Transcripts For RT Boom Bust 20240713

A state of emergency was declared in chile a. T. M. Walk down leaving many banking users without access to withdraw their funds the demand for of acorn and she there has skyrocketed this year as a result of these ongoing tensions unrest in argentina sparked when its currency collapsed earlier this year by 38. 3 percent civil unrest in lebanon also sparked krypto enthusiasm as a conflict led all banks in the country to shut down the lebanese are facing this huge crisis right now given that over 65 percent of them rely on banks massive protests in venezuela took place earlier this year where tens of thousands took to the streets in dueling protests in support in opposition of the standing government under president nicolas mother would go on as well and have turned to rely heavily on bit coin some are using it to pay for medical costs or even food beating gold in the hyper inflated economy and several reports revealed Venezuela Central Bank is allegedly looking to stockpile of. Idea of crypto currency is like big coin within its internal reserves state operated gas company but there have been a swell hour by the us that has asked to send big coin and a theory of payments to wangle cent that i live in as well as our base evolved to pay for oil and gas operations with us inc sions on some of these countries like venezuela iraq and iran tear on is allowing for big queen mining but with some regulations head of the Economic Commission of the Iranian Parliament house or at the said we do believe that the cryptocurrency industry should be recognized as an official industry in iran to let the country take advantage of its tax and custom revenues. For more on the crypto and its stance around the world we bring in boom bust host christiane whos joining us from los angeles and editor tauriel director of the American Institute for Economic Research Geoffrey Tucker in new york welcome both of you thank you so much for joining us today. Good to be here now jeff are you looking at all of these global protests is this the new norm what it when countries who are facing political unrest will turn to cryptocurrency. Where you know we have to remember that crypto was born in this exactly this kind of unrest it was 2008 when the white papers were these 2009 january 2009 when the big point was released to the world theres a lot of incredulity of the time but smart people got in on it and you know 5 years later started looking pretty awesome now here is loving years later later and yes it is now a safe haven for the world and you need you need that you know weve needed it for a 100 years ever since the governments around the world took over the Banking System and put in question whether or not we really own our deposits we need some independence or of wealth and i think big calling is becoming the big question another crypto currency is also you mentioned venezuela there are many many different cryptocurrency that are being used there are now thousands of them and theyre all fungible. One with another each other its a Wonderful Technology and i personally believe Something Like a private crypto currency a global basis is good for the future of the medium of exchange and for the value around the world. You know were definitely living in Interesting Times someone once called it the age of rage because we have global unrest and global protests that are all stemming from bad to years and years of bad Monetary Policy collapsing currency and financial inequality as sarah so actually summarized earlier so this created the perfect storm 1st a huge disruptor like bitcoin to emerge as an equalizer for all the citizens who are being affected so when theres unrest when there is uncertainty people want to regain some semblance of control and crypto is the big equalizer here and something that happened really recently was malaysia last week the u. S. Told malaysia that any iranian citizen cannot have a bank account you need to go out and close all the Bank Accounts well how is that fair this isnt targeted theyre not targeting any Government Entities this isnt targeting any terrorist financing ordinary citizens are now being affected whether youre a student youre a farmer youre a construction worker every Single Person every single iranian citizen living in malaysia not even living in iran is being affected and now they have no access to Capital Markets they have no access to banks how is the city how is someone living in malaysia supposed to survive if an entity such as the u. S. Can come in and strong arm the country into shutting down your bank account well like you said kristie a lot of these people are now relying heavily on these crypto currencies but could countries really ever block the use of them because theyre becoming so popular. Out of how all of the sudden. Well its going to be all around from the sea all around us and they are from sort of a problem theres absolutely no. Censorship in the network itself so if you own crypto you can pay with crypto you can own a transfer and thats one thing but if every tried to move in and out of the National Currencies thats where governments become very significant they can they can ban a 2nd taxes they can regulate its they can regulate the exchanges and i must say over the last 11 