Transcripts For RT Boom Bust 20240713

Mass unemployment in the United States when a lot of the spike in markets this week and we also dig into the rising tensions between the u. S. And china and later told at 19 outbreak has caused a major disruption in the travel industry particularly airlines we dig into the struggles of this sector we have a packed show today so lets dive right in. And there is a big move coming from u. S. President donald trump the president will reportedly target facebook and twitter in an executive order regarding social media according to a draft that appears to have leaked online now the draft version of the order which could still change names Facebook Google and twitter and targets a section of u. S. Law under which to platforms largely arent liable for what their users post and are fairly free to police content joining us now to discuss cohost investigative journalist of course ben swan now ben theres a lot to unpack your what exactly is the rule that President Trump is attempting to amend and why is he actually doing that and how big of a deal would it be for these social media companies. Yes so for started at the very end there its a very big deal its actually something ive been calling for for about 2 years the president now talking about whether or not he can or cannot do this the truth is we dont even know if the president can do this lets talk about what hes trying to do so what the president is trying to do is issue an executive order that would essentially clamp down on companies that are using section 230. 00 of the Communications Decency act to protect themselves with online users essentially what section 230. 00 does is it says if youre a platform like twitter or facebook or you tube you can exist as a Company Someone comes on your platform and they post something that some supposed to be there whether its a copyright issue a piracy issue or they you know theres hate speech or whatever it might be the platform on which that content is posted the company cannot be held liable for the problem is that and this is what ive been saying for the last 2 years is that the problem is that Companies Like facebook and twitter have been not acting as platforms but they shifted after 2016 to become publishers in fact Mark Zuckerberg in front of congress repeatedly referred to facebook as a publisher meaning that they are actually liable for everything that goes on their platform thats why come Tech Companies think they have the right to police and control whats on there so the president had a couple tweets that were fact checked by twitter it made him angry and now he says hes going to issue an executive order to clamp down lastly on this 1st part the big question is whether or not he can legally do that it would have to go through the courts this is a congressional issue and the president im not sure has the authority to do what i do think though that congress should do it and then the question also becomes i know that the president s executive order that would kind of put a lot of things in the hands of the federal Communications Commission correct thats where a lot of this would be redrawing. The f. C. C. And also the Commerce Department apparently apparently he wants the Commerce Department to have more access to crack down on these companies as well not exactly sure how it applies to commerce other than the fact that it crosses state lines i suppose because its internet but thats apparently one of the agencies that will be looking at you know this wild west of the internet and social media obviously has been around you know. 1520 years now of this type of stuff but we still are in a situation where we havent been sure to how to characterize it as you said are you a publisher or are you social media what are you and it seems like this just gets more and more complicated as we go. Well it does heres the problem is that up until 2016 i think pretty much all the Stock Companies were just platforms you could go on to facebook you could create a page you could post content onto that page and if people wanted to see it they would follow you they would like it in they would see it the problem is since 2016 facebook shifted twitter shifted and you tube shifted and they decided that they needed to police content on their platforms and control what was what people had access to and i dont think that weve seen anything like it as dramatically as we have during the past few weeks during this coronavirus pandemic we are seeing an immense amount of content being filtered and sincere and controlled you tube the president of you tube or the c. E. O. Excuse me came out and said just a couple weeks ago that you tube would take down any content that contradicts the w. H. O. How does a journalist supposed to feel about that if youre told if you do not agree with the w. H. O. Which by the way as you know brand doesnt always agree with itself the w. H. O. Have issued you know guidelines saying you dont need to wear masks and then 2 weeks later that you do need to wear masks well which what is it so the problem is is that information especially when it comes to journalism is always changing now there are facts that remain but as new information comes out journalists provide new information and this idea that everything is static is a very strange