Where the currency manipulator label while it is in part symbolic it can actually open doors for very real consequences by doesnt it country as a currency manipulator it opens the doors for trump to set more formal punishment higher carrots and tougher sanctions now while it seems that the risk of a full blown currency wars are now at diminished both economies have been ravaged by the ongoing trade war so i after all the dust settles who is in better shape now lets take a look at this this shows the 4 major Central Banks the e. C. B. The bank of japan the peoples bank of china and the fed over in red and their total assets so what do you notice here this is a really interesting trend right now because all of the worlds Central Banks are kind of converging together and coming together at a very similar valuation up here but then theres the one the fed thats actually breaking the trend here everyone else has come to equal stands at about 5. 2 trillion in assets but the fed has been on auto pilot. To reduce its Balance Sheet the reverse of everybody else they did so through a series of quantitative tightening starting at the end of 2017 but now this has resulted in a liquidity drain that is tightening the u. S. Banking system even after the fed has stopped its Balance Sheet shrinkage analysts now noted that u. S. Banks are nearing a reserve scarcity this can actually be seen the as a reluctance of large domestic banks to move out of reserves and into the closest h. Q. L. A. High quality liquid assets so basically a liquidity withdrawal here will result in weaker Risk Appetite a far stronger u. S. Dollar lower treasury yield while widening the libeler versus the overnight swap spreads on top of that the fed is about to be hit with another liquidity trend of roughly 200000000000. 00 of the next 2 months as a tragedy stated its desire to build up its cash reserves so putting all of this together this implies that the liquidate will likely continue to tighten and in order to stop this likely tiny from advancing further the fed may need to start another open markets operation sooner rather than later in order to inject reserves back into the u. S. Banking system now omo right now is just another fancy word for quantitative easing and the kind of looks to be inevitable if for no other reason than to monetize the upcoming wave of the us to supply as specially now to china decide to boycott or just outright sell us treasuries this possibility cannot be ignored as were no closer to resolving the trade war the fed will then have no other choice but to resume q. E. And start expanding back its Balance Sheet again but potentially as early as 4th quarter in order to provide liquidity and ease the funding pressures expected during the upcoming wave of treasurys supply. And the brics a drama plunged deeper into uncharted political territory this week when Prime MinisterBoris Johnson barely in office a full months and determined to take the United Kingdom out of the European Union on october 31st with or without a deal asked the queen to suspend the parliament thereby limiting. Time members of parliament would have to legislate against a no deal prag said mr johnson made his power play the day after the parliamentary opposition finally formed a position setting a plan to block a hard drugs at religion through legislation and while the parliamentary may new entry maneuver may make it much harder for opponents to stop mr johnson from moving forward he is now having to face resignations in his party petitions protests and polls rejecting his policy on braggs it joining us now to discuss this fascinating the boggler hillary for which board member of the British Business association and former member of the Scottish ParliamentTommy Sheridan tommy it wont come to the show lets start with you some of the major fallout here is in scotland where the leader of the conservative party there david said a noted opponent of our brags that has resigned she did not criticize mr johnson in her Resignation Letter but did write i have not hit in the conflict i have felt over brags that there is meanwhile also a legal push from m. P. s asking scottish courts to block the suspension so my question is will there be more resignations along the lines of ms davidson here or perhaps even a major split among conservatives and can the scottish courts block progress. Well those 2 questions itll be silly the 1st one is yes i do think there will be more rizieq nations and i think theyll be a lot of decent lake sions from within the tory party because when they go to parliament next choose the there will be motions proposed that will rely on a rebel to get a majority in parliament lets just rule for a minute and consider whats happened weve got another late Prime Minister in the shape of borders joints and i know no more not in the shape of Queen Elizabeth i skinned. To suspend an elected parliament new if this was happening and van is. Willa america would be sending troops is an absolute shock of a situation thats developed mr johnson noise he cannot get his new deal but its that which is what he wants through parliament so instead of living up to the debate and take it all in the debate like come on hes running laker coopt and closing bell in the be and causing doesnt the parliament to try and avoid the embarrassment of being beat in parliament thats why you have got resignations you have got motions in parliament youre probably going to have a new confidence motion as at least 3 Different Court cases one in england 11 in scotland i believe that is also no one in Northern Ireland so there are court cases all over the place saying clear to mr johnson you are acting with you you are abusing parliament the speaker of the house has called. An absolute disgrace and then a salute on democracy an assault on democracy regis is what theyve said mrs. Nicholas still doing here in scotland rafale to mr johnson as a 10 point dictator thats the we the thing as a mess and quite frankly i think its a gamble that hes going to lose i think next Week Parliament is going to bait but there will be a move resignations more rebellions and mr johnson is going to end up with egg on his face now hell are we just mentioned the protests and petitions after the program parliament there were nearly 1500000 signatures on an official petition to parliament asking them