years thats become the big problem in the crypto world so its becoming its own ecosystem and and its really true that the worst governments get the more sense or use they get and the more regulatory they get the more theyre incentivizing people just to get into crypto and stay there to provide for their many needs and divide up a permanent sort of wealth and thats whats very interesting about this current dynamic between governments and the Banking System on one hand and crypto on the other is more and more people are being incentivize just to get into cripples stay there and thats facet of the 1st world you see in the countries with a lot of political instability kristie its up to say about that. Yes we actually seen this happen before in 2017 china actually banned cryptocurrency and then also around the same time india also issue regulation to start to stop because of mining as well but ever since then the regulation in india theyve been trying to bring down a new law that actually bans ownership of crypto currency that you can actually go to jail or be heavily heavily fined for even owning their currency however despite these bans by the Central Government crypto currency trading has actually accelerated in india in the past month this actually came out over the past week and now that the currency trading is actually up 13 percent for the month and so this will actually affect 5000000 indians if this were to pass so even if the Central Government is banning cut their currencies weve seen that in china that that does not work the regulation came out in 2017 and yet china has remained the undisputed leader in decline mining china is also the leader in crypto currency trading as all. 90 percent of trading activity happens around asia so even with the Central Government trying to quash down the tide of crypto currency and watching technology weve seen that as long as you have access to the internet crypto currency and blocking truly makes it a huge equalizer game for ordinary citizens and jeffrey i want to actually play off of what christy just said theyre talking about china because theyve kind of rolled back some of that now that you see the u. S. Is very restrictive on crypto currency but most recently china said its looking at implementing crypto currency on a massive scale and that would include bringing in wall way into the mix is the u. S. Falling behind on this. Its been its been going on for about 5 years so you have to slightly roll back and understand what happened when because it was invented it was dismissed for Something Like 3 or 4 years nobody took it seriously and then for the next 2 or 3 years people thought well this is a tool for geeks it doesnt really matter banks are all some of the dollars awesome theres not going to be the competition but then as time has gone on weve seen that things are getting more and more serious so the Us Government and you can see it in the debates in congress in the senate in the house and the way the regulators are talking this trying to get scared and panicked because of crypto really does become a big mainstream thing it disables Monetary Policy and it actually threatens the legacy incumbent financial powers in the u. S. So that were going to see growing fights over this in the u. S. And i think the days of laissez faire in the u. S. And terms of crypto are truly over we saw how abusive the congress was towards as october who wanted to have a very innocent idea of starting a new currency and next thing you know is treated like some sort of criminal well were already seeing growing fights like you said and even india has played instructions around whos playing restrictions on big coin but well see what happens here and continue to follow kristie i and Jeffrey Tucker thanks so much for your time. The auction for drilling rights to deep Sea Oil Fields off the coast of brazil raise well below initial projections the mega sale of the oil fields only raise 17000000000. 00 rather than the 26000000000. 00 government officials had hoped for the only block that was awarded during the auction went to Brazilian Oil form petro brass and china c n o d c a subsidiary of China National Petroleum Corp both of which only offered the minimum bid according to reuters 4 other blocks which were up to for auction received no bids this was the 2nd Brazilian Oil auction that received little interest from the worlds major major oil players now the blocks are estimated to contain as much as 15000000000 barrels of oil the oil rich patches though located but need to see if floor of the sea make it increasingly expensive for producers to drill there also requires Huge Investment for extracting the product compared to shale fields seen elsewhere. In the latest update in the u. S. China trade war the 2 countries have agreed to cancel some of the tariffs imposed during their month long trade war the Chinese Commerce Ministry Announced some progress in these trade negotiations. Well if you dont go in the past 2 weeks the leaders of the 2 sides have conducted serious and constructive discussions properly addressed in their core concerns and agreed to a strange cancellation of tariff increases depending on the progress of negotiations for referring to how much was cancelled in the 1st day it can be decided based on the content of the 1st 3 minutes. And both sides have imposed billions of dollars worth of punitive tariffs on each others exports and china has been resistant on rolling those duties back as part of any agreement earlier this week u. S. Commerce secretary will said phase one of that deal would only cover some general trade specifics such as increased sales of Agricultural Products to china bonnie olds move higher and europes share markets hit a more than 4 year high after beijing signaled that a phase one deal is indeed close a source familiar with the matter told reuters chinese negotiators want the u. S. To drop the 15 percent tariffs on about 125000000000. 