tv Boom Bust RT September 14, 2021 11:30pm-12:01am EDT
not at the individual level, it's not individual willpower. and if we go on believing that will never change as obesity epidemic, that industry has been influencing very deeply. the medical and scientific establishment, ah, what's driving the obesity epidemic? it's corporate. me. when i was the wrong. why don't i just don't the any rules yet to shape out the thing becomes the after an engagement equal betrayal. when so many find themselves well the part we choose to look for common ground.
this is been by someone business show you can't afford to mess. i'm rachel of love, and i'm friendship or in washington coming up the pavement, which in place of the united states is easy. but it's not out of the woods quite yet. straight ahead. we bring you the latest figures and what they mean for the state of the economy. plus, we're going to take you back to the crypto currency sector, where light coin jumped on a fake report that wal mart would begin accepting the all point. we discussed the con and how the hype can drive market. then for the 1st time in 60 years of human space flight, a rocket is set to launch the orbit with only civilians on board. we'll take a look at what space act has planned for historic information for a launch. we have a package here today, so let's get started. the the
are we leave the program with a bit of a room in the world of crypto currency? lloyd light coin is coming under heavy scrutiny tuesday after what appears to be a pump and dump scheme. light coins, price jump, 25 percent on monday after news really stated that wal mart would begin accepting the crypto currency. the price sword from $174.00 to $232.00. the only problem the release was a fake. joining us now to break it all down is food by co host and crypto analyst advance want. now ben, this is just a crazy story when we thought, report monday morning that wal mart was going to accept light guard with that. and that's a big deal. so how did this all big press release actually dupe so many people? yeah, it was a couple of things. it started with the fact that it was bankrupt, press release that was put on a p r wire service. so a lot of people at home may not know this, but there are individual companies out there that act as like a news wire service. kind of like the a p voiceovers,
but anybody can post to them. and so there was one called globe newswire and someone posted this press release to it, and it looked pretty real. it even had fake quotes from the ceo of wal mart. doug milon, the problem is, is that once it got out 1st there, then light coin, the official light coined twitter handle saw this press release and then re posted it. so now it was re posted out of a verified twitter account. so then of course, a whole bunch of people are media sort of jumping on it and reach reading and posting and say, look, it's happening while we're doing this. and the other thing is that they didn't all happen in a vacuum. walmart had just a couple of days before posted a job posting for a crypto currency specialist to come work on their team. so folks are already looking at wal mart saying, oh, they're looking at doing crypto and that timed out really well with this. this faith press release, of course it came out right away that it wasn't true when the price of like going went back down, but you did have for pretty short time. there a little bit of a pump and dump going on. wow, this is a crazy story. and as you mentioned there,
one of the craziest parts about it is that charlie lee, the head of the white coin, found nation. i actually was the one to bring up the story to make it sound like it was correct. but he is since apologize because one of the biggest factors in this was of course, the fact that the official light going twitter account to get out the press release . so how did that happen? yeah, charlie lee says with someone on their team who was overly zealous and very excited about this. we might have to wonder why they were so excited about this. but someone on the team was apparently excited about this. and then 20 that i need to know, of course, those will never happen again, and we're taking precautions to make sure it doesn't happen. but look them in this kind of thing does happen. i think in the, in the world of crypto currency, everything happens so quickly it happens so fast and in a world of social media word gets out so fast that while guess this does have the makings of a pump and dump where you can immediately drive the price of a crypto currency up and you can sell a bunch simultaneously. it doesn't last very long. so it's not like it goes on for
a couple of days or weeks it's. it's literally a transaction that takes place in minutes. and so the look was like coin at fault here, who knows? certainly they were off off or not verifying this with wal mart ahead of time, but we can just put all the blame on like point all of the media folks who jumped out, including cnbc who tweeted this out as well, should have verified it with walmart instead of just taking it off, this one, this one p r. news wire. globe news, p, r. preferably. absolutely. and especially when you look at some of the big networks and big publications that cover business news. they have direct lines of contact to important people at a company like wal mart where they can get to the details. so i bet, i guess there's a question right out of all of this, you know, as we've talked about in recent months of the, the regulatory environment around crypto currency. is there any recourse against this happening because this doesn't fall into a fcc investigation or anything like that? right. well, it doesn't fall into an fcc investigation in the way that it came out,
but what could fall under the fcc or a couple of things because wal mart is a publicly traded company, there could be issues there, but wal mart didn't do anything. right. and then because like coin is not publicly traded, but it does have people who are buying into it. this is where there's a lot of gray area, right. what is the fcc actually have purview over? what do they have authority to do? and so is this is security, is that a token? is it a utility? there's so many questions about what kind of crypto currency we're talking about and therefore what laws apply to it. so it's similar in some ways to kind of the pumping dumps that we've seen in the stock market where the fcc does have complete control. in this case, it's very unclear whether they do have any authority. well, i mean, you just think that if somebody could go out there, they could issue a press release, which is going to drive the price up. it would seem that that was their intention was to drop drive the price up, sell. so we don't know if he'll ever find out who was involved. no, we absolutely don't know if they will or not. because again, these, these a p r companies that allow you to post and publish press releases. don't require
