Transcripts For RT Boom Bust 20240713

Surrounding badly needed medical supplies and facemask that are currently sitting in warehouses in china the u. S. State department claims that u. S. Bound face mask test kits and other medical equipment urgently needed to fight the corona virus is not leaving china thanks to new chinese export restrictions those supplies are supposed to either already be here in the United States or at least should be on their way and yet they are not according to the wall street Journal Health care equipment maker perkin elmer nk based in massachusetts is unable to ship 1400000 test kits for co but 19 the disease caused by the new corona virus from their souse out factory because it lacks certification required by the new rules and then there is 3 m. Corporation based in minnesota which says that its and 95. 00 respirator masks are stuck in shanghai the claim from 3 m. Is that a shanghai vice mayor has told the company that lifting restrictions on distribution of. Ponys mass would require instructions from beijing directly joining us now to break this all down is boom bust cohost and investigative journalist ben swan so ben explain what these new restrictions are that are creating such a backlog of supplies. Yeah the brand is actually a couple of things that are happening 1st of all the chinas National Medical Products Association and ministration excuse me is telling essentially companies that they cannot sin products medical products to the United States without a going through a certain level of checks and then double checks by that administration and essentially theyre saying you know everything has to be halted until it can be checked and then on friday Something Else happened china added another hurdle and what they did was they subjected certain kinds of medical equipment like protective gear and equipment like that and that by the way includes ventilators and it includes masks to have extra checks done on them before they can be shipped now you know chinas doing this in part because theyre stuck between a rock and a hard place because theres a lot of criticism right now about the products coming from china but at the same time it is severely limiting the number of products in the kind of products that are getting back to the u. S. At a moment when the u. S. Needs them so badly and its interesting because these are held up by actual companies who are ordering them from factories there so its different than just you know humanitarian aid thats coming from china now ben without question some in the media and in politics are going to say that china is flexing here or even punishing the u. S. Maybe because of the trade war do we know if any of that is true and why isnt china cutting through this red tape to move products as quickly as possible to get them here right well as i mentioned you know chinas kind of in a tough position here because they have been getting a lot of criticism over products and whether or not theyre going to be safe and properly distributed now part of it could be that china is getting angry about all the talk that they are responsible for the coronavirus as well as having not released information in a timely manner theres a lot of criticism as you know coming from parts of the u. S. Government from politicians so they might be responding to some of that as well but consider this and i think theres a bigger issue here which is that this is an issue of the u. S. Being so dependent on china for these kinds of products that were really stuck in a terrible position here about 40 percent of all the products in the world for medical supplies that are needed right now are coming from. Im china which means without china the rest of the world is kind of stuck without this stuff and so when you create such dependency on another nation it really leaves you in a bad position when this kind of thing happens to your point exactly were seeing you know as they tried to retool auto manufacturing plants to make ventilators and things like that you can see exactly that our dependence on trying to we didnt make any of that here in the United States when we so importantly needed at the time now i want to go over a little bit of a data here a new set of analysis by Public Citizen is global trade watch shows that during january and february of this year the u. S. Shipped a huge numbers of facemask and medical supplies to china rather than keeping them here why is that a problem in your eyes or well i think its a huge problem for a couple of reasons and well get to more that in a 2nd but can we take a look at the numbers i know that we have a graph over there and essentially what Public Citizen is saying is this is that in 2019 if you look at the numbers between january and february the u. S. Export it to china about 947000 dollars and thats worth a ventilators and masks medical equipment that was sent to china about 947000 a year later in 2020 january to february kind of at the height of this covert 19 pandemic specifically for china u. S. Companies export that doesnt mean this was a dissent from the United States these are u. S. Companies selling to china about 13 and a half 1000000. 