment, but i do want to get your take on how much have investors come to really rely on the fed easy money policies over the last 2 years. and is there a lot of panic when they start pulling back? absolutely, there will be in the markets become extremely reliant. i think that goes without saying, everyone will take risks when money is free. so now when all of
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a sudden the spigot has stopped, then you see equity is falling and we've attained some crazy evaluations. a lot of techniques in particular over the past couple years. they have validation that are simply mind boggling and really out of proportion with the actual business. but now all that pumping is going to be rained. and so there's going to be some major headwind the market as a fed moves down a more hawkish path. and in response to the hawkish minutes from the federal reserve, december meeting, we've seen a significant reaction from both markets and crypto currency. this comes as a new report says crypto currency linked crime in all time high in 2021. but that really hasn't taken away from the interest in crypto currency. in fact, even goldman sachs says that expect bitcoin that were hit $100000.00, but that, that it will take, it will take store a value market share away from gold in order to make that move. now i want to bring back our paddle, obviously here, and i want to start with peter. now peter,
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we know that you are, are well known a well known crypto currency skeptic. what do you make when you hear these reports? number one of all of this crypto currency related crime and scams and how much that's been involved in that? well, 1st of all, you know, there are no hawks at the fed, their hawks or is is extinct as the dodo bird. they're just degrees of doves. but when goldman sachs is talking about big coin going to a 100000, i would take anything they say with a grain of salt. they are notorious for doing the opposite privately of what they say publicly. so if goldman sachs is touting big, quite 200000, they probably have some big coin they're trying to get rid of. and they're trying to pump up the market. but i think big coin is probably dead. i can't think of any valid reason why any institutions would be looking at bitcoin. now if they were thinking about, look out it when it was 50060000. now that is barely $40000.00. i think they're
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going to lose interest. there is no way you can make an argument that bitcoin represents any kind of store value. it doesn't have any value to store. it's simply a speculative, okay, and, and i don't think the speculation is worth that. i don't think the upside potential is worth the downside. risk, i think if you want to speculate, there are much better ways to do it. if you really want to save haven, if you want to store valley or water with lation hedge, i think goal this far superior to bitcoin. if that's your goal, chris, the i want to give you a chance to respond to that. what do you make of peter's comments, and how do you see that race between bit quinn and gold playing out over the next year? might i add the gold is a non interest bearing asset. so if there actually is an interest rate, high gold is going to be one of the 1st assets to get dumped. so right now we're in an environment where we have high interest rates and on stability and people want a flight to safety. so when you're looking at a flight to save the asset and in consideration for bit quiet or goal, i feel like big point is going to be the acid of toys because one,
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there is actually appreciation value. there is a ton of intrinsic value to bit coin, as we talked about in the pot, that gold really doesn't have because right now gold is just a standard we've. the dollar is no longer back, 5 gold anymore. whereas hey, coin actually has it been transit value and to that point even like special money, high store cause they propel, they actually made a joke of the fact and the grand finale like spoiler, they made a joke that the gold in the central banks have absolutely no value at all to this present basis to say the big point has intrinsic value, it's just a lie. and 1st of all, we don't have high interest rates. we have negative real interest rates. that's what competes with when, as long as interest rates are low, we're not going that we're, we're, we're not gonna have positive real interest rates. the fed as talking about moving interest rates to one percent by the end of the year. inflation is 7 percent, even if you buy the government numbers. so when you have
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a negative 6 percent real yield, that is extremely bullish for an asset like goal. but it has, for as far as big point is concerned, since it has absolutely no intrinsic value, the only value point to place allies ation of it. yeah. because the ledger all those are brand new to the internet has never seen before the internet as well as d. my has been truly value industry as a value on that. and we had it down to primrose path and financial ruin. but why don't you learn something about about the comics before you come out of program like peter less happy and so to hear and fortunately we are at a time with this conversation. i appreciate all 3 of you having this discussion. peter ship of europe, pacific capital, i boom by co host fed swan and christy, i thank you all for for joining us in it. all right,
