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tv   Boom Bust  RT  September 3, 2021 12:30pm-1:00pm EDT

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straight ahead, we'll discuss the numbers and the state of inflation and the country. later, we'd take you to the airline industry. southwest airlines pilots have filed food against the carrier, will dig into the development and the state of a be a regulation with a fax. so today was dive right in. and we leave the program with weekly jobless claims falling to the lowest level since the onset of the cobra. 1900 pandemic in march of 2020. now initial jobless claims fell 234000 or 334-0004 the week ending on the 28th of august, the us labor department reported thursday. the decline and claims comes amid the so called workers shortage in the country, which they record number of job openings earlier in august. despite
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a rise in cases of the delta, various of cope and 19 lay off in the nation to have also fall into their lowest level since june of $997.00. even with this positive employment data on lookers worry that the recovery in the world number one economy may be cooling as the federal reserve easy monetary policy and rising inflation continue to be in focus. now for more on the state of the recovery, let's bring in peter ship chief economist and global strategy at euro pacific capital. always a pleasure to have you on peter. i want to start with this latest jobs data that we hear about new job with claims falling to pandemic era. lowe's. while we are facing record job openings, what is this telling us about the state of the recovery and the job market? well, 1st of all, i don't think the calm is recovered from anything. i think it's still very sick and having nothing to do with coven, i think all that happened is the government printed a bunch of money or the fed printed the money, and the government mailed out the checks. and everybody went on the spending binge
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. and so all of that temporarily boosted the gdp numbers, but it's also the reason the prices have gone way up. it's the inflation that the federal reserve has created. and you know, these unemployment numbers. i mean, we're still getting a lot of claims. they're just not as high as they used to be. and a lot of people just don't want to work anymore. and the government is made people a better deal. a lot of people find it's more lucrative to take a vacation than to show up for work. now on friday we will see jobs data for the entire month of august the last before the fed. next policy meeting. and one of the points we have heard from j. powell over and over again is the need to get employment stable before they can pull back on the easy monetary policy. now we know you are a fan of this policy, but when we're seeing the best numbers in the pandemic era, is it time to start that paper? what say you, while the fed is just making up excuses because it knows the only foundation this bubble economy has? is the feds easy money policies?
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i don't think they have any actual plans to taper. and even if they just kind of feign the process by beginning it, they'll never completed because soon after they start the tape or again, if they even ever start, they're going to have to reverse the process. because ultimately the fed is going to expand the q e program and start to buy a lot more government treasury. is it mortgage backed securities in the future than it's doing right now? and peter, you know, i know this is something we've talked about quite a bit on the show when we talk about the feds policy. i don't think we've talked about it with you, but it seemed also that the fed has had this whole thing of, of course they're saying their property up the academy. more importantly, they're saying when it comes to raising interest rates, when pulling back that q we, you know, it could cause a market crash, which is, you know, at or near record highs right now. all 3 major agencies in the united states. but, but in reality, that's not their responsibility. correct? well, technically, no, but remember these guys think that the economy lives or dies by the market.
