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tv   Boom Bust  RT  September 22, 2021 8:30am-9:01am EDT

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4 percent of the population vaccinated in my view, it is more important to get those persons who are not vaccinated to get them vaccinated in africa. only 3 percent of the population approximated. so we need to get more vaccine to the continent of africa, as well as other countries which have very small proportions of their population backs. the need to the priority is to get those people vaccinated vaccinated before we talk about booster doses for the general population. the debate goes all my fathers when they check it out, see the comment of a social, but for now, kevin, under the teams signing off of a good day. we are told the new strategic alliance comprising the united states,
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the united kingdom and australia is not directed against china. but of course, it is. washington has developed numerous alliances against staging, but arcos has a new killer dimension tensions arising in the pacific. and no doubt china will react me the news the this is them bus one business, so you can't afford to miss. i'm sure that the number of board and watching that coming up energy prices in europe are continuing to, or just cold weather approaches and fears of unchecked inflation hang over the continent. straight ahead, we examine the factors driving the bike and how the government plan to respond and press waves of ransomware attacks could threaten the food supply in the united states. we bring you the latest on the situation. how president biden is planning
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to fight cyber attack. then the chinese ever grand saga continues to leave global markets on as well, discuss what's next for markets and whether this could be the end of the season or record high. we have a lot to cover here. so let's get started. the we leave the program with the latest on the energy crisis in europe where gas futures have risen by 250 percent since the beginning of this year with winter fast approaching the region is experiencing the perfect storm as it run short on supply while demand comes roaring back as a result, the european union's energy ministers are expected to meet this week to discuss how they plan to tackle the skyrocketing gas prices. amid concerned the continued trend
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will jeopardize europe's recovery, while also undermining plans for costly reforms in the name of the environment. while there's talk of the you passing in a package for the region, individual countries are already taking action spain and now it's last week. it will introduce new tax breaks for consumers and redirect energy companies, profits and italy is expected to follow rome and introducing a multi $1000000000.00 aid package aimed at providing relief to consumers. but how will the latest stimulus measures impact inflation in europe, which had a 10 year high last month. and how could the long awaited nord stream to pipeline play a role once it is finally certified? well, joining us now the jobs are due to host kristi. i and octavio marines, the ceo of opened miss l. l. c. christie. let's start with you here. so this crisis feels like it has been creeping up quietly until now. how did we get to this point? well, it's been a perfect storm brewing in the background for some time. now,
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european gas prices have actually accelerated since the start of april, after an unseemly cold winter. so as a result, your gas storage, hardy dipped below pre pandemic 5 year averages. so they struggle to bring gas supply that are necessary for the winter back to where they should be. and then countries like the u. k, they're especially vulnerable because the u. k. they rely heavily on gas for home heating. but despite the obvious reliance on the fossil fuel for electricity, the u. k. has some of the lowest amounts of gas storage capability in europe, leaving the market completely exposed to supply crash. so less than one percent of your stored gas is actually held by the u. k, well, now the deficit is making the market nervous as we put winter again. and then finally the catalyst to just tip everything could be china. china's demand for gas has been riding steadily up 8.4 percent again this year. so to satisfy the record demand for gas, china's import the gas work,
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i could just search almost 20 percent. meaning that you have fewer shipment traveling to europe from could tar. so as shipments of gas have turned from europe toward china, flows of pipeline gas to year from russia has failed to make up that shortfall. russia has been slow to deliver the pipe natural gas to the region, which raises a lot of questions on whether this may be a deliberate move to bolster in case we're starting to close the the noise stream to pipeline. and now octavio, there's a lot of concern that the soaring energy prices we're seeing across europe will make inflation even worse now, while proposed aid packages may actually help consumers pay the higher prices. how do they tend to impact inflation? well, i think just a mathematical certainty, the high energy price of 9 gas prices have lead to high inflation numbers. and you can see the very, very clearly in the face numbers for all that came out a few weeks or so. and let me go ahead and print the set. now if you take energy