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and the nor strip to pipeline may be 100 percent complete, but the campaign against it continues to bite. administration has been vocal and its opposition to the pipeline that runs from russia to germany. claim it would give, got more control over europe while taking gas transport profits away from the u. s . allies like ukraine. however, as the project continues to move forward, secretary of state anthony blinking took a different approach following a meeting with germany. foreign minister, take a listen. somebody seen or screen tooth is leverage of russia can use against europe. in fact, it's leverage for europe to use against russia. i now rachel, i have to wonder here because it feels like the united states government and the opposition to the north gym to pipeline had spent months if not years, say this is going to allow russia to have leverage over europe and over germany. but that's not what people can just say. yeah, he's saying the exact opposite. and it's fascinating to see how the binding
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administration has carried on this campaign from the trump administration. and which they specifically said that europe should not have this pipeline, that they themselves negotiated with russia for their own region. and they've said that it would be because russia had too much control. so it's an interesting flip flop there. it's also a reminder that the u. s. has tried time and time again to stop this pipeline and they have failed miserably added and continue to do so. it'll be interesting to see what the response for proponents might be to that comment time. now for a quick break, but when we come back, telecom companies and a be asian regulators have come to terms on a delay to a 5 g roll out. but what exactly where the concern, when it comes to air safety or break it all down, there's going to break here, the number, the quote, the driven
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by shaped by those with me ah, ah, who dares sinks? we dare to ask you know, we recorded this episode in the past and this was our future. when we recorded in an hour ago, it predict what is going to happen in 2022. so it's a real time warp soon.
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this isn't an open it. oh, even susie children have been cared for at the fountains. house. oh, me. baffled blue i give a devout cortez. my match mom with with nice to me. goal of michelin nation. i had mom nanny's violin. mom was violet that dana mom. yes, my son is with me. okay. allow me to book a book. i love you for obama. you will. i will love me. i use it much electric and owings mills to me on under discussion. i shall,
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i can redeem with i oh, the the, the, the, the, the welcome back we wanted to follow up on a story we covered earlier this week, telecom giant brides in an a, t and t on monday agreed to a 2 week delay in deploying 5 g services after refusing to comply with a request from asian regulators to do so. the compromise pushed back the roll out of the c bad wireless devices to the 19th of january. now the next 2 weeks will be
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used by regulators, airlines and wireless carriers to look at mitigating 5 g 's impact on flight operation. had the telecom giant move forward with the deployment on wednesday as planned. the f k said it would for sunday institute flight restrictions, which included limiting the use of certain automated systems. now in covering this story, it raised a lot of questions about how exactly this could impact flight safety and the ability for pilots to do their job. so you're ending it now that the stuff at all, if i let healthy hughes from popular youtube channel, 74 gear, kelsey is great to have you on the show today. now when it comes to the story, as a pilot, how concerning is this and have you already been trained or briefed on this issue to ensure the safest travel possible? so there's been no official briefing or anything because it hasn't rolled out in a way to really impact that as of yet. so there hasn't been any official briefing that that has been rolled out to any of the airline during the pilots that i know. i've just been reading it in the press like everybody else about how there's
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a possible conflict that can happen in flight. and now the f a actually warned of restrictions including limiting pilots, the ability to use some automated systems that help land and aircraft during say, bad weather, which they say could greatly affect air travel and cargo transportation. how big of an issue is this for pilots to have some of this automation actually go away while in flight due to wireless signals. so it's not actually the, the in flight stuff. that's actually an issue. the major problem would be from everything that i've read, there's one that we use during bad weather and it's a radar altimeter that basically let us know how close we are to the ground. so it out that the last 50 feet or so the automated or automatic landing system that we use during very low visibility would be impossible to safely function. and so some plane, when we're doing a flight, if we're going to an airport where it's very cloudy, or very low visibility, we wouldn't be able to go there. and so that whole airport would be shut down.
