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tv   Boom Bust  RT  January 25, 2022 1:30am-2:00am EST

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loan a chain to be merciless killing machines. now they fight and die in other people's was people carol a lot when a dead soldier or dead marine shows up in this country and we start asking yourself, why did they die? why do what would a fighting for? nobody bothers down to about that contractors a year with the room, but the one visit show you can coordinate some brand new board. and i'm rachel blevins in washington. coming up to the client,
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started to bounce back after hitting a 6 month low. has the latest fell off head crypto market across the board will take a look at what's behind the latest losses and if they're expected to continue. and it's not just crypto us market, they're also struggling with the us. and he logging it worst week. who's the pandemic began, and the nasdaq falling deeper into correction territory. we'll discuss it on that. then the united kingdom's economic rebound is in jeopardy, as it seeing if growth plummet to with lowest level in nearly a year. it's got a lot to get to look, it started and we lead the program with the latest from the world of crypto following a very rough few days for markets. it's the kind of news that has left crypto holders with massive anxiety since the weekend. the crypto currency market had around had lost around a $130000000000.00 of its value over 24 hours as the the day fell off of major
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digital coins accelerated. now bitcoin and the theory em are sitting about 40 percent and 50 percent from their respective all time highs. and on monday, bitcoin dropped below 33000 and briefly it's lowest point since july, according to coin metrics. but if there is any good news here on monday, bitcoin also finally seemed to stabilize around $36000.00. so what is happening and how much farther might bitcoin and other all coins fall? well, joining us now discuss our analysts and boom bus co host chrissy. i and ben font christy, let's start with you here. now we know it was a pretty rough 24 hours. so can you explain to us what happened? yeah, so it could have been under pressure since the fed reserve look to raise interest rates and the sell off in big tech stocks is prompting traders to go risk off, which included a lot of crypto names. and given the massive year that we've had in crypto with the quin adoption going mainstream to wall street, that is now playing out like
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a double edge sword. while having wall street hedge funds getting into bit coin and others for great for the rally. they're not long term hardliners, and so those fell as hedge funds all over began to quickly reduce leverage and cover future margin calls. so a lot of volatility and big coin is nothing new for long term traders, we've had 4050, even 60 percent. draw that before and while they are painful is just a certainty with the quite as it is the only free market asset. there are no circuit breakers and mark is no market freezes because it crashed too much in a day. snow fed swooping in to save the day, but bitcoin is a direct reflection of the true supply and demand, which is what makes it so great. and that was just the case on friday. we saw market maker dow had they had a $600000000.00 liquidation on friday, but it was saved at the last minute by another whale who was willing to swoop in and buy a big chunk at a discount. so a $600000000.00 liquidation would have been a huge impact on the market if it did go through. but fortunately,
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the 7 siblings came in and bought a chunk of 338. so there was a lot of delivered in going on funds movie over to cash and all, but this was basically a much needed re balancing in the crypto market. because while no 11 of the rally to and big coined did have a big gap to fill leftover from july of 2021, which it did, which allow the technical chart to basically resolve itself. absolutely love to keep in mind there. when we talk about this, people do get spooked when they hear about these giant draw down now. bad bitcoin obviously the world's most valuable crypto currency. it plummeted. 20 percent since the beginning of the year in november. it was trading at a record high of $68990.00, but its peers have actually fared much worse. is that correct? yeah, they actually have a mean the theory am drop. what? 12 percent over the weekend. so that's a pretty tough 24 hours you were talking about the 24 hour period. but, but the reality is this. look, we're watching this take place. if you went back to last november,
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remember it was all the sunshine and lollipops was all going to be great and it was to the moon. and the problem is, of course that there's been correction in the market as christy rightly said. but that doesn't mean that if you're in big coin a, you're any theory him or you're in solano or car, then or whatever, alcorn, you're in that you need to panic. and i don't think the panic, by the way, is actually coming from people who believe in these technologies or who are really invested in them from the early point. i think what we're going to see are more and more people who are new comers to this face. they don't know what's happening, it's all a scam and falling apart on me. and what we're also going to hear is how regulators need to step in and fix this christie's absolutely right. when she says that this is the free market is the only true free market that's left of is in this space. and so right now, because it is a free market, you have players who get in and then they get spoked, or they don't like this news or they decide they're going to get out whatever the reason might be. and the market has volatility to it. that can be a bad thing. yes. when it starts to drop it, it's a very good thing when it rises very quickly and the,
