Deeper to hit the stories that Mainstream Media refuses to tell more than we need to be smart we need to stop slamming the door on the bad and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for watching closely watching the hawks. Join me every thursday on the alex salmond shill and ill be speaking to guest of the world of politics Small Business im show business ill see you then. This is boom bust broadcasting around the globe and covering the world of business and finance and the impact upon us all. And im in washington and the like i was on saturday market watch it around the world are focused on the state of our minutes again today as the u. S. President imposes sanctions over the downy of u. S. Military drone rick rule of sprott holding on hand to help us tap into the consequences of a conflict on oil prices and what we can expect in effect are going forward. The middle east while it isnt the only concern for the Global Economy at the trade war friction continues to wear down the world country but surprisingly enough the tough will have opportunity for some nation mali barrels of American Lawyer is standing by to break down the investment for india and china region and later the point bill is back on a tear as the price has been writing a wave of uncertainty to recent days cryptocurrency analyst ben swan joins us to explain whats behind the run and what lies in store for the bullish for us weve got a packed show to go and dive right in. The twists and turns of world oil markets lead our global report today as concerns over demand drug prices back down while the United States unveils new economic sanctions against iran well prices spiked last week in the wake of the downing of a u. S. Military drone by Iranian Armed forces and the apparent last minute cancellation of a u. S. Attack on iran on monday prices fell back with brant crude easing off a recent peak above 65 dollars dipping below 64. 00 by noon a forecast from the International InternationalEnergy Agency of lower demand seems to be effectively countering the prospect of greater conflicts between the u. S. And iran investors as mines at least for now meanwhile here in washington u. S. Treasury secretary Steven Nugent briefed reporters on sanctions imposed on ranking figures in irans military chain of command by President Trumps executive order. Here to discuss the latest developments in depth is rick rule chairman of sprott u. S. Holdings incorporated. Now rick it seems like there is a tug of war between the risk of conflict and the likelihood of Global Global oil demand continuing to wane later in the year due in large part to the us choice to try to resolve trade grievances with china there would terrify so rick where is the equilibrium point where these factors have played out or is the situation going to remain dynamic given the confusion and concern over the white houses Decision Making process on issues of war and peace. I think the situation does continue to be dynamic as you point out there are concerns on a global basis about demand trade wars make everyone poor earlier in the intermediate term and it would appear that there are pressures for trade rulers around the world so that that acts on the side that would depress oil prices on the other hand exxon recently pointed out that we need to replace about 8 percent of Global Supply on an annual basis to offset natural declines and the lack of investment that took place earlier this decade of course geopolitical risks always have the ability to move the price of oil in the near term and should there actually be a shooting war in the straits of hormuz were about 40 percent of world export crude travels that would indeed be difficult for a bigger problem i suspect for oil supply would be potentially an increase in Interest Rates as most of the new supply in the world has come out of the United States in socalled unconventional production which is extremely capital intensive and relies on low some would say artificially low Interest Rates. So rick as the explanation for the trend here just as simple as and best as can be fairly certain that demand will wane this year because the us is well into a trade fight with china while conflict with iran is just a possibility and predicting what President Trump just so difficult this point. Youre above my pay grade i would be forced to agree with most of what you said but the truth is that. It would appear that at least nervousness concerning a trade war is constraining investments in a lot of sectors not least of which is energy on a global basis the other thing that i think we must consider that you havent talked about yet is the fact that we are at least alleged to be 9 years into an economic recovery however tepid that recovery might be and with the disclaimer that im not an economist a 9 year recovery is very long of tooth and a normal cycle where the economy began to decline after a 9 year advancement could of course impact oil demand. And rick pulling back for some perspective we pull back the frame here and look at oil prices for all of 192019 versus recent weeks what is the trend when we look at that scale. Hard to decipher i have to say if you take the trend back further than that 5 or 6 years you begin you begin to see some truths emerge one is the International Energy agencys estimate that the fully loaded cost to produce a barrel of Oil Worldwide including prior year write downs and cost of capital is about us 60. 