Transcripts For RT Boom Bust 20240713

And the Company Announced last week that it would spend production of the aircraft moving forward on the news the leadership of the leadership shuffle boeing stock rose by 3 percent today and it has been a tough year though overall for the aircraft giant losing nearly 20 percent of their stock price since the grounding now joining us now to discuss what this all means we are joined by jamie finch former National Transportation safety board official now jamie its great to have you here today but why now and what is this going to do to this whole 737. 00 max saga why do we get rid of today well it had happened and we predicted on several times already the need for him to go which is going to be inevitable this was not just important but it was essential for boeing to get past this this very dark period in his history in his 103 year history this is the biggest crisis they refused and so by removing him from position he begins that entire process. And so forth but its going to be a wrong long haul for them and now it seems like its been a year since the crash of lie and air flight 610. 00 in october of 2018 and it seems like regulators and boeing just cant clean this up so is there something that can be done or are they on the right track right now to kind of fix this issue maybe even get that 737 max back in the skies very interesting i think the f. A. A. Dorie started addressing their own internal problems that theyd have as far as the regulator side as we reported before and we talked about the f. A. A. Had done its own analysis a year ago in november 28th seen and realized that this plane was supposed to crash possibly 15 times within its lifecycle of the entire aircraft and so they they had done their own analysis but they did not. Pull the plane off of the ground and so f. A. A. Has taken taken issues and make it to address issues boeing on the other hand was more circling the wagons they werent really working with or they seemed a little bit insincere in their apologies they seemed insincere in their earnest and earnest efforts in working with the f. A. A. To resolve this problem or theyve been slow in dragging their feet theyve been analysing these these found tom you know it was about to go back up in the air we sort of 5 months which were finally put to a halt just a few a couple weeks ago when the f. A. A. Administrator met with the c. E. O. Now former c. E. O. Of boeing and told him to cut it out and stop it now because this i mean weve seen this and this is like i said has been more than a year long saga of boeing 737. 00 max issues but you know i mean sure theyve taken a hit on their stock price but theyre still the biggest player in the game when it comes to air space obviously theyre competing with air bus but when you talk about the fact that they were i mean not to say they didnt take it seriously because im sure they took it seriously but they felt that they could. Just beat it by talking over it is that was that the rug i mean thats over all the wrong way and do we expect a change in their in their approach from now on think that will we saw an immediate term about or right after that meeting with the f. A. A. Administrator. Just a few days after that was when boeing announced that they were halting production on the 737. 00 max series and so they put that in halt now they hold and theyve theyve said that theyre going to move those 12000. 00 employees that were working on the 737. 00 max within the company and have them working on the job so they wont be doing the layoffs or firings but theres only so long that boeing can carry that and it seems like theyre just probably holding off quickly to just try until they could start making the 737 max you know and the fleet and thats what theyre hoping to do because it will take them much longer to ramp up if they get rid of these everybody lay everybody off its going to take a much longer to bring people back in its over because people are going go out there go find other jobs and Everything Else and theyre going to go on with their lives and so it would it would be an even slower delay in the in boeing getting this back into production if they did for all of these people absolutely jamie finch former n. T. S. B. Official thank you so much for joining us today on this this very newsy day for boeing thank you thank you. And china will cut import tariffs on a host of goods beginning the 1st of january as the nation attempts to hammer out a phase one trade deal with the United States now its important to note that china will be lowering tariffs for all trading partners on 859. 00 types of products ranging from frozen pork to high tech components according to a statement from Chinas Finance Ministry on monday the new rates will be below what most favored trading partners have today china will also lower the import levies on more than 8000 products for countries and territories that have free trade agreements with them according clued in the likes of australia iceland and south korea now meanwhile on saturday u. S. President donald trump was positive about the state of trade talks with china while speaking at a turning points usa event he had this to say. We also took the toughest ever actually against china and as a result i i. Gave breakthrough on the trade deal and well be signing it very shortly theyre already buying digital video of dollars of products agricultural product theres a lot to go over here and we have the pleasure to be joined by Richard Perle fessor Richard Wolfe professor of economics and host of economic update is coming to us from new york richard thank you so much for joining us today and i want to get right to it now we know youre no mind reader here but what do you make of President Trumps comment that we have reached a breakthrough and they will be citing a deal very shortly now we know he likes to say things but is this just more bluster from the u. S. President in hopes of pumping up markets or do we do you actually think theres a deal in the offing here. I think its a little bit of both i think what has happened is that mr trump has discovered 2 important things after 2 years of china bashing number one you can impose tariffs the chinese will come right back with their own and in