00 worth of items that is a year to year increase of about 1315 percent 1315 percent increase year over year and again this is not 8 being sent to the from the u. S. Government these are private companies so it raises a huge question why in the world if china is the country that makes everything would we be selling items in the United States to china because when it hits here all of a sudden we dont have the ability to make any of the stuff ourselves or i mean. That the whole point here in part because the United States cannot make or get the critical goods people need. What do we know about this analysis that were seeing here quickly yeah very quickly i mean thats essentially what it shows as it shows us that the u. S. Was left vulnerable that in a moment and by the way the u. S. Government encourage companies to do this that in a moment when we saw this thing coming we knew it was hitting china and other countries and we also know that we dont have the ability to create any of these things on our own we cant make going to letters on our own we cant make masks on our own its all made in china we sold these items to china so those companies could make a whole lot of profit and then turned around and said oh no were stuck and now the state department complains and says what china will send us our stuff but its in china instead of being here absolutely boom bust cohost investigative journalist friends one thank you so much for your time today this. And some of the worlds economies are now looking at reopening as the coronavirus curve flattens wild japan just recently declared a nationwide state of emergency due to the virus so lets take another global look at the spread of the corona virus with r. T. Correspondent sorry to have it or so i whats happening today so brand globally rich surprise to a 1000000 infections with over 145000 people dead and now the u. S. Accounts 4670000 of those infections and over 35000. 00 of those thats the highest in the world then over to europe thats going on over to europe right now we have over a 1000000 confirmed cases with over 91000 thats and then over to asia and the middle east where the numbers are just climbing were up almost 345000 deaths or 12000 and then we go to south america which is also increasing like the rest of the world would over 67000. 00 cases and 3000. 00 thats and weve had lots of recovery there were 25000. 00 recovered and then finally over to our where the numbers are not that high which is very good for 4 african continent now President Trump is suggesting new data shows that the u. S. Has actually passed a peak a new infections and said he would announce new guidelines for reopening the economy but take a look at this chart which actually does not appear that its that its flattening it actually the peak has not been reached because as you see its just going up and because you know just in the last 24 hours weve had 21000 infections so in no way does this trend actually show that its widening and instead as you see is just going higher and higher brant. Can you break down for us which industries are being hurt most globe. When it comes to the quote of others so here are the in this tree suffering the biggest job losses so amongst our heart is hit of the economy is the Service Industry right there is payrolls and declining by 459000 jobs so those are who tells the lodging businesses bars restaurants so theyve all called jobs and then which is followed by health care and social assistance so think of daycare think of Family Services dentists private physicians all have over 61000 jobs over to professional and Business Services so now we have our consultants our engineers our lawyers and now over to a trade which is obviously called jobs because you know with so much unemployment obviously nobody is shopping and all the stores are closed so of course that would cause a lot of jobs would over 46000. 00 jobs then over to construction followed by manufacturing and then to mining transportation and finally financial activities so this is really explains why millions of americans have lost their jobs and thousands of businesses forced to close their doors and right now roughly 22000000 americans are seeking some sort of unemployment benefit and this figure is actually a lot higher because many people actually apply for unemployment up turned down and dont actually havent received any checks plus in most states the selfemployed and freelance workers arent even yet able to file for application of unemployment under the new rules and acted by the federal governments 2. 2 trillion Economic Relief package so even though right now one in 7 workers have lost their job but that figure is in fact a lot higher and some economists are actually saying that unemployment could reach as high as 20 percent by the end of april which would be the highest rate since the depression and by comparison unemployment never topped 10 percent even during the Great Recession brunt correspondents are temperature thank you for that excellent report. And a reminder you can always find the latest news and information regarding the coronavirus on portable t. V. s coronavirus tracker and equity markets here in the u. S. Closed up after a mixed day and just squeaked it out at the end there so lets say you know whats going on with boom bust cohost Christine Christi thank you so much for joining us today whats going on with the market here on thursday. So are getting more data points such as manufacturing numbers we tell sales and earnings and looks like right now the reality is worse than expectations the market struggled all day and trade down for most of the session on the s. And p. Endowed with an aspect managed to eke out some gains and the market into the green in the final hour of trading after amazon and netflix reached record levels walmart also rose to new all time highs thursday as a retailer continued to benefit from the hoarding of Consumer Staples now the Labor Department also announced over 5200000 americans filed for Unemployment Benefits last week which is worse than expectations of 5000000 now bringing the total number of job losses to 22000000. 