tv Boom Bust RT January 14, 2022 5:30am-6:01am EST
boom bus one business show you can afford to miss brad jabbar and washington. here is what we have coming up. supply chain issues are straining prices and inflation across the globe. but how long for the situation? drought will bring you in depth analysis. and the world economic forum had issued a warning that cyber attack could threaten the world's economy to any other major issues like climate change for that issue. we gotta factual today. so let's dive right in and we leave the program in the united states with a story that has been dominating headlines that nearly every major publication here reminiscent of what we saw at the onset of the coven. 19 pandemic photos of empty shelves and local supermarket have been pretty much everywhere. recently, shortages that us grocery stores have become more and more common in recent weeks. as the i'm a crown variant and a series of weather events have piled onto the supply chain constraints. and the ongoing labor shortage for more on this issue. and what we can expect moving forward to, to archie correspondent paxton boyd shelves or mt a,
be chicken eggs, fruit and vegetables. even non perishable items. hard to find in some grocery stores. now in a normal year, 5 to 10 percent of food items, maybe unavailable today, roughly 15 percent or out of stock. that according to jeff freeman, president and ceo of the consumer brands association, official say things may not get better for the next 12 to 18 months. now, there are many reasons for this, including in increased demand for groceries with families choosing to eat at home during the oma kron search. as we saw here in the d. c. metro area last week, winter storms have effected major interstate. and a shortage of as many as $80000.00 truck drivers are out nationwide. that's a historic high, according to the american trucking association, because of this expert say to expect price hikes and food shortages similar to what we saw in 2020. now here's what you're seeing as a result on tuesday, wal mart kroger and albertson stocks, dips albertson's, taking the biggest hit,
indicating a trend among major grocers being affected by the supply chain issues. also these strips to the grocery store, going to cost consumers even more with inflation soaring to 7 percent for the 1st time and for decades. now with the united states seeing more than 700000 cases of coven 19 per day, on average during this omicron surgeon, slowing down food manufacturers and causing grocery store workers to call out sick . and we heard reports from companies talking about. they've had more positive tests in the past 2 weeks when they had in all of 2020. those posit text tests are taking people off the front lines. it's forcing companies to shut down manufacturing lines preemptively. and it's leading to just simply not enough supply . now experts, a store shelves may not return to normal until this pandemic, let's up staffing returns to normal and the global food distribution network is restored. for r t america, i'm paxton void in washington. dc said,
sticking with strain supply chains, retailers in the united states are facing yet another round of slowdowns in sales. at the i'm a convent continues to spread. the drastic surgeon cases is driving people back in doors, while companies say it's causing staffing shortages and labor constraint making, supply chain issues even worse. archie correspondent, 20 chavez has been following the story and filed this report. the um, crown variance indenting retail sales and leaving stores and distribution centers understaffed, leading to reduced operational hours. macy's, which operates 516 full line. macy's department stores and $33.00 bloomingdale shops, was forced to cut at store hours at all of its locations amid the surge of covey cases. little lemon also said seals and the november to january quarter will come out on the low end of its previous expectations. due to short store hours at some locations tied to the labor constraints, while abercrombie now predicts that net sales in the january ended quarter will be down to percent compared to 2019 levels. it previously forecasted that the net
sales would be a 3 to 5 per cent. on a 2 year comparison, the company, c, e o, fran harowick said in a statement, we do not have enough inventory to keep pace with customer demand, resulting in lost sales. during the peak holiday selling period, some forecasters have expressed concern that om crown could exacerbate tightness in the supply chains and labor markets, already stretched thin by pandemic conditions. according to newly released employment data companies have been competing for a limited pool of workers in november alone. 4.5000000 americans quit their jobs. and while employers have added a $199000.00 jobs in december, slowing job growth in recent months has made it difficult for companies to find workers as labor supply remains tight. and while many major retailers like wal mart and home depot, we're able to sidestep a lot of the supply chain issues at smaller retails like gap here in new york city, simply told customers that they may not have enough inventory in store during the holidays. in new york trinity trav, as our team with all of this in mind,
let's go ahead and take a look at exactly what is happening with supply chains with boom bus, co host, christy i and kevin jackson, the host of digital transformers at supply chain. now, thank you both for joining us as always, kevin, i want to start with you on this. when we look at these supply chain issues, it seems as if there is kind of this perfect storm of things happening. we have a highly transmission, transmissible armor cranberry. it a labor shortage due to the great resignation, shortage of truck drivers, and now in the height of the winter months, severe weather events. so what are you seeing as the current state of supply chains right now? oh, thank you very much to have the own again. and one thing you, you didn't mentioned inflationary credit, name, rand dates and, and parents that need to deal with this on again, off again in person school and home schooling challenges. all of these are really making a horrible soup for the workers. supply change. yes. all fragile for don't confuse