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out of that, you basically hop european inflation rate down to $1.00. so that mean energy prices in particular, natural gas which went up about 15, but just in august, a driving inflection more than anything else in europe. so prices for the place and food and vehicles and reynolds and things. and that's all because some dude rates energy is when you're striving some natural gas. so it's a councilwoman has been placed level in the european continent as quite a store to see that. and i copy, you know, a lot of times when we talk about cor inflation versus overall inflation, we take those energy and food prices out. and that's because energy, obviously fluctuate as demand fluctuate due to different season. but in this situation, we're actually looking at kind of a shortage should that we take more into account in inflation when you're trying to kind of decide policy based on that? well, i think policy makers like to take any price is going to make it look like the numbers are not increasing as quickly as he said, yes, once you take out any prices tend to increase out inflation rate they accept doing
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. but now i think you should remove them or discounts because the shortage isn't it . it might be trans event, it might come back from atlantic. but i think we are going to see more place than in europe and in the us to, for that matter and things that it's not going to be absent even across different products and services. but we will see increased inflation as a result. all the money, the central banks of pumpkin as economists, and that i think is unavoidable as well. and now chris, you actually mentioned the nord stream to pipeline and how this whole thing could be a catalyst. we're trying to get that certified quicker and get that gas actually flowing . how big of an impact will that have? i think he'll eventually have a really big impact of the route jointly with the existing nordstrom pipeline. they will actually double annual export capacity to about 110000000000 cubic meters, so that the round half of russia's total export to europe a year. but by itself more, it's going to have the capacity to need about one 3rd of the news important. so it
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will definitely have a big impact once it's up and running. but currently, russian and german regulators are currently in a debate as to whether new regulation supply that were put in place after the pipeline was given its final investment decisions. but i looked today and was something that the start of a flow on materially reduced prices and having a effect the coming winter. it looks like that you is going to be stuck and locked to do some pretty high prices throughout the winter, particularly once we hit january, february and the reserves get increasingly depleted. now octavio, we know that norway has said that it would increase its exports at the same time. we're looking forward to the north stream to pipeline. but how does that pipeline play a role in this shortage and in it possibly continuing into the winter? well, i think central wilson grew pipeline. bear in mind that it's not really going to bring you gas production on line. and the capacity is being cool and what it's
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really about is avoiding through ukraine from russia, ukraine, and then into western europe. and the simple reason for that is ukraine charge is a huge amount of taxes, tolls a leg, and puts up to be in dollars a year into playing rational gasket through his territory. so the not seem to find out more about avoiding map and we bring classes. so i'm not convinced notion to actually make that much difference. but it's going to see the gap going to ukraine now go to the baltic sea and that differences with a small level. so i don't think will help much. i think gas prices continue to go up and inflation follow it. not to distract us, but certainly spike up even further september. and of course we've got about 30 seconds left for all of this is happening as we've been talking about this massive supply chain shortage is happening as well. how big of a role do you think that's playing in this ongoing energy crisis that we're seeing in europe right now? i think everything boils down to the supply chain cold. it looks pretty much the
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catalyst for this entire thing, whether we're talking about apply chain problems and issues in the energy cycle or supply chain issues in the manufacturing and industrial cycle. and even though the tech cycle with all of the semi conductor chips, i think that right now with cove it the entire global industry feed. how fragile and delicate the entire global supply chain is. and right now, that's going to lead to a lot of countries going towards protectionism, isolation in order to bolster their own individual supply chain. so that if some other global strike, if there is some sort of other pandemic or something like a cobit, that they will actually be prepared and not have to be reliant on external importers and ex borders. certainly a lot of fake here as winter is right around the corner. boom bus, christie, i, and octavia ramsey of open this. i'll see. thank you so much. thank you. and another massive ranch where attack has hit and i will grain co op and reportedly could cause major disruptions in the public supply of grain,
