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tv   Boom Bust  RT  September 23, 2021 3:30am-4:00am EDT

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get ready to go shopping for christmas. i we, we think there was a good buy another shooting another safe part of american life. shattered by violence. the gunman was armed with an a ar 15. any automatic rifle. when the issue comes home, it's time to act. when we're filing on this issue, the other side, when by default the lady that lived over there. i was walking one of the dogs. why do you wear again? were you scared? that took it off and i think the people need to take responsibility in their own hands and be prepared if those kinds of weapons were less available. we wouldn't have a lot of shootings and we certainly wouldn't have the number that i when i was shot the wrong. why don't we just don't the room?
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yes to shape out the same because the after an engagement equals the trail. when so many find themselves will depart, we choose to look for common ground in this is been but so and visit show you can't afford to miss. i'm rachel beloved, and i've read the board and watch it said coming up. the federal reserve had spoken and we'll keep it easy monetary policy in place for the time being. but just how soon can we see the paper we'll discuss. plus, the chinese ever grants saga has taken a small step back from the edges. the property giant has met a key debt deadline, eating market contagion fears. what does the future have in store? then the world of crypto is prepping itself for potential regulation as coin base confirm, plan to pitch federal agencies on what the industry rules should be. we have the
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facts here today, full of dive right in the china adver grand group, and now it's wednesday. it will avoid defaulting on billions of dollars in debt temporarily easing concerns of a broader contagion effect in the world's 2nd largest economy. the developer says it has resolved a roughly $36000000.00 payment due on thursday thing. the deal was done by a private negotiations. the details of the situation were not disclosed and questions remain about the future of an $83500000.00 in bond interest payments due the same day in june, ever grant reported more than 300000000000 dollars and out standing debt with more than $37000000000.00 due within the next 12 months. that same report showed the
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company having less than $14000000000.00 in cash on hand. so do the math there. meanwhile, the people's bank of china has injected your lead $1900000000000.00 into the financial sets. about wednesday, the nation central bank made similar moves, friday and saturday last week in an effort to improve sentiment. as global markets had taken a hit, the debt crisis. so what kind of back might this have on the chinese academy moving forward? while the discuss bring in professor richard will host the back in the mac update and author of the sick. this is the system when capitalism fails to save us from pandemic or itself, always a pleasure to have you on professor wolf and i want to start with these cash injections from the central bank here. the chinese government's recent curves on the real estate sector played a role in the ever grant crisis. and yet many analysts believe the government is going to continue to step in to help them out. what are you seeing here and what is the government's role? well, i think the observers are correct to the government in china in no way,
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especially at this moment in its history, is going to allow any kind of general collapse they've just applied to join the asia t p equivalent. they are relishing their emergence as the number 2 economy power in the world, rapidly catching up to the united states in a way this very crisis of firms that because here is a real estate developer in china having a problem meeting a debt and the whole world is paying attention the whole world is worried about the consequences. a part of them loves this because it's a kind of recognition of their importance. but between the private deal that solve the domestic debt that they had to pay. and the deals now being worked out some publicly, some privately, for the foreign part of the debt. i think we're going to look back on this as
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a bump in the road, but not much more. now there's been a lot of talk about a possible lehman moment here, but wall street analyst are now downplaying. the idea that this could be like the housing crisis we faced a decade ago in the united states. how are these 2 situations different? they are different because it's a much more contained phenomena. it's in one particular industry. it has to do with the chinese government's program of pre building. i'm assuming people are familiar, china is doing something nobody else has ever done. they build the entire communities with complete with high rises before. there are people in those communities, they're pre building. and so they borrow huge amounts of money and then they move the people gradually into the housing, to avoid slums and all the other kinds of things that have been problems in other
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countries. so this is a special industry with special financing arrangements and a government program that they're carrying out very little chance that the government would allow its prestige to be questioned by not coming in directly and indirectly to fix this situation to get the economy through. and that's why i'm quite confident that the folks on wall street in this case are right. this is nothing like allowing a lehman brothers an unheard of thing at the time for odd and 25 year old bank to collapse. and by the way, that consensus is that that should never have been allowed to happen in the 1st place to leman and which is why it didn't happen to others. the chinese learned that lesson also and fascinating information there, professor was absolutely. now i want to ship to another story regarding china. last week it applied to join the new version of the trans pacific partnership,
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the 11 nation trade pack, which includes countries like japan, canada, and australia. it's unclear if they will actually be accepted into that deal, but why the beneficial for china to join the t p p basically. so it isn't excluded from both the existing t p, p and whatever future evolution it shows the chinese want to be able to export into those countries. they want those countries to look to china, which is the natural growth for them for their exports. they don't want to be excluded from the arrangements. number one, number 2. there's lots of suggestion that the united states, if not immediately, we'll soon realize the mistake mr. trump made and go right back in mr. trump had taken the us out of it. that biden is probably going to try to go back in, and they don't want the united states to mention the cold war with china to become