idea thats being pushed by Tech Companies right now and it certainly doesnt apply certainly to journalism now twitters head of integrity your wrath is in charge of developing and enforcing twitters rules like the one that led twitter to actually slap a new misleading warning label onto a President Trumps tweets concerning concerning nationwide mail in balloting on tuesday now if that meant a leading label what is driving the president s action here well it is it was because 2 of those tweets were labeled as misleading information thats what twitter is using facebook uses a different term they say partly false information is how theyre doing it twitter essentially has an internal system but the guy who actually is the head. This people of an earth tweets from him in the recent months in years where hes been extremely critical of President Trump and is attacked in a lot of very you know personal ways that dont reflect necessarily journalism and so heres the problem the problem is when you have an internal system inside of twitter that says that we will control essentially you know the information that goes out there is people involved in that and whenever people are involved now you have bias involved and so you dont have a a clean slate at all to be able to operate from that doesnt mean that the president s tweets werent misleading it means the socalled Twitter Police who control it are policing maybe one side but then they dont Police Another point of view look the same thing is happening with facebook but they spoke does is instead of having an internal system theyve now set up a Supreme Court where you can it would that ultimately decides if facebook actually calls it that there Supreme Court to free speech which is insane and then on top of that they have these different Fact Checking partners like political actor usa today but ill tell you ive had 2 stories that have been since or by political act in usa today in just the past 2 weeks and in both cases neither usa today nor political fact actually fact check my information in fact the political article specifically stated the are there the report that i did the 15 minute report which we did not fact check so this whole concept of Fact Checkers and whos doing the Fact Checking it has made these companies and completely open them up to attack and i think that they have put themselves in the crosshairs and now President Trump is going to squeeze the trigger and i bet i want to hit this last point before we let you go here you know facebook c. E. O. Mark zuckerberg actually told me see this morning i know you know its coming it is not think social networks should be Fact Checking what politicians post however his platform as you just mentioned fact checks journalists it and i think i have a broader question about this ben which is this a little bit of twitter versus facebook that weve never really seen in the. We only see it when it comes to these policies is that whats going on here i think thats part of it look mark that one of the the other differences between twitter versus facebook on the issue of politicians is that twitter makes almost no revenue from political ads and facebook makes about half a 1000000000. 00 in one year from political ads theres a big difference in terms of revenue facebook always a half a 1000000000 thats nothing for us but they dont act like its nothing and the idea make your head explode by thinking about this Mark Zuckerberg says politicians dont need to be fact checked but journalists have to be fact checked by non journalists on facebook in order to exist does that make any sense at all what hes essentially saying is if youre in a position of power we will fact check you but if you attempt to hold those in power accountable youre the ones that were watching boom bust cohost ben swan we will follow the story and bring it back to talk about it thank you so much thanks for. The u. S. Economy contracted in the 1st quarter of 2020 by a faster pace than initial estimates according to a new or 2 new data from the Commerce Department Gross Domestic Product fell by 5 percent from the year prior for the month of january through march of last month the number was estimated to be a 4. 8 percent drop over that time frame but was revised down now this marks the biggest quarterly decline since the dive of 8. 4 percent in the 4th quarter of 2008 now as stay at home orders persist in the u. S. Some economists estimate the economy could shrink by between 30 and 40 percent for the 2nd quarter of 2020 meanwhile more bad Economic News as the 1st time unemployment claims in the u. S. Hit 2100000 for the week ending may 22nd claim since the beginning of march have now eclipsed 40000000 for more on this and the state of the economy and what markets are doing on thursday lets bring in blue bus cohost Christine Christie thank you so much for being here as always now the u. S. Economy shrank by a faster pace as we just mentioned but the real question is up until about the final hour of trading markets were up today and theyve been up all week whats going on. Well right now there is this very heavy rebound narrative that is driving this bounce and some think that this squirrels will rebound sharply in the july to September Quarter but there are a couple factors are playing out in this risk on ships the 1st of all you have a fiscal stimulus acceleration from europe and germany that we talked about yesterday this is huge and this is a very big shift away from its very traditional very conservative stance so that you also have the ongoing rush to reopen the Global Economy mobility and credit card data our national indications that American Consumers are trying to return to normalcy and then of course finally have the nonstop helicopter money that is artificially putting a floor onto the entire Market Driving traders to flip the switch and start buying in order to cover shorts but despite all this despite the markets now going above the 3000. 