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remember, their whole goal in q e was to create a wealth effect. they thought of they can make the stock market go up, we'd all feel wealthier, and then somehow we'd spend more money. and so they're kind of wedded to this philosophy. so whenever the stock market starts to go down, they start to feel fear or reverse. well, the fact, and so they start pretty money, but it's not just the stock market that they're propping up. it's this whole bubble economy that they're filling up with their. but by doing this, they're actually undermining legitimate economic growth and they're making everybody poor. well and peter, you know you have to wonder dan cohen, the fed, former vice chair, a financial supervision. he warned the possibility of another financial crisis during last week's jackson hole symposium, pointing to vulnerabilities as asset values have hit record high. the government and private debt have reached near record. hi. so how close are we when we look at all of this to that bubble bursting, as you say? well, if the fed did the right thing, we would absolutely have
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a financial crisis. in fact, it would be worse than the one we had in 2008. that's why the fed is not going to do the right thing. that's why they keep kicking the can down the road because they want to delay that crisis as long as possible. but the longer they delay it, the worst is going to be, because the only way to delay it is to make the bubble bigger. and the bigger the bubble is the worst to fall out when it pops. and you gotta keep taking that can down the road and hope that somebody else. 2 some other administration will have to deal with it eventually. now we can have you on without of course talking about gold. and we know that inflation in germany had a 13 year high in august. and as it has been facing, rising inflation demand for physical gold and germany increase to the highest level since at least 2009. what do you make of this? and are we seeing an increase in demand for gold elsewhere as an inflation hedge? well, absolutely. there's a lot more inflation to hedge and people should be a lot more fearful about it now than they have been in the past. and, you know, the germans are particularly sensitive to this issue having, you know,
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live through some of them. why am our republic? but certainly it's fresh in their minds in america. we think about the great depression. they think about the great hyper inflation over there, germany. so if they start to with the sense of inflation, they're going to be quicker to react to it. but, you know, inflation is gonna be a problem worldwide. central banks around the world are printing too much money. they're keeping interest rates artificially low. so inflation is a worldwide problem, but it's going to be particularly acute here in the united states. we're creating more inflation than most, and we are more dependent than any other country on the value of our courtesy to fund our imports because we can't produce the goods that we consume. and so we have to trade the money that we print for the stop everybody else makes. and so as the value of our money is going down, we're going to really feel the pain of inflation to a much greater degree as the dollar falls and the cost of those imports go through the roof. you know, and peter, if you're right about all of this, it's going to be
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a wonder if central banks will continue to do the same policy over and over and over again. peter chip, chief economist, the global stratus with euro pacific capital, always appreciate avenue on. thanks rob me. google is once again in the cross hairs of the u. s. department of justice who is now reportedly preparing a 2nd lawsuit against parent company alphabet. this time the d o j is taking aim at google's ad tech business, claiming that the company is creating anti competitive environments. according to reports, the justice department has accelerated its investigation of google digital advertising practices and may file a lawsuit. as soon as the end of the year, this as both google and apple are coming under increasing fire around the world for their app store dominance. joining us now to break this down as an investigative journalist, ben swan. now ben, let's start with this new lawsuit on its way from the d o j. what do we expect it to cover? yeah,
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we're not exactly sure what it's gonna cover other than the fact that in general, as you just laid out, it's going to cover google's ad practices and what it's been up to. now there's a couple of things that we can take from what's already happened in the last few months to kind of gain some insight into that. as you know, started with a company ministration under attorney general bill bar. there was a lawsuit filed by the d. o j against google over its ad practices essentially saying it was anti competitive. but what that did not match up with was the list of lawsuits that came from state attorneys general, in which a number of states attorneys general file lawsuit against google. because they said they worked a secret deal with facebook that allowed them to really not compete with each other that they were paying facebook to not take away a lot of their ad market and ad share. and facebook stayed on the sidelines more because of money being paid by google. so google could dominate that area in terms of the previous lawsuit by the d o. j that was over the search engine and search results. so this lawsuit what we don't know exactly what it may include or if it
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even gets filed, may include more about that relationship with facebook and partners like apple or google has paid those companies in order to protect them and give them search dominance as well as ad market, something that seems even worse than just regular monopolistic practices to pay off your competitors. now google's also appealing that record setting 591000000 dollar fine imposed by francis anti trust watchdog in july over a dispute with local media about paying for news content. why is global glue? why is google claiming the find is unfair? yeah, they say it's unfair because they say they have been working with these different news media outlets across france and they've been doing their best to include them and create a new system that's more transparent and therefore they shouldn't have to pay $591000000.00, right. of course, anyone's going to say that the interesting thing about the fine is that in france, you know, in the here in the u. s. u appeal, something you can pretty much stay it forever. that doesn't work that way in the