the end it will cost you politically particularly with farmers who lost markets in china that they rely on hes learned mr trump that is that its going to cost him politically to keep playing this game number one number 2 hes discovered that if he thought that any of this could shake or change the way the chinese economy and society work hes been taught a lesson that he doesnt have the power if he ever did or nor has the United States to do that anymore so the real question is are you going to continue having a confrontational relationship costing you politically and not achieving its goals or are you going to do as the chinese have said over and over and come to some sort of Partnership Work things out as competing countries can do if they both want to i think youre seeing the shift from the confrontational theatrical bluster to the much more realistic recognition of what isnt is not possible. And now i want to shift gears to china on this note because theyre working to lower import tariffs for all trading partners whats the point of what theyre doing here is a kind of to your point which is that they will come to the table and make a deal not say hey you know we want to make a deal with the u. S. But were going to make really broad sweeping changes for everybody so we can be the strongest trade partner in the world. Its exactly your last point that the chinese are confident theyve been growing quickly they have a bigger footprint in the World Economy than they ever had and that anyone imagine they have they want to trade with the rest of the world they need the goods from the rest of the world to come in for their own People Consumer goods capital goods yeah they didnt want any of this this was all the initiative this tit for tat tariff from the United States and particularly from mr trump and the republicans theyre happy to see a goal and theyre demonstrating to the rest of the world we are not protectionist we are in favor of free trade i mean they have come out of this confrontation with mr trump extraordinarily more powerful and more respected in the world to be an honest appraisal of the United States as policy in the last 2 or 3 years would say other than getting the applause from your Political Base nothing good came out of any of this lots of harm was done you ought to change when you have that kind of a balance well i dont want to i dont disagree too much because i respect you greatly but when nothing good came out of this in the u. S. I will say this markets have had incredible gains this year and the s. And p. 500 has jumped nearly 30 percent this year alone now these are the biggest gains weve seen since 1980 and we cant forget that we are also very concerned about the possibility of a global recession whats propping up these markets right now if its not all this Straight Talk from trump. Well i think the bait the basic thing is the tax cut if you want to give mr trump some credit give him credit with the republicans for this dramatic tax cut on corporations and the richest folks amongst us in december of 2007 t. It meant that last year 2018 and this year you have given to the richest folks in this country on enormous boost which they used to go into the stock market to produce the very record that youre talking about they did not take their tax savings and increase production what they did do is move it into the stock market which for people who have stocks is of course very good nudes the real question is what will the longer term results be when your basic economy is bumbling along not so well but the stock market is achieved records weve not seen that this way before and the big question is where will that take us i mean it seems like people i mean to your point and this is quickly you could agree or disagree but it seems like like you say is that everybody is just trying to squeeze as much out of the market as they can right now and then when it starts to fall theyll get out right away and then schmucks with a 4 a one k. Theyre the ones who are going to lose. Absolutely weve seen this before this is like the bubble leading up to the dot com break in 2000 again the real estate and all interest bubble leading up to the collapse in 2008 we have more debt than weve ever seen before and this is a scary time and before you count your chickens lets see where the next 12 months takes us because the side of danger is very much in play professor Richard Wolfe thank you so much for joining us host of the economic update always appreciate it thank you. Russian foreign minister Sergei Lavrov said sunday that a pipeline said to transport natural gas between russia and germany will continue as planned despite sanctions from the United States after upset the north stream to pipeline quote it will come true anyway despite all these threats and quote adding i am confident that europeans understand their commercial interests 2nd their interests in terms of ensuring Long Term Energy security 3rd of course they have been humiliated now President Trump signed a defense bill on friday that included the sanctions against Companies Involved in constructing the 11000000000. 00 project and meanwhile in germany has been critical of the same sions as they attempt to move away from their reliance on coal and Nuclear Power German Foreign minister heiko mosse weighed in on the situation on friday saying this. Were in discussion with american colleagues at all levels and i am under no illusion that it will still be going to. Be a question of how they are now being the time sequence it will also play a. Time now for a quick break but hang here because when we return stock is popping after the recent news that the u. S. Government will back the company and its by Party Correspondent joins the show from toronto to help us take a look at the big picture of this and as we go to break here the numbers at the close. This is a state of water bottle found in the stomach of the fish the brand is part of the Cocacola Company which sells millions of bottles of soda every day the idea was that lets tell consumers theyre the bad ones theyre the litter bugs are throwing this away industry should be blamed for all of this waste the company has long promised to reuse the plastic. On. The mountains of waste only grow higher. Same hammer i can use to snare someones head is the same hammer i can use to build them a home but thats ok. Human choosing what to do with thats me expressing my values for the tool and thats what we need to do with Artificial Intelligence as well. And bearer had a good day on the stock market as shares shot up. Today this after the Us Government recommended a reversal to a Court Verdict against the companys weed killer joining us now to go to war we are joined by arties alex mann heil a bitch from toronto alex thank you so much for joining us now bear has shown its best performance on the market in 14 months corteen what can you tell us about that. That we see 3. 