00 a barrel in other words it cost the Global Industry 60. 00 a barrel to make crude when oil is priced substantially below 60. 00 a barrel the outcome becomes fairly clear of the Oil Price Goes up or your car wont start which basically means that the price goes up when the oil price exceed 60 dollars by 2 blood. When the industry gets to enjoy an awful lot of free cash 2 things happen people begin to conserve which reduces demand and at the same time the oil supply is very responsive to increases in investment so looking back over 5 years the median would seem to be 60. 00 which is the fully loaded cost to produce it according to the International Energy agency so now what happens if there had is significant progress at the g 20 meeting this week or President Trump and he will hold talks on the terrified if even a fall of the are enough to offset the weak me and demand thats already in the pipeline so to speak. I dont know the answer to that i wonder about the strength of the Economic Cycle after 9 years of expansion but the truth is for every reason we should hope that World Leaders manage to reduce trade tensions the truth is that tariffs and protection are taxes and taxes make everyone poor not rich or so in the context of everybodys life and in the context of the strength and health of the oil markets one must hope that trade tensions lessen and rick finally quickly what about this upcoming opec meeting theyre calling it an opec plus meeting will they be able to put a floor under prices at that meeting. My experience has been that opec is pretty good about narrative but not so good about manipulating markets the truth is that the market is very very very large and professed political constraints where leaders agree to do certain things and then cheat like mad right afterwards dont seem to have much impact on an outcome over time they can certainly in Impact Crude Oil prices in the futures market for limited periods of time but it would seem that opecs primary ability is to talk as opposed to to act which makes absolute sense in. A market as large as the oil market interesting. Us Holding Steady through time. Always a pleasure thank you. Major Monetary Policy news out of india as the Deputy Governor of the federal bank of india follows his former blues out of the door after a fight over the independence of the r. B. I. Caria is one of 4 r. B. I. Deputy governors and had strongly warned of the risks of increased influence of Prime MinisterNarendra Modis government over the r. B. I. Policy levers mr made his strong statements while the then r. B. I. Governor patel has led the push back on the modi administrations efforts to steer r. B. I. Policy mr patel resigned as r. B. I. Governor in the december of 2018 mr patel successor. Has pursued policies in line with mr goodloe to express policy for profit says for more relaxed regulations and credit considerations despite major scandals in indias Banking Sector now mr archaia is falling mr patel out of r. B. I. As of july 23rd. Vietnam and india are benefiting from the ongoing trade war between us and china china is pouring investment dollars into those countries to offset the cost of producing Tech Supplies overseas molly barrows contributed to america. Are welcome ali so whats the driving force behind chinas interest in investing in vietnam and india. Well the short answer is cheap labor and Affordable Land those costs are the primary reason china wants to shift production of Tech Supplies to those countries but the trade war is pushing those plans along even faster as chinas looking for ways to minimize like a lot of businesses are the effects of this ongoing trade war so according to a Goldman Sachs report and a south china morning. Post report about that report more and more companies that make components for things like Smartphones Computers other high Tech Products theyre moving there for manufacturing facilities out of china over those countries and more than 34 of those tech supply companies have already set up shop in Southeast Asia with vietnam and india emerging as too especially popular destination so vietnam is newly registered Foreign Direct Investment capital from china jumped more than 4 and a half times from year to year reaching one and a half 1000000000 in the 1st half of this year and indias inflows from china grew 137 percent 2018 from the Previous Year exceeding 390 1000000. 00 us dollars. Or these companies are. Chinese companies and move production to these countries are they still making parts for american buyers in american products. Yes they are although theyre trying to diversify so that they dont rely so heavily on that so some are still making a pretty sizable chunk off of making various tech opponents for American Companies like apple see Technology Hong Kong listed Electronics Components producer supplies acoustic components for smartphones and lenses to apple and its chinese competitor holey. As well but mainly from its production bases in Mainland China however the companys management said that about 10 to 15 percent of acoustics revenues are being generated in vietnam now with new capacity to gradually be added by 2020 and the company says it will have new factories ready in vietnam as well as the philippines as soon as late 2019 so this