00 worth of chinese goods that took effect on september 1st but no specific timeline was given in terms of when those tariffs will be removed. In time now for a quick break but hang here because when we return we have seen several fabled unicorn listings flop recently so what does that mean for the future of hyped up listings Christiane Adam Asher is standing by to look past the club and whether these uniforms truly have a point and as we go to break here are your numbers at the close. Oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh. Join me every thursday on the alex salmond show and ill be speaking to guest of the world of politics sports business im showbusiness ill see of an. Imagined 635 and you have a career and a career involves using your i phone in your computer and things like that in an office and perhaps you sort of getting to that circular t. V. You could have to stop doing all this in this kind of you lou the minutes must be frightening my world became smaller and smaller and smaller until i ended up winning it and a pox. Very strong Magnetic Field on my head in my head. Think of it like a real hard pressure my skin burned and that Wireless Access Point says continues on saying with our students in the schools. We are just continually bathing our citizens in this microwave radiation it is certainly electro small and its getting worse. In my i phone or have a 1000 times the capability of the of the computers we had on board the space for the top i mean its ridiculous that in my back pocket i have much much more capability then we had in the hood in the entire apollo program. Time of the time corporations repeat the same mantra sustainability its very important its accelerate the transition to sustainable transport sustainability stay nowhere man the more equitable and sustainable. They claim their production is complete the hamas. Because. Companies want us to feel good about products while the damage is being done far away this isnt all of this thats going to anyones i know. This is news that we didnt demand and einstein seemed on the basis of that undisclosed with who is going to. Welcome back a blockbuster takeover is in the works of copy machine makers xerox has made an offer to purchase Hewlett Packard xerox has offered h. P. 22. 00 per share in the bid do acquire the Company Sources close to the situation say the bid is for 77 percent cash and 23 percent stock h. P. Is worth roughly 29000000000. 00 and is nearly 3 times the size of xerox in regards to market cap at the end of the deal h. P. Holders will own 48 percent of the resulting company h. P. Issued a statement confirming that the reports of the talks were true saying theyre discussing a possible Business Combination and after speculation started earlier this week h. P. Stock traded on the New York Stock Exchange spiked more than 3. 00 also witnessed gains of more than 3. 00 after news of a possible acquisition. The u. S. Department of justice is charging 2 former twitter employees with spying on behalf of Saudi Arabia Court documents revealed the 2 as a u. S. Citizen. And. From saudi arabia ahmed on tiree a 3rd former twitter employee and saudi citizen is also being accused of spying the other 3 men are accused of working with head of a Saudi Charity founded by mohamed bin psalm on sacar who was working for and at the direction of b. S. The charges range from making false statements to the f. B. I. To financial fraud for consulting services. The saudi government allegedly paid the 3 men hundreds of thousands of dollars to spy in a statement the social media giant responded and said the company limits access to sensitive account information to a limited group of the trained and that it employees adding we understand the incredible risks faced by many who use twitter to share their perspectives with the world and to hold those in power accountable we have tools in place to protect their privacy and their ability to do their vital work. This week gave us a check up on 2 of the biggest unicorns of 2019 both ride sharing and fitness bike manufacturer peloton released earnings reports that were less than impressive and as we look at the landscape of investing coming down in the next 12 months there is a much anticipated i. P. O. Of air b. And b. And the apparent constant failures of the we work there are far more questions that we have answers and this may seem like a redundant one but are unicorns too good to be true we may not have an answer on that but we do have some folks on hand who really do joining us now to discuss we welcome back boom bust host christiane and adam mesh c. E. O. About a mesh trading welcome. Now having me now adam i want to start with you on these 2 unicorns are reported this week peloton at newburg both now trading well below their i. P. O. Price whats going on here. Around 40 percent. A little over 20 percent more concerned about over so you know you mentioned we work and well talk about where we work loses around a quarter 1000000. 