our current state with where we were last year. last year, we were dealing with the dual shock of precariously extended supply chains and crashing domestic inventories and fear of unknown pandemic dangers. today, we have affected vaccines and a better handle on the science that we're dealing more with human management issues and economic repercussions call has been part from sharp fiscal stimuli and from end pervasive mis information was actually happening. what we need now more than ever is to reduce societal fears, an overreaction that we may be seeing in the marketplace. absolutely. our christy, we've been talking about supply chain issues since basically the onset of the pandemic, as kevin actually rightfully mentioned, although the issues have changed throughout that time. now if you go to the supermarket in some areas shelves look like they did in the early days of panic by,
as people worried about widespread locked out. you know, how are these factors keeping shelves bear that all the things that we've talked about? i've talked about inc, haven't talked about their while. yeah. the goal, the supply chain disruption really never got fixed from the beginning. it just continue to live on in the background. so there's still the congestion at the port and still you have the shortage of the truck drivers and service workers despite the fact that now ports are 24 hours, those didn't really fix anything. they sort of believe it but not really. and also on top of that, there are panoramic trends as well. things like 40 and stockpiling items like paper, good, 10, sanitizers cetera. so americans are also eating more at home than they used to, especially since offices and some schools have to remain closed. and psychologically, as consumer see their favorite items out of stock at the market, they switch back to and stockpiling mentality immediately. so brands like costco have now put limits on purchases, a certain items like plummet paper. and then on top of that with certain items,
be hard to find many are now costing even more with package, with full size, with inflation, of the prices of goods rising with inflation and also shrink place with the actual packaging and the total both of the goods that you're buying actually shipping as well. that's interesting. i do every, every now and again, you mentioned shrink. place christie, that always. i'm always like, that's the point. that is one of the big points that we talk about. kevin, i want to go back to your initial point there before we get to the kind of the next topic that i want to hit on there. because you mentioned all of these new factors and sometimes, you know, i don't want to be crap when i'm talking about these issues. but the fact is, we're 2 years almost into this pandemic. and when it comes to anything, and this is obviously the side, but when you look at how hard it is, even just get a test in the united states right now. it almost feels as if we didn't learn anything from the last 2 years on how to handle this or even start to be able to adapt. well, yes, we have learned a lot,
but adaptation takes time and that's something that we never have had the luxury of doing. it also requires a real change in the way we view our economy and we're moving faster than ever move before with respect to communications consultant. that the change of the products and services that we really want to consume and what and what consumers expect has risen their expectations continue to rise. so yes it's, it's hard to change and to, to quote new normal. but we've learned a lot and we've got, we're are getting better, but we'll continue to change the way it went. it went back and was doing his package there. he mentioned about the fact that, you know, analysts are now looking at 12 to 18 months before these supply chains might be
able to get back on track. haven't, i mean, what's your insight into how long it might take before we get back on to some sort of track here? well actually i think that's about right as, as the goal trade system cerros in the judas new long technology will be used to greatly improve the supply chain visibility and the flow of related information about the supply chain. these investments take tom to actually get the funding in place and to implement these changes, but these will help fill up the shelves and hopefully reduce the rapidly growing inflationary pressures that really are threatening the budget at home. we also need to avoid this rate retrenchment from global economics. the world economies are intertwined. we have no choice but to actively engage with friend
and perceived pose a what we are on this globe together and we are really a global society. so trade and economics will continue. absolutely, well, kersey, i got about 30 seconds. let me give you the final word in a segment. i. yeah, i think that's absolutely right. and the thing is right now the u. s. economy, it's still a really strong consumer demand. still remain strong, and as such me, we still are receiving records amount of imports constantly. so it is going to take a next while to 16, perhaps even 18 months to play out these ports because with the continuous shortages and weather and pendant and also the fact that we are on pace for record invoice by experts to decline. this is just going to make the entire decouple as ation a lot more difficult actually. boom bus. co host christy. i kevin jackson house, the digital transformer, that supply chain. now, thank you both for your analysis today. thank you. and as we
just discussed in place and continued to run ramp at the consumer price index, jump 7 percent in december compared to the previous year. this is the highest rate of inflation since 1982. i know you're probably sticking hearing that at this point . now, as the u. s. federal reserve looked at the timeline for pulling back at the monetary policy bed chair jerome pow on tuesday, actually spoke about how supply chain constraints were affecting inflation during its confirmation hearings for his 2nd term in his role. elevated demand, particularly in a part of the economy, the good sector, the durable, good sector, things like washing machines and cars and all of the things that people bought during the support of the pandemic when they couldn't spend money on travel and services. that's where there's spending is running at a level 20 percent above where it was before the pandemic. and it's just kind of overwhelmed the supply chains and most of which are global in these days, you're getting parts and fully assembled products coming in. so we can,