year the china based cable simply company luck share has only 3 percent of its revenue directly linked to the u. S. Market but its also extending its production sites to be at naaman india so the company 2nd factory in vietnam is aiming to start production by june of next year and theres even another taiwanese Multinational Electronics giant on high and it has 14 affiliates in india they cover everything from manufacturing logistics maintenance Sales Marketing you name it. 6 more affiliates in vietnam and another planned with investment worth about more than 16 and a half 1000000 u. S. Dollars so theyre certainly looking to pump a lot of money into those regions with hopes of that maximizing the value of those products whether theres a trade war or not so theres actually a loophole to dodge tariffs so that products come out made in vietnam and made in china. Well i think everybody is looking for ways that they can get around paying more for something right now is essentially what these tariffs and some call taxes are are essentially doing so american as well as Foreign Companies are looking for legal ways to get around these tariffs and although the decision hasnt been made yet as you know president Donald Trumps plan is to hit another 300000000000. 00 worth of chinese imports with duties of 25 percent so the shift to Southeast Asia may be good for some Chinese Companies but some American Companies say outsourcing work to those countries like vietnam is a little too expensive for them and theyre also concerned about overcoming the challenges of a lack of skills and infrastructure in this country so theyre looking at other options like using Foreign Trade zones and those are areas in or near ports of entry around u. S. Customs and Border Protection supervision and with approval from the u. S. Government companies can actually import goods into some of those zones with a reduced duty so thats one way that theyre trying to get around it and then also if you send goods to hong kong that can be used by some companies its a hot spot because of whats called a 1st sale rule essentially if a Company Sells to hong kong 1st at a certain price that price can be used to adjust the duty rates the next time its shipped or sold to another country or buyer said there there are some of the loopholes if you will that people are exploring well see im sure that they will come up with other ways molly barrows contributed to americas lawyer thank you so much for your time. So i know for a quick break but stay tuned because when we return the bitcoin bowl is back on a terrorism price has been riding a wave a bunch certainty to recent highs cryptocurrency analyst ben swan joins us to explain whats behind the run and. What was in store for the polish pretty much and as we go to break here are the numbers up close. Some time old shows were like a honey pot and everyone believed that it was all on stable and on the reliable of russia but they thought that everyone was great over there russian businessmen wanted to do business in the west because they feared some could take everything away from them in russia its now its the opposite they have businesses outside of russia was snatched less is frozen the old blog another student whine about. Good food descriptions sound up the even for the owners so how to choose his pet Food Industry is telling us what to feed our pets really more based on what they want to sell us then was necessarily good for the pet turns out that food may not be this people believe we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems its a huge epidemic of problems all of them i believe can be linked to fairy simple problem of diet and some dog owners so heartbreaking stories about their pets last treats the larger corporations are not very interested in proving or disproving the value of their food because theyre already making a 1000000000. 00 on it and theres no reason to do that research. Turkeys political economy is facing a significant challenge after president era ones 8 k. Party lost a rerun of the may oral election in istanbul by a greater margin than before the candidate of the Republican Peoples Party or c. H. P. And its turkish acronym defeated the candidate by a margin of 54 to 45 percent with a lead of 775000 votes mr anyone previously challenge the result in march when the c. H. P. Won by just 13000 votes leading to the rerun of turkish president who was also a former maybe the mayor of the city of 15000000 has said whoever wins istanbul wins turkey while mr erdogan had seemed to consolidate an increasingly authoritarian political model largely founded on a building boom that enrich many wealthy allies they did induced hangover has challenged the volubility of that model inflation is near 19 percent while the turkish lira has fallen as much as 40 percent against the dollar. The very quiet rally continues this summer as open backed into c. M. E. Futures have hit record highs indicating increased institutional activity and big quiet over the weekend big coin dominance have 59 percent and went as high as 11 1230. 00 before consolidating gains around 10000. 