to stop a no deal braggs it so nearly half of the respondents in the you got polls that they opposed to no deal back that and conservative m. P. Jacob riis madhu often found a like a time collar from the Victorian Era he dismissed a candy floss of outrage so does it not bother you that brags that what was once advertised as a push to risk. Our democracy and sovereignty is now be advanced by preventing the elected parliament from legislating by to create a monarch at the request of an unelected Prime Minister well actually yes it is a total mess and thats particular because obviously what theyre trying to do as theyre trying to thwart the vote of 17400000 u. K. Voters the majority of whom voted to leave and so remain as absolutely are doing everything in their power of course theyre resigning but you also had a lot of tory ministers resigning when the Withdrawal Agreement that really wasnt withdraw that agreement they resigned then actually that the British Public voted the u. K. Public 17400000 it was more than a victualling notice to the e. U. Thats what has not been honored and that is undemocratic as for the Speaker John Boehner how tommy just mentioned well you know its unconstitutional for him to him to even voice an opinion he was on holiday when he voiced his opinion and that is unconstitutional for him to speak and reese morg i think is right on target. Staying on the pushback here tommy we also have Opposition Leader of labor Jeremy Corbyn insisting that he will try to stop the Prime Minister with legislation the National Coordinator for momentum the group sort of form to defend corbin against opposition within labor says our message to johnson is this if you steal our democracy will shut down the streets do momentum and perhaps the trade unions have the coordination right now to effectively contest the Prime Minister in the street as they say. Well lets put it this way depends what your view of democracy is democracy to me living and breathing organism its not something you bring it once every 2 or 3 years that we and a couple of democracy heists to be an every day event involvement all of the people and its quite rate to see that the majority of people. And the majority of people in wheels brakes at that happen thats a reality but what is also reality is the majority of people in Northern Ireland and the majority overwhelming 62 percent of the people in scotland voted against so you have a very very diverse. And what weve got to see is that was 3 years ago there have been elections that have been you to peter elections its been a general election and everyone who voted but except the voter you going to be says that were going to get a deal i voted but i dont like the European Union i think its an undemocratic institution but you know what people attack the European Union to see that these commissioners the elected they dont represent any weather theyve got no credibility no one a leg Boris Johnson is a Prime Minister he got elected by his own potty members to become the Prime Minister of the whole of the u. K. Less than one percent of the British Population has voted for this man he has new democratic credibility the answer to d. Is not the program you know parliament no clues in the parliament in the midst of a parliamentary democracy the answer as a general election let the people do say green democracy thats what we need. And hillary just was a lot on the table there do you want to respond to tommy there well i think a couple of things in terms of the programming of palm and this is not an unusual occurrence i mean it occurred 20 days in 2014 it was 8 days as recently as 2017 and nobodys really noticing that nobody seemed to Pay Attention to any of that its just really the duration of it of course because the queen has okayed for it to take place has only maybe a september 9th and usually its not more than 8 days but programming for our International Viewers is not the same as dismissing paul and its not the same as dissolving parliament so i think probing parliament is quite the norm i think in this instance it watched. Focus people. Call has given 30 days i think the 30 days is a reasonable amount of time to come up with a solution for the irish boxer and as for Boris Johnson yes i am tommy is right he was elected by the conservative party thats because theresa may who totally have awfully failed to execute 17400000 people voted for she resigned because she failed on the Withdrawal Agreement is not an agreement that anybody same would take because this is a 2 issues about Withdrawal Agreement you pay 39000000000. 00 to be in quotes divorced they are not allowed to trade internationally the new watch every day or they lose were going to lose are we going to lose time you know there is so we have to cut our good to have this expert debate here Tommy Sheridan hillary forge thank you both so much. Time now for a quick break but hang here because when we return greg there is only one brick in the crumbling while the Global Economy but could it all come crashing down steve king joins us today from amsterdam to break down the latest moves in the bond market and what it could mean in the world market and as we go to break here the numbers at the club. Paradise with. Turned into a round the experimentation field cultural chemicals we know that these chemicals have consequences they are major theres no question otherwise why would the Chemical Company workers themselves be geared up that suited up locals attempt to combat the on regulated experiments that often in day you have many of these people one foot into the biotech pharma and the other foot in the government regulatory. Bodys this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental racism going on in hawaii whether these Companies Feel they can get away with this because the people have less political power. To. Me than. Most people think to stand out in this business you need to be the 1st one on top of the story or the person with the loudest voice of the biggest race in truth to stand down lose business you just need to ask the right questions and demand the right answer. Question. Because theres Survival Guide up stay single malt to start simply putting all the surface. Be sure its still there you dont get it back. Oh heck no but this is a repatriation scheme will look at the rest in 7 years. Hell of a separate