00 americans unemployment going to be a huge factor they can quickly rage out of control as this brings in less income in Discretionary Spending now less income and less spending and consumption means our businesses face lower demand and less profit which then leads to more layoffs and that is a vicious cycle and in the u. S. Consumer spending accounts for more than 2 thirds of the total u. S. Economic activity and thats really what drove the s. And p. Rally last year during the Holiday Season when everything was up on the backs of strong u. S. Consumers spent we dont have that anymore thats gone and now kristie as you just mentioned seem to be doing better they seem to be relatively unaffected business continues to operate as normal for amazon and netflix and in fact netflix now is exceeded disney they have their one Business Model and theyve exceeded visit disney which is a brand here in the u. S. Thats been around forever almost so are we going to see those stocks rise to dominance again and continue to have that push. Well netflix and amazon certainly as netflix has gained more users streaming hours are up as people stay home and amazon is also experiencing a surge and deliveries and new customers signing up now for groceries but the other 2 names facebook and google could have different stories facebook and google are fundamentally giant ad platforms there are girls depend on increases in ads that may not how big their user base is grow so with businesses at a standstill or to. Trying to conserve cash and runway marketing and advertising budget is going to be the 1st to get slashed sectors such as travel hotels names like expedia for instance now they spend over 5000000000. 00 a year on advertising the c. E. O. Just came on and announced that now they probably wont even spend 1000000000. 00 on ads this year and now in the latest survey by Interactive Advertising bureau nearly a quarter of the 400. 00 Media Planners responded that they have paused all ad spend for the rest of the 1st and 2nd quarters so this could have a definite staying impact for tech names who rely on ad spend names such as Facebook Google linked in and twitter robust post kristie i were going to talk a little bit about reopening the economy a little bit after the break here so thank you so much just hang around for a few minutes here. And time now for a quick pause but because well be right back in a flash and as we go to break here the numbers at the close. It was. Max geysers financial survival guide. Housing bubble. Oh you mean theres a down side artificial Mortgage Group dont get carried away thats cause report. Thinking of getting a coupon the ones we got in here shows no problem was as he didnt know until he was trapped in this tiny little wired coach you dont need a crate with him he will just stir freaking out and she will want to spray him and you were near and thousands of greeting dogs are caged in in human conditions on puppy farm i mean 67 years you know theyve been locked up in a cage outside you see no protection from the weather the heat you know the courtier the rain the snow the funder nothing they have no protection. To get what you. Can get through kids. Across the u. S. Cruel puppy mills are supported by dog shows and pet stores most of the puppies are coming from these large Scale Factory farming kind of operations are being sold in stores even joined a good businesses are involved like agoa mom santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with dogs dont buy dog on ot. Join me every 1st day on the all excitement and ill be speaking to get a feel of the world of politics sports business im show business ill see you there. And welcome back more than 5000000 americans filed for Unemployment Benefits for the 1st for the week ending april 10th according to new data from the u. S. Department of labor something we just mentioned there and as we mentioned earlier more than 22000000 americans have filed for benefits over the last 4 weeks since stay at home orders an essential lockdowns were placed throughout the country now the pandemic has essentially brought most sectors of the economy in the u. S. And throughout the world to a complete standstill retail sales for march fell by 8. 7 percent from the month earlier cording to the Commerce Department the biggest month over month decline since they even started keeping those records in 1902 the Federal Reserve is reporting that Industrial Production fell by 5. 4 percent in march the biggest drop since 1906 and manufacturing output lost 6. 