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tv   Boom Bust  RT  January 25, 2022 11:30pm-12:01am EST

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diligence, i see i was a chat, as i drove professional, joe is he's with when the full moon wouldn't look what it is when the sunset that looked with no loan, if you are sure which way 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 in i iss
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with this is boom, that's all in business or you can't afford to miss. i make a love it i bridget bore and watch again. here's what we have coming up with natural gas prices are storing in europe. at global and certainly continues to stream supply will discuss what's going on and the big coin fell off, rages on the world. foremost critical currency has lost more than $10000.00 just this year. we're to bring you the latest. then federal reserve kicked off at 1st meaning in 2022. so how many interest rate hikes can we expect this year and is that side going to be able to team flooring and placement for the staff with a former insider? we have a lot to get you to, thanks to, let's get started. we leave the program with rising energy prices throughout europe . there has been an increasing amount of talk over the past few weeks about what will been if russia invades ukraine. now,
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despite the fact that russian president has said that he has no plans to invade the neighboring country, the united states appears to be making plans for possible military conflict with russia. and at the very least talk of unprecedented sanctions against russia. though all of this is taking place against the backdrop of europe's ongoing energy crisis. in fact, the price of energy across the world has skyrocketed to unprecedented levels. and it trend that's being exasperated by geopolitical pressures. now, according to the european commissioner for energy, the soaring cost of gas has clearly impacted energy prices on the continent. to joining us now discusses room by co jose, the best journalist, ben swan. now ben will all of this talk about possible military conflict with russia. make the cost of energy in europe even higher and make this even worse. yeah, i don't see how it couldn't look right now. what we're hearing is a lot of talk about sanctions about the possibility of war about
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u. s. troops possibly going to ukraine to fight alongside the ukrainians. i mean, the talk right now the rhetoric is ratcheted up so high. meanwhile, you have a number of european nations that are trying to bring down. i think some of this talk because of the fact that they're dealing with ridiculously high energy prices . that's been the case now for several months. we talked about a lot on the show, but you talked about the e u regulator. you talked about this, i want to share with you the wording that she use, she affirm that the get this current astronomically high prices for electricity and gas are placing an intolerable burden on homeowners and businesses and intolerable burden. that's it, that's i think a pretty good way to summit up the price of gas is incredibly high. it is not going to get better when there is talk of gas disruptions possibly coming from russia, which provides about 40 percent of all the gas for europe. right, and yet, even though we're talking about, you know, something that is going on, whether it's with the e. u, with ukraine, with russia,
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we still had the united states getting involved in all of this. and meanwhile, we also had the u. s. in talks with energy companies and major gas producing countries globally about the potential for a large supply of natural gas to europe, in case russian deliveries are interrupted. so is the u. s. making the case to figure out that other countries, countries, other than russia, will have to provide natural gas soon. i mean, what kind of message are they sending here? but i think it's a terrible message. look, president biden is apparently trying to, to bring sol as to you nation say, listen back, what we're talking about here. don't worry, we'll take care of your energy problem and how are they planning to do that? well, he's talking to countries like dubai, and asking dubai to be responsible for bringing in the majority of this, this natural gas into the area. which again, that's not going to happen if, if talking about 40 percent of all the natural gas energy that is provided to the e. you comes from of all places. russia and you're saying you're going to replace
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that 40 percent when prices are already at. and astronomical levels not going to happen. so i think what, what the, by the ministrations trying to do, and president biden is trying to do is work very hard to reassure european countries that there won't be a price to pay if you back these moves against russia. there's absolutely will be in terms of the economic pain that's already been felt it will only get worse. absolutely. now present, biden's also insisted that there is total unity among western powers. after crisis talks with european leaders on how to deter russia from it and attack against ukraine a. but what does that unity actually mean? was interesting because in the us there's a lot of talk about possible military intervention. the, the rest of the world's not talking about military intervention and back in the u. k bores johnson there is talking about sanctions, right? they want to see severe sanctions against russia. other european countries like
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germany talking about sanctions. they're not talking about all out war. i think would you have to recognize that this is a very serious ratcheting up of rhetoric that we've seen in the last few weeks, especially coming from the united states and from the, from the neocons in the united states. right. who have been anxious to get involved in another war. a war with russia is not like a war in afghanistan. it's not like, you know, a war in syria where we're funding rebels and we're dropping bombs. and there's no consequence for the united states. war with rushes very different, but also we have to recognize that russia has already made it very clear that they are very closely aligned at this point with china on these issues. and so you're not just talking about russia, you're talking about russia and china, potentially, and that creates a much bigger problems. i think the rest of the world is saying we can keep talking about sanctions. it sounds good, but there's no real, you know, in the, in and of itself. it is not war. i don't know that they're willing to, to walk,