class kaiser report. During the Great Depression which im old enough to remember there was most of my family were working. There wasnt it was bed you know much worse objectively than today but there was an expectation that things were going to get better. There was a real sense of hopefulness there isnt today todays america where shape by the turn principles of concentration of wealth and power. Reduced democracy attack solo down engineer elections manufacture consent and other prince posts according to no on. One set of rules for the rich officer said. Thats what happens when you put her into the hands of a narrow sector of will switch will is dedicated to increasing power for chills just as youd expect one of the most influential intellectuals of our time speaks about the modern civilization of america ready ready ready ready. I am sure to stop it for continuing to grow. I just never felt very good about the idea of bringing children into the world because i didnt feel like things were in very good shape that a life was just going to be a lot of software program. Theres no reason the more kids. Take things that are to me that. Theres movies on the make Something Else that knew the ropes and everybodys scared to talk about it certifiable. It is really dependent on us addressing this issue and if we can even talk about it and reach and even have a conversation of that it then. Were in trouble ready. Welcome back argentinas foreign minister announced on wednesday that the government will seek to renegotiate the terms of 100000000000 dollars 101000000000 dollars worth of debt on thursday bonds one in the sell off mode in the argentine peso return resumed its slide in currency markets on the news 44000000000. 00 of the 100000000000. 00 debt burden consist of the credit provided by the International Monetary fund as part of the record setting 57000000000. 00 credit on austerity package from the i. M. F. The government of president is now seeking to postpone repayment of that debt to the i. M. F. As well as dealing 7000000000. 00 of payments on short term local debt and what they call a voluntary reprofiling 50000000000. 00 in Long Term Debt argentine markets have been in flux and surprise results in a president ial poll gave a big win to mr macros of what challenger from the left all Beltre Fernandez and his running mate former president senator and 1st Lady Cristina fernandez de kirchner. Theres a new twist in the ongoing saga involving what is anticipated to be the Worlds Largest i. P. O. Saudi arabia state run Oil Enterprise ramphele is now considering a plan to split the i. P. O. Into 2 stages 1st a portion of shares will be sold on the saudis Stock Exchange this year with a follow up International Offering in 2020 or 2021 according to sources familiar with the situation iran is looking at tokyo as the location for the International Offering the company had originally been leaning towards london or hong kong but due to Political Uncertainty in the region. Had then decided to move towards the japans market the company is now looking to raise as much as 100000000000. 00 combined between the 2 offerings with as much as 50000000000. 00 in the saudi listing alone earlier this month a rand paul rekindled the prospect of the i. P. O. Apple had been off indefinitely. And now joining us to give his his latest views on the state of the Macro Economy is steve keen author of can we avoid another financial crisis and one of the best professors is our canonic sandpapery and steve welcome. Now investors have been rotating out of the equities market in the month of august selling almost 70000000000. 00 of Stock Investments and rotating into the fixed income market year to date the u. S. Bond index is up more than 9 percent is the equities dominance over or are we seeing a shift back to credit fixed income and high yield trading and what would that shift mean. Well i think what were actually saying is that the fed of course. Whole name went on. The some length of time that meant that the support it was given to the stock market was removed and that the 1st sign of that was the stock market crash back at the end of last year. Just to federers a lot of big is finally convinced its finally and on the side of on a side in the back for one is that it is easy i think the unsung market is those. Until they were at the end of last. I always hold on is that it easing back with the devil once you started doing it you couldnt you couldnt decide to pull out of it all out of it. Back into it again this is all i think. About is that with the stock markets or understate it is being removed thats why the beginning back into bonds. If it will go back into court its. A must mall i think reverse the stock market is full but the long term trends on process is still over ross because theres nothing stopping interest right struggling to 0 in the well were in which is the post. The financial process world where Credit Demand is low with multiple is dropping of on process. So now that we have argued that in very young damages the economy and we have accumulated enough damage that the economy will think to have recession so the current net doesnt necessarily predict a recession because if it so what is not known right now is how much damage the economy can withstand so right now the federal funds rate is at the highest Interest Rate in the entire developed world so why have the fed right now not pricing in an aggressive stance when it seems like there are already behind the curve. And all that thats always been behind her because i mean the simple way that our summer was a policy that drops and said is the basic mathematics on the line the models the use of the economy which all dynamics generally growly broom sassafras she said it was out there can be some rawsons for a numbers model sell the the base rate of inflation should send the right of us the economy should be 3 percent on the right interest a child should be 4 soon and those models from clearly in all the role of credit in the economy in private then the economy they believe the Credit Exchange is standing out through money visual im not increase the ad spend it out on me because they roam in places like the bank of england or the books actually realize that already when they put up Interest Rates which is what that meant doing for the last 2 years that reduces peoples