00 again in the s. And p. Big money still remains sidelined in this rally so you can see that in the data the flows data the hedge funds and the large Asset Managers have not been participating and they have instead pushed their net short positions on the s. And p. Futures to the most aggressive stance since february of 2016 so right now this tells you that the majority of this rally its being bought by Retail Investors which is exactly of what happened if you recall just a few weeks ago when all the Oil Speculation trading was played out that was driven and then crushed with retail traders Retail Investors taking all the losses and now we just mentioned these unemployment numbers and while its higher than expected once again the market still really taken it as a good sign why do you see that. Its funny how the markets try to put an optimistic spin on things sometimes by saying this is bad but not so bad in comparison apparently so in this last week 2100000 more americans filed for Unemployment Benefits for the 1st time now this brings the 10 we are told to about 40770000 which is dramatically more than any period in American History so now while these figures are quite disturbing the fact is that the cares bailout itself has been a contributor and all of this the keris act increased the eligibility for jobless claims to selfemployed and get workers and extent of the maximum number of weeks that one could receive these benefits so this created a lot of incentives for some businesses to furlough their employees knowing that they will all be covered by nationally so anyone making below about 50000. 00 are for the most part made whole so you have a lot of people who are happily taking Unemployment Benefits now as theyre receiving war that they have ever made or when they were employed so all obviously these numbers arent great but there is a Silver Lining and that is the continuing claims or the measure of by those that have been collecting for at least 2 weeks that number has now dropped by 3800000 from the previous week so this decline in continuing claims suggests that businesses are rehiring some people back again especially in states that have reopened so it very well may be the case that we are seeing a bottom in unemployment and were nearing a turning point now chris i want to move on to you know the kind of the topic of your lately the u. S. And china appears to be escalating into this cold war but that is not what china wants according to the chinese premier was one of those are being we have all along rejected the cold war mentality and decoupling the resolution of your economies of the world will do neither side. Also harm the world. It appears also that President Trump is going to be giving a News Conference on friday afternoon to discuss the situation with china a lot having to do with a National Security law a law that is being put in place in hong kong at all as well but what is the latest on the situation in the cold war between china and the u. S. So it seems like china is trying to diffuse the escalation and this comes after the trying to change internet plan to cancel the visas of thousands of graduate students and researchers in the u. S. So Chinese Students will have to take their beats us cancel that will be expelled well that was already outside the u. S. Will not be allowed to return so the purpose of this apparently is to clamp down on spying and intellectual property that it is expected that there will be significant pushback as Chinese Student enrollment is a big source of funding for institutions over 360000 chinese nationals or 10 u. S. Schools and annually generate Economic Activity about 14000000000 dollars largely from tuition and other cities so now while the u. S. Continues to try to explain the situation china wants to take a step back and it doesnt want to decouple an escalating to a cold war hong kong right now is the main battleground so this rivalry between the u. S. And china just escalate on all fronts from technology and i. G. N. Ai over to politics to trade around the its just a mental difference in ideology that isnt easily reconciled boom bust cohost christi i will have more about this friday thank you so much for your insight. There and time now for a quick break but hang here because when we return the covert outbreak has caused a major disruption in the travel industry particularly airlines we dig into the struggles of the sector as we go to break here the numbers of the close. Ups. Counting the cost and charting the future we demand any good theory to proceed it is time to assess the economic game just as the crises change between the concrete and if theres going to be a