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you know, lock step with united states into a war with russia. and, and certainly as notable to watch how the u. s, especially even as ukrainian officials are sitting there saying that an invasion from russia is not eminent on their side from what they're seeing. now we've got about a minute here. i want to switch gears to another topic we've been falling, which is that military contractor stocks life like raytheon actually down over the past week. but they have been trending up on tuesday. so what's going on there? is that related to these ongoing tensions? well, it absolutely could be, look, we, we know this whether or not there's all our war raytheon and be systems and a lot of these different military contractors are making a lot of money right now. why? because the buying administration is approving billions of dollars with a weapons to be sent to ukraine and to, to give those to the ukrainians. so that is obviously ratcheted up. so that obviously is to provide support. but i think in terms of the overall market, do the overall markets one to hear talk of war, i don't think so,
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especially as fragile as the economy is right now. that's not necessarily going to be a positive for market. so yes, investors might want to hear about, we're going to sell weapons and more weapons around the world. but talking about war isn't necessarily going to translate. i don't believe into higher numbers for those stocks. we saw that throughout the last week again, where a lot of those contractors have been down over the last week. and of course, as we've mentioned on this show, as we talk about what's been going on with markets, it's in the middle of earning season right now. as well, so that can also push things up and down as we go. boom. but spend want. thank you so much. sure. thanks. and it's already been a roller coaster a week for crypto currencies, with bitcoin falling to 6 month low is before stabilizing around $36000.00. on monday, the latest sell office costs the entire crypto market. one trillion dollars that we saw bit going hit record highs back in november. and as a result it is now spark warnings of a crypto winner. like the one we saw at the end of 2017 and beginning of 2018 when
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crypto lot 80 percent from all time high. and speaking of concerns, there are also countless questions surrounding what the vitamin ministration will do. as the u. s. central bank considers the reality of creating its own digital currency. bloomberg is reporting that president biden is expected to release some kind of executive order at the beginning of next month. which aims to put the white house in a central role on determining the government overall policy on crypto currencies. so joining us now to discuss the latest sand crypto analyst, christy i, and dominic dontez crypto market analyst at coin death. great to have you both on the show today, christy. let's start with you now. anytime there are losses in the crypto world, we start hearing warnings of a crypto winter. so what do you make of the latest warnings and is this something we should be concerned about right now? i don't necessarily think that we're in a crypto winter yet. i think this is more of a cooling off period where the market needed to correct themselves and charts
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needed to resolve themselves and gaps need to be filled. so the crypto market often go through this boom bus cycle and we've had nearly 2 years of the parabolic rally that it's about time that we consolidate before going further. so while equipped the winter is inevitable. i don't think we're there yet. all coins are still quite strong things like luna matic adam, though they're still holding up quite nicely and t market as well. you haven't seen valuations of these valuable collections coming down at all. but a lot of the speculators are getting blown out, which is not surprising at all. so i think that this is just more chop ahead of the potential interest rate hikes, an aggressive tightening from the fed. and unfortunately, because the involvement now from large institutional funds, crypto acids are becoming more and more intertwined with traditional markets. so when hedges go risk off the crypto markets will suffer as well. so there's an overall withdrawal from risky assets here. so i think it's really important for bitcoin to defend the 30000 mark it. that breaks that we might have
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a slide down and that in that case there's an increased likelihood of a crypto inter dominick what are you actually make of that point that christy made? what do you see when it comes to a crypto winter? you know, it seems like we're in the midst of a decline. it depends on how you define winter can persist for quite some time. we always know that the peak to trough the client and been coin can go beyond 20 to 30 percent, to even 80 percent. like what we saw in 2018 overall. looking at the long term trend, it seems like we're midway through that up trend. so you have your, you know, your risk reward is pretty much balance on the upside or downside. so seems like we're in the beginning stages of a winter. and i think that began back in november when we fail to break the highs around 69 k. and now we're back down about 47 percent from that all time to look at the drop down chart. you know, you can go to the extreme lowes and it seems like we're just around beginning stages of that as the market is count some of those macro and regulatory risks that