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when it doesn't work that way in france, france is fine, essentially means that even while the appeal process is going on, google has to start paying. they can't wait to pay until the appeal process of finish. so even though they're appealing that could take years, according to francis court system, and they're saying start paying the fine. and we'll see if we ever get around to the pill. but i want to, i want to comment on something you just pointed out. britain, which i think is significant, which is you said it's almost worth these companies work together. i think it is worse because what it tells you is it isn't just anti competitive practices. that big tech has almost reached a point where there are a few companies who are all carved out there, nice and together collectively they're working together to hold the market kind of at hostage. so you have google and facebook. you have amazon, you have twitter, right. and it just a few companies that control so much of the marketplace, but they all have their own respective place and it's very showing them the effect it has for competition. yeah, it's like another form of the mob that we were referencing earlier this week. i
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know for you guys, switching gears to apple here, it has been hit with an antitrust suit in india, which accuses the company of abusing as dominant position in the smartphone apps business by essentially forcing out developers to pay a commission on all in app transactions. so how is this different from similar cases we're seeing in europe and asia right now? it's not, it's the exact same thing. india is essentially looking at it and saying the same thing that the you were saying that south korea we talked about earlier this week. you know, south korea has a new law that they're going to pass. it looks like it's going to pass there, which essentially says that if you are apple or google, you can't put these fees on everyone and block out alternative payment options and alternative systems on your platform. because they're saying it's being abused. and here's how it's being abused. so spotify, for instance, says that they've been abused by apple, because apple runs these fees a $15.00 to $30.00, you know, 30 percent up charges on the cost of their music. but apple doesn't apply that same
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charge to with apple music service. so they for spotify to be more expensive than their own product, and that is anti competitive. wow, it will certainly be interesting to see where these cases go. and if it changes any of the practices that we're seeing right now, boom bus been swan, thank you for insight. thank you. the time now for a quick break, but when we come back, we take you to disguise as the labor union of southwest pilots has sued the airlines. and we'll take a look at the state of the 737. mac is another nation, has approved the youth, and that's gonna break here, the number that the me the
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what we've got to do is identify the threats that we have. it's crazy foundation, let it be an arms race is often very dramatic. development only personally, i'm going to resist. i don't see how that strategy will be successful, very political time. time to sit down and talk to the families. that mark sounds good. i took market function. you go with a good way to show me how do i do? i'm john got that. i've got that limit and i wanted them
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to go back to the left me about the less about the who's and the war on drugs started as a way to come back. a great problem. what's the one? it's part of the attitude of the nation, not just of north dakota, and it got to be something that you could get elected. this time, the fight against drugs took a tragic, told us that andrew was competing short form. this is way too dangerous for him to be doing. clearly they put him in harm's way. a rural college student does interest get shot in the head and found in
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a river like that. something else had to be happening. the welcome back. the union representing southwest airlines. pilots has filed a lawsuit challenging how the carrier handled the cobra. 1900 pandemic. the southwest airline pilots association filed the complaint in a federal court in dallas earlier this week, alleging the company implemented an emergency time off program change schedules and altered health care and retirement benefits without collectively bargaining the move. the claims would constitute a violation of federal labor law. southwest and its staff have been at odds in recent months as the union threatened to hit the picket line during the winter holiday season. a time of increased travel to protest working conditions in response to the suit, the carriers vice president of labor relations russell mccraney issued
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a statement saying the company disagrees that change. the changes required negotiation, but claim southwest would continue to work with the union to navigate the quote challenges presented by the pandemic. joining us now to disgust is captain dennis pedro the communications committee chairman of the allied pilots association. cavities are always a pleasure to have you on these important issues. now, breakdown these complaints here, when it comes to dealing with a global health crisis, like the over $900.00 pandemic, does the airlines still need to negotiate policy with the union? lastly and just to be clear, represent the american airlines, but we're having the same issues in american airlines. so sure they have to negotiate with the union. but the most important thing is, is that the management team, it appears it's southwest based on their operational performance. and at american airlines airline i work for, they were not prepared for this massive, quick recovery after the pandemic. so for them to just say