00 every hour over loses half a 1000000. 00 every hour and people dont have an appetite for a company that saying they wont be profitable for 2 years they just lost a 1000000000. 00 in the quarter no ones going to stomach that so over is a big concern peloton im less concerned with theyve been aggressively marketing to grow if they wanted to they could be profitable now if they. Just stop their expansion their biggest risk will come from sol cycle whos launching a competing product and i wonder how much of the market share that will take and i did want to ask a quick follow up on the point that you made no i did see that when they when they reported their earnings now theyre saying theyre going to make a move towards and less from rapid growth and more to efficiency does that change your opinion on them at all. No because they havent shown a clear path to profitability some of the experts say yes they will be profitable we see how thats going to happen others say we dont see it you know they spend they spend more than than they make and theres already fighting to compete with alternative options so as that market grows more competitive it could be a challenge im of the camp that until youre not losing half a 1000000. 00 every hour i dont want have a stake in their company. Well kristie i want to turn the topic which is a topic to hear that weve been hearing in the Business World which has been we work consistently they could make an i. P. O. Their founder has been criticized for these crazy practices the valuation has been knocked down again and again and its now down 83 percent in just the last 3 months to 4900000000. 00 now just this week it was reported that the we were debacle called soft bank to post their 1st loss in 14 years what do we know about these failures of we work. Well its not just the failings of we work its the failings of the v. C. And the private Capital Markets because theyre the ones who are actually fueling this entire boom of unicorns unicorns you actually dont even deserve to be called that as Economic Research institute actually showed that 50 percent of unicorns nowadays are overvalued they dont deserve the valuations because they actually arent generating any profit the us you know core market topped out in 20142015 when there were 42 unicorns newly minted unicorns that year weve never seen levels since then and that pace is just completely unsustainable Silicon Valley now has this competitive mentality and this foam all rushed to bid on to like these new ideas these new disruption disrupted ideas and because theres so much capital theres so much private copple within that little bubble if they dont compete if they dont bid if they dont give companies a higher valuation they could potentially lose the deal and so the v. C. Is actually under constant pressure to constantly over perform every single year to beat expectations and make their earnings too so hence they have to fill their portfolio with winning deals and compete for these deals by offering higher valuations to companies that frankly dont deserve it i dont i want to stick with we were here a little bit despite all of their issues Real Estate Firm c. B. R. These Research Shows that the Company Least a total of 2800000 square feet in the u. S. Alone and it was the number one leaser in 9 out of 10 markets for flow. Sibel Growth Company even accounted for 69 percent coworking space leases in the 3rd quarter of just this year how how is this not working. Well we work at a valuation of 47000000000 the other coming out now saying its closer to 5000000000 it was never a profitable model to begin with. Im not trying to im just proud of this im saying as its profitable they said theres no believe in that. Theyre there power point has an hour point things up and thats their plan so hes probably going to get out of this and were going to turn around without any details just an arrow pointing out 4 months before they cancel the i. P. O. I was on here and you guys asked me about we were and i said i dont see how theyll ever go profited because the thing is this this is the most important thing they act like a tech company they spend money like theyre a tech company. Like theyre a tech company theyre not a tech company and thats the biggest thing theyre not a tech company and thats why they should have never had that valuation so i dont see how it sustainable and the arrow pointing up doesnt do anything for me. And a follow up to and a follow up to that peloton is pretty much the exact same thing theyre trying to market themselves as a Media Company because they stream these hundreds and hundreds of hours of video and theyre trying to attain the valuation of a tech company of a Media Company when really its just a very expensive stationary bike with an i pad on it. I want to look at air b. N. B. They have a much anticipated i. P. O. Coming up in 2020 and according to a report from the Financial Times the company