Transcripts For RT Boom Bust 20240712

Is the bus the one business show you cant afford to miss unfair montecito going to washington coming up the Trump Administration oks complex and Plasma Treatment for covert 19 but questions remain about just how effective the therapy actually is and the Parent Company of tick tocking from suing the u. S. Government ahead of a possible ban its yet another legal battle between the u. S. And china tougher we have a lot to get to so lets get started. Over the weekend President Trump announced the f. D. A. The emergency approval of convalescent plasma for a covert 1000 patients. Today im pleased to make a truly historic announcement in our battle against the china virus that will save countless lives the f. D. A. Has issued an emergency use. Authorization and thats such a powerful term emergency use authorization for a treatment known as convalescent plasma. This is a. Powerful therapy that trance uses very very strong antibodies from the blood of recovered patients to help treat patients battling a current infection set an incredible rate of success todays action will dramatically expand access to this treatment now this comes one day after President Trump took to twitter and flan the f. D. A. For making it very difficult for Drug Companies to get people in order to test the vaccines and therapeutics a flu Drug Administration chief steven hahn he said this type of plan its been used with Infectious Diseases for years now. So plasma is the liquid portion of the blood that liquid portion contains the Natural Immunity that someone develops in response to an infection in this case covert 19 and that liquid portion can be extracted and for many years as the president secretary said its been given to patients with Infectious Diseases for more than 100 years so there was a really good rationale for why this might work well the f. D. A. They claim more than 70000 patients have used this treatment still some medical experts including an i. D. F. Director anthony thought she will he claims the Clinical Data just isnt Strong Enough to justify emergency approval meanwhile the trumpet ministration is reportedly looking to fast track a covert 19 vaccine from the u. K. Sources suggest the f. D. A. Could potentially grab an emergency authorization in october well critics warn the potential vaccine underdeveloped. And by astra zeneca an Oxford University has only 10000 volunteers now thats 20000 fewer than what the u. S. Requires for emergency use authorization this comes as astra zeneca just received Regulatory Approval to conduct part of a face 3 trial in russia well last month russia signed a licensing deal with the u. K. Biopharma to manufacture the potential vaccine the trial will involve 150 volunteers across the country and for medical facilities in St Petersburg and moscow. For more on how the Global Markets are reacting were joined by both cohost christine and editorial director at the American Institute for Economic Research Jeffrey Tucker jeffrey lets start with you now the Federal Reserve is going to hold its annual jackson hole symposium starting this thursday whats the market anticipating to hear this year from powell and we already know the fed is all in but what specifically will the market want to hear. Well the what the market has loved hearing from the fed over the last 6 months and im not saying this is right or wrong is more money more a lose lose spawn a trade policy more and more of violating of its charter more and more purchases of stocks and bonds and intervene into the markets to do anything to sustain the recovery and in large part i think present strength in the Financial Markets is due to the feds actions i do when i say that i dont i dont know that these are healthy actions they might in fact be highly disciplined distortive weve never seen such a would you say like a difference between the with Financial Markets are reacting and the severity of the macroeconomic environment right now and and i dont i dont think its sustainable and im worried that some early next year were going to really see a lot more evidence of the distortions both in terms of its effect on the structures of production quite possibly on prices were you start to see a lot of operative or movement on prices already were definitely seeing that upward mobility on prices that the farmers are says theyre all in however they did recently say theyre looking at possible an increase in Interest Rates so itll really want to keep an eye to see what comes out of that symposium kristie a lot of volatility in the market this morning it looks like the markets all the nasdaq the dow and the s. And p. Theyre all rallying they hit all time records whats going on here. Well i think part of it is exactly what jeffrey says theres a lot of strength in this market rally but its not necessarily healthy and it really is distorted because the nasdaq that didnt dip briefly into negative territory this morning as apple and tesla sold off very violently in the late morning a little pullback as unsurprising here for apple given the fact that it did jump about 8 percent last week ahead of it for 4 months stock split bring its 2020 gains up nearly to 70 percent but it quickly ratcheted back up as the nasdaq closed to new all time highs today. But at this point as jeffrey just said it is pretty evident that a very small group of stocks is contributing to this entire market rally the s. And p. And the nasdaq both had new all time record highs but stocks were more stocks were down than up and typically the opposite should be true in a healthy Market Conditions the majority of stocks should be going along with along with the averages but right now this shows that there is deteriorating market breath as 300 names out of the s. And p. 500 were actually down instead of up so this is very concerning behavior as this rally shows that this is not very well supported at all well like you said i mean there they dip into negative territory especially a day like today right where we have this this news coming out of vaccine jeffrey the markets and tis a pity another stimulus deal right now the democrats and the republicans they could not be further apart its so obvious how is this delay affecting americans who are relying on these measures to really stay afloat. Some of the some people think im not the senate go but some people think that they only need to kind of keep keep things going for another couple months that all this is being driven by election politics and of