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a problem for them in their trade relationships. i don't think they're terribly worried. they're such an overwhelmingly dominant economic reality for all the countries in that region that with or without the t p p. they're going to be part of their history there. but i think it's easier for them. it's less trouble it for the united states, a little bit for them to get in there. now i want to touch on that point that you made there about how the trump and ministration handled those negotiations when it backed out back in 2017. do you think that that set the united states back and is it possible that it can still get in? i mean, where does all of that stand? well, i think most of the world, and this is, i know difficult for americans to swallow. but for most of the world, the trump regime was a mystery, wrapped in an enigma. if i can borrow another statement to commentary, it was weird. and what he did was weird and the result is then i think that most of
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what he did is going to be undone by the, by biden, and by whoever comes next. because it doesn't make any sense to them. so i think there is a and the united states will apply to get in and will in fact, be allowed to get in to little more questionable how hard the united states is going to try to use this as a platform to block or for china. and i think the maneuvering was for the try news to get in 1st to make it a little harder for the united states to wage cold war in that particular arena. to why that's very interesting, because you'll remember during the obama administration, unions had pushed heavily against the trans pacific partnership, enjoining that and of course, the bite administration has relied heavily on union support as well. so it's going to be interesting to see where that might go. professor richard. well, thank you so much for now that today. thank you.
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and we had did the federal reserve as officials wrap up their monthly meeting chairman jerome powell again reference, soaring, inflation, admitting they've been higher than expected. he placed the blame on the ongoing supply chain shortages and said he expects the rising prices will only be temporary . inflation is elevated and will likely remain so in coming months before moderating. as the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly because supply bottlenecks in some sectors have limited how quickly production can respond. in the near term, these bottleneck effects have been larger and longer lasting than anticipated. leading to upward divisions to participants, inflation projections for this year. now all of this comes reports have surface revealing that dallas fed president, robert caplin and boston, fred president,
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eric rosen grand, actively traded stock last year. while they were also in charge of setting monetary policy for the country. so where does the agency go from here and how will it's actions or lack thereof affect the average consumer? well, joining us now, this is jan y'all, dean martino, booth c o of cool intelligence. danielle, it's great to have you back on the show today. and i know we've just listen to what chairman powell had to say. and right now the expectation is that the fed won't announce plans to start tapering. it's $120000000000.00 a month and bon purchases until november. so why the way, when we've been talking about talking about taking action for months now? you know, i think that i think the care power even above and beyond obviously so many of the other members of the committee who are already clearly worried about inflation. if you look at, at the so called dot plot and see that anxiety, that is really almost uniform at this point i didn't care about does. does harbor
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some concerns about a lot of the drama that's going on right now in washington d. c. we have a very real, very unresolved debt ceiling, which means that the united states treasury cannot issue bills, bonds, and notes. even if there was to be legislature passed that legislation, excuse me, past tomorrow, there'd be no way of paying for it. and it really is not in the fed tradition or purview to step into a political drama, a political morass, and change policy in the midst of that. and i was a little surprised at that subject wasn't raised because again, that i think is part of what is holding power back and making him reticent despite the obvious signs that inflation has become unhinged and video. i want to clarify what you just said there because you make the point that the, it's not really the bad job to get involved in kind of what's happening politically when it comes to a debt ceiling a budget. we also have basically have
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a market sell off that we saw earlier this week, although again, it's not their job to prop markets up. and we also have the china ever grand saga taking place right now as well, which is creating concern. so, i mean, aren't they just supposed to be making sure that the economy is running smoothly and the monetary policy matches what we're doing? so don't think that should they be taking some of those things out of it? you know, and in theory they should be extricating a lot of these variables. a lot of these factors, a lot of these unknowns out of their policy making, but we always have to bear in mind and it actually isn't the verbiage that it is the feds duty to make sure to ensure that there is financial stability in the system. so it's not necessarily one of the to mandate, but again, that is part of the fed purview is financial stability. but clearly markets have long since gotten past any concerns about monday they've written off ever grand. and it's because it's potential to, to set off systemic risk and we've seen stocks more than come back from those
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losses and celebrate the fact again that j. powell appears to be in the driver's seat and not quite prepared to begin tapering purchases again. that's all that markets need to celebrate is just to be told that the liquidity tap is not going to be turned off. yeah, and i know, even as we hear from other fed officials who say that they're concerned about what power is doing right now, he still continues on not on the same path. now i want to bring up another story here, which is what's going on inside the fed. we've since heard from senator elizabeth warren, who is calling to for the removal of at least 2 fed officials. after reports revealed, they traded stock last year, while also setting the country monetary policy. what kind of action can be taken in a situation like this? and are these practices likely much more prominent than we realize? well, i don't, i think we would know if they were more prominent because every single one of the