is valued at up to 42000000000 dollars by investors who are trying to buy a stake prior to the i. P. O. Now weve seen criticism of the companys Business Model is this another one of those over valuations were talking about and do you really see an i. P. O. Ferry any differently than these other field unicorns. Well lets just look at the market cap of the Largest Hotel chain right now in the world which is marea marymount current market. Is 43000000000 and thats and you would drive to that market have based on their generated revenues air b. N. B. Is air b. N. B. As big as america do they have the same Consumer Base as america can the world sustain to marry and have consumers like feeding revenue into these 2 giant entities if not that valuation is completely overblown and theres something very wrong with that. Well thank you so much adam and christiane for that discussion on these you know koreans there i know there was a lot of hate or a that as i called it earlier today but thanks for giving us an update on that. Thank you. If youre a follower of the american football and the n. F. L. Specifically you no doubt remember the deflate gate scandal that rocked the super bowl champion new England Patriots after the 20142015 season the scandal revolving around deflated footballs was exposed in part due to Text Messages between equipment managers and Team Officials future hall of Famer Tom Brady who received a 4 game suspension following the beds would have been implicated had he not destroyed his cellphone following the season something he says is a regular practice when he gets a new phone but now according to a new report from yahoo sports coaches and players throughout the world are switching to signal an end to end encrypted messaging app to communicate with each other when using the app users can set messages to delete after being read and they can create issues throughout the sports world imagine College Football coaches can communicate with recruits with no records being able to be polled basketball stars can talk with each other to discuss building a super team before anyone is on the open market and its even possible that Team Personnel can discuss the air pressure of footballs prior to important playoff games at the end of the day no one will be able to request the messages because theyre gone but dont worry according to the New York Times the n. B. A. Is already trying to get a hold of this sending a memo to teams requiring them to keep records of all contract or collated communications for at least one year but is that enough its hard to say right now but we can only assume that other leagues will follow suit in the future and actually start to create these types of rules lesson for the team isnt about whats have whatsapp already does it deletes here your text doesnt have any it does but i think signal actually ended up getting a little bit more publicity because it was the one that. I believe Edward Snowden said at one point was that if youre in any community because the n. S. A. Was using it thats how you should do it is signal i think people are a little concerned with whats out because its owned by facebook so theyre not fully trusted like they do signal absolutely well thats it for here today and tell the time we have you can catch boom bust on direct t. V. Channel 321 dish Network Channel 284 streaming 247 on pluto t. V. The free t. V. At channel 279 or as always had us up at you tube dot com slash boom bust r. T. See you next time. Thousands of american men and women choose to serve in the countrys military and the decision lives every song came to a complete. The day that i was afraid to be instructed you know told to shut up or theyd kill me and i see how it destroyed my life many screamed at me and he made me come in and you graham my arm and he write me with his birthing area if you take into account that women dont report because of the extreme retaliation and its probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing thing tat happen but ive never seen trauma like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished dont be offended i had an almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of tower and violence male sexual predators for the large part of target whoever is there to prey upon whether thats a man or woman. Today there are good dentists and bad at it its the bad news in the end in the United States against a real threat the looked at it is so those were in syria the cia and the us military were engaged in covert actions really throughout the world. Where they were assassinating populist leaders they were backing up right away military windows funding an army of death squads theres no. More because theres always a small. Or a really good thats. A profit. Its seemed wrong why dont we all just dont hold. Any. Yet to shape our. Culture. And in. Betrayal. When so many find themselves worlds apart. To look for common ground. I. Thank. The 1st American Family brutally slaughtered in mexico by a drug cartel as its revealed that. Originating from the United States. Fueling violence. As a. Terminal decline in europe should no longer rely on the u. S. To come to its defense. A show of unity a survey of south korea that suggests that they would roll the support. In the event of a war with japan