recovery what kind of be and are there lessons to be learned. Happened and another one of the. Way or both the food. Bank itself mukti about. Plus weve got to talk so hard not to think i dont have to decide this the work up to date i want and i dont mean to start then if. This is the only thing that we do is music because everybody fights his way. To. The floor you can fall off the feet on this wolf this would be about the whole leave it at the top of the. Thank you but i think is this is the fund that is a compliment thank. You. Welcome to max keiser financial survival guide. Looking forward to the year thats the down. Yanks this is what happens to pensions in britain. As a report. Has prohibitions against. The same time virtually every culture. Word you enormously if you killed the right person one stating it is the most horrendous damaging seem to match in the world and in the other setting his room. For that. Because of the people will meet with you because youre good at doing that sort of say. Welcome back a 9000000000 euro bailout of German Airline new phones is up in the air as the companys board said it is quote able to approve the rescue due to conditions put forth by officials in the European Union as part of the deal the German Government was set to take a 20 percent stake in europe 2nd Largest Airline and maintain the rights to just over 25 per cent to block any attempt at a hostile takeover but the point of contention comes as brussels suggest the airline must give up some takeoff and landing slots at airports in frankfurt munich to break all that down were joined by r t correspondent peter oliver from berlin peter thank you so much for joining us at this point what are the prospects of this bailout actually happening hello. Its probably going to happen it needs to happen if you really look at the figures form of Thompsons Point of view it isnt going to happen just yet and that all comes down to the 72 prime time takeoff and landing slots at germanys top 2 airports thats frankfurt and munich frankfurt sees just over 70000000. 00 passengers a year certainly last year around 50000000. 00 for munich the e. U. Commission competition regulators they said this they would allow the 9000000000 German Government bailout of love tons if tons it was to relinquish these slots on a permanent basis so that was on monday tuesday wednesday the board of love tons i got together and they said its not really going to work for us we dont want to give those up on a full time basis what about if we did it temporarily they actually said in a statement that they were going to assess the Economic Impact of giving up those slots they also said in that same statement that this bailout was the only viable alternative to essentially the Company Going bust senshi this is going to come down to who blinks 1st lufthansa doesnt want to give those slots up on a full time basis the e. U. Commission who usually have incredibly stringent rules when it comes to this type of thing of ease these things slightly in the post trying to get things back on track of the corona basically tons its got a good deal to make it a better deal for themselves does seem like there will be a deal at some point in the future is just a matter of when so where exactly the. Airlines operations have been reduced to one percent of normal operations amid the pandemic. Well it leaves them annoying every other airline that isnt getting one of these bailouts one of the major low Cost Airlines in europe ryanair. Out of ireland theyve been very vocal particularly their c. E. O. Michael Michael Oleary never backwards about coming forwards hes described this bailout is another example of illegal state aid as he puts it saying it will give lost tons of it unfair advantage in the marketplace the German Economy minister though hes the one thats been signing off a century on these checks that they put forward this 9000000000. 00 bailout he says the reason the German Government is getting involved is to keep essentially an Aviation Institution in german hands. And that. Is one of the most traditional in germany as well as. We have done a convincing signal free market economy but also for the federal governments will to defend the technological and economic sovereignty of this country. Well the German Government for their 9000000000. 00 euro gets 20 percent of lufthansa that can rice to 25 percent plus one share in the event of a hostile takeover. Not a case thats the only way they loved it the German Government would get a vote on the love tons of both the plan is for the German Government to sell whatever share it ends up having all of guns at by 2023 by the end of the year this is very much being looked at as a temporary bailout a temporary presence i beg your pardon on the lufthansa board r. T. Correspondent peter oliver thank you so much for keeping up on the story and give us that update. And for more on the state of the Airline Industry amid the pandemic lets go ahead and bring in gary lef author view from the wing and gary i want to start with this actually situation with the fans as we just mentioned it appears theyre going to refuse the bailout terms with the e. U. How big of a deal is this for them to lose these spots as peter just mentioned and really what does this mean for lou found to customers. Well 1st of all i mean i think we really do expect the deal to happen but obviously the slots are incredibly important to little contests to the extent that theyre going to play chicken with a 9. 