you to prove who you are before you do it, but again, this is where, oh man, if there was just this, this force of people out there called journalists who would actually pay attention to things. right? and it's not always about being 1st, it's about being right. and if they would actually look and say, hey, a company, the size of walmart, if walmart releases this, 1st of all, why would wal mart do it through globe? p r? why wouldn't, why wouldn't the ceo of wal mart get on cnbc or boom bust and come on here i am. and i want to make an incredible announcement about crypto currency, right? that's the way it would normally happen. it wouldn't come from some obscure point on the internet. i don't what to do our own horn here, but where every time you read something that seems a little too good to believe. i always go to say the wal mart media room or the mall wal mart press department, just looking for dave issued the press release there. so as easily could, should've been what they did, especially from these other publications. blue bus, been swamp. thank you so much. now thanks,
let's go now to the latest on inflation here in the united states as the consumer price index report for august shows, prices were still up just not quite as much as a month before. prices increased by point 3 percent, bringing annual inflation down to 5.3 percent. now are rising cobra cases and threats of increase restrictions prompted some americans to pull back on plans for travel, which led to airline and hotel rates declining from july to august. meanwhile, the continued inflation we did see was largely carried by the energy food and gas sectors. the supply chain shortages have continued to take a toll on the markets with many companies passing the increase labor and material cost off on consumers. but are they making enough money to pay for at all? well, not according to the latest sensors report which found that americans actually made 3 percent less in 2020 compared to the year before. this raises a number of questions,
especially when the u. s. is still facing its highest rate of inflation in 13 years . so joining us is john quality, dean of the university of miami business school, dean quality. great. have you back on the show today, and you know, when we look at the latest report, it shows inflation was still up in august, but of course, by a little less than the month before. so does this play into the federal reserve continued claim this is skyrocketing prices will only be transitory. yes, thank you. of course, the skyrocketing prices, especially in the energy and food sectors and also in the area of automobiles, are a function of supply chain disruptions are a function of the resurgence and pen top demand among consumers. and they're also a function of wage inflation that relates to spot shortages and the labor supply and dislocations due to illness is related to the the
cove and virus. so there are a number of factors that of feeding into this inflation. and the question is whether or not these influences are going to abate over time. there's also, i think, a question mark around what is the meaning of temporary, temporary might mean in some put in some people's lexicon, less than a year. but for other people continued inflation, of the rate that we're seeing of the moment is really dent and their household assets on their household income. and i think the fed has been a little bit too benign in respect of the use of the word temporary. it's just simply hard for me to believe that a lot of these forces are going to
a bait and disappear and enable the fed to get back onto track with 2 percent target annual inflation, which is still lead still less stated policy. well, it's your point there. i mean, it seems like, you know, when you, you mentioned the word pent up demand, which is caused a lot of the people were inside. they were saving up money. they had a lot of money along with the supply chain issues. they're trying to spend and they just can't do it. but as this continues to happen, that the pen up demand is only going to get to the right word, pumped up more fit there, more as we move forward. so in reality, does this just get worse over time? well, it can snowball lab, brent, because when people start seeing prices go up, if they do have the disposable cash available or the credit line available, they may go out and buy. now, believing that price is going to go up even further. and so that then further
drives inflation, because the demand is being brought forward as opposed to occurring in the normal patent of the annual purchase cycle. so i do think there is risk here. yeah, there's definitely that snowball effect that has the power to keep going and going . now we've heard it said that when it comes to inflation is actually significantly higher than the readings we've seen in the cpi reports each month. if that's the case, should there be more concern when americans are actually making less than income, but being forced to pay significantly more and just about every aspect of their lives? yes, i think there, i think there is a considerable concern in the administration about this level of inflation, particularly because the inflation pressure in household expenditure areas such as food and energy and other words,
the price of the pump. you know, these manifest themselves very clearly to consumers on a daily basis and when they are told by the government. but the inflation rate is say 5 percent. and they're saying 10 percent in that daily lives. it's difficult for them to treat the government data credibly. and so people then develop a, an approach to managing the inflation that could involve eventually a depression in demand, but also involves in the short term this aggressive buying forward before the prices go up further. and that's what we've seen, obviously over the last 16 to 18 months, as we've seen, that continued kind of, as we put it, panic, buying, and things move forward. now the federal reserve has continue to deliver the same