3 percent month over month the biggest drop since the end of the 2nd world war and while the hope is reopening economies worldwide will mitigate the Economic Impact of these lockdowns organizations like the i. M. F. And un and multiple others have said this is the worst economic crisis since the Great Depression so lets dive in with the expert analysis with tobin smith c. E. O. Of Transformative Research and lets bring back to bus cohost kristie i tell but i want to start with you over the last month youve been on this show sounding the alarm that this economic downturn is not due to the coronavirus is there any way that we can actually restart this economy and its going to make up for these dismal metrics that i just laid out right there for you on the table. Well 1st. Lets bear in mind that up until about 8 days ago we were in a freefall and then the fed put the United States on its back and it really put the world on its back and it basically said the world is too big to fail so theres been a dramatic difference and that dramatic difference is is its not only just liquidity in the United States but the i. M. F. Which we fund primarily is now opening the spigot to Asian Countries to other parts of the world and thats a big deal now that weve weve released not become a solved problem at this point we were a coronavirus problem certainly which kicked off this waterfall negative economic effect but the fed is it has unlimited ability to make this thing as a bridge loan or not you know business is probably 30 percent of russians are never going to come back 30 percent and they also salons are not going to come back. But we have enough firepower in the world to add to the 290. 00 trillion dollars of debt we have right now and everybody thats what scares. Bankers the most well we wanted to the you know the bowels of 20082009 we had about you know 90 trillion of world debt we dont have 280 trillion of world debt we only have 95. 00 trillion dollars of world g. D. P. That is what is scared the heck out of these guys and only one way they can do it is to monetize this debt and keep the will stern in until our selfinflicted closures come back and thats going to be as everyone says thats about test test and test and now chrystia whats your response to this because you know it seems like all Central Banks have kind of got on board with this will just keep injecting liquidity into the into the economy to make sure nobody fails just hope and just said but is that sustainable thats the question i have is it sustainable. Well its not right its him because he had this. Pumping an essential a 6 trillion dollars into the economy and on top of that you have mass fiscal policy on top of that so youre looking at really the end of 3 market where the illusion of what we had was the free market now Deutsche Bank has more kind of branded a zombie market as we have very high real economic volatility but actually very low financial volatility so kind of by offering this unlimited ion power the fed is pretty much nationalizing the market now the only market that really doesnt have the fat finger prints all over it right now is the commodity market which is completely in freefall with the oil taking out that is and that the market which is something that a lot of investors have actually going to go into for stability because the cut the market has now been proven to be the freest market of all in the recent weeks and now tobin as kristie just much i want to follow up on the commodities angle here because you know that market is not being really stimulated by me when you have some Oil Production cuts but its really not helping at all right now but the fact is if say the worst happens here and these lock downs continue for maybe a year because we have to test test test and then maybe need a vaccine i mean in the reality are going to see those markets further propped up or are we going to let the oil industry fail at this point. Well big question so commodities are not just oil. So food you know corn and wheat and so forth but but they trade in dollars and where the 3rd world and 2nd world countries who grow a lot of coffee beans which you know brazil and mexico and thailand and viet nam theyre hurting there because remember they were already hurting because of the tariff we were having a china then business was being exploited to them by you know supply chains and they were doing pretty well felt pretty good about themselves and then boom we get this and now trying to lock down the supply chain the 2nd the 1st order the 2nd order effect and now were getting the 3rd order effect where white collar. Jobs are being laid off and restaurants cant buy the food let me tell you i bought prime rib for easter at about 7. 00 a pound used to be 22. 00 a pound so. Coffees foods all that and oh by the way yeah the oil business is crushed not so much by the by the the trade war but there crushed because the lack of demand now that demand will come back but thats what the fed is doing its making a bridge loan so that honestly Good Companies remember recessions are supposed to get out the weak hands but keeping the Good Companies the well run companies that through no fault of their all. Through no fault of their own. You know have no demand they need those in business because this economy still runs on hydrocarbons and of course now when it comes to ag 2 youre going to see its planting season right now so that may be an issue to see where things end up at that point as well so were going to quickly could you give me an answer on this the Small Business loan program and that p. P. P. Its already run out of the 350000000000. 