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12, a federal reserve district president has indeed released their financial statements . so we know at this point what has occurred? well, i think that what powell and he said that in the press conference, i think that what he's addressing is the non uniformity, if you will, of how each better reserve district approaches what isn't, is not appropriate in terms of trading securities, especially trade, individual security or in the case of a dallas, fer president kaplan, actually buying an exchange traded fund that benefited from the feds bond purchases . so i think what we, what needs to be addressed here. and remember, i was inside of the fed for 9 years, is that there needs to be the general counsels of each individual federal reserve district need to have one solid set of rules and strictures that dictate how everybody who is in a leadership and a voting position on the federal open market committee can and cannot trade. so i think it is definitely time to reform these measures. i don't know that that
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senator warren is going to get her wish, of ousting these presidents that certainly out of her purview. yet really be interesting to see what comes out of this. and of course, if we do end up getting that taper announcement finally come november, danielle the martinez. thank you so much for your time and insight. thank you. and the department of justice has announces investigating the video conferencing platform. zoom over is acquisition of the cloud, customer service software company, $59.00. well, those companies are based here in the united states. the d o j says it's putting the nearly $15000000000.00 deal on hold over national security concerns. this is just one of the investigations, the u. s. government is pursuing against zoom over what it claims are substantial operations in china. the company that went viral last year for making it possible for many americans to work from home and also go to school from home. is now the
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subject of federal investigations in both new york and california over the way it stores data and it's interactions with the chinese government soon has cooperated with the investigations while also noting that its company is based here in the u. s. and at seo is a us citizen, for now it remains unclear what will be the result of the investigation as the d o j looks to challenge this deal with $59.00. and it's interesting, i mean, this is something similar, obviously why way was a chinese company, but it's like if you have operations in china, you are going to face government scrutiny here in the united states. that way, at least it appears in recent years, yet it is. and you're seeing when they talk about the protection of our data, how they're kind of putting that magnifying glass when it comes to china. why the same time not talking so much about all of the companies base here in the united states, but take our data and do what i was thinking. the same thing is when you look at all the burgers of acquisitions that happen, just united states companies. they rarely are concerned with the data. it's just
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about maybe monopolized stig practically and time now for a quick break. but when we come back, coin base has plan to submit a crypto exchange framework, the u. s. government in the coming weeks. but what can we expect will fill you in on the other side as we go to break here, the number that the the, me oh right now, there are 2000000000 people who are overweight or obese. is profitable to sell food that is fatty and sugary and faulty and addicted. not at the individual
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level. it's not individual willpower. and if we go on believing that never changed, that industry has been influencing very deeply. the medical and scientific establishment, ah, what's driving the obesity epidemic? it's corporate. me. ah, no, no borders, i'm the line to tease emerge . we don't have authority. we go to the back seen world leads to take action and be ready. not to people who judge, you know, crisis we can do better, we should be better. everyone is contributing each in our own way. but we also know
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that this crisis will not go on forever. the challenges for the response has been massive. so many good people are helping us. it makes us feel very proud that we are together in the the news the welcome back in the next few days, coin base is expected to propose is preferred framework for regulation to us officials, according to reports, the crypto exchange plans to argue about the definition of what security is within the united states,
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this as us regulators are looking to crack down on stable coin and even warning that the entire crypto market is in danger of collapsing the economy. the same way the derivatives market did back in 2008. joining us now to break all the john, i must co host an chris to encrypt analyst bend on and kristi i kristi, let's start with you here. so what do we know about the proposed rules that coin base is hoping to pitch? well, we don't have much details as of now. all we know is that the main detail and the proposal would be to clarify which should and should not be defined as the security within the us. and this is most likely in response to point a having to stop their plan for ruling out a crypt lending program with scc said goodbye, lead purity. the regulator is apparently comparing their lens product to stock or certificate with interest which are securities under the per year. so they actually have a long history of trying to create a framework and tools in order to standardize how changes approach crypt,
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listings and product on the us. it was a founding member of the crypto rating counselor in 2019, which was an effort to try to create a common understanding of how any given could the current the resemble security. so the group created between one and 5, where one is definitely not a security like this one, and 5 is something that did appear to be security. so the theory actually published this approach and a score card that projects could use for the asian last year. so it has definitely taken many steps in order to try to work combination and also educate regulators in the world. because as of now, the only thing governing it is how you have something that is somewhat outdated. so the fact that point is published methodology and the scorecard shows that we're defining features and nuances as to what should be considered a security for the fcc to just throw everything together. i think everything security is just over reach of their power and authority. and now brand michael to