statements each month. not wanting to rock the boat when it comes to the market. but i mean, overall, do you think they should be doing more when inflation is so high? and at what point do they actually take action if this continues? well, this comes back to the, the early point regarding the target rate still remaining at 2 percent. and with each passing months of 5 percent plus inflation, that objective becomes less and less credible. and so i think i'm on the record with colleagues such as professor summers at harvard to say that it's very unlikely that the fed will be able to sustain its current approach to the bond purchase market. for example, for the rest of the year, i would expect to see certainly by the 4th quarter, there has to be a change in fed policy. and i might, might just mentioned brian,
but you know, the coven variance, and the negative impact on demand, especially in hospitality, travel, et cetera associated with those. they've had a bit of a depressing effect on demand the last month or 2. and consequently, the inflation rate may be a couple of index points below where it would have been had those variance not been in place. we're going to have to leave it right there. but dean john quality of the university of miami business school. thank you so much for your time and insight today. thank you. and several top automakers are calling out congress in response to a new proposal from health democrats. that would increase tax credits for electric vehicles made in the us as long as they are also union made under the new plan tax credits for electric vehicles withstand at $7500.00. lot of the cars were union made, the tax credit would increase to $12500.00 according to reports. this would benefit
auto makers like general motors, ford and chrysler whose employees are represented by the united auto workers union . however, automakers that do not have unions are now speaking up. honda argued the plan discriminate against certain electric vehicles and displays a lack of fair and equal treatment by congress. toyota referred to the proposal as blatantly biased and argued and easy made by auto workers who choose to unionize. does not make that vehicle any better for the environment. just we'll see you on my claim. the proposal was written by ford and the united auto workers union, and he argued it's hypocritical because as of right now, ford makes electric must thing out of factory in mexico. i want to make this point as a response that you must 1st, which is that that's exactly the point. if you incentivize a union made american made vehicle that would incentivize then ford to bring back
that mustang to the united states and make it here also. i mean, you know, we haven't ever heard from toyota and honda. i don't remember them being extremely critical, right? to work states which made it harder to unionize in the areas in which they operate . you know, it's interesting when we hear from these companies and they don't necessarily say that they're anti union, but they kind of voice. it is saying we're just so great in our benefits are so great that our workers don't want to union as well. and right, and i mean, having come from a family that is the new workers and full disclosure here. i would say this is that, yes, they may have great incentives incentives, they may pay well, they may have great benefit, but the reality is when it comes down to it, the can let go of their employees without much recourse if they want to change those benefits well then they don't have to collectively bargain with the union, so that can be an issue as well. and time now for a quick break, but when we come back face axes wanting it 1st off to the crew on a free day or a bill like this week. we'll go over the details of what it means for the private
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ah welcome back for the 1st time in 6 decades of human space flight, a rocket is set to launch in the orbit within all civilian crew. that's right, space x is inspiration for plants, the blast off wednesday evening after 8 pm eastern time with no professional astronauts on board. of course we have heard a lot about space tourism this year with billionaires richard branson and jeff bezos venturing on short some word of orbital flight with their companies virgin galactic and blue origin. this flight, on the other hand, would be a 3 day journey around the earth at a low orbit of roughly 360 miles altitude billionaire, founder and ceo of shift for payments. jared issac men is found in funding the trip,
which will be taken aboard the fully automated dragon capsule, the same model space x used to send astronauts to the international space station for nasa. isaac, when offered one of the 4 thies to saint jude children's research hospital, which nominated a cancer survivor who was treated at the hospital and now work for the physician for st. jude. the other 2 seats were given to an educator and pilot, who entered a drawing as a ship for client and a data engineer and former member of the air force that had entered and opened lottery by donating to st. jude. last week. the crew spoke about the opportunity to set it right from the start right from the day one of inspiration for you know, that we aim to inspire people as to what's possible in space. i think there's a lot of points our mission and a big one is to inspire people to push boundaries. and we're pushing boundaries and a lot of different ways. we want to make sure that whatever we're doing, our mission helps answer some of those questions. well,
if you don't have to be physically perfect, well, what can we do to support more people? all kinds of backgrounds and all kinds of different characteristics to be able to enjoy space, be able to go up. and joining us out, it's got the think net because of this moment. it's aaron pay, gal, adjunct professor a business strategy with focused on space commercialization. our pleasure to have you on aaron space x is doing that without the direct involvement of nasa. how big of a moment is this for private space industry? it's certainly a milestone. technically though, i wouldn't say like from a technician engineering perspective, this isn't a big deal as in, you know, it's much more complicated for them to go to the national space station, which they've proven over and over again. they can do. but i think the milestone here that we're all that the space industry in the private space industry is gonna really hold on to is that this was done on a private level, right?