5 percent pop up in their stock with wall street as well as a rise on the Frankfurt Exchange and were sitting around 74 year olds which is the book 82. 00 just over 6 to be exact and so you can see that in stocks going up by you might ask yourself why well its because the e. P. A. And the Justice Department both the u. S. Government agencies want a Justice Department so from a little Lower Department 81. 00 of the verdict overturned so basically what happened and im sure that you remember this case a california man was awarded 25000000000. 00 because he sued bear or monsanto at the time monsanto is the company that bear bought and they are the company that sells roundup which is made of glyphosate thats the chemical thats a herbicide that many are blaming on cancer he says he got cancer from it so he was awarded 25000000. 00 well now the government saying they recommend that this is over turned round up but what were talking about this is use the United States especially its the biggest herbicide in the u. S. And its also life is a is found all around the world. According to a university of washington study using right up org life is that i should say itself can increase the rates of cancer by 41 percent the World Health Organization has identified life in state as a probable as well now come to the other side here when we talk about the e. P. A. And Justice Party will they say now its not necessarily like that the u. S. Government said in a friend of the court brief that glyphosate is not a personage and thats the stance that the. The Justice Department is taking now buyer who bought monsanto the maker of roundup itself of course they deny these accusations that the product has any association with cancer the product which was introduced in 1974 has made billions for the company and as for months we know that theyve had a very cozy relationship with the u. S. Government so at looks like that relationship might be paying off at this point and alex what does this mean for bear and its use of the active ingredient. Well life in st itself look there this is not the only case out there so we dont know whats going to happen here with this recommendation but theres literally billions of dollars in lawsuits against bear and monsanto the underling a bear in the u. S. Alone so as you can imagine this can still blow up in their faces and that said you know even with this u. S. Do recommendation traders seem to be focused on the profit but look life of sadism everything for beer to wine to eggs to breast milk theyve even found it in children so its everywhere you know it and it just comes down to what the u. S. Governments going to say now its science right what signs are they going to pick and which direction theyre going to move if theyre going to defend bear well we might see a lot of this of this recommendation might turn into a reality correspondent alex mohai live its thank you so much for actually reporting today. Thank you. And i kind of originated the last time we had the Global Financial crisis so its actually really interesting that now were kind of in this middle ground where we could potentially be on the brink of another recession and now we see the rise of as a hedge again thats precisely it and i think thats an important aspect of this because you can really test i think of your world view by its ability to predict the future right so you have an idea and then if years later that idea is actually manifested in reality you are world view is probably correct so a lot of people have been talking about this exact scenario since 2010201120 extension 12 here we are going to be even more interesting because the komodo essentially predicted this outcome he said the those levers of Macro Economic control that central banks. Weakening gone almost i continue to believe that the japanese pseudonym used to have the kind of authority to say to america and everywhere else that what japan has been living with with the negative yielding Interest Rates and all that stuff in large debts was actually going to be the experience for everyone in the world so the last decade of japan in the ninetys has become the common experience of all these other large trading nations so you mentioned that your previous background before you got into have to you were actually in the legal space and you were studying the effects of the last financial crisis and. So give us your perspective on that and like where do you see. Well thats just it i mean when we when we studied that we saw lets say ability to. Determine the outcome for our a great many people from the top down important policy decisions were made and it really shift this way back to when the Federal Reserve started in 20 in 1012 the context then was is this an appropriate powered for governments to have anyway because of course before that we were all in the private issuance of money so. Individual states would release their own currencies companies and banks would release their own currencies there were reasons why this was no good there were reasons back then and there was a huge fight about whether the United States creates its own you know sovereign issuance of money so where we are at now is kind of the you know going back to what it was like the monopoly of sovereign issuance of money is clearly over private issuance of money is here again now we are experiencing the troubles of profit if you issuance of money a lot of volatility but thats kind of normal for right now i dont think anyone really dislikes the volatility of bitcoin its quite funny so you know were still not on the main stage of the Global Financial