we can affect the demand side, we can affect the supply side, but this really is a combination of the 2. and as we've been getting a whole host of economic data this week, the us labor department reported producer prices rose 9.7 percent in december, year over year. this was the biggest increase in the government. started actually tracking this symmetric in 2010. so it's all raises the question, just how closely is the central bank i supply chain issues and what can actually be done on their end. joining us now discussed is the one and only former fed insider and theo will intelligence danielle de martino. but they are always a pleasure to have you on the program, you know, with all of these factors we've talked about in recent months, pushing prices up, how much of an impact have the supply chain constraints had on inflation as a whole? so i think that the supply chain story, the narrative, if you will, is something that actually goes all the way back to the 1st trump tweak that started the trade war with china. so this is been a slow build in the u. s. economy that then exploded after the pandemic hit and
become much became much worse. but i think we have to bear in mind that the, even, even as bad as this morning's print was going 9.7 that rounds up to 10 percent. wow, that's a double digit number. the month over month increase in producer prices was not as much as what was expected. and i dare say that a lot of american manufacturers have moved. they've been badly burned by the supply chain disruption and they've moved away from a just in time inventory system to a just in case inventory system. and we are indeed starting to see indicators in manufacturing surveys that inventories have begun to build. so to care power point, i think that we could see alleviation on the supply disruption front here in the medium term, that's not going to do anything to effect grocery inflation. the fact that manufacturer is still need to pass the cost through to consumers for what they've been eating in terms of the supply chain disruption and, and, and worst of all rental and housing inflation. you know,
i don't want to make light of this situation because there are a lot of factors and a lot of factors that are very bad. and when you look at what weather can do to people, what the arm across variant can do to people. people being out of work or people not being able to work for that matter. and you don't want to make light of those situations, but it just does kind of show how fragile our supply chains are. and when you look at news throughout the world there, you know, where there could be something like war or, you know, other geopolitical issues that could make this even worse. i mean, just how bad can this get? well, it can get worse. look, we've got we've, we've, we've got huge negotiations coming up in long beach, in los angeles. the, the workers at the port, their contract expires, september. the 30th the blacks, one event might not be a container getting stuck in the suez canal. it might be something a lot closer to home to where as they've done since $990.00 these port workers go on strike. and that could completely slam the supply chain. just as many, just as retailers is starting to try and stock up for the holiday for the back to
school and the holiday season. so there are any number of wrenches that you can throw in, but again, i would step back and look at the growing inventory numbers. and the slowing that we're seeing in the economic data for the united states, which is evident in the bond market and how badly stocks got hit today. i think that there are, did i think that there are tensions right now between the demand that j pal describes dissipating in terms of households and the supply chain disruption. i mean, when he says to it seems odd when he says, you know, we could take care of demand, basically say, we'll put less money into people's homes. but we can't do anything about the suppliers is ever that's what he was saying, right? that is basically what he was saying, and he's actually referring to the fact that, that, that january, the 15th is going to be the 1st month since july, that american families have not received the child tax credit in cash. so there is indeed some demand destruction coming down the pipeline of the, of the fiscal nature. and that that can try and slow the economy by tightening
policy, by raising interest rates on march 16th when it sounds like a lot of fed officials would like to pull that 1st trigger. but the question of, of actually impacting the supply chain. he's right, there's not that much he can do about it, but american companies can and they can build up, they can stock pile more than they need. and we could end up talking about this 9 months from now how it's become problematic. you never know. absolutely, do you know, i apologize, but i have up against the break. i have so much that i would ask a good deal, and it's got a good while brainer on the hill today, but we'll get to that next time we have you on a former insider daniel dean martino booth. thank you so much. thank you. and time now for a quick break, but when we come back cyber tax, we're one of the highlights of that dominated the year. and now new reports are predicting that it's the trend of it is here to stay. we'll discuss that's going to break here. the numbers with
waller officers are facing an increasingly dangerous environment. we are seeing a growing debate about so called warrior cops the term that i've heard in the militarization of believe this is a nam wrap. the vehicle we acquired to the 1033 program and very free program of the government program that funnels military property that is no longer use to local law enforcement with building an army over here. and i can't believe people are see, 1st thing and as a tier is any it again, a feeling you have to deal with. are you putting in a mule a different time? is like money in play tricks and people miley big bad nurse walkers out the door.