tests true thats a pretty dark way to conduct policy you know much more important than a stimulus bill right now would be to see further progress towards opening this economy right now u. S. Stringencies that are in place in the name of protecting people from from a virus are some of the tightest in the world if you can believe it i mean europe long ago opened up the u. K. Is even opened up more than the u. S. The u. S. Has very high stringency even now cash is because our politicians are so invested in the closures the lockdowns and the mass mandates and Everything Else that they dont see a way to kind of pull back from it because its it almost seems embarrassing because they dont seem to have a good reason to do it to get. Tomorrows versus last week so these stringencies continue in place and i think that more than a thing else is the source of a lot of the economic dislocation and that we can tell the whole edition that christine mentioned in the Financial Markets were just a handful of companies we have to open up this economy we need to do it really so we shouldve done it 4 months ago but it needs to happen right away and whether whether about that come out thats going to happen before november i just dont know well yes you see kind of both sides where a lot of cities are a lot of places do have bars restaurants indoors everything open then you see the other side where theyre not open either way nobody really is operating at 100 percent capacity costing millions of jobs already and jobs that may never come back kristie one of the most alarming facts about this in this crisis is really the pace at the bankruptcies there are rising an incredible pace despite the 11 trillion liquidity injections companies that theyre still going bust at the fastest pace since weve seen ever since the Great Depression whats going on here well this is a solvency crisis essentially is basically what jeff i was just saying this is a solvency crisis for most people and most Small Businesses right now and thats not going to be solved just by pumping in additional liquidity so trillions of liquidity injections are giving investors a false sense of security right now because the old are low and valuations are high but companies are entering into a long term solvency crisis and these at essential they are becoming these Zombie Companies now the Zombie Companies that will mean less employment in the future less investment and ultimately lower growth as a whole for the economy so liquidity right now is just a temporary fix it doesnt actually solve any of the solvency problems and issues that are mainly driven by as you said low demand low capacity collapsing cash flows and basically elevated costs right now so all these large u. S. Company bankruptcies theyre running at record pace right now set to surpass levels reached during the financial crisis so 45. 00 companies with assets. Over 1000000000. 00 have already filed for chapter 11 bankruptcy here in the us in germany 500000 companies are considered insolvent right now and in spain 25 percent of all companies are on the verge of closing and in technical bankruptcy already so these bailouts these liquidity measures conducted all by the central bank to extend the runway for these companies thats not really helping and thats only going to make things worse in the future because pointless stimulus really wont help and that will only serve to create more of these Zombie Companies and drive the economy into crisis and perpetual imbalance and we all know this is going to take years to recover anyway the more stimulus the longer its going to take jeffrey a lot of this positive bias today obviously driven by what we just said the plasma plasma kovan 1000 patients but the w. H. O. Like i said anthony a lot of medical experts are saying theres low quality evidence that actually supports the data that it works are we getting ahead of ourselves here. Well probably im not sure of that but the person in question really i mean this is this example this should have always been left to the medical doctors to do with it and should have never involved the politicians theres a lot of experimentation going on right now with therapeutic time that i think theres reason to be far more optimistic about various therapeutics and there are the vaccine question right now i mean already has seen you know sweden style herd immunity is already affected the northeast youre seeing this swing down to the to the to the to the south and to the sunbelt and so on i mean what happens the virus comes people get it. Is estimated at 1020 percent the really the question is if in fact we have this vaccine coming along how long its going to work forward its not going to be to it as solid as smallpox america and the other question is whos going to need you know at some point we know that covered 1000 creates a persistent immunity when you get it and get over it so you know i think a lot of this is is its more illusory and just just for the sake of keeping people optimistic well and if the virus changes we dont know that either signs of constantly changing we saw that firsthand through this whole pandemic but with cohost christiane and Jeffrey Tucker on the American Institute for Economic Research thank you both so much for your time today. The u. S. Is now making progress on a plan to bring iraqs. Power grid into an alliance with gulf states that include saudi arabia will a move that would take iraq away from a long Standing Energy relationship with iran this comes as President Trump continues to promise that u. S. Troops in iraq will be leaving very soon our beloved joins me now to discuss the details rachel what we know so far about the steel well the u. S. Is spending more than a year trying to convince iraq to cut off its Energy Dependence on iran and instead connect its power grid to u. S. Allies in the region now what they want iraq to do is join this Gulf Cooperation Council which includes countries like saudi arabia the u. A. E. And kuwait and now officials are saying that such a move could be happening in the coming months now weve seen statements that include iraqs foreign minister who told the Atlantic Council of the project is on the verge of being defined and designed and put out to tender years as spokesperson for Saudi Arabias Energy minister also confirmed that the agreement is advancing towards completion so we could very well be seeing a large shift in power over the next year were also seeing the United States make direct with with the rock what can you tell us about those well we saw a meeting between iraqs Prime Minister and President Trump just last week and they confirm that iraq has signed on to 8000000000. 