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that, well, it's, it's recovery the pandemic you can't use as an excuse. and this is not just about maintaining your contract, is maintain the certainty of your operation. when you just start making things up in an airline operation is symphony and your, your head and pursues, when there should be violence, you're going to hear it. you're going to see it so it's happening. it's south west . it's happening at american management was not prepared. the pilots were and now they're using the excuse that they're just going to do a few things that are outside of the contract. so it's really more of a fundamental argument that seems to be happening. certainly as south west it is happening in american airlines, where we're just saying you're run a good operation and not throw away all the rule books that make that happen. yeah, that's a good way to put it. and now when we're talking about preparation here, you know, we're talking about southwest specifically. they seem to be at the center of
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a lot of the issues with delays and staffing. but we have to remember, they did take $3200000000.00 for the federal government as part of the care act last year. i mean, shouldn't that have helped to avoid some of the problems they're facing right now? that's a great point and i'll tell you what american airlines took even more was an investment to keep my people like my self employed and ready to floss and congress. the senate commerce science and transportation committee led by chairperson sen can't well is asking the same question. you're asking, why weren't you prepared? why did you sell tickets for flights that you did not have the proper manny, the pilot staff ready to roll. so you have 2 airlines in the headlines. frequently we're a little bit of weather happens and the system collapses and thousands of people are impacted by cancel place. and you have hundreds of pilots think i want to fly, connect me to the earth, but they're only able to do that. and what it seems to be itself was management is
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using some a symmetric rule. and then nobody knows what's going on. and we're seeing the same thing at american airlines. it should a summer is winding down, but we have the winter traveler season coming up and talked about quite a lot of airplane. so we more into this in the early spring in american airlines. it didn't look like they had a cover, and unfortunately our forecasts came to saw thousands of fly hundreds of thousands of flights over the summer cancelled because they didn't have enough particularly pilots. we had, they couldn't connect them to the airplane. ultimately our passengers suffered and quite frankly, investor suffered because the airline space doesn't perform well. a lot more for operation and it kept stated before we go, i have about 30 seconds left here in the segment, but the carrier is also committed to running fewer flights through the end of the year due to this, to alleviate the issues. but as you said, that the busy travel season is that the right move, that's surrender,
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and we're competitors. we want our management team supplies many airplanes as possible. so doing that is the moralizing, and it tells me that you've gone outside of your skill set. we want to help, we want to make those flights happen, but it's more with us. instead of just making things up as you go along, you're likely to just repeat the same behavior and get the same results. captain dennis page, i love that attitude. we are competitors of the allied pilots association. thank you so much for your insight today. thank you. meanwhile, the battle between boeing and airbus continues as travel rebounds in europe and airbus winds over a wild, boeing customer, the british leisure airline jet to confirmed it, has signed onto order. 368321 neo jets with the option to add $24.00 more. the deal is worth $4900000000.00 and it marks jack choose 1st purchase from air bus. the
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decades old rivalry has recently been centered around each company's narrow body aircraft. the boeing 737 mac fall behind after it was grounded for nearly 2 years following to deadly crashes. meanwhile, the air bus, a 320 families built up as a backlog and went on to games. 65 percent of the narrow body orders. but as boeing fully out of the woods where regulators are concerned with joining us now to this got to be official. jamie finch gave me it's great to have you on the show today for now. when it comes to the boeing $737.00 max, we know that it's cleared here in the united states. but for the company as a whole, are they likely to remain under a spotlight we're regulators are concerned just moving forward? yeah. what we're seeing right now is absolutely, we're right at the tip of the iceberg of what the investigation is going to be like a gun, some investigation, but calendars is already mandated that that's a conduct a corporate culture study of all of boeing because of all the the reports about
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bullying and other things that have been going on and hiding things that they are. they've been mandated by congress to actually put together this study. so we'll see that. so we're just at the very beginning of this. and rachel just mentioned here in the intro about how air bus has actually been able to make up quite a bit of market share against going as boeing was the, you know, the number one play maker in the world. but the question becomes, is air bus safe or do we know that? are they going to face increase scrutiny after everything that's happened as well? probably, i think alden were facebook increased scrutiny right now. i know from my conversations with presented from air bus. when all of this was going on with boeing, the corporate, the ceo of air bus told, drew out the company said, you are not to say anything negatively about boeing your because therefore, the grace of god go watch. i mean so, so they have been very, very careful and making sure that they haven't been outwardly pointing fingers or making fun of boeing because it could be them next. so i think that we'll see more and more people watching them. people are going to be making sure that there's