demands a credit ultimately were juices credit goes to men forces the economy to go back and. So one of the reasons why the Interest Rate the provide the. Interest rate isnt good right now is the feds think pushing out the short believing that the economy is facing an inflationary surge. That inflationary surge. Depends upon of factors that are actually real in the economy inflation would come out of the inverse Credit Demand thats actually been declining so theres going to go back and reverse again the Interest Rate changes to a city already i dont really think this is actually normal inverted interest right i think its been driven. The short end of the lower end not responding because along in this. Is a left out of the reserves model so i can see this going back to all of it being forced to change direction by reality but i dont really see a serious recession. And steve we just heard about argentina seeking to restructure a large portion of its debt the peso is sliding despite the central bank intervening in Foreign Exchange markets it seems their efforts have not really had an effect so what could happen when if and when latin americas 3rd largest economy goes into a deeper crisis theyre already struggling to pay back their i. M. F. Loan that was supposed to stabilize their teetering economy are we heading for a repeat play perhaps of 2003 if and when mr fernandez wins the president ial election. I mean i think we are i mean the whole problem for us today really is that its been running a challenge to try this almost indefinitely its in its own doing so youre looking at about 20000000000 dollars gap between its exports and its imports therefore has to borrow american dollars to be able to finance its needs it proper use american dollars and so also drowns out across again and that is an inevitable never developed. Structure. Ambassadorial stock many many years ago when his debt was 45000000000. 00 u. S. Dollars he said he was sure but the wealthy and dana doing that was at least you know the citys bank called. The gazan tinners a classic case of an economy that was never developed. And whose class is often as much money as it and the cities it will continue falling into this trap every. Month that ali thank you so much for joining us steve hanke author of can we have light another financial crisis. The ongoing trade war between us and china is starting to take a toll on chinas Manufacturing Sector google is planning to move production of their pick for smartphones and google home devices from china to vietnam as they attempt to reduce costs in the supply chain meanwhile india is making a play to rule manufacturers on their choice to capitalizing on the trade dispute foxconn who produces electronics for a number of Companies Including apple already has 2 factories in india and plans to open 2 more in the near future Prime Minister modi has made an effort to bring production to india having launched the made in India Program 4 years ago in order to incentivize businesses to move over so while companies are pulling out of china beijing is warning that this is shortsighted this harkens back to 989 when companies pulled out during the tam massacre those companies that left and they had trouble getting back in not just from the government but from the people who believe that trust and loyalty must transcend so while these companies try to mitigate tabs they must think of long term implications if they choose to abandon china now. And your next visit to the zoo may be a little less jumbo after ruling the convention on International Trade internationals endangered species or sites the measure which was approved by the European Union mandates that zoos in the u. S. China and others outside of the Natural Environment of the elements elephants will no longer be able to import animals to other continents the move stopped short however will be some was only exceptions that the you you was cross border transit of the elephants the measure cleared the committee overwhelmingly by a vote of 87. 00 in favor with only 29. 00 nations including the United States voting in opposition. That is that is fascinating i mean elephants you know. Back home we always had that elephant who was clearly trapped in there and losing its mind and just did one repetitive motion time after time its good to be in more better climatic conditions we also need bigger pens. They should i was shocked to a great white cat live in captivity that there by this time you can catch boom bust on direct t. V. Channel 321 dish network out to 80 or 7. 47 on her t. V. The free t. V. App helped to 79 or as always when its up at youtube dot com slash will most are to see an extra. Post g 7 what is the lay of the land calls for unity to demonstrate the opposite also iran is again in the spotlight just what is trumps Foreign Policy in this volatile. C global insurrection goes back or occupation we started that. Before occupy wall street before the revolution in cairo before obviously this relation all in france or the protests and theyre all connected all these protests are connected theyre all connected to a rebellion against free up money and banks are all global and treasury and banker occupation. Officer. Had to get up off the ground began to. Hurt them freeze on the sounds of kind of maybe the grown man with misleading essentially. Through his. Wish to do away from the officer. Of his group. The obvious or did they kind of lunge for the web in one smiths and then when it happened on trace one as i didnt hit him i never saw any contact with. Any kind of went back to where they were so the answers back here theyre try again 15 feet apart at this point and thats when the officer pulled out his gun and he returned 3. U. S. President ial hopeful to seek out bad fails to make it through to the next round of the democratic debates despite becoming the most searched candidate online questioning the d. N. C. Selection process also to come on our say a frenchman who fail after losing his battle to protect people in his village or the harmful pesticides we get reaction from locals i think the government isnt doing its job and theyre the 1st to see that there should be no pesticides but they do nothing with the in the class sites we did during taslima out of the best besides we found was alarmingly high. From the keys as to us Media Outlets have spread