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whereas right now we can, if the plane has a capacity to do it, it's able to land there just fine. now when it comes through like this, it always kind of reminds me of back in the day when we 1st started really carrying cell phones on airplanes. and they said, you have to turn your cell phone off. it could mess with the airplane signal or something like that, and that turned out to be a met. but regulators are now saying that new cellular services could confuse cockpit safety systems as well. how important is that to have all of your tools at your disposal, and is that a very real concern moving forward? well, it's actually find you say that because i actually just talked to a friend of mine who is in europe and before landing they actually made an announcement to everybody in the cabin to turn all their cell phones off, which is obviously not something that we're doing right now in the us, so that's the 1st time i've ever heard of something like that happening. but it, it without having this system in place, there is something that we use every single day. so would it impact us? absolutely, on a clear day it wouldn't be nearly as impactful, but you know,
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pilots like anybody, we have a normal way that we're used to doing everything. and now if you change that, then it could be a problem. again, especially the major impact would be any airport that has low visibility or things like that, that whole airport would be completely shut down. so all those planes would have to go to other airport than you can imagine. then what would happen in those airports because they're not expecting an extra 50 or $100.00 planes that try to shoot over there. i'm expected like now kelsey, despite these concerns, cell phone companies, they've been quick to point out that as even mentioned in europe, there have not been any accidents in other countries where 5 d is actually operational. and as we talked about earlier this week, they kind of released the band. i know that's not your expertise by any means. i'm not trying to put you in that position, but as a pilot who's putting the lives of hundreds of people into your head doesn't do enough for you to actually hear something like, well, they're not having problems elsewhere. well, you know, the thing is, is that it's one of those tough, tough choices. because when you're dealing with the f a,
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they're always going to err on the side of the sound. like when you go to the doctor. and the doctor said, hey, we don't want you to walk on it for 2 weeks. could you walk on that for 3 days? you probably could walk on it after 3 days, but they're always going to err on the side of the f. a is going to the same thing with us and for the general public, they're always going to say we want to just test. if they're asking for 2 more weeks, i think in the gram schema thing, that's not really a big deal. they're trying to make it a stay for everybody as possible. so i just have to trust their judgement in a situation like that. now we've got less than a minute left here, but do you trust the communication that you're getting? cuz i know it's one thing when you see kind of these media reports and you see what the f a is saying, do you have confidence and do your fellow pilots have confidence that when it comes to this rule out that it will be handled appropriately? i think so, i don't think that the f a is going to let anything get into place that's going to really endanger the general public. so this system would create a problem. but really in a very small case, a very low visibility. the rest of the time, it's not a necessary thing that we have to have,
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but i don't think they're going to let something roll out that would generally increase any type of safety risk for the general public. no, we definitely hope so, and we'll continue to follow the story as it goes along. kelsey hughes from 74 gear . thank you so much for your time and insight today. thanks for having me. appreciate you. and finally, we have talked about many efforts to limit carbon emissions in the path and it seems that new french advertising laws may be joining that cause. now car companies in the nation will now have to put disclaimers on ad, asking people to consider a greener method of transportation as well. now include messages like quote for short trips, choose walker cycle, think about car pulling or take public transit daily. now they say the messages must be easily identifiable and distinct. if a company doesn't properly comply, it will face a 50000 euro 5. the regulation was approved on tuesday of this week and takes effect on the 1st of march. and rachel, this really is reminiscent of you know,
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how tobacco companies used to have to put disclaimers on their advertisement. i believe i think they're allowed to advertise anymore. and how obviously alcoholic beverage companies now have to say, drink responsibly when it comes to gambling. you have to say if there is a problem and give the proper numbers to call it everything. and it'll be interesting to see how many car companies want to sign on for that one. see how creative they could get with it. that's for sure. that's a good point, and that's it for the time you can catch boom by the on demand on the portable tv app available on smartphones and tablets. dig will play the apple app store by searching portable tv, portable tv. you can also download it on samsung smart tv roku devices or simply check it out at portable dot tv. well see you next time. mm. blue ah july. an annual festival in st. petersburg dedicated to dusting epsky. ah,
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awe gotten fire reports to leave rocks that cause like sun city about nazi as the government cracks down on unrest bought by a fuel cost rise further west in the province where the cutback process begun with rota. i felt that the airport is reportedly blockaded. 18 members of law enforcement have been killed in all. marty and a government building stormed and forged. a local journalist described couldn't find near the precincts. q in the confused logic. did it? every 20 minutes you can hear shooting near the police department. there's automatic fire and pistol shot. i think it seems like they are trying to storm the police to park and peacekeeping troops from a russian lead security alliance arriving. cause i've done to help the government to restore law and order.


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