discussion but were in the wings or in the way its interesting because history always repeats itself and now we are seeing that money is becoming more privatized again however the problem is that the u. S. Dollar while its not really backed by its backed by military might well youre right so how well private issuance and lets not just military might i mean when they when they took over this sort of global reserve currency aspect they were important considerations you know there was a sort of run on the us gold reserves people were asking for their gold back in the early 1970 s. And so nixon you know flip the switch and we grew into the world were in today of course america its not just the guns in the military i mean they created a network around the world where everyone could trade you know the all trade routes were secure and that came at a great cost right it was really just so that everyone could live well and so this was paid. So you know the u. S. Dollar was able to exist in this because everyone kept their Balance Sheet it was the reference of the entire economy is that appropriate i dont know i dont think so but lets take our time now and you know i dont imagine the u. S. Dollar is going anywhere. Purpose it is by far the most important currency in the world today but you know there is an aspect of you know you cant just assume that continues forever things could change quite quickly but right now it remains the best place to do business thats for sure but take a look at china you know there are on the most famous deal on earth right the hong kong deal is the most famous deal on earth and theyre just going to say no people dont want to deal with that country you know that the origins of new york city for example New Amsterdam in the beginning was really you know if you have money we can deal with you that was unique in the world at the time everyone still had religious prejudices and protestant and catholic and new york was different from the start new york was you want to come into business were great and thats really where the American Business mindset grew from and i think that you know should continue to perpetuate around the world it should continue but as we were just saying previously they were pretty much at the forefront of business and finance and this new way of doing things however now they seem to be almost clamping down a little bit were just saying how stupid the bit license was in new york and what do you have an idea it is correct so it looks like theyre actually taking a step back yeah i dont know but step back i think they havent learned a little bit like when you when you have the sort of top down approach that i was mentioning one when the bailout happened they were making decisions for all kinds of people right they were they were they were determining basically real estate prices 10 years out right you know the the cantillon effect its called right for the continue effect so were definitely living the cantillon effect because of the compelling effect basically being if you issue all this cheap money a large portion the population the burra we just assume that consumption because everyones so you know building houses all the construction workers are now more money to consume but now we are in the sort of 2nd stage of that where you feel the pain of the and everything has been artificially low everything and i dont understand why do you need us need to continue stimulus to continue to increase consumption and. I love that given this backdrop in the u. S. As well as so as a continuous regulations that dont seem to make much sense do you see the u. S. Continuing its dominance in terms of the world i dont know if it ever is a National Consideration i dont believe National Considerations are an important aspect of the development of cryptocurrency so i think American People will continue to be heavily involved in it but certainly new york is missing an opportunity all that said i do live in new york and a lot of the greatest talent in the industry is there i know several of my american colleagues do believe new york is a backwater for crypto i disagree on that i do wish we had a much more welcoming environment and maybe theyll learn a hard lesson there but for now new york does remain intellectually and Human Capital wise an important place no one is a plan to take care of me as i have to especially given the global macro backdrop here pleasure thank you for making time. For this time you can catch boom bust on direct t. V. Channel 321 dish Network Channel 280 or streaming 247 on pluto t. V. The free t. V. s jail to 79 or as always you can hit us up at youtube dot com slash. See you next time. You are there. And. My name is drew more than i was for this to die in prison by the expiration of my life. Case to grab some Media Attention and its a shooting in a 16 year olds 16 birthday parties. So i think the police just a lot of pressure choose. Close the case. For me as ive just done its like i couldnt believe those. You know testified that truong was in the chute in one piece with the stench of all of his shoes because i was standing right next to. Me for is the son you got to keep in mind he wanted you know youre 1617 years old so. Blue monday night is plundering to spear. Proof. For more than just closed door got to go now to truth. Im going to fulfill the repeated promises ok all of it to the people i promise to be you know its all bots to. Be a. Pretty. Much. Pretty good. Now you want to 1st crack that. No. No. Ball. Coming coming coming. Through as the night before christmas and all over the world people are mining back on seeking individual sovereignty to napalm i just wrote anything. Ah. Ah. A mockery of justice if you want to fish will slam saudi arabia over the handling of the Jamal Khashoggi Murder Investigation while the u. S. Backtracked on promises to sanction the country over the killing. Also this our concerns over security Climate Change and Political Correctness put a damper on christmas cheer in the west. And a brazilian comedy on Netflix Christians there over the depiction of a gay jesus we get reaction. Making a joke out of a really sacred holiday for many catholics and many christians around the world if you dont like something have we not learned dont watch it