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the acting chief of the office of the comptroller of the currency argued tuesday, the crypto currently and the centralized finance may be evolving into threats to the financial system in much the same way. certain derivatives crash the economy in 2008. do you think that's a fair assessment? no, i think it's actually a ridiculous assessment. i mean, if you take it at face value of what he's saying, look, the derivative derivatives market crashed the economy in 2008. why? because of the fact that government essentially allow that these institutional players to break the rules and to grow without any controls on the right. the opposite is actually happening on the crypto side. it's not that the crypto currencies are growing out of control and there's no one to regulate them. they're being overregulated right now to the extent that no one seems to know what the regulation is, right. and so, so you have various different forms of crypto currency that are being essentially run down and tackled from behind because they were supposed to be security. and now
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the fcc says they're not, they were supposed to be utility. and now the fcc says they're not so it's very confusing, but something else that he says, which i find very interesting is he's basically saying there are people who are die hard crypto enthusiasts. i think, i guess you have a couple of on your show here. and then those people, he says are the, are the mindset that they believe in this crypto. however, you have mainstream users who are coming in and they're not so die hard. and so they may freak out. if things don't go their way until they'll, they'll cause disruption in the market. that's absolutely true. i think that is true. but to what extent will that crash the u. s. economy? i think that's a huge lead. meanwhile, you know, companies like black rock bite up all the houses in the country and nobody seems to think that's a problem. well and again, yeah, if you, if, if big companies buy too much crypto and lose it, and that causes an economic crash. seems like there was a bigger problem here at hand. christy had a stable coin spent in this debate. why is there so much attention?
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unstable coins right now. right now they're kind of saying a stable point or the threat to the current financial system because the points are essentially points pay to the us dollar. things like us, b, t, u, b, c, use the usb di, crack cetera. so people started using stable points in lieu of actual dollars, then essentially the country and the fan will have just lost their power because the country is the only body in the us that can issue legal tender. but it's stable point became widely accepted exchange and then secondly, the treasury is no longer the only shouldn't. that's the real reason that they want to try to rein in because they moved everything. but then of course, the other reason that they're citing include things like the fact that they will mine are not necessarily trustworthy. as the company behind the issue, we do not have a one to one with their ratio. as private companies, the issue in companies don't need for that at the high where and what their reserves. so full circle which is the issue of youth dc and heather the issue or
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has separately defended the level information that they share with the market and how they've invested the research to corporate that commercial paper and other liquid market with cash. so they said that that could be a risk to the financial market and the market stability as the industry rose. and if there is any sort of breakdown in the city that could cause a massive, i'll come back to control at the end of the day. now, but i want to bring up another story here quickly, which is that robin hood is now testing a crypto wallet and crypto currency transfer features for its app, which would allow customers to send and receive digital currency such as coin. there appears to be a waitlist. page for users signing up for this wallet features. so how does it move or how does this move rather fit in a tighter regulation? well, i think the regulators would love it, right this. this is exactly what they would hope for all crypto currency for all time. you have
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a few companies like coin base and robin hood that will essentially become the actual wallet. they will be the one to, to the buying and selling the crypto. you think it's yours, it's actually not. it's sitting and robin hood's wallet. and so if the government decides that you're not paying enough taxes, or that if you're skirting something they don't like, or that if you're involved in some kind of a legal transaction, they can simply take the money out of your account because it's not your account. it's robin hoods, wallet and so i would just say it's a warning kind of a closing warning here. if you believe in crypto currency and you want to be involved in it, do not make a coin base or a robin who do your primary wallet because it's not yours. it is theirs. and they can do anything they want with the currency inside that great information, as always they consider boom bus, bent on and chris the i thank you both. thank you. and that, that for the time you can catch boom by on demand on the portable tv app available on smartphones and tablets through google play in the apple app store. 5 searching portable tv. portable tv can also be downloaded on samsung, smart tv, and roku devices,
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or simply check it out at portable dot tv. well see you next time me let me just as mine it costs more to defer to focus bittman. lowball got me. oh yeah. oh, oh i, i got me,
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i, i, i mean i can get in there who are rescuing the food that they were scabbing or, or where were rescuing resources that are still good. this is best by march 21st, which is in 2 days. all these potatoes, hall panels, onions, all of these came from waste brown sources. the. this is great for me because i'm all is looking for a way to give things away. dr. because the tax laws, you know, definitely do benefit the wealthier people and our society. so that makes sense for them to throw it out right off, rather than give it to somebody who could use it. and then that person is not going
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to buy it. the the, the, the site a state school for a strategic review of the blog with from, for the elliptical dialogue within it is non existence derived ethan over security . people between alliance members the u. s. u k and astray, lia will say this, your worst and show teaching decades rattle the politicians with consumers facing it. surely winter with that fuel. there's a familiar skate going with making demand that moscow public small gas and the way the story has captivated the nation, has many wondering why not the same media attention when people of color go.

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