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pork and chicken, if they company cannot bring it systems back on life, the hacking group, black matter is demanding $5900000.00 to provide a decrypt or according to screenshot, shared online by threat intel analysts. ransomware attacks have become increasingly common in recent years. and us president joe biden, even mentioned getting a handle on them. in his address to the un general assembly tuesday. we're hardening our critical infrastructure again. cyber attacks, disrupting ransomware networks, the working to establish claire rolls of the road for all nations as it relates to cyberspace. we're reserve the right to respond decisively to cyber attacks that threaten our people, our allies, our interest. so how is this latest ransomware attack going to play out? well, joining us now to discuss is do but co host an investigative journalist, ben swan, ben. so the hacking group,
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black matter says they do not attack critical infrastructure, but new cooperative inc says that is exactly what has happened. so what do we know? yep. yeah, apparently there's even an online back and forth between black matter and a representative of the company arguing about whether or not the company is actually critical infrastructure. it's a fairly interesting story because this company, you know, essentially what they're saying is there will be huge shortfalls. of chicken import supplies across the country as a result of this because they provide infrastructure, they say, and support companies that feed the country. and so you're actually harming consumers when you do that. but what black matter says is no, you're not, you're a company that essentially does soil mapping. and you work with farming institutions by selling them a product, but has nothing to do with supply chain and your last segment. you guys just talk about supply chain. these guys are not part of the supply chain, but they say that they are. and here's what's really interesting because we saw this happen with colonial pipeline. the same thing is happening again, which is that the company here is this,
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this farming company that was high is essentially they are shutting down operations hackers. they're not shutting down their operations. it appears from everything that i've, i've seen about this so far today. they are the ones who have decided to shut down their infrastructure, shutting down their, their ability to work with farmers so that, you know, meet product is moving across the country. they shut that down and they said, now we've got it under control. we've cut off access to our systems, but, but it's not actually the hackers being the ones who are cutting off that access. now do we know at all why they would cut off that access? i mean, it's interesting cuz i know we've talked a lot about colonial pipeline in the way that they did it and they were almost kind of out of what they did. is that kind of what we're hearing in this case as well. yeah, it's very similar. i honestly believe the reason comes is doing this is because they're saying you're not going to get a ransom from us and we can bring the feds in. so the feds will get involved in this because of the fact that again, this is a critical infrastructure. i'm going to read to you guys just very quickly what
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specifically the hackers took hold of. ok, this is important. new cooperative data was stolen about a 1000 gigabytes worth of files were stolen invoices and research and development documents. so that's all proprietary stuff. yes, part of what they build their business on. it's invoices. sure. that the billing department and then source code for its soil mapping technology. that's what was stolen was what we're going to hear. i guarantee you over the next 48 to 72 hours. we're going to hear so many people in media talk about how hackers came in and locked down this system, which is not able to deliver food. and so they're going to be food shortages and meet shortages across the country. that's what we're going to hear. that is not what these hackers did. i'm not saying it's ok what they did, but it's not what they did. the fact is they took invoices, files and proprietary information, and the company itself knew cooperative new cooperative is the one that is shutting down the pipeline. the supply chain. so and now saying there will be there words,
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very, very long lines and a public disruption to the grain pork and chicken supply chain. but that's because of new cooperative, not the hackers and ban. finally, we have about 30 seconds left on this, but the lighted administration, which as you heard, he still uses the word cyberspace. just saying that out loud, betty way has new rules. the require reporting these kinds of attacks immediately do we know a federal agencies are now involved. federal agencies are involved, they are not commenting f. b, i emphasize are not common thing, but the new cooperative says they have contacted them and they've made them aware of this. and again, this goes back to the infrastructure. guys, watch the story. it's going to spin over the next couple of days just like colonial pipeline did. and in the end, this is what really bothers me about. the stories is there is no repercussion for the executives of the huge companies that are shutting down supply chains to the public. they pass it all onto the hackers, the hackers responsible, because they took our invoices, therefore they bear the brunt of everything. i don't think that's right, boom bus been swan. thank you for keeping an eye on the story. we will follow up on