this is a mission that is just private individuals and you know, that's, that's a milestone in itself. i wouldn't say it's knocking it out of the park necessarily, but it's a pretty big one. now when it comes to the inspiration for a launch, it's actually much different from the other space tourism flights we've talked about in recent months. so what are we looking to learn from this 3 day all civilian orbital trip? well, you know, i'm cautious to call this space tourism only because if you're a tourist you're there to just enjoy the experience. yeah, this is a mission, a privately funded civilian mission. each member of that crew has a job title and a job, a mission, special specialization. you know, j. jared isaac men is the commander of mission at the funder of commission. but you know, they're doing some experiments and data and testing to see how non astronaut
bodies, meaning people who haven't gone through, extend a lot of training and you know, whittling down to find the perfect candidates, how well they do up in space. so, you know, i think this is actually more of a commercial endeavor into research. yes. tourism. yeah. these people are going to have the time of their life. but i think, you know, the main thing we're going to learn about is how much inspiration can this generate . and now we don't actually know what isaac and paid for this specific flight, but seats for another space x launch of civilians scheduled for next year. have filled for around $55000000.00. now while space flight is incredibly expensive, what is it going to take to bring these prices down and how will that all of this further the development in the sector? well, the short answer is more competition. i'll go back to this often with space launch . it's just transportation. again, very complicated. intense,
sexy explosive transportation. but it is getting from point a to point b and doing it reliably, consistently and cheaply. and so for prices to come down, we need to see more competition that's using for usable technology, or at least very cheap to produce technology like space x, space x is in the heavy, medium launch category. and there's a lot of investment in the like, small, small launch category that can get to leo. but that a lot of those firms are building smaller rockets and aren't really to that commercialization stage just yet. so until we get firms that are of the level that space axes at space axis dropped the price, but they have a monopoly power here and they can keep the price is a little bit higher than marginal cost. ok, we've got about a minute last, but i want to get to this ongoing see that we've seen between jeff phases and ellen much they're getting the federal communications commission involved. and it all
seems to be linked to the starling technology. where do you see that going from here? well, you know, this feels like 2 kids in the yard yelling at each other, right? but this is a big deal. space x and amazon are complaining about each other and they're both right. and they're both wrong. space x is cutting corners, at least from a, you know, black and white perspective, they're operating in the gray, but they are cutting from corners and you must, is pretty glib about anybody who points it out and amazon is ad space x is pointed out. mosque is pointed out trying to slow down innovation, and when i say that, i don't need to say that as a bad thing. they're trying to catch up because basics has a lead. and when does not say it's a bad thing is to say that the spell, satellite internet industry as that relates to heating to terrestrial cable based infrastructure. that's a, that's a really big market that we haven't exploded yet. there can be
a couple players there, but we're entering into a realm of natural monopoly because having we only have so many overlays, we only have so much broadband spectrum. so there is a fight for that market. and that's what's going on here. and the starlight thing, if it works to the way that space acts and eli moscow have suggested it may, it could really change the way internet access worldwide works. erin, peg, all adjunct professor, business strategy with the focus space commercialization. thank you so much pleasure. and that's it for this time you can catch boom bus on demand. a portable tv will see you next to me the the
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join me every 1st day on the alex summon show and i'll be speaking to guess on the world. the politic sport business. i'm show business. i'll see you then me the headline stories us lawmakers, secretary of state li, blinking for his handling of the polar from us again. the crisis he said he inherited from former president don was from last year sell fi too late after a cove at 19 cases discovered in his entourage, but will continue carrying out his duties online shortly before helping to isolate the russian leader held and on and on smithing with its 3 and counterpart by charlotte, where he expressed fears above the.