Transcripts For RT Boom Bust 20240713

19 and factions continue to surge globally the number of cases exceeds 490000 thats nearly doubling in just one week now the death toll at more than 22000 the pneumonia causing virus has been rapidly increasing across europe and the United States cuba is the latest country to join a 20 percent of the global population thats already on lockdown of the World Health Organization concerned now more than ever on the number of Health Care Workers being infected. Of a little ports we also know that one old infections. And many more d. Of. Those services. All of us as of yesterday its a little board at 6200 in fact that it will cause. Most. Individuals as best as we can so in the last 24 hours spain saw a small decline in faith teletubbies where 655. 00 people passed the Spanish Health Ministry Said the total death toll rose to nearly 4100 while the number of confirmed cases climbed in one day from 47610 to more than 56000 of the Spanish Parliament extended its state of emergency through at least april 11th iran has been another country significantly impacted by the coronavirus a total death toll of more than 2200. 00 and nearly 30000. 00 infections the country started an intercity travel ban and while many are ignoring the governments call for people to avoid Public Places authorities are warning people to stay home otherwise they will face legal consequences and saudi arabia instituted a nationwide curfew just this week state media reported the curfew would last from 7 pm to 6 am and its set to last for 21 days its neighbor the United Arab Emirates halted passenger and transit flights from entering or even leaving the country for at least the next 2 weeks cargo however is still permitted while india plans to spend 22500000000. 00 to help the poor in a country with more than 1300000000. 00 people and now india has reported 716. 00 cases with 14 deaths but they implemented a nationwide lockdown for 3 weeks Prime Minister Narendra Modi is acting pretty quickly before the highly populated country gets much worse well the United States now the 3rd leading country with the number of confirmed cases just behind china and italy the u. S. Talk to more than 69000 total and factions with a death toll now of more than 1000 and more than 200000 were reported on wednesday and this was a. New high for the u. S. And just a single day Health Officials say the worst is still yet to come the koven 1000 has led to a record 3300000 americans who have now filed for unemployment which is a huge jump from last weeks 281000 this while the u. S. Senate finally passed the nearly 2 trillion dollar relief package and is now on its way to house or to the house for a vote on friday meanwhile director for the u. S. National institute of allergy and Infectious Diseases dr anthony thought she said that we need to be prepared for the virus to come back but were starting to see now in the Southern Hemisphere in Southern Africa and in the Southern Hemisphere countries is that were having cases that are appearing as they go into their winter season and if in fact they have a substantial outbreak it will be there that we need to be prepared that well get a cycle around the 2nd time it totally emphasizes the need to do what were doing in developing a vaccine testing it quickly and trying to get it ready so that well have a vaccine available for that next cycle well far more numbers an information on the coronavirus be sure to check out our portable t. V. Up and look for the section tracking coronavirus and for more on what this means for the Global Economy we are joined by bus cohost chrystia kristie. Well even as the market continues its been down today jumping over 6 percent in the s. N. P. Fed cared around palace said that the United States quote may well be in a recession but that the fed will take every action to support the economy when it reopens policy spoke just before unemployment data was announced and as you mentioned sara it showed a spike in claims to 3280000 as business slowed to standstill in recent weeks so for reference a little artist number of new complain of benefits ever recorded in a single week prior to this year was only 695000 back in 1902 todays jobless claims number is almost double that of expectations of 1700000. 00 increase with the service of being hit the hardest now despite the data markets surge for a 3rd day straight bring the dow up about 20 percent as optimism rises on the hope that the historic stimulus bill will pass by voice vote friday morning and people will start getting their relief checks in as early as in 3 weeks utilities and energy is where the best performing sectors thursday as energy was hit the hardest and oversold while utilities is traditionally considered one of the more defensive sectors indicating that the wild swings and volatility is not over and as analysts are upgrading stocks on the rebound the ratings agencies have learned from their mistakes back in 08 and they are determined not to make the same ones again and as such moodys and s. And p. Took a hammer to credit and are slashing corporate ratings at the fastest pace on record short has now become the biggest fallen angel as the s. And p. Downgrade it to junk overnight the biggest downgrade so far all come from Energy Sector leaving at 85000000000 dollars autos a 1000000000. 