8 1000000000. 00 you know world where there are planes flying and you know airport operator at capacity these slots are very valuable to the airlines to their business theyre basically stayed in their own right because the government is given the for not saying the right to take off and land wind and exclude others from doing so that is a way they are an outsized returns on your normal operations and then also frankly the government will get their ability to sell their shares for something close to what they paid for them and now i want to keep on the theme of bailouts here because in in the u. S. As capacity has to be limited are we going to see u. S. Airlines actually asking for more of a bailout after the one we received back in april because when you look at the airlines werent exactly giving consumers a break at the height of air travel but now they have asked the consumers or the taxpayers here in the u. S. To bail them out to keep them afloat and what do you make of all the situation. You know i dont think the earliest point in knowing it would like to position themselves for more money if theres more being handed out theyd like to be a recipient already the u. S. Has supported its Airline Industry you know more than anywhere in the world on the order of 25 percent of you know prior year revenue which is about 2 and a half times what weve seen in europe so its certainly a significant us thats been made on the other hand though they recognize that that carries act restrictions on laying off employees are going to lift one month before the president ial election the airline lobby Shop Airlines for america has already mentioned to congress a desire not to have to ask for more bailout money which is a way of preceding the argument and so you know positioning themselves with the recognition that the. Airline industry is going to be shedding employees is in some ways setting themselves up for more money but it seems like thats going to be a very unpopular and a. Likely ability to get Something Like that done given the amount of money. And frankly because the early industry is going to be right thing it will be smaller in the future and the airlines will need fewer employees Going Forward and so more government aid to the airlines rather than the people who are going to be ultimately transitioning into a new position somewhere else seems like an inefficient way helping people who are affected by the and now gary were seeing a new report from the United Nations World Tourism Organization saying global tour with tourism is going to drop by 70 percent in 2020 due to the pandemic other issues of cause a drop by 10 maybe 20 percent but this pandemic is really taking effect as you know what is going to have on me and history as a whole and like you said i mean things are going to quite bounce back but what is air travel really going to look like when things go back to what will probably be the new normal. Well 1st of all i think you know its not like you flipping a switch and when you see numbers like 70 percent fall you know international you realize that your travels going to come back more quickly to mess to clean than it will be internationally because there will be continue to be restrictions that many countries have in place on international travel. To come back to or leave your travel for Business Travel with Business International clearly being last and a lot of Business Travel is centered around things like conventions and large group of best take many years in order to plan. These are going to be the last ones to come back because a large group answer going to be the hardest theyre not valuable until they know that everyones going to show up for that so its going to be pricey im sure the ins what recover carry left author view from the way i had a whole bunch more for you but well have you back really soon thank you so much for your time and thats it for this time and you can catch butts on the brand new portable t. V. App see you next time. You cannot be both with the yeah you like. Is youll be a reflection of reality. In the world transformed. What will make you feel safe. Isolation whole community. Are you going the right way or are you being. Direct. What is truly wants is faith. In the world corrupted you need to descend. To join us in the depths. In the shallowness. You need much as. We said. Is not a plan but im also the most companies you know ive been a kid who says you know. When i meet. Some peoples feet almost communist you know he goes from didnt you know just to say hes just putting you through a coke. Time and im going to hit a safe enough to let me see. You i dont like kind of this. Thing they. Come up to your list to nominate so they can see you know men because he. Lives from the World Headquarters of the artsy america in our Nations Capital this is the news with rick sanchez. Hello again everybody im rick sanchez to all of you watching us from all over the world either on a regular t. V. Or on portable t. V. Were so glad youre there. Today our nation america is a country in chaos with violence now spreading from coast to coast it was. Was it was it was