00 in energy deals with the u. S. Companies now when we take a look at the companies specifically that are involved in those deals they include General Electric Honeywell International Stellar Energy chevron corp and baker hughes and in a statement washingtons Energy Secretary referred to the deals as a key to a rock Energy Future so its interesting to see how not only is this alliance here but the u. S. Is also directly benefiting it really is but why why is the timing now what about the timing of this is particularly interesting when we also have to remember that all of the ways the new energy deals helped to benefit the u. S. And its allies they also hurt iran and that has been one of the main focuses specifically from the trumpet ministration you know weve seen the way that they worked. Other countries where they take a specific target or a specific enemy or rival point them out and then want all of their allies to give us far away from them as possible you know we saw this play out with china and with wall way where the us blacklisted wall way and then told all of its allies to cut all ties and even accused the u. K. Of going too far in saying that they would cut them off if they dared to work with while we imbibe and then we saw with russia in the north stream to pipeline where the us is now threatening you know sanctions against germany if they continue to help with the construction of a pipeline so its the same exact thing that were seeing with iran here were not the trump ministration is telling its allies to cut off all ties and of course in the end it is directly benefiting the us because theyre the ones who could be getting those deals and there are definitely some countries a not a lot that are pushing back there are others that will say no we will listen to whatever the administration of the United States pressures us to do interesting laying out the north stream to pipeline that you did mention there has been no change germany has said that the us should not interfere and that type of agreement so i mean other alliances that theyre going to continue and germany and china for example they also have a Big Partnership so well keep following the story arties Rachel Blevins thank you for that report thank you. Time now for a quick break but stay here because when we return the Parent Company of tik tok confirms its suing the u. S. Government to have a possible ban we discussed whether or not it would succeed in blocking it such an executive order and as we go to break here the numbers at the club i i. L. Look forward to talking to you all that technology should work for people. I robot must obey the orders given by human beings except where such orders to conflict with the 1st law show your identification or should be very careful about Artificial Intelligence at the point obesity is. Ever. Going to take on various chaing with Artificial Intelligence will summon the demon. A robot must protect its own existence as a mixer. Who put oh yeah they are so being you. Know yes for wrong. Yet spoiled yet sweet. For. Pretty. To repeat here are just going to be a still Pretty Girl World where yes. So theyre going to look good just for you they didnt get the word for it but. These are the stories of men who contemn magic in life without fashion without a sense of style without things that might be seen as weakness in this masculine world but they still demonstrate incredible strength of spirit to live as they choose. The whole of us have used. For. The world is driven by dreamers shaped by one person with those words. Saying. We dare to ask. The u. K. Government denied plans to drop a digital tax recently placed on Global Tech Companies on monday spokesperson for u. K. Treasury told c. N. N. You see weve been clear its a temporary tax that will be removed once an appropriate Global Solution is in place and we continue to work with our International Partners to reach that goal well despite u. S. Pressure the u. K. Has repeated this and to this day right now there is no International Agreement well the country rebuked the claims following sundays report that chancellor planned to ditch the facebook tax the tech giants include Facebook Google and amazon the u. S. Has threatened to impose additional tariffs on france after being the 1st to legislate a digital tock service but france has postponed collecting payments until 2021. New developments in one of the biggest tech stories of the year ticktock now says it will sue the trumpet ministration over its order requiring that the Chinese Company sell off its u. S. And north American Assets or else they face an all out ban in the u. S. The move comes even as some of tick tocks biggest and back with minority stakes here in the company well joining us now to discuss it is. Journalist ben swan and heard. Ford which board member with the British American Business Association thanks for being with me today hellery at lets lets start with you this is somewhat New Territory were seeing here is a president issued this executive order that now requires that the company divest its u. S. Operations or even be shut down to theyre now saying that is the only course of action is to actually take this on to the courts do you think take talk will prevail will sarah pleasure to be back thanks for having me a couple of things here to set the context is that i think this is being portrayed very much in the u. S. Anyway in particular around the selection trying that trump is against to talk well 1st of all it is the ticket has been banned already in india and australia is considering taking similar action and theres certainly a lot of concern about to talk in the u. K. Again and might put a lot of pressure on them in not have the to headquarters be located in london so that sort of globally and secondly i dont think this is really just about chick talk i think its about to talk to each and every Chinese Software where the Companies Really all owned by part owned by and report to either directly or pretty much indirectly the communist party and its a question of the software do we want all information about americans going to the communist party so now to get to a point do i think the tick tock will prevail well i think we need to look at the major issue is here which is this great its called the great chinese fire wall you know ever since about 2009 