00 followed by aerospace and defense at 33000000000. 00 now over in europe lawmakers are expected to approve over 40000000000. 00 in emergency funds to cushion the economic fallout this is the 1st ever remote boat as members practice isolation and social distancing that u. C. B. Has also given itself unprecedented levels of authority in its plan to buy back some. 150000000000 euros in additional bonds this now essentially means that almost all the constraints and limits and restrictions that apply to previous asset purchase programs have been completely removed as Christine Lagarde announced quote there are no limits to our commitment to the euro so even as we are now in a reef period of calm optimism in the equity markets the 1st time in about 3 weeks there is still too much uncertainty in the air and too soon to declare a lasting bottom extraordinary Central Bank Measures along with historic fiscal efforts have worked to stem the purge but now comes the really hard part the implementation and the execution they have learned from 08 that ensuring cash and liquidity to the economy to mitigate the widespread unemployment and curve insolvencies can make the difference between a short contraction versus a prolonged recession and as most companies are now facing cuts with an uncertain timeline for reopening they do not have the luxury of time and they are in dire straits as the stimulus bill makes its way to approval timing is everything now in order to prevent a long term erosion to the market to confidence and the over all that they will market well kristie the g 20 leaders are holding an emergency call a virtual call that is to discuss the handling of this pandemic now the u. S. And china have been playing the blame game of sorts on each other of about who started the virus they say theyre prepared to set aside these differences for now will they be able to do so and what can we expect. Well yeah after this it comes after a yearlong trade war and now months of big ring playing the blame game so now theyre going to try to put those issues behind them and focus on the best past moving forward so well see if both sides both cooler heads will prevail and president from now has to basically assert American Leadership and dominant as america has typically been viewed as the leading International Body however as of late america has faced pretty heavy criticism by the International Body i think the game is wasted in partisan bickering in washington on matters completely unrelated to the coronavirus nor to pass a stimulus package so right now go perception is not that great one its really important that they stick together and that all International Bodies Work Together given the right now the United States is a 3rd world leader leading our country with the worst case of the coronavirus boom bust cohost christiane thank you so much. Thank you. On thursday or Oil Prices Fell after seeing gains for 3 sessions as demands for a fuel fell on travel restrictions well demand is lower but output is rising so to help dive deeper into oil and the overall economy we turn to chairman of sprouts u. S. Holdings rick rule. Thank you so much for being with us today i know the oil has been pretty volatile too and in the recent months ever since the opec meeting earlier this month but i do want to start by asking you the department of energy was planning to buy about 3000000000. 00 of oil for the Nations Strategic Petroleum reserves however the funding for that was actually left out of this 2 trillion dollars stimulus package what effect might this have on companies in the oil patch. I dont see that theres much that can be done in the near term for companies to do well. Through the u. S. Strategic Petroleum Reserve as policy probably doesnt do much for the industry although the idea that they might buy something when it was cheap. Is not in and of itself a bad idea its interesting that the 2000000000. Got 302 trillion dollar stimulus was basically at a Christmas Tree and had its spending proposals in it for everybody to see much less that much more about politics i suspect that it is about the economy well it definitely had a several sectors but interesting enough it did not have it on this this oil and energy being hit the hardest especially but saudi arabia. Their Oil Price War with russia that started earlier this month after the opec meeting a us secretary of state mike pompei oh hes hoping to end in pressuring the saudi arabia to change its course over producing more oil like it said it would after their initial deal that would end by the end of march and that they would start producing more of this oil by april especially at a time when demand is already plummeting do you see the saudis budging on this or even russia rather. I dont think that theyll be financially able to continue to fight for very long markets are messy but the truth is that the cure for low prices is low prices well this is difficult for producers its a huge benefit for consumers low prices like this could straight sustaining Capital Investments which take your production themselves over time the truth is that with the increase in u. S. Production we have systemic oversupply in the World Markets because u. S. Depletion rates are very very very high a short period situation and ruling begins to