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it. think that now out of the story of a lawsuit that hasn't received much covered at all lately. well that isn't hold twitter confirmed it would be paying nearly $810000000.00 to settle the claims that it misled investors. 7 years ago that class action lawsuit alleges that twitter begin providing unrealistic growth projections to us investors back in november 2014. they say twitter executives took part in a shell game in order to conceal the true state of the key metrics from then until former seo richard castillo left the company in 2015. while twitter isn't admitting any wrong doing here, it is paying up to settle the claims. but if you're wondering how much of a toll $800000000.00 will take on the company, well, twitter plans to pay the fee with its cash on hand by the end of this year. twitter as reported more than $4000000000.00 in cash and $4500000000.00 and short term
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investment assets. notably twitter reported revenue during the 2nd quarter of this year was nearly $1200000000.00 up to 74 percent from the year before. well, and you have to remember rachel, that, you know, when social media was really hitting its stride, and that would have been about a decade ago. and this is a little bit after that. but the fact was, we didn't know how facebook, how twitter was actually making money. that was the big argument when they were getting ready to go public and people look at him and go, how was this company even profitable? oh, absolutely, and you can look back at the fact that, you know, yes, this was 7 years ago, but it was almost what is more frustrating is just how much we don't know about the story. i mean, i want to know why a $100000000.00 rather, that is a lot of money for twitter to pay up. and yet it seems like a lot the details there will be kept secret and just like facebook, they have fine money ready to go. it will never even affect them and time now for a quick break, but when we come back, the ever gram threat continue to loom over global market as the chinese lending
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giant faces uncertain waters straight ahead. we'll discuss how equities fair on tuesday, that's going to break here are the numbers that the close, the the to be with me in the
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news the welcome bag after monday, cell op, which so one of the worst days for us markets in recent months, global equities are attempting to rebound, while nothing has changed and liquidity crisis for chinese property developer. ever grand group. stocks in hong kong. so gaines of about a half a percent on tuesday after dropping more than 3 percent monday. meanwhile, western markets are still keeping an eye on this month's federal reserve policy meeting, which kicked off tuesday in europe. the main british, french,
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and german indices, each gained at least one percent. and here in the us, after futures pointed to regaining a good portion of those losses, markets ended up just above flat for the day, with the worry of an ever grand contagion and monetary policy and focus. where did things go from here? well discuss, let's bring it to the metro pc for me research and peter ship chief economist and global strategies at euro pacific capital. great to have both the view on to talk about these important issues. tobin i want to start with you. what happened to markets over the last few days? are you seeing a focus on every grant and the fed, or is there something else there? well, i think we've talked about this for about a month. there's probably 20 reasons why the us stock market sort of reached a point where it needed to correct now we have sell off, get the we can write that the people who just bought on thursday can't stand to be down 5 percent on friday. so they just sell,
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so we're going through that process anyway. every grant, just put a whole nother level of fear in, and frankly, i know we're going to talk about that later. but ever grand fear is not what dr. and that's, it was just an excuse. i run money, i was a mutual phone guy for a long time. when you want to start taking in profit, you use whatever excuse you have to say, i'm going to take profit. ok, boss. yeah, because i just want to build our cash and i want to be able to buy some stuff when the thing gets done and that was really what monday and tuesday was here, was that that professional money managers were probably holding tight, but the new money guys were saying, okay, i can't stand a pain and that's natural, that's how markets work. for us. we have a list of $25.00 stocks we'd love to buy. we want to get a little cheaper, but ever granted his sideshow, and i'm sure peter will tell you why peter will on that ever grand situation. we're hearing a lot about the contagion effect taking a toll on the overall economy. while some see this is women, 2 point oh the start of a real estate collapse in china. what's your take there?