then l, well reduce a lower that's undergrad and what's good for food market is that good to the global economy? the so called enhanced interrogation techniques used by the u. s. officials were basically designed as techniques to break down the human mind. if you force a human being to stay in a certain position doesn't take very long to the pain involved, to become absolutely excruciating, but nobody's lean finger on you. you are doing it to yourself and we started adopting those techniques when i was station and mosul among them were stress, possession, sleep deprivation. and using hypothermia is already beginning to be evidence that these old techniques are now being used on immigrant and children,
whatever you do or more comes home. nobody has been held accountable for the torture that happened in the past. the moral authority, the made america will sacrifice for the shimmer of effective interrogation the welcome back. we already knew it was a devastating year for cybersecurity in 2021 with high profile ransomware attack spending major infrastructure like the colonial pipeline and j. b. s. meet in fact, cybersecurity firm checkpoint, research relief, new data that we show here with a record breaking year for cyber attacks among its customers. in a release about the situation, the company's research manager wrote quote, last year we are staggering 50 percent more cyber tech per week on corporate networks compared to 2020. and as he points out, that
a significant increase. adding the log for j vulnerability made things even worse to close out 2021. things are so bad. the world economic forum issued its own report tuesday thing. cyber threats are emerging risk to the global economy. so let's go ahead and take a look at this with this warning that is the day which got over c, e o of berkeley. very tronic system. scott, pleasure to have you back on the show. i want to start with the, from the world economic forum. they're pointing out to the fact that the pandemic forced people to work from home, making remote log in and things of the like more common. how is this adding to cyber threats? well it's, it's kind of of a difficult issue because it's so many different things that cyber criminals can now do. they can target people at home much better than they can at the office. if you think about the job, you've got it. they've got things in place to keep you safe when you're at home, and a lot of people went back home in this next way. but with the pandemic suddenly remote
access is a huge problem fishing scams. huge problem. ransomware attacks are on the uprise as you, as you mentioned there, it's getting worse and worse, unsecure network connections at home. you're using your home, why fi router? you probably don't have it configured securely with w p a to w p a 3 encryption set. you don't have a strong password as you do, and it's not managed as well at the office employees, they can't spot skims. why? because at home, you're distracted, the guys delivering an amazon package, the dog's barking in the backgrounds are not as focused and concentrated on keeping things safe. still weak passwords not using to factor authentication. they're using their own personal devices. so there is a ton of reasons why working remotely just opens everybody up to more vulnerabilities that can be exploited. and you know, we know what the obvious economic consequences for something like what happened with the colonial pipeline, obviously, or even what happened with cosette. but what else is there to the threat to the
economy that they're looking at? well, just think about ransomware tax alone, which is one of the, the biggest sectors that's growing, growing 60 percent of small businesses when they're victimized by a ransomware attack, within 6 months, they close. that means all those employees are out of jobs. the company goes under . it's that big of a devastating effect. if you look back to a couple years ago, the average ransomware power was about $5000.00. you look last year, the average pat was well over $200000.00. so cyber criminals are making a lot of money and they're putting a lot of people out of business. now there's always that talking point that we hear that the cyber criminals, they're more sophisticated leaving those who are actually trying to protect against them, way behind. why are we able to keep up with all of this? i mean, you know, it feels like in the movies that i hate always use that allergy, but you have the hackers that they hired to do security for the company. so that
way we would never say the thing that doesn't seem to be the case. now it will think about it this way. for a cyber criminal, they've gotta get it right one time. that's really all they gotta do get it right. once we're good guys us, you gotta get it right. every time from preventing them from getting in that is will really difficult. the other thing cyber criminals do, they're very deaf that as they share information. so when, when they've got a trick, when they've got the next train of malware, they're going to share that with another cyber criminal. the communication using automated tools to help and all that's available down in the dark web, most of it for free, whereas private and public sector, we're not sharing information really well. it's protected, it's quiet. the government's not sharing enough with what's going on in the industry. and that, that lack of communication is making it really difficult for the good guys to fight off the cyber criminal. so i predict it's going to get a lot worse before it gets better. i mean, that's a concerted warning, but i feel like i, i agree with you at this point that one last point i weigh about 30 seconds for
your answer. but you know, cripple currency is obviously always throw it in there because that's how they're getting paid. now, but they used to get paid and bags of cash. that's how the criminals did it as well . so it's cyber is crypt currently really making cyber crime worse? oh, yeah, it unfortunately is. and think about just in the general sense, what is crypto currency? it's allowing them to have no intermediary, there's no bank, there's no middleman, nobody that could track it. it gives a degree of anonymity which is ideal for cyber criminals. you can't chase them down and catch them, which allows them to really thrive. it's difficult to survive with crypto currency really taking on by such a storm, specially with ransomware. i mean, and i totally get that point, but i think there obviously has to be some middle ground because it seems like crypto currency is definitely here to stay. if you are to show, you know, we can pretty much every day. scott show over theo, of berkeley very tronic system, always appreciate having you on the program. thanks friend me back. that's it. but this time you can get boom bust on demand on the portable tv app available on
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