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the reason for the volatility or the, the cause of the volatility has made a whole lot of people awfully wealthy. just like it makes some people awfully poor . even hit to the wrong time, so you gotta hold on and you can't freak out just because you're watching the market kind of go up and down. it will probably continue to drop a little bit. and christy to beds point there, you mentioned on the show actually last week that much of the sell off is coming from new purchasers. not the so called hot dollars. why is that point so important? it's important because a lot of small intel any is caused by the short term trade or the speculators. the new traders, the hedge funds a foam on trader those who are only in it for the threat rather than what been said . people are holding it as an investment because they believe in the technology. because sure. given the last 24 hours a good chunk you can say, came from some long term crypto trade is operate on leverage to. but this cell was actually not fast enough to be a delivered a domino effect that we've seen before. otherwise we put his feet a cascade of orders, walls of oars at big point,
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fell and kept hitting new stop losses and triggering more margin calls. but that was not the case. we saw the funding rates are normal, not too high. so this wasn't like, traders were blown out of the market. so this was a methodical unwinding of positions from funds, institutional or clearing balance sheet for the new year. people who are freaking out all of the news. so it's unfortunate that this is a side effect of having a lot of flippers, whole, big wine. meanwhile, the proportion of big coin supply that has remain stationary for a year or more hit level not seen during the previous capitulation events. so that proportion is now about 60 percent, which is higher than after the march 2020 cobit crash. higher than that, the end of the 2016 bear market, and higher than that of the end of the 2001900 barrel market. when big coin had a low of 3100. so the current resolve among long term investors is still unshaken and hardly just continue to add to their position and glass note also confirm the presence of active haulers growing. so that is
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a nice thing to rely on despite these big impact that the institutional have every single time itself. it's just going to keep on going back into the hands of the real crypto community. yeah, that's definitely something that is good to keep in mind. now been, we've got about 30 seconds here. i want to touch on a point you made, which is that the cell off may not be over. how far do you think that will see bit cornwall? well, it might not be over, right? we might actually see a test around the $30000.00 mark we might even get into the twenty's or all the way down to $20000.00. it absolutely could happen. but the point, the christie made about the flippers, the people who are in this for the money flip are the ones who are going to get hurt, but they're always the ones who are going to get hurt. they're doing it for the wrong reasons of their strategy. isn't sound the one good thing about the price of all these coins going down is that if you want to get in and invest not when you want to do with your money, but now is a good time to invest. when you buy that dip because you hold it for 10 years and then see where you're sitting now. well, certainly continue to keep an eye on it. boom bus been swan and christie. i thank
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you both for your insight and give and us markets continued their downward spiral, spiral to kick off the week on monday with each of the 3 main indices, diving at least 3 percentage points throughout the day. and we're hearing a lot of talk about a dreaded market correction. now it should be noted after a turbulent start to the day, equities regain much of their losses, but issues still remain now coming off it's worse weeks. and the onset of the pandemic in march of 2020 the s and p 500 had officially fell by 10 percent since highs reached the beginning of the year. but it did re gain some losses mid day. at the same time, the tech having nasdaq is more than 15 percent below its recent highs in november, and the doubt is inching toward correction territory. having fallen roughly 8 percent off its recent hives. now the sell off comes as the leaders of the federal reserve are set to hold their 1st meeting of the year to talk about future policy
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with inflation in the u. s. rising, had its fastest pace in 40 years. now, all analysts are projecting for interest rate hikes. this year, the fed is not expected to move until march, and it should be pointed out that inflation issue. well, it's not a uniquely american phenomenon, as economies worldwide are feeling pricing pressures. in fact, december 7 percent inflation may seem kind of poultry compared to huge numbers in a country like turkey, which i 36 point one percent in place rate in december. as the lira has fall to record low them. it incredibly easy monetary policy from the nation. central bank in argentina, prices rose 50.9 percent year over year in december. the highest among g. 20 nations as price controls have not been having the intended impact. meanwhile, brazil has seen an inflation rate of 10.7 percent year over year as it faced the severe drought in a weakening re out outside of g 20 nations venezuela saw the world's worst inflation coming in at 686.4 percent in 2021, but since december,
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the month to month, numbers have remained in single digit. so joining us now to discuss is best selling author and founder of the bear traps report, lawrence mcdonald, laurence, the pleasure to have you on the show today. i want to start with what's happening in us markets because as we discussed, they were down at 1.3 percent, and then a rally to kind of close out the day actually brought the doubt back into the green territory even after falling 1000 points. now we've heard analysts say their pricing in an interest rate hike and the fad is moving to an easy monetary policy. and that's why we're seeing all this action. what do you think in markets right now? well, thanks. it's great to be on the program. i think i've enjoyed the show and all of a job. we run a bloomberg chat with about $650.00 institutional investors in $23.00 countries. and it's all by side. so your hedge funds are mutual funds or pension funds. and we