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are on the horizon. and dominic, when it comes to, you know, all of the volatility, we've seen around crypto currencies like big quite, you know, we used to hear, oh, this could be the replacement hedge against inflation against bad market to what we might see with gold. what do you make of that? well, until the very strong, so such a new market. so there's a lot of speculation and a lot of understanding of what the true value is for the token across other tokens in the crypto currency market. i haven't seen any data to confirm whether or not it's an inflation hedge yet, as you know, inflation can move in cycles and we got through the 17th, which was a pretty much extreme. and the markets haven't really been tested for a while over the long term, the global economy. i've been buying deflationary forces. so we haven't really seen any data to confirm that yet. and now chris, when it comes to now, i want to switch gears here because when it comes to that threat of government regulation on crypto, here in the u. s. what do actually know about what president biden might do in
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issuing executive order? is that likely to have an impact, especially as we see crypto struggling right now? we don't know too much yet aside from the fact that it would place the white house in a central role in overseeing policies and regulations of digital assets. so the order would most likely involve numerous agencies and create a common approach to industry. unfortunately though, that work is being held up by the fact that the administration doesn't have anyone who knows anything about crypto on its team. barring one adviser who report 8, he owned some bitcoin. so there is a lot of unknowns here and as for will have an effect. certainly it will most likely have an effect on the private industry and businesses that deal with digital currencies. unfortunately for them, they're going to be the one scrutinized and like we've seen in the past with companies like bit finnic, bologna, x for b and countless others, they might eventually decide to just leave us shores and exclude us citizens from business. because it's too much of a hassle to deal with when there's a much bigger pi outside of the u. s. so yes, the u. s. is
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a huge financial markets, so whatever comes down, we'll have a short term effect on the crypto market. but there it says this is so much more bigger than the us and it's attempt to regulate it will kind of turn out no better than china. yeah, that sounds about right. if you have us officials who are literally asking their kid what your currency is. so they can figure out how to regulate it. now, before we go, dominic and the federal reserve says they are getting serious about creating a digital dollar. now obviously the government wants to convince americans that they should choose acdc over crypto. but do you see that push being made specifically through regulation and how do you see crypto users responding? yeah, i wouldn't be so quick to do, you know, decisions regarding their 2 dollars c, d. c. i see the very separate issue. it's more about improving the payment real that the fed uses. they have that now program. you know, there's different mechanisms that the uses to move money to the system to current.
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these are very different. that's more of a sort of separate market in terms of the next month where the executive decision is going to roll out, you know, similar to russia. i think the minister of finance ban and you need to regulate rather than and so expect some tire regulation, bring crypto more into the traditional regulatory framework is important so that users and investors have recourse, bad actions do occur. so i do think it's, it's a sick enough to capture regulatory attention, but over time i think there is a clear difference between c d. c and the, the regular crypto market for now. yeah. also, and then be interesting to see what we get out of that executive order. we're gonna have to leave it right there. the most christie i and dominic on toes of coin desk . thank you both for your time and insight. thank you. and yeah, and what was one set to become the largest semiconductor deal in history appears to be on the verge of being scrapped altogether. and video is quietly planning to
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abandon its $40000000000.00 acquisition, a british ship designer arm according to a report from bloomberg. since it was announced in september of 2020, the deal has faced heavy scrutiny from regulators in the u. k. european union and china. the united states federal trade commission even sued to stop the deal. now, meanwhile, soft language currently owns arm is making preparations for an initial public offering up the company if the deal were to fall through. and rachel, i think, 1st of all, we should point out that this is all based on names sources, but a lot of times they are correct when it comes to that. but it's interesting to look at the situation when we talk about and trust so much and taking on big tack and how there could be coming conglomerates. and this actually looks like it may have been stopped. and even in the case of china, what happened here was that regulators there according to sources, are saying that even if it's approved elsewhere, it likely wasn't going to be able to be approved in china. be able to operate there as well. so there's a lot going on here,
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but we'll continue to cover that story. absolutely. time now for a quick break, when we come back, we'll bring you the latest outlook for the federal reserve. as the u. s. central bank looks set to raise lending rates for the 1st time since 2013. and as we go to break here, the numbers at the close the there may, may, we should all be mayor, may, we should all be angry because of what's going on right? can't understand united states history and the role that slavery plate was already
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a very formal institution. by the time united states became a nation, it actually find the nation, the rise of capitalism clearly on the backs of flight and the slave down. if you had investigated lynchings any great extent. you can't believe that really having the country and country still stands in brick. i'm from the south. everybody know, know what this thing to some extent. i would argue that we're still fighting the civil war. and the south is winning with a is your media reflection of reality in the world transformed what will make you feel safe?