00 so what makes this rally different from 2017 here to tell us more is cryptocurrency analyst spence one so they coined is breaking out again and seems like people are a lot more hesitant this time around in 2017 you saw this mad rush of people driven by follow into the cup the same and a lot of them got burned last time when the bottom fell out and pricing crashed so now they seem to be reluctant to step in again what makes this rally today different than 2017 and is this rally sustainable this time around. Good question i think theres a lot that makes it different than the last time around but i dont think a lot of the people who as you rightly point out were hurt the last time because they didnt really understand what they were getting into. I dont think they understand why its different this time though i think thats whats Holding People back so let me take a step back here if you go back to 2017 and december of 2700 specifically big jump from 10000 to little over 19000 in just a matter of days with less than 20 days in which that took place and so as skyrocketed there were as youre right a lot of people who looked at it and said we need to get in on this the problem is they didnt really understand cryptocurrency that in understand what it was or what it would be used for they just thought my friend i heard about this thing called bitcoin and everyones making money and so they jumped in when the coin went down and crashed it went all the way down to 3000. 00 a lot of people were hurt by it but what ive been saying for quite some time as you and as you well know is that a lot of Institutional Investors have been getting involved in Block Chain Technology and specifically looking at because we talk about it on the show quite a bit from you know j. P. Morgan to fidelity there are a lot of Institutional Investors who have gotten involved whats fascinating about this latest jump to over 11000. 00 yesterday and then again today is that its only Institutional Investors who seem to be pushing those those highs right now its not the general public and as the general public sees it taking place i think well see them come back in again but this time theres a lot more infrastructure built around the block chain and big going than there was in 2017 so i think its much more sustainable and then not work fundamentals also seem to be really contributing to the rally hash rate had an all new all time high daily on change transactions are growing indicating that people are actually using bitcoin but as the Network Grows we work did run into the problem of scale ability back in 2017 what has been done about that sense and in order to ensure the network can scale and handle all these transactions. Well the hope for big coin has been something called the Lightning Network and that was the goal to really scale it to move it up to being able to process 50000 transactions in a 2nd which is quite a bit larger than what even vsit can do thats been the hope the Lightning Network has been unveiled but its really not a completely under way yet to really not working to its full extent yet the problem with bitcoin and ive said this for some time is that big corn is maybe the most antiquated of most of these crypto currencies that are out there there are a lot of other cryptocurrency is far more effective at processing transactions and much faster than because so when we talk about kryptos like dash digital cash we talk about smart cash both of them have that feature called instant pay which makes them much more scalable and much better at a point of purchase. Crypto as opposed to a big going so what happens is as big going grows and gets more attention and people get involved with that they hear about these other kryptos which have theyve been growing you know with areas over 300 right now like coin is clear creeping up to 200 big going cash almost 500 so everyone else is going there just growing a little slower ones big going hits a certain level it seems like the price gets high enough that people will look at other kryptos and in many cases those are more advanced cryptic currencies in my opinion and now we spoke about facebook for and we kind of agree that it really wasnt have their currency if thats it it over currency a stable client and all that and it really undermines the true purpose of a decentralized kept out however its not all bad it seems as if facebook backing this project it offers kept apparently as a whole mainstream that didnt think so do you think that thats the case here that they not crypto could actually bring about mainstream adoption of. Yeah i think they absolutely can you know that i have no love for what facebooks doing with libra as its known but but youre absolutely right and by the way some of my viewers have also reached out to me and said hey theres a positive to this and exactly echoing what youre saying which is that Chris Facebook will introduce the masses to cryptocurrency but theyre doing Something Else that i hadnt really predicted and probably should have which is that theyre actually. That full mo you were talking about this fear of missing out i think is now being attached to a lot of c. E. O. s from other companies who maybe themselves have not ever considered involving their company with cryptocurrency because that was a crazy idea why would i do that but then they see facebook do with it and they say oh my gosh there must be something to this because when a company like facebook is leading the way on trying to establish their own crypto currency we need to get behind that and so i think were going to see more institutional money moving into crypto and blocking thats a whole busy because of what facebook has been doing absolutely so what about time and time was backed by telegram and they will actually be launching scenting compete with premier platforms such as pocket on cosmos however it has to had a significant head start over them as telegram has already amassed 300000000. 