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other that the rules and regulations and safety standards are being followed, but they are not going to be under the same scrutiny as boeing. it because boeing has been its own worst enemy. it keeps things just keep rolling out that day. almost like every week. sometimes daily things are coming out about boeing that they've done as failed on safety, on bullying within their employees. all kinds of factors that have been just really ruined in heart, their reputation and jamie, is that a corporate culture issue, or is it just the snowball effect of one thing goes bad and other thing goes bad? no, it's not pretty. starts at the top, and this has been something has been going on for a while. boeing's shifted a few years ago, back in the mid ninety's. i was a, when boeing a choir merged with mcdonald, douglas falling had always been known as a engineering company company, an actual incident and ingenuity and, and really forward thinking. mcdonald douglas was based on bottom line. that's
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where they were a very, very accounting count based and bottom line, profit driven company. they are unfortunately boeing took on the mcdonald, douglas, it might be nice to go in the mcdonald douglas culture, and now we split. they've gone from a culture of excellence to a company that of, of people they put profit about people. now when it comes to regulators standpoint, i, they seen the changes so far with boeing that they want to see or does the companies still have a long way to go? like you said, it seems to be one thing after another. we all know, i mean, we are, we're, we're still trying to dig through the, the mess if you will, to find out where we are. i mean, so it's going to take a while that's, that's what so frustrating for people. and especially in this world where people want answers very quickly and we just don't have those answers in these investigations, are going to take a while and you know, fingers crossed and knock on wood. no one gets hurt, injured or killed in between the beginning of the study and the conclusion. and we
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know, of course there really is a lot of money. it's daycare and commercial agents and billions of dollars. oh yes . especially when it comes to those spice between boeing and airbus. it is, and it's not just a money issue. it's like, it's a national pride issue. boeing is the number one exports in the united states. i mean, we and they, it's not just boeing, it's all the parts and pieces that go into these planes and, and of the, the services that around those airports around those manufacturing plants. all of those things tied together. it reaches bar into our economy and j b a, you know, i want to talk on one more thing that regulators have been looking at. you know, we've seen kind of an unruly passenger situation, a mid flight. what can regulators do about that? and i apologize to give you a time that we do about 30 seconds. this is an easy hazard. federal law says that you cannot, you cannot interfere with a crew. you cannot threaten a crew if you do so. there are fines and,
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and imprisonment that you will have at this at this time. boeing. i mean f a is enforcing i 100 percent policy, all enforcement, they are not 0 tolerance, i'm sorry, 0 tolerance policy. and so if there's anyone that acts up, you're going to get find definitely, and you could be going to prison because you're putting, you're putting everyone's life and in danger. when you do something like that, it's not, it's not just you actually up and you're going to have to wear the master. you got to leave it right. fair game. you finish thinking so much for your time to thank you. and that this time you can catch boom bus on demand on portable tv can be found at portable tv dot com on the apple app store and google apps or google play store as well. see you next me ah, ah,
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psychiatric drugs are essentials and millions of patients, or are they, they want that pill that they hope will take care of their problem thoroughly and rapidly in the short term they really work. the problem is, in the long term, they're mostly disastrous. suddenly stopping a drug can cause withdrawal symptoms more serious than the condition it was meant to treat instead of the beneficial effects of these different medicines ending up to something wonderful. very often they're harmful effects and up to something terrible. can pills so of all ills? or are we trying to mitigate life itself? i just think i was like i was just scared. i was just here a little girl, the 24. and like me didn't have to be so complicated look forward to talking to you all. that technology should work for people. a
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robot must obey the orders given it by human beings, accept where's the short or conflict with the 1st law show your identification. we should be very careful about artificial intelligence at the point obviously is too great truck rather than fear. i would like to take on various jobs with artificial intelligence, real, somebody with demon a robot must protect his own existence with me when i want the wrong one. i just don't need you to fill out this thing because the application and engagement equals the trail.
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when so many find themselves will depart, we choose to look for common ground in the family is that it was a mark. i took market function. you go with a lot of people, like i said, well that's good to know. how do y'all do? i'm john. i got, i've got that limit and i wanted them to go back to the left me about the less about
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the me and the taliban reportedly takes control punching provence. the last area of gun is not under its control. also this joe biden approval. right. and drove to the lowest of his presidency off the chaos to control from africa. but he's ministration is sticking to the belief that some good p r can still ship public opinion away from the object failure. on the sign chaos has personal relations with the united states and the questions joe by.


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