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ice elation for community. are you going the right way? or are you being led somewhere? direct. what is true? wharf is great. in the world corrupted, you need to descend a join us in the depths or remain in the shallows. a the welcome back. the central bank, federal open market committee kicked off as 1st meeting of the year on choose a day where the future of its easy monetary policy will be discussed. the general consensus is that when fed chair j. powell speaks at the conclusion of the get
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together on wednesday. he will signal the 1st interest rate hike of the year will come in march. now with many wall street analysts expecting 3 more increases before the end of 2022. and this comes as u. s. equity is have been reeling since the start of the year in the middle of earning season as the to be $500.00 and tech heavy. nasdaq have entered correction territory while a few more poor days will see the dow fault 10 percent below its recent highs and be in the same boat. while the fed seems to have met its goal of maximum employment, the nation is still 5 faces, rising prices with inflation surging at the highest rate in nearly 40 years. we can't say that enough. so will there be any surprises out of this week? out of the fed this week. well, it's got this former fed insider, and theo of well intelligent danielle de martino booth. danielle, it appears that the fed composition is opening the door to kind of a more hawkish tone. what does that mean as the f o m c holds the 1st meeting of the year? well,
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i think what you have to focus on is really the change in the cast of characters. we've got christopher waller, jim bullard, of course, while our sit on the board that jim bullard loretta mester and esther george. all 3 of them, just rotate it into voting for tomorrow's 1st vote. and they're all very hawkish as is christopher waller who has a permanent vote on the federal reserve board. and i think we have to take into account the risk that the power is facing a high degree of descent if he is not very articulate about about really tightening policy at a faster, more aggressive pace to get this inflation rained in. right. we want to know not just that those interest rates are going to happen in interest rate hikes rather going to happen. we want to know when they're going to happen. now right now it seems like all signs have been pointing to the 1st rate height coming in march, but with the economy reaching maximum employment, while inflation seems to be out of its control and with markets facing volatility, could we see powell come out and actually push up that timeline for ending easy
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monetary policy sooner than expected if there's anything is possible. and i think that the fed really would prefer to have void interest rate hikes if it could. so it would prefer to use the balance sheet and running off the balance sheet as a way of tightening, a quantitative tightening if you will. i rather than interest rate hikes because the difference between the 2 year treasury yield and the tenure treasury yield is only 3 quarters of a percentage point. which means that the fed really does not have a lot of room to maneuver if there's going to be 3 rate hikes if 2005 basis points a quarter of a percentage point before it. technically inverts the yield curve, which in the past 40 years at least, has never failed to signal a recession coming down the pipeline that, that wants to avoid that. so i think i think that they're discussing today and, and tomorrow, the ability of the fed to maybe thread the needle and prefer to roll that balance sheet off at a more aggressive pace and thereby avoid the rate hikes. we'll see,
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we'll see if the, if the hawks are going to let them do that and you know, i mean, we cover, you know, a little bit of everything on their show. we cover global markets pretty regular investors worldwide. they're always keeping an eye on what the fed might do, and we know that global financial stability isn't at all in the feds mandate. but do you think power and the rest of the form? so you're keeping all of this in mind when it comes to policy, because if they continue to see his volatility in the u. s. markets that transcends to global markets, and then we might have a real problem on here. well, and again, you can, you point out something that is very challenging for the fed and you know that policy is a global phenomenon, as you say. and effect cannot like take down the emerging markets complex, and yet, tightening policy is going to have ripple effects around the globe. it's going to cause the dollar to appreciate as well. and that also makes it difficult for, for countries who are exporting to united states. so there are