take care of the supply over problem my other concern i dont know if its a concern but my suspicion is that neither the so the saudis nor the russians will be able to continue the price war for too long a time or i might be come to just that especially given that they too are having more cases at least at russia starting to appear some cases from the coronavirus a Global Markets are suffering from this but i am speaking of commodities i want to turn to gold which is a huge one right now its an increase of stanch only in the 2nd half of this past month and march almost reaching its all time highs how much of this price action is actually related to increasing National Debt and the confidence that we have in the economy where my cold had to in the future especially were hearing that it could be a threatening a shortage now. Wonderful question you look at the gold price was increasing even before the coronavirus gold prices traditionally have been increased during periods of time when savers were concerned about the maintenance of purchasing power in their own currency the u. S. Debt and deficit as you mentioned have been can have been a concert to investors for at least 12 months and the fiscal stimulus that is almost certainly now the Public Policy response to the coronavirus will only exacerbate these trends with the u. S. 10 Year Interest Rate at affectively 0 my friend jim grant calls bonds the alternative to gold return free risk so one can expect in the circumstance that confronts us now that gold will do very very very well if past is prologue gold stocks will recover later remember the gold stocks are stocks it was not gold stocks are down too but they will respond in time well its already almost at an all time high so that goes higher and that will be interesting a new record breaking up for gold so if you havent gotten it already you might as well start looking for it before theres a shortage of the commodity. And president things thank you so much for fair time and explaining this further to us. Thank you for having me time now for a quick break but hang here because when we return well tell you how the way this relief package compares to the 2008. 100 foot boom bust cohost ben font as we go to break here the numbers out of. It we have with i dont know maybe people who are just after they called the why do they have never been told they d say oh thats why i. Was. Always told was oh yeah measures come on. All the measures was going to but no. Adult industry comes to life in los angeles every night. Dozens of women sells their bodies on the streets many of them underage. Los Angeles Police reveal a taste of their daily challenge no if youre going to exploit for a child here in los angeles they were going to come out you would see officers going undercover as 6 workers and customers to fight the 6 trade. Is youll be via reflection of reality. In a world transformed. What will make you feel safe from. The isolation pool community. Are you going the right. Way or are you being led. Direct. What is truth what is faith. In a world corrupted you need to descend. To join us in the depths. Or a made in the shallowness. Showing me every post a little excited when sure and ill be speaking to just in the world of full search. Im sure both of those ill see that. The coronavirus is having a huge impact on several sectors of the economy and that was causing a delay for a large drug maker merger thats right milan and pfizer are pushing back their plans to approve a deal to merge until june 30th this is due to the coronavirus also due to restrictions on large meetings in the netherlands with the country where milan considers their legal home in a joint statement milan and pfizer said there are no additional changes to the previously announced terms or plans regarding the transaction adding the 2 Companies Remain highly confident in the benefits of the pending transaction to their respective shareholders and other stakeholders in the merger is part of pfizers longtime plan to split the company into 3 parts innovative medicines lower margin off patent drugs facing generic competition and Consumer Health care the combination is expected to have a revenue of 19. 00 to 20000000000. 00 by the end of this year currently the priority for both companies they say is to keep its employees safe and healthy during the outbreak. The u. S. Senate passed a 2 trillion dollars stimulus package to give the struggling economy a boost this is in the wake of the coronavirus well President Trump is pushing for america to get back to work by easter thats only a few weeks from now many businesses are reluctant to open their doors or legal journalist molly barrows contributor with American Lawyer has more on what it will take to get the economy back on track molly a few weeks away is a shorter shutdown a wise move here. I would think not and i think most experts certainly agree with that unless trump has a crystal ball and know something that we dont most businesses are going to be pretty reluctant to jump ahead of this virus when these numbers continue to spread so right now many experts are saying the best thing we can do is get this virus under control thats whats going to be best for the economy because were going to pay for it one way or the other we can pay for it now with shutdowns or we