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measure capitulation. i thought i'd tell you this all started right around thanksgiving, the fed leak to goldman sachs 3 hikes instead, a 2. and then maybe about for another 2 weeks ago, there was another leak out of the bed to goldman again, for hikes instead of 3. so the fed is basically floating these balloons in terms of their with thrall of accommodation in the markets has been pricing in a very, very hefty pullback of accommodation. and that's what's caused this capitulation sell up. but i will tell you that financial conditions behind the scenes are tightening far faster than you can imagine in so the fed is really playing with the serpents here. there's a real serpent in the market. financial conditions of beast in the market, and they're biting off more than they can chew. they're going to have to walk back a little bit. so all the indicators we see in terms of new lows in the nasdaq, in terms of, of put call ratio. we have about, you know, 20 indicators of will. capitulation,
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i think the lows are either in today or tomorrow, offer tradable bouts. especially in the tertiary names. you're your biotech, your ark, names of those, those, those names really came out of a whole today. and we see a counter trend rally here starting today tomorrow, which last several weeks. well, that really is notable, especially as we've learned that you know, chairman j. powell has worked so hard over the last year to keep everything steady with the markets to let them know that he is going to communicate. and so it's interesting to kind of see that uneasiness. now at the same time, this is all happening during earning season, and you would expect this sell off to be indicative of poor results, but so far, nearly 75 percent of s and p $500.00 companies that have reported actually beat their estimates. so why is that not helping to relieve this volatility right now? you know, it's, it's so sad. the earnings mean absolutely nothing. in the 4th quarter of 2018,
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we had the best earnings corner we've had in probably 3 years. and the, but the fed was promising flow rate hikes in $2194.00. and they were promising also quantitative timing, which means reducing the balance, not just a pre reducing it. so the fed in the 4th quarter of 2018, was promising for rate hikes the next year, plus another 3 hikes in terms of quantitative shining, so $78.00 hikes in the beast and the market sold off socks. the earnings absolutely middle incredible earnings results that quarter in we sold off 20 percent. the similar thing is happening right now. it just, unfortunately with accommodation and with the game in terms of what, how much fiscal and monetary juice they put into the system of things like earnings are really backward looking. and you have to look for the bottom line is the for when the fed over the last 3 peaks took it up to 4 rate hikes for 20 and 22. and they took it up,
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ensure of the they brought quantitative tie the on the table again. so this almost the same thing for 2080 if they walk it out back to 2 likes. it may be a quantitative 20 out further in the future. not this year. ok, that's enough for a big, big rally. and i guess i know you're saying that we're going to see a bounce. we could see a rally, but there is no concern that this bubble is bursting here and i got about 45 seconds. i do apologize lar, true, while the exactly the we have a counter trend rally the glasses of lease, but i think you wanna, for now, you want to sell the rallies in raise cash. and we could be in over the next 6 months for some with so much more difficult time. so enjoy the rally. love arthur. battle of the bear traps report. rev abby back. i appreciate your now so that was great today. thank you so much. thanks. and as tenses continue to build between the nato alliance of russia, the u. k is reportedly signaling that if a military conflict does break out between russia and ukraine, it would support sanctions that could include blocking the north stream to pipeline
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. and suspending mosque out from the swift international payment system. and this actually would not be the 1st time the u. k. has made such a proposal, in fact, back in 2014, following a u. s. supported government overthrown ukraine. the u. k. also reportedly planned to push the e, u to block rushes, use of swift, and an attempt to cut the nation off completely from the international payment system. now, rachel, it seems like, you know, we've heard a lot of this talk and what could happen and there's economic sanctions on the table. but if they were to cut off the swift bank, and of course the north seem to pipelines, does the west really have more leverage? and i mean, is this even likely to happen? you know, at the moment it seems like they are trying to come up with a number of consequences to kind of put in front of russia, even though russia has said time and time again that they are not planning to invade. but at the same time, when you think of those consequences, we also have to remember what it would do to european nations and of the u. k, especially when it comes to cutting off the north stream to pipeline which they