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a lot of different factors in, in, in, in flux right now. and you mentioned the volatility in the markets. this is going to make for a very interesting press conference and a very interesting statement because federal federal reserve officials have to be aware of the fact that the markets are flying all over the place. oh absolutely. now you mentioned the importance of some of the players here. we know that both powell and lael brainard won't face confirmation votes for chair and vice chair respectively. until sometime next month. does this put them in a situation where they are vulnerable to political pressure as their fate sits in the hands of the senate? would say you so i find this to be a very disturbing a moment in fed history. if you will. j powells, his, his job and his tenure as fletcher ends on monday. and well, brainers does not. and until january, the 31st of 2026. so i think that the congress right now is being very political in
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trying to hold power feet to the fire, make him the bad guy make in the, you know, that the, the inflation fall guy. and by coupling their 2 boats together, even though even though it low brainard is going to continue on at the veterans or a board after this monday, i think it's extremely bad politics, very bad optics. i've never seen anything i guess. i mean, for all we know on tuesday, if you call for the, for the chair, the federal reserve, you might get his voice mail because he's not tech. does he care anymore? i say that tongue in cheek. but this is not a good moment for, for, for the u. s. congress where it's going to be interesting to see what j paul comes out and does on wednesday. that's for sure. former fed insider daniel d, martina booth. always appreciate your expertise on the program. thank you. and finally, if you're wondering when your option for commuting to work will include a flying taxi and you're actually not alone there. boeing just invested $450000000.00 in the electric air tack, the startup wisc arrow and its latest round of funding. now you may remember the
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company was formed in a joint venture between boeing and the flying taxi company, kitty hawk back in 2019, which is cofer, co founded funded by the co founder of google. now the company has looked to set itself apart by knowing that while its top competitors, such as william and job creation, have gone public by merging with backs and recent months. with arrow remains privately back and is quote, one of the most well funded advanced air mobility companies in the entire world. now as for the timeline of when we might get to see those flying taxi as well, that's up in the air as the f a has yet to certify any of these products for commercial use. as of now, we are finally getting the closest thing. maybe in the future we've ever gotten to flying cars. right. and one way to look at it. absolutely. and it feels like 2 years ago pre pandemic, we were doing a story almost every week on boom, buzz about, here's the future applying taxes. these are all the companies you have over, you have left, everybody is getting involved. but the reality is that kind of depend democrat
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pushed all of that back because we weren't thinking about, hey, let's get into a close space with a bunch of other people that we don't know why and around what we do. yeah, exactly. what interesting is the one that comes forward and of course, who is getting on one of those. i don't know if i'm going to one of the 1st people to sign up for that. i know that may not surprise you. i got to tell you with traffic in dc, sometimes there may be a morning where i'm stuck and i'm going, you know, i could be there and a half hour. i could be there in 10 minutes. i'm gonna take the blank tech. there you go. that's it. for this time, you can catch boom bus on demand on the portable tv app available on smartphones and tablets. you google play and the apple app store. search portable tv, portable tv can all be downloaded on samsung, smart tv, then roku devices or simply check it out that dot tv we'll see next time. ah
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wines have been drawn and positions made clear. after 2 weeks of high level talks, russia and nato. we main poles apart on how to define pan european security moving forward. moscow is presented, it's vision in writing while washington falls back on our cape cold war cliche. with james all down through here. all in is the larry over here. so your camps are always a little nicer than this. this is evidence of absolute poverty, despair. people in our city and other cities all across america are living like this. where at the original eat and village been 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 sure i made
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it. her dad you with. ah, i oh, is your media a reflection of reality? in a world transformed what will make you feel safer? isolation for community. are you going the right way or are you being led somewhere? direct. what is true? what is great? in the world corrupted, you need to descend a join us in the depths or remain in the
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shallows. ah, well joe biden, wardens russia? he will be up east in europe with thousands of troops. if you crank conflict, escalade swap, croatia says in that case it will withdraw its troops from night the case, hospital waiting time crisis worsens. during the pandemic, we speak to a mother who lost her son after he was made to wait over 4 hours, in spite turning up with chest pains. last january, the price of gasoline in manhattan was roughly $2.37. but now here at b p.


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