can pay for it by opening too soon having the virus spread and continuing to wreak havoc on businesses as well as lives so right now theyre saying hang hunker down stay the course until this virus subsides and also hopefully they can find an immunity drug to help those people who may have it but arent necessarily showing symptoms to determine if those folks can go back to work which will help as well right and we already heard like dr fox he said earlier in the show this virus could be cyclical and come back in the fall and that were hoping by then to have some sort of vaccine or some medication to control it but what are some of the risks of opening businesses too soon. Well there are a number i mean right now youve got a lot of help for businesses when it comes to mortgage lenders landlords rent creditors theyre willing to work with businesses right now because theyre all in the same boat they may not be willing to do that if people open too soon and visitors patrons rather dont come in to patronize those businesses because people do naturally distance themselves studies have shown pandemics like this occur so they could risk losing those Business Resources also many people schools are closed they have responsibilities at home with their children or maybe caring for an elderly or sick loved one so theres too many balls up in the air right now to make it a wise choice for businesses to open according to most experts there are some of the reasons just a few right and at least governors are at least following this their own orders and seeing their cases get worse but chinas economy for example now is barely now starting to recover can the u. S. Learn anything from what theyre doing and what exactly is their plan. It does seem like they can learn something from one. Theyre doing although its still a little too soon to tell just how well this will move forward as far as chinas economy is going but they have definitely put the priority over maintaining containing rather than controlling the virus made that the priority rather than restarting businesses theyre just now starting to slowly reopen businesses in stages its been going on for the past month and theyve said theyve seen about 80 percent of the businesses that were operating before the pandemic hit start to come back online but its happening mostly in the coastal areas also among higher paid workers are lower paid workers those that are in the tighter knit communities like with the cities the more type population zones theyre not opening as quickly because theyre still controlled trying to control the virus there as well so youre going to see a lot of ripple effects from here on out its a slow recovery but again hopefully what we can learn from china is that we should put peoples lives over business for absolutely and were barely starting to see the recovery we have to remember the United States is about 3 months behind it china so theyll have to act wisely in order to save lives like you said molly barrows contributor with americas lawyer thank you so much for your insight. Thanks. One of the United States congress is moving forward with the massive 2 trillion dollar stimulus bill to keep the economy moving well without question there will be some huge concerns over whether this massive amount of cash will have the effect that lawmakers are claiming it will and whether or not its even enough well consider the fact that the stimulus bill is nearly 3 times the size of the 2008 banking bailout and yet its a scope is actually very different when 2008 the goal of the stimulus bill was to save banking entities that were too big to fail well this time around its not just major institutions that are at risk instead its the entire middle class well hundreds of millions of americans are being told to stay indoors and millions of workers are simply not allowed to go to work so the big picture question here is can this new stimulus saved. The economy well joining us now. Both cohost and investigative journalist ben swan ben lets start with this simple question do we have any idea of the actual losses that americans face when the economy has been forced to stop for at least 2 months. What we really dont right now and this is so unprecedented that theres really no numbers and ive been searching for that really for the last couple of days trying to figure out exactly what the real costs are going to be for not just American Families but for Small Businesses for large corporations which employ a lot of people or Small Businesses in this country employ the majority of americans and so when you look at for those specific numbers sarah the reality is theyre not out there right now what is the actual cost of grinding to a halt the entire major American Economy for at least 2 months and keep in mind you have a lot of these doctors and specialists who are saying oh it needs to go on even longer than that but the truth is we dont even know that we can go for 2 months this tonight trillion dollar bill as you just pointed out that was passed like by the senate now goes to the house eventually when Congress Passes this thing this is about half the size of the entire federal budget for the year so and thats only expected to last really a few weeks its not like we can keep passing these stimulus bills over and over even though people like