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well firstly, i have to realize that the entire global financial market right now is one gigantic acid bubble. it's been inflated by coordinated easy money policies throughout the world. and so that's why everybody is on edge for any sign of a in that might prick that bubble. and i think that's why the markets had reacted the way they did the ever grand situation. you know, remembering what happened with lehman, but if you actually remember what happened, they let leman fail, which was probably the correct decision that we made. but then after lehman failed, that's when they rolled out the tar program. that's where the fed, you know, started with quantitative easing. and so i think that the same thing would happen again. this time in the central banks haven't learned their lesson to the extent that anybody thought that this was a lehman situation. they would diffuse it beforehand because everybody wishes they could have a, you know,
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do over on the way they handled lima the 1st time. so i think they are going to keep the monetary spigots open. i mean, this is another excuse as if the fed needed one not to move forward with the taper . i don't think they ever actually plan on doing that anyway. there's certainly never going to raise rates until there's a currency crisis that forces them to do it. so i think this is going to blow over, and i think you're going to see the markets continuing to rise due to the irrational, reckless monetary policies that have been driving the bubble. all. never know, you guys. all right, well i remember ever ever grand. so we just had a bailout in china a month ago, you're wrong, which runs about $5600000000000.00. where the bad debt they got from the ninety's into 2000 and for cry it out loud. but, but remember, you know, i've been to china lot when you go into town like sions, and they call it the crane city because you see 200 cranes building 5060 story real
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estate projects that chinese, by when chinese people buy stuff, however they buy it for cash are very little debt construct. strangely enough they said like 10 percent of their income, those people must be insane. right? so we're not so much worried there. what we weren't a worry is, is that look at the bottom holders in and you know, this new debacle. they're going to get wiped out $0.70 out a dollar for sure. but, but if the people who, if the 26 percent of the g d p in china, that's related to real estate, which is just an unfathomable number that they're going to have to protect that. and what that will do is they'll cut up all these bad parts and given the other big developers and give those developers a little paddled back at some cash wire to their accounts. but it is, it is not too big to fail, but it is too big an industry to fail. and that's what's trying to get to do in trying to feel it. maybe the 1st time i ever support peter, because they actually the people save money, the money in the bank, they own. and so, you know, it's a different society guys. well,
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go ahead. i remember, look, the real estate start going away. i mean, some of the people who loan money or develop it might lose their money card. the real estate itself is still there. and those are assets for the people that have and the losses will be borne by those who made the loans of the government does the right thing about it. but everybody wants to focus on how unstable potentially the chinese economy may be. because it's 25 percent or so whatever it is, our real estate. well, the us economy is 70 percent consumer spending. what can be more unstable than that guess the consumers are spending out of debt, not out of income. and so our entire economy is based on a bunch of bank, rob consumers being able to continue to borrow more money to buy stuff. they can't afford money, they don't have and so much of what we're buying is imported, and a lot of it is made in china. so it's the chinese economy that's viable because they're producing all this stop. it's the american economy. that's not because we
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depend on what china produces for our consumption. so i would be a lot more. we're having a flashback here. 8. yeah. same warning is the same problem. tobin fight over 30 seconds. all right, right. this is the, the key issue is that their debt is in r a, b and one their own debt. it's not in dollars, 900000000000 dollars. if it was an $800.00 trillion dollars, we'd be in big, big trouble. and peter, for once, and let's say 15 years could be right. not so. so, you know, let's, let's not get to twisted here, so that the red forward rate at euro pacific capital peter chef didn't need us very much of the. thank you so much. that's it. for this, you could catch boom, but the bad of the portable tv app available on smartphones, tablet through google play in the apple app store by searching portable tv.
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portable tv can also be downloaded on samsung smart tv, then roku devices or simply check it out portable dot tv. well see you next time. mm mine across the board of the birch and focus bittman ball here. good to me. oh oh. oh i . oh, god,
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i understand, i look forward to talking to you all that technology should work for people. a robot must obey the orders given by human beings except when the shorter the conflict with the 1st law show your identification. we should be very careful about artificial intelligence. the point obviously is to great track, rather than fear i would take on various jobs with the artificial intelligence real summoning the theme in a robot must protect his phone. existence was
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the working machine. she popped in. she said, well, i'm getting ready to go shopping for christmas and we recently here was going to buy another shooting and there is a part of american life shattered by violence. the gunman was armed with and a r 15, semi automatic rifle. when the issue comes home, it's time to act. when we're filing on this issue, the other side wind by default, lady that lived over there. i was walking one of the dogs. why do you wear again? were you scared? i took it off. i think the people need to take responsibility in their own hands and be prepared if those kind of weapons were less available. we wouldn't have
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a lot of shootings and we certainly wouldn't have the number that i didn't we are not seeking the new cold war. all of the major powers of the world have a duty in my view to carefully manage their relationships, as joe biden promotes global corporation at the you and then the french president's canceled his speech. sarah made a growing diplomatic spot where the white i'm coming to view despite reco to you, energy price is a huge show fall into lie right now. the block is nonetheless flapping fine on poland for using coal is also blaming russia for the crisis. low leon.


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