00 that we saw injected into those loans what does that mean and you already just said 30 percent of these businesses are going to make it but what does that mean are we going to see more stimulus from the government or what are we going to see here. Yeah were going to hue and cry has been from Small Businesses we got a loan for our company and we could do it because we have an accountant an attorney and so on and so forth for the guy whos run in that my favorite bar down the street he barely knows where its tax returns are his payroll is sort of on and off but behalf of guys working for cash i have a feeling. This particular democrat in the house are going to come in and say listen you made this too hard to get to we need to put another 300000000000 probably 500000000000 in that and then number 2 it needs to be like an app heres my number heres my employees click send the cash to this account otherwise were going to lose more than we should and it will damage our economy for a decade tobin smith and christie i thank you both for that excellent insight i appreciate it today thank you. And finally a recent nasa discovery is giving some hope that in earth 2 point 0 may actually exist and now its not even close to mars arctic correspondent tashas suite takes a look at what researchers are saying about this newly discovered exoplanet. 300 light years from earth a New Discovery reveals an exoplanet with stock similarities to our very own globe nasa describing the exoplanets as the most similar to earth insanities and estimated temperature and thats comparing this exoplanet to thousands of others discovered by the now retired kepler space telescope it ran out of fuel and reportedly went to sleep back in 2018 but scientists are still looking through all of its captured surveillance this nasa illustration is what scientists believe the surface of kepler 641. 00 c. Would potentially look like a location makes it possible for a liquid water to exist and its slightly larger than earth receiving 75 percent of the same light we get from our own sun according to nasa this could mean temperatures there might also be similar to whats found here on earth this planet was originally overlooked by a computer algorithm but was found after scientists began reviewing the telescope data published in the Astrophysical Journal Letters this month lead author Andrew Vandenberg from the university of texas at austin says quote with red drifts almost everywhere around our galaxy and these small potentially habitable rocky planets around them the chance of one of them isnt too different than our own earth looks a bit brighter Scientists Say kepler 1649 sees atmosphere is still a mystery and that calculations may be off the planet is in orbit around a red door flinches a type of star and according to nasa that is known for stellar flare ups that may make a planets environment challenging for any potential life so while more research is needed its certainly promising to see what lies beyond our very own solar. Into this infinite galaxy reporting for us natasha sweets r. T. And thats it for this time you can catch boom bust on the brand new portable t. V. App and as always on youtube dot com slash boom bust r. T. See you next time. Please. Is youll media a reflection of reality. In a world transformed. What will make you feel safe. Isolation community. Are you going the right way or are you being that. Direct. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. Or a made in the shallowness. Thanks. Hello and welcome to redacted and i i mean we caravan and guest host and purveyor of new hobbies its basically a different world we live in since last week the pope recommended universal basic and joe biden is a you too were burning man will be streaming online this year and i think i might be a person whos into windchimes we put together a great show for you tonight on tonights episode lee camp sits down with the qana missed Richard Wolffe Professor Emeritus of economics at university of massachusetts amherst and formerly a professor of economics at yale and the new school among others hes also the founder of democracy at work and host of economic update on you tube and they have a very interesting conversation about workers strikes then i go into aggressive policing and redacted correspondent enders lee does some Fact Checking on voting but 1st lets go to that discussion between we camp and richard wall for us reward thank you so much for joining me. My pleasure me glad to be here i dont know anyone better than you to diagnose the problems right now or looking at an economic crisis possibly 30 percent Unemployed People suffering across the country and around the world if only someone had told us that such a crisis might happen if only there had been some kind of warning signs but instead no one could see that capitalism would have such a problem is that right. Well reza fewer crust but basically youre right the consensus was that we were doing really pretty well the president s absurd claim that the economy was great or even greatest is the word