Stephen Nugent the treasury secretary say that we will if we have to and thats just ludicrous its a little scary to hear that but weve never seen anything like this at least not not in our lifetime for that matter especially during these times but when we use numbers like 2 trillion dollars thats usually we see billions were not were pretty familiar with that with when it comes to military contracts and such but trillion 2 trillion the words almost become meaningless when you try to understand the scope of just how large this bailout actually is give us an idea of what this means for the economy and for how long. Well youre absolutely right 2 trillion does almost become meaningless lets make it even more meaningless how about that when when the congress is saying 2 trillion dollars will be spent to help revive the economy keep it going 5 100000000000. 00 is going to go to large corporations 350000000000. 00 is going to go to Small Businesses about 100000000000. 00 is going to flow to direct assistance to americans but while thats happening you have the fed saying its going to print 4 trillion dollars and make loans to corporations and to businesses so in all were actually talking about 6 trillion dollars on the table right now larger than the entire economy for the year and the reality is over the budget excuse me for the year and so what were looking at here is how do we even begin to pay for this the way that everyone is just the fine it is theyre saying well these are just these are just loans theyre going to get people back on their feet well its not a loan to send direct assistance to peoples pockets but i would argue thats probably more effective than where its going to actually go when it goes to these businesses and corporations there are more effective ways of doing this for instance go in and say the Insurance Companies if youre you know pay for that that essentially the delay that restaurants and retail of head cover that insurance in the feds will reimburse you for it thats probably more effective than all this money sarah thats going to get wasted and spent basically going to friends of friends and that theres a concern then later comes hyperinflation which is the danger that weve talked about here on the show that we have about a minute left but i want to get this question and and this new reality of employees working from home thats what were living and how do companies actually survive. Well the reality is is that companies are going to have to look at this as a positive and i think there is a positive through all this which is that you dont have to be inside of an office all the time i think a lot of companies are going to restructure themselves in a way that says we dont want the majority of our workforce in office theyre going to have to do it from home and its going to be more effective in case god forbid Something Like this happen again in the future when you have to be prepared somehow best spent on thank you sam. Time. That by the time you can catch boom bust but as always checks out on you tube dot com slash boom bust r t with you next time. Trade and investment to become magic spells to conjure economic development. Most people think about trade they think about goods and services being exchanged between countries and the investment chapter of a trade agreement is about something very different but what one investment leads to toxic manufacturing that destroys sacred sites all grew into the environment. That means the local communities that are being poisoned if they object if they do anything that the company feels is interrupting their profits they can be sued no multinationals are taking on the whole nation Philip Morris is trying to use i. S. T. s to stop oregon by implementing new tobacco regulations aimed at cutting domestic smoking rates a French Company sued egypt because egypt raise its minimum wage democratic choice over trump Corporate Law joining us as we try to find those. As the election cycle rages on the media highlights or even invents what they deem to be important even radical what they dont tell you is how the Political Center is collapsing in Todays Campaign is what voters think about the status quo. Your government and our government and all the other major governments of the world know whats going to and when its going to. But they havent told you and they havent told me they havent announced. Imagine something as big as the earth. Is going to cause tidal waves or earthquakes volcanoes are going to wrap it and its going to chill. So very for a while right. My great grandfathers. Nobody would care about the law or prison so youd have wallace those should have. A terrible life between the in the. Us finds itself at the center of the covert 900. 00 pandemic with more confirmed cases that any other country new york accounts behalf of the National Total of the 40 percent surge in hospital admissions in just a single that kind of level is nothing compared to this we were open waiting for patients to kabul never came. They just keep coming. By dealing with a Health Crisis on home soil the us is also ramped up pressure on venezuela president Nicolas Maduro of terrorism and offering a 15000000. 00 reward for his capture. Pile up and coming toward him swith hospital overwhelmed as it truly struggles to cope with the entire