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desperately need. and at the same time, if they were to cut russia off from swift altogether, it would teach russia to be even more independent, which is exactly what we have seen them do. with this entire continued campaign from the u. s. to try to isolate them. we've seen them turn away from the u. s. dollar go more towards gold, and that is exactly what happened. very interesting and time now for a quick break. but when we come back, the united kingdom has seen a drug flow to a near one year as low as the nation is struggling to balance back. we'll dig into those details as going to break here. the numbers of quote, the me
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with james all down through here. all of mr. larry over here. so your camps are always a little nicer than this. this is evidence of absolute poverty, despair, and people in our city and other cities all across america are living like this. where at the original need and village that opened up in 2018 right now. there's 31 homes on the property. it's a little over 4 acres with 31 homes and a community center. unfortunately, a lot of people don't make it out of edition more homelessness and i'm just really happy. it made it bad you with what we've got to do is identify the threats that we have. it's crazy confrontation,
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let it be an arms race, his offense bearing dramatic development only personally and getting to resist. i don't see how that strategy will be successful, very difficult, time. time to sit down and talk what happened? i make no sense. you know, born is and is blind to nationalities and you fresh as a marriage. we don't have maternity, we don't have a vaccine. the whole world needs to be ready. people are judgment, common crisis with we can do better, we should be doing better. every one is contributing each in their own way, but we also know that this crisis will not go on forever. the challenge is great.
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the response has been massive. so many good people are helping us. it makes us feel very proud that we're in it together with join me every thursday on the alex salmon show and i'll be speaking to guess in the world, the politics, sport, business and show business. i'll see you then in the air. welcome back, while inflation in supply chain shortage to continue to take a toll and increase and cope 19 cases also hit consumer services sector in the u. k . so any of your kind of growth to an 11 month low in january, the us market index came in at $53.00. now we will always know that anything above
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50 represents growth, but it is still the lowest. the index has fallen since the u. k began lifting restrictions last year. now meanwhile, tensions with the you continue more than one year after breaks it was finalized. one of the main points of contention has been the northern island ireland protocol . now, top officials from both sides met and brussels on monday, following a week of talk between their teams. the u. k. has requested significant changes to the deal, noting that as it stands now, the required border checks for northern ireland treated as though it is no longer a part of u. k. in response, the use chief for exit negotiators said he is highlighting the importance of the current deal because it was the only agreement they have been able to come to so far. and ultimately, it is about ensuring stability, predictability and to prosperity in northern ireland. so, bearing in mind so that the protocol represent sir, the one and only solution found jointly in lights of rags it to protect. so the
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gains of the peace process and avoid to hard border on the islands of tutoring in san this gas is hillary ford, which president of straw mark business development consultants, an board member with the british american business association. now, hillary, what do you make of these talks? i mean, is there hope for some kind of deal that would address the concerns that the u. k. has presented? will rachel, pleasure to be back with you? and there's always hope. yeah, this range of a few things. i actually would agree though with raoul rooper all, he's the full, my advisor, the prime minister on europe. and he said that as a definite softening anabetta tone, an atmosphere between list trust, the car minister, m my of so could they. and actually they came out with a joint statement. awful. last meeting. yes. they messed met in brussels to day after meeting in kent. so a couple of things, one thing she came out and said he has said after that meeting at the end of the
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day that he will not work to an artificial deadline. he will not be forced into an artificial deadline. although he's going to act with a sense of urgency. so i think what you're seeing is that you know that, that, that the you doesn't really want to barge on. this is far more political than anything else. we could move them on. and of course, is a very political issue that yes says, oh, and yes, there seems to be somewhat of a softening and a better than as everybody and hillary, i mean, obviously we've talked about this issue quite a bit on the show with you. and you've noted that the eve doesn't really want to make it easy for anyone to leave a but has that actually been the driving force behind this conflict? as far as keeping the northern ireland protocol in place or is that you actually happy with the protocol as it is? well i called speak to the you and i or anybody would say anybody is actually quite happy with the situation. ah, go right, brent. in that, of course, like why would the e, you want to country to lee? now does it make them look good? it's like when someone leaves your club, when someone leaves you, when someone does us, you know, it doesn't make the,