also more than 20 u. S. Companies have been banned from doing business in china so i think when the chinese are suddenly suing the u. S. Government for something that theyve been doing for years we need to look at the only chance they really have is its really a bargaining chip do they want os to allow them to do business here when were not allowed to do business in china certainly not google or whats up or Facebook Mark zuckerberg of course has been very vocal about this but also not the b. B. C. Not the Washington Post not the wall street journal so theyre being extremely hypocritical on this case i dont think is not from a chance for to talk its been. Such a political issue all this back and forth and like we said it is the Biggest Issue of the year one could say that it does take talk even to have illegal high ground. I think they do and i think hillary is fantastic i appreciate what she had to say but i totally disagree with her on this and heres why because we are not the communists in the United States we are not the regime that blurs the lines between government and business where you have a Central Government that controls everything including the ability of businesses to operate or decide who has a right to operate and not we are supposed to be the nation that is built on capitalism and free markets and the idea that you allow for free markets the problem i have with whats happening here is that we have a really unprecedented situation where a u. S. President is blocking private companies not its true that there is a lot of questions about how data is used and served and whether or not it goes back to the Chinese Government but lets also be clear about this there has been absolutely no evidence presented whatsoever that this has happened in the past in fact if you look at the terminology that is being used the word could comes up an awful lot which is that to talk could share this data with the Chinese Government its also important to remember that every Major Tech Company in the United States has themselves been fined for the abuse of data and misuse of data so one thing that if were going to see this path continue id like to see reform for how data is new use not just if you have the word chinese attached to it but weve heard this before with a with wa as well theyve been bad i will leave that story since for years now and now theyve been back and we still havent seen the evidence i mean whether or not theyre there and they have and they say they do we havent seen as American People as the American Public we deserve to see it hellery back to tick tock if its forced us off its assets the sale of those assets could be worth between i think 25000000000 and 30000000000 now to help fund their restructuring bed by dance investors theyre discussing now exchanging some or even. All of their states and the Chinese Company with equities and tick tock assets if this restructuring actually happens does that leave the door open then for us Companies Like microsoft or oracle which trumpets has failed yes or actually id like to address that i just wanted to comment back to ben who i think bens great too but i choose to disagree with ben to a certain degree although actually in some ways i suppose agree because that is one of the problems with capitalism is everythings about the quick buck everythings about who can make a quick buck and so in america we dont have anybody preventing sort of america being sold out to the next bigger let alone an adverse saree that has declared in their 100 year plan that they want to be the global dominant military as well as Economic Force and i think President Trump is the 1st president to say wait a 2nd even though ironically of course hes a major capitalist himself but i do think at some juncture and i agree with ben about the joy of america on the freedom of america and that were not a communist society and on the other hand at some juncture maybe we need to put on lockdown off and say everything isnt about the back and we cant sell out on nation now to answer your question though quickly about microsoft oracle i will say that microsoft is known as having and is purported to have great ties to the Chinese Communist party itself with a lot of business in china and actually i will defer to right here now Peter Navarro of course the white house trade advisor to trump and head of trade in manufacturing and he has actually been quoted as saying that he and the white house view and many others do oracle as being one of the smartest and toughest companies on the planet and that theyve been meticulous is exactly what was meticulous in avoiding any influence by the Chinese Government on my last point would be to quote him he has sort of he says it somewhat flippantly and yet he says its not a joke its serious you know its a big problem when American Parents maybe or maybe dont know where their children are whereas the communist government government dollars Chinese Government will know what theyre doing and where theyre doing it at least 80000000 americans who download ticked all especially ticktock without loss you will see were closer. Here you have found one last question Mark Zuckerberg say facebook c. E. O. Reportedly been at the center of warning the Top Administration and other officials in washington about these dangerous we saw that when they testified a few weeks ago raising chinese Tech Companies including ticktock is that are helping protect the u. S. Or urge us his own company. I do not believe Mark Zuckerberg is doing anything for the country what he is doing is trying to look out for his own interest because obviously tiktaalik is the biggest competitor that he faces right now especially for instagram and what Mark Zuckerberg needs more than anything right now is for to talk to go away so that he can continue to dominate markets the way that he has in the past including right now rolling now a new item called the real deal on instagram a direct competitor yes to talk you see it and its just like take toxo well keep following this a lot ben so on and heller for which thank you both for being with us today. Well thats it for this time catch boom bust on demand on the brand new portable t. V. App which is available on smartphones and tablets through the play and the Apple App Store by searching portable t. V. Portable t. V. Can also be downloaded on newer model phantoms parties as well either of the devices or simply check it out as part of about t. V. 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