00 users around the world and so right now it actually looks like this might actually be a competitor to facebooks clear as to drive payment through its messaging service as well similar to what facebook is trying to do with whats that so whats your take on this this seems to be a much more decentralized play as on it has way more credibility than soccer. No question about that and telegram its a totally different beast 1st of all because tom as you mentioned it personally it is decentralized they ran an i c o in order to launch it was the its the 2nd largest i. C. A. O. Ever done i think 1700000000. 00 brought in for that its 2nd only to what was that e. O. S. When us came along and called in 4000000000. 00 so a lot of people involved in that theres a white paper that surrounds it it is a decent realized platform as opposed to what facebook is doing which is not the centralized at all they do have 300000000. 00 users so there is a use for it but the other thing they have though as you know kristie though is telegram has credibility within the blog chain and crypto world everyone whos involved blocks in crypto is on telegram and so what already has a trust factor that facebook absolutely does not have so it will be exciting to see the kind of run they give facebook i would be pulling for tom and for telegrams simply for the legitimacy of their project versus what i think zucker berg is trying to do they want to cancel and i thank you so much for your time. Guys thanks. Casino operator Eldorado Resorts has agreed to buy Caesars Entertainment at 17300000000. 00 in a cash and stock deal announced over the weekend eldorado will acquire all of the outstanding shares a caesars for 12 dollars and 0. 75 per share consisting of 8. 40 cash and point 089 shares of eldorado stock creating the largest casino owner and operator in the United States this deal has been highly anticipated as billionaire activist investor carl icahn has been pushing the company to sell itself ever since the company emerged from bankruptcy and 2017 icon holds 28. 5 percent of caesars and has been very of active in the negotiations to help turn around the struggling company added to the Deal Properties a wreath will acquire the real estate assets of the caesars on her resort in Atlantic City laughlin and new orleans for approximately 1800000000 dollars so uses up 16 percent today while eldorado is trading down 8 percent as the merger is subject to the approval of the 2 Gambling Companies shareholders as well as gayman trade regulators it is expected to finalize in 2020 this is so interesting christiane you know when we were selecting stories a day i was so happy were finally getting to the gambling but you actually also have some personal experience and knowledge of this so with insight to take on the stories of the season has been a lot of trouble from the very beginning they were previously a Public Company but then due to some financial struggles they actually got taken private back in 20 or 25 when they got acquired by apollo and they then needed to raise cash again so they went back to the public in 2012 when now we see them buying from bankruptcy and that because they have a long term outstanding debt of 9000000000. 00 and that is above what their current market value is. Only 7000000000. 00 which is crazy i hope we stick with covering this. And the reports of the death of u. S. Retailer toys r us may have been exaggerated following the 28000 closure of more than 700 stores shrew kids brands which purchased the rights to the toys r us brand in october of last year is reportedly planning to bring back at least 2 brick and mortar toys or a stores by the end 2019 a source with familiar with the plan said more stores would be on the way in 2020 toys r us folded after years of struggling to compete with ecommerce giants like amazon and that was seen as the death knell for many longstanding retail brands true kids was founded following the purchase of the toys r us brands and also owns the rights to the associated brands including babies r us and their famous mascot geoffrey the giraffe they tended to keep the brand relevant during the 20000. 00 Holiday Season teaming up with grocery mega chain kroger watching jeffries toy box pop up stores in 600 stores nationwide. Thats it by this time you can catch them by stand back t. V. Channel 321 dish network 80 or streaming 2401388 pretty at 130 or as always had us up at youtube dot com slash boom bust r. T. So you next time. Only over. The. Internet. I dont know that. Iraq dont want. Us imposes sanctions on the wrong Supreme Leader in the wake of a drone shooting look at how washington stalls of a country seems to be pulling in different directions. A trumpet ministrations middle east peace plan is rejected by palestine with critics accusing washington of trying to bribe into making concessions to israel. Parents of critically ill palestinian infants taken from gaza to press a hospital that israel say theyre being denied that children