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you look good. and they're also concerned about all the nations, if all the nations see that this is not fraught with any kind of distress that other nations might need to. what's interesting is married so cubic has also said that if there isn't some kind of settlement on either side, that he will suspend discussions or breaks it at the end of the month at the end of february, before march to basically he and the, ironically he's actually said he wrote, set of fools deadline or artificial deadline, and yet he sort of setting him in himself by saying the end of march. what was interesting also was he said that there are less, i think it was on the map dentist protocols than any other food country that they've made. so he basically is saying, you know, you have a great deal, britain of the u. k. you know, you should take this or else we're gonna stop speaking. so he is actually basically laying down a deadline. and her st. you at me thinking that it would be encouraging country is
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to stay, not encouraging them to just not lee via when it comes to all of this. i mean, i also want to bring up the u. k. the economy because it did record at the lowest growth in nearly a year with inflation at 30 year highs. and the bank of england is expected to raise interest rates again next month. so what do you see as the main economic concerns for the nation right now? and is it on a path to stability despite the latest data? or do you think rachel, actually, ironically, despite the data, i do think it is on upward trend, a long term upward trend. and i think a few people to read me. adam holding, he is the chief economist over there at capital economics. and what he said is he called the other good. actually he called it the only cron hangover and i thought that was a good way to basically position is don't get the u. k was hit rather hard heart of the most of the european nations with on the cross. so you have staff shortages and economic shortages in economic pressure in terms of all of the goods. the supply chain obviously was suffered far greater in the u. k than anywhere else that there
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weren't the goods and some of the shows were empty, the consumer couldn't go out and buy them. also consumer confidence was hit drastically hard by omicron pot. if you go back to adams, quote, this is the only one hangover. he says, he thinks there will be a very swift recovery at the by the end of q one that's now going into the rest of $22.00, the end of this quarter. and i tend to agree with him because all the underpinning fundamentals are good. manufacturing is up in the u. k. what was really hot, it was the services industry, the leisure industry in the hospitality industry. but of course, as we know, the u. k. is doing a lot of deals around the world and that bodes well for the future. yeah, i certainly a lot of moving parts there. hillary ford, which of straw mark development consultants. thank you so much for bringing us up to speed. pleasure. and finally, months after a russian actress and her crew became the 1st to film a movie in the outer space. well, tom cruise is now looking to join that exclusive club with
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a production of his own. the new project is being launched by the u. k. base space, entertainment enterprise and it aims to build a studio that would be attached to the international space station that module referred to as c. one is currently being developed by axiom a company based in houston, texas. when completed, it could be the world 1st content and entertainment studios and multi purpose arena in space. right now the date for launch isn't until december of 2024 and tom cruise is expected to be one of the 1st major actors involved after nasa confirmed they were working with him on some sort of space film. but we still don't know much about it, including what their budget might be for a space launch. i bet it's going to be large. now they called you and they said, hey we, we want you to come up to our arena and space would you? of course, i've told you at times rachel, i'm ready for space. i'm here for it. well, as long as we can send a tv with you and you can talk to us down here, i will stay happily here. honor. i like the word space arena. it makes me think we
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might be looking at space olympics sometime soon. oh goodness, i think the regular olympics figured out then maybe maybe that's in the future. and that the for the time you get us on demand on the fordable tv app available app, portable that tv and it will see you next me ah, yeah. ours in el salvador mclean, the type of been more than station country. it's made big claim, legal, tender. it's one of the fastest growing countries in the world. them and things happen in a good way when you go all the way. because the still large enough to satisfy the ambitions of jeff bezos, you know, it's got its tentacles in so many aspects of the economy. there's nothing that amazon isn't trying to get into to step by step. the amazon empire has extended its
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group on the world that walks like a dog inquiry like a dog gets it out of. so amazon looks like monopoly trades like a monopoly makes money like a monopoly behaves like monopoly. amazon essentially controls the market place is, are really a market as a private arena, a world where a single company controls the distribution of all day, the products and the infrastructure of our economy. is this the world according to amazon? long no one else. so seem wrong when all right, just don't hold any rules yet to see how did they become the advocate and engagement equals betrayal. when so many find themselves worlds apart, we choose to look for common ground. ah
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ah, the west rat ship is up the temperature further over alleged russian plans to invade. duke graham bolstering its military presence in that region. that is clear of itself, says there is no reason to panic, insisting and attack is next to impossible. to pursue job, i'd never is caught on like insulting a fox news journalist trying to get answers from the president over the record inflation plaguing america and fighting for transparency. we speak to a lloyd oak force, the ga to release dogs.

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